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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 688-H.F.No. 1000 
           An act relating to agriculture; providing alternatives 
          for meaningful long-term benefits to Minnesota 
          agriculture; providing initiatives for farmers to use 
          sustainable agriculture; developing agricultural 
          practices that minimize the use of energy in 
          production agriculture; establishing a study of the 
          use of Minnesota grown products under certain 
          conditions; establishing a rural health and safety 
          program; establishing a Minnesota dairy task force; 
          authorizing different versions of the Minnesota grown 
          label; establishing a program to certify soil testing 
          laboratories; prescribing periodic review of grain 
          testing equipment; authorizing a soil buffering 
          demonstration project; authorizing designation of 
          organic certification agencies; requiring crop hail 
          insurance providers to file rates; authorizing the 
          rural finance authority to implement a 
          seller-sponsored loan program; amending requirements 
          of rural finance authority loan programs; adjusting 
          interest rate buy-down program eligibility; extending 
          deadline for seed potato standards; providing for 
          certain ethanol development payments; establishing a 
          school milk program; establishing a laboratory 
          services account; establishing a degradable plastics 
          task force; restricting use of certain plastic 
          products; regulating dry edible beans; establishing an 
          agricultural contract task force; regulating the 
          marketing of certain grains; appropriating money; 
          amending Minnesota Statutes 1986, sections 17B.02; 
          41A.09, by adding a subdivision; 41B.02, by adding a 
          subdivision; 223.16, subdivision 4; 232.21, 
          subdivision 7; and 232.23, subdivision 4, and by 
          adding a subdivision; Minnesota Statutes 1987 
          Supplement, sections 17.102, subdivision 1; 17B.05; 
          41B.01, subdivision 2; 41B.03, subdivision 3; 41B.039, 
          subdivisions 1, 2, and 4; and 41B.05; Laws 1987, 
          chapters 124, section 2; and 396, article 9, section 
          1, subdivision 4; proposing coding for new law in 
          Minnesota Statutes, chapters 16B; 17; 17B; 31; 32; 
          60A; 124; and 325E. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1 

                    MINNESOTA AGRICULTURAL PRODUCTS 
    Section 1.  [16B.103] [AGRICULTURAL FOOD PRODUCTS GROWN IN 
STATE.] 
    Subdivision 1.  [STATE CONTRACTS.] The commissioner shall 
encourage and make a reasonable attempt to identify and purchase 
food products that are grown in this state.  
    Subd. 2.  [REPORT.] The commissioner shall prepare a report 
at the end of each biennium and submit it to the committees on 
agriculture of the house of representatives and senate on the 
total food products purchased or contracted for by agencies and 
the amounts of fruits, vegetables, grains, meats, poultry, and 
other food products purchased or contracted for that are grown 
in this state.  
    Sec. 2.  [AGRICULTURAL PRODUCT USE REPORT.] 
    The commissioner of agriculture shall investigate the use 
of agricultural products to discern the opportunity for 
expansion of market share by agricultural producers in the 
state.  This investigation must include franchised food chain 
and restaurant establishments selling prepared food in this 
state.  The commissioner shall submit a report of the 
investigation to the committees on agriculture of the house of 
representatives and senate by January 31, 1989. 
    Sec. 3.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.
Section 1 applies to contracts entered into by the state after 
June 30, 1988. 

                               ARTICLE 2 

                    RURAL HEALTH AND SAFETY PROGRAM 
    Section 1.  [137.34] [PROGRAM ESTABLISHED.] 
    Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota 
extension service is instructed to develop and implement an 
ongoing program for rural health and safety.  
    Subd. 2.  [PROGRAM GOALS.] (a) During fiscal years 1989 and 
1990, priority goals of the rural health and safety program must 
include the following:  
    (1) assessment of the availability of high quality farm 
safety education and training materials and programs and 
identification of any barriers to increasingly widespread 
acceptance and utilization of these materials and programs; 
    (2) design, coordination, conduct, and interpretation of 
statewide rural health and safety studies; 
    (3) evaluation of the concept of voluntary farm safety 
audits and the possibility that those audits might be linked to 
an appropriate recognition or reward system including reduced 
insurance premiums for farmsteads that achieve a particularly 
good safety rating; 
    (4) development of joint educational programs and effective 
working relationships among the Minnesota agencies and 
organizations having rural health and safety concerns; and 
    (5) development of effective working relationships and 
information sharing arrangements with agencies and organizations 
in other states of the upper midwest that have rural health and 
safety concerns.  
    (b) The director of the Minnesota extension service shall 
report to the committees on agriculture of the house of 
representatives and senate on the findings and recommendations 
of the rural health and safety program by March 1, 1989.  
    Subd. 3.  [RESPONSIBILITIES.] The rural health and safety 
program in the Minnesota extension service has the following 
ongoing responsibilities:  
    (1) to develop programs and materials related to farm 
accident prevention; 
    (2) to develop and implement educational programs that will 
enable rural residents to understand and comply with safety 
standards and good health practices; 
    (3) to maintain cooperation and effective working 
relationships with health and safety agencies and organizations 
in Minnesota, other states, and the United States government; 
and 
    (4) to seek and efficiently utilize grant money made 
available for programs relating to rural and farm safety.  
    Subd. 4.  [PROGRAM FUNDING.] Money for support of the rural 
health and safety program in the Minnesota extension service may 
be accepted from the following sources:  
    (1) legislative appropriations from the general fund; 
    (2) funds from other sources within the University of 
Minnesota and the extension service to the extent not precluded 
by other law; and 
    (3) gifts or grants from individuals, organizations, 
governmental units, foundations, corporations, or other sources 
except that no restrictions may be placed by the giver with 
respect to the functions, duties, and responsibilities of the 
program.  

                               ARTICLE 3 

                            DAIRY TASK FORCE 
    Section 1.  [MINNESOTA DAIRY TASK FORCE.] 
    Subdivision 1.  [ESTABLISHMENT.] The Minnesota dairy task 
force is established consisting of:  
    (1) the commissioner of agriculture or the commissioner's 
designee, who is a nonvoting member; 
    (2) a representative from the University of Minnesota 
designated by the dean of the college of agriculture, who is a 
nonvoting member; 
    (3) two members representing dairy processors of class I 
and class II milk appointed by the governor; 
    (4) one member representing the dairy herd improvement 
association appointed by the governor; 
    (5) two class I milk producers appointed by the governor; 
    (6) two class II milk producers appointed by the governor; 
    (7) one dairy farmer at-large appointed by the governor; 
and 
    (8) one retail grocer appointed by the governor.  
    Subd. 2.  [OBJECTIVES.] The objectives of the Minnesota 
dairy task force are to:  
    (1) increase production efficiency of dairy cow herds; 
    (2) reduce input costs of production; 
    (3) increase profitability of individual dairy farms; and 
    (4) establish long-range goals, objectives, and time line 
achievement strategies for the dairy industry. 
    Subd. 3.  [DUTIES.] The Minnesota dairy task force shall by 
June 1, 1989: 
    (1) gather existing information on increasing milk 
production efficiency of dairy cow herds, reducing input costs, 
and increasing profitability of dairy farms; 
    (2) establish a mechanism to disseminate gathered 
information to dairy farmers in a practical form; 
    (3) examine computerized analysis of dairy records and the 
available software, and recommend practical alternatives for 
dairy farmers to use computerized analysis; 
    (4) develop a preliminary draft of long-range goals, 
objectives, and time line achievement strategies for the dairy 
industry; 
    (5) study alternatives for component pricing of milk; 
    (6) recommend legislation needed to accomplish the 
objectives and goals in subdivision 2; and 
    (7) examine available data on patterns and relationships 
between changes in the purchase price of raw milk from dairy 
farmers and changes in the retail price of dairy products 
purchased by the consumer.  
    Subd. 4.  [PILOT PROJECTS; DEMONSTRATIONS.] The task force 
may sponsor and oversee pilot projects and demonstrations on 
dairy farms.  The projects must be of general applicability to 
family size dairy farms of the state.  Pilot projects and 
demonstrations must apply strategies and practices for 
increasing the profitability of dairy farms and increasing 
income levels for individual dairy farmers. 
    Sec. 2.  [REPORT.] 
    The Minnesota dairy task force shall prepare and submit an 
interim report on its activities, accomplishments, and 
recommendations to the committees on agriculture of the senate 
and house of representatives by February 1, 1989. 
    Sec. 3.  [REPEALER.] 
    Section 1 is repealed effective June 30, 1990. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective July 1, 1988. 

