1.1 A bill for an act
1.2 relating to agriculture; providing funding for the
1.3 department of agriculture, the board of animal health,
1.4 the Minnesota horticultural society, and the
1.5 agricultural utilization research institute; changing
1.6 certain fees and charges; creating, extending, and
1.7 expanding certain programs; establishing, changing,
1.8 and clarifying terms and procedures; refunding certain
1.9 fines; providing a civil penalty; appropriating money;
1.10 amending Minnesota Statutes 2000, sections 17.102,
1.11 subdivision 3; 17.1025; 17.117; 17.85; 18B.065,
1.12 subdivision 5; 18E.04, subdivisions 2, 4, 5; 28A.04,
1.13 subdivision 1; 32.394, subdivision 8e; 38.02,
1.14 subdivision 1; 41A.09, subdivision 2a; 103B.3369,
1.15 subdivision 5; 116.07, subdivision 7; 116O.09,
1.16 subdivision 1a; 169.871, subdivision 1; 169.872,
1.17 subdivision 1; proposing coding for new law in
1.18 Minnesota Statutes, chapters 17; 41A; repealing
1.19 Minnesota Statutes 2000, section 31.11, subdivision 2.
1.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.21 Section 1. [AGRICULTURE APPROPRIATIONS.]
1.22 The sums shown in the columns marked "APPROPRIATIONS" are
1.23 appropriated from the general fund, or another named fund, to
1.24 the agencies and for the purposes specified in this act, to be
1.25 available for the fiscal years indicated for each purpose. The
1.26 figures "2002" and "2003," where used in this act, mean that the
1.27 appropriation or appropriations listed under them are available
1.28 for the year ending June 30, 2002, or June 30, 2003,
1.29 respectively. The term "the first year" means the year ending
1.30 June 30, 2002, and the term "the second year" means the year
1.31 ending June 30, 2003.
1.32 SUMMARY BY FUND
2.1 2002 2003 TOTAL
2.2 General $ 33,108,000 $ 34,344,000 $ 67,452,000
2.3 Environmental 347,000 353,000 700,000
2.4 TOTAL $ 33,455,000 $ 34,697,000 $ 68,152,000
2.5 Sec. 2. COMMISSIONER OF AGRICULTURE
2.6 Subdivision 1. Total
2.7 Appropriation 26,570,000 27,680,000
2.8 Summary by Fund
2.9 General 26,223,000 27,327,000
2.10 Environmental 347,000 353,000
2.11 Subd. 2. Protection Service 13,028,000 13,277,000
2.12 Summary by Fund
2.13 General 12,681,000 12,924,000
2.14 Environmental 347,000 353,000
2.15 [DAIRY DEVELOPMENT AND PROFITABILITY
2.16 ENHANCEMENT PROGRAM.] (a) $1,702,000
2.17 the first year and $1,702,000 the
2.18 second year are for grants to continue
2.19 the dairy development and profitability
2.20 enhancement program under Laws 1997,
2.21 chapter 216, section 7, subdivision 2,
2.22 and to expand the program to include
2.23 additional dairy business planning and
2.24 modernization activities. The base for
2.25 fiscal year 2004 shall be $1,952,000.
2.26 Grants from this appropriation for the
2.27 dairy development and profitability
2.28 enhancement programs (formerly known as
2.29 the "dairy diagnostics program") must
2.30 require periodic reports to the
2.31 commissioner on the aggregate changes
2.32 in producer financial stability,
2.33 productivity, product quality, animal
2.34 health, environmental protection, and
2.35 other performance measures attributable
2.36 to the program. Information reported
2.37 to the commissioner must be sufficient
2.38 to establish regional and statewide
2.39 performance benchmarks for the dairy
2.40 industry.
2.41 (b) In designing and implementing the
2.42 dairy development and profitability
2.43 enhancement program the commissioner
2.44 must consult with the dairy leaders
2.45 roundtable, appropriate producer and
2.46 processor groups, the Minnesota state
2.47 colleges and universities system, the
2.48 Minnesota extension service, farm
2.49 credit services, and other agricultural
2.50 lending institutions.
2.51 (c) Of the appropriation in paragraph
2.52 (a), $1,452,000 the first year and
2.53 $1,408,000 the second year are for the
2.54 activities of dairy development and
2.55 profitability enhancement teams. The
2.56 commissioner must make grants, under
3.1 contract, to regional or statewide
3.2 organizations qualified to manage the
3.3 several components of the program.
3.4 Each regional or statewide organization
3.5 must designate a coordinator
3.6 responsible for overseeing the program
3.7 and making required reports to the
3.8 commissioner. Dairy development and
3.9 profitability enhancement teams are
3.10 encouraged to engage in activities
3.11 including, but not limited to,
3.12 comprehensive financial analysis, risk
3.13 management education, enhanced milk
3.14 marketing tools and technologies,
3.15 five-year business plans, and design
3.16 and engineering costs. Up to 40
3.17 percent of the appropriation under this
3.18 paragraph may be used to provide
3.19 producers with technical and
3.20 environmental compliance support
3.21 services required to implement dairy
3.22 environmental quality assurance
3.23 practices. A producer is eligible for
3.24 support under any program under
3.25 paragraphs (a) to (e) for no more than
3.26 three consecutive calendar years.
3.27 Grants to producers must not be used
3.28 for capital improvements or for the
3.29 start up of a new dairy enterprise.
3.30 (d) Of the appropriation in paragraph
3.31 (a), up to $544,000 during the biennium
3.32 may be used as dollar-for-dollar
3.33 matching grants to producers for
3.34 comprehensive five-year dairy
3.35 development plans. It is legislative
3.36 intent that $500,000 each fiscal year
3.37 of funding from future base
3.38 appropriations are for the activities
3.39 of this paragraph.
3.40 (e) The regional and statewide
3.41 organizations that deliver the dairy
3.42 development and profitability
3.43 enhancement program must provide
3.44 required reports to the commissioner in
3.45 a format that maintains the
3.46 confidentiality of business information
3.47 related to any single dairy producer.
3.48 [DAIRY SERVICES ACCOUNT.] $306,000 the
3.49 first year and $429,000 the second year
3.50 is one-time supplemental funding for
3.51 the dairy services account.
3.52 [FERTILIZER INSPECTION ACCOUNT.]
3.53 $155,000 the first year and $253,000
3.54 the second year is one-time
3.55 supplemental funding for the fertilizer
3.56 inspection account.
3.57 [FOOD HANDLER PLAN REVIEW ACCOUNT.]
3.58 $12,000 the first year and $12,000 the
3.59 second year is one-time supplemental
3.60 funding for the food handler plan
3.61 review account.
3.62 [COMMERCIAL CANNERIES ACCOUNT.] $22,000
3.63 the first year and $25,000 the second
3.64 year is one-time supplemental funding
3.65 for the commercial canneries account.
4.1 [LABORATORY SERVICES ACCOUNT.] $19,000
4.2 in the second year is one-time
4.3 supplemental funding for the laboratory
4.4 services account.
4.5 [POTATO DISEASE RESEARCH.] $200,000 the
4.6 first year and $200,000 the second year
4.7 are for grants to the University of
4.8 Minnesota for additional research on
4.9 potato diseases. This appropriation is
4.10 for research in addition to ongoing
4.11 potato disease research programs and
4.12 requires a dollar-for-dollar match from
4.13 nonstate sources. Not later than March
4.14 1, 2004, the commissioner shall provide
4.15 a report on the grant and research to
4.16 the committees of the senate and house
4.17 of representatives having jurisdiction
4.18 over agricultural policy and finance
4.19 issues. This is a one-time
4.20 appropriation. Any unencumbered
4.21 balance does not cancel at the end of
4.22 the first year and is available for
4.23 grants in the second year.
4.24 [VOLUNTARY CLEANUP.] $347,000 the first
4.25 year and $353,000 the second year are
4.26 from the environmental fund for
4.27 administrative funding for the
4.28 voluntary cleanup program.
4.29 Subd. 3. Agriculture Marketing
4.30 and Development 8,370,000 9,496,000
4.31 [AGRICULTURAL TRADE MARKETING.]
4.32 $162,000 the first year and $163,000
4.33 the second year are to employ and
4.34 support, or contract for the services
4.35 of, an agricultural trade specialist.
4.36 The trade specialist must demonstrate
4.37 thorough knowledge of Minnesota
4.38 agricultural producers and products,
4.39 and opportunities for developing or
4.40 expanding both broad and niche
4.41 agricultural product markets nationally
4.42 and internationally. The trade
4.43 specialist must coordinate efforts with
4.44 market development and trade experts of
4.45 the World Trade Conference Center and
4.46 other public and private Minnesota
4.47 entities involved in marketing
4.48 Minnesota products. To the extent
4.49 practicable, the trade specialist must
4.50 provide specific assistance to small
4.51 agricultural producers and producers
4.52 that would benefit from the development
4.53 of international markets.
4.54 [COOPERATIVE SHIPPERS' ASSOCIATION.] (a)
4.55 $100,000 in the biennium is for grants
4.56 or direct assistance to Minnesota
4.57 agricultural producers and processors
4.58 in forming a not-for-profit corporation
4.59 or a member cooperative shippers'
4.60 association. The purpose of the
4.61 shippers' association is to facilitate
4.62 agricultural marketing through the
4.63 efficient and economical movement of
4.64 products from Minnesota origins to
4.65 their destinations. Products may
4.66 include agricultural commodities and
5.1 processed and manufactured agricultural
5.2 products. The shippers' association
5.3 shall also assist small and
5.4 medium-sized producers by providing
5.5 services that increase negotiating
5.6 power and provide quality
5.7 transportation services at a lower cost
5.8 than is available to an individual
5.9 shipper.
5.10 (b) The commissioner may award grants
5.11 to one or more qualifying producer
5.12 shippers' associations that contract to
5.13 enter into collaborative agreements
5.14 with the departments of agriculture,
5.15 trade and economic development, and
5.16 transportation; farm organizations;
5.17 processors and handlers of Minnesota
5.18 agricultural products; and other
5.19 appropriate public and private entities
5.20 knowledgeable in the logistical and
5.21 financial issues involved in moving
5.22 agricultural products to market. Along
5.23 with other services, an eligible grant
5.24 recipient must agree to provide or
5.25 arrange for identity-preserved,
5.26 single-source billing and tracking
5.27 transportation services from
5.28 agricultural producers or processors to
5.29 destination customers; freight
5.30 forwarding; negotiations for volume
5.31 contracts; banking and insurance
5.32 services; government inspection fee and
5.33 documentation services; intermodal
5.34 transportation services using sealed
5.35 containers; and liaison services with
5.36 the United States Department of
5.37 Agriculture and the Foreign
5.38 Agricultural Service for international
5.39 trade and export programs.
5.40 [FEEDLOT PERMIT SPECIALISTS.] $150,000
5.41 the first year and $150,000 the second
5.42 year are for the feedlot permit
5.43 specialist program. The base in fiscal
5.44 year 2004 shall be $400,000.
5.45 [FEEDLOT ENVIRONMENTAL COMPLIANCE
5.46 GRANTS.] $1,685,000 the first year and
5.47 $1,750,000 the second year are for
5.48 grants to feedlot operators for
5.49 upgrading existing, out-of-compliance
5.50 animal feedlots with a capacity under
5.51 500 animal units. Each $3 of state
5.52 cost-share grant money must be matched
5.53 by $1, and the maximum amount of a
5.54 grant for any livestock producer or
5.55 feedlot compliance project is $50,000.
5.56 The commissioner shall develop
5.57 guidelines for equitable, statewide
5.58 disbursement of feedlot compliance
5.59 grants. Any unencumbered balance does
5.60 not cancel at the end of the first year
5.61 and is available for grants in the
5.62 second year.
5.63 [FEEDLOT COST SHARE.] (a) $150,000 the
5.64 first year and $150,000 the second year
5.65 are for grants or interagency transfers
5.66 for partial payment on contracts for
5.67 the preparation of environmental impact
6.1 statements on certain animal feedlot
6.2 projects. To be eligible for partial
6.3 payment under this paragraph:
6.4 (1) the environmental impact statement
6.5 must have been ordered by a district
6.6 court against the recommendation of the
6.7 pollution control agency; or
6.8 (2) the pollution control agency must
6.9 have initially ordered the applicant to
6.10 prepare an environmental assessment
6.11 worksheet but subsequently required the
6.12 preparation of a full environmental
6.13 impact statement.
