3rd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to agriculture; changing the scope of the 1.3 value-added agricultural product processing and 1.4 marketing grant program; establishing a certification 1.5 pilot program; including bison in certain definitions 1.6 of livestock; changing meeting provisions and duties 1.7 of the board of grain standards; expanding a 1.8 grants-in-aid program; changing certain fees; making 1.9 technical changes to pesticide and fertilizer laws; 1.10 changing certain reimbursement payments; changing seed 1.11 testing provisions; providing for delegation of 1.12 certain duties; clarifying the scope of certain 1.13 regulation of wholesale produce dealers; updating 1.14 certain food standards; simplifying certain language; 1.15 providing for uniformity in meat and poultry 1.16 inspection; changing certain reporting requirements; 1.17 increasing the amount of livestock dealer bonds; 1.18 changing rural finance authority loan provisions; 1.19 clarifying status of certain grain buying 1.20 transactions; changing certain grain storage 1.21 provisions; changing the corporate and partnership 1.22 farming law; providing alternative seed potato 1.23 regulation in Clearwater county; amending Minnesota 1.24 Statutes 1998, sections 17.101, subdivision 5; 17A.03, 1.25 subdivision 5; 17A.05, subdivision 2; 17B.07; 17B.12; 1.26 18.023, subdivision 3a; 18C.005, subdivision 34, and 1.27 by adding subdivisions; 18C.201, by adding 1.28 subdivisions; 18C.215, subdivisions 1, 2, and by 1.29 adding a subdivision; 18C.411, subdivision 1; 18C.421, 1.30 subdivision 1; 18D.201, subdivision 3; 18D.331, by 1.31 adding a subdivision; 18E.04, subdivision 4; 21.86, 1.32 subdivision 1; 27.01, subdivision 8; 27.19, 1.33 subdivision 1; 31.101, as amended; 31.102, subdivision 1.34 1; 31.103, subdivision 1; 31.104; 31.632; 31.633, 1.35 subdivision 1; 31.651; 31A.02, subdivisions 5, 6, 10, 1.36 13, and 14; 31A.03; 31A.05; 31A.06; 31A.07, 1.37 subdivisions 1 and 2; 31A.08; 31A.10; 31A.13; 31A.16; 1.38 31A.17; 31B.02, subdivision 4; 41B.03, subdivisions 1 1.39 and 2; 41B.039, subdivision 2; 41B.04, subdivision 8; 1.40 41B.042, subdivision 4; 41B.043, subdivision 2; 1.41 41B.045, subdivision 2; 223.16, subdivision 5; 223.17, 1.42 subdivision 5; 223.175; 232.21, by adding a 1.43 subdivision; 232.23, subdivisions 1, 3, and 6; 500.24, 1.44 subdivisions 3a, 3b, 4, and 5; and 500.245, 1.45 subdivision 2; Minnesota Statutes 1999 Supplement, 1.46 sections 17B.15, subdivision 1; 28A.075; 31A.01; 2.1 31A.15, subdivision 1; 31B.07, subdivision 3; 500.24, 2.2 subdivisions 2 and 3; and 500.245, subdivision 1; 2.3 proposing coding for new law in Minnesota Statutes, 2.4 chapter 17. 2.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.6 Section 1. Minnesota Statutes 1998, section 17.101, 2.7 subdivision 5, is amended to read: 2.8 Subd. 5. [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 2.9 MARKETING GRANT PROGRAM.] (a) For purposes of this section: 2.10 (1) "agricultural commodity" means a material produced for 2.11 use in or as food, feed, seed, or fiber and includes crops for 2.12 fiber, food, oilseeds, seeds, livestock, livestock products, 2.13 dairy, dairy products, poultry, poultry products, and other 2.14 products or by-products of the farm produced for the same or 2.15 similar use, except ethanol; and 2.16 (2) "agricultural product processing facility" means land, 2.17 buildings, structures, fixtures, and improvements located or to 2.18 be located in Minnesota and used or operated primarily for the 2.19 processing or production of marketable products from 2.20 agricultural commodities produced in Minnesota. 2.21 (b) The commissioner shall establish and implement a 2.22 value-added agricultural product processing and marketing grant 2.23 program to help farmers finance new cooperatives that organize 2.24 for the purposes of operating agricultural product processing 2.25 facilities and for marketing activities related to the sale and 2.26 distribution of processed agricultural products. 2.27 (c) To be eligible for this program a grantee must: 2.28 (1) be a cooperative organized under chapter 308A; 2.29 (2) certify that all of the control and equity in the 2.30 cooperative is from farmers as defined in section 500.24, 2.31 subdivision 2, who are actively engaged in agricultural 2.32 commodity production; 2.33 (3) be operated primarily for the processing of 2.34 agricultural commodities produced in Minnesota; 2.35 (4) receive agricultural commodities produced primarily by 2.36 shareholders or members of the cooperative; and 2.37 (5) have no direct or indirect involvement in the 3.1 production of agricultural commodities. 3.2 (d) The commissioner may receive applications from and make 3.3 grants up to $50,000 for feasibility, marketing 3.4 analysis, assistance with organizational development, financing 3.5 and managing new cooperatives, product development, development 3.6 of business and marketing plans, and predesign of 3.7 facilities including site analysis, development of bid 3.8 specifications, preliminary blueprints and schematics, and 3.9 completion of purchase agreements and other necessary legal 3.10 documents to eligible cooperatives. The commissioner shall give 3.11 priority to applicants who use the grants for planning costs 3.12 related to an application for financial assistance from the 3.13 United States Department of Agriculture, Rural Business - 3.14 Cooperative Service. 3.15 Sec. 2. [17.1025] [MINNESOTA CERTIFICATION PROGRAM.] 3.16 In cooperation with the University of Minnesota, the 3.17 department of trade and economic development, and the board of 3.18 animal health, the commissioner shall establish a pilot program 3.19 to certify agricultural production methods and agricultural 3.20 products grown or processed within the state to assure the 3.21 integrity of claims made by participating businesses. The 3.22 commissioner may select and cooperate with private organizations 3.23 that have established procedures and safeguards to justify 3.24 claimed characteristics of the production process or the final 3.25 certified product to conduct certification activities for third 3.26 party producers. 3.27 The commissioner may establish guidelines for the 3.28 certification program, which are not subject to chapter 14. The 3.29 commissioner shall submit a report on the pilot program to the 3.30 legislature by February 1, 2001. 3.31 Sec. 3. Minnesota Statutes 1998, section 17A.03, 3.32 subdivision 5, is amended to read: 3.33 Subd. 5. [LIVESTOCK.] "Livestock" means cattle, sheep, 3.34 swine, horses intended for slaughter, mules, farmed cervidae, as 3.35 defined in section 17.451, subdivision 2, llamas, as defined in 3.36 section 17.455, subdivision 2, ratitae, as defined in section 4.1 17.453, subdivision 3, bison (buffalo), and goats. 4.2 Sec. 4. Minnesota Statutes 1998, section 17A.05, 4.3 subdivision 2, is amended to read: 4.4 Subd. 2. [LIVESTOCK DEALERS.] The amount of each livestock 4.5 dealer bond filed with the commissioner shall be not less 4.6 than
$5,000$10,000 or such larger amount as required, based on 4.7 the commissioner's consideration of the principal's financial 4.8 statement, the volume of business reported, or any other factor 4.9 the commissioner deems pertinent for the protection of the 4.10 public. Each such bond shall contain the condition clause 4.11 applicable when the principal buys on commission or as a 4.12 dealer. A livestock dealer's bond shall be executed on a form 4.13 furnished by the commissioner or in accordance with the Packers 4.14 and Stockyards Act, 1921, as amended, (United States Code, title 4.15 7, section 181 et seq.). 4.16 When a bond is executed on a state form furnished by the 4.17 commissioner, the bond shall be for the protection of both the 4.18 buyer and the seller named in the transaction when the principal 4.19 fails to pay when due for livestock purchased or sold for the 4.20 principal's own account or the account of others and shall be 4.21 limited to the protection of claimants whose residence or 4.22 principal place of livestock business is in the state of 4.23 Minnesota at the time of the transaction. If the bond is filed 4.24 on a form in accordance with the Packers and Stockyards Act, the 4.25 bond shall cover claimants regardless of place of residence. 4.26 Sec. 5. Minnesota Statutes 1998, section 17B.07, is 4.27 amended to read: 4.28 17B.07 [OFFICIAL TITLE OF BOARD; MEETINGS.] 4.29 The official title of the board shall be "The Minnesota 4.30 board of grain standards" and it shall have jurisdiction over 4.31 all grain appeal cases brought before it. 4.32 The board shall meet annually on or before June 15,as 4.33 needed and shall establish the grades of all grain subject to 4.34 state inspection which shall be known as the "Minnesota grades," 4.35 and all grain received at any public warehouse shall be graded 4.36 accordingly. Such grades shall not be changed before the next5.1 annual meetingwithout the concurrence of at least two members 5.2 of the board. At the time of establishing Minnesota grades, the 5.3 board also shall adopt such rules, in accordance with the 5.4 Administrative Procedure Act, as it deems necessary for the 5.5 enforcement of this section and section 17B.06. In establishing 5.6 the grades, in addition to the physical qualities of the grain, 5.7 there shall be taken into consideration the milling and 5.8 bread-producing quality of all grain products used as human 5.9 food. The board shall determine the grade, and dockage, if any, 5.10 of all grain in all cases where appeals from the decisions of 5.11 the chief inspector have been taken and for such purpose they 5.12 may request fresh samples of such grain to be furnished directly 5.13 to the board. Dockage shall be considered as being of two5.14 classes; first, that having value and second, that having no5.15 value. At the annual meeting the board shall ascertain and5.16 determine what dockage contained in grain is of value and5.17 publish a list thereof in connection with the publication of the5.18 Minnesota grades. Any foreign content of the grain shall not be5.19 considered in establishing the grade. Whenever grain containing5.20 dockage of value is sold to any public local warehouse or mill,5.21 terminal warehouse, or to any flour mill located in St. Paul,5.22 Minneapolis, or Duluth, or any other point within the state,5.23 which is now or may hereafter be designated as a terminal point,5.24 such sale shall not be considered to include such dockage of5.25 value, but such dockage shall be paid for at its market value or5.26 shall be returned to the vendor of said grain at the option of5.27 the vendee.5.28 Sec. 6. Minnesota Statutes 1998, section 17B.12, is 5.29 amended to read: 5.30 17B.12 [APPEALS; PROCEDURE.] 5.31 Any owner, consignee, or shipper of grain, or any warehouse 5.32 operator, who is dissatisfied with the inspection of grain may 5.33 appeal to the board of grain standards by filing a notice of 5.34 suchappeal with the commissioner and paying a fee ,to be fixed 5.35 by the commissioner , which shall be refunded if the appeal is5.36 sustained. The commissioner shall forthwithpromptly transmit 6.1 the notice to saidthe board of grain standards. The decision 6.2 of saidthe board ,fixing the grade of suchthe grains shall6.3 beis final. 6.4 Sec. 7. Minnesota Statutes 1999 Supplement, section 6.5 17B.15, subdivision 1, is amended to read: 6.6 Subdivision 1. [ADMINISTRATION; APPROPRIATION.] The fees 6.7 for inspection and weighing shall be fixed by the commissioner 6.8 and be a lien upon the grain. The commissioner shall set fees 6.9 for all inspection and weighing in an amount adequate to pay the 6.10 expenses of carrying out and enforcing the purposes of sections 6.11 17B.01 to 17B.23, including the portion of general support costs 6.12 and statewide indirect costs of the agency attributable to that 6.13 function, with a reserve sufficient for up to six months. The 6.14 commissioner shall review the fee schedule twice each year. Fee 6.15 adjustments are not subject to chapter 14. Payment shall be 6.16 required for services rendered. If the grain is in transit, the6.17 fees shall be paid by the carrier and treated as advance6.18 charges, and, if received for storage, the fees shall be paid by6.19 the warehouse operator, and added to the storage charges.6.20 All fees collected and all fines and penalties for 6.21 violation of any provision of this chapter shall be deposited in 6.22 the grain inspection and weighing account, which is created in 6.23 the agricultural fund for carrying out the purpose of sections 6.24 17B.01 to 17B.23. The money in the account, including interest 6.25 earned on the account, is annually appropriated to the 6.26 commissioner of agriculture to administer the provisions of 6.27 sections 17B.01 to 17B.23. When money from any other account is 6.28 used to administer sections 17B.01 to 17B.23, the commissioner 6.29 shall notify the chairs of the agriculture, environment and 6.30 natural resources finance, and ways and means committees of the 6.31 house of representatives; the agriculture and rural development 6.32 and finance committees of the senate; and the finance division 6.33 of the environment and natural resources committee of the senate. 6.34 Sec. 8. Minnesota Statutes 1998, section 18.023, 6.35 subdivision 3a, is amended to read: 6.36 Subd. 3a. [GRANTS TO MUNICIPALITIES.] (a) The commissioner 7.1 may, in the name of the state and within the limit of 7.2 appropriations provided, make grants-in-aid to a municipality 7.3 with an approved disease control program for the partial funding 7.4 of municipal sanitation and reforestation programs to replace 7.5 trees lost to disease or natural disaster. The commissioner may 7.6 make grants-in-aid to any home rule charter or statutory city, 7.7 or any special purpose park and recreation board organized under 7.8 a charter of a city of the first class or any nonprofit 7.9 corporation serving a city of the first class or any county 7.10 having an approved disease control program for the acquisition 7.11 or implementation of a wood utilization or disposal system. 7.12 (b) The commissioner shall promulgate rules for the 7.13 administration of grants authorized by this subdivision. The 7.14 rules shall establish and contain as a minimum: 7.15 (1) Procedures for grant applications; 7.16 (2) Conditions and procedures for the administration of 7.17 grants; 7.18 (3) Criteria of eligibility for grants including, but not 7.19 limited to, those specified in this subdivision; and 7.20 (4) Other matters the commissioner may find necessary to 7.21 the proper administration of the grant program. 7.22 (c) Grants-in-aid payments for wood utilization and 7.23 disposal systems made by the commissioner pursuant to this 7.24 subdivision shall not exceed 50 percent of the total cost of the 7.25 system. Grants for sanitation and reforestation shall be 7.26 combined into one grant program. Grants to any municipality for 7.27 sanitation shall not exceed 50 percent of sanitation costs 7.28 approved by the commissioner including any amount of sanitation 7.29 costs paid by special assessments, ad valorem taxes, federal 7.30 grants or other funds. A municipality shall not specially 7.31 assess a property owner any amount greater than the amount of 7.32 the tree's sanitation cost minus the amount of the tree's 7.33 sanitation cost reimbursed by the commissioner. Grants to 7.34 municipalities for reforestation shall not exceed 50 percent of 7.35 the cost, but not more than $50 per tree, of trees planted 7.36 pursuant to the reforestation program; provided that a 8.1 reforestation grant to any county may include 90 percent of the 8.2 cost, but not more than $60 per tree, of the first 50 trees 8.3 planted on public property in a town not described in 8.4 subdivision 1 and of less than 1,000 population upon the town's 8.5 application to the county. Reforestation grants to towns and 8.6 home rule charter or statutory cities as described in 8.7 subdivision 1 of less than 4,000 population with an approved 8.8 disease control program may include 90 percent of the cost, but 8.9 not more than $60 per tree, of the first 50 trees planted on 8.10 public property with the approval of the 1979 application. The 8.11 governing body of any municipality which receives a 8.12 reforestation grant pursuant to this section shall appoint up to 8.13 seven residents of the municipality or designate an existing 8.14 municipal board or committee to serve as a reforestation 8.15 advisory committee to advise the governing body of the 8.16 municipality in the administration of the reforestation 8.17 program. For the purpose of this subdivision, "cost" shall not 8.18 include the value of a gift or dedication of trees required by a 8.19 municipal ordinance but shall include documented "in kind" 8.20 services or voluntary work for municipalities with a population 8.21 of less than 1,000 according to the most recent federal census. 8.22 (d) Based upon estimates submitted by the municipality to 8.23 the commissioner, which shall state the estimated costs of 8.24 sanitation and reforestation in the succeeding quarter under an 8.25 approved program, the commissioner shall direct quarterly 8.26 advance payments to be made by the state to the municipality 8.27 commencing April 1, 1979. The commissioner shall direct 8.28 adjustment of any overestimate in a succeeding quarter. A 8.29 municipality may elect to receive the proceeds of its sanitation 8.30 and reforestation grants on a periodic cost reimbursement basis. 8.31 (e) A home rule charter or statutory city, or county 8.32 outside the metropolitan area or any municipality, as defined in 8.33 subdivision 1, may submit an application for a grant authorized 8.34 by this subdivision concurrently with its request for approval 8.35 of a disease control program. 8.36 Sec. 9. Minnesota Statutes 1998, section 18C.005, is 9.1 amended by adding a subdivision to read: 9.2 Subd. 1a. [ANHYDROUS AMMONIA.] "Anhydrous ammonia" means a 9.3 compound formed by the chemical combination of the elements 9.4 nitrogen and hydrogen in the molar proportion of one part 9.5 nitrogen to three parts hydrogen. This relationship is shown by 9.6 the chemical formula, NH 3. On a weight basis, the ratio is 14 9.7 parts nitrogen to three parts hydrogen or approximately 82 9.8 percent nitrogen to 18 percent hydrogen. Anhydrous ammonia may 9.9 exist in either a gaseous or a liquid state. 