1.1 	A bill for an act
1.2 	relating to state government; appropriating money for agriculture, the Board of 
1.3 	Animal Health, and the Agricultural Utilization Research Institute; modifying 
1.4 	certain fees; modifying certain restrictions on farm disposal; clarifying the 
1.5 	authority of certain entities;amending Minnesota Statutes 2010, sections 
1.6 	17.135; 18B.03, subdivision 1; 18C.005, by adding a subdivision; 18C.111, by 
1.7 	adding a subdivision; 18C.131; 18C.425, by adding a subdivision; 18D.201, 
1.8 	subdivision 5, by adding a subdivision; 18E.03, subdivision 4; 27.041, by adding 
1.9 	a subdivision; 38.01; 373.01, subdivision 1; proposing coding for new law in 
1.10 	Minnesota Statutes, chapter 115A.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.13 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.14 	in this article.

1.15			2012
		2013
		Total
	
1.16	General
	$
	46,026,000
	$
	30,574,000
	$
	76,600,000
	
1.17	Agricultural 
	$
	800,000
	$
	800,000
	$
	1,600,000
	
1.18	Remediation
	$
	388,000
	$
	388,000
	$
	776,000
	
1.19	Total
	$
	47,214,000
	$
	31,762,000
	$
	78,976,000

1.20	Sec. 2. AGRICULTURE APPROPRIATIONS.
 	
1.21 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.22 	agencies and for the purposes specified in this act. The appropriations are from the general 
1.23 	fund, or another named fund, and are available for the fiscal years indicated for each 
1.24 	purpose. The figures "2012" and "2013" used in this act mean that the appropriations 
1.25 	listed under them are available for the fiscal year ending June 30, 2012, or June 30, 2013, 
2.1 	respectively. "The first year" is fiscal year 2012. "The second year" is fiscal year 2013. 
2.2 	"The biennium" is fiscal years 2012 and 2013.

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2012
		2013

2.7	Sec. 3. DEPARTMENT OF AGRICULTURE

2.8	Subdivision 1.Total Appropriation
 	$
	39,730,000
	$
	24,278,000

2.9	Appropriations by Fund
	
2.10		2012
	2013
	
2.11	General
	38,542,000
	23,090,000
	
2.12	Remediation
	388,000
	388,000
	
2.13	Agricultural
	800,000 
	800,000
	
2.14 	The amounts that may be spent for each 
2.15 	purpose are specified in the following 
2.16 	subdivisions.

2.17	Subd. 2.Protection Services
 		12,193,000
		12,193,000

2.18	Appropriations by Fund
	
2.19	General
	11,805,000
	11,805,000
	
2.20	Remediation
	388,000
	388,000
	
2.21 	$388,000 the first year and $388,000 the 
2.22 	second year are from the remediation fund 
2.23 	for administrative funding for the voluntary 
2.24 	cleanup program.
2.25 	$75,000 the first year and $75,000 the second 
2.26 	year are for compensation for destroyed or 
2.27 	crippled animals under Minnesota Statutes, 
2.28 	section 3.737. If the amount in the first year 
2.29 	is insufficient, the amount in the second year 
2.30 	is available in the first year.
2.31 	$75,000 the first year and $75,000 the second 
2.32 	year are for compensation for crop damage 
2.33 	under Minnesota Statutes, section 3.7371. If 
2.34 	the amount in the first year is insufficient, the 
3.1 	amount in the second year is available in the 
3.2 	first year.
3.3 	If the commissioner determines that claims 
3.4 	made under Minnesota Statutes, section 
3.5 	3.737 or 3.7371, are unusually high, amounts 
3.6 	appropriated for either program may be 
3.7 	transferred to the appropriation for the other 
3.8 	program.
3.9 	$245,000 the first year and $245,000 the 
3.10 	second year are for an increase in retail 
3.11 	food handler inspections. No later than 
3.12 	February 1, 2013, the commissioner shall 
3.13 	report to the chairs and ranking minority 
3.14 	members of the legislative committees 
3.15 	with jurisdiction over agriculture finance 
3.16 	regarding the commissioner's progress in 
3.17 	addressing the department's shortfall of 
3.18 	necessary inspections and recommendations 
3.19 	for fee changes to eliminate the shortfall.

