SF 1016

1st Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 03/29/2011 10:46 a.m.

1.1A bill for an act 1.2relating to agriculture; appropriating money for agriculture, the Board of Animal 1.3Health, and the Agricultural Utilization Research Institute; changing certain 1.4agriculture-related provisions, requirements, and programs;amending Minnesota 1.5Statutes 2010, sections 18C.005, by adding a subdivision; 18C.111, by adding a 1.6subdivision; 18D.201, by adding a subdivision; 18E.03, subdivision 4; 27.041, 1.7by adding a subdivision; 38.01; 41A.12, subdivision 3; 373.01, subdivision 1; 1.8repealing Minnesota Statutes 2010, section 41A.09, subdivisions 1a, 2a, 3a, 4, 10. 1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 1.11 new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 1.12 new text begin in this act. new text end 1.13 new text begin 2012 new text end new text begin 2013 new text end new text begin Total new text end 1.14 new text begin General new text end new text begin $ new text end new text begin 42,287,000 new text end new text begin $ new text end new text begin 34,314,000 new text end new text begin $ new text end new text begin 76,601,000 new text end 1.15 new text begin Agricultural new text end new text begin $ new text end new text begin 800,000 new text end new text begin $ new text end new text begin 800,000 new text end new text begin $ new text end new text begin 1,600,000 new text end 1.16 new text begin Remediation new text end new text begin $ new text end new text begin 388,000 new text end new text begin $ new text end new text begin 388,000 new text end new text begin $ new text end new text begin 776,000 new text end 1.17 new text begin Total new text end new text begin $ new text end new text begin 43,475,000 new text end new text begin $ new text end new text begin 35,502,000 new text end new text begin $ new text end new text begin 78,977,000 new text end 1.18 Sec. 2. new text begin AGRICULTURE APPROPRIATIONS. new text end 1.19 new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 1.20 new text begin agencies and for the purposes specified in this act. The appropriations are from the general new text end 1.21 new text begin fund, or another named fund, and are available for the fiscal years indicated for each new text end 1.22 new text begin purpose. The figures "2012" and "2013" used in this act mean that the appropriations new text end 1.23 new text begin listed under them are available for the fiscal year ending June 30, 2012, or June 30, 2013, new text end 1.24 new text begin respectively. "The first year" is fiscal year 2012. "The second year" is fiscal year 2013. new text end 1.25 new text begin "The biennium" is fiscal years 2012 and 2013. new text end 2.1 new text begin APPROPRIATIONS new text end 2.2 new text begin Available for the Year new text end 2.3 new text begin Ending June 30 new text end 2.4 new text begin 2012 new text end new text begin 2013 new text end 2.5 Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end 2.6 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 35,851,000 new text end new text begin $ new text end new text begin 27,878,000 new text end 2.7 new text begin Appropriations by Fund new text end 2.8 new text begin 2012 new text end new text begin 2013 new text end 2.9 new text begin General new text end new text begin 34,663,000 new text end new text begin 26,690,000 new text end 2.10 new text begin Remediation new text end new text begin 388,000 new text end new text begin 388,000 new text end 2.11 new text begin Agricultural new text end new text begin 800,000 new text end new text begin 800,000 new text end 2.12 new text begin The amounts that may be spent for each new text end 2.13 new text begin purpose are specified in the following new text end 2.14 new text begin subdivisions. new text end 2.15 new text begin Subd. 2. new text end new text begin Protection Services new text end new text begin 12,193,000 new text end new text begin 12,193,000 new text end 2.16 new text begin Appropriations by Fund new text end 2.17 new text begin General new text end new text begin 11,805,000 new text end new text begin 11,805,000 new text end 2.18 new text begin Remediation new text end new text begin 388,000 new text end new text begin 388,000 new text end 2.19 new text begin $388,000 the first year and $388,000 the new text end 2.20 new text begin second year are from the remediation fund new text end 2.21 new text begin for administrative funding for the voluntary new text end 2.22 new text begin cleanup program. new text end 2.23 new text begin $75,000 the first year and $75,000 the second new text end 2.24 new text begin year are for compensation for destroyed or new text end 2.25 new text begin crippled animals under Minnesota Statutes, new text end 2.26 new text begin section 3.737. If the amount in the first year new text end 2.27 new text begin is insufficient, the amount in the second year new text end 2.28 new text begin is available in the first year. new text end 2.29 new text begin $75,000 the first year and $75,000 the second new text end 2.30 new text begin year are for compensation for crop damage new text end 2.31 new text begin under Minnesota Statutes, section 3.7371. If new text end 2.32 new text begin the amount in the first year is insufficient, the new text end 2.33 new text begin amount in the second year is available in the new text end 2.34 new text begin first year. new text end 3.1 new text begin