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SF 1016

1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 03/29/2011 10:46am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to agriculture; appropriating money for agriculture, the Board of Animal
1.3Health, and the Agricultural Utilization Research Institute; changing certain
1.4agriculture-related provisions, requirements, and programs;amending Minnesota
1.5Statutes 2010, sections 18C.005, by adding a subdivision; 18C.111, by adding a
1.6subdivision; 18D.201, by adding a subdivision; 18E.03, subdivision 4; 27.041,
1.7by adding a subdivision; 38.01; 41A.12, subdivision 3; 373.01, subdivision 1;
1.8repealing Minnesota Statutes 2010, section 41A.09, subdivisions 1a, 2a, 3a, 4, 10.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10
Section 1. SUMMARY OF APPROPRIATIONS.
1.11The amounts shown in this section summarize direct appropriations, by fund, made
1.12in this act.
1.13
2012
2013
Total
1.14
General
$
42,287,000
$
34,314,000
$
76,601,000
1.15
Agricultural
$
800,000
$
800,000
$
1,600,000
1.16
Remediation
$
388,000
$
388,000
$
776,000
1.17
Total
$
43,475,000
$
35,502,000
$
78,977,000

1.18
Sec. 2. AGRICULTURE APPROPRIATIONS.
1.19The sums shown in the columns marked "Appropriations" are appropriated to the
1.20agencies and for the purposes specified in this act. The appropriations are from the general
1.21fund, or another named fund, and are available for the fiscal years indicated for each
1.22purpose. The figures "2012" and "2013" used in this act mean that the appropriations
1.23listed under them are available for the fiscal year ending June 30, 2012, or June 30, 2013,
1.24respectively. "The first year" is fiscal year 2012. "The second year" is fiscal year 2013.
1.25"The biennium" is fiscal years 2012 and 2013.
2.1
APPROPRIATIONS
2.2
Available for the Year
2.3
Ending June 30
2.4
2012
2013

