SF 1160

as introduced - 88th Legislature (2013 - 2014) Posted on 04/02/2013 12:44pm

A bill for an act
relating to agriculture; making policy, technical, conforming, and clarifying
changes to provisions related to agricultural law; modifying provisions related
to pesticide control, agricultural resource loan and ethanol development, the
Rural Finance Authority, grain buyers, and other agriculture-related provisions;
establishing the Minnesota agricultural water quality program; modifying
noxious weed law; modifying definition of E85; authorizing rulemaking;
amending Minnesota Statutes 2012, sections 17.118, subdivision 2; 18.77,
subdivisions 3, 4, 10, 12; 18.78, subdivision 3; 18.79, subdivisions 6, 13; 18.82,
subdivision 1; 18.91, subdivisions 1, 2; 18B.01, by adding a subdivision;
18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3;
18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 31.94; 41A.105,
subdivision 5; 41A.12, by adding a subdivision; 41B.04, subdivision 9; 223.17,
by adding a subdivision; 232.22, by adding a subdivision; 296A.01, subdivision
19; proposing coding for new law in Minnesota Statutes, chapters 17; 18;
repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
subdivision 6; Minnesota Rules, parts 1505.0751, subparts 7, 8; 1510.0011,
subparts 1, 4; 1510.0020; 1510.0030; 1510.0040; 1510.0050; 1510.0060;
1510.0070; 1510.0080; 1510.0090; 1510.0100; 1510.0111; 1510.0161;
1510.0171; 1510.0180; 1510.0200; 1510.0210; 1510.0220; 1510.0231;
1510.0241; 1510.0261; 1510.0340; 1510.0350; 1510.0360.

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

ARTICLE 1

POLICY AND TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
cervidae, ratitae, bison, sheep, horses, and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps,
and well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and
waste management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor
the productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable
income. Qualifying expenditures do not include an amount paid to refinance existing debt.

deleted text begin (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
calendar year of which the first six months precede the first day of the current fiscal year. For
example, an eligible person who makes qualifying expenditures during calendar year 2008
is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.
deleted text end

Sec. 2.

Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Bulk pesticide storage facility. new text end

new text begin "Bulk pesticide storage facility" means a
facility that is required to have a permit under section 18B.14.
new text end

Sec. 3.

Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:

Subd. 2a.

Disposal site requirement.

(a) For agricultural waste pesticides, the
commissioner must designate a place in each county of the state that is available at least
every other year for persons to dispose of unused portions of agricultural pesticides. The
commissioner shall consult with the person responsible for solid waste management
and disposal in each county to determine an appropriate location and to advertise each
collection event. The commissioner may provide a collection opportunity in a county
more frequently if the commissioner determines that a collection is warranted.

(b) For nonagricultural waste pesticides, the commissioner must provide a disposal
opportunity each year in each county or enter into a contract with a group of counties
under a joint powers agreement or contract for household hazardous waste disposal.

(c) As provided under subdivision 7, the commissioner may enter into cooperative
agreements with local units of government to provide the collections required under
paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
agreement, with funding for reasonable costs incurred including, but not limited to, related
supplies, transportation, advertising, and disposal costs as well as reasonable overhead
costs.

(d) A person who collects waste pesticide under this section shall, on a form
provided or in a method approved by the commissioner, record information on each
waste pesticide product collected including, but not limited to, the quantity collected
and either the product name and its active ingredient or ingredients or the United States
Environmental Protection Agency registration number. The person must submit this
information to the commissioner at least annually by January 30.

new text begin (e) Notwithstanding the recording and reporting requirements of paragraph (d),
persons are not required to record or report agricultural or nonagricultural waste pesticide
collected in 2014 and 2015. The commissioner shall analyze existing collection data
to identify trends that will inform future collection strategies to better meet the needs
and nature of current waste pesticide streams. By January 15, 2015, the commissioner
shall report analysis, recommendations, and proposed policy changes to this program to
legislative committees with jurisdiction over agriculture finance and policy.
new text end

Sec. 4.

Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:

Subd. 4.

Pesticide new text begin storage new text end safeguards deleted text begin at application sites deleted text end .

A person may not
allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
or on any site without safeguards adequate to prevent an incident. new text begin Pesticides may not be
stored in any location with an open drain.
new text end

Sec. 5.

Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:

Subd. 5.