6.14 (b) Notwithstanding the provision in
6.15 Minnesota Rules that an applicant is
6.16 required to pay the entire cost of an
6.17 environmental impact statement, the
6.18 commissioner may provide up to 75
6.19 percent of the contract cost and the
6.20 applicant must pay the remainder of the
6.21 contract cost.
6.22 (c) If the pollution control agency
6.23 orders an environmental impact
6.24 statement after initially requiring
6.25 only an environmental assessment
6.26 worksheet, as described in paragraph
6.27 (a), clause (2), the pollution control
6.28 agency must develop the statement of
6.29 need and reasonableness at no cost to
6.30 the applicant.
6.31 (d) If the appropriation in paragraph
6.32 (a) for either year is insufficient,
6.33 the appropriation for the other year is
6.34 available. Any unencumbered balance
6.35 does not cancel at the end of the first
6.36 year and is available for grants or
6.37 interagency transfers in the second
6.38 year.
6.39 [GRAIN GERM EXTRACTION RESEARCH AND
6.40 DEMONSTRATION GRANTS.] $100,000 the
6.41 first year and $100,000 the second year
6.42 are for research and demonstration
6.43 project grants associated with
6.44 second-generation ethanol plants that
6.45 advance commercial-scale extraction of
6.46 the germ component of grains. If the
6.47 commissioner determines that a grantee,
6.48 after making a good-faith attempt, has
6.49 been unable to scale up grain germ
6.50 extraction technology to commercial
6.51 capacity, the grantee may,
6.52 nevertheless, remain eligible for
6.53 ethanol producer payments under the
6.54 second-generation ethanol development
6.55 program. This is a one-time
6.56 appropriation. Any unencumbered
6.57 balance does not cancel at the end of
6.58 the first year and is available for
6.59 grants in the second year.
6.60 [ETHANOL PRODUCTION FACILITY LOANS.]
6.61 $250,000 in the second year is for
6.62 deposit in the ethanol development fund
6.63 for loans under the ethanol production
6.64 facility loan program of Minnesota
7.1 Statutes, section 41B.044. Base-level
7.2 funding for the 2004-2005 biennium is
7.3 $500,000.
7.4 [SECOND-GENERATION ETHANOL PRODUCER
7.5 PAYMENTS.] $720,000 the second year is
7.6 for deposit in the second-generation
7.7 ethanol development account in the
7.8 agricultural fund created under
7.9 Minnesota Statutes, section 41A.10,
7.10 subdivision 4, paragraph (e), for
7.11 payment for ethanol produced at
7.12 facilities placed in production after
7.13 June 30, 2002. Base-level funding for
7.14 the 2004-2005 biennium is $6,000,000.
7.15 This funding level represents a
7.16 recapture of payments previously made
7.17 to plants whose eligibility for
7.18 payments under the original ethanol
7.19 producer payment program under
7.20 Minnesota Statutes, section 41A.09, has
7.21 expired. Payments in fiscal years 2004
7.22 and 2005 must be made to an ethanol
7.23 facility that uses wheat and/or barley
7.24 as its primary feedstock.
7.25 [LAMB AND WOOL PROGRAM.] $100,000 the
7.26 first year and $100,000 the second year
7.27 are for a collaborative research,
7.28 production education, and herd
7.29 development and management program at
7.30 the Minnesota state colleges and
7.31 universities system facility located at
7.32 Pipestone for lamb and wool farmers.
7.33 [ORGANIC AND SUSTAINABLE PROGRAMS.] (a)
7.34 $320,000 the first year and $320,000
7.35 the second year are for organic and
7.36 sustainable agriculture programs, as
7.37 described in paragraphs (b) to (d).
7.38 (b) $50,000 each year is for organic
7.39 certification cost-share to Minnesota
7.40 farmers, assistance to organic growers,
7.41 or market development. Of the amount
7.42 for organic programs, at least $70,000
7.43 is for cost-share payments and up to
7.44 $30,000 may be used for organic market
7.45 development or other assistance to
7.46 organic growers. Cost-share payments
7.47 must be two-thirds of the cost of the
7.48 certification or $200 per farmer,
7.49 whichever is less. A certified farmer
7.50 is eligible to receive annual
7.51 certification cost-share payments for
7.52 up to five years.
7.53 (c) $60,000 each year is for a contract
7.54 with a qualified research institution
7.55 to gather, evaluate, publish, and
7.56 disseminate sustainable agriculture
7.57 information to a broad audience through
7.58 both printed and electronic means. An
7.59 institution receiving funding from the
7.60 appropriation in this paragraph must
7.61 not provide resources, exposure, or
7.62 benefits to organizations involved in
7.63 public policy advocacy. The
7.64 commissioner shall require semi-annual
7.65 reports on activities of the research
7.66 institution.
8.1 (d) $210,000 each year is for grants to
8.2 farmers for demonstration projects
8.3 involving sustainable agriculture as
8.4 authorized in Minnesota Statutes,
8.5 section 17.116. Of the amount for
8.6 grants, up to $40,000 may be used for
8.7 dissemination of information about the
8.8 demonstration projects.
8.9 [TURF GRASS RESEARCH.] $100,000 the
8.10 first year and $100,000 the second year
8.11 are for a grant, under contract, to the
8.12 northern Minnesota forage-turf seed
8.13 advisory committee. This appropriation
8.14 is for basic and applied research on
8.15 the improved production of forage and
8.16 turf seed related to new and improved
8.17 varieties. Basic and applied research
8.18 may be contracted to a qualified third
8.19 party. Not later than March 1, 2003,
8.20 the commissioner shall provide an
8.21 interim report on the grant to the
8.22 committees of the senate and house of
8.23 representatives having jurisdiction
8.24 over agricultural policy and finance
8.25 issues. Any unencumbered balance does
8.26 not cancel at the end of the first year
8.27 and is available for grants in the
8.28 second year.
8.29 [QUARANTINE GREENHOUSE OPERATION.]
8.30 $120,000 the first year and $240,000
8.31 the second year are for operating funds
8.32 to staff and maintain the quarantine
8.33 greenhouse facility constructed as
8.34 authorized by Laws 2000, chapter 492,
8.35 article 1, section 2, subdivision 4.
8.36 [AGRICULTURE BEST MANAGEMENT PRACTICES
8.37 PROGRAM.] $350,000 the first year and
8.38 $350,000 the second year are for the
8.39 agricultural best management practices
8.40 program.
8.41 [MINNESOTA CERTIFICATION PROGRAM.]
8.42 $215,000 the first year and $215,000
8.43 the second year are for operation of
8.44 the Minnesota certification program
8.45 under Minnesota Statutes, section
8.46 17.1025. Base-level funding for
8.47 2004-2005 biennium is $640,000.
8.48 [MINNESOTA GROWN MATCHING.] $71,000 the
8.49 first year and $71,000 the second year
8.50 are for transfer to the Minnesota grown
8.51 matching account and may be used as
8.52 grants for Minnesota grown promotion
8.53 under Minnesota Statutes, section
8.54 17.109.
8.55 [WHOLESALE PRODUCE DEALERS LICENSE
8.56 ACCOUNT.] $17,000 the first year and
8.57 $17,000 the second year is one-time
8.58 supplemental funding for the wholesale
8.59 produce dealers account.
8.60 [GRAIN BUYERS AND STORAGE ACCOUNT.]
8.61 $60,000 in the second year is one-time
8.62 supplemental funding for the grain
8.63 buyers and storage account.
9.1 Subd. 4. Administration and
9.2 Financial Assistance 5,172,000 4,907,000
9.3 [FARM ADVOCATES PROGRAM.] $274,000 the
9.4 first year and $274,000 the second year
9.5 are for the farm advocates program.
9.6 [TURKEY RESPIRATORY DISEASE RESEARCH.]
9.7 $109,000 the first year and $119,000
9.8 the second year are for a grant to the
9.9 University of Minnesota to fund
9.10 research on turkey respiratory disease
9.11 control and prevention. This
9.12 appropriation must be matched on a
9.13 dollar-for-dollar basis with public or
9.14 nonpublic money and is in addition to
9.15 other public and nonpublic money for
9.16 turkey research. This is a one-time
9.17 appropriation. Any unencumbered
9.18 balance does not cancel at the end of
9.19 the first year and is available for
9.20 grants in the second year.
9.21 [ELECTRONIC INFORMATION MANAGEMENT
9.22 SYSTEM.] $425,000 the first year and
9.23 $200,000 the second year are for an
9.24 electronic information management
9.25 system. This appropriation is in
9.26 addition to base funding.
9.27 [FAMILY FARM INTEREST PAYMENT
9.28 ADJUSTMENTS.] $13,000 the first year
9.29 and $7,000 the second year are for
9.30 family farm security interest payment
9.31 adjustments. If the appropriation for
9.32 either year is insufficient, the
9.33 appropriation for the other year is
9.34 available for it. No new loans may be
9.35 approved in fiscal year 2002 or 2003.
9.36 [NORTHERN CROPS INSTITUTE.] $70,000 the
9.37 first year and $70,000 the second year
9.38 are for the Northern Crops Institute.
9.39 These appropriations may be spent to
9.40 purchase equipment.
9.41 [AGRICULTURE INFORMATION CENTERS.]
9.42 $175,000 the first year and $175,000
9.43 the second year are for grants to
9.44 agriculture information centers. The
9.45 grants are only available on a match
9.46 basis. The funds may be released at
9.47 the rate of $4 of state money for each
9.48 $1 of matching nonstate money that is
9.49 raised.
9.50 [SEAWAY PORT AUTHORITY.] $115,000 the
9.51 first year and $115,000 the second year
9.52 are for the Seaway Port Authority of
9.53 Duluth for purposes of providing direct
9.54 assistance and services to cooperative
9.55 shippers' associations, agricultural
9.56 marketing cooperatives, individual
9.57 agricultural producers, and other
9.58 groups seeking to benefit from
9.59 opportunities to market and ship
9.60 commodities from an international
9.61 seaway port.
9.62 [MINNESOTA LIVESTOCK BREEDERS'
9.63 ASSOCIATION.] $19,000 the first year
10.1 and $19,000 the second year are for a
10.2 grant to the Minnesota Livestock
10.3 Breeders' Association.
10.4 [COUNTY FAIR EXHIBITOR AWARDS.] $50,000
10.5 the first year and $50,000 the second
10.6 year are for distribution to county
10.7 agricultural societies under Minnesota
10.8 Statutes, section 38.02. This
10.9 appropriation is in addition to base
10.10 and is added to base in fiscal year
10.11 2004.
10.12 Sec. 3. BOARD OF ANIMAL HEALTH 2,964,000 2,846,000
10.13 [JOHNE'S DISEASE; CATTLE HERD TESTING.]
10.14 $340,000 the first year and $340,000
10.15 the second year are for enhancement of
10.16 the paratuberculosis (Johne's disease)
10.17 program, including financial and
10.18 educational assistance with testing and
10.19 related activities to reduce the
10.20 prevalence of the disease and the
10.21 establishment of test-negative herds as
10.22 a source of paratuberculosis-free
10.23 replacement cattle. $140,000 of this
10.24 appropriation in each year is a
10.25 one-time appropriation.
10.26 [CONTROL OF PSEUDORABIES AND OTHER
10.27 DISEASE EMERGENCIES.] $100,000 the
10.28 first year and $100,000 the second year
10.29 are to provide short term, emergency
10.30 funding for unanticipated livestock
10.31 disease outbreaks including continued
10.32 efforts to control pseudorabies in
10.33 swine. This appropriation may be used
10.34 to cover the costs of pseudorabies
10.35 monitoring, vaccines, blood tests, and
10.36 laboratory fees. If the appropriation
10.37 for either year is insufficient, the
10.38 appropriation for the other year is
10.39 available. This is a one-time
10.40 appropriation and remains available
10.41 until June 30, 2003.
10.42 Sec. 4. MINNESOTA HORTICULTURAL
10.43 SOCIETY 41,000 41,000
10.44 Sec. 5. AGRICULTURAL UTILIZATION
10.45 RESEARCH INSTITUTE 3,880,000 4,130,000
10.46 $200,000 the first year and $200,000
10.47 the second year are for hybrid tree
10.48 management research and development of
10.49 an implementation plan for establishing
10.50 hybrid tree plantations in the state.
10.51 This appropriation is available to the
10.52 extent matched by $2 of nonstate
10.53 contributions, either cash or in kind,
10.54 for each $1 of state money.
