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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 373-H.F.No. 3183 
                  An act relating to agriculture; establishing a 
                  livestock development program; clarifying certain 
                  requirements for agricultural contracts; changing 
                  certain powers relating to grain; modifying certain 
                  pesticide provisions; providing for interstate 
                  cooperation for seed potato certification; providing 
                  for uniformity of certain Minnesota food rules with 
                  federal standards; establishing and changing certain 
                  loan programs; clarifying terms; authorizing a land 
                  use pilot project; providing a temporary waiver of a 
                  rule; changing cervidae regulations; changing certain 
                  agricultural chemical response provisions; changing 
                  certain manure and waste management provisions; 
                  authorizing certain land exchanges; requiring a 
                  report; requiring amendment of certain rules; 
                  appropriating money; amending Minnesota Statutes 2000, 
                  sections 17.101, by adding a subdivision; 17.452, 
                  subdivision 6, by adding a subdivision; 17.90, 
                  subdivision 1a, by adding a subdivision; 17B.03, 
                  subdivision 1; 18E.02, by adding subdivisions; 18E.03, 
                  subdivision 4; 18E.04, subdivision 3; 18E.06; 21.111, 
                  by adding a subdivision; 31.101, as amended; 31.102, 
                  subdivision 1; 31.103, subdivision 1; 31.104; 38.331, 
                  subdivision 2; 41B.03, subdivisions 1, 3; 97A.105, by 
                  adding subdivisions; 223.16, subdivision 5; Minnesota 
                  Statutes 2001 Supplement, sections 17.9442; 18B.36, 
                  subdivision 1; 18E.04, subdivisions 2, 4; 41B.046, 
                  subdivision 2; Laws 2001, chapter 206, section 14; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 18D; 35; 41B; 116. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 17.101, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [LIVESTOCK DEVELOPMENT.] The commissioner shall 
        establish a process, including criteria and standards, to 
        recognize and assist efforts by counties to maintain or expand 
        their livestock sector. 
           A county that meets the criteria may apply to the 
        commissioner to be designated a "livestock friendly" county. 
           Sec. 2.  Minnesota Statutes 2000, section 17.452, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RUNNING AT LARGE PROHIBITED.] (a) An owner may 
        not allow farmed cervidae to run at large.  The owner must make 
        all reasonable efforts to return escaped farmed cervidae to 
        their enclosures as soon as possible.  The owner must notify the 
        commissioner of natural resources of the escape of farmed red 
        deer cervidae if the farmed red deer cervidae are not returned 
        or captured by the owner within 72 24 hours of their escape. 
           (b) An owner is liable for expenses of another person in 
        capturing, caring for, and returning farmed cervidae that have 
        left their enclosures if the person capturing the farmed 
        cervidae contacts the owner as soon as possible. 
           (c) If an owner is unwilling or unable to capture escaped 
        farmed cervidae, the commissioner of natural resources may 
        destroy the escaped farmed cervidae under this paragraph if the 
        escaped farmed cervidae are a threat to the health or population 
        of native species.  The commissioner must allow the owner to 
        attempt to capture the escaped farmed cervidae prior to 
        destroying the farmed cervidae.  Farmed cervidae that are not 
        captured by 14 days 24 hours after escape may be destroyed. 
           (d) The owner must notify the commissioner of natural 
        resources of the escape of farmed cervidae from a quarantined 
        herd if the farmed cervidae are not returned to or captured by 
        the owner within 72 hours of their escape.  The escaped farmed 
        cervidae from the quarantined herd may be destroyed by the 
        commissioner of natural resources if the escaped farmed cervidae 
        are a threat to the health or population of native species. 
           Sec. 3.  Minnesota Statutes 2000, section 17.452, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An 
        owner, or employee or agent under the direction of the owner, 
        must destroy wild cervidae found within the owner's farmed 
        cervidae confinement area.  The owner, employee, or agent must 
        report the wild cervidae destroyed to a conservation officer or 
        an employee of the department of natural resources, division of 
        wildlife, within 24 hours.  The wild cervidae must be disposed 
        of as prescribed by the commissioner of natural resources. 