If the commissioner determines that claims new text end 3.2 new text begin made under Minnesota Statutes, section new text end 3.3 new text begin 3.737 or 3.7371, are unusually high, amounts new text end 3.4 new text begin appropriated for either program may be new text end 3.5 new text begin transferred to the appropriation for the other new text end 3.6 new text begin program. new text end 3.7 new text begin $245,000 the first year and $245,000 the new text end 3.8 new text begin second year are for an increase in retail new text end 3.9 new text begin food handler inspections. This is a onetime new text end 3.10 new text begin appropriation. No later than February 1, new text end 3.11 new text begin 2013, the commissioner shall report to the new text end 3.12 new text begin chairs and ranking minority members of new text end 3.13 new text begin the legislative committees with jurisdiction new text end 3.14 new text begin over agriculture finance regarding the new text end 3.15 new text begin commissioner's progress in addressing the new text end 3.16 new text begin department's perceived shortfall of necessary new text end 3.17 new text begin inspections. new text end 3.18 3.19 new text begin Subd. 3. new text end new text begin Agricultural Marketing and new text end new text begin Development new text end new text begin 3,632,000 new text end new text begin 3,632,000 new text end 3.20 new text begin $186,000 the first year and $186,000 the new text end 3.21 new text begin second year are for transfer to the Minnesota new text end 3.22 new text begin grown account and may be used as grants new text end 3.23 new text begin for Minnesota grown promotion under new text end 3.24 new text begin Minnesota Statutes, section 17.102. Grants new text end 3.25 new text begin may be made for one year. Notwithstanding new text end 3.26 new text begin Minnesota Statutes, section 16A.28, the new text end 3.27 new text begin appropriations encumbered under contract on new text end 3.28 new text begin or before June 30, 2013, for Minnesota grown new text end 3.29 new text begin grants in this paragraph are available until new text end 3.30 new text begin June 30, 2015. $50,000 of the appropriation new text end 3.31 new text begin in each year is for efforts to promote new text end 3.32 new text begin Minnesota grown products in retail food new text end 3.33 new text begin establishments including but not limited to new text end 3.34 new text begin restaurants, grocery stores, and convenience new text end 3.35 new text begin stores. new text end 4.1 new text begin Up to $100,000 each year may be used new text end 4.2 new text begin for grants to farmers for demonstration new text end 4.3 new text begin projects involving sustainable agriculture as new text end 4.4 new text begin authorized in Minnesota Statutes, section new text end 4.5 new text begin 17.116. Of the amount for grants, up to new text end 4.6 new text begin $20,000 may be used for dissemination new text end 4.7 new text begin of information about the demonstration new text end 4.8 new text begin projects. Notwithstanding Minnesota new text end 4.9 new text begin Statutes, section 16A.28, the appropriations new text end 4.10 new text begin encumbered under contract on or before June new text end 4.11 new text begin 30, 2013, for sustainable agriculture grants new text end 4.12 new text begin in this paragraph are available until June 30, new text end 4.13 new text begin 2015. new text end 4.14 new text begin $100,000 the first year and $100,000 the new text end 4.15 new text begin second year are to provide training and new text end 4.16 new text begin technical assistance to county and town new text end 4.17 new text begin officials relating to livestock siting issues new text end 4.18 new text begin and local zoning and land use planning, new text end 4.19 new text begin including maintenance of the checklist new text end 4.20 new text begin template clarifying the federal, state, new text end 4.21 new text begin and local government requirements for new text end 4.22 new text begin consideration of an animal agriculture new text end 4.23 new text begin modernization or expansion project. For the new text end 4.24 new text begin training and technical assistance program, new text end 4.25 new text begin the commissioner shall continue to seek new text end 4.26 new text begin guidance, advice, and support of livestock new text end 4.27 new text begin producer organizations, general agricultural new text end 4.28 new text begin organizations, local government associations, new text end 4.29 new text begin academic institutions, other government new text end 4.30 new text begin agencies, and others with expertise in land new text end 4.31 new text begin use and agriculture. new text end 4.32 new text begin $10,000 the first year and $10,000 the new text end 4.33 new text begin second year are for annual cost-share new text end 4.34 new text begin payments to resident farmers or persons new text end 4.35 new text begin who sell, process, or package agricultural new text end 4.36 new text begin products in this state for the costs of organic new text end 5.1 new text begin certification. Annual cost-share payments new text end 5.2 new text begin per farmer must be two-thirds of the cost new text end 5.3 new text begin of the certification or $350, whichever is new text end 5.4 new text begin less. In any year that a resident farmer or new text end 5.5 new