1.1                          A bill for an act 
  1.2             relating to agriculture; changing certain wild rice 
  1.3             provisions; changing certain procedures and 
  1.4             requirements for organic food; clarifying certain food 
  1.5             provisions; clarifying an enforcement provision; 
  1.6             changing a milk storage requirement; providing for 
  1.7             compliance with federal law; extending a provision 
  1.8             authorizing certain emergency restrictions; setting 
  1.9             certain ethanol goals; changing certain animal lot 
  1.10            regulations; requiring that certain gasoline contain 
  1.11            denatured ethanol; eliminating a requirement for 
  1.12            anaplasmosis testing; extending an agency sunset; 
  1.13            providing a turtle seller's license exemption; 
  1.14            authorizing certain persons to own and operate 
  1.15            agricultural land; amending Minnesota Statutes 2002, 
  1.16            sections 30.49, subdivision 6; 31.05, by adding a 
  1.17            subdivision; 31.101, subdivisions 3, 4, 5, 6, 7, 8, 9, 
  1.18            10, 11, 12; 31.102, subdivision 1; 31.103, subdivision 
  1.19            1; 31.92, subdivision 3, by adding subdivisions; 
  1.20            31.94; 32.01, subdivision 10; 32.21, subdivision 4; 
  1.21            32.394, subdivisions 4, 8c; 32.415; 35.0661, 
  1.22            subdivision 4; 41A.09, subdivision 1a; 41D.01, 
  1.23            subdivision 4; 97C.605, subdivision 2c; 116.07, 
  1.24            subdivision 7; 239.791, subdivision 1; 500.221, 
  1.25            subdivision 2; proposing coding for new law in 
  1.26            Minnesota Statutes, chapter 31; repealing Minnesota 
  1.27            Statutes 2002, sections 31.92, subdivisions 2a, 5; 
  1.28            31.93; 31.95; 32.391, subdivisions 1a, 1b, 1c; 35.251; 
  1.29            Minnesota Rules, parts 1700.0800; 1700.1000; 
  1.30            1700.1300; 1705.0550; 1705.0560; 1705.0570; 1705.0580; 
  1.31            1705.0590; 1705.0600; 1705.0610; 1705.0630; and 
  1.32            1715.1430. 
  1.33  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.34     Section 1.  Minnesota Statutes 2002, section 30.49, 
  1.35  subdivision 6, is amended to read: 
  1.36     Subd. 6.  [PACKAGED BLENDED RICE AND CERTAIN READY-TO-EAT 
  1.37  RICE.] A package containing a blend of wild rice and at least 40 
  1.38  percent other grains or food products, and ~~puffed or~~ 
  1.39  ready-to-eat wild rice that is consumed or packaged on the 
  2.1   retail premises, are exempt from this section, except 
  2.2   subdivisions 3, 5, and 7. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 31.05, is amended 
  2.4   by adding a subdivision to read: 
  2.5      Subd. 5.  [EMERGENCY RESPONSE.] In the event of an 
  2.6   emergency declared by the governor's order under section 12.31, 
  2.7   if the commissioner finds or has probable cause to believe that 
  2.8   a food or consumer commodity within a specific area is likely to 
  2.9   be adulterated because of the emergency or so misbranded as to 
  2.10  be dangerous or fraudulent, or is in violation of section 
  2.11  31.131, subdivision 1, the commissioner may embargo a geographic 
  2.12  area that is included in the declared emergency.  The 
  2.13  commissioner shall provide notice to the public and to those 
  2.14  with custody of the product in as thorough a manner as is 
  2.15  practical under the emergency circumstances. 
  2.16     Sec. 3.  Minnesota Statutes 2002, section 31.101, 
  2.17  subdivision 3, is amended to read: 
  2.18     Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
  2.19  chemical regulations ~~in effect on April 1, 2001,~~ adopted under 
  2.20  authority of the Federal Insecticide, Fungicide and Rodenticide 
  2.21  Act, as provided by United States Code, title 7, chapter 6, are 
  2.22  the pesticide chemical rules in this state.  
  2.23     Sec. 4.  Minnesota Statutes 2002, section 31.101, 
  2.24  subdivision 4, is amended to read: 
  2.25     Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
  2.26  regulations ~~in effect on April 1, 2001~~, as provided by Code of 
  2.27  Federal Regulations, title 21, parts 170 to 199, are the food 
  2.28  additive rules in this state.  
  2.29     Sec. 5.  Minnesota Statutes 2002, section 31.101, 
  2.30  subdivision 5, is amended to read: 
  2.31     Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
  2.32  regulations ~~in effect on April 1, 2001~~, as provided by Code of 
  2.33  Federal Regulations, title 21, parts 70 to 82, are the color 
  2.34  additive rules in this state.  
  2.35     Sec. 6.  Minnesota Statutes 2002, section 31.101, 
  2.36  subdivision 6, is amended to read: 
  3.1      Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
  3.2   dietary use regulations ~~in effect on April 1, 2001~~, as provided 
  3.3   by Code of Federal Regulations, title 21, parts 104 and 105, are 
  3.4   the special dietary use rules in this state.  
  3.5      Sec. 7.  Minnesota Statutes 2002, section 31.101, 
  3.6   subdivision 7, is amended to read: 
  3.7      Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
  3.8   regulations ~~in effect on April 1, 2001,~~ adopted under the Fair 
  3.9   Packaging and Labeling Act, as provided by United States Code, 
  3.10  title 15, sections 1451 to 1461, are the rules in this state.  
