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

                            CHAPTER 619-H.F.No. 2493 
                  An act relating to agriculture; changing the law on 
                  nuisance liability of agricultural operations; 
                  establishing an advisory committee; providing for 
                  research and memorandums of agreement; clarifying 
                  terms; authorizing a livestock expansion loan program; 
                  changing loan procedures; regulating animal lots; 
                  establishing a demonstration program; changing 
                  pesticide posting laws; amending Minnesota Statutes 
                  1992, sections 18B.07, subdivision 3, as amended; 
                  41B.02, by adding a subdivision; 116.07, subdivision 
                  7; and 561.19, subdivisions 1 and 2; Minnesota 
                  Statutes 1993 Supplement, section 41B.03, subdivision 
                  3; proposing coding for new law in Minnesota Statutes, 
                  chapters 17; and 41B. 
           Section 1.  [17.136] [ANIMAL FEEDLOTS; POLLUTION CONTROL; 
           (a) The commissioner of agriculture and the commissioner of 
        the pollution control agency shall establish a feedlot and 
        manure management advisory committee to identify needs, goals, 
        and suggest policies for research, monitoring, and regulatory 
        activities regarding feedlot and manure management.  In 
        establishing the committee, the commissioner shall give first 
        consideration to members of the existing feedlot advisory group. 
           (b) The committee must include representation from beef, 
        dairy, pork, chicken, and turkey producer organizations.  The 
        committee shall not exceed 18 members, but must include 
        representatives from at least three environmental organizations, 
        eight livestock producers, and four experts in soil and water 
        science, nutrient management, and animal husbandry, one member 
        from an organization representing local units of government, one 
        member from the senate, and one member from the house of 
        representatives.  In addition, the department of agriculture, 
        the pollution control agency, board of water and soil resources, 
        soil and water conservation districts, the federal Soil 
        Conservation Service, the association of Minnesota counties, and 
        the Agricultural Stabilization and Conservation Service shall 
        serve on the committee as ex-officio nonvoting members. 
           (c) Persons who participated in activities of the feedlot 
        advisory group existing on and before the effective date of this 
        section must be allowed to speak at proceedings of the advisory 
        committee.  These persons hold nonvoting status and are not 
        eligible for reimbursement of expenses under paragraph (h). 
           (d) The advisory committee shall elect a chair from its 
        members.  The department and the agency shall provide staff 
        support to the committee. 
           (e) The commissioner of agriculture and the commissioner of 
        the pollution control agency shall consult with the advisory 
        committee during the development of any policies, rules, or 
        funding proposals or recommendations relating to feedlots or 
        feedlot-related manure management. 
           (f) The commissioner of agriculture shall consult with the 
        advisory committee on establishing a list of manure management 
        research needs and priorities. 
           (g) The advisory committee shall advise the commissioners 
        on other appropriate matters. 
           (h) Nongovernment members of the advisory committee shall 
        receive expenses, in accordance with section 15.059, subdivision 
        6.  The advisory committee expires on June 30, 1997. 
           Sec. 2.  [17.138] [MANURE MANAGEMENT RESEARCH AND 
           Subdivision 1.  [PRIORITIES.] (a) The commissioner, in 
        consultation with the commissioner of the pollution control 
        agency and the feedlot and manure management advisory committee, 
        shall develop and maintain a list of manure management research 
        and monitoring needs and priorities. 
           (b) The commissioner shall solicit the needs and ideas of 
        livestock producers and consult with producers in developing the 
           (c) The commissioner shall also consult with agricultural 
        and environmental researchers, state and federal agencies, and 
        other appropriate organizations to identify current efforts as 
        well as to assist in the development of research and monitoring 
        needs and priorities. 
           Subd. 2.  [COORDINATION OF RESEARCH.] The commissioner 
        shall coordinate manure management research and monitoring and 
        make recommendations on manure management research and 
        monitoring funding priorities to the legislature and other 
        funding bodies. 
