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Office of the Revisor of Statutes

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

                            CHAPTER 477-H.F.No. 3312 
                  An act relating to agriculture; changing the scope of 
                  the value-added agricultural product processing and 
                  marketing grant program; establishing a certification 
                  pilot program; including bison in certain definitions 
                  of livestock; changing meeting provisions and duties 
                  of the board of grain standards; expanding a 
                  grants-in-aid program; changing certain fees; making 
                  technical changes to pesticide and fertilizer laws; 
                  changing certain reimbursement payments; changing seed 
                  testing provisions; providing for delegation of 
                  certain duties; clarifying the scope of certain 
                  regulation of wholesale produce dealers; updating 
                  certain food standards; simplifying certain language; 
                  providing for uniformity in meat and poultry 
                  inspection; changing certain reporting requirements; 
                  increasing the amount of livestock dealer bonds; 
                  changing rural finance authority loan provisions; 
                  clarifying status of certain grain buying 
                  transactions; changing certain grain storage 
                  provisions; changing the corporate and partnership 
                  farming law; providing alternative seed potato 
                  regulation in Clearwater county; amending Minnesota 
                  Statutes 1998, sections 17.101, subdivision 5; 17A.03, 
                  subdivision 5; 17A.05, subdivision 2; 17B.07; 17B.12; 
                  18.023, subdivision 3a; 18C.005, subdivision 34, and 
                  by adding subdivisions; 18C.201, by adding 
                  subdivisions; 18C.215, subdivisions 1, 2, and by 
                  adding a subdivision; 18C.411, subdivision 1; 18C.421, 
                  subdivision 1; 18D.201, subdivision 3; 18D.331, by 
                  adding a subdivision; 18E.04, subdivision 4; 21.86, 
                  subdivision 1; 27.01, subdivision 8; 27.19, 
                  subdivision 1; 31.101, as amended; 31.102, subdivision 
                  1; 31.103, subdivision 1; 31.104; 31.632; 31.633, 
                  subdivision 1; 31.651; 31A.02, subdivisions 5, 6, 10, 
                  13, and 14; 31A.03; 31A.05; 31A.06; 31A.07, 
                  subdivisions 1 and 2; 31A.08; 31A.10; 31A.13; 31A.16; 
                  31A.17; 31B.02, subdivision 4; 41B.03, subdivisions 1 
                  and 2; 41B.039, subdivision 2; 41B.04, subdivision 8; 
                  41B.042, subdivision 4; 41B.043, subdivision 2; 
                  41B.045, subdivision 2; 223.16, subdivision 5; 223.17, 
                  subdivision 5; 223.175; 232.21, by adding a 
                  subdivision; 232.23, subdivisions 1, 3, and 6; 500.24, 
                  subdivisions 3a, 3b, 4, and 5; and 500.245, 
                  subdivision 2; Minnesota Statutes 1999 Supplement, 
                  sections 17B.15, subdivision 1; 28A.075; 31A.01; 
                  31A.15, subdivision 1; 31B.07, subdivision 3; 500.24, 
                  subdivisions 2 and 3; and 500.245, subdivision 1; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 17. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 17.101, 
        subdivision 5, is amended to read: 
           Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
        MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
           (1) "agricultural commodity" means a material produced for 
        use in or as food, feed, seed, or fiber and includes crops for 
        fiber, food, oilseeds, seeds, livestock, livestock products, 
        dairy, dairy products, poultry, poultry products, and other 
        products or by-products of the farm produced for the same or 
        similar use, except ethanol; and 
           (2) "agricultural product processing facility" means land, 
        buildings, structures, fixtures, and improvements located or to 
        be located in Minnesota and used or operated primarily for the 
        processing or production of marketable products from 
        agricultural commodities produced in Minnesota.  
           (b) The commissioner shall establish and implement a 
        value-added agricultural product processing and marketing grant 
        program to help farmers finance new cooperatives that organize 
        for the purposes of operating agricultural product processing 
        facilities and for marketing activities related to the sale and 
        distribution of processed agricultural products.  
           (c) To be eligible for this program a grantee must:  
           (1) be a cooperative organized under chapter 308A; 
           (2) certify that all of the control and equity in the 
        cooperative is from farmers as defined in section 500.24, 
        subdivision 2, who are actively engaged in agricultural 
        commodity production; 
           (3) be operated primarily for the processing of 
        agricultural commodities produced in Minnesota; 
           (4) receive agricultural commodities produced primarily by 
        shareholders or members of the cooperative; and 
           (5) have no direct or indirect involvement in the 
        production of agricultural commodities.  
           (d) The commissioner may receive applications from and make 
        grants up to $50,000 for feasibility, marketing 
        analysis, assistance with organizational development, financing 
        and managing new cooperatives, product development, development 
        of business and marketing plans, and predesign of 
        facilities including site analysis, development of bid 
        specifications, preliminary blueprints and schematics, and 
        completion of purchase agreements and other necessary legal 
        documents to eligible cooperatives.  The commissioner shall give 
        priority to applicants who use the grants for planning costs 
        related to an application for financial assistance from the 
        United States Department of Agriculture, Rural Business - 
        Cooperative Service. 
           Sec. 2.  [17.1025] [MINNESOTA CERTIFICATION PROGRAM.] 
           In cooperation with the University of Minnesota, the 
        department of trade and economic development, and the board of 
        animal health, the commissioner shall establish a pilot program 
        to certify agricultural production methods and agricultural 
        products grown or processed within the state to assure the 
        integrity of claims made by participating businesses.  The 
        commissioner may select and cooperate with private organizations 
        that have established procedures and safeguards to justify 
        claimed characteristics of the production process or the final 
        certified product to conduct certification activities for third 
        party producers. 
           The commissioner may establish guidelines for the 
        certification program, which are not subject to chapter 14.  The 
        commissioner shall submit a report on the pilot program to the 
        legislature by February 1, 2001. 
           Sec. 3.  Minnesota Statutes 1998, section 17A.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LIVESTOCK.] "Livestock" means cattle, sheep, 
        swine, horses intended for slaughter, mules, farmed cervidae, as 
        defined in section 17.451, subdivision 2, llamas, as defined in 
        section 17.455, subdivision 2, ratitae, as defined in section 
        17.453, subdivision 3, bison (buffalo), and goats. 
           Sec. 4.  Minnesota Statutes 1998, section 17A.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LIVESTOCK DEALERS.] The amount of each livestock 
        dealer bond filed with the commissioner shall be not less 
        than $5,000 $10,000 or such larger amount as required, based on 
        the commissioner's consideration of the principal's financial 
        statement, the volume of business reported, or any other factor 
        the commissioner deems pertinent for the protection of the 
        public.  Each such bond shall contain the condition clause 
        applicable when the principal buys on commission or as a 
        dealer.  A livestock dealer's bond shall be executed on a form 
        furnished by the commissioner or in accordance with the Packers 
        and Stockyards Act, 1921, as amended, (United States Code, title 
        7, section 181 et seq.). 
           When a bond is executed on a state form furnished by the 
        commissioner, the bond shall be for the protection of both the 
        buyer and the seller named in the transaction when the principal 
        fails to pay when due for livestock purchased or sold for the 
        principal's own account or the account of others and shall be 
        limited to the protection of claimants whose residence or 
        principal place of livestock business is in the state of 
        Minnesota at the time of the transaction.  If the bond is filed 
        on a form in accordance with the Packers and Stockyards Act, the 
        bond shall cover claimants regardless of place of residence. 
           Sec. 5.  Minnesota Statutes 1998, section 17B.07, is 
        amended to read: 
           17B.07 [OFFICIAL TITLE OF BOARD; MEETINGS.] 
           The official title of the board shall be "The Minnesota 
        board of grain standards" and it shall have jurisdiction over 
        all grain appeal cases brought before it.  
           The board shall meet annually on or before June 15, as 
        needed and shall establish the grades of all grain subject to 
        state inspection which shall be known as the "Minnesota grades," 
        and all grain received at any public warehouse shall be graded 
        accordingly.  Such grades shall not be changed before the next 
        annual meeting without the concurrence of at least two members 
        of the board.  At the time of establishing Minnesota grades, the 
        board also shall adopt such rules, in accordance with the 
        Administrative Procedure Act, as it deems necessary for the 
        enforcement of this section and section 17B.06.  In establishing 
        the grades, in addition to the physical qualities of the grain, 
        there shall be taken into consideration the milling and 
        bread-producing quality of all grain products used as human 
        food.  The board shall determine the grade, and dockage, if any, 
        of all grain in all cases where appeals from the decisions of 
        the chief inspector have been taken and for such purpose they 
        may request fresh samples of such grain to be furnished directly 
        to the board.  Dockage shall be considered as being of two 
        classes; first, that having value and second, that having no 
        value.  At the annual meeting the board shall ascertain and 
        determine what dockage contained in grain is of value and 
        publish a list thereof in connection with the publication of the 
        Minnesota grades.  Any foreign content of the grain shall not be 
        considered in establishing the grade.  Whenever grain containing 
        dockage of value is sold to any public local warehouse or mill, 
        terminal warehouse, or to any flour mill located in St. Paul, 
        Minneapolis, or Duluth, or any other point within the state, 
        which is now or may hereafter be designated as a terminal point, 
        such sale shall not be considered to include such dockage of 
        value, but such dockage shall be paid for at its market value or 
        shall be returned to the vendor of said grain at the option of 
        the vendee.  
           Sec. 6.  Minnesota Statutes 1998, section 17B.12, is 
        amended to read: 
           17B.12 [APPEALS; PROCEDURE.] 
           Any owner, consignee, or shipper of grain, or any warehouse 
        operator, who is dissatisfied with the inspection of grain may 
        appeal to the board of grain standards by filing a notice of 
        such appeal with the commissioner and paying a fee, to be fixed 
        by the commissioner, which shall be refunded if the appeal is 
        sustained.  The commissioner shall forthwith promptly transmit 
        the notice to said the board of grain standards.  The decision 
        of said the board, fixing the grade of such the grains shall 
        be is final.  
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        17B.15, subdivision 1, is amended to read: 
           Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
        for inspection and weighing shall be fixed by the commissioner 
        and be a lien upon the grain.  The commissioner shall set fees 
        for all inspection and weighing in an amount adequate to pay the 
        expenses of carrying out and enforcing the purposes of sections 
        17B.01 to 17B.23, including the portion of general support costs 
        and statewide indirect costs of the agency attributable to that 
        function, with a reserve sufficient for up to six months.  The 
        commissioner shall review the fee schedule twice each year.  Fee 
        adjustments are not subject to chapter 14.  Payment shall be 
        required for services rendered.  If the grain is in transit, the 
        fees shall be paid by the carrier and treated as advance 
        charges, and, if received for storage, the fees shall be paid by 
        the warehouse operator, and added to the storage charges. 
           All fees collected and all fines and penalties for 
        violation of any provision of this chapter shall be deposited in 
        the grain inspection and weighing account, which is created in 
        the agricultural fund for carrying out the purpose of sections 
        17B.01 to 17B.23.  The money in the account, including interest 
        earned on the account, is annually appropriated to the 
        commissioner of agriculture to administer the provisions of 
        sections 17B.01 to 17B.23.  When money from any other account is 
        used to administer sections 17B.01 to 17B.23, the commissioner 
        shall notify the chairs of the agriculture, environment and 
        natural resources finance, and ways and means committees of the 
        house of representatives; the agriculture and rural development 
        and finance committees of the senate; and the finance division 
        of the environment and natural resources committee of the senate.
           Sec. 8.  Minnesota Statutes 1998, section 18.023, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [GRANTS TO MUNICIPALITIES.] (a) The commissioner 
        may, in the name of the state and within the limit of 
        appropriations provided, make grants-in-aid to a municipality 
        with an approved disease control program for the partial funding 
        of municipal sanitation and reforestation programs to replace 
        trees lost to disease or natural disaster.  The commissioner may 
        make grants-in-aid to any home rule charter or statutory city, 
        or any special purpose park and recreation board organized under 
        a charter of a city of the first class or any nonprofit 
        corporation serving a city of the first class or any county 
        having an approved disease control program for the acquisition 
        or implementation of a wood utilization or disposal system. 
           (b) The commissioner shall promulgate rules for the 
        administration of grants authorized by this subdivision.  The 
        rules shall establish and contain as a minimum: 
           (1) Procedures for grant applications; 
           (2) Conditions and procedures for the administration of 
        grants; 
           (3) Criteria of eligibility for grants including, but not 
        limited to, those specified in this subdivision; and 
           (4) Other matters the commissioner may find necessary to 
        the proper administration of the grant program. 
           (c) Grants-in-aid payments for wood utilization and 
        disposal systems made by the commissioner pursuant to this 
        subdivision shall not exceed 50 percent of the total cost of the 
        system.  Grants for sanitation and reforestation shall be 
        combined into one grant program.  Grants to any municipality for 
        sanitation shall not exceed 50 percent of sanitation costs 
        approved by the commissioner including any amount of sanitation 
        costs paid by special assessments, ad valorem taxes, federal 
        grants or other funds.  A municipality shall not specially 
        assess a property owner any amount greater than the amount of 
        the tree's sanitation cost minus the amount of the tree's 
        sanitation cost reimbursed by the commissioner.  Grants to 
        municipalities for reforestation shall not exceed 50 percent of 
        the cost, but not more than $50 per tree, of trees planted 
        pursuant to the reforestation program; provided that a 
        reforestation grant to any county may include 90 percent of the 
        cost, but not more than $60 per tree, of the first 50 trees 
        planted on public property in a town not described in 
        subdivision 1 and of less than 1,000 population upon the town's 
        application to the county.  Reforestation grants to towns and 
        home rule charter or statutory cities as described in 
        subdivision 1 of less than 4,000 population with an approved 
        disease control program may include 90 percent of the cost, but 
        not more than $60 per tree, of the first 50 trees planted on 
        public property with the approval of the 1979 application.  The 
        governing body of any municipality which receives a 
        reforestation grant pursuant to this section shall appoint up to 
        seven residents of the municipality or designate an existing 
        municipal board or committee to serve as a reforestation 
        advisory committee to advise the governing body of the 
        municipality in the administration of the reforestation 
        program.  For the purpose of this subdivision, "cost" shall not 
        include the value of a gift or dedication of trees required by a 
        municipal ordinance but shall include documented "in kind" 
        services or voluntary work for municipalities with a population 
        of less than 1,000 according to the most recent federal census. 
           (d) Based upon estimates submitted by the municipality to 
        the commissioner, which shall state the estimated costs of 
        sanitation and reforestation in the succeeding quarter under an 
        approved program, the commissioner shall direct quarterly 
        advance payments to be made by the state to the municipality 
        commencing April 1, 1979.  The commissioner shall direct 
        adjustment of any overestimate in a succeeding quarter.  A 
        municipality may elect to receive the proceeds of its sanitation 
        and reforestation grants on a periodic cost reimbursement basis. 
