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Office of the Revisor of Statutes

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

                            CHAPTER 254-S.F.No. 2428 
                  An act relating to agriculture; modifying provisions 
                  relating to shared savings loan program; establishing 
                  a livestock production policy; modifying provisions 
                  relating to certain home-processed foods and county 
                  and regional fairs; modifying ethanol plant ownership 
                  disclosure requirements; modifying eligibility and 
                  limits for certain Rural Finance Authority loans; 
                  providing for dairy modernization; changing certain 
                  requirements for veterinary practice; modifying 
                  amounts for certain grain buyers' bonds; providing for 
                  the validity of electronic documents and signatures 
                  for grain buyers and grain warehouses; modifying 
                  certain restrictions on farming by business 
                  organizations and certain restrictions on acquisition 
                  of title; modifying requirements on uses of certain 
                  vaccines in beef cattle; amending Minnesota Statutes 
                  2002, sections 17.115, subdivision 2; 18C.433; 28A.15, 
                  by adding a subdivision; 38.04; 38.12; 38.14; 38.15; 
                  38.16; 41B.03, subdivisions 2, 3; 41B.039, subdivision 
                  2; 41B.04, subdivision 8; 41B.042, subdivision 4; 
                  41B.043, subdivision 1b, by adding a subdivision; 
                  41B.045, subdivision 2; 41B.046, subdivision 5; 
                  41C.02, subdivision 12; 156.12, subdivision 2, by 
                  adding a subdivision; 223.16, by adding subdivisions; 
                  223.17, subdivision 6; 223.177, subdivision 3; 232.21, 
                  by adding subdivisions; 232.23, subdivision 4; 
                  308A.995, subdivision 5; 500.221, subdivisions 1, 1a, 
                  5; 500.24, subdivisions 2, 3a; 561.19, subdivisions 1, 
                  2; 609.605, by adding a subdivision; Minnesota 
                  Statutes 2003 Supplement, sections 18B.07, subdivision 
                  2; 38.02, subdivisions 1, 3; 41A.09, subdivision 3a; 
                  223.17, subdivision 4; 308B.121, subdivision 5; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 17; 116J; 609; repealing Minnesota Statutes 
                  2002, sections 38.02, subdivision 2; 38.13. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 17.115, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOAN CRITERIA.] (a) The shared savings loan 
        program must provide loans for purchase of new or used machinery 
        and installation of equipment for projects that make 
        environmental improvements or enhance farm profitability.  
        Eligible loan uses do not include seed, fertilizer, or fuel. 
           (b) Loans may not exceed $25,000 per individual applying 
        for a loan and may not exceed $100,000 for loans to four or more 
        individuals on joint projects.  The loan repayment period may be 
        up to seven years as determined by project cost and energy 
        savings.  The interest rate on the loans is must not exceed six 
        percent.  For loans made from May 1, 2004, to June 30, 2007, the 
        interest rate must not exceed three percent. 
           (c) Loans may only be made to residents of this state 
        engaged in farming.  
           Sec. 2.  [17.844] [LIVESTOCK PRODUCTION POLICY.] 
           (a) The policy of the state is to promote livestock 
        production on family farms under a broad range of management 
        systems that are environmentally sound and meet all legal 
        requirements of all jurisdictions, including federal, state, 
        county, town, city, and watershed district requirements. 
           (b) In order to promote livestock production on family 
        farms, state agencies when appropriate shall, to the extent 
        allowed by law: 
           (1) promote the establishment of livestock enterprises on 
        family farms; 
           (2) promote environmental protection and water quality 
        improvement through increased livestock production that results 
        in controlling runoff through increased acreage of hay, pasture, 
        and small grains; and 
           (3) promote more farms to use agronomically applied manure 
        to increase the water holding capacity of the soil and control 
        erosion. 
           Sec. 3.  Minnesota Statutes 2003 Supplement, section 
        18B.07, subdivision 2, is amended to read: 
           Subd. 2.  [PROHIBITED PESTICIDE USE.] (a) A person may not 
        use, store, handle, distribute, or dispose of a pesticide, 
        rinsate, pesticide container, or pesticide application equipment 
        in a manner: 
           (1) that is inconsistent with a label or labeling as 
        defined by FIFRA; 
           (2) that endangers humans, damages agricultural products, 
        food, livestock, fish, or wildlife; or 
           (3) that will cause unreasonable adverse effects on the 
        environment.  
           (b) A person may not direct a pesticide onto property 
        beyond the boundaries of the target site.  A person may not 
        apply a pesticide resulting in damage to adjacent property. 
           (c) A person may not directly apply a pesticide on a human 
        by overspray or target site spray, except when: 
           (1) the pesticide is intended for use on a human; 
           (2) the pesticide application is for mosquito control 
        operations; 
           (3) the pesticide application is for control of gypsy moth, 
        forest tent caterpillar, or other pest species, as determined by 
        the commissioner, and the pesticide used is a biological agent; 
        or 
           (4) the pesticide application is for a public health risk, 
        as determined by the commissioner of health, and the 
        commissioner of health, in consultation with the commissioner of 
        agriculture, determines that the application is warranted based 
        on the commissioner's balancing of the public health risk with 
        the risk that the pesticide application poses to the health of 
        the general population, with special attention to the health of 
        children. 
           (d) For pesticide applications under paragraph (c), clause 
        (2), the following conditions apply: 
           (1) no practicable and effective alternative method of 
        control exists; 
           (2) the pesticide is among the least toxic available for 
        control of the target pest; and 
           (3) notification to residents in the area to be treated is 
        provided at least 24 hours before application through direct 
        notification, posting daily on the treating organization's Web 
        site, if any, and by sending a broadcast e-mail to those persons 
        who request notification of such, of those areas to be treated 
        by adult mosquito control techniques during the next calendar 
        day.  For control operations related to human disease, notice 
        under this paragraph may be given less than 24 hours in advance. 
           (e) For pesticide applications under paragraph (c), clauses 
        (3) and (4), the following conditions apply: 
           (1) no practicable and effective alternative method of 
        control exists; 
           (2) the pesticide is among the least toxic available for 
        control of the target pest; and 
           (3) notification of residents in the area to be treated is 
        provided by direct notification and through publication in a 
        newspaper of general circulation within the affected area. 
           (f) For purposes of this subdivision, "direct notification" 
        may include mailings, public meetings, posted placards, 
        neighborhood newsletters, or other means of contact designed to 
        reach as many residents as possible.  Public meetings held to 
        meet this requirement for adult mosquito control, under 
        paragraph (d), must be held within each city or town where the 
        pesticide treatments are to be made, at a time and location that 
        is convenient for residents of the area where the treatments 
        will occur. 
           (g) A person may not apply a pesticide in a manner so as to 
        expose a worker in an immediately adjacent, open field. 
           Sec. 4.  Minnesota Statutes 2002, section 18C.433, is 
        amended to read: 
           18C.433 [PRIVATE COMMERCIAL MANURE APPLICATOR CERTIFICATION 
        APPLICATION REQUIREMENT.] 
           Subdivision 1.  [REQUIREMENT.] Beginning January 1, 
        2005 2006, except for only a commercial animal waste technician, 
        only a certified private manure applicator may apply animal 
        waste from a feedlot that: 
           (1) has a capacity of 300 animal units or more; and 
           (2) does not have an updated manure management plan that 
        meets the requirements of Pollution Control Agency rules. 
           Subd. 2.  [CERTIFICATION.] (a) The commissioner shall 
        prescribe certification requirements and provide training.  The 
        training may be done in cooperation with other government 
        agencies and must be at least three hours in duration. 
           (b) A person must apply to the commissioner for 
        certification as a private manure applicator.  The certification 
        expires March 1 of the third calendar year after the initial 
        year of certification. 
