1.1             CONFERENCE COMMITTEE REPORT ON H.F. NO. 3183 
  1.2                          A bill for an act 
  1.3             relating to agriculture; clarifying and updating 
  1.4             certain terms; changing certain requirements and 
  1.5             procedures; limiting certain fees and payments; 
  1.6             authorizing agreements; prohibiting tampering with 
  1.7             farm tractor clock-hour meters; prescribing civil and 
  1.8             criminal penalties; authorizing the northern counties 
  1.9             land use coordinating board to initiate a land use 
  1.10            management pilot project; amending Minnesota Statutes 
  1.11            2000, sections 17.90, subdivision 1a, by adding a 
  1.12            subdivision; 17B.03, subdivision 1; 18B.315, 
  1.13            subdivision 3; 18B.37, subdivisions 2, 5; 18E.02, by 
  1.14            adding a subdivision; 18E.03, subdivision 4; 18E.04, 
  1.15            subdivision 3; 18E.06; 21.111, by adding a 
  1.16            subdivision; 31.101, as amended; 31.102, subdivision 
  1.17            1; 31.103, subdivision 1; 31.104; 38.331, subdivision 
  1.18            2; 41B.03, subdivisions 1, 3; 223.16, subdivision 5; 
  1.19            Minnesota Statutes 2001 Supplement, sections 17.9442; 
  1.20            18B.36, subdivision 1; 18E.04, subdivisions 2, 4; 
  1.21            41B.046, subdivision 2; Laws 2001, chapter 206, 
  1.22            section 14; proposing coding for new law in Minnesota 
  1.23            Statutes, chapter 325E. 
  1.24                                                  May 2, 2002
  1.25  The Honorable Steve Sviggum 
  1.26  Speaker of the House of Representatives
  1.28  The Honorable Don Samuelson 
  1.29  President of the Senate
  1.31     We, the undersigned conferees for H.F. No. 3183, report 
  1.32  that we have agreed upon the items in dispute and recommend as 
  1.33  follows: 
  1.34     
  1.35     That the Senate recede from its amendments and that H.F. No.
  1.36  3183 be further amended as follows: 
  1.37     Delete everything after the enacting clause and insert: 
  2.1      "Section 1.  Minnesota Statutes 2000, section 17.101, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 6.  [LIVESTOCK DEVELOPMENT.] The commissioner shall 
  2.4   establish a process, including criteria and standards, to 
  2.5   recognize and assist efforts by counties to maintain or expand 
  2.6   their livestock sector. 
  2.7      A county that meets the criteria may apply to the 
  2.8   commissioner to be designated a "livestock friendly" county. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 17.452, 
  2.10  subdivision 6, is amended to read: 
  2.11     Subd. 6.  [RUNNING AT LARGE PROHIBITED.] (a) An owner may 
  2.12  not allow farmed cervidae to run at large.  The owner must make 
  2.13  all reasonable efforts to return escaped farmed cervidae to 
  2.14  their enclosures as soon as possible.  The owner must notify the 
  2.15  commissioner of natural resources of the escape of farmed red 
  2.16  deer cervidae if the farmed red deer cervidae are not returned 
  2.17  or captured by the owner within 72 24 hours of their escape. 
  2.18     (b) An owner is liable for expenses of another person in 
  2.19  capturing, caring for, and returning farmed cervidae that have 
  2.20  left their enclosures if the person capturing the farmed 
  2.21  cervidae contacts the owner as soon as possible. 
  2.22     (c) If an owner is unwilling or unable to capture escaped 
  2.23  farmed cervidae, the commissioner of natural resources may 
  2.24  destroy the escaped farmed cervidae under this paragraph if the 
  2.25  escaped farmed cervidae are a threat to the health or population 
  2.26  of native species.  The commissioner must allow the owner to 
  2.27  attempt to capture the escaped farmed cervidae prior to 
  2.28  destroying the farmed cervidae.  Farmed cervidae that are not 
  2.29  captured by 14 days 24 hours after escape may be destroyed. 
  2.30     (d) The owner must notify the commissioner of natural 
  2.31  resources of the escape of farmed cervidae from a quarantined 
  2.32  herd if the farmed cervidae are not returned to or captured by 
  2.33  the owner within 72 hours of their escape.  The escaped farmed 
  2.34  cervidae from the quarantined herd may be destroyed by the 
  2.35  commissioner of natural resources if the escaped farmed cervidae 
  2.36  are a threat to the health or population of native species. 
  3.1      Sec. 3.  Minnesota Statutes 2000, section 17.452, is 
  3.2   amended by adding a subdivision to read: 
  3.3      Subd. 6a.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An 
  3.4   owner, or employee or agent under the direction of the owner, 
  3.5   must destroy wild cervidae found within the owner's farmed 
  3.6   cervidae confinement area.  The owner, employee, or agent must 
  3.7   report the wild cervidae destroyed to a conservation officer or 
  3.8   an employee of the department of natural resources, division of 
  3.9   wildlife, within 24 hours.  The wild cervidae must be disposed 
  3.10  of as prescribed by the commissioner of natural resources. 
  3.11     Sec. 4.  Minnesota Statutes 2000, section 17.90, 
  3.12  subdivision 1a, is amended to read: 
  3.13     Subd. 1a.  [AGRICULTURAL CONTRACT.] "Agricultural contract" 
  3.14  means any written contract between a contractor and a producer, 
  3.15  but does not include a contract between a grain buyer licensed 
  3.16  under section 223.17, subdivision 1, who purchases grain from a 
  3.17  producer as a merchant or seller of grain and does not contract 
  3.18  with the producer to grow or raise the crops producing the grain.
  3.19     Sec. 5.  Minnesota Statutes 2000, section 17.90, is amended 
  3.20  by adding a subdivision to read: 
  3.21     Subd. 3b.  [GRAIN.] "Grain" has the meaning given in 
  3.22  section 223.16, subdivision 4. 