  3.11  The commissioner may not adopt amendments to these rules or 
  3.12  adopt other rules which are contrary to the labeling 
  3.13  requirements for the net quantity of contents required pursuant 
  3.14  to section 4 of the Fair Packaging and Labeling Act and the 
  3.15  regulations adopted under that act.  
  3.16     Sec. 8.  Minnesota Statutes 2002, section 31.101, 
  3.17  subdivision 8, is amended to read: 
  3.18     Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
  3.19  regulations including recodification contained in Code of 
  3.20  Federal Regulations, title 21, parts 0-1299, Food and Drugs, ~~in~~ 
  3.21  ~~effect April 1, 2001, and~~ not otherwise adopted herein, also are 
  3.22  adopted as food rules of this state.  
  3.23     Sec. 9.  Minnesota Statutes 2002, section 31.101, 
  3.24  subdivision 9, is amended to read: 
  3.25     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations ~~in~~ 
  3.26  ~~effect on April 1, 2001~~, as provided by Code of Federal 
  3.27  Regulations, title 50, parts 260 to 267, are incorporated as 
  3.28  part of the fishery products rules in this state for state 
  3.29  inspections performed under a cooperative agreement with the 
  3.30  United States Department of Commerce, National Marine Fisheries 
  3.31  Service.  
  3.32     Sec. 10.  Minnesota Statutes 2002, section 31.101, 
  3.33  subdivision 10, is amended to read: 
  3.34     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations ~~in~~ 
  3.35  ~~effect on April 1, 2001~~, as provided by Code of Federal 
  3.36  Regulations, title 9, part 301, et seq., are incorporated as 
  4.1   part of the meat and poultry rules in this state. 
  4.2      Sec. 11.  Minnesota Statutes 2002, section 31.101, 
  4.3   subdivision 11, is amended to read: 
  4.4      Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
  4.5   OTHER PRODUCTS.] Federal regulations ~~in effect on April 1, 2001~~, 
  4.6   as provided by Code of Federal Regulations, title 7, parts 51 
  4.7   and 52, are incorporated as part of the rules in this state.  
  4.8      Sec. 12.  Minnesota Statutes 2002, section 31.101, 
  4.9   subdivision 12, is amended to read: 
  4.10     Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
  4.11  STANDARDS.] Federal grading and inspection standards for 
  4.12  manufacturing dairy plants and products ~~and amendments thereto~~ 
  4.13  ~~in effect on April 1, 2001~~, as provided by Code of Federal 
  4.14  Regulations, title 7, part 58, subparts B-W, are adopted as the 
  4.15  dairy grade rules and manufacturing plant standards in this 
  4.16  state. 
  4.17     Sec. 13.  Minnesota Statutes 2002, section 31.102, 
  4.18  subdivision 1, is amended to read: 
  4.19     Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
  4.20  RULES.] Federal definitions and standards of identity, quality, 
  4.21  and fill of container ~~in effect on April 1, 2001,~~ adopted under 
  4.22  authority of the federal act, are the definitions and standards 
  4.23  of identity, quality, and fill of container in this state.  The 
  4.24  rules may be amended by the commissioner under chapter 14.  
  4.25     Sec. 14.  Minnesota Statutes 2002, section 31.103, 
  4.26  subdivision 1, is amended to read: 
  4.27     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
  4.28  labels of consumer commodities must conform with the 
  4.29  requirements for the declaration of net quantity of contents of 
  4.30  section 4 of the Fair Packaging and Labeling Act (United States 
  4.31  Code, title 15, section 1451 et seq.) and federal regulations ~~in~~ 
  4.32  ~~effect on April 1, 2001,~~ adopted under authority of that act, 
  4.33  except to the extent that the commissioner amends the rules 
  4.34  under chapter 14.  Consumer commodities exempted from the 
  4.35  requirements of section 4 of the Fair Packaging and Labeling Act 
  4.36  are also exempt from this subdivision.  
  5.1      Sec. 15.  Minnesota Statutes 2002, section 31.92, is 
  5.2   amended by adding a subdivision to read: 
  5.3      Subd. 2b.  [FEDERAL LAW.] "Federal law" means the Organic 
  5.4   Foods Production Act of 1990, United States Code, title 7, 
  5.5   sections 6501 et seq. and associated regulations in Code of 
  5.6   Federal Regulations, title 7, section 205. 
  5.7      Sec. 16.  Minnesota Statutes 2002, section 31.92, 
  5.8   subdivision 3, is amended to read: 
  5.9      Subd. 3.  [ORGANIC ~~FOOD~~.] ~~"Organic food" means any food~~ 
  5.10  ~~product, including meat, dairy, and beverage, that is marketed~~ 
  5.11  ~~using the term "organic" or any derivative of "organic" in its~~ 
  5.12  ~~labeling or advertising~~ "Organic" is a labeling term that refers 
  5.13  to an agricultural product produced in accordance with federal 
  5.14  law. 
  5.15     Sec. 17.  Minnesota Statutes 2002, section 31.92, is 
  5.16  amended by adding a subdivision to read: 
  5.17     Subd. 3a.  [ORGANIC PRODUCTION.] "Organic production" means 
  5.18  a production system that is managed in accordance with federal 
  5.19  law to respond to site-specific conditions by integrating 
  5.20  cultural, biological, and mechanical practices that foster 
  5.21  cycling of resources, promote ecological balance, and conserve 
  5.22  biodiversity. 
