Office of the Revisor of Statutes
Minnesota Session Laws - 1987, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 396-H.F.No. 303
An act relating to agriculture; regulating the
functions of the rural finance authority; fixing
conditions for certain land sales and foreclosures;
providing programs for the agricultural economy;
regulating agriculture related commerce; appropriating
money; amending Minnesota Statutes 1986, sections
17.03, by adding subdivisions; 17.101, subdivision 1;
17.102; 17.103; 17B.15, subdivision 1; 18.023,
subdivision 1; 19.58, subdivision 1; 28A.08; 31.101,
subdivisions 3, 4, 5, 6, 7, and 8; 32.394,
subdivisions 8, 8b, and 9; 40.071; 40A.03, subdivision
2; 40A.152, subdivisions 1 and 2; 41.56, subdivision
4; 41B.01, subdivision 2; 41B.02, subdivisions 4, 5,
6, 9, 11, 13, 14, and 15; 41B.03; 41B.035, subdivision
5, and by adding a subdivision; 41B.04, subdivisions
7, 8, 9, 10, 11, and 12; 41B.05; 41B.08, subdivision
4; 41B.12; 41B.19, subdivisions 5 and 6; 223.17,
subdivision 1; 308.58, subdivision 2; 308.62; 308.77;
308.83; 308.85; 473H.10, subdivision 3; 473H.17,
subdivisions 1, 2, and by adding a subdivision;
500.24, subdivisions 2, 6, and by adding a
subdivision; 582.041, subdivisions 1, 2, 3, and 5;
Laws 1985, chapter 19, section 2, subdivision 2, as
amended, and section 6, subdivision 6, as amended;
proposing coding for new law in Minnesota Statutes,
chapters 17; 41; 41B; 116J; 236A; 550; and 582;
repealing Minnesota Statutes 1986, sections 17.03,
subdivision 5; 18.023, subdivision 1a; 41B.02,
subdivision 17; 41B.035, subdivision 4; 41B.04,
subdivisions 6, 13, 14, 15, and 16.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
RURAL FINANCE AUTHORITY
Section 1. Minnesota Statutes 1986, section 41.56,
subdivision 4, is amended to read:
Subd. 4. [SALE OF DEFAULTED PROPERTY.] In the event that
title to any property is acquired by the state, upon conveyance
of title to the state and expiration of the period of
redemption, the commissioner shall undertake to sell the
property by publishing a notice of the impending sale at least
once each week for four successive weeks in a legal newspaper
and also in a newspaper of general distribution in the county in
which the property to be sold is situated. The notice must
describe the lots or tracts to be offered and the terms of
sale. Except as further provided, the terms and method of sale
shall be determined by the commissioner.
The commissioner shall first attempt to sell the property
to a person who is eligible for a family farm security loan. If
the commissioner is unable to effect a sale to an eligible
person, the commissioner shall attempt to sell the property for
cash as provided in subdivision 4a. If the commissioner is
unable to effect a sale to an eligible person or for cash, or if
the commissioner finds that sale to an eligible person or for
cash would not best protect the interests of the state, the
commissioner may sell the property on terms which the
commissioner finds will best protect the interests of the state.
The commissioner may lease any real property which the
commissioner is unable to sell with reasonable promptness. In
any event, any acquired farm property must be sold within three
years after the conveyance of title to the state or after the
expiration of the period of redemption. The commissioner may
contract for the services of a licensed real estate agent or
broker to assist in selling any property acquired under this
section and may pay for the services from the proceeds of the
sale before proceeds are distributed under subdivision 4b.
In lieu of selling property under this subdivision, the
commissioner may utilize participation under the beginning
farmer program under chapter 41B.
In selling property acquired under this section, the
commissioner may not sell the property to a relative within the
second degree of kindred according to common law of a person who
has defaulted.
Sec. 2. [41.65] [USE AND DISPOSITION OF PROPERTY.]
Subdivision 1. [COMMISSIONER MAY SELL OR LEASE
PROPERTY.] The commissioner may sell or lease property acquired
by the state in a manner that protects the interests of the
state. Persons desiring to purchase or lease property must
apply to the commissioner.
Subd. 2. [MANAGING AND SELLING PROPERTY.] (a) The
commissioner must attempt to sell agricultural property to
persons entering farming and farmers that need additional
property to continue their farming operations.
(b) The commissioner must give priority to applicants
desiring to purchase or lease property who:
(1) are residents of the state of Minnesota;
(2) have sufficient education, training, or experience in
the type of farming for which the property is desired and agree
to continued participation in a farm management program,
approved by the commissioner for at least the first ten years;
(3) have, including the applicant's dependents and spouse,
a total net worth valued at less than $100,000 and have
demonstrated a need for acquiring property from the commissioner;
(4) intend to purchase farm land to be used by the
applicant for agricultural purposes; and
(5) are credit worthy according to standards prescribed by
the commissioner.
(c) The commissioner must attempt to sell the property by a
cash sale. Agricultural property may be leased with an option
to purchase to accommodate a sale. The commissioner should
avoid long-term leasing of property.
Subd. 3. [RESTRICTED AGRICULTURAL USE.] (a) Acquired
property that has marginal land as defined in section 40.42,
subdivision 6, or wetlands must be restricted from agricultural
use on the marginal land or wetlands.
(b) If the commissioner determines that all or a portion of
acquired property should be taken out of agricultural use or
particular agricultural uses should be restricted, the
commissioner shall have the attorney general prepare an easement
restricting the agricultural use and file the easement with the
county recorder where the property is located.
Subd. 4. [EXCLUSIVE AGRICULTURAL USE.] The commissioner
may place easements on acquired property restricting development
and allowing only agricultural or conservation use.
Sec. 3. Minnesota Statutes 1986, section 41B.01,
subdivision 2, is amended to read:
Subd. 2. [PURPOSE.] Sections 41B.01 to 41B.23 create and
establish the Minnesota rural finance administration authority
and establish a program under which state bonds are authorized
to be issued and proceeds of their sale are appropriated under
the authority of article XI, section 5, clause (h) of the
Minnesota Constitution, to develop the state's agricultural
resources by extending credit on real estate security. The
purpose of the program rural finance authority's programs and of
the bonds issued to finance or provide security for the program
programs is to purchase participation interests in loans to be
made available by agricultural lenders to farmers in order to
restructure existing debt and to make available additional
credit to farmers who own or purchase agricultural properties on
terms and conditions not otherwise available from other credit
sources. It is hereby found and declared that there presently
exist in the state economic conditions which have severely
adversely affected the economic viability of farms to the
detriment of the rural economy and to the detriment of the
economy of the state of Minnesota as a whole. It is further
found and declared that as a result of public agricultural
policies, agricultural market conditions, and other causes, the
condition of the farm economy of the state of Minnesota is such
as to jeopardize the continued existence and successful
operation of farms in this state, necessitating the
establishment of the program programs in sections 41B.01 to
41B.23 to provide new sources of credit on favorable terms and
conditions. It is further found and declared that providing
credit for farmers on favorable terms and conditions will serve
and promote the public welfare by assuring the viability of farm
operations, by preventing erosion of the tax base in rural
areas, by reducing foreclosures on farm property, and by
enhancing the financial stability of farmers and of the
businesses which depend on farmers as customers. It is further
found and declared that in establishing a Minnesota rural
finance administration authority and in authorizing the programs
in sections 41B.01 to 41B.23, the legislature is acting in all
respects for the benefit of the people of the state of Minnesota
to serve the public purpose of improving and otherwise promoting
their health, welfare, and prosperity and that the Minnesota
rural finance administration authority, as created and
established, is empowered to act on behalf of the people of the
state of Minnesota in serving this public purpose for the
benefit of the general public.
Sec. 4. Minnesota Statutes 1986, section 41B.02,
subdivision 4, is amended to read:
Subd. 4. [ELIGIBLE AGRICULTURAL LENDER; ELIGIBLE LENDER.]
"Eligible agricultural lender" or "eligible lender" means an
entity of the kind described in section 41B.04, subdivision 6,
which enters into an agreement with the administration providing
for the purchase by the administration of participation
interests in eligible agricultural loans originated and serviced
by the qualified agricultural lender a bank, credit union, or
savings and loan association chartered by the state or federal
government, a subdivision of the Farm Credit System, the Federal
Deposit Insurance Corporation, the Federal Savings and Loan
Insurance Corporation, or any insurance company, fund, or other
financial institution doing business as an agricultural lender
within the state, if the authority determines that the
agricultural lender has sufficient personnel and other resources
to efficiently and properly originate and service qualified
agricultural loans. An eligible agricultural lender must enter
into one or more agreements with the authority providing for the
origination and servicing of qualified agricultural loans on the
terms and conditions the authority determines to be appropriate.
Sec. 5. Minnesota Statutes 1986, section 41B.02,
subdivision 5, is amended to read:
Subd. 5. [ELIGIBLE BORROWER.] "Eligible borrower" means a
borrower who meets the eligibility criteria for a program in
section 41B.03.
Sec. 6. Minnesota Statutes 1986, section 41B.02,
subdivision 6, is amended to read:
Subd. 6. [QUALIFIED AGRICULTURAL LOAN.] "Qualified
agricultural loan" means a loan to an eligible borrower made by
an eligible agricultural lender which the administration
purchases or in which the administration purchases a
participation interest under agricultural programs established
and implemented by the authority.
Sec. 7. Minnesota Statutes 1986, section 41B.02,
subdivision 9, is amended to read:
Subd. 9. [PRIMARY PRINCIPAL.] "Primary principal" means
that portion of the principal outstanding balance on a loan
covered by sections 41B.01 to 41B.23 that is equal to the
current market value of the property secured by the loan.
Sec. 8. Minnesota Statutes 1986, section 41B.02,
subdivision 11, is amended to read:
Subd. 11. [BASIC INTEREST.] "Basic interest" means that
part of interest on primary principal that is payable annually
while the loan is in effect.
Sec. 9. Minnesota Statutes 1986, section 41B.02,
subdivision 13, is amended to read:
Subd. 13. [CURRENT MARKET VALUE.] "Current market value"
means, for the purposes of section 41B.04, the value determined
by an appraisal considering comparable sales in the area where
the real estate is located and the reasonable productive value
of the property based on past production history. The state and
the eligible agricultural lender must mutually agree on the
current market value.
Sec. 10. Minnesota Statutes 1986, section 41B.02,
subdivision 14, is amended to read:
Subd. 14. [BORROWER.] "Borrower" means the person or
persons liable on a restructured note qualified agricultural
loan.
Sec. 11. Minnesota Statutes 1986, section 41B.02,
subdivision 15, is amended to read:
Subd. 15. [ORIGINAL LOAN.] "Original loan" means a loan
prior to restructuring as provided in section 41B.04.
Sec. 12. Minnesota Statutes 1986, section 41B.03, is
amended to read:
41B.03 [BORROWER ELIGIBILITY CRITERIA.]
Subdivision 1. [ELIGIBILITY GENERALLY.] To be eligible for
a program in sections 41B.01 to 41B.23:
(a) (1) a borrower must be a resident of Minnesota or a
domestic family farm corporation, as defined in section 500.24,
subdivision 2.;
(b) (2) the borrower or one of the borrowers must be the
principal operator of the farm. or, for a prospective homestead
redemption borrower, must have at one time been the principal
operator of a farm; and
(3) the borrower must not previously have received
assistance under sections 41B.01 to 41B.23.
Subd. 2. [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition
to the eligibility requirements of subdivision 1, a prospective
borrower for a restructured loan must:
(c) the borrower or one of the borrowers must (1) have
received at least 50 percent of average annual gross income from
farming for the past three years or, for homesteaded property,
received at least 40 percent of average gross income from
farming in the past three years, and farming must be the
principal occupation of the borrower.;
(d) The borrower must (2) have a debt-to-asset ratio equal
to or greater than 50 percent. and in determining this ratio,
the assets must be determined by the valued at their current
market value of the assets.;
(e) The borrower's (3) have projected annual expenses,
including operating expenses, family living, and interest
expenses after the restructuring, must that do not exceed 95
percent of the borrower's projected annual income considering
prior production history and projected prices for farm
production., except that the authority may reduce the 95 percent
requirement if it finds that other significant factors in the
loan application support the making of the loan; and
(f) The borrower must be unable to meet (4) demonstrate
substantial difficulty in meeting projected annual expenses
without restructuring the loan.