           (c) The commissioner shall issue a private manure 
        applicator card to a certified private manure applicator. 
           Subd. 3.  [FEES.] (a) A person applying to be certified as 
        a private manure applicator must pay a nonrefundable $10 
        application fee. 
           (b) A $5 fee must be paid for the issuance of a duplicate 
        private manure applicator card. 
           Sec. 5.  Minnesota Statutes 2002, section 28A.15, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [CERTAIN HOME-PROCESSED AND HOME-CANNED 
        FOODS.] (a) A person who receives less than $5,000 in gross 
        receipts in a calendar year from the sale of home-processed and 
        home-canned food products and meets the requirements in clauses 
        (1) to (5): 
           (1) the products are pickles, vegetables, or fruits having 
        an equilibrium pH value of 4.6 or lower; 
           (2) the products are home-processed and home-canned in 
        Minnesota; 
           (3) the products are sold or offered for sale at a 
        community or social event or a farmers' market in Minnesota; 
           (4) the seller displays at the point of sale a clearly 
        legible sign or placard stating:  "These canned goods are 
        homemade and not subject to state inspection" unless the 
        products were processed and canned in a kitchen that is licensed 
        or inspected; and 
           (5) each container of the product sold or offered for sale 
        under this exemption is accurately labeled to provide the name 
        and address of the person who processed and canned the goods and 
        the date on which the goods were processed and canned. 
           (b) A person that qualifies for an exemption under 
        paragraph (a) is also exempt from the provisions of sections 
        31.31 and 31.392. 
           (c) A person claiming an exemption under this subdivision 
        is urged to: 
           (1) attend and successfully complete a better process 
        school recognized by the commissioner; and 
           (2) have the recipe and manufacturing process reviewed by a 
        person knowledgeable in the food canning industry and recognized 
        by the commissioner as a process authority. 
           (d) The commissioner, in close cooperation with the 
        commissioner of health and the Minnesota Extension Service, 
        shall attempt to maximize the availability of information and 
        technical services and support for persons who wish to 
        home-process and home-can low acid and acidified food products. 
           Sec. 6.  Minnesota Statutes 2003 Supplement, section 38.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] (a) 
        Money appropriated to aid county and district agricultural 
        societies and associations shall be distributed among all county 
        and district agricultural societies or associations in the state 
        pro rata, upon condition that each of them has complied with the 
        conditions specified in paragraph (b). 
           (b) To be eligible to participate in the distribution of 
        aid, each agricultural society or association shall have: 
           (1) held an annual fair for each of the three years last 
        past, unless prevented from doing so because of a calamity or an 
        epidemic declared by the Board of Health as defined in section 
        145A.02, subdivision 2, or the state commissioner of health, or 
        the Board of Animal Health to exist; 
           (2) an annual membership of 25 15 or more; 
           (3) paid out to exhibitors for premiums awarded at the last 
        fair held a sum not less than the amount to be received from the 
        state; 
           (4) published and distributed, or made available on an 
        Internet Web site, not less than three weeks before the opening 
        day of the fair a premium list, listing all items or articles on 
        which premiums are offered and the amounts of such premiums and 
        shall have paid premiums pursuant to the amount shown for each 
        article or item to be exhibited; provided that premiums for 
        school exhibits may be advertised in the published premium list 
        by reference to a school premium list prepared and circulated 
        during the preceding school year; and shall have collected all 
        fees charged for entering an exhibit at the time the entry was 
        made and in accordance with schedule of entry fees to be charged 
        as published in the premium list; 
           (5) paid not more than one premium on each article or item 
        exhibited, excluding championship or sweepstake awards, and 
        excluding the payment of open class premium awards to 4H Club 
        exhibits which at this same fair had won a first prize award in 
        regular 4H Club competition; and 
           (6) submitted its records and annual report to the 
        commissioner of agriculture on a form provided by the 
        commissioner of agriculture, on or before the first day of 
        November of the year in which the fair was held its annual 
        report of premiums paid. 
           (c) All payments authorized under the provisions of this 
        chapter shall be made only upon the presentation by the 
        commissioner of agriculture with the commissioner of finance of 
        a statement of premium allocations.  As used herein the term 
        premium shall mean the cash award paid to an exhibitor for the 
        merit of an exhibit of livestock, livestock products, grains, 
        fruits, flowers, vegetables, articles of domestic science, 
        handicrafts, hobbies, fine arts, other products of a creative 
        nature, and articles made by school pupils, or the cash award 
        paid to the merit winner of events such as 4H Club or Future 
        Farmer contest, youth group contests, school spelling contests 
        and school current events contests, the award corresponding to 
        the amount offered in the advertised premium list referred to in 
        schedule 2.  Payments of awards for horse races, horse pulls, 
        tractor pulls, demolition derby, automobile or other racing, 
        jackpot premiums, ball games, musical contests, talent contests, 
        parades, and for amusement features for which admission is 
        charged, are specifically excluded from consideration as 
        premiums within the meaning of that term as used herein.  Upon 
        receipt of the statement by the commissioner of agriculture, the 
        commissioner of finance shall draw a voucher in favor of the 
        agricultural society or association for the amount to which it 
        is entitled under the provisions of this chapter.  The amount 
        shall be computed as follows:  On the first $750 premiums paid 
        by each society or association at the last fair held, the 
        society or association shall receive 100 percent reimbursement; 
        on the second $750 premiums paid, 80 percent; on the third $750 
        premiums paid, 60 percent; and on any sum in excess of $2,250, 
        40 percent.  The commissioner of finance shall make payments not 
        later than July 15 of the year following the calendar year in 
        which the annual fair was held to those agricultural societies 
        or associations entitled to payments under the provisions of 
        this chapter. 
           (d) If the total amount of state aid to which the 
        agricultural societies and associations are entitled under the 
        provisions of this chapter exceeds the amount of the 
        appropriation therefor, the amounts to which the societies or 
        associations are entitled shall be prorated so that the total 
        payments by the state will not exceed the appropriation. 
           Sec. 7.  Minnesota Statutes 2003 Supplement, section 38.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATION, COMMISSIONER OF 
        AGRICULTURE ENTITLEMENT FOR PRO RATA DISTRIBUTION.] Any A county 
        or district agricultural society which has held its second 
        annual fair is entitled to share pro rata in the 
        distribution.  The commissioner of agriculture shall certify to 
        the secretary of the State Agricultural Society, within 30 days 
        after payments have been made, a list of all county or district 
        agricultural societies that have complied with this chapter, and 
        which are entitled to share in the appropriation.  All Payments 
        shall be based on reports submitted by agricultural societies 
        under subdivision 1, paragraph (b), clause (6). 
           Sec. 8.  Minnesota Statutes 2002, section 38.04, is amended 
        to read: 
           38.04 [ANNUAL MEETINGS; REPORTS.] 
           Every county agricultural society shall hold an annual 
        meeting for the election of officers and the transaction of 
        other business on or before the third Tuesday in November.  
        Service on the county agricultural society board or as an 
        officer of the board is not a public office.  Elected officials 
        of the state or its political subdivisions may serve on the 
        board or be elected as officers. 
           At the annual meeting, the society's secretary an officer 
        of the society shall make a report of its proceedings for the 
        preceding year; this report shall contain a statement of all 
        transactions at its fairs, the numbers of entries, the amount 
        and source of all money received, and and a financial statement 
        prepared in accordance with generally accepted accounting 
        principles.  The report must also list the amount paid out for 
        premiums and for other purposes, and show in detail its entire 
        receipts and expenditures during the year.  The report must 
        contain a separate accounting of any income received from the 
        operation of horse racing on which pari-mutuel betting is 
        conducted, and of the disposition of that income.  