  5.23     Sec. 18.  [31.925] [UNIFORMITY WITH FEDERAL LAW.] 
  5.24     The federal law specified in section 31.92, subdivision 2b, 
  5.25  is adopted as the organic food production law and rules in this 
  5.26  state. 
  5.27     Sec. 19.  Minnesota Statutes 2002, section 31.94, is 
  5.28  amended to read: 
  5.29     31.94 [COMMISSIONER DUTIES.] 
  5.30     (a) ~~The commissioner shall enforce sections 31.92 to 31.95.~~ 
  5.31  ~~The commissioner shall withhold from sale or trade any product~~ 
  5.32  ~~sold, labeled, or advertised in violation of sections 31.92 to~~ 
  5.33  ~~31.95.~~ 
  5.34     ~~(b) The commissioner shall investigate the offering for~~ 
  5.35  ~~sale, labeling, or advertising of an article or substance as~~ 
  5.36  ~~organically grown, organically processed, or produced in an~~ 
  6.1   ~~organic environment if there is reason to believe that action is~~ 
  6.2   ~~in violation of sections 31.92 to 31.95.~~ 
  6.3      ~~(c) The commissioner may adopt rules that further clarify~~ 
  6.4   ~~organic food standards and marketing practices.~~ 
  6.5      ~~(d)~~ In order to promote opportunities for organic 
  6.6   agriculture in Minnesota, the commissioner shall: 
  6.7      (1) survey producers and support services and organizations 
  6.8   to determine information and research needs in the area of 
  6.9   organic agriculture practices; 
  6.10     (2) work with the University of Minnesota to demonstrate 
  6.11  the on-farm applicability of organic agriculture practices to 
  6.12  conditions in this state; 
  6.13     (3) direct the programs of the department so as to work 
  6.14  toward the promotion of organic agriculture in this state; 
  6.15     (4) inform agencies of how state or federal programs could 
  6.16  utilize and support organic agriculture practices; and 
  6.17     (5) work closely with ~~farmers~~ producers, the University of 
  6.18  Minnesota, the Minnesota trade office, and other appropriate 
  6.19  organizations to identify opportunities and needs as well as 
  6.20  ensure coordination and avoid duplication of state agency 
  6.21  efforts regarding research, teaching, marketing, and extension 
  6.22  work relating to organic agriculture. 
  6.23     ~~(e)~~ (b) By November 15 of each even-numbered year the 
  6.24  commissioner, in conjunction with the task force created in 
  6.25  ~~section 31.95, subdivision 3a~~ paragraph (c), shall report on the 
  6.26  status of organic agriculture in Minnesota to the legislative 
  6.27  policy and finance committees and divisions with jurisdiction 
  6.28  over agriculture.  The report must include: 
  6.29     (1) a description of current state or federal programs 
  6.30  directed toward organic agriculture, including significant 
  6.31  results and experiences of those programs; 
  6.32     (2) a description of specific actions the department of 
  6.33  agriculture is taking in the area of organic agriculture, 
  6.34  including the proportion of the department's budget spent on 
  6.35  organic agriculture; 
  6.36     (3) a description of current and future research needs at 
  7.1   all levels in the area of organic agriculture; ~~and~~ 
  7.2      (4) suggestions for changes in existing programs or 
  7.3   policies or enactment of new programs or policies that will 
  7.4   affect organic agriculture; 
  7.5      (5) a description of market trends and potential for 
  7.6   organic products; 
  7.7      (6) available information, using currently reliable data, 
  7.8   on the price received, yield, and profitability of organic 
  7.9   farms, and a comparison with data on conventional farms; and 
  7.10     (7) available information, using currently reliable data, 
  7.11  on the positive and negative impacts of organic production on 
  7.12  the environment and human health. 
  7.13     (c) The commissioner shall appoint a Minnesota organic 
  7.14  advisory task force to advise the commissioner on policies and 
  7.15  practices to improve organic agriculture in Minnesota.  The task 
  7.16  force must consist of the following residents of the state: 
  7.17     (1) three farmers using organic agriculture methods; 
  7.18     (2) two organic food wholesalers, retailers, or 
  7.19  distributors; 
  7.20     (3) one representative of organic food certification 
  7.21  agencies; 
  7.22     (4) two organic food processors; 
  7.23     (5) one representative from the Minnesota extension 
  7.24  service; 
  7.25     (6) one representative from a Minnesota postsecondary 
  7.26  research institution; 
  7.27     (7) one representative from a nonprofit organization 
  7.28  representing producers; 
  7.29     (8) one at-large member; 
  7.30     (9) one representative from the United States Department of 
  7.31  Agriculture; and 
  7.32     (10) one organic consumer representative. 
  7.33  Terms, compensation, and removal of members are governed by 
  7.34  section 15.059, subdivision 6.  The task force must meet at 
  7.35  least twice each year and expires on June 30, 2005. 
  7.36     (d) For the purposes of expanding, improving, and 
  8.1   developing production and marketing of the organic products of 
  8.2   Minnesota agriculture, the commissioner may receive funds from 
  8.3   state and federal sources and spend them, including through 
  8.4   grants or contracts, to assist producers and processors to 
  8.5   achieve certification, to conduct education or marketing 
  8.6   activities, to enter into research and development partnerships, 
  8.7   or to address production or marketing obstacles to the growth 
  8.8   and well-being of the industry. 
