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SF 3021

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 11:59am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to agriculture; changing certain pesticide control provisions; authorizing
waiver of a fee; providing for control of bovine tuberculosis; eliminating the
native grasses and wildflower seed production and incentive program; authorizing
ownership of agricultural land by certain nonprofit corporations; amending
Minnesota Statutes 2008, sections 18B.31, subdivision 5; 18B.36, subdivision
1; 18B.37, subdivision 4; 28A.082, subdivision 1; 35.244, subdivisions 1, 2;
500.24, subdivision 2; Minnesota Statutes 2009 Supplement, section 18B.316,
subdivision 10; repealing Minnesota Statutes 2008, section 17.231.

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

Section 1.

Minnesota Statutes 2008, section 18B.31, subdivision 5, is amended to read:


Subd. 5.

Application fee.

(a) An application for a pesticide dealer license must be
accompanied by a nonrefundable application fee of $150.

(b) If an application for renewal of a pesticide dealer license is not filed before
deleted text begin January 1 of the year for whichdeleted text end the license deleted text beginis to be issueddeleted text endnew text begin expiresnew text end, an additional fee of deleted text begin$20deleted text endnew text begin
50 percent of the application fee
new text end must be paid by the applicant before new text beginthe commissioner
may issue
new text endthe license deleted text beginis issueddeleted text end.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 18B.316, subdivision 10, is
amended to read:


Subd. 10.

Application fee.

(a) An application for an agricultural pesticide dealer
license, or a renewal of an agricultural pesticide dealer license, must be accompanied
by a nonrefundable fee of $150.

(b) If an application for renewal of an agricultural pesticide dealer license is not filed
before deleted text beginJanuary of the year for whichdeleted text end the license deleted text beginis to be issueddeleted text endnew text begin expiresnew text end, an additional fee of
50 percent of the application fee must be paid by the applicant before the commissioner
may issue the license.

Sec. 3.

Minnesota Statutes 2008, section 18B.36, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) Except for a licensed commercial or
noncommercial applicator, only a certified private applicator may use a restricted use
pesticide to produce an agricultural commodity:

(1) as a traditional exchange of services without financial compensation;

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer employees and the owner or
operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A deleted text beginprivate applicatordeleted text endnew text begin personnew text end may not purchase a restricted use pesticide without
presenting a new text beginlicense card, new text endcertified private applicator cardnew text begin,new text end or the card number.

Sec. 4.

Minnesota Statutes 2008, section 18B.37, subdivision 4, is amended to read:


Subd. 4.

Storage, handling, new text beginincident response, new text endand disposal plan.

A deleted text begincommercialdeleted text endnew text begin
pesticide dealer, agricultural pesticide dealer
new text end, new text beginor a commercial, new text endnoncommercial, or
structural pest control applicator or the business that the applicator is employed by must
develop and maintain a plan that describes its pesticide storage, handling, new text beginincident
response,
new text endand disposal practices. The plan must be kept at a principal business site
or location within this state and must be submitted to the commissioner upon request
on forms provided by the commissioner. The plan must be available for inspection by
the commissioner.

Sec. 5.

Minnesota Statutes 2008, section 28A.082, subdivision 1, is amended to read:


Subdivision 1.

Fees; application.

The fees for review of food handler facility floor
plans under the Minnesota Food Code are based upon the square footage of the structure
being newly constructed, remodeled, or converted. The fees for the review shall be:

square footage
review fee
0 - 4,999
.
$
200.00
5,000 - 24,999
.
$
275.00
25,000 plus
.
$
425.00

The applicant must submit the required fee, review application, plans, equipment
specifications, materials lists, and other required information on forms supplied by the
department at least 30 days prior to commencement of construction, remodeling, or
conversion.new text begin The commissioner may waive this fee after determining that the facility's
principal mode of business is not the sale of food and that the facility sells only
prepackaged foods.
new text end

Sec. 6.

Minnesota Statutes 2008, section 35.244, subdivision 1, is amended to read:


Subdivision 1.

Designation of zones.

The board deleted text beginhas the authority todeleted text endnew text begin may establish
zones for the
new text end controlnew text begin and eradication ofnew text end tuberculosis andnew text begin restrictnew text end the movement of cattle,
bison, goats, and farmed cervidae within and between tuberculosis zones in the state.
deleted text begin Zones within the state may be designated as accreditation preparatory, modified accredited,
modified accredited advanced, or accredited free as those terms are defined in Code of
Federal Regulations, title 9, part 77. The board may designate bovine tuberculosis control
zones that contain not more than 325 herds.
deleted text end

Sec. 7.