(g) The borrower must not previously have received
restructuring assistance pursuant to sections 41B.01 to 41B.23.
Subd. 3. [BEGINNING FARMER LOANS.] In addition to the
requirements under subdivision 1 a prospective borrower for a
beginning farm loan must:
(1) have sufficient education, training, or experience in
the type of farming for which the loan is desired;
(2) have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, of less
than $100,000;
(3) demonstrate a need for the loan;
(4) demonstrate an ability to repay the loan;
(5) demonstrate that the agricultural land to be purchased
will be used by the borrower for agricultural purposes; and
(6) demonstrate that farming will be the principal
occupation of the borrower.
Subd. 4. [CONTINUING ELIGIBILITY REQUIREMENTS.] After
qualifying for a restructured loan, a borrower must continue to
meet only the requirements of subdivision 1, clauses (1) and (2).
Sec. 13. Minnesota Statutes 1986, section 41B.035,
subdivision 5, is amended to read:
Subd. 5. [BOARD ACTIONS OF THE AUTHORITY.] The powers of
the board are vthe members in office from time to time. A
majority of the members of the board authority, excluding
vacancies, constitutes a quorum for the purpose of conducting
its business and exercising its powers and for all other
purposes. Action may be taken by the board authority upon a
vote of a majority of a quorum present.
Sec. 14. Minnesota Statutes 1986, section 41B.035, is
amended by adding a subdivision to read:
Subd. 8. [TECHNICAL ASSISTANCE.] The authority must make
technical assistance available to potential lenders and
applicants to encourage applications for loans.
Sec. 15. [41B.037] [HOMESTEAD REDEMPTION PROGRAM.]
The authority may establish and implement a homestead
redemption program under sections 41B.01 to 41B.23. The purpose
of the program is to assist persons who have lost their farms
due to foreclosure, granting a deed in lieu of foreclosure, or
other actions necessary to settle their agricultural debts, and
who are otherwise unable to secure the credit necessary to
repurchase their farm homestead. The authority may enter into
agreements with an eligible lender for the purposes of the
program. The authority may, by rule, establish eligibility
standards for the program that are different from those
established for other programs of the authority. The
authority's interest in a homestead redemption loan may not
exceed one-half of the loan amount or $25,000, whichever is less.
Sec. 16. [41B.038] [PROGRAMS FOR COMMITMENTS TO OTHER
ENTITIES.]
The authority may establish programs to make or purchase
and enter into commitments to make or purchase qualified
agricultural loans or portions of the loans issued to persons
described in section 41B.03, subdivision 1. The agricultural
loans must be insured or guaranteed by the United States
Department of Agriculture, Farmers Home Administration, Farm
Credit System, a subdivision of the Farm Credit System, or any
similar federal agency or federally chartered institution whose
obligations are directly or indirectly guaranteed or insured by
the United States. The commissioner of finance may not issue
general obligation bonds pursuant to sections 41B.19 or 41B.195
to finance any programs established under this section.
Sec. 17. [41B.039] [BEGINNING FARMER PROGRAM.]
Subdivision 1. [ESTABLISHMENT.] The authority may
establish, develop criteria, and implement a beginning farmer
program. The program must assist persons entering farming who
have not owned a farm before entering the beginning farmer
program.
Subd. 2. [STATE PARTICIPATION.] The state may participate
in a new real estate loan with an eligible lender to a beginning
farmer to the extent of one-fourth of the principal of the loan
or $25,000, whichever is less. The interest rates and repayment
terms of the authority's participation interest may be different
than the interest rates and repayment terms of the lender's
retained portion of the loan.
Subd. 3. [SOIL AND WATER CONSERVATION AGREEMENTS.] (a) As
a condition of receiving a beginning farmer loan the borrower
must agree to implement an approved soil and water conservation
plan on the land.
(b) The borrower must place marginal land as defined in
section 40.42, subdivision 6, in a permanent conservation
easement as provided in section 40.43. The authority may
compensate the borrower for the easement as provided in section
40.43, subdivision 6.
Subd. 4. [FARM MANAGEMENT.] A borrower must agree to
participate in a farm management program approved by the
commissioner of agriculture for at least the first eight years
of the loan.
Subd. 5. [LOAN REVIEW.] The authority shall refer all
applications for the beginning farmer program to the family farm
advisory council to review the loan with the beginning farmer
and make recommendations to the authority.
Sec. 18. Minnesota Statutes 1986, section 41B.04,
subdivision 7, is amended to read:
Subd. 7. [RESTRUCTURING PROCEDURE.] (a) The eligible
agricultural lender or borrower shall propose restructuring a
loan to the administration authority. Within 30 days of
receiving adequate information concerning a proposal, the
administration authority and the eligible lender shall notify
the borrower of their determination of eligibility. An eligible
agricultural lender shall then expeditiously conduct necessary
appraisals and draft the loan restructuring agreement which must
be consistent with this section and documents previously
approved by the administration and eligible lenders authority.
The loan restructuring agreement must be approved by the
eligible lender, the administration, and the borrower.
(b) An eligible borrower may participate in the
restructured loan or the homestead redemption loan, but not both
loans.
Sec. 19. Minnesota Statutes 1986, section 41B.04,
subdivision 8, is amended to read:
Subd. 8. [STATE'S PARTICIPATION.] With respect to loans
that are eligible for restructuring under sections 41B.01 to
41B.23 and upon acceptance by the administration authority,
the administration authority shall enter into a participation
agreement or other financial arrangement whereby it shall
participate in a restructured loan to the extent of one-quarter
of the primary principal or $50,000, whichever is less, except
that the administration may participate in restructured loans
made for the redemption of homesteads to the extent of one-half
of the primary principal or $25,000, whichever is less. The
administration's authority's portion of the loan must thereafter
be protected during the authority's participation by the first
mortgage held by the eligible lender to the extent of its
participation in the loan.
Sec. 20. Minnesota Statutes 1986, section 41B.04,
subdivision 9, is amended to read:
Subd. 9. [RESTRUCTURED LOAN AGREEMENT.] (a) All payments
on the primary and secondary principal of the restructured loan,
all payments of interest on the secondary principal, and an
agreed portion of the interest payable to the eligible
agricultural lender on the primary principal must be deferred to
the end of the term of the loan.
(b) A borrower may prepay the restructured loan, with all
primary and secondary principal and interest and deferred
interest at any time without prepayment penalty.
(c) Interest on secondary principal must accrue at a below
market interest rate.
(d) At the conclusion of the term of the restructured loan,
the borrower owes primary principal, secondary principal, and
deferred interest on primary and secondary principal. However,
part of this balloon payment may be forgiven following an
appraisal by the lender and the administration authority to
determine the current market value of the real estate subject to
the mortgage. If the current market value of the land after
appraisal is less than the amount of debt owed by the borrower
to the lender and administration authority on this obligation,
that portion of the obligation that exceeds the current market
value of the real property must be forgiven by the lender and
the administration authority in the following order:
(1) deferred interest on secondary principal;
(2) secondary principal;
(3) deferred interest on primary principal;
(4) primary principal as provided in an agreement between
the administration and the lender; and
(5) accrued but not deferred interest on primary principal.
The debt forgiveness may be combined with a renegotiated
loan on the unforgiven balance due if the borrower is able to
establish that there are reasonable prospects of repayment on a
debt equal to the current market value of real estate at then
existing interest rates. If so, the loan must be reamortized on
terms and conditions acceptable to the lender, the
administration, and the farmer.
(e) The authority may not participate in refinancing a
restructured loan at the conclusion of the restructured loan.
Sec. 21. Minnesota Statutes 1986, section 41B.04,
subdivision 10, is amended to read:
Subd. 10. [INTEREST RATE.] Unless the authority determines
that it is not in the best interests of the restructured loan
program, the interest rate per annum on the portion of
the restructuring restructured loan represented by the
participation interest purchased by the administration authority
must be that rate of interest determined by the
administration authority to be necessary to provide for the
timely payment of principal and interest when due on bonds or
other obligations issued by the administration authority, and to
provide for the reasonable and necessary costs of issuing,
carrying, administering, and securing the bonds or notes and to
pay the costs incurred and to be incurred by the administration
authority in the implementation of the program. The interest
rate per annum borne by the primary principal portion of the
restructuring loan retained by the eligible agricultural lender
must be a rate of interest approved by the administration
authority. The administration authority may specify the points,
fees, and other charges which the eligible agricultural lender
may charge to the eligible borrower.
Sec. 22. Minnesota Statutes 1986, section 41B.04,
subdivision 11, is amended to read:
Subd. 11. [ADMINISTRATION.] The eligible lender shall
administer the loans and shall bear all costs of the loan
administration. Ordinary costs of administration include
appraisals, litigation, abstracts of title, and similar
costs. The administration agrees to share in any other
responsibilities common to a loan participation agreement.
Sec. 23. Minnesota Statutes 1986, section 41B.04,
subdivision 12, is amended to read:
Subd. 12. [ASSIGNABILITY.] Loans restructured under this
section may not be assigned to anyone other than a direct
descendant of the original borrower and the assignee must intend
to engage in the direct operation and management of the farm
which is subject to the mortgage meeting the eligibility
requirements of section 41B.03, subdivision 1, and any other
requirements imposed or approved by the authority. If such an
assignment is contemplated, the borrower must obtain prior
written approval of the eligible lender and the administration
and the assignee shall thereafter be subject to the same terms
and conditions and events of default as the original borrower.
If assigned to some other party, the eligible agricultural
lender may exercise its foreclosure remedies as provided by its
contracts and by law.
Sec. 24. Minnesota Statutes 1986, section 41B.05, is
amended to read:
41B.05 [GENERAL POWERS OF THE ADMINISTRATION AUTHORITY.]
For the purpose of exercising the specific powers granted
in section 41B.04 and effectuating the other purposes of
sections 41B.01 to 41B.23 the administration authority has the
general powers granted in this section.
(a) It may sue and be sued.
(b) It may have a seal and alter the seal.
(c) It may make, and from time to time, amend and repeal
rules consistent with sections 41B.01 to 41B.23.
(d) It may acquire, hold, and dispose of personal property
for its corporate purposes.
(e) It may enter into agreements, contracts, or other
transactions with any federal or state agency, any person and
any domestic or foreign partnership, corporation, association,
or organization, including contracts or agreements for
administration and implementation of all or part of sections
41B.01 to 41B.23.
(f) It may acquire real property, or an interest therein,
in its own name, by purchase or foreclosure, where such
acquisition is necessary or appropriate.
(g) It may provide general technical services related to
rural finance.
(h) It may provide general consultative assistance services
related to rural finance, and shall make available technical
assistance to potential lenders and applicants to encourage
applications for loans.
(i) It may promote research and development in matters
related to rural finance.
(j) It may enter into agreements with lenders, borrowers,
or the issuers of securities for the purpose of regulating the
development and management of farms financed in whole or in part
by the proceeds of qualified agricultural loans.
(k) It may enter into agreements with other appropriate
federal, state, or local governmental units to foster rural
finance. It may give advance reservations of loan financing as
part of the agreements, with the understanding that the
administration authority will only approve the loans pursuant to
normal procedures, and may adopt special procedures designed to
meet problems inherent in such programs.
(l) It may undertake and carry out studies and analyses of
rural financing needs within the state and ways of meeting such
needs including: data with respect to geographical
distribution; farm size; the distribution of farm credit needs
according to debt ratios and similar factors; the amount and
quality of available financing and its distribution according to
factors affecting rural financing needs and the meeting thereof;
and may make the results of such studies and analyses available
to the public and may engage in research and disseminate
information on rural finance.
(m) It may survey and investigate the rural financing needs
throughout the state and make recommendations to the governor
and the legislature as to legislation and other measures
necessary or advisable to alleviate any existing shortage in the
state.
(n) It may establish cooperative relationships with such
county and multicounty authorities as may be established and may
develop priorities for the utilization of administration
authority resources and assistance within a region in
cooperation with county and multicounty authorities.
(o) It may contract with, use, or employ any federal,
state, regional, or local public or private agency or
organization, legal counsel, financial advisors, investment
bankers or others, upon terms it deems necessary or desirable,
to assist in the exercise of any of the powers granted in
sections 41B.01 to 41B.23 and to carry out the objectives of
sections 41B.01 to 41B.23 and may pay for the services from
administration authority funds.