9.10 Sec. 10. Minnesota Statutes 1998, section 18C.005, is 9.11 amended by adding a subdivision to read: 9.12 Subd. 7a. [CUSTOM BLEND FERTILIZER.] "Custom blend 9.13 fertilizer" means a fertilizer blended according to the 9.14 specifications that are furnished to a distributor by a consumer 9.15 prior to blending. 9.16 Sec. 11. Minnesota Statutes 1998, section 18C.005, 9.17 subdivision 34, is amended to read: 9.18 Subd. 34. [SPECIALTY FERTILIZER.] "Specialty fertilizer" 9.19 means a fertilizer labeled and distributed for, but not limited 9.20 to, the following uses: greenhouses, nurseries, home gardens, 9.21 house plants, lawn fertilizer that is not custom applied, 9.22 shrubs, golf courses, municipal parks, and cemeteries. 9.23 Sec. 12. Minnesota Statutes 1998, section 18C.005, is 9.24 amended by adding a subdivision to read: 9.25 Subd. 35a. [TAMPER.] "Tamper" means action taken by a 9.26 person not authorized to take that action by law or by the owner 9.27 or authorized custodian of an anhydrous ammonia container or of 9.28 equipment where anhydrous ammonia is used, stored, distributed, 9.29 or transported. 9.30 Sec. 13. Minnesota Statutes 1998, section 18C.201, is 9.31 amended by adding a subdivision to read: 9.32 Subd. 6. [ANHYDROUS AMMONIA.] (a) A person may not: 9.33 (1) place, have placed, or possess anhydrous ammonia in a 9.34 container that is not designed, constructed, maintained, and 9.35 authorized to contain or transport anhydrous ammonia; 9.36 (2) transport anhydrous ammonia in a container that is not 10.1 designed, constructed, maintained, and authorized to transport 10.2 anhydrous ammonia; 10.3 (3) use, deliver, receive, sell, or transport a container 10.4 designed and constructed to contain anhydrous ammonia without 10.5 the express consent of the owner or authorized custodian of the 10.6 container; or 10.7 (4) tamper with any equipment or facility used to contain, 10.8 store, or transport anhydrous ammonia. 10.9 (b) For the purposes of this subdivision, containers 10.10 designed and constructed for the storage and transport of 10.11 anhydrous ammonia are described in rules adopted under section 10.12 18C.121, subdivision 1, or in Code of Federal Regulations, title 10.13 49. 10.14 Sec. 14. Minnesota Statutes 1998, section 18C.201, is 10.15 amended by adding a subdivision to read: 10.16 Subd. 7. [NO CAUSE OF ACTION.] (a) Except as provided in 10.17 paragraph (b), a person tampering with anhydrous ammonia 10.18 containers or equipment under subdivision 6 shall have no cause 10.19 of action for damages arising out of the tampering against (1) 10.20 the owner or lawful custodian of the container or equipment; (2) 10.21 a person responsible for the installation or maintenance of the 10.22 container or equipment; or (3) a person lawfully selling or 10.23 offering for sale the anhydrous ammonia. 10.24 (b) Paragraph (a) does not apply to a cause of action 10.25 against a person who unlawfully obtained the anhydrous ammonia 10.26 or anhydrous ammonia container or who possesses the anhydrous 10.27 ammonia or anhydrous ammonia container for any unlawful purpose. 10.28 Sec. 15. Minnesota Statutes 1998, section 18C.215, 10.29 subdivision 1, is amended to read: 10.30 Subdivision 1. [PACKAGED FERTILIZERS.] (a) A person may 10.31 not sell or distribute specialty fertilizer in bags or other 10.32 containers in this state unless a label is placed on or affixed 10.33 to the bag or container stating in a clear, legible, and 10.34 conspicuous form the following information: 10.35 (1) the net weight; 10.36 (2) the brand and grade, except the grade is not required 11.1 if primary nutrients are not claimed; 11.2 (3) the guaranteed analysis; 11.3 (4) the name and address of the guarantor; 11.4 (5) directions for use, except directions for use are not 11.5 required for custom blend specialty fertilizers; and 11.6 (6) a derivatives statement. 11.7 (b) A person may not sell or distribute fertilizer for 11.8 agricultural purposes in bags or other containers in this state 11.9 unless a label is placed on or affixed to the bag or container 11.10 stating in a clear, legible, and conspicuous form the 11.11 information listed in paragraph (a), clauses (1) to (4), except: 11.12 (1) the grade is not required if primary nutrients are not 11.13 claimed; and 11.14 (2) the grade on the label is optional if the fertilizer is 11.15 used only for agricultural purposes and the guaranteed analysis 11.16 statement is shown in the complete form as in section 18C.211. 11.17 (c) The labeled information must appear: 11.18 (1) on the front or back side of the container; 11.19 (2) on the upper one-third of the side of the container; 11.20 (3) on the upper end of the container; or 11.21 (4) printed on a tag affixed to the upper end of the 11.22 container. 11.23 (d) If a person sells a custom blend specialty fertilizer 11.24 in bags or other containers, the information required in 11.25 paragraph (a) must either be affixed to the bag or container as 11.26 required in paragraph (c) or be furnished to the customer on an 11.27 invoice or delivery ticket in written or printed form. 11.28 Sec. 16. Minnesota Statutes 1998, section 18C.215, 11.29 subdivision 2, is amended to read: 11.30 Subd. 2. [BLENDED, MIXED, BULK, AND CUSTOM APPLIED 11.31 FERTILIZER.] (a) A distributor who blends or mixes fertilizer or 11.32 distributes fertilizer, for agricultural use, in bulk, must 11.33 furnish each purchaser with an invoice or delivery ticket in 11.34 written or printed form showing: 11.35 (1) the net weight and guaranteed analysis of each of the 11.36 materials used in the mixture and the name and address of the 12.1 guarantor; or 12.2 (2) the net weight and guaranteed analysis of the final 12.3 mixture and the name and address of the guarantor. 12.4 (b) A person may not custom apply specialty fertilizer in 12.5 this state unless a label, invoice, or delivery ticket is given 12.6 to each purchaser stating in a clear, legible, and conspicuous 12.7 form the following information: 12.8 (1) the net weight, which may be listed as the total net 12.9 weight applied or the net weight applied per unit treated; 12.10 (2) the guaranteed analysis; 12.11 (3) the name and address of the guarantor; 12.12 (4) the number of units treated in square feet, acres, or 12.13 another unit of measure; and 12.14 (5) a derivative statement. 12.15 (c) Copies of invoices or delivery tickets must be kept for 12.16 five years after the sale, delivery, or application. 12.17 Sec. 17. Minnesota Statutes 1998, section 18C.215, is 12.18 amended by adding a subdivision to read: 12.19 Subd. 2a. [INFORMATION TO CUSTOMER.] If a person sells a 12.20 custom blend specialty fertilizer in bulk, the information 12.21 required in subdivision 1, paragraph (a), must be furnished to 12.22 the customer on an invoice or delivery ticket in written or 12.23 printed form. 12.24 Sec. 18. Minnesota Statutes 1998, section 18C.411, 12.25 subdivision 1, is amended to read: 12.26 Subdivision 1. [REGISTRATION REQUIRED.] (a) A person may 12.27 not sell brands or grades of specialty fertilizers, soil 12.28 amendments, or plant amendments in this state unless they are 12.29 registered with the commissioner. 12.30 (b) Registration of the materials is not a warranty by the 12.31 commissioner or the state. 12.32 (c) Specialty fertilizers custom applied are exempt from 12.33 the registration requirements of this section. 12.34 (d) Custom blend specialty fertilizers are exempt from the 12.35 registration requirements of this section if the distributor is 12.36 licensed as required by section 18C.415 and the fertilizer is 13.1 labeled as required by section 18C.215. 13.2 Sec. 19. Minnesota Statutes 1998, section 18C.421, 13.3 subdivision 1, is amended to read: 13.4 Subdivision 1. [SEMIANNUAL STATEMENT.] (a) Each licensed 13.5 distributor of fertilizer and each registrant of a specialty 13.6 fertilizer, soil amendment, or plant amendment must file a 13.7 semiannual statement for the periods ending December 31 and June 13.8 30 with the commissioner on forms furnished by the commissioner 13.9 stating the number of net tons and grade of each raw fertilizer 13.10 material distributed or the number of net tons of each brand or 13.11 grade of fertilizer, soil amendment, or plant amendment 13.12 distributed in this state during the reporting period. 13.13 (b) Tonnage reports are not required to be filed with the 13.14 commissioner from licensees who distributed fertilizer solely by 13.15 custom application. 13.16 (c) A report from a licensee who sells to an ultimate 13.17 consumer must be accompanied by records or invoice copies 13.18 indicating the name of the distributor who paid the inspection 13.19 fee, the net tons received, and the grade or brand name of the 13.20 products received. 13.21 (c)(d) The report is due on or before the last day of the 13.22 month following the close of each reporting period of each 13.23 calendar year. 13.24 (d)(e) The inspection fee at the rate stated in section 13.25 18C.425, subdivision 6, must accompany the statement. 13.26 Sec. 20. Minnesota Statutes 1998, section 18D.201, 13.27 subdivision 3, is amended to read: 13.28 Subd. 3. [INSPECTION REQUESTS BY OTHERS.] (a) A person who 13.29 believes that a violation of this chapter has occurred may 13.30 request an inspection by giving notice to the commissioner of 13.31 the violation. The notice must be in writing, state with 13.32 reasonable particularity the grounds for the notice, and be 13.33 signed by the person making the request. If the pesticide 13.34 application is alleged to have damaged a crop or vegetation, the 13.35 request for inspection must be submitted within 45 days of the 13.36 date of the pesticide application. 14.1 (b) If after receiving a notice of violation the 14.2 commissioner reasonably believes that a violation has occurred, 14.3 the commissioner shall make a special inspection in accordance 14.4 with the provisions of this section as soon as practicable, to 14.5 determine if a violation has occurred. 14.6 (c) An inspection conducted pursuant to a notice under this 14.7 subdivision may cover an entire site and is not limited to the 14.8 portion of the site specified in the notice. If the 14.9 commissioner determines that reasonable grounds to believe that 14.10 a violation occurred do not exist, the commissioner must notify 14.11 the person making the request in writing of the determination. 14.12 Sec. 21. Minnesota Statutes 1998, section 18D.331, is 14.13 amended by adding a subdivision to read: 14.14 Subd. 5. [ANHYDROUS AMMONIA CONTAINMENT, TAMPERING, THEFT, 14.15 TRANSPORT.] A person who knowingly violates section 18C.201, 14.16 subdivision 6, is guilty of a felony and may be sentenced to 14.17 imprisonment for not more than five years, or to payment of a 14.18 fine of not more than $50,000, or both. 14.19 Sec. 22. Minnesota Statutes 1998, section 18E.04, 14.20 subdivision 4, is amended to read: 14.21 Subd. 4. [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 14.22 a person that is eligible for reimbursement or payment under 14.23 subdivisions 1, 2, and 3 from the agricultural chemical response 14.24 and reimbursement account for: 14.25 (1) 90 percent of the total reasonable and necessary 14.26 corrective action costs greater than $1,000 and less than or 14.27 equal to $100,000; and14.28 (2) 100 percent of the total reasonable and necessary 14.29 corrective action costs greater than $100,000 but less than or 14.30 equal to $200,000; 14.31 (3) 80 percent of the total reasonable and necessary 14.32 corrective action costs greater than $200,000 but less than or 14.33 equal to $300,000; and 14.34 (4) 60 percent of the total reasonable and necessary 14.35 corrective action costs greater than $300,000 but less than or 14.36 equal to $350,000. 15.1 (b) A reimbursement or payment may not be made until the 15.2 board has determined that the costs are reasonable and are for a 15.3 reimbursement of the costs that were actually incurred. 15.4 (c) The board may make periodic payments or reimbursements 15.5 as corrective action costs are incurred upon receipt of invoices 15.6 for the corrective action costs. 15.7 (d) Money in the agricultural chemical response and 15.8 reimbursement account is appropriated to the commissioner to 15.9 make payments and reimbursements directed by the board under 15.10 this subdivision. 15.11 (e) The board may not make reimbursement greater than the 15.12 maximum allowed under paragraph (a) for all incidents on a 15.13 single site which: 15.14 (1) were not reported at the time of release but were 15.15 discovered and reported after July 1, 1989; and 15.16 (2) may have occurred prior to July 1, 1989, as determined 15.17 by the commissioner. 15.18 (f) The board may only reimburse an eligible person for 15.19 separate incidents within a single site if the commissioner 15.20 determines that each incident is completely separate and 15.21 distinct in respect of location within the single site or time 15.22 of occurrence. 15.23 Sec. 23. Minnesota Statutes 1998, section 21.86, 15.24 subdivision 1, is amended to read: 15.25 Subdivision 1. [PROHIBITIONS.] A person may not advertise 15.26 or sell any agricultural, vegetable, flower, or tree and shrub 15.27 seed if: 15.28 (a) Except as provided in clauses (1) to (3), a test to 15.29 determine the percentage of germination required by sections 15.30 21.82 and 21.83 has not been completed within a nine-month 15.31 period, exclusive of the calendar month in which the test was 15.32 completed. 15.33 (1) When advertised or offered for sale as agricultural 15.34 seed, native grass and forb seeds must have been tested for 15.35 percentage of germination as required by section 21.82 within a 15.36 14-month period, exclusive of the calendar month in which the 16.1 test was completed. 16.2 (2) This prohibition does not apply to tree, shrub, 16.3 agricultural, or vegetable seeds packaged in hermetically sealed 16.4 containers. Seeds packaged in hermetically sealed containers 16.5 under the conditions defined by rule may be offered for sale for 16.6 a period of 36 months after the last day of the month that the 16.7 seeds were tested for germination prior to packaging. 16.8 (3) If seeds in hermetically sealed containers are offered 16.9 for sale more than 36 months after the last day of the month in 16.10 which they were tested prior to packaging, they must be retested 16.11 within a nine-month period, exclusive of the calendar month in 16.12 which the retest was completed; 16.13 (b) It is not labeled in accordance with sections 21.82 and 16.14 21.83 or has false or misleading labeling; 16.15 (c) False or misleading advertisement has been used in 16.16 respect to its sale; 16.17 (d) It contains prohibited noxious weed seeds; 16.18 (e) It consists of or contains restricted noxious weed 16.19 seeds in excess of 25 seeds per pound or in excess of the number 16.20 declared on the label attached to the container of the seed or 16.21 associated with the seed; 16.22 (f) It contains more than one percent by weight of all weed 16.23 seeds; 16.24 (g) It contains less than the stated net weight of 16.25 contents; 16.26 (h) It contains less than the stated number of seeds in the 16.27 container; 16.28 (i) It contains any labeling, advertising, or other 16.29 representation subject to sections 21.82 and 21.83 representing 16.30 the seed to be certified unless: 16.31 (1) it has been determined by a seed certifying agency that 16.32 the seed conformed to standards of purity and identity as to 16.33 kind, species, subspecies, or variety, and also that tree seed 16.34 was found to be of the origin and elevation claimed, in 16.35 compliance with the rules pertaining to the seed; and 16.36 (2) the seed bears an official label issued for it by a 17.1 seed certifying agency stating that the seed is of a certified 17.2 class and a specified kind, species, subspecies, or variety; 17.3 (j) It is labeled with a variety name but not certified by 17.4 an official seed certifying agency when it is a variety for 17.5 which a United States certificate of plant variety protection 17.6 has been granted under United States Code, title 7, sections 17.7 2481 to 2486, specifying sale by variety name only as a class of 17.8 certified seed. Seed from a certified lot may be labeled as to 17.9 variety name when used in a blend or mixture by or with approval 17.10 of the owner of the variety; or 17.11 (k) The person whose name appears on the label does not 17.12 have complete records including a file sample of each lot of 17.13 agricultural, vegetable, flower, tree or shrub seed sold in this 17.14 state as required in section 21.84. 17.15 Sec. 24. Minnesota Statutes 1998, section 27.01, 17.16 subdivision 8, is amended to read: 17.17 Subd. 8. [WHOLESALE PRODUCE DEALER.] (a) "Wholesale 17.18 produce dealer" or "dealer at wholesale" means: 17.19 (1) a person who buys from or contracts to buywith a 17.20 seller for production or sale of produce in wholesale lots for 17.21 resale; 17.22 (2) a person engaging in the business of a broker or agent, 17.23 who handles or deals in produce for a commission or fee; 17.24 (3) a truck owner or operator who buys produce in wholesale 17.25 lots for resale; and 17.26 (4) a person engaged in the business of a cannery, food 17.27 manufacturer, or food processor, who purchases produce in 17.28 wholesale lots as a part of that business. 17.29 (b) For purposes of paragraph (a), "wholesale lots" means 17.30 purchases from Minnesota sellers must total more than $12,000 17.31 annually. 17.32 (c) "Wholesale produce dealer" or "dealer at wholesale" 17.33 does not include: 17.34 (1) a truck owner and operator who regularly engages in the 17.35 business of transporting freight, including produce, for a 17.36 transportation fee only, and who does not purchase, contract to 18.1 purchase, or sell produce; 18.2 (2) a marketing cooperative association in which 18.3 substantially all of the voting stock is held by patrons who 18.4 patronize the association and in which at least 75 percent of 18.5 the business of the association is transacted with member or 18.6 stockholder patrons; 18.7 (3) a person who purchases Minnesota seasonally grown 18.8 perishable fresh fruits and vegetables, and pays cash, including 18.9 lawful money of the United States, a cashier's check, a 18.10 certified check, or a bank draft; 18.11 (4) a person who handles and deals in only canned, 18.12 packaged, or processed produce or packaged dairy products that 18.13 are no longer perishable as determined by the commissioner by 18.14 rule; or 18.15 (5) retail merchants who purchase produce, defined in 18.16 subdivision 2, directly from farmers, which in the aggregate 18.17 does not exceed $500 per month. 