Use of deleted text begin public deleted text end water supplies for filling new text begin application new text end equipment.

new text begin (a) new text end A
person may not fill pesticide application equipment directly from a public water supply,
as defined in section 144.382, new text begin or from public waters, as defined in section 103G.005,
subdivision 15, new text end unless the outlet from the deleted text begin public deleted text end water supply is equipped with a backflow
prevention device that complies new text begin with and is installed in accordance new text end with the new text begin Minnesota
Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280. A nurse tank not
connected to the water supply, an atmospheric vacuum breaker (AVB), and air gap that is
2.0 times the effective diameter of the outlet, a pressurized vacuum breaker (PVB), or
a reduced pressure principle backflow prevention device (RPZ) must also comply with
the requirements under the new text end Minnesota Plumbing Code under Minnesota Rules, parts
4715.2000 to 4715.2280.

new text begin (b) Cross connections between a water supply use for filling pesticide application
equipment are prohibited.
new text end

new text begin (c) This subdivision does not apply to permitted applications of aquatic pesticides to
public waters.
new text end

Sec. 6.

Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Cleaning equipment in or near surface water deleted text end new text begin Pesticide handling
restrictions new text end .

(a) A person may not deleted text begin : deleted text end new text begin fill, clean, unload, or park pesticide application
equipment where pesticides or materials contaminated with pesticides could enter ditches,
surface water, groundwater, wells, drains, or sewers. For wells, the setbacks established in
Minnesota Rules, part 4725.4450, apply.
new text end

deleted text begin (1) clean pesticide application equipment in surface waters of the state; or
deleted text end

deleted text begin (2) fill or clean pesticide application equipment adjacent to surface waters,
ditches, or wells where, because of the slope or other conditions, pesticides or materials
contaminated with pesticides could enter or contaminate the surface waters, groundwater,
or wells, as a result of overflow, leakage, or other causes.
deleted text end

(b) This subdivision does not apply to permitted application of aquatic pesticides to
public waters.

Sec. 7.

Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural
pesticide, a registrant shall pay an annual registration application fee for each agricultural
pesticide of $350. The fee is due by December 31 preceding the year for which the
application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
registration application fee for each nonagricultural pesticide of $350. The fee is due by
December 31 preceding the year for which the application for registration is made. The
fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
the state for use in this state. deleted text begin The commissioner may not assess a fee under this paragraph
if the amount due based on percent of annual gross sales is less than $10 deleted text end new text begin No fee is required
if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
is less than $10 new text end . The registrant shall secure sufficient sales information of nonagricultural
pesticides distributed into this state from distributors and dealers, regardless of distributor
location, to make a determination. Sales of nonagricultural pesticides in this state and
sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
exempt and must be included in the registrant's annual report, as required under paragraph
(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
nonagricultural pesticides in the state for use outside of the state are exempt from the
gross sales fee in this paragraph if the registrant properly documents the sale location and
distributors. A registrant paying more than the minimum fee shall pay the balance due by
March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the
state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
license and is responsible for payment of the annual gross sales fee under paragraph (c),
record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
commissioner, after a public hearing, may increase proportionally the pesticide sales and
product registration fees under this chapter by the amount necessary to ensure this level
of revenue is achieved. The authority under this section expires on June 30, 2014. The
commissioner shall report any fee increases under this paragraph 60 days before the fee
change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee must be paid by
the applicant for each pesticide to be registered if the application is a renewal application
that is submitted after December 31.

(g) A registrant must annually report to the commissioner the amount, type and
annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
otherwise distributed in the state. The report shall be filed by March 1 for the previous
year's registration. The commissioner shall specify the form of the report or approve
the method for submittal of the report and may require additional information deemed
necessary to determine the amount and type of nonagricultural pesticide annually
distributed in the state. The information required shall include the brand name, United
States Environmental Protection Agency registration number, and amount of each
nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
the information collected, if made public, shall be reported in a manner which does not
identify a specific brand name in the report.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
report to the commissioner the amount, type, and annual gross sales of each registered
agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
state for use in the state. The report must be filed by January 31 for the previous year's
sales. The commissioner shall specify the form, contents, and approved electronic method
for submittal of the report and may require additional information deemed necessary to
determine the amount and type of agricultural pesticide annually distributed within the
state or into the state. The information required must include the brand name, United States
Environmental Protection Agency registration number, and amount of each agricultural
pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b),
or a registrant under paragraph (d), shall keep accurate records for five years detailing
all distribution or sales transactions into the state or in the state and subject to a fee and
surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner
and must clearly demonstrate proof of payment of all applicable fees and surcharges
for each registered pesticide product sold for use in this state. A person who is located
outside of this state must maintain and make available records required by this subdivision
in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject
to audit under this section to provide information determined by the commissioner to be
necessary to enable the commissioner to perform the audit.