(p) It may establish cooperative relationships with
counties to develop priorities for the use of administration
authority resources and assistance within counties and to
consider county plans and programs in the process of setting the
priorities.
(q) It may delegate any of its powers to its officers or
staff.
(r) It may enter into agreements with qualified
agricultural lenders or others insuring or guaranteeing to the
state the payment of all or a portion of qualified agricultural
loans.
(s) It may enter into agreements with eligible agricultural
lenders providing for advance reservations of purchases of
participation interests in restructuring loans, if the
agreements provide that the authority may only purchase
participation interests in restructuring loans under the normal
procedure. The authority may provide in an agreement for
special procedures or requirements designed to meet specific
conditions or requirements.
Sec. 25. Minnesota Statutes 1986, section 41B.08,
subdivision 4, is amended to read:
Subd. 4. [REQUIRED RATING.] No bonds may be issued unless
a rating of "A" or better has been awarded to the bonds by a
national bond rating agency. The "A" rating is not required if
the bonds are initially sold to corporations or financial
institutions for investment purposes and not for the purpose of
remarketing the bonds to the public.
Sec. 26. Minnesota Statutes 1986, section 41B.12, is
amended to read:
41B.12 [REVENUE BONDS; NONLIABILITY OF INDIVIDUALS.]
Neither The members of the administration nor authority and
its staff and any person executing the bonds is liable are not
personally liable on the bonds or subject to any personal
liability or accountability by reason of their issuance.
Sec. 27. Minnesota Statutes 1986, section 41B.19,
subdivision 5, is amended to read:
Subd. 5. [RURAL FINANCE ADMINISTRATION AUTHORITY SECURITY
ACCOUNT.] The commissioner of finance shall maintain a separate
state building fund account designated as the rural finance
administration authority security account, into which must be
deposited the proceeds of the rural renewal general obligation
bonds issued as provided in this section. The commissioner of
finance shall maintain a separate bookkeeping account to record
receipts and disbursements of money transferred to or from the
security account and to record income from the investment of
money in the account. Upon the written request of
the administration authority, the commissioner of finance shall
transfer from the security account to an account or accounts the
administration authority shall designate, a sum of money
sufficient in amount, if available, when added to the balances
then on hand in the designated accounts, to pay bonds issued by
the administration authority under sections 41B.01 to 41B.23 and
the interest on them due and to become due on the next
succeeding date for the payment of the principal of and interest
on the bonds of the administration or to restore to any debt
service reserve fund established in connection with the bonds
any amount withdrawn from the debt service reserve account to
pay the bonds. When no revenue bonds secured by the security
account are outstanding under the resolution authorizing their
issuance, the commissioner of finance shall further transfer
from all money and securities on hand in the security account on
or before the date on which any installment of the principal of
and interest on bonds authorized by this section is due, a sum
sufficient in amount, when added to the balance then on hand in
the rural renewal bond account, to pay all bonds issued under
this section and the interest on them due and to become due on
the next succeeding date for payment of the bonds to the state
bond fund.
Sec. 28. Minnesota Statutes 1986, section 41B.19,
subdivision 6, is amended to read:
Subd. 6. [INVESTMENT OF SECURITY ACCOUNT.] (a) Money from
time to time on deposit in the security account must be invested
by the state board of investment at the request of the
administration authority in any investment authorized by this
subdivision. Money on deposit in the security account may be
invested in:
(1) certificates of deposit insured by the Federal Deposit
Insurance Corporation or Federal Savings and Loan Insurance
Corporation; (2) certificates of deposit issued by eligible
agricultural lenders, whether or not fully insured or
secured issued by or interest-bearing time deposits with a
national banking association or a bank and trust company
organized under the laws of any state;
(3) (2) deposits secured by obligations of the United
States or of the state of a market value equal at all times to
the amount of the deposit and all banks and trust companies are
authorized to give security for those deposits;
(4) (3) qualified agricultural loans or in participation
interests in qualified agricultural loans; or
(5) (4) qualified restructured loans.
(b) The principal amount of the investment under paragraph
(a), clause (1), must be fully insured by the Federal Deposit
Insurance Corporation or Federal Savings and Loan Insurance
Corporation; or if not fully insured, the institution issuing
the certificate of deposit or accepting the time deposit must be
rated in the AA or a higher category as defined by a nationally
recognized bond rating agency or in an equivalent or higher
rating category based on any later redefinition.
(c) If and to the extent money has been transferred from
the security account to provide for the timely payment of the
principal of and interest on bonds issued by the administration
authority, or to transfer money to a debt service reserve fund
established in connection with the bonds, the administration
authority shall transfer to the security account on or before
December 1 of each succeeding year an amount equal to that
previously transferred from the security account, provided that
the administration's authority's obligation to transfer money to
the security account is limited to money then on hand in funds
or accounts of the administration authority in excess of those
appropriated to other purposes or required to provide for the
payment of the principal of and interest on bonds issued by
the administration authority and to pay the costs of issuing,
carrying, administering, and securing the bonds of
the administration authority and of administering and
implementing the programs of the administration authority
financed by the bonds.
Sec. 29. [41B.195] [ADDITIONAL USE OF GENERAL OBLIGATION
BONDS.]
Notwithstanding the limit set forth in section 41B.19,
subdivision 1, the commissioner of finance, upon the request of
the rural finance authority, may issue the general obligation
bonds authorized by section 41B.19 and use the proceeds of the
bonds to purchase participations in qualified agricultural loans
if the commissioner determines that it is not practical or
efficient to issue revenue bonds under section 41B.08 for the
purpose of section 41B.04 and sections 13, 15, and 16 as a
result of reduced program size or increased program costs.
Subject to the other provisions of this section, the proceeds of
the bonds must be deposited, held, and disbursed from a separate
state building fund account, the bonds are payable from the bond
account established by section 41B.19, subdivision 4, and the
participations purchased with the bond proceeds must be held as
assets of the bond account. If the rural finance authority
later determines to issue revenue bonds under section 41B.08 for
the purposes specified in section 41B.04, the commissioner may
by order provide for the transfer of all or a portion of the
remaining bond proceeds and interest on them, and all or a
portion of the participations purchased with the bond proceeds
and proceeds of them, to be transferred to the security account
established in section 41B.19, subdivision 5, and used for the
purposes specified in section 41B.19, subdivisions 1 and 5.
Sec. 30. [41B.211] [DATA PRIVACY.]
Financial information, including credit reports, financial
statements, and net worth calculations, received or prepared by
the authority regarding any authority loan and the name of each
individual who is the recipient of a loan are private data on
individuals, under chapter 13.
Sec. 31. [INSTRUCTIONS TO REVISOR.]
The revisor of statutes is instructed to change the phrases
"rural finance administration" and "administration" when the
term is applied to the rural finance administration to "rural
finance authority" and "authority" respectively in Minnesota
Statutes. The revisor is further instructed to rearrange the
subdivisions of Minnesota Statutes 1986, section 41B.02, so that
the terms defined therein are in alphabetical order.
The revisor of statutes shall renumber each section of
Minnesota Statutes specified in column A with the number set
forth in column B. The revisor shall also make necessary
cross-reference changes consistent with the renumbering.
Column A Column B
41B.035 41B.025
41B.05 41B.036
Sec. 32. [REPEALER.]
Minnesota Statutes 1986, sections 41B.02, subdivision 17;
41B.035, subdivision 4; and 41B.04, subdivisions 6, 13, 14, 15,
and 16, are repealed.
Sec. 33. [EFFECTIVE DATE.]
This article is effective on the day following final
enactment.
ARTICLE 2
RIGHT OF FIRST REFUSAL
Section 1. Minnesota Statutes 1986, section 500.24,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For the purposes of this section,
the terms defined in this subdivision have the meanings here
given them:
(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 or the
production of poultry or poultry products.
(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 voting stock is held by and
the majority of the stockholders are persons or the spouses of
persons related to each other within the third degree of kindred
according to the rules of the civil law, and at least one of
said 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 devise or bequest of shares of
voting stock.
(d) "Authorized farm corporation" means a corporation
meeting the following standards:
(1) Its shareholders do not exceed five in number;
(2) All its shareholders, other than any estate are natural
persons;
(3) It does not have more than one class of shares; and
(4) Its revenues from rent, royalties, dividends, interest
and annuities does not exceed 20 percent of its gross receipts;
and
(5) Shareholders holding a majority of the shares must be
residing on the farm or actively engaging in farming.
(e) "Agricultural land" means land used for farming.
(f) "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. "Pension or investment
fund" does not include a benevolent trust established by the
owners of a family farm, authorized farm corporation or family
farm corporation.
(g) "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.
Sec. 2. Minnesota Statutes 1986, section 500.24,
subdivision 6, is amended to read:
Subd. 6. [DISPOSAL OF LAND.] (a) A state or federal agency
or a corporation, other than a family farm corporation or an
authorized farm corporation, when leasing may not lease or
selling farm sell agricultural land or a farm homestead must
offer that was acquired by enforcing a debt against the
agricultural land or farm homestead, including foreclosure of a
mortgage, accepting a deed in lieu of foreclosure, terminating a
contract for deed, or accepting a deed in lieu of terminating a
contract for deed, before offering or make making a good faith
effort to offer the land for sale or lease to the immediately
preceding former owner at a price no higher than the highest
price offered by a third party that is acceptable to the seller
or lessor. The offer must be made on the notice to offer form
under section 3. Selling or leasing property to a third party
at a price is prima facie evidence that the price is acceptable
to the seller or lessor.
(b) For purposes of this subdivision, the term "a price no
higher than the highest price offered by a third party" means
the acceptable cash price offered by a third party or the
acceptable time-price offer made by a third party. A cash price
offer is one that involves simultaneous transfer of title for
payment of the entire amount of the offer. If the acceptable
offer made by a third party is a time-price offer, the seller or
lessor must make the same time-price offer or an equivalent cash
offer to the immediately preceding former owner. An equivalent
cash offer is equal to the total of the payments made over a
period of the time-price offer discounted by yield curve of the
United States treasury notes and bonds on the first business day
of the month in which the offer is personally delivered or
mailed for time periods similar to the time period covered by
the time-price offer, plus 2.0 percent. A time-price offer is
an offer that defers payment of a portion of the price and does
not involve a transfer of fee title until payment of the entire
amount of the offer is made.
(c) This subdivision applies to a seller when the property
is sold and to a lessor each time the property is leased, for
five years after the agricultural land is acquired except:
(1) an offer to lease to the immediately preceding former
owner is required only on the first occasion on which the
property is leased. until the immediately preceding owner fails
to accept an offer to lease the property or the property is
sold; and
(2) an offer to sell to the immediately preceding former
owner is required only on until the first occasion on which the
property is sold.
(d) The notice of an offer delivered under section 3 that
is personally delivered with a signed receipt or sent by
certified mail with a receipt of mailing to the immediately
preceding former owner's last known address is a good faith
offer.
(e) This subdivision does not apply to a sale or lease that
occurs after the seller or lessor has held the property for five
years or longer.
(f) For purposes of this subdivision, if the immediately
preceding former owner is a bankruptcy estate the debtor in the
bankruptcy is the immediately preceding owner.
(g) The immediately preceding former owner must exercise
the right to lease farm agricultural land or a homestead located
on agricultural land in writing within ten 15 days after
receiving an offer to lease under this subdivision is mailed
with a receipt of mailing or personally delivered.
The immediately preceding former owner must exercise the right
to buy farm the agricultural land or farm homestead located on
agricultural land, in writing, within 60 65 days after receiving
an offer to buy under this subdivision. This subdivision does
not apply if the former owner is a bankruptcy estate. is mailed
with a receipt of mailing or is personally delivered. Within
ten days after exercising the right to lease or buy by accepting
the offer, the immediately preceding owner must fully perform
according to the terms of the offer including paying the amounts
due. A seller may sell and a lessor may lease the agricultural
land or farm homestead subject to this subdivision to the third
party in accordance with their lease or purchase agreement if:
(1) the immediately preceding former owner does not accept
an offer to lease or buy before the offer terminates; or
(2) the immediately preceding former owner does not perform
the obligations of the offer, including paying the amounts due,
within ten days after accepting the offer.
(h) A certificate indicating whether or not the property
contains agricultural land or a farm homestead that is signed by
the county assessor where the property is located and recorded
in the office of the county recorder or the registrar of titles
where the property is located is prima facie evidence of whether
the property is agricultural land or a farm homestead.