                               ARTICLE 4 

                         MINNESOTA GROWN LABEL 
    Section 1.  Minnesota Statutes 1987 Supplement, section 
17.102, subdivision 1, is amended to read:  
    Subdivision 1.  [ESTABLISHMENT AND USE OF LABEL.] (a) The 
commissioner shall establish a "Minnesota grown" logo or 
labeling statement for use in identifying agricultural products 
that are grown, processed, or manufactured in this state.  The 
commissioner may develop labeling statements that apply to 
specific marketing or promotional needs.  One version of a 
labeling statement must identify food products certified as 
organically grown in this state.  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 or more 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. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.

                               ARTICLE 5 

                   SOIL TEST LABORATORY CERTIFICATION 
    Section 1.  [17.73] [SOIL TESTING LABORATORY 
CERTIFICATION.] 
    Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
shall establish a program to certify the accuracy of analyses 
from soil testing laboratories and promote standardization of 
soil testing procedures and analytical results.  
    Subd. 2.  [CHECK SAMPLE SYSTEM.] (a) The commissioner shall 
institute a system of check samples that requires a laboratory 
to be certified to analyze at least four multiple soil check 
samples during the calendar year.  The samples must be supplied 
by the commissioner or by a person under contract with the 
commissioner to prepare and distribute the samples.  
    (b) Within 30 days after the laboratory receives check 
samples, the laboratory shall report to the commissioner the 
results of the analyses for all requested elements or compounds 
or for the elements or compounds the laboratory makes an 
analytical determination of as a service to others.  
    (c) The commissioner shall compile analytical data 
submitted by laboratories and provide laboratories submitting 
samples with a copy of the data without laboratory names or code 
numbers. 
    (d) The commissioner may conduct check samples on 
laboratories that are not certified. 
    Subd. 3.  [ANALYSES REPORTING STANDARDS.] (a) The results 
obtained from soil or plant analysis must be reported in 
accordance with standard reporting units established by the 
commissioner by rule.  The standard reporting units must conform 
as far as practical to uniform standards that are adopted on a 
regional or national basis. 
    (b) If a certified laboratory offers a recommendation, the 
University of Minnesota recommendation or that of another land 
grant college in a contiguous state must be offered in addition 
to other recommendations, and the source of the recommendation 
must be identified on the recommendation form.  If relative 
levels such as low, medium, or high are presented to classify 
the analytical results, the corresponding relative levels based 
on the analysis as designated by the University of Minnesota or 
the land grant college in a contiguous state must also be 
presented. 
    Subd. 4.  [REVOCATION OF CERTIFICATION.] If the 
commissioner determines that analysis being performed by a 
laboratory is inaccurate as evidenced by check sample results, 
the commissioner may deny, suspend, or revoke certification. 
    Subd. 5.  [CERTIFICATION FEES.] (a) A laboratory applying 
for certification shall pay an application fee of $100 and a 
certification fee of $100 before the certification is issued.  
    (b) Certification is valid for one year and the renewal fee 
is $100.  The commissioner shall charge an additional 
application fee of $100 if a certified laboratory allows 
certification to lapse before applying for renewed certification.
    (c) The commissioner shall notify a certified lab that its 
certification lapses within 30 to 60 days of the date when the 
certification lapses. 
    (d) Fees collected under this subdivision must be deposited 
in the state treasury and credited to the laboratory services 
account.  The money in the account is annually appropriated to 
the commissioner to administer this section.  
    Subd. 6.  [RULES.] The commissioner shall adopt rules for 
the establishment of minimum standards for laboratories, 
equipment, procedures, and personnel used in soil analysis and 
rules necessary to administer and enforce this section.  The 
commissioner shall consult with representatives of the 
fertilizer industry, representatives of the laboratories doing 
business in this state, and with the University of Minnesota 
college of agriculture before proposing rules.  
    Sec. 2.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.