10.55 Sec. 6. ACRRA FEE BALANCE
10.56 Notwithstanding Minnesota Statutes,
10.57 section 16A.1283, or other law, the
10.58 commissioner of agriculture shall
10.59 adjust fees collected for the
10.60 agricultural chemical response and
10.61 reimbursement account created under
10.62 Minnesota Statutes, section 18E.03,
11.1 subdivision 1, as provided in Minnesota
11.2 Statutes, section 18E.03, subdivision
11.3 3. This exemption is intended to allow
11.4 the commissioner to maintain the ACRRA
11.5 account balance between $1,000,000 and
11.6 $5,000,000.
11.7 Sec. 7. [17.1017] [PROMOTIONAL PUBLICATIONS.]
11.8 When a copy of the department's promotional publication
11.9 commonly referred to as "The Green Book, Marketing Sustainable
11.10 Agriculture" is provided to a non-Minnesota resident, the
11.11 commissioner may charge a fee for the publication approximately
11.12 sufficient to cover the costs of printing and distribution.
11.13 Sec. 8. Minnesota Statutes 2000, section 17.102,
11.14 subdivision 3, is amended to read:
11.15 Subd. 3. [LICENSE.] A person may not use the Minnesota
11.16 grown logo or labeling without an annual license from the
11.17 commissioner. The commissioner shall issue licenses for a fee
11.18 of $5. The commissioner shall charge a late fee of $10 for
11.19 renewal of a license that has expired.
11.20 Sec. 9. Minnesota Statutes 2000, section 17.1025, is
11.21 amended to read:
11.22 17.1025 [MINNESOTA CERTIFICATION PROGRAM.]
11.23 Subdivision 1. [ESTABLISHMENT.] In cooperation with the
11.24 University of Minnesota, the department of trade and economic
11.25 development, and the board of animal health, the commissioner
11.26 shall establish a pilot program to certify agricultural
11.27 production methods and agricultural products grown or processed
11.28 within the state to assure the integrity of claims made by
11.29 participating businesses, including claims that agricultural
11.30 products do not contain material that has been modified directly
11.31 or indirectly using genetic engineering, as defined in section
11.32 18F.02, subdivision 4. The commissioner may select and
11.33 cooperate with private organizations that have established
11.34 procedures and safeguards to justify claimed characteristics of
11.35 the production process or the final certified product to conduct
11.36 certification activities for third party producers.
11.37 The commissioner may establish guidelines for the
11.38 certification program, which are not subject to chapter 14. The
12.1 commissioner shall submit a report on the pilot program to the
12.2 legislature by February 1, 2001.
12.3 Subd. 2. [CERTIFICATION PROCESS.] Applications for
12.4 certification must be submitted to the commissioner and must be
12.5 evaluated by representatives of the commissioner, the University
12.6 of Minnesota, the department of trade and economic development,
12.7 other state agencies with regulatory authority or expertise in
12.8 the subject matter of the application or in the certification
12.9 process, and any other person named by the commissioner.
12.10 The commissioner shall make the final certification
12.11 decision after the certification group prepares a
12.12 recommendation. The application may be accepted, denied, or
12.13 returned to the applicant for further action. The
12.14 recommendation must be based upon the benefit of the
12.15 certification to the producer or processor, the benefit to the
12.16 state's agricultural economy, the costs to the state involved in
12.17 certification and ongoing monitoring, the quality of internal
12.18 and external audit controls to assure compliance with the terms
12.19 of the certification, and other factors appropriate to best
12.20 benefit the participants and the state.
12.21 Subd. 3. [INTELLECTUAL PROPERTY.] The commissioner shall
12.22 develop a logo and develop language to best promote the use of
12.23 certified products and procedures, and explore and implement
12.24 procedures to best use the resources of the Internet in the
12.25 promotion and distribution of Minnesota certified products and
12.26 processes. To the extent practical, the Minnesota certification
12.27 program must be coordinated with the Minnesota grown program
12.28 under section 17.102 to accomplish the goals of both programs.
12.29 Subd. 4. [CERTIFICATION REVOCATION OR SUSPENSION;
12.30 MISDEMEANOR.] A certification may be revoked or suspended by the
12.31 commissioner without hearing if the terms of the certification
12.32 are not being followed, the certification has become unused or
12.33 obsolete, or the continued use of the certification is contrary
12.34 to the interests of the state or the purpose of the
12.35 certification program. Use of the certification after
12.36 suspension or revocation is a misdemeanor and may also be
13.1 enjoined by the commissioner in an action in district court.
13.2 Subd. 5. [MINNESOTA CERTIFIED ACCOUNT.] A Minnesota
13.3 certified account is created in the agricultural fund. All fees
13.4 and reimbursements collected under this subdivision must be
13.5 deposited in the account. Money in the account is appropriated
13.6 to the commissioner.
13.7 Subd. 6. [NO GUARANTEE OR WARRANTY.] Certification does
13.8 not constitute a guarantee or warranty as to any characteristic
13.9 of any product or production process. The state and other
13.10 parties involved in the certification decision may not be found
13.11 liable for a certification or refusal to certify.
13.12 Sec. 10. Minnesota Statutes 2000, section 17.117, is
13.13 amended to read:
13.14 17.117 [AGRICULTURE BEST MANAGEMENT PRACTICES LOAN
13.15 PROGRAM.]
13.16 Subdivision 1. [PURPOSE.] The purpose of the agriculture
13.17 best management practices loan program is to provide low or no
13.18 interest financing to farmers, agriculture supply businesses,
13.19 and rural landowners for the implementation of agriculture and
13.20 other best management practices that reduce environmental
13.21 pollution.
13.22 Subd. 2. [AUTHORITY.] The commissioner shall may develop
13.23 administrative guidelines specifying criteria, standards, and
13.24 procedures for making loans and establish, adopt rules for, and
13.25 implement a program to make loans or otherwise provide funds to
13.26 local units of government, federal authorities, lending
13.27 institutions, and other appropriate organizations who will in
13.28 turn provide loans to landowners and businesses for facilities,
13.29 fixtures, equipment, or other sustainable best management
13.30 practices that prevent or mitigate sources of nonpoint source
13.31 water pollution or other adverse environmental impacts. The
13.32 commissioner shall establish pilot projects to develop
13.33 procedures for implementing the program. The commissioner shall
13.34 develop administrative guidelines to implement the pilot
13.35 projects specifying criteria, standards, and procedures for
13.36 making loans. The agriculture best management practices loan
14.1 program must provide a consistent programmatic framework for the
14.2 disbursement and administration of funds available to the
14.3 commissioner designated to the program for protection of
14.4 environmental quality or remediation or mitigation of adverse
14.5 environmental impacts. The distribution of loans or funds
14.6 through the program must comply with all limitations,
14.7 provisions, or requirements of the respective funding sources.
14.8 Unless otherwise limited by the funding source, the commissioner
14.9 shall manage the program using perpetual revolving fund accounts.
14.10 Subd. 3. [APPROPRIATIONS.] Up to $140,000,000 of the
14.11 balance in the water pollution control revolving fund in section
14.12 446A.07, as determined by the public facilities authority, is
14.13 appropriated to the commissioner for the establishment of this
14.14 program. In addition, the commissioner may receive
14.15 appropriations from the legislature and grants or funds from
14.16 other sources for implementation of the program.
14.17 Subd. 4. [DEFINITIONS.] (a) For the purposes of this
14.18 section, the terms defined in this subdivision have the meanings
14.19 given them.
14.20 (b) "Agricultural and environmental revolving accounts"
14.21 means accounts in the agricultural fund, controlled by the
14.22 commissioner, which hold funds available to the program.
14.23 (c) "Agriculture supply business" means a person,
14.24 partnership, joint venture, corporation, limited liability
14.25 company, association, firm, public service company, or
14.26 cooperative that provides materials, equipment, or services to
14.27 farmers or agriculture-related enterprises.
14.28 (d) "Allocation" means the funds awarded to an applicant
14.29 for implementation of best management practices through a
14.30 competitive or noncompetitive application process.
14.31 (a) (e) "Applicant" means a county or a local government
14.32 unit designated by a county under subdivision 8, paragraph
14.33 (a) local unit of government eligible to participate in this
14.34 program that requests an allocation of funds as provided in
14.35 subdivision 6b.
14.36 (b) "Authority" means the Minnesota public facilities
15.1 authority as established in section 446A.03.
15.2 (c) (f) "Best management practices" has the meaning given
15.3 in sections 103F.711, subdivision 3, and 103H.151, subdivision
15.4 2, or other practices, techniques, and measures that have been
15.5 demonstrated to the satisfaction of the commissioner to prevent
15.6 or reduce adverse environmental impacts by using the most
15.7 effective and practicable means of achieving environmental goals.
15.8 (d) "Chair" means the chair of the board of water and soil
15.9 resources or the designee of the chair.
15.10 (e) (g) "Borrower" means an individual a farmer, an
15.11 agriculture supply business, or a rural landowner applying for a
15.12 low-interest loan.
15.13 (f) (h) "Commissioner" means the commissioner of
15.14 agriculture, including when the commissioner is acting in the
15.15 capacity of chair of the rural finance authority, or the
15.16 designee of the commissioner.
15.17 (i) "Committed project" means an eligible project scheduled
15.18 to be implemented at a future date:
15.19 (1) that has been approved and certified by the local
15.20 government unit; and
15.21 (2) for which a local lender has obligated itself to offer
15.22 a loan.
15.23 (g) (j) "Comprehensive water management plan" means a state
15.24 approved and locally adopted plan authorized under section
15.25 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405.
15.26 (h) "Local allocation request" means a loan allocation
15.27 request from an applicant to implement agriculturally related
15.28 best management practices defined in paragraph (c).
15.29 (k) "Cost incurred" means expenses for implementation of a
15.30 project accrued because the borrower has agreed to purchase
15.31 equipment or is obligated to pay for services or materials
15.32 already provided as a result of implementing a prior approved
15.33 eligible project.
15.34 (l) "Farmer" means a person, partnership, joint venture,
15.35 corporation, limited liability company, association, firm,
15.36 public service company, or cooperative that regularly
16.1 participates in physical labor or operations management of
16.2 farming and files a Schedule F as part of filing United States
16.3 Internal Revenue Service Form 1040 or indicates farming as the
16.4 primary business activity under Schedule C, K, or S, or any
16.5 other applicable report to the United States Internal Revenue
16.6 Service.
16.7 (i) (m) "Lender agreement" means a loan agreement entered
16.8 into between the commissioner, a local lender, and the
16.9 applicant, if different from the local lender. The agreement
16.10 will contain terms and conditions of the loan that will include
16.11 but need not be limited to general loan provisions, loan
16.12 management requirements, application of payments, loan term
16.13 limits, allowable expenses, and fee limitations an agreement
16.14 entered into between the commissioner and a local lender which
16.15 contains terms and conditions of participation in the program.
16.16 (j) (n) "Local government unit" means a county, soil and
16.17 water conservation district, or an organization formed for the
16.18 joint exercise of powers under section 471.59 with the authority
16.19 to participate in the program.
16.20 (k) (o) "Local lender" means a local government unit as
16.21 defined in paragraph (j) (n), a state or federally chartered
16.22 bank, a savings association, a state or federal credit
16.23 union, Agribank and its affiliated organizations, or a nonprofit
16.24 economic development organization or other financial lending
16.25 institution approved by the commissioner, or Farm Credit
16.26 Services.
16.27 (p) "Local revolving loan account" means the account held
16.28 by a local government unit and a local lender into which
16.29 principal repayments from borrowers are deposited and new loans
16.30 are issued in accordance with the requirements of the program
16.31 and lender agreements.
16.32 (l) (q) "Nonpoint source" has the meaning given in section
16.33 103F.711, subdivision 6.
16.34 (r) "Program" means the agriculture best management
16.35 practices loan program in this section.
16.36 (s) "Project" means one or more components or activities
17.1 located within Minnesota that are required by the local
17.2 government unit to be implemented for satisfactory completion of
17.3 an eligible best management practice.
17.4 (t) "Rural landowner" means the owner of record of
17.5 Minnesota real estate located in an area determined by the local
17.6 government unit to be rural after consideration of local land
17.7 use patterns, zoning regulations, jurisdictional boundaries,
17.8 local community definitions, historical uses, and other
17.9 pertinent local factors.