(l) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

Sec. 8.

Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person must not deleted text begin distribute deleted text end new text begin offer for sale new text end or sell
an agricultural pesticide in the state or into the state without first obtaining an agricultural
pesticide dealer license.

(b) Each location or place of business from which an agricultural pesticide is
deleted text begin distributed deleted text end new text begin offered for sale new text end or sold in the state or into the state is required to have a
separate agricultural pesticide dealer license.

(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
to also be licensed under this subdivision.

Sec. 9.

Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:

Subd. 3.

Resident agent.

A person required to be licensed under subdivisions 1
and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
operates from a location or place of business outside the state and who deleted text begin distributes deleted text end new text begin offers
for sale new text end or sells an agricultural pesticide into the state, must continuously maintain in
this state the following:

(1) a registered office; and

(2) a registered agent, who may be either a resident of this state whose business
office or residence is identical with the registered office under clause (1), a domestic
corporation or limited liability company, or a foreign corporation of limited liability
company authorized to transact business in this state and having a business office identical
with the registered office.

A person licensed under this section or section 18B.31 shall annually file with the
commissioner, either at the time of initial licensing or as part of license renewal, the name,
address, telephone number, and e-mail address of the licensee's registered agent.

For licensees under section 18B.31 who are located in the state, the licensee is
the registered agent.

Sec. 10.

Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:

Subd. 4.

Responsibility.

The resident agent is responsible for the acts of a licensed
agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
operates from a location or place of business outside the state and who deleted text begin distributes deleted text end new text begin offers
for sale new text end or sells an agricultural pesticide into the state, as well as the acts of the employees
of those licensees.

Sec. 11.

Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:

Subd. 8.

Report of sales and payment to commissioner.

A person who is an
agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
deleted text begin distributes deleted text end new text begin offers for sale new text end or sells an agricultural pesticide in or into the state, and a
pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
later than January 31 of each year report and pay applicable fees on annual gross sales
of agricultural pesticides to the commissioner pursuant to requirements under section
18B.26, subdivision 3, paragraphs (c) and (h).

Sec. 12.

Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:

Subd. 9.

Application.

(a) A person must apply to the commissioner for an
agricultural pesticide dealer license on forms and in a manner approved by the
commissioner.

(b) The applicant must be the person in charge of each location or place of business
from which agricultural pesticides are deleted text begin distributed deleted text end new text begin offered for sale new text end or sold in or into the state.

(c) The commissioner may require that the applicant provide information regarding
the applicant's proposed operations and other information considered pertinent by the
commissioner.

(d) The commissioner may require additional demonstration of licensee qualification
if the licensee has had a license suspended or revoked, or has otherwise had a history of
violations in another state or violations of this chapter.

(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
of business must immediately notify the commissioner of the change.

(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
dealer license is complete only when a report and any applicable payment of fees under
subdivision 8 are received by the commissioner.

Sec. 13.

Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Storage, handling, deleted text end Incident response deleted text begin , and disposal deleted text end plan.

A pesticide
dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
control deleted text begin applicator or the business that the applicator is employed by deleted text end new text begin business new text end must develop
and maintain deleted text begin a deleted text end new text begin an incident response new text end plan that describes deleted text begin its pesticide storage, handling,
incident response, and disposal practices deleted text end new text begin the actions that will be taken to prevent and
respond to pesticide incidents. The plan must contain the same information as forms
provided by the commissioner new text end . The plan must be kept at a principal business site or location
within this state and must be submitted to the commissioner upon request deleted text begin on forms provided
by the commissioner. The plan must be available for inspection by the commissioner deleted text end .

Sec. 14.