           (e) A home rule charter or statutory city, or county 
        outside the metropolitan area or any municipality, as defined in 
        subdivision 1, may submit an application for a grant authorized 
        by this subdivision concurrently with its request for approval 
        of a disease control program. 
           Sec. 9.  Minnesota Statutes 1998, section 18C.005, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [ANHYDROUS AMMONIA.] "Anhydrous ammonia" means a 
        compound formed by the chemical combination of the elements 
        nitrogen and hydrogen in the molar proportion of one part 
        nitrogen to three parts hydrogen.  This relationship is shown by 
        the chemical formula, NH3.  On a weight basis, the ratio is 14 
        parts nitrogen to three parts hydrogen or approximately 82 
        percent nitrogen to 18 percent hydrogen.  Anhydrous ammonia may 
        exist in either a gaseous or a liquid state.  
           Sec. 10.  Minnesota Statutes 1998, section 18C.005, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [CUSTOM BLEND FERTILIZER.] "Custom blend 
        fertilizer" means a fertilizer blended according to the 
        specifications that are furnished to a distributor by a consumer 
        prior to blending. 
           Sec. 11.  Minnesota Statutes 1998, section 18C.005, 
        subdivision 34, is amended to read: 
           Subd. 34.  [SPECIALTY FERTILIZER.] "Specialty fertilizer" 
        means a fertilizer labeled and distributed for, but not limited 
        to, the following uses:  greenhouses, nurseries, home gardens, 
        house plants, lawn fertilizer that is not custom applied, 
        shrubs, golf courses, municipal parks, and cemeteries. 
           Sec. 12.  Minnesota Statutes 1998, section 18C.005, is 
        amended by adding a subdivision to read: 
           Subd. 35a.  [TAMPER.] "Tamper" means action taken by a 
        person not authorized to take that action by law or by the owner 
        or authorized custodian of an anhydrous ammonia container or of 
        equipment where anhydrous ammonia is used, stored, distributed, 
        or transported. 
           Sec. 13.  Minnesota Statutes 1998, section 18C.201, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [ANHYDROUS AMMONIA.] (a) A person may not:  
           (1) place, have placed, or possess anhydrous ammonia in a 
        container that is not designed, constructed, maintained, and 
        authorized to contain or transport anhydrous ammonia; 
           (2) transport anhydrous ammonia in a container that is not 
        designed, constructed, maintained, and authorized to transport 
        anhydrous ammonia; 
           (3) use, deliver, receive, sell, or transport a container 
        designed and constructed to contain anhydrous ammonia without 
        the express consent of the owner or authorized custodian of the 
        container; or 
           (4) tamper with any equipment or facility used to contain, 
        store, or transport anhydrous ammonia. 
           (b) For the purposes of this subdivision, containers 
        designed and constructed for the storage and transport of 
        anhydrous ammonia are described in rules adopted under section 
        18C.121, subdivision 1, or in Code of Federal Regulations, title 
        49. 
           Sec. 14.  Minnesota Statutes 1998, section 18C.201, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [NO CAUSE OF ACTION.] (a) Except as provided in 
        paragraph (b), a person tampering with anhydrous ammonia 
        containers or equipment under subdivision 6 shall have no cause 
        of action for damages arising out of the tampering against (1) 
        the owner or lawful custodian of the container or equipment; (2) 
        a person responsible for the installation or maintenance of the 
        container or equipment; or (3) a person lawfully selling or 
        offering for sale the anhydrous ammonia. 
           (b) Paragraph (a) does not apply to a cause of action 
        against a person who unlawfully obtained the anhydrous ammonia 
        or anhydrous ammonia container or who possesses the anhydrous 
        ammonia or anhydrous ammonia container for any unlawful purpose. 
           Sec. 15.  Minnesota Statutes 1998, section 18C.215, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PACKAGED FERTILIZERS.] (a) A person may 
        not sell or distribute specialty fertilizer in bags or other 
        containers in this state unless a label is placed on or affixed 
        to the bag or container stating in a clear, legible, and 
        conspicuous form the following information:  
           (1) the net weight; 
           (2) the brand and grade, except the grade is not required 
        if primary nutrients are not claimed; 
           (3) the guaranteed analysis; 
           (4) the name and address of the guarantor; 
           (5) directions for use, except directions for use are not 
        required for custom blend specialty fertilizers; and 
           (6) a derivatives statement.  
           (b) A person may not sell or distribute fertilizer for 
        agricultural purposes in bags or other containers in this state 
        unless a label is placed on or affixed to the bag or container 
        stating in a clear, legible, and conspicuous form the 
        information listed in paragraph (a), clauses (1) to (4), except: 
           (1) the grade is not required if primary nutrients are not 
        claimed; and 
           (2) the grade on the label is optional if the fertilizer is 
        used only for agricultural purposes and the guaranteed analysis 
        statement is shown in the complete form as in section 18C.211. 
           (c) The labeled information must appear:  
           (1) on the front or back side of the container; 
           (2) on the upper one-third of the side of the container; 
           (3) on the upper end of the container; or 
           (4) printed on a tag affixed to the upper end of the 
        container. 
           (d) If a person sells a custom blend specialty fertilizer 
        in bags or other containers, the information required in 
        paragraph (a) must either be affixed to the bag or container as 
        required in paragraph (c) or be furnished to the customer on an 
        invoice or delivery ticket in written or printed form. 
           Sec. 16.  Minnesota Statutes 1998, section 18C.215, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BLENDED, MIXED, BULK, AND CUSTOM APPLIED 
        FERTILIZER.] (a) A distributor who blends or mixes fertilizer or 
        distributes fertilizer, for agricultural use, in bulk, must 
        furnish each purchaser with an invoice or delivery ticket in 
        written or printed form showing: 
           (1) the net weight and guaranteed analysis of each of the 
        materials used in the mixture and the name and address of the 
        guarantor; or 
           (2) the net weight and guaranteed analysis of the final 
        mixture and the name and address of the guarantor. 
           (b) A person may not custom apply specialty fertilizer in 
        this state unless a label, invoice, or delivery ticket is given 
        to each purchaser stating in a clear, legible, and conspicuous 
        form the following information: 
           (1) the net weight, which may be listed as the total net 
        weight applied or the net weight applied per unit treated; 
           (2) the guaranteed analysis; 
           (3) the name and address of the guarantor; 
           (4) the number of units treated in square feet, acres, or 
        another unit of measure; and 
           (5) a derivative statement. 
           (c) Copies of invoices or delivery tickets must be kept for 
        five years after the sale, delivery, or application.  
           Sec. 17.  Minnesota Statutes 1998, section 18C.215, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [INFORMATION TO CUSTOMER.] If a person sells a 
        custom blend specialty fertilizer in bulk, the information 
        required in subdivision 1, paragraph (a), must be furnished to 
        the customer on an invoice or delivery ticket in written or 
        printed form. 
           Sec. 18.  Minnesota Statutes 1998, section 18C.411, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION REQUIRED.] (a) A person may 
        not sell brands or grades of specialty fertilizers, soil 
        amendments, or plant amendments in this state unless they are 
        registered with the commissioner.  
           (b) Registration of the materials is not a warranty by the 
        commissioner or the state.  
           (c) Specialty fertilizers custom applied are exempt from 
        the registration requirements of this section. 
           (d) Custom blend specialty fertilizers are exempt from the 
        registration requirements of this section if the distributor is 
        licensed as required by section 18C.415 and the fertilizer is 
        labeled as required by section 18C.215. 
           Sec. 19.  Minnesota Statutes 1998, section 18C.421, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SEMIANNUAL STATEMENT.] (a) Each licensed 
        distributor of fertilizer and each registrant of a specialty 
        fertilizer, soil amendment, or plant amendment must file a 
        semiannual statement for the periods ending December 31 and June 
        30 with the commissioner on forms furnished by the commissioner 
        stating the number of net tons and grade of each raw fertilizer 
        material distributed or the number of net tons of each brand or 
        grade of fertilizer, soil amendment, or plant amendment 
        distributed in this state during the reporting period. 
           (b) Tonnage reports are not required to be filed with the 
        commissioner from licensees who distributed fertilizer solely by 
        custom application. 
           (c) A report from a licensee who sells to an ultimate 
        consumer must be accompanied by records or invoice copies 
        indicating the name of the distributor who paid the inspection 
        fee, the net tons received, and the grade or brand name of the 
        products received.  
           (c) (d) The report is due on or before the last day of the 
        month following the close of each reporting period of each 
        calendar year.  
           (d) (e) The inspection fee at the rate stated in section 
        18C.425, subdivision 6, must accompany the statement.  
           Sec. 20.  Minnesota Statutes 1998, section 18D.201, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INSPECTION REQUESTS BY OTHERS.] (a) A person who 
        believes that a violation of this chapter has occurred may 
        request an inspection by giving notice to the commissioner of 
        the violation.  The notice must be in writing, state with 
        reasonable particularity the grounds for the notice, and be 
        signed by the person making the request.  If the pesticide 
        application is alleged to have damaged a crop or vegetation, the 
        request for inspection must be submitted within 45 days of the 
        date of the pesticide application. 
           (b) If after receiving a notice of violation the 
        commissioner reasonably believes that a violation has occurred, 
        the commissioner shall make a special inspection in accordance 
        with the provisions of this section as soon as practicable, to 
        determine if a violation has occurred.  
           (c) An inspection conducted pursuant to a notice under this 
        subdivision may cover an entire site and is not limited to the 
        portion of the site specified in the notice.  If the 
        commissioner determines that reasonable grounds to believe that 
        a violation occurred do not exist, the commissioner must notify 
        the person making the request in writing of the determination. 
           Sec. 21.  Minnesota Statutes 1998, section 18D.331, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [ANHYDROUS AMMONIA CONTAINMENT, TAMPERING, THEFT, 
        TRANSPORT.] A person who knowingly violates section 18C.201, 
        subdivision 6, is guilty of a felony and may be sentenced to 
        imprisonment for not more than five years, or to payment of a 
        fine of not more than $50,000, or both. 
           Sec. 22.  Minnesota Statutes 1998, section 18E.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
        a person that is eligible for reimbursement or payment under 
        subdivisions 1, 2, and 3 from the agricultural chemical response 
        and reimbursement account for:  
           (1) 90 percent of the total reasonable and necessary 
        corrective action costs greater than $1,000 and less than or 
        equal to $100,000; and 
           (2) 100 percent of the total reasonable and necessary 
        corrective action costs greater than $100,000 but less than or 
        equal to $200,000; 
           (3) 80 percent of the total reasonable and necessary 
        corrective action costs greater than $200,000 but less than or 
        equal to $300,000; and 
           (4) 60 percent of the total reasonable and necessary 
        corrective action costs greater than $300,000 but less than or 
        equal to $350,000.  
           (b) A reimbursement or payment may not be made until the 
        board has determined that the costs are reasonable and are for a 
        reimbursement of the costs that were actually incurred. 
           (c) The board may make periodic payments or reimbursements 
        as corrective action costs are incurred upon receipt of invoices 
        for the corrective action costs. 
           (d) Money in the agricultural chemical response and 
        reimbursement account is appropriated to the commissioner to 
        make payments and reimbursements directed by the board under 
        this subdivision.  
           (e) The board may not make reimbursement greater than the 
        maximum allowed under paragraph (a) for all incidents on a 
        single site which: 
           (1) were not reported at the time of release but were 
        discovered and reported after July 1, 1989; and 
           (2) may have occurred prior to July 1, 1989, as determined 
        by the commissioner. 
           (f) The board may only reimburse an eligible person for 
        separate incidents within a single site if the commissioner 
        determines that each incident is completely separate and 
        distinct in respect of location within the single site or time 
        of occurrence. 
           Sec. 23.  Minnesota Statutes 1998, section 21.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITIONS.] A person may not advertise 
        or sell any agricultural, vegetable, flower, or tree and shrub 
        seed if:  
           (a) Except as provided in clauses (1) to (3), a test to 
        determine the percentage of germination required by sections 
        21.82 and 21.83 has not been completed within a nine-month 
        period, exclusive of the calendar month in which the test was 
        completed.  
           (1) When advertised or offered for sale as agricultural 
        seed, native grass and forb seeds must have been tested for 
        percentage of germination as required by section 21.82 within a 
        14-month period, exclusive of the calendar month in which the 
        test was completed. 
           (2) This prohibition does not apply to tree, shrub, 
        agricultural, or vegetable seeds packaged in hermetically sealed 
        containers.  Seeds packaged in hermetically sealed containers 
        under the conditions defined by rule may be offered for sale for 
        a period of 36 months after the last day of the month that the 
        seeds were tested for germination prior to packaging.  
           (3) If seeds in hermetically sealed containers are offered 
        for sale more than 36 months after the last day of the month in 
        which they were tested prior to packaging, they must be retested 
        within a nine-month period, exclusive of the calendar month in 
        which the retest was completed; 
           (b) It is not labeled in accordance with sections 21.82 and 
        21.83 or has false or misleading labeling; 
           (c) False or misleading advertisement has been used in 
        respect to its sale; 
           (d) It contains prohibited noxious weed seeds; 
           (e) It consists of or contains restricted noxious weed 
        seeds in excess of 25 seeds per pound or in excess of the number 
        declared on the label attached to the container of the seed or 
        associated with the seed; 
           (f) It contains more than one percent by weight of all weed 
        seeds; 
           (g) It contains less than the stated net weight of 
        contents; 
           (h) It contains less than the stated number of seeds in the 
        container; 
           (i) It contains any labeling, advertising, or other 
        representation subject to sections 21.82 and 21.83 representing 
        the seed to be certified unless:  
           (1) it has been determined by a seed certifying agency that 
        the seed conformed to standards of purity and identity as to 
        kind, species, subspecies, or variety, and also that tree seed 
        was found to be of the origin and elevation claimed, in 
        compliance with the rules pertaining to the seed; and 
           (2) the seed bears an official label issued for it by a 
        seed certifying agency stating that the seed is of a certified 
        class and a specified kind, species, subspecies, or variety; 
           (j) It is labeled with a variety name but not certified by 
        an official seed certifying agency when it is a variety for 
        which a United States certificate of plant variety protection 
        has been granted under United States Code, title 7, sections 
        2481 to 2486, specifying sale by variety name only as a class of 
        certified seed.  Seed from a certified lot may be labeled as to 
        variety name when used in a blend or mixture by or with approval 
        of the owner of the variety; or 
           (k) The person whose name appears on the label does not 
        have complete records including a file sample of each lot of 
        agricultural, vegetable, flower, tree or shrub seed sold in this 
        state as required in section 21.84. 