(i) As prima facie evidence that an offer to sell or lease
agricultural land or a farm homestead has terminated, a receipt
of mailing the notice under section 3 and an affidavit, signed
by a person authorized to act on behalf of a state, federal
agency, or corporation selling or leasing the agricultural land
or a farm homestead may be filed in the office of the county
recorder or registrar of titles of the county where the
agricultural land or farm homestead is located. The affidavit
must state that:
(1) notice of an offer to buy or lease the agricultural
land or farm homestead was provided to the immediately preceding
former owner at a price not higher than the highest price
offered by a third party that is acceptable;
(2) the time during which the immediately preceding former
owner is required to exercise the right to buy or lease the
agricultural land or farm homestead has expired;
(3) the immediately preceding former owner has not
exercised the right to buy or lease the agricultural land or
farm homestead as provided in this subdivision or has accepted
an offer and has not fully performed according to the terms of
the offer; and
(4) the offer to the immediately preceding former owner has
terminated.
(j) The right of an immediately preceding former owner to
receive an offer to lease or purchase agricultural land under
this subdivision or to lease or purchase at a price no higher
than the highest price offered by a third party that is
acceptable to the seller or lessor may be extinguished or
limited by an express statement signed by the immediately
preceding owner that complies with the plain language
requirements of section 325G.31. The right may not be
extinguished or limited except by the express statement in a
deed in lieu of foreclosure or in a deed in lieu of a
termination of a contract for deed for the agricultural land.
(k) The right of an immediately preceding former owner to
receive an offer to lease or purchase agricultural land under
this subdivision may not be assigned or transferred, but may be
inherited.
Sec. 3. Minnesota Statutes 1986, section 500.24, is
amended by adding a subdivision to read:
Subd. 7. [NOTICE OF OFFER.] (a) The state, a federal
agency, or a corporation subject to subdivision 6 must provide a
notice of an offer to sell or lease agricultural land
substantially as follows, after inserting the appropriate terms
within the parentheses:
"NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND
TO: (...Immediately preceding former owner...)
FROM: (...The state, federal agency, or corporation
subject to subdivision 6...)
DATE: (...date notice is mailed or personally delivered...)
(...The state, federal agency, or corporation...) HAS
ACQUIRED THE AGRICULTURAL LAND DESCRIBED BELOW AND HAS RECEIVED
AN ACCEPTABLE OFFER TO (LEASE, SELL) THE AGRICULTURAL LAND FROM
ANOTHER PARTY. UNDER MINNESOTA STATUTES, SECTION 500.24,
SUBDIVISION 6, AN OFFER FROM (...the state, federal agency, or
corporation...) MUST BE MADE TO YOU AT A PRICE NO HIGHER THAN
THE HIGHEST OFFER MADE BY ANOTHER PARTY.
THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY
(...approximate number of acres...) ACRES AND IS INFORMALLY
DESCRIBED AS FOLLOWS:
(Informal description of the agricultural land being
offered that reasonably describes the land. This
description does not need to be a legal description.)
(...The state, federal agency, or corporation...) OFFERS TO
(SELL, LEASE) THE AGRICULTURAL LAND DESCRIBED ABOVE FOR A CASH
PRICE OF $(...cash price or equivalent cash price for lease and
lease period, or cash price or equivalent cash price for sale of
land...), WHICH IS NOT HIGHER THAN THE PRICE OFFERED BY ANOTHER
PARTY. THE PRICE IS OFFERED ON THE FOLLOWING TERMS:
(Terms, if any, of acceptable offer)
IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the
state, federal agency, or corporation...) IN WRITING THAT YOU
ACCEPT THE OFFER OR SIGN UNDERNEATH THE FOLLOWING PARAGRAPH AND
RETURN A COPY OF THIS NOTICE BY (15 for a lease, 65 for a sale)
DAYS AFTER THIS NOTICE IS PERSONALLY DELIVERED OR MAILED TO
YOU. THE OFFER IN THIS NOTICE TERMINATES ON (...date of
termination - 15 days for lease and 65 days for sale after date
of mailing or personal delivery...).
ACCEPTANCE OF OFFER
I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND
DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE. AS
PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE
TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE
OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER.
.........................................
Signature of Former Owner Accepting Offer
.........................................
Date"
(b) For an offer to sell, a copy of the purchase agreement
containing the price and terms of the highest offer made by a
third party that is acceptable to the seller and a signed
affidavit by the seller affirming that the purchase agreement is
true, accurate, and made in good faith must be included with the
notice under this subdivision. At the seller's discretion,
reference to the third party's identity may be deleted from the
copy of the purchase agreement.
(c) For an offer to lease, a copy of the lease containing
the price and terms of the highest offer made by a third party
that is acceptable to the lessor and a signed affidavit by the
lessor affirming that the lease is true, accurate, and made in
good faith must be included with the notice under this
subdivision. At the lessor's discretion, reference to the third
party's identity may be deleted from the copy of the lease
agreement.
(d) The affidavit under paragraphs (b) and (c) is subject
to section 609.48.
Sec. 4. [EFFECTIVE DATE.]
This article is effective July 1, 1987, and applies to
property with initial offers made under section 500.24,
subdivision 6, after July 1, 1987.
ARTICLE 3
WAIVER OF DEBTOR'S RIGHTS
Section 1. [550.42] [WAIVER OF AGRICULTURAL DEBTOR'S
RIGHTS.]
Subdivision 1. [WAIVER IS VOID.] (a) A waiver of statutory
rights of a debtor in a contract, loan agreement, or security
agreement as a condition for a loan of money for agricultural
production is void unless the waiver is expressly authorized by
law.
(b) A waiver of mediation rights under chapter 583, the
right to an offer under section 500.24, subdivision 6, or the
debtor's statutory rights under chapter 580, 581, or 582 for a
mortgage on agricultural property, is void unless the waiver is
expressly authorized by law.
Subd. 2. [PENALTY.] A person, corporation, financial
institution, or other legal entity is liable to a debtor for up
to $2,500 plus attorney fees if the person or entity:
(1) requires a waiver subject to subdivision 1 in a
contract, loan agreement, or security agreement, and does not
acknowledge that the waiver subject to subdivision 1 is void; or
(2) attempts to enforce a waiver that is void under
subdivision 1.
Sec. 2. [EFFECTIVE DATE.]
This article is effective July 1, 1987, except: section 1,
subdivision 1, is effective the day after final enactment; and
section 1, subdivision 2, applies to contracts, loan agreements,
and security agreements entered into after July 1, 1987.
ARTICLE 4
DESIGNATION OF HOMESTEADS AND SEPARATE AGRICULTURAL TRACTS
Section 1. Minnesota Statutes 1986, section 582.041,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION OF HOMESTEAD DESIGNATION.] If
a mortgage on real property is foreclosed and the property
contains a portion of the a homestead of the mortgagor,
the mortgagor person in possession of the real property must be
notified by the foreclosing mortgagee that the homestead may be
sold and redeemed separately from the remaining property. The
notice in subdivision 2 must be included in served with the
notice of foreclosure that is served on the mortgagor
under person in possession of the real property with the
requirements in section 580.04 580.03 or for a foreclosure by
action under chapter 581, in the summons and complaint served on
the person in possession of the real property.
Sec. 2. Minnesota Statutes 1986, section 582.041,
subdivision 2, is amended to read:
Subd. 2. [HOMESTEAD DESIGNATION NOTICE.] (a) The following
notice must be included in served with the foreclosure notice of
property containing a homestead that is served on the mortgagor
person in possession of the real property under section 580.04
580.03. The notice is not to be published. The notice must be
in 10-point capitalized letters.
"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE.,
YOU MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO
THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING
PROPERTY.
YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY,
THE SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE LEGAL
DESCRIPTION OF THE HOMESTEAD YOU HAVE DESIGNATED BY TEN BUSINESS
DAYS BEFORE THE DATE THE PROPERTY IS TO BE SOLD."
(b) The following notice must be served with the summons
and complaint in an action to foreclose a mortgage of property
containing a homestead under chapter 581. The notice must be in
10-point capitalized letters and is not to be published with the
summons if the summons is published.
"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE.,
YOU MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO
THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING
PROPERTY.
YOU MUST PROVIDE THE COURT WITH A LEGAL DESCRIPTION OF THE
HOMESTEAD YOU HAVE DESIGNATED."
Sec. 3. Minnesota Statutes 1986, section 582.041,
subdivision 3, is amended to read:
Subd. 3. [DESIGNATION OF HOMESTEAD PROPERTY.] The
mortgagor person who is homesteading the property must designate
a legal description of the homestead property to be sold
separately. The homestead property designated may include any
amount of the property. The designation must conform to local
zoning, include the dwelling occupied by the mortgagor person
homesteading the property, and be compact so that it does not
unreasonably affect the value of the remaining property.
The mortgagor person homesteading the property must serve a copy
of the designation on the foreclosing mortgagee, the sheriff,
and the county recorder or registrar of titles by ten business
days before the sale is scheduled, or for a foreclosure by
action under chapter 581, a copy of the designation must be
provided to the court.
Sec. 4. Minnesota Statutes 1986, section 582.041,
subdivision 5, is amended to read:
Subd. 5. [REDEMPTION.] The mortgagor A party who has a
right of redemption may redeem the designated homestead, the
remaining property, or the entire property including the
homestead. The period of redemption is the period for the
entire property including the designated homestead.
Sec. 5. [582.042] [FORECLOSURE OF AGRICULTURAL LAND THAT
INCLUDES SEPARATE TRACTS.]
Subdivision 1. [NOTIFICATION OF SEPARATE TRACT
DESIGNATION.] If a mortgage on real property that is
agricultural land is foreclosed and the property contains
separate tracts, the person in possession of the real property
must be notified by the foreclosing mortgagee that the separate
tracts may be sold and redeemed separately. The notice in
subdivision 2 must be served with the notice of foreclosure that
is served on the person in possession of the property under
section 580.03, or for a foreclosure by action under chapter
581, in the summons and complaint.
Subd. 2. [DESIGNATION NOTICE.] (a) The following notice
must be served with the foreclosure notice of the property that
is served on the person in possession of the real property under
section 580.03. The notice must be in 10-point capitalized
letters and the notice is not to be published.
"IF THE PROPERTY TO BE SOLD CONTAINS SEPARATE TRACTS, YOU
MAY REQUEST THAT THE TRACTS BE SOLD AND REDEEMED SEPARATELY.
EACH OF THE SEPARATE TRACTS MUST CONFORM TO LOCAL ZONING
ORDINANCES, MUST HAVE AN ENTRANCE BY DIRECT ACCESS TO A PUBLIC
ROAD OR BY PERMANENT EASEMENT, AND MUST NOT UNREASONABLY AFFECT
THE VALUE OF THE REMAINING PROPERTY.
YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY,
THE SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE LEGAL
DESCRIPTIONS OF EACH OF THE TRACTS YOU HAVE DESIGNATED TO BE
SOLD SEPARATELY BY TEN BUSINESS DAYS BEFORE THE DATE THE
PROPERTY IS TO BE SOLD."
(b) The following notice must be served with the summons
and complaint in an action to foreclose a mortgage of real
property containing separate tracts under chapter 581. The
notice must be in 10-point capitalized letters and is not to be
published with the summons if the summons is published.
"IF THE PROPERTY TO BE SOLD CONTAINS SEPARATE TRACTS, YOU
MAY REQUEST THAT THE TRACTS BE SOLD AND REDEEMED SEPARATELY.
EACH OF THE SEPARATE TRACTS MUST CONFORM TO LOCAL ZONING
ORDINANCES.
YOU MUST PROVIDE THE COURT WITH A COPY OF THE LEGAL
DESCRIPTIONS OF EACH OF THE TRACTS YOU HAVE DESIGNATED TO BE
SOLD SEPARATELY."
Subd. 3. [DESIGNATION OF SEPARATE TRACTS.] The person
being foreclosed must designate by legal description each of the
tracts to be sold separately. The tracts designated must be
previously recorded as separate tracts. Each of the separate
tracts must conform to local zoning ordinances, must have an
entrance by direct access to a public road or by permanent
easement, and must not unreasonably affect the value of the
remaining property. The person being foreclosed must serve a
copy of the legal descriptions of the tracts to be sold
separately on the foreclosing mortgagee, the sheriff, and the
county recorder or registrar of titles by ten business days
before the sale is scheduled, or for a foreclosure by action
under chapter 581, a copy of the legal descriptions of the
tracts to be sold separately must be provided to the court.