Minnesota Statutes 2012, section 31.94, is amended to read:

31.94 COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine
information and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota to demonstrate the on-farm applicability
of organic agriculture practices to conditions in this state;

(3) direct the programs of the department so as to work toward the promotion of
organic agriculture in this state;

(4) inform agencies of how state or federal programs could utilize and support
organic agriculture practices; and

(5) work closely with producers, the University of Minnesota, the Minnesota Trade
Office, and other appropriate organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner,
in conjunction with the task force created in paragraph (c), shall report on the status of
organic agriculture in Minnesota to the legislative policy and finance committees and
divisions with jurisdiction over agriculture. The report must include available data on
organic acreage and production, available data on the sales or market performance of
organic products, and recommendations regarding programs, policies, and research efforts
that will benefit Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
community. The task force must consist of the following residents of the state:

(1) three new text begin organic new text end farmers deleted text begin using organic agriculture methods deleted text end ;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural
Experiment Station; the dean and director of University of Minnesota Extension deleted text begin ; deleted text end and the
dean of the College of Food, Agricultural and Natural Resource Sciences new text begin , new text end shall appoint
members to serve deleted text begin staggered two deleted text end new text begin three new text end -year terms.

Compensation and removal of members are governed by section 15.059, subdivision
6. The task force must meet at least twice each year and expires on June 30, deleted text begin 2013 deleted text end new text begin 2016 new text end .

(d) For the purposes of expanding, improving, and developing production and
marketing of the organic products of Minnesota agriculture, the commissioner may
receive funds from state and federal sources and spend them, including through grants or
contracts, to assist producers and processors to achieve certification, to conduct education
or marketing activities, to enter into research and development partnerships, or to address
production or marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production
and handling operations including those exempt from organic certification according to
Code of Federal Regulations, title 7, section 205.101, and certification agents operating
within the state.

Sec. 15.

Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2014 deleted text end new text begin 2015 new text end .

Sec. 16.

Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Grant awards. new text end

new text begin Grant projects may continue for up to three years.
Multiyear projects must be reevaluated by the commissioner before second- and third-year
funding is approved. A project is limited to one grant for its funding.
new text end

Sec. 17.

Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:

Subd. 9.

Restructured loan agreement.

(a) For a deferred restructured loan, all
payments on the primary and secondary principal, all payments of interest on the secondary
principal, and an agreed portion of the interest payable to the eligible agricultural lender
on the primary principal must be deferred to the end of the term of the loan.

(b) Interest on secondary principal must accrue at a below market interest rate.

(c) At the conclusion of the term of the restructured loan, the borrower owes primary
principal, secondary principal, and deferred interest on primary and secondary principal.
However, part of this balloon payment may be forgiven following an appraisal by the
lender and the authority to determine the current market value of the real estate subject to
the mortgage. If the current market value of the land after appraisal is less than the amount
of debt owed by the borrower to the lender and authority on this obligation, that portion of
the obligation that exceeds the current market value of the real property must be forgiven
by the lender and the authority in the following order:

(1) deferred interest on secondary principal;

(2) secondary principal;

(3) deferred interest on primary principal;

(4) primary principal as provided in an agreement between the authority and the
lender; and

(5) accrued but not deferred interest on primary principal.

(d) For an amortized restructured loan, payments must include installments on
primary principal and interest on the primary principal. An amortized restructured loan
must be amortized over a time period and upon terms to be established by the authority by
rule.

(e) A borrower may prepay the restructured loan, with all primary and secondary
principal and interest and deferred interest at any time deleted text begin without prepayment penalty deleted text end .

(f) The authority may not participate in refinancing a restructured loan at the
conclusion of the restructured loan.

Sec. 18.

Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Bond requirements; claims. new text end

new text begin For entities licensed under this chapter
and chapter 232, the bond requirements and claims against the bond are governed under
section 232.22, subdivision 6a.
new text end

Sec. 19.

Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Bond determinations. new text end

new text begin If a public grain warehouse operator is licensed
under both this chapter and chapter 223, the warehouse shall have its bond determined
by its gross annual grain purchase amount or its annual average grain storage value,
whichever is greater. For those entities licensed under this chapter and chapter 223, the
entire bond shall be available to any claims against the bond for claims filed under this
chapter and chapter 223.
new text end

Sec. 20.

Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:

Subd. 19.

E85.

