HF 1420

4th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; appropriating money for 
  1.3             agricultural purposes; establishing and modifying 
  1.4             certain programs; providing for regulation of certain 
  1.5             activities and practices; providing for accounts, 
  1.6             assessments, and fees; providing for the issuance of 
  1.7             state bonds; amending Minnesota Statutes 2004, 
  1.8             sections 13.643, by adding a subdivision; 17.03, 
  1.9             subdivision 13; 17.117, subdivision 11, by adding a 
  1.10            subdivision; 17.452, by adding a subdivision; 17.982, 
  1.11            subdivision 1; 17.983, subdivisions 1, 3; 17B.03, 
  1.12            subdivision 1; 18B.08, subdivision 4; 18B.26, 
  1.13            subdivision 3; 18B.31, subdivision 5; 18B.315, 
  1.14            subdivision 6; 18B.32, subdivision 6; 18B.33, 
  1.15            subdivision 7; 18B.34, subdivision 5; 18C.141, 
  1.16            subdivisions 1, 3, 5; 18C.425, subdivision 6; 18E.03, 
  1.17            subdivision 2; 18G.03, subdivision 1; 18G.10, 
  1.18            subdivisions 5, 7; 18H.02, subdivisions 21, 22, 23, 
  1.19            32, 34, by adding a subdivision; 18H.05; 18H.06; 
  1.20            18H.07, subdivisions 1, 2, 3; 18H.09; 18H.13, 
  1.21            subdivision 1; 18H.15; 18H.18, subdivision 1; 19.64, 
  1.22            subdivision 1; 25.341, subdivision 2; 25.39, 
  1.23            subdivisions 1, 4; 31.94; 35.02, subdivision 1; 35.03; 
  1.24            35.05; 35.155; 38.01; 38.16; 41A.09, subdivisions 2a, 
  1.25            3a; 41B.046, subdivision 5; 41B.049, subdivisions 2, 
  1.26            4; 174.52, subdivision 5; 223.17, subdivision 3; 
  1.27            231.08, by adding subdivisions; 231.09; 231.11; 
  1.28            231.16; 231.18, subdivisions 3, 5; 232.22, subdivision 
  1.29            3; 236.02, subdivision 4; 327.23, subdivision 2, by 
  1.30            adding a subdivision; 394.25, subdivision 3c; 462.355, 
  1.31            subdivision 4; 462.357, by adding a subdivision; 
  1.32            proposing coding for new law in Minnesota Statutes, 
  1.33            chapters 16C; 25; 35; 41B; 156; 231; 583; 604; 
  1.34            repealing Minnesota Statutes 2004, sections 17.451; 
  1.35            17.452, subdivisions 6, 6a, 7, 10, 11, 12, 13, 13a, 
  1.36            14, 15, 16; 17.983, subdivision 2; 18B.065, 
  1.37            subdivision 5; 18H.02, subdivisions 15, 19; 19.64, 
  1.38            subdivision 4a; 35.0661, subdivision 4; 41B.046, 
  1.39            subdivision 3; Laws 1986, chapter 398, article 1, 
  1.40            section 18, as amended; Minnesota Rules, parts 
  1.41            1560.7700; 1560.7750; 1560.7800; 1560.7850; 1560.7900; 
  1.42            1560.8000; 1560.8100; 1560.8200; 1560.8300; 1560.8400; 
  1.43            1560.8500; 1560.8600; 1560.8700; 1560.8800. 
  1.44  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.1                              ARTICLE 1 
  2.2                      APPROPRIATIONS, GENERALLY
  2.3   Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS.] 
  2.4      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.5   appropriated from the general fund, or another named fund, to 
  2.6   the agencies and for the purposes specified in this act, to be 
  2.7   available for the fiscal years indicated for each purpose. The 
  2.8   figures "2006" and "2007," where used in this act, mean that the 
  2.9   appropriation or appropriations listed under them are available 
  2.10  for the fiscal year ending June 30, 2006, or June 30, 2007, 
  2.11  respectively.  The term "the first year" means the year ending 
  2.12  June 30, 2006, and the term "the second year" means the year 
  2.13  ending June 30, 2007. 
  2.14                          SUMMARY BY FUND
  2.15                            2006          2007           TOTAL
  2.16  General            $   44,303,000 $   41,557,000 $   85,860,000
  2.17  Remediation               388,000        388,000        776,000
  2.18  TOTAL              $   44,691,000 $   41,945,000 $   86,636,000
  2.19                                             APPROPRIATIONS 
  2.20                                         Available for the Year 
  2.21                                             Ending June 30 
  2.22                                            2006         2007 
  2.23  Sec. 2.  DEPARTMENT OF AGRICULTURE
  2.24  Subdivision 1.  Total 
  2.25  Appropriation                         40,122,000     37,384,000
  2.26                Summary by Fund
  2.27  General              39,734,000    36,996,000
  2.28  Remediation             388,000       388,000
  2.29  The amounts that may be spent from this 
  2.30  appropriation for each program are 
  2.31  specified in the following subdivisions.
  2.32  Subd. 2.  Protection Services
  2.33      10,490,000     10,495,000 
  2.34                Summary by Fund
  2.35  General              10,102,000    10,107,000
  2.36  Remediation             388,000       388,000
  2.37  $388,000 the first year and $388,000 
  2.38  the second year are from the 
  2.39  remediation fund for administrative 
  2.40  funding for the voluntary cleanup 
  2.41  program. 
  3.1   The balance in the waste pesticide 
  3.2   account in the agricultural fund is 
  3.3   canceled to the pesticide regulatory 
  3.4   account in the agricultural fund and 
  3.5   the waste pesticide account is 
  3.6   abolished. 
  3.7   $145,000 the first year and $150,000 
  3.8   the second year are for increased 
  3.9   monitoring of pesticides in groundwater 
  3.10  and surface waters throughout the 
  3.11  state.  This appropriation must be used 
  3.12  primarily for sample collection and 
  3.13  laboratory analytical costs.  This 
  3.14  appropriation is in addition to other 
  3.15  appropriations and funding for the 
  3.16  water monitoring program. 
  3.17  Subd. 3.  Agricultural Marketing
  3.18  and Development                        4,467,000      4,197,000
  3.19  $71,000 the first year and $71,000 the 
  3.20  second year are for transfer to the 
  3.21  Minnesota grown matching account and 
  3.22  may be used as grants for Minnesota 
  3.23  grown promotion under Minnesota 
  3.24  Statutes, section 17.109.  Grants may 
  3.25  be made for one year.  Notwithstanding 
  3.26  Minnesota Statutes, section 16A.28, the 
  3.27  appropriations encumbered under 
  3.28  contract on or before June 30, 2007, 
  3.29  for Minnesota grown grants in this 
  3.30  subdivision are available until June 
  3.31  30, 2009. 
  3.32  $80,000 the first year and $80,000 the 
  3.33  second year are for grants to farmers 
  3.34  for demonstration projects involving 
  3.35  sustainable agriculture as authorized 
  3.36  in Minnesota Statutes, section 17.116.  
  3.37  Of the amount for grants, up to $20,000 
  3.38  may be used for dissemination of 
  3.39  information about the demonstration 
  3.40  projects.  Notwithstanding Minnesota 
  3.41  Statutes, section 16A.28, the 
  3.42  appropriations encumbered under 
  3.43  contract on or before June 30, 2007, 
  3.44  for sustainable agriculture grants in 
  3.45  this subdivision are available until 
  3.46  June 30, 2009. 
  3.47  The commissioner of agriculture, in 
  3.48  consultation with the commissioner of 
  3.49  transportation, shall conduct an 
  3.50  economic impact study of a rail 
  3.51  container load-out facility located in 
  3.52  the west-central area of Minnesota.  
  3.53  The study must include benefits of such 
  3.54  a facility to the region and to the 
  3.55  state transportation system.  By 
  3.56  January 15, 2006, the commissioner 
  3.57  shall report to the governor and the 
  3.58  agriculture policy committees of the 
  3.59  senate and house on the findings of the 
  3.60  study. 
  3.61  $100,000 the first year and $100,000 
  3.62  the second year are to provide training 
  3.63  and technical assistance to county and 
  3.64  town officials relating to livestock 
  3.65  siting issues and local zoning and land 
  4.1   use planning including a checklist 
  4.2   template that would clarify the 
  4.3   federal, state, and local government 
  4.4   requirements for consideration of an 
  4.5   animal agriculture modernization or 
  4.6   expansion project.  In developing the 
  4.7   training and technical assistance 
  4.8   program, the commissioner may seek 
  4.9   assistance from the local planning 
  4.10  assistance center of the Department of 
  4.11  Administration and shall seek guidance, 
  4.12  advice, and support of livestock 
  4.13  producer organizations, general 
  4.14  agricultural organizations, local 
  4.15  government associations, academic 
  4.16  institutions, other government 
  4.17  agencies, and others with expertise in 
  4.18  land use and agriculture. 
  4.19  $220,000 the first year is to contract 
  4.20  with the University of Minnesota for 
  4.21  further research and development of 
  4.22  livestock odor and air quality 
  4.23  management.  This is a onetime 
  4.24  appropriation. 
  4.25  $50,000 is for a grant to Second 
  4.26  Harvest Heartland on behalf of 
  4.27  Minnesota's six Second Harvest food 
  4.28  banks for the purchase of milk for 
  4.29  distribution to Minnesota's food 
  4.30  shelves and other charitable 
  4.31  organizations that are eligible to 
  4.32  receive food from the food banks.  Milk 
  4.33  purchased under the grants must be 
  4.34  acquired from Minnesota milk processors 
  4.35  and based on low-cost bids.  The milk 
  4.36  must be allocated to each Second 
  4.37  Harvest food bank serving Minnesota 
  4.38  according to the formula used in the 
  4.39  distribution of United States 
  4.40  Department of Agriculture commodities 
  4.41  under The Emergency Food Assistance 
  4.42  Program (TEFAP).  Second Harvest 
  4.43  Heartland must submit quarterly reports 
  4.44  to the commissioner on forms prescribed 
  4.45  by the commissioner.  The reports must 
  4.46  include, but are not limited to, 
  4.47  information on the expenditure of 
  4.48  funds, the amount of milk purchased, 
  4.49  and the organizations to which the milk 
  4.50  was distributed.  Second Harvest 
  4.51  Heartland may enter into contracts or 
  4.52  agreements with food banks for shared 
  4.53  funding or reimbursement of the direct 
  4.54  purchase of milk.  Each food bank 
  4.55  receiving money from this appropriation 
  4.56  may use up to two percent of the grant 
  4.57  for administrative expenses. 
  4.58  Subd. 4.  Value-Added Agricultural Products 
  4.59      18,745,000     15,268,000 
  4.60  $18,745,000 the first year and 
  4.61  $15,268,000 the second year are for 
  4.62  ethanol producer payments under 
  4.63  Minnesota Statutes, section 41A.09.  
  4.64  Payments for eligible ethanol 
  4.65  production in fiscal years 2006 and 
  4.66  2007 shall be disbursed at the rate of 
  5.1   $0.13 per gallon.  If the total amount 
  5.2   for which all producers are eligible in 
  5.3   a quarter exceeds the amount available 
  5.4   for payments, the commissioner shall 
  5.5   make payments on a pro rata basis.  If 
  5.6   the appropriation exceeds the total 
  5.7   amount for which all producers are 
  5.8   eligible in a fiscal year for scheduled 
  5.9   payments, the balance must be used to 
  5.10  reimburse ethanol producers for 
  5.11  deficiencies as provided in Minnesota 
  5.12  Statutes, section 41A.09, subdivision 
  5.13  3a, paragraphs (h) and (i).  The 
  5.14  appropriation remains available until 
  5.15  spent. 
  5.16  Subd. 5.  Administration and Financial Assistance
  5.17       6,420,000      7,424,000 
  5.18  $1,005,000 the first year and 
  5.19  $1,005,000 the second year are for 
  5.20  continuation of the dairy development 
  5.21  and profitability enhancement and dairy 
  5.22  business planning grant programs 
  5.23  established under Laws 1997, chapter 
  5.24  216, section 7, subdivision 2, and Laws 
  5.25  2001, First Special Session chapter 2, 
  5.26  section 9, subdivision 2 and to 
  5.27  administer a dairy investment tax 
  5.28  credit program.  The commissioner may 
  5.29  allocate the available sums among 
  5.30  permissible activities, including 
  5.31  efforts to improve the quality of milk 
  5.32  produced in the state in the 
  5.33  proportions that the commissioner deems 
  5.34  most beneficial to Minnesota's dairy 
  5.35  farmers.  The commissioner must submit 
  5.36  a work plan detailing plans for 
  5.37  expenditures under this program to the 
  5.38  chairs of the house and senate 
  5.39  committees dealing with agricultural 
  5.40  policy and budget on or before the 
  5.41  start of each fiscal year.  If 
  5.42  significant changes are made to the 
  5.43  plans in the course of the year, the 
  5.44  commissioner must notify the chairs.  
  5.45  $50,000 the first year and $50,000 the 
  5.46  second year are for the Northern Crops 
  5.47  Institute.  These appropriations may be 
  5.48  spent to purchase equipment.  
  5.49  $19,000 the first year and $19,000 the 
  5.50  second year are for a grant to the 
  5.51  Minnesota Livestock Breeders 
  5.52  Association. 
  5.53  $1,000 the first year and $1,000 the 
  5.54  second year are for family farm 
  5.55  security interest payment adjustments.  
  5.56  If the appropriation for either year is 
  5.57  insufficient, the appropriation for the 
  5.58  other year is available for it.  No new 
  5.59  loans may be approved in fiscal year 
  5.60  2006 or 2007.  
  5.61  Aid payments to county and district 
  5.62  agricultural societies and associations 
  5.63  under Minnesota Statutes, section 
  5.64  38.02, subdivision 1, must be disbursed 
  6.1   not later than July 15 for annual fairs 
  6.2   held in the previous calendar year. 
  6.3   The commissioner is instructed to 
  6.4   increase expenditures from the accounts 
  6.5   in the agriculture fund by $190,000 the 
  6.6   first year and $310,000 the second 
  6.7   year.  This increase is for a portion 
  6.8   of the increased rent cost.  
  6.9   $70,000 the first year and $75,000 the 
  6.10  second year are for annual grants to 
  6.11  the Northern Minnesota Forage-Turf Seed 
  6.12  Advisory Committee for basic and 
  6.13  applied research on the improved 
  6.14  production of forage and turf seed 
  6.15  related to new and improved varieties.  
  6.16  The grant recipient may subcontract 
  6.17  with a qualified third party for some 
  6.18  or all of the basic and applied 
  6.19  research. 
  6.20  Sec. 3.  BOARD OF ANIMAL  
  6.21  HEALTH                                 2,959,000      2,961,000 
  6.22  Sec. 4.  AGRICULTURAL UTILIZATION
  6.23  RESEARCH INSTITUTE                     1,600,000      1,600,000
  6.24  Sec. 5.  MINNESOTA HORTICULTURE
  6.25  SOCIETY                                   10,000        -0-
  6.26  This is a onetime appropriation. 
  6.27     Sec. 6.  Minnesota Statutes 2004, section 13.643, is 
  6.28  amended by adding a subdivision to read: 
  6.29     Subd. 6.  [ANIMAL IDENTIFICATION DATA.] (a) The following 
  6.30  data collected and maintained by the Board of Animal Health 
  6.31  related to registration and identification of premises and 
  6.32  animals under chapter 35, are classified as private or nonpublic:
  6.33     (1) the names and addresses of the applicants; 
  6.34     (2) the location of the premises where animals are kept; 
  6.35  and 
  6.36     (3) the identification number of the premises or the animal.
  6.37     (b) Nothing in this subdivision prohibits a state agency 
  6.38  from carrying out the statutory duties of the agency. 
  6.39     Sec. 7.  [16C.137] [MINIMIZING ENERGY USE; RENEWABLE 
  6.40  FUELS.] 
  6.41     Subdivision 1.  [GOALS AND ACTIONS.] (a) Using 2005 as a 
  6.42  baseline, the state of Minnesota shall reduce the use of 
  6.43  gasoline by on-road vehicles owned by state departments by 25 
  6.44  percent by 2010 and by 50 percent by 2015, and the use of 
  6.45  petroleum-based diesel fuel in diesel-fueled vehicles by ten 
  7.1   percent by 2010 and 25 percent by 2015. 
  7.2      (b) To meet the goals established in paragraph (a), each 
  7.3   state department will, whenever legally, technically, and 
  7.4   economically feasible, subject to the specific needs of the 
  7.5   department and responsible management of agency finances: 
  7.6      (1) ensure that at least 75 percent of purchases of new 
  7.7   on-road vehicles: 
  7.8      (i) use "cleaner fuels" as that term is defined in section 
  7.9   16C.135, subdivision 1, clauses (1), (3), and (4); or 
  7.10     (ii) have fuel efficiency ratings that exceed 30 miles per 
  7.11  gallon for city usage or 35 miles per gallon for highway usage, 
  7.12  including but not limited to hybrid electric cars and 
  7.13  hydrogen-powered vehicles; 
  7.14     (2) increase its use of renewable transportation fuels, 
  7.15  including ethanol, biodiesel, and hydrogen from agricultural 
  7.16  products; and 
  7.17     (3) increase its use of Web-based Internet applications and 
  7.18  other electronic information technologies to enhance the access 
  7.19  to and delivery of government information and services to the 
  7.20  public, and reduce the reliance on the department's fleet for 
  7.21  the delivery of such information and services. 
  7.22     Subd. 2.  [SMARTFLEET COMMITTEE.] (a) The commissioner of 
  7.23  administration, or the commissioner's designee, shall chair a 
  7.24  SmartFleet Committee consisting of representatives designated by 
  7.25  the commissioners of the Pollution Control Agency, the 
  7.26  Departments of Agriculture and Commerce, and other state 
  7.27  departments that wish to participate.  To ensure effective and 
  7.28  efficient state participation, the SmartFleet Committee must 
  7.29  assist state departments in implementing the requirements of 
  7.30  this section, including providing information, guidance, sample 
  7.31  policies and procedures, and technical and planning assistance. 
  7.32     (b) The SmartFleet Committee must evaluate the goals and 
  7.33  directives established in this section by December 2006 and 
  7.34  periodically thereafter.  The committee must make 
  7.35  recommendations to the governor and appropriate committees of 
  7.36  the legislature on February 1 of each year for new or adjusted 
  8.1   goals and directives, in light of the progress the state has 
  8.2   made implementing this section, and of the availability of new 
  8.3   or improved technologies. 
  8.4      (c) For the systematic and efficient monitoring of progress 
  8.5   in implementing this section by the SmartFleet Committee, the 
  8.6   Department of Administration shall implement a fleet reporting 
  8.7   and information management system.  Each department will use 
  8.8   this management system to demonstrate its progress in complying 
  8.9   with this section. 
