Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1986, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1986
CHAPTER 398-H.F.No. 1599
An act relating to agriculture; establishing the rural
finance administration; authorizing the sale of state
bonds; ratifying and approving an interstate compact
on agricultural grain marketing; authorizing
development of a plan for a memorial to Native
Americans; establishing a mediation procedure;
re-enacting an interest buydown program; authorizing
certain deficiency judgments; prescribing a procedure
to determine the amount of certain agricultural
deficiency judgments; providing for farm advocate
guidelines; reactivating the data collection task
force; authorizing additional interest payments to
certain family farm security program sellers;
increasing the allowable width of certain trucks;
authorizing trucks hauling sugar beets or potatoes to
be overweight during certain periods; declaring crop
ownership; prescribing a procedure for planting crop
owners to recover crop value; providing for a lien;
prescribing satisfaction and enforcement of liens;
modifying venue to recover possession of personal
property; allowing designation, sale and redemption of
an agricultural homestead that is executed on and sold
as part of other property; allowing designation, sale,
and redemption of a homestead foreclosed on or part of
other property; establishing filing requirements,
enforcement, and priority of veterinarian's liens;
declaring state policy relating to wild rice;
increasing the homestead exemption to 160 acres;
exempting agricultural property for certain purposes;
providing certain rights of first refusal;
establishing a legal services support program;
protecting certain conservation practices; changing
the agricultural land preservation pilot program;
protecting certain rights-of-way from erosion;
changing certain variances requiring a study;
authorizing certain soil and water purification tests;
appropriating money and authorizing issuance of bonds;
excluding certain capital gains; amending Minnesota
Statutes 1984, sections 138.585, by adding a
subdivision; 160.27, subdivision 5; 169.01,
subdivision 7; 169.80, subdivision 1; 169.81,
subdivisions 2 and 3; 169.825, subdivisions 8, 10, 11,
and by adding a subdivision; 169.832, by adding a
subdivision; 169.86, subdivisions 2 and 5; 290.08, by
adding a subdivision; 336.9-501; 480.24, by adding a
subdivision; 480.242, subdivision 2; 500.24, by adding
subdivisions; 510.02; 514.92; 542.06; 572.33,
subdivision 1, and by adding a subdivision; 572.35;
580.23, subdivision 1; 581.09; Minnesota Statutes 1985
Supplement, sections 40.26; 92.50, subdivision 1;
92.501, subdivisions 1 and 2; 160.232; 168.013,
subdivision 1e; 169.862; 221.033, subdivision 3;
256.73, subdivision 2; 290.01, subdivision 20b;
290.091, subdivision 2; 290.491; 473H.10, subdivision
3; Laws 1985, chapter 19, section 2, subdivision 2,
and by adding a subdivision, and section 6,
subdivision 6; proposing coding for new law in
Minnesota Statutes, chapters 17; 40A; 116; 222; 273;
480; 514; 550; 557; 559; 572; 580; 581; 582; and 583;
proposing coding for new law as Minnesota Statutes,
chapters 41B; and 236A; repealing Minnesota Statutes
1984, sections 561.11; 561.12; 561.13; 561.14; 561.15;
561.16; and 582.04.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MEDIATION
Section 1. Minnesota Statutes 1984, section 336.9-501, is
amended to read:
336.9-501 [DEFAULT; PROCEDURE WHEN SECURITY AGREEMENT
COVERS BOTH REAL AND PERSONAL PROPERTY.]
(1) When a debtor is in default under a security agreement,
a secured party has the rights and remedies provided in this
part and except as limited by subsection (3) those provided in
the security agreement. He may reduce his claim to judgment,
foreclose, or otherwise enforce the security interest by any
available judicial procedure. If the collateral is documents
the secured party may proceed either as to the documents or as
to the goods covered thereby. A secured party in possession has
the rights, remedies, and duties provided in section 336.9-207.
The rights and remedies referred to in this subsection are
cumulative.
(2) After default, the debtor has the rights and remedies
provided in this part, those provided in the security agreement,
and those provided in section 336.9-207.
(3) To the extent that they give rights to the debtor and
impose duties on the secured party, the rules stated in the
subsections referred to below may not be waived or varied except
as provided with respect to compulsory disposition of collateral
(subsection (3) of section 336.9-504 and section 336.9-505) and
with respect to redemption of collateral (section 336.9-506) but
the parties may by agreement determine the standards by which
the fulfillment of these rights and duties is to be measured if
such standards are not manifestly unreasonable:
(a) Subsection (2) of section 336.9-502 and subsection (2)
of section 336.9-504 insofar as they require accounting for
surplus proceeds of collateral;
(b) Subsection (3) of section 336.9-504 and subsection (1)
of section 336.9-505 which deal with disposition of collateral;
(c) Subsection (2) of section 336.9-505 which deals with
acceptance of collateral as discharge of obligation;
(d) Section 336.9-506 which deals with redemption of
collateral; and
(e) Subsection (1) of section 336.9-507 which deals with
the secured party's liability for failure to comply with this
part.
(4) If the security agreement covers both real and personal
property, the secured party may proceed under this part as to
the personal property or he may proceed as to both the real and
the personal property in accordance with his rights and remedies
in respect of the real property in which case the provisions of
this part do not apply.
(5) When a secured party has reduced his claim to judgment
the lien of any levy which may be made upon his collateral by
virtue of any execution based upon the judgment shall relate
back to the date of the perfection of the security interest in
such collateral. A judicial sale, pursuant to such execution,
is a foreclosure of the security interest by judicial procedure
within the meaning of this section, and the secured party may
purchase at the sale and thereafter hold the collateral free of
any other requirements of this article.
(6) A person may not begin to enforce a security interest
in collateral that is agricultural property subject to sections
5 to 17 that has secured a debt of more than $5,000 unless: a
mediation notice under subsection (7) is served on the debtor
and a copy filed with the director; and the debtor and creditor
have completed mediation under sections 5 to 17.
(7) A mediation notice under subsection (6) must contain
the following notice with the blanks properly filled in.
"TO: ....(Name of Debtor)....
YOU HAVE DEFAULTED ON THE ....(Debt in Default).... SECURED
BY AGRICULTURAL PROPERTY DESCRIBED AS ....(Reasonable
Description of Agricultural Property Collateral)....
AS A SECURED PARTY, ....(Name of Secured Party).... INTENDS
TO ENFORCE THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL
PROPERTY DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR
OBTAINING A COURT JUDGMENT AGAINST THE PROPERTY.
YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR
MEDIATION. IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE A CREDIT ANALYST TO
HELP YOU TO PREPARE FINANCIAL INFORMATION. MEDIATION WILL
ATTEMPT TO ARRIVE AT AN AGREEMENT FOR HANDLING FUTURE FINANCIAL
RELATIONS.
TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A
MEDIATION REQUEST WITH THE DIRECTOR ....(Date of 14 Days after
Service of the Mediation Notice).... THE MEDIATION REQUEST FORM
IS AVAILABLE AT ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE.
FROM: ....(Name and Address of Secured Party)...."
Sec. 2. [550.365] [MEDIATION NOTICE AND CONDITIONS FOR
AGRICULTURAL PROPERTY.]
Subdivision 1. [REQUIREMENT.] A person may not attach,
execute on, levy on, or seize agricultural property subject to
sections 5 to 17 that has secured a debt of more than $5,000
unless: (1) a mediation notice is served on the judgment debtor
and a copy filed with the director; and (2) the debtor and
creditor have completed mediation under sections 5 to 17.
Subd. 2. [CONTENTS.] A mediation notice must contain the
following notice with the blanks properly filled in.
"TO: ....(Name of Judgment Debtor)....
A JUDGMENT WAS ORDERED AGAINST YOU BY ....(Name of
Court).... ON ....(Date of Judgment).
AS A JUDGMENT CREDITOR, ....(Name of Judgment Creditor)....
INTENDS TO TAKE ACTION AGAINST THE AGRICULTURAL PROPERTY
DESCRIBED AS ....(Description of Agricultural Property).... TO
SATISFY THE JUDGMENT.
YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR
MEDIATION. IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE A CREDIT ANALYST TO
HELP YOU PREPARE FINANCIAL INFORMATION. MEDIATION WILL ATTEMPT
TO ARRIVE AT AN AGREEMENT FOR HANDLING FUTURE FINANCIAL
RELATIONS.
TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A
MEDIATION REQUEST WITH THE DIRECTOR ....(Date of 14 Days after
Service of the Mediation Notice).... THE MEDIATION REQUEST FORM
IS AVAILABLE AT ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE.
FROM: ....(Name and Address of Judgment Creditor)...."
Sec. 3. [559.209] [MEDIATION NOTICE AND CONDITIONS FOR
AGRICULTURAL PROPERTY.]
Subdivision 1. [REQUIREMENT.] A person may not begin to
terminate a contract for deed under section 559.21 to purchase
agricultural property subject to sections 5 to 17 that secured a
debt of more than $5,000 unless: (1) a mediation notice is
served on the contract for deed purchaser and a copy filed with
the director; and (2) the contract for deed vendor and purchaser
have completed mediation under sections 5 to 17.
Subd. 2. [CONTENTS.] A mediation notice must contain the
following notice with the blanks properly filled in.
"TO: ....(Name of Contract for Deed Purchaser)....
YOU HAVE DEFAULTED ON THE CONTRACT FOR DEED OF THE
AGRICULTURAL PROPERTY DESCRIBED AS ....(Size and Reasonable
Location of Property, Not Legal Description)....
AS THE CONTRACT FOR DEED VENDOR, ....(Contract for Deed
Vendor).... INTENDS TO TERMINATE THE CONTRACT AND TAKE BACK THE
PROPERTY.
YOU HAVE THE RIGHT TO HAVE THE CONTRACT FOR DEED DEBT
REVIEWED FOR MEDIATION. IF YOU PARTICIPATE IN MEDIATION, THE
DIRECTOR OF THE AGRICULTURAL EXTENSION SERVICE WILL PROVIDE A
CREDIT ANALYST TO HELP YOU PREPARE FINANCIAL INFORMATION.
MEDIATION WILL ATTEMPT TO ARRIVE AT AN AGREEMENT FOR HANDLING
FUTURE FINANCIAL RELATIONS.
TO HAVE THE CONTRACT FOR DEED DEBT REVIEWED FOR MEDIATION
YOU MUST FILE A MEDIATION REQUEST WITH THE DIRECTOR BY ....(Date
of 14 Days after Service of the Mediation Notice).... THE
MEDIATION REQUEST FORM IS AVAILABLE AT ANY COUNTY RECORDER'S OR
COUNTY EXTENSION OFFICE.
FROM: ....(Name and Address of Contract for Deed
Vendor)...."
Sec. 4. [581.015] [MEDIATION NOTICE AND CONDITIONS FOR
AGRICULTURAL PROPERTY.]
Subdivision 1. [REQUIREMENT.] A person may not begin a
proceeding under this chapter to foreclose a mortgage on
agricultural property subject to sections 5 to 17 that has a
secured debt of more than $5,000 unless: (1) a mediation notice
is served on the mortgagor and a copy is filed with the
director; and (2) the mortgagor and mortgagee have completed
mediation under sections 5 to 17.
Subd. 2. [CONTENTS.] A mediation notice must contain the
following notice with the blanks properly filled in.
"TO: ....(Name of Record Owner)....
YOU HAVE DEFAULTED ON THE MORTGAGE OF THE AGRICULTURAL
PROPERTY DESCRIBED AS ....(Size and Reasonable Location, Not
Legal Description)....
AS HOLDER OF THE MORTGAGE, ....(Name of Holder of
Mortgage).... INTENDS TO FORECLOSE ON THE PROPERTY DESCRIBED
ABOVE.
YOU HAVE THE RIGHT TO HAVE THE MORTGAGE DEBT REVIEWED FOR
MEDIATION. IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE A CREDIT ANALYST TO
HELP YOU PREPARE FINANCIAL INFORMATION. MEDIATION WILL ATTEMPT
TO ARRIVE AT AN AGREEMENT FOR HANDLING FUTURE FINANCIAL
RELATIONS.
TO HAVE THE MORTGAGE DEBT REVIEWED FOR MEDIATION YOU MUST
FILE A MEDIATION REQUEST WITH THE DIRECTOR ....(Date of 14 Days
after Service of the Mediation Notice).... THE MEDIATION
REQUEST FORM IS AVAILABLE AT ANY COUNTY RECORDER'S OR COUNTY
EXTENSION OFFICE.
FROM: ....(Name and Address of Holder of Mortgage)...."
Sec. 5. [583.20] [CITATION.]
Sections 5 to 17 may be cited as the "farmer-lender
mediation act."
Sec. 6. [583.21] [LEGISLATIVE FINDINGS.]
The legislature finds that the agricultural sector of the
state's economy is under severe financial stress due to low farm
commodity prices, continuing high interest rates, and reduced
net farm income. The suffering agricultural economy adversely
affects economic conditions for all other businesses in rural
communities as well. Thousands of this state's farmers are
unable to meet current payments of interest and principal
payable on mortgages and other loan and land contracts and are
threatened with the loss of their farmland, equipment, crops,
and livestock through mortgage and lien foreclosures,
cancellation of contracts for deed, and other collection
actions. The agricultural economic emergency requires an
orderly process with state assistance to adjust agricultural
indebtedness to prevent civil unrest and to preserve the general
welfare and fiscal integrity of the state.
Sec. 7. [583.22] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 7 to 17.
Subd. 2. [AGRICULTURAL PROPERTY.] "Agricultural property"
means real property that is principally used for farming as
defined in section 500.24, subdivision 2, paragraph (a), and
raising poultry, and personal property that is used as security
to finance a farm operation or used as part of a farm operation
including equipment, crops, livestock, and proceeds of the
security. "Agricultural property" shall also include
agriculturally related businesses as defined by the commission.
Subd. 3. [COMMISSION.] "Commission" means the
commissioners of agriculture, finance, and commerce.
Subd. 4. [CREDITOR.] "Creditor" means the holder of a
mortgage on agricultural property, a vendor of a contract for
deed of agricultural property, a person with a lien or security
interest in agricultural property, or a judgment creditor with a
judgment against a debtor with agricultural property.
Subd. 5. [DIRECTOR.] "Director" means the director of the
agricultural extension service or the director's designee.
Subd. 6. [FILE.] "File" means to deliver by the required
date by certified mail or another method acknowledging receipt.
Subd. 7. [MEDIATOR.] "Mediator" means a farm mediator
appointed by the director.
Subd. 8. [SERVE.] "Serve" means personal service as in a
district court civil action.
Sec. 8. [583.23] [FARM MEDIATION.]
Subdivision 1. [TRAINING.] The director must provide
training and support for mediators.
Subd. 2. [APPOINTMENT.] The director must provide
mediators by contracting with qualified persons experienced in
farm finance, agricultural law, and negotiation.
Subd. 3. [ADMINISTRATION.] The director may appoint a farm
mediation administrator. The administrator and director shall
provide training for farm mediators and credit analysts and
coordinate community legal education programs for farmers.
Sec. 9. [583.24] [APPLICABILITY.]
Subdivision 1. [CREDITORS.] (a) The farmer-lender
mediation act applies to creditors who are:
(1) the United States or an agency of the United States;
(2) corporations, partnerships, and other business
entities; and
(3) individuals.
(b) The farmer-lender mediation act does not apply to
creditors of a debtor described under subdivision 2, paragraph
(b).
Subd. 2. [DEBTORS.] (a) Except as provided in paragraph
(b) the farmer-lender mediation act applies to a debtor who is:
(1) a person operating a family farm as defined in section
500.24, subdivision 2;
(2) a family farm corporation as defined in section 500.24,
subdivision 2;
(3) an authorized farm corporation as defined in section
500.24, subdivision 2; or
(4) an owner of an agriculturally related business.
(b) The farmer-lender mediation act does not apply to a
debtor who owns and leases less than 60 acres with less than
$20,000 in gross sales of agricultural products the preceding
year, except for an owner of an agriculturally related business
as defined by the director.
Sec. 10. [583.25] [VOLUNTARY MEDIATION PROCEEDINGS.]
A debtor that owns agricultural property or a creditor of
the debtor may request mediation of the indebtedness by a farm
mediator by applying to the director. The director shall make
voluntary mediation application forms available at the county
recorder's and county extension office in each county. The
director must evaluate each request and may direct a mediator to
meet with the debtor and creditor to assist in mediation.
Sec. 11. [583.26] [MANDATORY MEDIATION PROCEEDINGS.]
Subdivision 1. [MEDIATION NOTICE.] A creditor desiring to
start a proceeding to enforce a debt against agricultural
property under chapter 580 or 581 or sections 336.9-501 to
336.9-508, to terminate a contract for deed to purchase
agricultural property under section 559.21, or to garnish, levy
on, execute on, seize, or attach agricultural property, must
serve an applicable mediation notice under sections 1, 2, 3, and
4 on the debtor and the director. The creditor may not begin
the proceeding until the creditor and debtor have completed
mediation or as allowed under sections 5 to 17.
Subd. 2. [MEDIATION REQUEST.] (a) A debtor must file a
mediation request form with the director by 14 days after
receiving a mediation notice. The mediation request form must
state all known creditors. The director shall make mediation
request forms available in the county recorder's and county
extension office of each county.
(b) A debtor who fails to file a timely mediation request
waives the right to mediation under the farmer-lender mediation
act. The director shall notify a creditor stating that the
creditor may proceed against the agricultural property because
the debtor has failed to file a mediation request.
(c) If a debtor has not received a mediation notice and is
subject to a proceeding of a creditor enforcing a debt against
agricultural property under chapter 580 or 581 or sections
336.9-501 to 336.9-508, terminating a contract for deed to
purchase agricultural property under section 559.21, or
garnishing, levying on, executing on, seizing, or attaching
agricultural property, the debtor may file a mediation request
with the commission. The mediation request form must indicate
that the debtor has not received a mediation notice.
Subd. 3. [CREDIT ANALYST AND FARM ADVOCATE.] (a) After
receiving a mediation notice, the director shall provide a
credit analyst knowledgeable in agricultural and financial
matters to meet with the debtor and assure that information
relative to the finances of the debtor is prepared for the
initial mediation meeting.
(b) After receiving the mediation notice, the director
shall notify the debtor that a farm advocate may be available
without charge to assist the debtor and the credit analyst.
Subd. 4. [INITIAL MEDIATION MEETING.] (a) By ten days
after receiving a mediation request, the director shall send:
(1) a mediation meeting notice to the debtor; and (2) a
mediation meeting notice and claim form to all known creditors
of the debtor.
(b) The mediation meeting notice must include a time and
place for an initial mediation meeting between the debtor, all
known creditors of the debtor, and a list of three mediators.
An initial mediation meeting must be held within 20 days of the
notice.
(c) Each creditor and the debtor may request the director
to exclude one mediator from the list by sending the director a
notice to such effect within 3 days after receiving the
mediation meeting notice. In the event that requests from the
creditors to remove mediators from the list would result in the
exclusion of all of the remaining mediators the director shall
appoint the mediator not excluded by the creditor owed the
largest debt. In the event that a debtor and creditor request
the same mediator, the director shall appoint that mediator.
Subd. 5. [EFFECT OF MEDIATION MEETING NOTICE.] (a) Except
as provided in paragraph (b), if a creditor receives a mediation
meeting notice under subdivision 4 the creditor and the
creditor's successors in interest may not continue proceedings
to enforce a debt against agricultural property of the debtor
under chapter 580 or 581 or sections 336.9-501 to 336.9-508, to
terminate a contract for deed to purchase agricultural property
under section 559.21, or to garnish, levy on, execute on, seize,
or attach agricultural property. Time periods under and
affecting those procedures stop running until (1) 90 days after
the conclusion of mediation, or (2) a mediation agreement is
reached.