3.20
3.21	Subd. 3.Agricultural Marketing and 
Development
 		2,962,000
		2,962,000
	
3.22 	$186,000 the first year and $186,000 the 
3.23 	second year are for transfer to the Minnesota 
3.24 	grown account and may be used as grants 
3.25 	for Minnesota grown promotion under 
3.26 	Minnesota Statutes, section 17.102. Grants 
3.27 	may be made for one year. Notwithstanding 
3.28 	Minnesota Statutes, section 16A.28, the 
3.29 	appropriations encumbered under contract on 
3.30 	or before June 30, 2013, for Minnesota grown 
3.31 	grants in this paragraph are available until 
3.32 	June 30, 2015. $50,000 of the appropriation 
3.33 	in each year is for efforts that identify 
3.34 	and promote Minnesota grown products in 
3.35 	retail food establishments including but not 
4.1 	limited to restaurants, grocery stores, and 
4.2 	convenience stores.
4.3 	$100,000 the first year and $100,000 the 
4.4 	second year are to provide training and 
4.5 	technical assistance to county and town 
4.6 	officials relating to livestock siting issues 
4.7 	and local zoning and land use planning, 
4.8 	including maintenance of the checklist 
4.9 	template clarifying the federal, state, 
4.10 	and local government requirements for 
4.11 	consideration of an animal agriculture 
4.12 	modernization or expansion project. For the 
4.13 	training and technical assistance program, 
4.14 	the commissioner shall continue to seek 
4.15 	guidance, advice, and support of livestock 
4.16 	producer organizations, general agricultural 
4.17 	organizations, local government associations, 
4.18 	academic institutions, other government 
4.19 	agencies, and others with expertise in land 
4.20 	use and agriculture.
4.21 	$10,000 the first year and $10,000 the 
4.22 	second year are for annual cost-share 
4.23 	payments to resident farmers or persons 
4.24 	who sell, process, or package agricultural 
4.25 	products in this state for the costs of organic 
4.26 	certification. Annual cost-share payments 
4.27 	per farmer must be two-thirds of the cost 
4.28 	of the certification or $350, whichever is 
4.29 	less. In any year that a resident farmer or 
4.30 	person who sells, processes, or packages 
4.31 	agricultural products in this state receives 
4.32 	a federal organic certification cost-share 
4.33 	payment, that resident farmer or person is 
4.34 	not eligible for state cost-share payments. A 
4.35 	certified farmer is eligible to receive annual 
4.36 	certification cost-share payments for up to 
5.1 	five years. The commissioner may allocate 
5.2 	any excess appropriation in either fiscal year 
5.3 	for organic market and program development 
5.4 	including organic producer education efforts, 
5.5 	assistance for persons transitioning from 
5.6 	conventional to organic agriculture, or 
5.7 	sustainable agriculture demonstration grants 
5.8 	authorized under Minnesota Statutes, section 
5.9 	17.116, and pertaining to organic research or 
5.10 	demonstration. Any unencumbered balance 
5.11 	does not cancel at the end of the first year 
5.12 	and is available for the second year.

5.13
5.14	Subd. 4.Bioenergy and Value-Added 
Agriculture
 		17,332,000
		1,880,000
	
5.15 	$13,732,000 the first year is for ethanol 
5.16 	producer payments under Minnesota Statutes, 
5.17 	section 41A.09. If the total amount for 
5.18 	which all producers are eligible in a quarter 
5.19 	exceeds the amount available for payments, 
5.20 	the commissioner shall make payments on a 
5.21 	pro rata basis. If the appropriation exceeds 
5.22 	the total amount for which all producers are 
5.23 	eligible, the balance in the appropriation 
5.24 	is available to the commissioner for the 
5.25 	agricultural growth, research, and innovation 
5.26 	program under Minnesota Statutes, section 
5.27 	41A.12. The appropriation remains available 
5.28 	until spent.
5.29 	$3,500,000 the first year is for bioenergy 
5.30 	grants. The NextGen Energy Board, 
5.31 	established in Minnesota Statutes, section 
5.32 	41A.105, shall make recommendations to 
5.33 	the commissioner on grants for owners of 
5.34 	Minnesota facilities producing bioenergy, 
5.35 	organizations that provide for on-station, 
5.36 	on-farm field scale research and outreach to 
6.1 	develop and test the agronomic and economic 
6.2 	requirements of diverse stands of prairie 
6.3 	plants and other perennials for bioenergy 
6.4 	systems, or certain nongovernmental 
6.5 	entities. For the purposes of this paragraph, 
6.6 	"bioenergy" includes transportation fuels 
6.7 	derived from cellulosic material, as well as 
6.8 	the generation of energy for commercial heat, 
6.9 	industrial process heat, or electrical power 
6.10 	from cellulosic material via gasification or 
6.11 	other processes. Grants are limited to 50 
6.12 	percent of the cost of research, technical 
6.13 	assistance, or equipment related to bioenergy 
6.14 	production or $500,000, whichever is less. 
6.15 	Grants to nongovernmental entities for 
6.16 	the development of business plans and 
6.17 	structures related to community ownership 
6.18 	of eligible bioenergy facilities together 
6.19 	may not exceed $150,000. The board shall 
6.20 	make a good-faith effort to select projects 
6.21 	that have merit, and, when taken together, 
6.22 	represent a variety of bioenergy technologies, 
6.23 	biomass feedstocks, and geographic 
6.24 	regions of the state. Projects must have a 
6.25 	qualified engineer provide certification on 
6.26 	the technology and fuel source. Grantees 
6.27 	must provide reports at the request of the 
6.28 	commissioner. No later than February 1, 
6.29 	2013, the commissioner shall report on the 
6.30 	projects funded under this appropriation to 
6.31 	the legislative committees with jurisdiction 
6.32 	over agriculture finance. The commissioner's 
6.33 	costs in administering the program may 
6.34 	be paid from the appropriation. This is a 
6.35 	onetime appropriation and is available until 
6.36 	June 30, 2013.
7.1 	$1,880,000 the second year is for the 
7.2 	agricultural growth, research, and innovation 
7.3 	program in Minnesota Statutes, section 
7.4 	41A.12. The commissioner may use up to 
7.5 	4.5 percent of this appropriation for costs 
7.6 	incurred to administer the program. Any 
7.7 	unencumbered balance does not cancel at the 
7.8 	end of the first year and is available in the 
7.9 	second year. The base budget for fiscal year 
7.10 	2014 and later is $10,247,000 each year.
7.11 	$100,000 the first year is to provide a grant 
7.12 	for a feasibility study, site identification, and 
7.13 	site acquisition for a proposed biomass plant 
7.14 	in Lake of the Woods County.

