Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 309-H.F.No. 958 
           An act relating to agriculture; classifying certain 
          private data collected for aquaculture permits; 
          providing for development of aquaculture; imposing a 
          two percent excise tax on sales of aquaculture 
          production equipment; amending Minnesota Statutes 
          1990, sections 17.49; 18B.26, subdivision 1; 25.33, 
          subdivision 5; 97A.025; 297A.01, by adding a 
          subdivision; 297A.02, subdivision 2; and 500.24, 
          subdivision 3; proposing coding for new law in 
          Minnesota Statutes, chapters 13 and 17; repealing 
          Minnesota Statutes 1990, section 17.492. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [13.645] [AQUACULTURE PERMIT DATA.] 
    The following data collected and maintained by an agency 
issuing aquaculture permits under sections 4 to 10 are 
classified as private or nonpublic:  the names and addresses of 
customers provided in the permit application. 
    Sec. 2.  [17.108] [TROPHIC STATE LABELING.] 
    Subdivision 1.  [CERTIFICATION OF TROPHIC STATE.] The 
commissioner, in consultation with the commissioners of the 
pollution control agency and natural resources, shall annually 
certify the trophic state of the waters used for aquatic 
farming.  Aquatic farming waters maintained in a trophic state 
equal or better than: 
    (1) 25 percent of the lakes in this state over 100 acres 
shall be certified as "pristine waters"; 
    (2) 50 percent of the lakes in this state over 100 acres 
shall be certified as "pure, clean, or fresh waters"; and 
    (3) 75 percent of the lakes in this state over 100 acres 
shall be certified as "natural waters." 
    Subd. 2.  [USE OF TERMS.] A person may only use the terms 
"natural," "pure," "clean," "fresh," or "pristine" in describing 
waters used for aquaculture on labeling, advertising, or other 
material if the waters from which the products were raised are 
certified accordingly under subdivision 1.  The terms may be 
used in conjunction with other Minnesota grown labeling. 
    Sec. 3.  [17.46] [SHORT TITLE.] 
    Sections 4 to 16 may be cited as the aquaculture 
development act. 
    Sec. 4.  [17.47] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The definitions in this section 
apply to sections 2 to 16. 
    Subd. 2.  [AQUACULTURE.] "Aquaculture" means the culture of 
private aquatic life for consumption or sale. 
    Subd. 3.  [AQUATIC FARM.] "Aquatic farm" means a facility 
used for the purpose of culturing private aquatic life in 
waters, including but not limited to artificial ponds, vats, 
tanks, raceways, other indoor or outdoor facilities that an 
aquatic farmer owns or where an aquatic farmer has exclusive 
control of, fish farms licensed under section 97C.209, or 
private fish hatcheries licensed under section 97C.211 for the 
sole purpose of processing or cultivating aquatic life.  
    Subd. 4.  [AQUATIC FARMER.] "Aquatic farmer" means an 
individual who practices aquaculture. 
    Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
commissioner of agriculture. 
    Subd. 6.  [DEPARTMENT.] "Department" means the department 
of agriculture. 
    Subd. 7.  [PRIVATE AQUATIC LIFE.] "Private aquatic life" 
means fish, shellfish, mollusks, crustaceans, and any other 
aquatic animals cultured within an aquatic farm.  Private 
aquatic life is the property of the aquatic farmer. 
    Sec. 5.  Minnesota Statutes 1990, section 17.49, is amended 
to read: 
    17.49 [AQUACULTURE PROGRAM AND PROMOTION.] 
    Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner 
shall establish and promote a program for the commercial raising 
of fish in fish farms of aquaculture in consultation with an 
advisory committee consisting of the University of Minnesota, 
the commissioner of natural resources, the commissioner of 
agriculture, the commissioner of trade and economic development, 
the commissioner of the state planning agency, representatives 
of the private fish raising aquaculture industry, and the chairs 
of the environment and natural resources committees of the house 
of representatives and senate. 
    Subd. 2.  [COORDINATION.] Aquaculture programs in the state 
must be coordinated through the commissioner of agriculture.  
The commissioner of agriculture shall direct the development of 
aquaculture in the state.  Aquaculture research, projects, and 
demonstrations must be reported to the commissioner before state 
appropriations for the research, projects, and demonstrations 
are encumbered.  The commissioner shall maintain a data base of 
aquaculture research, demonstrations, and other related 
information pertaining to aquaculture in the state.  
    Subd. 2a.  [DEVELOPMENT PROGRAM.] The commissioner may 
establish a Minnesota aquaculture development and aid program 
that may support applied research, demonstration, financing, 
marketing, promotion, broodstock development, and other services.
