1.1 	A bill for an act
1.2 	relating to agriculture; making policy, technical, conforming, and clarifying 
1.3 	changes to provisions related to agricultural law; modifying provisions related 
1.4 	to pesticide control, agricultural resource loan and ethanol development, the 
1.5 	Rural Finance Authority, grain buyers, and other agriculture-related provisions; 
1.6 	establishing the Minnesota agricultural water quality program; modifying 
1.7 	noxious weed law; modifying definition of E85; authorizing rulemaking;
1.8 	amending Minnesota Statutes 2012, sections 17.118, subdivision 2; 18.77, 
1.9 	subdivisions 3, 4, 10, 12; 18.78, subdivision 3; 18.79, subdivisions 6, 13; 18.82, 
1.10 	subdivision 1; 18.91, subdivisions 1, 2; 18B.01, by adding a subdivision; 
1.11 	18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3; 
1.12 	18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 31.94; 41A.105, 
1.13 	subdivision 5; 41A.12, by adding a subdivision; 41B.04, subdivision 9; 223.17, 
1.14 	by adding a subdivision; 232.22, by adding a subdivision; 296A.01, subdivision 
1.15 	19; proposing coding for new law in Minnesota Statutes, chapters 17; 18; 
1.16 	repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07, 
1.17 	subdivision 6; Minnesota Rules, parts 1505.0751, subparts 7, 8; 1510.0011, 
1.18 	subparts 1, 4; 1510.0020; 1510.0030; 1510.0040; 1510.0050; 1510.0060; 
1.19 	1510.0070; 1510.0080; 1510.0090; 1510.0100; 1510.0111; 1510.0161; 
1.20 	1510.0171; 1510.0180; 1510.0200; 1510.0210; 1510.0220; 1510.0231; 
1.21 	1510.0241; 1510.0261; 1510.0340; 1510.0350; 1510.0360.
1.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23 	ARTICLE 1
1.24 	POLICY AND TECHNICAL CHANGES

1.25 	Section 1. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
1.26 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
1.27 	subdivision have the meanings given them.
1.28 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
1.29 	cervidae, ratitae, bison, sheep, horses, and llamas.
1.30 	(c) "Qualifying expenditures" means the amount spent for:
2.1 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
2.2 	production of livestock or livestock products;
2.3 	(2) the development of pasture for use by livestock including, but not limited to, the 
2.4 	acquisition, development, or improvement of:
2.5 	(i) lanes used by livestock that connect pastures to a central location;
2.6 	(ii) watering systems for livestock on pasture including water lines, booster pumps, 
2.7 	and well installations;
2.8 	(iii) livestock stream crossing stabilization; and
2.9 	(iv) fences; or
2.10 	(3) the acquisition of equipment for livestock housing, confinement, feeding, and 
2.11 	waste management including, but not limited to, the following:
2.12 	(i) freestall barns;
2.13 	(ii) watering facilities;
2.14 	(iii) feed storage and handling equipment;
2.15 	(iv) milking parlors;
2.16 	(v) robotic equipment;
2.17 	(vi) scales;
2.18 	(vii) milk storage and cooling facilities;
2.19 	(viii) bulk tanks;
2.20 	(ix) computer hardware and software and associated equipment used to monitor 
2.21 	the productivity and feeding of livestock;
2.22 	(x) manure pumping and storage facilities;
2.23 	(xi) swine farrowing facilities;
2.24 	(xii) swine and cattle finishing barns;
2.25 	(xiii) calving facilities;
2.26 	(xiv) digesters;
2.27 	(xv) equipment used to produce energy;
2.28 	(xvi) on-farm processing facilities equipment;
2.29 	(xvii) fences; and
2.30 	(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
2.31 	Except for qualifying pasture development expenditures under clause (2), qualifying 
2.32 	expenditures only include amounts that are allowed to be capitalized and deducted under 
2.33 	either section 167 or 179 of the Internal Revenue Code in computing federal taxable 
2.34 	income. Qualifying expenditures do not include an amount paid to refinance existing debt.
2.35 	(d) "Qualifying period" means, for a grant awarded during a fiscal year, that full 
2.36 	calendar year of which the first six months precede the first day of the current fiscal year. For 
3.1 	example, an eligible person who makes qualifying expenditures during calendar year 2008 
3.2 	is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

3.3 	Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
3.4 	to read:
3.5 		Subd. 4a.Bulk pesticide storage facility. "Bulk pesticide storage facility" means a 
3.6 	facility that is required to have a permit under section 18B.14.