           Sec. 24.  Minnesota Statutes 1998, section 27.01, 
        subdivision 8, is amended to read: 
           Subd. 8.  [WHOLESALE PRODUCE DEALER.] (a) "Wholesale 
        produce dealer" or "dealer at wholesale" means:  
           (1) a person who buys from or contracts to buy with a 
        seller for production or sale of produce in wholesale lots for 
        resale; 
           (2) a person engaging in the business of a broker or agent, 
        who handles or deals in produce for a commission or fee; 
           (3) a truck owner or operator who buys produce in wholesale 
        lots for resale; and 
           (4) a person engaged in the business of a cannery, food 
        manufacturer, or food processor, who purchases produce in 
        wholesale lots as a part of that business. 
           (b) For purposes of paragraph (a), "wholesale lots" means 
        purchases from Minnesota sellers must total more than $12,000 
        annually. 
           (c) "Wholesale produce dealer" or "dealer at wholesale" 
        does not include:  
           (1) a truck owner and operator who regularly engages in the 
        business of transporting freight, including produce, for a 
        transportation fee only, and who does not purchase, contract to 
        purchase, or sell produce; 
           (2) a marketing cooperative association in which 
        substantially all of the voting stock is held by patrons who 
        patronize the association and in which at least 75 percent of 
        the business of the association is transacted with member or 
        stockholder patrons; 
           (3) a person who purchases Minnesota seasonally grown 
        perishable fresh fruits and vegetables, and pays cash, including 
        lawful money of the United States, a cashier's check, a 
        certified check, or a bank draft; 
           (4) a person who handles and deals in only canned, 
        packaged, or processed produce or packaged dairy products that 
        are no longer perishable as determined by the commissioner by 
        rule; or 
           (5) retail merchants who purchase produce, defined in 
        subdivision 2, directly from farmers, which in the aggregate 
        does not exceed $500 per month.  
           Sec. 25.  Minnesota Statutes 1998, section 27.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITED ACTS.] (a) A person subject to 
        the provisions of this section and sections 27.01 to 27.14 may 
        not:  
           (1) operate or advertise to operate as a dealer at 
        wholesale without a license; 
           (2) make any false statement or report as to the grade, 
        condition, markings, quality, or quantity of produce, as defined 
        in section 27.069, received or delivered, or act in any manner 
        to deceive a consignor or purchaser; 
           (3) refuse to accept a shipment contracted for by the 
        person, unless the refusal is based upon the showing of a state 
        inspection certificate secured with reasonable promptness after 
        the receipt of the shipment showing that the kind and quality of 
        produce, as defined in section 27.069, is other than that 
        purchased or ordered by the person; 
           (4) fail to account or make a settlement for produce within 
        the required time; 
           (5) violate or fail to comply with the terms or conditions 
        of a contract entered into by the person for the purchase, 
        production, or sale of produce; 
           (6) purchase for a person's own account any produce 
        received on consignment, either directly or indirectly, without 
        the consent of the consignor; 
           (7) issue a false or misleading market quotation, or cancel 
        a quotation during the period advertised by the person; 
           (8) increase the sales charges on produce shipped to the 
        person by means of "dummy" or fictitious sales; 
           (9) receive decorative forest products and the products of 
        farms and waters from foreign states or countries for sale or 
        resale, either within or outside of the state, and give the 
        purchaser the impression, through any method of advertising or 
        description, that the produce is of Minnesota origin; 
           (10) fail to notify in writing all suppliers of produce of 
        the protection afforded to suppliers by the person's licensee 
        bond, including:  availability of a bond, notice requirements, 
        and any other conditions of the bond; 
           (11) make a false statement to the commissioner on an 
        application for license or bond or in response to written 
        questions from the commissioner regarding the license or bond; 
           (12) commit to pay and not pay in full for all produce 
        committed for.  A processor may not pay an amount less than the 
        full contract price if the crop produced is satisfactory for 
        processing and is not harvested for reasons within the 
        processor's control.  If the processor sets the date for 
        planting, then bunching, unusual yields, and a processor's 
        inability or unwillingness to harvest must be considered to be 
        within the processor's control.  Under this clause growers must 
        be compensated for passed acreage at the same rate for grade and 
        yield as they would have received had the crop been harvested in 
        a timely manner minus any contractual provision for green manure 
        or feed value.  Both parties are excused from payment or 
        performance for crop conditions that are beyond the control of 
        the parties; or 
           (13) discriminate between different sections, localities, 
        communities, or cities, or between persons in the same 
        community, by purchasing produce from farmers of the same grade, 
        quality, and kind, at different prices, except that price 
        differentials are allowed if directly related to the costs of 
        transportation, shipping, and handling of the produce and a 
        person is allowed to meet the prices of a competitor in good 
        faith, in the same locality for the same grade, quality, and 
        kind of produce.  A showing of different prices by the 
        commissioner is prima facie evidence of discrimination.  
           (b) A separate violation occurs with respect to each 
        different person involved, each purchase or transaction 
        involved, and each false statement. 
           Sec. 26.  Minnesota Statutes 1999 Supplement, section 
        28A.075, is amended to read: 
           28A.075 [DELEGATION TO LOCAL BOARD OF HEALTH.] 
           (a) At the request of a local board of health that licensed 
        and inspected grocery and convenience stores on January 1, 1999, 
        the commissioner must enter into agreements before January 1, 
        2001, with local boards of health to delegate to the appropriate 
        local board of health the licensing and inspection duties of the 
        commissioner pertaining to retail food handlers that are grocery 
        or convenience stores.  At the request of a local board of 
        health that licensed and inspected part of any grocery or 
        convenience store on January 1, 1999, the commissioner must 
        enter into agreements before July 1, 2001, with local boards of 
        health to delegate to the appropriate local board of health the 
        licensing and inspection duties of the commissioner pertaining 
        to retail food handlers that are grocery or convenience stores.  
        Retail grocery or convenience stores inspected under the state 
        meat inspection program of chapter 31A are exempt from 
        delegation. 
           (b) A local board of health must adopt an ordinance 
        consistent with the Minnesota Food Code, Minnesota Rules, 
        chapter 4626, for all of its jurisdiction to regulate grocery 
        and convenience stores and the ordinance (Food Code) must not be 
        in conflict with standards set in law or rule. 
           Sec. 27.  Minnesota Statutes 1998, section 31.101, as 
        amended by Laws 1999, chapter 231, section 55, is amended to 
        read: 
           31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
           Subdivision 1.  [AUTHORITY.] The authority to commissioner 
        may promulgate and amend rules for the efficient administration 
        and enforcement of the Minnesota Food Law is vested in the 
        commissioner and is in addition to authority granted in sections 
        31.10, 31.11, and 31.12.  Such The rules when applicable shall 
        must conform, insofar as practicable and consistent with state 
        law, with those promulgated under the federal law.  This 
        rulemaking authority is in addition to that in sections 31.10, 
        31.11, and 31.12.  Rules adopted under this section may be 
        amended by the commissioner under chapter 14, subject to the 
        limitation in subdivision 7.  
           Subd. 2.  [HEARINGS.] Hearings authorized or required by 
        law shall must be conducted by the commissioner or such an 
        officer, agent, or employee as the commissioner may designate 
        designates for the purpose.  
           Subd. 3.  [FEDERAL PESTICIDE CHEMICAL REGULATIONS RULES.] 
        Federal pesticide chemical regulations and amendments thereto in 
        effect on April 1, 1997 2000, adopted under authority of the 
        Federal Insecticide, Fungicide and Rodenticide Act, as provided 
        by United States Code, title 7, chapter 6, are the pesticide 
        chemical rules in this state.  Such rules may be amended by the 
        commissioner proceeding in accordance with the Administrative 
        Procedure Act.  
           Subd. 4.  [FEDERAL FOOD ADDITIVE REGULATIONS RULES.] 
        Federal food additive regulations and amendments thereto in 
        effect on April 1, 1997 2000, as provided by Code of Federal 
        Regulations, title 21, parts 170 to 199, are the food additive 
        rules in this state.  Such rules may be amended by the 
        commissioner proceeding in accordance with the Administrative 
        Procedure Act.  
           Subd. 5.  [FEDERAL COLOR ADDITIVE REGULATIONS RULES.] 
        Federal color additive regulations and amendments thereto in 
        effect on April 1, 1997 2000, as provided by Code of Federal 
        Regulations, title 21, parts 70 to 82, are the color additive 
        rules in this state.  Such rules may be amended by the 
        commissioner proceeding in accordance with the Administrative 
        Procedure Act.  
           Subd. 6.  [FEDERAL SPECIAL DIETARY USE REGULATIONS RULES.] 
        Federal special dietary use regulations and amendments thereto 
        in effect on April 1, 1997 2000, as provided by Code of Federal 
        Regulations, title 21, parts 104 and 105, are the special 
        dietary use rules in this state.  Such rules may be amended by 
        the commissioner proceeding in accordance with the 
        Administrative Procedure Act.  
           Subd. 7.  [FAIR PACKAGING AND LABELING ACT REGULATIONS 
        RULES.] Federal regulations and amendments thereto in effect on 
        April 1, 1997 2000, adopted under the Fair Packaging and 
        Labeling Act, as provided by United States Code, title 15, 
        sections 1451 to 1461, are the rules in this state.  Such rules 
        may be amended by the commissioner proceeding in accordance with 
        the Administrative Procedure Act; provided that The commissioner 
        shall may not adopt amendments to such these rules or adopt 
        other rules which are contrary to the labeling requirements for 
        the net quantity of contents required pursuant to section 4 of 
        the Fair Packaging and Labeling Act and the 
        regulations promulgated thereunder adopted under that act.  
           Subd. 8.  [FOOD AND DRUGS REGULATIONS RULES.] Applicable 
        federal regulations including recodification contained in Code 
        of Federal Regulations, title 21, parts 0-1299, Food and Drugs, 
        in effect April 1, 1997 2000, and not otherwise adopted herein, 
        also are adopted as food rules of this state.  Such rules may be 
        amended by the commissioner in accordance with the 
        Administrative Procedure Act. 
           Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
        effect on April 1, 1997 2000, as provided by Code of Federal 
        Regulations, title 50, parts 260 to 267, are incorporated as 
        part of the fishery products rules in this state for state 
        inspections performed under a cooperative agreement with the 
        United States Department of Commerce, National Marine Fisheries 
        Service.  The rules may be amended by the commissioner under 
        chapter 14. 
           Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
        effect on January April 1, 1999 2000, as provided by Code of 
        Federal Regulations, title 9, part 301, et seq., are 
        incorporated as part of the meat and poultry rules in this 
        state.  The rules may be amended by the commissioner under 
        chapter 14. 
           Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
        OTHER PRODUCTS.] Federal regulations in effect on April 1, 
        1997 2000, as provided by Code of Federal Regulations, title 7, 
        parts 51 and 52, are incorporated as part of the rules in this 
        state.  The rules may be amended by the commissioner under 
        chapter 14. 
           Sec. 28.  Minnesota Statutes 1998, section 31.102, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
        RULES.] Federal definitions and standards of identity, quality, 
        and fill of container and amendments thereto, in effect on April 
        1, 1997 2000, adopted under authority of the federal act, are 
        the definitions and standards of identity, quality, and fill of 
        container in this state.  Such The rules may be amended by the 
        commissioner proceeding in accordance with the Administrative 
        Procedure Act under chapter 14.  
           Sec. 29.  Minnesota Statutes 1998, section 31.103, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
        labels of consumer commodities shall must conform with the 
        requirements for the declaration of net quantity of contents of 
        section 4 of the Fair Packaging and Labeling Act (United States 
        Code, title 15, section 1451 et seq.) and federal regulations in 
        effect on April 1, 1997 2000, promulgated pursuant 
        thereto adopted under authority of that act, except to the 
        extent that the commissioner shall exercise authority to amend 
        such amends the rules in accordance with the Administrative 
        Procedure Act under chapter 14.  Consumer commodities exempted 
        from the requirements of section 4 of the Fair Packaging and 
        Labeling Act shall are also be exempt from this subdivision.  
           Sec. 30.  Minnesota Statutes 1998, section 31.104, is 
        amended to read: 
           31.104 [FOOD LABELING EXEMPTION RULES.] 
           The commissioner shall promulgate rules exempting from any 
        labeling requirement food which is, in accordance with the 
        practice of the trade, to be processed, labeled or repacked in 
        substantial quantities at establishments other than those where 
        originally processed or packed, on condition that such food is 
        not adulterated or misbranded upon removal from such processing, 
        labeling or repacking establishment.  
           Federal regulations in effect on April 1, 1997 2000, 
        adopted under authority of the federal act relating to such 
        exemptions are effective in this state unless the commissioner 
        shall exercise authority to amend such regulations amends them.  
        The commissioner also may promulgate amendments to amend 
        existing rules concerning exemptions in accordance with the 
        Administrative Procedure Act under chapter 14. 
           Sec. 31.  Minnesota Statutes 1998, section 31.632, is 
        amended to read: 
           31.632 [MINNESOTA APPROVED MEATS; USE OF LABEL.] 
           The commissioner may authorize, pursuant to rules 
        promulgated in the manner provided by law, the use of the label 
        "Minnesota Approved" on meats and, meat products, poultry, and 
        poultry products processed by persons licensed under sections 
        31.51 to 31.58, or by establishments under the inspection 
        program of the United States Department of Agriculture, if the 
        ingredients of such the poultry, poultry products, meats, and 
        meat products are meat, meat by-products, poultry, poultry 
        products, or meat food products which have been inspected and 
        passed by the United States Department of Agriculture, or the 
        Minnesota department of agriculture and further if such the 
        poultry, poultry products, meats, and meat products, after such 
        processing, are sound, healthful, wholesome, and fit for human 
        food.  A person or establishment desiring to label poultry, 
        poultry products, meats, and meat products as provided in this 
        section shall apply to the commissioner for authority to do so.  
        The commissioner shall grant this authority to the applicant if 
        the applicant complies with the provisions of this section and 
        rules promulgated pursuant to this section.  A person using the 
        label "Minnesota Approved" on poultry, poultry products, meat 
        and, or meat products contrary to law is guilty of a misdemeanor.
           Sec. 32.  Minnesota Statutes 1998, section 31.633, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MENU REQUIREMENT.] Any restaurant, eating 
        place, or other establishment serving meat or poultry in any 
        form to the public, which meat that has any filler or meat or 
        poultry substitute added to it or incorporated in it, shall 
        clearly and prominently indicate on its menu or bill of fare the 
        meat entrees that contain filler or meat or poultry substitutes. 
           Sec. 33.  Minnesota Statutes 1998, section 31.651, is 
        amended to read: 
           31.651 [KOSHER PRODUCTS, UNLAWFUL SALE.] 
           Subdivision 1.  [KOSHER REQUIREMENTS.] No person shall sell 
        or expose for sale any poultry, poultry products, meat, or meat 
        preparations and falsely represent the same to be kosher, 
        whether such poultry, poultry products, meat, or meat 
        preparations be raw or prepared for human consumption; nor shall 
        the person permit any such products or the contents of any 
        package or container to be labeled or to have inscribed thereon 
        the word "kosher" in any language unless such products shall 
        have been prepared or processed in accordance with orthodox 
        Hebrew religious requirements sanctioned by a recognized 
        rabbinical council.  