  3.23     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  3.24  17.9442, is amended to read: 
  3.25     17.9442 [APPLICABILITY OF CONTRACT REQUIREMENTS.] 
  3.26     The requirements for the written disclosure of material 
  3.27  risks under section 17.91, subdivision 2; the three-day review 
  3.28  period under section 17.941; the cover sheet requirement under 
  3.29  section 17.942; and the contract readability requirements under 
  3.30  section 17.943, subdivision 1, do not apply to contracts which 
  3.31  provide for: 
  3.32     (1) the sale and purchase of a fixed amount of a commodity 
  3.33  for delivery at a set price; 
  3.34     (2) price-later cash sale and forward delivery grain 
  3.35  contracts for grain meeting certain specifications and does not 
  3.36  prescribe the time, manner, and nature of planting, cultivating, 
  4.1   and harvesting the crop producing the grain, including fixed 
  4.2   price forward contracts, minimum price contracts, mini-max 
  4.3   contracts, basis contracts, hedge-to-arrive contracts, and 
  4.4   delayed price contracts; 
  4.5      (3) contracts agreed to between a processor and an 
  4.6   accredited bargaining organization under sections 17.691 to 
  4.7   17.702; 
  4.8      (4) future futures contracts which involve the sale or 
  4.9   purchase of a standardized quantity of a commodity for future 
  4.10  delivery on a regulated commodity exchange; 
  4.11     (5) agricultural marketing contracts between a capital 
  4.12  stock cooperative and its members under section 308A.205; or 
  4.13     (6) occasional sales between persons who produce or cause 
  4.14  to be produced food, feed, or fiber in a quantity beyond their 
  4.15  own family use. 
  4.16     Sec. 7.  Minnesota Statutes 2000, section 17B.03, 
  4.17  subdivision 1, is amended to read: 
  4.18     Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
  4.19  of agriculture shall exercise general supervision over the 
  4.20  inspection, grading, weighing, sampling, and analysis of 
  4.21  grain within the state of Minnesota subject to the provisions of 
  4.22  the United States Grain Standards Act of 1976 and the rules 
  4.23  promulgated thereunder by the United States Department of 
  4.24  Agriculture.  This activity may take place within or outside the 
  4.25  state of Minnesota. 
  4.26     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  4.27  18B.36, subdivision 1, is amended to read: 
  4.28     Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
  4.29  commercial or noncommercial applicator, only a certified private 
  4.30  applicator may use a restricted use pesticide to produce an 
  4.31  agricultural commodity: 
  4.32     (1) as a traditional exchange of services without financial 
  4.33  compensation; 
  4.34     (2) on a site owned, rented, or managed by the person or 
  4.35  the person's employees; or 
  4.36     (3) when the private applicator is one of two or fewer 
  5.1   specified individuals employed as agricultural employment as 
  5.2   defined by section 268.035, subdivision 2, employees and the 
  5.3   owner or operator is a certified private applicator or is 
  5.4   licensed as a noncommercial applicator. 
  5.5      (b) A private applicator may not purchase a restricted use 
  5.6   pesticide without presenting a certified private applicator card 
  5.7   or the card number. 
  5.8      Sec. 9.  [18D.302] [FALSE STATEMENT OR RECORD.] 
  5.9      A person must not knowingly make or offer a false 
  5.10  statement, record, or other information as part of: 
  5.11     (1) an application for registration, license, 
  5.12  certification, permit, or land application of contaminated soil 
  5.13  or other media under this chapter or chapter 18B, 18C, or 18F or 
  5.14  rules adopted under one of those chapters; 
  5.15     (2) records or reports required under this chapter or 
  5.16  chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
  5.17  those chapters; or 
  5.18     (3) an investigation of a violation of this chapter or 
  5.19  chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
  5.20  those chapters. 
  5.21     Sec. 10.  Minnesota Statutes 2000, section 18E.02, is 
  5.22  amended by adding a subdivision to read: 
  5.23     Subd. 5a.  [EMERGENCY INCIDENT.] "Emergency incident" means 
  5.24  an incident resulting from a flood, fire, tornado, 
  5.25  transportation accident, storage container rupture, or other 
  5.26  event as determined by the commissioner that immediately, 
  5.27  uncontrollably, and unpredictably releases agricultural 
  5.28  chemicals into the environment and that may cause unreasonable 
  5.29  adverse effects on the public health or the environment. 
  5.30     Sec. 11.  Minnesota Statutes 2000, section 18E.02, is 
  5.31  amended by adding a subdivision to read: 
  5.32     Subd. 5b.  [RECONTAMINATION.] "Recontamination" means an 
  5.33  agricultural chemical incident that occurs in a specific land 
  5.34  area where corrective actions were taken to address a previous 
  5.35  incident.  Recontamination does not include an emergency 
  5.36  incident. 
  6.1      Sec. 12.  Minnesota Statutes 2000, section 18E.03, 
  6.2   subdivision 4, is amended to read: 
  6.3      Subd. 4.  [FEE.] (a) The response and reimbursement fee 
  6.4   consists of the surcharges and any adjustments made by the 
  6.5   commissioner in this subdivision and shall be collected by the 
  6.6   commissioner.  The amount of the response and reimbursement fee 
  6.7   shall be determined and imposed annually by the commissioner as 
  6.8   required to satisfy the requirements in subdivision 3.  The 
  6.9   commissioner shall adjust the amount of the surcharges imposed 
  6.10  in proportion to the amount of the surcharges listed in this 
  6.11  subdivision.  License application categories under paragraph (d) 
  6.12  must be charged in proportion to the amount of surcharges 
  6.13  imposed up to a maximum of 50 percent of the license fees set 
  6.14  under chapters 18B and 18C. 