"E85" means a petroleum product that is a blend of agriculturally
derived denatured ethanol and gasoline or natural gasoline that deleted text begin typically deleted text end contains new text begin not more
than new text end 85 percent ethanol by volume, but at a minimum must contain deleted text begin 60 deleted text end new text begin greater than 50
new text end percent ethanol by volume. For the purposes of this chapter, the energy content of E85
will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in
alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification
deleted text begin D5798-07 deleted text end new text begin D5798-11 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
subdivision 4a, as subdivision 4b and correct any cross-references.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, section 18B.07, subdivision 6, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1505.0751, subparts 7 and 8; 1510.0011, subparts 1 and
4; 1510.0020; 1510.0030; 1510.0040; 1510.0050; 1510.0060; 1510.0070; 1510.0080;
1510.0090; 1510.0100; 1510.0111; 1510.0161; 1510.0171; 1510.0180; 1510.0200;
1510.0210; 1510.0220; 1510.0231; 1510.0241; 1510.0261; 1510.0340; 1510.0350; and
1510.0360, new text end new text begin are repealed.
new text end

ARTICLE 2

MINNESOTA AGRICULTURAL WATER QUALITY PROGRAM

Section 1.

new text begin [17.9891] PURPOSE.
new text end

new text begin The commissioner, in consultation with the Pollution Control Agency (PCA),
Department of Natural Resources (DNR), and Board of Water and Soil Resources
(BWSR), may implement a Minnesota agricultural water quality certification program
(MAWQCP) whereby once a producer demonstrates practices and management sufficient
to protect and enhance water quality, the producer is exempt from having to comply with
new rules affecting agricultural or land management practices that could affect water
quality for up to ten years. The program shall be a voluntary program that is first piloted in
selected watersheds across the state, until such time as the commissioner, in consultation
with the PCA, DNR, and BWSR, determines the program is ready to be expanded.
new text end

Sec. 2.

new text begin [17.9892] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Technical assistance. new text end

new text begin "Technical assistance" means professional,
advisory, or cost-share assistance provided to individuals that is designed to achieve
MAWQCP certification.
new text end

new text begin Subd. 2. new text end

new text begin Certifying agent. new text end

new text begin "Certifying agent" means a person who is authorized
by the commissioner to assess producers to determine whether a producer satisfies the
standards of the Minnesota agricultural water quality certification program.
new text end

new text begin Subd. 3. new text end

new text begin Conflict of interest. new text end

new text begin "Conflict of interest" means an occurrence of a
certifying agent also providing technical assistance to the same producer.
new text end

new text begin Subd. 4. new text end

new text begin Certification. new text end

new text begin "Certification" means a producer has demonstrated
compliance with all applicable environmental rules and statutes for all of the producer's
owned and rented agricultural land, and has achieved a satisfactory score through the
certification instrument and verified by a certifying agent. A certification is valid for up to
ten years, as long as the producer maintains compliance with original certification practices.
new text end

new text begin Subd. 5. new text end

new text begin Eligible land. new text end

new text begin "Eligible land" means all acres of an agricultural operation
of a producer, whether or not contiguous, that are under the effective control of the
producer at the time the producer enters into the certification program, and is operated
by the producer with equipment, labor, and management.
new text end

new text begin Subd. 6. new text end

new text begin Effective control. new text end

new text begin "Effective control" means possession of the land
by ownership, written lease, or other legal agreement and authority to act as decision
maker for the day-to-day management of the operation at the time the producer achieves
certification and for the required period of the certification.
new text end

Sec. 3.

new text begin [17.9893] CERTIFICATION INSTRUMENT.
new text end

new text begin The commissioner, in consultation with the PCA, DNR, and BSWR, shall develop an
analytical instrument to assess the water quality practices and management of agricultural
operations. This instrument shall be used to certify the water quality practices and
management of an agricultural operation are consistent with state water quality goals and
standards. The commissioner shall define a satisfactory score for certification purposes.
The certification instrument tool shall:
new text end

new text begin (1) integrate applicable existing regulatory requirements;
new text end

new text begin (2) utilize technology and prioritize ease of use;
new text end

new text begin (3) utilize a water quality index or score applicable to the landscape;
new text end

new text begin (4) incorporate a process for updates and revisions as practices, management, and
technology changes become established and approved; and
new text end

new text begin (5) comprehensively address water quality impacts.
new text end

Sec. 4.