18.18 Sec. 25. Minnesota Statutes 1998, section 27.19, 18.19 subdivision 1, is amended to read: 18.20 Subdivision 1. [PROHIBITED ACTS.] (a) A person subject to 18.21 the provisions of this section and sections 27.01 to 27.14 may 18.22 not: 18.23 (1) operate or advertise to operate as a dealer at 18.24 wholesale without a license; 18.25 (2) make any false statement or report as to the grade, 18.26 condition, markings, quality, or quantity of produce, as defined 18.27 in section 27.069, received or delivered, or act in any manner 18.28 to deceive a consignor or purchaser; 18.29 (3) refuse to accept a shipment contracted for by the 18.30 person, unless the refusal is based upon the showing of a state 18.31 inspection certificate secured with reasonable promptness after 18.32 the receipt of the shipment showing that the kind and quality of 18.33 produce, as defined in section 27.069, is other than that 18.34 purchased or ordered by the person; 18.35 (4) fail to account or make a settlement for produce within 18.36 the required time; 19.1 (5) violate or fail to comply with the terms or conditions 19.2 of a contract entered into by the person for the purchase, 19.3 production, or sale of produce; 19.4 (6) purchase for a person's own account any produce 19.5 received on consignment, either directly or indirectly, without 19.6 the consent of the consignor; 19.7 (7) issue a false or misleading market quotation, or cancel 19.8 a quotation during the period advertised by the person; 19.9 (8) increase the sales charges on produce shipped to the 19.10 person by means of "dummy" or fictitious sales; 19.11 (9) receive decorative forest products and the products of 19.12 farms and waters from foreign states or countries for sale or 19.13 resale, either within or outside of the state, and give the 19.14 purchaser the impression, through any method of advertising or 19.15 description, that the produce is of Minnesota origin; 19.16 (10) fail to notify in writing all suppliers of produce of 19.17 the protection afforded to suppliers by the person's licensee 19.18 bond, including: availability of a bond, notice requirements, 19.19 and any other conditions of the bond; 19.20 (11) make a false statement to the commissioner on an 19.21 application for license or bond or in response to written 19.22 questions from the commissioner regarding the license or bond; 19.23 (12) commit to pay and not pay in full for all produce 19.24 committed for. A processor may not pay an amount less than the 19.25 full contract price if the crop produced is satisfactory for 19.26 processing and is not harvested for reasons within the 19.27 processor's control. If the processor sets the date for 19.28 planting, then bunching, unusual yields, and a processor's 19.29 inability or unwillingness to harvest must be considered to be 19.30 within the processor's control. Under this clause growers must 19.31 be compensated for passed acreage at the same rate for grade and 19.32 yield as they would have received had the crop been harvested in 19.33 a timely manner minus any contractual provision for green manure 19.34 or feed value. Both parties are excused from payment or 19.35 performance for crop conditions that are beyond the control of 19.36 the parties; or 20.1 (13) discriminate between different sections, localities, 20.2 communities, or cities, or between persons in the same 20.3 community, by purchasing produce from farmers of the same grade, 20.4 quality, and kind, at different prices, except that price 20.5 differentials are allowed if directly related to the costs of 20.6 transportation, shipping, and handling of the produce and a 20.7 person is allowed to meet the prices of a competitor in good 20.8 faith, in the same locality for the same grade, quality, and 20.9 kind of produce. A showing of different prices by the 20.10 commissioner is prima facie evidence of discrimination. 20.11 (b) A separate violation occurs with respect to each 20.12 different person involved, each purchase or transaction 20.13 involved, and each false statement. 20.14 Sec. 26. Minnesota Statutes 1999 Supplement, section 20.15 28A.075, is amended to read: 20.16 28A.075 [DELEGATION TO LOCAL BOARD OF HEALTH.] 20.17 (a) At the request of a local board of health that licensed 20.18 and inspected grocery and convenience stores on January 1, 1999, 20.19 the commissioner must enter into agreements before January 1, 20.20 2001, with local boards of health to delegate to the appropriate 20.21 local board of health the licensing and inspection duties of the 20.22 commissioner pertaining to retail food handlers that are grocery 20.23 or convenience stores. At the request of a local board of 20.24 health that licensed and inspected part of any grocery or 20.25 convenience store on January 1, 1999, the commissioner must 20.26 enter into agreements before July 1, 2001, with local boards of 20.27 health to delegate to the appropriate local board of health the 20.28 licensing and inspection duties of the commissioner pertaining 20.29 to retail food handlers that are grocery or convenience stores. 20.30 Retail grocery or convenience stores inspected under the state 20.31 meat inspection program of chapter 31A are exempt from 20.32 delegation. 20.33 (b) A local board of health must adopt an ordinance 20.34 consistent with the Minnesota Food Code, Minnesota Rules, 20.35 chapter 4626, for all of its jurisdiction to regulate grocery 20.36 and convenience stores and the ordinance (Food Code) must not be 21.1 in conflict with standards set in law or rule. 21.2 Sec. 27. Minnesota Statutes 1998, section 31.101, as 21.3 amended by Laws 1999, chapter 231, section 55, is amended to 21.4 read: 21.5 31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 21.6 Subdivision 1. [AUTHORITY.] The authority tocommissioner 21.7 may promulgate and amend rules for the efficient administration 21.8 and enforcement of the Minnesota Food Law is vested in the21.9 commissioner and is in addition to authority granted in sections21.10 31.10, 31.11, and 31.12. SuchThe rules when applicable shall21.11 must conform, insofar as practicable and consistent with state 21.12 law, with those promulgated under the federal law. This 21.13 rulemaking authority is in addition to that in sections 31.10, 21.14 31.11, and 31.12. Rules adopted under this section may be 21.15 amended by the commissioner under chapter 14, subject to the 21.16 limitation in subdivision 7. 21.17 Subd. 2. [HEARINGS.] Hearings authorized or required by 21.18 law shallmust be conducted by the commissioner or suchan 21.19 officer, agent, or employee asthe commissioner may designate21.20 designates for the purpose. 21.21 Subd. 3. [ FEDERALPESTICIDE CHEMICAL REGULATIONSRULES.] 21.22 Federal pesticide chemical regulations and amendments theretoin 21.23 effect on April 1, 19972000, adopted under authority of the 21.24 Federal Insecticide, Fungicide and Rodenticide Act, as provided 21.25 by United States Code, title 7, chapter 6, are the pesticide 21.26 chemical rules in this state. Such rules may be amended by the21.27 commissioner proceeding in accordance with the Administrative21.28 Procedure Act.21.29 Subd. 4. [ FEDERALFOOD ADDITIVE REGULATIONSRULES.] 21.30 Federal food additive regulations and amendments theretoin 21.31 effect on April 1, 19972000, as provided by Code of Federal 21.32 Regulations, title 21, parts 170 to 199, are the food additive 21.33 rules in this state. Such rules may be amended by the21.34 commissioner proceeding in accordance with the Administrative21.35 Procedure Act.21.36 Subd. 5. [ FEDERALCOLOR ADDITIVE REGULATIONSRULES.] 22.1 Federal color additive regulations and amendments theretoin 22.2 effect on April 1, 19972000, as provided by Code of Federal 22.3 Regulations, title 21, parts 70 to 82, are the color additive 22.4 rules in this state. Such rules may be amended by the22.5 commissioner proceeding in accordance with the Administrative22.6 Procedure Act.22.7 Subd. 6. [ FEDERALSPECIAL DIETARY USE REGULATIONSRULES.] 22.8 Federal special dietary use regulations and amendments thereto22.9 in effect on April 1, 19972000, as provided by Code of Federal 22.10 Regulations, title 21, parts 104 and 105, are the special 22.11 dietary use rules in this state. Such rules may be amended by22.12 the commissioner proceeding in accordance with the22.13 Administrative Procedure Act.22.14 Subd. 7. [FAIR PACKAGING AND LABELING ACT REGULATIONS22.15 RULES.] Federal regulations and amendments theretoin effect on 22.16 April 1, 19972000, adopted under the Fair Packaging and 22.17 Labeling Act, as provided by United States Code, title 15, 22.18 sections 1451 to 1461, are the rules in this state. Such rules22.19 may be amended by the commissioner proceeding in accordance with22.20 the Administrative Procedure Act; provided thatThe commissioner 22.21 shallmay not adopt amendments to suchthese rules or adopt 22.22 other rules which are contrary to the labeling requirements for 22.23 the net quantity of contents required pursuant to section 4 of 22.24 the Fair Packaging and Labeling Act and the 22.25 regulations promulgated thereunderadopted under that act. 22.26 Subd. 8. [FOOD AND DRUGS REGULATIONSRULES.] Applicable 22.27 federal regulations including recodification contained in Code 22.28 of Federal Regulations, title 21, parts 0-1299, Food and Drugs, 22.29 in effect April 1, 19972000, and not otherwise adopted herein, 22.30 also are adopted as food rules of this state. Such rules may be22.31 amended by the commissioner in accordance with the22.32 Administrative Procedure Act.22.33 Subd. 9. [FISHERY PRODUCTS RULES.] Federal regulations in 22.34 effect on April 1, 19972000, as provided by Code of Federal 22.35 Regulations, title 50, parts 260 to 267, are incorporated as 22.36 part of the fishery products rules in this state for state 23.1 inspections performed under a cooperative agreement with the 23.2 United States Department of Commerce, National Marine Fisheries 23.3 Service. The rules may be amended by the commissioner under23.4 chapter 14.23.5 Subd. 10. [MEAT AND POULTRY RULES.] Federal regulations in 23.6 effect on JanuaryApril 1, 19992000, as provided by Code of 23.7 Federal Regulations, title 9, part 301, et seq., are 23.8 incorporated as part of the meat and poultry rules in this 23.9 state. The rules may be amended by the commissioner under23.10 chapter 14.23.11 Subd. 11. [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 23.12 OTHER PRODUCTS.] Federal regulations in effect on April 1, 23.13 19972000, as provided by Code of Federal Regulations, title 7, 23.14 parts 51 and 52, are incorporated as part of the rules in this 23.15 state. The rules may be amended by the commissioner under23.16 chapter 14.23.17 Sec. 28. Minnesota Statutes 1998, section 31.102, 23.18 subdivision 1, is amended to read: 23.19 Subdivision 1. [IDENTITY, QUANTITY, AND FILL OF CONTAINER 23.20 RULES.] Federal definitions and standards of identity, quality, 23.21 and fill of container and amendments thereto,in effect on April 23.22 1, 19972000, adopted under authority of the federal act, are 23.23 the definitions and standards of identity, quality, and fill of 23.24 container in this state. SuchThe rules may be amended by the 23.25 commissioner proceeding in accordance with the Administrative23.26 Procedure Actunder chapter 14. 23.27 Sec. 29. Minnesota Statutes 1998, section 31.103, 23.28 subdivision 1, is amended to read: 23.29 Subdivision 1. [CONSUMER COMMODITIES LABELING RULES.] All 23.30 labels of consumer commodities shallmust conform with the 23.31 requirements for the declaration of net quantity of contents of 23.32 section 4 of the Fair Packaging and Labeling Act (United States 23.33 Code, title 15, section 1451 et seq.) and federal regulations in 23.34 effect on April 1, 19972000, promulgated pursuant23.35 theretoadopted under authority of that act, except to the 23.36 extent that the commissioner shall exercise authority to amend24.1 suchamends the rules in accordance with the Administrative24.2 Procedure Actunder chapter 14. Consumer commodities exempted 24.3 from the requirements of section 4 of the Fair Packaging and 24.4 Labeling Act shallare also beexempt from this subdivision. 24.5 Sec. 30. Minnesota Statutes 1998, section 31.104, is 24.6 amended to read: 24.7 31.104 [FOOD LABELING EXEMPTION RULES.] 24.8 The commissioner shall promulgate rules exempting from any 24.9 labeling requirement food which is, in accordance with the 24.10 practice of the trade, to be processed, labeled or repacked in 24.11 substantial quantities at establishments other than those where 24.12 originally processed or packed, on condition that such food is 24.13 not adulterated or misbranded upon removal from such processing, 24.14 labeling or repacking establishment. 24.15 Federal regulations in effect on April 1, 19972000, 24.16 adopted under authority of the federal act relating to such 24.17 exemptions are effective in this state unless the commissioner 24.18 shall exercise authority to amend such regulationsamends them. 24.19 The commissioner also may promulgate amendments toamend 24.20 existing rules concerning exemptions in accordance with the24.21 Administrative Procedure Actunder chapter 14. 24.22 Sec. 31. Minnesota Statutes 1998, section 31.632, is 24.23 amended to read: 24.24 31.632 [MINNESOTA APPROVED MEATS; USE OF LABEL.] 24.25 The commissioner may authorize, pursuant to rules 24.26 promulgated in the manner provided by law, the use of the label 24.27 "Minnesota Approved" on meats and, meat products, poultry, and 24.28 poultry products processed by persons licensed under sections 24.29 31.51 to 31.58, or by establishments under the inspection 24.30 program of the United States Department of Agriculture, if the 24.31 ingredients of suchthe poultry, poultry products, meats, and 24.32 meat products are meat, meat by-products, poultry, poultry 24.33 products, or meat food products which have been inspected and 24.34 passed by the United States Department of Agriculture, or the 24.35 Minnesota department of agriculture and further if suchthe 24.36 poultry, poultry products, meats, and meat products, after such 25.1 processing, are sound, healthful, wholesome, and fit for human 25.2 food. A person or establishment desiring to label poultry, 25.3 poultry products, meats, and meat products as provided in this 25.4 section shall apply to the commissioner for authority to do so. 25.5 The commissioner shall grant this authority to the applicant if 25.6 the applicant complies with the provisions of this section and 25.7 rules promulgated pursuant to this section. A person using the 25.8 label "Minnesota Approved" on poultry, poultry products, meat 25.9 and, or meat products contrary to law is guilty of a misdemeanor. 25.10 Sec. 32. Minnesota Statutes 1998, section 31.633, 25.11 subdivision 1, is amended to read: 25.12 Subdivision 1. [MENU REQUIREMENT.] Any restaurant, eating 25.13 place, or other establishment serving meat or poultry in any 25.14 form to the public , which meatthat has any filler or meat or 25.15 poultry substitute added to it or incorporated in it, shall 25.16 clearly and prominently indicate on its menu or bill of fare the 25.17 meat entrees that contain filler or meat or poultry substitutes. 25.18 Sec. 33. Minnesota Statutes 1998, section 31.651, is 25.19 amended to read: 25.20 31.651 [KOSHER PRODUCTS, UNLAWFUL SALE.] 25.21 Subdivision 1. [KOSHER REQUIREMENTS.] No person shall sell 25.22 or expose for sale any poultry, poultry products, meat, or meat 25.23 preparations and falsely represent the same to be kosher, 25.24 whether such poultry, poultry products, meat, or meat 25.25 preparations be raw or prepared for human consumption; nor shall 25.26 the person permit any such products or the contents of any 25.27 package or container to be labeled or to have inscribed thereon 25.28 the word "kosher" in any language unless such products shall 25.29 have been prepared or processed in accordance with orthodox 25.30 Hebrew religious requirements sanctioned by a recognized 25.31 rabbinical council. 25.32 Subd. 2. [NOTICE REQUIRED.] Any person who sells or 25.33 exposes for sale in the same place of business both kosher and 25.34 nonkosher poultry, meat, or meat preparations, either raw or 25.35 prepared for human consumption, shall indicate on window signs 25.36 and all display advertising, in block letters at least four 26.1 inches in height, "kosher and nonkosher meat and poultry sold 26.2 here"; and shall display over each kind of poultry, meat, or 26.3 meat preparation so exposed a sign, in block letters at least 26.4 two inches in height, reading, "kosher meat," or"kosher 26.5 poultry," "nonkosher meat," or "nonkosher poultry," as the case 26.6 may be; provided that subdivision 2 shall not apply to persons 26.7 selling or offering for sale kosher poultry, poultry products, 26.8 meats, or meat products solely in separate consumer packages, 26.9 which have been prepackaged and properly labeled "kosher." 26.10 Subd. 3. [PRESUMPTION.] Possession of nonkosher poultry, 26.11 poultry products, meat, or meat preparations in any place of 26.12 business shall be presumptive evidence that the person in 26.13 possession thereof exposes the same for sale. 26.14 Subd. 4. [PRIMA FACIE EVIDENCE.] The absence of a duly 26.15 sanctioned kosher "plumba," mark, stamp, tag, brand, or label 26.16 from any poultry, poultry products, meat, meat preparation, or 26.17 food product shall be prima facie evidence that such product is 26.18 nonkosher. 26.19 Sec. 34. Minnesota Statutes 1999 Supplement, section 26.20 31A.01, is amended to read: 26.21 31A.01 [POLICY.] 