3.7 	Sec. 3. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
3.8 		Subd. 2a.Disposal site requirement. (a) For agricultural waste pesticides, the 
3.9 	commissioner must designate a place in each county of the state that is available at least 
3.10 	every other year for persons to dispose of unused portions of agricultural pesticides. The 
3.11 	commissioner shall consult with the person responsible for solid waste management 
3.12 	and disposal in each county to determine an appropriate location and to advertise each 
3.13 	collection event. The commissioner may provide a collection opportunity in a county 
3.14 	more frequently if the commissioner determines that a collection is warranted.
3.15 	(b) For nonagricultural waste pesticides, the commissioner must provide a disposal 
3.16 	opportunity each year in each county or enter into a contract with a group of counties 
3.17 	under a joint powers agreement or contract for household hazardous waste disposal.
3.18 	(c) As provided under subdivision 7, the commissioner may enter into cooperative 
3.19 	agreements with local units of government to provide the collections required under 
3.20 	paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative 
3.21 	agreement, with funding for reasonable costs incurred including, but not limited to, related 
3.22 	supplies, transportation, advertising, and disposal costs as well as reasonable overhead 
3.23 	costs.
3.24 	(d) A person who collects waste pesticide under this section shall, on a form 
3.25 	provided or in a method approved by the commissioner, record information on each 
3.26 	waste pesticide product collected including, but not limited to, the quantity collected 
3.27 	and either the product name and its active ingredient or ingredients or the United States 
3.28 	Environmental Protection Agency registration number. The person must submit this 
3.29 	information to the commissioner at least annually by January 30.
3.30 	(e) Notwithstanding the recording and reporting requirements of paragraph (d), 
3.31 	persons are not required to record or report agricultural or nonagricultural waste pesticide 
3.32 	collected in 2014 and 2015. The commissioner shall analyze existing collection data 
3.33 	to identify trends that will inform future collection strategies to better meet the needs 
3.34 	and nature of current waste pesticide streams. By January 15, 2015, the commissioner 
4.1 	shall report analysis, recommendations, and proposed policy changes to this program to 
4.2 	legislative committees with jurisdiction over agriculture finance and policy.

4.3 	Sec. 4. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
4.4 		Subd. 4.Pesticide storage safeguards at application sites. A person may not 
4.5 	allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in 
4.6 	or on any site without safeguards adequate to prevent an incident. Pesticides may not be 
4.7 	stored in any location with an open drain.

4.8 	Sec. 5. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
4.9 		Subd. 5.Use of public water supplies for filling application equipment. (a) A 
4.10 	person may not fill pesticide application equipment directly from a public water supply, 
4.11 	as defined in section 144.382, or from public waters, as defined in section 103G.005, 
4.12 	subdivision 15, unless the outlet from the public water supply is equipped with a backflow 
4.13 	prevention device that complies with and is installed in accordance with the Minnesota 
4.14 	Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280. A nurse tank not 
4.15 	connected to the water supply, an atmospheric vacuum breaker (AVB), and air gap that is 
4.16 	2.0 times the effective diameter of the outlet, a pressurized vacuum breaker (PVB), or 
4.17 	a reduced pressure principle backflow prevention device (RPZ) must also comply with 
4.18 	the requirements under the Minnesota Plumbing Code under Minnesota Rules, parts 
4.19 	4715.2000 to 4715.2280.
4.20 	(b) Cross connections between a water supply use for filling pesticide application 
4.21 	equipment are prohibited.
4.22 	(c) This subdivision does not apply to permitted applications of aquatic pesticides to 
4.23 	public waters.

4.24 	Sec. 6. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
4.25 		Subd. 7.Cleaning equipment in or near surface water Pesticide handling 
4.26 	restrictions. (a) A person may not: fill, clean, unload, or park pesticide application 
4.27 	equipment where pesticides or materials contaminated with pesticides could enter ditches, 
4.28 	surface water, groundwater, wells, drains, or sewers. For wells, the setbacks established in 
4.29 	Minnesota Rules, part 4725.4450, apply.
4.30 	(1) clean pesticide application equipment in surface waters of the state; or
4.31 	(2) fill or clean pesticide application equipment adjacent to surface waters, 
4.32 	ditches, or wells where, because of the slope or other conditions, pesticides or materials 
5.1 	contaminated with pesticides could enter or contaminate the surface waters, groundwater, 
5.2 	or wells, as a result of overflow, leakage, or other causes.
5.3 	(b) This subdivision does not apply to permitted application of aquatic pesticides to 
5.4 	public waters.