           Sec. 4.  Minnesota Statutes 2000, section 17.90, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [AGRICULTURAL CONTRACT.] "Agricultural contract" 
        means any written contract between a contractor and a producer, 
        but does not include a contract between a grain buyer licensed 
        under section 223.17, subdivision 1, who purchases grain from a 
        producer as a merchant or seller of grain and does not contract 
        with the producer to grow or raise the crops producing the grain.
           Sec. 5.  Minnesota Statutes 2000, section 17.90, is amended 
        by adding a subdivision to read: 
           Subd. 3b.  [GRAIN.] "Grain" has the meaning given in 
        section 223.16, subdivision 4. 
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        17.9442, is amended to read: 
           17.9442 [APPLICABILITY OF CONTRACT REQUIREMENTS.] 
           The requirements for the written disclosure of material 
        risks under section 17.91, subdivision 2; the three-day review 
        period under section 17.941; the cover sheet requirement under 
        section 17.942; and the contract readability requirements under 
        section 17.943, subdivision 1, do not apply to contracts which 
        provide for: 
           (1) the sale and purchase of a fixed amount of a commodity 
        for delivery at a set price; 
           (2) price-later cash sale and forward delivery grain 
        contracts for grain meeting certain specifications and does not 
        prescribe the time, manner, and nature of planting, cultivating, 
        and harvesting the crop producing the grain, including fixed 
        price forward contracts, minimum price contracts, mini-max 
        contracts, basis contracts, hedge-to-arrive contracts, and 
        delayed price contracts; 
           (3) contracts agreed to between a processor and an 
        accredited bargaining organization under sections 17.691 to 
        17.702; 
           (4) future futures contracts which involve the sale or 
        purchase of a standardized quantity of a commodity for future 
        delivery on a regulated commodity exchange; 
           (5) agricultural marketing contracts between a capital 
        stock cooperative and its members under section 308A.205; or 
           (6) occasional sales between persons who produce or cause 
        to be produced food, feed, or fiber in a quantity beyond their 
        own family use. 
           Sec. 7.  Minnesota Statutes 2000, section 17B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
        of agriculture shall exercise general supervision over the 
        inspection, grading, weighing, sampling, and analysis of 
        grain within the state of Minnesota subject to the provisions of 
        the United States Grain Standards Act of 1976 and the rules 
        promulgated thereunder by the United States Department of 
        Agriculture.  This activity may take place within or outside the 
        state of Minnesota. 
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        18B.36, subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
        commercial or noncommercial applicator, only a certified private 
        applicator may use a restricted use pesticide to produce an 
        agricultural commodity: 
           (1) as a traditional exchange of services without financial 
        compensation; 
           (2) on a site owned, rented, or managed by the person or 
        the person's employees; or 
           (3) when the private applicator is one of two or fewer 
        specified individuals employed as agricultural employment as 
        defined by section 268.035, subdivision 2, employees and the 
        owner or operator is a certified private applicator or is 
        licensed as a noncommercial applicator. 
           (b) A private applicator may not purchase a restricted use 
        pesticide without presenting a certified private applicator card 
        or the card number. 
           Sec. 9.  [18D.302] [FALSE STATEMENT OR RECORD.] 
           A person must not knowingly make or offer a false 
        statement, record, or other information as part of: 
           (1) an application for registration, license, 
        certification, permit, or land application of contaminated soil 
        or other media under this chapter or chapter 18B, 18C, or 18F or 
        rules adopted under one of those chapters; 
           (2) records or reports required under this chapter or 
        chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
        those chapters; or 
           (3) an investigation of a violation of this chapter or 
        chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
        those chapters. 
           Sec. 10.  Minnesota Statutes 2000, section 18E.02, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [EMERGENCY INCIDENT.] "Emergency incident" means 
        an incident resulting from a flood, fire, tornado, 
        transportation accident, storage container rupture, or other 
        event as determined by the commissioner that immediately, 
        uncontrollably, and unpredictably releases agricultural 
        chemicals into the environment and that may cause unreasonable 
        adverse effects on the public health or the environment. 