           Sec. 3.  [17.139] [MEMORANDUM OF AGREEMENT AMONG STATE 
           The commissioner shall develop memorandums of agreement 
        among all state and federal agencies that have authority to 
        inspect property in agricultural use, as defined in section 
        17.81, subdivision 4, to ensure that reasonable and effective 
        protocols are followed when inspecting sites in agricultural 
        use.  The memorandum shall specify procedures that address, but 
        are not limited to, the following: 
           (1) when appropriate, advance notice to the agricultural 
        use landowner or operator; 
           (2) procedures for notification of the inspection results 
        or conclusions to the owner or operator; and 
           (3) special procedures as might be necessary, such as to 
        prevent the introduction of diseases. 
           Sec. 4.  Minnesota Statutes 1992, section 18B.07, 
        subdivision 3, as amended by Laws 1994, chapter 482, section 1, 
        is amended to read: 
           Subd. 3.  [POSTING.] (a) All fields receiving applications 
        of pesticide(s) bearing the label statement "Notify workers of 
        the application by warning them orally and by posting signs at 
        entrances to treated areas" must be posted in accordance with 
        labeling and rules adopted under this chapter. 
           (b) Sites being treated with pesticides through irrigation 
        systems must be posted throughout the period of pesticide 
        treatment.  The posting must be done in accordance with labeling 
        and rules adopted under this chapter. 
           (c) If federal worker protection standards are not 
        applicable, soil applied insecticides are exempt from posting 
           Sec. 5.  Minnesota Statutes 1992, section 41B.02, is 
        amended by adding a subdivision to read: 
           Subd. 10a.  [LIVESTOCK EXPANSION.] "Livestock expansion" 
        means improvements to a livestock operation, including the 
        purchase and construction or installation of improvements to 
        land, buildings, and other permanent structures, including 
        equipment incorporated in or permanently affixed to the land, 
        buildings, or structures, which are useful for and intended to 
        be used for the purpose of raising livestock.  
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        41B.03, subdivision 3, is amended to read: 
        addition to the requirements under subdivision 1, a prospective 
        borrower for a beginning farm 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 $200,000 in 1991 and an amount in subsequent years which is 
        adjusted for inflation by multiplying $200,000 by the cumulative 
        inflation rate as determined by the United States All-Items 
        Consumer Price Index; 
           (3) demonstrate a need for the loan; 
           (4) demonstrate an ability to repay the loan; 
           (5) certify that the agricultural land to be purchased will 
        be used by the borrower for agricultural purposes; 
           (6) certify that farming will be the principal occupation 
        of the borrower; 
           (7) agree to participate in a farm management program 
        approved by the commissioner of agriculture for at least the 
        first five years of the loan, if an approved program is 
        available within 45 miles from the borrower's residence.  The 
        commissioner may waive this requirement for any of the programs 
        administered by the authority if the participant requests a 
        waiver and has either a four-year degree in an agricultural 
        program or certification as an adult farm management instructor; 
           (8) agree to file an approved soil and water conservation 
        plan with the soil conservation service office in the county 
        where the land is located.  
           (b) If a borrower fails to participate under paragraph (a), 
        clause (7), the borrower is subject to penalty as determined by 
        the authority. 
           Sec. 7.  [41B.045] [LIVESTOCK EXPANSION LOAN PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The authority may 
        establish, adopt rules for, and implement a loan program to 
        finance livestock expansions in the state. 
           Subd. 2.  [LOAN PARTICIPATION.] The authority may 
        participate in a livestock expansion loan with an eligible 
        lender to a livestock farmer who meets the requirements of 
        section 41B.03, subdivision 1, clauses (1) and (2), and who are 
        actively engaged in a livestock operation.  Participation is 
        limited to 45 percent of the principal amount of the loan or 
        $100,000, whichever is less.  The interest rates and repayment 
        terms of the authority's participation interest may be different 
        from the interest rates and repayment terms of the lender's 
        retained portion of the loan. 