7.15
7.16	Subd. 5.Administration and Financial 
Assistance
 		7,243,000
		7,243,000

7.17	Appropriations by Fund
	
7.18		2012
	2013
	
7.19	General
	6,443,000
	6,443,000
	
7.20	Agricultural
	800,000
	800,000
	
7.21 	$634,000 the first year and $634,000 the 
7.22 	second year are for continuation of the dairy 
7.23 	development and profitability enhancement 
7.24 	and dairy business planning grant programs 
7.25 	established under Laws 1997, chapter 
7.26 	216, section 7, subdivision 2, and Laws 
7.27 	2001, First Special Session chapter 2, 
7.28 	section 9, subdivision 2. The commissioner 
7.29 	may allocate the available sums among 
7.30 	permissible activities, including efforts to 
7.31 	improve the quality of milk produced in the 
7.32 	state in the proportions that the commissioner 
7.33 	deems most beneficial to Minnesota's 
7.34 	dairy farmers. The commissioner must 
7.35 	submit a work plan detailing plans for 
7.36 	expenditures under this program to the chairs 
8.1 	of the legislative committees dealing with 
8.2 	agricultural policy and budget on or before 
8.3 	the start of each fiscal year. If significant 
8.4 	changes are made to the plans in the course 
8.5 	of the year, the commissioner must notify the 
8.6 	chairs.
8.7 	$47,000 the first year and $47,000 the 
8.8 	second year are for the Northern Crops 
8.9 	Institute. These appropriations may be spent 
8.10 	to purchase equipment.
8.11 	$18,000 the first year and $18,000 the 
8.12 	second year are for a grant to the Minnesota 
8.13 	Livestock Breeders Association.
8.14 	$235,000 the first year and $235,000 the 
8.15 	second year are for grants to the Minnesota 
8.16 	Agricultural Education and Leadership 
8.17 	Council for programs of the council under 
8.18 	Minnesota Statutes, chapter 41D.
8.19 	$474,000 the first year and $474,000 the 
8.20 	second year are for payments to county and 
8.21 	district agricultural societies and associations 
8.22 	under Minnesota Statutes, section 38.02, 
8.23 	subdivision 1. Aid payments to county and 
8.24 	district agricultural societies and associations 
8.25 	shall be disbursed no later than July 15 of 
8.26 	each year. These payments are the amount of 
8.27 	aid from the state for an annual fair held in 
8.28 	the previous calendar year.
8.29 	$1,000 the first year and $1,000 the second 
8.30 	year are for grants to the Minnesota State 
8.31 	Poultry Association.
8.32 	$108,000 the first year and $108,000 the 
8.33 	second year are for annual grants to the 
8.34 	Minnesota Turf Seed Council for basic 
8.35 	and applied research on: (1) the improved 
9.1 	production of forage and turf seed related to 
9.2 	new and improved varieties; and (2) native 
9.3 	plants, including plant breeding, nutrient 
9.4 	management, pest management, disease 
9.5 	management, yield, and viability. The grant 
9.6 	recipient may subcontract with a qualified 
9.7 	third party for some or all of the basic or 
9.8 	applied research.
9.9 	$500,000 the first year and $500,000 the 
9.10 	second year are for grants to Second Harvest 
9.11 	Heartland on behalf of Minnesota's six 
9.12 	Second Harvest food banks for the purchase 
9.13 	of milk for distribution to Minnesota's food 
9.14 	shelves and other charitable organizations 
9.15 	that are eligible to receive food from the food 
9.16 	banks. Milk purchased under the grants must 
9.17 	be acquired from Minnesota milk processors 
9.18 	and based on low-cost bids. The milk must be 
9.19 	allocated to each Second Harvest food bank 
9.20 	serving Minnesota according to the formula 
9.21 	used in the distribution of United States 
9.22 	Department of Agriculture commodities 
9.23 	under The Emergency Food Assistance 
9.24 	Program (TEFAP). Second Harvest 
9.25 	Heartland must submit quarterly reports 
9.26 	to the commissioner on forms prescribed 
9.27 	by the commissioner. The reports must 
9.28 	include, but are not limited to, information 
9.29 	on the expenditure of funds, the amount 
9.30 	of milk purchased, and the organizations 
9.31 	to which the milk was distributed. Second 
9.32 	Harvest Heartland may enter into contracts 