2.5
Sec. 3. DEPARTMENT OF AGRICULTURE
2.6
Subdivision 1.Total Appropriation
$
35,851,000
$
27,878,000
2.7
Appropriations by Fund
2.8
2012
2013
2.9
General
34,663,000
26,690,000
2.10
Remediation
388,000
388,000
2.11
Agricultural
800,000
800,000
2.12The amounts that may be spent for each
2.13purpose are specified in the following
2.14subdivisions.
2.15
Subd. 2.Protection Services
12,193,000
12,193,000
2.16
Appropriations by Fund
2.17
General
11,805,000
11,805,000
2.18
Remediation
388,000
388,000
2.19$388,000 the first year and $388,000 the
2.20second year are from the remediation fund
2.21for administrative funding for the voluntary
2.22cleanup program.
2.23$75,000 the first year and $75,000 the second
2.24year are for compensation for destroyed or
2.25crippled animals under Minnesota Statutes,
2.26section 3.737. If the amount in the first year
2.27is insufficient, the amount in the second year
2.28is available in the first year.
2.29$75,000 the first year and $75,000 the second
2.30year are for compensation for crop damage
2.31under Minnesota Statutes, section 3.7371. If
2.32the amount in the first year is insufficient, the
2.33amount in the second year is available in the
2.34first year.
3.1If the commissioner determines that claims
3.2made under Minnesota Statutes, section
3.33.737 or 3.7371, are unusually high, amounts
3.4appropriated for either program may be
3.5transferred to the appropriation for the other
3.6program.
3.7$245,000 the first year and $245,000 the
3.8second year are for an increase in retail
3.9food handler inspections. This is a onetime
3.10appropriation. No later than February 1,
3.112013, the commissioner shall report to the
3.12chairs and ranking minority members of
3.13the legislative committees with jurisdiction
3.14over agriculture finance regarding the
3.15commissioner's progress in addressing the
3.16department's perceived shortfall of necessary
3.17inspections.
3.18
3.19
Subd. 3.Agricultural Marketing and
Development
3,632,000
3,632,000
3.20$186,000 the first year and $186,000 the
3.21second year are for transfer to the Minnesota
3.22grown account and may be used as grants
3.23for Minnesota grown promotion under
3.24Minnesota Statutes, section 17.102. Grants
3.25may be made for one year. Notwithstanding
3.26Minnesota Statutes, section 16A.28, the
3.27appropriations encumbered under contract on
3.28or before June 30, 2013, for Minnesota grown
3.29grants in this paragraph are available until
3.30June 30, 2015. $50,000 of the appropriation
3.31in each year is for efforts to promote
3.32Minnesota grown products in retail food
3.33establishments including but not limited to
3.34restaurants, grocery stores, and convenience
3.35stores.
4.1Up to $100,000 each year may be used
4.2for grants to farmers for demonstration
4.3projects involving sustainable agriculture as
4.4authorized in Minnesota Statutes, section
4.517.116. Of the amount for grants, up to
4.6$20,000 may be used for dissemination
4.7of information about the demonstration
4.8projects. Notwithstanding Minnesota
4.9Statutes, section 16A.28, the appropriations
4.10encumbered under contract on or before June
4.1130, 2013, for sustainable agriculture grants
4.12in this paragraph are available until June 30,
4.132015.
4.14$100,000 the first year and $100,000 the
4.15second year are to provide training and
4.16technical assistance to county and town
4.17officials relating to livestock siting issues
4.18and local zoning and land use planning,
4.19including maintenance of the checklist
4.20template clarifying the federal, state,
4.21and local government requirements for
4.22consideration of an animal agriculture
4.23modernization or expansion project. For the
4.24training and technical assistance program,
4.25the commissioner shall continue to seek
4.26guidance, advice, and support of livestock
4.27producer organizations, general agricultural
4.28organizations, local government associations,
4.29academic institutions, other government
4.30agencies, and others with expertise in land
4.31use and agriculture.
4.32$10,000 the first year and $10,000 the
4.33second year are for annual cost-share
4.34payments to resident farmers or persons
4.35who sell, process, or package agricultural
4.36products in this state for the costs of organic
5.1certification. Annual cost-share payments
5.2per farmer must be two-thirds of the cost
5.3of the certification or $350, whichever is
5.4less. In any year that a resident farmer or
5.5person who sells, processes, or packages
5.6agricultural products in this state receives
5.7a federal organic certification cost-share
5.8payment, that resident farmer or person is
5.9not eligible for state cost-share payments. A
5.10certified farmer is eligible to receive annual
5.11certification cost-share payments for up to
5.12five years. The commissioner may allocate
5.13any excess appropriation in either fiscal year
5.14for organic market and program development
5.15including organic producer education efforts,
5.16assistance for persons transitioning from
5.17conventional to organic agriculture, or
5.18sustainable agriculture demonstration grants
5.19authorized under Minnesota Statutes, section
5.2017.116, and pertaining to organic research or
5.21demonstration. Any unencumbered balance
5.22does not cancel at the end of the first year
5.23and is available for the second year.
5.24$100,000 each year is for a licensed
5.25education professional for the Agriculture
5.26in the Classroom program to develop and
5.27disseminate curriculum, provide teacher
5.28training opportunities, and work with
5.29schools to enhance agricultural literacy by
5.30incorporating agriculture into classroom
5.31curriculum.
5.32
5.33
Subd. 4.Bioenergy and Value-Added
Agriculture
13,353,000
5,280,000
5.34$13,353,000 the first year is for final
5.35ethanol producer deficiency payments under
5.36Minnesota Statutes, section 41A.09. If the
6.1appropriation in either year exceeds the total
6.2amount for which all producers are eligible,
6.3the balance in the appropriation is available
6.4for the agricultural growth, research, and
6.5innovation program under Minnesota