                               ARTICLE 6 

                            GRAIN MARKETING 
    Section 1.  Minnesota Statutes 1986, section 17B.02, is 
amended to read:  
    17B.02 [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] As used in sections 17B.01 to 
17B.29, the terms defined in this section have the meanings 
given them.  
    Subd. 2.  [DEPARTMENT.] "Department" means the Minnesota 
department of agriculture.  
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of agriculture or the commissioner's authorized 
representative.  
    Subd. 3a.  [DISCOUNT.] "Discount" means an offer or 
purchase price for grain that is lower than the base or standard 
price offered by a buyer at a certain time and at a specified 
location.  A discount price represents the lower than normal 
value of the grain because of inferior quality as determined by 
measurement of grade, dockage, test weight, or other factors. 
    Subd. 4.  [PERSON.] "Person" means any individual, firm, 
copartnership, cooperative, company, association, and 
corporation, or their lessees, trustees, or receivers.  
    Subd. 5.  [PREMIUM.] "Premium" means an offer or a purchase 
price for corn, soybeans, or wheat that exceeds the base or 
standard price offered by a buyer at a certain time and at a 
specified location.  A premium price represents the higher than 
normal value of the grain because of superior quality as 
determined by measurement of grade, dockage, test weight, or 
other factors. 
    Subd. 6.  [TEST EQUIPMENT.] "Test equipment" means the 
mechanical and electronic devices commonly used in measurement 
of grain qualities including protein content, moisture content, 
and test weight. 
    Subd. 7.  [TEST EQUIPMENT OPERATOR.] "Test equipment 
operator" means a person assigned by the management of an 
elevator or grain storage facility who is chiefly responsible 
for the preparation and analysis of grain samples for protein 
content, test weight, moisture content, and other qualities upon 
which price is determined. 
    Sec. 2.  [17B.041] [COMMISSIONER TO REVIEW ACCURACY OF TEST 
EQUIPMENT AND TEST EQUIPMENT OPERATORS.] 
    Subdivision 1.  [PERIODIC REVIEW; EQUIPMENT AND OPERATORS.] 
The commissioner shall implement, by rule or emergency rule, a 
program for the periodic review of protein analysis, test 
weight, dockage testing devices, moisture testing equipment, and 
other equipment used to determine qualities upon which price is 
determined, and the operators of the equipment.  If a review is 
performed by department personnel at the site of the test 
equipment, the review must consist of the performance of routine 
tests and analysis on one or more samples of grain by the 
principal operator of the test equipment. 
    Subd. 2.  [TAGGING OF OUT-OF-COMPLIANCE TEST 
EQUIPMENT.] Personnel of the department who perform an on-site 
review of test equipment and operators shall prohibit the 
further use of test equipment that fails to meet and maintain 
acceptable tolerance levels established by rule. 
    Subd. 3.  [FOLLOW-UP REVIEW UPON REQUEST.] The commissioner 
shall arrange for a follow-up review within seven business days 
of a periodic review if a follow-up review is requested by the 
test equipment operator. 
    Subd. 4.  [REQUEST FOR COMMISSIONER TO SCHEDULE A REVIEW.] 
A purchaser or seller of grain may request the commissioner to 
perform a review of the test equipment and test equipment 
operator that is used to test the grain.  A signed request must 
be submitted to the commissioner and upon receipt of a request, 
the commissioner shall schedule a review at a reasonable time 
considering other duties and responsibilities of the department 
personnel. 
    Subd. 5.  [STATE NOT LIABLE.] The state is not liable to a 
seller or purchaser of grain for losses resulting from erroneous 
tests or analysis by test equipment or test equipment operators, 
whether reviewed by the department or not, if the commissioner 
and the department have exercised due care in the scheduling and 
conduct of reviews under subdivisions 1 and 3. 
    Sec. 3.  [17B.0451] [PREMIUMS BASED ON CORN TEST WEIGHT 
MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of corn who provides a discount for corn that 
falls below the standard test weight for corn must offer an 
equal or greater premium for corn that has a test weight higher 
than the standard test weight. 
    Sec. 4.  [17B.0452] [PREMIUMS BASED ON SOYBEAN TEST WEIGHT 
MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of soybeans who provides a discount for 
soybeans that fall below the standard test weight for soybeans 
must offer an equal or greater premium for soybeans that have a 
test weight higher than the standard test weight. 
    Sec. 5.  [17B.0453] [PREMIUMS BASED ON TEST WHEAT WEIGHT 
MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of wheat who provides a discount for wheat that 
falls below the standard test weight for wheat must offer an 
equal or greater premium for wheat that has a test weight higher 
than the standard test weight. 
    Sec. 6.  [17B.0461] [PREMIUMS BASED ON FOREIGN MATERIAL IN 
CORN MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of corn who provides a discount for corn that 
falls below the standard for foreign material for corn must 
offer an equal or greater premium for corn that has less foreign 
material than the standard.  For corn, foreign material includes 
broken corn and foreign material.  
    Sec. 7.  [17B.0462] [PREMIUMS BASED ON FOREIGN MATERIAL IN 
SOYBEANS MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of soybeans who provides a discount for 
soybeans that fall below the standard for foreign material for 
soybean must offer an equal or greater premium for soybeans that 
have less foreign material than the standard.  
    Sec. 8.  [17B.0463] [PREMIUMS BASED ON FOREIGN MATERIAL IN 
WHEAT MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of wheat who provides a discount for wheat that 
falls below the standard for foreign material for wheat must 
offer an equal or greater premium for wheat that has less 
foreign material than the standard.  
    Sec. 9.  [17B.0471] [PREMIUMS BASED ON TOTAL DAMAGED CORN 
KERNELS MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of corn who provides a discount for corn that 
falls below the standard for total damaged kernels for corn must 
offer an equal or greater premium for corn that has less total 
damaged kernels than the standard. 
    Sec. 10.  [17B.0472] [PREMIUMS BASED ON TOTAL DAMAGED 
SOYBEAN KERNELS MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of soybeans who provides a discount for 
soybeans that fall below the standard for total damaged kernels 
for soybeans must offer an equal or greater premium for soybeans 
that have less total damaged kernels than the standard. 
    Sec. 11.  [17B.0473] [PREMIUMS BASED ON TOTAL DAMAGED WHEAT 
KERNELS MUST EQUAL OR EXCEED DISCOUNTS.] 
    A purchaser of wheat who provides a discount for wheat that 
falls below the standard for total damaged kernels for wheat 
must offer an equal or greater premium for wheat that has less 
total damaged kernels than the standard.  
    Sec. 12.  [17B.048] [SELLER OPTION TO AVERAGE LOADS.] 
    A purchaser of corn, soybeans, or wheat must allow a seller 
who delivers the grain in multiple loads within a period of two 
consecutive calendar days, at the option of the seller, to 
average the measurements from the multiple loads with respect to 
test weight, moisture content, and protein analysis.  All loads 
allowed to be averaged under this section must be of a quality 
acceptable to the purchaser.  
    Sec. 13.  Minnesota Statutes 1987 Supplement, section 
17B.05, is amended to read:  
    17B.05 [DISPUTES ON GRADES, DOCKAGE; STATE ARBITRATION.] 
    (a) If a disagreement arises between a person receiving and 
a person delivering grain in this state as to the proper grade, 
dockage, moisture content, protein content, or other factors 
used in establishing the market price of the grain, an average 
sample of the grain in dispute may be taken by either or both of 
the parties interested.  The commissioner shall prescribe a 
procedure for taking samples and having the samples certified by 
both the person receiving and the person delivering the grain as 
being true samples of the grain in dispute on the day the grain 
is delivered and sampled.  Samples must be forwarded prepaid in 
suitable air-tight containers, with the names and addresses of 
the person receiving and the person delivering the grain, to the 
head of the grain inspection division of the department.  The 
head of the grain inspection division shall examine samples 
submitted, and determine the proper grade, dockage, moisture 
content, protein content, and other factors used in establishing 
the market price of the samples of grain in accordance with the 
inspection rules and the standards established by the United 
States Department of Agriculture and the state of Minnesota.  
The test results must be based on the arithmetic mean of the 
samples submitted.  If a person requesting the inspection asks 
for determination of some but not all of the factors that affect 
market price, the department shall perform only the requested 
tests on the samples.  A person requesting the inspection must 
pay the required fee before the results of the inspection are 
released.  The fee charged must be the same as that required for 
similar services rendered by the grain inspection division.  
Payment for the grain involved in a disagreement must be made on 
the basis of grade, dockage, moisture content, protein content, 
and other market pricing factors certified by the department on 
samples submitted.  An appeal of the determination made by the 
department may be made as provided under the United States Grain 
Standards Act, United States Code, title 7, section 79, 
subsection (c), and the Code of Federal Regulations, title 7, 
sections 800.125 to 800.140.  A person receiving or delivering 
grain that is subject to this section is liable for damages 
resulting from not abiding by the determination made by the 
department.  A person who violates this section is subject to 
penalties prescribed in section 17B.29. 
    (b) A licensed business that uses test equipment as defined 
in section 17B.02 to perform tests or analysis on grain to be 
purchased or placed in storage must post at the place of 
business a notice informing persons selling or delivering grain 
of their right to have a representative sample of the grain 
forwarded to the grain inspection division for analysis.  The 
commissioner shall provide copies of the notice to each business 
licensed to buy or receive grain.  The business must display the 
notice in a conspicuous location as prescribed by the 
commissioner. 
    Sec. 14.  [EFFECTIVE DATE.] 
    Section 3, 4, 5, 6, 7, 8, 9, 10, or 11 is effective 30 days 
after at least three states representing 30 percent or more of 
the national production of that grain according to the current 
United States Department of Agriculture crop production summary 
requires that a premium be paid for the grain based on the 
factors provided in the section.  Section 3, 4, 5, 6, 7, 8, 9, 
10, or 11 applies to purchasers of grain in this state 30 days 
after the commissioner publishes notice in the State Register 
that the section is effective.  The commissioner must notify 
affected licensed purchasers of grain that section 3, 4, 5, 6, 
7, 8, 9, 10, or 11 is effective by ten days after notice is 
published in the State Register.  Section 12 is effective August 
1, 1989.  