           Sec. 11.  Minnesota Statutes 2000, section 18E.02, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [RECONTAMINATION.] "Recontamination" means an 
        agricultural chemical incident that occurs in a specific land 
        area where corrective actions were taken to address a previous 
        incident.  Recontamination does not include an emergency 
        incident. 
           Sec. 12.  Minnesota Statutes 2000, section 18E.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FEE.] (a) The response and reimbursement fee 
        consists of the surcharges and any adjustments made by the 
        commissioner in this subdivision and shall be collected by the 
        commissioner.  The amount of the response and reimbursement fee 
        shall be determined and imposed annually by the commissioner as 
        required to satisfy the requirements in subdivision 3.  The 
        commissioner shall adjust the amount of the surcharges imposed 
        in proportion to the amount of the surcharges listed in this 
        subdivision.  License application categories under paragraph (d) 
        must be charged in proportion to the amount of surcharges 
        imposed up to a maximum of 50 percent of the license fees set 
        under chapters 18B and 18C. 
           (b) The commissioner shall impose a surcharge on pesticides 
        registered under chapter 18B to be collected as a surcharge on 
        the registration application fee under section 18B.26, 
        subdivision 3, that is equal to 0.1 percent of sales of the 
        pesticide in the state and sales of pesticides for use in the 
        state during the previous calendar year, except the surcharge 
        may not be imposed on pesticides that are sanitizers or 
        disinfectants as determined by the commissioner.  No surcharge 
        is required if the surcharge amount based on percent of annual 
        gross sales is less than $10.  The registrant shall determine 
        when and which pesticides are sold or used in this state.  The 
        registrant shall secure sufficient sales information of 
        pesticides distributed into this state from distributors and 
        dealers, regardless of distributor location, to make a 
        determination.  Sales of pesticides in this state and sales of 
        pesticides for use in this state by out-of-state distributors 
        are not exempt and must be included in the registrant's annual 
        report, as required under section 18B.26, subdivision 3, 
        paragraph (c), and fees shall be paid by the registrant based 
        upon those reported sales.  Sales of pesticides in the state for 
        use outside of the state are exempt from the surcharge in this 
        paragraph if the registrant properly documents the sale location 
        and the distributors. 
           (c) The commissioner shall impose a ten cents per ton 
        surcharge on the inspection fee under section 18C.425, 
        subdivision 6, for fertilizers, soil amendments, and plant 
        amendments.  
           (d) The commissioner shall impose a surcharge on the 
        license application of persons licensed under chapters 18B and 
        18C consisting of: 
           (1) a $75 surcharge for each site where pesticides are 
        stored or distributed, to be imposed as a surcharge on pesticide 
        dealer application fees under section 18B.31, subdivision 5; 
           (2) a $75 surcharge for each site where a fertilizer, plant 
        amendment, or soil amendment is distributed, to be imposed on 
        persons licensed under sections 18C.415 and 18C.425; 
           (3) a $50 surcharge to be imposed on a structural pest 
        control applicator license application under section 18B.32, 
        subdivision 6, for business license applications only; 
           (4) a $20 surcharge to be imposed on commercial applicator 
        license application fees under section 18B.33, subdivision 7; 
           (5) a $20 surcharge to be imposed on noncommercial 
        applicator license application fees under section 18B.34, 
        subdivision 5, except a surcharge may not be imposed on a 
        noncommercial applicator that is a state agency, political 
        subdivision of the state, the federal government, or an agency 
        of the federal government; and 
           (6) a $20 surcharge to be imposed on aquatic pest control 
        licenses under section 18B.315. 
           (e) A $1,000 fee shall be imposed on each site where 
        pesticides are stored and sold for use outside of the state 
        unless:  
           (1) the distributor properly documents that it has less 
        than $2,000,000 per year in wholesale value of pesticides stored 
        and transferred through the site; or 
           (2) the registrant pays the surcharge under paragraph (b) 
        and the registration fee under section 18B.26, subdivision 3, 
        for all of the pesticides stored at the site and sold for use 
        outside of the state. 
