2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to agriculture; modifying provisions of the 1.3 value-added agricultural product processing and 1.4 marketing grant program; eliminating the late fee for 1.5 the license to use the Minnesota grown label; 1.6 clarifying the term "private contributions" for the 1.7 Minnesota grown matching account; modifying provisions 1.8 of the shared savings loan program and the sustainable 1.9 agriculture demonstration grant program; modifying 1.10 provisions of the agriculture best management 1.11 practices loan program; regulating pesticide 1.12 application in certain schools; modifying financing 1.13 limitations for the administration of the state meat 1.14 inspection program; authorizing the state agricultural 1.15 society to establish a nonprofit corporation for 1.16 charitable purposes; modifying provisions relating to 1.17 the rural finance authority; extending the sunset date 1.18 and providing for designation of replacement members 1.19 of the Minnesota agriculture education leadership 1.20 council; modifying the definition of "agricultural 1.21 land" for the purpose of recreational trespass; 1.22 extending the sunset of the dairy producers board, and 1.23 conditionally voiding its repeal; providing for 1.24 pesticide application on golf courses; changing 1.25 certain membership provisions on the state 1.26 agricultural society; defining biodiesel fuel and 1.27 requiring it in diesel fuel oil; requiring reports on 1.28 it; allowing natural gasoline as a petroleum component 1.29 in E85 fuel; extending the sunset date for the 1.30 farmer-lender mediation program; providing a temporary 1.31 waiver of board of animal health rules for use of 1.32 biological products on poultry; adding cultivated wild 1.33 rice to the agricultural commodities promotion act 1.34 provision; repealing obsolete agricultural statutes; 1.35 amending Minnesota Statutes 2000, sections 17.101, 1.36 subdivision 5; 17.102, subdivision 3; 17.109, 1.37 subdivision 3; 17.115; 17.116; 17.117; 17.53, 1.38 subdivisions 2, 8, 13; 17.63; 17.76, subdivision 2; 1.39 18B.01, by adding a subdivision; 31A.21, subdivision 1.40 2; 37.03, subdivision 1; 41B.025, subdivision 1; 1.41 41B.03, subdivision 2; 41B.043, subdivisions 1b, 2; 1.42 41B.046, subdivision 2; 41D.01, subdivisions 1, 3, 4; 1.43 97B.001, subdivision 1; 116O.09, subdivision 1a; 1.44 296A.01, subdivision 19; Laws 1986, chapter 398, 1.45 article 1, section 18, as amended; proposing coding 1.46 for new law in Minnesota Statutes, chapters 18B; 37; 2.1 239; repealing Minnesota Statutes 2000, sections 2.2 17.987; 24.001; 24.002; 24.12; 24.131; 24.135; 24.141; 2.3 24.145; 24.151; 24.155; 24.161; 24.171; 24.175; 24.18; 2.4 24.181; 33.09; 33.111. 2.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.6 Section 1. Minnesota Statutes 2000, section 17.101, 2.7 subdivision 5, is amended to read: 2.8 Subd. 5. [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 2.9 MARKETING GRANT PROGRAM.] (a) For purposes of this section: 2.10 (1) "agricultural commodity" means a material produced for 2.11 use in or as food, feed, seed, or fiber and includes crops for 2.12 fiber, food, oilseeds, seeds, livestock, livestock products, 2.13 dairy, dairy products, poultry, poultry products, and other 2.14 products or by-products of the farm produced for the same or 2.15 similar use, except ethanol; and 2.16 (2) "agricultural product processing facility" means land, 2.17 buildings, structures, fixtures, and improvements located or to 2.18 be located in Minnesota and used or operated primarily for the 2.19 processing or production of marketable products from 2.20 agricultural commodities produced in Minnesota. 2.21 (b) The commissioner shall establish and implement a 2.22 value-added agricultural product processing and marketing grant 2.23 program to help farmers finance new cooperatives that organize 2.24 for the purposes of operating agricultural product processing 2.25 facilities, forming marketing cooperatives, andformarketing 2.26 activities related to the sale and distribution of processed 2.27 agricultural products. 2.28 (c) To be eligible for this program a grantee must: 2.29 (1) be a cooperative organized under chapter 308A; 2.30 (2) certify that all of the control and equity in the 2.31 cooperative is from farmers, family farm partnerships, family 2.32 farm limited liability companies, or family farm corporations as 2.33 defined in section 500.24, subdivision 2, who are actively 2.34 engaged in agricultural commodity production; 2.35 (3) be operated primarily for the processing of 2.36 agricultural commodities produced in Minnesota; 2.37 (4) receive agricultural commodities produced primarily by 3.1 shareholders or members of the cooperative; and 3.2 (5) have no direct or indirect involvement in the 3.3 production of agricultural commodities. 3.4 (d) The commissioner may receive applications from and make 3.5 grants up to $50,000 for feasibility, marketing analysis, 3.6 assistance with organizational development, financing and 3.7 managing new cooperatives, product development, development of 3.8 business and marketing plans, and predesign of facilities 3.9 including site analysis, development of bid specifications, 3.10 preliminary blueprints and schematics, and completion of 3.11 purchase agreements and other necessary legal documents to 3.12 eligible cooperatives. The commissioner shall give priority to 3.13 applicants who use the grants for planning costs related to an 3.14 application for financial assistance from the United States 3.15 Department of Agriculture, Rural Business - Cooperative Service. 3.16 Sec. 2. Minnesota Statutes 2000, section 17.102, 3.17 subdivision 3, is amended to read: 3.18 Subd. 3. [LICENSE.] A person may not use the Minnesota 3.19 grown logo or labeling without an annual license from the 3.20 commissioner. The commissioner shall issue licenses for a fee 3.21 of $5.The commissioner shall charge a late fee of $10 for3.22renewal of a license that has expired.3.23 Sec. 3. Minnesota Statutes 2000, section 17.109, 3.24 subdivision 3, is amended to read: 3.25 Subd. 3. [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 3.26 FUNDS.] Appropriations to the Minnesota grown matching account 3.27 may be expended only to the extent that they are matched with 3.28 contributions to the account from private sources on a basis of 3.29 $4 of the appropriation to each $1 of private contributions. 3.30 Matching funds are not available after the appropriation is 3.31 encumbered. For the purposes of this subdivision, "private 3.32 contributions" includes, but is not limited to, advertising 3.33 revenue, listing fees, and revenues from the development and 3.34 sale of promotional materials. 3.35 Sec. 4. Minnesota Statutes 2000, section 17.115, is 3.36 amended to read: 4.1 17.115 [SHARED SAVINGS LOAN PROGRAM.] 4.2 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 4.3 establish a shared savings loan program to provide loans that 4.4 enable farmers to adopt best management practices that emphasize 4.5 sufficiency and self-sufficiency in agricultural inputs, 4.6 including energy efficiency, reduction or improved management of 4.7petroleum and chemicalinputs,andincreasingtheenergy 4.8self-sufficiency ofproduction by agricultural producers, and 4.9 environmental improvements. 4.10 Subd. 2. [LOAN CRITERIA.] (a) The shared savings loan 4.11 program must provide loans for purchase of new or used 4.12 machinery,and installation of equipment, andfor projects that 4.13reduce or make more efficient farm energy usemake environmental 4.14 improvements or enhance farm profitability. Eligible loan uses 4.15 do not include seed, fertilizer, or fuel. 4.16 (b) Loans may not exceed$15,000$25,000 per individual 4.17 applying for a loan and may not exceed$75,000$100,000 for 4.18 loans tofivefour or more individuals on joint projects. The 4.19 loan repayment period may be up to seven years as determined by 4.20 project cost and energy savings. The interest on the loans is 4.21 six percent. 4.22 (c) Loans may only be made to residents of this state 4.23 engaged in farming. 4.24 Subd. 3. [AWARDING OF LOANS.] (a) Applications for loans 4.25 must be made to the commissioner on forms prescribed by the 4.26 commissioner. 4.27 (b) The applications must be reviewed, ranked, and 4.28 recommended by a loan review panel appointed by the 4.29 commissioner. The loan review panel shall consist of two 4.30 lenders with agricultural experience, two resident farmers of 4.31 the state using sustainable agriculture methods, two resident 4.32 farmers of the state using organic agriculture methods, a farm 4.33 management specialist, a representative from a post-secondary 4.34 education institution, and a chair from the department. 4.35 (c) The loan review panel shall rank applications according 4.36 to the following criteria: 5.1 (1) realize savings to the cost of agricultural production 5.2and project savings to repay the cost of the loan; 5.3 (2) reduce or make more efficient use of energy or 5.4 inputs;and5.5 (3)reduce production costsincrease overall farm 5.6 profitability; and 5.7 (4) result in environmental benefits. 5.8 (d) A loan application must show that the loan can be 5.9 repaid by the applicant. 5.10 (e) The commissioner must consider the recommendations of 5.11 the loan review panel and may make loans for eligible projects. 5.12Priority must be given based on the amount of savings realized5.13by adopting the practice implemented by the loan.5.14 Subd. 4. [ADMINISTRATION; INFORMATION DISSEMINATION.] The 5.15 amount in the revolving loan account is appropriated to the 5.16 commissioner to make loans under this section and administer the 5.17 loan program. The interest on the money in the revolving loan 5.18 account and the interest on loans repaid to the state may be 5.19 spent by the commissioner for administrative expenses. The 5.20 commissioner shall collect and disseminate information relating 5.21 to projects for which loans are given under this section. 5.22 Subd. 5. [FARM MANURE DIGESTER TECHNOLOGY.] Appropriations 5.23 in Laws 1998, chapter 401, section 6, must be used for revolving 5.24 loans for demonstration projects of farm manure digester 5.25 technology. Notwithstanding the limitations of subdivision 2, 5.26 paragraphs (b) and (c), loans under this subdivision are 5.27 no-interest loans in principal amounts not to exceed $200,000 5.28 and may be made to any resident of this state. Loans for one or 5.29 more projects must be made only after the commissioner seeks 5.30 applications. Loans under this program may be used as a match 5.31 for federal loans or grants. Money repaid from loans must be 5.32 returned to the revolving fund for future projects. 