Subd. 4. [SALE OF PROPERTY.] If the sheriff receives a
designation of separate tracts under subdivision 3, or is
ordered by the court, the sheriff must offer and sell the tracts
separately.
Subd. 5. [REDEMPTION.] The designated tracts may be
redeemed separately or the entire foreclosed property may be
redeemed. The period of redemption is the period for the entire
property including all of the designated tracts.
Sec. 6. [EFFECTIVE DATE.]
This article is effective July 1, 1987, and applies to
foreclosures where the first publication occurs on or after July
1, 1987, and to foreclosures under chapter 581 where the first
service or publication occurs on or after July 1, 1987.
ARTICLE 5
AGRICULTURAL DATA COLLECTION TASK FORCE
Section 1. [REACTIVATION OF THE AGRICULTURAL COLLECTION
DATA TASK FORCE.]
The agricultural data collection task force created by Laws
1985, chapter 19, as reactivated and amended by Laws 1986,
chapter 398, article 11, is reactivated.
Sec. 2. Laws 1985, chapter 19, section 2, subdivision 2,
as amended by Laws 1986, chapter 398, article 11, section 2, is
amended to read:
Subd. 2. [DUTIES.] The duties of the data collection task
force are to:
(1) continue the uniform procedure for collecting data on
the financial status of agriculture in Minnesota;
(2) report the results of the program to the legislature no
later than December 31, 1986 of each fiscal year the data
collection task force is funded.
Sec. 3. Laws 1985, chapter 19, section 6, subdivision 6,
as amended by Laws 1986, chapter 398, article 11, section 4, is
amended to read:
Subd. 6. [EXPIRATION.] The data collection task force
expires January April 15, 1987 1989, or 15 days after reporting
to the legislature whichever date comes later, but in no
circumstance later than March June 1, 1987 1989.
Sec. 3. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 6
MINNESOTA GROWN
Section 1. Minnesota Statutes 1986, section 17.102, is
amended to read:
17.102 [MINNESOTA PRODUCTS, STATE LOGO OR GROWN LABEL.]
Subdivision 1. [ESTABLISHMENT AND USE OF LABEL.] (a) The
commissioner shall establish a "Minnesota grown" logo or
labeling statement for use in identifying food agricultural
products which that are Minnesota grown, processed, or
manufactured in this state. The commissioner shall promulgate
rules authorizing and governing the use of the logo or labeling
statement. The Minnesota grown logo or labeling statement may
be used on raw agricultural products that are not processed into
a different physical form or frozen, only if 80 percent of the
agricultural product is produced in this state.
(b) The Minnesota grown logo or labeling statement may not
be used without a license from the commissioner except that
wholesalers and retailers may use the Minnesota grown logo and
labeling statement for displaying and advertising products that
qualify for use of the Minnesota grown logo or labeling
statement.
Subd. 2. [LABEL DOES NOT REPLACE OTHER REQUIREMENTS.] The
logo or labeling statement shall does not supersede or replace
any federal label or grade standard which that is required by
law and its use shall be discretionary with a grower, processor,
or manufacturer.
Subd. 3. [LICENSE.] A person may not use the Minnesota
grown logo or labeling without an annual license from the
commissioner. The commissioner shall issue licenses for a fee
of $5. The commissioner shall charge a late fee of $10 for
renewal of a license that has expired.
Subd. 4. [MINNESOTA GROWN ACCOUNT.] The Minnesota grown
account is established as an account in the state treasury.
License fee receipts and penalties collected under this section
must be deposited in the state treasury and credited to the
Minnesota grown account. The money in the account is
continuously appropriated to the commissioner to implement and
enforce this section and to promote the Minnesota grown logo and
labeling.
Subd. 5. [PENALTY.] A person who is required to have a
license and uses the Minnesota grown logo or labeling without a
license after being notified by the commissioner that a license
is required is subject to a civil penalty up to $1,000.
Subd. 6. [RULES.] The commissioner shall promulgate rules
authorizing and licensing the use of the logo or labeling
statement.
Sec. 2. [MINNESOTA GROWN MATCHING ACCOUNT.]
Subdivision 1. [ESTABLISHMENT.] The Minnesota grown
matching account is established as a separate account in the
state treasury. The account shall be administered by the
commissioner of agriculture as provided in this section.
Subd. 2. [FUNDING SOURCES.] The Minnesota grown matching
account shall consist of contributions from private sources and
appropriations.
Subd. 3. [APPROPRIATIONS MUST BE MATCHED BY PRIVATE
FUNDS.] (a) Appropriations to the Minnesota grown matching
account may be expended only to the extent that they are matched
with contributions to the account from private sources as
provided in paragraph (b) for fiscal years 1988 and 1989.
(b) Private contributions shall be matched on a basis of
four dollars of the appropriation to each one dollar of private
contributions. Matching funds are not available after the
appropriation is encumbered. Private contributions made from
January 1, 1987, until the end of fiscal year 1987 shall be
matched by the appropriation for fiscal year 1988. Amounts that
are not matched in fiscal year 1988 are available to be matched
in fiscal year 1989.
Subd. 4. [EXPENDITURES.] The amount in the Minnesota grown
matching account that is matched by private contributions and
the private contributions are appropriated to the commissioner
of agriculture for promotion of products using the Minnesota
grown logo and labeling.
Sec. 3. [EFFECTIVE DATE.]
Section 2 is effective the day following final enactment.
ARTICLE 7
AGRICULTURAL PRESERVES
Section 1. Minnesota Statutes 1986, section 40A.03,
subdivision 2, is amended to read:
Subd. 2. [PLANS AND OFFICIAL CONTROLS.] By July 1 December
31, 1987, each pilot county selected under subdivision 1 shall
submit to the commissioner and to the regional development
commission in which it is located, if one exists, a proposed
agricultural land preservation plan and proposed official
controls implementing the plan. The commissioner, in
consultation with the regional development commission, shall
review the plan and controls for consistency with the elements
in this chapter and shall submit written comments to the county
within 90 days of receipt of the proposal. The comments must
include a determination of whether the plan and controls are
consistent with the elements in this chapter. The commissioner
shall notify the county of its determination. If the
commissioner determines that the plan and controls are
consistent, the county shall adopt the controls within 60 days
of completion of the commissioner's review.
Sec. 2. Minnesota Statutes 1986, section 40A.152,
subdivision 1, is amended to read:
Subdivision 1. [FEE.] A county that is a metropolitan
county under section 473.121, subdivision 4, has allowed
exclusive agricultural zones to be created under this
chapter, that has designated lands eligible for agricultural
preserves under section 473H.04, or that has elected to become
an agricultural land preservation pilot county, shall impose an
additional fee of $3 $5 per transaction on the recording or
registration of a mortgage subject to the tax under section
287.05 and an additional $3 $5 on the recording or registration
of a deed subject to the tax under section 287.21. One-half of
the fee must be deposited in a special conservation account to
be created in the county general revenue fund and one-half must
be transferred to the commissioner of revenue for deposit in the
state treasury and credited to the Minnesota conservation fund.
Sec. 3. Minnesota Statutes 1986, section 40A.152,
subdivision 2, is amended to read:
Subd. 2. [USE OF ACCOUNT.] Money from the county
conservation account must be spent by the county to reimburse
the county and taxing jurisdictions within the county for
revenue lost under the conservation tax credit under section
273.119 or the valuation of agricultural preserves under section
473H.10. If expenditures from other county funds for the same
purposes remain at least equal to the amount spent in the
previous county budget year, money remaining in the account
after those payments the reimbursements are made may be spent
for the following purposes:
(1) agricultural land preservation and conservation
planning and implementation of official controls under this
chapter or chapter 473H;
(2) soil conservation activities and enforcement of soil
loss ordinances;
(3) incentives for landowners who create exclusive
agricultural use zones;
(4) payments to municipalities within the county for the
purposes of clauses (1) to (3).
Sec. 4. Minnesota Statutes 1986, section 473H.10,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF TAX; STATE REIMBURSEMENT.] (a)
After having determined the market value of all land valued
according to subdivision 2, the assessor shall compute the
assessed value of those properties by applying the appropriate
classification percentages. When computing the rate of tax
pursuant to section 275.08, the county auditor shall include the
assessed value of land as provided in this clause.
(b) The county auditor shall compute the tax on lands
valued according to subdivision 2 and nonresidential buildings
by multiplying the assessed value times the total rate of tax
for all purposes as provided in clause (a).
(c) The county auditor shall then compute the maximum ad
valorem property tax on lands valued according to subdivision 2
and nonresidential buildings by multiplying the assessed value
times 105 percent of the previous year's statewide average mill
rate levied on property located within townships for all
purposes.
(d) The tax due and payable by the owner of preserve land
valued according to subdivision 2 and nonresidential buildings
will be the amount determined in clause (b) or (c), whichever is
less. If the gross tax in clause (c) is less than the gross tax
in clause (b), the state shall reimburse the taxing
jurisdictions for the amount of difference. Residential
buildings shall continue to be valued and classified according
to the provisions of sections 273.11 and 273.13, as they would
be in the absence of this section, and the tax on those
buildings shall not be subject to the limitation contained in
this clause.
The county may transfer money from the county conservation
account created in section 40A.152 to the county revenue fund to
reimburse the fund for the tax lost as a result of this
subdivision or to pay taxing jurisdictions within the county for
the tax lost. The county auditor shall certify to the
commissioner of revenue on or before June 1 the total amount of
tax lost to the county and taxing jurisdictions located within
the county as a result of this subdivision and the extent that
the tax lost exceeds funds available in the county conservation
account. Payments shall be made by the state as provided in
section 273.13, subdivision 15a to each of the affected taxing
jurisdictions if the county conservation account is insufficient
to make the reimbursement. There is annually appropriated from
the Minnesota conservation fund under section 40A.151 to the
commissioner of revenue an amount sufficient to make the
reimbursement provided in this subdivision. If the amount
available in the Minnesota conservation fund is insufficient,
the balance that is needed is appropriated from the general fund.
Sec. 5. Minnesota Statutes 1986, section 473H.17,
subdivision 1, is amended to read:
Subdivision 1. Land within an agricultural preserve shall
be maintained for agricultural production. The average maximum
density of residential structures within an agricultural
preserve shall not exceed one unit per 40 acres. The location
of any new structure shall conform to locally applicable zoning
regulations. Commercial and industrial uses shall not be
permitted except that small on-farm commercial or industrial
operations normally associated with and important to farming in
the area may be permitted by the as provided in section 7 after
the user is issued a permit by the authority. The authority
shall be responsible for enforcing this section.
Sec. 6. Minnesota Statutes 1986, section 473H.17, is
amended by adding a subdivision to read:
Subd. 1a. [ALLOWED COMMERCIAL AND INDUSTRIAL
OPERATIONS.] (a) Commercial and industrial operations are not
allowed on land within an agricultural preserve except:
(1) small on-farm commercial or industrial operations
normally associated with and important to farming in the
agricultural preserve area;
(2) storage use of existing farm buildings that does not
disrupt the integrity of the agricultural preserve; and
(3) small commercial use of existing farm buildings for
trades not disruptive to the integrity of the agricultural
preserve such as a carpentry shop, small scale mechanics shop,
and similar activities that a farm operator might conduct.
(b) "Existing" in paragraph (a), clauses (2) and (3), means
existing on August 1, 1987.
Sec. 7. Minnesota Statutes 1986, section 473H.17,
subdivision 2, is amended to read:
Subd. 2. [DENSITY RESTRICTION AFTER SUBDIVISION.] When a
separate parcel is created for a residential structure,
commercial, or industrial use permitted under subdivision 1, the
parcel shall cease to be an agricultural preserve unless the
eligibility requirements of section 473H.03 are met. However,
the residential unit separate parcel shall continue to be
included in remain under the maximum residential density
restrictions in effect for the original preserve at the time it
was placed into the preserve until the agricultural preserve
status for the original parcel ends.
Sec. 8. [GRANTS FOR OFFICIAL CONTROLS TO OTHER THAN PILOT
COUNTIES.]
Grants to eligible recipients other than the pilot counties
under section 40A.15, subdivision 4, are not available until the
pilot county program has been completed and a report on the
pilot county experiences has been presented to the legislature.
The report must be completed by July 1, 1988.