6.6Statutes, section 41A.12. The funding base
6.7for this program in fiscal year 2014 and fiscal
6.8year 2015 is $10,291,000 per year.
6.9
6.10
Subd. 5.Administration and Financial
Assistance
6,673,000
6,773,000
6.11
Appropriations by Fund
6.12
General
5,873,000
5,973,000
6.13
Agricultural
800,000
800,000
6.14$634,000 the first year and $634,000 the
6.15second year are for continuation of the dairy
6.16development and profitability enhancement
6.17and dairy business planning grant programs
6.18established under Laws 1997, chapter
6.19216, section 7, subdivision 2, and Laws
6.202001, First Special Session chapter 2,
6.21section 9, subdivision 2. The commissioner
6.22may allocate the available sums among
6.23permissible activities, including efforts to
6.24improve the quality of milk produced in the
6.25state in the proportions that the commissioner
6.26deems most beneficial to Minnesota's
6.27dairy farmers. The commissioner must
6.28submit a detailed accomplishment report
6.29and a work plan detailing future plans for,
6.30and anticipated accomplishments from,
6.31expenditures under this program to the
6.32chairs and ranking minority members of the
6.33legislative committees with jurisdiction over
6.34agricultural policy and finance on or before
6.35the start of each fiscal year. If significant
6.36changes are made to the plans in the course
7.1of the year, the commissioner must notify the
7.2chairs and ranking minority members.
7.3$47,000 the first year and $47,000 the
7.4second year are for the Northern Crops
7.5Institute. These appropriations may be spent
7.6to purchase equipment.
7.7$18,000 the first year and $18,000 the
7.8second year are for a grant to the Minnesota
7.9Livestock Breeders Association.
7.10$235,000 the first year and $235,000 the
7.11second year are for grants to the Minnesota
7.12Agricultural Education and Leadership
7.13Council for programs of the council under
7.14Minnesota Statutes, chapter 41D.
7.15$474,000 the first year and $474,000 the
7.16second year are for payments to county and
7.17district agricultural societies and associations
7.18under Minnesota Statutes, section 38.02,
7.19subdivision 1. Aid payments to county and
7.20district agricultural societies and associations
7.21shall be disbursed no later than July 15 of
7.22each year. These payments are the amount of
7.23aid from the state for an annual fair held in
7.24the previous calendar year.
7.25$1,000 the first year and $1,000 the second
7.26year are for grants to the Minnesota State
7.27Poultry Association.
7.28$108,000 the first year and $108,000 the
7.29second year are for annual grants to the
7.30Minnesota Turf Seed Council for basic
7.31and applied research on: (1) the improved
7.32production of forage and turf seed related to
7.33new and improved varieties; and (2) native
7.34plants, including plant breeding, nutrient
7.35management, pest management, disease
8.1management, yield, and viability. The grant
8.2recipient may subcontract with a qualified
8.3third party for some or all of the basic
8.4or applied research. The grant recipient
8.5must actively participate in the Agricultural
8.6Utilization Research Institute's Renewable
8.7Energy Roundtable.
8.8$500,000 the first year and $500,000 the
8.9second year are for grants to Second Harvest
8.10Heartland on behalf of Minnesota's six
8.11Second Harvest food banks for the purchase
8.12of milk for distribution to Minnesota's food
8.13shelves and other charitable organizations
8.14that are eligible to receive food from the food
8.15banks. Milk purchased under the grants must
8.16be acquired from Minnesota milk processors
8.17and based on low-cost bids. The milk must be
8.18allocated to each Second Harvest food bank
8.19serving Minnesota according to the formula
8.20used in the distribution of United States
8.21Department of Agriculture commodities
8.22under The Emergency Food Assistance
8.23Program (TEFAP). Second Harvest
8.24Heartland must submit quarterly reports
8.25to the commissioner on forms prescribed
8.26by the commissioner. The reports must
8.27include, but are not limited to, information
8.28on the expenditure of funds, the amount
8.29of milk purchased, and the organizations
8.30to which the milk was distributed. Second
8.31Harvest Heartland may enter into contracts
8.32or agreements with food banks for shared
8.33funding or reimbursement of the direct
8.34purchase of milk. Each food bank receiving
8.35money from this appropriation may use up to
9.1two percent of the grant for administrative
9.2expenses.
9.3$94,000 the first year and $94,000 the
9.4second year are for transfer to the Board of
9.5Trustees of the Minnesota State Colleges
9.6and Universities for statewide mental health
9.7counseling support to farm families and
9.8business operators through farm business
9.9management programs at Central Lakes
9.10College and Ridgewater College.
9.11$17,000 the first year and $17,000 the
9.12second year are for grants to the Minnesota
9.13Horticultural Society.
9.14Notwithstanding Minnesota Statutes,
9.15section 18C.131, $800,000 the first year
9.16and $800,000 the second year are from the
9.17fertilizer account in the agricultural fund
9.18for grants for fertilizer research as awarded
9.19by the Minnesota Agricultural Fertilizer
9.20Research and Education Council under
9.21Minnesota Statutes, section 18C.71. The
9.22amount appropriated in either fiscal year
9.23must not exceed 57 percent of the inspection
9.24fee revenue collected under Minnesota
9.25Statutes, section 18C.425, subdivision 6,
9.26during the previous fiscal year. No later
9.27than February 1, 2013, the commissioner
9.28shall report to the legislative committees
9.29with jurisdiction over agriculture finance.
9.30The report must include the progress and
9.31outcome of funded projects as well as the
9.32sentiment of the council concerning the need
9.33for additional research funds.
10.1$100,000 the second year is for a grant to the
10.2Center for Rural Policy and Development in
10.3St. Peter.
10.4The commissioner may allocate operating
10.5reductions in this subdivision to program
10.6operations throughout the agency.