    Subd. 3.  [REPORT.] The commissioner shall prepare an 
annual report on the amount of fish and aquaculture products 
consumed produced in the state, where the products were 
produced, the opportunities in the state for aquaculture 
development, and impediments to Minnesota development of 
aquaculture.  
    Sec. 6.  [17.494] [AQUACULTURE PERMITS; RULES.] 
    The commissioner shall act as permit or license coordinator 
for aquatic farmers and shall assist aquatic farmers to obtain 
licenses or permits. 
    By July 1, 1992, a state agency issuing multiple permits or 
licenses for aquaculture shall consolidate the permits or 
licenses required for every aquatic farm location.  The 
department of natural resources transportation permits are 
exempt from this requirement.  State agencies shall adopt rules 
or issue commissioner's orders that establish permit and license 
requirements, approval timelines, and compliance standards. 
    Nothing in this section modifies any state agency's 
regulatory authority over aquaculture production. 
    Sec. 7.  [17.495] [APPEAL PROCEDURES.] 
    A state agency that denies a license or permit to an 
aquatic farmer shall provide the aquatic farmer with a written 
notice specifying the reasons for refusal. 
    An aquatic farmer may appeal a state agency's denial of the 
license or permit in a contested case proceeding under chapter 
14. 
    Sec. 8.  [17.496] [QUARANTINE FACILITY; RULES.] 
    By July 1, 1992, the commissioner of natural resources 
shall adopt rules, in consultation with the commissioner of 
agriculture and the aquaculture advisory committee, for the 
construction and operation of a quarantine facility for fish 
eggs presently requiring quarantine and disposition of fish from 
the facility.  Fish in a quarantine station that are determined 
to be disease-free under the procedures developed by the 
commissioner of natural resources may be bought, sold, or 
transported. 
    Sec. 9.  [17.497] [EXOTIC SPECIES IMPORTATION; RULES.] 
    The commissioner of natural resources shall establish 
rules, in consultation with the commissioner of agriculture and 
the aquaculture advisory committee, for approving or rejecting 
importation of "exotic" or genetically altered aquatic species 
to protect the integrity of the natural ecosystem and provide 
aquatic farmers with information that may affect business 
decisions. 
    Sec. 10.  [17.498] [RULES; FINANCIAL ASSURANCE.] 
    (a) The commissioner of the pollution control agency, after 
consultation and cooperation with the commissioners of 
agriculture and natural resources, shall present proposed rules 
to the pollution control agency board prescribing water quality 
permit requirements for aquaculture facilities by May 1, 1992.  
The rules must consider: 
    (1) best available proven technology, best management 
practices, and water treatment practices that prevent and 
minimize degradation of waters of the state considering economic 
factors, availability, technical feasibility, effectiveness, and 
environmental impacts; 
    (2) classes, types, sizes, and categories of aquaculture 
facilities; 
    (3) temporary reversible impacts versus long-term impacts 
on water quality; 
    (4) effects on drinking water supplies that cause adverse 
human health concerns; and 
    (5) aquaculture therapeutics, which shall be regulated by 
the pollution control agency. 
    (b) Net pen aquaculture and other aquaculture facilities 
with similar effects must submit an annual report to the 
commissioner of the pollution control agency analyzing changes 
in water quality trends from previous years, documentation of 
best management practices, documentation of costs to restore the 
waters used for aquaculture to the trophic state existing before 
aquatic farming was initiated, and documentation of financial 
assurance in an amount adequate to pay for restoration costs.  
The trophic state, which is the productivity of the waters 
measured by total phosphorus, dissolved oxygen, algae abundance 
as chlorophyll-a, and secchi disk depth of light penetration, 
and the condition of the waters measured by raw drinking water 
parameters, shall be determined to the extent possible before 
aquatic farming is initiated.  The financial assurance may be a 
trust fund, letter of credit, escrow account, surety bond, or 
other financial assurance payable to the commissioner for 
restoration of the waters if the permittee cannot or will not 
restore the waters after termination of aquatic farming 
operations or revocation of the permit. 
    (c) The commissioner of the pollution control agency shall 
submit a draft of the proposed rules to the legislative water 
commission by September 1, 1991.  By January 15, 1992, the 
commissioner of the pollution control agency shall submit a 
report to the legislative water commission about aquaculture 
facilities permitted by the pollution control agency.  The 
report must include concerns of permittees as well as concerns 
of the agency about permitted aquaculture facilities and how 
those concerns will be addressed in the proposed rules. 