5.5 	Sec. 7. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
5.6 		Subd. 3.Registration application and gross sales fee. (a) For an agricultural 
5.7 	pesticide, a registrant shall pay an annual registration application fee for each agricultural 
5.8 	pesticide of $350. The fee is due by December 31 preceding the year for which the 
5.9 	application for registration is made. The fee is nonrefundable.
5.10 	(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual 
5.11 	registration application fee for each nonagricultural pesticide of $350. The fee is due by 
5.12 	December 31 preceding the year for which the application for registration is made. The 
5.13 	fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to 
5.14 	the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural 
5.15 	pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into 
5.16 	the state for use in this state. The commissioner may not assess a fee under this paragraph 
5.17 	if the amount due based on percent of annual gross sales is less than $10 No fee is required 
5.18 	if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide 
5.19 	is less than $10. The registrant shall secure sufficient sales information of nonagricultural 
5.20 	pesticides distributed into this state from distributors and dealers, regardless of distributor 
5.21 	location, to make a determination. Sales of nonagricultural pesticides in this state and 
5.22 	sales of nonagricultural pesticides for use in this state by out-of-state distributors are not 
5.23 	exempt and must be included in the registrant's annual report, as required under paragraph 
5.24 	(g), and fees shall be paid by the registrant based upon those reported sales. Sales of 
5.25 	nonagricultural pesticides in the state for use outside of the state are exempt from the 
5.26 	gross sales fee in this paragraph if the registrant properly documents the sale location and 
5.27 	distributors. A registrant paying more than the minimum fee shall pay the balance due by 
5.28 	March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the 
5.29 	preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or 
5.30 	disinfectant is exempt from the gross sales fee.
5.31 	(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed 
5.32 	pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the 
5.33 	agricultural pesticide in the state and the annual gross sales of the agricultural pesticide 
5.34 	sold into the state for use in this state.
6.1 	(d) In those cases where a registrant first sells an agricultural pesticide in or into the 
6.2 	state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer 
6.3 	license and is responsible for payment of the annual gross sales fee under paragraph (c), 
6.4 	record keeping under paragraph (i), and all other requirements of section 18B.316.
6.5 	(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, 
6.6 	by the commissioner on the registration and sale of pesticides is less than $6,600,000, the 
6.7 	commissioner, after a public hearing, may increase proportionally the pesticide sales and 
6.8 	product registration fees under this chapter by the amount necessary to ensure this level 
6.9 	of revenue is achieved. The authority under this section expires on June 30, 2014. The 
6.10 	commissioner shall report any fee increases under this paragraph 60 days before the fee 
6.11 	change is effective to the senate and house of representatives agriculture budget divisions.
6.12 	(f) An additional fee of 50 percent of the registration application fee must be paid by 
6.13 	the applicant for each pesticide to be registered if the application is a renewal application 
6.14 	that is submitted after December 31.
6.15 	(g) A registrant must annually report to the commissioner the amount, type and 
6.16 	annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or 
6.17 	otherwise distributed in the state. The report shall be filed by March 1 for the previous 
6.18 	year's registration. The commissioner shall specify the form of the report or approve 
6.19 	the method for submittal of the report and may require additional information deemed 
6.20 	necessary to determine the amount and type of nonagricultural pesticide annually 
6.21 	distributed in the state. The information required shall include the brand name, United 
6.22 	States Environmental Protection Agency registration number, and amount of each 
6.23 	nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but 
6.24 	the information collected, if made public, shall be reported in a manner which does not 
6.25 	identify a specific brand name in the report.
6.26 	(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually 
6.27 	report to the commissioner the amount, type, and annual gross sales of each registered 
6.28 	agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the 
6.29 	state for use in the state. The report must be filed by January 31 for the previous year's 
6.30 	sales. The commissioner shall specify the form, contents, and approved electronic method 
6.31 	for submittal of the report and may require additional information deemed necessary to 
6.32 	determine the amount and type of agricultural pesticide annually distributed within the 
6.33 	state or into the state. The information required must include the brand name, United States 
6.34 	Environmental Protection Agency registration number, and amount of each agricultural 
6.35 	pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
7.1 	(i) A person who registers a pesticide with the commissioner under paragraph (b), 
7.2 	or a registrant under paragraph (d), shall keep accurate records for five years detailing 
7.3 	all distribution or sales transactions into the state or in the state and subject to a fee and 
7.4 	surcharge under this section.
7.5 	(j) The records are subject to inspection, copying, and audit by the commissioner 
7.6 	and must clearly demonstrate proof of payment of all applicable fees and surcharges 
7.7 	for each registered pesticide product sold for use in this state. A person who is located 
7.8 	outside of this state must maintain and make available records required by this subdivision 
7.9 	in this state or pay all costs incurred by the commissioner in the inspecting, copying, or 
7.10 	auditing of the records.
7.11 	(k) The commissioner may adopt by rule regulations that require persons subject 
7.12 	to audit under this section to provide information determined by the commissioner to be 
7.13 	necessary to enable the commissioner to perform the audit.
7.14 	(l) A registrant who is required to pay more than the minimum fee for any pesticide 
7.15 	under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee 
7.16 	paid after March 1 in the year for which the license is to be issued.

7.17 	Sec. 8. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
7.18 		Subdivision 1.Requirement. (a) A person must not distribute offer for sale or sell 
7.19 	an agricultural pesticide in the state or into the state without first obtaining an agricultural 
7.20 	pesticide dealer license.
7.21 	(b) Each location or place of business from which an agricultural pesticide is 
7.22 	distributed offered for sale or sold in the state or into the state is required to have a 
7.23 	separate agricultural pesticide dealer license.
7.24 	(c) A person who is a licensed pesticide dealer under section 18B.31 is not required 
7.25 	to also be licensed under this subdivision.

7.26 	Sec. 9. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
7.27 		Subd. 3.Resident agent. A person required to be licensed under subdivisions 1 
7.28 	and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who 
7.29 	operates from a location or place of business outside the state and who distributes offers 
7.30 	for sale or sells an agricultural pesticide into the state, must continuously maintain in 
7.31 	this state the following:
7.32 	(1) a registered office; and
7.33 	(2) a registered agent, who may be either a resident of this state whose business 
7.34 	office or residence is identical with the registered office under clause (1), a domestic 
8.1 	corporation or limited liability company, or a foreign corporation of limited liability 
8.2 	company authorized to transact business in this state and having a business office identical 
8.3 	with the registered office.
8.4 	A person licensed under this section or section 18B.31 shall annually file with the 
8.5 	commissioner, either at the time of initial licensing or as part of license renewal, the name, 
8.6 	address, telephone number, and e-mail address of the licensee's registered agent.
8.7 	For licensees under section 18B.31 who are located in the state, the licensee is 
8.8 	the registered agent.

8.9 	Sec. 10. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
8.10 		Subd. 4.Responsibility. The resident agent is responsible for the acts of a licensed 
8.11 	agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who 
8.12 	operates from a location or place of business outside the state and who distributes offers 
8.13 	for sale or sells an agricultural pesticide into the state, as well as the acts of the employees 
8.14 	of those licensees.

8.15 	Sec. 11. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
8.16 		Subd. 8.Report of sales and payment to commissioner. A person who is an 
8.17 	agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who 
8.18 	distributes offers for sale or sells an agricultural pesticide in or into the state, and a 
8.19 	pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no 
8.20 	later than January 31 of each year report and pay applicable fees on annual gross sales 
8.21 	of agricultural pesticides to the commissioner pursuant to requirements under section 
8.22 	18B.26, subdivision 3, paragraphs (c) and (h).