  8.10     Subd. 3.  [EXCLUSION.] Petroleum-based diesel fuel used in 
  8.11  a vehicle which a department has retrofit to use ultra low 
  8.12  sulfur diesel fuel and to add additional emissions control 
  8.13  technologies is excluded when evaluating progress toward the 
  8.14  reduction goals established in subdivision 1.  This exclusion 
  8.15  applies only to vehicles purchased before the model year in 
  8.16  which the federal Environmental Protection Agency's new clean 
  8.17  diesel emission reduction rules take effect. 
  8.18     [EFFECTIVE DATE.] This section is effective the day 
  8.19  following final enactment. 
  8.20     Sec. 8.  Minnesota Statutes 2004, section 17.03, 
  8.21  subdivision 13, is amended to read: 
  8.22     Subd. 13.  [SEMIANNUAL REPORTS.] (a) By October 15 and 
  8.23  April 15 of each year, The commissioner shall submit to the 
  8.24  legislative committees having jurisdiction over appropriations 
  8.25  from the agricultural fund in section 16A.531 a report reports 
  8.26  on the amount of revenue raised in each fee account within the 
  8.27  fund, the expenditures from each account, and the purposes for 
  8.28  which the expenditures were made.  The reports must be issued in 
  8.29  February and November each year, to coincide with the forecasts 
  8.30  of revenue and expenditures prepared under section 16A.103. 
  8.31     (b) The report delivered on October 15 in February of each 
  8.32  year must include the commissioner's recommendations, if any, 
  8.33  for changes in statutes relating to the fee accounts of the 
  8.34  agricultural fund. 
  8.35     Sec. 9.  Minnesota Statutes 2004, section 17.117, is 
  8.36  amended by adding a subdivision to read: 
  9.1      Subd. 5b.  [APPLICATION FEE.] The commissioner may impose a 
  9.2   nonrefundable application fee of $50 for each loan issued under 
  9.3   the program.  The fees must be credited to the agricultural best 
  9.4   management practices administration account, which is hereby 
  9.5   established in the agricultural fund.  Interest earned in the 
  9.6   account accrues to the account.  Money in the account and 
  9.7   interest earned in the accounts established in the agricultural 
  9.8   fund under subdivision 5a are appropriated to the commissioner 
  9.9   for administrative expenses of the program. 
  9.10     Sec. 10.  Minnesota Statutes 2004, section 17.117, 
  9.11  subdivision 11, is amended to read: 
  9.12     Subd. 11.  [LOANS ISSUED TO BORROWER.] (a) Local lenders 
  9.13  may issue loans only for projects that are approved and 
  9.14  certified by the local government unit as meeting priority needs 
  9.15  identified in a comprehensive water management plan or other 
  9.16  local planning documents, are in compliance with accepted 
  9.17  practices, standards, specifications, or criteria, and are 
  9.18  eligible for financing under Environmental Protection Agency or 
  9.19  other applicable guidelines. 
  9.20     (b) The local lender may use any additional criteria 
  9.21  considered necessary to determine the eligibility of borrowers 
  9.22  for loans. 
  9.23     (c) Local lenders shall set the terms and conditions of 
  9.24  loans to borrowers, except that: 
  9.25     (1) no loan to a borrower may exceed $50,000 $100,000; 
  9.26     (2) no loan for a project may exceed $50,000 $100,000; and 
  9.27     (3) no borrower shall, at any time, have multiple loans 
  9.28  from this program with a total outstanding loan balance of more 
  9.29  than $50,000 $100,000.  
  9.30     (d) The maximum term length for conservation tillage and 
  9.31  individual sewage treatment system projects is five years.  The 
  9.32  maximum term length for other projects in this paragraph is ten 
  9.33  years. 
  9.34     (e) Fees charged at the time of closing must: 
  9.35     (1) be in compliance with normal and customary practices of 
  9.36  the local lender; 
 10.1      (2) be in accordance with published fee schedules issued by 
 10.2   the local lender; 
 10.3      (3) not be based on participation program; and 
 10.4      (4) be consistent with fees charged other similar types of 
 10.5   loans offered by the local lender. 
 10.6      (f) The interest rate assessed to an outstanding loan 
 10.7   balance by the local lender must not exceed three percent per 
 10.8   year. 
 10.9      Sec. 11.  Minnesota Statutes 2004, section 17.452, is 
 10.10  amended by adding a subdivision to read: 
 10.11     Subd. 5a.  [OTHER APPLICABLE DEFINITIONS.] The definitions 
 10.12  in section 35.153 apply to this section. 
 10.13     Sec. 12.  Minnesota Statutes 2004, section 17.982, 
 10.14  subdivision 1, is amended to read: 
 10.15     Subdivision 1.  [CRIMINAL PENALTIES.] A person who violates 
 10.16  a provision of chapter 28A, 29, 31, 31A, 31B, or 34 for which a 
 10.17  penalty has not been prescribed is guilty of a misdemeanor.  
 10.18     Sec. 13.  Minnesota Statutes 2004, section 17.983, 
 10.19  subdivision 1, is amended to read: 
 10.20     Subdivision 1.  [ADMINISTRATIVE PENALTIES; CITATION.] If a 
 10.21  person has violated chapter 28A, 29, 31, 31A, 31B, 32, or 34, 
 10.22  the commissioner may issue a written citation to the person by 
 10.23  personal service or by certified mail.  The citation shall must 
 10.24  describe the nature of the violation and the statute or rule 
 10.25  alleged to have been violated; state the time for correction; 
 10.26  and the amount of any proposed fine.  The citation must advise 
 10.27  the person to notify the commissioner in writing within 30 days 
 10.28  if the person wishes to appeal the citation.  If the person 
 10.29  fails to appeal the citation, the citation is the final order 
 10.30  and not subject to further review.  
 10.31     Sec. 14.  Minnesota Statutes 2004, section 17.983, 
 10.32  subdivision 3, is amended to read: 
 10.33     Subd. 3.  [CONTESTED CASE.] If a person appeals a citation 
 10.34  or a penalty assessment within the time limits in 
 10.35  subdivisions subdivision 1 and 2, the commissioner, within 40 
 10.36  days after receiving the appeal, shall initiate a contested 
 11.1   proceeding under chapter 14.  The report of the administrative 
 11.2   law judge is the final decision of the commissioner of 
 11.3   agriculture. 
 11.4      Sec. 15.  Minnesota Statutes 2004, section 17B.03, 
 11.5   subdivision 1, is amended to read: 
 11.6      Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
 11.7   of agriculture shall exercise general supervision over the 
 11.8   inspection, grading, weighing, sampling, and analysis of grain 
 11.9   subject to the provisions of the United States Grain Standards 
 11.10  Act of 1976 and the rules promulgated thereunder by the United 
 11.11  States Department of Agriculture.  This activity may take place 
 11.12  within or outside the state of Minnesota.  Scale testing must be 
 11.13  performed at export locations or, upon request from and with the 
 11.14  consent of the delegated authority, at domestic locations.  Fees 
 11.15  for the testing of scales and weighing equipment shall be fixed 
 11.16  by the commissioner and must be uniform with those charged by 
 11.17  the Division of Weights and Measures of the Department of 
 11.18  Commerce. 
 11.19     Sec. 16.  Minnesota Statutes 2004, section 18B.08, 
 11.20  subdivision 4, is amended to read: 
 11.21     Subd. 4.  [APPLICATION FEE.] A person initially applying 
 11.22  for a chemigation permit must pay a nonrefundable application 
 11.23  fee of $50 $250.  A person who holds a fertilizer chemigation 
 11.24  permit under section 18C.205, is exempt from the fee in this 
 11.25  subdivision.  
 11.26     Sec. 17.  Minnesota Statutes 2004, section 18B.26, 
 11.27  subdivision 3, is amended to read: 
 11.28     Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
 11.29  annual application fee for each pesticide to be registered, and 
 11.30  this fee is set at one-tenth of one percent for calendar year 
 11.31  1990, at one-fifth of one percent for calendar year 1991, and at 
 11.32  two-fifths of one 0.4 percent for calendar year 1992 and 
 11.33  thereafter of annual gross sales within the state and annual 
 11.34  gross sales of pesticides used in the state, with a minimum 
 11.35  nonrefundable fee of $250.  The registrant shall determine when 
 11.36  and which pesticides are sold or used in this state.  The 
 12.1   registrant shall secure sufficient sales information of 
 12.2   pesticides distributed into this state from distributors and 
 12.3   dealers, regardless of distributor location, to make a 
 12.4   determination.  Sales of pesticides in this state and sales of 
 12.5   pesticides for use in this state by out-of-state distributors 
 12.6   are not exempt and must be included in the registrant's annual 
 12.7   report, as required under paragraph (c), and fees shall be paid 
 12.8   by the registrant based upon those reported sales.  Sales of 
 12.9   pesticides in the state for use outside of the state are exempt 
 12.10  from the application fee in this paragraph if the registrant 
 12.11  properly documents the sale location and distributors.  A 
 12.12  registrant paying more than the minimum fee shall pay the 
 12.13  balance due by March 1 based on the gross sales of the pesticide 
 12.14  by the registrant for the preceding calendar year.  The fee for 
 12.15  disinfectants and sanitizers shall be the minimum.  The minimum 
 12.16  fee is due by December 31 preceding the year for which the 
 12.17  application for registration is made.  The commissioner shall 
 12.18  spend at least $300,000 per fiscal year from the pesticide 
 12.19  regulatory account for the purposes of the waste pesticide 
 12.20  collection program. 
 12.21     (b) An additional fee of $100 must be paid by the applicant 
 12.22  for each pesticide to be registered if the application is a 
 12.23  renewal application that is submitted after December 31. 
 12.24     (c) A registrant must annually report to the commissioner 
 12.25  the amount and type of each registered pesticide sold, offered 
 12.26  for sale, or otherwise distributed in the state.  The report 
 12.27  shall be filed by March 1 for the previous year's registration.  
 12.28  The commissioner shall specify the form of the report and 
 12.29  require additional information deemed necessary to determine the 
 12.30  amount and type of pesticides annually distributed in the 
 12.31  state.  The information required shall include the brand name, 
 12.32  amount, and formulation of each pesticide sold, offered for 
 12.33  sale, or otherwise distributed in the state, but the information 
 12.34  collected, if made public, shall be reported in a manner which 
 12.35  does not identify a specific brand name in the report. 
 12.36     (d) A registrant who is required to pay more than the 
 13.1   minimum fee for any pesticide under paragraph (a) must pay a 
 13.2   late fee penalty of $100 for each pesticide application fee paid 
 13.3   after March 1 in the year for which the license is to be issued. 
 13.4      Sec. 18.  Minnesota Statutes 2004, section 18B.31, 
 13.5   subdivision 5, is amended to read: 
 13.6      Subd. 5.  [APPLICATION FEE.] (a) An application for a 
 13.7   pesticide dealer license must be accompanied by a nonrefundable 
 13.8   application fee of $50 $150. 
 13.9      (b) If an application for renewal of a pesticide dealer 
 13.10  license is not filed before January 1 of the year for which the 
 13.11  license is to be issued, an additional fee of $20 must be paid 
 13.12  by the applicant before the license is issued. 
 13.13     Sec. 19.  Minnesota Statutes 2004, section 18B.315, 
 13.14  subdivision 6, is amended to read: 
 13.15     Subd. 6.  [FEES.] (a) An applicant for an aquatic pest 
 13.16  control license for a business must pay a nonrefundable 
 13.17  application fee of $100 $200.  An employee of a licensed 
 13.18  business must pay a nonrefundable application fee of $50 for an 
 13.19  individual aquatic pest control license. 
 13.20     (b) An application received after expiration of the aquatic 
 13.21  pest control license is subject to a penalty of 50 percent of 
 13.22  the application fee. 
 13.23     (c) An applicant that meets renewal requirements by 
 13.24  reexamination instead of attending workshops must pay the 
 13.25  equivalent workshop fee for the reexamination as determined by 
 13.26  the commissioner. 
 13.27     Sec. 20.  Minnesota Statutes 2004, section 18B.32, 
 13.28  subdivision 6, is amended to read: 
 13.29     Subd. 6.  [FEES.] (a) An applicant for a structural pest 
 13.30  control license for a business must pay a nonrefundable 
 13.31  application fee of $100 $200.  An employee of a licensed 
 13.32  business must pay a nonrefundable application fee of $50 for an 
 13.33  individual structural pest control license.  
 13.34     (b) An application received after expiration of the 
 13.35  structural pest control license is subject to a penalty fee of 
 13.36  50 percent of the application fee. 
 14.1      (c) An applicant that meets renewal requirements by 
 14.2   reexamination instead of attending workshops must pay the 
 14.3   equivalent workshop fee for the reexamination as determined by 
 14.4   the commissioner. 
 14.5      Sec. 21.  Minnesota Statutes 2004, section 18B.33, 
 14.6   subdivision 7, is amended to read: 
 14.7      Subd. 7.  [APPLICATION FEES.] (a) A person initially 
 14.8   applying for or renewing a commercial applicator license must 
 14.9   pay a nonrefundable application fee of $50. 
 14.10     (b) If A license renewal application is not filed 
 14.11  before received after March 1 of in the year for which the 
 14.12  license is to be issued, an additional is subject to a penalty 
 14.13  fee of $10 must be paid before the commercial applicator 50 
 14.14  percent of the application fee.  The penalty fee must be paid 
 14.15  before the renewal license may be issued. 
 14.16     (c) An application for a duplicate commercial applicator 
 14.17  license must be accompanied by a nonrefundable application fee 
 14.18  of $10.  
 14.19     Sec. 22.  Minnesota Statutes 2004, section 18B.34, 
 14.20  subdivision 5, is amended to read: 
 14.21     Subd. 5.  [FEES.] (a) A person initially applying for or 
 14.22  renewing a noncommercial applicator license must pay a 
 14.23  nonrefundable application fee of $50, except an applicant who is 
 14.24  a government or a Minnesota Conservation Corps employee who uses 
 14.25  pesticides in the course of performing official duties must pay 
 14.26  a nonrefundable application fee of $10.  
 14.27     (b) If an A license renewal application for renewal of a 
 14.28  noncommercial license is not filed before received after March 1 
 14.29  in the year for which the license is to be issued, an additional 
 14.30  is subject to a penalty fee of $10 must be paid before the 50 
 14.31  percent of the application fee.  The penalty fee must be paid 
 14.32  before the renewal license may be issued.  
 14.33     (c) An application for a duplicate noncommercial applicator 
 14.34  license must be accompanied by a nonrefundable application fee 
 14.35  of $10.  
 14.36     Sec. 23.  Minnesota Statutes 2004, section 18C.141, 
 15.1   subdivision 1, is amended to read: 
 15.2      Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
 15.3   shall establish a program voluntary programs to certify the 
 15.4   accuracy of analyses from soil and manure testing laboratories 
 15.5   and promote standardization of soil and manure testing 
 15.6   procedures and analytical results.  
 15.7      Sec. 24.  Minnesota Statutes 2004, section 18C.141, 
 15.8   subdivision 3, is amended to read: 
 15.9      Subd. 3.  [ANALYSES REPORTING STANDARDS.] (a) The results 
 15.10  obtained from soil, manure, or plant analysis must be reported 
 15.11  in accordance with standard reporting units established by the 
 15.12  commissioner by rule.  The standard reporting units must conform 
 15.13  as far as practical to uniform standards that are adopted on a 
 15.14  regional or national basis. 
 15.15     (b) If a certified laboratory offers a recommendation for 
 15.16  use in Minnesota, the University of Minnesota recommendation or 
 15.17  that of another land grant college in a contiguous state must be 
 15.18  offered in addition to other recommendations, and the source of 
 15.19  the recommendation must be identified on the recommendation 
 15.20  form.  If relative levels such as low, medium, or high are 
 15.21  presented to classify the analytical results, the corresponding 
 15.22  relative levels based on the analysis as designated by the 
 15.23  University of Minnesota or the land grant college in a 
 15.24  contiguous state must also be presented. 
 15.25     Sec. 25.  Minnesota Statutes 2004, section 18C.141, 
 15.26  subdivision 5, is amended to read: 
 15.27     Subd. 5.  [CERTIFICATION FEES.] (a) The commissioner may 
 15.28  charge the actual costs for check sample preparation and 
 15.29  shipping. 
 15.30     (b) A laboratory applying for certification shall pay an 
 15.31  application fee of $100 and a certification fee of $100 before 
 15.32  the certification is issued may be charged a nonrefundable 
 15.33  certification fee to cover the actual costs for administration 
 15.34  of the program.  
 15.35     (b) (c) Certification is valid for one year and the renewal 
 15.36  fee is $100.  The commissioner shall charge an additional 
 16.1   application fee of $100 if a certified laboratory allows 
 16.2   certification to lapse before applying for renewed certification 
 16.3   renewable on an annual basis. 
 16.4      (c) The commissioner shall notify a certified lab that its 
 16.5   certification lapses within 30 to 60 days of the date when the 
 16.6   certification lapses. 
 16.7      (d) The commissioner may accept donations to support the 
 16.8   development and operation of soil and manure programs. 
 16.9      (e) Revenues under this section are deposited in the 
 16.10  fertilizer account of the agricultural fund. 
 16.11     Sec. 26.  Minnesota Statutes 2004, section 18C.425, 
 16.12  subdivision 6, is amended to read: 
 16.13     Subd. 6.  [INSPECTION FEES.] The person responsible for 
 16.14  payment of the inspection fees for fertilizers, soil amendments, 
 16.15  or plant amendments sold and used in this state must pay an 
 16.16  inspection fee of 15 30 cents per ton of fertilizer, soil 
 16.17  amendment, and plant amendment sold or distributed in this 
 16.18  state, with a minimum of $10 on all tonnage reports.  Products 
 16.19  sold or distributed to manufacturers or exchanged between them 
 16.20  are exempt from the inspection fee imposed by this subdivision 
 16.21  if the products are used exclusively for manufacturing purposes. 
 16.22     Sec. 27.  Minnesota Statutes 2004, section 18E.03, 
 16.23  subdivision 2, is amended to read: 
 16.24     Subd. 2.  [EXPENDITURES.] (a) Money in the agricultural 
 16.25  chemical response and reimbursement account may only be used: 
 16.26     (1) to pay for the commissioner's responses to incidents 
 16.27  under chapters 18B, 18C, and 18D that are not eligible for 
 16.28  payment under section 115B.20, subdivision 2; 
 16.29     (2) to pay for emergency responses that are otherwise 
 16.30  unable to be funded; 
 16.31     (3) to reimburse and pay corrective action costs under 
 16.32  section 18E.04; and 
 16.33     (4) by the board to reimburse the commissioner for board 
 16.34  staff and other administrative costs up to $175,000 $225,000 per 
 16.35  fiscal year. 
 16.36     (b) Money in the agricultural chemical response and 
 17.1   reimbursement account is appropriated to the commissioner to 
 17.2   make payments as provided in this subdivision. 