  6.15     (b) The commissioner shall impose a surcharge on pesticides 
  6.16  registered under chapter 18B to be collected as a surcharge on 
  6.17  the registration application fee under section 18B.26, 
  6.18  subdivision 3, that is equal to 0.1 percent of sales of the 
  6.19  pesticide in the state and sales of pesticides for use in the 
  6.20  state during the previous calendar year, except the surcharge 
  6.21  may not be imposed on pesticides that are sanitizers or 
  6.22  disinfectants as determined by the commissioner.  No surcharge 
  6.23  is required if the surcharge amount based on percent of annual 
  6.24  gross sales is less than $10.  The registrant shall determine 
  6.25  when and which pesticides are sold or used in this state.  The 
  6.26  registrant shall secure sufficient sales information of 
  6.27  pesticides distributed into this state from distributors and 
  6.28  dealers, regardless of distributor location, to make a 
  6.29  determination.  Sales of pesticides in this state and sales of 
  6.30  pesticides for use in this state by out-of-state distributors 
  6.31  are not exempt and must be included in the registrant's annual 
  6.32  report, as required under section 18B.26, subdivision 3, 
  6.33  paragraph (c), and fees shall be paid by the registrant based 
  6.34  upon those reported sales.  Sales of pesticides in the state for 
  6.35  use outside of the state are exempt from the surcharge in this 
  6.36  paragraph if the registrant properly documents the sale location 
  7.1   and the distributors. 
  7.2      (c) The commissioner shall impose a ten cents per ton 
  7.3   surcharge on the inspection fee under section 18C.425, 
  7.4   subdivision 6, for fertilizers, soil amendments, and plant 
  7.5   amendments.  
  7.6      (d) The commissioner shall impose a surcharge on the 
  7.7   license application of persons licensed under chapters 18B and 
  7.8   18C consisting of: 
  7.9      (1) a $75 surcharge for each site where pesticides are 
  7.10  stored or distributed, to be imposed as a surcharge on pesticide 
  7.11  dealer application fees under section 18B.31, subdivision 5; 
  7.12     (2) a $75 surcharge for each site where a fertilizer, plant 
  7.13  amendment, or soil amendment is distributed, to be imposed on 
  7.14  persons licensed under sections 18C.415 and 18C.425; 
  7.15     (3) a $50 surcharge to be imposed on a structural pest 
  7.16  control applicator license application under section 18B.32, 
  7.17  subdivision 6, for business license applications only; 
  7.18     (4) a $20 surcharge to be imposed on commercial applicator 
  7.19  license application fees under section 18B.33, subdivision 7; 
  7.20     (5) a $20 surcharge to be imposed on noncommercial 
  7.21  applicator license application fees under section 18B.34, 
  7.22  subdivision 5, except a surcharge may not be imposed on a 
  7.23  noncommercial applicator that is a state agency, political 
  7.24  subdivision of the state, the federal government, or an agency 
  7.25  of the federal government; and 
  7.26     (6) a $20 surcharge to be imposed on aquatic pest control 
  7.27  licenses under section 18B.315. 
  7.28     (e) A $1,000 fee shall be imposed on each site where 
  7.29  pesticides are stored and sold for use outside of the state 
  7.30  unless:  
  7.31     (1) the distributor properly documents that it has less 
  7.32  than $2,000,000 per year in wholesale value of pesticides stored 
  7.33  and transferred through the site; or 
  7.34     (2) the registrant pays the surcharge under paragraph (b) 
  7.35  and the registration fee under section 18B.26, subdivision 3, 
  7.36  for all of the pesticides stored at the site and sold for use 
  8.1   outside of the state. 
  8.2      (f) Paragraphs (c) to (e) apply to sales, licenses issued, 
  8.3   applications received for licenses, and inspection fees imposed 
  8.4   on or after July 1, 1990. 
  8.5      Sec. 13.  Minnesota Statutes 2001 Supplement, section 
  8.6   18E.04, subdivision 2, is amended to read: 
  8.7      Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
  8.8   request by an eligible person, the board may pay the eligible 
  8.9   person for the reasonable and necessary cash disbursements for 
  8.10  corrective action costs incurred by the eligible person as 
  8.11  provided under subdivision 4 if the board determines: 
  8.12     (1) the eligible person pays the first $1,000 of the 
  8.13  corrective action costs; 
  8.14     (2) the eligible person provides the board with a sworn 
  8.15  affidavit and other convincing evidence that the eligible person 
  8.16  is unable to pay additional corrective action costs; 
  8.17     (3) the eligible person continues to assume responsibility 
  8.18  for carrying out the requirements of corrective action orders 
  8.19  issued to the eligible person or that are in effect; 
  8.20     (4) the incident was reported as required in chapters 18B, 
  8.21  18C, and 18D; and 
  8.22     (5) the eligible person submits an application for payment 
  8.23  or reimbursement to the department within three years of (i) 
  8.24  incurring eligible corrective action costs, or (ii) approval of 
  8.25  a corrective action report design, whichever is later. 
  8.26     (b) The eligible person must submit an application for 
  8.27  payment or reimbursement of eligible cost incurred prior to July 
  8.28  1, 2001, no later than June 1, 2004. 
  8.29     (c) An eligible person is not eligible for payment or 
  8.30  reimbursement and must refund amounts paid or reimbursed by the 
  8.31  board if false statements or misrepresentations are made in the 
  8.32  affidavit or other evidence submitted to the commissioner to 
  8.33  show an inability to pay corrective action costs.  
  8.34     (d) The board may pay the eligible person and one or more 
  8.35  designees by multiparty check. 
  8.36     Sec. 14.  Minnesota Statutes 2000, section 18E.04, 
  9.1   subdivision 3, is amended to read: 
  9.2      Subd. 3.  [PARTIAL REIMBURSEMENT.] (a) If the unencumbered 
  9.3   balance of the account drops below $2,000,000, the board may 
  9.4   only pay or reimburse an eligible person up to $100,000 within 
  9.5   the same fiscal year. 
  9.6      (b) If the board determines that an incident was caused by 
  9.7   a violation of chapter 18B, 18C, or 18D, the board may reimburse 
  9.8   or pay a portion of the corrective action costs of the eligible 
  9.9   person based on the culpability of the eligible person and the 
  9.10  percentage of the costs not attributable to the violation.  