    (d) Information received as part of a permit application or 
as otherwise requested must be classified according to chapter 
13.  Information about processes, aquatic farming procedures, 
feed and therapeutic formulas and rates, and tests on aquatic 
farming products that have economic value is nonpublic data 
under chapter 13, if requested by the applicant or permittee. 
    Sec. 11.  Minnesota Statutes 1990, section 18B.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) A person may not use or 
distribute a pesticide in this state unless it is registered 
with the commissioner.  Aquaculture therapeutics shall be 
registered and labeled in the same manner as pesticides.  
Pesticide registrations expire on December 31 of each year and 
may be renewed on or before that date for the following calendar 
year.  
    (b) Registration is not required if a pesticide is shipped 
from one plant or warehouse to another plant or warehouse 
operated by the same person and used solely at the plant or 
warehouse as an ingredient in the formulation of a pesticide 
that is registered under this chapter. 
    (c) An unregistered pesticide that was previously 
registered with the commissioner may be used only with the 
written permission of the commissioner.  
    (d) Each pesticide with a unique United States 
Environmental Protection Agency pesticide registration number or 
a unique brand name must be registered with the commissioner.  
    Sec. 12.  Minnesota Statutes 1990, section 25.33, 
subdivision 5, is amended to read: 
    Subd. 5.  "Commercial feed" means all materials except 
unmixed seed, whole or processed, when not adulterated within 
the meaning of section 25.37, paragraphs (A), (B), (C), or (D) 
which are distributed for use as feed or for mixing in feed, 
including feed for aquatic animals.  The commissioner by rule 
may exempt from this definition, or from specific provisions of 
sections 25.31 to 25.44, commodities such as hay, straw, stover, 
silage, cobs, husks, hulls, and individual chemical compounds or 
substances when such commodities, compounds or substances are 
not intermixed with other materials, and are not adulterated 
within the meaning of section 25.37, paragraphs (A), (B), (C), 
or (D). 
    Sec. 13.  Minnesota Statutes 1990, section 97A.025, is 
amended to read: 
    97A.025 [OWNERSHIP OF WILD ANIMALS.] 
    The ownership of wild animals of the state is in the state, 
in its sovereign capacity for the benefit of all the people of 
the state.  A person may not acquire a property right in wild 
animals, or destroy them, unless authorized under the game and 
fish laws or, sections 84.09 to 84.15, or sections 4 to 10.  
    Sec. 14.  Minnesota Statutes 1990, section 297A.01, is 
amended by adding a subdivision to read: 
    Subd. 20.  [AQUACULTURE PRODUCTION EQUIPMENT.] "Aquaculture 
production equipment" means new or used machinery, equipment, 
implements, accessories, and contrivances used directly and 
principally in aquaculture production.  Aquaculture production 
equipment includes:  augers and blowers, automatic feed systems, 
manual feeding equipment, shockers, gill nets, trap nets, 
seines, box traps, round nets and traps, net pens, dip nets, net 
washers, floating net supports, floating access walkways, net 
supports and walkways, growing tanks, holding tanks, troughs, 
raceways, transport tanks, egg taking equipment, egg hatcheries, 
egg incubators, egg baskets and troughs, egg graders, egg 
counting equipment, fish counting equipment, fish graders, fish 
pumps and loaders, fish elevators, air blowers, air compressors, 
oxygen generators, oxygen regulators, diffusers and injectors, 
air supply equipment, oxygenation columns, water coolers and 
heaters, heat exchangers, water filter systems, water 
purification systems, waste collection equipment, feed mills, 
portable scales, feed grinders, feed mixers, feed carts and 
trucks, power feed wagons, fertilizer spreaders, fertilizer 
tanks, forage collection equipment, land levelers, loaders, post 
hole diggers, disc, harrow, plow, and water diversion devices.  
Repair or replacement parts for aquaculture production equipment 
shall not be included in the definition of aquaculture 
production equipment. 
    Sec. 15.  Minnesota Statutes 1990, section 297A.02, 
subdivision 2, is amended to read: 
    Subd. 2.  [MACHINERY AND EQUIPMENT.] Notwithstanding the 
provisions of subdivision 1, the rate of the excise tax imposed 
upon sales of special tooling is four percent and upon sales of 
farm machinery and aquaculture production equipment is two 
percent. 