  8.9      (e) The commissioner may facilitate the registration of 
  8.10  state organic production and handling operations including those 
  8.11  exempt from organic certification according to Code of Federal 
  8.12  Regulations, title 7, section 205.101, and certification agents 
  8.13  operating within the state. 
  8.14     Sec. 20.  Minnesota Statutes 2002, section 32.01, 
  8.15  subdivision 10, is amended to read: 
  8.16     Subd. 10.  [DAIRY PRODUCT.] "Dairy product" means milk as 
  8.17  defined by Code of Federal Regulations, title 21, cream, any 
  8.18  product or by-product of either, or any commodity among the 
  8.19  principal constituents or ingredients of which is one or a 
  8.20  combination of two or more of them, as determined by standards, 
  8.21  grades, or rules duly adopted by the commissioner.  
  8.22     Sec. 21.  Minnesota Statutes 2002, section 32.21, 
  8.23  subdivision 4, is amended to read: 
  8.24     Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
  8.25  producer, who violates this section is guilty of a misdemeanor 
  8.26  or subject to a civil penalty up to $1,000. 
  8.27     (b) A milk producer may not change milk plants within 30 
  8.28  days, without permission of the commissioner, after receiving 
  8.29  notification from the commissioner under paragraph (c) or (d) 
  8.30  that the milk producer has violated this section. 
  8.31     (c) A milk producer who violates subdivision 3, clause (1), 
  8.32  (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
  8.33  paragraph. 
  8.34     (1) Upon notification of the first violation in a 12-month 
  8.35  period, the producer must meet with the ~~dairy plant field~~ 
  8.36  ~~service representative~~ qualified dairy sanitarian to initiate 
  9.1   corrective action within 30 days. 
  9.2      (2) Upon the second violation within a 12-month period, the 
  9.3   producer is subject to a civil penalty of $300.  The 
  9.4   commissioner shall notify the producer by certified mail stating 
  9.5   the penalty is payable in 30 days, the consequences of failure 
  9.6   to pay the penalty, and the consequences of future violations. 
  9.7      (3) Upon the third violation within a 12-month period, the 
  9.8   producer is subject to an additional civil penalty of $300 and 
  9.9   possible revocation of the producer's permit or certification.  
  9.10  The commissioner shall notify the producer by certified mail 
  9.11  that all civil penalties owed must be paid within 30 days and 
  9.12  that the commissioner is initiating administrative procedures to 
  9.13  revoke the producer's permit or certification to sell milk for 
  9.14  at least 30 days. 
  9.15     (d) The producer's shipment of milk must be immediately 
  9.16  suspended if the producer is identified as an individual source 
  9.17  of milk containing residues causing a bulk load of milk to test 
  9.18  positive in violation of subdivision 3, clause (6) or (7).  The 
  9.19  Grade A or manufacturing grade permit must be converted to 
  9.20  temporary status for not more than 30 days and shipment may 
  9.21  resume only after subsequent milk has been sampled by the 
  9.22  commissioner or the commissioner's agent and found to contain no 
  9.23  residues above established tolerances or safe levels. 
  9.24     The Grade A or manufacturing grade permit may be restored 
  9.25  if the producer completes the "Milk and Dairy Beef Residue 
  9.26  Prevention Protocol" with a licensed veterinarian, displays the 
  9.27  signed certificate in the milkhouse, and sends verification to 
  9.28  the commissioner within the 30-day temporary permit status 
  9.29  period.  If the producer does not comply within the temporary 
  9.30  permit status period, the Grade A or manufacturing grade permit 
  9.31  must be suspended.  A milk producer whose milk supply is in 
  9.32  violation of subdivision 3, clause (6) or (7), and has caused a 
  9.33  bulk load to test positive is subject to clauses (1) to (3) of 
  9.34  this paragraph.  
  9.35     (1) For the first violation in a 12-month period, the 
  9.36  penalty is the value of all milk on the contaminated load plus 
 10.1   any costs associated with the disposition of the contaminated 
 10.2   load.  Future pickups are prohibited until subsequent testing 
 10.3   reveals the milk is free of drug residue.  A farm inspection 
 10.4   must be completed by ~~the plant representative~~ a qualified dairy 
 10.5   sanitarian and the producer to determine the cause of the 
 10.6   residue and actions required to prevent future violations. 
 10.7      (2) For the second violation in a 12-month period, the 
 10.8   penalty is the value of all milk on the contaminated load plus 
 10.9   any costs associated with the disposition of the contaminated 
 10.10  load.  Future pickups are prohibited until subsequent testing 
 10.11  reveals the milk is free of drug residue.  A farm inspection 
 10.12  must be completed by the regulatory agency or its agent to 
 10.13  determine the cause of the residue and actions required to 
 10.14  prevent future violations. 
 10.15     (3) For the third violation in a 12-month period, the 
 10.16  penalty is the value of all milk on the contaminated load plus 
 10.17  any costs associated with the disposition of the contaminated 
 10.18  load.  Future pickups are prohibited until subsequent testing 
 10.19  reveals the milk is free of drug residue.  The commissioner or 
 10.20  the commissioner's agent shall also notify the producer by 
 10.21  certified mail that the commissioner is initiating 
 10.22  administrative procedures to revoke the producer's right to sell 
 10.23  milk for a minimum of 30 days.  