  9.11     Sec. 15.  Minnesota Statutes 2001 Supplement, section 
  9.12  18E.04, subdivision 4, is amended to read: 
  9.13     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
  9.14  a person that is eligible for reimbursement or payment under 
  9.15  subdivisions 1, 2, and 3 from the agricultural chemical response 
  9.16  and reimbursement account for:  
  9.17     (1) 90 80 percent of the total reasonable and necessary 
  9.18  corrective action costs greater than $1,000 and less than or 
  9.19  equal to $200,000; 
  9.20     (2) 80 percent of the total reasonable and necessary 
  9.21  corrective action costs greater than $200,000 but less than or 
  9.22  equal to $300,000; and 
  9.23     (3) 60 percent of the total reasonable and necessary 
  9.24  corrective action costs greater than $300,000 but less than or 
  9.25  equal to $350,000.  
  9.26     (b) A reimbursement or payment may not be made until the 
  9.27  board has determined that the costs are reasonable and are for a 
  9.28  reimbursement of the costs that were actually incurred. 
  9.29     (c) The board may make periodic payments or reimbursements 
  9.30  as corrective action costs are incurred upon receipt of invoices 
  9.31  for the corrective action costs. 
  9.32     (d) Money in the agricultural chemical response and 
  9.33  reimbursement account is appropriated to the commissioner to 
  9.34  make payments and reimbursements directed by the board under 
  9.35  this subdivision.  
  9.36     (e) The board may not make reimbursement greater than the 
 10.1   maximum allowed under paragraph (a) for all incidents on a 
 10.2   single site which: 
 10.3      (1) were not reported at the time of release but were 
 10.4   discovered and reported after July 1, 1989; and 
 10.5      (2) may have occurred prior to July 1, 1989, as determined 
 10.6   by the commissioner. 
 10.7      (f) The board may only reimburse an eligible person for 
 10.8   separate incidents within a single site if the commissioner 
 10.9   determines that each incident is completely separate and 
 10.10  distinct in respect of location within the single site or time 
 10.11  of occurrence. 
 10.12     (g) Except for an emergency incident, the board may not 
 10.13  reimburse or pay for more than 60 percent of the corrective 
 10.14  action costs of an eligible person or for an incident within 
 10.15  five years of a previous incident at a single site resulting 
 10.16  from a site recontamination. 
 10.17     Sec. 16.  Minnesota Statutes 2000, section 18E.06, is 
 10.18  amended to read: 
 10.19     18E.06 [REPORT.] 
 10.20     By September December 1 of each year, the agricultural 
 10.21  chemical response compensation board and the commissioner shall 
 10.22  submit to the house of representatives committee on ways and 
 10.23  means, the senate committee on finance, the house of 
 10.24  representatives and senate committees with jurisdiction over the 
 10.25  environment, natural resources, and agriculture, and the 
 10.26  environmental quality board a report detailing the activities 
 10.27  and reimbursements for which money from the account has been 
 10.28  spent during the previous year. 
 10.29     Sec. 17.  Minnesota Statutes 2000, section 21.111, is 
 10.30  amended by adding a subdivision to read: 
 10.31     Subd. 3a.  [INTERSTATE COOPERATION.] In order to best use 
 10.32  state resources, the commissioner may enter into agreements with 
 10.33  other seed potato certification entities to carry out the 
 10.34  purposes of sections 21.111 to 21.122.  Any agreement may 
 10.35  provide for field inspections, shipping point inspections, 
 10.36  winter tests, and other certification functions to be carried 
 11.1   out by personnel employed by either entity according to methods 
 11.2   determined by the certification entities of the respective 
 11.3   areas.  The commissioner may extend seed potato certification 
 11.4   services to states where growers wish to grow certified seed 
 11.5   potatoes and the state does not have a seed potato certification 
 11.6   program.  Any agreement must be reported to the chairs of the 
 11.7   legislative committees responsible for the budget or policy of 
 11.8   the seed potato inspection program and to the commissioner of 
 11.9   finance. 
 11.10     Sec. 18.  Minnesota Statutes 2000, section 31.101, as 
 11.11  amended by Laws 2001, First Special Session chapter 2, section 
 11.12  53, is amended to read: 
 11.13     31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
 11.14     Subdivision 1.  [AUTHORITY.] The commissioner may 
 11.15  promulgate and amend rules for the efficient administration and 
 11.16  enforcement of the Minnesota Food Law.  The rules when 
 11.17  applicable must conform, insofar as practicable and consistent 
 11.18  with state law, with those promulgated under the federal law.  
 11.19  This rulemaking authority is in addition to that in sections 
 11.20  31.10, 31.11, and 31.12.  Rules adopted under this section may 
 11.21  be amended by the commissioner under chapter 14, subject to the 
 11.22  limitation in subdivision 7.  
 11.23     Subd. 2.  [HEARINGS.] Hearings authorized or required by 
 11.24  law must be conducted by the commissioner or an officer, agent, 
 11.25  or employee the commissioner designates for the purpose.  
 11.26     Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
 11.27  chemical regulations in effect on April 1, 2000 2001, adopted 
 11.28  under authority of the Federal Insecticide, Fungicide and 
 11.29  Rodenticide Act, as provided by United States Code, title 7, 
 11.30  chapter 6, are the pesticide chemical rules in this state.  
 11.31     Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
 11.32  regulations in effect on April 1, 2000 2001, as provided by Code 
 11.33  of Federal Regulations, title 21, parts 170 to 199, are the food 
 11.34  additive rules in this state.  
 11.35     Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
 11.36  regulations in effect on April 1, 2000 2001, as provided by Code 
 12.1   of Federal Regulations, title 21, parts 70 to 82, are the color 
 12.2   additive rules in this state.  
 12.3      Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
 12.4   dietary use regulations in effect on April 1, 2000 2001, as 
 12.5   provided by Code of Federal Regulations, title 21, parts 104 and 
 12.6   105, are the special dietary use rules in this state.  