           (f) Paragraphs (c) to (e) apply to sales, licenses issued, 
        applications received for licenses, and inspection fees imposed 
        on or after July 1, 1990. 
           Sec. 13.  Minnesota Statutes 2001 Supplement, section 
        18E.04, subdivision 2, is amended to read: 
           Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
        request by an eligible person, the board may pay the eligible 
        person for the reasonable and necessary cash disbursements for 
        corrective action costs incurred by the eligible person as 
        provided under subdivision 4 if the board determines: 
           (1) the eligible person pays the first $1,000 of the 
        corrective action costs; 
           (2) the eligible person provides the board with a sworn 
        affidavit and other convincing evidence that the eligible person 
        is unable to pay additional corrective action costs; 
           (3) the eligible person continues to assume responsibility 
        for carrying out the requirements of corrective action orders 
        issued to the eligible person or that are in effect; 
           (4) the incident was reported as required in chapters 18B, 
        18C, and 18D; and 
           (5) the eligible person submits an application for payment 
        or reimbursement to the department within three years of (i) 
        incurring eligible corrective action costs, or (ii) approval of 
        a corrective action report design, whichever is later. 
           (b) The eligible person must submit an application for 
        payment or reimbursement of eligible cost incurred prior to July 
        1, 2001, no later than June 1, 2004. 
           (c) An eligible person is not eligible for payment or 
        reimbursement and must refund amounts paid or reimbursed by the 
        board if false statements or misrepresentations are made in the 
        affidavit or other evidence submitted to the commissioner to 
        show an inability to pay corrective action costs.  
           (d) The board may pay the eligible person and one or more 
        designees by multiparty check. 
           Sec. 14.  Minnesota Statutes 2000, section 18E.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PARTIAL REIMBURSEMENT.] (a) If the unencumbered 
        balance of the account drops below $2,000,000, the board may 
        only pay or reimburse an eligible person up to $100,000 within 
        the same fiscal year. 
           (b) If the board determines that an incident was caused by 
        a violation of chapter 18B, 18C, or 18D, the board may reimburse 
        or pay a portion of the corrective action costs of the eligible 
        person based on the culpability of the eligible person and the 
        percentage of the costs not attributable to the violation.  
           Sec. 15.  Minnesota Statutes 2001 Supplement, 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 80 percent of the total reasonable and necessary 
        corrective action costs greater than $1,000 and less than or 
        equal to $200,000; 
           (2) 80 percent of the total reasonable and necessary 
        corrective action costs greater than $200,000 but less than or 
        equal to $300,000; and 
           (3) 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. 
           (g) Except for an emergency incident, the board may not 
        reimburse or pay for more than 60 percent of the corrective 
        action costs of an eligible person or for an incident within 
        five years of a previous incident at a single site resulting 
        from a site recontamination. 
           Sec. 16.  Minnesota Statutes 2000, section 18E.06, is 
        amended to read: 
           18E.06 [REPORT.] 
           By September December 1 of each year, the agricultural 
        chemical response compensation board and the commissioner shall 
        submit to the house of representatives committee on ways and 
        means, the senate committee on finance, the house of 
        representatives and senate committees with jurisdiction over the 
        environment, natural resources, and agriculture, and the 
        environmental quality board a report detailing the activities 
        and reimbursements for which money from the account has been 
        spent during the previous year. 
           Sec. 17.  Minnesota Statutes 2000, section 21.111, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [INTERSTATE COOPERATION.] In order to best use 
        state resources, the commissioner may enter into agreements with 
        other seed potato certification entities to carry out the 
        purposes of sections 21.111 to 21.122.  Any agreement may 
        provide for field inspections, shipping point inspections, 
        winter tests, and other certification functions to be carried 
        out by personnel employed by either entity according to methods 
        determined by the certification entities of the respective 
        areas.  The commissioner may extend seed potato certification 
        services to states where growers wish to grow certified seed 
        potatoes and the state does not have a seed potato certification 
        program.  Any agreement must be reported to the chairs of the 
        legislative committees responsible for the budget or policy of 
        the seed potato inspection program and to the commissioner of 
        finance. 