(b) If a creditor is an agency of the United States and
receives a mediation meeting notice under subdivision 4, the
creditor and the creditor's successors in interest may not
continue proceedings to enforce a debt against agricultural
property of the debtor under chapter 580 or 581 or sections
336.9-501 to 336.9-508, to terminate a contract for deed to
purchase agricultural property under section 559.21, or to
garnish, levy on, execute on, seize, or attach agricultural
property. Time periods under and affecting those procedures
stop running until (1) 180 days after the conclusion of
mediation, or (2) a mediation agreement is reached.
Subd. 6. [DUTIES OF MEDIATOR.] At the initial mediation
meeting and subsequent meetings, the mediator shall:
(1) listen to the debtor and the creditors desiring to be
heard;
(2) attempt to mediate between the debtor and the creditors;
(3) advise the debtor and creditors of assistance programs
available;
(4) attempt to arrive at an agreement to fairly adjust,
refinance, or pay the debts; and
(5) advise, counsel, and assist the debtor and creditors in
attempting to arrive at an agreement for the future conduct of
financial relations among them.
Subd. 7. [MEDIATOR LIABILITY AND IMMUNITY.] (a) A mediator
is immune from civil liability for actions within the scope of
the position as mediator. A mediator does not have a duty to
advise a creditor or debtor about the law or to encourage or
assist a debtor or creditor in reserving or establishing legal
rights. This subdivision is an addition to and not a limitation
of immunity otherwise accorded to a mediator under law.
(b) A mediator cannot be examined about a communication or
document, including worknotes, made or used in the course of or
because of mediation under this section and section 12. This
paragraph does not apply to the parties in the dispute in an
application to a court by a party to have a mediated settlement
agreement set aside or reformed. A communication or document
otherwise not privileged does not become privileged because it
is used in the cause of mediation. This paragraph is not
intended to limit the privilege accorded to communication during
mediation by the common law.
Subd. 8. [MEDIATION PERIOD.] The mediator may call
mediation meetings during the mediation period, which is up to
60 days after the initial mediation meeting.
Subd. 9. [MEDIATION AGREEMENT.] (a) If an agreement is
reached among the debtor and creditors the mediator shall draft
a written mediation agreement, have it signed by the creditors,
and, if applicable, submit the agreement to the Minnesota rural
finance administration for approval of debt restructuring.
(b) The debtor and creditors who are parties to the
approved mediation agreement and creditors who have filed claim
forms and have not objected to the mediation agreement:
(1) are bound by the terms of the agreement;
(2) may enforce the mediation agreement as a legal
contract; and
(3) may use the mediation agreement as a defense against an
action contrary to the mediation agreement.
Sec. 12. [583.27] [GOOD FAITH REQUIRED, COURT SUPERVISED
MEDIATION.]
Subdivision 1. [OBLIGATION OF GOOD FAITH.] The parties
must engage in mediation in good faith. Not participating in
good faith includes: (1) a failure on a regular or continuing
basis to attend and participate in mediation sessions without
cause; (2) failure to provide full information regarding the
financial obligations of the parties and other creditors; (3)
failure of the creditor to designate a representative to
participate in the mediation with adequate authority to fully
settle, compromise, or otherwise mediate the matter; (4) lack of
a written statement of debt restructuring alternatives and a
statement of reasons why alternatives are unacceptable to one of
the parties; (5) failure of the creditor to release to the
debtor necessary living and farm operating expenses; or (6)
other similar behavior which evidences lack of good faith by the
party. A failure to agree to reduce, restructure, refinance, or
forgive debt does not, in itself, evidence lack of good faith by
the creditor.
Subd. 2. [LACK OF GOOD FAITH AFFIDAVIT; MEDIATOR'S
RESPONSIBILITY.] If the mediator determines that either party is
not participating in good faith as defined in subdivision 1, the
mediator shall file an affidavit indicating the reasons for the
finding with the agricultural extension service and both parties.
Subd. 3. [CREDITOR'S LACK OF GOOD FAITH; COURT SUPERVISED
MEDIATION.] If the mediator finds the creditor has not
participated in mediation in good faith, the debtor may require
court supervised mandatory mediation by filing the affidavit
with the district court of the county where the property is
located with a request for court supervision of mediation and
filing a copy of the request with the creditor. Upon request
the court shall require both parties to mediate under the
supervision of the court in good faith for a period of not less
than 60 days. All creditor remedies must be suspended during
this period. The court may issue orders necessary to effect
good faith mediation. Following the 60-day period, if the court
finds the creditor has not participated in mediation in good
faith, the court shall by order suspend the creditor's remedies
for an additional period of 180 days. A creditor found by the
mediator not to have participated in good faith shall pay
attorneys' fees and costs of the debtor requesting
court-supervision of mediation or additional suspension of
creditor's remedies.
Subd. 4. [DEBTOR LACK OF GOOD FAITH.] A creditor may
immediately proceed with creditor's remedies upon receipt of a
mediator's affidavit of a debtor's lack of good faith
notwithstanding any other requirements of sections 5 to 17.
Sec. 13. [583.28] [CREDITOR NOT ATTENDING MEDIATION
MEETING.]
Subdivision 1. [FILING AND EFFECT OF CLAIM FORM.] A
creditor that is notified of the initial mediation meeting is
subject to and bound by a mediation agreement if the creditor
does not attend mediation meetings unless the creditor files a
claim form. In lieu of attending a mediation meeting, a
creditor may file a notice of claim and proof of claim on a
claim form with the mediator before the scheduled meeting. By
filing a claim form the creditor agrees to be bound by a
mediation agreement reached at the mediation meeting unless an
objection is filed within the time specified. The mediator must
notify the creditors who have filed claim forms of the terms of
any agreement reached at the farm mediation board meeting.
Subd. 2. [OBJECTIONS TO AGREEMENTS.] A creditor who has
filed a claim form may serve a written objection to the terms of
the agreement on the mediator and the debtor by ten days after
receiving notice of the agreement. If a creditor files an
objection to the terms of an agreement, the mediator may meet
again with debtors and creditors by ten days after receiving the
objection to attempt to reach a new agreement. Notwithstanding
the mediation period under section 11, subdivision 8, if an
objection is filed, the mediator may call mediation meetings
during the ten-day period following receipt of the objection.
Sec. 14. [583.29] [PRIVATE DATA.]
All data regarding the finances of individual debtors and
creditors created, collected, and maintained by the mediators or
the debt restructuring commission are classified as private data
on individuals under section 13.02, subdivision 12, or nonpublic
data under section 13.02, subdivision 9.
Sec. 15. [583.30] [FORMS AND COMPENSATION.]
Subdivision 1. [COMPENSATION.] The director shall set the
compensation of mediators and credit analysts.
Subd. 2. [FORMS.] The director shall adopt voluntary
mediation application, mediation request, and claim forms.
Sec. 16. [583.31] [ENFORCEMENT.]
The mediation agreement must be enforced by the district
court.
Sec. 17. [583.32] [INCONSISTENT LAWS.]
The farmer-lender mediation act has precedence over any
inconsistent or conflicting laws and statutes including chapters
336, 580, and 581, and section 559.21.
Sec. 18. [REPEALER.]
Sections 1 to 17 and Minnesota Statutes, section 336.9-501,
subsections (6) and (7), are repealed on July 1, 1988.
Sec. 19. [EFFECTIVE DATE.]
The article is effective the day following final enactment.
ARTICLE 2
REDEMPTION OF AGRICULTURAL HOMESTEADS
Section 1. [550.175] [EXECUTION ON REAL PROPERTY THAT
INCLUDES HOMESTEAD.]
Subdivision 1. [NOTIFICATION OF HOMESTEAD DESIGNATION.] If
real property is to be sold on execution and the property
contains a portion of the homestead of the debtor, the debtor
must be notified by the executing creditor that the homestead
may be sold and redeemed separately from the remaining
property. The notice in subdivision 2 must be included in the
notice of execution served on the debtor under section 550.19.
Subd. 2. [HOMESTEAD DESIGNATION NOTICE.] The following
notice must be included in the execution notice of real property
containing a homestead that is served on a debtor under section
550.19. The notice must be in 10 point capitalized letters.
"PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE. YOU
MAY DESIGNATE THE AREA OF A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO
THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING
PROPERTY.
YOU MUST PROVIDE THE CREDITOR CAUSING THIS PROPERTY TO BE
SOLD, THE SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE
LEGAL DESCRIPTION OF THE HOMESTEAD YOU HAVE DESIGNATED BY TEN
BUSINESS DAYS BEFORE THE DATE THE PROPERTY IS TO BE SOLD."
Subd. 3. [DESIGNATION OF HOMESTEAD PROPERTY.] The debtor
must designate the legal description of the homestead property
to be sold separately. The homestead property designated may
include any amount of the property. The designation must
conform to local zoning, include the dwelling occupied by the
debtor, and be compact so that it does not unreasonably affect
the value of the remaining property. The debtor must serve a
copy of the designation on the executing creditor, the sheriff,
and the county recorder by ten business days before the sale is
scheduled.
Subd. 4. [SALE OF PROPERTY.] If the sheriff receives a
homestead property designation under subdivision 3, the sheriff
must offer and sell the designated homestead property, and the
remaining property, separately.
Subd. 5. [REDEMPTION.] The debtor may redeem the
designated homestead, the remaining property, or the entire
property including the homestead. The period of redemption for
the designated homestead or the remaining property is the same
as the period of redemption for the entire property including
the designated homestead.
Sec. 2. [550.205] [REDEMPTION OF HOMESTEAD AFTER
FORECLOSURE OR EXECUTION SALE.]
Subdivision 1. [APPLICABILITY.] This section applies to
mortgagors or debtors who have had real property used in
agricultural production executed on or foreclosed and have not
received notices under sections 1 and 3, and is effective until
the redemption period ends.
Subd. 2. [AGREEMENT.] (a) A buyer that purchases real
property used in agricultural production at a foreclosure or
execution sale, and a party with the right to redeem, may agree
to have the homestead redeemed separately. The written
agreement must be recorded and include:
(1) a legal description of the homestead; and
(2) the amount to be paid to redeem the homestead.
(b) The homestead must comply with local zoning
requirements.
Subd. 3. [PETITION.] (a) After a foreclosure or execution
sale of real property used in agricultural production that
contains a homestead, the party entitled to redeem the property
may petition to have the homestead redeemed separately. The
petition must be directed to the district court of the county
where the foreclosure or execution sale was held and include:
(1) a request that the homestead be appraised and redeemed
separately;
(2) a description designating the dwelling occupied by the
mortgagor, and up to 80 acres of the property that conforms to
local zoning and is compact so that it does not unreasonably
affect the value of the remaining property.
(b) The court shall appoint an appraiser to make the
appraisal and have the determination returned to the court
within 30 days after the petition is filed.
Subd. 4. [DETERMINATION OF REDEMPTION COST.] (a) The
district court shall schedule and hold a hearing within 30 days
after receiving the appraiser's determination. The court shall
consider whether redeeming the homestead separately would
unjustly affect the party who purchased the property at the
foreclosure or execution sale. The court may equitably adjust
the size of the homestead. If the petitioner is entitled to
redeem the homestead separately, the court shall determine the
cost of redeeming the designated homestead and the remaining
property. The cost of redeeming the homestead must include:
(1) the appraised value of the homestead;
(2) the interest attributable to the portion of the debt
allocated to the homestead; and
(3) the reasonable appraisal, court, and survey costs.
(b) The order of the court must be made and filed within
five days of the hearing.
Subd. 5. [REDEMPTION.] The party entitled to redeem may
redeem the designated homestead, the remaining property, or the
entire property including the homestead. The period of
redemption is the period for the entire property including the
designated homestead.
Sec. 3. [582.041] [FORECLOSURE OF MORTGAGE THAT INCLUDES
HOMESTEAD.]
Subdivision 1. [NOTIFICATION OF HOMESTEAD DESIGNATION.] If
a mortgage on real property is foreclosed and the property
contains a portion of the homestead of the mortgagor, the
mortgagor must be notified by the foreclosing mortgagee that the
homestead may be sold and redeemed separately from the remaining
property. The notice in subdivision 2 must be included in the
notice of foreclosure served on the mortgagor under section
580.04 or for a foreclosure by action under chapter 581, in the
summons and complaint.
Subd. 2. [HOMESTEAD DESIGNATION NOTICE.] (a) The following
notice must be included in the foreclosure notice of property
containing a homestead that is served on the mortgagor under
section 580.04. The notice must be in 10 point capitalized
letters.
"PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE. YOU
MAY DESIGNATE THE AREA OF A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO
THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING
PROPERTY.
YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY,
THE SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE LEGAL
DESCRIPTION OF THE HOMESTEAD YOU HAVE DESIGNATED BY TEN BUSINESS
DAYS BEFORE THE DATE THE PROPERTY IS TO BE SOLD."
(b) The following notice must be served with the summons
and complaint in an action to foreclose a mortgage of property
containing a homestead under chapter 581. The notice must be in
10 point capitalized letters.
"PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE. YOU
MAY DESIGNATE THE AREA OF A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND UP TO 80 ACRES
OF THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD
PROPERTY MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE
COMPACT SO THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE
REMAINING PROPERTY.
YOU MUST PROVIDE THE COURT WITH A LEGAL DESCRIPTION OF THE
HOMESTEAD YOU HAVE DESIGNATED."
Subd. 3. [DESIGNATION OF HOMESTEAD PROPERTY.] The
mortgagor must designate a legal description of the homestead
property to be sold separately. The homestead property
designated may include any amount of the property. The
designation must conform to local zoning, include the dwelling
occupied by the mortgagor, and be compact so that it does not
unreasonably affect the value of the remaining property. The
mortgagor must serve a copy of the designation on the
foreclosing mortgagee, the sheriff, and the county recorder by
ten business days before the sale is scheduled, or for a
foreclosure by action under chapter 581, a copy of the
designation must be provided to the court.
Subd. 4. [SALE OF PROPERTY.] If the sheriff receives a
homestead property designation under subdivision 3, or is
ordered by the court, the sheriff must offer and sell the
designated homestead property, and the remaining property,
separately.
Subd. 5. [REDEMPTION.] The mortgagor may redeem the
designated homestead, the remaining property, or the entire
property including the homestead. The period of redemption is
the period for the entire property including the designated
homestead.
Sec. 4. [REPEALER.]
Minnesota Statutes 1984, section 582.04, is repealed.
Section 2 is repealed effective August 30, 1987.
Sec. 5. [EFFECTIVE DATE.]
This article is effective the day after final enactment and
applies to all foreclosures or executions on real property that
have foreclosure notices or summons and complaint served on the
mortgagor or execution notices served on the debtor on or after
the effective date.
ARTICLE 3
FAMILY FARM LEGAL ASSISTANCE PROGRAM
Section 1. [480.250] [ADMINISTRATION OF FAMILY FARM LEGAL
ASSISTANCE PROGRAM.]
Subdivision 1. [CONTRACT AND ADMINISTRATION.] The supreme
court shall contract with one or more established nonprofit
corporations to provide a family farmer legal assistance program
for financially distressed state farmers by 60 days after
funding is available. The family farmer legal assistance must
be directed at farm financial problems, including, but not
limited to, bankruptcy, discharge of debt, general
debtor-creditor relations, and tax considerations. The supreme
court may delegate responsibility for administering funds under
the contract to the advisory committee established under section
480.242, subdivision 1.
Subd. 2. [LEGAL ASSISTANCE PROVIDER.] The supreme court
may contract only with a legal assistance provider that:
(1) is established as a nonprofit corporation under chapter
317 and tax exempt under section 501(c)(3) of the Internal
Revenue Code as amended through December 31, 1985;
(2) is organized principally to provide legal assistance;
(3) has a proven record of delivery of effective, high
quality legal assistance;
(4) has experience and demonstrated expertise in addressing
legal issues affecting financially distressed family farmers;
(5) can begin providing delivery of legal assistance to
financially distressed farmers within 30 days after the contract
is awarded; and
(6) can provide legal assistance to farmers throughout the
state.
Subd. 3. [DISTRIBUTION OF FUNDS; LIMITATIONS.] (a) None of
the funds distributed to recipients selected in accordance with
the provisions of this section may be used for activities
promoting nonjudicial changes in the law. Actions precluded
include:
(1) appearance before legislative or administrative
rulemaking bodies for the purpose of promoting changes in
existing law, unless the appearance is requested by a member of
that body; and
(2) preparation or assisting in the preparation of written
statements promoting changes in existing law intended to be
entered into the record of a legislative or rulemaking procedure.
(b) The preceding restrictions limit only those activities
for which contract funding is received and in no way limit the
activities of any attorney acting in a pro bono capacity.
Sec. 2. [480.252] [FAMILY FARM LEGAL ASSISTANCE PROGRAM.]
Subdivision 1. [REQUIREMENTS.] The family farmer legal
support program shall provide:
(1) legal backup and research support to attorneys
throughout the state who represent financially distressed
farmers;
(2) direct legal advice and representation to eligible
farmers in the most effective and efficient manner, giving
special emphasis to enforcement of legal rights affecting large
numbers of farmers;
(3) legal information to individual farmers;
(4) general farm related legal education and training to
farmers, private attorneys, legal services staff, and the public;
(5) an incoming, statewide, toll free telephone line to
provide the advice and referral requirements in this
subdivision; and
(6) legal advice and representation to farmers and small
business operators whose loans are currently held by the Federal
Deposit Insurance Corporation.
Subd. 2. [PRIORITIES.] In meeting the requirements of
subdivision 1, recipients of funds under the family farm legal
support program shall adhere to the following priorities:
(1) provide legal services to eligible persons whose bank
loans are held by the Federal Deposit Insurance Corporation;
(2) provide basic legal information relating to liquidation
of farm property, farm credit, farm foreclosure, repossession of
farm assets, restructuring of farm debt and other farm financial
problems upon request by farmers, state and local officials, and
state-supported farm management advisors;
(3) represent and provide advice to individual eligible
farmers in pursuit of legal remedies relating to liquidation of
farm property, farm credit, farm foreclosure, repossession of
farm assets, restructuring of farm debt, and other farm
financial problems; and
(4) provide legal backup and research support to private
attorneys who are representing farmers in matters relating to
liquidation of farm property, farm credit, farm foreclosure,
repossession of farm assets, restructuring of farm debt, and
other farm financial problems.
Subd. 3. [REPORT.] The legal assistance provider shall
submit a report to the supreme court each six months during the
contract period demonstrating that the requirements in
subdivision 1 have been met.
Subd. 4. [TERMINATION.] A contract under sections 1 to 4
may be terminated by the supreme court, or denied for renewal,
upon reasonable written notice and good cause shown. A contract
under sections 1 to 4 must be terminated if funds are used in a
manner inconsistent with section 1.
Sec. 3. [480.254] [LEGAL ASSISTANCE ELIGIBILITY.]
(a) A person is eligible for legal assistance under section
2 if the person:
(1) is a state resident;
(2) is or has been a farmer, or a family shareholder of a
family farm corporation within the preceding 24 months;
(3) has a debt-to-asset ratio greater than 50 percent;
(4) has a reportable federal adjusted gross income of
$15,000 or less in the previous tax year; and
(5) is financially unable to retain legal representation.
(b) Qualifying farmers and small business operators whose
bank loans are held by the Federal Deposit Insurance Corporation
are eligible for legal assistance under section 2.
Sec. 4. [480.256] [ANNUAL REPORT.]