 10.24     (4) If a bulk load of milk tests negative for residues and 
 10.25  there is a positive producer sample on the load, no civil 
 10.26  penalties may be assessed to the producer.  The plant must 
 10.27  report the positive result within 24 hours and reject further 
 10.28  milk shipments from that producer until the producer's milk 
 10.29  tests negative.  A farm inspection must be completed by the 
 10.30  plant representative and the producer to determine the cause of 
 10.31  the residue and actions required to prevent future violations.  
 10.32  The department shall suspend the producer's permit and count the 
 10.33  violation on the producer's record.  The Grade A or 
 10.34  manufacturing grade permit must be converted to temporary status 
 10.35  for not more than 30 days during which time the producer must 
 10.36  review the "Milk and Dairy Beef Residue Prevention Protocol" 
 11.1   with a licensed veterinarian, display the signed certificate in 
 11.2   the milkhouse, and send verification to the commissioner.  If 
 11.3   these conditions are met, the Grade A or manufacturing grade 
 11.4   permit must be reinstated.  If the producer does not comply 
 11.5   within the temporary permit status period, the Grade A or 
 11.6   manufacturing grade permit must be suspended. 
 11.7      (e) A milk producer that has been certified as completing 
 11.8   the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
 11.9   months of the first violation of subdivision 3, clause (7), need 
 11.10  only review the cause of the violation with a field service 
 11.11  representative within three days to maintain Grade A or 
 11.12  manufacturing grade permit and shipping status if all other 
 11.13  requirements of this section are met. 
 11.14     (f) Civil penalties collected under this section must be 
 11.15  deposited in the milk inspection services account established in 
 11.16  this chapter. 
 11.17     Sec. 22.  Minnesota Statutes 2002, section 32.394, 
 11.18  subdivision 4, is amended to read: 
 11.19     Subd. 4.  [RULES.] The commissioner shall by rule 
 11.20  promulgate identity, production and processing standards for 
 11.21  milk, milk products and goat milk which are intended to bear the 
 11.22  Grade A label. 
 11.23     In the exercise of the authority to establish requirements 
 11.24  for Grade A milk, milk products, and goat milk, the commissioner 
 11.25  adopts definitions, standards of identity, and requirements for 
 11.26  production and processing contained in the "~~1999~~ 2001 Grade A 
 11.27  Pasteurized Milk Ordinance" and the "1995 Grade A Condensed and 
 11.28  Dry Milk Ordinance" of the United States Department of Health 
 11.29  and Human Services, in a manner provided for and not in conflict 
 11.30  with law. 
 11.31     Sec. 23.  Minnesota Statutes 2002, section 32.394, 
 11.32  subdivision 8c, is amended to read: 
 11.33     Subd. 8c.  [GRADE A OR MANUFACTURING GRADE RAW MILK.] Grade 
 11.34  A or manufacturing grade raw milk must not have been stored 
 11.35  longer than ~~76~~ 72 hours when it is picked up at the farm by the 
 11.36  receiving plant.  The commissioner or an agent of the 
 12.1   commissioner may waive the ~~76-hour~~ 72-hour time limit in a case 
 12.2   of hardship, emergency, or natural disaster.  On farms permitted 
 12.3   or certified for bulk tank storage, the milk may only be picked 
 12.4   up from approved bulk milk tanks in proper working order. 
 12.5      Sec. 24.  Minnesota Statutes 2002, section 32.415, is 
 12.6   amended to read: 
 12.7      32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
 12.8      (a) The commissioner may adopt rules to provide uniform 
 12.9   quality standards, and producers of milk used for manufacturing 
 12.10  purposes shall conform to the standards contained in Subparts B, 
 12.11  C, D, E, and F of the United States Department of Agriculture 
 12.12  Consumer and Marketing Service Recommended Requirements for Milk 
 12.13  for Manufacturing Purposes and its Production and Processing, as 
 12.14  revised through ~~November 12, 1996~~ June 17, 2002, except that the 
 12.15  commissioner shall develop methods by which producers can comply 
 12.16  with the standards without violation of religious beliefs.  
 12.17     (b) The commissioner shall perform or contract for the 
 12.18  performance of the inspections necessary to implement this 
 12.19  section or shall certify dairy industry personnel to perform the 
 12.20  inspections.  
 12.21     (c) The commissioner and other employees of the department 
 12.22  shall make every reasonable effort to assist producers in 
 12.23  achieving the milk quality standards at minimum cost and to use 
 12.24  the experience and expertise of the University of Minnesota and 
 12.25  the agricultural extension service to assist producers in 
 12.26  achieving the milk quality standards in the most cost-effective 
 12.27  manner.  
 12.28     (d) The commissioner shall consult with producers, 
 12.29  processors, and others involved in the dairy industry in order 
 12.30  to prepare for the implementation of this section including 
 12.31  development of informational and educational materials, 
 12.32  meetings, and other methods of informing producers about the 
 12.33  implementation of standards under this section. 
 12.34     Sec. 25.  Minnesota Statutes 2002, section 35.0661, 
 12.35  subdivision 4, is amended to read: 
 12.36     Subd. 4.  [EXPIRATION.] This section expires July 31, 
 13.1   ~~2003~~ 2005. 
 13.2      Sec. 26.  Minnesota Statutes 2002, section 41A.09, 
 13.3   subdivision 1a, is amended to read: 
 13.4      Subd. 1a.  [ETHANOL PRODUCTION GOAL.] It is a goal of the 
 13.5   state that ethanol production plants in the state attain a total 
 13.6   annual production level of: 
 13.7      (1) 240,000,000 gallons in 2003; 
 13.8      (2) 300,000,000 gallons in 2004; 
 13.9      (3) 360,000,000 gallons in 2005 and 2006; 
 13.10     (4) 420,000,000 gallons in 2007; and 
 13.11     (5) 480,000,000 gallons in 2008 and subsequent years. 