           Sec. 18.  Minnesota Statutes 2000, section 31.101, as 
        amended by Laws 2001, First Special Session chapter 2, section 
        53, is amended to read: 
           31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
           Subdivision 1.  [AUTHORITY.] The commissioner may 
        promulgate and amend rules for the efficient administration and 
        enforcement of the Minnesota Food Law.  The rules when 
        applicable 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 must be conducted by the commissioner or an officer, agent, 
        or employee the commissioner designates for the purpose.  
           Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
        chemical regulations in effect on April 1, 2000 2001, 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.  
           Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
        regulations in effect on April 1, 2000 2001, as provided by Code 
        of Federal Regulations, title 21, parts 170 to 199, are the food 
        additive rules in this state.  
           Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
        regulations in effect on April 1, 2000 2001, as provided by Code 
        of Federal Regulations, title 21, parts 70 to 82, are the color 
        additive rules in this state.  
           Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
        dietary use regulations in effect on April 1, 2000 2001, as 
        provided by Code of Federal Regulations, title 21, parts 104 and 
        105, are the special dietary use rules in this state.  
           Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
        regulations in effect on April 1, 2000 2001, 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.  The commissioner may not adopt amendments to 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 adopted under that act.  
           Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
        regulations including recodification contained in Code of 
        Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
        effect April 1, 2000 2001, and not otherwise adopted herein, 
        also are adopted as food rules of this state.  
           Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
        effect on April 1, 2000 2001, 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.  
           Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
        effect on April 1, 2000 2001, 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. 
           Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
        OTHER PRODUCTS.] Federal regulations in effect on April 1, 
        2000 2001, as provided by Code of Federal Regulations, title 7, 
        parts 51 and 52, are incorporated as part of the rules in this 
        state.  
           Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
        STANDARDS.] Federal grading and inspection standards for 
        manufacturing dairy plants and products and amendments thereto 
        in effect on January April 1, 2001, as provided by Code of 
        Federal Regulations, title 7, part 58, subparts B-W, are adopted 
        as the dairy grade rules and manufacturing plant standards in 
        this state. 
           Sec. 19.  Minnesota Statutes 2000, 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 in effect on April 1, 2000 2001, adopted 
        under authority of the federal act, are the definitions and 
        standards of identity, quality, and fill of container in this 
        state.  The rules may be amended by the commissioner under 
        chapter 14.  
           Sec. 20.  Minnesota Statutes 2000, section 31.103, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
        labels of consumer commodities 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, 2000 2001, adopted under authority of that 
        act, except to the extent that the commissioner amends the rules 
        under chapter 14.  Consumer commodities exempted from the 
        requirements of section 4 of the Fair Packaging and Labeling Act 
        are also exempt from this subdivision.  
           Sec. 21.  Minnesota Statutes 2000, 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, 2000 2001, 
        adopted under authority of the federal act relating to such 
        exemptions are effective in this state unless the commissioner 
        amends them.  The commissioner also may amend existing rules 
        concerning exemptions under chapter 14. 
           Sec. 22.  [35.155] [CERVIDAE IMPORT RESTRICTIONS.] 
           (a) A person must not import cervidae into the state from a 
        herd that is infected or exposed to chronic wasting disease or 
        from a known chronic wasting disease endemic area, as determined 
        by the board.  A person may import cervidae into the state only 
        from a herd that is not in a known chronic wasting disease 
        endemic area, as determined by the board, and the herd has been 
        subject to a state or provincial approved chronic wasting 
        disease monitoring program for at least three years.  Cervidae 
        imported in violation of this section may be seized and 
        destroyed by the commissioner of natural resources. 
           (b) This section expires on June 1, 2003. 
           Sec. 23.  Minnesota Statutes 2000, section 38.331, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COUNTY EXTENSION WORK.] "County extension work" 
        means educational programs and services provided by extension 
        agents educators in the areas of agriculture, economic and human 
        development, community; agricultural finance; economic 
        development; nutrition; youth leadership development including 
        4-H programs; leadership,; and environment and natural resources.
           Sec. 24.  Minnesota Statutes 2000, 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 or family farm partnership, 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. 