A legal assistance provider shall submit a report to the
supreme court, the senate committee on agriculture and natural
resources, and the agriculture committee of the house of
representatives by January 15 after each year of funding. The
report must describe the activities and expenses under the
contract during the previous calendar year and a summary of
additional legal representation needed by distressed family
farmers.
Sec. 5. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 4
INTERSTATE COMPACT ON AGRICULTURAL
GRAIN MARKETING
Section 1. [236A.01] [INTERSTATE COMPACT ON AGRICULTURAL
GRAIN MARKETING.]
The state of Minnesota ratifies and approves the following
compact:
Interstate Compact on Agricultural
Grain Marketing
Article I. - Purpose
It is the purpose of this compact to protect, preserve, and
enhance:
(a) the economic and general welfare of citizens of the
joining states engaged in the production and sale of
agricultural grains;
(b) the economies and very existence of local communities
in such states, the economies of which are dependent upon the
production and sale of agricultural grains; and
(c) the continued production of agricultural grains in such
states in quantities necessary to feed the increasing population
of the United States and the world.
Article II. - Definitions
As used in this compact:
(a) "State" means any state of the United States in which
agricultural grains are produced for the markets of the nation
and world.
(b) "Agricultural grains" means wheat, durum, spelt,
triticale, oats, rye, corn, barley, buckwheat, flaxseed,
safflower, sunflower seed, soybeans, sorghum grains, peas, and
beans.
Article III. - Commission
(a) Organization and Management
(1) There is hereby created an agency of the member states
to be known as the Interstate Agricultural Grain Marketing
Commission, hereinafter called the commission. The commission
shall consist of three residents of each member state who shall
have an agricultural background and who shall be appointed as
follows: (i) one member appointed by the governor, who shall
serve at the pleasure of the governor; (ii) one senator
appointed in the manner prescribed by the senate of such state,
except that two senators may be appointed by the Governor of the
State of Nebraska from the unicameral legislature of the state
of Nebraska; and (iii) one member of the house of
representatives appointed in the manner prescribed by the house
of representatives of such state.
The member first appointed by the governor shall serve for a
term of one year and the senator and representative first
appointed shall each serve for a term of two years; thereafter
all members appointed shall serve for two-year terms. The
attorneys general of member states or assistants designated
thereby shall be nonvoting members of the commission.
(2) Each member shall be entitled to one vote. A member
must be present to vote and no voting by proxy shall be
permitted. The commission shall not act unless a majority of
the voting members are present, and no action shall be binding
unless approved by a majority of the total number of voting
members present.
(3) The commission shall be a body corporate of each member
state and shall adopt an official seal to be used as it may
provide.
(4) The commission shall hold an annual meeting and such
other regular meetings as its bylaws may provide and such
special meetings as its executive committee may determine. The
commission bylaws shall specify the dates of the annual and any
other regular meetings, and shall provide for the giving of
notice of annual, regular, and special meetings. Notices of
special meetings shall include the reasons therefor and an
agenda of the items to be considered.
(5) The commission shall elect annually, from among its
voting members, a chairperson, a vice-chairperson, and a
treasurer. The commission shall appoint an executive director
who shall serve at its pleasure, and shall fix the duties and
compensation of such director. The executive director shall be
secretary of the commission. The commission shall make
provision for the bonding of such of its officers and employees
as it may deem appropriate.
(6) Irrespective of the civil service, personnel, or other
merit system laws of any member state, the executive director
shall appoint or discharge such personnel as may be necessary
for the performance of the functions of the commission and shall
fix, with the approval of the commission, their duties and
compensation. The commission bylaws shall provide for personnel
policies and programs. The commission may establish and
maintain, independently of or in conjunction with any one or
more of the member states, a suitable retirement system for its
full-time employees. Employees of the commission shall be
eligible for social security coverage in respect of old age and
survivors insurance provided that the commission takes such
steps as may be necessary pursuant to federal law to participate
in such program of insurance as a governmental agency or unit.
The commission may establish and maintain or participate in such
additional programs of employee benefits as may be appropriate.
The commission may borrow, accept, or contract for the services
of personnel from any state, the United States, or any other
governmental entity.
(7) The commission may accept for any of its purposes and
functions any and all donations and grants of money, equipment,
supplies, materials, and services, conditional or otherwise,
from any governmental entity, and may utilize and dispose of the
same.
(8) The commission may establish one or more offices for
the transacting of its business.
(9) The commission shall adopt bylaws for the conduct of
its business. The commission shall publish its bylaws in
convenient form, and shall file a copy of the bylaws and any
amendments thereto with the appropriate agency or officer in
each of the member states.
(10) The commission annually shall make to the governor and
legislature of each member state a report covering its
activities for the preceding year. Any donation or grant
accepted by the commission or services borrowed shall be
reported in the annual report of the commission, and shall
include the nature, amount, and conditions, if any, of the
donation, gift, grant, or services borrowed and the identity of
the donor or lender. The commission may make additional reports
as it may deem desirable.
(b) Committees
(1) The commission may establish such committees from its
membership as its bylaws may provide for the carrying out of its
functions.
Article IV. - Powers and Duties of Commission
(a) The commission shall conduct comprehensive and
continuing studies and investigations of agricultural grain
marketing practices, procedures, and controls and their
relationship to and effect upon the citizens and economies of
the member states.
(b) The commission shall make recommendations for the
correction of weaknesses and solutions to problems in the
present system of agricultural grain marketing or the
development of alternatives thereto, including the development,
drafting, and recommendation of proposed state or federal
legislation.
(c) The commission is hereby authorized to do all things
necessary and incidental to the administration of its functions
under this compact.
Article V. - Finance
(a) The commission shall submit to the governor of each
member state a budget of its estimated expenditures for such
period as may be required by the laws of that state for
presentation to the legislature thereof.
(b) The money necessary to finance the general operations
of the commission not otherwise provided for in carrying forth
its duties, responsibilities, and powers as stated herein shall
be appropriated to the commission by the member states, when
authorized by the respective legislatures. Appropriations by
member states for the financing of the operations of the
commission in the initial biennium of the compact shall be in
the amount of $50,000 for each member state; thereafter the
total amount of appropriations requested shall be apportioned
among the member states in the manner determined by the
commission. Failure of a member state to provide its share of
financing shall be cause for the state to lose its membership in
the compact.
(c) The commission shall not incur any obligations of any
kind prior to the making of appropriations adequate to meet the
same; nor shall the commission pledge the credit of any of the
member states, except by and with the authority of the member
state.
(d) The commission shall keep accurate accounts of all
receipts and disbursements. The receipts and disbursements of
the commission shall be subject to the audit and accounting
procedures established under its bylaws. However, all receipts
and disbursements of funds handled by the commission shall be
audited yearly by a certified or licensed public accountant and
the report of the audit shall be included in and become part of
the annual report of the commission.
(e) The accounts of the commission shall be open for
inspection at any reasonable time.
Article VI. - Eligible Parties, Entry
Into Force, Withdrawal and Termination
(a) Any agricultural grain marketing state may become a
member of this compact.
(b) This compact shall become effective initially when
enacted into law by any five states prior to July 1, 1988, and
in additional states upon their enactment of the same into law.
(c) Any member state may withdraw from this compact by
enacting a statute repealing the compact, but such withdrawal
shall not become effective until one year after the enactment of
such statute and the notification of the commission thereof by
the governor of the withdrawing state. A withdrawing state
shall be liable for any obligations which it incurred on account
of its membership up to the effective date of withdrawal, and if
the withdrawing state has specifically undertaken or committed
itself to any performance of an obligation extending beyond the
effective date of withdrawal, it shall remain liable to the
extent of such obligation.
(d) This compact shall terminate one year after the
notification of withdrawal by the governor of any member state
which reduces the total membership in the compact to less than
five states.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 5
ASSET EXEMPTION
Section 1. Minnesota Statutes 1985 Supplement, section
256.73, subdivision 2, is amended to read:
Subd. 2. [ALLOWANCE BARRED BY OWNERSHIP OF PROPERTY.]
Ownership by an assistance unit of property as follows is a bar
to any allowance under sections 256.72 to 256.87:
(1) The value of real property other than the homestead,
which when combined with other assets exceeds the limits of
paragraph (2), unless the assistance unit is making a good faith
effort to sell the nonexcludable real property. The time period
for disposal must not exceed nine months and the assistance unit
shall execute an agreement to dispose of the property to repay
assistance received during the nine months up to the amount of
the net sale proceeds. The payment must be made when the
property is sold. If the property is not sold within the
required time or the assistance unit becomes ineligible for any
reason the entire amount received during the nine months is an
overpayment and subject to recovery. For the purposes of this
section "homestead" means the house owned and occupied by the
child, relative or other member of the assistance unit as his
dwelling place, together with the land upon which it is situated
in an area no greater than two contiguous lots in a platted or
laid out city or town or 80 all contiguous acres in rural areas;
or
(2) Personal property of an equity value in excess of
$1,000 for the entire assistance unit, exclusive of personal
property used as the home, one motor vehicle of an equity value
not exceeding $1,500, one burial plot for each member of the
assistance unit, one prepaid burial contract with an equity
value of no more than $1,000 for each member of the assistance
unit, clothing and necessary household furniture and equipment
and other basic maintenance items essential for daily living, in
accordance with rules promulgated by and standards established
by the commissioner of human services.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 6
MINNESOTA RURAL FINANCE ADMINISTRATION
Section 1. [41B.01] [CITATION; PURPOSE.]
Subdivision 1. [CITATION.] This article shall be known as
and may be cited as the "Minnesota rural finance administration
act of 1986."
Subd. 2. [PURPOSE.] This article creates and establishes
the Minnesota rural finance administration and establishes a
program under which state bonds are authorized to be issued and
proceeds of their sale are appropriated under the authority of
article XI, section 5, clause (h) of the Minnesota Constitution,
to develop the state's agricultural resources by extending
credit on real estate security. The purpose of the program and
of the bonds issued to finance or provide security for the
program is to purchase participation interests in loans to be
made available by agricultural lenders to farmers in order to
restructure existing debt and to make available additional
credit to farmers who own or purchase agricultural properties on
terms and conditions not otherwise available from other credit
sources. It is hereby found and declared that there presently
exist in the state economic conditions which have severely
adversely affected the economic viability of farms to the
detriment of the rural economy and to the detriment of the
economy of the state of Minnesota as a whole. It is further
found and declared that as a result of public agricultural
policies, agricultural market conditions, and other causes, the
condition of the farm economy of the state of Minnesota is such
as to jeopardize the continued existence and successful
operation of farms in this state, necessitating the
establishment of the program in this article to provide new
sources of credit on favorable terms and conditions. It is
further found and declared that providing credit for farmers on
favorable terms and conditions will serve and promote the public
welfare by assuring the viability of farm operations, by
preventing erosion of the tax base in rural areas, by reducing
foreclosures on farm property, and by enhancing the financial
stability of farmers and of the businesses which depend on
farmers as customers. It is further found and declared that in
establishing a Minnesota rural finance administration and in
authorizing the programs in this article, the legislature is
acting in all respects for the benefit of the people of the
state of Minnesota to serve the public purpose of improving and
otherwise promoting their health, welfare, and prosperity and
that the Minnesota rural finance administration, as created and
established, is empowered to act on behalf of the people of the
state of Minnesota in serving this public purpose for the
benefit of the general public.
Sec. 2. [41B.02] [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of this article
the terms defined in this section have the meanings given them.
Subd. 2. [ADMINISTRATION.] "Administration" means the
Minnesota rural finance administration created in section 3.
Subd. 3. [FARM.] "Farm" means a family farm as defined in
section 500.24, located in Minnesota.
Subd. 4. [ELIGIBLE AGRICULTURAL LENDER; ELIGIBLE
LENDER.] "Eligible agricultural lender" or "eligible lender"
means an entity of the kind described in section 5, subdivision
6, which enters into an agreement with the administration
providing for the purchase by the administration of
participation interests in eligible agricultural loans
originated and serviced by the qualified agricultural lender.
Subd. 5. [ELIGIBLE BORROWER.] "Eligible borrower" means a
borrower who meets the eligibility criteria in section 3.
Subd. 6. [QUALIFIED AGRICULTURAL LOAN.] "Qualified
agricultural loan" means a loan to an eligible borrower made by
an eligible agricultural lender which the administration
purchases or in which the administration purchases a
participation interest.
Subd. 7. [BONDS.] "Bonds" means bonds, notes, or other
obligations issued by the administration. For the purposes of
section 19, "bonds" also includes bonds or other obligations
issued by the state.
Subd. 8. [SECURITY ACCOUNT.] "Security account" means the
rural finance administration security account established in
section 19, subdivision 5.
Subd. 9. [PRIMARY PRINCIPAL.] "Primary principal" means
that portion of the principal outstanding on a loan covered by
this article that is equal to the current market value of the
property secured by the loan.
Subd. 10. [SECONDARY PRINCIPAL.] "Secondary principal"
means that portion of the principal outstanding on a loan
covered by this article that is in excess of the current market
value of the property secured by the loan.
Subd. 11. [BASIC INTEREST.] "Basic interest" means that
part of interest on primary principal that is payable annually.
Subd. 12. [DEFERRED INTEREST.] "Deferred interest" means
that portion of the interest on primary principal and secondary
principal the payment of which is deferred for the term of the
loan. The deferred interest on primary principal may accrue at
a different rate from the deferred interest on secondary
principal as described in section 5.
Subd. 13. [CURRENT MARKET VALUE.] "Current market value"
means the value determined by an appraisal considering
comparable sales in the area where the real estate is located
and the reasonable productive value of the property based on
past production history. The state and the eligible
agricultural lender must mutually agree on the current market
value.
Subd. 14. [BORROWER.] "Borrower" means the person or
persons liable on a restructured note.
Subd. 15. [ORIGINAL LOAN.] "Original loan" means a loan
prior to restructuring.
Subd. 16. [RESTRUCTURED LOAN.] "Restructured loan" means a
loan after it is modified pursuant to section 5.
Subd. 17. [MARKET RATE.] "Market rate" means an interest
rate based on a formula established in rule and certified each
month by the commissioner of finance.
Sec. 3. [41B.03] [BORROWER ELIGIBILITY CRITERIA.]
To be eligible for a program in this article:
(a) A borrower must be a resident of Minnesota or a
domestic family farm corporation, as defined in section 500.24,
subdivision 2.
(b) The borrower or one of the borrowers must be the
principal operator of the farm.
(c) The borrower or one of the borrowers must have received
at least 50 percent of his or her annual gross income from
farming, and farming must be the principal occupation of the
borrower.
(d) The borrower must have a debt to asset ratio equal to
or greater than 50 percent. In determining this ratio, the
assets must be determined by the current market value of the
assets.
(e) The borrower's projected annual expenses, including
operating expenses, family living, and interest expenses after
the restructuring, must not exceed 95 percent of the borrower's
projected annual income considering prior production history and
projected prices for farm production.
(f) The borrower must be unable to meet projected annual
expenses without restructuring the loan.
(g) The borrower must not previously have received
restructuring assistance pursuant to this article.
Sec. 4. [41B.035] [RURAL FINANCE ADMINISTRATION.]
Subdivision 1. [ESTABLISHMENT.] There is created a public
body corporate and politic to be known as the "Minnesota rural
finance administration," which shall perform the governmental
functions and exercise the sovereign powers delegated to it in
this article in furtherance of the public policies and purposes
declared in section 1. The board of the administration consists
of the commissioners of agriculture, commerce, and finance, the
state auditor, and three public members appointed by the
governor with the advice and consent of the senate. No public
member may reside within the metropolitan area, as defined in
section 473.02, subdivision 5. Each member shall hold office
until a successor has been appointed and has qualified. A
certificate of appointment or reappointment of any member is
conclusive evidence of the proper appointment of the member.
Subd. 2. [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The
membership terms, compensation, removal of members, and filling
of vacancies for the public members of the administration are as
provided in section 15.0575.
Subd. 3. [CHAIRPERSON.] The commissioner of finance is the
chairperson of the board. The commissioner of agriculture is
the vice-chairperson of the board.
Subd. 4. [MANAGEMENT AND CONTROL.] The management and
control of the administration is vested solely in the board in
accordance with this article.
Subd. 5. [BOARD ACTIONS.] The powers of the board are
vested in the members in office from time to time. A majority
of the members of the board, excluding vacancies, constitutes a
quorum for the purpose of conducting its business and exercising
its powers and for all other purposes. Action may be taken by
the board upon a vote of a majority of a quorum present.
Subd. 6. [ADMINISTRATIVE CONTROL.] The administration is
under the administrative control of the commissioner of finance.
Subd. 7. [PERSONAL LIABILITY.] The members and officers of
the administration are not liable personally, either jointly or
severally, for any debt or obligation created or incurred by the
administration.
Sec. 5. [41B.04] [LOAN RESTRUCTURING PROGRAM.]
Subdivision 1. [RESTRUCTURING AUTHORITY.] The
administration may enter into agreements or programs with
eligible agricultural lenders for the restructuring of mortgage
loans on real property located in Minnesota which is farmed by
Minnesota residents, on such terms and conditions as the
administration determines are not inconsistent with this article.
This section governs the programs of the administration.
Subd. 2. [IMPLEMENTATION OF PROGRAM.] The administration
may implement a program to restructure agricultural loans and to
purchase loan participation interests in qualified restructuring
loans made by eligible agricultural lenders to eligible
borrowers. Each such purchase shall be made only upon
determination by or on behalf of the administration that the
loan is a qualified restructuring loan as provided in this
section.
Subd. 3. [CRITERIA.] Loans must comply with the following
criteria:
(a) Each loan must be for the purpose of developing the
state's agricultural resources and must be an extension of
credit on real estate security. The loan may be secured by
eligible security in addition to real estate. The security
interests granted by the eligible borrower must be senior and
prior to any other security interest in the pledged assets.
(b) No loan may be made to finance activities of the
borrower which are not an agricultural use as defined in section
40A.02, subdivision 3.
(c) A participation interest in a restructuring loan may be
purchased by the administration only if the eligible
agricultural lender has determined and has certified to the
administration that the borrower is an eligible borrower who has
the reasonable ability to make timely payment of principal and
interest on the loan when due over the term of the loan. The
eligible agricultural lender shall further certify to the
administration that the loan is a qualified agricultural loan.
Subd. 4. [PROGRAM AVAILABILITY.] The administration shall
exercise its best efforts to assure that credit made available
through the loan restructuring program is made available
throughout the agricultural areas of the state, and that the
number or amount of loans are not unduly concentrated in any one
area of the state.
Subd. 5. [BENEFITS.] The administration shall exercise its
best efforts to assure that the program provides the maximum
feasible benefits to as many eligible borrowers as is reasonably
possible.
Subd. 6. [TYPES OF LENDERS.] Any bank, credit union,
savings and loan association chartered by the state or federal
government, unit of the farm credit system, the federal deposit
insurance corporation, the federal savings and loan insurance
corporation, and any insurance company, fund, or other financial
institution doing business as an agricultural lender within the
state is eligible for consideration as an eligible agricultural
lender if the administration determines that the lender has
sufficient personnel and other resources to efficiently and
properly originate and service the qualified agricultural
loans. Each such eligible agricultural lender shall enter into
one or more agreements with the administration providing for the
origination and servicing of qualified restructuring loans on
the terms and conditions the administration determines to be
appropriate.
Subd. 7. [RESTRUCTURING PROCEDURE.] The eligible
agricultural lender or borrower shall propose restructuring a
loan to the administration. Within 30 days of receiving
adequate information concerning a proposal, the administration
and the eligible lender shall notify the borrower of their
determination of eligibility. An eligible agricultural lender
shall then expeditiously conduct necessary appraisals and draft
the loan restructuring agreement which must be consistent with
this section and documents previously approved by the
administration and eligible lenders. The loan restructuring
agreement must be approved by the eligible lender, the
administration, and the borrower.
