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SF 1016

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 06/08/2012 03:35pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; appropriating money for agriculture, the Board of
Animal Health, and the Agricultural Utilization Research Institute; changing
certain agriculture-related provisions, requirements, and programs; amending
Minnesota Statutes 2010, sections 17.135; 18B.03, subdivision 1; 18C.005, by
adding a subdivision; 18C.111, by adding a subdivision; 18D.201, by adding a
subdivision; 18E.03, subdivision 4; 27.041, by adding a subdivision; 38.01;
373.01, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 35; repealing Minnesota Statutes 2010, section 41A.09, subdivisions
1a, 2a, 3a, 4, 10.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin SUMMARY OF APPROPRIATIONS.
new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

new text begin 2012
new text end
new text begin 2013
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 45,406,000
new text end
new text begin $
new text end
new text begin 31,195,000
new text end
new text begin $
new text end
new text begin 76,601,000
new text end
new text begin Agricultural
new text end
new text begin $
new text end
new text begin 800,000
new text end
new text begin $
new text end
new text begin 800,000
new text end
new text begin $
new text end
new text begin 1,600,000
new text end
new text begin Remediation
new text end
new text begin $
new text end
new text begin 388,000
new text end
new text begin $
new text end
new text begin 388,000
new text end
new text begin $
new text end
new text begin 776,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 46,594,000
new text end
new text begin $
new text end
new text begin 32,383,000
new text end
new text begin $
new text end
new text begin 78,977,000
new text end

Sec. 2. new text beginAGRICULTURE APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2012" and "2013" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2012, or June 30, 2013,
respectively. "The first year" is fiscal year 2012. "The second year" is fiscal year 2013.
"The biennium" is fiscal years 2012 and 2013.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2012
new text end
new text begin 2013
new text end

Sec. 3. new text beginDEPARTMENT OF AGRICULTURE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 39,110,000
new text end
new text begin $
new text end
new text begin 24,899,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2012
new text end
new text begin 2013
new text end
new text begin General
new text end
new text begin 37,922,000
new text end
new text begin 23,711,000
new text end
new text begin Remediation
new text end
new text begin 388,000
new text end
new text begin 388,000
new text end
new text begin Agricultural
new text end
new text begin 800,000
new text end
new text begin 800,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Protection Services
new text end

new text begin 12,473,000
new text end
new text begin 12,193,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 12,085,000
new text end
new text begin 11,805,000
new text end
new text begin Remediation
new text end
new text begin 388,000
new text end
new text begin 388,000
new text end

new text begin $388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
new text end

new text begin $75,000 the first year and $75,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statutes,
section 3.737. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
new text end

new text begin $75,000 the first year and $75,000 the second
year are for compensation for crop damage
under Minnesota Statutes, section 3.7371. If
the amount in the first year is insufficient, the
amount in the second year is available in the
first year.
new text end

new text begin If the commissioner determines that claims
made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
new text end

new text begin $245,000 the first year and $245,000 the
second year are for an increase in retail
food handler inspections. This is a onetime
appropriation. No later than February 1,
2013, the commissioner shall report to the
chairs and ranking minority members of
the legislative committees with jurisdiction
over agriculture finance regarding the
commissioner's progress in addressing
the department's shortfall of necessary
inspections and recommendations for fee
changes to eliminate the shortfall.
new text end

new text begin $280,000 the first year is for an increase in
anhydrous ammonia oversight. No later than
February 1, 2013, the commissioner shall
report to the chairs and ranking minority
members of the legislative committees
with jurisdiction over agriculture finance
regarding the commissioner's progress in
addressing the department's shortfall of
necessary inspections and recommendations
for fee changes to eliminate the shortfall.
new text end

new text begin Subd. 3. new text end

new text begin Agricultural Marketing and
Development
new text end

new text begin 3,062,000
new text end
new text begin 3,062,000
new text end

new text begin $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract on
or before June 30, 2013, for Minnesota grown
grants in this paragraph are available until
June 30, 2015. $50,000 of the appropriation
in each year is for efforts that identify
and promote Minnesota grown products in
retail food establishments including but not
limited to restaurants, grocery stores, and
convenience stores.
new text end