9.33 	or agreements with food banks for shared 
9.34 	funding or reimbursement of the direct 
9.35 	purchase of milk. Each food bank receiving 
9.36 	money from this appropriation may use up to 
10.1 	two percent of the grant for administrative 
10.2 	expenses.
10.3 	$94,000 the first year and $94,000 the 
10.4 	second year are for transfer to the Board of 
10.5 	Trustees of the Minnesota State Colleges and 
10.6 	Universities for mental health counseling 
10.7 	support to farm families and business 
10.8 	operators through farm business management 
10.9 	programs at Central Lakes College and 
10.10 	Ridgewater College.
10.11 	$17,000 the first year and $17,000 the 
10.12 	second year are for grants to the Minnesota 
10.13 	Horticultural Society.
10.14 	Notwithstanding Minnesota Statutes, 
10.15 	section 18C.131, $800,000 the first year 
10.16 	and $800,000 the second year are from the 
10.17 	fertilizer account in the agricultural fund 
10.18 	for grants for fertilizer research as awarded 
10.19 	by the Minnesota Agricultural Fertilizer 
10.20 	Research and Education Council under 
10.21 	Minnesota Statutes, section 18C.71. The 
10.22 	amount appropriated in either fiscal year 
10.23 	must not exceed 57 percent of the inspection 
10.24 	fee revenue collected under Minnesota 
10.25 	Statutes, section 18C.425, subdivision 6, 
10.26 	during the previous fiscal year. No later 
10.27 	than February 1, 2013, the commissioner 
10.28 	shall report to the legislative committees 
10.29 	with jurisdiction over agriculture finance. 
10.30 	The report must include the progress and 
10.31 	outcome of funded projects as well as the 
10.32 	sentiment of the council concerning the need 
10.33 	for additional research funds.

10.34	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	4,841,000
	$
	4,841,000

11.1
11.2	Sec. 5. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	2,643,000
	$
	2,643,000

11.3 	Sec. 6. Minnesota Statutes 2010, section 17.135, is amended to read:
11.4 	17.135 FARM DISPOSAL OF SOLID WASTE.
11.5 	(a) A permit is not required from a state agency, except under sections 88.16, 
11.6 	88.17, and 88.22 for a person who owns or operates land used for farming that buries, or 
11.7 	burns and buries,:
11.8 	(1) solid waste generated from the person's household or as part of the person's 
11.9 	farming operation if the burying is done; or
11.10 	(2) concrete or reinforcing bar from a building or structure located on the land 
11.11 	used for farming.
11.12 	Items in clauses (1) and (2) must be buried in a nuisance-free, pollution-free, and 
11.13 	aesthetic manner on the land used for farming. This The exception in clause (1) does not 
11.14 	apply if regularly scheduled pickup of solid waste is reasonably available at the person's 
11.15 	farm, as determined by resolution of the county board of the county where the person's 
11.16 	farm is located. 
11.17 	(b) This The exemption in paragraph (a), clause (1), does not apply to burning tires 
11.18 	or plastics, except plastic baling twine, or to burning or burial of the following materials:
11.19 	(1) household hazardous waste as defined in section 115A.96, subdivision 1; 
11.20 	(2) appliances, including but not limited to, major appliances as defined in section 
11.21 	115A.03, subdivision 17a; 
11.22 	(3) household batteries;
11.23 	(4) used motor oil; and
11.24 	(5) lead acid batteries from motor vehicles.
11.25 	(c) An owner of land used for farming who buries material under the authority of 
11.26 	paragraph (a), clause (2), shall record, with the county recorder or registrar of titles of 
11.27 	the county in which the land is located, an affidavit containing a legal description of 
11.28 	the property and a map drawn from available information showing the boundary of the 
11.29 	property and the location of concrete or reinforcing bar buried on the property. The county 
11.30 	recorder or registrar of titles must record an affidavit presented under this paragraph in a 
11.31 	manner that ensures its disclosure in the ordinary course of a title search of the subject 
11.32 	property.