 17.3      Sec. 28.  Minnesota Statutes 2004, section 18G.03, 
 17.4   subdivision 1, is amended to read: 
 17.5      Subdivision 1.  [ENTRY AND INSPECTION.] (a) The 
 17.6   commissioner may enter and inspect a public or private place 
 17.7   that might harbor plant pests and may require that the owner 
 17.8   destroy or treat plant pests, plants, or other material. 
 17.9      (b) If the owner fails to properly comply with a directive 
 17.10  of the commissioner, the commissioner may have any necessary 
 17.11  work done at the owner's expense.  The commissioner shall notify 
 17.12  the owner of the deadline for paying those expenses.  If the 
 17.13  owner does not reimburse the commissioner for an expense within 
 17.14  a time specified by the commissioner, the expense is a charge 
 17.15  upon the county as provided in subdivision 4. 
 17.16     (c) If a dangerous harmful plant pest infestation or 
 17.17  infection threatens plants of an area in the state, the 
 17.18  commissioner may take any measures necessary to eliminate or 
 17.19  alleviate the danger potential significant damage or harm. 
 17.20     (d) The commissioner may collect fees required by this 
 17.21  chapter. 
 17.22     (e) The commissioner may issue and enforce a written or 
 17.23  printed "stop-sale" order orders, compliance agreements, and 
 17.24  other directives and requests to the owner or custodian of any 
 17.25  plants or articles infested or infected with dangerously 
 17.26  injurious a harmful plant pests pest. 
 17.27     Sec. 29.  Minnesota Statutes 2004, section 18G.10, 
 17.28  subdivision 5, is amended to read: 
 17.29     Subd. 5.  [CERTIFICATE FEES.] (a) The commissioner shall 
 17.30  assess the fees in paragraphs (b) to (f) for the inspection, 
 17.31  service, and work performed in carrying out the issuance of a 
 17.32  phytosanitary certificate or export certificate.  The inspection 
 17.33  fee must be based on mileage and inspection time. 
 17.34     (b) Mileage charge:  current United States Internal Revenue 
 17.35  Service mileage rate. 
 17.36     (c) Inspection time:  $50 per hour minimum or fee necessary 
 18.1   to cover department costs.  Inspection time includes the driving 
 18.2   time to and from the location in addition to the time spent 
 18.3   conducting the inspection. 
 18.4      (d) A fee must be charged for any certificate issued that 
 18.5   requires laboratory analysis before issuance.  The fee must be 
 18.6   deposited into the laboratory account as authorized in section 
 18.7   17.85. If laboratory analysis or other technical analysis is 
 18.8   required to issue a certificate, the commissioner must set and 
 18.9   collect the fee to recover this additional cost. 
 18.10     (e) Certificate fee for product value greater than $250:  
 18.11  $75 for each phytosanitary or export certificate issued for any 
 18.12  single shipment valued at more than $250 in addition to any 
 18.13  mileage or inspection time charges that are assessed. 
 18.14     (f) Certificate fee for product value less than $250:  $25 
 18.15  for each phytosanitary or export certificate issued for any 
 18.16  single shipment valued at less than $250 in addition to any 
 18.17  mileage or inspection time charges that are assessed. 
 18.18     (g) For services provided for in subdivision 7 that are 
 18.19  goods and services provided for the direct and primary use of a 
 18.20  private individual, business, or other entity, the commissioner 
 18.21  must set and collect the fees to cover the cost of the services 
 18.22  provided. 
 18.23     Sec. 30.  Minnesota Statutes 2004, section 18G.10, 
 18.24  subdivision 7, is amended to read: 
 18.25     Subd. 7.  [PLANT PROTECTION INSPECTIONS, SUPPLEMENTAL, 
 18.26  ADDITIONAL, OR OTHER CERTIFICATES, AND PERMITS, AND FEES.] (a) 
 18.27  The commissioner may provide inspection, sampling, or 
 18.28  certification services to ensure that Minnesota plant products 
 18.29  or commodities meet import requirements of other states or 
 18.30  countries. 
 18.31     (b) The state plant regulatory official may issue permits 
 18.32  and certificates verifying that various Minnesota agricultural 
 18.33  products or commodities meet specified phytosanitary plant 
 18.34  health requirements, treatment requirements, or pest absence 
 18.35  assurances based on determinations by the commissioner.  The 
 18.36  commissioner may collect fees sufficient to recover costs for 
 19.1   these permits or certificates.  The fees must be deposited in 
 19.2   the nursery and phytosanitary account. 
 19.3      Sec. 31.  Minnesota Statutes 2004, section 18H.02, is 
 19.4   amended by adding a subdivision to read: 
 19.5      Subd. 12a.  [INDIVIDUAL.] "Individual" means a human being. 
 19.6      Sec. 32.  Minnesota Statutes 2004, section 18H.02, 
 19.7   subdivision 21, is amended to read: 
 19.8      Subd. 21.  [NURSERY STOCK BROKER.] "Nursery stock broker" 
 19.9   means a nursery stock dealer engaged in the business of selling 
 19.10  or reselling certified nursery stock as a business transaction 
 19.11  without taking ownership or handling the nursery stock. 
 19.12     Sec. 33.  Minnesota Statutes 2004, section 18H.02, 
 19.13  subdivision 22, is amended to read: 
 19.14     Subd. 22.  [NURSERY STOCK DEALER.] "Nursery stock dealer" 
 19.15  means a person involved in the acquisition and further 
 19.16  distribution of certified nursery stock; the utilization of 
 19.17  certified nursery stock for landscaping or purchase of certified 
 19.18  nursery stock for other persons; or the distribution 
 19.19  of certified nursery stock with a mechanical digger, commonly 
 19.20  known as a tree spade, or by any other means.  A person who 
 19.21  purchases more than half of the certified nursery stock offered 
 19.22  for sale at a sales location during the current certificate year 
 19.23  is considered a nursery stock dealer rather than a nursery stock 
 19.24  grower for the purposes of determining a proper fee schedule.  
 19.25  Nursery stock brokers, landscapers, and tree spade operators are 
 19.26  considered nursery stock dealers for purposes of determining 
 19.27  proper certification. 
 19.28     Sec. 34.  Minnesota Statutes 2004, section 18H.02, 
 19.29  subdivision 23, is amended to read: 
 19.30     Subd. 23.  [NURSERY STOCK GROWER.] "Nursery stock grower" 
 19.31  includes, but is not limited to, a person who raises, grows, or 
 19.32  propagates nursery stock, outdoors or indoors.  A person who 
 19.33  grows more than half of the certified nursery stock offered for 
 19.34  sale at a sales location during the current certificate year is 
 19.35  considered a nursery stock grower for the purpose of determining 
 19.36  a proper fee schedule. 
 20.1      Sec. 35.  Minnesota Statutes 2004, section 18H.02, 
 20.2   subdivision 32, is amended to read: 
 20.3      Subd. 32.  [SALES LOCATION.] "Sales location" means a fixed 
 20.4   location from which certified nursery stock is displayed or 
 20.5   distributed. 
 20.6      Sec. 36.  Minnesota Statutes 2004, section 18H.02, 
 20.7   subdivision 34, is amended to read: 
 20.8      Subd. 34.  [TREE SPADE OPERATOR.] "Tree spade operator" 
 20.9   means a nursery stock dealer person who uses a tree spade to dig 
 20.10  nursery stock and sells, sell, offers offer for sale, 
 20.11  distributes distribute, and transports or transport certified 
 20.12  nursery stock. 
 20.13     Sec. 37.  Minnesota Statutes 2004, section 18H.05, is 
 20.14  amended to read: 
 20.15     18H.05 [NURSERY CERTIFICATE REQUIREMENTS.] 
 20.16     (a) No person may offer for sale or distribute certified 
 20.17  nursery stock as a nursery stock grower or dealer without first 
 20.18  obtaining the appropriate nursery stock certificate from the 
 20.19  commissioner.  The commissioner may not issue a certificate to a 
 20.20  person who does not sell certified nursery stock.  Certificates 
 20.21  are issued solely for these purposes and may not be used for 
 20.22  other purposes. 
 20.23     (b) A certificate issued by the commissioner expires on 
 20.24  December 31 of the year it is issued. 
 20.25     (c) A person required to be certified by this section must 
 20.26  apply for a certificate or for renewal on a form furnished by 
 20.27  the commissioner which must contain: 
 20.28     (1) the name and address of the applicant, the number of 
 20.29  locations to be operated by the applicant and their addresses, 
 20.30  and the assumed business name of the applicant; 
 20.31     (2) if other than an individual, a statement whether a 
 20.32  person is a partnership, corporation, or other organization; and 
 20.33     (3) the type of business to be operated and, if the 
 20.34  applicant is an agent, the principals the applicant represents; 
 20.35  and 
 20.36     (4) source or sources of purchased nursery stock. 
 21.1      (d) No person may:  
 21.2      (1) falsely claim to be a certified dealer, grower, broker, 
 21.3   or agent; or 
 21.4      (2) make willful false statements when applying for a 
 21.5   certificate; or 
 21.6      (3) sell or distribute certified nursery stock to an 
 21.7   uncertified nursery stock dealer or nursery stock grower. 
 21.8      (e) Each application for a certificate must be accompanied 
 21.9   by the appropriate certificate fee under section 18H.07. 
 21.10     (f) Certificates issued by the commissioner must be 
 21.11  prominently displayed to the public in the place of business 
 21.12  where certified nursery stock is sold or distributed. 
 21.13     (g) The commissioner may refuse to issue a certificate for 
 21.14  cause. 
 21.15     (h) Each grower or dealer is entitled to one sales location 
 21.16  under the certificate of the grower or dealer.  Each additional 
 21.17  sales location maintained by the person requires the payment of 
 21.18  the full certificate fee for each additional sales outlet. 
 21.19     (i) A grower who is also a dealer is certified only as a 
 21.20  grower for that specific site. 
 21.21     (j) A certificate is personal to the applicant and may not 
 21.22  be transferred.  A new certificate is necessary if the business 
 21.23  entity is changed or if the membership of a partnership is 
 21.24  changed, whether or not the business name is changed. 
 21.25     (k) The certificate issued to a dealer or grower applies to 
 21.26  the particular premises named in the certificate.  However, if 
 21.27  prior approval is obtained from the commissioner, the place of 
 21.28  business may be moved to the other premises or location without 
 21.29  an additional certificate fee. 
 21.30     (l) A collector of nursery stock from the wild is required 
 21.31  to obtain a dealer's certificate from the commissioner and is 
 21.32  subject to all the requirements that apply to the inspection of 
 21.33  nursery stock.  All collected nursery stock must be labeled as 
 21.34  "collected from the wild." 
 21.35     Sec. 38.  Minnesota Statutes 2004, section 18H.06, is 
 21.36  amended to read: 
 22.1      18H.06 [EXEMPT NURSERY SALES.] 
 22.2      Subdivision 1.  [NOT-FOR-PROFIT SALES.] An organization or 
 22.3   individual may offer for sale certified nursery stock and be 
 22.4   exempt from the requirement to obtain a nursery stock dealer 
 22.5   certificate if sales are conducted by a nonprofit charitable, 
 22.6   educational, or religious organization that: 
 22.7      (1) conducts sales or distributions of certified nursery 
 22.8   stock on 14 ten or fewer days in a calendar year; and 
 22.9      (2) uses the proceeds from its certified nursery stock 
 22.10  sales or distribution for charitable, educational, or religious 
 22.11  purposes. 
 22.12     Subd. 2.  [NURSERY HOBBYIST OCCASIONAL SALES.] (a) An 
 22.13  organization or individual may offer nursery stock for sale and 
 22.14  be exempt from the requirement to obtain a nursery stock dealer 
 22.15  certificate if: 
 22.16     (1) the gross sales of all nursery stock in a calendar year 
 22.17  do not exceed $2,000; 
 22.18     (2) all nursery stock sold or distributed by the hobbyist 
 22.19  individual is intended for planting in Minnesota; and 
 22.20     (3) all nursery stock purchased or procured for resale or 
 22.21  distribution was grown in Minnesota and has been certified by 
 22.22  the commissioner; and 
 22.23     (4) conducts sales or distributions of nursery stock on ten 
 22.24  or fewer days in a calendar year. 
 22.25     (b) The commissioner may prescribe the conditions of the 
 22.26  exempt nursery sales under this subdivision and may conduct 
 22.27  routine inspections of the nursery stock offered for sale. 
 22.28     Sec. 39.  Minnesota Statutes 2004, section 18H.07, 
 22.29  subdivision 1, is amended to read: 
 22.30     Subdivision 1.  [ESTABLISHMENT OF FEES.] The commissioner 
 22.31  shall establish fees sufficient to allow for the administration 
 22.32  and enforcement of this chapter and rules adopted under this 
 22.33  chapter, including the portion of general support costs and 
 22.34  statewide indirect costs of the agency attributable to that 
 22.35  function, with a reserve sufficient for up to six months.  The 
 22.36  commissioner shall review the fee schedule annually in 
 23.1   consultation with the Minnesota Nursery and Landscape Advisory 
 23.2   Committee.  For the certificate year beginning January 1, 2004 
 23.3   2006, the fees are as described in this section. 
 23.4      Sec. 40.  Minnesota Statutes 2004, section 18H.07, 
 23.5   subdivision 2, is amended to read: 
 23.6      Subd. 2.  [NURSERY STOCK GROWER CERTIFICATE.] (a) A nursery 
 23.7   stock grower must pay an annual fee based on the area of all 
 23.8   acreage on which nursery stock is grown for certification as 
 23.9   follows: 
 23.10     (1) less than one-half acre, $150; 
 23.11     (2) from one-half acre to two acres, $200; 
 23.12     (3) over two acres up to five acres, $300; 
 23.13     (4) over five acres up to ten acres, $350; 
 23.14     (5) over ten acres up to 20 acres, $500; 
 23.15     (6) over 20 acres up to 40 acres, $650; 
 23.16     (7) over 40 acres up to 50 acres, $800; 
 23.17     (8) over 50 acres up to 200 acres, $1,100; 
 23.18     (9) over 200 acres up to 500 acres, $1,500; and 
 23.19     (10) over 500 acres, $1,500 plus $2 for each additional 
 23.20  acre. 
 23.21     (b) In addition to the fees in paragraph (a), a penalty of 
 23.22  ten percent of the fee due must be charged for each month, or 
 23.23  portion thereof, that the fee is delinquent up to a maximum of 
 23.24  30 percent for any application for renewal not received by 
 23.25  January 1 of the year following expiration of a certificate. 
 23.26     Sec. 41.  Minnesota Statutes 2004, section 18H.07, 
 23.27  subdivision 3, is amended to read: 
 23.28     Subd. 3.  [NURSERY STOCK DEALER CERTIFICATE.] (a) A nursery 
 23.29  stock dealer must pay an annual fee based on the dealer's gross 
 23.30  sales of certified nursery stock per location during the 
 23.31  preceding most recent certificate year.  A certificate applicant 
 23.32  operating for the first time must pay the minimum fee.  The fees 
 23.33  per sales location are: 
 23.34     (1) gross sales up to $20,000 $5,000, $150; 
 23.35     (2) gross sales over $20,000 $5,000 up to $100,000 $20,000, 
 23.36  $175; 
 24.1      (3) gross sales over $100,000 $20,000 up to 
 24.2   $250,000 $50,000, $300; 
 24.3      (4) gross sales over $250,000 $50,000 up to 
 24.4   $500,000 $75,000, $425; 
 24.5      (5) gross sales over $500,000 $75,000 up to 
 24.6   $1,000,000 $100,000, $550; 
 24.7      (6) gross sales over $1,000,000 $100,000 up to 
 24.8   $2,000,000 $200,000, $675; and 
 24.9      (7) gross sales over $2,000,000 $200,000, $800. 
 24.10     (b) In addition to the fees in paragraph (a), a penalty of 
 24.11  ten percent of the fee due must be charged for each month, or 
 24.12  portion thereof, that the fee is delinquent up to a maximum of 
 24.13  30 percent for any application for renewal not received by 
 24.14  January 1 of the year following expiration of a certificate. 
 24.15     Sec. 42.  Minnesota Statutes 2004, section 18H.09, is 
 24.16  amended to read: 
 24.17     18H.09 [NURSERY INSPECTIONS REQUIRED STOCK CERTIFICATION 
 24.18  REQUIREMENTS.] 
 24.19     (a) All nursery stock growing at sites in Minnesota must 
 24.20  have had an identified by nursery stock growers and submitted 
 24.21  for inspection must be inspected by the commissioner during 
 24.22  within the previous 12 months prior to sale and found apparently 
 24.23  free from quarantine and regulated nonquarantine pests as well 
 24.24  as significantly dangerous or potentially damaging plant pests.  
 24.25  The commissioner may waive a site inspection under the following 
 24.26  conditions: 
 24.27     (1) the nursery stock is not going to be sold within 12 
 24.28  months; 
 24.29     (2) the nursery stock will not be moved out of Minnesota; 
 24.30  and 
 24.31     (3) the nursery site or stock is not subject to 
 24.32  certification requirements associated with a state or federally 
 24.33  regulated or quarantined plant pest. 
 24.34     All nursery stock originating from out of state and offered 
 24.35  for sale in Minnesota must have been inspected by the 
 24.36  appropriate state or federal agency during the previous 12 
 25.1   months and found free from quarantine and regulated 
 25.2   nonquarantine pests as well as significantly dangerous or 
 25.3   potentially damaging plant pests.  A nursery stock certificate 
 25.4   is valid from January 1 to December 31. 
 25.5      (b) Nursery stock must be accessible to the commissioner 
 25.6   for inspection during regular business hours.  Weeds or other 
 25.7   growth that hinder a proper inspection are grounds to suspend or 
 25.8   withhold a certificate or require a reinspection. 
 25.9      (c) Inspection reports issued to growers must contain a 
 25.10  list of the plant pests found at the time of inspection.  
 25.11  Withdrawal-from-distribution orders are considered part of the 
 25.12  inspection reports.  A withdrawal-from-distribution order must 
 25.13  contain a list of plants withdrawn from distribution and the 
 25.14  location of the plants. 
 25.15     (d) The commissioner may post signs to delineate sections 
 25.16  withdrawn from distribution.  These signs must remain in place 
 25.17  until the commissioner removes them or grants written permission 
 25.18  to the grower to remove the signs. 
 25.19     (e) Inspection reports issued to dealers must outline the 
 25.20  violations involved and corrective actions to be taken including 
 25.21  withdrawal-from-distribution orders which would specify nursery 
 25.22  stock that could not be distributed from a certain area. 
 25.23     (f) Optional inspections of plants may be conducted by the 
 25.24  commissioner upon request by any persons desiring an 
 25.25  inspection.  A fee as provided in section 18H.07 must be charged 
 25.26  for such an inspection. 