26.22 Meat, poultry, poultry food products, and meat food 26.23 products are an important source of the nation's total supply of 26.24 food. It is essential in the public interest that the health 26.25 and welfare of consumers be protected by assuring that meat, 26.26 poultry, and meat food products distributed to them are 26.27 wholesome, unadulterated, and properly marked, labeled, and 26.28 packaged. Unwholesome, adulterated, or misbranded meat, 26.29 poultry, poultry food products, or meat food products injure the 26.30 public welfare, destroy markets for wholesome, unadulterated, 26.31 and properly labeled and packaged meat, poultry, poultry food 26.32 products, and meat food products, and result in losses to 26.33 livestock producers and processors of meat, poultry, poultry 26.34 food products, and meat food products and injury to consumers. 26.35 Unwholesome, adulterated, mislabeled, or deceptively packaged 26.36 articles can be sold at lower prices and compete unfairly with 27.1 wholesome, unadulterated, and properly labeled and packaged 27.2 articles, to the detriment of consumers and the general public. 27.3 Regulation by the commissioner and cooperation between this 27.4 state and the United States under this chapter are appropriate 27.5 to protect the health and welfare of consumers and accomplish 27.6 the purposes of this chapter. 27.7 Sec. 35. Minnesota Statutes 1998, section 31A.02, 27.8 subdivision 5, is amended to read: 27.9 Subd. 5. [CUSTOM PROCESSING.] "Custom processing" means 27.10 slaughtering, eviscerating, dressing, or processing an animal or 27.11 processing meat products or poultry products for the owner of 27.12 the animal or of the meat products and poultry products, if all 27.13 meat products or poultry products derived from the custom 27.14 operation are returned to the owner of the animal or of the meat 27.15 products or poultry products. No person may sell, offer for 27.16 sale, or possess with intent to sell meat derived from custom 27.17 processing. 27.18 Sec. 36. Minnesota Statutes 1998, section 31A.02, 27.19 subdivision 6, is amended to read: 27.20 Subd. 6. [MEAT BROKER.] "Meat broker" means a person in 27.21 the business of buying or selling carcasses, parts of carcasses, 27.22 meat, ormeat food products, poultry, or poultry products of 27.23 animals on commission, or otherwise negotiating purchases or 27.24 sales of those articles other than for the person's own account 27.25 or as an employee of another person, firm, or corporation. 27.26 Sec. 37. Minnesota Statutes 1998, section 31A.02, 27.27 subdivision 10, is amended to read: 27.28 Subd. 10. [MEAT FOOD PRODUCT; POULTRY FOOD PRODUCT.] "Meat 27.29 food product" or "poultry food product" means a product usable 27.30 as human food and made wholly or in part from meat or poultry or 27.31 a portion of the carcass of cattle, sheep, swine, poultry, 27.32 farmed cervidae, as defined in section 17.451, subdivision 2, 27.33 llamas, as defined in section 17.455, subdivision 2, ratitae, as 27.34 defined in section 17.453, subdivision 3, or goats. "Meat food 27.35 product" or "poultry food product" does not include products 27.36 which contain meat, poultry, or other portions of the carcasses 28.1 of cattle, sheep, swine, farmed cervidae, llamas, ratitae, or 28.2 goats only in a relatively small proportion or that historically 28.3 have not been considered by consumers as products of the meat 28.4 food industry, and which are exempted from definition as a meat 28.5 food product or poultry food product by the commissioner under 28.6 the conditions the commissioner prescribes to assure that the 28.7 meat or other portions of carcasses contained in the products 28.8 are not adulterated and that the products are not represented as 28.9 meat food products or poultry food products. 28.10 "Meat food product," as applied to products of equines, has 28.11 a meaning comparable to that for cattle, sheep, swine, farmed 28.12 cervidae, llamas, ratitae, and goats. 28.13 Sec. 38. Minnesota Statutes 1998, section 31A.02, 28.14 subdivision 13, is amended to read: 28.15 Subd. 13. [ADULTERATED.] "Adulterated" means a carcass, 28.16 part of a carcass, meat, poultry, poultry food product, or meat 28.17 food product under one or more of the following circumstances: 28.18 (a) if it bears or contains a poisonous or harmful 28.19 substance which may render it injurious to health; but if the 28.20 substance is not an added substance, the article is not 28.21 adulterated if the quantity of the substance in or on the 28.22 article does not ordinarily make it injurious to health; 28.23 (b) if it bears or contains, by administration of a 28.24 substance to the live animal or otherwise, an added poisonous or 28.25 harmful substance, other than (1) a pesticide chemical in or on 28.26 a raw agricultural commodity; (2) a food additive; or (3) a 28.27 color additive, which may, in the judgment of the commissioner, 28.28 make the article unfit for human food; 28.29 (c) if it is, in whole or in part, a raw agricultural 28.30 commodity that bears or contains a pesticide chemical which is 28.31 unsafe within the meaning of section 408 of the Federal Food, 28.32 Drug, and Cosmetic Act; 28.33 (d) if it bears or contains a food additive which is unsafe 28.34 within the meaning of section 409 of the Federal Food, Drug, and 28.35 Cosmetic Act; 28.36 (e) if it bears or contains a color additive which is 29.1 unsafe within the meaning of section 706 of the Federal Food, 29.2 Drug, and Cosmetic Act; 29.3 (f) if it contains a filthy, putrid, or decomposed 29.4 substance or is for any other reason unfit for human food; 29.5 (g) if it has been prepared, packed, or held under 29.6 unsanitary conditions so that it may be contaminated with filth 29.7 or harmful to health; 29.8 (h) if it is wholly or partly the product of an animal 29.9 which has died otherwise than by slaughter; 29.10 (i) if its container is wholly or partly composed of a 29.11 poisonous or harmful substance which may make the contents 29.12 harmful to health; 29.13 (j) if it has been intentionally subjected to radiation, 29.14 unless the use of the radiation conformed with a regulation or 29.15 exemption in effect under section 409 of the Federal Food, Drug, 29.16 and Cosmetic Act; 29.17 (k) if a valuable constituent has been wholly or partly 29.18 omitted or removed from it; if a substance has been wholly or 29.19 partly substituted for it; if damage or inferiority has been 29.20 concealed; or if a substance has been added to it or mixed or 29.21 packed with it so as to increase its bulk or weight, reduce its 29.22 quality or strength, or make it appear better or of greater 29.23 value than it is; or 29.24 (l) if it is margarine containing animal fat and any of the 29.25 raw material used in it wholly or partly consisted of a filthy, 29.26 putrid, or decomposed substance. 29.27 Sec. 39. Minnesota Statutes 1998, section 31A.02, 29.28 subdivision 14, is amended to read: 29.29 Subd. 14. [MISBRANDED.] "Misbranded" means a carcass, part 29.30 of a carcass, meat, poultry, poultry food product, or meat food 29.31 product under one or more of the following circumstances: 29.32 (a) if its labeling is false or misleading; 29.33 (b) if it is offered for sale under the name of another 29.34 food; 29.35 (c) if it is an imitation of another food, unless its label 29.36 bears, in type of uniform size and prominence, the word 30.1 "imitation" followed immediately by the name of the food 30.2 imitated; 30.3 (d) if its container is made, formed, or filled so as to be 30.4 misleading; 30.5 (e) if its package or other container does not have a label 30.6 showing (1) the name and place of business of the manufacturer, 30.7 packer, or distributor; and (2) an accurate statement of the 30.8 quantity of the contents in terms of weight, measure, or 30.9 numerical count subject to reasonable variations permitted and 30.10 exemptions for small packages established in rules of the 30.11 commissioner; 30.12 (f) if a word, statement, or other information required by 30.13 or under authority of this chapter to appear on the label or 30.14 other labeling is not prominently and conspicuously placed on 30.15 the label or labeling in terms that make it likely to be read 30.16 and understood by the ordinary individual under customary 30.17 conditions of purchase and use; 30.18 (g) if it is represented as a food for which a definition 30.19 and standard of identity or composition has been prescribed by 30.20 rules of the commissioner under section 31A.07, unless (1) it 30.21 conforms to the definition and standard, and (2) its label bears 30.22 the name of the food specified in the definition and standard 30.23 and, if required by the rules, the common names of optional 30.24 ingredients, other than spices, flavoring, and coloring, present 30.25 in the food; 30.26 (h) if it is represented as a food for which a standard of 30.27 fill of container has been prescribed by rules of the 30.28 commissioner under section 31A.07, and it falls below the 30.29 applicable standard of fill of container, unless its label 30.30 bears, in the manner and form the rules specify, a statement 30.31 that it falls below the standard; 30.32 (i) if it is not subject to paragraph (g), unless its label 30.33 bears (1) the usual name of the food, if there is one, and (2) 30.34 in case it is fabricated from two or more ingredients, the 30.35 common or usual name of each ingredient; except that spices, 30.36 flavorings, and colorings may, when authorized by the 31.1 commissioner, be designated as spices, flavorings, and colorings 31.2 without naming each. To the extent that compliance with clause 31.3 (2) is impracticable, or results in deception or unfair 31.4 competition, the commissioner shall establish exemptions by 31.5 rule; 31.6 (j) if it purports to be or is represented for special 31.7 dietary uses, unless its label bears the information concerning 31.8 its vitamin, mineral, and other dietary properties that the 31.9 commissioner, after consultation with the Secretary of 31.10 Agriculture of the United States, determines by rule to be 31.11 necessary to inform purchasers of its value for special dietary 31.12 uses; 31.13 (k) if it bears or contains any artificial flavoring, 31.14 artificial coloring, or chemical preservative, unless it bears 31.15 labeling stating that fact; 31.16 (l) if it fails to bear, directly or on its container, as 31.17 the commissioner by rule prescribes, the inspection legend and 31.18 other information the commissioner may require by rule to assure 31.19 that it will not have false or misleading labeling and that the 31.20 public will be told how to keep the article wholesome. 31.21 Sec. 40. Minnesota Statutes 1998, section 31A.03, is 31.22 amended to read: 31.23 31A.03 [INSPECTION OF LIVE ANIMALS; DISPOSITION OF 31.24 DEFECTIVE ANIMALS.] 31.25 To prevent the use in intrastate commerce of adulterated 31.26 meat and, meat food products, poultry, and poultry food 31.27 products, the commissioner shall appoint inspectors and have 31.28 them examine and inspect all animals before the animals enter a 31.29 slaughtering, packing, meat canning, rendering, or similar 31.30 establishment in this state in which slaughtering of animals and 31.31 preparation of meat and, meat food products, poultry, and 31.32 poultry food products are conducted solely for intrastate 31.33 commerce. Animals found on inspection to show symptoms of 31.34 disease must be set apart and slaughtered separately from other 31.35 animals. The carcasses of those animals must be carefully 31.36 examined and inspected under rules of the commissioner. 32.1 Sec. 41. Minnesota Statutes 1998, section 31A.05, is 32.2 amended to read: 32.3 31A.05 [APPLICATION OF INSPECTION PROVISIONS.] 32.4 Sections 31A.03 and 31A.04 apply to carcasses or parts of 32.5 animals, poultry, or poultry food products, and meat or meat 32.6 products derived from them that are usable as human food, when 32.7 these items are brought into a slaughtering, meat canning, 32.8 salting, packing, rendering, or similar establishment, where 32.9 inspection under sections 31A.01 to 31A.16 is done. Examination 32.10 and inspection must be made before the carcasses or animal parts 32.11 may enter into a department where they are to be treated and 32.12 prepared for meat food products or poultry food products. 32.13 Sections 31A.03 and 31A.04 also apply to products which, 32.14 after having been issued from a slaughtering, meat canning, 32.15 salting, packing, rendering, or similar establishment, must be 32.16 returned to it or to a similar establishment where inspection is 32.17 done. 32.18 The commissioner may limit the entry of carcasses, parts of 32.19 carcasses, poultry, poultry food products, meat and, meat food 32.20 products, and other materials into an establishment where 32.21 inspection under sections 31A.01 to 31A.16 is done to conditions 32.22 the commissioner prescribes to assure that allowing the entry of 32.23 articles into inspected establishments is consistent with the 32.24 purposes of this chapter. 32.25 Sec. 42. Minnesota Statutes 1998, section 31A.06, is 32.26 amended to read: 32.27 31A.06 [INSPECTORS' DUTIES.] 32.28 The commissioner shall appoint inspectors to examine and 32.29 inspect poultry food products and meat food products prepared in 32.30 a slaughtering, meat canning, salting, packing, rendering, or 32.31 similar establishment, where the articles are prepared solely 32.32 for intrastate commerce. For examination and inspection 32.33 purposes, the inspectors must be given access at all times, 32.34 whether the establishment is operated or not, to every part of 32.35 the establishment. The inspectors shall mark, stamp, tag, or 32.36 label as "Minnesota Inspected and Passed" all products found to 33.1 be unadulterated, and the inspectors shall label, mark, stamp, 33.2 or tag as "Minnesota Inspected and Condemned" all products found 33.3 to be adulterated. Condemned meat food products or poultry food 33.4 products must be destroyed for food purposes under section 33.5 31A.04. The commissioner may remove inspectors from an 33.6 establishment which fails to destroy condemned poultry food 33.7 products or meat food products. 33.8 Sec. 43. Minnesota Statutes 1998, section 31A.07, 33.9 subdivision 1, is amended to read: 33.10 Subdivision 1. [LABELING; PACKING.] When poultry, poultry 33.11 food products, meat, or ameat food productproducts prepared 33.12 for intrastate commerce which hashave been inspected and marked 33.13 "Minnesota Inspected and Passed" is placed or packed in a can, 33.14 pot, tin, canvas, or other receptacle or covering in an 33.15 establishment where inspection is done under sections 31A.01 to 33.16 31A.31, the person, firm, or corporation preparing the product 33.17 shall have a label attached to the can, pot, tin, canvas, or 33.18 other receptacle or covering, under supervision of an 33.19 inspector. The label must state that the contents have been 33.20 "Minnesota Inspected and Passed" under sections 31A.01 to 33.21 31A.31. An inspection or examination of poultry, poultry food 33.22 products, meat, or meat food products deposited or enclosed in 33.23 cans, tins, pots, canvas, or other receptacles or coverings in 33.24 an establishment where inspection is done under this chapter is 33.25 not complete until the poultry, poultry food products, meat, or 33.26 meat food products have been sealed or enclosed in the can, tin, 33.27 pot, canvas, or other receptacle or covering under the 33.28 supervision of an inspector. 33.29 Sec. 44. Minnesota Statutes 1998, section 31A.07, 33.30 subdivision 2, is amended to read: 33.31 Subd. 2. [LABELS; MARKS.] All carcasses, parts of 33.32 carcasses, poultry, poultry food products, meat, and meat food 33.33 products inspected at an establishment under this chapter and 33.34 found not to be adulterated, must when they leave the 33.35 establishment bear, directly or on their containers, legible 33.36 labels or official marks as required by the commissioner. 34.1 Sec. 45. Minnesota Statutes 1998, section 31A.08, is 34.2 amended to read: 34.3 31A.08 [RULES.] 34.4 The commissioner shall have experts in sanitation or other 34.5 competent inspectors inspect all slaughtering, meat canning, 34.6 salting, packing, rendering, or similar establishments in which 34.7 animals are slaughtered and their poultry, poultry food 34.8 products, meat, and meat food products are prepared solely for 34.9 intrastate commerce. The inspections must be conducted as 34.10 necessary for the commissioner to know the sanitary conditions 34.11 of the establishments, and to prescribe the rules of sanitation 34.12 under which the establishments must be maintained. If an 34.13 establishment has sanitary conditions that allow poultry, 34.14 poultry food products, meat, or meat food products to become 34.15 adulterated, the commissioner shall refuse to allow the poultry, 34.16 poultry food products, meat, or meat food products to be 34.17 labeled, marked, stamped, or tagged as "Minnesota Inspected and 34.18 Passed." 34.19 Sec. 46. Minnesota Statutes 1998, section 31A.10, is 34.20 amended to read: 34.21 31A.10 [PROHIBITIONS.] 34.22 No person may, with respect to an animal, carcass, part of 34.23 a carcass, poultry, poultry food product, meat, or meat food 34.24 product: 34.25 (1) slaughter an animal or prepare an article that is 34.26 usable as human food, at any establishment preparing articles 34.27 solely for intrastate commerce, except in compliance with this 34.28 chapter; 34.29 (2) sell, transport, offer for sale or transportation, or 34.30 receive for transportation, in intrastate commerce (i) articles 34.31 which are usable as human food and are adulterated or misbranded 34.32 at the time of sale, transportation, offer for sale or 34.33 transportation, or receipt for transportation; or (ii) articles 34.34 required to be inspected under sections 31A.01 to 31A.16 that 34.35 have not been inspected and passed; 34.36 (3) do something to an article that is usable as human food 35.1 while the article is being transported in intrastate commerce or 35.2 held for sale after transportation, which is intended to cause 35.3 or has the effect of causing the article to be adulterated or 35.4 misbranded; or 35.5 (4) sell, offer for sale, or possess with intent to sell 35.6 meat derived from custom processing. 35.7 Sec. 47. Minnesota Statutes 1998, section 31A.13, is 35.8 amended to read: 35.9 31A.13 [INSPECTORS.] 