 12.7      Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
 12.8   regulations in effect on April 1, 2000 2001, adopted under the 
 12.9   Fair Packaging and Labeling Act, as provided by United States 
 12.10  Code, title 15, sections 1451 to 1461, are the rules in this 
 12.11  state.  The commissioner may not adopt amendments to these rules 
 12.12  or adopt other rules which are contrary to the labeling 
 12.13  requirements for the net quantity of contents required pursuant 
 12.14  to section 4 of the Fair Packaging and Labeling Act and the 
 12.15  regulations adopted under that act.  
 12.16     Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
 12.17  regulations including recodification contained in Code of 
 12.18  Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
 12.19  effect April 1, 2000 2001, and not otherwise adopted herein, 
 12.20  also are adopted as food rules of this state.  
 12.21     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
 12.22  effect on April 1, 2000 2001, as provided by Code of Federal 
 12.23  Regulations, title 50, parts 260 to 267, are incorporated as 
 12.24  part of the fishery products rules in this state for state 
 12.25  inspections performed under a cooperative agreement with the 
 12.26  United States Department of Commerce, National Marine Fisheries 
 12.27  Service.  
 12.28     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
 12.29  effect on April 1, 2000 2001, as provided by Code of Federal 
 12.30  Regulations, title 9, part 301, et seq., are incorporated as 
 12.31  part of the meat and poultry rules in this state. 
 12.32     Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
 12.33  OTHER PRODUCTS.] Federal regulations in effect on April 1, 
 12.34  2000 2001, as provided by Code of Federal Regulations, title 7, 
 12.35  parts 51 and 52, are incorporated as part of the rules in this 
 12.36  state.  
 13.1      Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
 13.2   STANDARDS.] Federal grading and inspection standards for 
 13.3   manufacturing dairy plants and products and amendments thereto 
 13.4   in effect on January April 1, 2001, as provided by Code of 
 13.5   Federal Regulations, title 7, part 58, subparts B-W, are adopted 
 13.6   as the dairy grade rules and manufacturing plant standards in 
 13.7   this state. 
 13.8      Sec. 19.  Minnesota Statutes 2000, section 31.102, 
 13.9   subdivision 1, is amended to read: 
 13.10     Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
 13.11  RULES.] Federal definitions and standards of identity, quality, 
 13.12  and fill of container in effect on April 1, 2000 2001, adopted 
 13.13  under authority of the federal act, are the definitions and 
 13.14  standards of identity, quality, and fill of container in this 
 13.15  state.  The rules may be amended by the commissioner under 
 13.16  chapter 14.  
 13.17     Sec. 20.  Minnesota Statutes 2000, section 31.103, 
 13.18  subdivision 1, is amended to read: 
 13.19     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
 13.20  labels of consumer commodities must conform with the 
 13.21  requirements for the declaration of net quantity of contents of 
 13.22  section 4 of the Fair Packaging and Labeling Act (United States 
 13.23  Code, title 15, section 1451 et seq.) and federal regulations in 
 13.24  effect on April 1, 2000 2001, adopted under authority of that 
 13.25  act, except to the extent that the commissioner amends the rules 
 13.26  under chapter 14.  Consumer commodities exempted from the 
 13.27  requirements of section 4 of the Fair Packaging and Labeling Act 
 13.28  are also exempt from this subdivision.  
 13.29     Sec. 21.  Minnesota Statutes 2000, section 31.104, is 
 13.30  amended to read: 
 13.31     31.104 [FOOD LABELING EXEMPTION RULES.] 
 13.32     The commissioner shall promulgate rules exempting from any 
 13.33  labeling requirement food which is, in accordance with the 
 13.34  practice of the trade, to be processed, labeled, or repacked in 
 13.35  substantial quantities at establishments other than those where 
 13.36  originally processed or packed, on condition that such food is 
 14.1   not adulterated or misbranded upon removal from such processing, 
 14.2   labeling, or repacking establishment.  
 14.3      Federal regulations in effect on April 1, 2000 2001, 
 14.4   adopted under authority of the federal act relating to such 
 14.5   exemptions are effective in this state unless the commissioner 
 14.6   amends them.  The commissioner also may amend existing rules 
 14.7   concerning exemptions under chapter 14. 
 14.8      Sec. 22.  [35.155] [CERVIDAE IMPORT RESTRICTIONS.] 
 14.9      (a) A person must not import cervidae into the state from a 
 14.10  herd that is infected or exposed to chronic wasting disease or 
 14.11  from a known chronic wasting disease endemic area, as determined 
 14.12  by the board.  A person may import cervidae into the state only 
 14.13  from a herd that is not in a known chronic wasting disease 
 14.14  endemic area, as determined by the board, and the herd has been 
 14.15  subject to a state or provincial approved chronic wasting 
 14.16  disease monitoring program for at least three years.  Cervidae 
 14.17  imported in violation of this section may be seized and 
 14.18  destroyed by the commissioner of natural resources. 
 14.19     (b) This section expires on June 1, 2003. 
 14.20     Sec. 23.  Minnesota Statutes 2000, section 38.331, 
 14.21  subdivision 2, is amended to read: 
 14.22     Subd. 2.  [COUNTY EXTENSION WORK.] "County extension work" 
 14.23  means educational programs and services provided by extension 
 14.24  agents educators in the areas of agriculture, economic and human 
 14.25  development, community; agricultural finance; economic 
 14.26  development; nutrition; youth leadership development including 
 14.27  4-H programs; leadership,; and environment and natural resources.
 14.28     Sec. 24.  Minnesota Statutes 2000, section 41B.03, 
 14.29  subdivision 1, is amended to read: 
 14.30     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
 14.31  a program in sections 41B.01 to 41B.23: 
 14.32     (1) a borrower must be a resident of Minnesota or a 
 14.33  domestic family farm corporation or family farm partnership, as 
 14.34  defined in section 500.24, subdivision 2; and 
 14.35     (2) the borrower or one of the borrowers must be the 
 14.36  principal operator of the farm or, for a prospective homestead 
 15.1   redemption borrower, must have at one time been the principal 
 15.2   operator of a farm. 