11.33 	Sec. 7. Minnesota Statutes 2010, section 18B.03, subdivision 1, is amended to read:
12.1 		Subdivision 1.Administration by commissioner. The commissioner shall 
12.2 	administer, implement, and enforce this chapter and the Department of Agriculture 
12.3 	is the lead state agency for the regulation of pesticides. The commissioner has the 
12.4 	sole regulatory authority over the terrestrial application of pesticides, including, but 
12.5 	not limited to, the application of pesticides to agricultural crops, structures, and other 
12.6 	nonaquatic environments. Except as provided in subdivision 3, a state agency other than 
12.7 	the Department of Agriculture shall not regulate or require permits for the terrestrial 
12.8 	application of pesticides, unless the target site includes the application of pesticides to 
12.9 	public waters, as defined in section 103G.005, subdivision 15.

12.10 	Sec. 8. Minnesota Statutes 2010, section 18C.005, is amended by adding a subdivision 
12.11 	to read:
12.12 		Subd. 1b.Ammonia and anhydrous ammonia. "Ammonia" and "anhydrous 
12.13 	ammonia" are used interchangeably and mean a compound formed by the chemical 
12.14 	combinations of the elements nitrogen and hydrogen in the molar proportion of one 
12.15 	part nitrogen to three parts hydrogen. This relationship is shown by the chemical 
12.16 	formula, NH3. On a weight basis, the ratio is 14 parts nitrogen to three parts hydrogen 
12.17 	or approximately 82 percent nitrogen to 18 percent hydrogen. Ammonia may exist in 
12.18 	either a gaseous or a liquid state. Ammonia or anhydrous ammonia does not include 
12.19 	aqua ammonia or ammonium hydroxide, which are solutions of ammonia in water and 
12.20 	are sometimes called ammonia.

12.21 	Sec. 9. Minnesota Statutes 2010, section 18C.111, is amended by adding a subdivision 
12.22 	to read:
12.23 		Subd. 4.Certification of regulatory compliance. (a) The commissioner may, 
12.24 	under rules adopted under section 18C.121, subdivision 1, certify a person to offer or 
12.25 	perform a regulatory compliance inspection of any person or site that stores, handles, or 
12.26 	distributes ammonia or anhydrous ammonia fertilizer.
12.27 	(b) Pursuant to that rule, a person certified under paragraph (a) may issue a 
12.28 	certification of compliance to an inspected person or site if the certified person documents 
12.29 	in writing full compliance with the provisions of this chapter and rules adopted under 
12.30 	this chapter.
12.31 	(c) A person or site issued a certification of compliance must provide a copy of the 
12.32 	certification to the commissioner immediately upon request or within 90 days following 
12.33 	certification.
13.1 	(d) Certifications of compliance are valid for a period of three years. The 
13.2 	commissioner may determine a different time period in the interest of public safety or for 
13.3 	other reasonable cause.

13.4 	Sec. 10. Minnesota Statutes 2010, section 18C.131, is amended to read:
13.5 	18C.131 FERTILIZER INSPECTION ACCOUNT.
13.6 	A fertilizer inspection account is established in the state treasury. The fees and 
13.7 	surcharges collected under this chapter and interest attributable to money in the account 
13.8 	must be deposited in the state treasury and credited to the fertilizer inspection account in 
13.9 	the agricultural fund. Money in the account, including interest earned, is appropriated to 
13.10 	the commissioner for the administration and enforcement of this chapter.

13.11 	Sec. 11. Minnesota Statutes 2010, section 18C.425, is amended by adding a subdivision 
13.12 	to read:
13.13 		Subd. 7.Payment of anhydrous ammonia public safety surcharge. The person 
13.14 	responsible for payment of the inspection fees under subdivision 6 must also pay an 
13.15 	anhydrous ammonia public safety surcharge of 75 cents per ton, with a minimum of $10 on 
13.16 	all tonnage reports. Ammonia or anhydrous ammonia sold or distributed to manufacturers 
13.17 	or exchanges between them are exempt from the surcharge imposed by this subdivision if 
13.18 	the ammonia or anhydrous ammonia is used exclusively for manufacturing purposes.