Minnesota Statutes 2008, section 35.244, subdivision 2, is amended to read:


Subd. 2.

new text beginRequirements within a tuberculosis new text endcontrol deleted text beginwithin modified accrediteddeleted text end
zone.

In a deleted text beginmodified accrediteddeleted text endnew text begin tuberculosis controlnew text end zone, the board deleted text beginhas the authority todeleted text endnew text begin
may
new text end:

(1) require owners of cattle, bison, goats, or farmed cervidae to report personal
contact information and location of livestock to the board;

(2) require a permit or movement certificates for all cattle, bison, goats, and farmed
cervidae moving between premises within the zone or leaving or entering the zone;

(3) require official identification of all cattle, bison, goats, and farmed cervidae
within the zone or leaving or entering the zone;

(4) require a whole-herd tuberculosis test on each herd of cattle, bison, goats, or
farmed cervidae when any of the animals in the herd is kept on a premises within the zone;

(5) require a negative tuberculosis test within 60 days prior to movement for any
individual cattle, bison, goat, or farmed cervidae moved from a premises in the zone to
another location in Minnesota, with the exception of cattle moving under permit directly
to a slaughter facility under state or federal inspection;

(6) require a whole-herd tuberculosis test within 12 months prior to moving
cattle, bison, goats, or farmed cervidae from premises in the zone to another location
in Minnesota;

(7) require annual herd inventories on all cattle, bison, goat, or farmed cervidae
herds; and

(8) require that a risk assessment be performed to evaluate the interaction of
free-ranging deer and elk with cattle, bison, goat, and farmed cervidae herds and require
the owner to implement the recommendations of the risk assessment.

Sec. 8.

Minnesota Statutes 2008, section 500.24, subdivision 2, is amended to read:


Subd. 2.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Farming" means the production of (1) agricultural products; (2) livestock or
livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It
does not include the processing, refining, or packaging of said products, nor the provision
of spraying or harvesting services by a processor or distributor of farm products. It does
not include the production of timber or forest products, the production of poultry or
poultry products, or the feeding and caring for livestock that are delivered to a corporation
for slaughter or processing for up to 20 days before slaughter or processing.

(b) "Family farm" means an unincorporated farming unit owned by one or more
persons residing on the farm or actively engaging in farming.

(c) "Family farm corporation" means a corporation founded for the purpose of
farming and the ownership of agricultural land in which the majority of the stock is held
by and the majority of the stockholders are persons, the spouses of persons, or current
beneficiaries of one or more family farm trusts in which the trustee holds stock in a family
farm corporation, related to each other within the third degree of kindred according to
the rules of the civil law, and at least one of the related persons is residing on or actively
operating the farm, and none of whose stockholders are corporations; provided that a
family farm corporation shall not cease to qualify as such hereunder by reason of any:

(1) transfer of shares of stock to a person or the spouse of a person related within
the third degree of kindred according to the rules of civil law to the person making the
transfer, or to a family farm trust of which the shareholder, spouse, or related person is
a current beneficiary; or

(2) distribution from a family farm trust of shares of stock to a beneficiary related
within the third degree of kindred according to the rules of civil law to a majority of the
current beneficiaries of the trust, or to a family farm trust of which the shareholder, spouse,
or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust,
of the shares in the family farm corporation, and stock owned by a family farm trust are
considered to be owned in equal shares by the current beneficiaries.

(d) "Family farm trust" means:

(1) a trust in which:

(i) a majority of the current beneficiaries are persons or spouses of persons who are
related to each other within the third degree of kindred according to the rules of civil law;

(ii) all of the current beneficiaries are natural persons or nonprofit corporations
or trusts described in the Internal Revenue Code, section 170(c), as amended, and the
regulations under that section; and

(iii) one of the family member current beneficiaries is residing on or actively
operating the farm; or the trust leases the agricultural land to a family farm unit, a
family farm corporation, an authorized farm corporation, an authorized livestock farm
corporation, a family farm limited liability company, a family farm trust, an authorized
farm limited liability company, a family farm partnership, or an authorized farm
partnership; or

(2) a charitable remainder trust as defined in the Internal Revenue Code, section 664,
as amended, and the regulations under that section, and a charitable lead trust as set forth
in the Internal Revenue Code, section 170(f), and the regulations under that section.