new text begin $100,000 the first year and $100,000 the
second year are to provide training and
technical assistance to county and town
officials relating to livestock siting issues
and local zoning and land use planning,
including maintenance of the checklist
template clarifying the federal, state,
and local government requirements for
consideration of an animal agriculture
modernization or expansion project. For the
training and technical assistance program,
the commissioner shall continue to seek
guidance, advice, and support of livestock
producer organizations, general agricultural
organizations, local government associations,
academic institutions, other government
agencies, and others with expertise in land
use and agriculture.
new text end

new text begin Up to $100,000 each year of this
appropriation may be used for grants to
farmers for demonstration projects involving
sustainable agriculture as authorized in
Minnesota Statutes, section 17.116. Of the
amount for grants, up to $20,000 may be
used for dissemination of information about
the demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2013, for sustainable
agriculture grants in this paragraph are
available until June 30, 2015.
new text end

new text begin $10,000 the first year and $10,000 the
second year are for annual cost-share
payments to resident farmers or persons
who sell, process, or package agricultural
products in this state for the costs of organic
certification. Annual cost-share payments
per farmer must be two-thirds of the cost
of the certification or $350, whichever is
less. In any year that a resident farmer or
person who sells, processes, or packages
agricultural products in this state receives
a federal organic certification cost-share
payment, that resident farmer or person is
not eligible for state cost-share payments. A
certified farmer is eligible to receive annual
certification cost-share payments for up to
five years. The commissioner may allocate
any excess appropriation in either fiscal year
for organic market and program development
including organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research or
demonstration. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.
new text end

new text begin $100,000 each year is for a licensed
education professional for the Agriculture
in the Classroom program to develop and
disseminate curriculum, provide teacher
training opportunities, and work with
schools to enhance agricultural literacy by
incorporating agriculture into classroom
curriculum.
new text end

new text begin Subd. 4. new text end

new text begin Bioenergy and Value-Added
Agriculture
new text end

new text begin 16,332,000
new text end
new text begin 2,301,000
new text end

new text begin $13,732,000 the first year is for ethanol
producer payments under Minnesota Statutes,
section 41A.09. If the total amount for
which all producers are eligible in a quarter
exceeds the amount available for payments,
the commissioner shall make payments on a
pro rata basis. If the appropriation exceeds
the total amount for which all producers are
eligible, the balance in the appropriation
is available to the commissioner for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. The appropriation remains available
until spent.
new text end

new text begin $2,500,000 the first year is for bioenergy
grants. The NextGen Energy Board,
established in Minnesota Statutes, section
41A.105, shall make recommendations to
the commissioner on grants for owners of
Minnesota facilities producing bioenergy,
organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse stands of prairie
plants and other perennials for bioenergy
systems, or certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic material via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for
the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together
may not exceed $150,000. The board shall
make a good-faith effort to select projects
that have merit, and, when taken together,
represent a variety of bioenergy technologies,
biomass feedstocks, and geographic
regions of the state. Projects must have a
qualified engineer provide certification on
the technology and fuel source. Grantees
must provide reports at the request of the
commissioner. No later than February 1,
2013, the commissioner shall report on the
projects funded under this appropriation to
the legislative committees with jurisdiction
over agriculture finance. The commissioner's
costs in administering the program may
be paid from the appropriation. This is a
onetime appropriation and is available until
June 30, 2013.
new text end

new text begin $2,301,000 the second year is for the
agricultural growth, research, and innovation
program in Minnesota Statutes, section
41A.12. The commissioner may use up to
4.5 percent of this appropriation for costs
incurred to administer the program. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. The base budget for fiscal year
2014 and later is $10,247,000 each year.
new text end

new text begin $100,000 the first year is to provide a grant
for a feasibility study, site identification, and
site acquisition for a proposed biomass plant
in Lake of the Woods County.
new text end

new text begin Subd. 5. new text end

new text begin Administration and Financial
Assistance
new text end

new text begin 7,243,000
new text end
new text begin 7,343,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 6,443,000
new text end
new text begin 6,543,000
new text end
new text begin Agricultural
new text end
new text begin 800,000
new text end
new text begin 800,000
new text end

new text begin $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's
dairy farmers. The commissioner must
submit a detailed accomplishment report
and a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agricultural policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.
new text end

new text begin $47,000 the first year and $47,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
new text end

new text begin $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.
new text end

new text begin $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
new text end

new text begin $108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
new text end