    Sec. 16.  Minnesota Statutes 1990, section 500.24, 
subdivision 3, is amended to read: 
    Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
CORPORATIONS RESTRICTED.] No corporation, pension or investment 
fund, or limited partnership shall engage in farming; nor shall 
any corporation, pension or investment fund, or limited 
partnership, directly or indirectly, own, acquire, or otherwise 
obtain an interest, whether legal, beneficial or otherwise, in 
any title to real estate used for farming or capable of being 
used for farming in this state.  Provided, however, that the 
restrictions in this subdivision do not apply to corporations or 
partnerships in clause (b) and do not apply to corporations, 
limited partnerships, and pension or investment funds that 
record its name and the particular exception under clauses (a) 
to (r) (s) under which the agricultural land is owned or farmed, 
have a conservation plan prepared for the agricultural land, 
report as required under subdivision 4, and satisfy one of the 
following conditions under clauses (a) to (r) (s): 
    (a) A bona fide encumbrance taken for purposes of security; 
    (b) A family farm corporation, an authorized farm 
corporation, a family farm partnership, or an authorized farm 
partnership as defined in subdivision 2 or a general 
partnership; 
    (c) Agricultural land and land capable of being used for 
farming owned by a corporation as of May 20, 1973, or a pension 
or investment fund as of May 12, 1981, including the normal 
expansion of such ownership at a rate not to exceed 20 percent 
of the amount of land owned as of May 20, 1973, or, in the case 
of a pension or investment fund, as of May 12, 1981, measured in 
acres, in any five-year period, and including additional 
ownership reasonably necessary to meet the requirements of 
pollution control rules; 
     (d) Agricultural land operated for research or experimental 
purposes with the approval of the commissioner of agriculture, 
provided that any commercial sales from the operation must be 
incidental to the research or experimental objectives of the 
corporation.  A corporation, limited partnership, or pension or 
investment fund seeking to operate agricultural land for 
research or experimental purposes must submit to the 
commissioner a prospectus or proposal of the intended method of 
operation, containing information required by the commissioner 
including a copy of any operational contract with individual 
participants, prior to initial approval of an operation.  A 
corporation, limited partnership, or pension or investment fund 
operating agricultural land for research or experimental 
purposes prior to May 1, 1988, must comply with all requirements 
of this clause except the requirement for initial approval of 
the project; 
     (e) Agricultural land operated by a corporation or limited 
partnership for the purpose of raising breeding stock, including 
embryos, for resale to farmers or operated for the purpose of 
growing seed, wild rice, nursery plants or sod; 
     (f) Agricultural land and land capable of being used for 
farming leased by a corporation or limited partnership in an 
amount, measured in acres, not to exceed the acreage under lease 
to such corporation as of May 20, 1973, or to the limited 
partnership as of May 1, 1988, and the additional acreage 
required for normal expansion at a rate not to exceed 20 percent 
of the amount of land leased as of May 20, 1973, for a 
corporation or May 1, 1988, for a limited partnership in any 
five-year period, and the additional acreage reasonably 
necessary to meet the requirements of pollution control rules; 
     (g) Agricultural land when acquired as a gift (either by 
grant or a devise) by an educational, religious, or charitable 
nonprofit corporation or by a pension or investment fund or 
limited partnership; provided that all lands so acquired by a 
pension or investment fund, and all lands so acquired by a 
corporation or limited partnership which are not operated for 
research or experimental purposes, or are not operated for the 
purpose of raising breeding stock for resale to farmers or 
operated for the purpose of growing seed, wild rice, nursery 
plants or sod must be disposed of within ten years after 
acquiring title thereto; 
     (h) Agricultural land acquired by a pension or investment 
fund or a corporation other than a family farm corporation or 
authorized farm corporation, as defined in subdivision 2, or a 
limited partnership other than a family farm partnership or 
authorized farm partnership as defined in subdivision 2, for 
which the corporation or limited partnership has documented 
plans to use and subsequently uses the land within six years 
from the date of purchase for a specific nonfarming purpose, or 
if the land is zoned nonagricultural, or if the land is located 
within an incorporated area.  A pension or investment fund or a 
corporation or limited partnership may hold such agricultural 
land in such acreage as may be necessary to its nonfarm business 
operation; provided, however, that pending the development of 
agricultural land for nonfarm purposes, such land may not be 
used for farming except under lease to a family farm unit, a 
family farm corporation, an authorized farm corporation, a 
family farm partnership, or an authorized farm partnership, or 
except when controlled through ownership, options, leaseholds, 
or other agreements by a corporation which has entered into an 
agreement with the United States of America pursuant to the New 
Community Act of 1968 (Title IV of the Housing and Urban 
Development Act of 1968, United States Code, title 42, sections 
3901 to 3914) as amended, or a subsidiary or assign of such a 
corporation; 
     (i) Agricultural lands acquired by a pension or investment 
fund or a corporation or limited partnership by process of law 
in the collection of debts, or by any procedure for the 
enforcement of a lien or claim thereon, whether created by 
mortgage or otherwise; provided, however, that all lands so 
acquired be disposed of within ten years after acquiring the 
title if acquired before May 1, 1988, and five years after 
acquiring the title if acquired on or after May 1, 1988, 
acquiring the title thereto, and further provided that the land 
so acquired shall not be used for farming during the ten-year or 
five-year period except under a lease to a family farm unit, a 
family farm corporation, an authorized farm corporation, a 
family farm partnership, or an authorized farm partnership.  The 
aforementioned ten-year or five-year limitation period shall be 
deemed a covenant running with the title to the land against any 
pension or investment fund or corporate or limited partnership 
grantee or assignee or the successor of such pension or 
investment fund or corporation or limited partnership.  