5.33 Sec. 5. Minnesota Statutes 2000, section 17.116, is 5.34 amended to read: 5.35 17.116 [SUSTAINABLE AGRICULTURE DEMONSTRATION GRANTS.] 5.36 Subdivision 1. [ESTABLISHMENT.] The commissionerof6.1agricultureshall establish a grant program for sustainable 6.2 agriculture methods that demonstrates best management practices, 6.3 including farm input reduction or management, enterprise 6.4 diversification including new crops and livestock, farm energy 6.5 efficiency,orusable on-farm energyproduction, or the transfer 6.6 of technologies that enhance the environment and farm 6.7 profitability. The commissioner shall use the program to 6.8 demonstrate and publicize the energy efficiency, environmental 6.9 benefit, and profitability of sustainable agriculture techniques 6.10 or systems from production through marketing. The grants must 6.11 fund research or demonstrations on farmsof external input6.12reduction techniques or farm scale energy production methods6.13 consistent with the program objectives. 6.14 Subd. 2. [ELIGIBILITY.] (a) Grants may only be made to 6.15 farmers, educational institutions, individuals at educational 6.16 institutions, or nonprofit organizations residing or located in 6.17 the state for research or demonstrations on farms in the state. 6.18 (b) Grants may only be made for projects that show: 6.19 (1) the ability to maximize direct or indirect energy 6.20 savings or production; 6.21 (2) a positive effect or reduced adverse effect on the 6.22 environment; and 6.23 (3) increased profitability for the individual farm by 6.24 reducing costs or improving marketing opportunities. 6.25 Subd. 3. [AWARDING OF GRANTS.] (a) Applications for grants 6.26 must be made to the commissioner on forms prescribed by the 6.27 commissioner. 6.28 (b) The applications must be reviewed, ranked, and 6.29 recommended by a technical review panel appointed by the 6.30 commissioner. The technical review panel shall consist of a 6.31 soil scientist, an agronomist, a representative from a 6.32 post-secondary educational institution, an agricultural 6.33 marketing specialist, two resident farmers of the state using 6.34 sustainable agriculture methods, two resident farmers of the 6.35 state using organic agriculture methods, and a chair from the 6.36 department. 7.1 (c) The technical review panel shall rank applications 7.2 according to the following criteria: 7.3 (1) direct or indirect energy savings or production; 7.4 (2) environmental benefit; 7.5 (3) farm profitability; 7.6 (4) the number of farms able to apply the techniques or the 7.7 technology proposed; 7.8 (5) the effectiveness of the project as a demonstration; 7.9 (6) the immediate transferability of the project to farms; 7.10 and 7.11 (7) the ability of the project to accomplish its goals. 7.12 (d) The commissioner shall consider the recommendations of 7.13 the technical review panel and may award grants for eligible 7.14 projects. Priority must be given to applicants who are farmers 7.15 or groups of farmers. 7.16 (e) Grants for eligible projects may not exceed $25,000 7.17 unless the portion above $25,000 is matched on an equal basis by 7.18 the applicant's cash or in-kind land use contribution. Grant 7.19 funding of projects may not exceed $50,000 under this section, 7.20 but applicants may utilize other funding sources. A portion of 7.21 each grant must be targeted for public information activities of 7.22 the project. 7.23 (f) A project may continue for up to three years. 7.24 Multiyear projects must be reevaluated by the technical review 7.25 panel and the commissioner before second or third year funding 7.26 is approved. A project is limited to one grant for its funding. 7.27 Sec. 6. Minnesota Statutes 2000, section 17.117, is 7.28 amended to read: 7.29 17.117 [AGRICULTURE BEST MANAGEMENT PRACTICES LOAN 7.30 PROGRAM.] 7.31 Subdivision 1. [PURPOSE.] The purpose of the agriculture 7.32 best management practices loan program is to provide low or no 7.33 interest financing to farmers, agriculture supply businesses, 7.34 and rural landowners for the implementation of agriculture and 7.35 other best management practices that reduce environmental 7.36 pollution. 8.1 Subd. 2. [AUTHORITY.] The commissionershallmay develop 8.2 administrative guidelines specifying criteria, standards, and 8.3 procedures for making loans and establish, adopt rules for, and 8.4 implement a program to make loans or otherwise provide funds to 8.5 local units of government, federal authorities, lending 8.6 institutions, and other appropriate organizations who will in 8.7 turn provide loans to landowners and businesses for facilities, 8.8 fixtures, equipment, or othersustainablebest management 8.9 practices that prevent or mitigatesources of nonpoint source8.10waterpollution or other adverse environmental impacts.The8.11commissioner shall establish pilot projects to develop8.12procedures for implementing the program. The commissioner shall8.13develop administrative guidelines to implement the pilot8.14projects specifying criteria, standards, and procedures for8.15making loans.The agriculture best management practices loan 8.16 program must provide a consistent programmatic framework for the 8.17 disbursement and administration of funds available to the 8.18 commissioner designated to the program for protection of 8.19 environmental quality or remediation or mitigation of adverse 8.20 environmental impacts. The distribution of loans or funds 8.21 through the program must comply with all limitations, 8.22 provisions, or requirements of the respective funding sources. 8.23 Unless otherwise limited by the funding source, the commissioner 8.24 shall manage the program using perpetual revolving fund accounts. 8.25 Subd. 3. [APPROPRIATIONS.] Up to $140,000,000 of the 8.26 balance in the water pollution control revolving fund in section 8.27 446A.07, as determined by the public facilities authority, is 8.28 appropriated to the commissioner for the establishment of this 8.29 program. In addition, the commissioner may receive 8.30 appropriations from the legislature and grants or funds from 8.31 other sources for implementation of the program. 8.32 Subd. 4. [DEFINITIONS.] For the purposes of this section, 8.33 the terms defined in this subdivision have the meanings given 8.34 them. 8.35 (a) "Agricultural and environmental revolving accounts" 8.36 means accounts in the agricultural fund, controlled by the 9.1 commissioner, which hold funds available to the program. 9.2 (b) "Agriculture supply business" means a person, 9.3 partnership, joint venture, corporation, limited liability 9.4 company, association, firm, public service company, or 9.5 cooperative that provides materials, equipment, or services to 9.6 farmers or agriculture-related enterprises. 9.7 (c) "Allocation" means the funds awarded to an applicant 9.8 for implementation of best management practices through a 9.9 competitive or noncompetitive application process. 9.10(a)(d) "Applicant" means acounty or a local government9.11unit designated by a county under subdivision 8, paragraph9.12(a)local unit of government eligible to participate in this 9.13 program that requests an allocation of funds as provided in 9.14 subdivision 6b. 9.15(b) "Authority" means the Minnesota public facilities9.16authority as established in section 446A.03.9.17(c)(e) "Best management practices" has the meaning given 9.18 in sections 103F.711, subdivision 3, and 103H.151, subdivision 2 9.19 or other practices, techniques, and measures that have been 9.20 demonstrated to the satisfaction of the commissioner to prevent 9.21 or reduce adverse environmental impacts by using the most 9.22 effective and practicable means of achieving environmental goals. 9.23(d) "Chair" means the chair of the board of water and soil9.24resources or the designee of the chair.9.25(e)(f) "Borrower" meansan individuala farmer, an 9.26 agriculture supply business, or a rural landowner applying for a 9.27 low-interest loan. 9.28(f)(g) "Commissioner" means the commissioner of 9.29 agriculture, including when the commissioner is acting in the 9.30 capacity of chair of the rural finance authority, or the 9.31 designee of the commissioner. 9.32 (h) "Committed project" means an eligible project scheduled 9.33 to be implemented at a future date: 9.34 (1) that has been approved and certified by the local 9.35 government unit; and 9.36 (2) for which a local lender has obligated itself to offer 10.1 a loan. 10.2(g)(i) "Comprehensive water management plan" means a state 10.3 approved and locally adopted plan authorized under section 10.4 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405. 10.5(h) "Local allocation request" means a loan allocation10.6request from an applicant to implement agriculturally related10.7best management practices defined in paragraph (c).10.8 (j) "Cost incurred" means expenses for implementation of a 10.9 project accrued because the borrower has agreed to purchase 10.10 equipment or is obligated to pay for services or materials 10.11 already provided as a result of implementing a prior approved 10.12 eligible project. 10.13 (k) "Farmer" means a person, partnership, joint venture, 10.14 corporation, limited liability company, association, firm, 10.15 public service company, or cooperative who regularly 10.16 participates in physical labor or operations management of 10.17 farming and files a Schedule F as part of filing United States 10.18 Internal Revenue Service Form 1040 or indicates farming as the 10.19 primary business activity under Schedule C, K, or S, or any 10.20 other applicable report to the United States Internal Revenue 10.21 Service. 10.22(i)(l) "Lender agreement" meansa loan agreement entered10.23into between the commissioner, a local lender, and the10.24applicant, if different from the local lender. The agreement10.25will contain terms and conditions of the loan that will include10.26but need not be limited to general loan provisions, loan10.27management requirements, application of payments, loan term10.28limits, allowable expenses, and fee limitationsan agreement 10.29 entered into between the commissioner and a local lender which 10.30 contains terms and conditions of participation in the program. 