17.10 Subd. 5. [USES OF FUNDS.] Use of funds under this section
17.11 must be in compliance with the rules and regulations of the
17.12 funding source or appropriation. Use of funds from the public
17.13 facilities authority must comply with the federal Water
17.14 Pollution Control Act, section 446A.07, and eligible activities
17.15 listed in the intended use plan authorized in section 446A.07,
17.16 subdivision 4.
17.17 Subd. 5a. [AGRICULTURAL AND ENVIRONMENTAL REVOLVING
17.18 ACCOUNTS.] (a) There shall be established in the agricultural
17.19 fund revolving accounts to receive appropriations and money from
17.20 other sources. All repayments of loans granted under this
17.21 section, including principal and interest, must be deposited
17.22 into the appropriate revolving account including the water
17.23 pollution control revolving account under section 446A.07.
17.24 Interest earned in an account accrues to that account.
17.25 (b) The money in the revolving accounts is appropriated to
17.26 the commissioner for the purposes of this section.
17.27 Subd. 6. [APPLICATION.] (a) Only the following local
17.28 government units may apply for funds under this program:
17.29 (1) counties or their designees;
17.30 (2) soil and water conservation districts; and
17.31 (3) joint power organizations consisting of counties or
17.32 their designees or soil and water conservation districts.
17.33 (b) A county may submit an application for an allocation.
17.34 A county or a group of counties may designate another local
17.35 government unit to submit a local allocation request on their
17.36 behalf. If a county does not submit an application, and does
18.1 not designate another local government unit, a soil and water
18.2 conservation district may submit an application for an
18.3 allocation. If the local soil and water conservation district
18.4 does not submit an application, then an eligible joint powers
18.5 organization may submit an application for an allocation. In
18.6 all instances, there may be only one application representing
18.7 any geographic area. The applicant must coordinate and submit
18.8 requests on behalf of other units of government within the
18.9 geographic jurisdiction of the applicant.
18.10 (a) (c) The commissioner must prescribe forms and establish
18.11 an application process for applicants to apply for a local an
18.12 allocation request of funds. The application must include but
18.13 need not be limited to (1) the geographic area served; (2) the
18.14 type and estimated cost of activities or projects for which they
18.15 are seeking a loan an allocation; and (3) a ranking
18.16 prioritization or targeting of proposed activities or projects;
18.17 and (4) the designation of the local lender and lending
18.18 practices the local lender intends to use to issue the loans to
18.19 the borrowers, if a local lender other than the applicant is to
18.20 be used.
18.21 (b) (d) If a local allocation request an application is
18.22 rejected, the applicant must be notified in writing as to the
18.23 reasons for the rejection and given 30 days to submit a revised
18.24 application. The revised application shall be reviewed
18.25 according to the same procedure used to review the initial
18.26 application. Failure of an applicant to be awarded funds does
18.27 not constitute a rejection of the application.
18.28 Subd. 6a. [REVIEW AND RANKING OF APPLICATIONS.] (a) The
18.29 commissioner shall chair the subcommittee established in section
18.30 103F.761, subdivision 2, paragraph (b), for purposes of
18.31 reviewing and ranking applications and recommending to the
18.32 commissioner allocation amounts. The subcommittee consists of
18.33 representatives of the departments of agriculture, natural
18.34 resources, and health; the pollution control agency; the board
18.35 of water and soil resources; the Farm Service Agency and the
18.36 Natural Resource Conservation Service of the United States
19.1 Department of Agriculture; the Association of Minnesota
19.2 Counties; the Minnesota Association of Soil and Water
19.3 Conservation Districts; and other agencies or associations the
19.4 commissioner determines are appropriate.
19.5 (b) The subcommittee must use the following criteria as
19.6 well as other criteria it determines appropriate in carrying out
19.7 the review and ranking:
19.8 (1) whether the proposed activities are identified in a
19.9 comprehensive water management plan or other appropriate local
19.10 planning documents as priorities;
19.11 (2) the potential that the proposed activities have for
19.12 improving or protecting environmental quality;
19.13 (3) the extent that the proposed activities support
19.14 areawide or multijurisdictional approaches to protecting
19.15 environmental quality based on defined watershed or similar
19.16 geographic areas;
19.17 (4) whether the activities are needed for compliance with
19.18 existing environmental laws or rules;
19.19 (5) whether the proposed activities demonstrate
19.20 participation, coordination, and cooperation between local units
19.21 of government and other public agencies;
19.22 (6) whether there is coordination with other public and
19.23 private funding sources and programs;
19.24 (7) whether the applicant has targeted specific best
19.25 management practices to resolve specific environmental problems;
19.26 (8) past performance of the applicant in completing
19.27 projects identified in prior applications and allocation
19.28 agreements; and
19.29 (9) whether there are off-site public benefits.
19.30 Subd. 6b. [ALLOCATION AMOUNT.] (a) The subcommittee
19.31 created in subdivision 6a shall recommend to the commissioner
19.32 the amount of allocation for each applicant. This allocation
19.33 must include:
19.34 (1) the amount of repayments received by the commissioner
19.35 during the previous year from prior completed projects approved
19.36 by the local government unit; and
20.1 (2) the amount of funds previously designated to committed
20.2 projects.
20.3 (b) Within the limits of the funds available to the
20.4 commissioner, the subcommittee may recommend an increased
20.5 allocation award to the applicant based on:
20.6 (1) the ranking of the local government unit application
20.7 under subdivision 6a; and
20.8 (2) the amount of unallocated or uncommitted funds in, or
20.9 that will be received by, the agricultural and environmental
20.10 revolving accounts within one year.
20.11 (c) Notwithstanding paragraphs (a) and (b), the
20.12 commissioner may reserve up to two percent of all funds
20.13 appropriated to the agricultural and environmental revolving
20.14 accounts to be allocated to applicants that disburse or commit
20.15 all of their current allocations or to local lenders who wish to
20.16 provide financial assistance.
20.17 (d) The commissioner may add, for the purposes of
20.18 calculating future allocations under paragraphs (a) and (b), the
20.19 loan amount for projects financed from these reserved funds to
20.20 the allocation for the respective local government units in
20.21 which jurisdiction the project was completed.
20.22 Subd. 7. [PAYMENTS TO LOCAL LENDERS.] (a) Payments made
20.23 from the water pollution control revolving fund commissioner to
20.24 the local lender must be made in accordance with applicable
20.25 state and federal laws and rules governing the payments and the
20.26 lender agreement.
20.27 (b) Payments from the commissioner to the local lender must
20.28 be disbursed on a cost-incurred basis. Local lenders shall
20.29 submit payment requests at least quarterly but not more than
20.30 monthly. Payment requests must be reviewed and approved by the
20.31 commissioner. The payment request form must itemize all costs
20.32 by major elements and show eligible and ineligible costs. The
20.33 request must be made in accordance with requirements and
20.34 procedures established by the commissioner. Payment requests
20.35 must be reviewed and approved by the commissioner.
20.36 (c) The commissioner may initiate recision of an allocation
21.1 granted in a lender agreement as provided in subdivision 11,
21.2 paragraph (d), if the local lender fails to enter into loans
21.3 with borrowers equaling the total allocation granted within one
21.4 year from the date of the lender agreement or fails to have the
21.5 total amount of allocated funds drawn down through payment
21.6 requests within two years. An additional year to draw down the
21.7 undisbursed portion of an allocation may be granted by the
21.8 commissioner under extenuating circumstances.
21.9 Subd. 8. [APPLICANT; BORROWERS ALLOCATION AGREEMENT.] (a)
21.10 A county may submit a local allocation request. A county or a
21.11 group of counties may designate another local government unit to
21.12 submit a local allocation request.
21.13 (b) If a county does not submit a local allocation request,
21.14 and does not designate another local government unit, a soil and
21.15 water conservation district may submit a local allocation
21.16 request. In all instances, there may be only one request from a
21.17 county. The applicant must coordinate and submit requests on
21.18 behalf of other units of government within the geographic
21.19 jurisdiction of the applicant. Eligible local government units
21.20 with an allocation award may enter into an allocation agreement
21.21 with the commissioner and participate in this program.
21.22 (b) The allocation agreement must contain terms and
21.23 conditions for participation in this program and providing of
21.24 funds through this program, including, but not limited to:
21.25 program requirements, reporting requirements, project
21.26 eligibility and limitations, allowable expenses, limitations,
21.27 recision and cancellation provisions, and the responsibilities
21.28 of the commissioner, local government unit, and local lender.
21.29 (c) If the commissioner determines that a local government
21.30 unit is not in compliance with the terms of the allocation
21.31 agreement, the commissioner may rescind all or part of any
21.32 allocation awarded through this program.
21.33 Subd. 9. [REVIEW AND RANKING OF ALLOCATION REQUESTS
21.34 ALLOCATION RECISION.] (a) The commissioner shall chair the
21.35 subcommittee established in section 103F.761, subdivision 2,
21.36 paragraph (b), for purposes of reviewing and ranking local
22.1 allocation requests. The rankings must be in order of priority
22.2 and shall provide financial assistance within the limits of the
22.3 funds available. In carrying out the review and ranking, the
22.4 subcommittee must consist of, at a minimum, the chair,
22.5 representatives of the pollution control agency, United States
22.6 Department of Agricultural Stabilization and Conservation
22.7 Service, United States Department of Agriculture Soil
22.8 Conservation Service, Association of Minnesota Counties, and
22.9 other agencies or associations as the commissioner, the chair,
22.10 and agency determine are appropriate. The review and ranking
22.11 shall take into consideration other related state or federal
22.12 programs.
22.13 (b) The subcommittee shall use the criteria listed below in
22.14 carrying out the review and ranking:
22.15 (1) whether the proposed activities are identified in a
22.16 comprehensive water management plan as priorities;
22.17 (2) whether the applicant intends to establish a revolving
22.18 loan program under subdivision 10, paragraph (b);
22.19 (3) the potential that the proposed activities have for
22.20 improving or protecting surface and groundwater quality;
22.21 (4) the extent that the proposed activities support
22.22 areawide or multijurisdictional approaches to protecting water
22.23 quality based on defined watershed;
22.24 (5) whether the activities are needed for compliance with
22.25 existing water related laws or rules;
22.26 (6) whether the proposed activities demonstrate
22.27 participation, coordination, and cooperation between local units
22.28 of government and other public agencies;
22.29 (7) whether there is coordination with other public and
22.30 private funding sources and programs;
22.31 (8) whether there are off-site public benefits such as
22.32 preventing downstream degradation and siltation; and
22.33 (9) the proposed interest rate. (a) Continued availability
22.34 of allocations granted to a local government unit is contingent
22.35 upon the commissioner's approval of the local government unit's
22.36 annual report. The commissioner shall review this annual report
23.1 to ensure that the past and future uses of the funds are
23.2 consistent with the comprehensive water management plan, other
23.3 local planning documents, the requirements of the funding
23.4 source, and compliance to program requirements. If the
23.5 commissioner concludes the past or intended uses of the money
23.6 are not consistent with these requirements, the commissioner
23.7 shall rescind all or part of the allocation awarded to a local
23.8 government unit.
23.9 (b) The commissioner may rescind funds allocated to the
23.10 local government unit that are not designated to committed
23.11 projects or disbursed within one year from the date of the
23.12 allocation agreement.
23.13 (c) An additional year to use the undisbursed portion of an
23.14 allocation may be granted by the commissioner under extenuating
23.15 circumstances.
23.16 Subd. 9a. [AUTHORITY AND RESPONSIBILITIES OF APPLICANTS
23.17 LOCAL GOVERNMENT UNITS.] Applicants may enter into a lender
23.18 agreement designating a local lender. Applicants designating
23.19 themselves as the local lender may enter into contracts for loan
23.20 review, processing, and servicing. (a) A local government unit
23.21 that enters into an allocation agreement with the commissioner:
23.22 (1) is responsible for the local administration and
23.23 implementation of the program in accordance with this section;
23.24 (2) may submit applications for allocations to the
23.25 commissioner;
23.26 (3) shall identify, develop, determine eligibility, define
23.27 and approve projects, designate maximum loan amounts for
23.28 projects, and certify completion of projects implemented under
23.29 this program. In areas where no local government unit has
23.30 applied for funds under this program, the commissioner may
23.31 appoint a local government unit to review and certify projects
23.32 or the commissioner may assume the authority and responsibility
23.33 of the local government unit;
23.34 (4) shall certify as eligible only projects that are within
23.35 its geographic jurisdiction or within the geographic area
23.36 identified in its local comprehensive water management plans or
24.1 other local planning documents;
24.2 (5) may require withholding by the local lender of all or a
24.3 portion of the loan to the borrower until satisfactory
24.4 completion of all required components of a certified project;
24.5 (6) shall identify which account is used to finance an
24.6 approved project if the local government unit has allocations
24.7 from multiple accounts in the agricultural and environmental
24.8 revolving accounts;
24.9 (7) shall report to the commissioner annually the past and
24.10 intended uses of allocations awarded; and
24.11 (8) may request additional funds in excess of their
24.12 allocation when funds are available in the agricultural and
24.13 environmental revolving accounts, as long as all other
24.14 allocation awards to the local government unit have been used or
24.15 committed.