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
new text end

new text begin $94,000 the first year and $94,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators through farm business
management programs at Central Lakes
College and Ridgewater College.
new text end

new text begin $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
new text end

new text begin Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2013, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.
new text end

new text begin $100,000 the second year is for a grant to the
Center for Rural Policy and Development in
St. Peter. This is a onetime appropriation.
By January 15, 2012, the Center shall report
to the chairs and ranking minority members
of the senate and house of representatives
committees on agricultural finance on the
planned expenditures of money appropriated
in this paragraph.
new text end

Sec. 4. new text beginBOARD OF ANIMAL HEALTH
new text end

new text begin $
new text end
new text begin 4,841,000
new text end
new text begin $
new text end
new text begin 4,841,000
new text end

Sec. 5. new text beginAGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
new text end

new text begin $
new text end
new text begin 2,643,000
new text end
new text begin $
new text end
new text begin 2,643,000
new text end

Sec. 6.

Minnesota Statutes 2010, section 17.135, is amended to read:


17.135 FARM DISPOSAL OF SOLID WASTE.

(a) A permit is not required from a state agency, except under sections 88.16,
88.17, and 88.22 for a person who owns or operates land used for farming that buries, or
burns and buriesdeleted text begin,deleted text endnew text begin:new text end

new text begin (1) new text endsolid waste generated from the person's household or as part of the person's
farming operation deleted text beginif the burying is donedeleted text endnew text begin; or
new text end

new text begin (2) concrete or reinforcing bar from a building or structure located on the land
used for farming.
new text end

new text begin Items in clauses (1) and (2) must be buriednew text end in a nuisance-free, pollution-free, and
aesthetic manner on the land used for farming. deleted text beginThisdeleted text endnew text begin Thenew text end exception new text beginin clause (1)new text end does not
apply if regularly scheduled pickup of solid waste is reasonably available at the person's
farm, as determined by resolution of the county board of the county where the person's
farm is located.

(b) deleted text beginThisdeleted text endnew text begin Thenew text end exemptionnew text begin in paragraph (a), clause (1),new text end does not apply to burning tires
or plastics, except plastic baling twine, or to burning or burial of the following materials:

(1) household hazardous waste as defined in section 115A.96, subdivision 1;

(2) appliances, including but not limited to, major appliances as defined in section
115A.03, subdivision 17a;

(3) household batteries;

(4) used motor oil; and

(5) lead acid batteries from motor vehicles.

new text begin (c) Within 90 days after completion of the burial, an owner of land used for farming
who buries material under the authority of paragraph (a), clause (2), shall record, with the
county recorder or registrar of titles of the county in which the land is located, an affidavit
containing a legal description of the property and a map drawn from available information
showing the boundary of the property and the location of concrete or reinforcing bar
buried on the property. The county recorder or registrar of titles must record an affidavit
presented under this paragraph in a manner that ensures its disclosure in the ordinary
course of a title search of the subject property.
new text end

Sec. 7.

Minnesota Statutes 2010, section 18B.03, subdivision 1, is amended to read:


Subdivision 1.

Administration by commissioner.

The commissioner shall
administer, implement, and enforce this chapter and the Department of Agriculture is
the lead state agency for the regulation of pesticides.new text begin The commissioner has the sole
regulatory authority over the terrestrial application of pesticides, including, but not limited
to, the application of pesticides to agricultural crops, structures, and other nonaquatic
environments.
new text end

Sec. 8.

Minnesota Statutes 2010, section 18C.005, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Ammonia and anhydrous ammonia. new text end

new text begin "Ammonia" and "anhydrous
ammonia" are used interchangeably and mean a compound formed by the chemical
combinations of the elements nitrogen and hydrogen in the molar proportion of one
part nitrogen to three parts hydrogen. This relationship is shown by the chemical
formula, NH3. On a weight basis, the ratio is 14 parts nitrogen to three parts hydrogen
or approximately 82 percent nitrogen to 18 percent hydrogen. Ammonia may exist in
either a gaseous or a liquid state. Ammonia or anhydrous ammonia does not include
aqua ammonia or ammonium hydroxide, which are solutions of ammonia in water and
are sometimes called ammonia.
new text end

Sec. 9.