10.31(j)(m) "Local government unit" means a county, soil and 10.32 water conservation district, or an organization formed for the 10.33 joint exercise of powers under section 471.59 with the authority 10.34 to participate in the program. 10.35(k)(n) "Local lender" means a local government unit as 10.36 defined in paragraph(j)(m), a state or federally chartered 11.1 bank, a savings association, a state or federal credit 11.2 union, Agribank and its affiliated organizations, or a nonprofit 11.3 economic development organization or other financial lending 11.4 institution approved by the commissioner, or Farm Credit11.5Services. 11.6 (o) "Local revolving loan account" means the account held 11.7 by a local government unit and a local lender into which 11.8 principal repayments from borrowers are deposited and new loans 11.9 are issued in accordance with the requirements of the program 11.10 and lender agreements. 11.11(l)(p) "Nonpoint source" has the meaning given in section 11.12 103F.711, subdivision 6. 11.13 (q) "Program" means the agriculture best management 11.14 practices loan program in this section. 11.15 (r) "Project" means one or more components or activities 11.16 located within Minnesota that are required by the local 11.17 government unit to be implemented for satisfactory completion of 11.18 an eligible best management practice. 11.19 (s) "Rural landowner" means the owner of record of 11.20 Minnesota real estate located in an area determined by the local 11.21 government unit to be rural after consideration of local land 11.22 use patterns, zoning regulations, jurisdictional boundaries, 11.23 local community definitions, historical uses, and other 11.24 pertinent local factors. 11.25 Subd. 5. [USES OF FUNDS.] Use of funds under this section 11.26 must be in compliance with the rules and regulations of the 11.27 funding source or appropriation. Use of funds from the public 11.28 facilities authority must comply with the federal Water 11.29 Pollution Control Act, section 446A.07, and eligible activities 11.30 listed in the intended use plan authorized in section 446A.07, 11.31 subdivision 4. 11.32 Subd. 5a. [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 11.33 ACCOUNTS.] (a) There shall be established in the agricultural 11.34 fund revolving accounts eligible to receive appropriations and 11.35 money from other sources. All repayments of loans granted under 11.36 this section, including principal and interest, must be 12.1 deposited into the appropriate revolving account created in this 12.2 subdivision or the account created in subdivision 13. Interest 12.3 earned in an account accrues to that account. 12.4 (b) The money in the revolving accounts and the account 12.5 created in subdivision 13 is appropriated to the commissioner 12.6 for the purposes of this section. 12.7 Subd. 6. [APPLICATION.] (a) Only the following local 12.8 government units may apply for funds under this program: 12.9 (1) counties or their designees; 12.10 (2) soil and water conservation districts; and 12.11 (3) joint power organizations consisting of counties or 12.12 their designees or soil and water conservation districts. 12.13 (b) A county may submit an application for an allocation. 12.14 A county or a group of counties may designate another local 12.15 government unit to submit a local allocation request on their 12.16 behalf. If a county does not submit an application, and does 12.17 not designate another local government unit, a soil and water 12.18 conservation district may submit an application for an 12.19 allocation. If the local soil and water conservation district 12.20 does not submit an application, then an eligible joint powers 12.21 organization may submit an application for an allocation. In 12.22 all instances, there may be only one application representing 12.23 any geographic area. The applicant must coordinate and submit 12.24 requests on behalf of other units of government within the 12.25 geographic jurisdiction of the applicant. 12.26(a)(c) The commissioner must prescribe forms and establish 12.27 an application process for applicants to apply fora localan 12.28 allocationrequestof funds. The application must include but 12.29 need not be limited to (1) the geographic area served; (2) the 12.30 type and estimated cost of activities or projects for which they 12.31 are seekinga loanan allocation; and (3)a ranking12.32 prioritization or targeting of proposed activities or projects;12.33and (4) the designation of the local lender and lending12.34practices the local lender intends to use to issue the loans to12.35the borrowers, if a local lender other than the applicant is to12.36be used. 13.1(b)(d) Ifa local allocation requestan application is 13.2 rejected, the applicant must be notified in writing as to the 13.3 reasons for the rejection and given 30 days to submit a revised 13.4 application. The revised application shall be reviewed 13.5 according to the same procedure used to review the initial 13.6 application. Failure of an applicant to be awarded funds does 13.7 not constitute a rejection of the application. 13.8 Subd. 6a. [REVIEW AND RANKING OF APPLICATIONS.] (a) The 13.9 commissioner shall chair the subcommittee established in section 13.10 103F.761, subdivision 2, paragraph (b), for purposes of 13.11 reviewing and ranking applications and recommending to the 13.12 commissioner allocation amounts. The subcommittee consists of 13.13 representatives of the departments of agriculture, natural 13.14 resources, and health; the pollution control agency; the board 13.15 of water and soil resources; the Farm Service Agency and the 13.16 Natural Resource Conservation Service of the United States 13.17 Department of Agriculture; the Association of Minnesota 13.18 Counties; the Minnesota Association of Soil and Water 13.19 Conservation Districts; and other agencies or associations the 13.20 commissioner determines are appropriate. 13.21 (b) The subcommittee must use the criteria in clauses (1) 13.22 to (9) as well as other criteria it determines appropriate in 13.23 carrying out the review and ranking: 13.24 (1) whether the proposed activities are identified in a 13.25 comprehensive water management plan or other appropriate local 13.26 planning documents as priorities; 13.27 (2) the potential that the proposed activities have for 13.28 improving or protecting environmental quality; 13.29 (3) the extent that the proposed activities support 13.30 areawide or multijurisdictional approaches to protecting 13.31 environmental quality based on defined watershed or similar 13.32 geographic areas; 13.33 (4) whether the activities are needed for compliance with 13.34 existing environmental laws or rules; 13.35 (5) whether the proposed activities demonstrate 13.36 participation, coordination, and cooperation between local units 14.1 of government and other public agencies; 14.2 (6) whether there is coordination with other public and 14.3 private funding sources and programs; 14.4 (7) whether the applicant has targeted specific best 14.5 management practices to resolve specific environmental problems; 14.6 (8) past performance of the applicant in completing 14.7 projects identified in prior applications and allocation 14.8 agreements; and 14.9 (9) whether there are off-site public benefits. 14.10 Subd. 6b. [ALLOCATION AMOUNT.] (a) The subcommittee 14.11 created in subdivision 6a shall recommend to the commissioner 14.12 the amount of allocation for each applicant. This allocation 14.13 must include: 14.14 (1) the amount of repayments received by the commissioner 14.15 during the previous year from prior completed projects approved 14.16 by the local government unit; and 14.17 (2) the amount of funds previously designated to committed 14.18 projects. 14.19 (b) Within the limits of the funds available to the 14.20 commissioner, the subcommittee may recommend an increased 14.21 allocation award to the applicant based on: 14.22 (1) the ranking of the local government unit application 14.23 under subdivision 6a; and 14.24 (2) the amount of unallocated or uncommitted funds in, or 14.25 that will be received by, the agricultural and environmental 14.26 revolving accounts within one year. 14.27 (c) Notwithstanding paragraphs (a) and (b), the 14.28 commissioner may reserve up to two percent of all funds 14.29 appropriated to the agricultural and environmental revolving 14.30 accounts to be allocated to applicants that disburse or commit 14.31 all of their current allocations or to local lenders who wish to 14.32 provide financial assistance. 14.33 The commissioner may add, for the purposes of calculating 14.34 future allocations under paragraphs (a) and (b), the loan amount 14.35 for projects financed from these reserved funds to the 14.36 allocation for the respective local government units in which 15.1 jurisdiction the project was completed. 15.2 Subd. 7. [PAYMENTS TO LOCAL LENDERS.] (a) Payments made 15.3 from thewater pollution control revolving fundcommissioner to 15.4 the local lender must be made in accordance with applicable 15.5 state and federal laws and rules governing the payments and the 15.6 lender agreement. 15.7 (b) Payments from the commissioner to the local lender must 15.8 be disbursed on a cost-incurred basis.Local lenders shall15.9submit payment requests at least quarterly but not more than15.10monthly. Payment requests must be reviewed and approved by the15.11commissioner. The payment request form must itemize all costs15.12by major elements and show eligible and ineligible costs.The 15.13 request must be made in accordance with requirements and 15.14 procedures established by the commissioner. Payment requests 15.15 must be reviewed and approved by the commissioner. 15.16(c) The commissioner may initiate recision of an allocation15.17granted in a lender agreement as provided in subdivision 11,15.18paragraph (d), if the local lender fails to enter into loans15.19with borrowers equaling the total allocation granted within one15.20year from the date of the lender agreement or fails to have the15.21total amount of allocated funds drawn down through payment15.22requests within two years. An additional year to draw down the15.23undisbursed portion of an allocation may be granted by the15.24commissioner under extenuating circumstances.15.25 Subd. 8. [APPLICANT; BORROWERSALLOCATION AGREEMENT.](a)15.26A county may submit a local allocation request. A county or a15.27group of counties may designate another local government unit to15.28submit a local allocation request.15.29(b) If a county does not submit a local allocation request,15.30and does not designate another local government unit, a soil and15.31water conservation district may submit a local allocation15.32request. In all instances, there may be only one request from a15.33county. The applicant must coordinate and submit requests on15.34behalf of other units of government within the geographic15.35jurisdiction of the applicant.