24.16 (b) If a local government unit withdraws from participation
24.17 in this program, the local government unit, or the commissioner
24.18 in accordance with the priorities established under subdivision
24.19 6a, may designate another local government unit that is eligible
24.20 under subdivision 6, as the new local government unit
24.21 responsible for local administration of this program. This
24.22 designated local government unit may accept responsibility and
24.23 administration of allocations awarded to the former responsible
24.24 local government unit.
24.25 Subd. 9b. [LENDER AGREEMENT.] (a) Any local lender
24.26 entering into a lender agreement with the commissioner may
24.27 participate in this program.
24.28 (b) The lender agreement will contain terms and conditions
24.29 for participation in this program and providing funds to the
24.30 local lenders, including but not limited to, program
24.31 requirements, loan and account management requirements,
24.32 payments, repayments, term limits, allowable expenses, fee
24.33 limitations, recision and cancellation provisions, collateral
24.34 and security requirements, reporting requirements, review and
24.35 appeal procedure for cancellation of the loan agreement or
24.36 disqualification as a local lender, and the responsibilities of
25.1 the commissioner, local government unit, and local lender.
25.2 (c) If the commissioner determines that a local lender is
25.3 not in compliance with the terms of the lender agreement, the
25.4 commissioner may take the following actions:
25.5 (1) disqualify the local lender as a participating lender
25.6 in this program for a period of up to five years from the date
25.7 that the commissioner determines noncompliance to the lender
25.8 agreement; and
25.9 (2) require immediate or accelerated repayment of all or
25.10 part of all funds provided to the local lender.
25.11 (d) Existing lender agreements, executed prior to July 1,
25.12 2001, may be amended by mutual consent of all signatory parties,
25.13 to comply with this section, to establish a single allocation
25.14 agreement that includes the amount of prior allocation awards
25.15 and defines the terms and conditions required under subdivision
25.16 8, or to modify the amount of allocation awarded.
25.17 Subd. 10. [AUTHORITY AND RESPONSIBILITIES OF LOCAL
25.18 LENDERS.] (a) Local lenders may enter into lender agreements
25.19 with the commissioner.
25.20 (b) Local lenders may enter into loan agreements with
25.21 borrowers to finance eligible projects under this section.
25.22 (c) Local lenders may establish revolving loan programs to
25.23 finance projects under this section The local lender shall
25.24 notify the local government unit of the loan amount issued to
25.25 the borrower after the closing of each loan.
25.26 (d) Local lenders with local revolving loan accounts
25.27 created before July 1, 2001, may continue to retain and use
25.28 those accounts in accordance with their lending agreements for
25.29 the full term of those agreements.
25.30 (e) Local lenders, including applicants local government
25.31 units designating themselves as the local lender, may enter into
25.32 participation agreements with other lenders.
25.33 (f) Local lenders may also enter into contracts with other
25.34 lenders for the limited purposes of loan review, processing and
25.35 servicing, or to enter into loan agreements with borrowers to
25.36 finance projects under this section. Other lenders entering
26.1 into contracts with local lenders under this section must meet
26.2 the definition of local lender in subdivision 4, must comply
26.3 with all provisions of the lender agreement and this section,
26.4 and must guarantee repayment of the loan funds to the local
26.5 lender. In no case may there be more than one local lender per
26.6 county or more than one revolving fund per county.
26.7 (g) When required by the local government unit, a local
26.8 lender must withhold all or a portion of the loan disbursement
26.9 for a project until notified by the local government unit that
26.10 the project has been satisfactorily completed.
26.11 (h) The local lender is responsible for repaying all funds
26.12 provided by the commissioner to the local lender.
26.13 (i) The local lender is responsible for collecting
26.14 repayments from borrowers. If a borrower defaults on a loan
26.15 issued by the local lender, it is the responsibility of the
26.16 local lender to obtain repayment from the borrower. Default on
26.17 the part of borrowers shall have no effect on the local lender's
26.18 responsibility to repay its obligations to the commissioner
26.19 whether or not the local lender fully recovers defaulted amounts
26.20 from borrowers.
26.21 (j) The local lender shall provide sufficient collateral or
26.22 protection to the commissioner for the funds provided to the
26.23 local lender. The commissioner must approve the collateral or
26.24 protection provided.
26.25 Subd. 11. [LOANS ISSUED TO BORROWER ELIGIBILITY; TERMS;
26.26 REPAYMENT; RECISION.] (a) Local lenders shall use the following
26.27 criteria in addition to other criteria they deem necessary in
26.28 determining the eligibility of borrowers for loans:
26.29 (1) whether the activity is certified by a local unit of
26.30 government may issue loans only for projects that are approved
26.31 and certified by the local government unit as meeting priority
26.32 needs identified in a comprehensive water management plan and is
26.33 or other local planning documents, are in compliance with
26.34 accepted practices, standards, specifications, or criteria;
26.35 (2) whether the activity is certified as, and are eligible
26.36 for financing under Environmental Protection Agency or other
27.1 applicable guidelines; and
27.2 (3) whether the repayment is assured from the borrower.
27.3 (b) The local lender may use any additional criteria
27.4 considered necessary to determine the eligibility of borrowers
27.5 for loans.
27.6 (c) Local lenders shall set the terms and conditions of
27.7 loans to borrowers, except that:
27.8 (1) no loan to an individual a borrower may exceed $50,000;
27.9 (2) no loan for a project may exceed $50,000; and
27.10 (3) no borrower shall, at any time, have multiple loans
27.11 from this program with a total outstanding loan balance of more
27.12 than $50,000. In all instances, local lenders must provide for
27.13 sufficient collateral or protection for the loan principal.
27.14 They are responsible for collecting repayments by borrowers.
27.15 (c) The local lender is responsible for repaying the
27.16 principal of a loan to the commissioner. The terms of repayment
27.17 will be identified in the lender agreement. If defaults occur,
27.18 it is the responsibility of the local lender to obtain repayment
27.19 from the borrower. Default on the part of individual borrowers
27.20 shall have no effect on the local lender's responsibility to
27.21 repay its loan from the commissioner whether or not the local
27.22 lender fully recovers defaulted amounts from individual
27.23 borrowers. For revolving loan programs established under
27.24 subdivision 10, paragraph (c), the lender agreement must provide
27.25 that:
27.26 (1) repayment of principal to the commissioner must begin
27.27 no later than ten years after the date of the lender agreement
27.28 and must be repaid in full no later than 20 years after the date
27.29 of the lender agreement;
27.30 (2) after the initial ten-year period, the local lender
27.31 shall not write any additional loans, and any existing principal
27.32 balance held by the local lender shall be immediately repaid to
27.33 the commissioner;
27.34 (3) after the initial ten-year period, all principal
27.35 received by the local lender from borrowers shall be repaid to
27.36 the commissioner as it is received; and
28.1 (4) the applicant shall report to the commissioner annually
28.2 regarding the past and intended uses of the money in the
28.3 revolving loan program.
28.4 (d) Continued availability of the allocation granted in the
28.5 lender agreement is contingent upon commissioner approval of the
28.6 annual report. The commissioner shall review the annual report
28.7 to ensure the past and future uses of the funds are consistent
28.8 with the comprehensive water management plan and the lender
28.9 agreement. If the commissioner concludes the past or intended
28.10 uses of the money are not consistent with the comprehensive
28.11 water management plan or the lender agreement, the commissioner
28.12 shall rescind the allocation granted under the lender agreement.
28.13 Such recision shall result in termination of available
28.14 allocation, the immediate repayment of any unencumbered funds
28.15 held by the local lender in a revolving loan fund, and the
28.16 repayment of the principal portion of loan repayments to the
28.17 commissioner as they are received. The lender agreement shall
28.18 reflect the commissioner's rights under this paragraph.
28.19 (e) A local lender shall receive certification from local
28.20 government unit staff that a project has been satisfactorily
28.21 completed prior to releasing the final loan disbursement.
28.22 (d) The maximum term length for conservation tillage and
28.23 individual sewage treatment system projects is five years. The
28.24 maximum term length for other projects in this section is ten
28.25 years.
28.26 (e) Fees charged at the time of closing must:
28.27 (1) be in compliance with normal and customary practices of
28.28 the local lender;
28.29 (2) be in accordance with published fee schedules issued by
28.30 the local lender;
28.31 (3) not be based on participation in the program; and
28.32 (4) be consistent with fees charged other similar types of
28.33 loans offered by the local lender.
28.34 (f) The interest rate assessed to an outstanding loan
28.35 balance by the local lender must not exceed three percent per
28.36 year.
29.1 Subd. 11a. [ELIGIBLE PROJECTS.] All projects that
29.2 remediate or mitigate adverse environmental impacts are eligible
29.3 if:
29.4 (1) the project is eligible under the allocation agreement
29.5 and provisions of the originating appropriation or funding
29.6 sources designated by the local government unit to finance the
29.7 project; and
29.8 (2) manure management projects remediate or mitigate
29.9 impacts from facilities with less than 1,000 animal units as
29.10 defined in Minnesota Rules, chapter 7020.
29.11 Subd. 12. [DATA PRIVACY.] The following data on applicants
29.12 local government units, local lenders, or borrowers collected by
29.13 the commissioner under this section are private for data on
29.14 individuals as provided in section 13.02, subdivision 12, or
29.15 nonpublic for data not on individuals as provided in section
29.16 13.02, subdivision 9: financial information, including, but not
29.17 limited to, credit reports, financial statements, tax returns
29.18 and net worth calculations received or prepared by the
29.19 commissioner.
29.20 Subd. 13. [ESTABLISHMENT OF ACCOUNT.] The public
29.21 facilities authority shall establish an account called the
29.22 agriculture best management practices revolving fund to provide
29.23 loans and other forms of financial assistance authorized under
29.24 section 446A.07. The fund must be credited with repayments.
29.25 Subd. 14. [FEES AND INTEREST.] (a) Origination fees
29.26 charged directly to borrowers by local lenders upon executing a
29.27 loan shall not exceed one-half of one percent of the loan
29.28 amount. Interest assessed to loan repayments by the local
29.29 lender must not exceed three percent.
29.30 (b) The local lender shall create a principal account to
29.31 which the principal portions of individual borrower loan
29.32 repayments will be credited.
29.33 (c) Any interest earned on outstanding loan balances not
29.34 separated as repayments are received and before the principal
29.35 amounts are deposited in the principal account shall be added to
29.36 the principal portion of the loan to the local lender and must
30.1 be paid to the commissioner when the principal is due under the
30.2 lender agreement.
30.3 (d) Any interest earned on the principal account must be
30.4 added to the principal portion of the loan to the local lender
30.5 and must be paid to the commissioner when the principal is due
30.6 under the lender agreement.
30.7 Subd. 15. [COMMISSIONER'S REPORT.] (a) The commissioner
30.8 and chair shall prepare and submit a report to the house of
30.9 representatives and senate committees with jurisdiction over the
30.10 environment, natural resources, and agriculture by October 15 of
30.11 each odd-numbered year.
30.12 (b) The report shall include, but need not be limited to,
30.13 matters such as loan allocations and uses, the extent to which
30.14 the financial assistance is helping implement local water and
30.15 other environmental planning priorities, the integration or
30.16 coordination that has occurred with related programs, and other
30.17 matters deemed pertinent to the implementation of the program.