An eligible borrower may participate in the restructured
loan or the homestead redemption loan, but not both loans.
Subd. 8. [STATE'S PARTICIPATION.] With respect to loans
that are eligible for restructuring under this article and upon
acceptance by the administration, the administration shall enter
into a participation agreement or other financial arrangement
whereby it shall participate in a restructured loan to the
extent of one quarter of the primary principal or $50,000,
whichever is less, except that the administration may
participate in restructured loans made for the redemption of
homesteads to the extent of one-half of the primary principal or
$25,000, whichever is less. The administration's portion of the
loan must thereafter be protected by the first mortgage held by
the eligible lender to the extent of its participation in the
loan.
Subd. 9. [RESTRUCTURED LOAN AGREEMENT.] (a) All payments
on the primary and secondary principal of the restructured loan,
all payments of interest on the secondary principal, and an
agreed portion of the interest payable to the eligible
agricultural lender on the primary principal must be deferred to
the end of the term of the loan.
(b) A borrower may prepay the restructured loan, with all
primary and secondary principal and interest and deferred
interest at any time without prepayment penalty.
(c) Interest on secondary principal must accrue at a below
market interest rate.
(d) At the conclusion of the term of the restructured loan,
the borrower owes primary principal, secondary principal, and
deferred interest on primary and secondary principal. However,
part of this balloon payment may be forgiven following an
appraisal by the lender and the administration to determine the
current market value of the real estate subject to the
mortgage. If the current market value of the land after
appraisal is less than the amount of debt owed by the borrower
to the lender and administration on this obligation, that
portion of the obligation that exceeds the current market value
of the real property must be forgiven by the lender and the
administration in the following order:
(1) deferred interest on secondary principal;
(2) secondary principal;
(3) deferred interest on primary principal;
(4) primary principal as provided in an agreement between
the administration and the lender; and
(5) accrued but not deferred interest on primary principal.
The debt forgiveness may be combined with a renegotiated
loan on the unforgiven balance due if the borrower is able to
establish that there are reasonable prospects of repayment on a
debt equal to the current market value of real estate at then
existing interest rates. If so, the loan must be reamortized on
terms and conditions acceptable to the lender, the
administration, and the farmer.
Subd. 10. [INTEREST RATE.] The interest rate per annum on
the portion of the restructuring loan represented by the
participation interest purchased by the administration must be
that rate of interest determined by the administration to be
necessary to provide for the timely payment of principal and
interest when due on bonds or other obligations issued by the
administration, and to provide for the reasonable and necessary
costs of issuing, carrying, administering, and securing the
bonds or notes and to pay the costs incurred and to be incurred
by the administration in the implementation of the program. The
interest rate per annum borne by the primary principal portion
of the restructuring loan retained by the eligible agricultural
lender must be a rate of interest approved by the
administration. The administration may specify the points,
fees, and other charges which the eligible agricultural lender
may charge to the eligible borrower.
Subd. 11. [ADMINISTRATION.] The eligible lender shall
administer the loans and shall bear all costs of the loan
administration. Ordinary costs of administration include
appraisals, litigation, abstracts of title, and similar costs.
The administration agrees to share in any other responsibilities
common to a loan participation agreement.
Subd. 12. [ASSIGNABILITY.] Loans restructured under this
section may not be assigned to anyone other than a direct
descendant of the original borrower and the assignee must intend
to engage in the direct operation and management of the farm
which is subject to the mortgage. If such an assignment is
contemplated, the borrower must obtain prior written approval of
the eligible lender and the administration and the assignee
shall thereafter be subject to the same terms and conditions and
events of default as the original borrower. If assigned to some
other party, the eligible agricultural lender may exercise its
foreclosure remedies as provided by its contracts and by law.
Subd. 13. [DEFAULT.] In addition to default caused by
nonpayment of the basic interest on the primary principal, it is
intended that the documents establishing the restructured loans
will include the following conditions, which, if violated,
constitute default.
(a) The borrower must submit an annual operating budget to
the eligible agricultural lender at a time specified by the
lender.
(b) The borrower must submit quarterly, semiannual, and
annual financial statements which must include balance sheets
and income and expense records maintained pursuant to an
acceptable farm record system as specified by the eligible
agricultural lender.
(c) The borrower must comply with capital expenditure
limitations imposed by the eligible agricultural lender.
(d) The borrower must obtain an annual commitment for an
operating loan or assured sources of operating expenses
sufficient to adequately operate the farm.
(e) The eligible agricultural lender may impose other
reasonable requirements to reduce overall risk such as requiring
purchase of crop insurance.
The lender may not waive any default specified in this
subdivision without the consent of the administration.
Subd. 14. [GUARANTEED PAYMENT.] The administration may
enter into agreements with qualified agricultural lenders,
insurance companies, or others insuring or guaranteeing to the
state the payment of all or a portion of qualified agricultural
loans.
Subd. 15. [ADVANCE RESERVATIONS.] The administration may
enter into agreements with eligible agricultural lenders
providing for advance reservations of purchases of participation
interests in restructuring loans, if the agreements provide that
the administration may only purchase participation interests in
restructuring loans pursuant to normal procedure. The
administration may provide in an agreement for special
procedures or requirements designed to meet specific conditions
or requirements.
Subd. 16. [DATA PRIVACY.] Financial information, including
but not limited to credit reports, financial statements, and net
worth calculations, received or prepared by the administration
regarding any administration loan or grant and the name of each
individual who is the recipient of a loan are private data on
individuals, pursuant to section 13.02, subdivision 12.
Sec. 6. [41B.05] [GENERAL POWERS OF THE ADMINISTRATION.]
For the purpose of exercising the specific powers granted
in section 5 and effectuating the other purposes of this article
the administration has the general powers granted in this
section.
(a) It may sue and be sued.
(b) It may have a seal and alter the seal.
(c) It may make, and from time to time, amend and repeal
rules consistent with this article.
(d) It may acquire, hold, and dispose of personal property
for its corporate purposes.
(e) It may enter into agreements, contracts, or other
transactions with any federal or state agency, any person and
any domestic or foreign partnership, corporation, association,
or organization, including contracts or agreements for
administration and implementation of all or part of this article.
(f) It may acquire real property, or an interest therein,
in its own name, by purchase or foreclosure, where such
acquisition is necessary or appropriate.
(g) It may provide general technical services related to
rural finance.
(h) It may provide general consultative assistance services
related to rural finance, and shall make available technical
assistance to potential lenders and applicants to encourage
applications for loans.
(i) It may promote research and development in matters
related to rural finance.
(j) It may enter into agreements with lenders, borrowers,
or the issuers of securities for the purpose of regulating the
development and management of farms financed in whole or in part
by the proceeds of qualified agricultural loans.
(k) It may enter into agreements with other appropriate
federal, state, or local governmental units to foster rural
finance. It may give advance reservations of loan financing as
part of the agreements, with the understanding that the
administration will only approve the loans pursuant to normal
procedures, and may adopt special procedures designed to meet
problems inherent in such programs.
(l) It may undertake and carry out studies and analyses of
rural financing needs within the state and ways of meeting such
needs including: data with respect to geographical
distribution; farm size; the distribution of farm credit needs
according to debt ratios and similar factors; the amount and
quality of available financing and its distribution according to
factors affecting rural financing needs and the meeting thereof;
and may make the results of such studies and analyses available
to the public and may engage in research and disseminate
information on rural finance.
(m) It may survey and investigate the rural financing needs
throughout the state and make recommendations to the governor
and the legislature as to legislation and other measures
necessary or advisable to alleviate any existing shortage in the
state.
(n) It may establish cooperative relationships with such
county and multicounty authorities as may be established and may
develop priorities for the utilization of administration
resources and assistance within a region in cooperation with
county and multicounty authorities.
(o) It may contract with, use, or employ any federal,
state, regional, or local public or private agency or
organization, legal counsel, financial advisors, investment
bankers or others, upon terms it deems necessary or desirable,
to assist in the exercise of any of the powers granted in this
article and to carry out the objectives of this article and may
pay for the services from administration funds.
(p) It may establish cooperative relationships with
counties to develop priorities for the use of administration
resources and assistance within counties and to consider county
plans and programs in the process of setting the priorities.
Sec. 7. [41B.07] [RULES.]
The administration may adopt rules for the efficient
administration of this article. The rules need not be adopted
in compliance with chapter 14.
Sec. 8. [41B.08] [REVENUE BONDS; PURPOSES, TERMS,
APPROVAL.]
Subdivision 1. [BONDS FOR PROGRAM.] The administration
from time to time may issue its negotiable bonds in a principal
amount which, in the opinion of the administration, is necessary
to provide sufficient funds for achieving its purposes including
the making of qualified agricultural loans or the purchase of
interests in those loans, the payment of interest on bonds of
the administration, the establishment of reserves to secure the
bonds, and the payment of all other expenditures of the
administration incident to and necessary or convenient to carry
out its corporate purposes and powers. Bonds of the
administration may be issued as bonds or notes or in any other
form authorized by law.
Subd. 2. [REFUNDING OF BONDS.] The administration from
time to time may issue bonds for the purpose of refunding any
bonds of the administration then outstanding, including the
payment of any redemption premiums thereon and any interest
accrued or to accrue to the redemption date next succeeding the
date of delivery of those refunding bonds. The proceeds of any
refunding bonds may, in the discretion of the administration, be
applied to the purchase or payment at maturity of the bonds to
be refunded, or to the redemption of such outstanding bonds on
the redemption date next succeeding the date of delivery of such
refunding bonds and may, pending such application, be placed in
escrow to be applied to such purchase, retirement, or
redemption. Any such escrowed proceeds, pending such use, may
be invested and reinvested in obligations issued or guaranteed
by the state or the United States or by any agency or
instrumentality thereof, or in certificates of deposit or time
deposits secured in a manner determined by the administration,
maturing at a time or times appropriate to assure the prompt
payment of the principal of and interest and redemption
premiums, if any, on the bonds to be refunded. The income
earned or realized on any such investment may also be applied to
the payment of the bonds to be refunded. After the terms of the
escrow have been fully satisfied, any balance of such proceeds
and any investment income may be returned to the administration
for use by it in any lawful manner. All refunding bonds issued
under the provisions of this subdivision must be issued and
secured in the manner provided by resolution of the
administration.
Subd. 3. [KIND OF BONDS.] All bonds issued under this
section must be negotiable investment securities within the
meaning and for all purposes of the uniform commercial code,
subject only to any provisions of the bonds and notes for
registration. All bonds so issued may be either general
obligations of the administration, secured by its full faith and
credit, and payable out of any money, assets, or revenues of the
administration, subject to the provisions of resolutions or
indentures pledging and appropriating particular money, assets,
or revenues to particular bonds, or limited obligations of the
administration not secured by its full faith and credit, and
payable solely from specified sources or assets.
Subd. 4. [REQUIRED RATING.] No bonds may be issued unless
a rating of "A" or better has been awarded to the bonds by a
national bond rating agency.
Sec. 9. [41B.09] [REVENUE BONDS; RESOLUTIONS AUTHORIZING,
ADDITIONAL TERMS, SALE.]
The bonds of the administration must be authorized by a
resolution or resolutions adopted by the administration, bear
such date or dates, mature at such time or times, bear interest
at such rate or rates, be in such denominations, be in such
form, carry such registration privileges, be executed in such
manner, be payable in lawful money of the United States, at such
place or places within or without the state, and be subject to
such terms of redemption or purchase prior to maturity as the
resolutions or certificates may provide. If, for any reason,
whether existing at the date of issue of any bonds or at the
date of making or purchasing any loan or securities from the
proceeds or after that date, the interest on any bonds is or
becomes subject to federal income taxation, this shall not
impair or affect the validity or the provisions made for the
security of the bonds. The administration may make covenants
and take or cause to be taken actions which are in its judgment
necessary or desirable and possible to comply with conditions
established by federal law or regulations for the exemption of
interest on its obligations. The administration may refrain
from compliance with those conditions if in its judgment this
would serve the purposes and policies set forth in this article
with respect to any particular issue of bonds, unless this would
violate covenants made by the administration. The bonds of the
administration may be sold at public or private sale at a price
or prices determined by the administration. The underwriting
discount, spread, or commission paid or allowed to the
underwriters of the bonds, however, must be an amount not in
excess of the amount determined by the administration to be
reasonable in the light of the risk assumed and the expenses of
issuance, if any, required to be paid by the underwriters.
Sec. 10. [41B.10] [REVENUE BONDS; OPTIONAL RESOLUTION AND
CONTRACT PROVISIONS.]
Any resolution authorizing any bonds or any issue of bonds
may contain provisions, which must be a part of the contract
with the holders of the bonds, as to the matters referred to in
this section.
(a) It may pledge or create a lien on all or any part of
the money or property of the administration and any money held
in trust or otherwise by others to secure the payment of the
bonds or of any issue of bonds, subject to any agreements with
bondholders which exist.
(b) It may provide for the custody, collection, securing,
investment, and payment of any money of the administration.
(c) It may set aside reserves or sinking funds and provide
for their regulation and disposition and may create other
special funds into which any money of the administration may be
deposited.
(d) It may limit the loans and securities to which the
proceeds of sale of bonds may be applied and may pledge
repayments thereon to secure the payment of the notes or bonds
or of any issue of notes or bonds.
(e) It may limit the issuance of additional bonds, the
terms upon which additional bonds may be issued and secured, and
the refunding of outstanding or other bonds.
(f) It may prescribe the procedure, if any, by which the
terms of any contract with bondholders may be amended or
abrogated, the amount of bonds the holders of which must consent
to the amendment or abrogation, and the manner in which that
consent may be given.
(g) It may vest in a trustee or trustees property, rights,
powers, and duties in trust determined by the administration,
which may include any or all of the rights, powers, and duties
of the bondholders, or may limit the rights, powers, and duties
of the trustee.
(h) It may define the acts or omissions to act which
constitute a default in the obligations and duties of the
administration and may provide for the rights and remedies of
the holders of bonds in the event of a default, and provide any
other matters of like or different character, consistent with
the general laws of the state and other provisions of this
article, which in any way affect the security or protection of
the bonds and the rights of the bondholders.
Sec. 11. [41B.11] [PLEDGES.]
Any pledge made by the administration is valid and binding
from the time the pledge is made. The money or property pledged
and later received by the administration is immediately subject
to the lien of the pledge without any physical delivery of the
property or money or further act, and the lien of any pledge is
valid and binding as against all parties having claims of any
kind in tort, contract, or otherwise against the administration,
whether or not those parties have notice of the lien or pledge.
Neither the resolution nor any other instrument by which a
pledge is created need be recorded.
Sec. 12. [41B.12] [REVENUE BONDS; NONLIABILITY OF
INDIVIDUALS.]
Neither the members of the administration nor any person
executing the bonds is liable personally on the bonds or subject
to any personal liability or accountability by reason of their
issuance.
Sec. 13. [41B.13] [REVENUE BONDS; PURCHASE AND
CANCELLATION BY ADMINISTRATION.]
The administration, subject to agreements with bondholders
which may then exist, has power out of any funds available for
the purpose to purchase bonds of the administration at a price
not exceeding (a) if the bonds are then redeemable, the
redemption price then applicable plus accrued interest to the
next interest payment date thereon, or (b) if the bonds are not
redeemable, the redemption price applicable on the first date
after the purchase upon which the bonds become subject to
redemption plus accrued interest to that date.
Sec. 14. [41B.14] [REVENUE BONDS; NONLIABILITY OF STATE.]
The state of Minnesota is not liable on bonds of the
administration issued under section 8 and those bonds are not a
debt of the state. The bonds must contain on their face a
statement to that effect.
Sec. 15. [41B.15] [STATE PLEDGE AGAINST IMPAIRMENT OF
CONTRACTS.]
The state pledges and agrees with the holders of any bonds
issued under section 8, that the state will not limit or alter
the rights vested in the administration to fulfill the terms of
any agreements made with the bondholders, or in any way impair
the rights and remedies of the holders until the bonds, together
with interest on them, with interest on any unpaid installments
of interest, and all costs and expenses in connection with any
action or proceeding by or on behalf of the bondholders, are
fully met and discharged. The administration may include this
pledge and agreement of the state in any agreement with the
holders of bonds issued under section 8.
Sec. 16. [41B.16] [SECURITY ACCOUNT.]
Upon determining that a default may occur in the payment of
principal or interest on any issue of bonds issued under section
8, or if any debt service reserve fund established in connection
with those bonds is drawn upon because the revenues of the
program are not then sufficient to make any payment of the
principal or interest on them, the administration shall certify
those facts to the commissioner of finance and shall request
that the commissioner of finance transfer from the security
account established under section 19, subdivision 5, to accounts
or funds designated by the administration an amount required to
cure the deficiency.
Sec. 17. [41B.17] [POWERS AND DUTIES OF TRUSTEE.]
Subdivision 1. [GENERAL.] The trustee designated in any
indenture or resolution securing an issue of bonds may, and upon
written request of the holders of 25 percent in principal amount
of the notes or bonds then outstanding shall, in the trustee's
own name, subject to the provisions of the indenture or
resolution:
(1) enforce all rights of the bondholders, including the
right to require the administration to collect fees, charges,
interest, and payments on loans or interests therein held by the
administration and eligible securities purchased by it adequate
to carry out any agreement as to, or pledge of, those fees,
charges, and payments, and to require the administration to
carry out any other agreements with the holders of the notes or
bonds and to perform its duties under this article;
(2) bring suit upon the bonds;
(3) require the administration to account as if it were the
trustee of any express trust for the holders of the bonds;
(4) enjoin any acts or things which may be unlawful or in
violation of the rights of holders of the bonds; or
(5) declare all the bonds due and payable, and if all
defaults are made good, then, with the consent of the holders of
25 percent of the principal amount of the bonds then
outstanding, the trustee may annul the declaration and
consequences.
Subd. 2. [ADDITIONAL POWERS.] In addition to the powers in
subdivision 1, the trustee has all of the powers necessary or
appropriate for the exercise of any functions specifically set
forth in this section or incident to the general representation
of bondholders or noteholders in the enforcement and protection
of their rights.
Subd. 3. [VENUE; NOTICE.] The venue of any action or
proceedings brought by a trustee under this article, is in
Ramsey county. Before declaring the principal of bonds due and
payable, the trustee shall first give 30 days notice in writing
to the governor, the administration, and the state treasurer.
Sec. 18. [41B.18] [REVENUE BOND FUND; REPORTS.]
Subdivision 1. [AUTHORITY.] The administration may create
and establish a special fund or funds for the security of one or
more or all series of its bonds, which funds are known as debt
service reserve funds. The administration may pay into each
debt service reserve fund:
(1) any money appropriated by the state only for the
purposes of that fund;
(2) any money transferred from the security fund for the
purposes of that fund;
(3) any proceeds of sale of bonds to the extent provided in
the resolution or indenture authorizing their issuance;
(4) any funds directed to be transferred by the
administration to that debt service reserve fund; and
(5) any other money made available to the administration
only for the purpose of that fund from any other source.
Subd. 2. [USE OF MONEY.] The money held in or credited to
each debt service reserve fund, except as provided in this
section, must be used solely for the payment of the principal of
bonds of the administration as the bonds mature, the purchase of
the bonds, the payment of interest on the bonds, or the payment
of any premium required when the bonds or notes are redeemed
before maturity; provided, that money in a debt service reserve
fund may not be withdrawn at any time in an amount which would
reduce the amount of the fund to less than the amount which the
administration determines to be reasonably necessary for the
purposes of the fund, except for the purpose of paying principal
or interest due on bonds secured by the fund, for the payment of
which other money of the administration is not available.