 15.3      Sec. 25.  Minnesota Statutes 2000, section 41B.03, 
 15.4   subdivision 3, is amended to read: 
 15.5      Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
 15.6   addition to the requirements under subdivision 1, a prospective 
 15.7   borrower for a beginning farm loan in which the authority holds 
 15.8   an interest, must:  
 15.9      (1) have sufficient education, training, or experience in 
 15.10  the type of farming for which the loan is desired; 
 15.11     (2) have a total net worth, including assets and 
 15.12  liabilities of the borrower's spouse and dependents, of less 
 15.13  than $200,000 in 1991 and an amount in subsequent years which is 
 15.14  adjusted for inflation by multiplying $200,000 by the cumulative 
 15.15  inflation rate as determined by the United States All-Items 
 15.16  Consumer Price Index; 
 15.17     (3) demonstrate a need for the loan; 
 15.18     (4) demonstrate an ability to repay the loan; 
 15.19     (5) certify that the agricultural land to be purchased will 
 15.20  be used by the borrower for agricultural purposes; 
 15.21     (6) certify that farming will be the principal occupation 
 15.22  of the borrower; 
 15.23     (7) agree to participate in a farm management program 
 15.24  approved by the commissioner of agriculture for at least the 
 15.25  first five three years of the loan, if an approved program is 
 15.26  available within 45 miles from the borrower's residence.  The 
 15.27  commissioner may waive this requirement for any of the programs 
 15.28  administered by the authority if the participant requests a 
 15.29  waiver and has either a four-year degree in an agricultural 
 15.30  program or certification as an adult farm management instructor; 
 15.31  and 
 15.32     (8) agree to file an approved soil and water conservation 
 15.33  plan with the soil conservation service office in the county 
 15.34  where the land is located.  
 15.35     (b) If a borrower fails to participate under paragraph (a), 
 15.36  clause (7), the borrower is subject to penalty as determined by 
 16.1   the authority. 
 16.2      Sec. 26.  Minnesota Statutes 2001 Supplement, section 
 16.3   41B.046, subdivision 2, is amended to read: 
 16.4      Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 16.5   and implement a value-added agricultural product loan program to 
 16.6   help farmers finance the purchase of stock in a cooperative, 
 16.7   limited liability company, or limited liability partnership that 
 16.8   is proposing to build or purchase and operate an agricultural 
 16.9   product processing facility or already owns and operates an 
 16.10  agricultural product processing facility. 
 16.11     Sec. 27.  [41B.049] [METHANE DIGESTER LOAN PROGRAM.] 
 16.12     Subdivision 1.  [ESTABLISHMENT.] The authority shall 
 16.13  establish and implement a methane digester loan program to help 
 16.14  finance the purchase of necessary equipment and the construction 
 16.15  of a system that will utilize manure to produce electricity. 
 16.16     Subd. 2.  [REVOLVING FUND.] There is established in the 
 16.17  state treasury a revolving fund, which is eligible to receive 
 16.18  appropriations and the transfer of funds from other services.  
 16.19  All repayments of financial assistance granted under subdivision 
 16.20  1, including principal and interest, must be deposited into this 
 16.21  fund.  Interest earned on money in the fund accrues to the fund, 
 16.22  and money in the fund is appropriated to the commissioner of 
 16.23  agriculture for purposes of the manure digester loan program, 
 16.24  including costs incurred by the authority to establish and 
 16.25  administer the program. 
 16.26     Subd. 3.  [ELIGIBILITY.] Notwithstanding section 41B.03, to 
 16.27  be eligible for a loan under this section a borrower must: 
 16.28     (1) locate the projects and utilize the equipment and 
 16.29  practices on land located in Minnesota; 
 16.30     (2) provide evidence of financial stability; 
 16.31     (3) demonstrate an ability to repay the loan; and 
 16.32     (4) provide evidence that the practices implemented and 
 16.33  capital assets purchased will be properly managed and maintained.
 16.34     Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
 16.35  or participate in a loan with an eligible lender to a farmer who 
 16.36  is eligible under subdivision 3.  The interest rates and 
 17.1   repayment terms of the authority's participation interest may 
 17.2   differ from the interest rates and repayment terms of the 
 17.3   lender's retained portion of the loan.  The authority's interest 
 17.4   rate for a direct loan or a loan participation must not exceed 
 17.5   four percent.  Loans made under this section before July 1, 
 17.6   2003, must be no-interest loans.  
 17.7      (b) Application for a direct loan or a loan participation 
 17.8   must be made on forms prescribed by the authority. 
 17.9      (c) Standards for loan amortization shall be set by the 
 17.10  rural finance authority not to exceed ten years. 
 17.11     (d) Security for the loans must be a personal note executed 
 17.12  by the borrower and whatever other security is required by the 
 17.13  eligible lender or the authority. 
 17.14     (e) No loan proceeds may be used to refinance a debt 
 17.15  existing prior to application. 
 17.16     (f) The authority may impose a reasonable nonrefundable 
 17.17  application fee for each application for a direct loan or a loan 
 17.18  participation.  The authority may review the application fees 
 17.19  annually and make adjustments as necessary.  The application fee 
 17.20  is initially set at $100 for a loan under subdivision 1.  The 
 17.21  fees received by the authority must be deposited in the 
 17.22  revolving fund created in subdivision 2. 
 17.23     Subd. 5.  [LOAN CRITERIA.] (a) To be eligible, a borrower 
 17.24  must be a resident of Minnesota or an entity that is not 
 17.25  prohibited from owning agricultural land under section 500.24. 
 17.26     (b) State participation in a participation loan is limited 
 17.27  to 45 percent of the principal amount of the loan.  A direct 
 17.28  loan or loan participation may not exceed $250,000.  
 17.29     (c) Loans under this program may be used as a match for 
 17.30  federal loans or grants. 