13.19 	Sec. 12. Minnesota Statutes 2010, section 18D.201, subdivision 5, is amended to read:
13.20 		Subd. 5.Violator liable for inspection costs. (a) The cost of reinspection and 
13.21 	reinvestigation may be assessed by the commissioner if the person subject to the corrective 
13.22 	action order or remedial action order does not comply with the order in a reasonable time 
13.23 	as provided in the order.
13.24 	(b) A $400 reinspection fee may be assessed by the commissioner for a person or 
13.25 	site that stores, handles, or distributes ammonia or anhydrous ammonia fertilizer if the 
13.26 	commissioner determines that the person or site had serious violations of chapter 18C or 
13.27 	rules adopted thereunder upon initial inspection.
13.28 	(b) (c) The commissioner may enter an order for recovery of the inspection and 
13.29 	investigation costs.

13.30 	Sec. 13. Minnesota Statutes 2010, section 18D.201, is amended by adding a 
13.31 	subdivision to read:
14.1 		Subd. 7.Compliance and inspection frequency. (a) The commissioner may 
14.2 	implement policies and procedures that provide for a decrease in the frequency of 
14.3 	regulatory inspection for a person or site issued a certification of compliance pursuant to 
14.4 	section 18C.111, subdivision 4.
14.5 	(b) The commissioner must consider the compliance history, enforcement record, 
14.6 	and other public safety or environmental risk factors in determining the eligibility of a 
14.7 	person or site for the reduced frequency of inspection described in paragraph (a). If the 
14.8 	commissioner determines that a person or site is ineligible, the commissioner must notify 
14.9 	the person or site of that ineligibility and the reasons for that determination.
14.10 	(c) The compliance findings of the commissioner's inspection of a person or site that 
14.11 	stores, handles, or distributes ammonia and anhydrous ammonia fertilizer may be used 
14.12 	as a basis for decreased frequency of regulatory inspection, as described in paragraphs 
14.13 	(a) and (b).

14.14 	Sec. 14. Minnesota Statutes 2010, section 18E.03, subdivision 4, is amended to read:
14.15 		Subd. 4.Fee. (a) The response and reimbursement fee consists of the surcharges and 
14.16 	any adjustments made by the commissioner in this subdivision and shall be collected by 
14.17 	the commissioner. The amount of the response and reimbursement fee shall be determined 
14.18 	and imposed annually by the commissioner as required to satisfy the requirements in 
14.19 	subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in 
14.20 	proportion to the amount of the surcharges listed in this subdivision. License application 
14.21 	categories under paragraph (d) must be charged in proportion to the amount of surcharges 
14.22 	imposed up to a maximum of 50 percent of the license fees set under chapters 18B and 
14.23 	18C.
14.24 	(b) The commissioner shall impose a surcharge on pesticides registered under 
14.25 	chapter 18B to be collected as a surcharge on the gross sales under section 18B.26, 
14.26 	subdivision 3, that is equal to 0.1 percent of sales of the pesticide in the state and sales 
14.27 	of pesticides for use in the state during the previous calendar year, except the surcharge 
14.28 	may not be imposed on pesticides that are sanitizers or disinfectants as determined by the 
14.29 	commissioner. No surcharge is required if the surcharge amount based on percent of 
14.30 	annual gross sales of a nonagricultural pesticide is less than $10. Sales of pesticides in 
14.31 	the state for use outside of the state are exempt from the surcharge in this paragraph if 
14.32 	the registrant, agricultural pesticide dealer, or pesticide dealer properly documents the 
14.33 	sale location and the distributors.
15.1 	(c) The commissioner shall impose a ten cents per ton surcharge on the inspection 
15.2 	fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant 
15.3 	amendments.
15.4 	(d) The commissioner shall impose a surcharge on the license application of persons 
15.5 	licensed under chapters 18B and 18C consisting of:
15.6 	(1) a $75 surcharge for each site where pesticides are stored or distributed, to 
15.7 	be imposed as a surcharge on pesticide dealer application fees under section 18B.31, 
15.8 	subdivision 5, and the agricultural pesticide dealer application fee under section 18B.316, 
15.9 	subdivision 10;
15.10 	(2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil 
15.11 	amendment is distributed, to be imposed on persons licensed under sections 18C.415 
15.12 	and 18C.425;
15.13 	(3) a $50 surcharge to be imposed on a structural pest control applicator license 
15.14 	application under section 18B.32, subdivision 6, for business license applications only;
15.15 	(4) a $20 surcharge to be imposed on commercial applicator license application fees 
15.16 	under section 18B.33, subdivision 7; and
15.17 	(5) a $20 surcharge to be imposed on noncommercial applicator license application 
15.18 	fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a 
15.19 	noncommercial applicator that is a state agency, political subdivision of the state, the 
15.20 	federal government, or an agency of the federal government.
15.21 	(e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold 
15.22 	for use outside of the state unless:
15.23 	(1) the distributor properly documents that it has less than $2,000,000 per year in 
15.24 	wholesale value of pesticides stored and transferred through the site; or
15.25 	(2) the registrant pays the surcharge under paragraph (b) and the registration fee 
15.26 	under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for 
15.27 	use outside of the state.
15.28 	(f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for 
15.29 	licenses, and inspection fees imposed on or after July 1, 1990.