                               ARTICLE 7 

                  BY-PRODUCT SOIL BUFFERING MATERIALS 
    Section 1.  [17.7241] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The definitions in this section 
apply to sections 1 to 5. 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of agriculture. 
    Subd. 3.  [INDUSTRIAL BY-PRODUCT SOIL BUFFERING MATERIAL.] 
"Industrial by-product soil buffering material" means an 
industrial waste or by-product or the by-product of municipal 
water treatment processes containing calcium or magnesium or 
both in a form that may neutralize soil acidity. 
    Subd. 4.  [LIMESTONE.] "Limestone" means a material 
consisting essentially of calcium carbonate or a combination of 
calcium carbonate with magnesium carbonate capable of 
neutralizing soil acidity.  
    Subd. 5.  [SOIL BUFFERING MATERIALS.] "Soil buffering 
materials" means materials whose calcium or magnesium or both 
are capable of neutralizing soil acidity. 
    Subd. 6.  [STOCKPILE.] "Stockpile" means a supply of 
agricultural soil buffering material stored for future use.  
    Subd. 7.  [TNP.] "TNP" means total neutralizing power and 
is the number of pounds of neutralizing value in one ton of a 
soil buffering material. 
    Sec. 2.  [17.7242] [SOIL BUFFERING DEMONSTRATION PROJECT 
AND STUDY.] 
    Subdivision 1.  [PURPOSE.] The purpose of the demonstration 
project required under sections 1 to 5 is to identify 
appropriate and mutually beneficial methods for the use of 
industrial by-product soil buffering materials.  Proper use will 
minimize current waste disposal problems, provide a market for 
an underutilized resource, and make available to farmers an 
effective, low-cost soil buffering product. 
    Subd. 2.  [AUTHORITY.] The commissioner shall coordinate 
the design and implementation of a demonstration project to 
examine the technical feasibility, economic benefits, and 
environmental impacts of using industrial by-product soil 
buffering materials as a substitute for limestone and other 
traditional soil buffering materials. 
    Subd. 3.  [PROCEDURES DEVELOPED.] The demonstration project 
must identify and recommend as proposed standards appropriate 
procedures for the sampling, analysis, TNP labeling, storage, 
stockpiling, transportation, and application of industrial 
by-product soil buffering materials.  After TNP labeling 
standards have been established, which must be no later than 
March 1, 1989, they must be provided to the landowner or tenant 
prior to land application or stockpiling.  
    Subd. 4.  [SCOPE.] The demonstration project must be on a 
scale deemed by the commissioner to be efficient and manageable 
while providing the greatest practicable use of industrial 
by-product soil buffering materials for agricultural purposes. 
    Sec. 3.  [17.7243] [RESPONSIBILITIES OF THE COMMISSIONER.] 
    Subdivision 1.  [BROAD PARTICIPATION.] The commissioner 
shall seek participation in the demonstration project by other 
persons, institutions, and organizations having an interest in 
soil buffering materials and industrial by-product soil 
buffering materials including the pollution control agency, one 
or more counties, one or more soil and water conservation 
districts, and the University of Minnesota. 
    Subd. 2.  [PUBLIC EDUCATION.] The commissioner shall seek 
to maximize the public education benefit of the demonstration 
program. 
    Sec. 4.  [17.7244] [ENVIRONMENTAL CONTROLS.] 
    Subdivision 1.  [SAMPLING; ANALYSIS.] The commissioner and 
the commissioner's agents may sample, inspect, make analysis of, 
and test industrial by-product soil buffering materials used in 
the demonstration project and study at a time and place and to 
an extent the commissioner considers necessary to determine 
whether the industrial by-product soil buffering materials are 
suitable for the project.  The commissioner and the 
commissioner's agents may enter public or private premises where 
demonstration projects are being conducted in order to have 
access to: 
    (1) soil buffering materials used in the demonstration 
project; 
    (2) sampling of sites actually or reportedly exposed to 
industrial by-product soil buffering materials;  
    (3) inspection of storage, handling, transportation, use, 
or disposal areas of industrial by-product soil buffering 
materials;  
    (4) inspection or investigation of complaints of injury to 
humans, wildlife, domesticated animals, crops, or the 
environment; 
    (5) observation of the use and application of the soil 
buffering material;  
    (6) inspection of records related to the production, 
transportation, stockpiling, use, or disposal of industrial 
by-product soil buffering material; and 
    (7) other purposes necessary to implement sections 1 to 5. 
    Subd. 2.  [RECEIPT FOR INSPECTION SAMPLES; REPORT ON 
ANALYSES.] Before leaving inspected premises, the commissioner 
shall provide the owner, operator, or agent in charge with a 
receipt describing any samples obtained.  If an analysis is made 
of the samples, a copy of the results of the analysis must be 
furnished to the owner, operator, or agent in charge. 
    Subd. 3.  [EMERGENCY INSPECTION.] The commissioner and the 
commissioner's agents may enter public or private property 
without a notice of inspection if a suspected incident involving 
industrial by-product soil buffering materials may threaten 
public health or the environment. 
    Sec. 5.  [17.7245] [REPORT.] 
    The commissioner shall report to the committees on 
agriculture of the house of representatives and senate by March 
1, 1989, and on March 1 of each year thereafter, about the 
activities, findings, and recommendations related to the 
demonstration project. 
    Sec. 6.  [17.7246] [EXEMPTION.] 
    Sections 1 to 5 do not apply to industrial by-product soil 
buffering material produced at a facility if the University of 
Minnesota, North Central Experimental Station, has conducted a 
study of the material at that facility. 
    Sec. 7.  [REPEALER.] 
    Sections 1 to 6 are repealed June 30, 1991. 
    Sec. 8.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.

                               ARTICLE 8 

                         ORGANIC CERTIFICATION 
    Section 1.  [31.95] [ORGANIC CERTIFICATION.] 
    Subdivision 1.  [DESIGNATION.] The commissioner shall 
designate one or more organizations located in this state, made 
up of organic food growers, manufacturers, or sellers, to 
certify organically grown seeds, products, and food.  
    Subd. 2.  [FEES.] The commissioner shall prescribe fees to 
be charged to persons for certification of organically grown 
seeds, production, and food under section 16A.128.  By 1991, 
fees collected must reflect the total annual cost of 
certification.  
    Subd. 3.  [CERTIFICATION REQUIREMENT.] An organic 
certification agency may not refuse services or certification to 
a person: 
    (1) whose seeds, production, and food meet certification 
requirements; and 
    (2) who has paid membership dues and certification fees. 
    Subd. 4.  [RULES.] The organic certification organization 
may draft rules for submission to the commissioner to adopt for 
implementation of the organically grown certification program.  

                               ARTICLE 9 

                    CROP HAIL INSURANCE RATE FILING 
    Section 1.  [60A.32] [RATE FILING FOR CROP HAIL INSURANCE.] 
    An insurer issuing policies of insurance against crop 
damage by hail in this state shall file its insurance rates with 
the commissioner.  The insurance rates must be filed before 
April 1 of the year in which a policy is issued.  

                               ARTICLE 10 

                        RURAL FINANCE AUTHORITY 
    Section 1.  Minnesota Statutes 1987 Supplement, 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 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 rural 
finance authority's programs and of the bonds issued to finance 
or provide security for the programs is to purchase 
participation interests in loans, including seller-sponsored 
loans to be made available by agricultural lenders to farmers 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 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 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 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. 2.  Minnesota Statutes 1986, section 41B.02, is 
amended by adding a subdivision to read: 
    Subd. 18.  [SELLER-SPONSORED LOAN.] "Seller-sponsored loan" 
means a loan in which part or all of the price of a farm is 
financed by a loan from the seller of the farm who is a natural 
person, a partnership, or a family farm corporation as defined 
in section 500.24, located in Minnesota.  The loan must be 
secured by a real estate mortgage evidenced by one or more notes 
that may carry different interest rates or by a contract for 
deed.  The definition of a seller-sponsored loan under this 
subdivision does not include a loan between persons within the 
second degree of kindred according to common law.  A 
seller-sponsored loan may not be made to a person who has 
previously defaulted on a state loan or state guarantee of a 
loan. 
    Sec. 3.  Minnesota Statutes 1987 Supplement, section 
41B.03, subdivision 3, is amended to read:  
    Subd. 3.  [BEGINNING FARMER LOANS.] In addition to the 
requirements under subdivision 1, a prospective borrower for a 
beginning farm loan, including a seller-sponsored loan, in which 
the authority holds an interest, 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. 
    Sec. 4.  Minnesota Statutes 1987 Supplement, section 
41B.039, subdivision 1, is amended to read:  
    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.  The program may include assistance for persons 
entering or reentering farming through the use of 
seller-sponsored loans. 
    Sec. 5.  Minnesota Statutes 1987 Supplement, section 
41B.039, subdivision 2, is amended to read:  
    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 35 percent of the principal 
amount of the loan or $25,000 $50,000, 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.
    Sec. 6.  Minnesota Statutes 1987 Supplement, section 
41B.039, subdivision 4, is amended to read:  
    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 five 
years of the loan.  
    Sec. 7.  Minnesota Statutes 1987 Supplement, section 
41B.05, is amended to read:  
    41B.05 [GENERAL POWERS OF THE 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 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 real or 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. 
    (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 
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 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 
authority funds. 
    (p) It may establish cooperative relationships with 
counties to develop priorities for the use of 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. 
    (t) It may allow farmers who are natural persons to combine 
programs of the federal Agriculture Credit Act of 1987 with 
programs of the rural finance authority. 