           The treasurer shall make a comprehensive report of the 
        funds received, paid out, and on hand, and upon whose order 
        paid.  Each secretary shall cause a certified copy of the annual 
        report to be filed with the county recorder of the county and 
        the commissioner of agriculture on or before the first day of 
        November each year. 
           Sec. 9.  Minnesota Statutes 2002, section 38.12, is amended 
        to read: 
           38.12 [APPROPRIATIONS BY CERTAIN MUNICIPALITIES.] 
           The council of any city and the board of supervisors of any 
        town having fairs of county and district agricultural societies 
        or associations, who are members of the Minnesota state 
        agricultural society, held within or in close proximity to their 
        corporate limits or in close proximity thereto, are hereby 
        authorized and empowered to may appropriate for and pay money to 
        such the agricultural society or association annually a sum not 
        exceeding $1,000.  
           Sec. 10.  Minnesota Statutes 2002, section 38.14, is 
        amended to read: 
           38.14 [IN COUNTIES OF 150,000:  APPROPRIATIONS FOR COUNTY 
        FAIRS.] 
           Subdivision 1.  [CONDITIONS, PROCEDURES, BOND.] In any 
        county in this state now or hereafter having a population of 
        150,000, the A county board may annually appropriate not to 
        exceed $3,000, except that counties having more than 300,000 and 
        less than 450,000 inhabitants may appropriate not to exceed 
        $5,000, money to assist in maintaining a county fair, which fair 
        shall be under the management and control of managed by a county 
        agricultural society.  The appropriation shall be made either to 
        the treasurer of the society or to some other suitable person,.  
        but before the money is paid, the treasurer or other person 
        shall file with the county auditor a satisfactory bond in double 
        the sum of the appropriation, conditioned upon the faithful 
        disbursing and accounting for all of the funds so appropriated.  
        The funds so appropriated shall be used solely for the purpose 
        of obtaining, preparing, and arranging exhibits and paying 
        premiums to exhibitors.  The treasurer or other person to whom 
        the appropriation is paid shall, within four months after the 
        holding of any such aided annual fair, file with the county 
        auditor a verified and detailed report showing the name and 
        address of every person to whom any of the money was paid, 
        together with the date of payment, and a full description of the 
        purposes for which the money was so paid, and shall attach 
        thereto receipts and subvouchers for each payment so made and 
        return to the county treasurer all of the unexpended portion 
        thereof.  After the report, receipts, and subvouchers have been 
        audited by the county board and found to be correct, it may, by 
        resolution, release the treasurer or other person and the 
        sureties from all further liabilities under bond. 
           Subd. 2.  [EXCEPT RAMSEY COUNTY.] This section and section 
        38.15 do not apply to Ramsey County. 
           Sec. 11.  Minnesota Statutes 2002, section 38.15, is 
        amended to read: 
           38.15 [SITES AND BUILDINGS.] 
           The county board in any such county may also annually 
        appropriate such further sum as it may desire, not exceeding 
        $7,500, money for the purpose of procuring a suitable site and 
        the erection of erecting on it a suitable county building 
        thereon, for the building or repairing of a race track and for 
        grading and improving the grounds, to be used in connection with 
        such a county fair, but the site and the building and 
        improvements shall be and remain the property of the county, and 
        the annual appropriation shall be used only for the purpose 
        of so acquiring the site and building and grading and for the 
        necessary care, repair, maintenance, and upkeep thereof.  In any 
        county in this state now or hereafter having a population in 
        excess of 150,000 and an area of more than 5,000 square miles, 
        the county agricultural society may expend funds appropriated to 
        it for the year 1957 for the payment of debts and liabilities 
        incurred during the year 1956 in the construction of county fair 
        buildings, notwithstanding the provisions of Laws 1941, chapter 
        118. 
           Sec. 12.  Minnesota Statutes 2002, section 38.16, is 
        amended to read: 
           38.16 [EXEMPTION FROM ZONING ORDINANCES.] 
           When lands lying within the corporate limits of towns or 
        cities of the first or second class of the state are owned by a 
        county or agricultural society and used for agricultural fair 
        purposes, the lands and the buildings now or hereafter erected 
        thereon shall be are exempt from the zoning, building, and other 
        ordinances of the town or city; provided, that no license or 
        permit need be obtained from, nor fee paid to, the town or city 
        in connection with the use of the lands.  
           Sec. 13.  Minnesota Statutes 2003 Supplement, section 
        41A.09, subdivision 3a, is amended to read: 
           Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
        commissioner shall make cash payments to producers of ethanol 
        located in the state that have begun production by June 30, 2000.
        For the purpose of this subdivision, an entity that holds a 
        controlling interest in more than one ethanol plant is 
        considered a single producer.  The amount of the payment for 
        each producer's annual production, except as provided in 
        paragraph (c), is 20 cents per gallon for each gallon of ethanol 
        produced on or before June 30, 2000, or ten years after the 
        start of production, whichever is later.  The first claim for 
        production after June 30, 2003, must be accompanied by Annually, 
        within 90 days of the end of its fiscal year, an ethanol 
        producer receiving payments under this subdivision must file a 
        disclosure statement on a form provided by the commissioner.  
        The initial disclosure statement must include a detailed summary 
        description of the organization of the business structure of the 
        claimant, a listing of the percentages of ownership by any 
        person or other entity with an ownership interest of five 
        percent or greater, the distribution of income received by the 
        claimant, including operating income and payments under this 
        subdivision and a copy of its annual audited financial 
        statements, including the auditor's report and footnotes.  The 
        disclosure statement must include information sufficient to 
        demonstrate that a majority of the ultimate beneficial interest 
        in the demonstrating what percentage of the entity receiving 
        payments under this section is owned by farmers or spouses of 
        farmers, as defined in or other entities eligible to farm or own 
        agricultural land in Minnesota under the provisions of section 
        500.24, residing in Minnesota.  Subsequent quarterly claims 
        annual reports must report reflect noncumulative changes in 
        ownership of ten percent or more of the entity.  Payments must 
        not be made to a claimant that has less than a majority of 
        Minnesota farmer control except that the commissioner may grant 
        an exemption from the farmer majority ownership requirement to a 
        claimant that, on May 29, 2003, has demonstrated greater than 40 
        percent farmer ownership which, when combined with ownership 
        interests of persons residing within 30 miles of the plant, 
        exceeds 50 percent.  In addition, a claimant located in a city 
        of the first class which qualifies for payments in all other 
        respects is not subject to this condition.  Information provided 
        under this paragraph is The report need not disclose the 
        identity of the persons or entities eligible to farm or own 
        agricultural land with ownership interests, individuals residing 
        within 30 miles of the plant, or of any other entity with less 
        than ten percent ownership interest, but the claimant must 
        retain information within its files confirming the accuracy of 
        the data provided.  This data must be made available to the 
        commissioner upon request.  Not later than the 15th day of 
        February in each year the commissioner shall deliver to the 
        chairs of the standing committees of the senate and the house of 
        representatives that deal with agricultural policy and 
        agricultural finance issues an annual report summarizing 
        aggregated data from plants receiving payments under this 
        section during the preceding calendar year.  Audited financial 
        statements and notes and disclosure statements submitted to the 
        commissioner are nonpublic data under section 13.02, subdivision 
        9.  Notwithstanding the provisions of chapter 13 relating to 
        nonpublic data, summaries of the submitted audited financial 
        reports and notes and disclosure statements will be contained in 
        the report to the committee chairs and will be public data.  
           (b) No payments shall be made for ethanol production that 
        occurs after June 30, 2010.  
           (c) If the level of production at an ethanol plant 
        increases due to an increase in the production capacity of the 
        plant, the payment under paragraph (a) applies to the additional 
        increment of production until ten years after the increased 
        production began.  Once a plant's production capacity reaches 
        15,000,000 gallons per year, no additional increment will 
        qualify for the payment. 