(e) "Authorized farm corporation" means a corporation meeting the following
standards:

(1) it has no more than five shareholders, provided that for the purposes of this
section, a husband and wife are considered one shareholder;

(2) all its shareholders, other than any estate, are natural persons or a family farm
trust;

(3) it does not have more than one class of shares;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) shareholders holding 51 percent or more of the interest in the corporation reside
on the farm or are actively engaging in farming;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its shareholders are shareholders in other authorized farm corporations
that directly or indirectly in combination with the corporation own more than 1,500 acres
of agricultural land.

(f) "Authorized livestock farm corporation" means a corporation formed for the
production of livestock and meeting the following standards:

(1) it is engaged in the production of livestock other than dairy cattle;

(2) all its shareholders, other than any estate, are natural persons, family farm trusts,
or family farm corporations;

(3) it does not have more than one class of shares;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) shareholders holding 75 percent or more of the control, financial, and capital
investment in the corporation are farmers, and at least 51 percent of the required
percentage of farmers are actively engaged in livestock production;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its shareholders are shareholders in other authorized farm corporations
that directly or indirectly in combination with the corporation own more than 1,500 acres
of agricultural land.

(g) "Agricultural land" means real estate used for farming or capable of being used
for farming in this state.

(h) "Pension or investment fund" means a pension or employee welfare benefit fund,
however organized, a mutual fund, a life insurance company separate account, a common
trust of a bank or other trustee established for the investment and reinvestment of money
contributed to it, a real estate investment trust, or an investment company as defined in
United States Code, title 15, section 80a-3.

(i) "Farm homestead" means a house including adjoining buildings that has been
used as part of a farming operation or is part of the agricultural land used for a farming
operation.

(j) "Family farm partnership" means a limited partnership formed for the purpose of
farming and the ownership of agricultural land in which the majority of the interests in
the partnership is held by and the majority of the partners are natural persons or current
beneficiaries of one or more family farm trusts in which the trustee holds an interest in a
family farm partnership related to each other within the third degree of kindred according
to the rules of the civil law, and at least one of the related persons is residing on the farm,
actively operating the farm, or the agricultural land was owned by one or more of the
related persons for a period of five years before its transfer to the limited partnership, and
none of the partners is a corporation. A family farm partnership does not cease to qualify
as a family farm partnership because of a:

(1) transfer of a partnership interest to a person or spouse of a person related within
the third degree of kindred according to the rules of civil law to the person making the
transfer or to a family farm trust of which the partner, spouse, or related person is a current
beneficiary; or

(2) distribution from a family farm trust of a partnership interest to a beneficiary
related within the third degree of kindred according to the rules of civil law to a majority
of the current beneficiaries of the trust, or to a family farm trust of which the partner,
spouse, or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust,
of a partnership interest in the family farm partnership, and interest owned by a family
farm trust is considered to be owned in equal shares by the current beneficiaries.

(k) "Authorized farm partnership" means a limited partnership meeting the following
standards:

(1) it has been issued a certificate from the secretary of state or is registered with the
county recorder and farming and ownership of agricultural land is stated as a purpose or
character of the business;

(2) it has no more than five partners;

(3) all its partners, other than any estate, are natural persons or family farm trusts;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) its general partners hold at least 51 percent of the interest in the land assets of the
partnership and reside on the farm or are actively engaging in farming not more than 1,500
acres as a general partner in an authorized limited partnership;

(6) its limited partners do not participate in the business of the limited partnership
including operating, managing, or directing management of farming operations;

(7) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(8) none of its limited partners are limited partners in other authorized farm
partnerships that directly or indirectly in combination with the partnership own more than
1,500 acres of agricultural land.