 25.27     Sec. 43.  Minnesota Statutes 2004, section 18H.13, 
 25.28  subdivision 1, is amended to read: 
 25.29     Subdivision 1.  [LABELING IDENTIFICATION OF 
 25.30  ORIGIN.] Plants, plant materials, or nursery stock distributed 
 25.31  into Minnesota must be conspicuously labeled on the exterior 
 25.32  with the name of the consignor, the state of origin, and the 
 25.33  name of the consignee and must be accompanied by certification 
 25.34  documents to satisfy all applicable state and federal 
 25.35  quarantines.  Proof of valid nursery certification and origin of 
 25.36  all nursery stock must also accompany the shipment.  It is the 
 26.1   shared responsibility of both the consignee and consignor to 
 26.2   examine all shipments for the presence of current and applicable 
 26.3   nursery stock certifications for all plant material from all 
 26.4   sources of stock in each shipment. 
 26.5      Sec. 44.  Minnesota Statutes 2004, section 18H.15, is 
 26.6   amended to read: 
 26.7      18H.15 [VIOLATIONS.] 
 26.8      (a) A person who offers to distribute nursery stock that is 
 26.9   uncertified, uninspected, or falsely labeled or advertised 
 26.10  possesses an illegal regulated commodity that is considered 
 26.11  infested or infected with harmful plant pests and subject to 
 26.12  regulatory action and control.  If the commissioner determines 
 26.13  that the provisions of this section have been violated, the 
 26.14  commissioner may order the destruction of all of the plants 
 26.15  unless the person: 
 26.16     (1) provides proper phytosanitary preclearance, 
 26.17  phytosanitary certification, or nursery stock certification; 
 26.18     (2) agrees to have the plants, plant materials, or nursery 
 26.19  stock returned to the consignor; and 
 26.20     (3) provides proper documentation, certification, or 
 26.21  compliance to support advertising claims. 
 26.22     (b) The plant owner is liable for all costs associated with 
 26.23  a withdrawal-from-distribution order or the quarantine, 
 26.24  treatment, or destruction of plants.  The commissioner is not 
 26.25  liable for actual or incidental costs incurred by a person due 
 26.26  to the commissioner's actions.  The commissioner must be 
 26.27  reimbursed by the owner of the plants for the actual expenses 
 26.28  incurred in carrying out a withdrawal-from-distribution order or 
 26.29  the quarantine, treatment, or destruction of any plants. 
 26.30     (c) It is unlawful for a person to: 
 26.31     (1) misrepresent, falsify, or knowingly distribute, sell, 
 26.32  advertise, or display damaged, mislabeled, misrepresented, 
 26.33  infested, or infected nursery stock; 
 26.34     (2) fail to obtain a nursery certificate as required by the 
 26.35  commissioner; 
 26.36     (3) fail to renew a nursery certificate, but continue 
 27.1   business operations; 
 27.2      (4) fail to display a nursery certificate; 
 27.3      (5) misrepresent or falsify a nursery certificate; 
 27.4      (6) refuse to submit to a nursery inspection; 
 27.5      (7) fail to provide the cooperation necessary to conduct a 
 27.6   successful nursery inspection; 
 27.7      (8) offer for sale uncertified plants, plant materials, or 
 27.8   nursery stock; 
 27.9      (9) possess an illegal regulated commodity; 
 27.10     (10) violate or disobey a commissioner's order; 
 27.11     (11) violate a quarantine issued by the commissioner; 
 27.12     (12) fail to obtain phytosanitary certification for plant 
 27.13  material or nursery stock brought into Minnesota; 
 27.14     (13) deface, mutilate, or destroy a nursery stock 
 27.15  certificate, phytosanitary certificate, or phytosanitary 
 27.16  preclearance certificate, or other commissioner mark, permit, or 
 27.17  certificate; 
 27.18     (14) fail to notify the commissioner of an uncertified 
 27.19  shipment of plants, plant materials, or nursery stock; or 
 27.20     (15) transport uncertified plants, plant materials, or 
 27.21  nursery stock in Minnesota; or 
 27.22     (16) sell nursery stock to an uncertified nursery stock 
 27.23  dealer. 
 27.24     Sec. 45.  Minnesota Statutes 2004, section 18H.18, 
 27.25  subdivision 1, is amended to read: 
 27.26     Subdivision 1.  [RESTRICTIONS ON COLLECTING.] No person 
 27.27  shall distribute the state flower (Cypripedium reginae), or any 
 27.28  species of lady slipper (Cypripedieae) orchids 
 27.29  (Orchidaceae), any member of the orchid family, any gentian 
 27.30  (Gentiana), arbutus (Epigaea repens), lilies (Lilium species), 
 27.31  coneflowers (Echinacea species), bloodroot (Sanguinaria 
 27.32  canadensis), mayapple (Podophyllum peltatutum), any species of 
 27.33  trillium (Trillium species), or lotus (Nelumbo lutea), which 
 27.34  have been collected in any manner from any public or private 
 27.35  property without the written permission of the property owner 
 27.36  and written authorization from the commissioner. 
 28.1      Sec. 46.  Minnesota Statutes 2004, section 19.64, 
 28.2   subdivision 1, is amended to read: 
 28.3      Subdivision 1.  [REGISTRATION.] Every person who owns, 
 28.4   leases, or possesses colonies of bees or who intends to bring 
 28.5   bees into the state under an entry permit shall register the 
 28.6   bees with the commissioner on or before April 15 June 1 of each 
 28.7   year or within 15 days of entry into Minnesota or taking 
 28.8   possession of hives, whichever comes first.  The registration 
 28.9   application shall include the name and address of the applicant, 
 28.10  a description of the exact location of each of the applicant's 
 28.11  apiaries by county, township, range and quarter section, and 
 28.12  other information required by the commissioner.  The fee for 
 28.13  registration under this subdivision is $10 $25 for beekeepers 
 28.14  with fewer than 50 colonies and $50 for beekeepers with 50 or 
 28.15  more colonies maintained in the state.  The commissioner shall 
 28.16  provide registered beekeepers with the Minnesota pest report.  
 28.17  The registration required by this section is not transferable.  
 28.18  At least one colony in each location must be plainly and legibly 
 28.19  marked with the owner's name and telephone number and address, 
 28.20  and other information required by the commissioner.  The 
 28.21  department shall provide information on colony locations as 
 28.22  reported on the registrations on an Internet Web site or through 
 28.23  other appropriate measures. 
 28.24     Sec. 47.  Minnesota Statutes 2004, section 25.341, 
 28.25  subdivision 2, is amended to read: 
 28.26     Subd. 2.  [APPLICATION; FEE; TERM.] A person who is 
 28.27  required to have a commercial feed license shall submit an 
 28.28  application on a form provided or approved by the commissioner 
 28.29  accompanied by a license fee of $25 paid to the commissioner for 
 28.30  each facility location.  A license is not transferable from one 
 28.31  person to another, from one ownership to another, or from one 
 28.32  location to another.  The license year is the calendar year.  A 
 28.33  license expires on December 31 of the year for which it is 
 28.34  issued, except that a license is valid through January 31 of the 
 28.35  next year or until the issuance of the renewal license, 
 28.36  whichever comes first, if the licensee has filed a renewal 
 29.1   application with the commissioner on or before December 31 of 
 29.2   the year for which the current license was issued.  A new 
 29.3   applicant who Any person who is required to have, but fails to 
 29.4   obtain a license within 15 working days of notification of the 
 29.5   requirement to obtain a license, or a licensee who fails to 
 29.6   comply with license renewal requirements, shall pay a $50 late 
 29.7   fee in addition to the license fee.  The commissioner may issue 
 29.8   a withdrawal from distribution order on any commercial feed that 
 29.9   an unlicensed person produces or distributes in the state until 
 29.10  a license is issued.  
 29.11     Sec. 48.  [25.342] [CERTIFICATES, FREE SALE.] 
 29.12     A nonrefundable application fee of $25 must accompany all 
 29.13  free sale certificate requests to facilitate the movement of 
 29.14  Minnesota processed and manufactured feeds destined for export 
 29.15  from the state.  Each label submitted for review must be 
 29.16  accompanied by a nonrefundable $50 application fee. 
 29.17     Sec. 49.  Minnesota Statutes 2004, section 25.39, 
 29.18  subdivision 1, is amended to read: 
 29.19     Subdivision 1.  [AMOUNT OF FEE.] (a) An inspection fee at 
 29.20  the rate of 16 cents per ton must be paid to the commissioner on 
 29.21  commercial feeds distributed in this state by the person who 
 29.22  first distributes the commercial feed, except that: 
 29.23     (1) no fee needs to need be paid on: 
 29.24     (1) (i) a commercial feed if the payment has been made by a 
 29.25  previous distributor; or 
 29.26     (2) (ii) customer formula feeds if the inspection fee is 
 29.27  paid on the commercial feeds which are used as ingredients; or 
 29.28     (3) commercial feeds used as ingredients for the 
 29.29  manufacture of commercial feeds if the fee has been paid by a 
 29.30  previous distributor.  If the fee has already been paid, credit 
 29.31  must be given for that payment. (2) a Minnesota feed distributor 
 29.32  who distributes can substantiate that greater than 50 percent of 
 29.33  the distribution of commercial feed is to purchasers outside the 
 29.34  state may purchase commercial feeds, without payment by any 
 29.35  person of the inspection fee required on those purchases, under 
 29.36  a tonnage fee exemption permit issued by the commissioner.  Such 
 30.1   location specific permits shall only be issued on a calendar 
 30.2   year basis to commercial feed distributors who submit a $100 
 30.3   nonrefundable application fee and comply with rules adopted by 
 30.4   the commissioner relative to record keeping, tonnage of 
 30.5   commercial feed distributed in Minnesota, total of all 
 30.6   commercial feed tonnage distributed, and all other information 
 30.7   which the commissioner may require so as to ensure that proper 
 30.8   inspection fee payment has been made.  
 30.9      (b) In the case of pet food distributed in the state only 
 30.10  in packages of ten pounds or less, a listing of each product and 
 30.11  a current label for each product must be submitted annually on 
 30.12  forms provided by the commissioner and accompanied by an annual 
 30.13  fee of $50 for each product in lieu of the inspection fee.  This 
 30.14  annual fee is due by July 1.  The inspection fee required by 
 30.15  paragraph (a) applies to pet food distributed in packages 
 30.16  exceeding ten pounds. 
 30.17     (c) In the case of specialty pet food distributed in the 
 30.18  state only in packages of ten pounds or less, a listing of each 
 30.19  product and a current label for each product must be submitted 
 30.20  annually on forms provided by the commissioner and accompanied 
 30.21  by an annual fee of $25 for each product in lieu of the 
 30.22  inspection fee.  This annual fee is due by July 1.  The 
 30.23  inspection fee required by paragraph (a) applies to specialty 
 30.24  pet food distributed in packages exceeding ten pounds.  
 30.25     (d) The minimum inspection fee is $10 per annual reporting 
 30.26  period. 
 30.27     Sec. 50.  Minnesota Statutes 2004, section 25.39, 
 30.28  subdivision 4, is amended to read: 
 30.29     Subd. 4.  [COMMERCIAL FEED INSPECTION ACCOUNT.] A 
 30.30  commercial feed inspection account is established in the 
 30.31  agricultural fund.  Fees and penalties collected under sections 
 30.32  25.35 to 25.43 this chapter and interest attributable to money 
 30.33  in the account must be deposited in the agricultural fund and 
 30.34  credited to the commercial feed inspection account.  Money in 
 30.35  the account, including interest earned, is appropriated to the 
 30.36  commissioner for the administration and enforcement of sections 
 31.1   25.341 to 25.43 this chapter. 
 31.2      Sec. 51.  Minnesota Statutes 2004, section 31.94, is 
 31.3   amended to read: 
 31.4      31.94 [COMMISSIONER DUTIES.] 
 31.5      (a) In order to promote opportunities for organic 
 31.6   agriculture in Minnesota, the commissioner shall: 
 31.7      (1) survey producers and support services and organizations 
 31.8   to determine information and research needs in the area of 
 31.9   organic agriculture practices; 
 31.10     (2) work with the University of Minnesota to demonstrate 
 31.11  the on-farm applicability of organic agriculture practices to 
 31.12  conditions in this state; 
 31.13     (3) direct the programs of the department so as to work 
 31.14  toward the promotion of organic agriculture in this state; 
 31.15     (4) inform agencies of how state or federal programs could 
 31.16  utilize and support organic agriculture practices; and 
 31.17     (5) work closely with producers, the University of 
 31.18  Minnesota, the Minnesota Trade Office, and other appropriate 
 31.19  organizations to identify opportunities and needs as well as 
 31.20  ensure coordination and avoid duplication of state agency 
 31.21  efforts regarding research, teaching, marketing, and extension 
 31.22  work relating to organic agriculture. 
 31.23     (b) By November 15 of each even-numbered year the 
 31.24  commissioner, in conjunction with the task force created in 
 31.25  paragraph (c), shall report on the status of organic agriculture 
 31.26  in Minnesota to the legislative policy and finance committees 
 31.27  and divisions with jurisdiction over agriculture.  The report 
 31.28  must include: 
 31.29     (1) a description of current state or federal programs 
 31.30  directed toward organic agriculture, including significant 
 31.31  results and experiences of those programs; 
 31.32     (2) a description of specific actions the department of 
 31.33  agriculture is taking in the area of organic agriculture, 
 31.34  including the proportion of the department's budget spent on 
 31.35  organic agriculture; 
 31.36     (3) a description of current and future research needs at 
 32.1   all levels in the area of organic agriculture; 
 32.2      (4) suggestions for changes in existing programs or 
 32.3   policies or enactment of new programs or policies that will 
 32.4   affect organic agriculture; 
 32.5      (5) a description of market trends and potential for 
 32.6   organic products; 
 32.7      (6) available information, using currently reliable data, 
 32.8   on the price received, yield, and profitability of organic 
 32.9   farms, and a comparison with data on conventional farms; and 
 32.10     (7) available information, using currently reliable data, 
 32.11  on the positive and negative impacts of organic production on 
 32.12  the environment and human health. 
 32.13     (c) The commissioner shall appoint a Minnesota Organic 
 32.14  Advisory Task Force to advise the commissioner on policies and 
 32.15  practices to improve organic agriculture in Minnesota.  The task 
 32.16  force must consist of the following residents of the state: 
 32.17     (1) three farmers using organic agriculture methods; 
 32.18     (2) two organic food wholesalers, retailers, or 
 32.19  distributors; 
 32.20     (3) one representative of organic food certification 
 32.21  agencies; 
 32.22     (4) two organic food processors; 
 32.23     (5) one representative from the Minnesota Extension 
 32.24  Service; 
 32.25     (6) one representative from a Minnesota postsecondary 
 32.26  research institution; 
 32.27     (7) one representative from a nonprofit organization 
 32.28  representing producers; 
 32.29     (8) one at-large member; 
 32.30     (9) one representative from the United States Department of 
 32.31  Agriculture; and 
 32.32     (10) one organic consumer representative. 
 32.33  Terms, compensation, and removal of members are governed by 
 32.34  section 15.059, subdivision 6.  The task force must meet at 
 32.35  least twice each year and expires on June 30, 2005 2007. 
 32.36     (d) For the purposes of expanding, improving, and 
 33.1   developing production and marketing of the organic products of 
 33.2   Minnesota agriculture, the commissioner may receive funds from 
 33.3   state and federal sources and spend them, including through 
 33.4   grants or contracts, to assist producers and processors to 
 33.5   achieve certification, to conduct education or marketing 
 33.6   activities, to enter into research and development partnerships, 
 33.7   or to address production or marketing obstacles to the growth 
 33.8   and well-being of the industry. 
 33.9      (e) The commissioner may facilitate the registration of 
 33.10  state organic production and handling operations including those 
 33.11  exempt from organic certification according to Code of Federal 
 33.12  Regulations, title 7, section 205.101, and certification agents 
 33.13  operating within the state. 
 33.14     [EFFECTIVE DATE.] This section is effective the day 
 33.15  following final enactment. 
 33.16     Sec. 52.  Minnesota Statutes 2004, section 35.02, 
 33.17  subdivision 1, is amended to read: 
 33.18     Subdivision 1.  [MEMBERS; OFFICERS.] The board has five 
 33.19  members appointed by the governor with the advice and consent of 
 33.20  the senate, three of whom are producers of livestock in the 
 33.21  state, and two of whom are practicing veterinarians licensed in 
 33.22  Minnesota.  The dean of the College of Veterinary Medicine and 
 33.23  the director of the Veterinary Diagnostic Laboratory of the 
 33.24  University of Minnesota may serve as consultant consultants to 
 33.25  the board without vote.  Appointments to fill unexpired terms 
 33.26  must be made from the classes to which the retiring members 
 33.27  belong.  The board shall elect a president and a vice-president 
 33.28  from among its members and a veterinarian licensed in Minnesota 
 33.29  who is not a member to be its executive director for a term of 
 33.30  one year and until a successor qualifies.  The board shall set 
 33.31  the duties of the director. 
 33.32     [EFFECTIVE DATE.] This section is effective the day 
 33.33  following final enactment. 
 33.34     Sec. 53.  Minnesota Statutes 2004, section 35.03, is 
 33.35  amended to read: 
 33.36     35.03 [POWERS, DUTIES, AND REPORTS.] 
 34.1      The board shall protect the health of Minnesota domestic 
 34.2   animals and carry out the provisions of this chapter.  The board 
 34.3   shall make rules necessary to protect the health of domestic 
 34.4   animals.  The board shall meet at least quarterly.  Officers 
 34.5   must be elected each April.  On or before November 1 of each 
 34.6   year the board shall publish an annual report.  The University 
 34.7   of Minnesota Veterinary Diagnostic Laboratory is the official 
 34.8   laboratory for the board.  At least quarterly, the director of 
 34.9   the Veterinary Diagnostic Laboratory must report on the 
 34.10  laboratory's activities. 
 34.11     [EFFECTIVE DATE.] This section is effective the day 
 34.12  following final enactment. 
 34.13     Sec. 54.  Minnesota Statutes 2004, section 35.05, is 
 34.14  amended to read: 
 34.15     35.05 [AUTHORITY OF STATE BOARD.] 
 34.16     (a) The state board may quarantine or kill any domestic 
 34.17  animal infected with, or which has been exposed to, a contagious 
 34.18  or infectious dangerous disease if it is necessary to protect 
 34.19  the health of the domestic animals of the state.  
 34.20     (b) The board may regulate or prohibit the arrival in and 
 34.21  departure from the state of infected or exposed animals and, in 
 34.22  case of violation of any rule or prohibition, may detain any 
 34.23  animal at its owner's expense.  The board may regulate or 
 34.24  prohibit the importation of domestic animals which, in its 
 34.25  opinion, may injure the health of Minnesota livestock.  
 34.26     (c) When the governor declares an emergency under section 
 34.27  35.0661, the board, through its executive director, may 
 34.28  implement the United States Voluntary Johne's Disease Herd 
 34.29  Status Program for Cattle assume control of such resources 
 34.30  within the University of Minnesota's Veterinary Diagnostic 
 34.31  Laboratory as necessary to effectively address the disease 
 34.32  outbreak.  The director of the laboratory and other laboratory 
 34.33  personnel must cooperate fully in performing necessary functions 
 34.34  related to the outbreak or threatened outbreak. 