(a) Eligible local government 15.36 units with an allocation award may enter into an allocation 16.1 agreement with the commissioner and participate in this program. 16.2 (b) The allocation agreement must contain terms and 16.3 conditions for participation in this program and providing of 16.4 funds through this program, including, but not limited to: 16.5 program requirements, reporting requirements, project 16.6 eligibility and limitations, allowable expenses, limitations, 16.7 rescission and cancellation provisions, and the responsibilities 16.8 of the commissioner, local government unit, and local lender. 16.9 (c) If the commissioner determines that a local government 16.10 unit is not in compliance with the terms of the allocation 16.11 agreement, the commissioner may rescind all or part of any 16.12 allocation awarded through this program. 16.13 Subd. 9. [REVIEW AND RANKING OF ALLOCATION REQUESTS16.14 ALLOCATION RESCISSION.](a) The commissioner shall chair the16.15subcommittee established in section 103F.761, subdivision 2,16.16paragraph (b), for purposes of reviewing and ranking local16.17allocation requests. The rankings must be in order of priority16.18and shall provide financial assistance within the limits of the16.19funds available. In carrying out the review and ranking, the16.20subcommittee must consist of, at a minimum, the chair,16.21representatives of the pollution control agency, United States16.22Department of Agricultural Stabilization and Conservation16.23Service, United States Department of Agriculture Soil16.24Conservation Service, Association of Minnesota Counties, and16.25other agencies or associations as the commissioner, the chair,16.26and agency determine are appropriate. The review and ranking16.27shall take into consideration other related state or federal16.28programs.16.29(b) The subcommittee shall use the criteria listed below in16.30carrying out the review and ranking:16.31(1) whether the proposed activities are identified in a16.32comprehensive water management plan as priorities;16.33(2) whether the applicant intends to establish a revolving16.34loan program under subdivision 10, paragraph (b);16.35(3) the potential that the proposed activities have for16.36improving or protecting surface and groundwater quality;17.1(4) the extent that the proposed activities support17.2areawide or multijurisdictional approaches to protecting water17.3quality based on defined watershed;17.4(5) whether the activities are needed for compliance with17.5existing water related laws or rules;17.6(6) whether the proposed activities demonstrate17.7participation, coordination, and cooperation between local units17.8of government and other public agencies;17.9(7) whether there is coordination with other public and17.10private funding sources and programs;17.11(8) whether there are off-site public benefits such as17.12preventing downstream degradation and siltation; and17.13(9) the proposed interest rate.(a) Continued availability 17.14 of allocations granted to a local government unit is contingent 17.15 upon the commissioner's approval of the local government unit's 17.16 annual report. The commissioner shall review this annual report 17.17 to ensure that the past and future uses of the funds are 17.18 consistent with the comprehensive water management plan, other 17.19 local planning documents, the requirements of the funding 17.20 source, and compliance to program requirements. If the 17.21 commissioner concludes the past or intended uses of the money 17.22 are not consistent with these requirements, the commissioner 17.23 shall rescind all or part of the allocation awarded to a local 17.24 government unit. 17.25 (b) The commissioner may rescind funds allocated to the 17.26 local government unit that are not designated to committed 17.27 projects or disbursed within one year from the date of the 17.28 allocation agreement. 17.29 (c) An additional year to use the undisbursed portion of an 17.30 allocation may be granted by the commissioner under extenuating 17.31 circumstances. 17.32 Subd. 9a. [AUTHORITY AND RESPONSIBILITIES OFAPPLICANTS17.33 THE LOCAL GOVERNMENT UNITS.]Applicants may enter into a lender17.34agreement designating a local lender. Applicants designating17.35themselves as the local lender may enter into contracts for loan17.36review, processing, and servicing.(a) A local government unit 18.1 that enters into an allocation agreement with the commissioner: 18.2 (1) is responsible for the local administration and 18.3 implementation of the program in accordance with this section; 18.4 (2) may submit applications for allocations to the 18.5 commissioner; 18.6 (3) shall identify, develop, determine eligibility, define 18.7 and approve projects, designate maximum loan amounts for 18.8 projects, and certify completion of projects implemented under 18.9 this program. In areas where no local government unit has 18.10 applied for funds under this program, the commissioner may 18.11 appoint a local government unit to review and certify projects 18.12 or the commissioner may assume the authority and responsibility 18.13 of the local government unit; 18.14 (4) shall certify as eligible only projects that are within 18.15 its geographic jurisdiction or within the geographic area 18.16 identified in its local comprehensive water management plans or 18.17 other local planning documents; 18.18 (5) may require withholding by the local lender of all or a 18.19 portion of the loan to the borrower until satisfactory 18.20 completion of all required components of a certified project; 18.21 (6) must identify which account is used to finance an 18.22 approved project if the local government unit has allocations 18.23 from multiple accounts in the agricultural and environmental 18.24 revolving accounts; 18.25 (7) shall report to the commissioner annually the past and 18.26 intended uses of allocations awarded; and 18.27 (8) may request additional funds in excess of their 18.28 allocation when funds are available in the agricultural and 18.29 environmental revolving accounts, as long as all other 18.30 allocation awards to the local government unit have been used or 18.31 committed. 18.32 (b) If a local government unit withdraws from participation 18.33 in this program, the local government unit, or the commissioner 18.34 in accordance with the priorities established under subdivision 18.35 6a, may designate another local government unit that is eligible 18.36 under subdivision 6, as the new local government unit 19.1 responsible for local administration of this program. This 19.2 designated local government unit may accept responsibility and 19.3 administration of allocations awarded to the former responsible 19.4 local government unit. 19.5 Subd. 9b. [LENDER AGREEMENT.] (a) Any local lender 19.6 entering into a lender agreement with the commissioner may 19.7 participate in this program. 19.8 (b) The lender agreement will contain terms and conditions 19.9 for participation in this program and providing funds to the 19.10 local lenders, including but not limited to, program 19.11 requirements, loan and account management requirements, 19.12 payments, repayments, term limits, allowable expenses, fee 19.13 limitations, rescission and cancellation provisions, collateral 19.14 and security requirements, reporting requirements, review and 19.15 appeal procedure for cancellation of the loan agreement or 19.16 disqualification as a local lender, and the responsibilities of 19.17 the commissioner, local government unit, and local lender. 19.18 (c) If the commissioner determines that a local lender is 19.19 not in compliance with the terms of the lender agreement, the 19.20 commissioner may take the following actions: 19.21 (1) disqualifying the local lender as a participating 19.22 lender in this program for a period of up to five years from the 19.23 date that the commissioner determines noncompliance to the 19.24 lender agreement; and 19.25 (2) requiring immediate or accelerated repayment of all or 19.26 part of all funds provided to the local lender. 19.27 (d) Existing lender agreements, executed prior to July 1, 19.28 2001, may be amended by mutual consent of all signatory parties, 19.29 to comply with this section, to establish a single allocation 19.30 agreement that includes the amount of prior allocation awards 19.31 and defines the terms and conditions required under subdivision 19.32 8, or to modify the amount of allocation awarded. 19.33 Subd. 10. [AUTHORITY AND RESPONSIBILITIES OF LOCAL 19.34 LENDERS.] (a) Local lenders may enter into lender agreements 19.35 with the commissioner. 19.36 (b) Local lenders may enter into loan agreements with 20.1 borrowers to finance eligible projects under this section. 20.2 (c)Local lenders may establish revolving loan programs to20.3finance projects under this sectionThe local lender shall 20.4 notify the local government unit of the loan amount issued to 20.5 the borrower after the closing of each loan. 20.6 (d) Local lenders with local revolving loan accounts 20.7 created before July 1, 2001, may continue to retain and use 20.8 those accounts in accordance with their lending agreements for 20.9 the full term of those agreements. 20.10 (e) Local lenders, includingapplicantslocal government 20.11 units designating themselves as the local lender, may enter into 20.12 participation agreements with other lenders. 20.13 (f) Local lenders mayalsoenter into contracts with other 20.14 lenders for the limited purposes of loan review, processing and 20.15 servicing, or to enter into loan agreements with borrowers to 20.16 finance projects under this section. Other lenders entering 20.17 into contracts with local lenders under this section must meet 20.18 the definition of local lender in subdivision 4, must comply 20.19 with all provisions of the lender agreement and this section, 20.20 and must guarantee repayment of the loan funds to the local 20.21 lender.In no case may there be more than one local lender per20.22county or more than one revolving fund per county.20.23 (g) When required by the local government unit, a local 20.24 lender must withhold all or a portion of the loan disbursement 20.25 for a project until notified by the local government unit that 20.26 the project has been satisfactorily completed. 