35.10 The commissioner shall appoint inspectors to inspect 35.11 animals, whole or parts of carcasses, poultry, poultry food 35.12 products, meat, and meat food products the inspection of which 35.13 is provided for by law, and the sanitary conditions of all 35.14 establishments in which the poultry, poultry food products, 35.15 meat, and meat food products are prepared. Inspectors shall 35.16 refuse to stamp, mark, tag, or label a whole or part of a 35.17 carcass or a meat food product derived from it, prepared in an 35.18 establishment covered by sections 31A.01 to 31A.12, until it has 35.19 actually been inspected and found to be not adulterated. 35.20 Inspectors shall perform other duties required by this chapter 35.21 or by rules adopted by the commissioner that are necessary for 35.22 the efficient execution of this chapter. Inspections under this 35.23 chapter must conform to the rules adopted by the commissioner 35.24 consistent with this chapter. 35.25 Sec. 48. Minnesota Statutes 1999 Supplement, section 35.26 31A.15, subdivision 1, is amended to read: 35.27 Subdivision 1. [INSPECTION.] The provisions of sections 35.28 31A.01 to 31A.16 requiring inspection of the slaughter of 35.29 animals and the preparation of the carcasses, parts of 35.30 carcasses, meat, poultry, poultry food products, and meat food 35.31 products at establishments conducting slaughter and preparation 35.32 do not apply: 35.33 (1) to the processing by a person of the person's own 35.34 animals and the owner's preparation and transportation in 35.35 intrastate commerce of the carcasses, parts of carcasses, meat, 35.36 poultry, poultry food products, and meat food products of those 36.1 animals exclusively for use by the owner and members of the 36.2 owner's household, nonpaying guests, and employees; or 36.3 (2) to the custom processing by a person of cattle, sheep, 36.4 swine, poultry, or goats delivered by the owner for processing, 36.5 and the preparation or transportation in intrastate commerce of 36.6 the carcasses, parts of carcasses, meat, poultry, poultry food 36.7 products, and meat food products of animals, exclusively for use 36.8 in the household of the owner by the owner and members of the 36.9 owner's household, nonpaying guests, and employees. Meat from 36.10 custom processing of cattle, sheep, swine, poultry, or goats 36.11 must be identified and handled as required by the commissioner, 36.12 during all phases of processing, chilling, cooling, freezing, 36.13 preparation, storage, and transportation. The custom processor 36.14 may not engage in the business of buying or selling carcasses, 36.15 parts of carcasses, meat, poultry, poultry food products, or 36.16 meat food products of animals usable as human food unless the 36.17 carcasses, parts of carcasses, meat, poultry, poultry food 36.18 products, or meat food products have been inspected and passed 36.19 and are identified as inspected and passed by the Minnesota 36.20 department of agriculture or the United States Department of 36.21 Agriculture. 36.22 Sec. 49. Minnesota Statutes 1998, section 31A.16, is 36.23 amended to read: 36.24 31A.16 [STORING AND HANDLING CONDITIONS.] 36.25 The commissioner may adopt rules prescribing conditions 36.26 under which carcasses, parts of carcasses, poultry, poultry food 36.27 products, meat, and meat food products of animals usable as 36.28 human food must be stored or otherwise handled by a person in 36.29 the business of buying, selling, freezing, storing, or 36.30 transporting them, in or for intrastate commerce, if the 36.31 commissioner considers action necessary to assure that the 36.32 articles will not be adulterated or misbranded when delivered to 36.33 the consumer. 36.34 Sec. 50. Minnesota Statutes 1998, section 31A.17, is 36.35 amended to read: 36.36 31A.17 [ARTICLES NOT INTENDED AS HUMAN FOOD.] 37.1 Inspection must not be provided under sections 31A.01 to 37.2 31A.16 at an establishment for the slaughter of animals or the 37.3 preparation of carcasses or parts or products of animals which 37.4 are not intended for use as human food. Before they are offered 37.5 for sale or transportation in intrastate commerce, those 37.6 articles must be denatured or otherwise identified as prescribed 37.7 by rules of the commissioner to deter their use for human food, 37.8 unless they are naturally inedible by humans. No person may 37.9 buy, sell, transport, offer for sale or transportation, or 37.10 receive for transportation, in intrastate commerce, carcasses, 37.11 parts of carcasses, poultry, poultry food products, meat, or 37.12 meat food products of animals which are not intended for use as 37.13 human food unless they are denatured or otherwise identified as 37.14 required by the rules of the commissioner or are naturally 37.15 inedible by humans. 37.16 Sec. 51. Minnesota Statutes 1998, section 31B.02, 37.17 subdivision 4, is amended to read: 37.18 Subd. 4. [LIVESTOCK.] "Livestock" means live or dead 37.19 cattle, sheep, swine, horses, mules, farmed cervidae, as defined 37.20 in section 17.451, subdivision 2, llamas, as defined in section 37.21 17.455, subdivision 2, ratitae, as defined in section 17.453, 37.22 subdivision 3, bison (buffalo), or goats. 37.23 Sec. 52. Minnesota Statutes 1999 Supplement, section 37.24 31B.07, subdivision 3, is amended to read: 37.25 Subd. 3. [EXPIRATION.] The reporting provisions of this 37.26 section expire 30 days after a department or agency of the 37.27 federal government has a price reporting requirement at least as 37.28 comprehensive as this section, as determined by the commissioner 37.29 and results in Minnesota-specific information being available to 37.30 the commissioner and to Minnesota producers. 37.31 Sec. 53. Minnesota Statutes 1998, section 41B.03, 37.32 subdivision 1, is amended to read: 37.33 Subdivision 1. [ELIGIBILITY GENERALLY.] To be eligible for 37.34 a program in sections 41B.01 to 41B.23: 37.35 (1) a borrower must be a resident of Minnesota or a 37.36 domestic family farm corporation, as defined in section 500.24, 38.1 subdivision 2; and 38.2 (2) the borrower or one of the borrowers must be the 38.3 principal operator of the farm or, for a prospective homestead 38.4 redemption borrower, must have at one time been the principal 38.5 operator of a farm ; and38.6 (3) the borrower must not receive assistance under sections38.7 41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans38.8 during the borrower's lifetime. 38.9 Sec. 54. Minnesota Statutes 1998, section 41B.03, 38.10 subdivision 2, is amended to read: 38.11 Subd. 2. [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 38.12 to the eligibility requirements of subdivision 1, a prospective 38.13 borrower for a restructured loan must: 38.14 (1) have received at least 50 percent of average annual 38.15 gross income from farming for the past three years or, for 38.16 homesteaded property, received at least 40 percent of average 38.17 gross income from farming in the past three years, and farming 38.18 must be the principal occupation of the borrower; 38.19 (2) have a debt-to-asset ratio equal to or greater than 50 38.20 percent and in determining this ratio, the assets must be valued 38.21 at their current market value; 38.22 (3) have projected annual expenses, including operating 38.23 expenses, family living, and interest expenses after the 38.24 restructuring, that do not exceed 95 percent of the borrower's 38.25 projected annual income considering prior production history and 38.26 projected prices for farm production, except that the authority 38.27 may reduce the 95 percent requirement if it finds that other 38.28 significant factors in the loan application support the making 38.29 of the loan; and38.30 (4) demonstrate substantial difficulty in meeting projected 38.31 annual expenses without restructuring the loan; and 38.32 (5) must have a total net worth, including assets and 38.33 liabilities of the borrower's spouse and dependents, of less 38.34 than $400,000 in 1999 and an amount in subsequent years which is 38.35 adjusted for inflation by multiplying $400,000 by the cumulative 38.36 inflation rate as determined by the United States All-Items 39.1 Consumer Price Index. 39.2 Sec. 55. Minnesota Statutes 1998, section 41B.039, 39.3 subdivision 2, is amended to read: 39.4 Subd. 2. [STATE PARTICIPATION.] The state may participate 39.5 in a new real estate loan with an eligible lender to a beginning 39.6 farmer to the extent of 45 percent of the principal amount of 39.7 the loan or $100,000$125,000, whichever is less. The interest 39.8 rates and repayment terms of the authority's participation 39.9 interest may be different than the interest rates and repayment 39.10 terms of the lender's retained portion of the loan. 39.11 Sec. 56. Minnesota Statutes 1998, section 41B.04, 39.12 subdivision 8, is amended to read: 39.13 Subd. 8. [STATE'S PARTICIPATION.] With respect to loans 39.14 that are eligible for restructuring under sections 41B.01 to 39.15 41B.23 and upon acceptance by the authority, the authority shall 39.16 enter into a participation agreement or other financial 39.17 arrangement whereby it shall participate in a restructured loan 39.18 to the extent of 45 percent of the primary principal or 39.19 $100,000$150,000, whichever is less. The authority's portion 39.20 of the loan must be protected during the authority's 39.21 participation by the first mortgage held by the eligible lender 39.22 to the extent of its participation in the loan. 39.23 Sec. 57. Minnesota Statutes 1998, section 41B.042, 39.24 subdivision 4, is amended to read: 39.25 Subd. 4. [PARTICIPATION LIMIT; INTEREST.] The authority 39.26 may participate in new seller-sponsored loans to the extent of 39.27 45 percent of the principal amount of the loan or 39.28 $100,000$125,000, whichever is less. The interest rates and 39.29 repayment terms of the authority's participation interest may be 39.30 different than the interest rates and repayment terms of the 39.31 seller's retained portion of the loan. 39.32 Sec. 58. Minnesota Statutes 1998, section 41B.043, 39.33 subdivision 2, is amended to read: 39.34 Subd. 2. [SPECIFICATIONS.] No direct loan may exceed 39.35 $35,000 or $100,000$125,000 for a loan participation or be made 39.36 to refinance an existing debt. Each direct loan and 40.1 participation must be secured by a mortgage on real property and 40.2 such other security as the authority may require. 40.3 Sec. 59. Minnesota Statutes 1998, section 41B.045, 40.4 subdivision 2, is amended to read: 40.5 Subd. 2. [LOAN PARTICIPATION.] The authority may 40.6 participate in a livestock expansion loan with an eligible 40.7 lender to a livestock farmer who meets the requirements of 40.8 section 41B.03, subdivision 1, clauses (1) and (2), and who are 40.9 actively engaged in a livestock operation. A prospective 40.10 borrower must have a total net worth, including assets and 40.11 liabilities of the borrower's spouse and dependents, of less 40.12 than $400,000 in 1999 and an amount in subsequent years which is 40.13 adjusted for inflation by multiplying $400,000 by the cumulative 40.14 inflation rate as determined by the United States All-Items 40.15 Consumer Price Index. 40.16 Participation is limited to 45 percent of the principal 40.17 amount of the loan or $250,000, whichever is less. The interest 40.18 rates and repayment terms of the authority's participation 40.19 interest may be different from the interest rates and repayment 40.20 terms of the lender's retained portion of the loan. Loans under 40.21 this program must not be included in the lifetime limitation 40.22 calculated under section 41B.03, subdivision 1. 40.23 Sec. 60. Minnesota Statutes 1998, section 223.16, 40.24 subdivision 5, is amended to read: 40.25 Subd. 5. [GRAIN BUYER.] "Grain buyer" means a person who 40.26 purchases grain from a producerfor the purpose of reselling the 40.27 grain with the exception of a person who purchases seed grain 40.28 for crop production or who purchases grain as feed for the 40.29 person's own livestock. 40.30 Sec. 61. Minnesota Statutes 1998, section 223.17, 40.31 subdivision 5, is amended to read: 40.32 Subd. 5. [CASH SALES; MANNER OF PAYMENT.] For a cash sale 40.33 of a shipment of grain which is part of a multiple shipment 40.34 sale, the grain buyer shall tender payment to the seller in cash 40.35 or by check not later than ten days after the sale of that 40.36 shipment, except that when the entire sale is completed, payment 41.1 shall be tendered not later than the close of business on the 41.2 next day, or within 48 hours, whichever is later. For other 41.3 cash sales the grain buyer, before the close of business on the 41.4 next business day after the sale, shall tender payment to the 41.5 seller in cash or by check, or shall wire or mail funds to the 41.6 seller's account in the amount of at least 80 percent of the 41.7 value of the grain at the time of delivery. The grain buyer 41.8 shall complete final settlement as rapidly as possible through 41.9 ordinary diligence. Any transaction which is not a cash sale in41.10 compliance with the provisions of this subdivision constitutes a41.11 voluntary extension of credit which is not afforded protection41.12 under the grain buyer's bond, and which must comply with41.13 sections 223.175 and 220.127.116.11 Sec. 62. Minnesota Statutes 1998, section 223.175, is 41.15 amended to read: 41.16 223.175 [WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS; 41.17 FORM.] 41.18 A written confirmation required under section 223.177, 41.19 subdivision 2, and a written voluntary extension of credit 41.20 contract must include those items prescribed by the commissioner 41.21 by rule. A contract shall include a statement of the legal and 41.22 financial responsibilities of grain buyers and sellers 41.23 established in this chapter. A contract shall also include the 41.24 following statement in not less than ten point, all capital 41.25 type, framed in a box with space provided for the seller's 41.26 signature: "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF 41.27 CREDIT. THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S 41.28 BOND." If a written contract is provided at the time the grain 41.29 is delivered to the grain buyer, the seller shall sign the 41.30 contract in the space provided beneath the statement. A 41.31 transaction that does not meet the provisions of a voluntary 41.32 extension of credit, including the issuance and signing of a 41.33 voluntary extension of credit contract, is a cash sale. 41.34 Sec. 63. Minnesota Statutes 1998, section 232.21, is 41.35 amended by adding a subdivision to read: 41.36 Subd. 14. [OPEN STORAGE.] "Open storage" means grain or 42.1 agricultural products received by a warehouse operator from a 42.2 depositor for which warehouse receipts have not been issued or a 42.3 purchase made and the records documented accordingly. 42.4 Sec. 64. Minnesota Statutes 1998, section 232.23, 42.5 subdivision 1, is amended to read: 42.6 Subdivision 1. [DISCRIMINATION PROHIBITED.] (a) Except as 42.7 provided in paragraph (b), a public grain warehouse operator 42.8 must receive for storage, so far as the capacity of the grain 42.9 warehouse will permit, all sound grain tendered in warehouseable 42.10 condition without discrimination against any person tendering 42.11 the grain. 42.12 (b) The requirements in paragraph (a) do not apply to 42.13 storage capacity owned by producers that is managed by the 42.14 public grain warehouse operator but is not under the same 42.15 ownership as the grain warehouse. 42.16 Sec. 65. Minnesota Statutes 1998, section 232.23, 42.17 subdivision 3, is amended to read: 42.18 Subd. 3. [GRAIN DELIVERED CONSIDERED SOLDSTORED.] All 42.19 grain delivered to a public grain warehouse operator shall be 42.20 considered soldstored at the time of delivery, unless 42.21 arrangements have been made with the public grain warehouse 42.22 operator prior to or at the time of delivery to apply the grain 42.23 on contract, for shipment or consignment or for storagecash 42.24 sale. Grain may be held in open storage or placed on a 42.25 warehouse receipt. Warehouse receipts must be issued for all 42.26 grain held in open storage within six months of delivery to the 42.27 warehouse unless the depositor has signed a statement that the 42.28 depositor does not desire a warehouse receipt. The warehouse 42.29 operator's tariff applies for any grain that is retained in open 42.30 storage or under warehouse receipt. 42.31 Sec. 66. Minnesota Statutes 1998, section 232.23, 42.32 subdivision 6, is amended to read: 42.33 Subd. 6. [LIABILITY.] A public grain warehouse 42.34 operator issuing a grain warehouse receiptis liable to the 42.35 depositor for the delivery of the kind, grade, and net quantity 42.36 of grain called for by the grain warehouse receipt .or scale 43.1 ticket marked "store." 43.2 Sec. 67. Minnesota Statutes 1999 Supplement, section 43.3 500.24, subdivision 2, is amended to read: 43.4 Subd. 2. [DEFINITIONS.] The definitions in this 43.5 subdivision apply to this section. 43.6 (a) "Farming" means the production of (1) agricultural 43.7 products; (2) livestock or livestock products; (3) milk or milk 43.8 products; or (4) fruit or other horticultural products. It does 43.9 not include the processing, refining, or packaging of said 43.10 products, nor the provision of spraying or harvesting services 43.11 by a processor or distributor of farm products. It does not 43.12 include the production of timber or forest products, the 43.13 production of poultry or poultry products, or the feeding and 43.14 caring for livestock that are delivered to a corporation for 43.15 slaughter or processing for up to 20 days before slaughter or 43.16 processing. 43.17 (b) "Family farm" means an unincorporated farming unit 43.18 owned by one or more persons residing on the farm or actively 43.19 engaging in farming. 