10.7
Sec. 4. BOARD OF ANIMAL HEALTH
$
4,841,000
$
4,841,000

10.8
10.9
Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,783,000
$
2,783,000

10.10    Sec. 6. Minnesota Statutes 2010, section 18C.005, is amended by adding a subdivision
10.11to read:
10.12    Subd. 1b. Ammonia and anhydrous ammonia. "Ammonia" and "anhydrous
10.13ammonia" are used interchangeably and mean a compound formed by the chemical
10.14combinations of the elements nitrogen and hydrogen in the molar proportion of one
10.15part nitrogen to three parts hydrogen. This relationship is shown by the chemical
10.16formula, NH3. On a weight basis, the ratio is 14 parts nitrogen to three parts hydrogen
10.17or approximately 82 percent nitrogen to 18 percent hydrogen. Ammonia may exist in
10.18either a gaseous or a liquid state. Ammonia or anhydrous ammonia does not include
10.19aqua ammonia or ammonium hydroxide, which are solutions of ammonia in water and
10.20are sometimes called ammonia.

10.21    Sec. 7. Minnesota Statutes 2010, section 18C.111, is amended by adding a subdivision
10.22to read:
10.23    Subd. 4. Certification of regulatory compliance. (a) The commissioner may,
10.24under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
10.25perform a regulatory compliance inspection of any person or site that stores, handles, or
10.26distributes ammonia or anhydrous ammonia fertilizer.
10.27(b) Pursuant to those rules, a person certified under paragraph (a) may issue a
10.28certification of compliance to an inspected person or site if the certified person documents
10.29in writing full compliance with the provisions of this chapter and rules adopted under
10.30this chapter.
10.31(c) A person or site issued a certification of compliance must provide a copy of the
10.32certification to the commissioner immediately upon request or within 90 days following
10.33certification.
11.1(d) Certifications of compliance are valid for a period of three years. The
11.2commissioner may determine a different time period in the interest of public safety or for
11.3other reasonable cause.