           Subd. 3.  [SPECIFICATIONS.] No loan may be made to 
        refinance an existing debt.  Each loan participation must be 
        secured by a mortgage on real property and such other security 
        as the authority may require. 
           Subd. 4.  [APPLICATION AND ORIGINATION FEE.] The authority 
        may impose a reasonable nonrefundable application fee for each 
        application for a loan participation and an origination fee for 
        each loan issued under the livestock expansion loan program.  
        The origination fee initially shall be set at 1.5 percent and 
        the application fee at $50.  The authority may review the fees 
        annually and make adjustments as necessary.  The fees must be 
        deposited in the state treasury and credited to an account in 
        the special revenue fund.  Money in this account is appropriated 
        to the commissioner for administrative expenses of the livestock 
        expansion loan program. 
           Subd. 5.  [INTEREST RATE.] The interest rate per annum on 
        the livestock expansion loan participation must be at the rate 
        of interest determined by the authority to be necessary to 
        provide for the timely payment of principal and interest when 
        due on bonds or other obligations of the authority issued under 
        this chapter, to provide financing for loan participations made 
        under the livestock expansion loan program, and to provide for 
        reasonable and necessary costs of issuing, carrying, 
        administering, and securing the bonds or notes and to pay the 
        costs incurred and to be incurred by the authority in the 
        implementation of the livestock expansion loan program. 
           Sec. 8.  Minnesota Statutes 1992, section 116.07, 
        subdivision 7, is amended to read: 
        LOT PERMITS.] Any Minnesota county board may, by resolution, 
        with approval of the pollution control agency, assume 
        responsibility for processing applications for permits required 
        by the pollution control agency under this section for livestock 
        feedlots, poultry lots or other animal lots.  The responsibility 
        for permit application processing, if assumed by a county, may 
        be delegated by the county board to any appropriate county 
        officer or employee. 
           (a) For the purposes of this subdivision, the term 
        "processing" includes: 
           (a) (1) the distribution to applicants of forms provided by 
        the pollution control agency; 
           (b) (2) the receipt and examination of completed 
        application forms, and the certification, in writing, to the 
        pollution control agency either that the animal lot facility for 
        which a permit is sought by an applicant will comply with 
        applicable rules and standards, or, if the facility will not 
        comply, the respects in which a variance would be required for 
        the issuance of a permit; and 
           (c) (3) rendering to applicants, upon request, assistance 
        necessary for the proper completion of an application. 
           (b) For the purposes of this subdivision, the term 
        "processing" may include, at the option of the county board: 
           (d), issuing, denying, modifying, imposing conditions upon, 
        or revoking permits pursuant to the provisions of this section 
        or rules promulgated pursuant to it, subject to review, 
        suspension, and reversal by the pollution control agency.  The 
        pollution control agency shall, after written notification, have 
        15 days to review, suspend, modify, or reverse the issuance of 
        the permit.  After this period, the action of the county board 
        is final, subject to appeal as provided in chapter 14. 
           (c) For the purpose of administration of rules adopted 
        under this subdivision, the commissioner and the agency may 
        provide exceptions for cases where the owner of a feedlot has 
        specific written plans to close the feedlot within five years.  
        These exceptions include waiving requirements for major capital 
           (d) For purposes of this subdivision, a discharge caused by 
        an extraordinary natural event such as a precipitation event of 
        greater magnitude than the 25-year, 24-hour event, tornado, or 
        flood in excess of the 100-year flood is not a "direct discharge 
        of pollutants." 