text begin person who sells, processes, or packages new text end 5.6 new text begin agricultural products in this state receives new text end 5.7 new text begin a federal organic certification cost-share new text end 5.8 new text begin payment, that resident farmer or person is new text end 5.9 new text begin not eligible for state cost-share payments. A new text end 5.10 new text begin certified farmer is eligible to receive annual new text end 5.11 new text begin certification cost-share payments for up to new text end 5.12 new text begin five years. The commissioner may allocate new text end 5.13 new text begin any excess appropriation in either fiscal year new text end 5.14 new text begin for organic market and program development new text end 5.15 new text begin including organic producer education efforts, new text end 5.16 new text begin assistance for persons transitioning from new text end 5.17 new text begin conventional to organic agriculture, or new text end 5.18 new text begin sustainable agriculture demonstration grants new text end 5.19 new text begin authorized under Minnesota Statutes, section new text end 5.20 new text begin 17.116, and pertaining to organic research or new text end 5.21 new text begin demonstration. Any unencumbered balance new text end 5.22 new text begin does not cancel at the end of the first year new text end 5.23 new text begin and is available for the second year. new text end 5.24 new text begin $100,000 each year is for a licensed new text end 5.25 new text begin education professional for the Agriculture new text end 5.26 new text begin in the Classroom program to develop and new text end 5.27 new text begin disseminate curriculum, provide teacher new text end 5.28 new text begin training opportunities, and work with new text end 5.29 new text begin schools to enhance agricultural literacy by new text end 5.30 new text begin incorporating agriculture into classroom new text end 5.31 new text begin curriculum. new text end 5.32 5.33 new text begin Subd. 4. new text end new text begin Bioenergy and Value-Added new text end new text begin Agriculture new text end new text begin 13,353,000 new text end new text begin 5,280,000 new text end 5.34 new text begin $13,353,000 the first year is for final new text end 5.35 new text begin ethanol producer deficiency payments under new text end 5.36 new text begin Minnesota Statutes, section 41A.09. If the new text end 6.1 new text begin appropriation in either year exceeds the total new text end 6.2 new text begin amount for which all producers are eligible, new text end 6.3 new text begin the balance in the appropriation is available new text end 6.4 new text begin for the agricultural growth, research, and new text end 6.5 new text begin innovation program under Minnesota new text end 6.6 new text begin Statutes, section 41A.12. The funding base new text end 6.7 new text begin for this program in fiscal year 2014 and fiscal new text end 6.8 new text begin year 2015 is $10,291,000 per year. new text end 6.9 6.10 new text begin Subd. 5. new text end new text begin Administration and Financial new text end new text begin Assistance new text end new text begin 6,673,000 new text end new text begin 6,773,000 new text end 6.11 new text begin Appropriations by Fund new text end 6.12 new text begin General new text end new text begin 5,873,000 new text end new text begin 5,973,000 new text end 6.13 new text begin Agricultural new text end new text begin 800,000 new text end new text begin 800,000 new text end 6.14 new text begin $634,000 the first year and $634,000 the new text end 6.15 new text begin second year are for continuation of the dairy new text end 6.16 new text begin development and profitability enhancement new text end 6.17 new text begin and dairy business planning grant programs new text end 6.18 new text begin established under Laws 1997, chapter new text end 6.19 new text begin 216, section 7, subdivision 2, and Laws new text end 6.20 new text begin 2001, First Special Session chapter 2, new text end 6.21 new text begin section 9, subdivision 2. The commissioner new text end 6.22 new text begin may allocate the available sums among new text end 6.23 new text begin permissible activities, including efforts to new text end 6.24 new text begin improve the quality of milk produced in the new text end 6.25 new text begin state in the proportions that the commissioner new text end 6.26 new text begin deems most beneficial to Minnesota's new text end 6.27 new text begin dairy farmers. The commissioner must new text end 6.28 new text begin submit a detailed accomplishment report new text end 6.29 new text begin and a work plan detailing future plans for, new text end 6.30 new text begin and anticipated accomplishments from, new text end 6.31 new text begin expenditures under this program to the new text end 6.32 new text begin chairs and ranking minority members of the new text end 6.33 new text begin legislative committees with jurisdiction over new text end 6.34 new text begin agricultural policy and finance on or before new text end 6.35 new text begin the start of each fiscal year. If significant new text end 6.36 new text begin changes are made to the plans in the course new text end 7.1 new text begin of the year, the commissioner must notify the new text end 7.2 new text begin chairs and ranking minority members. new text end 7.3 new text begin $47,000 the first year and $47,000 the new text end 7.4 new text begin