8.23 	Sec. 12. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
8.24 		Subd. 9.Application. (a) A person must apply to the commissioner for an 
8.25 	agricultural pesticide dealer license on forms and in a manner approved by the 
8.26 	commissioner.
8.27 	(b) The applicant must be the person in charge of each location or place of business 
8.28 	from which agricultural pesticides are distributed offered for sale or sold in or into the state.
8.29 	(c) The commissioner may require that the applicant provide information regarding 
8.30 	the applicant's proposed operations and other information considered pertinent by the 
8.31 	commissioner.
9.1 	(d) The commissioner may require additional demonstration of licensee qualification 
9.2 	if the licensee has had a license suspended or revoked, or has otherwise had a history of 
9.3 	violations in another state or violations of this chapter.
9.4 	(e) A licensed agricultural pesticide dealer who changes the dealer's address or place 
9.5 	of business must immediately notify the commissioner of the change.
9.6 	(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide 
9.7 	dealer license is complete only when a report and any applicable payment of fees under 
9.8 	subdivision 8 are received by the commissioner.

9.9 	Sec. 13. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
9.10 		Subd. 4.Storage, handling, Incident response, and disposal plan. A pesticide 
9.11 	dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest 
9.12 	control applicator or the business that the applicator is employed by business must develop 
9.13 	and maintain a an incident response plan that describes its pesticide storage, handling, 
9.14 	incident response, and disposal practices the actions that will be taken to prevent and 
9.15 	respond to pesticide incidents. The plan must contain the same information as forms 
9.16 	provided by the commissioner. The plan must be kept at a principal business site or location 
9.17 	within this state and must be submitted to the commissioner upon request on forms provided 
9.18 	by the commissioner. The plan must be available for inspection by the commissioner.

9.19 	Sec. 14. Minnesota Statutes 2012, section 31.94, is amended to read:
9.20 	31.94 COMMISSIONER DUTIES.
9.21 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
9.22 	commissioner shall:
9.23 	(1) survey producers and support services and organizations to determine 
9.24 	information and research needs in the area of organic agriculture practices;
9.25 	(2) work with the University of Minnesota to demonstrate the on-farm applicability 
9.26 	of organic agriculture practices to conditions in this state;
9.27 	(3) direct the programs of the department so as to work toward the promotion of 
9.28 	organic agriculture in this state;
9.29 	(4) inform agencies of how state or federal programs could utilize and support 
9.30 	organic agriculture practices; and
9.31 	(5) work closely with producers, the University of Minnesota, the Minnesota Trade 
9.32 	Office, and other appropriate organizations to identify opportunities and needs as well 
9.33 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
9.34 	teaching, marketing, and extension work relating to organic agriculture.
10.1 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, 
10.2 	in conjunction with the task force created in paragraph (c), shall report on the status of 
10.3 	organic agriculture in Minnesota to the legislative policy and finance committees and 
10.4 	divisions with jurisdiction over agriculture. The report must include available data on 
10.5 	organic acreage and production, available data on the sales or market performance of 
10.6 	organic products, and recommendations regarding programs, policies, and research efforts 
10.7 	that will benefit Minnesota's organic agriculture sector.
10.8 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
10.9 	University of Minnesota on policies and programs that will improve organic agriculture in 
10.10 	Minnesota, including how available resources can most effectively be used for outreach, 
10.11 	education, research, and technical assistance that meet the needs of the organic agriculture 
10.12 	community. The task force must consist of the following residents of the state:
10.13 	(1) three organic farmers using organic agriculture methods;
10.14 	(2) one wholesaler or distributor of organic products;
10.15 	(3) one representative of organic certification agencies;
10.16 	(4) two organic processors;
10.17 	(5) one representative from University of Minnesota Extension;
10.18 	(6) one University of Minnesota faculty member;
10.19 	(7) one representative from a nonprofit organization representing producers;
10.20 	(8) two public members;
10.21 	(9) one representative from the United States Department of Agriculture;
10.22 	(10) one retailer of organic products; and
10.23 	(11) one organic consumer representative.
10.24 	The commissioner, in consultation with the director of the Minnesota Agricultural 
10.25 	Experiment Station; the dean and director of University of Minnesota Extension; and the 
10.26 	dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint 
10.27 	members to serve staggered two three-year terms.
10.28 	Compensation and removal of members are governed by section 15.059, subdivision 
10.29 	6. The task force must meet at least twice each year and expires on June 30, 2013 2016.
10.30 	(d) For the purposes of expanding, improving, and developing production and 
10.31 	marketing of the organic products of Minnesota agriculture, the commissioner may 
10.32 	receive funds from state and federal sources and spend them, including through grants or 
10.33 	contracts, to assist producers and processors to achieve certification, to conduct education 
10.34 	or marketing activities, to enter into research and development partnerships, or to address 
10.35 	production or marketing obstacles to the growth and well-being of the industry.
11.1 	(e) The commissioner may facilitate the registration of state organic production 
11.2 	and handling operations including those exempt from organic certification according to 
11.3 	Code of Federal Regulations, title 7, section 205.101, and certification agents operating 
11.4 	within the state.

11.5 	Sec. 15. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
11.6 		Subd. 5.Expiration. This section expires June 30, 2014 2015.

11.7 	Sec. 16. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision 
11.8 	to read:
11.9 		Subd. 3a.Grant awards. Grant projects may continue for up to three years. 
11.10 	Multiyear projects must be reevaluated by the commissioner before second- and third-year 
11.11 	funding is approved. A project is limited to one grant for its funding.