43.20 (c) "Family farm corporation" means a corporation founded 43.21 for the purpose of farming and the ownership of agricultural 43.22 land in which the majority of the votingstock is held by and 43.23 the majority of the stockholders are persons or, the spouses of 43.24 persons, or current beneficiaries of one or more family farm 43.25 trusts in which the trustee holds stock in a family farm 43.26 corporation, related to each other within the third degree of 43.27 kindred according to the rules of the civil law, and at least 43.28 one of saidthe related persons is residing on or actively 43.29 operating the farm, and none of whose stockholders are 43.30 corporations; provided that a family farm corporation shall not 43.31 cease to qualify as such hereunder by reason of any devise or43.32 bequest: 43.33 (1) transfer of shares of votingstock to a person or the 43.34 spouse of a person related within the third degree of kindred 43.35 according to the rules of civil law to the person making the 43.36 transfer, or to a family farm trust of which the shareholder, 44.1 spouse, or related person is a current beneficiary; or 44.2 (2) distribution from a family farm trust of shares of 44.3 stock to a beneficiary related within the third degree of 44.4 kindred according to the rules of civil law to a majority of the 44.5 current beneficiaries of the trust, or to a family farm trust of 44.6 which the shareholder, spouse, or related person is a current 44.7 beneficiary. 44.8 For the purposes of this section, a transfer may be made 44.9 with or without consideration, either directly or indirectly, 44.10 during life or at death, whether or not in trust, of the shares 44.11 in the family farm corporation, and stock owned by a family farm 44.12 trust are considered to be owned in equal shares by the current 44.13 beneficiaries. 44.14 (d) "Family farm trust" means: 44.15 (1) a trust in which: 44.16 (i) a majority of the current beneficiaries are persons or 44.17 spouses of persons who are related to each other within the 44.18 third degree of kindred according to the rules of civil law; 44.19 (ii) all of the current beneficiaries are natural persons 44.20 or nonprofit corporations or trusts described in Internal 44.21 Revenue Code, section 170(c), as amended, and the regulations 44.22 under that section; and 44.23 (iii) one of the family member current beneficiaries is 44.24 residing on or actively operating the farm; or 44.25 (2) a charitable remainder trust as defined in Internal 44.26 Revenue Code, section 664, as amended, and the regulations under 44.27 that section, and a charitable lead trust as set forth in 44.28 Internal Revenue Code, section 170(f), and the regulations under 44.29 that section, if the lead period does not exceed ten years and 44.30 the majority of remainder beneficiaries are related to the 44.31 grantor within the third degree of kindred according to the 44.32 rules of civil law. 44.33 For the purposes of this section, if a distributee trust 44.34 becomes entitled to, or at the discretion of any person may 44.35 receive, a distribution from income or principal of a family 44.36 farm trust, then the distributee trust must independently 45.1 qualify as a family farm trust. 45.2 (e) "Authorized farm corporation" means a corporation 45.3 meeting the following standards: 45.4 (1) it has no more than five shareholders, provided that 45.5 for the purposes of this section, a husband and wife are 45.6 considered one shareholder; 45.7 (2) all its shareholders, other than any estate, are 45.8 natural persons; 45.9 (3) it does not have more than one class of shares; 45.10 (4) its revenue from rent, royalties, dividends, interest, 45.11 and annuities does not exceed 20 percent of its gross receipts; 45.12 (5) shareholders holding 51 percent or more of the interest 45.13 in the corporation reside on the farm or are actively engaging 45.14 in farming; 45.15 (6) it does not, directly or indirectly, own or otherwise 45.16 have an interest in any title to more than 1,500 acres of 45.17 agricultural land; and 45.18 (7) none of its shareholders are shareholders in other 45.19 authorized farm corporations that directly or indirectly in 45.20 combination with the corporation own more than 1,500 acres of 45.21 agricultural land. 45.22 (e)(f) "Authorized livestock farm corporation" means a 45.23 corporation formed for the production of livestock and meeting 45.24 the following standards: 45.25 (1) it is engaged in the production of livestock other than 45.26 dairy cattle; 45.27 (2) all its shareholders, other than any estate, are 45.28 natural persons or family farm corporations; 45.29 (3) it does not have more than one class of shares; 45.30 (4) its revenue from rent, royalties, dividends, interest, 45.31 and annuities does not exceed 20 percent of its gross receipts; 45.32 (5) shareholders holding 75 percent or more of the control, 45.33 financial, and capital investment in the corporation are farmers 45.34 residing in Minnesota and at least 51 percent of the required 45.35 percentage of farmers are actively engaged in livestock 45.36 production; 46.1 (6) it does not, directly or indirectly, own or otherwise 46.2 have an interest in any title to more than 1,500 acres of 46.3 agricultural land; and 46.4 (7) none of its shareholders are shareholders in other 46.5 authorized farm corporations that directly or indirectly in 46.6 combination with the corporation own more than 1,500 acres of 46.7 agricultural land. 46.8 (f)(g) "Agricultural land" means real estate used for 46.9 farming or capable of being used for farming in this state. 46.10 (g)(h) "Pension or investment fund" means a pension or 46.11 employee welfare benefit fund, however organized, a mutual fund, 46.12 a life insurance company separate account, a common trust of a 46.13 bank or other trustee established for the investment and 46.14 reinvestment of money contributed to it, a real estate 46.15 investment trust, or an investment company as defined in United 46.16 States Code, title 15, section 80a-3. 46.17 (h)(i) "Farm homestead" means a house including adjoining 46.18 buildings that has been used as part of a farming operation or 46.19 is part of the agricultural land used for a farming operation. 46.20 (i)(j) "Family farm partnership" means a limited 46.21 partnership formed for the purpose of farming and the ownership 46.22 of agricultural land in which the majority of the interests in 46.23 the partnership is held by and the majority of the partners are 46.24 persons or, the spouses of persons, or current beneficiaries of 46.25 one or more family farm trusts in which the trustee holds an 46.26 interest in a family farm partnership related to each other 46.27 within the third degree of kindred according to the rules of the 46.28 civil law, at least one of the related persons is residing on or46.29 the farm, actively operating the farm, or the agricultural land 46.30 was owned by one or more of the related persons for a period of 46.31 five years before its transfer to the limited partnership, and 46.32 none of the partners are corporations. A family farm 46.33 partnership does not cease to qualify as a family farm 46.34 partnership because of a devise or bequest: 46.35 (1) transfer of a partnership interest in the46.36 partnershipto a person or spouse of a person related within the 47.1 third degree of kindred according to the rules of civil law to 47.2 the person making the transfer or to a family farm trust of 47.3 which the partner, spouse, or related person is a current 47.4 beneficiary; or 47.5 (2) distribution from a family farm trust of a partnership 47.6 interest to a beneficiary related within the third degree of 47.7 kindred according to the rules of civil law to a majority of the 47.8 current beneficiaries of the trust, or to a family farm trust of 47.9 which the partner, spouse, or related person is a current 47.10 beneficiary. 47.11 For the purposes of this section, a transfer may be made 47.12 with or without consideration, either directly or indirectly, 47.13 during life or at death, whether or not in trust, of a 47.14 partnership interest in the family farm partnership, and 47.15 interest owned by a family farm trust is considered to be owned 47.16 in equal shares by the current beneficiaries. 47.17 (j)(k) "Authorized farm partnership" means a limited 47.18 partnership meeting the following standards: 47.19 (1) it has been issued a certificate from the secretary of 47.20 state or is registered with the county recorder and farming and 47.21 ownership of agricultural land is stated as a purpose or 47.22 character of the business; 47.23 (2) it has no more than five partners; 47.24 (3) all its partners, other than any estate, are natural 47.25 persons; 47.26 (4) its revenue from rent, royalties, dividends, interest, 47.27 and annuities dodoes not exceed 20 percent of its gross 47.28 receipts; 47.29 (5) its general partners hold at least 51 percent of the 47.30 interest in the land assets of the partnership and reside on the 47.31 farm or are actively engaging in farming not more than 1,500 47.32 acres as a general partner in an authorized limited partnership; 47.33 (6) its limited partners do not participate in the business 47.34 of the limited partnership including operating, managing, or 47.35 directing management of farming operations; 47.36 (7) it does not, directly or indirectly, own or otherwise 48.1 have an interest in any title to more than 1,500 acres of 48.2 agricultural land; and 48.3 (8) none of its limited partners are limited partners in 48.4 other authorized farm partnerships that directly or indirectly 48.5 in combination with the partnership own more than 1,500 acres of 48.6 agricultural land. 48.7 (l) "Family farm limited liability company" means a limited 48.8 liability company founded for the purpose of farming and the 48.9 ownership of agricultural land in which the majority of the 48.10 membership interests are held by and the majority of the members 48.11 are persons or the spouses of persons, or current beneficiaries 48.12 of one or more family farm trusts in which the trustee holds 48.13 stock in a family farm limited liability company related to each 48.14 other within the third degree of kindred according to the rules 48.15 of the civil law, at least one of the related persons is 48.16 actively operating the farm, and none of the members are 48.17 corporations or limited liability companies. A family farm 48.18 limited liability company does not cease to qualify as a family 48.19 farm limited liability company because of: 48.20 (1) a transfer of a membership interest to a person or 48.21 spouse of a person related within the third degree of kindred 48.22 according to the rules of civil law to the person making the 48.23 transfer or to a family farm trust of which the member, spouse, 48.24 or related person is a current beneficiary; or 48.25 (2) distribution from a family farm trust of a membership 48.26 interest to a beneficiary related within the third degree of 48.27 kindred according to the rules of civil law to a majority of the 48.28 current beneficiaries of the trust, or to a family farm trust of 48.29 which the member, spouse, or related person is a current 48.30 beneficiary. 48.31 For the purposes of this section, a transfer may be made 48.32 with or without consideration, either directly or indirectly, 48.33 during life or at death, whether or not in trust, of a 48.34 membership interest in the family farm limited liability 48.35 company, and interest owned by a family farm trust is considered 48.36 to be owned in equal shares by the current beneficiaries. 49.1 Except for a state or federally chartered financial institution 49.2 acquiring an encumbrance for the purpose of security or an 49.3 interest under paragraph (x), a member of a family farm limited 49.4 liability company may not transfer a membership interest, 49.5 including a financial interest, to a person who is not otherwise 49.6 eligible to be a member under this paragraph. 49.7 (m) "Authorized farm limited liability company" means a 49.8 limited liability company meeting the following standards: 49.9 (1) it has no more than five members; 49.10 (2) all its members, other than any estate, are natural 49.11 persons; 49.12 (3) it does not have more than one class of membership 49.13 interests; 49.14 (4) its revenue from rent, royalties, dividends, interest, 49.15 and annuities does not exceed 20 percent of its gross receipts; 49.16 (5) members holding 51 percent or more of both the 49.17 governance rights and financial rights in the limited liability 49.18 company reside on the farm or are actively engaged in farming; 49.19 (6) it does not, directly or indirectly, own or otherwise 49.20 have an interest in any title to more than 1,500 acres of 49.21 agricultural land; and 49.22 (7) none of its members are members in other authorized 49.23 farm limited liability companies that directly or indirectly in 49.24 combination with the authorized farm limited liability company 49.25 own more than 1,500 acres of agricultural land. 49.26 Except for a state or federally chartered financial 49.27 institution acquiring an encumbrance for the purpose of security 49.28 or an interest under paragraph (x), a member of an authorized 49.29 farm limited liability company may not transfer a membership 49.30 interest, including a financial interest, to a person who is not 49.31 otherwise eligible to be a member under this paragraph. 49.32 (k)(n) "Farmer" means a natural person who regularly 49.33 participates in physical labor or operations management in the 49.34 person's farming operation and files "Schedule F" as part of the 49.35 person's annual Form 1040 filing with the United States Internal 49.36 Revenue Service. 50.1 (l)(o) "Actively engaged in livestock production" means 50.2 performing day-to-day physical labor or day-to-day operations 50.3 management that significantly contributes to livestock 50.4 production and the functioning of a livestock operation. 50.5 (m)(p) "Research or experimental farm" means a 50.6 corporation, limited partnership, orpension or, investment 50.7 fund, or limited liability company that owns or operates 50.8 agricultural land for research or experimental purposes, 50.9 provided that any commercial sales from the operation are 50.10 incidental to the research or experimental objectives of the 50.11 corporation. A corporation, limited partnership, limited 50.12 liability company, or pension or investment fund seeking initial 50.13 approval by the commissioner to operate agricultural land for 50.14 research or experimental purposes must first submit to the 50.15 commissioner a prospectus or proposal of the intended method of 50.16 operation containing information required by the commissioner 50.17 including a copy of any operational contract with individual 50.18 participants. 50.19 (n)(q) "Breeding stock farm" means a corporation or, 50.20 limited partnership, or limited liability company, that owns or 50.21 operates agricultural land for the purpose of raising breeding 50.22 stock, including embryos, for resale to farmers or for the 50.23 purpose of growing seed, wild rice, nursery plants, or sod. An 50.24 entity that is organized to raise livestock other than dairy 50.25 cattle under this paragraph that does not qualify as an 50.26 authorized farm corporation must: 50.27 (1) sell all castrated animals to be fed out or finished to 50.28 farming operations that are neither directly nor indirectly 50.29 owned by the business entity operating the breeding stock 50.30 operation; and 50.31 (2) report its total production and sales annually to the 50.32 commissioner. 50.33 (o)(r) "Aquatic farm" means a corporation or, limited 50.34 partnership, or limited liability company, that owns or leases 50.35 agricultural land as a necessary part of an aquatic farm as 50.36 defined in section 17.47, subdivision 3. 51.1 (p)(s) "Religious farm" means a corporation formed 51.2 primarily for religious purposes whose sole income is derived 51.3 from agriculture. 51.4 (q)(t) "Utility corporation" means a corporation regulated 51.5 under Minnesota Statutes 1974, chapter 216B, that owns 51.6 agricultural land for purposes described in that chapter, or an 51.7 electric generation or transmission cooperative that owns 51.8 agricultural land for use in its business if the land is not 51.9 used for farming except under lease to a family farm unit, a 51.10 family farm corporation, ora family farm trust, a family farm 51.11 partnership, or a family farm limited liability company. 51.12 (r) "Benevolent trust" means a pension fund or family trust51.13 established by the owners of a family farm, authorized farm51.14 corporation, authorized livestock farm corporation, or family51.15 farm corporation that holds an interest in title to agricultural51.16 land on which one or more of those owners or shareholders have51.17 resided or have been actively engaged in farming as required by51.18 paragraph (b), (c), (d), or (e).51.19 (s)(u) "Development organization" means a corporation, 51.20 limited partnership, limited liability company, or pension or 51.21 investment fund that ownshas an interest in agricultural land 51.22 for which the corporation, limited partnership, limited 51.23 liability company, or pension or investment fund has documented 51.24 plans to use and subsequently uses the land within six years 51.25 from the date of purchase for a specific nonfarming purpose, or 51.26 if the land is zoned nonagricultural, or if the land is located 51.27 within an incorporated area. A corporation, limited 51.28 partnership, limited liability company, or pension or investment 51.29 fund may hold agricultural land in the amount necessary for its 51.30 nonfarm business operation; provided, however, that pending the 51.31 development of agricultural land for nonfarm purposes, the land 51.32 may not be used for farming except under lease to a family farm 51.33 unit, a family farm corporation, a family farm trust, an 51.34 authorized farm corporation, an authorized livestock farm 51.35 corporation, a family farm partnership, oran authorized farm 51.36 partnership, a family farm limited liability company, or an 52.1 authorized farm limited liability company, or except when 52.2 controlled through ownership, options, leaseholds, or other 52.3 agreements by a corporation that has entered into an agreement 52.4 with the United States under the New Community Act of 1968 52.5 (Title IV of the Housing and Urban Development Act of 1968, 52.6 United States Code, title 42, sections 3901 to 3914) as amended, 52.7 or a subsidiary or assign of such a corporation. 