30.18 Subd. 16. [LIENS AGAINST PROPERTY.] (a) Unless a county
30.19 determines otherwise, at the time of the disbursement of funds
30.20 on a loan to a borrower under this section, the principal
30.21 balance due plus accrued interest on the principal balance as
30.22 provided by this section becomes a lien in favor of the county
30.23 making the loan upon the real property on which the project is
30.24 located. The lien must be first and prior to all other liens
30.25 against the property, including state tax liens, whether filed
30.26 before or after the placing of a lien under this subdivision,
30.27 except liens for special assessments by the county under
30.28 applicable special assessments laws, which liens shall be of
30.29 equal rank with the lien created under this subdivision. A lien
30.30 in favor of the county shall be first and prior as provided in
30.31 this subdivision only if the county making the loan gives
30.32 written notice of the intent to make the loan under this
30.33 subdivision to all other persons having a recorded interest in
30.34 the real property subject to the lien, no less than 30 days
30.35 prior to the disbursement of the funds, and receives an
30.36 agreement to subordinate superior lien positions held by all
31.1 other lenders having a recorded interest in the real property
31.2 subject to the lien. This lien and subordination agreement must
31.3 be recorded against the real estate in the county recorder's
31.4 office or filed with the registrar of titles for the county or
31.5 counties in which the property is located. The county may bill
31.6 amounts due on the loan on the tax statement for the property.
31.7 Enforcement of the lien created by this subdivision shall, at
31.8 the county's option, be in the manner set forth in chapter 580
31.9 or 581. When the amount due plus interest has been paid, the
31.10 county shall file a satisfaction of the lien created under this
31.11 subdivision.
31.12 (b) A county may also secure amounts due on a loan under
31.13 this section by taking a purchase money security interest in
31.14 equipment in accordance with chapter 336, article 9, and may
31.15 enforce the purchase money security interest in accordance with
31.16 chapters 336, article 9, and 565.
31.17 Subd. 17. [REFERENDUM EXEMPTION.] For the purpose of
31.18 obtaining a loan from the commissioner, a local government unit
31.19 may provide to the commissioner its general obligation note.
31.20 All obligations incurred by a local government unit in obtaining
31.21 a loan from the commissioner must be in accordance with chapter
31.22 475, except that so long as the obligations are issued to
31.23 evidence a loan from the commissioner to the local government
31.24 unit, an election is not required to authorize the obligations
31.25 issued, and the amount of the obligations shall not be included
31.26 in determining the net indebtedness of the local government unit
31.27 under the provisions of any law or chapter limiting the
31.28 indebtedness.
31.29 Sec. 11. [17.131] [FEEDLOT PERMIT SPECIALIST PROGRAM.]
31.30 Subdivision 1. [PURPOSE.] The feedlot permit specialist
31.31 program is primarily, but not exclusively, intended to assist
31.32 operators proposing to permit feedlots with capacities of under
31.33 500 animal units.
31.34 Subd. 2. [SPECIALISTS; DUTIES, ASSIGNMENT.] (a) The
31.35 commissioner shall employ or contract for feedlot permit
31.36 specialists to support operators of small and medium sized farms
32.1 that wish to develop or expand animal agriculture operations in
32.2 the state. The support does not provide legal fees or court
32.3 costs but must include review of draft business plans,
32.4 assistance with preparing and submitting applications for any
32.5 necessary local or state permits, technical support before and
32.6 during any public hearings, and advocacy during any permit
32.7 appeals.
32.8 (b) Farm operators may apply to the commissioner for the
32.9 services of a feedlot permit specialist. The application must
32.10 include reasonable details on the existing farm operation and a
32.11 business plan related to the development or expansion of the
32.12 proposed livestock operation. From the information submitted,
32.13 the commissioner shall determine the applicant's eligibility and
32.14 whether or not to grant the request for a specialist. An
32.15 applicant whose request is declined may reapply after six months.
32.16 (c) If the request for the services of a specialist is
32.17 granted, the commissioner shall appoint a specialist qualified
32.18 to assist the applicant based on the type of livestock proposed
32.19 in the plan, the geographic area of the state, and other factors
32.20 determined by the commissioner.
32.21 (d) A specialist appointed by the commissioner shall have
32.22 primary responsibility for assisting the applicant throughout a
32.23 given permit process. The specialist may work with other
32.24 specialists to provide optimal service to the applicant.
32.25 Sec. 12. Minnesota Statutes 2000, section 17.85, is
32.26 amended to read:
32.27 17.85 [LABORATORY SERVICES ACCOUNT.]
32.28 A laboratory services account is established in the
32.29 agricultural fund. Payments for laboratory services performed
32.30 by the laboratory services division of the department of
32.31 agriculture must be deposited in the agricultural fund and
32.32 credited to the laboratory services account. Money in the
32.33 account, including interest earned on the account, is annually
32.34 appropriated to the commissioner of agriculture to administer
32.35 the programs of the laboratory services division. The
32.36 agriculture laboratory exists to provide analytical and
33.1 technical services in support of agency programs that protect
33.2 and enhance the state's agriculture, environment, and food chain.
33.3 The laboratory may provide analytical and technical services for
33.4 a fee to any public or private entity as requested or required
33.5 to meet department objectives in support of Minnesota
33.6 agriculture and a national food safety system.
33.7 Sec. 13. Minnesota Statutes 2000, section 18B.065,
33.8 subdivision 5, is amended to read:
33.9 Subd. 5. [WASTE PESTICIDE COLLECTION ACCOUNT;
33.10 APPROPRIATION.] A waste pesticide account is established in
33.11 the state treasury agricultural fund. Assessments collected
33.12 under subdivision 2 shall be deposited in the state treasury and
33.13 credited to the waste pesticide account. Money in the account
33.14 is appropriated to the commissioner to pay for costs incurred to
33.15 implement the waste pesticide collection program.
33.16 Sec. 14. Minnesota Statutes 2000, section 18E.04,
33.17 subdivision 2, is amended to read:
33.18 Subd. 2. [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On
33.19 request by an eligible person, the board may pay the eligible
33.20 person for the reasonable and necessary cash disbursements for
33.21 corrective action costs incurred by the eligible person as
33.22 provided under subdivision 4 if the board determines:
33.23 (1) the eligible person pays the first $1,000 of the
33.24 corrective action costs;
33.25 (2) the eligible person provides the board with a sworn
33.26 affidavit and other convincing evidence that the eligible person
33.27 is unable to pay additional corrective action costs;
33.28 (3) the eligible person continues to assume responsibility
33.29 for carrying out the requirements of corrective action orders
33.30 issued to the eligible person or that are in effect; and
33.31 (4) the incident was reported as required in chapters 18B,
33.32 18C, and 18D; and
33.33 (5) the eligible person submits the application for
33.34 reimbursement of eligible corrective action costs to the
33.35 department:
33.36 (i) within three years of incurring the costs or approval
34.1 of a corrective action report, whichever is later; or
34.2 (ii) by June 1, 2004, in the case of costs incurred before
34.3 the effective date of this clause.
34.4 (b) An eligible person is not eligible for payment or
34.5 reimbursement and must refund amounts paid or reimbursed by the
34.6 board if false statements or misrepresentations are made in the
34.7 affidavit or other evidence submitted to the commissioner to
34.8 show an inability to pay corrective action costs.
34.9 (c) The board may pay the eligible person and one or more
34.10 designees by multiparty check.
34.11 Sec. 15. Minnesota Statutes 2000, section 18E.04,
34.12 subdivision 4, is amended to read:
34.13 Subd. 4. [REIMBURSEMENT PAYMENTS.] (a) The board shall pay
34.14 a person that is eligible for reimbursement or payment under
34.15 subdivisions 1, 2, and 3 from the agricultural chemical response
34.16 and reimbursement account for:
34.17 (1) 90 percent of the total reasonable and necessary
34.18 corrective action costs greater than $1,000 and less than or
34.19 equal to $100,000 $200,000;
34.20 (2) 100 percent of the total reasonable and necessary
34.21 corrective action costs greater than $100,000 but less than or
34.22 equal to $200,000;
34.23 (3) 80 percent of the total reasonable and necessary
34.24 corrective action costs greater than $200,000 but less than or
34.25 equal to $300,000; and
34.26 (4) (3) 60 percent of the total reasonable and necessary
34.27 corrective action costs greater than $300,000 but less than or
34.28 equal to $350,000.
34.29 (b) A reimbursement or payment may not be made until the
34.30 board has determined that the costs are reasonable and are for a
34.31 reimbursement of the costs that were actually incurred.
34.32 (c) The board may make periodic payments or reimbursements
34.33 as corrective action costs are incurred upon receipt of invoices
34.34 for the corrective action costs.
34.35 (d) Money in the agricultural chemical response and
34.36 reimbursement account is appropriated to the commissioner to
35.1 make payments and reimbursements directed by the board under
35.2 this subdivision.
35.3 (e) The board may not make reimbursement greater than the
35.4 maximum allowed under paragraph (a) for all incidents on a
35.5 single site which:
35.6 (1) were not reported at the time of release but were
35.7 discovered and reported after July 1, 1989; and
35.8 (2) may have occurred prior to July 1, 1989, as determined
35.9 by the commissioner.
35.10 (f) The board may only reimburse an eligible person for
35.11 separate incidents within a single site if the commissioner
35.12 determines that each incident is completely separate and
35.13 distinct in respect of location within the single site or time
35.14 of occurrence.
35.15 Sec. 16. Minnesota Statutes 2000, section 18E.04,
35.16 subdivision 5, is amended to read:
35.17 Subd. 5. [REIMBURSEMENT OR PAYMENT DECISIONS.] (a) The
35.18 board may issue a letter of intent on whether a person is
35.19 eligible for payment or reimbursement. The letter is not
35.20 binding on the board.
35.21 (b) The board must issue an order granting or denying a
35.22 request within 30 days following the board meeting at which the
35.23 board votes to grant or deny a request for reimbursement or for
35.24 payment under subdivision 1, 2, or 3.
35.25 (c) After an initial request is made for reimbursement,
35.26 notwithstanding subdivisions 1 to 4, the board may deny
35.27 additional requests for reimbursement.
35.28 (d)(1) An eligible person adversely affected by the board's
35.29 disapproval of a reimbursement or payment application under
35.30 paragraph (b) or a partial reimbursement under subdivision 3
35.31 may, within 60 days of receipt of the board's order, request a
35.32 hearing of determination before the board. A request for a
35.33 hearing must be made in writing and specify the grounds for the
35.34 request.
35.35 (2) Within 30 days of the receipt of a request for a
35.36 hearing under clause (1), the eligible person must be notified
36.1 either as to the date of the hearing for determination or of the
36.2 denial of the request for a hearing. Hearings must be scheduled
36.3 immediately following the next regularly scheduled board meeting
36.4 as determined by the notification letter.
36.5 (3) If a dispute related to the disapproval of a
36.6 reimbursement is not resolved after a hearing under clause (2),
36.7 or if a request is denied, the eligible person may appeal the
36.8 decision as a contested case hearing under chapter 14. A
36.9 request for a contested case hearing must be submitted to the
36.10 board in writing within 30 days of the date of the hearing or
36.11 within 30 days of the receipt of notification of denial of the
36.12 hearing request under clause (2).
36.13 Sec. 17. Minnesota Statutes 2000, section 28A.04,
36.14 subdivision 1, is amended to read:
36.15 Subdivision 1. [APPLICATION; DATE OF ISSUANCE.] (a) No
36.16 person shall engage in the business of manufacturing,
36.17 processing, selling, handling, or storing food without having
36.18 first obtained from the commissioner a license for doing such
36.19 business. Applications for such license shall be made to the
36.20 commissioner in such manner and time as required and upon such
36.21 forms as provided by the commissioner and shall contain the name
36.22 and address of the applicant, address or description of each
36.23 place of business, and the nature of the business to be
36.24 conducted at each place, and such other pertinent information as
36.25 the commissioner may require.
36.26 (b) A retail or wholesale food handler license shall be
36.27 issued for the period July 1 to June 30 following and shall be
36.28 renewed thereafter by the licensee on or before July 1 each
36.29 year, except that licenses for all mobile food concession units
36.30 and retail mobile units shall be issued for the period April 1
36.31 to March 31, and shall be renewed thereafter by the licensee on
36.32 or before April 1 each year. A license for a food broker or for
36.33 a food processor or manufacturer shall be issued for the period
36.34 January 1 to December 31 following and shall be renewed
36.35 thereafter by the licensee on or before January 1 of each year,
36.36 except that a license for a wholesale food processor or
37.1 manufacturer operating only at the state fair shall be issued
37.2 for the period July 1 to June 30 following and shall be renewed
37.3 thereafter by the licensee on or before July 1 of each year. A
37.4 penalty for a late renewal shall be assessed in accordance with
37.5 section 28A.08.