second year are for the Northern Crops new text end 7.5 new text begin Institute. These appropriations may be spent new text end 7.6 new text begin to purchase equipment. new text end 7.7 new text begin $18,000 the first year and $18,000 the new text end 7.8 new text begin second year are for a grant to the Minnesota new text end 7.9 new text begin Livestock Breeders Association. new text end 7.10 new text begin $235,000 the first year and $235,000 the new text end 7.11 new text begin second year are for grants to the Minnesota new text end 7.12 new text begin Agricultural Education and Leadership new text end 7.13 new text begin Council for programs of the council under new text end 7.14 new text begin Minnesota Statutes, chapter 41D. new text end 7.15 new text begin $474,000 the first year and $474,000 the new text end 7.16 new text begin second year are for payments to county and new text end 7.17 new text begin district agricultural societies and associations new text end 7.18 new text begin under Minnesota Statutes, section 38.02, new text end 7.19 new text begin subdivision 1. Aid payments to county and new text end 7.20 new text begin district agricultural societies and associations new text end 7.21 new text begin shall be disbursed no later than July 15 of new text end 7.22 new text begin each year. These payments are the amount of new text end 7.23 new text begin aid from the state for an annual fair held in new text end 7.24 new text begin the previous calendar year. new text end 7.25 new text begin $1,000 the first year and $1,000 the second new text end 7.26 new text begin year are for grants to the Minnesota State new text end 7.27 new text begin Poultry Association. new text end 7.28 new text begin $108,000 the first year and $108,000 the new text end 7.29 new text begin second year are for annual grants to the new text end 7.30 new text begin Minnesota Turf Seed Council for basic new text end 7.31 new text begin and applied research on: (1) the improved new text end 7.32 new text begin production of forage and turf seed related to new text end 7.33 new text begin new and improved varieties; and (2) native new text end 7.34 new text begin plants, including plant breeding, nutrient new text end 7.35 new text begin management, pest management, disease new text end 8.1 new text begin management, yield, and viability. The grant new text end 8.2 new text begin recipient may subcontract with a qualified new text end 8.3 new text begin third party for some or all of the basic new text end 8.4 new text begin or applied research. The grant recipient new text end 8.5 new text begin must actively participate in the Agricultural new text end 8.6 new text begin Utilization Research Institute's Renewable new text end 8.7 new text begin Energy Roundtable. new text end 8.8 new text begin $500,000 the first year and $500,000 the new text end 8.9 new text begin second year are for grants to Second Harvest new text end 8.10 new text begin Heartland on behalf of Minnesota's six new text end 8.11 new text begin Second Harvest food banks for the purchase new text end 8.12 new text begin of milk for distribution to Minnesota's food new text end 8.13 new text begin shelves and other charitable organizations new text end 8.14 new text begin that are eligible to receive food from the food new text end 8.15 new text begin banks. Milk purchased under the grants must new text end 8.16 new text begin be acquired from Minnesota milk processors new text end 8.17 new text begin and based on low-cost bids. The milk must be new text end 8.18 new text begin allocated to each Second Harvest food bank new text end 8.19 new text begin serving Minnesota according to the formula new text end 8.20 new text begin used in the distribution of United States new text end 8.21 new text begin Department of Agriculture commodities new text end 8.22 new text begin under The Emergency Food Assistance new text end 8.23 new text begin Program (TEFAP). Second Harvest new text end 8.24 new text begin Heartland must submit quarterly reports new text end 8.25 new text begin to the commissioner on forms prescribed new text end 8.26 new text begin by the commissioner. The reports must new text end 8.27 new text begin include, but are not limited to, information new text end 8.28 new text begin on the expenditure of funds, the amount new text end 8.29 new text begin of milk purchased, and the organizations new text end 8.30 new text begin to which the milk was distributed. Second new text end 8.31 new text begin Harvest Heartland may enter into contracts new text end 8.32 new text begin or agreements with food banks for shared new text end 8.33 new text begin funding or reimbursement of the direct new text end 8.34 new text begin purchase of milk. Each food bank receiving new text end 8.35 new text begin money from this appropriation may use up to new text end 9.1 new text begin two percent of the grant for administrative new text end 9.2 new text begin expenses. new text end 9.3 new text begin $94,000 the first year and $94,000 the new text end 9.4 new text begin second year are for transfer to the Board of new text end 9.5 new text begin Trustees of the Minnesota State Colleges new text end 9.6 new text begin and Universities for statewide mental health new text end 9.7 new text begin counseling support to farm families and new text end 9.8 new text begin business operators through farm business new text end 9.9 new text begin management programs