 34.35     (d) Rules adopted by the board under authority of this 
 34.36  chapter must be published in the State Register. 
 35.1      [EFFECTIVE DATE.] This section is effective the day 
 35.2   following final enactment. 
 35.3      Sec. 55.  [35.153] [DEFINITIONS.] 
 35.4      Subdivision 1.  [APPLICABILITY.] The definitions in this 
 35.5   section apply to section 17.452, this section, and section 
 35.6   35.155.  
 35.7      Subd. 2.  [CERVIDAE.] "Cervidae" means animals that are 
 35.8   members of the family Cervidae and includes, but is not limited 
 35.9   to, white-tailed deer, mule deer, red deer, elk, moose, caribou, 
 35.10  reindeer, and muntjac. 
 35.11     Subd. 3.  [FARMED CERVIDAE.] "Farmed cervidae" means 
 35.12  cervidae that are: 
 35.13     (1) raised for any purpose; and 
 35.14     (2) registered in a manner approved by the Board of Animal 
 35.15  Health. 
 35.16     Subd. 4.  [OWNER.] "Owner" means a person who owns or is 
 35.17  responsible for the raising of farmed cervidae. 
 35.18     Subd. 5.  [HERD.] "Herd" means all cervidae: 
 35.19     (1) maintained on common ground for any purpose; or 
 35.20     (2) under common ownership or supervision, geographically 
 35.21  separated, but that have an interchange or movement of animals 
 35.22  without regard to whether the animals are infected with or 
 35.23  exposed to diseases. 
 35.24     [EFFECTIVE DATE.] This section is effective the day 
 35.25  following final enactment. 
 35.26     Sec. 56.  Minnesota Statutes 2004, section 35.155, is 
 35.27  amended to read: 
 35.28     35.155 [FARMED CERVIDAE.] 
 35.29     Subdivision 1.  [RUNNING AT LARGE PROHIBITED.] (a) An owner 
 35.30  may not allow farmed cervidae to run at large.  The owner must 
 35.31  make all reasonable efforts to return escaped farmed cervidae to 
 35.32  their enclosures as soon as possible.  The owner must notify the 
 35.33  commissioner of natural resources of the escape of farmed 
 35.34  cervidae if the farmed cervidae are not returned or captured by 
 35.35  the owner within 24 hours of their escape. 
 35.36     (b) An owner is liable for expenses of another person in 
 36.1   capturing, caring for, and returning farmed cervidae that have 
 36.2   left their enclosures if the person capturing the farmed 
 36.3   cervidae contacts the owner as soon as possible. 
 36.4      (c) If an owner is unwilling or unable to capture escaped 
 36.5   farmed cervidae, the commissioner of natural resources may 
 36.6   destroy the escaped farmed cervidae.  The commissioner of 
 36.7   natural resources must allow the owner to attempt to capture the 
 36.8   escaped farmed cervidae prior to destroying the farmed 
 36.9   cervidae.  Farmed cervidae that are not captured by 24 hours 
 36.10  after escape may be destroyed. 
 36.11     Subd. 2.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An owner 
 36.12  or an employee or agent under the direction of the owner must 
 36.13  destroy wild cervidae found within the owner's farmed cervidae 
 36.14  confinement area.  The owner, employee, or agent must report the 
 36.15  wild cervidae destroyed to a conservation officer or an employee 
 36.16  of the Department of Natural Resources, Division of Wildlife, 
 36.17  within 24 hours.  The wild cervidae must be disposed of as 
 36.18  prescribed by the commissioner of natural resources. 
 36.19     Subd. 3.  [FARMING IN NATIVE ELK AREA.] A person may not 
 36.20  raise farmed red deer in the native elk area without written 
 36.21  approval of the commissioner of natural resources.  The native 
 36.22  elk area is the area north of U.S. Highway 2 and west of U.S. 
 36.23  Highway 71 and trunk highway 72.  The commissioner of natural 
 36.24  resources shall review the proposed farming operation and 
 36.25  approve with any condition or deny approval based on risks to 
 36.26  the native elk population. 
 36.27     Subd. 4.  [FENCING.] Farmed cervidae must be confined in a 
 36.28  manner designed to prevent escape.  All perimeter fences for 
 36.29  farmed cervidae must be at least 96 inches in height and be 
 36.30  constructed and maintained in a way that prevents the escape of 
 36.31  farmed cervidae or entry into the premises by free-roaming 
 36.32  cervidae. 
 36.33     Subd. 5.  [DISEASE CONTROL PROGRAMS.] Farmed cervidae are 
 36.34  subject to this chapter and the rules of the Board of Animal 
 36.35  Health in the same manner as other livestock and domestic 
 36.36  animals, including provisions related to importation and 
 37.1   transportation. 
 37.2      Subd. 6.  [IDENTIFICATION.] (a) Farmed cervidae must be 
 37.3   identified by means approved by the Board of Animal Health.  The 
 37.4   identification must be visible to the naked eye during daylight 
 37.5   under normal conditions at a distance of 50 yards.  Newborn 
 37.6   animals must be identified before December 31 of the year in 
 37.7   which the animal is born or before movement from the premises, 
 37.8   whichever occurs first. 
 37.9      (b) The Board of Animal Health shall register farmed 
 37.10  cervidae.  The owner must submit the registration request on 
 37.11  forms provided by the board.  The forms must include sales 
 37.12  receipts or other documentation of the origin of the cervidae.  
 37.13  The board shall provide copies of the registration information 
 37.14  to the commissioner of natural resources upon request.  The 
 37.15  owner must keep written records of the acquisition and 
 37.16  disposition of registered farmed cervidae. 
 37.17     Subd. 7.  [INSPECTION.] The commissioner of agriculture and 
 37.18  the Board of Animal Health may inspect farmed cervidae, farmed 
 37.19  cervidae facilities, and farmed cervidae records.  For each 
 37.20  herd, the owner or owners must, on or before January 1, pay an 
 37.21  annual inspection fee equal to $10 for each cervid in the herd 
 37.22  as reflected in the most recent inventory submitted to the Board 
 37.23  of Animal Health, up to a maximum fee of $100.  The commissioner 
 37.24  of natural resources may inspect farmed cervidae, farmed 
 37.25  cervidae facilities, and farmed cervidae records with reasonable 
 37.26  suspicion that laws protecting native wild animals have been 
 37.27  violated and must notify the owner in writing at the time of the 
 37.28  inspection of the reason for the inspection and must inform the 
 37.29  owner in writing after the inspection of whether (1) the cause 
 37.30  of the inspection was unfounded; or (2) there will be an ongoing 
 37.31  investigation or continuing evaluation. 
 37.32     Subd. 8.  [CERVIDAE INSPECTION ACCOUNT.] A cervidae 
 37.33  inspection account is established in the state treasury.  The 
 37.34  fees collected under this section and interest attributable to 
 37.35  money in the account must be deposited in the state treasury and 
 37.36  credited to the cervidae inspection account in the special 
 38.1   revenue fund.  Money in the account, including interest earned, 
 38.2   is appropriated to the Board of Animal Health for the 
 38.3   administration and enforcement of this section. 
 38.4      Subd. 9.  [CONTESTED CASE HEARING.] A person raising farmed 
 38.5   cervidae that is aggrieved with any decision regarding the 
 38.6   farmed cervidae may request a contested case hearing under 
 38.7   chapter 14. 
 38.8      Subd. 10.  [MANDATORY REGISTRATION.] A person may not 
 38.9   possess live cervidae in Minnesota unless the person is 
 38.10  registered with the Board of Animal Health and meets all the 
 38.11  requirements for farmed cervidae under this section.  Cervidae 
 38.12  possessed in violation of this subdivision may be seized and 
 38.13  destroyed by the commissioner of natural resources. 
 38.14     Subd. 11.  [MANDATORY SURVEILLANCE FOR CHRONIC WASTING 
 38.15  DISEASE.] (a) An inventory for each farmed cervidae herd must be 
 38.16  verified by an accredited veterinarian and filed with the Board 
 38.17  of Animal Health every 12 months. 
 38.18     (b) Movement of farmed cervidae from any premises to 
 38.19  another location must be reported to the Board of Animal Health 
 38.20  within 14 days of the movement on forms approved by the Board of 
 38.21  Animal Health. 
 38.22     (c) All animals from farmed cervidae herds that are over 16 
 38.23  months of age that die or are slaughtered must be tested for 
 38.24  chronic wasting disease. 
 38.25     Subd. 12.  [IMPORTATION.] A person must not import cervidae 
 38.26  into the state from a herd that is infected or exposed to 
 38.27  chronic wasting disease or from a known chronic wasting disease 
 38.28  endemic area, as determined by the board.  A person may import 
 38.29  cervidae into the state only from a herd that is not in a known 
 38.30  chronic wasting disease endemic area, as determined by the 
 38.31  board, and the herd has been subject to a state or provincial 
 38.32  approved chronic wasting disease monitoring program for at least 
 38.33  three years.  Cervidae imported in violation of this section may 
 38.34  be seized and destroyed by the commissioner of natural resources.
 38.35     Subd. 13.  [RULES.] The Board of Animal Health shall adopt 
 38.36  rules as necessary to implement this section and to otherwise 
 39.1   provide for the control of cervidae diseases. 
 39.2      [EFFECTIVE DATE.] This section is effective the day 
 39.3   following final enactment. 
 39.4      Sec. 57.  Minnesota Statutes 2004, section 38.01, is 
 39.5   amended to read: 
 39.6      38.01 [COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.] 
 39.7      (a) An agricultural society or association may be 
 39.8   incorporated by citizens of any county, or two or more counties 
 39.9   jointly, but only one agricultural society shall be organized in 
 39.10  any county.  An agricultural society may sue and be sued in its 
 39.11  corporate name; may adopt bylaws, rules, and regulations, alter 
 39.12  and amend the same; may purchase and hold, lease and control any 
 39.13  real or personal property deemed to promote the objects of the 
 39.14  society, and may rent, lease, sell, and convey the same.  Any 
 39.15  income from the rental or lease of such the property may be used 
 39.16  for any or all of the following purposes:  (1) Acquisition of 
 39.17  additional real property; (2) Construction of additional 
 39.18  buildings; or (3) Maintenance and care of the society's 
 39.19  property.  This section shall not be construed to preclude the 
 39.20  continuance of any agricultural society now existing or the 
 39.21  granting of aid thereto to the society. 
 39.22     (b) An agricultural society shall have jurisdiction and 
 39.23  control of the grounds upon which its fairs are held and of the 
 39.24  streets and grounds adjacent thereto grounds during such the 
 39.25  fair, so far as may be necessary for such purpose fair purposes, 
 39.26  and are exempt from local zoning ordinances throughout the year 
 39.27  as provided in section 38.16.  At or before the time of holding 
 39.28  any fair, the agricultural society may appoint, in writing, as 
 39.29  many persons to act as special constables peace officers as 
 39.30  necessary, for and during the time of holding the same and for a 
 39.31  reasonable time prior and subsequent thereto to the fair.  These 
 39.32  constables peace officers, before entering upon their duties, 
 39.33  shall take and subscribe the usual oath of office, endorsed upon 
 39.34  their appointment, and have and exercise upon the grounds of the 
 39.35  society, and within one-half mile thereof of the grounds, all 
 39.36  the power and authority of constables at common law full powers 
 40.1   of arrest and, in addition thereto, may, within these limits, 
 40.2   without warrant, arrest any person found violating any laws of 
 40.3   the state, or any rule, regulation, or bylaw of the society, and 
 40.4   summarily remove the persons and property of such the offenders 
 40.5   from the grounds and take them before any court of competent 
 40.6   jurisdiction to be dealt with according to law.  Each such 
 40.7   appointed peace officer shall wear an appropriate badge of 
 40.8   office while acting as such one.  
 40.9      (c) As an alternative to the appointment of special 
 40.10  constables peace officers, the society may contract with the 
 40.11  sheriff or local municipality to provide the society with the 
 40.12  same police service it may secure by appointing 
 40.13  special constables peace officers.  A person providing police 
 40.14  service pursuant to such a contract is not, by reason of the 
 40.15  contract, classified as an employee of the agricultural society 
 40.16  for any purpose other than the discharge of powers and duties 
 40.17  under the contract.  
 40.18     (d) Any person who shall willfully violate any rule or 
 40.19  regulation made by such agricultural societies during the days 
 40.20  of a fair shall be guilty of a misdemeanor.  
 40.21     The provisions of this section supersede all special laws 
 40.22  on the same subject.  
 40.23     Sec. 58.  Minnesota Statutes 2004, section 38.16, is 
 40.24  amended to read: 
 40.25     38.16 [EXEMPTION FROM ZONING ORDINANCES.] 
 40.26     When lands lying within the corporate limits of towns or 
 40.27  cities are owned by a county or agricultural society and used 
 40.28  for agricultural fair purposes, the lands and the buildings now 
 40.29  or hereafter erected are exempt from the zoning, building, and 
 40.30  other ordinances of the town or city; provided, that no license 
 40.31  or permit need be obtained from, nor fee paid to, the town or 
 40.32  city in connection with the use of the lands.  For the purposes 
 40.33  of this section, "agricultural fair purposes" includes the 
 40.34  management of property as provided in section 38.01, paragraph 
 40.35  (a). 
 40.36     Sec. 59.  Minnesota Statutes 2004, section 41A.09, 
 41.1   subdivision 2a, is amended to read: 
 41.2      Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 41.3   the terms defined in this subdivision have the meanings given 
 41.4   them. 
 41.5      (a) "Ethanol" means fermentation ethyl alcohol derived from 
 41.6   agricultural products, including potatoes, cereal grains, cheese 
 41.7   whey, and sugar beets; forest products; or other renewable 
 41.8   resources, including residue and waste generated from the 
 41.9   production, processing, and marketing of agricultural products, 
 41.10  forest products, and other renewable resources, that: 
 41.11     (1) meets all of the specifications in ASTM specification 
 41.12  D4806-01; and 
 41.13     (2) is denatured as specified in Code of Federal 
 41.14  Regulations, title 27, parts 20 and 21. 
 41.15     (b) "Ethanol plant" means a plant at which ethanol is 
 41.16  produced. 
 41.17     (c) "Commissioner" means the commissioner of agriculture. 
 41.18     (d) "Rural economic infrastructure" means the development 
 41.19  of activities that will enhance the value of agricultural crop 
 41.20  or livestock commodities or by-products or waste from farming 
 41.21  operations through new and improved value-added conversion 
 41.22  processes and technologies, the development of more timely and 
 41.23  efficient infrastructure delivery systems, and the enhancement 
 41.24  of marketing opportunities.  "Rural economic infrastructure" 
 41.25  also means land, buildings, structures, fixtures, and 
 41.26  improvements located or to be located in Minnesota and used or 
 41.27  operated primarily for the processing or the support of 
 41.28  production of marketable products from agricultural commodities 
 41.29  produced in Minnesota. 
 41.30     Sec. 60.  Minnesota Statutes 2004, section 41A.09, 
 41.31  subdivision 3a, is amended to read: 
 41.32     Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
 41.33  commissioner shall make cash payments to producers of ethanol 
 41.34  located in the state that have begun production by June 30, 2000.
 41.35  For the purpose of this subdivision, an entity that holds a 
 41.36  controlling interest in more than one ethanol plant is 
 42.1   considered a single producer.  The amount of the payment for 
 42.2   each producer's annual production, except as provided in 
 42.3   paragraph (c), is 20 cents per gallon for each gallon of ethanol 
 42.4   produced on or before June 30, 2000, or ten years after the 
 42.5   start of production, whichever is later.  Annually, within 90 
 42.6   days of the end of its fiscal year, an ethanol producer 
 42.7   receiving payments under this subdivision must file a disclosure 
 42.8   statement on a form provided by the commissioner.  The initial 
 42.9   disclosure statement must include a summary description of the 
 42.10  organization of the business structure of the claimant, a 
 42.11  listing of the percentages of ownership by any person or other 
 42.12  entity with an ownership interest of five percent or greater, 
 42.13  and a copy of its annual audited financial statements, including 
 42.14  the auditor's report and footnotes.  The disclosure statement 
 42.15  must include information demonstrating what percentage of the 
 42.16  entity receiving payments under this section is owned by farmers 
 42.17  or other entities eligible to farm or own agricultural land in 
 42.18  Minnesota under the provisions of section 500.24.  Subsequent 
 42.19  annual reports must reflect noncumulative changes in ownership 
 42.20  of ten percent or more of the entity.  The report need not 
 42.21  disclose the identity of the persons or entities eligible to 
 42.22  farm or own agricultural land with ownership interests, 
 42.23  individuals residing within 30 miles of the plant, or of any 
 42.24  other entity with less than ten percent ownership interest, but 
 42.25  the claimant must retain information within its files confirming 
 42.26  the accuracy of the data provided.  This data must be made 
 42.27  available to the commissioner upon request.  Not later than the 
 42.28  15th day of February in each year the commissioner shall deliver 
 42.29  to the chairs of the standing committees of the senate and the 
 42.30  house of representatives that deal with agricultural policy and 
 42.31  agricultural finance issues an annual report summarizing 
 42.32  aggregated data from plants receiving payments under this 
 42.33  section during the preceding calendar year.  Audited financial 
 42.34  statements and notes and disclosure statements submitted to the 
 42.35  commissioner are nonpublic data under section 13.02, subdivision 
 42.36  9.  Notwithstanding the provisions of chapter 13 relating to 
 43.1   nonpublic data, summaries of the submitted audited financial 
 43.2   reports and notes and disclosure statements will be contained in 
 43.3   the report to the committee chairs and will be public data.  
 43.4      (b) No payments shall be made for ethanol production that 
 43.5   occurs after June 30, 2010.  
 43.6      (c) If the level of production at an ethanol plant 
 43.7   increases due to an increase in the production capacity of the 
 43.8   plant, the payment under paragraph (a) applies to the additional 
 43.9   increment of production until ten years after the increased 
 43.10  production began.  Once a plant's production capacity reaches 
 43.11  15,000,000 gallons per year, no additional increment will 
 43.12  qualify for the payment. 
 43.13     (d) Total payments under paragraphs (a) and (c) to a 
 43.14  producer in a fiscal year may not exceed $3,000,000. 
 43.15     (e) By the last day of October, January, April, and July, 
 43.16  each producer shall file a claim for payment for ethanol 
 43.17  production during the preceding three calendar months.  A 
 43.18  producer that files a claim under this subdivision shall include 
 43.19  a statement of the producer's total ethanol production in 
 43.20  Minnesota during the quarter covered by the claim.  For each 
 43.21  claim and statement of total ethanol production filed under this 
 43.22  subdivision, the volume of ethanol production must be examined 
 43.23  by an independent certified public accountant in accordance with 
 43.24  standards established by the American Institute of Certified 
 43.25  Public Accountants. 
 43.26     (f) Payments shall be made November 15, February 15, May 
 43.27  15, and August 15.  A separate payment shall be made for each 
 43.28  claim filed.  Except as provided in paragraph (g), the total 
 43.29  quarterly payment to a producer under this paragraph may not 
 43.30  exceed $750,000.  