           Subd. 2.  [NOTICE REQUIRED.] Any person who sells or 
        exposes for sale in the same place of business both kosher and 
        nonkosher poultry, meat, or meat preparations, either raw or 
        prepared for human consumption, shall indicate on window signs 
        and all display advertising, in block letters at least four 
        inches in height, "kosher and nonkosher meat and poultry sold 
        here"; and shall display over each kind of poultry, meat, or 
        meat preparation so exposed a sign, in block letters at least 
        two inches in height, reading, "kosher meat," or "kosher 
        poultry," "nonkosher meat," or "nonkosher poultry," as the case 
        may be; provided that subdivision 2 shall not apply to persons 
        selling or offering for sale kosher poultry, poultry products, 
        meats, or meat products solely in separate consumer packages, 
        which have been prepackaged and properly labeled "kosher."  
           Subd. 3.  [PRESUMPTION.] Possession of nonkosher poultry, 
        poultry products, meat, or meat preparations in any place of 
        business shall be presumptive evidence that the person in 
        possession thereof exposes the same for sale.  
           Subd. 4.  [PRIMA FACIE EVIDENCE.] The absence of a duly 
        sanctioned kosher "plumba," mark, stamp, tag, brand, or label 
        from any poultry, poultry products, meat, meat preparation, or 
        food product shall be prima facie evidence that such product is 
        nonkosher.  
           Sec. 34.  Minnesota Statutes 1999 Supplement, section 
        31A.01, is amended to read: 
           31A.01 [POLICY.] 
           Meat, poultry, poultry food products, and meat food 
        products are an important source of the nation's total supply of 
        food.  It is essential in the public interest that the health 
        and welfare of consumers be protected by assuring that meat, 
        poultry, and meat food products distributed to them are 
        wholesome, unadulterated, and properly marked, labeled, and 
        packaged.  Unwholesome, adulterated, or misbranded meat, 
        poultry, poultry food products, or meat food products injure the 
        public welfare, destroy markets for wholesome, unadulterated, 
        and properly labeled and packaged meat, poultry, poultry food 
        products, and meat food products, and result in losses to 
        livestock producers and processors of meat, poultry, poultry 
        food products, and meat food products and injury to consumers.  
        Unwholesome, adulterated, mislabeled, or deceptively packaged 
        articles can be sold at lower prices and compete unfairly with 
        wholesome, unadulterated, and properly labeled and packaged 
        articles, to the detriment of consumers and the general public.  
           Regulation by the commissioner and cooperation between this 
        state and the United States under this chapter are appropriate 
        to protect the health and welfare of consumers and accomplish 
        the purposes of this chapter.  
           Sec. 35.  Minnesota Statutes 1998, section 31A.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CUSTOM PROCESSING.] "Custom processing" means 
        slaughtering, eviscerating, dressing, or processing an animal or 
        processing meat products or poultry products for the owner of 
        the animal or of the meat products and poultry products, if all 
        meat products or poultry products derived from the custom 
        operation are returned to the owner of the animal or of the meat 
        products or poultry products.  No person may sell, offer for 
        sale, or possess with intent to sell meat derived from custom 
        processing. 
           Sec. 36.  Minnesota Statutes 1998, section 31A.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [MEAT BROKER.] "Meat broker" means a person in 
        the business of buying or selling carcasses, parts of carcasses, 
        meat, or meat food products, poultry, or poultry products of 
        animals on commission, or otherwise negotiating purchases or 
        sales of those articles other than for the person's own account 
        or as an employee of another person, firm, or corporation.  
           Sec. 37.  Minnesota Statutes 1998, section 31A.02, 
        subdivision 10, is amended to read: 
           Subd. 10.  [MEAT FOOD PRODUCT; POULTRY FOOD PRODUCT.] "Meat 
        food product" or "poultry food product" means a product usable 
        as human food and made wholly or in part from meat or poultry or 
        a portion of the carcass of cattle, sheep, swine, poultry, 
        farmed cervidae, as defined in section 17.451, subdivision 2, 
        llamas, as defined in section 17.455, subdivision 2, ratitae, as 
        defined in section 17.453, subdivision 3, or goats.  "Meat food 
        product" or "poultry food product" does not include products 
        which contain meat, poultry, or other portions of the carcasses 
        of cattle, sheep, swine, farmed cervidae, llamas, ratitae, or 
        goats only in a relatively small proportion or that historically 
        have not been considered by consumers as products of the meat 
        food industry, and which are exempted from definition as a meat 
        food product or poultry food product by the commissioner under 
        the conditions the commissioner prescribes to assure that the 
        meat or other portions of carcasses contained in the products 
        are not adulterated and that the products are not represented as 
        meat food products or poultry food products.  
           "Meat food product," as applied to products of equines, has 
        a meaning comparable to that for cattle, sheep, swine, farmed 
        cervidae, llamas, ratitae, and goats. 
           Sec. 38.  Minnesota Statutes 1998, section 31A.02, 
        subdivision 13, is amended to read: 
           Subd. 13.  [ADULTERATED.] "Adulterated" means a carcass, 
        part of a carcass, meat, poultry, poultry food product, or meat 
        food product under one or more of the following circumstances: 
           (a) if it bears or contains a poisonous or harmful 
        substance which may render it injurious to health; but if the 
        substance is not an added substance, the article is not 
        adulterated if the quantity of the substance in or on the 
        article does not ordinarily make it injurious to health; 
           (b) if it bears or contains, by administration of a 
        substance to the live animal or otherwise, an added poisonous or 
        harmful substance, other than (1) a pesticide chemical in or on 
        a raw agricultural commodity; (2) a food additive; or (3) a 
        color additive, which may, in the judgment of the commissioner, 
        make the article unfit for human food; 
           (c) if it is, in whole or in part, a raw agricultural 
        commodity that bears or contains a pesticide chemical which is 
        unsafe within the meaning of section 408 of the Federal Food, 
        Drug, and Cosmetic Act; 
           (d) if it bears or contains a food additive which is unsafe 
        within the meaning of section 409 of the Federal Food, Drug, and 
        Cosmetic Act; 
           (e) if it bears or contains a color additive which is 
        unsafe within the meaning of section 706 of the Federal Food, 
        Drug, and Cosmetic Act; 
           (f) if it contains a filthy, putrid, or decomposed 
        substance or is for any other reason unfit for human food; 
           (g) if it has been prepared, packed, or held under 
        unsanitary conditions so that it may be contaminated with filth 
        or harmful to health; 
           (h) if it is wholly or partly the product of an animal 
        which has died otherwise than by slaughter; 
           (i) if its container is wholly or partly composed of a 
        poisonous or harmful substance which may make the contents 
        harmful to health; 
           (j) if it has been intentionally subjected to radiation, 
        unless the use of the radiation conformed with a regulation or 
        exemption in effect under section 409 of the Federal Food, Drug, 
        and Cosmetic Act; 
           (k) if a valuable constituent has been wholly or partly 
        omitted or removed from it; if a substance has been wholly or 
        partly substituted for it; if damage or inferiority has been 
        concealed; or if a substance has been added to it or mixed or 
        packed with it so as to increase its bulk or weight, reduce its 
        quality or strength, or make it appear better or of greater 
        value than it is; or 
           (l) if it is margarine containing animal fat and any of the 
        raw material used in it wholly or partly consisted of a filthy, 
        putrid, or decomposed substance.  
           Sec. 39.  Minnesota Statutes 1998, section 31A.02, 
        subdivision 14, is amended to read: 
           Subd. 14.  [MISBRANDED.] "Misbranded" means a carcass, part 
        of a carcass, meat, poultry, poultry food product, or meat food 
        product under one or more of the following circumstances: 
           (a) if its labeling is false or misleading; 
           (b) if it is offered for sale under the name of another 
        food; 
           (c) if it is an imitation of another food, unless its label 
        bears, in type of uniform size and prominence, the word 
        "imitation" followed immediately by the name of the food 
        imitated; 
           (d) if its container is made, formed, or filled so as to be 
        misleading; 
           (e) if its package or other container does not have a label 
        showing (1) the name and place of business of the manufacturer, 
        packer, or distributor; and (2) an accurate statement of the 
        quantity of the contents in terms of weight, measure, or 
        numerical count subject to reasonable variations permitted and 
        exemptions for small packages established in rules of the 
        commissioner; 
           (f) if a word, statement, or other information required by 
        or under authority of this chapter to appear on the label or 
        other labeling is not prominently and conspicuously placed on 
        the label or labeling in terms that make it likely to be read 
        and understood by the ordinary individual under customary 
        conditions of purchase and use; 
           (g) if it is represented as a food for which a definition 
        and standard of identity or composition has been prescribed by 
        rules of the commissioner under section 31A.07, unless (1) it 
        conforms to the definition and standard, and (2) its label bears 
        the name of the food specified in the definition and standard 
        and, if required by the rules, the common names of optional 
        ingredients, other than spices, flavoring, and coloring, present 
        in the food; 
           (h) if it is represented as a food for which a standard of 
        fill of container has been prescribed by rules of the 
        commissioner under section 31A.07, and it falls below the 
        applicable standard of fill of container, unless its label 
        bears, in the manner and form the rules specify, a statement 
        that it falls below the standard; 
           (i) if it is not subject to paragraph (g), unless its label 
        bears (1) the usual name of the food, if there is one, and (2) 
        in case it is fabricated from two or more ingredients, the 
        common or usual name of each ingredient; except that spices, 
        flavorings, and colorings may, when authorized by the 
        commissioner, be designated as spices, flavorings, and colorings 
        without naming each.  To the extent that compliance with clause 
        (2) is impracticable, or results in deception or unfair 
        competition, the commissioner shall establish exemptions by 
        rule; 
           (j) if it purports to be or is represented for special 
        dietary uses, unless its label bears the information concerning 
        its vitamin, mineral, and other dietary properties that the 
        commissioner, after consultation with the Secretary of 
        Agriculture of the United States, determines by rule to be 
        necessary to inform purchasers of its value for special dietary 
        uses; 
           (k) if it bears or contains any artificial flavoring, 
        artificial coloring, or chemical preservative, unless it bears 
        labeling stating that fact; 
           (l) if it fails to bear, directly or on its container, as 
        the commissioner by rule prescribes, the inspection legend and 
        other information the commissioner may require by rule to assure 
        that it will not have false or misleading labeling and that the 
        public will be told how to keep the article wholesome.  
           Sec. 40.  Minnesota Statutes 1998, section 31A.03, is 
        amended to read: 
           31A.03 [INSPECTION OF LIVE ANIMALS; DISPOSITION OF 
        DEFECTIVE ANIMALS.] 
           To prevent the use in intrastate commerce of adulterated 
        meat and, meat food products, poultry, and poultry food 
        products, the commissioner shall appoint inspectors and have 
        them examine and inspect all animals before the animals enter a 
        slaughtering, packing, meat canning, rendering, or similar 
        establishment in this state in which slaughtering of animals and 
        preparation of meat and, meat food products, poultry, and 
        poultry food products are conducted solely for intrastate 
        commerce.  Animals found on inspection to show symptoms of 
        disease must be set apart and slaughtered separately from other 
        animals.  The carcasses of those animals must be carefully 
        examined and inspected under rules of the commissioner.  
           Sec. 41.  Minnesota Statutes 1998, section 31A.05, is 
        amended to read: 
           31A.05 [APPLICATION OF INSPECTION PROVISIONS.] 
           Sections 31A.03 and 31A.04 apply to carcasses or parts of 
        animals, poultry, or poultry food products, and meat or meat 
        products derived from them that are usable as human food, when 
        these items are brought into a slaughtering, meat canning, 
        salting, packing, rendering, or similar establishment, where 
        inspection under sections 31A.01 to 31A.16 is done.  Examination 
        and inspection must be made before the carcasses or animal parts 
        may enter into a department where they are to be treated and 
        prepared for meat food products or poultry food products. 
           Sections 31A.03 and 31A.04 also apply to products which, 
        after having been issued from a slaughtering, meat canning, 
        salting, packing, rendering, or similar establishment, must be 
        returned to it or to a similar establishment where inspection is 
        done. 
           The commissioner may limit the entry of carcasses, parts of 
        carcasses, poultry, poultry food products, meat and, meat food 
        products, and other materials into an establishment where 
        inspection under sections 31A.01 to 31A.16 is done to conditions 
        the commissioner prescribes to assure that allowing the entry of 
        articles into inspected establishments is consistent with the 
        purposes of this chapter.  
           Sec. 42.  Minnesota Statutes 1998, section 31A.06, is 
        amended to read: 
           31A.06 [INSPECTORS' DUTIES.] 
           The commissioner shall appoint inspectors to examine and 
        inspect poultry food products and meat food products prepared in 
        a slaughtering, meat canning, salting, packing, rendering, or 
        similar establishment, where the articles are prepared solely 
        for intrastate commerce.  For examination and inspection 
        purposes, the inspectors must be given access at all times, 
        whether the establishment is operated or not, to every part of 
        the establishment.  The inspectors shall mark, stamp, tag, or 
        label as "Minnesota Inspected and Passed" all products found to 
        be unadulterated, and the inspectors shall label, mark, stamp, 
        or tag as "Minnesota Inspected and Condemned" all products found 
        to be adulterated.  Condemned meat food products or poultry food 
        products must be destroyed for food purposes under section 
        31A.04.  The commissioner may remove inspectors from an 
        establishment which fails to destroy condemned poultry food 
        products or meat food products.  
           Sec. 43.  Minnesota Statutes 1998, section 31A.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LABELING; PACKING.] When poultry, poultry 
        food products, meat, or a meat food product products prepared 
        for intrastate commerce which has have been inspected and marked 
        "Minnesota Inspected and Passed" is placed or packed in a can, 
        pot, tin, canvas, or other receptacle or covering in an 
        establishment where inspection is done under sections 31A.01 to 
        31A.31, the person, firm, or corporation preparing the product 
        shall have a label attached to the can, pot, tin, canvas, or 
        other receptacle or covering, under supervision of an 
        inspector.  The label must state that the contents have been 
        "Minnesota Inspected and Passed" under sections 31A.01 to 
        31A.31.  An inspection or examination of poultry, poultry food 
        products, meat, or meat food products deposited or enclosed in 
        cans, tins, pots, canvas, or other receptacles or coverings in 
        an establishment where inspection is done under this chapter is 
        not complete until the poultry, poultry food products, meat, or 
        meat food products have been sealed or enclosed in the can, tin, 
        pot, canvas, or other receptacle or covering under the 
        supervision of an inspector.  