(l) "Family farm limited liability company" means a limited liability company
founded for the purpose of farming and the ownership of agricultural land in which the
majority of the membership interests is held by and the majority of the members are
natural persons, or current beneficiaries of one or more family farm trusts in which the
trustee holds an interest in a family farm limited liability company related to each other
within the third degree of kindred according to the rules of the civil law, and at least one of
the related persons is residing on the farm, actively operating the farm, or the agricultural
land was owned by one or more of the related persons for a period of five years before
its transfer to the limited liability company, and none of the members is a corporation or
a limited liability company. A family farm limited liability company does not cease to
qualify as a family farm limited liability company because of:

(1) a transfer of a membership interest to a person or spouse of a person related
within the third degree of kindred according to the rules of civil law to the person making
the transfer or to a family farm trust of which the member, spouse, or related person is
a current beneficiary; or

(2) distribution from a family farm trust of a membership interest to a beneficiary
related within the third degree of kindred according to the rules of civil law to a majority
of the current beneficiaries of the trust, or to a family farm trust of which the member,
spouse, or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust, of
a membership interest in the family farm limited liability company, and interest owned by
a family farm trust is considered to be owned in equal shares by the current beneficiaries.
Except for a state or federally chartered financial institution acquiring an encumbrance
for the purpose of security or an interest under paragraph (x), a member of a family farm
limited liability company may not transfer a membership interest, including a financial
interest, to a person who is not otherwise eligible to be a member under this paragraph.

(m) "Authorized farm limited liability company" means a limited liability company
meeting the following standards:

(1) it has no more than five members;

(2) all its members, other than any estate, are natural persons or family farm trusts;

(3) it does not have more than one class of membership interests;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) members holding 51 percent or more of both the governance rights and financial
rights in the limited liability company reside on the farm or are actively engaged in
farming;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its members are members in other authorized farm limited liability
companies that directly or indirectly in combination with the authorized farm limited
liability company own more than 1,500 acres of agricultural land.

Except for a state or federally chartered financial institution acquiring an
encumbrance for the purpose of security or an interest under paragraph (x), a member of
an authorized farm limited liability company may not transfer a membership interest,
including a financial interest, to a person who is not otherwise eligible to be a member
under this paragraph.

(n) "Farmer" means a natural person who regularly participates in physical labor or
operations management in the person's farming operation and files "Schedule F" as part of
the person's annual Form 1040 filing with the United States Internal Revenue Service.

(o) "Actively engaged in livestock production" means performing day-to-day
physical labor or day-to-day operations management that significantly contributes to
livestock production and the functioning of a livestock operation.

(p) "Research or experimental farm" means a corporation, limited partnership,
pension, investment fund, or limited liability company that owns or operates agricultural
land for research or experimental purposes, provided that any commercial sales from the
operation are incidental to the research or experimental objectives of the corporation. A
corporation, limited partnership, limited liability company, or pension or investment fund
seeking initial approval by the commissioner to operate agricultural land for research or
experimental purposes must first submit to the commissioner a prospectus or proposal of
the intended method of operation containing information required by the commissioner
including a copy of any operational contract with individual participants.

(q) "Breeding stock farm" means a corporation, limited partnership, or limited
liability company, that owns or operates agricultural land for the purpose of raising
breeding stock, including embryos, for resale to farmers or for the purpose of growing
seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock
other than dairy cattle under this paragraph that does not qualify as an authorized farm
corporation must:

(1) sell all castrated animals to be fed out or finished to farming operations that are
neither directly nor indirectly owned by the business entity operating the breeding stock
operation; and

(2) report its total production and sales annually to the commissioner.

(r) "Aquatic farm" means a corporation, limited partnership, or limited liability
company, that owns or leases agricultural land as a necessary part of an aquatic farm
as defined in section 17.47, subdivision 3.

(s) "Religious farm" means a corporation formed primarily for religious purposes
whose sole income is derived from agriculture.

(t) "Utility corporation" means a corporation regulated under Minnesota Statutes
1974, chapter 216B, that owns agricultural land for purposes described in that chapter, or
an electric generation or transmission cooperative that owns agricultural land for use in
its business if the land is not used for farming except under lease to a family farm unit,
a family farm corporation, a family farm trust, a family farm partnership, or a family
farm limited liability company.

(u) "Development organization" means a corporation, limited partnership, limited
liability company, or pension or investment fund that has an interest in agricultural land
for which the corporation, limited partnership, limited liability company, or pension or
investment fund has documented plans to use and subsequently uses the land within
six years from the date of purchase for a specific nonfarming purpose, or if the land is
zoned nonagricultural, or if the land is located within an incorporated area. A corporation,
limited partnership, limited liability company, or pension or investment fund may hold
agricultural land in the amount necessary for its nonfarm business operation; provided,
however, that pending the development of agricultural land for nonfarm purposes, the land
may not be used for farming except under lease to a family farm unit, a family farm
corporation, a family farm trust, an authorized farm corporation, an authorized livestock
farm corporation, a family farm partnership, an authorized farm partnership, a family farm
limited liability company, or an authorized farm limited liability company, or except when
controlled through ownership, options, leaseholds, or other agreements by a corporation
that has entered into an agreement with the United States under the New Community Act
of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code,
title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation.