           (d) Total payments under paragraphs (a) and (c) to a 
        producer in a fiscal year may not exceed $3,000,000. 
           (e) By the last day of October, January, April, and July, 
        each producer shall file a claim for payment for ethanol 
        production during the preceding three calendar months.  A 
        producer that files a claim under this subdivision shall include 
        a statement of the producer's total ethanol production in 
        Minnesota during the quarter covered by the claim.  For each 
        claim and statement of total ethanol production filed under this 
        subdivision, the volume of ethanol production must be examined 
        by an independent certified public accountant in accordance with 
        standards established by the American Institute of Certified 
        Public Accountants. 
           (f) Payments shall be made November 15, February 15, May 
        15, and August 15.  A separate payment shall be made for each 
        claim filed.  Except as provided in paragraph (g), the total 
        quarterly payment to a producer under this paragraph may not 
        exceed $750,000.  
           (g) Notwithstanding the quarterly payment limits of 
        paragraph (f), the commissioner shall make an additional payment 
        in the fourth quarter of each fiscal year to ethanol producers 
        for the lesser of:  (1) 20 cents per gallon of production in the 
        fourth quarter of the year that is greater than 3,750,000 
        gallons; or (2) the total amount of payments lost during the 
        first three quarters of the fiscal year due to plant outages, 
        repair, or major maintenance.  Total payments to an ethanol 
        producer in a fiscal year, including any payment under this 
        paragraph, must not exceed the total amount the producer is 
        eligible to receive based on the producer's approved production 
        capacity.  The provisions of this paragraph apply only to 
        production losses that occur in quarters beginning after 
        December 31, 1999. 
           (h) The commissioner shall reimburse ethanol producers for 
        any deficiency in payments during earlier quarters if the 
        deficiency occurred because appropriated money was insufficient 
        to make timely payments in the full amount provided in paragraph 
        (a).  Notwithstanding the quarterly or annual payment 
        limitations in this subdivision, the commissioner shall begin 
        making payments for earlier deficiencies in each fiscal year 
        that appropriations for ethanol payments exceed the amount 
        required to make eligible scheduled payments.  Payments for 
        earlier deficiencies must continue until the deficiencies for 
        each producer are paid in full. 
           Sec. 14.  Minnesota Statutes 2002, 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 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; 
           (3) demonstrate substantial difficulty in meeting projected 
        annual expenses without restructuring the loan; and 
           (4) have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, of less 
        than $400,000 $660,000 in 1999 2004 and an amount in subsequent 
        years which is adjusted for inflation by 
        multiplying $400,000 that amount by the cumulative inflation 
        rate as determined by the United States All-Items Consumer Price 
        Index. 
           Sec. 15.  Minnesota Statutes 2002, 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 $350,000 in 2004 and an amount in 
        subsequent years which is adjusted for inflation by 
        multiplying $200,000 that amount 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 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. 16.  Minnesota Statutes 2002, 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 $125,000 $200,000, 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. 17.  Minnesota Statutes 2002, 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 
        $150,000 $225,000, 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. 18.  Minnesota Statutes 2002, 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 
        $125,000 $200,000, 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. 19.  Minnesota Statutes 2002, section 41B.043, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
        participate in an agricultural improvement loan with an eligible 
        lender to a farmer who meets the requirements of section 41B.03, 
        subdivision 1, clauses (1) and (2), and who is actively engaged 
        in farming.  Participation is limited to 45 percent of the 
        principal amount of the loan or $125,000 $200,000, 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. 20.  Minnesota Statutes 2002, section 41B.043, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [TOTAL NET WORTH LIMIT.] A prospective borrower 
        for an agricultural improvement loan in which the authority 
        holds an interest must have a total net worth, including assets 
        and liabilities of the borrower's spouse and dependents, of less 
        than $350,000 in 2004 and an amount in subsequent years which is 
        adjusted for inflation by multiplying that amount by the 
        cumulative inflation rate as determined by the United States 
        All-Items Consumer Price Index. 
           Sec. 21.  Minnesota Statutes 2002, 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 $660,000 in 1999 2004 and an amount in subsequent 
        years which is adjusted for inflation by 
        multiplying $400,000 that amount 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 $275,000, 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.
           Sec. 22.  Minnesota Statutes 2002, section 41B.046, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOANS.] (a) The authority may participate in a 
        stock loan with an eligible lender to a farmer who is eligible 
        under subdivision 4.  Participation is limited to 45 percent of 
        the principal amount of the loan or $24,000 $40,000, whichever 
        is less.  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, but the authority's interest rate must not exceed 50 
        percent of the lender's interest rate. 
           (b) No more than 95 percent of the purchase price of the 
        stock may be financed under this program. 
           (c) Security for stock loans must be the stock purchased, a 
        personal note executed by the borrower, and whatever other 
        security is required by the eligible lender or the authority. 
           (d) The authority may impose a reasonable nonrefundable 
        application fee for each application for a stock loan.  The 
        authority may review the fee annually and make adjustments as 
        necessary.  The application fee is initially $50.  Application 
        fees received by the authority must be deposited in the 
        value-added agricultural product revolving fund. 
           (e) Stock loans under this program will be made using money 
        in the value-added agricultural product revolving fund 
        established under subdivision 3. 
           (f) The authority may not grant stock loans in a cumulative 
        amount exceeding $2,000,000 for the financing of stock purchases 
        in any one cooperative. 
           Sec. 23.  Minnesota Statutes 2002, section 41C.02, 
        subdivision 12, is amended to read: 
           Subd. 12.  [LOW OR MODERATE NET WORTH.] "Low or moderate 
        net worth" means: 
           (1) for an individual, an aggregate net worth of the 
        individual and the individual's spouse and minor children of 
        less than $200,000 in 1991 $350,000 in 2004 and an amount in 
        subsequent years which is adjusted for inflation by 
        multiplying $200,000 that amount by the cumulative inflation 
        rate as determined by the United States All-Items Consumer Price 
        Index; or 
           (2) for a partnership, an aggregate net worth of all 
        partners, including each partner's net capital in the 
        partnership, and each partner's spouse and minor children of 
        less than $400,000 in 1991 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 twice the amount set for an 
        individual in clause (1).  However, the aggregate net worth of 
        each partner and that partner's spouse and minor children may 
        not exceed $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 the amount set for an individual 
        in clause (1). 
           Sec. 24.  [116J.407] [DAIRY MODERNIZATION.] 
           Subdivision 1.  [GENERALLY.] The commissioner shall make 
        funds available to eligible regional or statewide development 
        organizations defined under section 116J.8731 to be used for the 
        purposes of this section. 
           Subd. 2.  [ELIGIBLE EXPENDITURES.] Money may be used for 
        loans for the acquisition, construction, or improvement of 
        buildings or facilities, or the acquisition of equipment, for 
        dairy animal housing, confinement, animal feeding, milk 
        production, and waste management, including the following, if 
        related to dairy animals: 
           (1) freestall barns; 
           (2) fences; 
           (3) watering facilities; 
           (4) feed storage and handling equipment; 
           (5) milking parlors; 
           (6) robotic equipment; 
           (7) scales; 
           (8) milk storage and cooling facilities; 
           (9) bulk tanks; 
           (10) manure pumping and storage facilities; 
           (11) digesters; 
           (12) equipment used to produce energy; 
           (13) capital investment in pasture; and 
           (14) on-farm processing facilities.  
           Subd. 3.  [APPLICATION PROCESS.] The commissioner of 
        agriculture and the commissioner of employment and economic 
        development shall establish a process by which an eligible dairy 
        producer may make application for assistance under this section 
        to the county in which the producer is located.  The application 
        must require the producer and county to provide information 
        regarding the producer's existing business, the intended use of 
        the requested funds, and other information the commissioners 
        find necessary to evaluate the feasibility, likely success, and 
        economic return of the project, and to ensure that money can be 
        provided consistent with other state and federal laws. 