new text begin [17.9894] LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin Any person who offers certification services to producers
as part of this program must satisfy all criteria in subdivision 2 and be licensed by
the commissioner. A certifying agent is ineligible to provide certification services to
any producer to whom the certifying agent has also provided technical assistance. The
department may set fees for such license.
new text end

new text begin Subd. 2. new text end

new text begin Certifying agent requirements. new text end

new text begin In order to be licensed as a certifying
agent, a person must:
new text end

new text begin (1) be an agricultural conservation professional employed by the state of Minnesota, a
Soil and Water Conservation District, the Natural Resources Conservation Service, or be a
Minnesota certified crop advisor as recognized by the American Society of Agronomy; and
new text end

new text begin (2) have passed a comprehensive exam, as set by the commissioner, evaluating
knowledge of water quality, soil health, best farm management techniques, and the
certification instrument; and
new text end

new text begin (3) maintain continuing education requirements as set by the commissioner.
new text end

Sec. 5.

new text begin [17.9895] DUTIES OF A CERTIFYING AGENT.
new text end

new text begin Subdivision 1. new text end

new text begin Duties of certifying agent. new text end

new text begin A certifying agent shall conduct formal
certification assessment utilizing the certification instrument to determine whether a
producer meets the criteria set forth in the program. If a producer satisfies all requirements,
the certifying agent shall notify the commissioner of the producer's eligibility and request
that the state issue a certificate. All records and documents used in the assessment shall be
compiled by the certifying agent and submitted to the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Violations. new text end

new text begin In the event a certifying agent violates any provision of this
chapter or an order of the commissioner, the commissioner may issue a written warning,
or a correction order, and may suspend or revoke a license. If a license or certificate is
suspended or revoked, the certifying agent has ten days from the suspension or revocation
to appeal. If a certifying agent appeals, the commissioner shall hold an administrative
hearing within 30 days of the suspension or revocation of the license, or longer by
agreement of the parties, to determine whether the license is revoked or suspended. The
commissioner shall issue an opinion within 30 days. An appeal of the commissioner's
decision shall be made pursuant to Minnesota Statutes, sections 14.63 to 14.68.
new text end

Sec. 6.

new text begin [17.9896] CERTIFICATION PROCEDURES.
new text end

new text begin A producer who seeks certification of eligible land shall conduct an initial
assessment using the certification instrument, obtain technical assistance, if necessary,
to achieve a satisfactory score on the certification instrument, and apply for certification
from a licensed certifying agent. Once certified, if a producer obtains effective control
in additional agricultural land, the producer must notify a certifying agent and obtain
certification on the additional land within one year in order to maintain the producer's
original certification. The commissioner may terminate a certification if the producer fails
to obtain certification on any additional land for which the producer obtains effective
control. The commissioner may revoke a certification and seek reimbursement of any
monetary benefit a producer may have received due to certification from a producer who
fails to maintain certification criteria. The commissioner shall revoke a certification
through the hearing process outlined in section 17.9895, subdivision 2.
new text end

Sec. 7.

new text begin [17.9897] CERTIFICATION CERTAINTY.
new text end

new text begin Once a producer is certified, the producer:
new text end

new text begin (1) is exempt from any new state rules pertaining to water quality protection for up
to ten years from the date of certification;
new text end

new text begin (2) is considered to be meeting the producer's contributions to any targeted
reductions of pollutants during the period of certification;
new text end

new text begin (3) is required to continue implementation of practices that maintain the producer's
certification; and
new text end

new text begin (4) is required to retain all records pertaining to certification.
new text end

Sec. 8.

new text begin [17.9898] AUDITS.
new text end

new text begin The commissioner shall perform random audits of the producers and certifying
agents to ensure compliance with the program. All producers and certifying agents shall
cooperate with the commissioner during these audits, and provide all relevant documents
to the commissioner for inspection and copying. Any delay, obstruction, or refusal to
cooperate with the commissioner's audit, or falsification of or failure to provide required
data or information, is a violation subject to the provisions of section 17.9895, subdivision
2, or 17.9896.
new text end

Sec. 9.

new text begin [17.9899] DATA.
new text end

new text begin All data collected under this program that identifies the producer or the producer's
location shall be considered nonpublic data as defined in section 13.02, subdivision 9, or
private data on individuals as defined in section 13.02, subdivision 12. The commissioner
shall make available summary data of program outcomes.
new text end

Sec. 10.