Subd. 3. [LIMITATION.] If the administration creates a
debt service reserve fund for the security of any series of
bonds, it shall not issue any additional bonds which are
similarly secured if the amount of any of the debt service
reserve funds at the time of issuance does not equal or exceed
the minimum amount, if any, required by the resolution creating
that fund, unless the administration deposits in each fund at
the time of issuance, from the proceeds of the bonds or
otherwise, an amount which, together with the amount then in the
fund, will not be less than the minimum amount required.
Subd. 4. [EXCESS FUNDS.] To the extent consistent with the
resolutions and indentures securing outstanding bonds, the
administration may, at the close of any fiscal year, transfer to
any other fund or account from any debt service reserve fund,
any excess in that fund over the amount deemed by the
administration to be reasonably necessary for the purpose of the
fund. Any excess must be transferred first to the security fund
to the extent of any prior withdrawals from the security fund
which have not previously been restored to the security fund.
Subd. 5. [CONSTRUCTION.] Nothing in this section may be
construed to limit the right of the administration to create and
establish by resolution or indenture other funds or security in
addition to debt service reserve funds which are necessary or
desirable in connection with any bonds or programs.
Subd. 6. [REPORT.] The administration shall submit a
biennial report of its activities, projected activities,
receipts, and expenditures for the next biennium, to the
governor and the legislature on or before January 15 in each
odd-numbered year. The report must include the distribution of
money under each administration program by county. In addition,
the report must include the cost to the administration of the
issuance of its bonds for each issue in the biennium.
Subd. 7. [AUDIT.] The books and records of the
administration are subject to audit by the legislative auditor
in the manner prescribed for other state agencies. The
administration may also employ and contract in its resolutions
and indentures for the employment of public accountants for the
audit of books and records pertaining to any fund.
Sec. 19. [41B.19] [GENERAL OBLIGATION BONDS.]
Subdivision 1. [PROCEDURE.] For the purpose of developing
the state's agricultural resources by providing for the
extension of credit on real estate security and to assure the
timely payment of the principal of and interest on the bonds or
other obligations issued by the rural finance administration,
and upon request of the rural finance administration under
section 8, the commissioner of finance may at the direction of
the administration, issue general obligation bonds of the state
in a principal amount not exceeding $50,000,000. The bonds must
be secured as provided in the Minnesota Constitution, article
XI, section 7, and, except as provided in this section, must be
issued and secured as provided in Minnesota Statutes, section
16A.641. The proceeds of the bonds, except any premium and
accrued interest, must be deposited in the security account
established by this section and used solely for the purposes
specified in this section. The premium and accrued interest, if
any, must be deposited in the the rural renewal bond account in
the state bond fund.
Subd. 2. [TERMS OF BONDS.] Notwithstanding any provision
of section 16A.641 to the contrary, the commissioner of finance
may fix the terms of the bonds as provided in sections 475.54,
subdivision 5a, and 475.56, paragraph (b), and may enter into,
on behalf of the state all agreements deemed necessary for this
purpose, including those authorized to be entered into by
municipalities by that section. The proceeds of the general
obligation bonds may be used to reimburse the commissioner of
finance for the costs of issuance of the bonds and the costs of
development of programs authorized in this article.
Subd. 3. [SALE OF BONDS.] If determined by the
commissioner of finance to be necessary in order to reduce costs
of issuance, to secure a favorable prevailing interest rate, or
to receive the bond proceeds by a specified date, or if the
terms of the bonds are fixed as provided in sections 475.54,
subdivision 5a, and 475.56, paragraph (b), the bonds may be sold
by negotiation and without solicitation of sealed bids.
Subd. 4. [BOND FUND ACCOUNT.] The commissioner of finance
shall maintain in the state bond fund a separate bookkeeping
account designated as the rural renewal bond account, to record
receipts and disbursements of money transferred to the account
to pay bonds issued under this section and to record income from
the investment of the money in the account. The income must be
credited to the account in each fiscal year in an amount equal
to the approximate average return that year on all funds
invested by the commissioner of finance, as determined by the
commissioner of finance, times the average balance in the
account that year.
Subd. 5. [RURAL FINANCE ADMINISTRATION SECURITY
ACCOUNT.] The commissioner of finance shall maintain a separate
state building fund account designated as the rural finance
administration security account, into which must be deposited
the proceeds of the rural renewal general obligation bonds
issued as provided in this section. The commissioner of finance
shall maintain a separate bookkeeping account to record receipts
and disbursements of money transferred to or from the security
account and to record income from the investment of money in the
account. Upon the written request of the administration, the
commissioner of finance shall transfer from the security account
to an account or accounts the administration shall designate, a
sum of money sufficient in amount, if available, when added to
the balances then on hand in the designated accounts, to pay
bonds issued by the administration under this article and the
interest on them due and to become due on the next succeeding
date for the payment of the principal of and interest on the
bonds of the administration or to restore to any debt service
reserve fund established in connection with the bonds any amount
withdrawn from the debt service reserve account to pay the
bonds. The commissioner of finance shall further transfer from
the security account on or before the date on which any
installment of the principal of and interest on bonds authorized
by this section is due, a sum sufficient in amount, when added
to the balance then on hand in the rural renewal bond account,
to pay all bonds issued under this section and the interest on
them due and to become due on the next succeeding date for
payment of the bonds.
Subd. 6. [INVESTMENT OF SECURITY ACCOUNT.] Money from time
to time on deposit in the security account must be invested by
the state board of investment at the request of the
administration in any investment authorized by this
subdivision. Money on deposit in the security account may be
invested in (1) certificates of deposit insured by the Federal
Deposit Insurance Corporation or Federal Savings and Loan
Insurance Corporation; (2) certificates of deposit issued by
eligible agricultural lenders, whether or not fully insured or
secured; (3) deposits secured by obligations of the United
States or of the state of a market value equal at all times to
the amount of the deposit and all banks and trust companies are
authorized to give security for those deposits; (4) in qualified
agricultural loans or in participation interests in qualified
agricultural loans; or (5) qualified restructured loans. If and
to the extent money has been transferred from the security
account to provide for the timely payment of the principal of
and interest on bonds issued by the administration, or to
transfer money to a debt service reserve fund established in
connection with the bonds, the administration shall transfer to
the security account on or before December 1 of each succeeding
year an amount equal to that previously transferred from the
security account, provided that the administration's obligation
to transfer money to the security account is limited to money
then on hand in funds or accounts of the administration in
excess of those appropriated to other purposes or required to
provide for the payment of the principal of and interest on
bonds issued by the administration and to pay the costs of
issuing, carrying, administering, and securing the bonds of the
administration and of administering and implementing the
programs of the administration financed by the bonds.
Subd. 7. [TRANSFERS, APPROPRIATION.] In addition to the
money required to be transferred to the rural renewal bond
account under subdivision 5, and in order to reduce the amount
of taxes otherwise required by the Minnesota Constitution to be
levied for the state bond fund, the commissioner of finance
shall transfer from the general fund to the rural renewal bond
account, on December 1 in each year, a sum of money sufficient
in amount, when added to the balance then on hand in that
account, to pay all bonds issued under this section and the
interest on them due and to become due to and including July 1
in the second ensuing year. All money to be so credited and all
income from its investment is annually appropriated for the
payment of the bonds and interest on them, and shall be
available in the rural renewal bond account before the levy of
the tax in any year required by the Minnesota Constitution,
article XI, section 7. The legislature may also appropriate to
the rural renewal bond account any other money in the state
treasury not otherwise appropriated, for the security of bonds
issued under this section in the event that sufficient money is
not available in the account from the appropriation in this
section, before the levy of the tax in any year. The
commissioner of finance shall make the appropriate entries in
the accounts of the respective funds.
Subd. 8. [CONSTITUTIONAL LEVY.] On or before December 1 in
each year the state auditor shall levy on all taxable property
within the state whatever tax may be necessary to produce an
amount sufficient, with all money then in the rural renewal bond
account, to pay the entire amount of principal and interest due
on or before July 1 in the second year thereafter on bonds
issued under this section. This tax must be levied upon all
real property used for a homestead, as well as other taxable
property, notwithstanding section 273.13, subdivision 22. The
tax must not be limited in rate or amount until all the bonds
and interest on them are fully paid. The proceeds of this tax
are appropriated and must be credited to the state bond fund,
and the principal and interest on the bonds are payable from all
the proceeds. As much of the proceeds as is necessary is
appropriated for the payments. If at any time there is
insufficient money from the proceeds of the taxes to pay the
principal and interest when due on the bonds, the principal and
interest must be paid out of the general fund in the state
treasury, and the amount necessary for the payment is hereby
appropriated.
Subd. 9. [COMPLIANCE WITH FEDERAL LAW.] The commissioner
of finance may covenant and agree with the holders of the bonds
issued under this section that the state will comply, insofar as
possible, with the provisions of the United States Internal
Revenue Code now or hereafter enacted that are applicable to the
bonds and that establish conditions under which the interest to
be paid on the bonds will not be includable in gross income for
federal tax purposes.
Subd. 10. [TAXABILITY OF INTEREST.] Interest on the bonds
authorized by this section may be issued without regard to
whether the interest to be paid on them is includable in gross
income for federal tax purposes.
Sec. 20. [41B.20] [EXEMPTION FROM TAXES.]
The property of the administration and its income and
operation shall be exempt from all taxation by the state or any
of its political subdivisions.
Sec. 21. [41B.21] [CERTAIN ACTIONS.]
Any action brought by any person with respect to the rights
or powers of the administration or calling into question the
validity or enforceability of bonds or obligations authorized by
this article is a remedial case of which the supreme court has
original jurisdiction pursuant to article VI, section 2 of the
constitution. The action may be commenced solely by service
upon the state auditor, the commissioner of agriculture, or the
executive director of the administration and by filing of the
summons and complaint with the supreme court. Upon filing of an
answer to the complaint, the court shall order a hearing which
must be held not later than 30 days from the date of filing of
the answer. At the hearing, the court shall establish an
expedited schedule for the action.
Sec. 22. [41B.22] [CONSTRUCTION.]
This article is necessary for the welfare of the state of
Minnesota and its inhabitants; therefore, it shall be liberally
construed to effect its purpose.
Sec. 23. [41B.23] [SEVERABILITY; ACTIONS.]
Each of the provisions of this article, and each
application thereof to particular circumstances, is severable.
If any provision or application is found to be unconstitutional
and void, it is the intention that the remaining provisions and
applications shall be valid and enforceable to the full extent
possible under section 645.20. The supreme court shall have
original jurisdiction, pursuant to article VI, section 2 of the
constitution, in all cases seeking a remedy based upon an issue
raised as to the validity of any such provision or application.
Sec. 24. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 7
PROTECTION OF CONSERVATION PRACTICES
Section 1. Minnesota Statutes 1985 Supplement, section
40.26, is amended to read:
40.26 [APPLICATION FOR COST-SHARING FUNDS.]
Subdivision 1. [COST-SHARE REQUIRED.] (a) Except for a
development activity, a land occupier may not be required to
establish soil conservation practices unless state cost-sharing
funds have been specifically approved for that land and have
been made available to the land occupier under sections 40.23
and 40.242, equal to at least 75 percent of the cost of the
permanent conservation practices on a voluntary basis, or a 50
percent cost share if an application for cost share is not made
within 90 days after the board approves a mediated written
agreement or within 90 days after the court orders
implementation of a plan and time schedule prepared by the
landowner or the court. For mediated settlements, a court order
that implements the landowner's alternatives or the court's
alternatives must state the time schedule for application for 50
percent cost share. If the court orders implementation of the
district's plan and time schedule, a landowner is only eligible
for 50 percent cost share.
Subd. 2. [REVIEW OF REQUIREMENTS.] (b) The state soil and
water conservation board shall review these requirements at
least once each year, and may authorize a district to provide a
higher percentage of cost sharing than is required by this
section. To aid in this determination, the state board may
consider the location of the affected area in relation to the
priority areas as established in the soil and water conservation
district annual and long-range plans.
Subd. 3. [RECORDING.] The permanent conservation practices
must be recorded with the county recorder on the tracts where
they occur if the cost-sharing funds are issued to the landowner.
Sec. 2. Minnesota Statutes 1984, section 500.24, is
amended by adding a subdivision to read:
Subd. 3a. [LEASE AGREEMENT; CONSERVATION PRACTICE
PROTECTION CLAUSE.] A corporation, other than a family farm
corporation or an authorized farm corporation, when leasing farm
land to a family farm unit, a family farm corporation, or an
authorized farm corporation under provisions of section 500.24,
subdivision 3, clause (i), must include within the lease
agreement a provision prohibiting intentional damage or
destruction to a conservation practice on the agricultural land.
Sec. 3. Minnesota Statutes 1984, section 500.24, is
amended by adding a subdivision to read:
Subd. 3b. [PROTECTION OF CONSERVATION PRACTICES.] If a
corporation, other than a family farm corporation or an
authorized farm corporation, during the period of time it holds
agricultural land under section 500.24, subdivision 3, clause
(i), intentionally destroys a conservation practice as defined
in section 40.19, subdivision 5, to which the state has made a
financial contribution, the corporation must pay the
commissioner of agriculture, for deposit in the general fund, an
amount equal to the state's total contributions to that
conservation practice plus interest from the time of investment
in the conservation practice. Interest must be calculated at an
annual percentage rate of 12 percent.
Sec. 4. [EFFECTIVE DATE.]
This article is effective April 1, 1986.
ARTICLE 8
FAMILY FARM SECURITY INTEREST EXCLUSION
Section 1. [FAMILY FARM SECURITY INTEREST EXCLUSIONS.]
(a) The commissioner shall annually pay to qualified
sellers of property, financed by a family farm security loan, an
amount approximately equal to the additional state income tax
paid as a result of the inclusion in gross income of the
interest and payment adjustment earned on a seller-sponsored
family farm security loan.
(b) The payment amount must be determined as follows:
(1) In order to qualify for a payment, the seller must
apply to the commissioner. The application must include a copy
of the seller's 1985 state income tax return and any other
information that the commissioner requests to verify that the
applicant is a qualified seller. The commissioner shall
recompute the seller's total state income tax liability that
would be due if the interest and payment adjustment amounts were
not includable in gross income for state income tax purposes.
The commissioner may require the seller to compute these amounts
as part of the application. For calendar year 1986 the amount
of the payment equals the reduction in state income tax
liability that would occur if the interest and payment
adjustment were not included in gross income for state tax
purposes.
(2) For calendar years beginning with 1987, the additional
payment amount must be determined as follows:
(i) The calendar year 1986 payment must be divided by the
amount of interest and payment adjustment received during
calendar year 1986.
(ii) The resulting quotient must be multiplied by the
interest and payment adjustment received for the calendar year.
(iii) The product determined under clause (ii) is the
payment for the calendar year.
(c) If for a tax year after 1986 the qualified seller's
taxable income has changed substantially, the commissioner may
provide by rule that upon reapplication a later tax year will be
used to compute the quotient under clause (b)(2)(i).
(d) The commissioner may make the payments under this
subdivision in the same manner provided for the payment
adjustment under subdivision 2.
(e) For purposes of this subdivision, the following terms
have the meanings given:
(1) "Gross income" means gross income as defined for
purposes of chapter 290.
(2) "Qualified seller" means an individual who sold farm
land under a seller-sponsored loan prior to July 1, 1985, and
who is a resident of Minnesota during the calendar year and
subject to the payment of Minnesota income taxes.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 9
VETERINARIAN LIEN
Section 1. Minnesota Statutes 1984, section 514.92, is
amended to read:
514.92 [VETERINARIAN'S LIEN; STATEMENT OF CLAIM;
FORECLOSURE.]
Subdivision 1. [ATTACHMENT.] Every duly A licensed and
registered veterinarian shall have a lien for all who performs
emergency veterinary services over that cost more
than $25 rendered upon any animal or for animals at the request
of the owner or lawful possessor of same, including but not
limited to a person in possession of the animals has a lien on
the animals for the value of the services. Veterinary services
include emergency surgical procedures, administering vaccines,
antisera, virus, and antibiotics, or and other veterinary
treatment, from the date of filing the lien. Within 180 days
from the day on which the treatment was completed, the claimant
of the lien shall file in the appropriate filing office under
the Uniform Commercial Code, Minnesota Statutes, section
336.9-401, a verified lien statement setting forth the kind and
number of animals treated, the reasonable value for the
treatment or services rendered, or the price contracted between
the parties, the name of the person for whom the treatment was
done, the reasonable identification of the animal or group of
animals treated, dates when the treatment was commenced and was
completed, the name of the owner, or reputed owner, of the
animals, the name and address of the veterinarian claiming the
lien. Within one year after the date the last service was
rendered, but not thereafter, the lien claimant may foreclose
his lien in the manner prescribed for security interests under
article 9 of the Uniform Commercial Code medicines and
treatments. Veterinary services also include services performed
primarily to protect human health, prevent the spread of animal
diseases, or to preserve the immediate health of an animal.
Subd. 1a. [FILING AND PERFECTING LIEN.] The veterinarian
must file a lien statement in the appropriate filing office for
a financing statement covering the animals to be filed under
section 336.9-401 by 180 days after the veterinary services are
performed. The lien is perfected by properly filing the lien
statement.
Subd. 2. [LIEN STATEMENT.] Minnesota Statutes, Section
514.74 shall apply to all liens created under subdivision
1. (a) A lien statement must be verified and state:
(1) the name of the owner, or reputed owner, of the animals;
(2) the name of the person for whom the veterinary services
were performed;
(3) the kind, number, and reasonable identification of
animals treated;
(4) the dates when the veterinary services were begun and
finished;
(5) the fraction of veterinary services performed which
were primarily for the purpose of protecting human health,
preventing the spread of animal diseases, or preserving the
health of the animal or animals treated;
(6) the reasonable value of the veterinary services
rendered, or the price contracted between the parties; and
(7) the name and address of the veterinarian claiming the
lien.
(b) The provisions of section 514.74 relating to
inaccuracies in lien statements apply to lien statements under
this subdivision.
Subd. 3. [ENFORCEMENT OF LIEN.] An action to enforce a
perfected lien under this section must be started by one year
after the date the last veterinary service was performed. A
perfected lien may be enforced in the manner prescribed for
security interests under section 336.9-501 to 336.9-508.
Subd. 4. [PRIORITY OF LIEN.] (a) A perfected
veterinarian's lien under this section has priority over other
liens and security interests on the same animals to the extent
the veterinary services were performed primarily for the purpose
of protecting human health, preventing the spread of animal
diseases, or preserving the health of the animal or animals
treated.
(b) A veterinarian's lien has priority over a security
interest perfected before the veterinarian's lien only if the
security interest is perfected after the effective date of this
article.
(c) The priority among veterinarian's liens filed under
this section is according to the first lien filed.
Subd. 5. [TERMINATION.] (a) A veterinarian's lien under
this section terminates:
(1) 180 days after the last veterinarian's services was
performed if a proper lien statement is not filed; or
(2) one year after the lien is filed if an action to
enforce the lien has not been started.
(b) A filing officer may remove and destroy terminated lien
statements in the same manner as provided for a financing
statement under section 336.9-410.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 10
NATIVE AMERICAN MEMORIAL
Section 1. [NATIVE AMERICAN MEMORIAL PLAN.]
The Minnesota historical society shall develop a plan for
selecting a design for a capitol mall memorial to Native
Americans. The selection may involve a design competition with
a prize for the winning design. Funding may involve state funds
or gifts from private or public sources.