           Sec. 25.  Minnesota Statutes 2002, section 156.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTHORIZED ACTIVITIES.] No provision of this 
        chapter shall be construed to prohibit: 
           (a) a person from rendering necessary gratuitous assistance 
        in the treatment of any animal when the assistance does not 
        amount to prescribing, testing for, or diagnosing, operating, or 
        vaccinating and when the attendance of a licensed veterinarian 
        cannot be procured; 
           (b) a person who is a regular student in an accredited or 
        approved college of veterinary medicine from performing duties 
        or actions assigned by instructors or preceptors or working 
        under the direct supervision of a licensed veterinarian; 
           (c) a veterinarian regularly licensed in another 
        jurisdiction from consulting with a licensed veterinarian in 
        this state; 
           (d) the owner of an animal and the owner's regular employee 
        from caring for and administering to the animal belonging to the 
        owner, except where the ownership of the animal was transferred 
        for purposes of circumventing this chapter; 
           (e) veterinarians who are in compliance with subdivision 6 
        and who are employed by the University of Minnesota from 
        performing their duties with the College of Veterinary Medicine, 
        College of Agriculture, Agricultural Experiment Station, 
        Agricultural Extension Service, Medical School, School of Public 
        Health, or other unit within the university; or a person from 
        lecturing or giving instructions or demonstrations at the 
        university or in connection with a continuing education course 
        or seminar to veterinarians or pathologists at the University of 
        Minnesota Veterinary Diagnostic Laboratory; 
           (f) any person from selling or applying any pesticide, 
        insecticide or herbicide; 
           (g) any person from engaging in bona fide scientific 
        research or investigations which reasonably requires 
        experimentation involving animals; 
           (h) any employee of a licensed veterinarian from performing 
        duties other than diagnosis, prescription or surgical correction 
        under the direction and supervision of the veterinarian, who 
        shall be responsible for the performance of the employee; 
           (i) a graduate of a foreign college of veterinary medicine 
        from working under the direct personal instruction, control, or 
        supervision of a veterinarian faculty member of the College of 
        Veterinary Medicine, University of Minnesota in order to 
        complete the requirements necessary to obtain an ECFVG 
        certificate. 
           Sec. 26.  Minnesota Statutes 2002, section 156.12, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [FACULTY LICENSURE.] (a) Veterinary Medical 
        Center clinicians at the College of Veterinary Medicine, 
        University of Minnesota who are engaged in the practice of 
        veterinary medicine as defined in subdivision 1 and who treat 
        animals owned by clients of the Veterinary Medical Center must 
        possess the same license required by other veterinary 
        practitioners in the state of Minnesota except for persons 
        covered by paragraphs (b) and (c). 
           (b) A specialty practitioner in a hard-to-fill faculty 
        position who has been employed at the College of Veterinary 
        Medicine, University of Minnesota for five years or more prior 
        to 2003 or is specialty board certified by the American 
        Veterinary Medical Association may be granted a specialty 
        faculty Veterinary Medical Center clinician license which will 
        allow the licensee to practice veterinary medicine in the state 
        of Minnesota in the specialty area of the licensee's training 
        and only within the scope of employment at the Veterinary 
        Medical Center. 
           (c) A specialty practitioner in a hard-to-fill faculty 
        position at the College of Veterinary Medicine, University of 
        Minnesota who has graduated from a board-approved foreign 
        veterinary school may be granted a temporary faculty Veterinary 
        Medical Center clinician license.  The temporary faculty 
        Veterinary Medical Center clinician license expires in two years 
        and allows the licensee to practice veterinary medicine as 
        defined in subdivision 1 and treat animals owned by clients of 
        the Veterinary Medical Center.  The temporary faculty Veterinary 
        Medical Center clinician license allows the licensee to practice 
        veterinary medicine in the state of Minnesota in the specialty 
        area of the licensee's training and only within the scope of 
        employment at the Veterinary Medical Center.  The holder of a 
        temporary faculty Veterinary Medical Center clinician license 
        who is enrolled in a PhD program may apply for two two-year 
        extensions of an expiring temporary faculty Veterinary Medical 
        Center clinician license.  Any other holder of a temporary 
        faculty Veterinary Medical Center clinician license may apply 
        for one two-year extension of the expiring temporary faculty 
        Veterinary Medical Center clinician license.  Temporary faculty 
        Veterinary Medical Center clinician licenses that are allowed to 
        expire may not be renewed.  The board shall grant an extension 
        to a licensee who demonstrates suitable progress toward 
        completing the requirements of their academic program, specialty 
        board certification, or full licensure in Minnesota by a 
        graduate of a foreign veterinary college. 
           (d) Temporary and specialty faculty Veterinary Medical 
        Center clinician licensees must abide by all the laws governing 
        the practice of veterinary medicine in the state of Minnesota 
        and are subject to the same disciplinary action as any other 
        veterinarian licensed in the state of Minnesota. 
           (e) The fee for a license issued under this subdivision is 
        the same as for a regular license to practice veterinary 
        medicine in Minnesota.  License payment deadlines, late payment 
        fees, and other license requirements are also the same as for 
        regular licenses. 
           Sec. 27.  Minnesota Statutes 2002, section 223.16, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [ELECTRONIC DOCUMENT.] "Electronic document" 
        means a document that is generated, sent, received, or stored by 
        electronic, optical, or similar means, including electronic data 
        interchange, electronic mail, telegram, telex, or telecopy.  
        "Electronic document" includes, but is not limited to, grain 
        purchase contracts and voluntary extension of credit contracts. 
           Sec. 28.  Minnesota Statutes 2002, section 223.16, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [ELECTRONIC SIGNATURE.] "Electronic signature" 
        means an electronic sound, symbol, or process attached to or 
        logically associated with a record and executed or adopted by a 
        person with the intent to sign the record. 
           Sec. 29.  Minnesota Statutes 2003 Supplement, section 
        223.17, subdivision 4, is amended to read: 
           Subd. 4.  [BOND.] Before a grain buyer's license is issued, 
        the applicant for the license must file with the commissioner a 
        bond in a penal sum prescribed by the commissioner but not less 
        than the following amounts:  
           (a) $10,000 for grain buyers whose gross annual purchases 
        are $100,000 or less; 
           (b) $20,000 for grain buyers whose gross annual purchases 
        are more than $100,000 but not more than $750,000; 
           (c) $30,000 for grain buyers whose gross annual purchases 
        are more than $750,000 but not more than $1,500,000; 
           (d) $40,000 for grain buyers whose gross annual purchases 
        are more than $1,500,000 but not more than $3,000,000; and 
           (e) $50,000 for grain buyers whose gross annual purchases 
        exceed are more than $3,000,000 but not more than $6,000,000; 
           (f) $70,000 for grain buyers whose gross annual purchases 
        are more than $6,000,000 but not more than $12,000,000; 
           (g) $125,000 for grain buyers whose gross annual purchases 
        are more than $12,000,000 but not more than $24,000,000; and 
           (h) $150,000 for grain buyers whose gross annual purchases 
        exceed $24,000,000.  
           A grain buyer who has filed a bond with the commissioner 
        prior to July 1, 1983 2004, is not required to increase the 
        amount of the bond to comply with this section until July 1, 
        1984 2005.  The commissioner may postpone an increase in the 
        amount of the bond until July 1, 1985 2006, if a licensee 
        demonstrates that the increase will impose undue financial 
        hardship on the licensee, and that producers will not be harmed 
        as a result of the postponement.  The commissioner may impose 
        other restrictions on a licensee whose bond increase has been 
        postponed.  The amount of the bond shall be based on the most 
        recent financial statement of the grain buyer filed under 
        subdivision 6.  