11.12 	Sec. 17. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
11.13 		Subd. 9.Restructured loan agreement. (a) For a deferred restructured loan, all 
11.14 	payments on the primary and secondary principal, all payments of interest on the secondary 
11.15 	principal, and an agreed portion of the interest payable to the eligible agricultural lender 
11.16 	on the primary principal must be deferred to the end of the term of the loan.
11.17 	(b) Interest on secondary principal must accrue at a below market interest rate.
11.18 	(c) At the conclusion of the term of the restructured loan, the borrower owes primary 
11.19 	principal, secondary principal, and deferred interest on primary and secondary principal. 
11.20 	However, part of this balloon payment may be forgiven following an appraisal by the 
11.21 	lender and the authority to determine the current market value of the real estate subject to 
11.22 	the mortgage. If the current market value of the land after appraisal is less than the amount 
11.23 	of debt owed by the borrower to the lender and authority on this obligation, that portion of 
11.24 	the obligation that exceeds the current market value of the real property must be forgiven 
11.25 	by the lender and the authority in the following order:
11.26 	(1) deferred interest on secondary principal;
11.27 	(2) secondary principal;
11.28 	(3) deferred interest on primary principal;
11.29 	(4) primary principal as provided in an agreement between the authority and the 
11.30 	lender; and
11.31 	(5) accrued but not deferred interest on primary principal.
11.32 	(d) For an amortized restructured loan, payments must include installments on 
11.33 	primary principal and interest on the primary principal. An amortized restructured loan 
12.1 	must be amortized over a time period and upon terms to be established by the authority by 
12.2 	rule.
12.3 	(e) A borrower may prepay the restructured loan, with all primary and secondary 
12.4 	principal and interest and deferred interest at any time without prepayment penalty.
12.5 	(f) The authority may not participate in refinancing a restructured loan at the 
12.6 	conclusion of the restructured loan.

12.7 	Sec. 18. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision 
12.8 	to read:
12.9 		Subd. 7a.Bond requirements; claims. For entities licensed under this chapter 
12.10 	and chapter 232, the bond requirements and claims against the bond are governed under 
12.11 	section 232.22, subdivision 6a.

12.12 	Sec. 19. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision 
12.13 	to read:
12.14 		Subd. 6a.Bond determinations. If a public grain warehouse operator is licensed 
12.15 	under both this chapter and chapter 223, the warehouse shall have its bond determined 
12.16 	by its gross annual grain purchase amount or its annual average grain storage value, 
12.17 	whichever is greater. For those entities licensed under this chapter and chapter 223, the 
12.18 	entire bond shall be available to any claims against the bond for claims filed under this 
12.19 	chapter and chapter 223.

12.20 	Sec. 20. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
12.21 		Subd. 19.E85. "E85" means a petroleum product that is a blend of agriculturally 
12.22 	derived denatured ethanol and gasoline or natural gasoline that typically contains not more 
12.23 	than 85 percent ethanol by volume, but at a minimum must contain 60 greater than 50
12.24 	 percent ethanol by volume. For the purposes of this chapter, the energy content of E85 
12.25 	will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in 
12.26 	alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification 
12.27 	D5798-07 D5798-11.

12.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.29 	Sec. 21. REVISOR'S INSTRUCTION.
 12.30 	The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, 
12.31 	subdivision 4a, as subdivision 4b and correct any cross-references.

13.1 	Sec. 22.  REPEALER.
 13.2 	(a) Minnesota Statutes 2012, section 18B.07, subdivision 6, is repealed.
13.3 	(b) Minnesota Rules, parts 1505.0751, subparts 7 and 8; 1510.0011, subparts 1 and 
13.4 	4; 1510.0020; 1510.0030; 1510.0040; 1510.0050; 1510.0060; 1510.0070; 1510.0080; 
13.5 	1510.0090; 1510.0100; 1510.0111; 1510.0161; 1510.0171; 1510.0180; 1510.0200; 
13.6 	1510.0210; 1510.0220; 1510.0231; 1510.0241; 1510.0261; 1510.0340; 1510.0350; and 
13.7 	1510.0360, are repealed.

13.8 	ARTICLE 2
13.9 	MINNESOTA AGRICULTURAL WATER QUALITY PROGRAM

13.10 	Section 1. [17.9891] PURPOSE.
13.11 	The commissioner, in consultation with the Pollution Control Agency (PCA), 
13.12 	Department of Natural Resources (DNR), and Board of Water and Soil Resources 
13.13 	(BWSR), may implement a Minnesota agricultural water quality certification program 
13.14 	(MAWQCP) whereby once a producer demonstrates practices and management sufficient 
13.15 	to protect and enhance water quality, the producer is exempt from having to comply with 
13.16 	new rules affecting agricultural or land management practices that could affect water 
13.17 	quality for up to ten years. The program shall be a voluntary program that is first piloted in 
13.18 	selected watersheds across the state, until such time as the commissioner, in consultation 
13.19 	with the PCA, DNR, and BWSR, determines the program is ready to be expanded.