 17.31     (d) A borrower who has previously received a loan under 
 17.32  subdivision 1 is prohibited from receiving another methane 
 17.33  digester loan under subdivision 1. 
 17.34     Sec. 28.  Minnesota Statutes 2000, section 97A.105, is 
 17.35  amended by adding a subdivision to read: 
 17.36     Subd. 3a.  [CERVIDAE RUNNING AT LARGE PROHIBITED.] (a) An 
 18.1   owner may not allow cervidae to run at large.  The owner must 
 18.2   make all reasonable efforts to return escaped cervidae to their 
 18.3   enclosures as soon as possible.  The owner must notify the 
 18.4   commissioner of the escape of cervidae if the cervidae are not 
 18.5   returned or captured by the owner within 24 hours of their 
 18.6   escape. 
 18.7      (b) An owner is liable for expenses of another person in 
 18.8   capturing, caring for, and returning cervidae that have left 
 18.9   their enclosures if the person capturing the cervidae contacts 
 18.10  the owner as soon as possible. 
 18.11     (c) If an owner is unwilling or unable to capture escaped 
 18.12  cervidae, the commissioner may destroy the escaped cervidae.  
 18.13  The commissioner must allow the owner to attempt to capture the 
 18.14  escaped cervidae prior to destroying the cervidae.  Cervidae 
 18.15  that are not captured by 24 hours after escape may be destroyed. 
 18.16     Sec. 29.  Minnesota Statutes 2000, section 97A.105, is 
 18.17  amended by adding a subdivision to read: 
 18.18     Subd. 3b.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An 
 18.19  owner, or employee or agent under the direction of the owner, 
 18.20  must destroy wild cervidae found within the game farm owner's 
 18.21  cervidae confinement area.  The owner, employee, or agent must 
 18.22  report the wild cervidae destroyed to a conservation officer or 
 18.23  an employee of the division of wildlife within 24 hours.  The 
 18.24  wild cervidae must be disposed of as prescribed by the 
 18.25  commissioner. 
 18.26     Sec. 30.  [116.0714] [NEW OPEN AIR SWINE BASINS.] 
 18.27     After the effective date of this section, the commissioner 
 18.28  of the pollution control agency or a county board shall not 
 18.29  approve any permits for the construction of new open air swine 
 18.30  basins, except that existing facilities may use one basin of 
 18.31  less than 1,000,000 gallons as part of a permitted waste 
 18.32  treatment program for resolving pollution problems or to allow 
 18.33  conversion of an existing basin of less than 1,000,000 gallons 
 18.34  to a different animal type, provided all standards are met.  
 18.35  This section expires June 30, 2007. 
 18.36     Sec. 31.  Minnesota Statutes 2000, section 223.16, 
 19.1   subdivision 5, is amended to read: 
 19.2      Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
 19.3   purchases grain for the purpose of reselling the grain or 
 19.4   products made from the grain, with the exception of a person who 
 19.5   purchases seed grain for crop production or who purchases grain 
 19.6   as feed for the person's own livestock. 
 19.7      Sec. 32.  Laws 2001, chapter 206, section 14, is amended to 
 19.8   read: 
 19.9      Sec. 14.  [500.222] [EXEMPT ACREAGE IN LAND EXCHANGE.] 
 19.10     The city of Bird Island A local unit of government may 
 19.11  exchange a parcel of land owned by it or acquired for it by a 
 19.12  qualified intermediary, for a parcel of agricultural real estate 
 19.13  that is owned by an individual exempt under Minnesota Statutes, 
 19.14  section 500.221, based on ownership being lawfully acquired 
 19.15  prior to June 1, 1981.  Since there is no exception for 
 19.16  exchanged property under Minnesota Statutes, section 500.221, 
 19.17  the exchange of the city's parcel would result in the loss of 
 19.18  exemption for the exchanged property.  Accordingly, this act 
 19.19  provides that The agricultural land being exchanged for the 
 19.20  parcel that is currently exempt shall also be exempt under 
 19.21  Minnesota Statutes, section 500.221, as if it had been purchased 
 19.22  by the owner prior to June 1, 1981.  Such The exchanged parcel 
 19.23  shall have exactly the same rights status under the 
 19.24  statute section 500.221 as the parcel to be exchanged and 
 19.25  the status may be stated on the deeds used to effectuate the 
 19.26  transaction may so state. 
 19.27     Sec. 33.  [NORTHERN COUNTIES LAND USE COORDINATING BOARD; 
 19.28  LAND USE MANAGEMENT; PILOT PROJECT.] 
 19.29     (a) The northern counties land use coordinating board may 
 19.30  initiate a pilot project to promote cooperative efforts among 
 19.31  county, state, federal, and local units of government and 
 19.32  private citizens regarding land use management issues.  The 
 19.33  office of strategic and long-range planning must coordinate the 
 19.34  activities of state agencies, which shall include the 
 19.35  departments of agriculture, commerce, natural resources, trade 
 19.36  and economic development, board of soil and water resources, 
 20.1   iron range resources and rehabilitation board, environmental 
 20.2   quality board, pollution control agency, and the office of 
 20.3   environmental assistance. 
 20.4      (b) The board must also solicit cooperation with Canadian 
 20.5   officials who represent areas contiguous to the region and with 
 20.6   organizations representing recreational, agricultural, mining, 
 20.7   forestry, and tourism interests within the affected boundaries 
 20.8   of the northern counties land use coordinating board. 
 20.9      (c) The legislature also encourages participation by 
 20.10  appropriate federal agencies. 
 20.11     (d) The objectives of the pilot project are to: 
 20.12     (1) document instances when land use regulations and 
 20.13  policies are incompatible with local government land use 
 20.14  authority; 
 20.15     (2) document instances when regulations and policies 
 20.16  interfere with private property rights; and 
 20.17     (3) identify and promote a means of resolving differences. 