 13.12     Sec. 27.  Minnesota Statutes 2002, section 41D.01, 
 13.13  subdivision 4, is amended to read: 
 13.14     Subd. 4.  [EXPIRATION.] This section expires on June 
 13.15  30, ~~2003~~ 2008. 
 13.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 13.17  following final enactment. 
 13.18     Sec. 28.  Minnesota Statutes 2002, section 97C.605, 
 13.19  subdivision 2c, is amended to read: 
 13.20     Subd. 2c.  [LICENSE EXEMPTIONS.] A person does not need a 
 13.21  turtle seller's license or an angling license: 
 13.22     (1) when buying turtles for resale at a retail outlet; 
 13.23     (2) when buying a turtle at a retail outlet; ~~or~~ 
 13.24     (3) if the person is a nonresident buying a turtle from a 
 13.25  licensed turtle seller for export out of state.  Shipping 
 13.26  documents provided by the turtle seller must accompany each 
 13.27  shipment exported out of state by a nonresident.  Shipping 
 13.28  documents must include:  name, address, city, state, and zip 
 13.29  code of the buyer; number of each species of turtle; and name 
 13.30  and license number of the turtle seller; or 
 13.31     (4) to take, possess, and rent or sell up to 25 turtles for 
 13.32  the purpose of providing the turtles to participants at a 
 13.33  nonprofit turtle race, if the person is a resident under age 
 13.34  18.  The person is responsible for the well-being of the turtles.
 13.35     Sec. 29.  Minnesota Statutes 2002, section 116.07, 
 13.36  subdivision 7, is amended to read: 
 14.1      Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 14.2   LOT PERMITS.] Any Minnesota county board may, by resolution, 
 14.3   with approval of the pollution control agency, assume 
 14.4   responsibility for processing applications for permits required 
 14.5   by the pollution control agency under this section for livestock 
 14.6   feedlots, poultry lots or other animal lots.  The responsibility 
 14.7   for permit application processing, if assumed by a county, may 
 14.8   be delegated by the county board to any appropriate county 
 14.9   officer or employee.  
 14.10     (a) For the purposes of this subdivision, the term 
 14.11  "processing" includes: 
 14.12     (1) the distribution to applicants of forms provided by the 
 14.13  pollution control agency; 
 14.14     (2) the receipt and examination of completed application 
 14.15  forms, and the certification, in writing, to the pollution 
 14.16  control agency either that the animal lot facility for which a 
 14.17  permit is sought by an applicant will comply with applicable 
 14.18  rules and standards, or, if the facility will not comply, the 
 14.19  respects in which a variance would be required for the issuance 
 14.20  of a permit; and 
 14.21     (3) rendering to applicants, upon request, assistance 
 14.22  necessary for the proper completion of an application. 
 14.23     (b) For the purposes of this subdivision, the term 
 14.24  "processing" may include, at the option of the county board, 
 14.25  issuing, denying, modifying, imposing conditions upon, or 
 14.26  revoking permits pursuant to the provisions of this section or 
 14.27  rules promulgated pursuant to it, subject to review, suspension, 
 14.28  and reversal by the pollution control agency.  The pollution 
 14.29  control agency shall, after written notification, have 15 days 
 14.30  to review, suspend, modify, or reverse the issuance of the 
 14.31  permit.  After this period, the action of the county board is 
 14.32  final, subject to appeal as provided in chapter 14.  For permit 
 14.33  applications filed after October 1, 2001, section 15.99 applies 
 14.34  to feedlot permits issued by the agency or a county pursuant to 
 14.35  this subdivision. 
 14.36     (c) For the purpose of administration of rules adopted 
 15.1   under this subdivision, the commissioner and the agency may 
 15.2   provide exceptions for cases where the owner of a feedlot has 
 15.3   specific written plans to close the feedlot within five years.  
 15.4   These exceptions include waiving requirements for major capital 
 15.5   improvements. 
 15.6      (d) For purposes of this subdivision, a discharge caused by 
 15.7   an extraordinary natural event such as a precipitation event of 
 15.8   greater magnitude than the 25-year, 24-hour event, tornado, or 
 15.9   flood in excess of the 100-year flood is not a "direct discharge 
 15.10  of pollutants." 
 15.11     (e) In adopting and enforcing rules under this subdivision, 
 15.12  the commissioner shall cooperate closely with other governmental 
 15.13  agencies. 
 15.14     (f) The pollution control agency shall work with the 
 15.15  Minnesota extension service, the department of agriculture, the 
 15.16  board of water and soil resources, producer groups, local units 
 15.17  of government, as well as with appropriate federal agencies such 
 15.18  as the Natural Resources Conservation Service and the Farm 
 15.19  Service Agency, to notify and educate producers of rules under 
 15.20  this subdivision at the time the rules are being developed and 
 15.21  adopted and at least every two years thereafter. 