at Central Lakes new text end 9.10 new text begin College and Ridgewater College. new text end 9.11 new text begin $17,000 the first year and $17,000 the new text end 9.12 new text begin second year are for grants to the Minnesota new text end 9.13 new text begin Horticultural Society. new text end 9.14 new text begin Notwithstanding Minnesota Statutes, new text end 9.15 new text begin section 18C.131, $800,000 the first year new text end 9.16 new text begin and $800,000 the second year are from the new text end 9.17 new text begin fertilizer account in the agricultural fund new text end 9.18 new text begin for grants for fertilizer research as awarded new text end 9.19 new text begin by the Minnesota Agricultural Fertilizer new text end 9.20 new text begin Research and Education Council under new text end 9.21 new text begin Minnesota Statutes, section 18C.71. The new text end 9.22 new text begin amount appropriated in either fiscal year new text end 9.23 new text begin must not exceed 57 percent of the inspection new text end 9.24 new text begin fee revenue collected under Minnesota new text end 9.25 new text begin Statutes, section 18C.425, subdivision 6, new text end 9.26 new text begin during the previous fiscal year. No later new text end 9.27 new text begin than February 1, 2013, the commissioner new text end 9.28 new text begin shall report to the legislative committees new text end 9.29 new text begin with jurisdiction over agriculture finance. new text end 9.30 new text begin The report must include the progress and new text end 9.31 new text begin outcome of funded projects as well as the new text end 9.32 new text begin sentiment of the council concerning the need new text end 9.33 new text begin for additional research funds. new text end 10.1 new text begin $100,000 the second year is for a grant to the new text end 10.2 new text begin Center for Rural Policy and Development in new text end 10.3 new text begin St. Peter. new text end 10.4 new text begin The commissioner may allocate operating new text end 10.5 new text begin reductions in this subdivision to program new text end 10.6 new text begin operations throughout the agency. new text end 10.7 Sec. 4. new text begin BOARD OF ANIMAL HEALTH new text end new text begin $ new text end new text begin 4,841,000 new text end new text begin $ new text end new text begin 4,841,000 new text end 10.8 10.9 Sec. 5. new text begin AGRICULTURAL UTILIZATION new text end new text begin RESEARCH INSTITUTE new text end new text begin $ new text end new text begin 2,783,000 new text end new text begin $ new text end new text begin 2,783,000 new text end 10.10    Sec. 6. Minnesota Statutes 2010, section 18C.005, is amended by adding a subdivision 10.11to read: 10.12     new text begin Subd. 1b. new text end new text begin Ammonia and anhydrous ammonia. new text end new text begin "Ammonia" and "anhydrous new text end 10.13 new text begin ammonia" are used interchangeably and mean a compound formed by the chemical new text end 10.14 new text begin combinations of the elements nitrogen and hydrogen in the molar proportion of one new text end 10.15 new text begin part nitrogen to three parts hydrogen. This relationship is shown by the chemical new text end 10.16 new text begin formula, NH new text end new text begin 3 new text end new text begin . On a weight basis, the ratio is 14 parts nitrogen to three parts hydrogen new text end 10.17 new text begin or approximately 82 percent nitrogen to 18 percent hydrogen. Ammonia may exist in new text end 10.18 new text begin either a gaseous or a liquid state. Ammonia or anhydrous ammonia does not include new text end 10.19 new text begin aqua ammonia or ammonium hydroxide, which are solutions of ammonia in water and new text end 10.20 new text begin are sometimes called ammonia. new text end 10.21    Sec. 7. Minnesota Statutes 2010, section 18C.111, is amended by adding a subdivision 10.22to read: 10.23     new text begin Subd. 4. new text end new text begin Certification of regulatory compliance. new text end new text begin (a) The commissioner may, new text end 10.24 new text begin under rules adopted under section 18C.121, subdivision 1, certify a person to offer or new text end 10.25 new text begin perform a regulatory compliance inspection of any person or site that stores, handles, or new text end 10.26 new text begin distributes ammonia or anhydrous ammonia fertilizer. new text end 10.27 new text begin (b) Pursuant to those rules, a person certified under paragraph (a) may issue a new text end 10.28 new text begin certification of compliance to an inspected person or site if the certified person documents new text end 10.29 new text begin in writing full compliance with the provisions of this chapter and rules adopted under new text end 10.30 new text begin this chapter. new text end 10.31 new text begin (c) A person or site issued a certification of compliance must provide a copy of the new text end 10.32 new text begin certification to the commissioner immediately upon request or within 90 days following new text end 10.33 new text begin certification. new text end 11.1 new text begin (d) Certifications of compliance are valid for a period of three years. The new text end 11.2 new text begin commissioner may determine a different time period in the interest of public safety or for new text end 11.3 new text begin other reasonable cause. new text end 11.4    Sec. 8. Minnesota Statutes 2010, section 18D.201, is