Minnesota Statutes 2010, section 18C.111, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Certification of regulatory compliance. new text end

new text begin (a) The commissioner may,
under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
perform a regulatory compliance inspection of any person or site that stores, handles, or
distributes ammonia or anhydrous ammonia fertilizer.
new text end

new text begin (b) Pursuant to those rules, a person certified under paragraph (a) may issue a
certification of compliance to an inspected person or site if the certified person documents
in writing full compliance with the provisions of this chapter and rules adopted under
this chapter.
new text end

new text begin (c) A person or site issued a certification of compliance must provide a copy of the
certification to the commissioner immediately upon request or within 90 days following
certification.
new text end

new text begin (d) Certifications of compliance are valid for a period of three years. The
commissioner may determine a different time period in the interest of public safety or for
other reasonable cause.
new text end

Sec. 10.

Minnesota Statutes 2010, section 18D.201, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Compliance and inspection frequency. new text end

new text begin (a) The commissioner may
implement policies and procedures that provide for a decrease in the frequency of
regulatory inspection for a person or site issued a certification of compliance pursuant to
section 18C.111, subdivision 4.
new text end

new text begin (b) The commissioner must consider the compliance history, enforcement record,
and other public safety or environmental risk factors in determining the eligibility of a
person or site for the reduced frequency of inspection described in paragraph (a). If the
commissioner determines that a person or site is ineligible, the commissioner must notify
the person or site of that ineligibility and the reasons for that determination.
new text end

new text begin (c) The compliance findings of the commissioner's inspection of a person or site that
stores, handles, or distributes ammonia and anhydrous ammonia fertilizer may be used
as a basis for decreased frequency of regulatory inspection, as described in paragraphs
(a) and (b).
new text end

Sec. 11.

Minnesota Statutes 2010, section 18E.03, subdivision 4, is amended to read:


Subd. 4.

Fee.

(a) The response and reimbursement fee consists of the surcharges and
any adjustments made by the commissioner in this subdivision and shall be collected by
the commissioner. The amount of the response and reimbursement fee shall be determined
and imposed annually by the commissioner as required to satisfy the requirements in
subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in
proportion to the amount of the surcharges listed in this subdivision. License application
categories under paragraph (d) must be charged in proportion to the amount of surcharges
imposed up to a maximum of 50 percent of the license fees set under chapters 18B and
18C.

(b) The commissioner shall impose a surcharge on pesticides registered under
chapter 18B to be collected as a surcharge on the gross sales under section 18B.26,
subdivision 3
, that is equal to 0.1 percent of sales of the pesticide in the state and sales
of pesticides for use in the state during the previous calendar year, except the surcharge
may not be imposed on pesticides that are sanitizers or disinfectants as determined by the
commissioner. No surcharge is required if the surcharge amount based on percent of
annual gross salesnew text begin of a nonagricultural pesticidenew text end is less than $10. Sales of pesticides in
the state for use outside of the state are exempt from the surcharge in this paragraph if
the registrant, agricultural pesticide dealer, or pesticide dealer properly documents the
sale location and the distributors.

(c) The commissioner shall impose a ten cents per ton surcharge on the inspection
fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant
amendments.

(d) The commissioner shall impose a surcharge on the license application of persons
licensed under chapters 18B and 18C consisting of:

(1) a $75 surcharge for each site where pesticides are stored or distributed, to
be imposed as a surcharge on pesticide dealer application fees under section 18B.31,
subdivision 5
, and the agricultural pesticide dealer application fee under section 18B.316,
subdivision 10
;

(2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil
amendment is distributed, to be imposed on persons licensed under sections 18C.415
and 18C.425;

(3) a $50 surcharge to be imposed on a structural pest control applicator license
application under section 18B.32, subdivision 6, for business license applications only;

(4) a $20 surcharge to be imposed on commercial applicator license application fees
under section 18B.33, subdivision 7; and

(5) a $20 surcharge to be imposed on noncommercial applicator license application
fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a
noncommercial applicator that is a state agency, political subdivision of the state, the
federal government, or an agency of the federal government.