           Sec. 25.  Minnesota Statutes 2000, section 41B.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
        addition to the requirements under subdivision 1, a prospective 
        borrower for a beginning farm loan in which the authority holds 
        an interest, must:  
           (1) have sufficient education, training, or experience in 
        the type of farming for which the loan is desired; 
           (2) have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, of less 
        than $200,000 in 1991 and an amount in subsequent years which is 
        adjusted for inflation by multiplying $200,000 by the cumulative 
        inflation rate as determined by the United States All-Items 
        Consumer Price Index; 
           (3) demonstrate a need for the loan; 
           (4) demonstrate an ability to repay the loan; 
           (5) certify that the agricultural land to be purchased will 
        be used by the borrower for agricultural purposes; 
           (6) certify that farming will be the principal occupation 
        of the borrower; 
           (7) agree to participate in a farm management program 
        approved by the commissioner of agriculture for at least the 
        first five three years of the loan, if an approved program is 
        available within 45 miles from the borrower's residence.  The 
        commissioner may waive this requirement for any of the programs 
        administered by the authority if the participant requests a 
        waiver and has either a four-year degree in an agricultural 
        program or certification as an adult farm management instructor; 
        and 
           (8) agree to file an approved soil and water conservation 
        plan with the soil conservation service office in the county 
        where the land is located.  
           (b) If a borrower fails to participate under paragraph (a), 
        clause (7), the borrower is subject to penalty as determined by 
        the authority. 
           Sec. 26.  Minnesota Statutes 2001 Supplement, section 
        41B.046, subdivision 2, is amended to read: 
           Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
        and implement a value-added agricultural product loan program to 
        help farmers finance the purchase of stock in a cooperative, 
        limited liability company, or limited liability partnership that 
        is proposing to build or purchase and operate an agricultural 
        product processing facility or already owns and operates an 
        agricultural product processing facility. 
           Sec. 27.  [41B.049] [METHANE DIGESTER LOAN PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The authority shall 
        establish and implement a methane digester loan program to help 
        finance the purchase of necessary equipment and the construction 
        of a system that will utilize manure to produce electricity. 
           Subd. 2.  [REVOLVING FUND.] There is established in the 
        state treasury a revolving fund, which is eligible to receive 
        appropriations and the transfer of funds from other services.  
        All repayments of financial assistance granted under subdivision 
        1, including principal and interest, must be deposited into this 
        fund.  Interest earned on money in the fund accrues to the fund, 
        and money in the fund is appropriated to the commissioner of 
        agriculture for purposes of the manure digester loan program, 
        including costs incurred by the authority to establish and 
        administer the program. 
           Subd. 3.  [ELIGIBILITY.] Notwithstanding section 41B.03, to 
        be eligible for a loan under this section a borrower must: 
           (1) locate the projects and utilize the equipment and 
        practices on land located in Minnesota; 
           (2) provide evidence of financial stability; 
           (3) demonstrate an ability to repay the loan; and 
           (4) provide evidence that the practices implemented and 
        capital assets purchased will be properly managed and maintained.
           Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
        or participate in a loan with an eligible lender to a farmer who 
        is eligible under subdivision 3.  The interest rates and 
        repayment terms of the authority's participation interest may 
        differ from the interest rates and repayment terms of the 
        lender's retained portion of the loan.  The authority's interest 
        rate for a direct loan or a loan participation must not exceed 
        four percent.  Loans made under this section before July 1, 
        2003, must be no-interest loans.  
           (b) Application for a direct loan or a loan participation 
        must be made on forms prescribed by the authority. 
           (c) Standards for loan amortization shall be set by the 
        rural finance authority not to exceed ten years. 
           (d) Security for the loans must be a personal note executed 
        by the borrower and whatever other security is required by the 
        eligible lender or the authority. 
           (e) No loan proceeds may be used to refinance a debt 
        existing prior to application. 
           (f) The authority may impose a reasonable nonrefundable 
        application fee for each application for a direct loan or a loan 
        participation.  The authority may review the application fees 
        annually and make adjustments as necessary.  The application fee 
        is initially set at $100 for a loan under subdivision 1.  The 
        fees received by the authority must be deposited in the 
        revolving fund created in subdivision 2. 