 43.31     (g) Notwithstanding the quarterly payment limits of 
 43.32  paragraph (f), the commissioner shall make an additional payment 
 43.33  in the fourth quarter of each fiscal year to ethanol producers 
 43.34  for the lesser of:  (1) 20 cents per gallon of production in the 
 43.35  fourth quarter of the year that is greater than 3,750,000 
 43.36  gallons; or (2) the total amount of payments lost during the 
 44.1   first three quarters of the fiscal year due to plant outages, 
 44.2   repair, or major maintenance.  Total payments to an ethanol 
 44.3   producer in a fiscal year, including any payment under this 
 44.4   paragraph, must not exceed the total amount the producer is 
 44.5   eligible to receive based on the producer's approved production 
 44.6   capacity.  The provisions of this paragraph apply only to 
 44.7   production losses that occur in quarters beginning after 
 44.8   December 31, 1999. 
 44.9      (h) The commissioner shall reimburse ethanol producers for 
 44.10  any deficiency in payments during earlier quarters if the 
 44.11  deficiency occurred because of unallotment or because 
 44.12  appropriated money was insufficient to make timely payments in 
 44.13  the full amount provided in paragraph (a).  Notwithstanding the 
 44.14  quarterly or annual payment limitations in this subdivision, the 
 44.15  commissioner shall begin making payments for earlier 
 44.16  deficiencies in each fiscal year that appropriations for ethanol 
 44.17  payments exceed the amount required to make eligible scheduled 
 44.18  payments.  Payments for earlier deficiencies must continue until 
 44.19  the deficiencies for each producer are paid in full. 
 44.20     (i) The commissioner may make direct payments to producers 
 44.21  of rural economic infrastructure with any amount of the annual 
 44.22  appropriation for ethanol producer payments and rural economic 
 44.23  infrastructure that is in excess of the amount required to make 
 44.24  scheduled ethanol producer payments and deficiency payments for 
 44.25  payments delayed because of unallotment or because appropriated 
 44.26  funds in earlier fiscal years were insufficient. 
 44.27     Sec. 61.  Minnesota Statutes 2004, section 41B.046, 
 44.28  subdivision 5, is amended to read: 
 44.29     Subd. 5.  [LOANS.] (a) The authority may participate in a 
 44.30  stock loan with an eligible lender to a farmer who is eligible 
 44.31  under subdivision 4.  Participation is limited to 45 percent of 
 44.32  the principal amount of the loan or $40,000, whichever is less.  
 44.33  The interest rates and repayment terms of the authority's 
 44.34  participation interest may differ from the interest rates and 
 44.35  repayment terms of the lender's retained portion of the loan, 
 44.36  but the authority's interest rate must not exceed 50 percent of 
 45.1   the lender's interest rate. 
 45.2      (b) No more than 95 percent of the purchase price of the 
 45.3   stock may be financed under this program. 
 45.4      (c) Security for stock loans must be the stock purchased, a 
 45.5   personal note executed by the borrower, and whatever other 
 45.6   security is required by the eligible lender or the authority. 
 45.7      (d) The authority may impose a reasonable nonrefundable 
 45.8   application fee for each application for a stock loan.  The 
 45.9   authority may review the fee annually and make adjustments as 
 45.10  necessary.  The application fee is initially $50.  Application 
 45.11  fees received by the authority must be deposited in the 
 45.12  value-added agricultural product revolving fund revolving loan 
 45.13  account established in section 41B.06. 
 45.14     (e) Stock loans under this program will be made using money 
 45.15  in the value-added agricultural product revolving fund loan 
 45.16  account established under subdivision 3 in section 41B.06. 
 45.17     (f) The authority may not grant stock loans in a cumulative 
 45.18  amount exceeding $2,000,000 for the financing of stock purchases 
 45.19  in any one cooperative. 
 45.20     (g) Repayments of financial assistance under this section, 
 45.21  including principal and interest, must be deposited into the 
 45.22  revolving loan account established in section 41B.06. 
 45.23     [EFFECTIVE DATE.] This section is effective the day 
 45.24  following final enactment. 
 45.25     Sec. 62.  Minnesota Statutes 2004, section 41B.049, 
 45.26  subdivision 2, is amended to read: 
 45.27     Subd. 2.  [REVOLVING FUND DEPOSIT OF REPAYMENTS.] There is 
 45.28  established in the state treasury a revolving fund, which is 
 45.29  eligible to receive appropriations and the transfer of funds 
 45.30  from other services.  All repayments of financial assistance 
 45.31  granted under subdivision 1, including principal and interest, 
 45.32  must be deposited into this fund.  Interest earned on money in 
 45.33  the fund accrues to the fund, and money in the fund is 
 45.34  appropriated to the commissioner of agriculture for purposes of 
 45.35  the manure digester loan program, including costs incurred by 
 45.36  the authority to establish and administer the program the 
 46.1   revolving loan account established in section 41B.06. 
 46.2      [EFFECTIVE DATE.] This section is effective the day 
 46.3   following final enactment. 
 46.4      Sec. 63.  Minnesota Statutes 2004, section 41B.049, 
 46.5   subdivision 4, is amended to read: 
 46.6      Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
 46.7   or participate in a loan with an eligible lender to a farmer who 
 46.8   is eligible under subdivision 3.  The interest rates and 
 46.9   Repayment terms of the authority's participation interest may 
 46.10  differ from the interest rates and repayment terms of the 
 46.11  lender's retained portion of the loan.  The authority's interest 
 46.12  rate for a direct loan or a loan participation must not exceed 
 46.13  four percent.  Loans made under this section before July 1, 
 46.14  2003, must be no-interest loans.  
 46.15     (b) Application for a direct loan or a loan participation 
 46.16  must be made on forms prescribed by the authority. 
 46.17     (c) Standards for loan amortization shall be set by the 
 46.18  Rural Finance Authority not to exceed ten years. 
 46.19     (d) Security for the loans must be a personal note executed 
 46.20  by the borrower and whatever other security is required by the 
 46.21  eligible lender or the authority. 
 46.22     (e) No loan proceeds may be used to refinance a debt 
 46.23  existing prior to application. 
 46.24     (f) The authority may impose a reasonable nonrefundable 
 46.25  application fee for each application for a direct loan or a loan 
 46.26  participation.  The authority may review the application fees 
 46.27  annually and make adjustments as necessary.  The application fee 
 46.28  is initially set at $100 for a loan under subdivision 1.  The 
 46.29  fees received by the authority must be deposited in the 
 46.30  revolving fund created in subdivision 2 loan account established 
 46.31  in section 41B.06. 
 46.32     [EFFECTIVE DATE.] This section is effective retroactively 
 46.33  for any loan made on or after July 1, 2003. 
 46.34     Sec. 64.  [41B.055] [LIVESTOCK EQUIPMENT PILOT LOAN 
 46.35  PROGRAM.] 
 46.36     Subdivision 1.  [ESTABLISHMENT.] The authority must 
 47.1   establish and implement a livestock equipment pilot loan program 
 47.2   to help finance the first purchase of livestock-related 
 47.3   equipment and make livestock facilities improvements. 
 47.4      Subd. 2.  [ELIGIBILITY.] Notwithstanding section 41B.03, to 
 47.5   be eligible for this program a borrower must: 
 47.6      (1) be a resident of Minnesota or general partnership or a 
 47.7   family farm corporation, authorized farm corporation, family 
 47.8   farm partnership, or authorized farm partnership as defined in 
 47.9   section 500.24, subdivision 2; 
 47.10     (2) be the principal operator of a livestock farm; 
 47.11     (3) have a total net worth, including assets and 
 47.12  liabilities of the borrower's spouse and dependents, no greater 
 47.13  than the amount stipulated in section 41B.03, subdivision 3; 
 47.14     (4) demonstrate an ability to repay the loan; and 
 47.15     (5) hold an appropriate feedlot registration or be using 
 47.16  the loan under this program to meet registration requirements.  
 47.17  In addition to the requirements in clauses (1) to (5), 
 47.18  preference must be given to applicants who have farmed less than 
 47.19  ten years as evidenced by their filing of schedule F in their 
 47.20  federal tax returns. 
 47.21     Subd. 3.  [LOANS.] (a) The authority may participate in a 
 47.22  livestock equipment loan equal to 90 percent of the purchased 
 47.23  equipment value with an eligible lender to a farmer who is 
 47.24  eligible under subdivision 2.  Participation is limited to 45 
 47.25  percent of the principal amount of the loan or $40,000, 
 47.26  whichever is less.  The interest rates and repayment terms of 
 47.27  the authority's participation interest may differ from the 
 47.28  interest rates and repayment terms of the lender's retained 
 47.29  portion of the loan, but the authority's interest rate must not 
 47.30  exceed three percent.  The authority may review the interest 
 47.31  annually and make adjustments as necessary. 
 47.32     (b) Standards for loan amortization must be set by the 
 47.33  rural finance authority and must not exceed seven years. 
 47.34     (c) Security for a livestock equipment loan must be a 
 47.35  personal note executed by the borrower and whatever other 
 47.36  security is required by the eligible lender or the authority. 
 48.1      (d) Refinancing of existing debt is not an eligible purpose.
 48.2      (e) The authority may impose a reasonable, nonrefundable 
 48.3   application fee for a livestock equipment loan.  The authority 
 48.4   may review the fee annually and make adjustments as necessary.  
 48.5   The initial application fee is $50.  Application fees received 
 48.6   by the authority must be deposited in the revolving loan account 
 48.7   established in section 41B.06. 
 48.8      (f) Loans under this program must be made using money in 
 48.9   the revolving loan account established in section 41B.06. 
 48.10     Subd. 4.  [ELIGIBLE EXPENDITURES.] Money may be used for 
 48.11  loans for the acquisition of equipment for animal housing, 
 48.12  confinement, animal feeding, milk production, and waste 
 48.13  management.  
 48.14     [EFFECTIVE DATE.] This section is effective the day 
 48.15  following final enactment. 
 48.16     Sec. 65.  [41B.06] [RURAL FINANCE AUTHORITY REVOLVING LOAN 
 48.17  ACCOUNT.] 
 48.18     There is established in the rural finance administration 
 48.19  fund a rural finance authority revolving loan account that is 
 48.20  eligible to receive appropriations and the transfer of loan 
 48.21  funds from other programs.  All repayments of financial 
 48.22  assistance granted from this account, including principal and 
 48.23  interest, must be deposited into this account.  Interest earned 
 48.24  on money in the account accrues to the account, and the money in 
 48.25  the account is appropriated to the commissioner of agriculture 
 48.26  for purposes of the rural finance authority, livestock equipment 
 48.27  methane digester, and value-added agricultural product loan 
 48.28  programs, including costs incurred by the authority to establish 
 48.29  and administer the programs. 
 48.30     [EFFECTIVE DATE.] This section is effective the day 
 48.31  following final enactment. 
 48.32     Sec. 66.  [156.075] [REQUIREMENT FOR EQUINE TEETH 
 48.33  FLOATERS.] 
 48.34     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
 48.35  the following terms have the meanings given them. 
 48.36     (a) "Equine teeth floating" means: 
 49.1      (1) removal of enamel points from teeth with handheld, 
 49.2   nonmotorized, non-air-powered files or rasps; 
 49.3      (2) reestablishing normal molar table angles and freeing up 
 49.4   lateral excursion and other normal movements of the mandible; 
 49.5      (3) shaping the lingual aspect of the lower arcades and the 
 49.6   buccal aspect of the upper arcades to a rounded smooth surface; 
 49.7   and 
 49.8      (4) removing points from the buccal aspect of the upper 
 49.9   arcade and the lingual aspect of the lower arcade. 
 49.10     (b) "Indirect supervision" means a veterinarian must be 
 49.11  available by telephone or other form of immediate 
 49.12  communication.  The veterinarian must be currently licensed 
 49.13  under this chapter. 
 49.14     Subd. 2.  [EQUINE TEETH FLOATING SERVICES.] (a) A person 
 49.15  may perform equine teeth floating services after submitting to 
 49.16  the board the following: 
 49.17     (1) proof of current certification from the International 
 49.18  Association of Equine Dentistry or other professional equine 
 49.19  dentistry association as determined by the board; and 
 49.20     (2) a written statement signed by a supervising 
 49.21  veterinarian experienced in equine medicine that the applicant 
 49.22  will be under direct or indirect supervision of the veterinarian 
 49.23  when floating equine teeth. 
 49.24     (b) The board must waive the requirement in paragraph (a), 
 49.25  clause (1), and allow a person to perform equine teeth floating 
 49.26  services if the person provides satisfactory evidence of being 
 49.27  actively engaged in equine teeth floating for at least ten of 
 49.28  the past 15 years and has generated at least $5,000 annually in 
 49.29  personal income from this activity. 
 49.30     Sec. 67.  Minnesota Statutes 2004, section 174.52, 
 49.31  subdivision 5, is amended to read: 
 49.32     Subd. 5.  [GRANT PROCEDURES AND CRITERIA.] The commissioner 
 49.33  shall establish procedures for statutory or home rule charter 
 49.34  cities, towns, and counties to apply for grants or loans from 
 49.35  the fund and criteria to be used to select projects for funding. 
 49.36  The commissioner shall establish these procedures and criteria 
 50.1   in consultation with representatives appointed by the 
 50.2   Association of Minnesota Counties, League of Minnesota 
 50.3   Cities, and Minnesota Township Officers Association of 
 50.4   Townships, and the appropriate state agency, as needed.  The 
 50.5   criteria for determining project priority and the amount of a 
 50.6   grant or loan must be based upon consideration of: 
 50.7      (1) the availability of other state, federal, and local 
 50.8   funds; 
 50.9      (2) the regional significance of the route; 
 50.10     (3) effectiveness of the proposed project in eliminating a 
 50.11  transportation system deficiency; 
 50.12     (4) the number of persons who will be positively impacted 
 50.13  by the project; 
 50.14     (5) the project's contribution to other local, regional, or 
 50.15  state economic development or redevelopment efforts, including 
 50.16  livestock and other agricultural operations permitted after the 
 50.17  effective date of this section; and 
 50.18     (6) ability of the local unit of government to adequately 
 50.19  provide for the safe operation and maintenance of the facility 
 50.20  upon project completion. 
 50.21     [EFFECTIVE DATE.] This section is effective the day 
 50.22  following final enactment. 
 50.23     Sec. 68.  Minnesota Statutes 2004, section 223.17, 
 50.24  subdivision 3, is amended to read: 
 50.25     Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
 50.26  commissioner shall set the fees for inspections under sections 
 50.27  223.15 to 223.22 at levels necessary to pay the expenses of 
 50.28  administering and enforcing sections 223.15 to 223.22.  
 50.29     The fee for any license issued or renewed after June 30, 
 50.30  2001 2005, shall be set according to the following schedule: 
 50.31     (a) $125 $140 plus $100 $110 for each additional location 
 50.32  for grain buyers whose gross annual purchases are less than 
 50.33  $100,000; 
 50.34     (b) $250 $275 plus $100 $110 for each additional location 
 50.35  for grain buyers whose gross annual purchases are at least 
 50.36  $100,000, but not more than $750,000; 
 51.1      (c) $375 $415 plus $200 $220 for each additional location 
 51.2   for grain buyers whose gross annual purchases are more than 
 51.3   $750,000 but not more than $1,500,000; 
 51.4      (d) $500 $550 plus $200 $220 for each additional location 
 51.5   for grain buyers whose gross annual purchases are more than 
 51.6   $1,500,000 but not more than $3,000,000; and 
 51.7      (e) $625 $700 plus $200 $220 for each additional location 
 51.8   for grain buyers whose gross annual purchases are more than 
 51.9   $3,000,000.  
 51.10     A penalty amount not to exceed ten percent of the fees due 
 51.11  may be imposed by the commissioner for each month for which the 
 51.12  fees are delinquent. 
 51.13     There is created the grain buyers and storage account in 
 51.14  the agricultural fund.  Money collected pursuant to sections 
 51.15  223.15 to 223.19 shall be paid into the state treasury and 
 51.16  credited to the grain buyers and storage account and is 
 51.17  appropriated to the commissioner for the administration and 
 51.18  enforcement of sections 223.15 to 223.22. 
 51.19     Sec. 69.  Minnesota Statutes 2004, section 231.08, is 
 51.20  amended by adding a subdivision to read: 
 51.21     Subd. 3.  [TENDER FOR STORAGE.] At the time of or prior to 
 51.22  tender of goods for storage by a depositor, a storage order must 
 51.23  be signed in writing by the depositor or the depositor's duly 
 51.24  authorized representative and must show the name and address of 
 51.25  the warehouse operator in whose custody the goods are to be 
 51.26  deposited. 
 51.27     Sec. 70.  Minnesota Statutes 2004, section 231.08, is 
 51.28  amended by adding a subdivision to read: 
 51.29     Subd. 4.  [GOODS; LABELING.] A warehouse operator who 
 51.30  receives a lot of goods must identify each article or lot by tag 
 51.31  or lot number, as recorded on the operator's books and on the 
 51.32  warehouse receipt or contract. 
 51.33     Sec. 71.  Minnesota Statutes 2004, section 231.08, is 
 51.34  amended by adding a subdivision to read: 
 51.35     Subd. 5.  [FIRE PROTECTION.] All warehouses must be 
 51.36  protected against fire by an automatic device or fire 
 52.1   extinguishers.  Extinguishers must be recharged at least once a 
 52.2   year or as required by state or local fire codes and ordinances 
 52.3   and tagged, showing the date of the most recent recharge.  If an 
 52.4   automatic device is in place, it must be kept in complete 
 52.5   working condition at all times.  Goods, wares, or merchandise 
 52.6   must not be piled to a height that would interfere with the 
 52.7   outlets of the automatic device or as required by state or local 
 52.8   fire codes or ordinances. 
 52.9      Sec. 72.  Minnesota Statutes 2004, section 231.08, is 
 52.10  amended by adding a subdivision to read: 
 52.11     Subd. 6.  [FLOOR LOAD.] A warehouse floor or part of floor 
 52.12  must not at any time be loaded or stored with a greater weight 
 52.13  of goods or materials per square foot than the floor will 
 52.14  sustain with safety.  If the department directs a warehouse 
 52.15  operator to ascertain from a competent registered architect or 
 52.16  engineer or from the proper municipal authorities what may be 
 52.17  the safe load capacity in pounds per square foot of each floor 
 52.18  of the operator's warehouse or warehouses, the operator must do 
 52.19  so without unnecessary delay and must post signs in several 
 52.20  conspicuous places on each floor stating the safe live load that 
 52.21  floor will sustain. 