           A first-time applicant for a grain buyer's license after 
        July 1, 1983 shall file a $20,000 $50,000 bond with the 
        commissioner. This bond shall remain in effect for the first 
        year of the license.  Thereafter, the licensee shall comply with 
        the applicable bonding requirements contained in clauses (a) 
        to (e) (h). 
           In lieu of the bond required by this subdivision the 
        applicant may deposit with the commissioner of finance cash, a 
        certified check, a cashier's check, a postal, bank, or express 
        money order, assignable bonds or notes of the United States, or 
        an assignment of a bank savings account or investment 
        certificate or an irrevocable bank letter of credit as defined 
        in section 336.5-102, in the same amount as would be required 
        for a bond. 
           Sec. 30.  Minnesota Statutes 2002, section 223.17, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FINANCIAL STATEMENTS.] For the purpose of fixing 
        or changing the amount of a required bond or for any other 
        proper reason, the commissioner shall require an annual 
        financial statement from a licensee which has been prepared in 
        accordance with generally accepted accounting principles and 
        which meets the following requirements:  
           (a) The financial statement shall include, but not be 
        limited to the following:  (1) a balance sheet; (2) a statement 
        of income (profit and loss); (3) a statement of retained 
        earnings; (4) a statement of changes in financial position; and 
        (5) a statement of the dollar amount of grain purchased in the 
        previous fiscal year of the grain buyer.  
           (b) The financial statement shall be accompanied by a 
        compilation report of the financial statement which is reviewed 
        financial statement or audit prepared by a grain commission firm 
        or a management firm approved by the commissioner or by an 
        independent public accountant or a compilation report prepared 
        by a grain commission firm approved by the commissioner, in 
        accordance with standards established by the American Institute 
        of Certified Public Accountants.  
           (c) The financial statement shall be accompanied by a 
        certification by the chief executive officer or the chief 
        executive officer's designee of the licensee, under penalty of 
        perjury, that the financial statement accurately reflects the 
        financial condition of the licensee for the period specified in 
        the statement. 
           Only one financial statement must be filed for a chain of 
        warehouses owned or operated as a single business entity, unless 
        otherwise required by the commissioner.  Any grain buyer having 
        a net worth in excess of $500,000,000 need not file the 
        financial statement required by this subdivision but must 
        provide the commissioner with a certified net worth statement. 
        All financial statements filed with the commissioner are private 
        or nonpublic data as provided in section 13.02. 
           Sec. 31.  Minnesota Statutes 2002, section 223.177, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTRACTS REDUCED TO WRITING.] A voluntary 
        extension of credit contract must be reduced to writing by the 
        grain buyer and mailed or given to the seller before the close 
        of the next business day after the contract is entered into or, 
        in the case of an oral or phone contract, after the written 
        confirmation is received by the seller.  Provided, however, that 
        if a scale ticket has been received by the seller prior to the 
        completion of the grain shipment, the contract must be reduced 
        to writing within ten days after the sale, but not later than 
        the close of the next business day after the completion of the 
        entire sale.  The form of the contract shall comply with the 
        requirements of section 223.175.  A grain buyer may use an 
        electronic version of a voluntary extension of credit contract 
        that contains the same information as a written document and 
        that conforms to the requirements of this chapter to which a 
        seller has applied an electronic signature in place of a written 
        document.  There must not at any time be an electronic and paper 
        voluntary extension of credit contract representing the same lot 
        of grain. 
           Sec. 32.  Minnesota Statutes 2002, section 232.21, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [ELECTRONIC DOCUMENT.] "Electronic document" 
        means a document that is generated, sent, received or stored by 
        electronic, optical, or similar means, including electronic data 
        interchange, electronic mail, telegram, telex, or telecopy.  
        "Electronic document" includes, but is not limited to, warehouse 
        receipts, grain purchase contracts, and voluntary extension of 
        credit contracts. 
           Sec. 33.  Minnesota Statutes 2002, section 232.21, is 
        amended by adding a subdivision to read: 
           Subd. 6b.  [ELECTRONIC GRAIN WAREHOUSE 
        RECEIPT.] "Electronic grain warehouse receipt" means an 
        electronic version of a grain warehouse receipt issued or 
        transmitted to a depositor by a grain warehouse operator under 
        the provisions of section 232.23 in the form of an electronic 
        document.  An electronic grain warehouse receipt is a negotiable 
        instrument except as provided in section 232.23, subdivision 11. 
           Sec. 34.  Minnesota Statutes 2002, section 232.21, is 
        amended by adding a subdivision to read: 
           Subd. 6c.  [ELECTRONIC SIGNATURE.] "Electronic signature" 
        means an electronic sound, symbol, or process attached to or 
        logically associated with a record and executed or adopted by a 
        person with the intent to sign the record. 
           Sec. 35.  Minnesota Statutes 2002, section 232.23, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FORM OF GRAIN WAREHOUSE RECEIPT.] (a) A grain 
        warehouse receipt must be in duplicate, contain the name and 
        location of the grain warehouse, and be delivered to the 
        depositor or the depositor's agent.  Grain warehouse receipts 
        shall be consecutively numbered as prescribed by the 
        commissioner and state the date of deposit, except where the 
        deposit of a certain lot for storage is not completed in one 
        day.  In that case, the grain warehouse receipt, when issued, 
        shall be dated not later than Saturday of the week of delivery.  
           (b) A grain warehouse receipt shall contain either on its 
        face or reverse side the following specific grain warehouse and 
        storage contract:  "This grain is received, insured and stored 
        through the date of expiration of the annual licenses of this 
        grain warehouse and terms expressed in the body of this grain 
        warehouse receipt shall constitute due notice to its holder of 
        the expiration of the storage period.  It is unlawful for a 
        public grain warehouse operator to charge or collect a greater 
        or lesser amount than the amount filed with the commissioner.  
        All charges shall be collected by the grain warehouse operator 
        upon the owner's presentation of the grain warehouse receipt for 
        the sale or delivery of the grain represented by the receipt, or 
        the termination of the storage period.  Upon the presentation of 
        this grain warehouse receipt and payment of all charges accrued 
        up to the time of presentation, the above amount, kind and grade 
        of grain will be delivered within the time prescribed by law to 
        the depositor or the depositor's order."  
           (c) A grain warehouse receipt shall also have printed on it 
        the following:  
                             "Redemption of Receipt 
           Received from .............., the sum of $........ or 
        ........  bushels in full satisfaction of the obligation 
        represented by this grain warehouse receipt.  
           Gross price per bushel $.......  
           Storage per bushel $.......  
           Net price per bushel $.......  
           All blank spaces in this grain warehouse receipt were 
        filled in before I signed it and I certify that I am the owner 
        of the commodity for which this grain warehouse receipt was 
        issued and that there are no liens, chattel mortgages or other 
        claims against the commodity represented by this grain warehouse 
        receipt.  
                                       Signed ............ 
        Accepted ..................    Dated  ............
                Warehouse operator
           This redemption shall be signed by the depositor or the 
        depositor's agent in the event that the grain represented is 
        redelivered or purchased by the public grain warehouse 
        operator.  Signature of this redemption by the depositor 
        constitutes a valid cancellation of the obligation embraced in 
        the storage contract."  
           (d) A warehouse receipt for dry edible beans must state the 
        grade of the dry edible beans delivered to the grain warehouse 
        and the redelivery charge required under subdivision 10a, 
        paragraph (a).  
           (e) An electronic version of a grain warehouse receipt 
        generated by a vendor licensed and approved by the United States 
        Department of Agriculture that contains the same information as 
        the paper version of a grain warehouse receipt may be issued 
        instead of a paper document.  The electronic version of a grain 
        warehouse receipt carries the same rights and obligations as the 
        paper version.  At no time may a paper receipt and an electronic 
        receipt represent the same lot of grain.  Redemption of an 
        electronic version of a warehouse receipt may be accomplished by 
        the warehouse receipt holder applying an electronic signature 
        registered and authenticated by a vendor credited by the United 
        States Department of Agriculture. 