amended by adding a subdivision 11.5to read: 11.6     new text begin Subd. 7. new text end new text begin Compliance and inspection frequency. new text end new text begin (a) The commissioner may new text end 11.7 new text begin implement policies and procedures that provide for a decrease in the frequency of new text end 11.8 new text begin regulatory inspection for a person or site issued a certification of compliance pursuant to new text end 11.9 new text begin section 18C.111, subdivision 4. new text end 11.10 new text begin (b) The commissioner must consider the compliance history, enforcement record, new text end 11.11 new text begin and other public safety or environmental risk factors in determining the eligibility of a new text end 11.12 new text begin person or site for the reduced frequency of inspection described in paragraph (a). If the new text end 11.13 new text begin commissioner determines that a person or site is ineligible, the commissioner must notify new text end 11.14 new text begin the person or site of that ineligibility and the reasons for that determination. new text end 11.15 new text begin (c) The compliance findings of the commissioner's inspection of a person or site that new text end 11.16 new text begin stores, handles, or distributes ammonia and anhydrous ammonia fertilizer may be used new text end 11.17 new text begin as a basis for decreased frequency of regulatory inspection, as described in paragraphs new text end 11.18 new text begin (a) and (b). new text end 11.19    Sec. 9. Minnesota Statutes 2010, section 18E.03, subdivision 4, is amended to read: 11.20    Subd. 4. Fee. (a) The response and reimbursement fee consists of the surcharges and 11.21any adjustments made by the commissioner in this subdivision and shall be collected by 11.22the commissioner. The amount of the response and reimbursement fee shall be determined 11.23and imposed annually by the commissioner as required to satisfy the requirements in 11.24subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in 11.25proportion to the amount of the surcharges listed in this subdivision. License application 11.26categories under paragraph (d) must be charged in proportion to the amount of surcharges 11.27imposed up to a maximum of 50 percent of the license fees set under chapters 18B and 11.2818C. 11.29    (b) The commissioner shall impose a surcharge on pesticides registered under 11.30chapter 18B to be collected as a surcharge on the gross sales under section 18B.26, 11.31subdivision 3 , that is equal to 0.1 percent of sales of the pesticide in the state and sales 11.32of pesticides for use in the state during the previous calendar year, except the surcharge 11.33may not be imposed on pesticides that are sanitizers or disinfectants as determined by the 11.34commissioner. No surcharge is required if the surcharge amount based on percent of 12.1annual gross sales new text begin of a nonagricultural pesticide new text end is less than $10. Sales of pesticides in 12.2the state for use outside of the state are exempt from the surcharge in this paragraph if 12.3the registrant, agricultural pesticide dealer, or pesticide dealer properly documents the 12.4sale location and the distributors. 12.5    (c) The commissioner shall impose a ten cents per ton surcharge on the inspection 12.6fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant 12.7amendments. 12.8    (d) The commissioner shall impose a surcharge on the license application of persons 12.9licensed under chapters 18B and 18C consisting of: 12.10    (1) a $75 surcharge for each site where pesticides are stored or distributed, to 12.11be imposed as a surcharge on pesticide dealer application fees under section 18B.31, 12.12subdivision 5 , and the agricultural pesticide dealer application fee under section 18B.316, 12.13subdivision 10 ; 12.14    (2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil 12.15amendment is distributed, to be imposed on persons licensed under sections 18C.415 12.16and 18C.425; 12.17    (3) a $50 surcharge to be imposed on a structural pest control applicator license 12.18application under section 18B.32, subdivision 6, for business license applications only; 12.19    (4) a $20 surcharge to be imposed on commercial applicator license application fees 12.20under section 18B.33, subdivision 7; and 12.21    (5) a $20 surcharge to be imposed on noncommercial applicator license application 12.22fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a 12.23noncommercial applicator that is a state agency, political subdivision of the state, the 12.24federal government, or an agency of the federal government. 12.25    (e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold 12.26for use outside of the state unless: 12.27    (1) the distributor properly documents that it has less than $2,000,000 per year in 12.28wholesale value of pesticides stored and transferred through the site; or 12.29    (2) the registrant pays the surcharge under paragraph (b) and the registration fee 12.30under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for 12.31use outside of the state. 12.32    (f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for 12.33licenses, and inspection fees imposed on or after July 1, 1990. 