20.27 (h) The local lender is responsible for repaying all funds 20.28 provided by the commissioner to the local lender. 20.29 (i) The local lender is responsible for collecting 20.30 repayments from borrowers. If a borrower defaults on a loan 20.31 issued by the local lender, it is the responsibility of the 20.32 local lender to obtain repayment from the borrower. Default on 20.33 the part of borrowers shall have no effect on the local lender's 20.34 responsibility to repay its obligations to the commissioner 20.35 whether or not the local lender fully recovers defaulted amounts 20.36 from borrowers. 21.1 (j) The local lender shall provide sufficient collateral or 21.2 protection to the commissioner for the funds provided to the 21.3 local lender. The commissioner must approve the collateral or 21.4 protection provided. 21.5 Subd. 11. [LOANS ISSUED TO BORROWERELIGIBILITY; TERMS;21.6REPAYMENT; RECISION.] (a) Local lendersshall use the following21.7criteria in addition to other criteria they deem necessary in21.8determining the eligibility of borrowers for loans:21.9(1) whether the activity is certified by a local unit of21.10governmentmay issue loans only for projects that are approved 21.11 and certified by the local government unit as meeting priority 21.12 needs identified in a comprehensive water management planand is21.13 or other local planning documents, are in compliance with 21.14 accepted practices, standards, specifications, or criteria;21.15(2) whether the activity is certified as, and are eligible 21.16 for financing under Environmental Protection Agency or other 21.17 applicable guidelines; and21.18(3) whether the repayment is assured from the borrower. 21.19 (b) The local lender may use any additional criteria 21.20 considered necessary to determine the eligibility of borrowers 21.21 for loans. 21.22 (c) Local lenders shall set the terms and conditions of 21.23 loans to borrowers, except that: 21.24 (1) no loan toan individuala borrower may exceed $50,000; 21.25 (2) no loan for a project may exceed $50,000; and 21.26 (3) no borrower shall, at any time, have multiple loans 21.27 from this program with a total outstanding loan balance of more 21.28 than $50,000.In all instances, local lenders must provide for21.29sufficient collateral or protection for the loan principal.21.30They are responsible for collecting repayments by borrowers.21.31(c) The local lender is responsible for repaying the21.32principal of a loan to the commissioner. The terms of repayment21.33will be identified in the lender agreement. If defaults occur,21.34it is the responsibility of the local lender to obtain repayment21.35from the borrower. Default on the part of individual borrowers21.36shall have no effect on the local lender's responsibility to22.1repay its loan from the commissioner whether or not the local22.2lender fully recovers defaulted amounts from individual22.3borrowers. For revolving loan programs established under22.4subdivision 10, paragraph (c), the lender agreement must provide22.5that:22.6(1) repayment of principal to the commissioner must begin22.7no later than ten years after the date of the lender agreement22.8and must be repaid in full no later than 20 years after the date22.9of the lender agreement;22.10(2) after the initial ten-year period, the local lender22.11shall not write any additional loans, and any existing principal22.12balance held by the local lender shall be immediately repaid to22.13the commissioner;22.14(3) after the initial ten-year period, all principal22.15received by the local lender from borrowers shall be repaid to22.16the commissioner as it is received; and22.17(4) the applicant shall report to the commissioner annually22.18regarding the past and intended uses of the money in the22.19revolving loan program.22.20(d) Continued availability of the allocation granted in the22.21lender agreement is contingent upon commissioner approval of the22.22annual report. The commissioner shall review the annual report22.23to ensure the past and future uses of the funds are consistent22.24with the comprehensive water management plan and the lender22.25agreement. If the commissioner concludes the past or intended22.26uses of the money are not consistent with the comprehensive22.27water management plan or the lender agreement, the commissioner22.28shall rescind the allocation granted under the lender agreement.22.29Such recision shall result in termination of available22.30allocation, the immediate repayment of any unencumbered funds22.31held by the local lender in a revolving loan fund, and the22.32repayment of the principal portion of loan repayments to the22.33commissioner as they are received. The lender agreement shall22.34reflect the commissioner's rights under this paragraph.22.35(e) A local lender shall receive certification from local22.36government unit staff that a project has been satisfactorily23.1completed prior to releasing the final loan disbursement.23.2 (d) The maximum term length for conservation tillage and 23.3 individual sewage treatment system projects is five years. The 23.4 maximum term length for other projects in this paragraph is ten 23.5 years. 23.6 (e) Fees charged at the time of closing must: 23.7 (1) be in compliance with normal and customary practices of 23.8 the local lender; 23.9 (2) be in accordance with published fee schedules issued by 23.10 the local lender; 23.11 (3) not be based on participation program; and 23.12 (4) be consistent with fees charged other similar types of 23.13 loans offered by the local lender. 23.14 (f) The interest rate assessed to outstanding loan balance 23.15 by the local lender must not exceed three percent per year. 23.16 Subd. 11a. [ELIGIBLE PROJECTS.] All projects that 23.17 remediate or mitigate adverse environmental impacts are eligible 23.18 if: 23.19 (1) the project is eligible under the allocation agreement 23.20 and funding sources designated by the local government unit to 23.21 finance the project; and 23.22 (2) manure management projects remediate or mitigate 23.23 impacts from facilities with less than 1,000 animal units as 23.24 defined in Minnesota Rules, chapter 7020. 23.25 Subd. 12. [DATA PRIVACY.] The following data onapplicants23.26 local government units, local lenders, or borrowers collected by 23.27 the commissioner under this section are private for data on 23.28 individuals as provided in section 13.02, subdivision 12, or 23.29 nonpublic for data not on individuals as provided in section 23.30 13.02, subdivision 9: financial information, including, but not 23.31 limited to, credit reports, financial statements, tax returns 23.32 and net worth calculations received or prepared by the 23.33 commissioner. 23.34 Subd. 13. [ESTABLISHMENT OF ACCOUNT.] The public 23.35 facilities authority shall establish an account called the 23.36 agriculture best management practices revolvingfundaccount to 24.1 provide loans and other forms of financial assistance authorized 24.2 under section 446A.07. Thefundaccount must be credited with 24.3 repayments. 24.4Subd. 14. [FEES AND INTEREST.] (a) Origination fees24.5charged directly to borrowers by local lenders upon executing a24.6loan shall not exceed one-half of one percent of the loan24.7amount. Interest assessed to loan repayments by the local24.8lender must not exceed three percent.24.9(b) The local lender shall create a principal account to24.10which the principal portions of individual borrower loan24.11repayments will be credited.24.12(c) Any interest earned on outstanding loan balances not24.13separated as repayments are received and before the principal24.14amounts are deposited in the principal account shall be added to24.15the principal portion of the loan to the local lender and must24.16be paid to the commissioner when the principal is due under the24.17lender agreement.24.18(d) Any interest earned on the principal account must be24.19added to the principal portion of the loan to the local lender24.20and must be paid to the commissioner when the principal is due24.21under the lender agreement.24.22 Subd. 15. [COMMISSIONER'S REPORT.] (a) The commissioner 24.23and chairshall prepare and submit a report to the house of 24.24 representatives and senate committees with jurisdiction over the 24.25 environment, natural resources, and agriculture by October 15 of 24.26 each odd-numbered year. 24.27 (b) The report shall include, but need not be limited to, 24.28 matters such as loan allocations and uses, the extent to which 24.29 the financial assistance is helping implement local water and 24.30 other environmental planning priorities, the integration or 24.31 coordination that has occurred with related programs, and other 24.32 matters deemed pertinent to the implementation of the program. 24.33 Subd. 16. [LIENS AGAINST PROPERTY.] (a)Unless a county24.34determines otherwise, at the time of the disbursement of funds24.35on a loan to a borrower under this section, the principal24.36balance due plus accrued interest on the principal balance as25.1provided by this section becomes a lien in favor of the county25.2making the loan upon the real property on which the project is25.3located. The lien must be first and prior to all other liens25.4against the property, including state tax liens, whether filed25.5before or after the placing of a lien under this subdivision,25.6except liens for special assessments by the county under25.7applicable special assessments laws, which liens shall be of25.8equal rank with the lien created under this subdivision. A lien25.9in favor of the county shall be first and prior as provided in25.10this subdivision only if the county making the loan gives25.11written notice of the intent to make the loan under this25.12subdivision to all other persons having a recorded interest in25.13the real property subject to the lien, no less than 30 days25.14prior to the disbursement of the funds, and receives an25.15agreement to subordinate superior lien positions held by all25.16other lenders having a recorded interest in the real property25.17subject to the lien. This lien and subordination agreement must25.18be recorded against the real estate in the county recorder's25.19office or filed with the registrar of titles for the county or25.20counties in which the property is located. The county may bill25.21amounts due on the loan on the tax statement for the property.25.22Enforcement of the lien created by this subdivision shall, at25.23the county's option, be in the manner set forth in chapter 58025.24or 581. When the amount due plus interest has been paid, the25.25county shall file a satisfaction of the lien created under this25.26subdivision.The amount of loans and accruing interest made by 25.27 counties acting as local lenders under this section is a lien 25.28 against the real property for which the improvement was made and 25.29 must be assessed against the property or properties benefited 25.30 unless the amount is prepaid. An amount loaned under the 25.31 program and its accruing interest assessed against the property 25.32 is a priority lien only against subsequent liens. 