 15.22     (g) The pollution control agency shall adopt rules 
 15.23  governing the issuance and denial of permits for livestock 
 15.24  feedlots, poultry lots or other animal lots pursuant to this 
 15.25  section.  Pastures are exempt from the rules authorized under 
 15.26  this paragraph.  A feedlot permit is not required for livestock 
 15.27  feedlots with more than ten but less than 50 animal units; 
 15.28  provided they are not in shoreland areas.  A livestock feedlot 
 15.29  permit does not become required solely because of a change in 
 15.30  the ownership of the buildings, grounds, or feedlot.  These 
 15.31  rules apply both to permits issued by counties and to permits 
 15.32  issued by the pollution control agency directly.  
 15.33     (h) The pollution control agency shall exercise supervising 
 15.34  authority with respect to the processing of animal lot permit 
 15.35  applications by a county. 
 15.36     (i) Any new rules or amendments to existing rules proposed 
 16.1   under the authority granted in this subdivision, or to implement 
 16.2   new fees on animal feedlots, must be submitted to the members of 
 16.3   legislative policy and finance committees with jurisdiction over 
 16.4   agriculture and the environment prior to final adoption.  The 
 16.5   rules must not become effective until 90 days after the proposed 
 16.6   rules are submitted to the members.  
 16.7      (j) Until new rules are adopted that provide for plans for 
 16.8   manure storage structures, any plans for a liquid manure storage 
 16.9   structure must be prepared or approved by a registered 
 16.10  professional engineer or a United States Department of 
 16.11  Agriculture, Natural Resources Conservation Service employee. 
 16.12     (k) A county may adopt by ordinance standards for animal 
 16.13  feedlots that are more stringent than standards in pollution 
 16.14  control agency rules. 
 16.15     (l) After January 1, 2001, a county that has not accepted 
 16.16  delegation of the feedlot permit program must hold a public 
 16.17  meeting prior to the agency issuing a feedlot permit for a 
 16.18  feedlot facility with 300 or more animal units, unless another 
 16.19  public meeting has been held with regard to the feedlot facility 
 16.20  to be permitted. 
 16.21     (m) After the proposed rules published in the State 
 16.22  Register, volume 24, number 25, are finally adopted, the agency 
 16.23  may not impose additional conditions as a part of a feedlot 
 16.24  permit, unless specifically required by law or agreed to by the 
 16.25  feedlot operator. 
 16.26     (n) For the purposes of feedlot permitting, a discharge 
 16.27  from land-applied manure or a manure stockpile that is managed 
 16.28  according to agency rule must not be subject to a fine for a 
 16.29  discharge violation.  
 16.30     (o) For the purposes of feedlot permitting, manure that is 
 16.31  land applied, or a manure stockpile that is managed according to 
 16.32  agency rule, must not be considered a discharge into waters of 
 16.33  the state, unless the discharge is to waters of the state, as 
 16.34  defined by section 103G.005, subdivision 17, except type 1 or 
 16.35  type 2 wetlands, as defined in section 103G.005, subdivision 
 16.36  17b, and does not meet discharge standards established for 
 17.1   feedlots under agency rule. 
 17.2      (p) Unless the upgrade is needed to correct an immediate 
 17.3   public health threat under section 145A.04, subdivision 8, or 
 17.4   the facility is determined to be a concentrated animal feeding 
 17.5   operation under Code of Federal Regulations, title 40, section 
 17.6   122.23, in effect on April 15, 2003, the agency may not require 
 17.7   a feedlot operator: 
 17.8      (1) to spend more than $3,000 to upgrade an existing 
 17.9   feedlot with less than 300 animal units unless cost-share money 
 17.10  is available to the feedlot operator for 75 percent of the cost 
 17.11  of the upgrade; or 
 17.12     (2) to spend more than $10,000 to upgrade an existing 
 17.13  feedlot with between 300 and 500 animal units, unless cost-share 
 17.14  money is available to the feedlot operator for 75 percent of the 
 17.15  cost of the upgrade or $50,000, whichever is less. 
 17.16     (q) For the purposes of this section, "pastures" means 
 17.17  areas, including winter feeding areas as part of a grazing area, 
 17.18  where grass or other growing plants are used for grazing and 
 17.19  where the concentration of animals allows a vegetative cover to 
 17.20  be maintained during the growing season except that vegetative 
 17.21  cover is not required: 
 17.22     (1) in the immediate vicinity of supplemental feeding or 
 17.23  watering devices; 
 17.24     (2) in associated corrals and chutes where livestock are 
 17.25  gathered for the purpose of sorting, veterinary services, 
 17.26  loading and unloading trucks and trailers, and other necessary 
 17.27  activities related to good animal husbandry practices; and 
 17.28     (3) in associated livestock access lanes used to convey 
 17.29  livestock to and from areas of the pasture. 
 17.30     Sec. 30.  Minnesota Statutes 2002, section 239.791, 
 17.31  subdivision 1, is amended to read: 
 17.32     Subdivision 1.  [MINIMUM ~~OXYGEN~~ ETHANOL CONTENT REQUIRED.] 
 17.33  (a) Except as provided in subdivisions 10 to 14, a person 
 17.34  responsible for the product shall ~~comply with the following~~ 
 17.35  ~~requirements:~~ 
 17.36     ~~(a) After October 1, 1995, gasoline sold or offered for~~ 
 18.1   ~~sale at any time in a carbon monoxide control area must contain~~ 
 18.2   ~~at least 2.7 percent oxygen by weight.~~ 
 18.3      ~~(b) After October 1, 1997,~~ ensure that all gasoline sold or 
 18.4   offered for sale in Minnesota must contain at least ~~2.7~~ 10.0 
 18.5   percent ~~oxygen~~ denatured ethanol by ~~weight~~ volume. 