(e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold
for use outside of the state unless:

(1) the distributor properly documents that it has less than $2,000,000 per year in
wholesale value of pesticides stored and transferred through the site; or

(2) the registrant pays the surcharge under paragraph (b) and the registration fee
under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for
use outside of the state.

(f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for
licenses, and inspection fees imposed on or after July 1, 1990.

Sec. 12.

Minnesota Statutes 2010, section 27.041, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Account; appropriation. new text end

new text begin A wholesale produce dealers account is created
in the agricultural fund. All fees, charges, and penalties collected under sections 27.01 to
27.069 and 27.11 to 27.19, including interest attributable to that money, must be deposited
in the wholesale produce dealers account. Money in the account is appropriated to the
commissioner for the purposes of sections 27.01 to 27.069 and 27.11 to 27.19.
new text end

Sec. 13.

new text begin [35.815] LIVESTOCK MORTALITIES.
new text end

new text begin (a) Notwithstanding any other law, the executive director of the Board of Animal
Health is responsible for the regulation and oversight of the disposal of livestock
mortalities due to animal disease.
new text end

new text begin (b) Notwithstanding any other law, the executive director of the Board of Animal
Health is responsible for the regulation and oversight of livestock mortality disposal due
to nondisease causes to protect animal health and the environment. The board shall, in
cases where the disposal may adversely affect ground or surface water, seek the input
of the Pollution Control Agency.
new text end

Sec. 14.

Minnesota Statutes 2010, section 38.01, is amended to read:


38.01 COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.

(a) An agricultural society or association may be incorporated by citizens of any
county, or two or more counties jointly, but only one agricultural society shall be organized
in any county. An agricultural society may sue and be sued in its corporate name; may
adopt bylaws, rules, and regulations, alter and amend the same; may purchase and hold,
lease and control any real or personal property deemed to promote the objects of the
society, and may rent, lease, sell, new text beginexchange, new text endand convey the same. Any income from
the rental or lease of the property may be used for any or all of the following purposes:
(1) Acquisition of additional real property; (2) Construction of additional buildings; or
(3) Maintenance and care of the society's property. This section shall not be construed
to preclude the continuance of any agricultural society now existing or the granting of
aid to the society.

(b) An agricultural society shall have jurisdiction and control of the grounds upon
which its fairs are held and of the streets and adjacent grounds during the fair, so far
as may be necessary for fair purposes, and are exempt from local zoning ordinances
throughout the year as provided in section 38.16.

(c) The society may contract with the sheriff, local municipality, or security guard as
defined in section 626.88 to provide the society with police service. A person providing
police service pursuant to a contract is not, by reason of the contract, classified as an
employee of the agricultural society for any purpose other than the discharge of powers
and duties under the contract.

(d) Any person who shall willfully violate any rule or regulation made by agricultural
societies during the days of a fair shall be guilty of a misdemeanor.

The provisions of this section supersede all special laws on the same subject.

Sec. 15.

Minnesota Statutes 2010, section 373.01, subdivision 1, is amended to read:


Subdivision 1.

Public corporation; listed powers.

(a) Each county is a body politic
and corporate and may:

(1) Sue and be sued.

(2) Acquire and hold real and personal property for the use of the county, and lands
sold for taxes as provided by law.

(3) Purchase and hold for the benefit of the county real estate sold by virtue of
judicial proceedings, to which the county is a party.

(4) Sell, lease, and convey real or personal estate owned by the county, and give
contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
conducive to the interests of the county's inhabitants.

(5) Make all contracts and do all other acts in relation to the property and concerns
of the county necessary to the exercise of its corporate powers.

(b) No sale, lease, or conveyance of real estate owned by the county, except the lease
of a residence acquired for the furtherance of an approved capital improvement project, nor
any contract or option for it, shall be valid, without first advertising for bids or proposals in
the official newspaper of the county for three consecutive weeks and once in a newspaper
of general circulation in the area where the property is located. The notice shall state the
time and place of considering the proposals, contain a legal description of any real estate,
and a brief description of any personal property. Leases that do not exceed $15,000 for any
one year may be negotiated and are not subject to the competitive bid procedures of this
section. All proposals estimated to exceed $15,000 in any one year shall be considered at
the time set for the bid opening, and the one most favorable to the county accepted, but the
county board may, in the interest of the county, reject any or all proposals.