           Subd. 5.  [LOAN CRITERIA.] (a) To be eligible, a borrower 
        must be a resident of Minnesota or an entity that is not 
        prohibited from owning agricultural land under section 500.24. 
           (b) State participation in a participation loan is limited 
        to 45 percent of the principal amount of the loan.  A direct 
        loan or loan participation may not exceed $250,000.  
           (c) Loans under this program may be used as a match for 
        federal loans or grants. 
           (d) A borrower who has previously received a loan under 
        subdivision 1 is prohibited from receiving another methane 
        digester loan under subdivision 1. 
           Sec. 28.  Minnesota Statutes 2000, section 97A.105, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [CERVIDAE RUNNING AT LARGE PROHIBITED.] (a) An 
        owner may not allow cervidae to run at large.  The owner must 
        make all reasonable efforts to return escaped cervidae to their 
        enclosures as soon as possible.  The owner must notify the 
        commissioner of the escape of cervidae if the cervidae are not 
        returned or captured by the owner within 24 hours of their 
        escape. 
           (b) An owner is liable for expenses of another person in 
        capturing, caring for, and returning cervidae that have left 
        their enclosures if the person capturing the cervidae contacts 
        the owner as soon as possible. 
           (c) If an owner is unwilling or unable to capture escaped 
        cervidae, the commissioner may destroy the escaped cervidae.  
        The commissioner must allow the owner to attempt to capture the 
        escaped cervidae prior to destroying the cervidae.  Cervidae 
        that are not captured by 24 hours after escape may be destroyed. 
           Sec. 29.  Minnesota Statutes 2000, section 97A.105, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An 
        owner, or employee or agent under the direction of the owner, 
        must destroy wild cervidae found within the game farm owner's 
        cervidae confinement area.  The owner, employee, or agent must 
        report the wild cervidae destroyed to a conservation officer or 
        an employee of the division of wildlife within 24 hours.  The 
        wild cervidae must be disposed of as prescribed by the 
        commissioner. 
           Sec. 30.  [116.0714] [NEW OPEN AIR SWINE BASINS.] 
           After the effective date of this section, the commissioner 
        of the pollution control agency or a county board shall not 
        approve any permits for the construction of new open air swine 
        basins, except that existing facilities may use one basin of 
        less than 1,000,000 gallons as part of a permitted waste 
        treatment program for resolving pollution problems or to allow 
        conversion of an existing basin of less than 1,000,000 gallons 
        to a different animal type, provided all standards are met.  
        This section expires June 30, 2007. 
           Sec. 31.  Minnesota Statutes 2000, section 223.16, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
        purchases grain for the purpose of reselling the grain or 
        products made from 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. 32.  Laws 2001, chapter 206, section 14, is amended to 
        read: 
           Sec. 14.  [500.222] [EXEMPT ACREAGE IN LAND EXCHANGE.] 
           The city of Bird Island A local unit of government may 
        exchange a parcel of land owned by it or acquired for it by a 
        qualified intermediary, for a parcel of agricultural real estate 
        that is owned by an individual exempt under Minnesota Statutes, 
        section 500.221, based on ownership being lawfully acquired 
        prior to June 1, 1981.  Since there is no exception for 
        exchanged property under Minnesota Statutes, section 500.221, 
        the exchange of the city's parcel would result in the loss of 
        exemption for the exchanged property.  Accordingly, this act 
        provides that The agricultural land being exchanged for the 
        parcel that is currently exempt shall also be exempt under 
        Minnesota Statutes, section 500.221, as if it had been purchased 
        by the owner prior to June 1, 1981.  Such The exchanged parcel 
        shall have exactly the same rights status under the 
        statute section 500.221 as the parcel to be exchanged and 
        the status may be stated on the deeds used to effectuate the 
        transaction may so state. 
           Sec. 33.  [NORTHERN COUNTIES LAND USE COORDINATING BOARD; 
        LAND USE MANAGEMENT; PILOT PROJECT.] 