 18.6      ~~(c) For the purposes of this subdivision, the oxygenates~~ 
 18.7   ~~listed in section 239.761, subdivision 6, paragraph (b), shall~~ 
 18.8   ~~not be included in calculating the oxygen content of the~~ 
 18.9   ~~gasoline.~~ 
 18.10     (b) For purposes of enforcing the minimum ethanol 
 18.11  requirement of paragraph (a), a gasoline/ethanol blend will be 
 18.12  construed to be in compliance if the ethanol content, exclusive 
 18.13  of denaturants and permitted contaminants, comprises not less 
 18.14  than 9.2 percent by volume and not more than 10.0 percent by 
 18.15  volume of the blend as determined by an appropriate United 
 18.16  States Environment Protection Agency of American Society of 
 18.17  Testing Materials standard method of analysis of alcohol/ether 
 18.18  content in motor fuels. 
 18.19     Sec. 31.  Minnesota Statutes 2002, section 500.221, 
 18.20  subdivision 2, is amended to read: 
 18.21     Subd. 2.  [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as 
 18.22  hereinafter provided, no natural person shall acquire directly 
 18.23  or indirectly any interest in agricultural land unless the 
 18.24  person is a citizen of the United States or a permanent resident 
 18.25  alien of the United States.  In addition to the restrictions in 
 18.26  section 500.24, no corporation, partnership, limited 
 18.27  partnership, trustee, or other business entity shall directly or 
 18.28  indirectly, acquire or otherwise obtain any interest, whether 
 18.29  legal, beneficial or otherwise, in any title to agricultural 
 18.30  land unless at least 80 percent of each class of stock issued 
 18.31  and outstanding or 80 percent of the ultimate beneficial 
 18.32  interest of the entity is held directly or indirectly by 
 18.33  citizens of the United States or permanent resident aliens.  
 18.34  This section shall not apply:  
 18.35     (1) to agricultural land that may be acquired by devise, 
 18.36  inheritance, as security for indebtedness, by process of law in 
 19.1   the collection of debts, or by any procedure for the enforcement 
 19.2   of a lien or claim thereon, whether created by mortgage or 
 19.3   otherwise.  All agricultural land acquired in the collection of 
 19.4   debts or by the enforcement of a lien or claim shall be disposed 
 19.5   of within three years after acquiring ownership; 
 19.6      (2) to citizens or subjects of a foreign country whose 
 19.7   rights to hold land are secured by treaty; 
 19.8      (3) to lands used for transportation purposes by a common 
 19.9   carrier, as defined in section 218.011, subdivision 10; 
 19.10     (4) to lands or interests in lands acquired for use in 
 19.11  connection with (i) the production of timber and forestry 
 19.12  products by a corporation organized under the laws of Minnesota, 
 19.13  or (ii) mining and mineral processing operations.  Pending the 
 19.14  development of agricultural land for the production of timber 
 19.15  and forestry products or mining purposes the land may not be 
 19.16  used for farming except under lease to a family farm, a family 
 19.17  farm corporation or an authorized farm corporation; 
 19.18     (5) to agricultural land operated for research or 
 19.19  experimental purposes if the ownership of the agricultural land 
 19.20  is incidental to the research or experimental objectives of the 
 19.21  person or business entity and the total acreage owned by the 
 19.22  person or business entity does not exceed the acreage owned on 
 19.23  May 27, 1977; 
 19.24     (6) to the purchase of any tract of 40 acres or less for 
 19.25  facilities incidental to pipeline operation by a company 
 19.26  operating a pipeline as defined in section 116I.01, subdivision 
 19.27  3; ~~or~~ 
 19.28     (7) to agricultural land and land capable of being used as 
 19.29  farmland in vegetable processing operations that is reasonably 
 19.30  necessary to meet the requirements of pollution control law or 
 19.31  rules; or 
 19.32     (8) to an interest in agricultural land held on the 
 19.33  effective date of this section by a natural person with a 
 19.34  nonimmigrant treaty investment visa, pursuant to United States 
 19.35  Code, title 8, section 1101(a)15(E)(ii), if, within five years 
 19.36  after the effective date of this section, the person: 
 20.1      (i) disposes of all agricultural land held; or 
 20.2      (ii) becomes a permanent resident alien of the United 
 20.3   States or a United States citizen. 
 20.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.5   following final enactment. 
 20.6      Sec. 32.  [REPEALER.] 
 20.7      Subdivision 1.  [ANAPLASMOSIS TESTING REQUIREMENT.] 
 20.8   Minnesota Statutes 2002, section 35.251, is repealed. 
 20.9      Subd. 2.  [RELATED RULES.] Minnesota Rules, parts 
 20.10  1700.0800; 1700.1000; 1700.1300; 1705.0550; 1705.0560; 
 20.11  1705.0570; 1705.0580; 1705.0590; 1705.0600; 1705.0610; 
 20.12  1705.0630; and 1715.1430, are repealed. 
 20.13     Sec. 33.  [REPEALER.] 
 20.14     Minnesota Statutes 2002, sections 31.92, subdivisions 2a 
 20.15  and 5; 31.93; 31.95; 32.391, subdivisions 1a, 1b, and 1c, are 
 20.16  repealed. 
 20.17     Sec. 34.  [EFFECTIVE DATE.] 
 20.18     Section 1 is effective August 1, 2004.  Sections 25 and 32 
 20.19  are effective the day following final enactment.