 52.22     Sec. 73.  Minnesota Statutes 2004, section 231.08, is 
 52.23  amended by adding a subdivision to read: 
 52.24     Subd. 7.  [STORAGE CONDITIONS.] (a) On each floor where 
 52.25  there is open storage of goods, wares, or merchandise, there 
 52.26  must be aisles wide enough to permit the free and unimpeded 
 52.27  passage of goods, wares, or merchandise.  All aisles must be 
 52.28  kept free from obstructions, dust, and litter. 
 52.29     (b) Pieces of overstuffed furniture, mattresses, rugs, 
 52.30  carpets, and other goods not stored in containers must be 
 52.31  protected by wrapping before being placed in permanent storage. 
 52.32     (c) Warehouse operators storing household goods must have 
 52.33  available a packing or crating room partitioned off from the 
 52.34  storage of goods on the same floor. 
 52.35     Sec. 74.  Minnesota Statutes 2004, section 231.09, is 
 52.36  amended to read: 
 53.1      231.09 [OBLIGATION TO ISSUE UNIFORM RECEIPTS.] 
 53.2      Subdivision 1.  [RECEIPTS.] A warehouse operator receiving 
 53.3   goods in store shall issue for the goods a receipt embodying the 
 53.4   terms of such receipts as authorized by article 7 of the Uniform 
 53.5   Commercial Code.  Receipts or records of storage in electronic 
 53.6   form are acceptable. 
 53.7      Subd. 2.  [COPY TO DEPARTMENT.] A copy of the form of 
 53.8   receipt used by the warehouse operator must be furnished to the 
 53.9   department with the application for license. 
 53.10     Subd. 3.  [INSURANCE.] Receipts must show in conspicuous 
 53.11  type whether or not the property for which the receipt has been 
 53.12  issued is insured for the benefit of the depositor against fire 
 53.13  or any other casualty. 
 53.14     Subd. 4.  [LOT NUMBER.] The property of each depositor must 
 53.15  be specifically designated under a lot number, which must appear 
 53.16  on the receipt for the purpose of identification. 
 53.17     Subd. 5.  [CORRECTNESS OF RECEIPT.] Unless notice is given 
 53.18  by the depositor to the warehouse operator in writing within 30 
 53.19  days after the date of mailing or delivery to the depositor of 
 53.20  the warehouse receipt stating that there are errors or omissions 
 53.21  in the list of goods and specifying them, the operator is 
 53.22  entitled to assume that the list of goods on the warehouse 
 53.23  receipt is a complete and correct list of goods tendered to the 
 53.24  operator for storage under the terms and conditions of the 
 53.25  contract and that the depositor has accepted all terms and 
 53.26  conditions of the contract. 
 53.27     Subd. 6.  [STORING ADDITIONAL GOODS.] If the depositor, 
 53.28  subsequent to the original storing, places other goods with the 
 53.29  warehouse operator for storage, the additional goods may come in 
 53.30  under the same terms and conditions as if they were part of the 
 53.31  original lot. 
 53.32     Subd. 7.  [NOTICES TO DEPOSITOR.] Notices by the warehouse 
 53.33  operator to the depositor pertaining to the goods, wares, or 
 53.34  merchandise must be sent to the depositor at the address given 
 53.35  at the time of depositing the goods, wares, or merchandise with 
 53.36  the operator, unless written notice of a change of address is 
 54.1   received by the operator from the depositor.  Notices mailed by 
 54.2   the operator to the last address given by the depositor 
 54.3   constitute effective notice for all purposes. 
 54.4      Subd. 8.  [LIABILITY LIMITATIONS; OTHER THAN HOUSEHOLD 
 54.5   GOODS.] Unless otherwise specified by the depositor in writing, 
 54.6   it is agreed and is prima facie proof that no piece, package, or 
 54.7   complete article with its contents enumerated in the list of 
 54.8   goods in the warehouse receipt of contract exceeds the sum of 
 54.9   $50 in value.  If the depositor declares in writing a higher 
 54.10  valuation, the warehouse operator may charge a higher rate for 
 54.11  storing the pieces, packages, or complete articles.  Each 
 54.12  operator must, upon the day of storage, clearly inform the 
 54.13  depositor, in writing, that the depositor may declare a higher 
 54.14  valuation. 
 54.15     Subd. 9.  [LIABILITY LIMITATIONS; HOUSEHOLD GOODS.] (a) 
 54.16  From and after the date of storage, the warehouse operator 
 54.17  storing household goods must, on behalf of the depositor, cause 
 54.18  the stored goods of the depositor to be insured at least in the 
 54.19  amount of $1.25 per pound per article against loss from any 
 54.20  peril covered by standard fire and extended coverage policies.  
 54.21  The depositor must pay to the operator the cost of the insurance 
 54.22  in addition to other warehousing charges.  Provided, however, 
 54.23  that the depositor may declare in writing that the value of the 
 54.24  stored goods does not exceed 60 cents per pound per article, in 
 54.25  which case the depositor is limited to that amount in the 
 54.26  recovery of any damages against the warehouse operator. 
 54.27     (b) Warehouse operators whose charges for storage are not 
 54.28  based upon actual weight, and who may not have available an 
 54.29  actual weight figure, may use a weight figure obtained by 
 54.30  application of the constructive weight rule in effect in the 
 54.31  operator's tariff. 
 54.32     (c) Each warehouse operator must, on the day of storage, 
 54.33  clearly inform the depositor in writing of the substance of 
 54.34  paragraph (a).  If the depositor's goods are delivered to the 
 54.35  operator for storage by another person, the operator must inform 
 54.36  that person of the depositor's rights and obligations under 
 55.1   paragraph (a). 
 55.2      (d) Nothing in this section imposes liability upon a 
 55.3   warehouse operator for damages where the liability would not 
 55.4   otherwise be imposed under the provisions of the Uniform 
 55.5   Commercial Code, chapter 336, and specifically section 336.7-204.
 55.6      Sec. 75.  Minnesota Statutes 2004, section 231.11, is 
 55.7   amended to read: 
 55.8      231.11 [SCHEDULE OF RATES; STORING HOUSEHOLD GOODS.] 
 55.9      Subdivision 1.  [FILING; INSPECTION.] A household goods 
 55.10  warehouse operator must file with the department and keep open 
 55.11  for public inspection a printed schedule of rates and charges 
 55.12  complying with subdivision 2.  All tariffs of rates and charges 
 55.13  must contain terms and conditions under which the rates and 
 55.14  charges are assessed. 
 55.15     Subd. 2.  [RATE-MAKING PROCEDURE.] In order to ensure 
 55.16  nondiscriminatory rates and charges for all depositors of 
 55.17  household goods, the commissioner shall establish a collective 
 55.18  rate-making procedure which will ensure the publication and 
 55.19  maintenance of just and reasonable rates and charges under 
 55.20  uniform, reasonably related rate structures.  These procedures 
 55.21  must provide for the joint consideration, initiation, and 
 55.22  establishment of rates and charges and ensure that the 
 55.23  respective revenues and expenses of household goods warehouse 
 55.24  operators are ascertained.  Any participating household goods 
 55.25  warehouse operator party to a collectively mandated rate or 
 55.26  charge has the right to petition the commissioner for the 
 55.27  establishment of a rate or charge which deviates from the 
 55.28  collectively set rate.  Upon receiving the commissioner's 
 55.29  approval, that household goods warehouse operator may proceed to 
 55.30  establish the requested rate or charge.  All household goods 
 55.31  warehouse operators subject to rate regulation under this 
 55.32  chapter must comply with the commissioner's rate-making 
 55.33  procedures.  No household goods warehouse operator shall 
 55.34  undertake to perform any service or store any household goods 
 55.35  until a schedule of rates has been filed and published in 
 55.36  accordance with this chapter.  In case of emergency, however, a 
 56.1   service or storage not specifically covered by the schedules 
 56.2   filed, may be performed or furnished at a reasonable rate, which 
 56.3   must then be promptly filed, and which is subject to review in 
 56.4   accordance with this chapter. 
 56.5      Sec. 76.  Minnesota Statutes 2004, section 231.16, is 
 56.6   amended to read: 
 56.7      231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
 56.8   OPERATOR TO OBTAIN LICENSE.] 
 56.9      A warehouse operator or household goods warehouse operator 
 56.10  must be licensed annually by the department.  The department 
 56.11  shall prescribe the form of the written application.  If the 
 56.12  department approves the license application and the applicant 
 56.13  files with the department the necessary bond, in the case of 
 56.14  household goods warehouse operators, or proof of warehouse 
 56.15  operators legal liability insurance coverage in an amount of 
 56.16  $50,000 or more, as provided for in this chapter, the department 
 56.17  shall issue the license upon payment of the license fee required 
 56.18  in this section.  A warehouse operator or household goods 
 56.19  warehouse operator to whom a license is issued shall pay a fee 
 56.20  as follows:  
 56.21          Building square footage used for public storage 
 56.22              (1) 5,000 or less                $100 $110
 56.23              (2) 5,001 to 10,000              $200 $220 
 56.24              (3) 10,001 to 20,000             $300 $330 
 56.25              (4) 20,001 to 100,000            $400 $440
 56.26              (5) 100,001 to 200,000           $500 $550
 56.27              (6) over 200,000                 $600
 56.28     A penalty amount not to exceed ten percent of the fees due 
 56.29  may be imposed by the commissioner for each month for which the 
 56.30  fees are delinquent. 
 56.31     Fees collected under this chapter must be paid into the 
 56.32  grain buyers and storage account established in section 232.22. 
 56.33     The license must be renewed annually on or before July 1, 
 56.34  and always upon payment of the full license fee required in this 
 56.35  section.  No license shall be issued for any portion of a year 
 56.36  for less than the full amount of the license fee required in 
 57.1   this section.  Each license obtained under this chapter must be 
 57.2   publicly displayed in the main office of the place of business 
 57.3   of the warehouse operator or household goods warehouse operator 
 57.4   to whom it is issued.  The license authorizes the warehouse 
 57.5   operator or household goods warehouse operator to carry on the 
 57.6   business of warehousing only in the one city or town named in 
 57.7   the application and in the buildings therein described.  The 
 57.8   department, without requiring an additional bond and license, 
 57.9   may issue permits from time to time to any warehouse operator 
 57.10  already duly licensed under the provisions of this chapter to 
 57.11  operate an additional warehouse in the same city or town for 
 57.12  which the original license was issued during the term thereof, 
 57.13  upon the filing an application for a permit in the form 
 57.14  prescribed by the department. 
 57.15     A license may be refused for good cause shown and revoked 
 57.16  by the department for violation of law or of any rule adopted by 
 57.17  the department, upon notice and after hearing. 
 57.18     Sec. 77.  Minnesota Statutes 2004, section 231.18, 
 57.19  subdivision 3, is amended to read: 
 57.20     Subd. 3.  [WHERE TO FILE.] All claims must be filed at with 
 57.21  the following address:  Minnesota Department of Agriculture, 
 57.22  Grain Licensing and Auditing Division, 316 Grain Exchange 
 57.23  Building, Minneapolis, Minnesota 55415 Section. 
 57.24     Sec. 78.  Minnesota Statutes 2004, section 231.18, 
 57.25  subdivision 5, is amended to read: 
 57.26     Subd. 5.  [PUBLIC NOTICE OF A CLAIM.] Upon determining that 
 57.27  a depositor has filed a valid claim, the department shall 
 57.28  publish notice of the claim in the official county newspaper of 
 57.29  the county in which the licensee's primary place of business is 
 57.30  located. 
 57.31     The notice must state that a claim against the bond of a 
 57.32  licensee has been filed with the department, the name and 
 57.33  address of the licensee, that any additional claims should be 
 57.34  filed with the department, the bond disbursement date by which 
 57.35  claims must be filed, and where the claims should be filed. 
 57.36     The public notice of the claim must appear for three 
 58.1   consecutive days in newspapers with a daily circulation and for 
 58.2   two consecutive publications in newspapers published less than 
 58.3   daily. 
 58.4      Sec. 79.  [231.375] [OPENING OR ABANDONMENT OF WAREHOUSES.] 
 58.5      No building or structure may be used as a warehouse or 
 58.6   branch warehouse until it has been inspected and approved for 
 58.7   warehousing purposes by the department. 
 58.8      On ceasing to use a building or other structure, a 
 58.9   warehouse operator must promptly notify the department. 
 58.10     Sec. 80.  Minnesota Statutes 2004, section 232.22, 
 58.11  subdivision 3, is amended to read: 
 58.12     Subd. 3.  [FEES; GRAIN BUYERS AND STORAGE ACCOUNT.] There 
 58.13  is created in the agricultural fund an account known as the 
 58.14  grain buyers and storage account.  The commissioner shall set 
 58.15  the fees for inspections, certifications and licenses under 
 58.16  sections 232.20 to 232.25 at levels necessary to pay the costs 
 58.17  of administering and enforcing sections 232.20 to 232.25.  All 
 58.18  money collected pursuant to sections 232.20 to 232.25 and 
 58.19  chapters 233 and 236 shall be paid by the commissioner into the 
 58.20  state treasury and credited to the grain buyers and storage 
 58.21  account and is appropriated to the commissioner for the 
 58.22  administration and enforcement of sections 232.20 to 232.25 and 
 58.23  chapters 233 and 236.  All money collected pursuant to chapter 
 58.24  231 shall be paid by the commissioner into the grain buyers and 
 58.25  storage account and is appropriated to the commissioner for the 
 58.26  administration and enforcement of chapter 231.  
 58.27     The fees for a license to store grain are as follows: 
 58.28     (a) For a license to store grain, $110 for each home rule 
 58.29  charter or statutory city or town in which a public grain 
 58.30  warehouse is operated. 
 58.31     (b) A person with a license to store grain in a public 
 58.32  grain warehouse is subject to an examination fee for each 
 58.33  licensed location, based on the following schedule for one 
 58.34  examination: 
 58.35       Bushel Capacity            Examination Fee 
 58.36       Less than 150,001                  $300
 59.1        150,001 to 250,000                 $425
 59.2        250,001 to 500,000                 $545
 59.3        500,001 to 750,000                 $700
 59.4        750,001 to 1,000,000               $865
 59.5        1,000,001 to 1,200,000             $1,040
 59.6        1,200,001 to 1,500,000             $1,205
 59.7        1,500,001 to 2,000,000             $1,380
 59.8        More than 2,000,000                $1,555
 59.9      (c) The fee for the second examination is $55 per hour per 
 59.10  examiner for warehouse operators who choose to have it performed 
 59.11  by the commissioner. 
 59.12     (d) A penalty amount not to exceed ten percent of the fees 
 59.13  due may be imposed by the commissioner for each month for which 
 59.14  the fees are delinquent. 
 59.15     Sec. 81.  Minnesota Statutes 2004, section 236.02, 
 59.16  subdivision 4, is amended to read: 
 59.17     Subd. 4.  [FEES.] The license fee is $140 for each home 
 59.18  rule charter or statutory city or town in which a private grain 
 59.19  warehouse is operated and which will be used to operate a grain 
 59.20  bank.  A penalty amount not to exceed ten percent of the fees 
 59.21  due may be imposed by the commissioner for each month for which 
 59.22  the fees are delinquent.  The license fee must be set by the 
 59.23  commissioner in an amount sufficient to cover the costs of 
 59.24  administering and enforcing this chapter.  Fees collected under 
 59.25  this chapter must be paid into the grain buyers and storage 
 59.26  account established in section 232.22. 
 59.27     Sec. 82.  Minnesota Statutes 2004, section 327.23, 
 59.28  subdivision 2, is amended to read: 
 59.29     Subd. 2.  [MANUFACTURED HOME PARK.] (a) The term 
 59.30  "manufactured home park" shall not be construed to include: 
 59.31     (1) manufactured homes, buildings, tents or other 
 59.32  structures temporarily maintained by any individual or company 
 59.33  on premises associated with a work project and used exclusively 
 59.34  to house labor or other personnel occupied in such work project; 
 59.35  or 
 59.36     (2) two or less manufactured homes maintained by an 
 60.1   individual or company on the premises located within 100 yards 
 60.2   of an existing residence and associated with an area zoned 
 60.3   agricultural and used exclusively to house family or labor, as 
 60.4   defined in the United States Internal Revenue Code, section 
 60.5   3121(g), engaged in the agricultural operation, provided the 
 60.6   homes: 
 60.7      (i) meet the requirements of section 326.243 and Minnesota 
 60.8   Rules, parts 4630.0600, subpart 1, 4630.0700, 4630.1200, 
 60.9   4630.3500, and 4715.0310; 
 60.10     (ii) are equipped with at least one automatic smoke 
 60.11  detector that conforms to the applicable provisions of the 
 60.12  National Fire Protection Association standard, identified as 
 60.13  NFPA 501B, outside each sleeping area; and 
 60.14     (iii) meet the requirements of sections 327.31 to 327.35 
 60.15  and Minnesota Rules, chapter 1350. 
 60.16     (b) The state Department of Health may by rule prescribe 
 60.17  such sanitary facilities as it may deem necessary to provide for 
 60.18  the sanitation of such structures and the safety of the 
 60.19  occupants thereof. 
 60.20     Sec. 83.  Minnesota Statutes 2004, section 327.23, is 
 60.21  amended by adding a subdivision to read: 
 60.22     Subd. 2a.  [SEASONAL AGRICULTURAL OPERATIONS.] The term 
 60.23  "manufactured home park" shall not be construed to include up to 
 60.24  four manufactured homes maintained by an individual or a company 
 60.25  on premises associated with a seasonal agricultural operation, 
 60.26  in an area zoned agricultural, and used exclusively to house 
 60.27  individuals or families performing labor as defined in section 
 60.28  3121(g) of the Internal Revenue Code if: 
 60.29     (1) the manufactured homes are equipped with indoor 
 60.30  plumbing facilities and the standards for water and sanitation 
 60.31  established in Minnesota Rules, parts 4630.0600, subpart 1; 
 60.32  4630.0700; 4630.1200; 4630.3500; and 4715.0310 are met; 
 60.33     (2) the manufactured homes provide at least 80 square feet 
 60.34  of indoor living space per inhabitant of each home; 
 60.35     (3) the manufactured homes and their installation comply 
 60.36  with section 327.34, subdivision 1, and Minnesota Rules, chapter 
 61.1   1350; 
 61.2      (4) the individual or company maintaining the manufactured 
 61.3   homes, with the assistance and approval of the city or town 
 61.4   where the homes are located, develops and posts in conspicuous 
 61.5   locations near the homes, a shelter or safe evacuation plan in 
 61.6   the event of severe weather conditions, such as tornadoes, high 
 61.7   winds, and floods; and 
 61.8      (5) the individual or company maintains the homes in a 
 61.9   clean, orderly, and sanitary condition. 
 61.10     [EFFECTIVE DATE.] This section is effective the day 
 61.11  following final enactment. 
 61.12     Sec. 84.  Minnesota Statutes 2004, section 394.25, 
 61.13  subdivision 3c, is amended to read: 
 61.14     Subd. 3c.  [FEEDLOT ZONING ORDINANCES.] (a) A county 
 61.15  proposing to adopt a new feedlot ordinance or amend an existing 
 61.16  feedlot ordinance must notify the Pollution Control Agency and 
 61.17  commissioner of agriculture at the beginning of the process, no 
 61.18  later than the notice of the first hearing proposing to adopt or 
 61.19  amend an ordinance purporting to address feedlots. 