           Sec. 44.  Minnesota Statutes 1998, section 31A.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LABELS; MARKS.] All carcasses, parts of 
        carcasses, poultry, poultry food products, meat, and meat food 
        products inspected at an establishment under this chapter and 
        found not to be adulterated, must when they leave the 
        establishment bear, directly or on their containers, legible 
        labels or official marks as required by the commissioner.  
           Sec. 45.  Minnesota Statutes 1998, section 31A.08, is 
        amended to read: 
           31A.08 [RULES.] 
           The commissioner shall have experts in sanitation or other 
        competent inspectors inspect all slaughtering, meat canning, 
        salting, packing, rendering, or similar establishments in which 
        animals are slaughtered and their poultry, poultry food 
        products, meat, and meat food products are prepared solely for 
        intrastate commerce.  The inspections must be conducted as 
        necessary for the commissioner to know the sanitary conditions 
        of the establishments, and to prescribe the rules of sanitation 
        under which the establishments must be maintained.  If an 
        establishment has sanitary conditions that allow poultry, 
        poultry food products, meat, or meat food products to become 
        adulterated, the commissioner shall refuse to allow the poultry, 
        poultry food products, meat, or meat food products to be 
        labeled, marked, stamped, or tagged as "Minnesota Inspected and 
        Passed."  
           Sec. 46.  Minnesota Statutes 1998, section 31A.10, is 
        amended to read: 
           31A.10 [PROHIBITIONS.] 
           No person may, with respect to an animal, carcass, part of 
        a carcass, poultry, poultry food product, meat, or meat food 
        product: 
           (1) slaughter an animal or prepare an article that is 
        usable as human food, at any establishment preparing articles 
        solely for intrastate commerce, except in compliance with this 
        chapter; 
           (2) sell, transport, offer for sale or transportation, or 
        receive for transportation, in intrastate commerce (i) articles 
        which are usable as human food and are adulterated or misbranded 
        at the time of sale, transportation, offer for sale or 
        transportation, or receipt for transportation; or (ii) articles 
        required to be inspected under sections 31A.01 to 31A.16 that 
        have not been inspected and passed; 
           (3) do something to an article that is usable as human food 
        while the article is being transported in intrastate commerce or 
        held for sale after transportation, which is intended to cause 
        or has the effect of causing the article to be adulterated or 
        misbranded; or 
           (4) sell, offer for sale, or possess with intent to sell 
        meat derived from custom processing.  
           Sec. 47.  Minnesota Statutes 1998, section 31A.13, is 
        amended to read: 
           31A.13 [INSPECTORS.] 
           The commissioner shall appoint inspectors to inspect 
        animals, whole or parts of carcasses, poultry, poultry food 
        products, meat, and meat food products the inspection of which 
        is provided for by law, and the sanitary conditions of all 
        establishments in which the poultry, poultry food products, 
        meat, and meat food products are prepared.  Inspectors shall 
        refuse to stamp, mark, tag, or label a whole or part of a 
        carcass or a meat food product derived from it, prepared in an 
        establishment covered by sections 31A.01 to 31A.12, until it has 
        actually been inspected and found to be not adulterated.  
        Inspectors shall perform other duties required by this chapter 
        or by rules adopted by the commissioner that are necessary for 
        the efficient execution of this chapter.  Inspections under this 
        chapter must conform to the rules adopted by the commissioner 
        consistent with this chapter.  
           Sec. 48.  Minnesota Statutes 1999 Supplement, section 
        31A.15, subdivision 1, is amended to read: 
           Subdivision 1.  [INSPECTION.] The provisions of sections 
        31A.01 to 31A.16 requiring inspection of the slaughter of 
        animals and the preparation of the carcasses, parts of 
        carcasses, meat, poultry, poultry food products, and meat food 
        products at establishments conducting slaughter and preparation 
        do not apply: 
           (1) to the processing by a person of the person's own 
        animals and the owner's preparation and transportation in 
        intrastate commerce of the carcasses, parts of carcasses, meat, 
        poultry, poultry food products, and meat food products of those 
        animals exclusively for use by the owner and members of the 
        owner's household, nonpaying guests, and employees; or 
           (2) to the custom processing by a person of cattle, sheep, 
        swine, poultry, or goats delivered by the owner for processing, 
        and the preparation or transportation in intrastate commerce of 
        the carcasses, parts of carcasses, meat, poultry, poultry food 
        products, and meat food products of animals, exclusively for use 
        in the household of the owner by the owner and members of the 
        owner's household, nonpaying guests, and employees.  Meat from 
        custom processing of cattle, sheep, swine, poultry, or goats 
        must be identified and handled as required by the commissioner, 
        during all phases of processing, chilling, cooling, freezing, 
        preparation, storage, and transportation.  The custom processor 
        may not engage in the business of buying or selling carcasses, 
        parts of carcasses, meat, poultry, poultry food products, or 
        meat food products of animals usable as human food unless the 
        carcasses, parts of carcasses, meat, poultry, poultry food 
        products, or meat food products have been inspected and passed 
        and are identified as inspected and passed by the Minnesota 
        department of agriculture or the United States Department of 
        Agriculture.  
           Sec. 49.  Minnesota Statutes 1998, section 31A.16, is 
        amended to read: 
           31A.16 [STORING AND HANDLING CONDITIONS.] 
           The commissioner may adopt rules prescribing conditions 
        under which carcasses, parts of carcasses, poultry, poultry food 
        products, meat, and meat food products of animals usable as 
        human food must be stored or otherwise handled by a person in 
        the business of buying, selling, freezing, storing, or 
        transporting them, in or for intrastate commerce, if the 
        commissioner considers action necessary to assure that the 
        articles will not be adulterated or misbranded when delivered to 
        the consumer.  
           Sec. 50.  Minnesota Statutes 1998, section 31A.17, is 
        amended to read: 
           31A.17 [ARTICLES NOT INTENDED AS HUMAN FOOD.] 
           Inspection must not be provided under sections 31A.01 to 
        31A.16 at an establishment for the slaughter of animals or the 
        preparation of carcasses or parts or products of animals which 
        are not intended for use as human food.  Before they are offered 
        for sale or transportation in intrastate commerce, those 
        articles must be denatured or otherwise identified as prescribed 
        by rules of the commissioner to deter their use for human food, 
        unless they are naturally inedible by humans.  No person may 
        buy, sell, transport, offer for sale or transportation, or 
        receive for transportation, in intrastate commerce, carcasses, 
        parts of carcasses, poultry, poultry food products, meat, or 
        meat food products of animals which are not intended for use as 
        human food unless they are denatured or otherwise identified as 
        required by the rules of the commissioner or are naturally 
        inedible by humans. 
           Sec. 51.  Minnesota Statutes 1998, section 31B.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LIVESTOCK.] "Livestock" means live or dead 
        cattle, sheep, swine, horses, mules, farmed cervidae, as defined 
        in section 17.451, subdivision 2, llamas, as defined in section 
        17.455, subdivision 2, ratitae, as defined in section 17.453, 
        subdivision 3, bison (buffalo), or goats. 
           Sec. 52.  Minnesota Statutes 1999 Supplement, section 
        31B.07, subdivision 3, is amended to read: 
           Subd. 3.  [EXPIRATION.] The reporting provisions of this 
        section expire 30 days after a department or agency of the 
        federal government has a price reporting requirement at least as 
        comprehensive as this section, as determined by the commissioner 
        and results in Minnesota-specific information being available to 
        the commissioner and to Minnesota producers.  
           Sec. 53.  Minnesota Statutes 1998, section 41B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
        a program in sections 41B.01 to 41B.23: 
           (1) a borrower must be a resident of Minnesota or a 
        domestic family farm corporation, as defined in section 500.24, 
        subdivision 2; and 
           (2) the borrower or one of the borrowers must be the 
        principal operator of the farm or, for a prospective homestead 
        redemption borrower, must have at one time been the principal 
        operator of a farm; and 
           (3) the borrower must not receive assistance under sections 
        41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans 
        during the borrower's lifetime. 
           Sec. 54.  Minnesota Statutes 1998, section 41B.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
        to the eligibility requirements of subdivision 1, a prospective 
        borrower for a restructured loan must:  
           (1) have received at least 50 percent of average annual 
        gross income from farming for the past three years or, for 
        homesteaded property, received at least 40 percent of average 
        gross income from farming in the past three years, and farming 
        must be the principal occupation of the borrower; 
           (2) have a debt-to-asset ratio equal to or greater than 50 
        percent and in determining this ratio, the assets must be valued 
        at their current market value; 
           (3) have projected annual expenses, including operating 
        expenses, family living, and interest expenses after the 
        restructuring, that do not exceed 95 percent of the borrower's 
        projected annual income considering prior production history and 
        projected prices for farm production, except that the authority 
        may reduce the 95 percent requirement if it finds that other 
        significant factors in the loan application support the making 
        of the loan; and 
           (4) demonstrate substantial difficulty in meeting projected 
        annual expenses without restructuring the loan; and 
           (5) must have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, of less 
        than $400,000 in 1999 and an amount in subsequent years which is 
        adjusted for inflation by multiplying $400,000 by the cumulative 
        inflation rate as determined by the United States All-Items 
        Consumer Price Index. 
           Sec. 55.  Minnesota Statutes 1998, 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 45 percent of the principal amount of 
        the loan or $100,000 $125,000, 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. 56.  Minnesota Statutes 1998, section 41B.04, 
        subdivision 8, is amended to read: 
           Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
        that are eligible for restructuring under sections 41B.01 to 
        41B.23 and upon acceptance by the authority, the authority shall 
        enter into a participation agreement or other financial 
        arrangement whereby it shall participate in a restructured loan 
        to the extent of 45 percent of the primary principal or 
        $100,000 $150,000, whichever is less.  The authority's portion 
        of the loan must be protected during the authority's 
        participation by the first mortgage held by the eligible lender 
        to the extent of its participation in the loan. 
           Sec. 57.  Minnesota Statutes 1998, section 41B.042, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
        may participate in new seller-sponsored loans to the extent of 
        45 percent of the principal amount of the loan or 
        $100,000 $125,000, 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 
        seller's retained portion of the loan. 
           Sec. 58.  Minnesota Statutes 1998, section 41B.043, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
        $35,000 or $100,000 $125,000 for a loan participation or be made 
        to refinance an existing debt.  Each direct loan and 
        participation must be secured by a mortgage on real property and 
        such other security as the authority may require. 
           Sec. 59.  Minnesota Statutes 1998, section 41B.045, 
        subdivision 2, is amended to read: 
           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.  A prospective 
        borrower must have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, of less 
        than $400,000 in 1999 and an amount in subsequent years which is 
        adjusted for inflation by multiplying $400,000 by the cumulative 
        inflation rate as determined by the United States All-Items 
        Consumer Price Index. 
           Participation is limited to 45 percent of the principal 
        amount of the loan or $250,000, 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.  Loans under 
        this program must not be included in the lifetime limitation 
        calculated under section 41B.03, subdivision 1. 
           Sec. 60.  Minnesota Statutes 1998, section 223.16, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
        purchases grain from a producer for the purpose of reselling the 
        grain with the exception of a person who purchases seed grain 
        for crop production or who purchases grain as feed for the 
        person's own livestock. 
           Sec. 61.  Minnesota Statutes 1998, section 223.17, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CASH SALES; MANNER OF PAYMENT.] For a cash sale 
        of a shipment of grain which is part of a multiple shipment 
        sale, the grain buyer shall tender payment to the seller in cash 
        or by check not later than ten days after the sale of that 
        shipment, except that when the entire sale is completed, payment 
        shall be tendered not later than the close of business on the 
        next day, or within 48 hours, whichever is later.  For other 
        cash sales the grain buyer, before the close of business on the 
        next business day after the sale, shall tender payment to the 
        seller in cash or by check, or shall wire or mail funds to the 
        seller's account in the amount of at least 80 percent of the 
        value of the grain at the time of delivery.  The grain buyer 
        shall complete final settlement as rapidly as possible through 
        ordinary diligence.  Any transaction which is not a cash sale in 
        compliance with the provisions of this subdivision constitutes a 
        voluntary extension of credit which is not afforded protection 
        under the grain buyer's bond, and which must comply with 
        sections 223.175 and 223.177. 
           Sec. 62.  Minnesota Statutes 1998, section 223.175, is 
        amended to read: 
           223.175 [WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS; 
        FORM.] 
           A written confirmation required under section 223.177, 
        subdivision 2, and a written voluntary extension of credit 
        contract must include those items prescribed by the commissioner 
        by rule.  A contract shall include a statement of the legal and 
        financial responsibilities of grain buyers and sellers 
        established in this chapter.  A contract shall also include the 
        following statement in not less than ten point, all capital 
        type, framed in a box with space provided for the seller's 
        signature:  "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF 
        CREDIT.  THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S 
        BOND."  If a written contract is provided at the time the grain 
        is delivered to the grain buyer, the seller shall sign the 
        contract in the space provided beneath the statement.  A 
        transaction that does not meet the provisions of a voluntary 
        extension of credit, including the issuance and signing of a 
        voluntary extension of credit contract, is a cash sale. 
           Sec. 63.  Minnesota Statutes 1998, section 232.21, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [OPEN STORAGE.] "Open storage" means grain or 
        agricultural products received by a warehouse operator from a 
        depositor for which warehouse receipts have not been issued or a 
        purchase made and the records documented accordingly. 
           Sec. 64.  Minnesota Statutes 1998, section 232.23, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DISCRIMINATION PROHIBITED.] (a) Except as 
        provided in paragraph (b), a public grain warehouse operator 
        must receive for storage, so far as the capacity of the grain 
        warehouse will permit, all sound grain tendered in warehouseable 
        condition without discrimination against any person tendering 
        the grain. 
           (b) The requirements in paragraph (a) do not apply to 
        storage capacity owned by producers that is managed by the 
        public grain warehouse operator but is not under the same 
        ownership as the grain warehouse. 
           Sec. 65.  Minnesota Statutes 1998, section 232.23, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GRAIN DELIVERED CONSIDERED SOLD STORED.] All 
        grain delivered to a public grain warehouse operator shall be 
        considered sold stored at the time of delivery, unless 
        arrangements have been made with the public grain warehouse 
        operator prior to or at the time of delivery to apply the grain 
        on contract, for shipment or consignment or for storage cash 
        sale.  Grain may be held in open storage or placed on a 
        warehouse receipt.  Warehouse receipts must be issued for all 
        grain held in open storage within six months of delivery to the 
        warehouse unless the depositor has signed a statement that the 
        depositor does not desire a warehouse receipt.  The warehouse 
        operator's tariff applies for any grain that is retained in open 
        storage or under warehouse receipt.  
           Sec. 66.  Minnesota Statutes 1998, section 232.23, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LIABILITY.] A public grain warehouse 
        operator issuing a grain warehouse receipt is liable to the 
        depositor for the delivery of the kind, grade, and net quantity 
        of grain called for by the grain warehouse receipt. or scale 
        ticket marked "store." 