           Sec. 36.  Minnesota Statutes 2002, section 308A.995, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REINSTATEMENT.] A cooperative may, within one 
        year of the date of dissolution under this section, 
        retroactively reinstate its existence by filing a single annual 
        registration and paying a $25 fee.  Filing the annual 
        registration with the secretary of state: 
           (1) returns the cooperative to active status as of the date 
        of the dissolution; 
           (2) validates contracts or other acts within the authority 
        of the articles, and the cooperative is liable for those 
        contracts or acts; and 
           (3) restores to the cooperative all assets and rights of 
        the cooperative and its shareholders or members to the extent 
        they were held by the cooperative and its shareholders or 
        members before the dissolution occurred, except to the extent 
        that assets or rights were affected by acts occurring after the 
        dissolution or sold or otherwise distributed after that time. 
           Sec. 37.  Minnesota Statutes 2003 Supplement, section 
        308B.121, subdivision 5, is amended to read: 
           Subd. 5.  [REINSTATEMENT.] A cooperative may, within one 
        year of the date of dissolution under this section, 
        retroactively reinstate its existence by filing a single annual 
        registration and paying a $25 fee.  Filing the annual 
        registration with the secretary of state: 
           (1) returns the cooperative to active status as of the date 
        of the dissolution; 
           (2) validates contracts or other acts within the authority 
        of the articles and the cooperative is liable for those 
        contracts or acts; and 
           (3) restores to the cooperative all assets and rights of 
        the cooperative and its shareholders or members to the extent 
        they were held by the cooperative and its shareholders or 
        members before the dissolution occurred, except to the extent 
        that assets or rights were affected by acts occurring after the 
        dissolution or sold or otherwise distributed after that time. 
           Sec. 38.  Minnesota Statutes 2002, section 500.221, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, "agricultural land" means land capable of use in the 
        production of agricultural crops, livestock or livestock 
        products, poultry or poultry products, milk or dairy products, 
        or fruit and other horticultural products but does not include 
        any land zoned by a local governmental unit for a use other than 
        and nonconforming with agricultural use.  For the purposes of 
        this section, "interest in agricultural land" includes any 
        leasehold interest.  For the purposes of this section, a 
        "permanent resident alien of the United States" is a natural 
        person who: 
           (1) has been lawfully admitted to the United States for 
        permanent residence and in fact maintains; or 
           (2) is a holder of a nonimmigrant treaty investment visa 
        pursuant to United States Code, title 8, section 
        1101(a)15(E)(ii). 
           A person who qualifies as a permanent resident alien of the 
        United States under clause (1) must also maintain that person's 
        principal, actual dwelling place within the United States for at 
        least six months out of every consecutive 12-month period 
        without regard to intent.  A person who qualifies as a permanent 
        resident alien of the United States under clause (2) must also 
        maintain that person's principal actual dwelling place in 
        Minnesota for at least ten months out of every 12-month period, 
        and is limited to dairy farming and up to 1,500 acres of 
        agricultural land.  The eligibility of a person under clause (2) 
        is limited to three years, unless the commissioner waives the 
        three-year limitation upon finding that the person is actively 
        pursuing the status under clause (1) or United States 
        citizenship.  For the purposes of this section, "commissioner" 
        means the commissioner of agriculture.  
           Sec. 39.  Minnesota Statutes 2002, section 500.221, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [DETERMINATION OF ALIEN STATUS.] An alien who 
        qualifies under subdivision 1, clause (1), and has been 
        physically absent from the United States for more than six 
        months out of any 12-month period shall be presumed not to be a 
        permanent resident alien.  An alien who qualifies under 
        subdivision 1, clause (2), and has been physically absent from 
        Minnesota for more than two months out of any 12-month period 
        shall be presumed not to be a permanent resident alien.  Every 
        permanent resident alien of the United States who owns purchases 
        property subject to this section shall must: 
           (1) file a report with the commissioner within 30 days of 
        the date of purchase; and 
           (2) annually, at some time during the month of January, 
        file with the commissioner a statement setting forth the dates 
        and places of that person's residence in the United States 
        during the prior calendar year. 
           The statement shall required under clause (2) must include 
        an explanation of absences totaling more than six two months 
        during the prior calendar year and any facts which support the 
        continuation of permanent resident alien status.  Upon receipt 
        of the statement, the commissioner shall have 30 days to review 
        the statement and notify the resident alien whether the facts 
        support continuation of the permanent resident alien status.  
           Sec. 40.  Minnesota Statutes 2002, section 500.221, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PENALTY.] Willful failure to properly file a 
        report required under subdivision 1a or to properly register any 
        parcel of land as required by subdivision 4 is a gross 
        misdemeanor.  Each full month of failure to register is a 
        separate offense. 
           Sec. 41.  Minnesota Statutes 2002, 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 stock is held by and the 
        majority of the stockholders are persons, 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 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: 
           (1) transfer of shares of 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 the 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 the trust 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, a family farm trust, an authorized farm limited 
        liability company, a family farm partnership, or an authorized 
        farm partnership; or 
           (2) a charitable remainder trust as defined in the Internal 
        Revenue Code, section 664, as amended, and the regulations under 
        that section, and a charitable lead trust as set forth in the 
        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 or a family farm trust; 
           (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. 
           (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, family farm trusts, 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. 
           (g) "Agricultural land" means real estate used for farming 
        or capable of being used for farming in this state. 
           (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.  
           (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. 
           (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 
        natural persons, 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, and at least one of the related 
        persons is residing on 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 
        is a corporation.  A family farm partnership does not cease to 
        qualify as a family farm partnership because of a: 
           (1) transfer of a partnership 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 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. 
           (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 or family farm trusts; 
           (4) its revenue from rent, royalties, dividends, interest, 
        and annuities 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 is held by and the majority of the 
        members are natural persons or the spouses of persons, or 
        current beneficiaries of one or more family farm trusts in which 
        the trustee holds stock an interest 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, and at least 
        one of the related persons is residing on 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 liability company, and none of the 
        members are corporations is a corporation or a limited liability 
        companies company.  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 or family farm trusts; 
           (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. 
           (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. 
           (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. 
           (p) "Research or experimental farm" means a corporation, 
        limited partnership, pension, 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. 
           (q) "Breeding stock farm" means a corporation, 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.  
           (r) "Aquatic farm" means a corporation, 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.  
           (s) "Religious farm" means a corporation formed primarily 
        for religious purposes whose sole income is derived from 
        agriculture.  
           (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, a family farm trust, a family farm 
        partnership, or a family farm limited liability company.  
           (u) "Development organization" means a corporation, limited 
        partnership, limited liability company, or pension or investment 
        fund that 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, 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.  
           (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, 
        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 Laws 2000, chapter 477, 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; May 
        1, 1988, for a limited partnership, or the effective date of 
        Laws 2000, chapter 477, 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 Laws 2000, 
        chapter 477, may continue to own or lease agricultural land 
        subject to the same conditions and limitations as previously 
        allowed.  
           (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.  
           (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, 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, a family farm trust, an authorized farm 
        corporation, an authorized livestock farm corporation, a family 
        farm partnership, 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, 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 earlier.  
           (y) "Commissioner" means the commissioner of agriculture.  