13.20 	Sec. 2. [17.9892] DEFINITIONS.
13.21 		Subdivision 1.Technical assistance. "Technical assistance" means professional, 
13.22 	advisory, or cost-share assistance provided to individuals that is designed to achieve 
13.23 	MAWQCP certification.
13.24 		Subd. 2.Certifying agent. "Certifying agent" means a person who is authorized 
13.25 	by the commissioner to assess producers to determine whether a producer satisfies the 
13.26 	standards of the Minnesota agricultural water quality certification program.
13.27 		Subd. 3.Conflict of interest. "Conflict of interest" means an occurrence of a 
13.28 	certifying agent also providing technical assistance to the same producer.
13.29 		Subd. 4.Certification. "Certification" means a producer has demonstrated 
13.30 	compliance with all applicable environmental rules and statutes for all of the producer's 
13.31 	owned and rented agricultural land, and has achieved a satisfactory score through the 
13.32 	certification instrument and verified by a certifying agent. A certification is valid for up to 
13.33 	ten years, as long as the producer maintains compliance with original certification practices.
14.1 		Subd. 5.Eligible land. "Eligible land" means all acres of an agricultural operation 
14.2 	of a producer, whether or not contiguous, that are under the effective control of the 
14.3 	producer at the time the producer enters into the certification program, and is operated 
14.4 	by the producer with equipment, labor, and management.
14.5 		Subd. 6.Effective control. "Effective control" means possession of the land 
14.6 	by ownership, written lease, or other legal agreement and authority to act as decision 
14.7 	maker for the day-to-day management of the operation at the time the producer achieves 
14.8 	certification and for the required period of the certification.

14.9 	Sec. 3. [17.9893] CERTIFICATION INSTRUMENT.
14.10 	The commissioner, in consultation with the PCA, DNR, and BSWR, shall develop an 
14.11 	analytical instrument to assess the water quality practices and management of agricultural 
14.12 	operations. This instrument shall be used to certify the water quality practices and 
14.13 	management of an agricultural operation are consistent with state water quality goals and 
14.14 	standards. The commissioner shall define a satisfactory score for certification purposes. 
14.15 	The certification instrument tool shall:
14.16 	(1) integrate applicable existing regulatory requirements;
14.17 	(2) utilize technology and prioritize ease of use;
14.18 	(3) utilize a water quality index or score applicable to the landscape;
14.19 	(4) incorporate a process for updates and revisions as practices, management, and 
14.20 	technology changes become established and approved; and
14.21 	(5) comprehensively address water quality impacts.

14.22 	Sec. 4. [17.9894] LICENSE.
14.23 		Subdivision 1.License. Any person who offers certification services to producers 
14.24 	as part of this program must satisfy all criteria in subdivision 2 and be licensed by 
14.25 	the commissioner. A certifying agent is ineligible to provide certification services to 
14.26 	any producer to whom the certifying agent has also provided technical assistance. The 
14.27 	department may set fees for such license.
14.28 		Subd. 2.Certifying agent requirements. In order to be licensed as a certifying 
14.29 	agent, a person must:
14.30 	(1) be an agricultural conservation professional employed by the state of Minnesota, a 
14.31 	Soil and Water Conservation District, the Natural Resources Conservation Service, or be a 
14.32 	Minnesota certified crop advisor as recognized by the American Society of Agronomy; and
15.1 	(2) have passed a comprehensive exam, as set by the commissioner, evaluating 
15.2 	knowledge of water quality, soil health, best farm management techniques, and the 
15.3 	certification instrument; and
15.4 	(3) maintain continuing education requirements as set by the commissioner.

15.5 	Sec. 5. [17.9895] DUTIES OF A CERTIFYING AGENT.
15.6 		Subdivision 1.Duties of certifying agent. A certifying agent shall conduct formal 
15.7 	certification assessment utilizing the certification instrument to determine whether a 
15.8 	producer meets the criteria set forth in the program. If a producer satisfies all requirements, 
15.9 	the certifying agent shall notify the commissioner of the producer's eligibility and request 
15.10 	that the state issue a certificate. All records and documents used in the assessment shall be 
15.11 	compiled by the certifying agent and submitted to the commissioner.
15.12 		Subd. 2.Violations. In the event a certifying agent violates any provision of this 
15.13 	chapter or an order of the commissioner, the commissioner may issue a written warning, 
15.14 	or a correction order, and may suspend or revoke a license. If a license or certificate is 
15.15 	suspended or revoked, the certifying agent has ten days from the suspension or revocation 
15.16 	to appeal. If a certifying agent appeals, the commissioner shall hold an administrative 
15.17 	hearing within 30 days of the suspension or revocation of the license, or longer by 
15.18 	agreement of the parties, to determine whether the license is revoked or suspended. The 
15.19 	commissioner shall issue an opinion within 30 days. An appeal of the commissioner's 
15.20 	decision shall be made pursuant to Minnesota Statutes, sections 14.63 to 14.68.

15.21 	Sec. 6. [17.9896] CERTIFICATION PROCEDURES.
15.22 	A producer who seeks certification of eligible land shall conduct an initial 
15.23 	assessment using the certification instrument, obtain technical assistance, if necessary, 
15.24 	to achieve a satisfactory score on the certification instrument, and apply for certification 
15.25 	from a licensed certifying agent. Once certified, if a producer obtains effective control 
15.26 	in additional agricultural land, the producer must notify a certifying agent and obtain 
15.27 	certification on the additional land within one year in order to maintain the producer's 
15.28 	original certification. The commissioner may terminate a certification if the producer fails 
15.29 	to obtain certification on any additional land for which the producer obtains effective 
15.30 	control. The commissioner may revoke a certification and seek reimbursement of any 
15.31 	monetary benefit a producer may have received due to certification from a producer who 
15.32 	fails to maintain certification criteria. The commissioner shall revoke a certification 
15.33 	through the hearing process outlined in section 17.9895, subdivision 2.