                               ARTICLE 11 

                   INTEREST RATE BUY-DOWN ADJUSTMENT 
    Section 1.  [INTEREST RATE BUY-DOWN ADJUSTMENT.] 
    Subdivision 1.  [ELIGIBILITY.] Notwithstanding Laws 1987, 
chapter 15, section 8, subdivision 2, the commissioner may 
consider a farmer an eligible buyer if the farmer has a loan 
balance with a lender under the Federal Guaranteed Operating 
Loan Program with the Interest Rate Buy-down Program 
administered by the FmHA between the dates January 1, 1987, and 
December 31, 1988, and complies with the remaining provisions of 
Laws 1987, chapter 15.  
    Subd. 2.  [LATER MATURITY.] Notwithstanding Laws 1987, 
chapter 15, section 8, subdivision 3, the commissioner may 
consider a farm operating loan eligible for interest rate 
buy-down even though the maturity date is later than June 30, 
1989, if the maturity date is later due to participation in the 
Federal Guaranteed Operating Loan Program Interest Rate Buy-down 
Program administered by the FmHA. 
    Subd. 3.  [PAYMENT AFTER REQUEST.] Notwithstanding Laws 
1987, chapter 15, section 4, subdivision 5, the commissioner may 
pay the last one-half of the interest rate buy-down amount 
within 30 days after request for final payment is received from 
the lender. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.

                               ARTICLE 12 

            EXTENSION OF DEADLINE FOR SEED POTATO STANDARDS 
    Section 1.  Laws 1987, chapter 124, section 2, is amended 
to read:  
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective for potatoes planted after January 
1, 1989 1990.  

                               ARTICLE 13 

                    AGRICULTURAL CONTRACT TASK FORCE
    Section 1.  [AGRICULTURAL CONTRACT TASK FORCE.] 
    The commissioner of agriculture shall form an advisory task 
force to determine the feasibility of changing existing programs 
or developing a new program to provide economic protection for 
farmers producing agricultural commodities under contract.  The 
economic protection would be provided when businesses have filed 
bankruptcy and are unable to make payments under the contract or 
are otherwise financially unable to make payments under the 
contract.  
    The advisory task force membership must include farmers, 
canning processors, contract seed businesses, livestock and 
poultry contractors, other agricultural processors, farm 
organizations, and bonding and financial institutions.  
    The commissioner shall coordinate meetings of the advisory 
task force, provide staff support, and participate in the 
advisory task force meetings. 
    The commissioner shall prepare a report of recommendations 
of the task force including recommendations for the legislature. 
The report must be presented to the chairs of the agriculture 
committees in the legislature by January 15, 1989. 

                               ARTICLE 14 

                            DRY EDIBLE BEANS 
    Section 1.  Minnesota Statutes 1986, section 223.16, 
subdivision 4, is amended to read:  
    Subd. 4.  [GRAIN.] "Grain" means any cereal grain, coarse 
grain or oilseed in unprocessed form for which a standard has 
been established by the United States Secretary of Agriculture 
or the Minnesota board of grain standards, dry edible beans, or 
any other agricultural crop which crops designated by the 
commissioner may designate by rule.  
    Sec. 2.  Minnesota Statutes 1986, section 232.21, 
subdivision 7, is amended to read:  
    Subd. 7.  [GRAIN.] "Grain" means any cereal grain, course 
grain or oilseed in unprocessed form for which a standard has 
been established by the United States secretary of agriculture 
or the Minnesota board of grain standards, dry edible beans, or 
agricultural crops designated by the commissioner by rule.  
    Sec. 3.  Minnesota Statutes 1986, section 232.23, 
subdivision 4, is amended to read:  
    Subd. 4.  [FORM OF GRAIN WAREHOUSE RECEIPT.] (a) A grain 
warehouse receipt must be in duplicate, contain the name and 
location of the grain warehouse, and be delivered to the 
depositor or the depositor's agent.  Grain warehouse receipts 
shall be consecutively numbered as prescribed by the 
commissioner and state the date of deposit, except where the 
deposit of a certain lot for storage is not completed in one 
day.  In that case, the grain warehouse receipt, when issued, 
shall be dated not later than Saturday of the week of delivery.  
    (b) A grain warehouse receipt shall contain either on its 
face or reverse side the following specific grain warehouse and 
storage contract:  "This grain is received, insured and stored 
through the date of expiration of the annual licenses of this 
grain warehouse and terms expressed in the body of this grain 
warehouse receipt shall constitute due notice to its holder of 
the expiration of the storage period.  It is unlawful for a 
public grain warehouse operator to charge or collect a greater 
or lesser amount than the amount filed with the commissioner.  
All charges shall be collected by the grain warehouse operator 
upon the owner's presentation of the grain warehouse receipt for 
the sale or delivery of the grain represented by the receipt, or 
the termination of the storage period.  Upon the presentation of 
this grain warehouse receipt and payment of all charges accrued 
up to the time of presentation, the above amount, kind and grade 
of grain will be delivered within the time prescribed by law to 
the depositor or the depositor's order."  
    (c) A grain warehouse receipt shall also have printed on it 
the following:  

                         "Redemption of Receipt 
     Received from .............., the sum of $........ or 
........  bushels in full satisfaction of the obligation 
represented by this grain warehouse receipt.  
     Gross price per bushel $.......  
     Storage per bushel $.......  
     Net price per bushel $.......  
     All blank spaces in this grain warehouse receipt were 
filled in before I signed it and I certify that I am the owner 
of the commodity for which this grain warehouse receipt was 
issued and that there are no liens, chattel mortgages or other 
claims against the commodity represented by this grain warehouse 
receipt.  
                               Signed ............ 
Accepted ..................    Dated  ............
        Warehouse operator
    This redemption shall be signed by the depositor or the 
depositor's agent in the event that the grain represented is 
redelivered or purchased by the public grain warehouse 
operator.  Signature of this redemption by the depositor 
constitutes a valid cancellation of the obligation embraced in 
the storage contract."  
    (d) A warehouse receipt for dry edible beans must state the 
grade of the dry edible beans delivered to the grain warehouse 
and the redelivery charge required under section 4, paragraph 
(a).  
    Sec. 4.  Minnesota Statutes 1986, section 232.23, is 
amended by adding a subdivision to read: 
    Subd. 10a.  [REDELIVERY OF DRY EDIBLE BEANS.] (a) A public 
grain warehouse shall deliver dry edible beans to a holder of a 
warehouse receipt after the warehouse receipt holder pays a 
redelivery charge and the charges accrued until the time the 
warehouse receipt is surrendered to the grain warehouse 
operator.  The dry edible beans must be dry and processed to 
acceptable standards for canning and packaging use.  The 
redelivery charge may not exceed $3 per net hundredweight of the 
dry edible beans.  The commissioner may determine the maximum 
redelivery charge by rule, after receiving a petition to change 
the redelivery charge signed by at least 25 dry edible bean 
processors, producers, and public warehouse operators. 
    (b) A grain warehouse operator shall deliver dry edible 
beans in bags or in bulk as requested by the warehouse receipt 
holder.  The warehouse receipt holder shall furnish the bags if 
dry edible beans are to be bagged. 
    (c) A grain warehouse operator shall grade the dry edible 
beans if requested by the warehouse receipt holder.  The grain 
warehouse operator may determine grade by United States 
Department of Agriculture standards, Northarvest standards, or 
Michigan Bean Shippers Association standards.  The warehouse 
receipt holder shall pay grading fees. 

