Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 474-S.F.No. 2207 
           An act relating to agriculture; requiring cash 
          discounts on agricultural production inputs if there 
          are interest discounts on credit terms for 
          seller-financed sales; proposing coding for new law in 
          Minnesota Statutes, chapter 325E.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [325E.35] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to section 2.  
    Subd. 2.  [AGRICULTURAL CHEMICAL.] "Agricultural chemical" 
has the meaning given in section 18D.01, subdivision 3.  
    Subd. 3.  [AGRICULTURAL PRODUCTION INPUT.] "Agricultural 
production input" means crop production inputs and livestock 
production inputs.  
    Subd. 4.  [CROP PRODUCTION INPUT.] "Crop production input" 
means agricultural chemicals, seeds, petroleum products, the 
custom application of agricultural chemicals and seeds, and 
labor used in preparing the land for planting, cultivating, 
growing, producing, harvesting, drying, and storing crops or 
crop products. 
    Subd. 5.  [DISCOUNTED CASH PRICE.] "Discounted cash price" 
means an amount equal to the total of the payments made over the 
period of the credit sale, discounted by the interest rate index.
    Subd. 6.  [FEED.] "Feed" means commercial feeds, feed 
ingredients, mineral feeds, drugs, animal health products, or 
customer-formula feeds that are used for feeding livestock, 
including commercial feed as defined in section 25.33, 
subdivision 5.  
    Subd. 7.  [INTEREST RATE INDEX.] "Interest rate index" 
means the prime rate as published in the Wall Street Journal 
plus two percentage points.  
    Subd. 8.  [LIVESTOCK PRODUCTION INPUT.] "Livestock 
production input" means feed and labor used in raising livestock.
    Subd. 9.  [PETROLEUM PRODUCT.] "Petroleum product" means 
motor fuels and special fuels that are used in the production of 
crops and livestock, including petroleum products as defined in 
section 296.01, alcohol fuels, propane, lubes, and oils.  
    Subd. 10.  [SEED.] "Seed" means agricultural seeds that are 
used to produce crops, including agricultural seeds and grains 
as defined in section 21.72, subdivision 12.  
    Sec. 2.  [325E.36] [SELLER-FINANCED AGRICULTURAL INPUT 
SALES.] 
    If a person sells agricultural production inputs at retail 
on credit and the interest rate charged to the buyer is less 
than the interest rate index, the person must also offer to sell 
the agricultural inputs to the buyer at a discounted cash price. 
Agricultural production inputs are sold on credit if the terms 
of the sale allow the buyer to submit any portion of the payment 
for the inputs more than 60 days after the date on which the 
goods are delivered.  
     Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective August 1, 1990, and apply to 
sales after that date. 
    Presented to the governor April 19, 1990 
    Signed by the governor April 23, 1990, 9:14 p.m.