16.1 	Sec. 7. [17.9897] CERTIFICATION CERTAINTY.
16.2 	Once a producer is certified, the producer:
16.3 	(1) is exempt from any new state rules pertaining to water quality protection for up 
16.4 	to ten years from the date of certification;
16.5 	(2) is considered to be meeting the producer's contributions to any targeted 
16.6 	reductions of pollutants during the period of certification;
16.7 	(3) is required to continue implementation of practices that maintain the producer's 
16.8 	certification; and
16.9 	(4) is required to retain all records pertaining to certification.

16.10 	Sec. 8. [17.9898] AUDITS.
16.11 	The commissioner shall perform random audits of the producers and certifying 
16.12 	agents to ensure compliance with the program. All producers and certifying agents shall 
16.13 	cooperate with the commissioner during these audits, and provide all relevant documents 
16.14 	to the commissioner for inspection and copying. Any delay, obstruction, or refusal to 
16.15 	cooperate with the commissioner's audit, or falsification of or failure to provide required 
16.16 	data or information, is a violation subject to the provisions of section 17.9895, subdivision 
16.17 	2, or 17.9896.

16.18 	Sec. 9. [17.9899] DATA.
16.19 	All data collected under this program that identifies the producer or the producer's 
16.20 	location shall be considered nonpublic data as defined in section 13.02, subdivision 9, or 
16.21 	private data on individuals as defined in section 13.02, subdivision 12. The commissioner 
16.22 	shall make available summary data of program outcomes.

16.23 	Sec. 10. [17.991] RULEMAKING.
16.24 	The commissioner may develop rules to implement this program.

16.25 	Sec. 11. [17.992] REPORTS.
16.26 	The commissioner, in consultation with the DNR, BWSR, and PCA, shall issue a 
16.27 	biennial report to the chairs and ranking minority members of the legislative committees 
16.28 	with jurisdiction over agricultural policy on the status of the program.

16.29 	Sec. 12. [17.993] GRANTING.
17.1 	The commissioner may use contributions from gifts or other state accounts, provided 
17.2 	that the purposes of the expenditures are consistent with the purpose of the accounts, for 
17.3 	grants, loans, or other financial assistance.

17.4 	ARTICLE 3
17.5 	MINNESOTA NOXIOUS WEED LAW

17.6 	Section 1. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
17.7 		Subd. 3.Control. "Control" means to destroy all or part of the aboveground 
17.8 	growth of noxious weeds manage or prevent the maturation and spread of propagating 
17.9 	parts of noxious weeds from one area to another by a lawful method that does not cause 
17.10 	unreasonable adverse effects on the environment as defined in section 18B.01, subdivision 
17.11 	31, and prevents the maturation and spread of noxious weed propagating parts from one 
17.12 	area to another.

17.13 	Sec. 2. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
17.14 		Subd. 4.Eradicate. "Eradicate" means to destroy the aboveground growth and the 
17.15 	roots and belowground plant parts of noxious weeds by a lawful method that which prevents 
17.16 	the maturation and spread of noxious weed propagating parts from one area to another.

17.17 	Sec. 3. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
17.18 		Subd. 10.Permanent pasture, hay meadow, woodlot, and or other noncrop 
17.19 	area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an 
17.20 	area of predominantly native or seeded perennial plants that can be used for grazing or hay 
17.21 	purposes but is not harvested on a regular basis and is not considered to be a growing crop.

17.22 	Sec. 4. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
17.23 		Subd. 12.Propagating parts. "Propagating parts" means all plant parts, including 
17.24 	seeds, that are capable of producing new plants.

17.25 	Sec. 5. [18.771] NOXIOUS WEED CATEGORIES.
17.26 	(a) For purposes of this section, noxious weed category includes each of the 
17.27 	following categories.
17.28 	(b) "Prohibited noxious weed" includes noxious weeds that must be controlled or 
17.29 	eradicated on all lands within the state. Transportation of a prohibited noxious weed's 
17.30 	propagating parts shall be restricted by permit except as allowed by section 18.82. 
18.1 	Prohibited noxious weeds cannot be sold or propagated in Minnesota. There are two 
18.2 	regulatory listings for prohibited noxious weeds in Minnesota:
18.3 	(1) The "Noxious Weed Eradicate List" is established. Prohibited noxious weeds 
18.4 	placed on the Noxious Weed Eradicate List are plants that are not currently known to be 
18.5 	present in Minnesota or are not widely established. These species must be eradicated.
18.6 	(2) The "Noxious Weed Control List" is established. Prohibited noxious weeds 
18.7 	placed on the Noxious Weed Control List are plants that are already established throughout 
18.8 	Minnesota or regions of the state. Species on this list must at least be controlled.
18.9 	(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed 
18.10 	in Minnesota, but whose only feasible means of control is to prevent their spread by 
18.11 	prohibiting the importation, sale, and transportation of their propagating parts in the state 
18.12 	except as allowed by section 18.82.
18.13 	(d) "Specially regulated plants" includes noxious weeds that may be native 
18.14 	species or have demonstrated economic value, but also have the potential to cause harm 
18.15 	in noncontrolled environments. Plants designated as specially regulated have been 
18.16 	determined to pose ecological, economical, or human or animal health concerns. Species 
18.17 	specific management plans or rules that define the use and management requirements 
18.18 	for these plants must be developed by the commissioner of agriculture for each plant 
18.19 	designated as specially regulated. The commissioner must also take measures to minimize 
18.20 	the potential for harm caused by these plants.
18.21 	(e) "County noxious weeds" includes noxious weeds that are designated by 
18.22 	individual county boards to be enforced as prohibited noxious weeds within the county's 
18.23 	jurisdiction and must be approved by the commissioner of agriculture, in consultation with 
18.24 	the Noxious Weed Advisory Committee. Each county board must submit newly proposed 
18.25 	county noxious weeds to the commissioner of agriculture for review. Approved county 
18.26 	noxious weeds shall also be posted with the county's general weed notice prior to May 15 
18.27 	each year. Counties are solely responsible for developing county noxious weed lists and 
18.28 	their enforcement.