                               ARTICLE 15 

                SUSTAINABLE AGRICULTURE LOANS AND GRANTS 
    Section 1.  [17.115] [SHARED SAVINGS LOAN PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
establish a shared savings loan program to provide loans that 
enable farmers to adopt best management practices that emphasize 
sufficiency and self-sufficiency in agricultural inputs, 
including energy efficiency, reduction of petroleum and chemical 
inputs, and increasing the energy self-sufficiency of 
agricultural producers. 
    Subd. 2.  [LOAN CRITERIA.] (a) The shared savings loan 
program must provide loans for purchase of new or used 
machinery, installation of equipment, and projects that reduce 
or make more efficient farm energy use.  Eligible loan uses do 
not include seed, fertilizer, or fuel. 
    (b) Loans may not exceed $15,000 per individual applying 
for a loan and may not exceed $75,000 for loans to five or more 
individuals on joint projects.  The loan repayment period may be 
up to seven years as determined by project cost and energy 
savings.  The interest on the loans is six percent. 
    (c) Loans may only be made to residents of this state 
engaged in farming.  
    Subd. 3.  [AWARDING OF LOANS.] (a) Applications for loans 
must be made to the commissioner on forms prescribed by the 
commissioner. 
    (b) The applications must be reviewed, ranked, and 
recommended by a loan review panel appointed by the 
commissioner.  The loan review panel shall consist of two 
lenders with agricultural experience, two resident farmers of 
the state using sustainable agriculture methods, a farm 
management specialist, a representative from a post-secondary 
education institution, and a chairperson from the department.  
    (c) The loan review panel shall rank applications according 
to the following criteria: 
    (1) realize savings to the cost of agricultural production 
and project savings to repay the cost of the loan; 
    (2) reduce or make more efficient use of energy; and 
    (3) reduce production costs.  
    (d) A loan application must show that the loan can be 
repaid by the applicant.  
    (e) The commissioner must consider the recommendations of 
the loan review panel and may make loans for eligible projects.  
Priority must be given based on the amount of savings realized 
by adopting the practice implemented by the loan.  
    Subd. 4.  [ADMINISTRATION; INFORMATION DISSEMINATION.] The 
amount in the revolving loan account is appropriated to the 
commissioner to make loans under this section and administer the 
loan program.  The interest on the money in the revolving loan 
account and the interest on loans repaid to the state may be 
spent by the commissioner for administrative expenses.  The 
commissioner shall collect and disseminate information relating 
to projects for which loans are given under this section.  
    Sec. 2.  [17.116] [SUSTAINABLE AGRICULTURE DEMONSTRATION 
GRANTS.] 
    Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
agriculture shall establish a grant program for sustainable 
agriculture methods that demonstrates best management practices, 
including farm input reduction, farm energy efficiency, or 
usable on-farm energy production.  The commissioner shall use 
the program to demonstrate and publicize the energy efficiency, 
environmental benefit, and profitability of sustainable 
agriculture techniques.  The grants must fund demonstrations on 
farms of external input reduction techniques or farm scale 
energy production methods consistent with the program objectives.
    Subd. 2.  [ELIGIBILITY.] (a) Grants may only be made to 
farmers, educational institutions, or nonprofit organizations 
residing or located in the state for demonstrations on farms in 
the state. 
    (b) Grants may only be made for projects that show: 
    (1) the ability to maximize direct or indirect energy 
savings or production; 
    (2) a positive effect or reduced adverse effect on the 
environment; and 
    (3) profitability for the individual farm. 
    Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
must be made to the commissioner on forms prescribed by the 
commissioner. 
    (b) The applications must be reviewed, ranked, and 
recommended by a technical review panel appointed by the 
commissioner.  The technical review panel shall consist of a 
soil scientist, an agronomist, a representative from a 
post-secondary educational institution, two resident farmers of 
the state using sustainable agriculture methods, and a 
chairperson from the department.  
    (c) The technical review panel shall rank applications 
according to the following criteria: 
    (1) direct or indirect energy savings or production; 
    (2) environmental benefit; 
    (3) farm profitability; 
    (4) the number of farms able to apply the techniques or the 
technology proposed; 
    (5) the effectiveness of the project as a demonstration; 
    (6) the immediate transferability of the project to farms; 
and 
    (7) the ability of the project to accomplish its goals. 
    (d) The commissioner shall consider the recommendations of 
the technical review panel and may award grants for eligible 
projects.  Priority must be given to applicants who are farmers 
or groups of farmers. 
    (e) Grants for eligible projects may not exceed $25,000 
unless the portion above $25,000 is matched on an equal basis by 
the applicant's cash or in-kind land use contribution.  Grant 
funding of projects may not exceed $50,000 under this section, 
but applicants may utilize other funding sources.  A portion of 
each grant must be targeted for public information activities of 
the project. 
    (f) A project may continue for up to three years.  
Multi-year projects must be reevaluated by the technical review 
panel and the commissioner before second or third year funding 
is approved.  A project is limited to one grant for its funding. 
    (g) Only one grant under this section may be made per 
grantee. 

                               ARTICLE 16 

                          SCHOOL MILK PROGRAM 
    Section 1.  [124.648] [MILK PROGRAM.] 
    Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
finds that for best health and well-being, school children in 
the state should receive at least one serving of milk each day.  
The school milk program established in this section is to 
provide school districts in the state with added resources so 
that all kindergarten students in public and nonpublic schools 
may have access to wholesome milk on a daily basis. 
    Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
school district in the state is encouraged to participate in the 
state-supported school milk program for kindergartners.  
Participating districts shall provide one serving of milk on 
each school day to each kindergarten student attending a public 
or nonpublic school in the district.  No student is required to 
accept the milk that is provided by the district.  The program 
must be promoted and operated under the direction of the 
commissioner or the commissioner's designee. 
    Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE 
COMMISSIONER.] (a) The commissioner shall: 
    (1) encourage all districts to participate in the school 
milk program for kindergartners; 
    (2) prepare program guidelines, not subject to chapter 14, 
which will effectively and efficiently distribute appropriated 
and donated money to participating districts; and 
    (3) seek donations and matching funds from appropriate 
private and public sources. 
    (b) Program guidelines may provide for disbursement to 
districts through a mechanism of prepayments or by reimbursement 
for approved program expenses. 
    (c) It is suggested that the benefits of the school milk 
program may reach the largest number of kindergarten students if 
districts are allowed to submit annual bids stating the 
per-serving level of support that would be acceptable to the 
district for their participation in the program.  The 
commissioner would review all bids received and approve bids in 
sufficient number and value to maximize the provision of milk to 
kindergarten students consistent with available funds. 
    Subd. 4.  [REIMBURSEMENT.] In accordance with program 
guidelines, the commissioner shall prepay or reimburse 
participating school districts for the state share of the 
district's cost for providing milk to kindergarten students. 