25.33 (b) The county may bill amounts due on the loan on the tax 25.34 statement for the property. Enforcement of the lien created by 25.35 this subdivision must, at the county's option, be in the manner 25.36 set forth in chapter 580 or 581. When the amount due and all 26.1 interest has been paid, the county shall file a satisfaction of 26.2 the lien created under this subdivision. 26.3(b)(c) A county may also secure amounts due on a loan 26.4 under this section by taking a purchase money security interest 26.5 in equipment in accordance with chapter 336, article 9, and may 26.6 enforce the purchase money security interest in accordance with 26.7 chapters 336, article 9, and 565. 26.8 Subd. 17. [REFERENDUM EXEMPTION.] For the purpose of 26.9 obtaining a loan from the commissioner, a local government unit 26.10 acting as a local lender may provide to the commissioner its 26.11 general obligation note. All obligations incurred by a local 26.12 government unit in obtaining a loan from the commissioner must 26.13 be in accordance with chapter 475, except that so long as the 26.14 obligations are issued to evidence a loan from the commissioner 26.15 to the local government unit, an election is not required to 26.16 authorize the obligations issued, and the amount of the 26.17 obligations shall not be included in determining the net 26.18 indebtedness of the local government unit under the provisions 26.19 of any law or chapter limiting the indebtedness. 26.20 Sec. 7. Minnesota Statutes 2000, section 17.53, 26.21 subdivision 2, is amended to read: 26.22 Subd. 2. [AGRICULTURAL COMMODITY.] (a) Except as provided 26.23 in paragraph (b), "agricultural commodity" means any 26.24 agricultural product, including, without limitation, animals and 26.25 animal products, grown, raised, produced, or fed within 26.26 Minnesota for use as food, feed, seed, or any industrial or 26.27 chemurgic purpose. 26.28 (b) For wheatand, barley, and cultivated wild 26.29 rice, "agricultural commodity" means wheatand, barley, and 26.30 cultivated wild rice, including, without limitation, wheatand, 26.31 barley, and cultivated wild rice grown or produced within or 26.32 outside Minnesota, for use as food, feed, seed, or any 26.33 industrial or chemurgic purpose. 26.34 Sec. 8. Minnesota Statutes 2000, section 17.53, 26.35 subdivision 8, is amended to read: 26.36 Subd. 8. [FIRST PURCHASER.] (a) Except as provided in 27.1 paragraph (b), "first purchaser" means any person that buys 27.2 agricultural commodities for movement into commercial channels 27.3 from the producer; or any lienholder, secured party or pledgee, 27.4 public or private, or assignee of said lienholder, secured party 27.5 or pledgee, who gains title to the agricultural commodity from 27.6 the producer as the result of exercising any legal rights by the 27.7 lienholder, secured party, pledgee, or assignee thereof, 27.8 regardless of when the lien, security interest or pledge was 27.9 created and regardless of whether the first purchaser is 27.10 domiciled within the state or without. "First purchaser" does 27.11 not mean the commodity credit corporation when a commodity is 27.12 used as collateral for a federal nonrecourse loan unless the 27.13 commissioner determines otherwise. 27.14 (b) For wheatand, barley, and cultivated wild rice, "first 27.15 purchaser" means a person who buys, receives delivery of, or 27.16 provides storage for the agricultural commodity from a producer 27.17 for movement into commercial channels; or a lienholder, secured 27.18 party, or pledgee, who gains title to the agricultural commodity 27.19 from the producers as the result of exercising any legal rights 27.20 by the lienholder, secured party, pledgee, or assignee, 27.21 regardless of when the lien, security interest, or pledge was 27.22 created and regardless of whether or not the first purchaser is 27.23 domiciled in the state. "First purchaser" does not mean the 27.24 commodity credit corporation when the wheator, barley, or 27.25 cultivated wild rice is used as collateral for a federal 27.26 nonrecourse loan unless the commissioner determines otherwise. 27.27 Sec. 9. Minnesota Statutes 2000, section 17.53, 27.28 subdivision 13, is amended to read: 27.29 Subd. 13. [PRODUCER.] (a) Except as provided in paragraph 27.30 (b), "producer" means any person who owns or operates an 27.31 agricultural producing or growing facility for an agricultural 27.32 commodity and shares in the profits and risk of loss from such 27.33 operation, and who grows, raises, feeds or produces the 27.34 agricultural commodity in Minnesota during the current or 27.35 preceding marketing year. 27.36 (b) For wheatand, barley, and cultivated wild 28.1 rice, "producer" means in addition to the meaning in paragraph 28.2 (a) and for the purpose of the payment or the refund of the 28.3 checkoff fee paid pursuant to sections 17.51 to 17.69 only, a 28.4 person who delivers into, stores within, or makes the first sale 28.5 of the agricultural commodity in Minnesota. 28.6 Sec. 10. Minnesota Statutes 2000, section 17.63, is 28.7 amended to read: 28.8 17.63 [REFUND OF FEES.] 28.9 (a) Any producer, except a producer of potatoes in area 28.10 number one, as listed in section 17.54, subdivision 9, a 28.11 producer of wheat or barley, or a producer ofpaddycultivated 28.12 wild rice, may, by the use of forms to be provided by the 28.13 commissioner and upon presentation of such proof as the 28.14 commissioner requires, have the checkoff fee paid pursuant to 28.15 sections 17.51 to 17.69 fully or partially refunded, provided 28.16 the checkoff fee was remitted on a timely basis. The request 28.17 for refund must be received in the office of the commissioner 28.18 within the time specified in the promotion order following the 28.19 payment of the checkoff fee. In no event shall these requests 28.20 for refund be accepted more often than 12 times per year. 28.21 Refund shall be made by the commissioner and council within 30 28.22 days of the request for refund provided that the checkoff fee 28.23 sought to be refunded has been received. Rules governing the 28.24 refund of checkoff fees for all commodities shall be formulated 28.25 by the commissioner, shall be fully outlined in the promotion 28.26 order, and shall be available for the information of all 28.27 producers concerned with the referendum. 28.28 (b) The commissioner must allow partial refund requests 28.29 from corn producers who have checked off and must allow for 28.30 assignment of payment to the Minnesota corn growers association 28.31 if the Minnesota corn research and promotion council requests 28.32 such action by the commissioner. 28.33 (c) The Minnesota corn research and promotion council shall 28.34 not elect to impose membership on any individual producer not 28.35 requesting a partial refund or assignment of payment to the 28.36 association. 29.1 (d) For any wheator, barley, or cultivated wild rice for 29.2 which the checkoff fee must be paid pursuant to sections 17.51 29.3 to 17.69 and for which a checkoff fee or fee that serves a 29.4 comparable purpose in a jurisdiction outside Minnesota had been 29.5 previously paid for the same wheator, barley, or cultivated 29.6 wild rice, the producer of the wheator, barley, or cultivated 29.7 wild rice is exempt from payment of the checkoff fee. The 29.8 commissioner, in consultation with the wheat research and 29.9 promotion counciland, barley research and promotion 29.10 council, and cultivated wild rice research and promotion 29.11 council, shall determine jurisdictions outside of Minnesota 29.12 which collect a checkoff fee or fee that serves a comparable 29.13 purpose. In order to qualify for the exemption, the producer 29.14 must demonstrate to the first purchaser that a checkoff fee or 29.15 fee has been paid to such a jurisdiction. 29.16 Sec. 11. Minnesota Statutes 2000, section 17.76, 29.17 subdivision 2, is amended to read: 29.18 Subd. 2. [APPOINTMENT; TERMS; COMPENSATION.] (a) Two 29.19 members of the board shall be appointed by each of seven 29.20 organizations representing agriculture in Minnesota. The 29.21 organizations are: 29.22 Minnesota Farmers Union; 29.23 National Farmers Organization; 29.24 Farmers Union Milk Marketing Cooperative; 29.25 Minnesota Milk Producers; 29.26 Sustainable Farming Association of Minnesota; 29.27 Minnesota Farm Bureau; and 29.28 Minnesota COACT. 29.29 Two members of the board shall be appointed by each of two 29.30 organizations representing consumers in Minnesota. The 29.31 organizations are: 29.32 Minnesota Food Association; and 29.33 Minnesota Senior Federation. 29.34 To the extent practicable, the members must be selected to 29.35 represent the broad diversity of Minnesota's dairy producers. 29.36 (b) The terms and compensation of members and reimbursement 30.1 for their expenses is governed by section 15.059. 30.2 (c) The board expires on June 30,20012003. 30.3 Sec. 12. Minnesota Statutes 2000, section 18B.01, is 30.4 amended by adding a subdivision to read: 30.5 Subd. 26a. [SCHOOL PEST MANAGEMENT COORDINATOR.] "School 30.6 pest management coordinator" means a person employed by a school 30.7 district, private other than home-schooled, or parochial school 30.8 who is responsible for the planning, training, coordination, 30.9 communication, and implementation of a school's integrated pest 30.10 management program, including the application of pesticides to 30.11 the inside or outdoor property of the school as part of that 30.12 program. 30.13 Sec. 13. [18B.095] [PESTICIDE APPLICATION IN SCHOOLS.] 