(v) "Exempt land" means agricultural land owned or leased by a corporation as of
May 20, 1973, agricultural land owned or leased by a pension or investment fund as of
May 12, 1981, agricultural land owned or leased by a limited partnership as of May 1,
1988, or agricultural land owned or leased by a trust as of the effective date of Laws 2000,
chapter 477, including the normal expansion of that ownership at a rate not to exceed 20
percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981,
for a pension or investment fund; May 1, 1988, for a limited partnership, or the effective
date of Laws 2000, chapter 477, for a trust, measured in acres, in any five-year period,
and including additional ownership reasonably necessary to meet the requirements of
pollution control rules. A corporation, limited partnership, or pension or investment fund
that is eligible to own or lease agricultural land under this section prior to May 1997, or a
corporation that is eligible to own or lease agricultural land as a benevolent trust under this
section prior to the effective date of Laws 2000, chapter 477, may continue to own or lease
agricultural land subject to the same conditions and limitations as previously allowed.

(w) "Gifted land" means agricultural land acquired as a gift, either by grant or devise,
by an educational, religious, or charitable nonprofit corporation, limited partnership,
limited liability company, or pension or investment fund if all land so acquired is disposed
of within ten years after acquiring the title.

(x) "Repossessed land" means agricultural land acquired by a corporation, limited
partnership, limited liability company, or pension or investment fund by process of law
in the collection of debts, or by any procedure for the enforcement of a lien or claim on
the land, whether created by mortgage or otherwise if all land so acquired is disposed of
within five years after acquiring the title. The five-year limitation is a covenant running
with the title to the land against any grantee, assignee, or successor of the pension or
investment fund, corporation, limited partnership, or limited liability company. The land
so acquired must not be used for farming during the five-year period, except under a
lease to a family farm unit, a family farm corporation, a family farm trust, an authorized
farm corporation, an authorized livestock farm corporation, a family farm partnership, an
authorized farm partnership, a family farm limited liability company, or an authorized
farm limited liability company. Notwithstanding the five-year divestiture requirement
under this paragraph, a financial institution may continue to own the agricultural land if the
agricultural land is leased to the immediately preceding former owner, but must dispose
of the agricultural land within ten years of acquiring the title. Livestock acquired by a
pension or investment fund, corporation, limited partnership, or limited liability company
in the collection of debts, or by a procedure for the enforcement of lien or claim on the
livestock whether created by security agreement or otherwise after August 1, 1994, must
be sold or disposed of within one full production cycle for the type of livestock acquired
or 18 months after the livestock is acquired, whichever is earlier.

(y) "Commissioner" means the commissioner of agriculture.

(z) "Nonprofit corporation" means a nonprofit corporation organized under state
nonprofit corporation or trust law or qualified for tax-exempt status under federal tax
law that uses the land for a specific nonfarming purpose deleted text beginordeleted text endnew text begin,new text end leases the agricultural land
to a family farm unit, a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm limited liability company, a family
farm trust, an authorized farm limited liability company, a family farm partnership, or an
authorized farm partnershipnew text begin, or actively farms less than 40 acres and uses all profits from
the agricultural land for educational purposes
new text end.

(aa) "Current beneficiary" means a person who at any time during a year is entitled
to, or at the discretion of any person may, receive a distribution from the income or
principal of the trust. It does not include a distributee trust, other than a trust described in
section 170(c) of the Internal Revenue Code, as amended, but does include the current
beneficiaries of the distributee trust. It does not include a person in whose favor a power
of appointment could be exercised until the holder of the power of appointment actually
exercises the power of appointment in that person's favor. It does not include a person who
is entitled to receive a distribution only after a specified time or upon the occurrence of a
specified event until the time or occurrence of the event. For the purposes of this section, a
distributee trust is a current beneficiary of a family farm trust.

(bb) "De minimis" means that any corporation, pension or investment fund, limited
liability company, or limited partnership that directly or indirectly owns, acquires, or
otherwise obtains any interest in 40 acres or less of agricultural land and annually receives
less than $150 per acre in gross revenue from rental or agricultural production.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 17.231, new text end new text begin is repealed.
new text end