           (e) In adopting and enforcing rules under this subdivision, 
        the commissioner shall cooperate closely with other governmental 
           (f) The pollution control agency shall work with the 
        Minnesota extension service, the department of agriculture, the 
        board of water and soil resources, producer groups, local units 
        of government, as well as with appropriate federal agencies such 
        as the Soil Conservation Service and the Agricultural 
        Stabilization and Conservation Service, to notify and educate 
        producers of rules under this subdivision at the time the rules 
        are being developed and adopted and at least every two years 
           (g) The pollution control agency shall adopt rules 
        governing the issuance and denial of permits for livestock 
        feedlots, poultry lots or other animal lots pursuant to this 
        section.  These rules apply both to permits issued by counties 
        and to permits issued by the pollution control agency directly. 
           (h) The pollution control agency shall exercise supervising 
        authority with respect to the processing of animal lot permit 
        applications by a county. 
           Sec. 9.  Minnesota Statutes 1992, section 561.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the following terms have the meanings given them:  
           (a) "Agricultural operation" means a facility and its 
        appurtenances for the production of crops, livestock, poultry, 
        dairy products or poultry products, but not a facility primarily 
        engaged in processing agricultural products.  
           (b) "Established date of operation" means the date on which 
        the agricultural operation commenced.  If the agricultural 
        operation is subsequently expanded or significantly altered, the 
        established date of operation for each expansion or alteration 
        is deemed to be the date of commencement of the expanded or 
        altered operation.  As used in this paragraph, "expanded or 
        significantly altered" means:  
           (1) an expansion by at least 25 percent in the amount of a 
        particular crop grown or the number of a particular kind of 
        animal or livestock located on an agricultural operation; or 
           (2) a distinct change in the kind of agricultural 
        operation, as in changing from one kind of crop, livestock, 
        animal, or product to another, but not merely a change from one 
        generally accepted agricultural practice to another in producing 
        the same crop or product. 
           (c) "Family farm" means an unincorporated farm unit owned 
        by one or more persons or spouses of persons related to each 
        other within the third degree of kindred according to the rules 
        of the civil law at least one of whom is residing or actively 
        engaged in farming on the farm unit, or a "family farm 
        corporation," as that term is defined in section 500.24, 
        subdivision 2.  
           Sec. 10.  Minnesota Statutes 1992, section 561.19, 
        subdivision 2, is amended to read: 
        agricultural operation which is a part of a family farm is not 
        and shall not become a private or public nuisance after six two 
        years from its established date of operation if the operation 
        was not a nuisance at its established date of operation.  
           The provisions of this subdivision do not apply:  
           (a) (1) to a condition or injury which results from the 
        negligent or improper operation of an agricultural operation or 
        from operations contrary to commonly accepted agricultural 
        practices or to applicable state or local laws, ordinances, 
        rules, or permits; 
           (b) (2) when an agricultural operation causes injury or 
        direct threat of injury to the health or safety of any person; 
           (c) (3) to the pollution of, or change in the condition of, 
        the waters of the state or the overflow of waters on the lands 
        of any person; 
           (d) (4) to an animal feedlot facility with a swine capacity 
        of 1,000 or more animal units as defined in the rules of the 
        pollution control agency for control of pollution from animal 
        feedlots, or a cattle capacity of 2,500 animals or more; or 
           (e) (5) to any prosecution for the crime of public nuisance 
        as provided in section 609.74 or to an action by a public 
        authority to abate a particular condition which is a public 
           Sec. 11.  [1994 and 1995 DEMONSTRATION PROGRAM; 
           (a) During the years 1994 and 1995, loan participations 
        under Minnesota Statutes, section 41B.045, must comply with the 
        restrictions in this section. 
           (b) To the extent that herd health will not be jeopardized, 
        farms receiving assistance from the authority must be available 
        for tours within the first two years after completion of the 
           (c) All livestock expansion loans must be for expansions 
        that include some of the most up-to-date, efficient systems 
        available.  Projects must be approved by a University of 
        Minnesota extension livestock specialist prior to approval by 
        the authority. 
           Sec. 12.  [EFFECTIVE DATE.] 
           Section 4 is effective the day following final enactment. 
           Presented to the governor May 6, 1994 
           Signed by the governor May 10, 1994, 4:50 p.m.

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