ARTICLE 8
AGRICULTURAL COMMODITIES UTILIZATION
Section 1. Minnesota Statutes 1986, section 17.03, is
amended by adding a subdivision to read:
Subd. 7. [AGRICULTURAL DIVERSIFICATION.] The commissioner
shall establish a program of agricultural diversification. The
commissioner must assist the horticultural industry, help
producers diversify farming operations, and coordinate state
agency efforts regarding agricultural diversification, after
consulting with farm groups, the University of Minnesota and
applicable institutions of higher learning. The commissioner
shall report to the governor and legislature annually on
activities and actions that should be taken in these matters.
Sec. 2. [17.50] [POLICY.]
The state must explore alternative uses for agricultural
products to enable the state's agricultural economy to reach its
full potential. The state must promote and encourage
cooperative efforts between public and private interests in
conducting basic research and disseminating the results on
agricultural commodity utilization.
ARTICLE 9
Section 1. [RESEARCH STUDY; LOW LIVESTOCK PRODUCTIVITY.]
Subdivision 1. [STUDY CRITERIA; SCOPE.] The University of
Minnesota or another institution or organization selected by the
commissioner of agriculture in consultation with the advisory
board established under subdivision 3 shall perform the study
required under this article. The study must provide
interdisciplinary analysis of issues frequently believed to be
electrical in nature that affect dairy and livestock
productivity levels or are manifested in poor animal health.
The study may include analysis of possible nonelectrical causes
for low productivity levels or poor animal health at the study
sites in order to help isolate the specific cause or causes of
the problem at the sites. The study must be conducted on
farmstead sites within the state as determined appropriate by
the study team. The interdisciplinary team studying the
selected sites must consist of researchers from the University
of Minnesota or elsewhere who have expertise in the following
fields: (1) animal sciences; (2) veterinary medicine; (3)
electrical power distribution; (4) farmstead electrification;
and (5) any other discipline or field deemed appropriate by
members of the interdisciplinary team.
Subd. 2. [STUDY SITE SELECTION.] The farmstead sites to be
studied must be selected by the advisory board established under
subdivision 3. Study sites must be selected from among
farmsteads whose operators request participation in the study.
For three or more of the sites, preference must be given to
farmsteads in dairy production areas which have experienced
persistent problems with low milk production levels and poor
dairy herd health and where a traditional study of stray voltage
has failed to identify or solve the problem.
Subd. 3. [ADVISORY BOARD: COMPOSITION, APPOINTMENT,
DUTIES.] Not later than 30 days after the effective date of this
act the governor, in consultation with the commissioner of
agriculture, shall appoint an advisory board of nine members who
shall determine farmstead sites to be included in the study.
The advisory board shall meet at least quarterly to review
progress reports on the study. Members of the advisory board
shall include farmers experiencing conditions similar to those
to be studied (membership on the advisory board does not
preclude study of a farmstead operated by a member); farmers
whose problems with low productivity levels or poor livestock
health have been resolved; other farmers; a member of the
Minnesota pollution control agency board; a representative of a
cooperative electric association; a representative of an
investor-owned electric utility which serves rural areas of
Minnesota; a practicing veterinarian; and a representative of
the University of Minnesota. Members of the advisory board
shall serve without compensation but must be reimbursed by the
commissioner of agriculture for mileage and actual expenses for
meals related to service on the advisory board. The advisory
board expires upon submission of the report required under
subdivision 4.
Subd. 4. [REPORT.] The interdisciplinary study team shall
prepare and deliver to the commissioner of agriculture a report
on the results of the study. If feasible, the study team shall
also submit the results of the study in a form appropriate for
publication in one or more recognized scientific journals. The
commissioner shall report results of the study to the house and
senate committees on agriculture not later than February 1, 1989.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 10
AGRICULTURE AND TRADE
Section 1. Minnesota Statutes 1986, section 17.03, is
amended by adding a subdivision to read:
Subd. 8. [COOPERATION WITH MINNESOTA TRADE OFFICE.] The
commissioner of agriculture, the commissioner of trade and
economic development, and the director of the Minnesota trade
office shall cooperate with each other to promote the beneficial
agricultural interests of the state. The commissioner of trade
and economic development and the director of the Minnesota trade
office have primary responsibility for promoting state
agricultural interests to international markets. The
commissioner of agriculture has primary responsibility for
promoting the agricultural interests of producers, promoting
state agricultural markets, and promoting agricultural interests
of the state in cooperative production and marketing efforts
with other states and the United States Department of
Agriculture.
Sec. 2. Minnesota Statutes 1986, section 17.101,
subdivision 1, is amended to read:
Subdivision 1. [DEPARTMENTAL DUTIES.] For the purposes of
expanding, improving, and developing the markets for products of
Minnesota agriculture, the commissioner shall encourage and
promote the marketing of these products by means of:
(a) advertising Minnesota agricultural products;
(b) assisting state agricultural commodity organizations;
(c) developing methods to increase processing and marketing
of agricultural commodities including commodities not being
produced in Minnesota on a commercial scale, but which may have
economic potential in national and international markets;
(d) investigating and identifying new marketing technology
and methods to enhance the competitive position of Minnesota
agricultural products;
(e) evaluating livestock marketing opportunities;
(f) assessing and developing national and international
markets for Minnesota agricultural products;
(g) studying the conversion of raw agricultural products to
manufactured products including ethanol;
(h) hosting the visits of foreign trade teams to Minnesota
and defraying the teams' expenses;
(i) assisting Minnesota agricultural businesses desiring to
sell their products in national and international markets; and
(j) other activities the commissioner deems appropriate to
promote Minnesota agricultural products in national and
international markets, provided that the activities do not
duplicate programs or services provided by the Minnesota trade
office.
Sec. 3. Minnesota Statutes 1986, section 17.103, is
amended to read:
17.103 [TRADE AND EXPORT DEVELOPMENT.]
The commissioner of agriculture shall encourage and develop
commerce with other states and foreign countries and devise ways
and means of removing trade barriers hampering the free flow of
commerce between this and other states.
Sec. 4. [116J.967] [COMMISSIONER'S TRADE PROMOTION
DUTIES.]
Subdivision 1. [GENERALLY.] (a) The commissioner shall
promote, develop, and facilitate trade and foreign investment in
Minnesota. In furtherance of these goals, and in addition to
the powers granted by section 116J.035, the commissioner may:
(1) locate, develop, and promote international markets for
Minnesota products and services;
(2) arrange and lead trade missions to countries with
promising international markets for Minnesota goods, technology,
services, and agricultural products;
(3) promote Minnesota products and services at
international trade shows;
(4) organize, promote, and present international trade
shows featuring Minnesota products and services;
(5) host trade delegations and assist foreign traders in
contacting appropriate Minnesota businesses and investments;
(6) develop contacts with Minnesota businesses and gather
and provide information to assist them in locating and
communicating with international trading or joint venture
counterparts;
(7) provide information, education, and counseling services
to Minnesota businesses regarding the economic, commercial,
legal, and cultural contexts of international trade;
(8) provide Minnesota businesses with international trade
leads and information about the availability and sources of
services relating to international trade, such as export
financing, licensing, freight forwarding, international
advertising, translation, and custom brokering;
(9) locate, attract, and promote foreign investment and
business development in Minnesota to enhance employment
opportunities in Minnesota;
(10) provide foreign businesses and investors desiring to
locate facilities in Minnesota information regarding sources of
governmental, legal, real estate, financial, and business
services;
(11) undertake activities to support the world trade
center; and
(12) enter into contracts or other agreements with private
persons and public entities to carry out the purposes of
promoting international trade and attracting investment from
foreign countries to Minnesota and to carry out this section,
without regard to sections 16B.07 and 16B.09.
(b) The programs and activities of the commissioner of
energy and economic development and the Minnesota trade office
may not duplicate programs and activities of the commissioner of
agriculture.
Subd. 2. [AGRICULTURAL PROMOTION.] The commissioner of
trade and economic development and the director of the Minnesota
trade office shall cooperate and consult with the commissioner
of agriculture in promoting the beneficial agricultural
interests of the state. The commissioner of trade and economic
development and the director of the Minnesota trade office shall
have the primary responsibility for promoting state agricultural
interests to international markets. The commissioner of
agriculture has primary responsibility for promoting the
agricultural interests of producers, promoting state
agricultural markets, and promoting the agricultural interests
of the state in cooperative production and marketing efforts
with other states and the United States Department of
Agriculture.
Sec. 5. [236A.02] [ADMINISTRATIVE SUPPORT.]
The commissioner of agriculture in consultation with the
director of the Minnesota trade office shall provide
administrative staff and support to the Interstate Agricultural
Grain Marketing Commission members from this state.
Sec. 6. [REORGANIZATION.]
The divisions and offices established within the department
of trade and economic development include the Minnesota trade
office consisting of the Minnesota trade office in the
department of agriculture relating to international trade, but
do not include the functions and positions of the office
relating to domestic agricultural trade.
Sec. 7. [REPEALER.]
Minnesota Statutes 1986, section 17.03, subdivision 5, is
repealed.
Sec. 8. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall renumber each section of
Minnesota Statutes in column A with the corresponding number in
column B. The revisor shall also make necessary cross reference
changes consistent with the renumbering and change the words
"commissioner of agriculture" or similar words to "commissioner
of the department of trade and economic development" or similar
words.
Column A Column B
17.103 116J.970
17.104 116J.971
17.105 116J.972
ARTICLE 11
AGRICULTURE DEPARTMENT
Section 1. Minnesota Statutes 1986, section 17B.15,
subdivision 1, is amended to read:
Subdivision 1. [ADMINISTRATION; APPROPRIATION.] The fees
for inspection and weighing shall be fixed by the commissioner
and be a lien upon the grain. The commissioner shall set fees
for all inspection and weighing in an amount adequate to pay the
expenses of carrying out and enforcing the purposes of sections
17B.01 to 17B.23, including the portion of general support costs
and statewide indirect costs of the agency attributable to that
function, with a reserve sufficient for up to six months, and
including repayment by the department of any amount appropriated
from the general fund to establish the grain inspection and
weighing account. The commissioner shall review the fee
schedule twice each year. Fee adjustments are not subject to
chapter 14. Payment shall be required for services rendered.
If the grain is in transit, the fees shall be paid by the
carrier and treated as advance charges, and, if received for
storage, the fees shall be paid by the warehouse operator, and
added to the storage charges.
All fees collected and all fines and penalties for
violation of any provision of this chapter shall be deposited in
the grain inspection and weighing account, which is created in
the state treasury for carrying out the purpose of sections
17B.01 to 17B.23. The money in the account is annually
appropriated to the commissioner of agriculture to administer
the provisions of sections 17B.01 to 17B.23.
Sec. 2. Minnesota Statutes 1986, section 18.023,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] As used in subdivisions 1 to
12 the terms defined in this subdivision shall have the meanings
given them.
(a) "Metropolitan area" means the area comprising the
counties of Hennepin, Ramsey, Anoka, Dakota, Washington, Scott
and Carver.
(b) "Commissioner" means the commissioner of agriculture.
(c) "Municipality" means any home rule charter or statutory
city or any town exercising municipal powers pursuant to section
368.01, or any general or special law, located in the
metropolitan area; or any special park district as organized
under chapter 398; or any special purpose park and recreation
board organized under the city charter of a city of the first
class located in the metropolitan area; or any county in the
metropolitan area for the purposes of county owned property or
any portion of a county located outside the geographic
boundaries of a city or town exercising municipal powers; and
any municipality or county located outside the metropolitan area
with an approved disease control program.
(d) "Shade tree disease" means Dutch elm disease or, oak
wilt disease, or any disorder affecting the growth and life of
shade trees.
(e) "Wood utilization or disposal system" means facilities,
equipment or systems used for the removal and disposal of
diseased shade trees which includes the collection,
transportation, processing or storage of wood and which aids in
the recovery of materials or energy from wood.
(f) "Approved disease control program" means the municipal
plan as approved by the commissioner to control shade tree
disease.
(g) "Disease control area" means an area approved by the
commissioner within which a municipality will conduct an
approved disease control program.
(h) "Sanitation" means the identification, inspection,
disruption of a common root system, girdling, trimming, removal
and disposal of dead or diseased wood of elm or oak shade trees,
including subsidies for trees removed pursuant to subdivision 4,
on public or private property within a disease control area.