                               ARTICLE 17 

                          DEGRADABLE PLASTICS 
    Section 1.  [325E.045] [PURCHASE, SALE, AND USE OF CERTAIN 
POLYETHYLENE MATERIAL PROHIBITED.] 
    Subdivision 1.  [DEFINITIONS.] The definitions in this 
subdivision apply to section 1.  
    (a) "Degradable" means capable of being decomposed by 
natural biological processes, including exposure to ultraviolet 
rays of the sun, within five years after the date of disposal. 
    (b) "Person" means an individual, partnership, corporation, 
sole proprietorship, association, or other for-profit or 
nonprofit organization, including the state and its political 
subdivisions. 
    (c) "Polyethylene disposal bag" means a bag made of 
polyethylene that is used or intended to be used for disposal of 
mixed municipal solid waste as defined in section 115A.03. 
    (d) "Polyethylene beverage ring" means a device made of 
polyethylene that is used or intended to be used to hold 
beverage bottles or other beverage containers together. 
    (e) "Public agency" means the state, an office, agency, or 
institution of the state, a county, a statutory or home rule 
charter city, a town, a school district, or another special 
taxing district. 
    Subd. 2.  [BEVERAGE RING USE AND SALE PROHIBITED.] A person 
may not use, sell, or offer for sale a polyethylene beverage 
ring that is not degradable. 
    Subd. 3.  [GOVERNMENTAL PURCHASE PROHIBITED.] A public 
agency may not purchase polyethylene disposal bags that are not 
degradable. 
    Subd. 4.  [GOVERNMENTAL USE PROHIBITED.] A public agency 
may not use polyethylene disposal bags that are not degradable. 
    Sec. 2.  [DEGRADABLE PLASTICS TASK FORCE.] 
    Subdivision 1.  [ESTABLISHMENT.] An advisory task force on 
degradable plastics is established.  The task force consists of 
the commissioners of agriculture, commerce, and the pollution 
control agency, the director of the waste management board, the 
president of the greater Minnesota corporation, the head of the 
consumer affairs division of the attorney general's office, and 
two representatives of industry and one retailer appointed by 
the rural development board.  Representatives of other state 
agencies may also become members of the task force with the 
approval of a majority of its members. 
    Subd. 2.  [DUTIES.] The task force shall study the 
feasibility and consequences of requiring industry and consumer 
products other than items in section 1 to be degradable. 
    Subd. 3.  [REPORT.] The task force shall report its 
findings, along with any proposed legislation the task force 
believes necessary, to the legislature by January 1, 1990, after 
which the task force expires. 
    Subd. 4.  [ADMINISTRATION AND EXPENSES.] The task force is 
attached to the rural development board for administrative 
purposes and the board shall furnish the task force with office 
space and administrative assistance necessary to fulfill the 
duties of the task force.  Members of the task force must be 
paid their expenses under section 15.059.  
    Sec. 3.  [EFFECTIVE DATE.] 
    Section 1, subdivision 2, is effective January 1, 1989.  
Section 1, subdivisions 3 and 4, are effective July 1, 1990. 

                               ARTICLE 18 

                          ETHANOL DEVELOPMENT 
    Section 1.  Minnesota Statutes 1986, section 41A.09, is 
amended by adding a subdivision to read:  
    Subd. 6.  [CONTINUED PAYMENTS.] A plant in production or 
under construction by January 1, 1990, shall continue to receive 
uninterrupted payments under subdivision 3 of at least 20 cents 
per gallon of ethanol produced until July 1, 2000. 

                               ARTICLE 19 

                       LIVESTOCK REPORT DEADLINE 
    Section 1.  Laws 1987, chapter 396, article 9, section 1, 
subdivision 4, is amended to read: 
    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 August 
1, 1989.  

                               ARTICLE 20 

                      LABORATORY SERVICES ACCOUNT 
    Section 1.  [17.85] [LABORATORY SERVICES ACCOUNT.] 
    A laboratory services account is established in the state 
treasury.  Payments for laboratory services performed by the 
laboratory services division of the department of agriculture 
must be deposited in the state treasury and credited to the 
laboratory services account.  Money in the account, including 
interest earned on the account, is annually appropriated to the 
commissioner of agriculture to administer the programs of the 
laboratory services division. 