           Sec. 67.  Minnesota Statutes 1999 Supplement, section 
        500.24, subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] The definitions in this 
        subdivision apply to this section. 
           (a) "Farming" means the production of (1) agricultural 
        products; (2) livestock or livestock products; (3) milk or milk 
        products; or (4) fruit or other horticultural products.  It does 
        not include the processing, refining, or packaging of said 
        products, nor the provision of spraying or harvesting services 
        by a processor or distributor of farm products.  It does not 
        include the production of timber or forest products, the 
        production of poultry or poultry products, or the feeding and 
        caring for livestock that are delivered to a corporation for 
        slaughter or processing for up to 20 days before slaughter or 
        processing. 
           (b) "Family farm" means an unincorporated farming unit 
        owned by one or more persons residing on the farm or actively 
        engaging in farming. 
           (c) "Family farm corporation" means a corporation founded 
        for the purpose of farming and the ownership of agricultural 
        land in which the majority of the voting stock is held by and 
        the majority of the stockholders are persons or, the spouses of 
        persons, or current beneficiaries of one or more family farm 
        trusts in which the trustee holds stock in a family farm 
        corporation, related to each other within the third degree of 
        kindred according to the rules of the civil law, and at least 
        one of said the related persons is residing on or actively 
        operating the farm, and none of whose stockholders are 
        corporations; provided that a family farm corporation shall not 
        cease to qualify as such hereunder by reason of any devise or 
        bequest: 
           (1) transfer of shares of voting stock to a person or the 
        spouse of a person related within the third degree of kindred 
        according to the rules of civil law to the person making the 
        transfer, or to a family farm trust of which the shareholder, 
        spouse, or related person is a current beneficiary; or 
           (2) distribution from a family farm trust of shares of 
        stock to a beneficiary related within the third degree of 
        kindred according to the rules of civil law to a majority of the 
        current beneficiaries of the trust, or to a family farm trust of 
        which the shareholder, spouse, or related person is a current 
        beneficiary. 
           For the purposes of this section, a transfer may be made 
        with or without consideration, either directly or indirectly, 
        during life or at death, whether or not in trust, of the shares 
        in the family farm corporation, and stock owned by a family farm 
        trust are considered to be owned in equal shares by the current 
        beneficiaries. 
           (d) "Family farm trust" means: 
           (1) a trust in which: 
           (i) a majority of the current beneficiaries are persons or 
        spouses of persons who are related to each other within the 
        third degree of kindred according to the rules of civil law; 
           (ii) all of the current beneficiaries are natural persons 
        or nonprofit corporations or trusts described in Internal 
        Revenue Code, section 170(c), as amended, and the regulations 
        under that section; and 
           (iii) one of the family member current beneficiaries is 
        residing on or actively operating the farm; or 
           (2) a charitable remainder trust as defined in Internal 
        Revenue Code, section 664, as amended, and the regulations under 
        that section, and a charitable lead trust as set forth in 
        Internal Revenue Code, section 170(f), and the regulations under 
        that section, if the lead period does not exceed ten years and 
        the majority of remainder beneficiaries are related to the 
        grantor within the third degree of kindred according to the 
        rules of civil law. 
           For the purposes of this section, if a distributee trust 
        becomes entitled to, or at the discretion of any person may 
        receive, a distribution from income or principal of a family 
        farm trust, then the distributee trust must independently 
        qualify as a family farm trust. 
           (e) "Authorized farm corporation" means a corporation 
        meeting the following standards: 
           (1) it has no more than five shareholders, provided that 
        for the purposes of this section, a husband and wife are 
        considered one shareholder; 
           (2) all its shareholders, other than any estate, are 
        natural persons; 
           (3) it does not have more than one class of shares; 
           (4) its revenue from rent, royalties, dividends, interest, 
        and annuities does not exceed 20 percent of its gross receipts; 
           (5) shareholders holding 51 percent or more of the interest 
        in the corporation reside on the farm or are actively engaging 
        in farming; 
           (6) it does not, directly or indirectly, own or otherwise 
        have an interest in any title to more than 1,500 acres of 
        agricultural land; and 
           (7) none of its shareholders are shareholders in other 
        authorized farm corporations that directly or indirectly in 
        combination with the corporation own more than 1,500 acres of 
        agricultural land. 
           (e) (f) "Authorized livestock farm corporation" means a 
        corporation formed for the production of livestock and meeting 
        the following standards: 
           (1) it is engaged in the production of livestock other than 
        dairy cattle; 
           (2) all its shareholders, other than any estate, are 
        natural persons or family farm corporations; 
           (3) it does not have more than one class of shares; 
           (4) its revenue from rent, royalties, dividends, interest, 
        and annuities does not exceed 20 percent of its gross receipts; 
           (5) shareholders holding 75 percent or more of the control, 
        financial, and capital investment in the corporation are farmers 
        residing in Minnesota and at least 51 percent of the required 
        percentage of farmers are actively engaged in livestock 
        production; 
           (6) it does not, directly or indirectly, own or otherwise 
        have an interest in any title to more than 1,500 acres of 
        agricultural land; and 
           (7) none of its shareholders are shareholders in other 
        authorized farm corporations that directly or indirectly in 
        combination with the corporation own more than 1,500 acres of 
        agricultural land. 
           (f) (g) "Agricultural land" means real estate used for 
        farming or capable of being used for farming in this state. 
           (g) (h) "Pension or investment fund" means a pension or 
        employee welfare benefit fund, however organized, a mutual fund, 
        a life insurance company separate account, a common trust of a 
        bank or other trustee established for the investment and 
        reinvestment of money contributed to it, a real estate 
        investment trust, or an investment company as defined in United 
        States Code, title 15, section 80a-3.  
           (h) (i) "Farm homestead" means a house including adjoining 
        buildings that has been used as part of a farming operation or 
        is part of the agricultural land used for a farming operation. 
           (i) (j) "Family farm partnership" means a limited 
        partnership formed for the purpose of farming and the ownership 
        of agricultural land in which the majority of the interests in 
        the partnership is held by and the majority of the partners are 
        persons or, the spouses of persons, or current beneficiaries of 
        one or more family farm trusts in which the trustee holds an 
        interest in a family farm partnership related to each other 
        within the third degree of kindred according to the rules of the 
        civil law, at least one of the related persons is residing on or 
        the farm, actively operating the farm, or the agricultural land 
        was owned by one or more of the related persons for a period of 
        five years before its transfer to the limited partnership, and 
        none of the partners are corporations.  A family farm 
        partnership does not cease to qualify as a family farm 
        partnership because of a devise or bequest: 
           (1) transfer of a partnership interest in the 
        partnership to a person or spouse of a person related within the 
        third degree of kindred according to the rules of civil law to 
        the person making the transfer or to a family farm trust of 
        which the partner, spouse, or related person is a current 
        beneficiary; or 
           (2) distribution from a family farm trust of a partnership 
        interest to a beneficiary related within the third degree of 
        kindred according to the rules of civil law to a majority of the 
        current beneficiaries of the trust, or to a family farm trust of 
        which the partner, spouse, or related person is a current 
        beneficiary. 
           For the purposes of this section, a transfer may be made 
        with or without consideration, either directly or indirectly, 
        during life or at death, whether or not in trust, of a 
        partnership interest in the family farm partnership, and 
        interest owned by a family farm trust is considered to be owned 
        in equal shares by the current beneficiaries. 
           (j) (k) "Authorized farm partnership" means a limited 
        partnership meeting the following standards:  
           (1) it has been issued a certificate from the secretary of 
        state or is registered with the county recorder and farming and 
        ownership of agricultural land is stated as a purpose or 
        character of the business; 
           (2) it has no more than five partners; 
           (3) all its partners, other than any estate, are natural 
        persons; 
           (4) its revenue from rent, royalties, dividends, interest, 
        and annuities do does not exceed 20 percent of its gross 
        receipts; 
           (5) its general partners hold at least 51 percent of the 
        interest in the land assets of the partnership and reside on the 
        farm or are actively engaging in farming not more than 1,500 
        acres as a general partner in an authorized limited partnership; 
           (6) its limited partners do not participate in the business 
        of the limited partnership including operating, managing, or 
        directing management of farming operations; 
           (7) it does not, directly or indirectly, own or otherwise 
        have an interest in any title to more than 1,500 acres of 
        agricultural land; and 
           (8) none of its limited partners are limited partners in 
        other authorized farm partnerships that directly or indirectly 
        in combination with the partnership own more than 1,500 acres of 
        agricultural land.  
           (l) "Family farm limited liability company" means a limited 
        liability company founded for the purpose of farming and the 
        ownership of agricultural land in which the majority of the 
        membership interests are held by and the majority of the members 
        are persons or the spouses of persons, or current beneficiaries 
        of one or more family farm trusts in which the trustee holds 
        stock in a family farm limited liability company related to each 
        other within the third degree of kindred according to the rules 
        of the civil law, at least one of the related persons is 
        actively operating the farm, and none of the members are 
        corporations or limited liability companies.  A family farm 
        limited liability company does not cease to qualify as a family 
        farm limited liability company because of: 
           (1) a transfer of a membership interest to a person or 
        spouse of a person related within the third degree of kindred 
        according to the rules of civil law to the person making the 
        transfer or to a family farm trust of which the member, spouse, 
        or related person is a current beneficiary; or 
           (2) distribution from a family farm trust of a membership 
        interest to a beneficiary related within the third degree of 
        kindred according to the rules of civil law to a majority of the 
        current beneficiaries of the trust, or to a family farm trust of 
        which the member, spouse, or related person is a current 
        beneficiary. 
           For the purposes of this section, a transfer may be made 
        with or without consideration, either directly or indirectly, 
        during life or at death, whether or not in trust, of a 
        membership interest in the family farm limited liability 
        company, and interest owned by a family farm trust is considered 
        to be owned in equal shares by the current beneficiaries.  
        Except for a state or federally chartered financial institution 
        acquiring an encumbrance for the purpose of security or an 
        interest under paragraph (x), a member of a family farm limited 
        liability company may not transfer a membership interest, 
        including a financial interest, to a person who is not otherwise 
        eligible to be a member under this paragraph. 
           (m) "Authorized farm limited liability company" means a 
        limited liability company meeting the following standards: 
           (1) it has no more than five members; 
           (2) all its members, other than any estate, are natural 
        persons; 
           (3) it does not have more than one class of membership 
        interests; 
           (4) its revenue from rent, royalties, dividends, interest, 
        and annuities does not exceed 20 percent of its gross receipts; 
           (5) members holding 51 percent or more of both the 
        governance rights and financial rights in the limited liability 
        company reside on the farm or are actively engaged in farming; 
           (6) it does not, directly or indirectly, own or otherwise 
        have an interest in any title to more than 1,500 acres of 
        agricultural land; and 
           (7) none of its members are members in other authorized 
        farm limited liability companies that directly or indirectly in 
        combination with the authorized farm limited liability company 
        own more than 1,500 acres of agricultural land. 
           Except for a state or federally chartered financial 
        institution acquiring an encumbrance for the purpose of security 
        or an interest under paragraph (x), a member of an authorized 
        farm limited liability company may not transfer a membership 
        interest, including a financial interest, to a person who is not 
        otherwise eligible to be a member under this paragraph. 
           (k) (n) "Farmer" means a natural person who regularly 
        participates in physical labor or operations management in the 
        person's farming operation and files "Schedule F" as part of the 
        person's annual Form 1040 filing with the United States Internal 
        Revenue Service. 
           (l) (o) "Actively engaged in livestock production" means 
        performing day-to-day physical labor or day-to-day operations 
        management that significantly contributes to livestock 
        production and the functioning of a livestock operation. 
           (m) (p) "Research or experimental farm" means a 
        corporation, limited partnership, or pension or, investment 
        fund, or limited liability company that owns or operates 
        agricultural land for research or experimental purposes, 
        provided that any commercial sales from the operation are 
        incidental to the research or experimental objectives of the 
        corporation.  A corporation, limited partnership, limited 
        liability company, or pension or investment fund seeking initial 
        approval by the commissioner to operate agricultural land for 
        research or experimental purposes must first 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. 
           (n) (q) "Breeding stock farm" means a corporation or, 
        limited partnership, or limited liability company, that owns or 
        operates agricultural land for the purpose of raising breeding 
        stock, including embryos, for resale to farmers or for the 
        purpose of growing seed, wild rice, nursery plants, or sod.  An 
        entity that is organized to raise livestock other than dairy 
        cattle under this paragraph that does not qualify as an 
        authorized farm corporation must:  
           (1) sell all castrated animals to be fed out or finished to 
        farming operations that are neither directly nor indirectly 
        owned by the business entity operating the breeding stock 
        operation; and 
           (2) report its total production and sales annually to the 
        commissioner.  
           (o) (r) "Aquatic farm" means a corporation or, limited 
        partnership, or limited liability company, that owns or leases 
        agricultural land as a necessary part of an aquatic farm as 
        defined in section 17.47, subdivision 3.  
           (p) (s) "Religious farm" means a corporation formed 
        primarily for religious purposes whose sole income is derived 
        from agriculture.  
           (q) (t) "Utility corporation" means a corporation regulated 
        under Minnesota Statutes 1974, chapter 216B, that owns 
        agricultural land for purposes described in that chapter, or an 
        electric generation or transmission cooperative that owns 
        agricultural land for use in its business if the land is not 
        used for farming except under lease to a family farm unit, a 
        family farm corporation, or a family farm trust, a family farm 
        partnership, or a family farm limited liability company.  
           (r) "Benevolent trust" means a pension fund or family trust 
        established by the owners of a family farm, authorized farm 
        corporation, authorized livestock farm corporation, or family 
        farm corporation that holds an interest in title to agricultural 
        land on which one or more of those owners or shareholders have 
        resided or have been actively engaged in farming as required by 
        paragraph (b), (c), (d), or (e). 
           (s) (u) "Development organization" means a corporation, 
        limited partnership, limited liability company, or pension or 
        investment fund that owns has an interest in agricultural land 
        for which the corporation, limited partnership, limited 
        liability company, or pension or investment fund 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 corporation, limited 
        partnership, limited liability company, or pension or investment 
        fund may hold agricultural land in the amount necessary for its 
        nonfarm business operation; provided, however, that pending the 
        development of agricultural land for nonfarm purposes, the land 
        may not be used for farming except under lease to a family farm 
        unit, a family farm corporation, a family farm trust, an 
        authorized farm corporation, an authorized livestock farm 
        corporation, a family farm partnership, or an authorized farm 
        partnership, a family farm limited liability company, or an 
        authorized farm limited liability company, or except when 
        controlled through ownership, options, leaseholds, or other 
        agreements by a corporation that has entered into an agreement 
        with the United States under 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.  