           (z) "Nonprofit corporation" means a nonprofit corporation 
        organized under state nonprofit corporation or trust law 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, a family farm trust, 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. 42.  Minnesota Statutes 2002, section 500.24, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [LEASE AGREEMENT; CONSERVATION PRACTICE 
        PROTECTION CLAUSE.] A corporation, pension or investment fund, 
        limited partnership, or limited liability company other than 
        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, a family farm 
        trust, an authorized farm corporation, an authorized livestock 
        farm corporation, a family farm partnership, an authorized farm 
        partnership, a family farm limited liability company, or an 
        authorized farm limited liability company, under provisions of 
        subdivision 2, paragraph (x), must include within the lease 
        agreement a provision prohibiting intentional damage or 
        destruction to a conservation practice on the agricultural land. 
           Sec. 43.  Minnesota Statutes 2002, section 561.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the following terms have the meanings given them:  
           (a) "Agricultural operation" means a facility and its 
        appurtenances for the production of crops, livestock, poultry, 
        dairy products or poultry products, but not a facility primarily 
        engaged in processing agricultural products.  
           (b) "Established date of operation" means the date on which 
        the agricultural operation commenced.  If the agricultural 
        operation is subsequently expanded or significantly altered, the 
        established date of operation for each expansion or alteration 
        is deemed to be the date of commencement of the expanded or 
        altered operation.  As used in this paragraph, "expanded" means 
        an expansion by at least 25 percent in the number of a 
        particular kind of animal or livestock located on an 
        agricultural operation. 
           "Significantly altered" does not mean: 
           (1) a transfer of an ownership interest to and held by 
        persons or the spouses of persons related to each other within 
        the third degree of kindred according to the rules of civil law 
        to the person making the transfer so long as at least one of the 
        related persons is actively operating the farm, or to a family 
        farm trust under section 500.24; 
           (2) temporary cessation or interruption of cropping 
        activities; 
           (3) adoption of new technologies; or 
           (4) a change in the crop product produced. 
           (c) "Generally accepted agricultural practices" means those 
        practices commonly used by other farmers in the county or a 
        contiguous county in which a nuisance claim is asserted. 
           [EFFECTIVE DATE.] This section is effective for actions 
        commenced on or after August 1, 2004. 
           Sec. 44.  Minnesota Statutes 2002, section 561.19, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AGRICULTURAL OPERATION NOT A NUISANCE.] (a) An 
        agricultural operation is not and shall not become a private or 
        public nuisance after two years from its established date of 
        operation if the operation was not a nuisance at its established 
        date of as a matter of law if the operation: 
           (1) is located in an agriculturally zoned area; 
           (2) complies with the provisions of all applicable federal, 
        state, or county laws, regulations, rules, and ordinances and 
        any permits issued for the agricultural operation; and 
           (3) operates according to generally accepted agricultural 
        practices.  
           (b) An agricultural operation is operating according to 
        generally accepted agricultural practices if it is located in an 
        agriculturally zoned area and complies with the provisions of 
        all applicable federal and state statutes and rules or any 
        issued permits for the operation. 
           (c) For a period of two years from its established date of 
        operation, there is a rebuttable presumption that an 
        agricultural operation in compliance with the requirements of 
        paragraph (a), clauses (1) to (3), is not a public or private 
        nuisance. 
           (c) The provisions of this subdivision do not apply:  
           (1) to a condition or injury which results from the 
        negligent or improper operation of an agricultural operation or 
        from operations contrary to commonly accepted agricultural 
        practices or to applicable state or local laws, ordinances, 
        rules, or permits; 
           (2) when an agricultural operation causes injury or direct 
        threat of injury to the health or safety of any person; 
           (3) to the pollution of, or change in the condition of, the 
        waters of the state or the overflow of waters on the lands of 
        any person; 
           (4) to an animal feedlot facility with a swine capacity of 
        1,000 or more animal units as defined in the rules of the 
        Pollution Control Agency for control of pollution from animal 
        feedlots, or a cattle capacity of 2,500 animals or more; or 
           (5) (2) to any prosecution for the crime of public nuisance 
        as provided in section 609.74 or to an action by a public 
        authority to abate a particular condition which is a public 
        nuisance; or 
           (3) to any enforcement action brought by a local unit of 
        government related to zoning under chapter 394 or 462. 
           [EFFECTIVE DATE.] This section is effective for actions 
        commenced on or after August 1, 2004. 
           Sec. 45.  [609.599] [EXPOSING DOMESTIC ANIMALS TO DISEASE.] 
           Subdivision 1.  [GROSS MISDEMEANOR.] (a) A person who 
        intentionally exposes a domestic animal to an animal disease 
        contrary to reasonable veterinary practice, or intentionally 
        puts a domestic animal at risk of quarantine or destruction by 
        actions contrary to reasonable veterinary practice, is guilty of 
        a gross misdemeanor. 
           (b) The provisions of paragraph (a) do not apply to a 
        person performing academic or industry research on domestic 
        animals under protocols approved by an institutional animal care 
        and use committee. 
           Subd. 2.  [CIVIL LIABILITY.] A person who violates 
        subdivision 1 is liable in a civil action for damages in an 
        amount three times the value of any domestic animal destroyed 
        because it has the disease, has been exposed to the disease 
        agent, or is at high risk of being exposed to the disease agent 
        because of proximity to diseased animals.  
           Subd. 3.  [DEFINITION.] For purposes of this section, 
        "domestic animal" means: 
           (1) those species of animals that live under the husbandry 
        of humans; 
           (2) livestock within the meaning of section 35.01, 
        subdivision 3; 
           (3) a farm-raised deer, farm-raised game bird, or 
        farm-raised fish; or 
           (4) an animal listed as a domestic animal by a rule adopted 
        by the Department of Agriculture. 
           Sec. 46.  Minnesota Statutes 2002, section 609.605, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [CERTAIN TRESPASS ON AGRICULTURAL LAND.] (a) A 
        person is guilty of a gross misdemeanor if the person enters the 
        posted premises of another on which cattle, bison, sheep, goats, 
        swine, horses, poultry, farmed cervidae, farmed ratitae, 
        aquaculture stock, or other species of domestic animals for 
        commercial production are kept, without the consent of the owner 
        or lawful occupant of the land. 
           (b) "Domestic animal," for purposes of this section, has 
        the meaning given in section 609.599. 
           (c) "Posted," as used in paragraph (a), means the placement 
        of a sign at least 11 inches square in a conspicuous place at 
        each roadway entry to the premises.  The sign must provide 
        notice of a bio-security area and wording such as:  
        "Bio-security measures are in force.  No entrance beyond this 
        point without authorization."  The sign may also contain a 
        telephone number or a location for obtaining such authorization. 
           (d) The provisions of this subdivision do not apply to 
        employees or agents of the state or county when serving in a 
        regulatory capacity and conducting an inspection on posted 
        premises where domestic animals are kept. 
           Sec. 47.  [DAIRY PRODUCER PAYMENT REPORT.] 
           By January 15, 2005, the commissioner shall report to the 
        senate and house policy and finance committees with jurisdiction 
        over agriculture on a value-added agriculture program to pay 
        beginning dairy farmers based on the amount of milk production.  
        The report shall include suggested language to create the 
        program. 
           Sec. 48.  [DELAYED PAYMENTS IN 2003.] 
           Not later than 60 days after the effective date of section 
        11, the commissioner of agriculture shall pay any producer 
        denied payment for failure to meet the ownership and reporting 
        requirements imposed by Laws 2003, chapter 128, article 3, 
        section 38, the amount to which the producer would have been 
        otherwise entitled. 
           Sec. 49.  [REPEALER.] 
           Minnesota Statutes 2002, sections 38.02, subdivision 2; and 
        38.13, are repealed. 
           Sec. 50.  [EFFECTIVE DATE.] 
           Sections 1, 13, 36, 37, 38, 39, 40, and 48 are effective 
        the day following final enactment.  Section 28 is effective July 
        1, 2004. 
           Presented to the governor May 18, 2004 
           Signed by the governor May 21, 2004, 10:15 a.m.