Notwithstanding the five-year divestiture requirement under this 
clause, a financial institution may continue to own the 
agricultural land if the agricultural land is leased to the 
immediately preceding former owner, but must divest of the 
agricultural land within the ten-year period; 
     (j) Agricultural land acquired by a corporation regulated 
under the provisions of Minnesota Statutes 1974, chapter 216B, 
for purposes described in that chapter or by an electric 
generation or transmission cooperative for use in its business, 
provided, however, that such land may not be used for farming 
except under lease to a family farm unit, a family farm 
corporation, or a family farm partnership; 
     (k) Agricultural land, either leased or owned, totaling no 
more than 2,700 acres, acquired after May 20, 1973, for the 
purpose of replacing or expanding asparagus growing operations, 
provided that such corporation had established 2,000 acres of 
asparagus production; 
     (l) All agricultural land or land capable of being used for 
farming which was owned or leased by an authorized farm 
corporation as defined in Minnesota Statutes 1974, section 
500.24, subdivision 1, clause (d), but which does not qualify as 
an authorized farm corporation as defined in subdivision 2, 
clause (d); 
     (m) A corporation formed primarily for religious purposes 
whose sole income is derived from agriculture; 
     (n) Agricultural land owned or leased by a corporation 
prior to August 1, 1975, which was exempted from the restriction 
of this subdivision under the provisions of Laws 1973, chapter 
427, including normal expansion of such ownership or leasehold 
interest to be exercised at a rate not to exceed 20 percent of 
the amount of land owned or leased on August 1, 1975, in any 
five-year period and the additional ownership reasonably 
necessary to meet requirements of pollution control rules; 
     (o) Agricultural land owned or leased by a corporation 
prior to August 1, 1978, including normal expansion of such 
ownership or leasehold interest, to be exercised at a rate not 
to exceed 20 percent of the amount of land owned or leased on 
August 1, 1978, and the additional ownership reasonably 
necessary to meet requirements of pollution control rules, 
provided that nothing herein shall reduce any exemption 
contained under the provisions of Laws 1975, chapter 324, 
section 1, subdivision 2; 
     (p) An interest in the title to agricultural land acquired 
by a pension fund or family trust established by the owners of a 
family farm, authorized farm corporation or family farm 
corporation, but limited to the farm on which one or more of 
those owners or shareholders have resided or have been actively 
engaged in farming as required by subdivision 2, clause (b), 
(c), or (d); 
    (q) Agricultural land owned by a nursing home located in a 
city with a population, according to the state demographer's 
1985 estimate, between 900 and 1,000, in a county with a 
population, according to the state demographer's 1985 estimate, 
between 18,000 and 19,000, if the land was given to the nursing 
home as a gift with the expectation that it would not be sold 
during the donor's lifetime.  This exemption is available until 
July 1, 1995; 
    (r) The acreage of agricultural land and land capable of 
being used for farming owned and recorded by an authorized farm 
corporation as defined in Minnesota Statutes 1986, section 
500.24, subdivision 2, paragraph (d), or a limited partnership 
as of May 1, 1988, including the normal expansion of the 
ownership at a rate not to exceed 20 percent of the land owned 
and recorded as of May 1, 1988, measured in acres, in any 
five-year period, and including additional ownership reasonably 
necessary to meet the requirements of pollution control rules; 
    (s) Agricultural land owned or leased as a necessary part 
of an aquatic farm as defined in section 3, subdivision 3.  
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1990, section 17.492, is repealed. 
    Sec. 18.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Presented to the governor May 30, 1991 
    Signed by the governor June 3, 1991, 4:16 p.m.