           (t) (v) "Exempt land" means agricultural land owned or 
        leased by a corporation as of May 20, 1973, agricultural land 
        owned or leased by a pension or investment fund as of May 12, 
        1981, or agricultural land owned or leased by a limited 
        partnership as of May 1, 1988, or agricultural land owned or 
        leased by a trust as of the effective date of this act, 
        including the normal expansion of that ownership at a rate not 
        to exceed 20 percent of the amount of land owned as of May 20, 
        1973, for a corporation; May 12, 1981, for a pension or 
        investment fund; or May 1, 1988, for a limited partnership, or 
        the effective date of this act for a trust, measured in acres, 
        in any five-year period, and including additional ownership 
        reasonably necessary to meet the requirements of pollution 
        control rules.  A corporation, limited partnership, or pension 
        or investment fund that is eligible to own or lease agricultural 
        land under this section prior to May 1997, or a corporation that 
        is eligible to own or lease agricultural land as a benevolent 
        trust under this section prior to the effective date of this 
        act, may continue to own or lease agricultural land subject to 
        the same conditions and limitations as previously allowed.  
           (u) (w) "Gifted land" means agricultural land acquired as a 
        gift, either by grant or devise, by an educational, religious, 
        or charitable nonprofit corporation, limited 
        partnership, limited liability company, or pension or investment 
        fund if all land so acquired is disposed of within ten years 
        after acquiring the title.  
           (v) (x) "Repossessed land" means agricultural land acquired 
        by a corporation, limited partnership, limited liability 
        company, or pension or investment fund by process of law in the 
        collection of debts, or by any procedure for the enforcement of 
        a lien or claim on the land, whether created by mortgage or 
        otherwise if all land so acquired is disposed of within five 
        years after acquiring the title.  The five-year limitation is a 
        covenant running with the title to the land against any grantee, 
        assignee, or successor of the pension or investment fund, 
        corporation, or limited partnership, or limited liability 
        company.  The land so acquired must not be used for farming 
        during the five-year period, except under a lease to a family 
        farm unit, a family farm corporation, an authorized farm 
        corporation, an authorized livestock farm corporation, a family 
        farm partnership, or an authorized farm partnership, a family 
        farm limited liability company, or an authorized farm limited 
        liability company.  Notwithstanding the five-year divestiture 
        requirement under this paragraph, a financial institution may 
        continue to own the agricultural land if the agricultural land 
        is leased to the immediately preceding former owner, but must 
        dispose of the agricultural land within ten years of acquiring 
        the title.  Livestock acquired by a pension or investment fund, 
        corporation, or limited partnership, or limited liability 
        company in the collection of debts, or by a procedure for the 
        enforcement of lien or claim on the livestock whether created by 
        security agreement or otherwise after August 1, 1994, must be 
        sold or disposed of within one full production cycle for the 
        type of livestock acquired or 18 months after the livestock is 
        acquired, whichever is later earlier.  
           (w) (y) "Commissioner" means the commissioner of 
        agriculture.  
           (x) (z) "Demonstration "Nonprofit corporation" means a 
        nonprofit corporation organized under state nonprofit 
        corporation law and formed primarily for the purpose of 
        demonstrating historical farming practices or qualified for 
        tax-exempt status under federal tax law that uses the land for a 
        specific nonfarming purpose or leases the agricultural land to a 
        family farm unit, a family farm corporation, an authorized farm 
        corporation, an authorized livestock farm corporation, a family 
        farm limited liability company, an authorized farm limited 
        liability company, a family farm partnership, or an authorized 
        farm partnership. 
           (aa) "Current beneficiary" means a person who at any time 
        during a year is entitled to, or at the discretion of any person 
        may, receive a distribution from the income or principal of the 
        trust.  It does not include a distributee trust, other than a 
        trust described in section 170(c) of the Internal Revenue Code, 
        as amended, but does include the current beneficiaries of the 
        distributee trust.  It does not include a person in whose favor 
        a power of appointment could be exercised until the holder of 
        the power of appointment actually exercises the power of 
        appointment in that person's favor.  It does not include a 
        person who is entitled to receive a distribution only after a 
        specified time or upon the occurrence of a specified event until 
        the time or occurrence of the event.  For the purposes of this 
        section, a distributee trust is a current beneficiary of a 
        family farm trust. 
           (bb) "De minimis" means that any corporation, pension or 
        investment fund, limited liability company, or limited 
        partnership that directly or indirectly owns, acquires, or 
        otherwise obtains any interest in 40 acres or less of 
        agricultural land and annually receives less than $150 per acre 
        in gross revenue from rental or agricultural production. 
           Sec. 68.  Minnesota Statutes 1999 Supplement, section 
        500.24, subdivision 3, is amended to read: 
           Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
        CORPORATIONS RESTRICTED.] (a) No corporation, limited liability 
        company, pension or investment fund, trust, or limited 
        partnership shall engage in farming; nor shall any corporation, 
        limited liability company, pension or investment fund, trust, or 
        limited partnership, directly or indirectly, own, acquire, or 
        otherwise obtain any interest, in agricultural land other than a 
        bona fide encumbrance taken for purposes of security.  This 
        subdivision does not apply to general partnerships.  This 
        subdivision does not apply to any agricultural land, 
        corporation, limited partnership, trust, limited liability 
        company, or pension or investment fund that meet any of the 
        definitions in subdivision 2, paragraphs (b) 
        to (e) (f), (i), (j) to (m), (m) to (v) (p) to (x), and 
        (x) (z), and (bb), has a conservation plan prepared for the 
        agricultural land, and reports as required under subdivision 4.  
           (b) A corporation, pension or investment fund, trust, 
        limited liability company, or limited partnership that cannot 
        meet any of the definitions in subdivision 2, paragraphs (b) to 
        (f), (j) to (m), (p) to (x), (z), and (bb), may petition the 
        commissioner for an exemption from this subdivision.  The 
        commissioner may issue an exemption if the entity meets the 
        following criteria: 
           (1) the exemption would not contradict the purpose of this 
        section; and 
           (2) the petitioning entity would not have a significant 
        impact upon the agriculture industry and the economy. 
           The commissioner shall review annually each entity that is 
        issued an exemption under this paragraph to ensure that the 
        entity continues to meet the criteria in clauses (1) and (2).  
        If an entity fails to meet the criteria, the commissioner shall 
        withdraw the exemption and the entity is subject to enforcement 
        proceedings under subdivision 5.  The commissioner shall submit 
        a report with a list of each entity that is issued an exemption 
        under this paragraph to the chairs of the senate and house 
        agricultural policy committees by October 1 of each year. 
           Sec. 69.  Minnesota Statutes 1998, section 500.24, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [LEASE AGREEMENT; CONSERVATION PRACTICE 
        PROTECTION CLAUSE.] A corporation, pension or investment fund, 
        or limited partnership, or limited liability company other than 
        a family farm corporation, an authorized farm corporation, an 
        authorized livestock farm corporation, a family farm 
        partnership, or an authorized farm partnership those meeting any 
        of the definitions in subdivision 2, paragraphs (c) to (f) or 
        (j) to (m), when leasing farm land to a family farm unit, a 
        family farm corporation, an authorized farm corporation, an 
        authorized livestock farm corporation, a family farm 
        partnership, or an authorized farm partnership, a family farm 
        limited liability company, or an authorized farm limited 
        liability company, under provisions of subdivision 2, paragraph 
        (v) (x), must include within the lease agreement a provision 
        prohibiting intentional damage or destruction to a conservation 
        practice on the agricultural land. 
           Sec. 70.  Minnesota Statutes 1998, section 500.24, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [PROTECTION OF CONSERVATION PRACTICES.] A 
        corporation, pension or investment fund, or limited partnership, 
        or limited liability company other than a family farm 
        corporation, an authorized farm corporation, an authorized 
        livestock farm corporation, a family farm partnership, or 
        authorized farm partnership those meeting any of the definitions 
        in subdivision 2, paragraphs (c) to (f) or (j) to (m), which, 
        during the period of time it holds agricultural land under 
        subdivision 2, paragraph (v) (x), intentionally destroys a 
        conservation practice as defined in section 103F.401, 
        subdivision 3, to which the state has made a financial 
        contribution, must pay the commissioner, for deposit in the 
        general fund, an amount equal to the state's total contributions 
        to that conservation practice plus interest from the time of 
        investment in the conservation practice.  Interest must be 
        calculated at an annual percentage rate of 12 percent. 
           Sec. 71.  Minnesota Statutes 1998, section 500.24, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REPORTS.] (a) The chief executive officer of 
        every pension or investment fund, corporation, or limited 
        partnership, limited liability company, or entity that is 
        seeking to qualify for an exemption from the commissioner, and 
        the trustee of a family farm trust that holds any interest in 
        agricultural land or land used for the breeding, feeding, 
        pasturing, growing, or raising of livestock, dairy or poultry, 
        or products thereof, or land used for the production of 
        agricultural crops or fruit or other horticultural products, 
        other than a bona fide encumbrance taken for purposes of 
        security, or which is engaged in farming or proposing to 
        commence farming in this state after May 20, 1973, shall file 
        with the commissioner a report containing the following 
        information and documents: 
           (1) the name of the pension or investment fund, 
        corporation, or limited partnership, or limited liability 
        company and its place of incorporation, certification, or 
        registration; 
           (2) the address of the pension or investment plan 
        headquarters or of the registered office of the corporation in 
        this state, the name and address of its registered agent in this 
        state and, in the case of a foreign corporation or, limited 
        partnership, or limited liability company, the address of its 
        principal office in its place of incorporation, certification, 
        or registration; 
           (3) the acreage and location listed by quarter-quarter 
        section, township, and county of each lot or parcel of 
        agricultural land or land used for the keeping or feeding of 
        poultry in this state owned or leased by the pension or 
        investment fund, limited partnership, or corporation, or limited 
        liability company; 
           (4) the names and addresses of the officers, 
        administrators, directors, or trustees of the pension or 
        investment fund, or of the officers, shareholders owning more 
        than ten percent of the stock, including the percent of stock 
        owned by each such shareholder, and the members of the board of 
        directors of the corporation, and the members of the limited 
        liability company, and the general and limited partners and the 
        percentage of interest in the partnership by each partner; 
           (5) the farm products which the pension or investment fund, 
        limited partnership, or corporation, or limited liability 
        company produces or intends to produce on its agricultural land; 
           (6) with the first report, a copy of the title to the 
        property where the farming operations are or will occur 
        indicating the particular exception claimed under subdivision 3; 
        and 
           (7) with the first or second report, a copy of the 
        conservation plan proposed by the soil and water conservation 
        district, and with subsequent reports a statement of whether the 
        conservation plan was implemented. 
           The report of a corporation, trust, limited liability 
        company, or partnership seeking to qualify hereunder as a family 
        farm corporation, an authorized farm corporation, an authorized 
        livestock farm corporation, a family farm partnership, or an 
        authorized farm partnership, a family farm limited liability 
        company, an authorized farm limited liability company, or a 
        family farm trust or under an exemption from the commissioner 
        shall contain the following additional information:  the number 
        of shares or the, partnership interests, or governance and 
        financial rights owned by persons or current beneficiaries of a 
        family farm trust residing on the farm or actively engaged in 
        farming, or their relatives within the third degree of kindred 
        according to the rules of the civil law or their spouses; the 
        name, address, and number of shares owned by each 
        shareholder or, partnership interests owned by each partner; or 
        governance and financial rights owned by each member, and a 
        statement as to percentage of gross receipts of the corporation 
        derived from rent, royalties, dividends, interest, and 
        annuities.  No pension or investment fund, limited 
        partnership, or corporation, or limited liability company shall 
        commence farming in this state until the commissioner has 
        inspected the report and certified that its proposed operations 
        comply with the provisions of this section. 
           (b) Every pension or investment fund, limited 
        partnership, trust, or corporation, or limited liability company 
        as described in paragraph (a) shall, prior to April 15 of each 
        year, file with the commissioner a report containing the 
        information required in paragraph (a), based on its operations 
        in the preceding calendar year and its status at the end of the 
        year.  A pension or investment fund, limited partnership, or 
        corporation, or limited liability company that does not file the 
        report by April 15 must pay a $500 civil penalty.  The penalty 
        is a lien on the land being farmed under subdivision 3 until the 
        penalty is paid. 
           (c) The commissioner may, for good cause shown, issue a 
        written waiver or reduction of the civil penalty for failure to 
        make a timely filing of the annual report required by this 
        subdivision.  The waiver or reduction is final and conclusive 
        with respect to the civil penalty, and may not be reopened or 
        modified by an officer, employee, or agent of the state, except 
        upon a showing of fraud or malfeasance or misrepresentation of a 
        material fact.  The report required under paragraph (b) must be 
        completed prior to a reduction or waiver under this paragraph.  
        The commissioner may enter into an agreement under this 
        paragraph only once for each corporation or partnership. 
           (d) Failure to file a required report or the willful filing 
        of false information is a gross misdemeanor. 
           Sec. 72.  Minnesota Statutes 1998, section 500.24, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ENFORCEMENT.] With reason to believe that a 
        corporation, limited partnership, limited liability company, 
        trust, or pension or investment fund is violating subdivision 3, 
        the attorney general shall commence an action in the district 
        court in which any agricultural lands relative to such violation 
        are situated, or if situated in two or more counties, in any 
        county in which a substantial part of the lands are situated.  
        The attorney general shall file for record with the county 
        recorder or the registrar of titles of each county in which any 
        portion of said lands are located a notice of the pendency of 
        the action as provided in section 557.02.  If the court finds 
        that the lands in question are being held in violation of 
        subdivision 3, it shall enter an order so declaring.  The 
        attorney general shall file for record any such order with the 
        county recorder or the registrar of titles of each county in 
        which any portion of said lands are located.  Thereafter, the 
        pension or investment fund, limited partnership, or corporation 
        owning such land shall have a period of five years from the date 
        of such order to divest itself of such lands.  The 
        aforementioned five-year limitation period shall be deemed a 
        covenant running with the title to the land against any pension 
        or investment fund, limited partnership, or corporate grantee or 
        assignee or the successor of such pension or investment fund, 
        limited partnership, or corporation.  Any lands not so divested 
        within the time prescribed shall be sold at public sale in the 
        manner prescribed by law for the foreclosure of a mortgage by 
        action.  In addition, any prospective or threatened violation 
        may be enjoined by an action brought by the attorney general in 
        the manner provided by law. 
           Sec. 73.  Minnesota Statutes 1999 Supplement, section 
        500.245, subdivision 1, is amended to read: 
           Subdivision 1.  [DISPOSAL OF LAND.] (a) A state or federal 
        agency, limited partnership, or a corporation, or limited 
        liability company may not lease or sell agricultural land or a 
        farm homestead before offering or making a good faith effort to 
        offer the land for sale or lease to the immediately preceding 
        former owner at a price no higher than the highest price offered 
        by a third party that is acceptable to the seller or lessor.  