37.6 (c) A person applying for a new license up to 14 calendar
37.7 days before the effective date of the new license period under
37.8 paragraph (b) must be issued a license for the 14 days and the
37.9 next license year as a single license and pay a single license
37.10 fee as if the 14 days were part of the upcoming license period.
37.11 Sec. 18. Minnesota Statutes 2000, section 32.394,
37.12 subdivision 8e, is amended to read:
37.13 Subd. 8e. [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk
37.14 pick-up tankers, milk transports, and tankers used to transport
37.15 milk products must be inspected and obtain a permit issued by
37.16 the commissioner annually by July 1. The owner or operator must
37.17 pay a $25 permit fee per tanker to the commissioner. The
37.18 commissioner may appoint such persons as the commissioner deems
37.19 qualified to make inspections.
37.20 Sec. 19. Minnesota Statutes 2000, section 38.02,
37.21 subdivision 1, is amended to read:
37.22 Subdivision 1. [PRO RATA DISTRIBUTION; CONDITIONS.]
37.23 (1) (a) Money appropriated to aid county and district
37.24 agricultural societies and associations shall be distributed
37.25 among all county and district agricultural societies or
37.26 associations in the state pro rata, upon condition that each of
37.27 them has complied with the conditions specified in clause
37.28 (2) paragraph (b).
37.29 (2) (b) To be eligible to participate in such a
37.30 distribution under paragraph (a), each such an agricultural
37.31 society or association (a) shall must: (1) have held an annual
37.32 fair for each of the three years last past, unless prevented
37.33 from doing so because of a calamity or an epidemic declared by
37.34 the board of health as defined in section 145A.02, subdivision
37.35 2, or the state commissioner of health to exist; (b) shall (2)
37.36 have an annual membership of 25 or more; (c) shall (3) have paid
38.1 out to exhibitors for premiums awarded at the last fair held a
38.2 sum not less than the amount to be received from the state; (d)
38.3 shall (4) have published and distributed not less than three
38.4 weeks before the opening day of the fair a premium list, listing
38.5 all items or articles on which premiums are offered and the
38.6 amounts of such premiums and shall have paid premiums pursuant
38.7 to the amount shown for each article or item to be exhibited;
38.8 provided that premiums for school exhibits may be advertised in
38.9 the published premium list by reference to a school premium list
38.10 prepared and circulated during the preceding school year; and
38.11 shall have collected all fees charged for entering an exhibit at
38.12 the time the entry was made and in accordance with schedule of
38.13 entry fees to be charged as published in the premium list; (e)
38.14 shall (5) have paid not more than one premium on each article or
38.15 item exhibited, excluding championship or sweepstake awards, and
38.16 excluding the payment of open class premium awards to 4H Club
38.17 exhibits which at this same fair had won a first prize award in
38.18 regular 4H Club competition; (f) shall and (6) have submitted
38.19 its records and annual report to the commissioner of agriculture
38.20 on a form provided by the commissioner of agriculture, on or
38.21 before the first day of November of the current year.
38.22 (3) (c) All payments authorized under the provisions of
38.23 this chapter shall be made only upon the presentation by the
38.24 commissioner of agriculture with the commissioner of finance of
38.25 a statement of premium allocations. As used herein the term
38.26 premium shall mean the cash award paid to an exhibitor for the
38.27 merit of an exhibit of livestock, livestock products, grains,
38.28 fruits, flowers, vegetables, articles of domestic science,
38.29 handicrafts, hobbies, fine arts, and articles made by school
38.30 pupils, or the cash award paid to the merit winner of events
38.31 such as 4H Club or Future Farmer Contest, Youth Group Contests,
38.32 school spelling contests and school current events contests, the
38.33 award corresponding to the amount offered in the advertised
38.34 premium list referred to in schedule 2. Payments of awards for
38.35 horse races, ball games, musical contests, talent contests,
38.36 parades, and for amusement features for which admission is
39.1 charged, are specifically excluded from consideration as
39.2 premiums within the meaning of that term as used herein.
39.3 (d) Upon receipt of the statement by the commissioner of
39.4 agriculture, it shall be the duty of the commissioner of finance
39.5 to draw a voucher in favor of the agricultural society or
39.6 association for the amount to which it is entitled under the
39.7 provisions of this chapter, which amount shall be computed as
39.8 follows: On the first $750 $1,000 premiums paid by each society
39.9 or association, such society or association shall receive 100
39.10 percent reimbursement; on the second $750 $1,000 premiums paid,
39.11 80 percent; on the third $750 $1,000 premiums paid, 60 percent;
39.12 and on any sum in excess of $2,250 $3,000, 40 percent.
39.13 (4) (e) If the total amount of state aid to which the
39.14 agricultural societies and associations are entitled under the
39.15 provisions of this chapter exceeds the amount of the
39.16 appropriation therefor, the amounts to which the societies or
39.17 associations are entitled shall be prorated so that the total
39.18 payments by the state will not exceed the appropriation.
39.19 Sec. 20. Minnesota Statutes 2000, section 41A.09,
39.20 subdivision 2a, is amended to read:
39.21 Subd. 2a. [DEFINITIONS.] For the purposes of this
39.22 section and section 41A.10, the terms defined in this
39.23 subdivision have the meanings given them.
39.24 (a) "Ethanol" means fermentation ethyl alcohol derived from
39.25 agricultural products, including potatoes, cereal, grains,
39.26 cheese whey, and sugar beets; forest products; or other
39.27 renewable resources, including residue and waste generated from
39.28 the production, processing, and marketing of agricultural
39.29 products, forest products, and other renewable resources, that:
39.30 (1) meets all of the specifications in ASTM specification D
39.31 4806-88; and
39.32 (2) is denatured as specified in Code of Federal
39.33 Regulations, title 27, parts 20 and 21.
39.34 (b) "Wet alcohol" means agriculturally derived fermentation
39.35 ethyl alcohol having a purity of at least 50 percent but less
39.36 than 99 percent.
40.1 (c) "Anhydrous alcohol" means fermentation ethyl alcohol
40.2 derived from agricultural products as described in paragraph
40.3 (a), but that does not meet ASTM specifications or is not
40.4 denatured and is shipped in bond for further processing.
40.5 (d) "Ethanol plant" means a plant at which ethanol,
40.6 anhydrous alcohol, or wet alcohol is produced.
40.7 Sec. 21. [41A.10] [SECOND-GENERATION ETHANOL DEVELOPMENT
40.8 PROGRAM.]
40.9 Subdivision 1. [DEVELOPMENT HISTORY, GOALS.] (a) The
40.10 legislature recognizes the success of the original Minnesota
40.11 ethanol development program, and its contribution to rural
40.12 economic development, cleaner air throughout the state, and
40.13 reduced dependence on imported fuels. Several ethanol
40.14 production plants participating in the original producer payment
40.15 program are nearing the end of their ten-year period of
40.16 eligibility for payments. It is the intent of the legislature
40.17 to support the second-generation ethanol development program
40.18 with the appropriations no longer needed to support facilities
40.19 developed under the original program.
40.20 (b) The goals of the second-generation ethanol development
40.21 program are to demonstrate efficient utilization of
40.22 nontraditional feedstocks for the production of ethanol in
40.23 association with the commercial-scale extraction of grain germ
40.24 from whole grains and to provide the benefits of ethanol
40.25 production facilities to geographic regions of the state where
40.26 plants do not currently exist.
40.27 Subd. 2. [PREAPPROVAL BY COMMISSIONER.] To be eligible for
40.28 grants, loans, and producer payments under the second-generation
40.29 ethanol development program, a proposer must receive
40.30 preconstruction approval from the commissioner for a planned
40.31 second-generation ethanol plant and the associated germ
40.32 extraction facility. The application for approval must be
40.33 submitted to the commissioner at least 90 days before
40.34 construction begins on the facilities. The commissioner shall
40.35 deny or approve a properly completed application within 30 days
40.36 of receipt. An approval, if granted, must include certification
41.1 by the commissioner of the maximum plant production for which
41.2 the ethanol producer credit may be paid, but not exceeding
41.3 15,000,000 gallons of ethanol per year. An approval constitutes
41.4 commitment by the state to quarterly payments from the ethanol
41.5 producer payment program, subject to adequate appropriations,
41.6 and, if stated, may also constitute commitment to an ethanol
41.7 production facility loan under section 41B.044, a grant for a
41.8 grain germ extraction research project, or both.
41.9 Subd. 3. [LOCATION OF FIRST TWO SECOND-GENERATION ETHANOL
41.10 PLANTS.] The first two second-generation ethanol plants approved
41.11 by the commissioner after the effective date of this act must be
41.12 located (1) in west central Minnesota and (2) in northwestern
41.13 Minnesota. The plants must be located not less than one mile
41.14 outside the corporate limits of a statutory or home rule charter
41.15 city.
41.16 Subd. 4. [PRODUCER PAYMENTS.] (a) An ethanol producer
41.17 approved for producer payments under subdivision 2 may apply to
41.18 the commissioner for cash payments for ethanol production within
41.19 30 days after the end of each calendar quarter. The claim must
41.20 cover ethanol production during the preceding three months.
41.21 (b) The commissioner shall make payments from available
41.22 appropriations by 45 days after the close of each calendar
41.23 quarter. The total quarterly payment to a producer under this
41.24 section may not exceed $750,000.
41.25 (c) Notwithstanding the quarterly payment limits of
41.26 paragraph (b), the commissioner shall make an additional payment
41.27 in the eighth quarter of each fiscal biennium to a
41.28 second-generation ethanol producer for the lesser of: (1) 20
41.29 cents per gallon of production in the eighth quarter of the
41.30 biennium that is greater than 3,750,000 gallons; or (2) the
41.31 total amount of payments lost during the first seven quarters of
41.32 the biennium due to plant outages, repair, or major
41.33 maintenance. Total payments to a second-generation ethanol
41.34 producer in a fiscal biennium, including any payment under this
41.35 paragraph, must not exceed the total amount the producer's
41.36 certified production eligibility.
42.1 (d) An ethanol producer is eligible for producer payments
42.2 under this section for production during 40 consecutive calendar
42.3 quarters.
42.4 (e) A second-generation ethanol producer payment account is
42.5 established in the agricultural fund. Money in the account is
42.6 appropriated to the commissioner to make ethanol producer
42.7 payments for facilities that begin production after July 1, 2002.
42.8 Subd. 5. [GRAIN GERM EXTRACTION RESEARCH AND DEMONSTRATION
42.9 GRANTS.] The commissioner may provide a grant, from money
42.10 appropriated for this purpose, for a research and demonstration
42.11 project associated with a second-generation ethanol plant that
42.12 advances commercial-scale extraction of the germ component of
42.13 grains, including corn, wheat, and barley.
42.14 Sec. 22. Minnesota Statutes 2000, section 103B.3369,
42.15 subdivision 5, is amended to read:
42.16 Subd. 5. [FINANCIAL ASSISTANCE.] (a) The board may award
42.17 grants to watershed management organizations in the seven-county
42.18 metropolitan area or counties to carry out water resource
42.19 protection and management programs identified as priorities in
42.20 comprehensive local water plans. Grants may be used to employ
42.21 persons and to obtain and use information necessary to:
42.22 (1) develop comprehensive local water plans under sections
42.23 103B.255 and 103B.311 that have not received state funding for
42.24 water resources planning as provided for in Laws 1987, chapter
42.25 404, section 30, subdivision 5, clause (a);
42.26 (2) revise comprehensive local water plans under section
42.27 103B.201; and
42.28 (3) implement comprehensive local water plans.
42.29 A base grant shall be awarded to a county that levies a water
42.30 implementation tax at a rate, which shall be determined by the
42.31 board. The minimum amount of the water implementation tax shall
42.32 be a tax rate times the adjusted net tax capacity of the county
42.33 for the preceding year. The rate shall be the rate, rounded to
42.34 the nearest .001 of a percent, that, when applied to the
42.35 adjusted net tax capacity for all counties, raises the amount of
42.36 $1,500,000. The base grant will be in an amount equal to
43.1 $37,500 less the amount raised by that levy. If the amount
43.2 necessary to implement the local water plan for the county is
43.3 less than $37,500, the amount of the base grant shall be the
43.4 amount that, when added to the levy amount, equals the amount
43.5 required to implement the plan. For counties where the tax rate
43.6 generates an amount equal to or greater than $18,750, the base
43.7 grant shall be in an amount equal to $18,750.