(i) "Reforestation" means the replacement of shade trees
removed from public property and the planting of any species of
tree as part of a municipal disease control program. For
purposes of this clause, "public property" shall include private
property within five feet of the boulevard or street terrace in
any city which has enacted an ordinance on or before January 1,
1977, that prohibits or requires a permit for the planting of
trees in the public right-of-way.
Sec. 3. Minnesota Statutes 1986, section 19.58,
subdivision 1, is amended to read:
Subdivision 1. [ENTRY PERMIT.] No person may bring into
this state any bees on comb, including nuclei, or used bee
equipment without an entry permit issued by the commissioner. A
person who wishes to bring any bees on comb or used bee
equipment into the state shall apply for an entry permit at
least 60 days before the date of entry. The 60-day requirement
may be waived for a hobbyist beekeeper who intends to become a
resident of Minnesota and who brings ten colonies or less into
the state.
Ten days before entry, any person required to obtain an
entry permit shall furnish to the commissioner a copy of a valid
certificate of inspection signed by a responsible official of
the state where the bees or equipment originated. The
certificate must be based on either an inspection or an
affidavit. A person may not bring into the state any bees on
comb including nuclei, combless bees, or used bee equipment from
any county or parish where honey bee trachael mites or
Africanized bees have been found unless it is demonstrated to
the satisfaction of the commissioner that there will be no risk
of introduction either of trachael mites or Africanized bees
into the state. Bees or equipment brought into the state in
violation of this subdivision are a public nuisance and may be
destroyed without notice by the commissioner.
This subdivision does not apply to a common carrier
transporting bees or used bee equipment from a point of origin
outside of the state to a destination outside of the state.
Sec. 4. Minnesota Statutes 1986, section 28A.08, is
amended to read:
28A.08 [LICENSE FEES; PENALTIES.]
The fees for licenses and the License fees, penalties for
late renewal of licenses, and penalties for not obtaining a
license before conducting business in food handling that are set
in this section apply to the sections named except as provided
under section 28A.09. Except as specified herein, bonds and
assessments based on number of units operated or volume handled
or processed which are provided for in said laws shall not be
affected, nor shall any penalties for late payment of said
assessments, nor shall inspection fees, be affected by this
chapter. The late penalty may be waived by the commissioner.
Penalties
Type of food handler License Penalty No
Fee Late License
Renewal
1. Retail food handler
(a) Having gross sales of
less than $50,000 for
the immediately previous
license or fiscal year $ 25 $ 40 $10 $ 13
(b) Having $50,000 to $250,000
gross sales for the immediately
previous license or fiscal year $ 50 $ 75 $13 $ 25 $ 25
(c) Having $250,000 to $1,000,000
gross sales for the immediately
previous license or fiscal year $100 $125 $25 $ 50 $ 50
(d) Having over $1,000,000 gross
sales for the immediately
previous license or fiscal year $200 $250 $50 $ 75 $100
2. Wholesale food handler
(a) Having gross sales or
service of less than $250,000
for the immediately previous
license or fiscal year $100 $25 $ 50
(b) Having $250,000 to
$1,000,000 gross sales or
service for the immediately
previous license or fiscal year $150 $38 $ 75
(c) Having over $1,000,000
gross sales or service for the
immediately previous license
or fiscal year $200 $50 $100
3. Food broker $ 50 $ 75 $13 $ 25 $ 25
4. Wholesale food processor
or manufacturer
(a) Having gross sales of less
than $250,000 for the immediately
previous license or fiscal year $150 $200 $38 $ 50 $ 75
(b) Having $250,000 to $1,000,000
gross sales for the immediately
previous license or fiscal year $200 $275 $50 $ 75 $100
(c) Having over $1,000,000
gross sales for the immediately
previous license or fiscal year $250 $375 $63 $100 $125
5. Wholesale food processor of
meat or poultry products
under supervision of the
U. S. Department of Agriculture
(a) Having gross sales of less
than $250,000 for the immediately
previous license of fiscal year $ 75 $100 $19 $ 25 $ 38
(b) Having $250,000 to $1,000,000
gross sales for the immediately
previous license or fiscal year $ 90 $150 $23 $ 50 $ 45
(c) Having over $1,000,000
gross sales for the immediately
previous license or fiscal year $105 $175 $27 $ 50 $ 53
6. Wholesale food manufacturer
having the permission of the
commissioner to use the name
Minnesota farmstead cheese $ 30 $10 $ 15
Sec. 5. Minnesota Statutes 1986, section 31.101,
subdivision 3, is amended to read:
Subd. 3. Federal pesticide chemical regulations and
amendments thereto in effect on April 1, 1982 1987 adopted under
authority of the Federal Insecticide, Fungicide and Rodenticide
Act, as provided by United States Code, title 7, chapter 6, are
the pesticide chemical rules in this state. Such rules may be
amended by the commissioner proceeding in accordance with the
administrative procedure act.
Sec. 6. Minnesota Statutes 1986, section 31.101,
subdivision 4, is amended to read:
Subd. 4. Federal food additive regulations and amendments
thereto in effect on April 1, 1982 1987, as provided by Code of
Federal Regulations, title 21, parts 170 to 199, are the food
additive rules in this state. Such rules may be amended by the
commissioner proceeding in accordance with the administrative
procedure act.
Sec. 7. Minnesota Statutes 1986, section 31.101,
subdivision 5, is amended to read:
Subd. 5. Federal color additive regulations and amendments
thereto in effect on April 1, 1982 1987, as provided by Code of
Federal Regulations, title 21, parts 70 to 82, are the color
additive rules in this state. Such rules may be amended by the
commissioner proceeding in accordance with the administrative
procedure act.
Sec. 8. Minnesota Statutes 1986, section 31.101,
subdivision 6, is amended to read:
Subd. 6. Federal special dietary use regulations and
amendments thereto in effect on April 1, 1982 1987, as provided
by Code of Federal Regulations, title 21, parts 104 and 105, are
the special dietary use rules in this state. Such rules may be
amended by the commissioner proceeding in accordance with the
administrative procedure act.
Sec. 9. Minnesota Statutes 1986, section 31.101,
subdivision 7, is amended to read:
Subd. 7. Federal regulations and amendments thereto in
effect on April 1, 1982 1987 adopted under the Fair Packaging
and Labeling Act, as provided by United States Code, title 15,
sections 1451 to 1461, are the rules in this state. Such rules
may be amended by the commissioner proceeding in accordance with
the administrative procedure act; provided that the commissioner
shall not adopt amendments to such rules or adopt other rules
which are contrary to the labeling requirements for the net
quantity of contents required pursuant to section 4 of the Fair
Packaging and Labeling Act and the regulations promulgated
thereunder.
Sec. 10. Minnesota Statutes 1986, section 31.101,
subdivision 8, is amended to read:
Subd. 8. Applicable federal regulations including
recodification contained in Code of Federal Regulations, title
21, parts 0-1299, Food and Drugs, in effect April 1, 1982 1987,
and not otherwise adopted herein, also are adopted as food rules
of this state. Such rules may be amended by the commissioner in
accordance with the administrative procedure act.
Sec. 11. Minnesota Statutes 1986, section 32.394,
subdivision 8, is amended to read:
Subd. 8. [EXPLORATORY PRELIMINARY INSPECTIONS GRADE A
INSPECTION FEES.] Any A processor or marketing organization of
milk, milk products, sheep milk, or goat milk who wishes to
learn about and acquaint producers with market Grade A
requirements may make a request to the commissioner for
exploratory inspections and meetings for this purpose. Upon
receipt of such request, the commissioner at a convenient time
shall cause such exploratory inspections to be made and such
meetings to be held as are necessary to acquaint said processor
and producers with such requirements. If, after such
exploratory inspections are made and such meetings are held and
when in the processor's opinion the processor's field service
has brought producers into compliance with said requirements,
said processor wishes further inspection service, the processor
shall so milk or use the Grade A label must apply on a form
furnished by for Grade A inspection service from the
commissioner, stating the number of farms to be inspected. Such
applications shall be accompanied by a fee payable to the state
treasurer in an amount of not less than $50 and not more than
$300, which fee is to be charged for preliminary inspection
prior to continuous inspection, and assessments over $50 are to
be determined by charging $1 for each farm over 50, but shall
not exceed $300 if more than 300 farms are inspected; provided
that, if the plant and farms are accepted for continuous
inspection, this charge shall be made only once. If the
preliminary inspection discloses that the processor is eligible
for use of the Grade A label on products and before the
processor so labels said products, the processor shall apply for
continuous inspection on a form furnished by the commissioner
and shall hold a Grade A permit. Such application shall be
accompanied by a fee of not less than $100 nor more than $500
per plant and of not less than $15 nor more than $50 per farm,
said fee to be paid annually. A pasteurization plant requesting
Grade A inspection service must hold a Grade A permit and pay an
annual inspection fee of no more than $500. For Grade A farm
inspection service, the fee must be no more than $66 per farm,
paid annually by the processor or by the marketing organization
on behalf of its patrons. For a farm requiring a reinspection
in addition to the required biannual inspections, an additional
fee of no more than $33 per reinspection must be paid by the
processor or by the marketing organization on behalf of its
patrons. If the commissioner deems it necessary to more nearly
meet the cost of the service, the commissioner may annually
adjust the assessments within the limits set herein in this
subdivision.
Sec. 12. Minnesota Statutes 1986, section 32.394,
subdivision 8b, is amended to read:
Subd. 8b. [MANUFACTURING GRADE FARM CERTIFICATION.] A
processor or marketing organization of milk, milk products,
sheep milk, or goat milk, other than Grade A, who wishes to
obtain market other than Grade A milk must apply for a
manufacturing grade farm certification, shall make a request
to inspection from the commissioner for a farm certification
inspection. A processor who requests and receives a farm
certification inspection shall pay a fee to the commissioner for
the certification of the milk supply. A manufacturing plant
that pasteurizes milk or milk byproducts must pay an annual fee
based on the number of pasteurization units. This fee must not
exceed $140 per unit. The fee for farm certification inspection
must not be more than $33 per farm to be paid annually by the
processor or by the marketing organization on behalf of its
patrons. For a farm requiring more than the one annual
inspection required for certification, an additional fee of no
more than $33 must be paid by the processor or by the marketing
organization on behalf of its patrons. The fee shall must be
set by the commissioner in an amount necessary to meet the cost
of the service for farm certification, which fee shall but must
not exceed 50 percent of the fees charged for Grade A
permits the limits in this subdivision.
Sec. 13. Minnesota Statutes 1986, section 32.394,
subdivision 9, is amended to read:
Subd. 9. [PAYMENTS; REFUNDS; DISPOSITION.] The amount of
such assessments shall be Fees are payable by the a processor
on or before or marketing organization by July 1, of each year
for Grade A, and by January 1 of each year for manufacturing
grade, and if not paid on or before July 31, following within 30
days of the due date, the service shall must be discontinued,
and permission to market manufacturing grade or Grade A milk or
milk products or use the Grade A label shall must be withdrawn;
provided, that such. A processor may terminate such payment and
such service without loss of the Grade A label if written notice
of such that intention is given prior to the due date of the
payment of said an assessment and if the continuous inspection
of said the plant and farms is assumed by a city whose milk
control ordinance is substantially equivalent to Minnesota law
and rule and is enforced with equal effectiveness. When such
written notice is given by the processor on or before December
31 preceding the due date, that portion of the assessment for
the period January 1 through June 30, immediately following,
shall be refunded to the processor If a farm discontinues the
production of milk within six months of the billing date, a
request for a refund based on inspection services not received
may be made by the processor or by the marketing organization on
behalf of its patrons. This request must be made in writing by
July 1 for manufacturing grade, or by December 31 for Grade A,
and on approval by the commissioner refunds must be made to the
processor or marketing organization.
The fees for services performed by the activities of this
section shall must be deposited in the state treasury and shall
constitute a separate account to be known as the milk inspection
service account, which is hereby created, set aside, and
appropriated as a revolving fund to be used to help to defray
the cost of administration, refunds and expenses of the
preliminary and continuous milk inspection services and shall be
is in addition to and not in substitution for the sums
appropriated or otherwise made available for this purpose to the
department of agriculture.
Sec. 14. Minnesota Statutes 1986, section 40.071, is
amended to read:
40.071 [ADDITIONAL POWERS OF A DISTRICT.]