11.4    Sec. 8. Minnesota Statutes 2010, section 18D.201, is amended by adding a subdivision
11.5to read:
11.6    Subd. 7. Compliance and inspection frequency. (a) The commissioner may
11.7implement policies and procedures that provide for a decrease in the frequency of
11.8regulatory inspection for a person or site issued a certification of compliance pursuant to
11.9section 18C.111, subdivision 4.
11.10(b) The commissioner must consider the compliance history, enforcement record,
11.11and other public safety or environmental risk factors in determining the eligibility of a
11.12person or site for the reduced frequency of inspection described in paragraph (a). If the
11.13commissioner determines that a person or site is ineligible, the commissioner must notify
11.14the person or site of that ineligibility and the reasons for that determination.
11.15(c) The compliance findings of the commissioner's inspection of a person or site that
11.16stores, handles, or distributes ammonia and anhydrous ammonia fertilizer may be used
11.17as a basis for decreased frequency of regulatory inspection, as described in paragraphs
11.18(a) and (b).

11.19    Sec. 9. Minnesota Statutes 2010, section 18E.03, subdivision 4, is amended to read:
11.20    Subd. 4. Fee. (a) The response and reimbursement fee consists of the surcharges and
11.21any adjustments made by the commissioner in this subdivision and shall be collected by
11.22the commissioner. The amount of the response and reimbursement fee shall be determined
11.23and imposed annually by the commissioner as required to satisfy the requirements in
11.24subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in
11.25proportion to the amount of the surcharges listed in this subdivision. License application
11.26categories under paragraph (d) must be charged in proportion to the amount of surcharges
11.27imposed up to a maximum of 50 percent of the license fees set under chapters 18B and
11.2818C.
11.29    (b) The commissioner shall impose a surcharge on pesticides registered under
11.30chapter 18B to be collected as a surcharge on the gross sales under section 18B.26,
11.31subdivision 3
, that is equal to 0.1 percent of sales of the pesticide in the state and sales
11.32of pesticides for use in the state during the previous calendar year, except the surcharge
11.33may not be imposed on pesticides that are sanitizers or disinfectants as determined by the
11.34commissioner. No surcharge is required if the surcharge amount based on percent of
12.1annual gross sales of a nonagricultural pesticide is less than $10. Sales of pesticides in
12.2the state for use outside of the state are exempt from the surcharge in this paragraph if
12.3the registrant, agricultural pesticide dealer, or pesticide dealer properly documents the
12.4sale location and the distributors.
12.5    (c) The commissioner shall impose a ten cents per ton surcharge on the inspection
12.6fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant
12.7amendments.
12.8    (d) The commissioner shall impose a surcharge on the license application of persons
12.9licensed under chapters 18B and 18C consisting of:
12.10    (1) a $75 surcharge for each site where pesticides are stored or distributed, to
12.11be imposed as a surcharge on pesticide dealer application fees under section 18B.31,
12.12subdivision 5
, and the agricultural pesticide dealer application fee under section 18B.316,
12.13subdivision 10
;
12.14    (2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil
12.15amendment is distributed, to be imposed on persons licensed under sections 18C.415
12.16and 18C.425;
12.17    (3) a $50 surcharge to be imposed on a structural pest control applicator license
12.18application under section 18B.32, subdivision 6, for business license applications only;
12.19    (4) a $20 surcharge to be imposed on commercial applicator license application fees
12.20under section 18B.33, subdivision 7; and
12.21    (5) a $20 surcharge to be imposed on noncommercial applicator license application
12.22fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a
12.23noncommercial applicator that is a state agency, political subdivision of the state, the
12.24federal government, or an agency of the federal government.
12.25    (e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold
12.26for use outside of the state unless:
12.27    (1) the distributor properly documents that it has less than $2,000,000 per year in
12.28wholesale value of pesticides stored and transferred through the site; or
12.29    (2) the registrant pays the surcharge under paragraph (b) and the registration fee
12.30under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for
12.31use outside of the state.
12.32    (f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for
12.33licenses, and inspection fees imposed on or after July 1, 1990.

12.34    Sec. 10. Minnesota Statutes 2010, section 27.041, is amended by adding a subdivision
12.35to read:
13.1    Subd. 3. Account; appropriation. A wholesale produce dealers account is created
13.2in the agricultural fund. All fees, charges, and penalties collected under sections 27.01 to
13.327.069 and 27.11 to 27.19, including interest attributable to that money, shall be deposited
13.4in the wholesale produce dealers account. Money in the account is appropriated to the
13.5commissioner for the purposes of sections 27.01 to 27.069 and 27.11 to 27.19.