 61.20     (b) Prior to final approval of a feedlot ordinance, a 
 61.21  county board may submit a copy of the proposed ordinance to the 
 61.22  Pollution Control Agency and to the commissioner of agriculture 
 61.23  and request review, comment, and preparation of recommendations. 
 61.24     (c) The agencies' response to the county may include: 
 61.25     (1) any recommendations for improvements in the ordinance; 
 61.26  and 
 61.27     (2) the legal, economic, or scientific justification for 
 61.28  each recommendation under clause (1). 
 61.29     (d) At the request of any member of the county board, the 
 61.30  county must prepare a report on the environmental and 
 61.31  agricultural economic effects from specific provisions in the 
 61.32  ordinance.  Economic analysis must state whether the ordinance 
 61.33  will affect the local economy and describe the kinds of 
 61.34  businesses affected and the projected impact the proposal will 
 61.35  have on those businesses.  To assist the county, the 
 61.36  commissioner of agriculture, in cooperation with the Department 
 62.1   of Employment and Economic Development, must develop a template 
 62.2   for measuring local economic effects and make it available to 
 62.3   the county.  The report must be submitted to the commissioners 
 62.4   of employment and economic development and agriculture along 
 62.5   with the proposed ordinance. 
 62.6      (c) The report may include: 
 62.7      (1) any recommendations for improvements in the ordinance; 
 62.8   and 
 62.9      (2) the legal, social, economic, or scientific 
 62.10  justification for each recommendation under clause (1). 
 62.11     (d) (e) A local ordinance that contains a setback for new 
 62.12  feedlots from existing residences must also provide for a new 
 62.13  residence setback from existing feedlots located in areas zoned 
 62.14  agricultural at the same distances and conditions specified in 
 62.15  the setback for new feedlots, unless the new residence is built 
 62.16  to replace an existing residence.  A county may grant a variance 
 62.17  from this requirement under section 394.27, subdivision 7. 
 62.18     [EFFECTIVE DATE.] This section is effective the day 
 62.19  following final enactment. 
 62.20     Sec. 85.  Minnesota Statutes 2004, section 462.355, 
 62.21  subdivision 4, is amended to read: 
 62.22     Subd. 4.  [INTERIM ORDINANCE.] (a) If a municipality is 
 62.23  conducting studies or has authorized a study to be conducted or 
 62.24  has held or has scheduled a hearing for the purpose of 
 62.25  considering adoption or amendment of a comprehensive plan or 
 62.26  official controls as defined in section 462.352, subdivision 15, 
 62.27  or if new territory for which plans or controls have not been 
 62.28  adopted is annexed to a municipality, the governing body of the 
 62.29  municipality may adopt an interim ordinance applicable to all or 
 62.30  part of its jurisdiction for the purpose of protecting the 
 62.31  planning process and the health, safety and welfare of its 
 62.32  citizens.  The interim ordinance may regulate, restrict or 
 62.33  prohibit any use, development, or subdivision within the 
 62.34  jurisdiction or a portion thereof for a period not to exceed one 
 62.35  year from the date it is effective.  
 62.36     (b) If a proposed interim ordinance purports to regulate, 
 63.1   restrict, or prohibit activities relating to livestock 
 63.2   production, a public hearing must be held following a ten-day 
 63.3   notice given by publication in a newspaper of general 
 63.4   circulation in the municipality before the interim ordinance 
 63.5   takes effect.  
 63.6      (c) The period of an interim ordinance applicable to an 
 63.7   area that is affected by a city's master plan for a municipal 
 63.8   airport may be extended for such additional periods as the 
 63.9   municipality may deem appropriate, not exceeding a total 
 63.10  additional period of 18 months in the case where the Minnesota 
 63.11  Department of Transportation has requested a city to review its 
 63.12  master plan for a municipal airport prior to August 1, 2004.  In 
 63.13  all other cases, no interim ordinance may halt, delay, or impede 
 63.14  a subdivision which has been given preliminary approval, nor may 
 63.15  any interim ordinance extend the time deadline for agency action 
 63.16  set forth in section 15.99 with respect to any application filed 
 63.17  prior to the effective date of the interim ordinance.  The 
 63.18  governing body of the municipality may extend the interim 
 63.19  ordinance after a public hearing and written findings have been 
 63.20  adopted based upon one or more of the conditions in clause (1), 
 63.21  (2), or (3).  The public hearing must be held at least 15 days 
 63.22  but not more than 30 days before the expiration of the interim 
 63.23  ordinance, and notice of the hearing must be published at least 
 63.24  ten days before the hearing.  The interim ordinance may be 
 63.25  extended for the following conditions and durations, but, except 
 63.26  as provided in clause (3), an interim ordinance may not be 
 63.27  extended more than an additional 18 months: 
 63.28     (1) up to an additional 120 days following the receipt of 
 63.29  the final approval or review by a federal, state, or 
 63.30  metropolitan agency when the approval is required by law and the 
 63.31  review or approval has not been completed and received by the 
 63.32  municipality at least 30 days before the expiration of the 
 63.33  interim ordinance; 
 63.34     (2) up to an additional 120 days following the completion 
 63.35  of any other process required by a state statute, federal law, 
 63.36  or court order, when the process is not completed at least 30 
 64.1   days before the expiration of the interim ordinance; or 
 64.2      (3) up to an additional one year if the municipality has 
 64.3   not adopted a comprehensive plan under this section at the time 
 64.4   the interim ordinance is enacted. 
 64.5      [EFFECTIVE DATE.] This section is effective the day 
 64.6   following final enactment. 
 64.7      Sec. 86.  Minnesota Statutes 2004, section 462.357, is 
 64.8   amended by adding a subdivision to read: 
 64.9      Subd. 9.  [FEEDLOT ZONING CONTROLS.] (a) A municipality 
 64.10  proposing to adopt a new feedlot zoning control or to amend an 
 64.11  existing feedlot zoning control must notify the Pollution 
 64.12  Control Agency and commissioner of agriculture at the beginning 
 64.13  of the process, no later than the date notice is given of the 
 64.14  first hearing proposing to adopt or amend a zoning control 
 64.15  purporting to address feedlots. 
 64.16     (b) Prior to final approval of a feedlot zoning control, a 
 64.17  municipality may submit a copy of the proposed zoning control to 
 64.18  the Pollution Control Agency and to the commissioner of 
 64.19  agriculture and request review, comment, and recommendations. 
 64.20     (c) The agencies' response to the municipality may include: 
 64.21     (1) any recommendations for improvements in the ordinance; 
 64.22  and 
 64.23     (2) the legal, economic, or scientific justification for 
 64.24  each recommendation under clause (1).  
 64.25     (d) At the request of any member of the municipality's 
 64.26  governing body, the municipality must prepare a report on the 
 64.27  economic effects from specific provisions in the ordinance.  
 64.28  Economic analysis must state whether the ordinance will affect 
 64.29  the local economy and describe the kinds of businesses affected 
 64.30  and the projected impact the proposal will have on those 
 64.31  businesses.  To assist the municipality, the commissioner of 
 64.32  agriculture, in cooperation with the Department of Employment 
 64.33  and Economic Development, must develop a template for measuring 
 64.34  local economic effects and make it available to the 
 64.35  municipality.  The report must be submitted to the commissioners 
 64.36  of employment and economic development and agriculture along 
 65.1   with the proposed ordinance. 
 65.2      [EFFECTIVE DATE.] This section is effective the day 
 65.3   following final enactment. 
 65.4      Sec. 87.  [583.215] [EXPIRATION.] 
 65.5      Sections 336.9-601, subsections (h) and (i); 550.365; 
 65.6   559.209; 582.039; and 583.20 to 583.32, expire June 30, 2009. 
 65.7      [EFFECTIVE DATE.] This section is effective the day 
 65.8   following final enactment. 
 65.9      Sec. 88.  [604.17] [PERSONAL RESPONSIBILITY IN FOOD 
 65.10  CONSUMPTION ACT.] 
 65.11     Subdivision 1.  [TITLE.] This act may be cited as the 
 65.12  Personal Responsibility in Food Consumption Act. 
 65.13     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section 
 65.14  the following terms have the meanings given. 
 65.15     (b) "Long-term consumption" means the cumulative effect of 
 65.16  the consumption of food or nonalcoholic beverages, and not the 
 65.17  effect of a single instance of consumption. 
 65.18     (c) "Party" means an individual, corporation, company, 
 65.19  association, firm, partnership, society, joint stock company, or 
 65.20  any other entity, including any governmental entity. 
 65.21     Subd. 3.  [IMMUNITY FROM CIVIL LIABILITY.] A producer, 
 65.22  grower, manufacturer, packer, distributor, carrier, holder, 
 65.23  marketer, or seller of a food or nonalcoholic beverage intended 
 65.24  for human consumption, or an association of one or more of such 
 65.25  entities, shall not be subject to civil liability based on any 
 65.26  individual's or group of individuals' purchase or consumption of 
 65.27  food or nonalcoholic beverages in cases where liability arises 
 65.28  from weight gain, obesity, or a health condition associated with 
 65.29  weight gain or obesity and resulting from the individual's or 
 65.30  group of individuals' long-term purchase or consumption of a 
 65.31  food or nonalcoholic beverage. 
 65.32     Subd. 4.  [ACTIONS PERMITTED.] Subdivision 3 does not apply 
 65.33  to a claim of weight gain or obesity that is based on: 
 65.34     (1) a material violation of an adulteration or misbranding 
 65.35  requirement prescribed by state or federal statute, rule, or 
 65.36  regulation and the claimed injury was proximately caused by the 
 66.1   violation; or 
 66.2      (2) any other material violation of federal or state law 
 66.3   applicable to the manufacturing, marketing, distribution, 
 66.4   advertising, labeling, or sale of food, if the violation is 
 66.5   knowing and willful, and the claimed injury was proximately 
 66.6   caused by the violation. 
 66.7      [EFFECTIVE DATE.] This section is effective the day 
 66.8   following final enactment and applies to any action brought by 
 66.9   any party on or after the effective date. 
 66.10     Sec. 89.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
 66.11     The remaining balances in the revolving accounts in 
 66.12  Minnesota Statutes, sections 41B.046 and 41B.049, that are 
 66.13  dedicated to rural finance authority loan programs under those 
 66.14  sections, are transferred to the revolving loan account 
 66.15  established in Minnesota Statutes, section 41B.06, on the 
 66.16  effective date of this section.  All future receipts from 
 66.17  value-added agricultural product loans and methane digester 
 66.18  loans originated under Minnesota Statutes, sections 41B.046 and 
 66.19  41B.049, must be deposited in the revolving loan account 
 66.20  established in Minnesota Statutes, section 41B.06. 
 66.21     [EFFECTIVE DATE.] This section is effective the day 
 66.22  following final enactment. 
 66.23     Sec. 90.  [AGRICULTURAL NUTRIENT TASK FORCE.] 
 66.24     (a) There is created an Agricultural Nutrient Task Force 
 66.25  consisting of two members of the senate appointed by the chair 
 66.26  of the senate Committee on Agriculture, Veterans and Gaming; two 
 66.27  members of the house of representatives appointed by the chair 
 66.28  of the house Committee on Agriculture and Rural Development, and 
 66.29  at least 15 public members appointed by the commissioner of 
 66.30  agriculture.  The public members must be broadly representative 
 66.31  of the diverse range of persons interested in and knowledgeable 
 66.32  about agricultural soil nutrients and must include 
 66.33  representatives of agricultural crop growers, fertilizer 
 66.34  retailers, soil nutrient consultants, and agricultural soil and 
 66.35  nutrient researchers.  Public members of the task force must 
 66.36  serve without compensation or reimbursement of personal expenses.
 67.1      (b) The commissioner of agriculture must convene the first 
 67.2   meeting of the task force and must provide office support 
 67.3   services to the task force as needed.  The task force may 
 67.4   determine the date, location, and agenda of additional meetings. 
 67.5      (c) The task force must review and make recommendations on 
 67.6   at least the following topics and practices: 
 67.7      (1) the need for research, education, and training in the 
 67.8   selection and application of agricultural fertilizer and soil 
 67.9   nutrients in the state; 
 67.10     (2) the imposition of a tonnage fee on all agricultural 
 67.11  fertilizer applied in Minnesota and the designated uses of the 
 67.12  proceeds from the fee; and 
 67.13     (3) the desirability of amending statutes and rules that 
 67.14  apply to the selection, purchase, storage, and application of 
 67.15  agricultural fertilizer and soil nutrients, including the 
 67.16  reasonableness of rules for their on-farm storage. 
 67.17     (d) On behalf of the task force, not later than February 
 67.18  15, 2006, the commissioner of agriculture shall prepare and 
 67.19  deliver to the standing agriculture policy committees of the 
 67.20  senate and the house of representatives a report and list of 
 67.21  recommendations for changes in statutes and rules. 
 67.22     (e) The task force expires June 30, 2006. 
 67.23     [EFFECTIVE DATE.] This section is effective the day 
 67.24  following final enactment for purposes of making membership 
 67.25  appointments to the Agricultural Nutrient Task Force. 
 67.26     Sec. 91.  [STUDY; BIODIESEL FUEL FOR RESIDENTIAL, 
 67.27  COMMERCIAL, AND INDUSTRIAL HEATING.] 
 67.28     (a) From the money available to the commissioner of 
 67.29  commerce for purposes of studies and technical assistance by the 
 67.30  reliability administrator under Minnesota Statutes, section 
 67.31  216C.052, and in conformity with the goals and directives of 
 67.32  Minnesota Statutes, section 16B.325, the reliability 
 67.33  administrator shall perform a comprehensive technical and 
 67.34  economic analysis of the benefits to be derived from using 
 67.35  biodiesel fuel as defined in Minnesota Statutes, section 239.77, 
 67.36  subdivision 1, or biodiesel fuel blends, as a residential, 
 68.1   commercial, and industrial heating fuel.  The analysis must 
 68.2   consider blends ranging from B2 to B100. 
 68.3      (b) Not later than March 15, 2007, the reliability 
 68.4   administrator shall report the results of the study and analysis 
 68.5   to the appropriate standing committees of the Minnesota senate 
 68.6   and house of representatives. 
 68.7      Sec. 92.  [REVISOR'S INSTRUCTION.] 
 68.8      The revisor of statutes shall change cross-references in 
 68.9   Minnesota Statutes and Minnesota Rules to reflect the amendments 
 68.10  and repealers in section 93, paragraph (f), and Minnesota 
 68.11  Statutes, sections 17.452, subdivision 5a; 35.153; and 35.155, 
 68.12  as amended in this article. 
 68.13     Sec. 93.  [REPEALER.] 
 68.14     (a) Minnesota Statutes 2004, section 41B.046, subdivision 
 68.15  3, is repealed effective the day following final enactment. 
 68.16     (b) Minnesota Statutes 2004, sections 18B.065, subdivision 
 68.17  5; and 19.64, subdivision 4a, are repealed. 
 68.18     (c) Minnesota Statutes 2004, section 18H.02, subdivisions 
 68.19  15 and 19, are repealed. 
 68.20     (d) Minnesota Statutes 2004, section 17.983, subdivision 2, 
 68.21  is repealed. 
 68.22     (e) Minnesota Statutes 2004, section 35.0661, subdivision 
 68.23  4, is repealed. 
 68.24     (f) Minnesota Statutes 2004, sections 17.451; and 17.452, 
 68.25  subdivisions 6, 6a, 7, 10, 11, 12, 13, 13a, 14, 15, and 16, are 
 68.26  repealed. 
 68.27     (g) Laws 1986, chapter 398, article 1, section 18, as 
 68.28  amended by Laws 1987, chapter 292, section 37; Laws 1989, 
 68.29  chapter 350, article 16, section 8; Laws 1990, chapter 525, 
 68.30  section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
 68.31  Special Session chapter 2, article 6, section 2; Laws 1995, 
 68.32  chapter 212, article 2, section 11; Laws 1997, chapter 183, 
 68.33  article 3, section 29; Laws 1998, chapter 395, section 7; Laws 
 68.34  1998, chapter 402, section 6; Laws 1999, chapter 214, article 2, 
 68.35  section 19; Laws 2001, chapter 195, article 1, section 23; Laws 
 68.36  2001, First Special Session chapter 1, article 2, section 25; 
 69.1   and Laws 2001, First Special Session chapter 2, section 150, is 
 69.2   repealed. 
 69.3      (h) Minnesota Rules, parts 1560.7700; 1560.7750; 1560.7800; 
 69.4   1560.7850; 1560.7900; 1560.8000; 1560.8100; 1560.8200; 
 69.5   1560.8300; 1560.8400; 1560.8500; 1560.8600; 1560.8700; and 
 69.6   1560.8800, are repealed. 
 69.7                              ARTICLE 2 
 69.8                             STATE BONDS 
 69.9      Section 1.  [RURAL FINANCE AUTHORITY.] 
 69.10     Subdivision 1.  [APPROPRIATION.] $18,000,000 is 
 69.11  appropriated from the bond proceeds fund for the purposes set 
 69.12  forth in the Minnesota Constitution, article XI, section 5, 
 69.13  clause (h), to the Rural Finance Authority to purchase 
 69.14  participation interests in or to make direct agricultural loans 
 69.15  to farmers under Minnesota Statutes, chapter 41B.  This 
 69.16  appropriation is for the beginning farmer program under 
 69.17  Minnesota Statutes, section 41B.039; the loan restructuring 
 69.18  program under Minnesota Statutes, section 41B.04; the 
 69.19  seller-sponsored program under Minnesota Statutes, section 
 69.20  41B.042; the agricultural improvement loan program under 
 69.21  Minnesota Statutes, section 41B.043; and the livestock expansion 
 69.22  loan program under Minnesota Statutes, section 41B.045.  All 
 69.23  debt service on bond proceeds used to finance this appropriation 
 69.24  must be repaid by the Rural Finance Authority under Minnesota 
 69.25  Statutes, section 16A.643.  Loan participations must be priced 
 69.26  to provide full interest and principal coverage and a reserve 
 69.27  for potential losses.  Priority for loans must be given first to 
 69.28  basic beginning farmer loans; second, to seller-sponsored loans; 
 69.29  and third, to agricultural improvement loans. 
 69.30     Subd. 2.  [BOND SALE.] To provide the money appropriated in 
 69.31  this section from the bond proceeds fund, the commissioner of 
 69.32  finance shall sell and issue bonds of the state in an amount up 
 69.33  to $18,000,000 in the manner, upon the terms, and with the 
 69.34  effect prescribed by Minnesota Statutes, sections 16A.631 to 
 69.35  16A.675, and by the Minnesota Constitution, article XI, sections 
 69.36  4 to 7. 
 70.1      [EFFECTIVE DATE.] This section is effective the day 
 70.2   following final enactment.