15.30 	Sec. 15. Minnesota Statutes 2010, section 27.041, is amended by adding a subdivision 
15.31 	to read:
15.32 		Subd. 3.Account; appropriation. A wholesale produce dealers account is created 
15.33 	in the agricultural fund. All fees, charges, and penalties collected under sections 27.01 to 
15.34 	27.069 and 27.11 to 27.19, including interest attributable to that money, must be deposited 
16.1 	in the wholesale produce dealers account. Money in the account is appropriated to the 
16.2 	commissioner for the purposes of sections 27.01 to 27.069 and 27.11 to 27.19.

16.3 	Sec. 16. Minnesota Statutes 2010, section 38.01, is amended to read:
16.4 	38.01 COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.
16.5 	(a) An agricultural society or association may be incorporated by citizens of any 
16.6 	county, or two or more counties jointly, but only one agricultural society shall be organized 
16.7 	in any county. An agricultural society may sue and be sued in its corporate name; may 
16.8 	adopt bylaws, rules, and regulations, alter and amend the same; may purchase and hold, 
16.9 	lease and control any real or personal property deemed to promote the objects of the 
16.10 	society, and may rent, lease, sell, exchange, and convey the same. Any income from 
16.11 	the rental or lease of the property may be used for any or all of the following purposes: 
16.12 	(1) Acquisition of additional real property; (2) Construction of additional buildings; or 
16.13 	(3) Maintenance and care of the society's property. This section shall not be construed 
16.14 	to preclude the continuance of any agricultural society now existing or the granting of 
16.15 	aid to the society.
16.16 	(b) An agricultural society shall have jurisdiction and control of the grounds upon 
16.17 	which its fairs are held and of the streets and adjacent grounds during the fair, so far 
16.18 	as may be necessary for fair purposes, and are exempt from local zoning ordinances 
16.19 	throughout the year as provided in section 38.16.
16.20 	(c) The society may contract with the sheriff, local municipality, or security guard as 
16.21 	defined in section 626.88 to provide the society with police service. A person providing 
16.22 	police service pursuant to a contract is not, by reason of the contract, classified as an 
16.23 	employee of the agricultural society for any purpose other than the discharge of powers 
16.24 	and duties under the contract.
16.25 	(d) Any person who shall willfully violate any rule or regulation made by agricultural 
16.26 	societies during the days of a fair shall be guilty of a misdemeanor.
16.27 	The provisions of this section supersede all special laws on the same subject.

16.28 	Sec. 17. [115A.033] LIVESTOCK MORTALITIES.
16.29 	Notwithstanding any other law, the executive director of the Board of Animal Health 
16.30 	is responsible for the regulation and oversight of livestock mortality disposal.