52.8 (t)(v) "Exempt land" means agricultural land owned or 52.9 leased by a corporation as of May 20, 1973, agricultural land 52.10 owned or leased by a pension or investment fund as of May 12, 52.11 1981, oragricultural land owned or leased by a limited 52.12 partnership as of May 1, 1988, or agricultural land owned or 52.13 leased by a trust as of the effective date of this act, 52.14 including the normal expansion of that ownership at a rate not 52.15 to exceed 20 percent of the amount of land owned as of May 20, 52.16 1973, for a corporation; May 12, 1981, for a pension or 52.17 investment fund; orMay 1, 1988, for a limited partnership, or 52.18 the effective date of this act for a trust, measured in acres, 52.19 in any five-year period, and including additional ownership 52.20 reasonably necessary to meet the requirements of pollution 52.21 control rules. A corporation, limited partnership, or pension 52.22 or investment fund that is eligible to own or lease agricultural 52.23 land under this section prior to May 1997, or a corporation that 52.24 is eligible to own or lease agricultural land as a benevolent 52.25 trust under this section prior to the effective date of this 52.26 act, may continue to own or lease agricultural land subject to 52.27 the same conditions and limitations as previously allowed. 52.28 (u)(w) "Gifted land" means agricultural land acquired as a 52.29 gift, either by grant or devise, by an educational, religious, 52.30 or charitable nonprofit corporation, limited 52.31 partnership, limited liability company, or pension or investment 52.32 fund if all land so acquired is disposed of within ten years 52.33 after acquiring the title. 52.34 (v)(x) "Repossessed land" means agricultural land acquired 52.35 by a corporation, limited partnership, limited liability 52.36 company, or pension or investment fund by process of law in the 53.1 collection of debts, or by any procedure for the enforcement of 53.2 a lien or claim on the land, whether created by mortgage or 53.3 otherwise if all land so acquired is disposed of within five 53.4 years after acquiring the title. The five-year limitation is a 53.5 covenant running with the title to the land against any grantee, 53.6 assignee, or successor of the pension or investment fund, 53.7 corporation, orlimited partnership, or limited liability 53.8 company. The land so acquired must not be used for farming 53.9 during the five-year period, except under a lease to a family 53.10 farm unit, a family farm corporation, an authorized farm 53.11 corporation, an authorized livestock farm corporation, a family 53.12 farm partnership, oran authorized farm partnership, a family 53.13 farm limited liability company, or an authorized farm limited 53.14 liability company. Notwithstanding the five-year divestiture 53.15 requirement under this paragraph, a financial institution may 53.16 continue to own the agricultural land if the agricultural land 53.17 is leased to the immediately preceding former owner, but must 53.18 dispose of the agricultural land within ten years of acquiring 53.19 the title. Livestock acquired by a pension or investment fund, 53.20 corporation, orlimited partnership, or limited liability 53.21 company in the collection of debts, or by a procedure for the 53.22 enforcement of lien or claim on the livestock whether created by 53.23 security agreement or otherwise after August 1, 1994, must be 53.24 sold or disposed of within one full production cycle for the 53.25 type of livestock acquired or 18 months after the livestock is 53.26 acquired, whichever is laterearlier. 53.27 (w)(y) "Commissioner" means the commissioner of 53.28 agriculture. 53.29 (x)(z) "Demonstration"Nonprofit corporation" means a 53.30 nonprofit corporation organized under state nonprofit 53.31 corporation law and formed primarily for the purpose of53.32 demonstrating historical farming practicesor qualified for 53.33 tax-exempt status under federal tax law that uses the land for a 53.34 specific nonfarming purpose or leases the agricultural land to a 53.35 family farm unit, a family farm corporation, an authorized farm 53.36 corporation, an authorized livestock farm corporation, a family 54.1 farm limited liability company, an authorized farm limited 54.2 liability company, a family farm partnership, or an authorized 54.3 farm partnership. 54.4 (aa) "Current beneficiary" means a person who at any time 54.5 during a year is entitled to, or at the discretion of any person 54.6 may, receive a distribution from the income or principal of the 54.7 trust. It does not include a distributee trust, other than a 54.8 trust described in section 170(c) of the Internal Revenue Code, 54.9 as amended, but does include the current beneficiaries of the 54.10 distributee trust. It does not include a person in whose favor 54.11 a power of appointment could be exercised until the holder of 54.12 the power of appointment actually exercises the power of 54.13 appointment in that person's favor. It does not include a 54.14 person who is entitled to receive a distribution only after a 54.15 specified time or upon the occurrence of a specified event until 54.16 the time or occurrence of the event. For the purposes of this 54.17 section, a distributee trust is a current beneficiary of a 54.18 family farm trust. 54.19 (bb) "De minimis" means that any corporation, pension or 54.20 investment fund, limited liability company, or limited 54.21 partnership that directly or indirectly owns, acquires, or 54.22 otherwise obtains any interest in 40 acres or less of 54.23 agricultural land and annually receives less than $150 per acre 54.24 in gross revenue from rental or agricultural production. 54.25 Sec. 68. Minnesota Statutes 1999 Supplement, section 54.26 500.24, subdivision 3, is amended to read: 54.27 Subd. 3. [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 54.28 CORPORATIONS RESTRICTED.] (a) No corporation, limited liability 54.29 company, pension or investment fund, trust, or limited 54.30 partnership shall engage in farming; nor shall any corporation, 54.31 limited liability company, pension or investment fund, trust, or 54.32 limited partnership, directly or indirectly, own, acquire, or 54.33 otherwise obtain any interest, in agricultural land other than a 54.34 bona fide encumbrance taken for purposes of security. This 54.35 subdivision does not apply to general partnerships. This 54.36 subdivision does not apply to any agricultural land, 55.1 corporation, limited partnership, trust, limited liability 55.2 company, or pension or investment fund that meet any of the 55.3 definitions in subdivision 2, paragraphs (b) 55.4 to (e)(f), (i),(j) to (m), (m) to (v)(p) to (x), and55.5 (x)(z), and (bb), has a conservation plan prepared for the 55.6 agricultural land, and reports as required under subdivision 4. 55.7 (b) A corporation, pension or investment fund, trust, 55.8 limited liability company, or limited partnership that cannot 55.9 meet any of the definitions in subdivision 2, paragraphs (b) to 55.10 (f), (j) to (m), (p) to (x), (z), and (bb), may petition the 55.11 commissioner for an exemption from this subdivision. The 55.12 commissioner may issue an exemption if the entity meets the 55.13 following criteria: 55.14 (1) the exemption would not contradict the purpose of this 55.15 section; and 55.16 (2) the petitioning entity would not have a significant 55.17 impact upon the agriculture industry and the economy. 55.18 The commissioner shall review annually each entity that is 55.19 issued an exemption under this paragraph to ensure that the 55.20 entity continues to meet the criteria in clauses (1) and (2). 55.21 If an entity fails to meet the criteria, the commissioner shall 55.22 withdraw the exemption and the entity is subject to enforcement 55.23 proceedings under subdivision 5. The commissioner shall submit 55.24 a report with a list of each entity that is issued an exemption 55.25 under this paragraph to the chairs of the senate and house 55.26 agricultural policy committees by October 1 of each year. 55.27 Sec. 69. Minnesota Statutes 1998, section 500.24, 55.28 subdivision 3a, is amended to read: 55.29 Subd. 3a. [LEASE AGREEMENT; CONSERVATION PRACTICE 55.30 PROTECTION CLAUSE.] A corporation, pension or investment fund, 55.31 orlimited partnership, or limited liability company other than 55.32 a family farm corporation, an authorized farm corporation, an55.33 authorized livestock farm corporation, a family farm55.34 partnership, or an authorized farm partnershipthose meeting any 55.35 of the definitions in subdivision 2, paragraphs (c) to (f) or 55.36 (j) to (m), when leasing farm land to a family farm unit, a 56.1 family farm corporation, an authorized farm corporation, an 56.2 authorized livestock farm corporation, a family farm 56.3 partnership, oran authorized farm partnership, a family farm 56.4 limited liability company, or an authorized farm limited 56.5 liability company, under provisions of subdivision 2, paragraph 56.6 (v)(x), must include within the lease agreement a provision 56.7 prohibiting intentional damage or destruction to a conservation 56.8 practice on the agricultural land. 56.9 Sec. 70. Minnesota Statutes 1998, section 500.24, 56.10 subdivision 3b, is amended to read: 56.11 Subd. 3b. [PROTECTION OF CONSERVATION PRACTICES.] A 56.12 corporation, pension or investment fund, or limited partnership, 56.13 or limited liability company other than a family farm56.14 corporation, an authorized farm corporation, an authorized56.15 livestock farm corporation, a family farm partnership, or56.16 authorized farm partnershipthose meeting any of the definitions 56.17 in subdivision 2, paragraphs (c) to (f) or (j) to (m), which, 56.18 during the period of time it holds agricultural land under 56.19 subdivision 2, paragraph (v)(x), intentionally destroys a 56.20 conservation practice as defined in section 103F.401, 56.21 subdivision 3, to which the state has made a financial 56.22 contribution, must pay the commissioner, for deposit in the 56.23 general fund, an amount equal to the state's total contributions 56.24 to that conservation practice plus interest from the time of 56.25 investment in the conservation practice. Interest must be 56.26 calculated at an annual percentage rate of 12 percent. 56.27 Sec. 71. Minnesota Statutes 1998, section 500.24, 56.28 subdivision 4, is amended to read: 56.29 Subd. 4. [REPORTS.] (a) The chief executive officer of 56.30 every pension or investment fund, corporation, orlimited 56.31 partnership, limited liability company, or entity that is 56.32 seeking to qualify for an exemption from the commissioner, and 56.33 the trustee of a family farm trust that holds any interest in 56.34 agricultural land or land used for the breeding, feeding, 56.35 pasturing, growing, or raising of livestock, dairy or poultry, 56.36 or products thereof, or land used for the production of 57.1 agricultural crops or fruit or other horticultural products, 57.2 other than a bona fide encumbrance taken for purposes of 57.3 security, or which is engaged in farming or proposing to 57.4 commence farming in this state after May 20, 1973, shall file 57.5 with the commissioner a report containing the following 57.6 information and documents: 57.7 (1) the name of the pension or investment fund, 57.8 corporation, orlimited partnership, or limited liability 57.9 company and its place of incorporation, certification, or 57.10 registration; 57.11 (2) the address of the pension or investment plan 57.12 headquarters or of the registered office of the corporation in 57.13 this state, the name and address of its registered agent in this 57.14 state and, in the case of a foreign corporation or, limited 57.15 partnership, or limited liability company, the address of its 57.16 principal office in its place of incorporation, certification, 57.17 or registration; 57.18 (3) the acreage and location listed by quarter-quarter 57.19 section, township, and county of each lot or parcel of 57.20 agricultural land or land used for the keeping or feeding of 57.21 poultry in this state owned or leased by the pension or 57.22 investment fund, limited partnership, orcorporation, or limited 57.23 liability company; 57.24 (4) the names and addresses of the officers, 57.25 administrators, directors, or trustees of the pension or 57.26 investment fund, or of the officers, shareholders owning more 57.27 than ten percent of the stock, including the percent of stock 57.28 owned by each such shareholder, andthe members of the board of 57.29 directors of the corporation, and the members of the limited 57.30 liability company, and the general and limited partners and the 57.31 percentage of interest in the partnership by each partner; 57.32 (5) the farm products which the pension or investment fund, 57.33 limited partnership, orcorporation, or limited liability 57.34 company produces or intends to produce on its agricultural land; 57.35 (6) with the first report, a copy of the title to the 57.36 property where the farming operations are or will occur 58.1 indicating the particular exception claimed under subdivision 3; 58.2 and 58.3 (7) with the first or second report, a copy of the 58.4 conservation plan proposed by the soil and water conservation 58.5 district, and with subsequent reports a statement of whether the 58.6 conservation plan was implemented. 58.7 The report of a corporation, trust, limited liability 58.8 company, or partnership seeking to qualify hereunder as a family 58.9 farm corporation, an authorized farm corporation, an authorized 58.10 livestock farm corporation, a family farm partnership, oran 58.11 authorized farm partnership, a family farm limited liability 58.12 company, an authorized farm limited liability company, or a 58.13 family farm trust or under an exemption from the commissioner 58.14 shall contain the following additional information: the number 58.15 of shares or the, partnership interests, or governance and 58.16 financial rights owned by persons or current beneficiaries of a 58.17 family farm trust residing on the farm or actively engaged in 58.18 farming, or their relatives within the third degree of kindred 58.19 according to the rules of the civil law or their spouses; the 58.20 name, address, and number of shares owned by each 58.21 shareholder or, partnership interests owned by each partner ;or 58.22 governance and financial rights owned by each member, and a 58.23 statement as to percentage of gross receipts of the corporation 58.24 derived from rent, royalties, dividends, interest, and 58.25 annuities. No pension or investment fund, limited 58.26 partnership, orcorporation, or limited liability company shall 58.27 commence farming in this state until the commissioner has 58.28 inspected the report and certified that its proposed operations 58.29 comply with the provisions of this section. 58.30 (b) Every pension or investment fund, limited 58.31 partnership, trust, orcorporation, or limited liability company 58.32 as described in paragraph (a) shall, prior to April 15 of each 58.33 year, file with the commissioner a report containing the 58.34 information required in paragraph (a), based on its operations 58.35 in the preceding calendar year and its status at the end of the 58.36 year. A pension or investment fund, limited partnership, or59.1 corporation, or limited liability company that does not file the 59.2 report by April 15 must pay a $500 civil penalty. The penalty 59.3 is a lien on the land being farmed under subdivision 3 until the 59.4 penalty is paid. 59.5 (c) The commissioner may, for good cause shown, issue a 59.6 written waiver or reduction of the civil penalty for failure to 59.7 make a timely filing of the annual report required by this 59.8 subdivision. The waiver or reduction is final and conclusive 59.9 with respect to the civil penalty, and may not be reopened or 59.10 modified by an officer, employee, or agent of the state, except 59.11 upon a showing of fraud or malfeasance or misrepresentation of a 59.12 material fact. The report required under paragraph (b) must be 59.13 completed prior to a reduction or waiver under this paragraph. 59.14 The commissioner may enter into an agreement under this 59.15 paragraph only once for each corporation or partnership. 59.16 (d) Failure to file a required report or the willful filing 59.17 of false information is a gross misdemeanor. 59.18 Sec. 72. Minnesota Statutes 1998, section 500.24, 59.19 subdivision 5, is amended to read: 59.20 Subd. 5. [ENFORCEMENT.] With reason to believe that a 59.21 corporation, limited partnership, limited liability company, 59.22 trust, or pension or investment fund is violating subdivision 3, 59.23 the attorney general shall commence an action in the district 59.24 court in which any agricultural lands relative to such violation 59.25 are situated, or if situated in two or more counties, in any 59.26 county in which a substantial part of the lands are situated. 59.27 The attorney general shall file for record with the county 59.28 recorder or the registrar of titles of each county in which any 59.29 portion of said lands are located a notice of the pendency of 59.30 the action as provided in section 557.02. If the court finds 59.31 that the lands in question are being held in violation of 59.32 subdivision 3, it shall enter an order so declaring. The 59.33 attorney general shall file for record any such order with the 59.34 county recorder or the registrar of titles of each county in 59.35 which any portion of said lands are located. Thereafter, the 59.36 pension or investment fund, limited partnership, or corporation 60.1 owning such land shall have a period of five years from the date 60.2 of such order to divest itself of such lands. The 60.3 aforementioned five-year limitation period shall be deemed a 60.4 covenant running with the title to the land against any pension 60.5 or investment fund, limited partnership, or corporate grantee or 60.6 assignee or the successor of such pension or investment fund, 60.7 limited partnership, or corporation. Any lands not so divested 60.8 within the time prescribed shall be sold at public sale in the 60.9 manner prescribed by law for the foreclosure of a mortgage by 60.10 action. In addition, any prospective or threatened violation 60.11 may be enjoined by an action brought by the attorney general in 60.12 the manner provided by law. 60.13 Sec. 73. Minnesota Statutes 1999 Supplement, section 60.14 500.245, subdivision 1, is amended to read: 60.15 Subdivision 1. [DISPOSAL OF LAND.] (a) A state or federal 60.16 agency, limited partnership, or acorporation, or limited 60.17 liability company may not lease or sell agricultural land or a 60.18 farm homestead before offering or making a good faith effort to 60.19 offer the land for sale or lease to the immediately preceding 60.20 former owner at a price no higher than the highest price offered 60.21 by a third party that is acceptable to the seller or lessor. 