        The offer must be made on the notice to offer form under 
        subdivision 2.  The requirements of this subdivision do not 
        apply to a sale or lease by a corporation that is a family farm 
        corporation or an authorized farm corporation or to a sale or 
        lease by the commissioner of agriculture of property acquired by 
        the state under the family farm security program under chapter 
        41.  This subdivision applies only to a sale or lease when the 
        seller or lessor acquired the property by enforcing a debt 
        against the agricultural land or farm homestead, including 
        foreclosure of a mortgage, accepting a deed in lieu of 
        foreclosure, terminating a contract for deed, or accepting a 
        deed in lieu of terminating a contract for deed.  Selling or 
        leasing property to a third party at a price is prima facie 
        evidence that the price is acceptable to the seller or lessor.  
        The seller must provide written notice to the immediately 
        preceding former owner that the agricultural land or farm 
        homestead will be offered for sale at least 14 days before the 
        agricultural land or farm homestead is offered for sale.  
           (b) An immediately preceding former owner is the entity 
        with record legal title to the agricultural land or farm 
        homestead before acquisition by the state or federal agency or 
        corporation except:  if the immediately preceding former owner 
        is a bankruptcy estate, the debtor in bankruptcy is the 
        immediately preceding former owner; and if the agricultural land 
        or farm homestead was acquired by termination of a contract for 
        deed or deed in lieu of termination of a contract for deed, the 
        immediately preceding former owner is the purchaser under the 
        contract for deed.  For purposes of this subdivision, only a 
        family farm, family farm corporation, or family farm partnership 
        or family farm limited liability company can be an immediately 
        preceding former owner. 
           (c) An immediately preceding former owner may elect to 
        purchase or lease the entire property or an agreed to portion of 
        the property.  If the immediately preceding former owner elects 
        to purchase or lease a portion of the property, the election 
        must be reported in writing to the seller or lessor prior to the 
        time the property is first offered for sale or lease.  If 
        election is made to purchase or lease a portion of the property, 
        the portion must be contiguous and compact so that it does not 
        unreasonably reduce access to or the value of the remaining 
        property. 
           (d) For purposes of this subdivision, the term "a price no 
        higher than the highest price offered by a third party" means 
        the acceptable cash price offered by a third party or the 
        acceptable time-price offer made by a third party.  A cash price 
        offer is one that involves simultaneous transfer of title for 
        payment of the entire amount of the offer.  If the acceptable 
        offer made by a third party is a time-price offer, the seller or 
        lessor must make the same time-price offer or an equivalent cash 
        offer to the immediately preceding former owner.  An equivalent 
        cash offer is equal to the total of the payments made over a 
        period of the time-price offer discounted by yield curve of the 
        United States treasury notes and bonds of similar maturity on 
        the first business day of the month in which the offer is 
        personally delivered or mailed for time periods similar to the 
        time period covered by the time-price offer, plus 2.0 percent.  
        A time-price offer is an offer that is financed entirely or 
        partially by the seller and includes an offer to purchase under 
        a contract for deed or mortgage.  An equivalent cash offer is 
        not required to be made if the state participates in an offer to 
        a third party through the rural finance authority. 
           (e) This subdivision applies to a seller when the property 
        is sold and to a lessor each time the property is leased, for 
        the time period specified in section 500.24, subdivision 2, 
        paragraph (v), after the agricultural land is acquired except:  
           (1) an offer to lease to the immediately preceding former 
        owner is required only until the immediately preceding owner 
        fails to accept an offer to lease the property or the property 
        is sold; 
           (2) an offer to sell to the immediately preceding former 
        owner is required until the property is sold; and 
           (3) if the immediately preceding former owner elects to 
        lease or purchase a portion of the property, this subdivision 
        does not apply to the seller with regard to the balance of the 
        property after the election is made under paragraph (c).  
           (f) The notice of an offer under subdivision 2 that is 
        personally delivered with a signed receipt or sent by certified 
        mail with a receipt of mailing to the immediately preceding 
        former owner's last known address is a good faith offer.  
           (g) This subdivision does not apply to a sale or lease that 
        occurs after the seller or lessor has held the property for the 
        time period specified in section 500.24, subdivision 2, 
        paragraph (v) (x).  
           (h) For purposes of this subdivision, if the immediately 
        preceding former owner is a bankruptcy estate the debtor in the 
        bankruptcy is the immediately preceding owner.  
           (i) The immediately preceding former owner must exercise 
        the right to lease all or a portion of the agricultural land or 
        a homestead located on agricultural land in writing within 15 
        days after an offer to lease under this subdivision is mailed 
        with a receipt of mailing or personally delivered.  If election 
        is made to lease only the homestead or a portion of the 
        agricultural land, the portion to be leased must be clearly 
        identified in writing.  The immediately preceding former owner 
        must exercise the right to buy the agricultural land, a portion 
        of the agricultural land, or a farm homestead located on 
        agricultural land, in writing, within 65 days after an offer to 
        buy under this subdivision is mailed with a receipt of mailing 
        or is personally delivered.  Within ten days after exercising 
        the right to lease or buy by accepting the offer, the 
        immediately preceding owner must fully perform according to the 
        terms of the offer including paying the amounts due.  A seller 
        may sell and a lessor may lease the agricultural land or farm 
        homestead subject to this subdivision to the third party in 
        accordance with their lease or purchase agreement if: 
           (1) the immediately preceding former owner does not accept 
        an offer to lease or buy before the offer terminates; or 
           (2) the immediately preceding former owner does not perform 
        the obligations of the offer, including paying the amounts due, 
        within ten days after accepting the offer. 
           (j) A certificate indicating whether or not the property 
        contains agricultural land or a farm homestead that is signed by 
        the county assessor where the property is located and recorded 
        in the office of the county recorder or the registrar of titles 
        where the property is located is prima facie evidence of whether 
        the property is agricultural land or a farm homestead. 
           (k) As prima facie evidence that an offer to sell or lease 
        agricultural land or a farm homestead has terminated, a receipt 
        of mailing the notice under subdivision 2 and an affidavit, 
        signed by a person authorized to act on behalf of a state, 
        federal agency, or corporation selling or leasing the 
        agricultural land or a farm homestead may be filed in the office 
        of the county recorder or registrar of titles of the county 
        where the agricultural land or farm homestead is located.  The 
        affidavit must state that: 
           (1) notice of an offer to buy or lease the agricultural 
        land or farm homestead was provided to the immediately preceding 
        former owner at a price not higher than the highest price 
        offered by a third party that is acceptable; 
           (2) the time during which the immediately preceding former 
        owner is required to exercise the right to buy or lease the 
        agricultural land or farm homestead has expired; 
           (3) the immediately preceding former owner has not 
        exercised the right to buy or lease the agricultural land or 
        farm homestead as provided in this subdivision or has accepted 
        an offer and has not fully performed according to the terms of 
        the offer; and 
           (4) the offer to the immediately preceding former owner has 
        terminated. 
           (l) The right of an immediately preceding former owner to 
        receive an offer to lease or purchase agricultural land under 
        this subdivision or to lease or purchase at a price no higher 
        than the highest price offered by a third party that is 
        acceptable to the seller or lessor may be extinguished or 
        limited by an express statement signed by the immediately 
        preceding owner that complies with the plain language 
        requirements of section 325G.31.  The right may not be 
        extinguished or limited except by: 
           (1) an express statement in a deed in lieu of foreclosure 
        of the agricultural land; 
           (2) an express statement in a deed in lieu of a termination 
        of a contract for deed for the agricultural land; 
           (3) an express statement conveying the right to the state 
        or federal agency or corporation owning the agricultural land 
        that is required to make an offer under this subdivision; 
        however, the preceding former owner may rescind the conveyance 
        by notifying the state or federal agency or corporation in 
        writing within 20 calendar days after signing the express 
        statement; 
           (4) to cure a title defect, an express statement conveying 
        the right may be made to a person to whom the agricultural land 
        has been transferred by the state or federal agency or 
        corporation; or 
           (5) an express statement conveying the right to a contract 
        for deed vendee to whom the agricultural land or farm homestead 
        was sold under a contract for deed by the immediately preceding 
        former owner if the express statement and the contract for deed 
        are recorded. 
           (m) The right of an immediately preceding former owner to 
        receive an offer to lease or purchase agricultural land under 
        this subdivision may not be assigned or transferred except as 
        provided in paragraph (l), but may be inherited.  
           (n) An immediately preceding former owner, except a former 
        owner who is actively engaged in farming as defined in section 
        500.24, subdivision 2, paragraph (a), and who agrees to remain 
        actively engaged in farming on a portion of the agricultural 
        land or farm homestead for at least one year after accepting an 
        offer under this subdivision, may not sell agricultural land 
        acquired by accepting an offer under this subdivision if the 
        arrangement of the sale was negotiated or agreed to prior to the 
        former owner accepting the offer under this subdivision.  A 
        person who sells property in violation of this paragraph is 
        liable for damages plus reasonable attorney fees to a person who 
        is damaged by a sale in violation of this paragraph.  There is a 
        rebuttable presumption that a sale by an immediately preceding 
        former owner is in violation of this paragraph if the sale takes 
        place within 270 days of the former owner accepting the offer 
        under this subdivision.  This paragraph does not apply to a sale 
        by an immediately preceding former owner to the owner's spouse, 
        the owner's parents, the owner's sisters and brothers, the 
        owner's spouse's sisters and brothers, or the owner's children. 
           Sec. 74.  Minnesota Statutes 1998, section 500.245, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE OF OFFER.] (a) The state, a federal 
        agency, limited partnership, or a corporation, or limited 
        liability company subject to subdivision 1 must provide a notice 
        of an offer to sell or lease agricultural land substantially as 
        follows, after inserting the appropriate terms within the 
        parentheses: 
               "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND
        TO:       (...Immediately preceding former owner...)
        FROM:     (...The state, federal agency, limited
                  partnership, or corporation, or limited
                  liability company subject to
                  subdivision 1...)
        DATE:     (...date notice is mailed or personally
                  delivered...)
           (...The state, federal agency, limited partnership, or 
        corporation, or limited liability company...) HAS ACQUIRED THE 
        AGRICULTURAL LAND DESCRIBED BELOW AND HAS RECEIVED AN ACCEPTABLE 
        OFFER TO (LEASE, SELL) THE AGRICULTURAL LAND FROM ANOTHER 
        PARTY.  UNDER MINNESOTA STATUTES, SECTION 500.245, SUBDIVISION 
        1, AN OFFER FROM (...the state, federal agency, limited 
        partnership, or corporation, or limited liability company...) 
        MUST BE MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER 
        MADE BY ANOTHER PARTY. 
           THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY 
        (...approximate number of acres...) ACRES AND IS INFORMALLY 
        DESCRIBED AS FOLLOWS: 
           (Informal description of the agricultural land being 
        offered that reasonably describes the land.  This description 
        does not need to be a legal description.) 
           (...The state, federal agency, limited partnership, or 
        corporation, or limited liability company...) OFFERS TO (SELL, 
        LEASE) THE AGRICULTURAL LAND DESCRIBED ABOVE FOR A CASH PRICE OF 
        $(...cash price or equivalent cash price for lease and lease 
        period, or cash price or equivalent cash price for sale of 
        land...), WHICH IS NOT HIGHER THAN THE PRICE OFFERED BY ANOTHER 
        PARTY.  THE PRICE IS OFFERED ON THE FOLLOWING TERMS: 
                      (Terms, if any, of acceptable offer)
           IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the 
        state, federal agency, limited partnership, or corporation, or 
        limited liability company...) IN WRITING THAT YOU ACCEPT THE 
        OFFER OR SIGN UNDERNEATH THE FOLLOWING PARAGRAPH AND RETURN A 
        COPY OF THIS NOTICE BY (15 for a lease, 65 for a sale) DAYS 
        AFTER THIS NOTICE IS PERSONALLY DELIVERED OR MAILED TO YOU.  THE 
        OFFER IN THIS NOTICE TERMINATES ON (...date of termination - 15 
        days for lease and 65 days for sale after date of mailing or 
        personal delivery...) 
                              ACCEPTANCE OF OFFER 
           I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND 
        DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE.  AS 
        PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE 
        TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE 
        OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER.  I 
        UNDERSTAND THAT NEGOTIATING OR AGREEING TO AN ARRANGEMENT TO 
        SELL THE AGRICULTURAL LAND TO ANOTHER PERSON PRIOR TO ACCEPTING 
        THIS OFFER MAY BE A VIOLATION OF LAW AND I MAY BE LIABLE TO A 
        PERSON DAMAGED BY THE SALE. 
        
             .........................................
             Signature of Former Owner Accepting Offer 
        
             .........................................
             Date" 
                                IMPORTANT NOTICE
           ANY ACTION FOR THE RECOVERY OF THE AGRICULTURAL LAND 
        DESCRIBED ABOVE OR ANY ACTION FOR DAMAGES, EXCEPT FOR DAMAGES 
        FOR FRAUD, REGARDING THIS OFFER MUST BE COMMENCED BY A LAWSUIT 
        BEFORE THE EXPIRATION OF THREE YEARS AFTER THIS LAND IS SOLD TO 
        ANOTHER PARTY.  UPON FILING A LAWSUIT, YOU MUST ALSO FILE A 
        NOTICE OF LIS PENDENS WITH THE COUNTY RECORDER OR REGISTRAR OF 
        TITLES IN THE COUNTY WHERE THE LAND IS LOCATED. 
           (b) For an offer to sell, a copy of the purchase agreement 
        containing the price and terms of the highest offer made by a 
        third party that is acceptable to the seller and a signed 
        affidavit by the seller affirming that the purchase agreement is 
        true, accurate, and made in good faith must be included with the 
        notice under this subdivision.  At the seller's discretion, 
        reference to the third party's identity may be deleted from the 
        copy of the purchase agreement. 
           (c) For an offer to lease, a copy of the lease containing 
        the price and terms of the highest offer made by a third party 
        that is acceptable to the lessor and a signed affidavit by the 
        lessor affirming that the lease is true, accurate, and made in 
        good faith must be included with the notice under this 
        subdivision.  At the lessor's discretion, reference to the third 
        party's identity may be deleted from the copy of the lease 
        agreement. 
           (d) The affidavit under paragraphs (b) and (c) is subject 
        to section 609.48. 
           Sec. 75.  [SEED POTATOES; CLEARWATER COUNTY.] 
           Notwithstanding the seed potato certification requirements 
        under Minnesota Statutes, section 21.1196, in calendar year 
        2000, seed potatoes may be planted in Clearwater county without 
        certification if the seed potatoes have had at least field 
        inspection as required for certified seed potatoes, have passed 
        the field inspection standards of disease tolerance, and are 
        free from ring rot.  
           Sec. 76.  [EFFECTIVE DATE.] 
           Section 22 is effective the day following final enactment 
        and applies to claims for corrective action costs incurred after 
        that date.  Sections 67 to 74 are effective the day following 
        final enactment. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 10:53 a.m.