43.8 (b) For a county that is approved to become a delegated
43.9 county for permitting of animal lots under section 116.07,
43.10 subdivision 7, the board may provide a grant under paragraph (a)
43.11 that constitutes retroactive reimbursement for feedlot
43.12 activities performed by the county from the date of approval by
43.13 the county board until the beginning of the next annual grant
43.14 funding cycle.
43.15 Sec. 23. Minnesota Statutes 2000, section 116.07,
43.16 subdivision 7, is amended to read:
43.17 Subd. 7. [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL
43.18 LOT PERMITS.] Any Minnesota county board may, by resolution,
43.19 with approval of the pollution control agency, assume
43.20 responsibility for processing applications for permits required
43.21 by the pollution control agency under this section for livestock
43.22 feedlots, poultry lots, or other animal lots. The
43.23 responsibility for permit application processing, if assumed by
43.24 a county, may be delegated by the county board to any an
43.25 appropriate county officer or employee, an appropriate officer
43.26 or employee of a contiguous county, an appropriate employee of
43.27 another governmental unit, or a qualified employee of an
43.28 institution of higher education.
43.29 (a) For the purposes of this subdivision, the term
43.30 "processing" includes:
43.31 (1) the distribution to applicants of forms provided by the
43.32 pollution control agency;
43.33 (2) the receipt and examination of completed application
43.34 forms, and the certification, in writing, to the pollution
43.35 control agency either that the animal lot facility for which a
43.36 permit is sought by an applicant will comply with applicable
44.1 rules and standards, or, if the facility will not comply, the
44.2 respects in which a variance would be required for the issuance
44.3 of a permit; and
44.4 (3) rendering in cooperation with the commissioner of
44.5 agriculture, providing to applicants, upon request, and at no
44.6 cost if the applicant is proposing a feedlot with a capacity of
44.7 under 500 animal units, the services of a feedlot permit
44.8 specialist to provide assistance necessary for the proper and
44.9 timely completion of an application the permit process,
44.10 including assistance with local and state applications, public
44.11 hearings, and appeals.
44.12 (b) For the purposes of this subdivision, the term
44.13 "processing" may include, at the option of the county board,
44.14 issuing, denying, modifying, imposing conditions upon, or
44.15 revoking permits pursuant to the provisions of this section or
44.16 rules promulgated pursuant to it, subject to review, suspension,
44.17 and reversal by the pollution control agency. The pollution
44.18 control agency shall, after written notification, have 15 days
44.19 to review, suspend, modify, or reverse the issuance of the
44.20 permit. After this period, the action of the county board is
44.21 final, subject to appeal as provided in chapter 14. For permit
44.22 applications filed after October 1, 2001, section 15.99 applies
44.23 to feedlot permits issued by the agency or a county pursuant to
44.24 this subdivision.
44.25 (c) For the purpose of administration of rules adopted
44.26 under this subdivision, the commissioner and the agency may
44.27 provide exceptions for cases where the owner of a feedlot has
44.28 specific written plans to close the feedlot within five years.
44.29 These exceptions include waiving requirements for major capital
44.30 improvements.
44.31 (d) For purposes of this subdivision, a discharge caused by
44.32 an extraordinary natural event such as a precipitation event of
44.33 greater magnitude than the 25-year, 24-hour event, tornado, or
44.34 flood in excess of the 100-year flood is not a "direct discharge
44.35 of pollutants."
44.36 (e) In adopting and enforcing rules under this subdivision,
45.1 the commissioner shall cooperate closely with other governmental
45.2 agencies.
45.3 (f) The pollution control agency shall work with the
45.4 Minnesota extension service, the department of agriculture, the
45.5 board of water and soil resources, producer groups, local units
45.6 of government, as well as with appropriate federal agencies such
45.7 as the Natural Resources Conservation Service and the Farm
45.8 Service Agency, to notify and educate producers of rules under
45.9 this subdivision at the time the rules are being developed and
45.10 adopted and at least every two years thereafter.
45.11 (g) The pollution control agency shall adopt rules
45.12 governing the issuance and denial of permits for livestock
45.13 feedlots, poultry lots or other animal lots pursuant to this
45.14 section. A feedlot permit is not required for livestock
45.15 feedlots with more than ten but less than 50 animal units;
45.16 provided they are not in shoreland areas. A livestock feedlot
45.17 permit does not become required solely because of a change in
45.18 the ownership of the buildings, grounds, or feedlot. These
45.19 rules apply both to permits issued by counties and to permits
45.20 issued by the pollution control agency directly.
45.21 (h) The pollution control agency shall exercise supervising
45.22 authority with respect to the processing of animal lot permit
45.23 applications by a county.
45.24 (i) Any new rules or amendments to existing rules proposed
45.25 under the authority granted in this subdivision, or to implement
45.26 new fees on animal feedlots, must be submitted to the members of
45.27 legislative policy and finance committees with jurisdiction over
45.28 agriculture and the environment prior to final adoption. The
45.29 rules must not become effective until 90 days after the proposed
45.30 rules are submitted to the members.
45.31 (j) Until new rules are adopted that provide for plans for
45.32 manure storage structures, any plans for a liquid manure storage
45.33 structure must be prepared or approved by a registered
45.34 professional engineer or a United States Department of
45.35 Agriculture, Natural Resources Conservation Service employee.
45.36 (k) A county may adopt by ordinance standards for animal
46.1 feedlots that are more stringent than standards in pollution
46.2 control agency rules.
46.3 (l) After January 1, 2001, a county that has not accepted
46.4 delegation of the feedlot permit program must hold a public
46.5 meeting prior to the agency issuing a feedlot permit for a
46.6 feedlot facility with 300 or more animal units, unless another
46.7 public meeting has been held with regard to the feedlot facility
46.8 to be permitted.
46.9 (m) After the proposed rules published in the State
46.10 Register, volume 24, number 25, are finally adopted, the agency
46.11 may not impose additional conditions as a part of a feedlot
46.12 permit, unless specifically required by law or agreed to by the
46.13 feedlot operator.
46.14 (n) For the purposes of feedlot permitting, a discharge
46.15 from land-applied manure or a manure stockpile that is managed
46.16 according to agency rule must not be subject to a fine for a
46.17 discharge violation.
46.18 (o) For the purposes of feedlot permitting, manure that is
46.19 land applied, or a manure stockpile that is managed according to
46.20 agency rule, must not be considered a discharge into waters of
46.21 the state, unless the discharge is to waters of the state, as
46.22 defined by section 103G.005, subdivision 17, except type 1 or
46.23 type 2 wetlands, as defined in section 103G.005, subdivision
46.24 17b, and does not meet discharge standards established for
46.25 feedlots under agency rule.
46.26 (p) Unless the upgrade is needed to correct an immediate
46.27 public health threat under section 145A.04, subdivision 8, the
46.28 agency may not require a feedlot operator:
46.29 (1) to spend more than $3,000 to upgrade an existing
46.30 feedlot with less than 300 animal units unless cost-share money
46.31 is available to the feedlot operator for 75 percent of the cost
46.32 of the upgrade; or
46.33 (2) to spend more than $10,000 to upgrade an existing
46.34 feedlot with between 300 and 500 animal units, unless cost-share
46.35 money is available to the feedlot operator for 75 percent of the
46.36 cost of the upgrade or $50,000, whichever is less.
47.1 Sec. 24. Minnesota Statutes 2000, section 116O.09,
47.2 subdivision 1a, is amended to read:
47.3 Subd. 1a. [BOARD OF DIRECTORS.] The board of directors of
47.4 the agricultural utilization research institute is comprised of:
47.5 (1) the chairs of the senate agriculture and rural
47.6 development committee and the house of representatives
47.7 agriculture and rural development committee;
47.8 (2) two representatives of statewide farm organizations;
47.9 (3) two representatives of agribusiness, one of whom is a
47.10 member of the Minnesota Technology, Inc. board representing
47.11 agribusiness; and
47.12 (4) three representatives of the commodity promotion
47.13 councils; and
47.14 (5) the commissioner of agriculture.
47.15 A member of the board of directors under clauses (1) to
47.16 (4) (5) may designate a permanent or temporary replacement
47.17 member representing the same constituency.
47.18 Sec. 25. Minnesota Statutes 2000, section 169.871,
47.19 subdivision 1, is amended to read:
47.20 Subdivision 1. [CIVIL LIABILITY.] (a) The owner or lessee
47.21 of a vehicle that is operated with a gross weight in excess of a
47.22 weight limit imposed under sections 169.825 and 169.832 to
47.23 169.851 and 169.87 or a shipper who ships or tenders goods for
47.24 shipment in a single truck or combination vehicle that exceeds a
47.25 weight limit imposed under sections 169.825 and 169.832 to
47.26 169.851 and 169.87 is liable for a civil penalty as follows:
47.27 (1) if the total gross excess weight is not more than 1,000
47.28 pounds, one cent per pound for each pound in excess of the legal
47.29 limit;
47.30 (2) if the total gross excess weight is more than 1,000
47.31 pounds but not more than 3,000 pounds, $10 plus five cents per
47.32 pound for each pound in excess of 1,000 pounds;
47.33 (3) if the total gross excess weight is more than 3,000
47.34 pounds but not more than 5,000 pounds, $110 plus ten cents per
47.35 pound for each pound in excess of 3,000 pounds;
47.36 (4) if the total gross excess weight is more than 5,000
48.1 pounds but not more than 7,000 pounds, $310 plus 15 cents per
48.2 pound for each pound in excess of 5,000 pounds;
48.3 (5) if the total gross excess weight is more than 7,000
48.4 pounds, $610 plus 20 cents per pound for each pound in excess of
48.5 7,000 pounds.
48.6 (b) Any penalty imposed upon a defendant under this
48.7 subdivision shall not exceed the penalty prescribed by this
48.8 subdivision. Any fine paid by the defendant in a criminal
48.9 overweight action that arose from the same overweight violation
48.10 shall be applied toward payment of the civil penalty under this
48.11 subdivision. A peace officer or department of public safety
48.12 employee described in section 299D.06 who cites a driver for a
48.13 violation of the weight limitations established by sections
48.14 169.81 to 169.851 and 169.87 shall give written notice to the
48.15 driver that the driver or another may also be liable for the
48.16 civil penalties provided herein in the same or separate
48.17 proceedings.
48.18 (c) A penalty imposed upon the owner or lessee of a vehicle
48.19 that is based on violations identified by the use of shippers
48.20 weight records under section 169.872, must not exceed an
48.21 aggregate of $10,000 for the 14 days immediately prior to the
48.22 imposition of the penalty.
48.23 Sec. 26. Minnesota Statutes 2000, section 169.872,
48.24 subdivision 1, is amended to read:
48.25 Subdivision 1. [RECORD KEEPING.] (a) A person who weighs
48.26 goods before or after unloading or a person who loads or unloads
48.27 goods on the basis of liquid volume measure shall keep a written
48.28 record of the origin, weight and composition of each shipment,
48.29 the date of loading or receipt, the name and address of the
48.30 shipper, the total number of axles on the vehicle or combination
48.31 of vehicles, and the registration number of the power unit or
48.32 some other means of identification by which the shipment was
48.33 transported. The record shall be retained for 30 14 days and
48.34 shall be open to inspection and copying by a state law
48.35 enforcement officer or motor transport representative, except
48.36 state conservation officers, upon demand. No search warrant is
49.1 required to inspect or copy the record.
49.2 (b) This subdivision does not apply to a person weighing
49.3 goods who is not involved in the shipping, receiving and
49.4 transporting of those goods, or to a person weighing raw and
49.5 unfinished farm products transported in a single unit vehicle
49.6 with not more than three axles or by a trailer towed by a farm
49.7 tractor when the transportation is the first haul of the product.
49.8 Sec. 27. [REFUND OF CERTAIN DAIRY FINES.]
49.9 For civil fines levied under Minnesota Statutes 1999
49.10 Supplement, section 32.21, subdivision 4, paragraph (d), for
49.11 violations that occurred between April 13, 2000, and August 1,
49.12 2000, the commissioner of agriculture shall waive the amount of
49.13 the civil fine that is above the amount required under Minnesota
49.14 Statutes 2000, section 32.21, subdivision 4, paragraph (d). The
49.15 commissioner shall reimburse the amount waived to dairy
49.16 producers who have paid civil fines for violations that occurred
49.17 between April 13, 2000, and August 1, 2000.
49.18 Sec. 28. [REPEALER.]
49.19 Minnesota Statutes 2000, section 31.11, subdivision 2, is
49.20 repealed.