12.34    Sec. 10. Minnesota Statutes 2010, section 27.041, is amended by adding a subdivision 12.35to read: 13.1     new text begin Subd. 3. new text end new text begin Account; appropriation. new text end new text begin A wholesale produce dealers account is created new text end 13.2 new text begin in the agricultural fund. All fees, charges, and penalties collected under sections 27.01 to new text end 13.3 new text begin 27.069 and 27.11 to 27.19, including interest attributable to that money, shall be deposited new text end 13.4 new text begin in the wholesale produce dealers account. Money in the account is appropriated to the new text end 13.5 new text begin commissioner for the purposes of sections 27.01 to 27.069 and 27.11 to 27.19. new text end 13.6    Sec. 11. Minnesota Statutes 2010, section 38.01, is amended to read: 13.738.01 COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS. 13.8(a) An agricultural society or association may be incorporated by citizens of any 13.9county, or two or more counties jointly, but only one agricultural society shall be organized 13.10in any county. An agricultural society may sue and be sued in its corporate name; may 13.11adopt bylaws, rules, and regulations, alter and amend the same; may purchase and hold, 13.12lease and control any real or personal property deemed to promote the objects of the 13.13society, and may rent, lease, sell, new text begin exchange, new text end and convey the same. Any income from 13.14the rental or lease of the property may be used for any or all of the following purposes: 13.15(1) Acquisition of additional real property; (2) Construction of additional buildings; or 13.16(3) Maintenance and care of the society's property. This section shall not be construed 13.17to preclude the continuance of any agricultural society now existing or the granting of 13.18aid to the society. 13.19(b) An agricultural society shall have jurisdiction and control of the grounds upon 13.20which its fairs are held and of the streets and adjacent grounds during the fair, so far 13.21as may be necessary for fair purposes, and are exempt from local zoning ordinances 13.22throughout the year as provided in section 38.16. 13.23(c) The society may contract with the sheriff, local municipality, or security guard as 13.24defined in section 626.88 to provide the society with police service. A person providing 13.25police service pursuant to a contract is not, by reason of the contract, classified as an 13.26employee of the agricultural society for any purpose other than the discharge of powers 13.27and duties under the contract. 13.28(d) Any person who shall willfully violate any rule or regulation made by agricultural 13.29societies during the days of a fair shall be guilty of a misdemeanor. 13.30The provisions of this section supersede all special laws on the same subject. 13.31    Sec. 12. Minnesota Statutes 2010, section 41A.12, subdivision 3, is amended to read: 13.32    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking 13.33minority members of the house of representatives and senate committees with jurisdiction 14.1over agriculture finance, must allocate available funds among eligible uses new text begin as specified by new text end 14.2 new text begin the legislature new text end , develop competitive eligibility criteria, and award funds on a needs basis. 14.3    Sec. 13. Minnesota Statutes 2010, section 373.01, subdivision 1, is amended to read: 14.4    Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic 14.5and corporate and may: 14.6    (1) Sue and be sued. 14.7    (2) Acquire and hold real and personal property for the use of the county, and lands 14.8sold for taxes as provided by law. 14.9    (3) Purchase and hold for the benefit of the county real estate sold by virtue of 14.10judicial proceedings, to which the county is a party. 14.11    (4) Sell, lease, and convey real or personal estate owned by the county, and give 14.12contracts or options to sell, lease, or convey it, and make orders respecting it as deemed 14.13conducive to the interests of the county's inhabitants. 14.14    (5) Make all contracts and do all other acts in relation to the property and concerns 14.15of the county necessary to the exercise of its corporate powers. 14.16    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease 14.17of a residence acquired for the furtherance of an approved capital improvement project, nor 14.18any contract or option for it, shall be valid, without first advertising for bids or proposals in 14.19the official newspaper of the county for three consecutive weeks and once in a newspaper 14.20of general circulation in the area where the property is located. The notice shall state the 14.21time and place of considering the proposals, contain a legal description of any real estate, 14.22and a brief description of any personal property. Leases that do not exceed $15,000 for any 14.23one year may be negotiated and are not subject to the competitive bid procedures of this 14.24section. All proposals estimated to exceed $15,000 in any one year shall be considered at 14.25the time set for the bid opening, and the one most favorable to the county accepted, but the 14.26county board may, in the interest of the county, reject any or all proposals. 