                               ARTICLE 21 

                             APPROPRIATIONS 
    Section 1.  [APPROPRIATION CANCELLATION.] 
    All money appropriated by Laws 1987, chapter 15, section 
10, subdivision 1, clauses (a) and (b), for purposes of program 
"A" in 1987 and program "B" in 1987 and 1988 that remains 
unencumbered on July 1, 1988, and all money transferred to the 
interest rate buy-down program by Laws 1987, chapter 15, section 
10, subdivision 4, is canceled.  
    Sec. 2.  [STATE AGRICULTURAL PRODUCT USE REPORT.] 
    $35,000 is appropriated from the general fund to the 
commissioner of agriculture to contract for an investigation and 
report on the use of state agricultural products within the 
state and opportunities for expanded markets for state 
agricultural products within the state under article 1.  This 
appropriation is available until June 30, 1989. 
    Sec. 3.  [ORGANIC FOOD CERTIFICATION AND ENFORCEMENT.] 
    Subdivision 1.  [START-UP CERTIFICATION COSTS.] $100,000 is 
appropriated from the general fund to the commissioner of 
agriculture for a grant to an organic certification organization 
for start-up and initial administrative costs for the purpose of 
promoting and marketing "Minnesota grown" certified organic food 
products.  This appropriation is available until June 30, 1989. 
    Subd. 2.  [ENFORCEMENT COSTS.] $50,000 is appropriated from 
the general fund to the commissioner of agriculture to 
administer and enforce the organic food law, Minnesota Statutes, 
sections 31.92 to 31.94.  This appropriation is available until 
June 30, 1989.  
    Sec. 4.  [BLUEGRASS SEED AND TURF PRODUCTION.] 
    $35,000 is appropriated from the general fund to the 
commissioner of agriculture, to be available until June 30, 
1989, for a bluegrass seed and turf production program as 
follows: 
(1) for contracting for personnel and 
labor costs related to bluegrass seed  
production over one year                                  $20,000
(2) for establishment and evaluation 
of sod varieties on mineral and peat 
soil, direct seeded turf varieties, 
and turf characteristics                                  $15,000
    Sec. 5.  [ALFALFA EXTRACTION PROCESS.] 
    $300,000 is appropriated from the general fund to the 
commissioner of agriculture, to be matched on the basis of $2 of 
nonstate money or in-kind contributions for each $1 of this 
appropriation, to establish a pilot plant for a protein 
xanthophyll alfalfa extraction process.  The commissioner must 
contract to establish a pilot plant for the process and 
operations of the plant with the required testing for markets.  
This appropriation is available until June 30, 1989. 
    Sec. 6.  [SWEET SORGHUM RESEARCH AND DEMONSTRATION.] 
    $94,000 is appropriated from the general fund to the 
commissioner of agriculture for transfer to the Mankato 
Technical Institute for the sweet sorghum research and 
demonstration project on the feasibility of growing, harvesting, 
and processing sweet sorghum as a Minnesota crop.  This 
appropriation is available until June 30, 1989.  
    Sec. 7.  [SUSTAINABLE AGRICULTURE.] 
    Subdivision 1.  [REVOLVING LOAN FUND.] $1,000,000 is 
appropriated from the general fund to the commissioner of 
agriculture to be credited to a revolving loan account for 
low-interest loans to farmers to adopt sustainable agriculture 
practices.  Money in the account does not cancel but is 
appropriated to the commissioner of agriculture to make 
low-interest loans to farmers under this subdivision.  
Notwithstanding chapter 14, the commissioner shall prescribe 
procedures for application and implementation of the program.  
    Subd. 2.  [DEMONSTRATION GRANT PROGRAM.] $300,000 is 
appropriated from the general fund to the commissioner of 
agriculture for grants to farmers for demonstration projects 
involving sustainable agriculture.  If a project cost is more 
than $25,000, the amount above $25,000 must be cost-shared at a 
state-applicant ratio of 1 to 1.  Priority must be given for 
projects involving multiple parties.  Up to $20,000 of this 
appropriation may be used for dissemination of information about 
the demonstration grant projects.  This appropriation is 
available until June 30, 1989.  
    Sec. 8.  [RURAL HEALTH AND SAFETY PROGRAM.] 
    $50,000 is appropriated from the general fund to the 
Minnesota Extension services for purposes of the rural health 
and safety program in article 2.  This appropriation must be 
matched by $25,000 of university or extension service funds.  
Money in this appropriation must be released to the extension 
service as matching funds are made available in the ratio of $2 
in general fund money for each $1 of matching money.  This 
appropriation is available until June 30, 1989.  
    Sec. 9.  [DAIRY TASK FORCE.] 
    $30,000 is appropriated from the unfair dairy trade 
practices account to the commissioner of agriculture to be 
matched dollar for dollar by private money to pay for the 
expenses of the Minnesota dairy task force and pilot projects in 
article 3.  This appropriation is available until June 30, 1989. 
    Sec. 10.  [MINNESOTA GROWN COUPONS TO WIC 
RECIPIENTS.] $85,000 is appropriated from the general fund to 
the commissioner of agriculture to be available until June 30, 
1989, for a pilot program to provide Minnesota grown coupons for 
women, infants, and children program recipients.  The 
commissioner of agriculture in cooperation with the commissioner 
of health may conduct pilot projects to give Minnesota grown 
coupons redeemable for food identified with a Minnesota grown 
logo or labeling statement at selected sites to women, infants, 
and children program recipients.  The commissioner shall conduct 
an evaluation of the pilot program, prepare a report, and submit 
the report to the legislature by January 1, 1989. 
    Sec. 11.  [MINNESOTA GROWN LABELING.] 
    $20,000 is appropriated from the general fund to the 
commissioner of agriculture to develop different versions of the 
labeling statement and adopt rules under article 4.  This 
appropriation is available until June 30, 1989.  
    Sec. 12.  [SOIL TESTING LABORATORY CERTIFICATION.] 
    $15,000 is appropriated from the general fund to the 
commissioner of agriculture to implement and administer the soil 
testing laboratory certification program in article 5.  This 
appropriation is available until June 30, 1989.  
    Sec. 13.  [PLANT PEST SURVEY PROGRAM.] 
    $171,000 is appropriated from the general fund to the 
commissioner of agriculture to survey and detect plant pests and 
disseminate information to farmers on making appropriate 
applications of pesticides and nonchemical controls.  This 
appropriation is available until June 30, 1989.  
    The approved complement of the department of agriculture is 
increased by three positions to administer the plant pest survey 
and detection program.  
    The commissioner of agriculture shall prepare a report on 
plant pest survey and detection and submit it to the legislature 
by June 1, 1990. 
    Sec. 14.  [GRAIN MARKETING.] 
    $100,000 is appropriated from the general fund to the 
commissioner of agriculture for purposes of providing periodic 
reviews of test equipment and test equipment operators under 
article 6.  The approved complement of the department of 
agriculture is increased by three positions.  This appropriation 
is available until June 30, 1989. 
    Sec. 15.  [BY-PRODUCT SOIL BUFFERING.] 
    $70,000 is appropriated from the general fund to the 
commissioner of agriculture for purposes of the demonstration 
project and study of industry by-product soil buffering 
materials in article 7.  This appropriation is available until 
June 30, 1989.  Of this amount, up to $50,000 is available to 
the commissioner of agriculture for expenses of administering 
and coordinating the demonstration project.  The balance of the 
appropriation may be used by the commissioner for material 
testing and analysis and other activities related to the 
demonstration project and performed by the University of 
Minnesota or other qualified participants or organizations.  
    Sec. 16.  [AMARANTH PROCESSING FEASIBILITY.] 
    $125,000 is appropriated to the commissioner of 
agriculture, to be matched on the basis of $1 of nonstate money 
for each $2 of this appropriation, for contracting for a study 
to design and investigate the feasibility of processing, 
marketing, and production of amaranth, and constructing an 
amaranth pilot processing plant.  This appropriation is 
available until June 30, 1989.  As part of the contract, a 
report must be prepared and submitted to the chairs of the 
agriculture committees of the legislature by December 1, 1989. 
    Sec. 17.  [SOIL AND WATER STEWARDSHIP EDUCATION.] 
    $80,000 is appropriated from the general fund to the 
legislative coordinating commission to make a grant to an 
organization to collect and disseminate materials on soil and 
water stewardship designated by the joint legislative committee 
on agricultural land preservation and soil and water 
conservation.  This appropriation is available until June 30, 
1989.  The joint committee shall request proposals to locate, 
collect, index, and organize materials on soil and water 
stewardship for dissemination to primary and secondary schools 
for use in curricula.  The joint committee shall designate an 
appropriate organization to review how existing requirements for 
environmental education are being met and report to the chairs 
of the agriculture committees of the legislature by February 1, 
1989.  
    Sec. 18.  [DEGRADABLE PLASTICS.] 
    $50,000 is appropriated from the general fund to the rural 
development board for the purposes of article 17, section 2, to 
be available until January 1, 1990. 
    Sec. 19.  [SCHOOL MILK PROGRAM.] 
    Subdivision 1.  [GENERAL FUND APPROPRIATION.] $800,000 is 
appropriated from the general fund to the commissioner of 
education for the school milk program in article 16, to be 
available until June 30, 1989.  Of this amount, up to $10,000 
may be used for costs of administering the school milk program. 
    Subd. 2.  [MATCHING FUNDS IN SUBSEQUENT YEARS.] The 
commissioner of education shall identify likely sources of 
matching funds for the school milk program in years after the 
1988-1989 school year.  It is the intent of the legislature to 
require non-state funds to match general fund appropriations to 
the school milk program in future years.  
    Sec. 20.  [PURPLE LOOSESTRIFE.] 
    $50,000 is appropriated from the general fund to the 
commissioner of agriculture, to be available until June 30, 
1989, for eradication of purple loosestrife (lithrum salicaria) 
on farm land where the farmer is required to eradicate the 
purple loosestrife because of the noxious weed law, Minnesota 
Statutes, sections 18.171 to 18.315.  Upon written permission by 
the farmer, the commissioner or the commissioner's designee may 
enter upon the farm land to eradicate purple loosestrife. 
    The commissioner may adopt rules or temporary rules 
necessary for the administration of this section.  
    Sec. 21.  [COUNTY AND DISTRICT AGRICULTURAL SOCIETIES; 
OTHER ASSOCIATIONS.] 
    $145,000 is appropriated from the general fund to the 
commissioner of agriculture to provide supplemental funding for 
state aid to county and district agricultural societies under 
Minnesota Statutes, section 38.02, and to other associations as 
follows: 
County and District Agricultural Societies             $101,025
Red River Valley Livestock Association                    2,395
Northeastern Minnesota Junior Livestock Association         485
Livestock Premiums/Boys and Girls                         1,500
Red Lake Band of Chippewa Indians                           365
Poultry Association                                         730
Minnesota Poultry Association                               375
Northern Poultry Association                                 45
Red River Valley Dairymen's Association                     485
Minnesota Livestock Breeder's Association                 7,675
Northern Sheep Grower's Association                          45
Northern Crops Institute                                 29,925
    This appropriation is available until June 30, 1989.  
    Sec. 22.  [BEGINNING FARMER AND FARM BUSINESS MANAGEMENT 
EDUCATION PROGRAMS.] 
    $125,000 is appropriated from the general fund to the state 
board of vocational technical education to be available until 
June 30, 1989.  $50,000 of this appropriation is to make $2,500 
grants to technical institutes and school districts to provide 
an educational program for beginning farmers pursuing a career 
in agriculture, and the balance is to operate farm business 
management programs assisting in the farmer-lender mediation 
process.  
    Sec. 23.  [MEDIATION PROGRAM; COMMISSIONER OF AGRICULTURE.] 
    $200,000 is appropriated from the general fund to the 
commissioner of agriculture to use for the participation of farm 
advocates in farmer-lender mediation and operation and 
administration of the mediation program.  This appropriation is 
available until June 30, 1989.  
    Sec. 24.  [EFFECTIVE DATE.] 
    Sections 10 and 21 are effective the day following final 
enactment. 
    Approved April 28, 1988