13.6    Sec. 11. Minnesota Statutes 2010, section 38.01, is amended to read:
13.738.01 COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.
13.8(a) An agricultural society or association may be incorporated by citizens of any
13.9county, or two or more counties jointly, but only one agricultural society shall be organized
13.10in any county. An agricultural society may sue and be sued in its corporate name; may
13.11adopt bylaws, rules, and regulations, alter and amend the same; may purchase and hold,
13.12lease and control any real or personal property deemed to promote the objects of the
13.13society, and may rent, lease, sell, exchange, and convey the same. Any income from
13.14the rental or lease of the property may be used for any or all of the following purposes:
13.15(1) Acquisition of additional real property; (2) Construction of additional buildings; or
13.16(3) Maintenance and care of the society's property. This section shall not be construed
13.17to preclude the continuance of any agricultural society now existing or the granting of
13.18aid to the society.
13.19(b) An agricultural society shall have jurisdiction and control of the grounds upon
13.20which its fairs are held and of the streets and adjacent grounds during the fair, so far
13.21as may be necessary for fair purposes, and are exempt from local zoning ordinances
13.22throughout the year as provided in section 38.16.
13.23(c) The society may contract with the sheriff, local municipality, or security guard as
13.24defined in section 626.88 to provide the society with police service. A person providing
13.25police service pursuant to a contract is not, by reason of the contract, classified as an
13.26employee of the agricultural society for any purpose other than the discharge of powers
13.27and duties under the contract.
13.28(d) Any person who shall willfully violate any rule or regulation made by agricultural
13.29societies during the days of a fair shall be guilty of a misdemeanor.
13.30The provisions of this section supersede all special laws on the same subject.

13.31    Sec. 12. Minnesota Statutes 2010, section 41A.12, subdivision 3, is amended to read:
13.32    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
13.33minority members of the house of representatives and senate committees with jurisdiction
14.1over agriculture finance, must allocate available funds among eligible uses as specified by
14.2the legislature, develop competitive eligibility criteria, and award funds on a needs basis.