16.31 	Sec. 18. Minnesota Statutes 2010, section 373.01, subdivision 1, is amended to read:
16.32 		Subdivision 1.Public corporation; listed powers. (a) Each county is a body politic 
16.33 	and corporate and may:
17.1 	(1) Sue and be sued.
17.2 	(2) Acquire and hold real and personal property for the use of the county, and lands 
17.3 	sold for taxes as provided by law.
17.4 	(3) Purchase and hold for the benefit of the county real estate sold by virtue of 
17.5 	judicial proceedings, to which the county is a party.
17.6 	(4) Sell, lease, and convey real or personal estate owned by the county, and give 
17.7 	contracts or options to sell, lease, or convey it, and make orders respecting it as deemed 
17.8 	conducive to the interests of the county's inhabitants.
17.9 	(5) Make all contracts and do all other acts in relation to the property and concerns 
17.10 	of the county necessary to the exercise of its corporate powers.
17.11 	(b) No sale, lease, or conveyance of real estate owned by the county, except the lease 
17.12 	of a residence acquired for the furtherance of an approved capital improvement project, nor 
17.13 	any contract or option for it, shall be valid, without first advertising for bids or proposals in 
17.14 	the official newspaper of the county for three consecutive weeks and once in a newspaper 
17.15 	of general circulation in the area where the property is located. The notice shall state the 
17.16 	time and place of considering the proposals, contain a legal description of any real estate, 
17.17 	and a brief description of any personal property. Leases that do not exceed $15,000 for any 
17.18 	one year may be negotiated and are not subject to the competitive bid procedures of this 
17.19 	section. All proposals estimated to exceed $15,000 in any one year shall be considered at 
17.20 	the time set for the bid opening, and the one most favorable to the county accepted, but the 
17.21 	county board may, in the interest of the county, reject any or all proposals.
17.22 	(c) Sales of personal property the value of which is estimated to be $15,000 or 
17.23 	more shall be made only after advertising for bids or proposals in the county's official 
17.24 	newspaper, on the county's Web site, or in a recognized industry trade journal. At the same 
17.25 	time it posts on its Web site or publishes in a trade journal, the county must publish in the 
17.26 	official newspaper, either as part of the minutes of a regular meeting of the county board 
17.27 	or in a separate notice, a summary of all requests for bids or proposals that the county 
17.28 	advertises on its Web site or in a trade journal. After publication in the official newspaper, 
17.29 	on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by 
17.30 	the electronic selling process authorized in section 471.345, subdivision 17. Sales of 
17.31 	personal property the value of which is estimated to be less than $15,000 may be made 
17.32 	either on competitive bids or in the open market, in the discretion of the county board. 
17.33 	"Web site" means a specific, addressable location provided on a server connected to the 
17.34 	Internet and hosting World Wide Web pages and other files that are generally accessible 
17.35 	on the Internet all or most of a day.
18.1 	(d) Notwithstanding anything in this section to the contrary herein, the county 
18.2 	may, when acquiring real property for county highway right-of-way, exchange parcels 
18.3 	of real property of substantially similar or equal value without advertising for bids. The 
18.4 	estimated values for these parcels shall must be determined by the county assessor or 
18.5 	private appraisal performed by a licensed Minnesota real estate appraiser. Before giving 
18.6 	final approval to any exchange of land, the county board shall hold a public hearing on 
18.7 	the exchange. At least two weeks before the hearing, the county auditor shall post a 
18.8 	notice in the auditor's office and the official newspaper of the county of the hearing that 
18.9 	contains a description of the lands affected.
18.10 	(e) If real estate or personal property remains unsold after advertising for and 
18.11 	consideration of bids or proposals the county may employ a broker to sell the property. 
18.12 	The broker may sell the property for not less than 90 percent of its appraised market value 
18.13 	as determined by the county. The broker's fee shall be set by agreement with the county but 
18.14 	may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
18.15 	(f) A county or its agent may rent a county-owned residence acquired for the 
18.16 	furtherance of an approved capital improvement project subject to the conditions set 
18.17 	by the county board and not subject to the conditions for lease otherwise provided by 
18.18 	paragraph (a), clause (4), and paragraphs (b), (c), (d), (e), and (g).
18.19 	(g) In no case shall lands be disposed of without there being reserved to the county 
18.20 	all iron ore and other valuable minerals in and upon the lands, with right to explore for, 
18.21 	mine and remove the iron ore and other valuable minerals, nor shall the minerals and 
18.22 	mineral rights be disposed of, either before or after disposition of the surface rights, 
18.23 	otherwise than by mining lease, in similar general form to that provided by section 93.20
18.24 	for mining leases affecting state lands. The lease shall be for a term not exceeding 50 
18.25 	years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 
18.26 	2,240 pounds, and fix a minimum amount of royalty payable during each year, whether 
18.27 	mineral is removed or not. Prospecting options for mining leases may be granted for 
18.28 	periods not exceeding one year. The options shall require, among other things, periodical 
18.29 	showings to the county board of the results of exploration work done.
18.30 	(h) Notwithstanding anything in this subdivision to the contrary, the county may, 
18.31 	when selling real property owned in fee simple that cannot be improved because of 
18.32 	noncompliance with local ordinances regarding minimum area, shape, frontage, or access, 
18.33 	proceed to sell the nonconforming parcel without advertising for bid. At the county's 
18.34 	discretion, the real property may be restricted to sale to adjoining landowners or may be 
18.35 	sold to any other interested party. The property shall be sold to the highest bidder, but 
18.36 	in no case shall the property be sold for less than 90 percent of its fair market value as 
19.1 	determined by the county assessor. All owners of land adjoining the land to be sold shall 
19.2 	be given a written notice at least 30 days before the sale. This paragraph shall be liberally 
19.3 	construed to encourage the sale of nonconforming real property and promote its return to 
19.4 	the tax roles.

19.5 	Sec. 19. CLEAN WATER FUND; EXTENSION OF APPROPRIATION 
19.6 	AVAILABILITY.
 19.7 	The appropriations under Laws 2009, chapter 172, article 2, section 2, paragraph (d), 
19.8 	for research and pilot projects related to ways agricultural practices contribute to restoring 
19.9 	impaired waters and assist with the development of TMDL plans, are available until spent.