In addition to powers and duties otherwise provided by law,
a soil and water conservation district may procure liability
insurance as provided in section 466.06, automobile insurance on
personal cars while used on official business, insurance on the
contents of district offices up to a maximum of $7,500 per
office, and workers' compensation insurance, or may require the
county or counties in which the district is located to include
the district in the county's or counties' insurance coverage for
these purposes.
Sec. 15. Minnesota Statutes 1986, section 223.17,
subdivision 1, is amended to read:
Subdivision 1. [LICENSES.] An application for a grain
buyer's license must be filed with the commissioner and the
license issued before any grain may be purchased. The
commissioner must provide application forms and licenses that
state the restrictions and authority to purchase and store grain
under the license being applied for and issued. The types
categories of grain buyers' licenses are:
(a) private grain warehouse operator's license;
(b) public grain warehouse operator's license; and
(c) independent grain buyer's license.
The applicant for a grain buyer's license shall identify
all grain buying locations owned or controlled by the grain
buyer and all vehicles owned or controlled by the grain buyer
used to transport purchased grain. Every applicant for a grain
buyer's license shall have a permanent established place of
business at each licensed location. An "established place of
business" means a permanent enclosed building, including a house
or a farm, either owned by the applicant or leased by the
applicant for a period of at least one year, and where the
books, records, and files necessary to conduct the business are
kept and maintained. The commissioner may maintain information
on grain buyers by categories including, but not limited to, the
categories provided in clauses (a) to (c) and grain buyers that
are licensed to purchase grain using trucks but that do not have
a public or private warehouse license.
Sec. 16. Minnesota Statutes 1986, section 308.58,
subdivision 2, is amended to read:
Subd. 2. [WHERE FILED; EVIDENCE.] The articles must be
subscribed by the several incorporators and acknowledged by one
of them before an officer authorized by the law of this state to
take and certify acknowledgment of deeds and conveyances; and
shall be filed in the office of the secretary of state, and when
so filed such incorporation shall be complete and a certified
copy of the articles shall be filed with the commissioner of
agriculture. The articles, or certified copies thereof, shall
be received in all the courts of this state, and other places,
as prima facie evidence of the facts contained therein and of
the due incorporation of such association.
Sec. 17. Minnesota Statutes 1986, section 308.62, is
amended to read:
308.62 [DIRECTORS; ELECTION.]
The affairs of the association shall be managed by a board
of not less than five directors, elected by the members or
stockholders from their own number, except as hereinafter
provided. The bylaws may provide that the territory in which
the association has members shall be divided into districts and
that the directors shall be elected according to such
districts. In such case the bylaws shall specify the number of
directors to be elected by each district, the manner and method
of apportioning or reapportioning the directors, and of
districting or redistricting the territory covered by the
association. The bylaws may provide that primary elections
should be held in each district to elect the directors
apportioned to such districts, and the result of all such
primary elections must be ratified by the next regular meeting
of the association, or may be considered final by the
association.
The bylaws shall provide that one or more directors may be
appointed by the commissioner or any other public official or
commission. The director or directors so appointed need not be
members or stockholders of the association, but shall have the
same powers and rights as other directors. Such directors shall
not number more than one-fifth of the entire number of directors.
An association may provide a fair remuneration for the time
actually spent by its officials and directors in its service.
No director, while serving in office, shall be a party to a
contract for profit with the association differing in any way
from the business relations accorded regular members or holders
of common stock of the association, or to any other kind of
contract differing from terms generally current in that district.
The bylaws may provide that no director shall occupy any
position in the association, except the president and secretary
on regular salary or substantially full-time pay.
The bylaws may provide for an executive committee and may
allot to such committee all the functions and powers of the
board of directors, subject to the general direction and control
of the board.
When a vacancy on the board of directors occurs, other than
by expiration of term, the remaining members of the board, by a
majority vote, shall fill the vacancy, unless the bylaws provide
for an election of directors by district. In such a case the
board of directors shall immediately call a special meeting of
the members or stockholders in that district to fill the vacancy.
Sec. 18. Minnesota Statutes 1986, section 308.77, is
amended to read:
308.77 [ASSOCIATION HERETOFORE ORGANIZED MAY ADOPT
PROVISIONS.]
Any corporation or association organized under previously
existing statutes may, by a majority vote of its stockholders or
members, be brought under the provisions of sections 308.53 to
308.85 by limiting its membership and adopting the other
restrictions, as provided therein. It shall make out, in
duplicate, a statement signed and sworn to by its directors,
upon forms supplied by the commissioner of agriculture, to the
effect that the corporation or association has, by a majority
vote of its stockholders or members, decided to accept the
benefits and be bound by the provisions of sections 308.53 to
308.85. Articles of incorporation shall be filed as required in
section 308.58, except that they shall be signed by the members
of the board of directors. The filing fee shall be the same as
for filing an amendment to the articles of incorporation. Where
any association or corporation may be incorporated or brought
under sections 308.53 to 308.85, all contracts heretofore made
by or on behalf of the same by the promoters thereof in
anticipation of such association becoming incorporated under the
laws of this state or otherwise, including such contracts made
by or in the name of some corporation organized elsewhere, and
when same would have been valid, if entered into subsequent to
the passage of Laws 1923, chapter 264, are hereby accepted and
validated as if made after that date. Cooperative corporations
and associations heretofore or hereafter organized and doing
business under the existing law or laws supplementary thereto or
amendatory thereof shall continue to be governed thereby unless
and until they shall elect to be brought under the provisions of
sections 308.53 to 308.85 in the manner provided in this section.
Sec. 19. Minnesota Statutes 1986, section 308.83, is
amended to read:
308.83 [GOVERNOR TO ACT UPON REPORT.]
The governor shall have the power to remove from office any
officer or director of any association, such removal to be upon
such notice to the association and to the officers or directors
thereof as shall be prescribed by the governor. In case the
commissioner has decided that the further operation of any such
association is deemed hazardous to the public interest, and so
reports to the governor, the governor may refer the matter of
winding up the affairs of such association to the attorney
general and it shall thereupon be the duty of the attorney
general to proceed to wind up the affairs of any such
association in the manner provided by law for winding up the
business of insolvent banking institutions in the state.
Sec. 20. Minnesota Statutes 1986, section 308.85, is
amended to read:
308.85 [FEES.]
For filing articles of incorporation, or amendments
thereto, any association organized under sections 308.29 to
308.84 308.85 shall pay $15.
Sec. 21. [REPEALER.]
Minnesota Statutes 1986, section 18.023, subdivision 1a, is
repealed.
Sec. 22. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 12
APPROPRIATIONS
Section 1. [AGRICULTURAL DATA COLLECTION TASK FORCE.]
$50,000 is appropriated from the general fund to the
legislative advisory commission to fund the activities of the
agricultural data collection task force to be available until
June 30, 1989.
Sec. 2. [MINNESOTA GROWN MATCHING ACCOUNT.]
$360,000 is appropriated from the general fund to the
Minnesota grown matching account to be available in the amounts
for the fiscal years indicated
1988 1989
$160,000 $200,000
Sec. 3. [METROPOLITAN AGRICULTURAL PRESERVE DEFICIENCY.]
The amount necessary to pay the deficiency in reimbursement
under Minnesota Statutes, section 473H.10, subdivision 3, in
fiscal year 1987 is appropriated to the commissioner of revenue
from the Minnesota conservation fund to reimburse counties. The
amount of the deficiency must be certified by the county auditor
on or before June 1, 1988, with the amount of tax lost in fiscal
year 1988.
Sec. 4. [AGRICULTURAL LAND PRESERVATION PLANNING GUIDE.]
$30,000 is appropriated from the general fund to the
commissioner of agriculture to provide technical assistance for
agricultural land preservation and conservation activities,
including preparation and publication of an agricultural land
preservation planning handbook for use by local units of
government, and for a study and report on the costs of providing
public services to agricultural and other land uses.
Sec. 5. [INTERSTATE COMPACT ON GRAIN MARKETING.]
$50,000 is appropriated from the general fund to the
commissioner of agriculture for payment of financing the
operations of the state's portion of the interstate compact on
grain marketing.
Sec. 6. [SUSTAINABLE AGRICULTURE CHAIR.]
Subdivision 1. [APPROPRIATION.] $75,000 is appropriated
from the general fund to the University of Minnesota to
establish an endowment for a chair in sustainable agriculture
subject to the conditions of subdivision 2. This appropriation
is to be included in the nonstate sources of endowment under
section 137.022, subdivision 3. Sustainable agriculture
represents the best aspects of traditional and modern
agriculture by utilizing a fundamental understanding of nature,
as well as the latest scientific advances to create integrated,
self-reliant, resource conserving practices that enhance the
enrichment of the environment and provide short- and long-term
productive agriculture.
Subd. 2. [PRIVATE CONTRIBUTIONS REQUIRED.] The
appropriation under subdivision 1 is not effective until
sufficient private contributions or pledges have been made so
that the private contributions and pledges, plus the
appropriation under subdivision 1, are sufficient to establish
the endowment for a chair in sustainable agriculture. The
appropriation cancels on June 30, 1992, if sufficient private
contributions and pledges have not been made.
Sec. 7. [SWEET SORGHUM RESEARCH.]
$300,000 is appropriated from the general fund to the state
board of vocational technical education for a demonstration
project at the Mankato vocational technical institute involving
butanol and ethanol production from sweet sorghum, for the
biennium ending June 30, 1989.
Sec. 8. [WILD RICE RESEARCH.]
$38,000 is appropriated from the general fund to the
University of Minnesota for the agricultural experimental
station to conduct wild rice research to be available until June
30, 1989, as follows:
(a) for experiments on use of fertilizers $ 8,000
(b) for experiments on the influence of
rotation and residue removal on
diseases, weeds, and yield $ 8,000
(c) to evaluate cost advantages and
effect on yields of leveling and
tiling $ 6,000
(d) to conduct controlled-site experiments
into the advantages of existing and
future varieties of wild rice $16,000
Sec. 9. [STATE BOARD OF VOCATIONAL TECHNICAL EDUCATION.]
$1,450,000 is appropriated from the general fund to the
state board of vocational technical education for the biennium
ending June 30, 1989, to provide the following services:
(1) support staff for farm business
management instructors $ 160,000
(2) additional farm business and
small business management
programs $1,175,500
(3) workshops for farmers for
marketing, alternative
enterprises, and financial
management and staff
development workshops $ 50,000
(4) beginning farmer programs $ 64,500
Sec. 10. [RURAL FINANCE AUTHORITY.]
Subdivision 1. [RURAL FINANCE AUTHORITY.] $300,000 is
appropriated from the general fund to the rural finance
authority for administering the beginning farmer loan program.
The complement of the authority is increased by three
positions.
Subd. 2. [DEBT SERVICE.] $270,000 is appropriated from the
general fund to the rural finance authority for debt service on
general obligation bonds issued for the beginning farmer program.
Sec. 11. [AGRICULTURAL PROMOTION AND MARKETING.]
$858,000 is appropriated from the general fund to the
commissioner of agriculture in the fiscal years indicated for
promoting the agricultural interests of producers, promoting
state agricultural markets, and promoting the agricultural
interests of the state in cooperative production and marketing
with other states.
1988 1989
$408,000 $450,000
The complement of the department of agriculture is
increased by nine positions to reflect the programs and
positions remaining in the department of agriculture.
Sec. 12. [DAIRY SHEEP DEMONSTRATION PROJECT.]
$35,000 is appropriated from the general fund to the
University of Minnesota for purposes of continuing the dairy
sheep experiment project being performed at the Rosemount
Experiment Station.
Sec. 13. [PSEUDORABIES CONTROL.]
$185,000 is appropriated from the general fund to the board
of animal health in the fiscal years indicated, to be available
until June 30, 1989, to be used for a control program for
pseudorabies in swine in which the state will pay costs of a
program for testing of blood samples. Blood samples must be
drawn from swine herds by practicing veterinarians. The program
must be coordinated by board of animal health personnel. This
appropriation is in addition to other appropriations to the
board of animal health for pseudorabies control.
Sec. 14. [APPROPRIATION; LOW LIVESTOCK PRODUCTIVITY
STUDY.]
$50,000 is appropriated from the general fund to the
commissioner of agriculture for purposes of the study required
under article 9. Of this appropriation not more than $4,000 is
available for administrative costs of the department of
agriculture and mileage and expense reimbursements to members of
the advisory board. This appropriation is available until June
30, 1989.
Approved June 4, 1987
Official Publication of the State of Minnesota
Revisor of Statutes