14.3    Sec. 13. Minnesota Statutes 2010, section 373.01, subdivision 1, is amended to read:
14.4    Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic
14.5and corporate and may:
14.6    (1) Sue and be sued.
14.7    (2) Acquire and hold real and personal property for the use of the county, and lands
14.8sold for taxes as provided by law.
14.9    (3) Purchase and hold for the benefit of the county real estate sold by virtue of
14.10judicial proceedings, to which the county is a party.
14.11    (4) Sell, lease, and convey real or personal estate owned by the county, and give
14.12contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
14.13conducive to the interests of the county's inhabitants.
14.14    (5) Make all contracts and do all other acts in relation to the property and concerns
14.15of the county necessary to the exercise of its corporate powers.
14.16    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease
14.17of a residence acquired for the furtherance of an approved capital improvement project, nor
14.18any contract or option for it, shall be valid, without first advertising for bids or proposals in
14.19the official newspaper of the county for three consecutive weeks and once in a newspaper
14.20of general circulation in the area where the property is located. The notice shall state the
14.21time and place of considering the proposals, contain a legal description of any real estate,
14.22and a brief description of any personal property. Leases that do not exceed $15,000 for any
14.23one year may be negotiated and are not subject to the competitive bid procedures of this
14.24section. All proposals estimated to exceed $15,000 in any one year shall be considered at
14.25the time set for the bid opening, and the one most favorable to the county accepted, but the
14.26county board may, in the interest of the county, reject any or all proposals.
14.27    (c) Sales of personal property the value of which is estimated to be $15,000 or
14.28more shall be made only after advertising for bids or proposals in the county's official
14.29newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
14.30time it posts on its Web site or publishes in a trade journal, the county must publish in the
14.31official newspaper, either as part of the minutes of a regular meeting of the county board
14.32or in a separate notice, a summary of all requests for bids or proposals that the county
14.33advertises on its Web site or in a trade journal. After publication in the official newspaper,
14.34on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
14.35the electronic selling process authorized in section 471.345, subdivision 17. Sales of
15.1personal property the value of which is estimated to be less than $15,000 may be made
15.2either on competitive bids or in the open market, in the discretion of the county board.
15.3"Web site" means a specific, addressable location provided on a server connected to the
15.4Internet and hosting World Wide Web pages and other files that are generally accessible
15.5on the Internet all or most of a day.
15.6    (d) Notwithstanding anything in this section to the contrary herein, the county
15.7may, exchange parcels of real property of substantially similar or equal value without
15.8advertising for bids, subject to clause (1) or (2).
15.9(1) When acquiring real property for county highway right-of-way, exchange parcels
15.10of real property of substantially similar or equal value without advertising for bids. the
15.11estimated values for these parcels shall be determined by the county assessor.
15.12(2) When acquiring real property for any other purpose, the estimated values for
15.13these parcels must be determined by the county assessor or a private Minnesota licensed
15.14real estate appraiser. The private appraised value of the parcels must be substantially
15.15equal to the county assessor's estimated market value of similar land, as adjusted by the
15.16sales ratio determined by the commissioner of revenue. Before giving final approval to
15.17the exchange of land, the county board shall hold a public hearing on the exchange. At
15.18least two weeks before the hearing, the county auditor shall post a hearing notice in the
15.19auditor's office and the official newspaper of the county that contains a description of
15.20the lands affected.
15.21    (e) If real estate or personal property remains unsold after advertising for and
15.22consideration of bids or proposals the county may employ a broker to sell the property.
15.23The broker may sell the property for not less than 90 percent of its appraised market value
15.24as determined by the county. The broker's fee shall be set by agreement with the county but
15.25may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
15.26    (f) A county or its agent may rent a county-owned residence acquired for the
15.27furtherance of an approved capital improvement project subject to the conditions set
15.28by the county board and not subject to the conditions for lease otherwise provided by
15.29paragraph (a), clause (4), and paragraphs (b), (c), (d), (e), and (g).
15.30    (g) In no case shall lands be disposed of without there being reserved to the county
15.31all iron ore and other valuable minerals in and upon the lands, with right to explore for,
15.32mine and remove the iron ore and other valuable minerals, nor shall the minerals and
15.33mineral rights be disposed of, either before or after disposition of the surface rights,
15.34otherwise than by mining lease, in similar general form to that provided by section 93.20
15.35for mining leases affecting state lands. The lease shall be for a term not exceeding 50
15.36years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
16.12,240 pounds, and fix a minimum amount of royalty payable during each year, whether
16.2mineral is removed or not. Prospecting options for mining leases may be granted for
16.3periods not exceeding one year. The options shall require, among other things, periodical
16.4showings to the county board of the results of exploration work done.
16.5    (h) Notwithstanding anything in this subdivision to the contrary, the county may,
16.6when selling real property owned in fee simple that cannot be improved because of
16.7noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
16.8proceed to sell the nonconforming parcel without advertising for bid. At the county's
16.9discretion, the real property may be restricted to sale to adjoining landowners or may be
16.10sold to any other interested party. The property shall be sold to the highest bidder, but
16.11in no case shall the property be sold for less than 90 percent of its fair market value as
16.12determined by the county assessor. All owners of land adjoining the land to be sold shall
16.13be given a written notice at least 30 days before the sale. This paragraph shall be liberally
16.14construed to encourage the sale of nonconforming real property and promote its return to
16.15the tax roles.

16.16    Sec. 14. REPEALER.
16.17Minnesota Statutes 2010, section 41A.09, subdivisions 1a, 2a, 3a, 4, and 10, are
16.18repealed.
16.19EFFECTIVE DATE.This section is effective June 30, 2012.