Sec. 2. Minnesota Statutes 1984, section 138.585, is
amended by adding a subdivision to read:
Subd. 31. Native American monument, in Ramsey county, to
memorialize Native Americans, located in a place of honor in the
capitol complex in St. Paul.
ARTICLE 11
AGRICULTURAL DATA TASK FORCE
Section 1. [138.95] [REACTIVATION OF THE AGRICULTURAL DATA TASK
FORCE.]
The agricultural data collection task force created by Laws
1985, chapter 19, is reactivated.
Sec. 2. Laws 1985, chapter 19, section 2, subdivision 2,
is amended to read:
Subd. 2. [DUTIES.] The duties of the data collection task
force are to:
(1) develop a continue the uniform procedure for collecting
data on the financial status of agriculture in Minnesota;
(2) oversee the implementation of the farm crisis
intervention act; and
(3) report the results of the program to the legislature no
later than December 31, 1985 1986.
Sec. 3. Laws 1985, chapter 19, section 2, is amended by
adding a subdivision to read:
Subd. 3a. [INFORMATION HELD BY TASK FORCE "NOT PUBLIC DATA"
UNTIL RELEASED.] All information gathered by or for the task
force or processed by staff and provided to the task force is
"not public data" as defined in Minnesota Statutes, section
13.02, subdivision 8a, until it is released by a majority vote
of the members of the task force.
Sec. 4. Laws 1985, chapter 19, section 6, subdivision 6 is
amended to read:
Subd. 6. [EXPIRATION.] The data collection task force
shall cease to exist within ten days of submitting its
report expires January 15, 1987, or 15 days after reporting to
the legislature whichever date comes later, but in no
circumstance later than March 1, 1987.
Sec. 5. [EFFECTIVE DATE.]
This act is effective the day following final enactment.
ARTICLE 12
CROP RIGHTS ON FORECLOSED LAND
Section 1. Minnesota Statutes 1984, section 542.06, is
amended to read:
542.06 [REPLEVIN.]
Actions to recover the possession of personal property
wrongfully taken shall be tried in the county in which the
taking occurred, or, at claimant's election, in the county in
which he resides; in other cases in the county in which the
property is situated.
Sec. 2. [557.10] [OWNERSHIP OF CROPS.]
Planted and growing crops are personal property of the
person or entity that has the property right to plant the crops.
Sec. 3. [557.11] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to this section and section 4.
Subd. 2. [PLANTING CROP OWNER.] "Planting crop owner"
means the person or entity that has a property right to plant
crops, including a leasehold interest, the interest of a
contract for deed vendee, and the redemption interest of a
foreclosed mortgagor.
Subd. 3. [CROP VALUE.] "Crop value" means the value of the
crop and crop inputs, including the real property fair market
rental value, up to the time the planting crop owner's property
right to harvest the crop is terminated.
Sec. 4. [557.12] [HARVESTING CROPS AFTER TERMINATION OF
PROPERTY INTERESTS.]
Subdivision 1. [TERMINATION OF PROPERTY INTEREST AFTER
CROPS ARE PLANTED.] If the planting crop owner's property right
to harvest crops is involuntarily terminated before the crops
are harvested, the person or entity with the property right to
harvest the crops is liable to the planting crop owner for the
crop value.
Subd. 2. [PLANTING CROP OWNER'S LIEN.] A planting crop
owner has a lien for the crop value that attaches to the crop
and crop products, and if the lien is not satisfied under
subdivision 3, a planting crop owner has a lien for the crop
value that attaches to the real property where the crop was
planted.
Subd. 3. [SATISFACTION OF CROP OWNER'S LIEN.] (a) A person
with the right to harvest a crop that is subject to a planting
crop owner's lien may satisfy the lien by:
(1) compensating the planting crop owner for the crop
value; or
(2) allowing the planting crop owner to enter the property
to grow and harvest the crops, and charging the planting crop
owner the fair market rental value of the property where the
crop was grown for the period when the planting crop owner's
right to harvest the crops was terminated until the crops are
harvested.
(b) If the person with the right to harvest the crop does
not notify the planting crop owner within 30 days after
termination of the planting crop owner's right to harvest the
crops that the lien will be satisfied under paragraph (a),
clause (2), the person with the right to harvest the crop must
satisfy the lien under clause (1) unless otherwise agreed by the
planting crop owner.
Subd. 4. [LIEN ON CROPS HARVESTED BY PLANTING CROP OWNER;
PRIORITY.] If the person with the right to harvest the crop
satisfies the planting crop owner's lien by allowing the
planting crop owner to harvest the crops, the person with the
right to harvest the crops has a lien for the fair market rental
value of the property where the crop was grown that attaches to
the crops and crop products. The perfected lien has priority
over all other liens and security interests in the crop and crop
products.
Subd. 5. [FILING AND ENFORCEMENT OF LIENS.] (a) A planting
crop owner's lien under subdivision 2 and a lien for the fair
market rental value where the crop was grown under subdivision 4
are perfected against the crop and crop products by attaching
and filing a financing statement covering the crop and crop
products as provided under sections 336.9-401 to 336.9-410 by 90
days after the planting crop owner's right to harvest the crop
is terminated. The financing statement must include a statement
indicating whether it is a planting crop owner's lien or a lien
for a crop harvested by a planting crop owner. A perfected lien
may be enforced in the same manner as a security interest under
sections 336.9-501 to 336.9-508.
(b) A lien against the real property under subdivision 2
must be recorded and foreclosed in the same manner as a
mechanics' lien under sections 514.08 to 514.15 as if the
planting crop owner was a contractor. For purposes of this
paragraph, the lien statement must be filed and served under
section 514.08, subdivision 1, by 120 days after the crop was
harvested, or if the crop was not harvested, by 12 months after
the crop was planted.
Sec. 5. [REPEALER.]
Minnesota Statutes 1984, sections 561.11; 561.12; 561.13;
561.14; 561.15; and 561.16, are repealed.
Sec. 6. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 13
TRANSPORTATION
Section 1. Minnesota Statutes 1985 Supplement, section
168.013, subdivision 1e, is amended to read:
Subd. 1e. [TRUCKS; TRACTORS; COMBINATIONS; EXCEPTIONS.] On
trucks and tractors except those in this chapter defined as farm
trucks, on truck-tractor and semitrailer combinations except
those defined as farm combinations, and on commercial zone
vehicles, the tax based on total gross weight shall be graduated
according to the Minnesota base rate schedule prescribed in this
subdivision, but in no event less than $120.
Minnesota Base Rate Schedule
Scheduled taxes include five percent
surtax provided for in subdivision 14
TOTAL GROSS WEIGHT
IN POUNDS TAX
A 0 - 1,500 $ 15
B 1,501 - 3,000 20
C 3,001 - 4,500 25
D 4,501 - 6,000 35
E 6,001 - 9,000 45
F 9,001 - 12,000 70
G 12,001 - 15,000 105
H 15,001 - 18,000 145
I 18,001 - 21,000 190
J 21,001 - 26,000 270
K 26,001 - 33,000 360
L 33,001 - 39,000 475
M 39,001 - 45,000 595
N 45,001 - 51,000 715
O 51,001 - 57,000 865
P 57,001 - 63,000 1015
Q 63,001 - 69,000 1185
R 69,001 - 73,280 1325
S 73,281 - 78,000 1525 1595
T 78,001 - 81,000 1625 1760
For each vehicle with a gross weight in excess of 81,000
pounds an additional tax of $50 is imposed for each ton or
fraction thereof in excess of 81,000 pounds, subject to
subdivision 12.
Truck-tractors except those herein defined as farm and
commercial zone vehicles shall be taxed in accord with the
foregoing gross weight tax schedule on the basis of the combined
gross weight of the truck-tractor and any semitrailer or
semitrailers which the applicant proposes to combine with the
truck-tractor.
Commercial zone trucks include only trucks, truck-tractors,
and semitrailer combinations which are:
(1) used by an authorized local cartage carrier operating
under a permit issued under section 221.296 and whose gross
transportation revenue consists of at least 60 percent obtained
solely from local cartage carriage, and are operated solely
within an area composed of two contiguous cities of the first
class and municipalities contiguous thereto as defined by
section 221.011, subdivision 17; or,
(2) operated by an interstate carrier registered under
section 221.60, or by an authorized local cartage carrier or
other carrier receiving operating authority under chapter 221,
and operated solely within a zone exempt from regulation by the
interstate commerce commission pursuant to United States Code,
title 49, section 10526(b).
The license plates issued for commercial zone vehicles
shall be plainly marked. A person operating a commercial zone
vehicle outside the zone or area in which its operation is
authorized is guilty of a misdemeanor and, in addition to the
penalty therefor, shall have the registration of the vehicle as
a commercial zone vehicle revoked by the registrar and shall be
required to reregister the vehicle at 100 percent of the full
annual tax prescribed in the Minnesota base rate schedule, and
no part of this tax shall be refunded during the balance of the
registration year.
On commercial zone trucks the tax shall be based on the
total gross weight of the vehicle and during the first eight
years of vehicle life shall be 75 percent of the Minnesota base
rate schedule. During the ninth and succeeding years of vehicle
life the tax shall be 50 percent of the Minnesota base rate
schedule, except as otherwise provided in this subdivision. On
commercial zone trucks, during the ninth and succeeding years of
vehicle life, the tax shall be 50 percent of the tax imposed in
the Minnesota base rate schedule.
On trucks, truck-tractors and semitrailer combinations,
except those defined as farm trucks and farm combinations, and
except for those urban trucks and combinations and commercial
zone vehicles specifically provided for in this subdivision, the
tax for the first eight years of vehicle life shall be 100
percent of the tax imposed in the Minnesota base rate schedule,
and during the ninth and succeeding years of vehicle life, the
tax shall be 75 percent of the Minnesota base rate prescribed by
this subdivision, except as otherwise provided in this
subdivision.
On trucks, truck-tractors and semitrailer combinations,
except those defined as farm trucks and farm combinations, and
except for those commercial zone vehicles specifically provided
for in this subdivision, during each of the first eight years of
vehicle life the tax shall be 100 percent of the tax imposed in
the Minnesota base rate schedule.
Sec. 2. Minnesota Statutes 1984, section 169.01,
subdivision 7, is amended to read:
Subd. 7. [TRUCK-TRACTOR.] "Truck-tractor" means:
(a) a motor vehicle designed and used primarily for drawing
other vehicles and not constructed to carry a load other than a
part of the weight of the vehicle and load drawn; and
(b) a motor vehicle designed and used primarily for drawing
other vehicles used exclusively for transporting motor
vehicles or boats and capable of carrying motor vehicles or
boats on its own structure.
Sec. 3. Minnesota Statutes 1984, section 169.80,
subdivision 1, is amended to read:
Subdivision 1. [LIMITATIONS.] It is a misdemeanor for a
person to drive or move, or for the owner to cause or knowingly
permit to be driven or moved, on a highway a vehicle or vehicles
of a size or weight exceeding the limitations stated in sections
169.80 to 169.88, or otherwise in violation of sections 169.80
to 169.88, and the maximum size and weight of vehicles as
prescribed in sections 169.80 to 169.88 shall be lawful
throughout this state, and local authorities shall have no power
or authority to alter these limitations except as express
authority may be granted in sections 169.80 to 169.88.
When all the axles of a vehicle or combination of vehicles
are weighed separately the sum of the weights of the axles so
weighed shall be evidence of the total gross weight of the
vehicle or combination of vehicles so weighed.
When each of the axles of any group that contains two or
more consecutive axles of a vehicle or combination of vehicles
have been weighed separately the sum of the weights of the axles
so weighed shall be evidence of the total gross weight on the
group of axles so weighed.
When, in any group of three or more consecutive axles of a
vehicle or combination of vehicles any axles have been weighed
separately and two or more axles consecutive to each other in
the group have been weighed together, the sum of the weights of
the axles weighed separately and the axles weighed together
shall be evidence of the total gross weight of the group of
axles so weighed.
The provisions of sections 169.80 to 169.88 governing size,
weight, and load shall not apply to fire apparatus, or to
implements of husbandry temporarily moved upon a highway, or to
loads of loose hay or corn stalks if transported by a
horse-drawn vehicle or drawn by a farm tractor, or to a vehicle
operated under the terms of a special permit issued as provided
by law. For purposes of sections 169.80 to 169.88, a
specialized vehicle resembling a low-slung two wheel trailer
having a short bed or platform shall be deemed to be an
implement of husbandry when the vehicle is used exclusively to
transport implements of husbandry; and the term "temporarily
moved upon a highway" shall mean a movement not to exceed 50
miles.
In addition to any other special permits authorized, an
annual permit may be issued authorizing movements on interstate
highways and movements exceeding 50 miles on non-interstate
highways of oversize vehicles and loads when the vehicles or
combination of vehicles are used exclusively to transport
implements of husbandry. Annual permits are issued in
accordance with the applicable provisions of section 169.86,
except that the transporting vehicle or combination of vehicles
may be moved at the discretion of the permittee without prior
route approval from the permit issuing office of the department
of transportation if:
(a) The overall width of the transporting vehicle,
including load, does not exceed 12 14 feet;
(b) The transporting vehicle otherwise complies with
equipment requirements and length, height and weight limitations
prescribed by this chapter;
(c) The movement is made after the hour of sunrise and not
later than 30 minutes after sunset;
(d) The movement is not made when visibility is impaired by
weather, fog or other conditions rendering persons and vehicles
not clearly visible at a distance of 500 feet, or on Sundays
after twelve o'clock noon, and holidays;
(e) The transporting vehicle shall display at the front and
rear end of the load or vehicle a pair of flashing amber lights,
as provided in section 169.59, subdivision 4, whenever the
overall width of the vehicle exceeds ten feet, six inches; and
(f) The movement, if made on a trunk highway, is made on a
trunk highway with a surfaced roadway width of not less than 24
feet.
The fee for an annual permit is $24.
Sec. 4. Minnesota Statutes 1984, section 169.81,
subdivision 2, is amended to read:
Subd. 2. [LENGTH OF VEHICLES.] (a) No single unit motor
vehicle, except truck cranes which may not exceed 45 feet,
unladen or with load may exceed a length of 40 feet extreme
overall dimensions inclusive of front and rear bumpers, except
that the governing body of a city is authorized by permit to
provide for the maximum length of a motor vehicle, or
combination of motor vehicles, or the number of vehicles that
may be fastened together, and which may be operated upon the
streets or highways of a city; provided, that the permit may not
prescribe a length less than that permitted by state law. A
motor vehicle operated in compliance with the permit on the
streets or highways of the city is not in violation of this
chapter.
(b) No single semitrailer may have an overall length,
exclusive of non-cargo-carrying accessory equipment, including
refrigeration units or air compressors, necessary for safe and
efficient operation mounted or located on the end of the
semitrailer adjacent to the truck or truck-tractor, in excess of
48 feet, except as provided in paragraph (d) that a single
semitrailer may have an overall length in excess of 48 feet if
(1) the distance from the kingpin to the centerline of the rear
axle group of the semitrailer does not exceed 41 feet, and (2)
if the semitrailer is operated only in a combination of vehicles
which does not exceed an overall length of 65 feet. No single
trailer may have an overall length inclusive of tow bar assembly
and exclusive of rear protective bumpers which do not increase
the overall length by more than six inches, in excess of 45 feet.
For determining compliance with the provisions of this
subdivision, the length of the semitrailer or trailer must be
determined separately from the overall length of the combination
of vehicles.
(c) No semitrailer or trailer used in a three-vehicle
combination may have an overall length, exclusive of
non-cargo-carrying accessory equipment, including refrigeration
units or air compressors, necessary for safe and efficient
operation mounted or located on the end of the semitrailer or
trailer adjacent to the truck or truck-tractor, and further
exclusive of the tow bar assembly, in excess of 28-1/2 feet.
The commissioner may not grant a permit authorizing the
movement, in a three-vehicle combination, of a semitrailer or
trailer that exceeds 28-1/2 feet, except that the commissioner
may renew a permit that was granted before April 16, 1984 for
the movement of a semitrailer or trailer that exceeds the length
limitation in this paragraph.
(d) The commissioner may issue an annual permit for a
semitrailer in excess of 48 feet in length, if the distance from
the kingpin to the centerline of the rear axle group of the
semitrailer does not exceed 41 feet and if a combination of
vehicles, which includes a semitrailer in excess of 48 feet for
which a permit has been issued under this paragraph, does not
exceed an overall length of 65 feet. The annual fee for a
permit issued under this paragraph is $36.
Sec. 5. Minnesota Statutes 1984, section 169.81,
subdivision 3, is amended to read:
Subd. 3. [LENGTH OF VEHICLE COMBINATIONS.] (a) Statewide,
except as provided in paragraph (b), no combination of vehicles
coupled together, including truck-tractor and semitrailer, may
consist of more than two units and no combination of vehicles,
unladen or with load, may exceed a total length of 65 feet. The
length limitation does not apply to the transportation of
telegraph poles, telephone poles, electric light and power
poles, piling, or pole length pulpwood, and is subject to the
following further exceptions: the length limitations do not
apply to vehicles transporting pipe or other objects by a public
utility when required for emergency or repair of public service
facilities or when operated under special permits as provided in
this subdivision, but with respect to night transportation, a
vehicle and the load must be equipped with a sufficient number
of clearance lamps and marker lamps on both sides and upon the
extreme ends of a projecting load to clearly mark the dimensions
of the load. Mount combinations may be drawn but the
combinations may not exceed 65 feet in length. The limitation
on the number of units does not apply to vehicles used for
transporting milk from point of production to point of first
processing, in which case no combination of vehicles coupled
together unladen or with load, including truck-tractor and
semitrailers, may consist of more than three units and no
combination of those vehicles may exceed a total length of 65
feet. Notwithstanding other provisions of this section, and
except as provided in paragraph (b), no combination of vehicles
consisting of a truck-tractor and semitrailer designed and used
exclusively for the transportation of motor vehicles or boats
may exceed 65 feet in length. The load may extend a total of
seven feet, but may not extend more than three feet beyond the
front or four feet beyond the rear, and in no case may the
overall length of the combination of vehicles, unladen or with
load, exceed 65 feet. For the purpose of registration, trailers
coupled with a truck-tractor, semitrailer combination are
semitrailers. The state as to state trunk highways, and a city
or town as to roads or streets located within the city or town,
may issue permits authorizing the transportation of combinations
of vehicles exceeding the limitations in this subdivision over
highways, roads, or streets within their boundaries.
Combinations of vehicles authorized by this subdivision may be
restricted as to the use of highways by the commissioner as to
state trunk highways, and a road authority as to highways or
streets subject to its jurisdiction. Nothing in this
subdivision alters or changes the authority vested in local
authorities under the provisions of section 169.04.
(b) The following combination of vehicles regularly engaged
in the transportation of commodities may operate only on divided
highways having four or more lanes of travel, and on other
highways as may be designated by the commissioner of
transportation subject to section 169.87, subdivision 1, and
subject to the approval of the authority having jurisdiction
over the highway, for the purpose of providing reasonable access
between the divided highways of four or more lanes of travel and
terminals, facilities for food, fuel, repair, and rest, and
points of loading and unloading for household goods carriers,
livestock carriers, or for the purpose of providing continuity
of route:
(1) a truck-tractor and semitrailer exceeding 65 feet in
length;
(2) a combination of vehicles with an overall length
exceeding 55 feet and including a truck-tractor and semitrailer
drawing one additional semitrailer which may be equipped with an
auxiliary dolly;
(3) a combination of vehicles with an overall length
exceeding 55 feet and including a truck-tractor and semitrailer
drawing one full trailer; and
(4) a truck-tractor and semitrailer designed and used
exclusively for the transportation of motor vehicles or boats
and exceeding an overall length of 65 feet including the
load except as restricted by applicable federal law.