14.27    (c) Sales of personal property the value of which is estimated to be $15,000 or 14.28more shall be made only after advertising for bids or proposals in the county's official 14.29newspaper, on the county's Web site, or in a recognized industry trade journal. At the same 14.30time it posts on its Web site or publishes in a trade journal, the county must publish in the 14.31official newspaper, either as part of the minutes of a regular meeting of the county board 14.32or in a separate notice, a summary of all requests for bids or proposals that the county 14.33advertises on its Web site or in a trade journal. After publication in the official newspaper, 14.34on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by 14.35the electronic selling process authorized in section 471.345, subdivision 17. Sales of 15.1personal property the value of which is estimated to be less than $15,000 may be made 15.2either on competitive bids or in the open market, in the discretion of the county board. 15.3"Web site" means a specific, addressable location provided on a server connected to the 15.4Internet and hosting World Wide Web pages and other files that are generally accessible 15.5on the Internet all or most of a day. 15.6    (d) Notwithstanding anything new text begin in this section new text end to the contrary herein, the county 15.7may, new text begin exchange parcels of real property of substantially similar or equal value without new text end 15.8 new text begin advertising for bids, subject to clause (1) or (2). new text end 15.9 new text begin (1) new text end When acquiring real property for county highway right-of-way, exchange parcels 15.10of real property of substantially similar or equal value without advertising for bids. the 15.11estimated values for these parcels shall be determined by the county assessor. 15.12 new text begin (2) When acquiring real property for any other purpose, the estimated values for new text end 15.13 new text begin these parcels must be determined by the county assessor or a private Minnesota licensed new text end 15.14 new text begin real estate appraiser. The private appraised value of the parcels must be substantially new text end 15.15 new text begin equal to the county assessor's estimated market value of similar land, as adjusted by the new text end 15.16 new text begin sales ratio determined by the commissioner of revenue. Before giving final approval to new text end 15.17 new text begin the exchange of land, the county board shall hold a public hearing on the exchange. At new text end 15.18 new text begin least two weeks before the hearing, the county auditor shall post a hearing notice in the new text end 15.19 new text begin auditor's office and the official newspaper of the county that contains a description of new text end 15.20 new text begin the lands affected. new text end 15.21    (e) If real estate or personal property remains unsold after advertising for and 15.22consideration of bids or proposals the county may employ a broker to sell the property. 15.23The broker may sell the property for not less than 90 percent of its appraised market value 15.24as determined by the county. The broker's fee shall be set by agreement with the county but 15.25may not exceed ten percent of the sale price and must be paid from the proceeds of the sale. 15.26    (f) A county or its agent may rent a county-owned residence acquired for the 15.27furtherance of an approved capital improvement project subject to the conditions set 15.28by the county board and not subject to the conditions for lease otherwise provided by 15.29paragraph (a), clause (4), and paragraphs (b), (c), (d), (e), and (g). 15.30    (g) In no case shall lands be disposed of without there being reserved to the county 15.31all iron ore and other valuable minerals in and upon the lands, with right to explore for, 15.32mine and remove the iron ore and other valuable minerals, nor shall the minerals and 15.33mineral rights be disposed of, either before or after disposition of the surface rights, 15.34otherwise than by mining lease, in similar general form to that provided by section 93.20 15.35for mining leases affecting state lands. The lease shall be for a term not exceeding 50 15.36years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 16.12,240 pounds, and fix a minimum amount of royalty payable during each year, whether 16.2mineral is removed or not. Prospecting options for mining leases may be granted for 16.3periods not exceeding one year. The options shall require, among other things, periodical 16.4showings to the county board of the results of exploration work done. 16.5    (h) Notwithstanding anything in this subdivision to the contrary, the county may, 16.6when selling real property owned in fee simple that cannot be improved because of 16.7noncompliance with local ordinances regarding minimum area, shape, frontage, or access, 16.8proceed to sell the nonconforming parcel without advertising for bid. At the county's 16.9discretion, the real property may be restricted to sale to adjoining landowners or may be 16.10sold to any other interested party. The property shall be sold to the highest bidder, but 16.11in no case shall the property be sold for less than 90 percent of its fair market value as 16.12determined by the county assessor. All owners of land adjoining the land to be sold shall 16.13be given a written notice at least 30 days before the sale. This paragraph shall be liberally 16.14construed to encourage the sale of nonconforming real property and promote its return to 16.15the tax roles. 16.16    Sec. 14. new text begin REPEALER. new text end 16.17 new text begin Minnesota Statutes 2010, section 41A.09, subdivisions 1a, 2a, 3a, 4, and 10, new text end new text begin are new text end 16.18 new text begin repealed. new text end 16.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective June 30, 2012. new text end