 20.18     (e) The board must report to the legislature by January 15, 
 20.19  2004, on the status of the project.  The pilot project ends on 
 20.20  June 30, 2004. 
 20.21     (f) Costs to the office of strategic and long-range 
 20.22  planning related to its coordination duties under this section 
 20.23  must be reimbursed by the northern counties land use 
 20.24  coordinating board or its participating counties as provided in 
 20.25  an agreement between the office and the board.  The agreement is 
 20.26  not subject to the limits on contracts and hiring in Laws 2002, 
 20.27  chapter 220, article 10, sections 36 to 38.  Reimbursements must 
 20.28  be deposited in the state treasury and credited to the special 
 20.29  revenue fund and are appropriated to the office to carry out the 
 20.30  agreement. 
 20.31     Sec. 34.  [CHRONIC WASTING DISEASE RECOMMENDATIONS; 
 20.32  REPORT.] 
 20.33     The board of animal health and the commissioner of natural 
 20.34  resources, in consultation with the cervidae advisory committee 
 20.35  and other interested parties, shall jointly study and make 
 20.36  recommendations on measures to protect domestic and wild 
 21.1   cervidae from chronic wasting disease.  The report shall include 
 21.2   recommendations for: 
 21.3      (1) cervidae fence specifications; 
 21.4      (2) disease infection prevention measures; 
 21.5      (3) criteria for quarantine or destruction of contaminated 
 21.6   herds; 
 21.7      (4) methods of harvest; 
 21.8      (5) tagging of cervidae; and 
 21.9      (6) other items determined by the board and the 
 21.10  commissioner. 
 21.11  By January 15, 2003, the board and the commissioner shall report 
 21.12  their recommendations to the senate and house of representatives 
 21.13  committees with jurisdiction over agriculture and natural 
 21.14  resources policy. 
 21.15     Sec. 35.  [TEMPORARY WAIVER OF RULE.] 
 21.16     The application of Minnesota Rules, part 1720.0620, is 
 21.17  temporarily waived from June 1, 2002, to June 30, 2003, for 
 21.18  products used exclusively for poultry. 
 21.19     Sec. 36.  [NOXIOUS WEED RULES.] 
 21.20     The commissioner of agriculture shall amend the rules 
 21.21  authorized under Minnesota Statutes, section 18.79, pursuant to 
 21.22  Minnesota Statutes, section 14.388, to add Grecian Foxglove 
 21.23  (digitalis lanata) to the list of secondary noxious weeds. 
 21.24     Sec. 37.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
 21.25     The remaining balance in the revolving account in Minnesota 
 21.26  Statutes, section 17.115, that is dedicated to manure digester 
 21.27  loans under Minnesota Statutes, section 17.115, subdivision 5, 
 21.28  shall be transferred to the revolving fund established under 
 21.29  Minnesota Statutes, section 41B.049, subdivision 2, on the 
 21.30  effective date of this section.  Notwithstanding Minnesota 
 21.31  Statutes, section 17.115, and Laws 2002, chapter 220, article 9, 
 21.32  section 7, all future receipts from manure digester loans 
 21.33  originated under Minnesota Statutes, section 17.115, and from 
 21.34  disaster recovery loans, under Minnesota Statutes, section 
 21.35  41B.047, shall be deposited in the revolving fund established 
 21.36  under Minnesota Statutes, section 41B.049, subdivision 2. 
 22.1      Sec. 38.  [EFFECTIVE DATE.] 
 22.2      Sections 2, 3, 22, 28 to 30, and 32 to 36 are effective the 
 22.3   day following final enactment." 
 22.4      Delete the title and insert: 
 22.5                          "A bill for an act 
 22.6             relating to agriculture; establishing a livestock 
 22.7             development program; clarifying certain requirements 
 22.8             for agricultural contracts; changing certain powers 
 22.9             relating to grain; modifying certain pesticide 
 22.10            provisions; providing for interstate cooperation for 
 22.11            seed potato certification; providing for uniformity of 
 22.12            certain Minnesota food rules with federal standards; 
 22.13            establishing and changing certain loan programs; 
 22.14            clarifying terms; authorizing a land use pilot 
 22.15            project; providing a temporary waiver of a rule; 
 22.16            changing cervidae regulations; changing certain 
 22.17            agricultural chemical response provisions; changing 
 22.18            certain manure and waste management provisions; 
 22.19            authorizing certain land exchanges; requiring a 
 22.20            report; requiring amendment of certain rules; 
 22.21            appropriating money; amending Minnesota Statutes 2000, 
 22.22            sections 17.101, by adding a subdivision; 17.452, 
 22.23            subdivision 6, by adding a subdivision; 17.90, 
 22.24            subdivision 1a, by adding a subdivision; 17B.03, 
 22.25            subdivision 1; 18E.02, by adding subdivisions; 18E.03, 
 22.26            subdivision 4; 18E.04, subdivision 3; 18E.06; 21.111, 
 22.27            by adding a subdivision; 31.101, as amended; 31.102, 
 22.28            subdivision 1; 31.103, subdivision 1; 31.104; 38.331, 
 22.29            subdivision 2; 41B.03, subdivisions 1, 3; 97A.105, by 
 22.30            adding subdivisions; 223.16, subdivision 5; Minnesota 
 22.31            Statutes 2001 Supplement, sections 17.9442; 18B.36, 
 22.32            subdivision 1; 18E.04, subdivisions 2, 4; 41B.046, 
 22.33            subdivision 2; Laws 2001, chapter 206, section 14; 
 22.34            proposing coding for new law in Minnesota Statutes, 
 22.35            chapters 18D; 35; 41B; 116." 
 23.1      We request adoption of this report and repassage of the 
 23.2   bill. 
 23.5      House Conferees: 
 23.8   .........................     .........................
 23.9   Tim Finseth                   Robert Ness 
 23.12  .........................     
 23.13  Rod Skoe                       
 23.18     Senate Conferees: 
 23.21  .........................     .........................
 23.22  Steve Murphy                  Dennis R. Frederickson 
 23.25  .........................     
 23.26  Twyla Ring