           (a) The northern counties land use coordinating board may 
        initiate a pilot project to promote cooperative efforts among 
        county, state, federal, and local units of government and 
        private citizens regarding land use management issues.  The 
        office of strategic and long-range planning must coordinate the 
        activities of state agencies, which shall include the 
        departments of agriculture, commerce, natural resources, trade 
        and economic development, board of soil and water resources, 
        iron range resources and rehabilitation board, environmental 
        quality board, pollution control agency, and the office of 
        environmental assistance. 
           (b) The board must also solicit cooperation with Canadian 
        officials who represent areas contiguous to the region and with 
        organizations representing recreational, agricultural, mining, 
        forestry, and tourism interests within the affected boundaries 
        of the northern counties land use coordinating board. 
           (c) The legislature also encourages participation by 
        appropriate federal agencies. 
           (d) The objectives of the pilot project are to: 
           (1) document instances when land use regulations and 
        policies are incompatible with local government land use 
        authority; 
           (2) document instances when regulations and policies 
        interfere with private property rights; and 
           (3) identify and promote a means of resolving differences. 
           (e) The board must report to the legislature by January 15, 
        2004, on the status of the project.  The pilot project ends on 
        June 30, 2004. 
           (f) Costs to the office of strategic and long-range 
        planning related to its coordination duties under this section 
        must be reimbursed by the northern counties land use 
        coordinating board or its participating counties as provided in 
        an agreement between the office and the board.  The agreement is 
        not subject to the limits on contracts and hiring in Laws 2002, 
        chapter 220, article 10, sections 36 to 38.  Reimbursements must 
        be deposited in the state treasury and credited to the special 
        revenue fund and are appropriated to the office to carry out the 
        agreement. 
           Sec. 34.  [CHRONIC WASTING DISEASE RECOMMENDATIONS; 
        REPORT.] 
           The board of animal health and the commissioner of natural 
        resources, in consultation with the cervidae advisory committee 
        and other interested parties, shall jointly study and make 
        recommendations on measures to protect domestic and wild 
        cervidae from chronic wasting disease.  The report shall include 
        recommendations for: 
           (1) cervidae fence specifications; 
           (2) disease infection prevention measures; 
           (3) criteria for quarantine or destruction of contaminated 
        herds; 
           (4) methods of harvest; 
           (5) tagging of cervidae; and 
           (6) other items determined by the board and the 
        commissioner. 
        By January 15, 2003, the board and the commissioner shall report 
        their recommendations to the senate and house of representatives 
        committees with jurisdiction over agriculture and natural 
        resources policy. 
           Sec. 35.  [TEMPORARY WAIVER OF RULE.] 
           The application of Minnesota Rules, part 1720.0620, is 
        temporarily waived from June 1, 2002, to June 30, 2003, for 
        products used exclusively for poultry. 
           Sec. 36.  [NOXIOUS WEED RULES.] 
           The commissioner of agriculture shall amend the rules 
        authorized under Minnesota Statutes, section 18.79, pursuant to 
        Minnesota Statutes, section 14.388, to add Grecian Foxglove 
        (digitalis lanata) to the list of secondary noxious weeds. 
           Sec. 37.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
           The remaining balance in the revolving account in Minnesota 
        Statutes, section 17.115, that is dedicated to manure digester 
        loans under Minnesota Statutes, section 17.115, subdivision 5, 
        shall be transferred to the revolving fund established under 
        Minnesota Statutes, section 41B.049, subdivision 2, on the 
        effective date of this section.  Notwithstanding Minnesota 
        Statutes, section 17.115, and Laws 2002, chapter 220, article 9, 
        section 7, all future receipts from manure digester loans 
        originated under Minnesota Statutes, section 17.115, and from 
        disaster recovery loans, under Minnesota Statutes, section 
        41B.047, shall be deposited in the revolving fund established 
        under Minnesota Statutes, section 41B.049, subdivision 2. 
           Sec. 38.  [EFFECTIVE DATE.] 
           Sections 2, 3, 22, 28 to 30, and 32 to 36 are effective the 
        day following final enactment. 
           Presented to the governor May 14, 2002 
           Signed by the governor May 17, 2002, 10:33 a.m.