Vehicles operated under the provisions of this section must
conform to the standards for those vehicles prescribed by the
United States Department of Transportation, Federal Highway
Administration, Bureau of Motor Carrier Safety, as amended.
Sec. 6. Minnesota Statutes 1984, section 169.825, is
amended by adding a subdivision to read:
Subd. 3a. [TANDEM.] "Tandem axles" means two consecutive
axles whose centers are spaced more than 40 inches and not more
than 96 inches apart.
Sec. 7. Minnesota Statutes 1984, section 169.825,
subdivision 8, is amended to read:
Subd. 8. [PNEUMATIC-TIRED VEHICLES.] No vehicle or
combination of vehicles equipped with pneumatic tires shall be
operated upon the highways of this state:
(a) Where the gross weight on any wheel exceeds 9,000
pounds, except that on designated local routes and state trunk
highways the gross weight on any single wheel shall not exceed
10,000 pounds;
(b) Where the gross weight on any single axle exceeds
18,000 pounds, except that on designated local routes and state
trunk highways the gross weight on any single axle shall not
exceed 20,000 pounds;
(c) Where the maximum wheel load exceeds 600 pounds per
inch of tire width or the manufacturer's recommended load,
whichever is less;
(d) Where the gross weight on any axle of a tridem exceeds
15,000 pounds, except that for vehicles to which an additional
axle has been added prior to June 1, 1981, the maximum gross
weight on any axle of a tridem may be up to 16,000 pounds
provided the gross weight of the tridem combination does not
exceed 37,000 pounds where the first and third axles of the
tridem are spaced seven feet apart; 38,500 pounds where the
first and third axles of the tridem are spaced eight feet apart;
and 39,900 pounds where the first and third axles of the tridem
are spaced nine feet apart.
(e) Where the gross weight on any group of axles exceeds
the weights permitted under this section with any or all of the
interior axles disregarded and their gross weights subtracted
from the gross weight of all axles of the group under
consideration.
Sec. 8. Minnesota Statutes 1984, section 169.825,
subdivision 10, is amended to read:
Subd. 10. [GROSS WEIGHT SCHEDULE.] (a) No vehicle or
combination of vehicles equipped with pneumatic tires shall be
operated upon the highways of this state where the total gross
weight on any group of two or more consecutive axles of any
vehicle or combination of vehicles exceeds that given in the
following table for the distance between the centers of the
first and last axles of any group of two or more consecutive
axles under consideration; the distance between axles being
measured longitudinally to the nearest even foot, and when the
measurement is a fraction of exactly one-half foot the next
largest whole number in feet shall be used, except that when the
distance between axles is more than three feet four inches and
less than three feet six inches the distance of four feet shall
be used:
Maximum gross weight in pounds on a group of
2 3 4
Distances consecutive consecutive consecutive
in feet axles of axles of axles of
between a 2-axle a 3-axle a 4-axle
centers vehicle vehicle vehicle
of fore- or of any or of any or any com-
most and vehicle or vehicle or bination of
rearmost combination combination vehicles
axles of of vehicles of vehicles having a
a group having a having a total of 4
total of 2 total of 3 or more axles
or more axles or more axles
4 34,000
5 34,000
(35,000)
6 34,000
(36,000)
7 34,000 41,500
(37,000)
8 34,000 42,000
(38,000)
9 35,000 43,000
(39,000)
10 36,000 43,500 49,000
(40,000)
11 36,000 44,500 49,500
12 45,000 50,000
13 46,000 51,000
14 46,500 51,500
15 47,500 52,000
16 48,000 53,000
17 49,000 53,500
18 49,500 54,000
19 50,500 55,000
20 51,000 55,500
21 52,000 56,000
22 52,500 57,000
23 53,500 57,500
24 54,000 58,000
25 (55,000) 59,000
26 (55,500) 59,500
27 (56,500) 60,000
28 (57,000) 61,000
29 (58,000) 61,500
30 (58,500) 62,000
31 (59,500) 63,000
32 (60,000) 63,500
33 64,000
34 65,000
35 65,500
36 66,000
37 67,000
38 67,500
39 68,000
40 69,000
41 69,500
42 70,000
43 71,000
44 71,500
45 72,000
46 72,500
47 (73,500)
48 (74,000)
49 (74,500)
50 (75,500)
51 (76,000)
Maximum gross weight in pounds on a group of
5 6 7
Distances consecutive consecutive consecutive
in feet axles of a axles of axles of
between 5-axle vehicle a combination a combination
centers or any com- of vehicles of vehicles
of fore- bination of having a total having a total
most and vehicles of 6 or more of 7 or more
rearmost having a total axles axles
axles of of 5 or more
a group axles
14 57,000
15 57,500
16 58,000
17 59,000
18 59,500
19 60,000
20 60,500 66,000 72,000
21 61,500 67,000 72,500
22 62,000 67,500 73,000
23 62,500 68,000 73,500
24 63,000 68,500 74,000
25 64,000 69,000 75,000
26 64,500 70,000 75,500
27 65,000 70,500 76,000
28 65,500 71,000 76,500
29 66,500 71,500 77,000
30 67,000 72,000 77,500
31 67,500 73,000 78,500
32 68,000 73,500 79,000
33 69,000 74,000 79,500
34 69,500 74,500 80,000
35 70,000 75,000
36 70,500 76,000
37 71,500 76,500
38 72,000 77,000
39 72,500 77,500
40 73,000 78,000
41 74,000 (74,000) 79,000
42 74,500 (74,500) 79,500
43 75,000 (75,000) 80,000
44 75,500 (75,500)
45 76,500 (76,500)
46 77,000 (77,000)
47 77,500 (77,500)
48 78,000 (78,000)
49 79,000 (79,000)
50 79,500 (79,500)
51 80,000 (80,000)
The gross weights shown in parentheses in this clause are
permitted only on state trunk highways and routes designated
under section 169.832, subdivision 11.
(b) Notwithstanding any lesser weight in pounds shown in
this table but subject to the restrictions on gross vehicle
weights in clause (c), two consecutive sets of tandem axles may
carry a gross load of 34,000 pounds each and a combined gross
load of 68,000 pounds provided the overall distance between the
first and last axles of the consecutive sets of tandem axles is
36 feet or more.
(c) Notwithstanding the provisions of section 169.85, the
gross vehicle weight of all axles of a vehicle or combination of
vehicles shall not exceed the following:
(1) 80,000 pounds for any vehicle or combination of
vehicles on all state trunk highways as defined in section
160.02, subdivision 2, and for all routes designated under
section 169.832, subdivision 11; and
(2) 73,280 pounds for any vehicle or combination of
vehicles with five axles or less on all routes, other than state
trunk highways and routes that are not designated under section
169.832, subdivision 11; and
(3) 80,000 pounds for any vehicle or combination of
vehicles with six or more axles on all routes, other than state
trunk highways and routes that are not designated under section
169.832, subdivision 11;.
(d) The maximum weights specified in this subdivision for
five consecutive axles shall not apply to a combination of
vehicles that includes a three axle semi-trailer first
registered before August 1, 1981. All other weight limitations
in this section are applicable;.
(e) The maximum weights specified in this subdivision for
five consecutive axles shall not apply to a four axle ready mix
concrete truck which was equipped with a fifth axle prior to
June 1, 1981. The maximum gross weight on four or fewer
consecutive axles of vehicles excepted by this clause shall not
exceed any maximum weight specified for four or fewer
consecutive axles in this subdivision.
Sec. 9. Minnesota Statutes 1984, section 169.825,
subdivision 11, is amended to read:
Subd. 11. [GROSS WEIGHT SEASONAL INCREASES.] (a) The
limitations provided in this section are increased:
(1) by ten percent from January 1 to March 7 each winter,
statewide;
(2) by ten percent from December 1 through December 31 each
winter in the zone bounded as follows: beginning at Pigeon
River in the northeast corner of Minnesota; thence in a
southwesterly direction along the north shore of Lake Superior
along Trunk Highway No. 61 to the junction with Trunk Highway
No. 210; thence westerly along Trunk Highway No. 210 to the
junction with Trunk Highway No. 10; thence northwesterly along
Trunk Highway No. 10 to the junction with Trunk Highway No. 59;
thence northerly along Trunk Highway No. 59 to the junction with
Trunk Highway No. 2; thence westerly along Trunk Highway No. 2
to the junction with Trunk Highway No. 32; thence northerly
along Trunk Highway No. 32 to the junction with Trunk Highway
No. 11; thence northeast along Trunk Highway No. 11 to the east
line of Range 43W to the Minnesota-North Dakota border; thence
northerly along that border to the Minnesota-Canadian Border;
thence easterly along said Border to Lake Superior; and
(3) by ten percent from October 1 to November 30 each year
for the movement of sugar beets and potatoes from the field of
harvest to the point of the first unloading. The commissioner
shall not issue permits under this clause if to do so will
result in a loss of federal highway funding to the state.
(b) The duration of a ten percent increase in load limits
is subject to limitation by order of the commissioner, subject
to implementation of springtime load restrictions, or March 7.
(c) When the ten percent increase is in effect, a permit is
required for a motor vehicle, trailer, or semitrailer
combination that has a gross weight in excess of 80,000 pounds,
an axle group weight in excess of that prescribed in subdivision
10, or a single axle weight in excess of 20,000 pounds and which
travels on interstate routes.
(d) In cases where gross weights in an amount less than
that set forth in this section are fixed, limited, or restricted
on a highway or bridge by or under another section of this
chapter, the lesser gross weight as fixed, limited, or
restricted may not be exceeded and must control instead of the
gross weights set forth in this section.
(e) Notwithstanding any other provision of this
subdivision, no vehicle may exceed a total gross vehicle weight
of 80,000 pounds on routes which have not been designated by the
commissioner under section 169.832, subdivision 11.
Sec. 10. Minnesota Statutes 1984, section 169.832, is
amended by adding a subdivision to read:
Subd. 13. [RESTRICTIONS ON TRUNK HIGHWAYS.] (a) For
purposes of this section a "market artery" is a trunk highway or
segment thereof that:
(i) connects significant centers of population or commerce;
(ii) connects highways described in clause (i);
(iii) provides access to a transportation terminal; or
(iv) provides temporary emergency service to a particular
shipping or receiving point on a market artery.
(b) The commissioner may impose seasonal load restrictions
under section 169.87 on a market artery only after giving 30
days' notice to the chairs of the transportation and
appropriations committees of the house of representatives, and
the chairs of the transportation and finance committees of the
senate. The commissioner shall provide with each notice a plan
to improve the market artery within the next three years so that
seasonal load restrictions will not be necessary on it.
(c) The commissioner shall adopt rules under chapter 14
defining "significant centers of population and commerce" and
"temporary emergency service" for purposes of this section. In
drafting the rules, the commissioner shall consult with major
highway users, representatives of manufacturing, retail trade
and agriculture, local government and regional development
commissions. The commissioner shall consider the importance of
manufacturing, retailing, agriculture and natural resources in
promulgating the rule, and shall hold at least four public
meetings in various parts of the state prior to preparing the
final draft of the rule. Between the effective date of this
section and the effective date of the rule, "significant centers
of population and commerce" means all home rule charter or
statutory cities that had total retail sales of at least
$50,000,000 as reported in the 1982 census of retail trade of
the United States department of commerce.
Sec. 11. Minnesota Statutes 1984, section 169.86,
subdivision 2, is amended to read:
Subd. 2. [REQUIRED INFORMATION.] The application for any
such a permit shall specifically describe in writing the vehicle
or vehicles and loads to be moved and the particular highways
for which permit to so use is requested, and the period of time
for which such a permit is requested.
Sec. 12. Minnesota Statutes 1984, section 169.86,
subdivision 5, is amended to read:
Subd. 5. [FEES.] The commissioner, with respect to
highways under his jurisdiction, may charge a fee for each
permit issued. All such fees for permits issued by the
commissioner of transportation shall be deposited in the state
treasury and credited to the trunk highway fund. Except for
those annual permits for which the permit fees are specified
elsewhere in this chapter, the fees shall be:
(a) $15 for each single trip permit.
(b) $36 for each job permit. A job permit may be issued
for like loads carried on a specific route for a period not to
exceed two months. "Like loads" means loads of the same
product, weight and dimension.
(c) $60 for an annual permit to be issued for a period not
to exceed 12 consecutive months. Annual permits may be issued
for:
(1) refuse compactor vehicles that carry a gross weight up
to but not in excess of 22,000 pounds on a single rear axle and
not in excess of 38,000 pounds on a tandem rear axle;
(2) motor vehicles used to alleviate a temporary crisis
adversely affecting the safety or well-being of the public;
(3) motor vehicles which travel on interstate highways and
carry loads authorized under subdivision 1a;
(4) motor vehicles operating with gross weights authorized
under section 169.825, subdivision 11, paragraph (a), clause (3).
(d) $120 for an oversize annual permit to be issued for a
period not to exceed 12 consecutive months. Annual permits may
be issued for:
(1) truck cranes;
(2) construction equipment, machinery, and supplies;
(3) manufactured homes;
(4) farm equipment when the movement is not made according
to the provisions of section 169.80, subdivision 1, paragraphs
(a) to (f);
(5) double-deck buses;
(6) commercial boat hauling.
(e) for vehicles which have axle weights exceeding the
weight limitations of section 169.825, an additional cost added
to the fees listed above. The additional cost is equal to the
product of the distance traveled times the sum of the overweight
axle group cost factors shown in the following chart:
Overweight Axle Group Cost Factors
Weight (pounds) Cost Per Mile For Each Group Of:
exceeding Two consec- Three consec- Four consec-
weight limi- utive axles utive axles utive axles
tations on spaced within spaced within spaced with-
axles 8 feet or 9 feet or in 14 feet
less less or less
0-2,000 .100 .040 .036
2,001-4,000 .124 .050 .044
4,001-6,000 .150 .062 .050
6,001-8,000 Not permitted .078 .056
8,001-10,000 Not permitted .094 .070
10,001-12,000 Not permitted .116 .078
12,001-14,000 Not permitted .140 .094
14,001-16,000 Not permitted .168 .106
16,001-18,000 Not permitted .200 .128
18,001-20,000 Not permitted Not permitted .140
20,001-22,000 Not permitted Not permitted .168
The amounts added are rounded to the nearest cent for each
axle or axle group. The additional cost does not apply to
paragraph (c), clauses (1) and (3).
(f) As an alternative to paragraph (e), an annual permit
may be issued for overweight, or oversize and overweight,
construction equipment, machinery, and supplies. The fees for
the permit are as follows:
Gross Weight (pounds) of vehicle Annual Permit Fee
90,000 or less $200.00
90,001 - 100,000 $300.00
100,001 - 110,000 $400.00
110,001 - 120,000 $500.00
120,001 - 130,000 $600.00
130,001 - 140,000 $700.00
140,001 - 145,000 $800.00
If the gross weight of the vehicle is more than 140,000
145,000 pounds the permit fee is determined under paragraph (e).
(g) for vehicles which exceed the width limitations set
forth in section 169.80 by more than 72 inches, an additional
cost equal to $120 added to the amount in paragraph (a) when the
permit is issued while seasonal load restrictions pursuant to
section 169.87 are in effect.
Sec. 13. Minnesota Statutes 1985 Supplement, section
169.862, is amended to read:
169.862 [PERMITS FOR WIDE LOADS OF BALED AGRICULTURAL
PRODUCTS.]
The commissioner of transportation with respect to highways
under the commissioner's jurisdiction, and local authorities
with respect to highways under their jurisdiction, may issue an
annual permit to enable a vehicle carrying round bales of
agricultural products hay, straw, or cornstalks, with a total
outside width of the vehicle or the load not exceeding 11-1/2
feet, to be operated on public streets and highways. Permits
issued under this section are governed by the applicable
provisions of section 169.86 except as otherwise provided herein
and, in addition, carry the following restrictions:
(a) The vehicles may not be operated between sunset and
sunrise, when visibility is impaired by weather, fog, or other
conditions rendering persons and vehicles not clearly visible at
a distance of 500 feet, or on Sunday from noon until sunset, or
on the days the following holidays are observed: New Year's
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day, and Christmas Day.
(b) The vehicles may not be operated on interstate highways.
(c) The vehicles may not be operated on a trunk highway
with a pavement less than 24 feet wide.
(d) A vehicle operated under the permit must be equipped
with a retractable or removable mirror on the left side so
located that it will reflect to the driver a clear view of the
highway for a distance of at least 200 feet to the rear of the
vehicle.
(e) A vehicle operated under the permit must display red,
orange, or yellow flags, 18 inches square, as markers at the
front and rear and on both sides of the load. The load must be
securely bound to the transporting vehicle.
(f) Farm vehicles not for hire carrying round baled hay
less than 20 miles are exempt from the requirement to obtain a
permit. All other requirements of this section apply to
vehicles transporting round baled hay.
The fee for the permit is $24.
ARTICLE 14
RAILROAD PROPERTY FIRST REFUSAL
Section 1. [222.631] [DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of sections 1 to 3,
the following terms have the meanings given them.
Subd. 2. [FAIR MARKET VALUE.] "Fair market value" means
the price negotiated between the parties under section 2, or the
market value of the property minus the value of any leasehold
improvements, as determined by independent appraisers.
Subd. 3. [LEASEHOLDER.] "Leaseholder" means a person who
holds a lease, license, or permit with respect to property
within a right-of-way, and who has erected eligible leasehold
improvements on the property with a total fair market value of
$7,500 or more.
Subd. 4. [RAILROAD INTEREST.] "Railroad interest" includes
a railroad corporation, its trustee or successor in interest, a
railroad corporation which is in proceedings for bankruptcy
under federal law, and a nonrailroad holding corporation that
owns a controlling interest in a railroad.
Subd. 5. [RIGHT-OF-WAY.] "Right-of-way" has the meaning
given it in section 222.63, subdivision 1.
Sec. 2. [222.632] [RIGHT OF FIRST REFUSAL.]
A railroad interest that is in bankruptcy proceedings may
not sell or offer for sale an interest in real property that is
within the right-of-way, and a railroad interest that is
abandoning a railroad line may not sell or offer for sale an
interest in real property within the right-of-way to be
abandoned, unless it first extends a written offer to sell that
interest at a fair market value price to each person who is a
leaseholder with respect to the property. Leaseholders must
respond to the offer within 60 days of receipt of the notice and
the railroad interest must negotiate in good faith with an
interested leaseholder for a period of 90 days following the
leaseholder's response. After the 90-day negotiation period,
either party may file a notice of dispute with the board under
section 3. The property may not be sold to a party other than
the leaseholder during the response and negotiation periods or
while a dispute is pending before the board. This section does
not apply to a sale of an entire operating railroad line by one
operating railroad to another for the purpose of operating a
railroad.
Sec. 3. [222.633] [TRANSPORTATION REGULATION BOARD TO
RESOLVE DISPUTES.]
(a) A railroad interest or leaseholder may apply to the
transportation regulation board to resolve a dispute concerning
fair market value or other terms arising from negotiations under
section 2. The board must adopt guidelines without regard to
chapter 14 to implement section 2 and this section. The
guidelines must define the terms "leaseholders" and "railroad
interest," establish a procedure to resolve disputes, and
provide for the use of independent appraisers. Final rules must
be adopted no later than 360 days from the effective date of
this section.
(b) The board's decision is final for purposes of judicial
review and may be reviewed in the district court for the
jurisdiction where the property is located. The scope of
judicial review is limited to a determination whether
substantial evidence exists to support the board's decision.