(c) Sales of personal property the value of which is estimated to be $15,000 or
more shall be made only after advertising for bids or proposals in the county's official
newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
time it posts on its Web site or publishes in a trade journal, the county must publish in the
official newspaper, either as part of the minutes of a regular meeting of the county board
or in a separate notice, a summary of all requests for bids or proposals that the county
advertises on its Web site or in a trade journal. After publication in the official newspaper,
on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
the electronic selling process authorized in section 471.345, subdivision 17. Sales of
personal property the value of which is estimated to be less than $15,000 may be made
either on competitive bids or in the open market, in the discretion of the county board.
"Web site" means a specific, addressable location provided on a server connected to the
Internet and hosting World Wide Web pages and other files that are generally accessible
on the Internet all or most of a day.

(d) Notwithstanding anything to the contrary herein, the county may, when acquiring
real property for county highway right-of-way, exchange parcels of real property of
substantially similar or equal value without advertising for bids. The estimated values for
these parcels shall be determined by the county assessor.

new text begin (e) Notwithstanding anything in this section to the contrary, the county may, when
acquiring real property for purposes other than county highway right-of-way, exchange
parcels of real property of substantially similar or equal value without advertising for bids.
The estimated values for these parcels must be determined by the county assessor or a
private appraisal performed by a licensed Minnesota real estate appraiser. Before giving
final approval to any exchange of land, the county board shall hold a public hearing on
the exchange. At least two weeks before the hearing, the county auditor shall post a
notice in the auditor's office and the official newspaper of the county of the hearing that
contains a description of the lands affected.
new text end

deleted text begin (e)deleted text endnew text begin (f)new text end If real estate or personal property remains unsold after advertising for and
consideration of bids or proposals the county may employ a broker to sell the property.
The broker may sell the property for not less than 90 percent of its appraised market value
as determined by the county. The broker's fee shall be set by agreement with the county but
may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.

deleted text begin (f)deleted text endnew text begin (g)new text end A county or its agent may rent a county-owned residence acquired for the
furtherance of an approved capital improvement project subject to the conditions set
by the county board and not subject to the conditions for lease otherwise provided by
paragraph (a), clause (4), and paragraphs (b), (c), (d), deleted text begin(e), and (g)deleted text endnew text begin (f), and (h)new text end.

deleted text begin (g)deleted text endnew text begin (h)new text end In no case shall lands be disposed of without there being reserved to the
county all iron ore and other valuable minerals in and upon the lands, with right to explore
for, mine and remove the iron ore and other valuable minerals, nor shall the minerals
and mineral rights be disposed of, either before or after disposition of the surface rights,
otherwise than by mining lease, in similar general form to that provided by section 93.20
for mining leases affecting state lands. The lease shall be for a term not exceeding 50
years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
2,240 pounds, and fix a minimum amount of royalty payable during each year, whether
mineral is removed or not. Prospecting options for mining leases may be granted for
periods not exceeding one year. The options shall require, among other things, periodical
showings to the county board of the results of exploration work done.

deleted text begin (h)deleted text endnew text begin (i)new text end Notwithstanding anything in this subdivision to the contrary, the county
may, when selling real property owned in fee simple that cannot be improved because
of noncompliance with local ordinances regarding minimum area, shape, frontage, or
access, proceed to sell the nonconforming parcel without advertising for bid. At the
county's discretion, the real property may be restricted to sale to adjoining landowners or
may be sold to any other interested party. The property shall be sold to the highest bidder,
but in no case shall the property be sold for less than 90 percent of its fair market value
as determined by the county assessor. All owners of land adjoining the land to be sold
shall be given a written notice at least 30 days before the sale. This paragraph shall be
liberally construed to encourage the sale of nonconforming real property and promote
its return to the tax roles.

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 41A.09, subdivisions 1a, 2a, 3a, 4, and 10, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2013.
new text end