30.14 Subdivision 1. [AUTHORIZED APPLICATORS.] Application of a 30.15 pesticide to the inside or outdoor property of a school 30.16 district, private other than home-schooled, or parochial school 30.17 must be performed by: 30.18 (1) a structural pest control applicator; 30.19 (2) a commercial or noncommercial pesticide applicator with 30.20 appropriate use category certification; or 30.21 (3) a registered school pest management coordinator or a 30.22 school employee under the direction of a registered school pest 30.23 management coordinator. 30.24 Subd. 2. [EXEMPTION.] Pesticides determined by the 30.25 commissioner to be sanitizers or disinfectants are exempt from 30.26 subdivision 1. 30.27 Subd. 3. [REGISTRY AND INFORMATION.] The commissioner, in 30.28 consultation with the departments of health; administration; and 30.29 children, families, and learning; the University of Minnesota 30.30 Extension Service; the Minnesota School Boards Association; and 30.31 other persons as necessary and appropriate, must: 30.32 (1) establish and maintain a registry of school pest 30.33 management coordinators; and 30.34 (2) provide information on a regular and periodic basis to 30.35 registered school pest management coordinators on integrated 30.36 pest management techniques and programs, including model school 31.1 policies; proper pesticide use, storage, handling, and disposal; 31.2 and other relevant pesticide and pest management information. 31.3 Sec. 14. [18B.345] [PESTICIDE APPLICATION ON GOLF 31.4 COURSES.] 31.5 (a) Application of a pesticide to the property of a golf 31.6 course must be performed by: 31.7 (1) a structural pest control applicator; 31.8 (2) a commercial or noncommercial pesticide applicator with 31.9 appropriate use certification; or 31.10 (3) an aquatic pest control applicator. 31.11 (b) Pesticides determined by the commissioner to be 31.12 sanitizers and disinfectants are exempt from the requirements in 31.13 paragraph (a). 31.14 Sec. 15. Minnesota Statutes 2000, section 31A.21, 31.15 subdivision 2, is amended to read: 31.16 Subd. 2. [FEDERAL ASSISTANCE.] In its cooperative efforts, 31.17 the Minnesota department of agriculture may accept from the 31.18 United States Secretary of Agriculture (1) advisory assistance 31.19 in planning and otherwise developing the state program, (2) 31.20 technical and laboratory assistance and training, including 31.21 necessary curricular and instructional materials and equipment, 31.22 and (3) financial and other aid for the administration of the 31.23 program.The Minnesota department of agriculture may spend a31.24sum for administration of this chapter equal to 50 percent of31.25the estimated total cost of the cooperative program.31.26 Sec. 16. Minnesota Statutes 2000, section 37.03, 31.27 subdivision 1, is amended to read: 31.28 Subdivision 1. [MEMBERS.] Members of the state 31.29 agricultural society must be citizens of this state. The 31.30 membership is as follows: 31.31 (a) Three delegates chosen annually by each agricultural 31.32 society or association in the state which maintains an active 31.33 existence, holds annual fairs, and is entitled to share in the 31.34 state appropriation under the provisions of section 38.02. If 31.35 one of those societies or associations fails to choose 31.36 delegates, then its president, secretary, and treasurer, by 32.1 virtue of their offices, are its delegates. If two fairs 32.2 receiving state aid are operating in one county, each delegate 32.3 from each society or association is entitled to one-half vote at 32.4 regular or special meetings of the state society. 32.5 (b) One delegate appointed by the county board of each 32.6 county in which no county or district agricultural society 32.7 exists. 32.8 (c) Individuals elected by the society as honorary members 32.9 for having performed eminent services in agriculture, 32.10 horticulture, or related arts and sciences or long and faithful 32.11 service in or benefits to the society. Honorary members must be 32.12 elected by two-thirds vote at any annual meeting. The number of 32.13 honorary members may not exceed the society's membership and 32.14 only one honorary member may be elected annually. Each honorary 32.15 member is entitled to one vote. 32.16 (d) Two elected delegates and the president may represent 32.17 each of the following societies and associations: Red River 32.18 Valley Winter Shows, the Minnesota State Horticultural Society, 32.19 the State Dairyman's Association, the Minnesota Dairy Goat 32.20 Association, the Minnesota Honey Producers Association, Inc., 32.21 the Minnesota Livestock Breeders' Association, the Minnesota 32.22 Crop Improvement Association, the Minnesota Pork Producers 32.23 Association, the Minnesota Lamb and Wool Producers Association, 32.24 the Minnesota Horse Breeders' Association, the Minnesota 32.25 Veterinary Medical Association, the Minnesota Cattle Breeders' 32.26 Association, the Central Livestock Association, the Minnesota 32.27 State Poultry Association, the Farm Equipment Association, the 32.28 North Central Florist Association, the Minnesota Garden Flower 32.29 Society, the State Fair Exhibitors' Organization, the Minnesota 32.30 Federation of County Fairs, the State Forestry Association, the 32.31 Minnesota Horse Council, Minnesota Nurserymen's Association, 32.32 Minnesota Apple Growers' Association, State Grange of Minnesota, 32.33 Minnesota Farmers' Union, American Dairy Association of 32.34 Minnesota, and the Minnesota Farm Bureau Federation. 32.35 (e) The following societies and associations are entitled 32.36 to one delegate each: Central Minnesota Vegetable Growers 33.1 Association, the Minnesota Fruit and Vegetable Growers' 33.2 Association, Minnesota Shorthorn Breeders' Association, the 33.3 Minnesota Milking Shorthorn Association, Minnesota Guernsey 33.4 Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 33.5 Holstein Association, Minnesota Hereford Association, Minnesota 33.6 Aberdeen Angus Breeders', Minnesota Red Polled Breeders', 33.7 Minnesota Ayreshire Breeders' Association, Minnesota Brown Swiss 33.8 Association, Minnesota Poland China Breeders' Association, 33.9 Minnesota Duroc Breeders', Minnesota Chester White Association, 33.10 Minnesota Turkey Growers' Association, Minnesota Gladiolus 33.11 Society, Minnesota Hampshire Association, Minnesota Suffolk 33.12 Association, North American Dairy Sheep Association, and the 33.13 Minnesota Berkshire Association. 33.14All of these(f) The societies and associations listed in 33.15 paragraphs (d) and (e) must be active and statewide in their 33.16 scope and operation, hold annual meetings, and be incorporated 33.17 under the laws of the state before they are entitled to a 33.18 delegate. The societies and associations must file with the 33.19 secretary of state, on or before December 20, a report showing 33.20 that the society or association has held a regular annual 33.21 meeting for that year, a summary of its financial transactions 33.22 for the current year, and an affidavit of the president and 33.23 secretary that it has a paid-up membership of at least 25. On 33.24 or before December 31, the secretary of state shall certify to 33.25 the secretary of the state agricultural society the names of the 33.26 societies or associations that have complied with these 33.27 provisions. 33.28 (g) If a society or association ceases to exist or 33.29 otherwise fails to comply with the requirements of paragraph 33.30 (f), its membership in the state agricultural society and its 33.31 right to delegates is terminated and it may be replaced by 33.32 another society or association representing the same or similar 33.33 interests and chosen by a majority vote of the members of the 33.34 society at its next annual meeting. 33.35(f)(h) The members of the board of managers of the state 33.36 agricultural society are members of the society and entitled to 34.1 one vote each. 34.2 Sec. 17. [37.27] [FAIR FOUNDATION.] 34.3 The state agricultural society may establish a nonprofit 34.4 corporation to be operated exclusively for charitable purposes 34.5 as contemplated by sections 170(c)(2) and 501(c)(3) of the 34.6 United States Internal Revenue Code. Subject to those sections, 34.7 the corporation must be organized and operated exclusively for 34.8 the benefit and to carry out the purposes of the state 34.9 agricultural society for so long as the state agricultural 34.10 society is and remains an organization as described in section 34.11 509(a)(1) or 509(a)(2) of the Internal Revenue Code. The 34.12 corporation shall solicit, receive, hold, invest, and contribute 34.13 funds and property for the use and benefit of the state 34.14 agricultural society in a manner consistent with the public good 34.15 and primarily for capital expenditures and other needs not 34.16 funded by other means. The corporation may be known as the 34.17 Minnesota state fair foundation. 34.18 Sec. 18. Minnesota Statutes 2000, section 41B.025, 34.19 subdivision 1, is amended to read: 34.20 Subdivision 1. [ESTABLISHMENT.] There is created a public 34.21 body corporate and politic to be known as the "Minnesota rural 34.22 finance authority," which shall perform the governmental 34.23 functions and exercise the sovereign powers delegated to it in 34.24 sections 41B.01 to 41B.23 and chapter 41C in furtherance of the 34.25 public policies and purposes declared in section 41B.01. The 34.26 board of the authority consists of the commissioners of 34.27 agriculture, commerce, trade and economic development, and 34.28 finance, the state auditor, and six public members appointed by 34.29 the governor with the advice and consent of the senate. The 34.30 state auditor may designate one staff member to serve in the 34.31 auditor's place. No public member may reside within the 34.32 metropolitan area, as defined in section 473.121, subdivision 34.33 2. Each member shall hold office until a successor has been 34.34 appointed and has qualified. A certificate of appointment or 34.35 reappointment of any member is conclusive evidence of the proper 34.36 appointment of the member. 