60.22 The offer must be made on the notice to offer form under 60.23 subdivision 2. The requirements of this subdivision do not 60.24 apply to a sale or lease by a corporation that is a family farm 60.25 corporation or an authorized farm corporation or to a sale or 60.26 lease by the commissioner of agriculture of property acquired by 60.27 the state under the family farm security program under chapter 60.28 41. This subdivision applies only to a sale or lease when the 60.29 seller or lessor acquired the property by enforcing a debt 60.30 against the agricultural land or farm homestead, including 60.31 foreclosure of a mortgage, accepting a deed in lieu of 60.32 foreclosure, terminating a contract for deed, or accepting a 60.33 deed in lieu of terminating a contract for deed. Selling or 60.34 leasing property to a third party at a price is prima facie 60.35 evidence that the price is acceptable to the seller or lessor. 60.36 The seller must provide written notice to the immediately 61.1 preceding former owner that the agricultural land or farm 61.2 homestead will be offered for sale at least 14 days before the 61.3 agricultural land or farm homestead is offered for sale. 61.4 (b) An immediately preceding former owner is the entity 61.5 with record legal title to the agricultural land or farm 61.6 homestead before acquisition by the state or federal agency or 61.7 corporation except: if the immediately preceding former owner 61.8 is a bankruptcy estate, the debtor in bankruptcy is the 61.9 immediately preceding former owner; and if the agricultural land 61.10 or farm homestead was acquired by termination of a contract for 61.11 deed or deed in lieu of termination of a contract for deed, the 61.12 immediately preceding former owner is the purchaser under the 61.13 contract for deed. For purposes of this subdivision, only a 61.14 family farm, family farm corporation, orfamily farm partnership 61.15 or family farm limited liability company can be an immediately 61.16 preceding former owner. 61.17 (c) An immediately preceding former owner may elect to 61.18 purchase or lease the entire property or an agreed to portion of 61.19 the property. If the immediately preceding former owner elects 61.20 to purchase or lease a portion of the property, the election 61.21 must be reported in writing to the seller or lessor prior to the 61.22 time the property is first offered for sale or lease. If 61.23 election is made to purchase or lease a portion of the property, 61.24 the portion must be contiguous and compact so that it does not 61.25 unreasonably reduce access to or the value of the remaining 61.26 property. 61.27 (d) For purposes of this subdivision, the term "a price no 61.28 higher than the highest price offered by a third party" means 61.29 the acceptable cash price offered by a third party or the 61.30 acceptable time-price offer made by a third party. A cash price 61.31 offer is one that involves simultaneous transfer of title for 61.32 payment of the entire amount of the offer. If the acceptable 61.33 offer made by a third party is a time-price offer, the seller or 61.34 lessor must make the same time-price offer or an equivalent cash 61.35 offer to the immediately preceding former owner. An equivalent 61.36 cash offer is equal to the total of the payments made over a 62.1 period of the time-price offer discounted by yield curve of the 62.2 United States treasury notes and bonds of similar maturity on 62.3 the first business day of the month in which the offer is 62.4 personally delivered or mailed for time periods similar to the 62.5 time period covered by the time-price offer, plus 2.0 percent. 62.6 A time-price offer is an offer that is financed entirely or 62.7 partially by the seller and includes an offer to purchase under 62.8 a contract for deed or mortgage. An equivalent cash offer is 62.9 not required to be made if the state participates in an offer to 62.10 a third party through the rural finance authority. 62.11 (e) This subdivision applies to a seller when the property 62.12 is sold and to a lessor each time the property is leased, for 62.13 the time period specified in section 500.24, subdivision 2, 62.14 paragraph (v), after the agricultural land is acquired except: 62.15 (1) an offer to lease to the immediately preceding former 62.16 owner is required only until the immediately preceding owner 62.17 fails to accept an offer to lease the property or the property 62.18 is sold; 62.19 (2) an offer to sell to the immediately preceding former 62.20 owner is required until the property is sold; and 62.21 (3) if the immediately preceding former owner elects to 62.22 lease or purchase a portion of the property, this subdivision 62.23 does not apply to the seller with regard to the balance of the 62.24 property after the election is made under paragraph (c). 62.25 (f) The notice of an offer under subdivision 2 that is 62.26 personally delivered with a signed receipt or sent by certified 62.27 mail with a receipt of mailing to the immediately preceding 62.28 former owner's last known address is a good faith offer. 62.29 (g) This subdivision does not apply to a sale or lease that 62.30 occurs after the seller or lessor has held the property for the 62.31 time period specified in section 500.24, subdivision 2, 62.32 paragraph (v)(x). 62.33 (h) For purposes of this subdivision, if the immediately 62.34 preceding former owner is a bankruptcy estate the debtor in the 62.35 bankruptcy is the immediately preceding owner. 62.36 (i) The immediately preceding former owner must exercise 63.1 the right to lease all or a portion of the agricultural land or 63.2 a homestead located on agricultural land in writing within 15 63.3 days after an offer to lease under this subdivision is mailed 63.4 with a receipt of mailing or personally delivered. If election 63.5 is made to lease only the homestead or a portion of the 63.6 agricultural land, the portion to be leased must be clearly 63.7 identified in writing. The immediately preceding former owner 63.8 must exercise the right to buy the agricultural land, a portion 63.9 of the agricultural land, or a farm homestead located on 63.10 agricultural land, in writing, within 65 days after an offer to 63.11 buy under this subdivision is mailed with a receipt of mailing 63.12 or is personally delivered. Within ten days after exercising 63.13 the right to lease or buy by accepting the offer, the 63.14 immediately preceding owner must fully perform according to the 63.15 terms of the offer including paying the amounts due. A seller 63.16 may sell and a lessor may lease the agricultural land or farm 63.17 homestead subject to this subdivision to the third party in 63.18 accordance with their lease or purchase agreement if: 63.19 (1) the immediately preceding former owner does not accept 63.20 an offer to lease or buy before the offer terminates; or 63.21 (2) the immediately preceding former owner does not perform 63.22 the obligations of the offer, including paying the amounts due, 63.23 within ten days after accepting the offer. 63.24 (j) A certificate indicating whether or not the property 63.25 contains agricultural land or a farm homestead that is signed by 63.26 the county assessor where the property is located and recorded 63.27 in the office of the county recorder or the registrar of titles 63.28 where the property is located is prima facie evidence of whether 63.29 the property is agricultural land or a farm homestead. 63.30 (k) As prima facie evidence that an offer to sell or lease 63.31 agricultural land or a farm homestead has terminated, a receipt 63.32 of mailing the notice under subdivision 2 and an affidavit, 63.33 signed by a person authorized to act on behalf of a state, 63.34 federal agency, or corporation selling or leasing the 63.35 agricultural land or a farm homestead may be filed in the office 63.36 of the county recorder or registrar of titles of the county 64.1 where the agricultural land or farm homestead is located. The 64.2 affidavit must state that: 64.3 (1) notice of an offer to buy or lease the agricultural 64.4 land or farm homestead was provided to the immediately preceding 64.5 former owner at a price not higher than the highest price 64.6 offered by a third party that is acceptable; 64.7 (2) the time during which the immediately preceding former 64.8 owner is required to exercise the right to buy or lease the 64.9 agricultural land or farm homestead has expired; 64.10 (3) the immediately preceding former owner has not 64.11 exercised the right to buy or lease the agricultural land or 64.12 farm homestead as provided in this subdivision or has accepted 64.13 an offer and has not fully performed according to the terms of 64.14 the offer; and 64.15 (4) the offer to the immediately preceding former owner has 64.16 terminated. 64.17 (l) The right of an immediately preceding former owner to 64.18 receive an offer to lease or purchase agricultural land under 64.19 this subdivision or to lease or purchase at a price no higher 64.20 than the highest price offered by a third party that is 64.21 acceptable to the seller or lessor may be extinguished or 64.22 limited by an express statement signed by the immediately 64.23 preceding owner that complies with the plain language 64.24 requirements of section 325G.31. The right may not be 64.25 extinguished or limited except by: 64.26 (1) an express statement in a deed in lieu of foreclosure 64.27 of the agricultural land; 64.28 (2) an express statement in a deed in lieu of a termination 64.29 of a contract for deed for the agricultural land; 64.30 (3) an express statement conveying the right to the state 64.31 or federal agency or corporation owning the agricultural land 64.32 that is required to make an offer under this subdivision; 64.33 however, the preceding former owner may rescind the conveyance 64.34 by notifying the state or federal agency or corporation in 64.35 writing within 20 calendar days after signing the express 64.36 statement; 65.1 (4) to cure a title defect, an express statement conveying 65.2 the right may be made to a person to whom the agricultural land 65.3 has been transferred by the state or federal agency or 65.4 corporation; or 65.5 (5) an express statement conveying the right to a contract 65.6 for deed vendee to whom the agricultural land or farm homestead 65.7 was sold under a contract for deed by the immediately preceding 65.8 former owner if the express statement and the contract for deed 65.9 are recorded. 65.10 (m) The right of an immediately preceding former owner to 65.11 receive an offer to lease or purchase agricultural land under 65.12 this subdivision may not be assigned or transferred except as 65.13 provided in paragraph (l), but may be inherited. 65.14 (n) An immediately preceding former owner, except a former 65.15 owner who is actively engaged in farming as defined in section 65.16 500.24, subdivision 2, paragraph (a), and who agrees to remain 65.17 actively engaged in farming on a portion of the agricultural 65.18 land or farm homestead for at least one year after accepting an 65.19 offer under this subdivision, may not sell agricultural land 65.20 acquired by accepting an offer under this subdivision if the 65.21 arrangement of the sale was negotiated or agreed to prior to the 65.22 former owner accepting the offer under this subdivision. A 65.23 person who sells property in violation of this paragraph is 65.24 liable for damages plus reasonable attorney fees to a person who 65.25 is damaged by a sale in violation of this paragraph. There is a 65.26 rebuttable presumption that a sale by an immediately preceding 65.27 former owner is in violation of this paragraph if the sale takes 65.28 place within 270 days of the former owner accepting the offer 65.29 under this subdivision. This paragraph does not apply to a sale 65.30 by an immediately preceding former owner to the owner's spouse, 65.31 the owner's parents, the owner's sisters and brothers, the 65.32 owner's spouse's sisters and brothers, or the owner's children. 65.33 Sec. 74. Minnesota Statutes 1998, section 500.245, 65.34 subdivision 2, is amended to read: 65.35 Subd. 2. [NOTICE OF OFFER.] (a) The state, a federal 65.36 agency, limited partnership, or acorporation, or limited 66.1 liability company subject to subdivision 1 must provide a notice 66.2 of an offer to sell or lease agricultural land substantially as 66.3 follows, after inserting the appropriate terms within the 66.4 parentheses: 66.5 "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND 66.6 TO: (...Immediately preceding former owner...) 66.7 FROM: (...The state, federal agency, limited 66.8 partnership, orcorporation, or limited 66.9 liability company subject to 66.10 subdivision 1...) 66.11 DATE: (...date notice is mailed or personally 66.12 delivered...) 66.13 (...The state, federal agency, limited partnership, or66.14 corporation, or limited liability company...) HAS ACQUIRED THE 66.15 AGRICULTURAL LAND DESCRIBED BELOW AND HAS RECEIVED AN ACCEPTABLE 66.16 OFFER TO (LEASE, SELL) THE AGRICULTURAL LAND FROM ANOTHER 66.17 PARTY. UNDER MINNESOTA STATUTES, SECTION 500.245, SUBDIVISION 66.18 1, AN OFFER FROM (...the state, federal agency, limited 66.19 partnership, orcorporation, or limited liability company...) 66.20 MUST BE MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER 66.21 MADE BY ANOTHER PARTY. 66.22 THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY 66.23 (...approximate number of acres...) ACRES AND IS INFORMALLY 66.24 DESCRIBED AS FOLLOWS: 66.25 (Informal description of the agricultural land being 66.26 offered that reasonably describes the land. This description 66.27 does not need to be a legal description.) 66.28 (...The state, federal agency, limited partnership, or66.29 corporation, or limited liability company...) OFFERS TO (SELL, 66.30 LEASE) THE AGRICULTURAL LAND DESCRIBED ABOVE FOR A CASH PRICE OF 66.31 $(...cash price or equivalent cash price for lease and lease 66.32 period, or cash price or equivalent cash price for sale of 66.33 land...), WHICH IS NOT HIGHER THAN THE PRICE OFFERED BY ANOTHER 66.34 PARTY. THE PRICE IS OFFERED ON THE FOLLOWING TERMS: 66.35 (Terms, if any, of acceptable offer) 66.36 IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the 67.1 state, federal agency, limited partnership, orcorporation, or 67.2 limited liability company...) IN WRITING THAT YOU ACCEPT THE 67.3 OFFER OR SIGN UNDERNEATH THE FOLLOWING PARAGRAPH AND RETURN A 67.4 COPY OF THIS NOTICE BY (15 for a lease, 65 for a sale) DAYS 67.5 AFTER THIS NOTICE IS PERSONALLY DELIVERED OR MAILED TO YOU. THE 67.6 OFFER IN THIS NOTICE TERMINATES ON (...date of termination - 15 67.7 days for lease and 65 days for sale after date of mailing or 67.8 personal delivery...) 67.9 ACCEPTANCE OF OFFER 67.10 I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND 67.11 DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE. AS 67.12 PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE 67.13 TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE 67.14 OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER. I 67.15 UNDERSTAND THAT NEGOTIATING OR AGREEING TO AN ARRANGEMENT TO 67.16 SELL THE AGRICULTURAL LAND TO ANOTHER PERSON PRIOR TO ACCEPTING 67.17 THIS OFFER MAY BE A VIOLATION OF LAW AND I MAY BE LIABLE TO A 67.18 PERSON DAMAGED BY THE SALE. 67.19 67.20 ......................................... 67.21 Signature of Former Owner Accepting Offer 67.22 67.23 ......................................... 67.24 Date" 67.25 IMPORTANT NOTICE 67.26 ANY ACTION FOR THE RECOVERY OF THE AGRICULTURAL LAND 67.27 DESCRIBED ABOVE OR ANY ACTION FOR DAMAGES, EXCEPT FOR DAMAGES 67.28 FOR FRAUD, REGARDING THIS OFFER MUST BE COMMENCED BY A LAWSUIT 67.29 BEFORE THE EXPIRATION OF THREE YEARS AFTER THIS LAND IS SOLD TO 67.30 ANOTHER PARTY. UPON FILING A LAWSUIT, YOU MUST ALSO FILE A 67.31 NOTICE OF LIS PENDENS WITH THE COUNTY RECORDER OR REGISTRAR OF 67.32 TITLES IN THE COUNTY WHERE THE LAND IS LOCATED. 67.33 (b) For an offer to sell, a copy of the purchase agreement 67.34 containing the price and terms of the highest offer made by a 67.35 third party that is acceptable to the seller and a signed 67.36 affidavit by the seller affirming that the purchase agreement is 67.37 true, accurate, and made in good faith must be included with the 68.1 notice under this subdivision. At the seller's discretion, 68.2 reference to the third party's identity may be deleted from the 68.3 copy of the purchase agreement. 68.4 (c) For an offer to lease, a copy of the lease containing 68.5 the price and terms of the highest offer made by a third party 68.6 that is acceptable to the lessor and a signed affidavit by the 68.7 lessor affirming that the lease is true, accurate, and made in 68.8 good faith must be included with the notice under this 68.9 subdivision. At the lessor's discretion, reference to the third 68.10 party's identity may be deleted from the copy of the lease 68.11 agreement. 68.12 (d) The affidavit under paragraphs (b) and (c) is subject 68.13 to section 609.48. 68.14 Sec. 75. [SEED POTATOES; CLEARWATER COUNTY.] 68.15 Notwithstanding the seed potato certification requirements 68.16 under Minnesota Statutes, section 21.1196, in calendar year 68.17 2000, seed potatoes may be planted in Clearwater county without 68.18 certification if the seed potatoes have had at least field 68.19 inspection as required for certified seed potatoes, have passed 68.20 the field inspection standards of disease tolerance, and are 68.21 free from ring rot. 68.22 Sec. 76. [EFFECTIVE DATE.] 68.23 Section 22 is effective the day following final enactment 68.24 and applies to claims for corrective action costs incurred after 68.25 that date. Sections 67 to 74 are effective the day following 68.26 final enactment.