new text begin [17.991] RULEMAKING.
new text end

new text begin The commissioner may develop rules to implement this program.
new text end

Sec. 11.

new text begin [17.992] REPORTS.
new text end

new text begin The commissioner, in consultation with the DNR, BWSR, and PCA, shall issue a
biennial report to the chairs and ranking minority members of the legislative committees
with jurisdiction over agricultural policy on the status of the program.
new text end

Sec. 12.

new text begin [17.993] GRANTING.
new text end

new text begin The commissioner may use contributions from gifts or other state accounts, provided
that the purposes of the expenditures are consistent with the purpose of the accounts, for
grants, loans, or other financial assistance.
new text end

ARTICLE 3

MINNESOTA NOXIOUS WEED LAW

Section 1.

Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:

Subd. 3.

Control.

"Control" means to deleted text begin destroy all or part of the aboveground
growth of noxious weeds deleted text end new text begin manage or prevent the maturation and spread of propagating
parts of noxious weeds from one area to another new text end by a lawful method that does not cause
unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
31 deleted text begin , and prevents the maturation and spread of noxious weed propagating parts from one
area to another deleted text end .

Sec. 2.

Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:

Subd. 4.

Eradicate.

"Eradicate" means to destroy the aboveground deleted text begin growth and the
roots deleted text end new text begin and belowground plant parts new text end of noxious weeds by a lawful method deleted text begin that deleted text end new text begin which new text end prevents
the maturation and spread of noxious weed propagating parts from one area to another.

Sec. 3.

Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:

Subd. 10.

Permanent pasture, hay meadow, woodlot, deleted text begin and deleted text end new text begin or new text end other noncrop
area.

"Permanent pasture, hay meadow, woodlot, deleted text begin and deleted text end new text begin or new text end other noncrop area" means an
area of predominantly native or seeded perennial plants that can be used for grazing or hay
purposes but is not harvested on a regular basis and is not considered to be a growing crop.

Sec. 4.

Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:

Subd. 12.

Propagating parts.

"Propagating parts" means new text begin all new text end plant parts, including
seeds, that are capable of producing new plants.

Sec. 5.

new text begin [18.771] NOXIOUS WEED CATEGORIES.
new text end

new text begin (a) For purposes of this section, noxious weed category includes each of the
following categories.
new text end

new text begin (b) "Prohibited noxious weed" includes noxious weeds that must be controlled or
eradicated on all lands within the state. Transportation of a prohibited noxious weed's
propagating parts shall be restricted by permit except as allowed by section 18.82.
Prohibited noxious weeds cannot be sold or propagated in Minnesota. There are two
regulatory listings for prohibited noxious weeds in Minnesota:
new text end

new text begin (1) The "Noxious Weed Eradicate List" is established. Prohibited noxious weeds
placed on the Noxious Weed Eradicate List are plants that are not currently known to be
present in Minnesota or are not widely established. These species must be eradicated.
new text end

new text begin (2) The "Noxious Weed Control List" is established. Prohibited noxious weeds
placed on the Noxious Weed Control List are plants that are already established throughout
Minnesota or regions of the state. Species on this list must at least be controlled.
new text end

new text begin (c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
in Minnesota, but whose only feasible means of control is to prevent their spread by
prohibiting the importation, sale, and transportation of their propagating parts in the state
except as allowed by section 18.82.
new text end

new text begin (d) "Specially regulated plants" includes noxious weeds that may be native
species or have demonstrated economic value, but also have the potential to cause harm
in noncontrolled environments. Plants designated as specially regulated have been
determined to pose ecological, economical, or human or animal health concerns. Species
specific management plans or rules that define the use and management requirements
for these plants must be developed by the commissioner of agriculture for each plant
designated as specially regulated. The commissioner must also take measures to minimize
the potential for harm caused by these plants.
new text end

new text begin (e) "County noxious weeds" includes noxious weeds that are designated by
individual county boards to be enforced as prohibited noxious weeds within the county's
jurisdiction and must be approved by the commissioner of agriculture, in consultation with
the Noxious Weed Advisory Committee. Each county board must submit newly proposed
county noxious weeds to the commissioner of agriculture for review. Approved county
noxious weeds shall also be posted with the county's general weed notice prior to May 15
each year. Counties are solely responsible for developing county noxious weed lists and
their enforcement.
new text end

Sec. 6.

Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Cooperative deleted text end Weed control agreement.

The commissioner, municipality,
or county agricultural inspector or county-designated employee may enter into a
deleted text begin cooperative deleted text end weed control agreement with a landowner or weed management area
group to establish a mutually agreed-upon noxious weed management plan for up to
three years duration, whereby a noxious weed problem will be controlled without
additional enforcement action. If a property owner fails to comply with the noxious weed
management plan, an individual notice may be served.

Sec. 7.

Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:

Subd. 6.

Training for control or eradication of noxious weeds.

The commissioner
shall conduct initial training considered necessary for inspectors and county-designated
employees in the enforcement of the Minnesota Noxious Weed Law. The director of
the Minnesota Extension deleted text begin Service deleted text end may conduct educational programs for the general
public that will aid compliance with the Minnesota Noxious Weed Law. Upon request,
the commissioner may provide information and other technical assistance to the county
agricultural inspector or county-designated employee to aid in the performance of
responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

Sec. 8.

Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:

Subd. 13.

Noxious weed designation.

The commissioner, in consultation with the
Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
subject to deleted text begin control deleted text end new text begin regulation new text end under sections 18.76 to 18.91. The commissioner shall
prepare, publish, and revise as necessary, but at least once every three years, a list of
noxious weeds and their designated classification. The list must be distributed to the public
by the commissioner who may request the help of the University of Minnesota Extension,
the county agricultural inspectors, and any other organization the commissioner considers
appropriate to assist in the distribution. The commissioner may, in consultation with
the Noxious Weed Advisory Committee, accept and consider noxious weed designation
petitions from Minnesota citizens or Minnesota organizations or associations.

Sec. 9.

Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:

Subdivision 1.

Permits.

Except as provided in section 21.74, if a person wants to
transport along a public highway materials or equipment containing the propagating parts of
weeds designated as noxious by the commissioner, the person must secure a written permit
for transportation of the material or equipment from an inspector or county-designated
employee. Inspectors or county-designated employees may issue permits to persons
residing or operating within their jurisdiction. deleted text begin If the noxious weed propagating parts are
removed from materials and equipment or devitalized before being transported, a permit is
not needed deleted text end new text begin A permit is not required for the transport of noxious weeds for the purpose
of destroying propagating parts at a Department of Agriculture-approved disposal site.
Anyone transporting noxious weed propagating parts for this purpose shall ensure that all
materials are contained in a manner that prevents escape during transport new text end .

Sec. 10.

Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:

Subdivision 1.

Duties.

The commissioner shall consult with the Noxious Weed
Advisory Committee to advise the commissioner concerning responsibilities under
the noxious weed control program. The committee shall deleted text begin also deleted text end evaluate species for
invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
by them. For each species evaluated, the committee shall recommend to the commissioner
on which noxious weed list or lists, if any, the species should be placed. Species deleted text begin currently
deleted text end designated as prohibited or restricted noxious weeds new text begin or specially regulated plants new text end must
be reevaluated every three years for a recommendation on whether or not they need to
remain on the noxious weed lists. new text begin The committee shall also advise the commissioner on
the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
the development of management criteria for each noxious weed category. new text end Members of
the committee are not entitled to reimbursement of expenses nor payment of per diem.
Members shall serve two-year terms with subsequent reappointment by the commissioner.

Sec. 11.

Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:

Subd. 2.

Membership.

The commissioner shall appoint members, which shall
include representatives from the following:

(1) horticultural science, agronomy, and forestry at the University of Minnesota;

(2) the nursery and landscape industry in Minnesota;

(3) the seed industry in Minnesota;

(4) the Department of Agriculture;

(5) the Department of Natural Resources;

(6) a conservation organization;

(7) an environmental organization;

(8) at least two farm organizations;

(9) the county agricultural inspectors;

(10) city, township, and county governments;

(11) the Department of Transportation;

(12) the University of Minnesota Extension;

(13) the timber and forestry industry in Minnesota;

(14) the Board of Water and Soil Resources; deleted text begin and
deleted text end

(15) soil and water conservation districts deleted text begin . deleted text end new text begin ;
new text end

new text begin (16) Minnesota Association of County Land Commissioners; and
new text end

new text begin (17) members as needed.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 18.91, subdivisions 3 and 5, new text end new text begin are repealed.
new text end