18.29 	Sec. 6. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
18.30 		Subd. 3.Cooperative Weed control agreement. The commissioner, municipality, 
18.31 	or county agricultural inspector or county-designated employee may enter into a 
18.32 	cooperative weed control agreement with a landowner or weed management area 
18.33 	group to establish a mutually agreed-upon noxious weed management plan for up to 
18.34 	three years duration, whereby a noxious weed problem will be controlled without 
19.1 	additional enforcement action. If a property owner fails to comply with the noxious weed 
19.2 	management plan, an individual notice may be served.

19.3 	Sec. 7. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
19.4 		Subd. 6.Training for control or eradication of noxious weeds. The commissioner 
19.5 	shall conduct initial training considered necessary for inspectors and county-designated 
19.6 	employees in the enforcement of the Minnesota Noxious Weed Law. The director of 
19.7 	the Minnesota Extension Service may conduct educational programs for the general 
19.8 	public that will aid compliance with the Minnesota Noxious Weed Law. Upon request, 
19.9 	the commissioner may provide information and other technical assistance to the county 
19.10 	agricultural inspector or county-designated employee to aid in the performance of 
19.11 	responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

19.12 	Sec. 8. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
19.13 		Subd. 13.Noxious weed designation. The commissioner, in consultation with the 
19.14 	Noxious Weed Advisory Committee, shall determine which plants are noxious weeds 
19.15 	subject to control regulation under sections 18.76 to 18.91. The commissioner shall 
19.16 	prepare, publish, and revise as necessary, but at least once every three years, a list of 
19.17 	noxious weeds and their designated classification. The list must be distributed to the public 
19.18 	by the commissioner who may request the help of the University of Minnesota Extension, 
19.19 	the county agricultural inspectors, and any other organization the commissioner considers 
19.20 	appropriate to assist in the distribution. The commissioner may, in consultation with 
19.21 	the Noxious Weed Advisory Committee, accept and consider noxious weed designation 
19.22 	petitions from Minnesota citizens or Minnesota organizations or associations.

19.23 	Sec. 9. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
19.24 		Subdivision 1.Permits. Except as provided in section 21.74, if a person wants to 
19.25 	transport along a public highway materials or equipment containing the propagating parts of 
19.26 	weeds designated as noxious by the commissioner, the person must secure a written permit 
19.27 	for transportation of the material or equipment from an inspector or county-designated 
19.28 	employee. Inspectors or county-designated employees may issue permits to persons 
19.29 	residing or operating within their jurisdiction. If the noxious weed propagating parts are 
19.30 	removed from materials and equipment or devitalized before being transported, a permit is 
19.31 	not needed A permit is not required for the transport of noxious weeds for the purpose 
19.32 	of destroying propagating parts at a Department of Agriculture-approved disposal site. 
20.1 	Anyone transporting noxious weed propagating parts for this purpose shall ensure that all 
20.2 	materials are contained in a manner that prevents escape during transport.

20.3 	Sec. 10. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
20.4 		Subdivision 1.Duties. The commissioner shall consult with the Noxious Weed 
20.5 	Advisory Committee to advise the commissioner concerning responsibilities under 
20.6 	the noxious weed control program. The committee shall also evaluate species for 
20.7 	invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused 
20.8 	by them. For each species evaluated, the committee shall recommend to the commissioner 
20.9 	on which noxious weed list or lists, if any, the species should be placed. Species currently
20.10 	 designated as prohibited or restricted noxious weeds or specially regulated plants must 
20.11 	be reevaluated every three years for a recommendation on whether or not they need to 
20.12 	remain on the noxious weed lists. The committee shall also advise the commissioner on 
20.13 	the implementation of the Minnesota Noxious Weed Law and assist the commissioner in 
20.14 	the development of management criteria for each noxious weed category. Members of 
20.15 	the committee are not entitled to reimbursement of expenses nor payment of per diem. 
20.16 	Members shall serve two-year terms with subsequent reappointment by the commissioner.

20.17 	Sec. 11. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
20.18 		Subd. 2.Membership. The commissioner shall appoint members, which shall 
20.19 	include representatives from the following:
20.20 	(1) horticultural science, agronomy, and forestry at the University of Minnesota;
20.21 	(2) the nursery and landscape industry in Minnesota;
20.22 	(3) the seed industry in Minnesota;
20.23 	(4) the Department of Agriculture;
20.24 	(5) the Department of Natural Resources;
20.25 	(6) a conservation organization;
20.26 	(7) an environmental organization;
20.27 	(8) at least two farm organizations;
20.28 	(9) the county agricultural inspectors;
20.29 	(10) city, township, and county governments;
20.30 	(11) the Department of Transportation;
20.31 	(12) the University of Minnesota Extension;
20.32 	(13) the timber and forestry industry in Minnesota;
20.33 	(14) the Board of Water and Soil Resources; and
20.34 	(15) soil and water conservation districts.;
21.1 	(16) Minnesota Association of County Land Commissioners; and
21.2 	(17) members as needed.

21.3 	Sec. 12.  REPEALER.
 21.4 	Minnesota Statutes 2012, section 18.91, subdivisions 3 and 5, are repealed.