35.1 Sec. 19. Minnesota Statutes 2000, section 41B.03, 35.2 subdivision 2, is amended to read: 35.3 Subd. 2. [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 35.4 to the eligibility requirements of subdivision 1, a prospective 35.5 borrower for a restructured loan must: 35.6 (1) have received at least 50 percent of average annual 35.7 gross income from farming for the past three years or, for 35.8 homesteaded property, received at least 40 percent of average 35.9 gross income from farming in the past three years, and farming 35.10 must be the principal occupation of the borrower; 35.11 (2)have a debt-to-asset ratio equal to or greater than 5035.12percent and in determining this ratio, the assets must be valued35.13at their current market value;35.14(3)have projected annual expenses, including operating 35.15 expenses, family living, and interest expenses after the 35.16 restructuring, that do not exceed 95 percent of the borrower's 35.17 projected annual income considering prior production history and 35.18 projected prices for farm production, except that the authority 35.19 may reduce the 95 percent requirement if it finds that other 35.20 significant factors in the loan application support the making 35.21 of the loan; 35.22(4)(3) demonstrate substantial difficulty in meeting 35.23 projected annual expenses without restructuring the loan; and 35.24(5)(4) must have a total net worth, including assets and 35.25 liabilities of the borrower's spouse and dependents, of less 35.26 than $400,000 in 1999 and an amount in subsequent years which is 35.27 adjusted for inflation by multiplying $400,000 by the cumulative 35.28 inflation rate as determined by the United States All-Items 35.29 Consumer Price Index. 35.30 Sec. 20. Minnesota Statutes 2000, section 41B.043, 35.31 subdivision 1b, is amended to read: 35.32 Subd. 1b. [LOAN PARTICIPATION.] The authority may 35.33 participate in an agricultural improvement loan with an eligible 35.34 lender to a farmer who meets the requirements of section 41B.03, 35.35 subdivision 1, clauses (1) and (2), and who are actively engaged 35.36 in farming. Participation is limited to 45 percent of the 36.1 principal amount of the loan or$100,000$125,000, whichever is 36.2 less. The interest rates and repayment terms of the authority's 36.3 participation interest may be different than the interest rates 36.4 and repayment terms of the lender's retained portion of the loan. 36.5 Sec. 21. Minnesota Statutes 2000, section 41B.043, 36.6 subdivision 2, is amended to read: 36.7 Subd. 2. [SPECIFICATIONS.] No direct loan may exceed 36.8 $35,000 or $125,000 for a loan participationor be made to36.9refinance an existing debt. Each direct loan and participation 36.10 must be secured by a mortgage on real property and such other 36.11 security as the authority may require. 36.12 Sec. 22. Minnesota Statutes 2000, section 41B.046, 36.13 subdivision 2, is amended to read: 36.14 Subd. 2. [ESTABLISHMENT.] The authority shall establish 36.15 and implement a value-added agricultural product loan program to 36.16 help farmers finance the purchase of stock in a cooperative that 36.17 is proposing to build or purchase and operate an agricultural 36.18 product processing facility or already owns and operates an 36.19 agricultural product processing facility. 36.20 Sec. 23. Minnesota Statutes 2000, section 41D.01, 36.21 subdivision 1, is amended to read: 36.22 Subdivision 1. [ESTABLISHMENT; MEMBERSHIP.] (a) The 36.23 Minnesota agriculture education leadership council is 36.24 established. The council is composed of 16 members as follows: 36.25 (1) the chair of the University of Minnesota agricultural 36.26 education program; 36.27 (2) a representative of the commissioner of children, 36.28 families, and learning; 36.29 (3) a representative of the Minnesota state colleges and 36.30 universities recommended by the chancellor; 36.31 (4) the president and the president-elect of the Minnesota 36.32vocational agriculture instructors associationAssociation of 36.33 Agriculture Educators; 36.34 (5) a representative of the Future Farmers of America 36.35 Foundation; 36.36 (6) a representative of the commissioner of agriculture; 37.1 (7) the dean of the college of agriculture, food, and 37.2 environmental sciences at the University of Minnesota; 37.3 (8) two members representing agriculture education and 37.4 agriculture business appointed by the governor; 37.5 (9) the chair of the senate committee on agricultureand37.6rural development;, general legislation and veterans affairs; 37.7 (10) the chair of the house committee on agriculture; 37.8 (11) the ranking minority member of the senate committee on 37.9 agricultureand rural development, general legislation and 37.10 veterans affairs, and a member of the senatecommittee on37.11children, families and learningeducation committee designated 37.12 by the subcommittee on committees of the committee on rules and 37.13 administration; and 37.14 (12) the ranking minority member of the house agriculture 37.15 committee, and a member of the house education committee 37.16 designated by the speaker. 37.17 (b) An ex officio member of the council under paragraph 37.18 (a), clause (1), (4), (7), (9), (10), (11), or (12), may 37.19 designate a permanent or temporary replacement member 37.20 representing the same constituency. 37.21 Sec. 24. Minnesota Statutes 2000, section 41D.01, 37.22 subdivision 3, is amended to read: 37.23 Subd. 3. [COUNCIL OFFICERS; TERMS AND COMPENSATION OF 37.24 APPOINTEES; STAFF.] (a) The chair of the senate agricultureand37.25rural development, general legislation and veterans affairs 37.26 committee and the chair of the house agriculture committee, or 37.27 their designees, are the cochairs of the council. 37.28 (b) The council's membership terms, compensation, filling 37.29 of vacancies, and removal of members are as provided in section 37.30 15.0575. 37.31 (c) The council may employ an executive director and any 37.32 other staff to carry out its functions. 37.33 Sec. 25. Minnesota Statutes 2000, section 41D.01, 37.34 subdivision 4, is amended to read: 37.35 Subd. 4. [EXPIRATION.] This section expires on June 37.36 30,20022003. 38.1 Sec. 26. Minnesota Statutes 2000, section 97B.001, 38.2 subdivision 1, is amended to read: 38.3 Subdivision 1. [AGRICULTURAL LAND DEFINITION.] For 38.4 purposes of this section, "agricultural land" means land: 38.5 (1) that is plowed or tilled; 38.6 (2) that has standing crops or crop residues;or38.7 (3) within a maintained fence for enclosing domestic 38.8 livestock; 38.9 (4) that is planted and maintained as hayland or grassland 38.10 outside of the city limits of a home rule charter or statutory 38.11 city; or 38.12 (5) that is planted in a row pattern to short rotation 38.13 woody crops, as defined in section 41B.048, subdivision 4. 38.14 Sec. 27. Minnesota Statutes 2000, section 116O.09, 38.15 subdivision 1a, is amended to read: 38.16 Subd. 1a. [BOARD OF DIRECTORS.] The board of directors of 38.17 the agricultural utilization research institute is comprised of: 38.18 (1) the chairs of the senateagriculture and rural38.19development committeeand the house of representatives 38.20 committees with jurisdiction over agriculturecommitteepolicy; 38.21 (2) two representatives of statewide farm organizations; 38.22 (3) two representatives of agribusiness, one of whom is a 38.23 member of the Minnesota Technology, Inc. board representing 38.24 agribusiness; and 38.25 (4) three representatives of the commodity promotion 38.26 councils. 38.27 A member of the board of directors under clauses (1) to (4) 38.28 may designate a permanent or temporary replacement member 38.29 representing the same constituency. 38.30 Sec. 28. [239.77] [BIODIESEL CONTENT REQUIREMENT.] 38.31 Subdivision 1. [BIODIESEL FUEL OIL DESCRIBED.] For the 38.32 purpose of this section, "biodiesel fuel oil" means a 38.33 biodegradable, combustible liquid fuel derived from vegetable 38.34 oils that meets ASTM specification PS 121-99 and is suitable for 38.35 blending with diesel fuel oil for use in internal combustion 38.36 diesel engines. 39.1 Subd. 2. [CONTENT REQUIREMENT.] On and after July 1, 2003, 39.2 all diesel fuel oil sold or offered for sale in Minnesota for 39.3 use in internal combustion engines must contain at least 2.0 39.4 percent biodiesel fuel oil by volume. 39.5 Subd. 3. [BIODIESEL SUPPLY AND DISTRIBUTION REPORT.] By 39.6 February 15 in 2002 and 2003, the commissioner of agriculture 39.7 shall report to the senate and house committees with 39.8 jurisdiction over agriculture policy on the production and 39.9 distribution of biodiesel fuel oil in Minnesota and the adequacy 39.10 of biodiesel fuel oil supplies and the distribution system to 39.11 achieve the requirement in subdivision 2. The reports may 39.12 include any recommendations of the commissioner for changes to 39.13 the biodiesel fuel oil requirement in subdivision 2. 39.14 Sec. 29. Minnesota Statutes 2000, section 296A.01, 39.15 subdivision 19, is amended to read: 39.16 Subd. 19. [E85.] "E85" means a petroleum product that is a 39.17 blend of agriculturally derived denatured ethanol and 39.18 gasoline or natural gasoline that typically contains 85 percent 39.19 ethanol by volume, but at a minimum must contain 60 percent 39.20 ethanol by volume. For the purposes of this chapter, the energy 39.21 content of E85 will be considered to be 82,000 BTUs per gallon. 39.22 E85 produced for use as a motor fuel in alternative fuel 39.23 vehicles as defined insection 296A.01,subdivision 5, must 39.24 comply with ASTM specification D 5798-96. 39.25 Sec. 30. Laws 1986, chapter 398, article 1, section 18, as 39.26 amended by Laws 1987, chapter 292, section 37; Laws 1989, 39.27 chapter 350, article 16, section 8; Laws 1990, chapter 525, 39.28 section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 39.29 Special Session chapter 2, article 6, section 2; Laws 1995, 39.30 chapter 212, article 2, section 11; Laws 1997, chapter 183, 39.31 article 3, section 29; Laws 1998, chapter 395, section 7; Laws 39.32 1998, chapter 402, section 6; and Laws 1999, chapter 214, 39.33 article 2, section 19, is amended to read: 39.34 Sec. 18. [REPEALER.] 39.35 Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 39.36 subsections (6) and (7), and sections 583.284, 583.285, 583.286, 40.1 and 583.305, are repealed on July 1,20012003. 40.2 Sec. 31. [TEMPORARY WAIVER OF RULE.] 40.3 The application of Minnesota Rules, part 1720.0620, is 40.4 temporarily waived from January 1, 2001, to June 1, 2002, for 40.5 products used exclusively for poultry. 40.6 Sec. 32. [MINNESOTA DAIRY PRODUCERS BOARD.] 40.7 The repeal of Minnesota Statutes 2000, section 17.76, in 40.8 S.F. No. 1263, if enacted, must not take effect. 40.9 Sec. 33. [REPEALER.] 40.10 Minnesota Statutes 2000, sections 17.987; 24.001; 24.002; 40.11 24.12; 24.131; 24.135; 24.141; 24.145; 24.151; 24.155; 24.161; 40.12 24.171; 24.175; 24.18; 24.181; 33.09; and 33.111, are repealed. 40.13 Sec. 34. [EFFECTIVE DATE.] 40.14 Sections 18 to 25, 30, and 31 are effective the day 40.15 following final enactment. Section 13 is effective August 1, 40.16 2002. Section 14 is effective January 1, 2002.