Sec. 4. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 15
LANDLORD LIEN
Section 1. [514.960] [LANDLORD LIEN.]
Subdivision 1. [LIEN; ATTACHMENT.] A person or entity that
leases property for agricultural production has a lien for
unpaid rent on the crops produced on the property in the crop
year and on the crop products and their proceeds.
Subd. 2. [PERFECTION.] (a) To perfect a landlord lien, the
lien must attach and the person or entity entitled to the lien
must file a lien statement with the appropriate filing office
under section 336.9-401 by 30 days after the crops become
growing crops.
(b) A landlord lien that is not perfected has the priority
of an unperfected security interest under section 336.9-312.
Subd. 3. [DUTIES OF FILING OFFICER.] The filing officer
shall enter on the lien statement the time of day and date of
filing. The filing officer shall file, amend, terminate, note
the filing of a lien statement, and charge the fee for filing
under this section in the manner provided by section 336.9-403
for a financing statement. A lien statement is void and may be
removed from the filing system 18 months after the date of
filing. The lien statement may be physically destroyed after 30
months from the date of filing.
Subd. 4. [PRIORITY.] A landlord lien has priority over all
other liens or security interests in crops grown or produced on
the property that was leased and the crop products and proceeds.
Subd. 5. [ENFORCEMENT OF LIEN.] The holder of a landlord
lien may enforce the lien in the manner provided in sections
336.9-501 to 336.9-508, subject to section 550.17. For
enforcement of the lien, the lienholder is the secured party and
the person leasing the property is the debtor, and each has the
respective rights and duties of a secured party and a debtor
under sections 336.9-501 to 336.9-508. If a right or duty under
sections 336.9-501 to 336.9-508 is contingent upon the existence
of express language in a security agreement or may be waived by
express language in a security agreement, the requisite language
does not exist.
Subd. 6. [ENFORCEMENT ACTIONS; LIEN EXTINGUISHED.] An
action to enforce a landlord lien may be brought in district
court in a county where the property is located after the lien
is perfected. A lien statement may be amended, except the
amount demanded, by leave of the court in the furtherance of
justice. A landlord lien is extinguished if an action to
enforce the lien is not brought within 18 months after the date
the lien statement is filed.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 16
160 ACRE HOMESTEAD DECLARATION
Section 1. Minnesota Statutes 1984, section 510.02, is
amended to read:
510.02 [AREA, HOW LIMITED.]
The homestead may include any quantity of land not
exceeding 80 160 acres, and not included in the laid out or
platted portion of any city. If it be within the laid out or
platted portion of such place its area shall not exceed one-half
of an acre.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 17
ALTERNATIVE DISPUTE RESOLUTION
Section 1. Minnesota Statutes 1984, section 480.24, is
amended by adding a subdivision to read:
Subd. 5. [NONPROFIT REGIONAL ALTERNATIVE DISPUTE
RESOLUTION CORPORATION.] "Nonprofit regional alternative dispute
resolution corporation" means a nonprofit corporation which
trains and makes available to the public individuals who provide
fact-finding, conciliation, mediation, or nonbinding or binding
arbitration services.
Sec. 2. Minnesota Statutes 1984, section 480.242,
subdivision 2, is amended to read:
Subd. 2. [REVIEW OF APPLICATIONS; SELECTION OF
RECIPIENTS.] At times and in accordance with any procedures as
the supreme court adopts in the form of court rules,
applications for the expenditure of funds collected pursuant to
section 480.241 shall be accepted from qualified legal services
programs or from local government agencies and nonprofit
organizations seeking to establish qualified alternative dispute
resolution programs. The applications shall be reviewed by the
advisory committee, and the advisory committee, subject to
review by the supreme court, shall distribute the funds received
pursuant to section 480.241, subdivision 2 to qualified legal
services programs or to qualified alternative dispute resolution
programs submitting applications. Subject to the provisions of
subdivision 4, the funds shall be distributed in accordance with
the following formula:
(a) Eighty-five percent of the funds distributed shall be
distributed to qualified legal services programs that have
demonstrated an ability as of July 1, 1982, to provide legal
services to persons unable to afford private counsel with funds
provided by the federal Legal Services Corporation. The
allocation of funds among the programs selected shall be based
upon the number of persons with incomes below the poverty level
established by the United States Census Bureau who reside in the
geographical area served by each program, as determined by the
supreme court on the basis of the 1980 national census. All
funds distributed pursuant to this clause shall be used for the
provision of legal services in civil matters to eligible clients.
(b) Fifteen percent of the funds distributed may be
distributed (1) to other qualified legal services programs for
the provision of legal services in civil matters to eligible
clients, including programs which organize members of the
private bar to perform services and programs for qualified
alternative dispute resolution, or (2) to programs for training
mediators operated by nonprofit alternative dispute resolution
corporations. Grants may be made pursuant to this clause only
until June 30, 1987. If all the funds to be distributed
pursuant to this clause cannot be distributed because of
insufficient acceptable applications, the remaining funds shall
be distributed pursuant to clause (a).
Sec. 3. Minnesota Statutes 1984, section 572.33,
subdivision 1, is amended to read:
Subdivision 1. [SCOPE.] When used in Laws 1984, chapter
646, sections 1 to 7 sections 572.31 to 572.40 and section 6 the
terms defined in this section have the meanings given them.
Sec. 4. Minnesota Statutes 1984, section 572.33, is
amended by adding a subdivision to read:
Subd. 5. [NONPROFIT REGIONAL ALTERNATIVE DISPUTE
RESOLUTION CORPORATION.] "Nonprofit regional alternative dispute
resolution corporation" has the meaning given in section 1.
Sec. 5. Minnesota Statutes 1984, section 572.35, is
amended to read:
572.35 [EFFECT OF MEDIATED SETTLEMENT AGREEMENT.]
Subdivision 1. [GENERAL.] The effect of a mediated
settlement agreement shall be determined under principles of law
applicable to contract. A mediated settlement agreement is not
binding unless it contains a provision stating that it is
binding and a provision stating substantially that the parties
were advised in writing that (a) the mediator has no duty to
protect their interests or provide them with information about
their legal rights; (b) signing a mediated settlement agreement
may adversely affect their legal rights; and (c) they should
consult an attorney before signing a mediated settlement
agreement if they are uncertain of their rights.
Subd. 2. [DEBTOR AND CREDITOR MEDIATION.] In addition to
the requirements of subdivision 1, a mediated settlement
agreement between a debtor and creditor is not binding until 72
hours after it is signed by the debtor and creditor, during
which time either party may withdraw consent to the binding
character of the agreement.
Sec. 6. [572.41] [DEBTOR AND CREDITOR MEDIATION.]
Subdivision 1. [GENERAL.] The debtor and creditor in any
transaction may request the other party to the transaction to
enter mediation concerning possible adjustment, refinancing, or
payment under this section and sections 572.31 to 572.40.
Subd. 2. [MEDIATORS.] An individual who meets the
qualifications established under subdivision 5 and who is
willing to mediate in matters involving debtors and creditors
may register with a nonprofit regional alternative dispute
resolution corporation or, in a county where one does not exist,
with the court administrator. The court administrator shall
develop a list of mediators available in the county. It is
desirable but not necessary that mediators under this section
have knowledge of debtor and creditor law and relevant areas of
finance. A mediator must not mediate a matter involving a
debtor or creditor with whom the mediator has or has had a
credit relationship.
Subd. 3. [REQUEST FOR MEDIATOR.] A debtor and creditor who
agree to mediate may submit a written request for referral to a
mediator to the court administrator in the county where either
party resides or has a place of business. The court
administrator shall assign a mediator from the list developed
under subdivision 2. The court administrator may charge a fee
for the referral not to exceed the conciliation court fee in
that county.
Subd. 4. [COMPENSATION.] Prior to commencing mediation the
debtor and creditor shall agree with each other and the mediator
on the amount and allocation between them of any fee for the
mediator's services.
Subd. 5. [RULES.] The state court administrator, in
consultation with the bureau of mediation services, shall adopt
rules to implement this section and may use portions of existing
rules on certification of alternative dispute resolution
programs that satisfy the purposes of this section. The rules
must include qualifications of mediators under this section and
grounds for challenging and removing mediators.
Sec. 7. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 18
WILD RICE LAND
Section 1. Minnesota Statutes 1985 Supplement, section
92.50, subdivision 1, is amended to read:
Subdivision 1. [LEASE TERMS.] The commissioner of natural
resources may lease, at public or private vendue and at the
prices and under the terms and conditions he or she may
prescribe, any state-owned lands under his or her jurisdiction
and control for the purpose of taking and removing sand, gravel,
clay, rock, marl, peat, and black dirt, for storing ore, waste
materials from mines, or rock and tailings from ore milling
plants, for roads or railroads, or for any other uses consistent
with the interests of the state. Except as otherwise provided
in this subdivision, the term of the lease may not exceed ten
years. Leases of lands for storage sites for ore, waste
materials from mines, or rock and tailings from ore milling
plants, for the removal of peat, or for the use of peat lands
for agricultural purposes may not exceed a term of 25 years.
Leases for the removal of peat must be approved by the executive
council.
All leases must be subject to sale and leasing of the land
for mineral purposes and contain a provision for cancellation
for just cause at any time by the commissioner upon three six
months' written notice. A longer notice period, not exceeding
three years, may be provided in leases for storing ore, waste
materials from mines or rock or tailings from ore milling
plants. The commissioner may determine the terms and
conditions, including the notice period, for cancellation of a
lease for the removal of peat. Money received from leases under
this section must be credited to the fund to which the land
belongs.
Sec. 2. Minnesota Statutes 1985 Supplement, section
92.501, subdivision 1, is amended to read:
92.501 [LEASING OF PEAT LANDS FOR WILD RICE FARMING.]
Subdivision 1. [AUTHORITY TO LEASE.] The commissioner of
natural resources in consultation with the commissioner of
agriculture may, at a public or private lease sale and at the
prices and under the terms and conditions the commissioner
commissioners may prescribe, lease any state-owned lands under
the commissioner's jurisdiction and control for the purpose of
farming of wild rice. Priority must be given to lands which are
accessible and adjacent to existing wild rice production areas
and requested for leasing by wild rice producers. The term of a
lease under this section shall must be offered for a minimum of
20 years but may be for a shorter period at the option of the
lessee. If a lease is issued prior to the adoption of the rules
for the implementation of this section and for a period of less
than 20 years, the lease must be converted to a minimum 20-year
lease after the rules have been adopted, at the option of the
lessee. Leases must be accepted or denied within 60 days of
application. If a lease is denied, written notice must be given
stating reasons for denial. The lease rate shall must be
adjusted every five years to reflect market values. The money
received from the leases under this section shall must be
credited to the account that receives the proceeds of a sale of
the land.
Sec. 3. Minnesota Statutes 1985 Supplement, section
92.501, subdivision 2, is amended to read:
Subd. 2. [WILD RICE LAND DESIGNATION AND DEVELOPMENT.] The
commissioner of natural resources and the commissioner of
agriculture shall prepare a plan that designates state land for
wild rice production including an inventory of the number of
acres of land appropriate and suitable for wild rice development
and leasing in each county. Proposed mineral exploration does
not exempt land from being designated for wild rice development.
Sec. 4. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 19
DEFICIENCY JUDGMENTS
Section 1. [LEGISLATIVE FINDINGS.]
The legislature finds that there is a rural economic
emergency resulting from the agricultural economic depression.
Foreclosure sales and subsequent deficiency judgments are
debilitating the people foreclosed and taking away their hope
for readjustment after foreclosure, which is detrimental to the
welfare of the state.
Sec. 2. [580.225] [SATISFACTION OF JUDGMENT.]
The amount received from foreclosure sale under this
chapter is full satisfaction of the mortgage debt, except as
provided in section 5.
Sec. 3. Minnesota Statutes 1984, section 580.23,
subdivision 1, is amended to read:
580.23 [REDEMPTION BY MORTGAGOR.]
Subdivision 1. When lands have been sold in conformity
with the preceding sections of this chapter the mortgagor, his
personal representatives or assigns, within six months after
such sale, except as otherwise provided in subdivision 2, may
redeem such lands, as hereinafter provided, by paying the sum of
money for which the same were sold, with interest from the time
of sale at the rate provided to be paid on the mortgage debt
and, if no rate be provided in the mortgage note, at the rate of
six percent per annum, together with any further sums which may
be payable pursuant to section 582.03. Where the redemption
period is as provided in this subdivision the mortgagee, or his
successors, assigns, or personal representative, or any other
purchaser so purchasing at the sheriff's sale shall by
purchasing the property at the sheriff's sale thereby waive his
right to a deficiency judgment against the mortgagor.
Sec. 4. Minnesota Statutes 1984, section 581.09, is
amended to read:
581.09 [SATISFACTION OF JUDGMENT; EXECUTION FOR
DEFICIENCY.]
Upon confirmation of the report of sale, the clerk shall
enter satisfaction of the judgment to the extent of the sum bid
for the premises, less expenses and costs, and for any balance
of such judgment, execution may issue as in other cases; but no
such execution shall issue on the judgment until after a sale of
the mortgaged premises, and the application of the amount
realized as aforesaid. The amount entered is full satisfaction
of the judgment unless a deficiency is allowed under section 5.
If a deficiency judgment is allowed under section 5, the balance
of the judgment remaining unpaid may be executed and satisfied
in the same manner as a personal judgment against the mortgagor.
Sec. 5. [582.30] [DEFICIENCY JUDGMENTS.]
Subdivision 1. [DEFICIENCY ALLOWED.] (a) Except as
provided in this section, a person holding a mortgage may obtain
a deficiency judgment against the mortgagor if the amount a
person holding a mortgage receives from a foreclosure sale is
less than:
(1) the amount remaining unpaid on the mortgage under
chapter 580; or
(2) the amount of the judgment entered under chapter 581.
(b) Except as provided in subdivision 3, the judgment may
not be for more than the difference between the amount received
from the foreclosure sale less expenses and costs and:
(1) for a foreclosure by advertisement, the total amount
that attaches to the sale proceeds under chapter 580; or
(2) for a foreclosure by action, the amount of the judgment
entered under chapter 581.
Subd. 2. [GENERAL PROHIBITION FOR PROPERTY WITH A
SIX-MONTH REDEMPTION PERIOD.] A deficiency judgment is not
allowed if a mortgage is foreclosed by advertisement under
chapter 580, and has a redemption period of six months under
section 580.23, subdivision 1.
Subd. 3. [MORTGAGE ON AGRICULTURAL PROPERTY ENTERED AFTER
THE EFFECTIVE DATE OF THIS ARTICLE.] (a) If a mortgage entered
after the effective date of this article on property used in
agricultural production is foreclosed and sold, a deficiency
judgment may only be obtained by filing a separate action for a
deficiency judgment within 90 days after the foreclosure sale.
A court may allow a deficiency judgment only if it determines
that the sale of the property was conducted in a commercially
reasonable manner.
(b) The amount of the deficiency judgment is limited to the
difference of the fair market value of the property, and the
amount remaining unpaid on the mortgage if the foreclosure is
under chapter 580 or the amount of the judgment if the
foreclosure is under chapter 581. A separate jury proceeding
must be brought to determine the fair market value of the
property. The property may not be presumed to be sold for its
fair market value. A party adversely affected by a deficiency
judgment may submit evidence relevant to establishing the fair
market value of the property. Notice of the time and place
where the fair market value of the property is to be determined
must be given to all parties adversely affected by the judgment.
Subd. 4. [JUDGMENT ON MORTGAGE NOTE.] A personal judgment
may not be executed against a mortgagor liable on a mortgage
note entered after the effective date of this article secured by
real property used in agricultural production, unless the fair
market value of the property is determined by a jury in a
separate proceeding as provided in subdivision 3, paragraph
(b). The personal judgment on the mortgage note may not be for
more than the difference of the amount due on the note and the
fair market value of the property.
Subd. 5. [MORTGAGE ON AGRICULTURAL PROPERTY ENTERED ON OR
BEFORE THE EFFECTIVE DATE OF THIS ARTICLE.] (a) If a mortgage
entered on or before the effective date of this article on
property used in agricultural production is foreclosed and sold,
a deficiency judgment may only be obtained by filing a separate
action for a deficiency judgment within 90 days after the
foreclosure sale. A court may allow a deficiency judgment only
if it determines that the sale of the property was conducted in
a commercially reasonable manner.
(b) The amount of the deficiency judgment is limited to the
difference of the fair market value of the property, and the
amount remaining unpaid on the mortgage if the foreclosure is
under chapter 580 or the amount of the judgment if the
foreclosure is under chapter 581. A separate jury proceeding
must be brought to determine the fair market value of the
property. The property may not be presumed to be sold for its
fair market value. A party adversely affected by a deficiency
judgment may submit evidence relevant to establishing the fair
market value of the property. Notice of the time and place
where the fair market value of the property is to be determined
must be given to all parties adversely affected by the judgment.
Subd. 6. [JUDGMENT ON MORTGAGE NOTE.] A personal judgment
may not be executed against a mortgagor liable on a mortgage
note entered on or before the effective date of this article
secured by real property used in agricultural production, unless
the fair market value of the property is determined by a jury in
a separate proceeding as provided in subdivision 5, paragraph
(b). The personal judgment on the mortgage note may not be for
more than the difference of the amount due on the note and the
fair market value of the property.
Subd. 7. [STATUTE OF LIMITATIONS ON EXECUTING JUDGMENT.] A
deficiency judgment or personal judgment obtained to enforce a
mortgage debt on property used in agricultural production may be
enforced by execution, but the judgment may not be executed
after three years from the date judgment was entered.
Subd. 8. [POSTPONEMENT ON EXECUTING JUDGMENTS ON OR BEFORE
THE EFFECTIVE DATE OF THIS ARTICLE.] For a mortgage on property
used in agricultural production entered on or before the
effective date of this article, a deficiency judgment or
personal judgment to enforce the mortgage debt may not be
executed on real or personal property used for agricultural
production until one year after the effective date of this
article.
Subd. 9. [ATTACHMENT OF JUDGMENT AFTER JUDGMENT IS
ENTERED.] A deficiency judgment or personal judgment obtained to
enforce a mortgage debt on property used in agricultural
production does not attach to real or personal property that is
acquired by the mortgagor or debtor after the judgment is
entered.
Sec. 6. [582.31] [ONE ACTION ALLOWED TO ENFORCE
AGRICULTURAL MORTGAGE.]
(a) For a mortgage on property used in agricultural
production entered into on or before the effective date of this
article, the mortgagee may only proceed to:
(1) obtain a personal judgment for the debt owed on the
note secured by the mortgage and execute on the judgment; or
(2) foreclose the mortgage and obtain a deficiency
judgment, if allowed.
(b) An action under paragraph (a), either clause (1) or
(2), bars an action under the other clause.
Sec. 7. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 20
RIGHT OF FIRST REFUSAL
Section 1. Minnesota Statutes 1984, section 500.24, is
amended by adding a subdivision to read:
Subd. 6. [DISPOSAL OF LAND.] A state or federal agency or
a corporation, other than a family farm corporation or an
authorized farm corporation, when leasing or selling farm land
or a farm homestead, must offer or make a good faith effort to
offer land for sale or lease to the immediately preceding former
owner at a price no higher than the highest price offered by a
third party that is acceptable to the seller or lessor. An
offer delivered by certified mail to the former owner's last
known address is a good faith offer. This subdivision does not
apply to a sale or lease that occurs after the seller or lessor
has held the property for five years.
The former owner must exercise the right to lease farm land
within 30 days after receiving an offer to lease under this
subdivision. The former owner must exercise the right to buy
farm land within 90 days after receiving an offer to buy under
this subdivision.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 21
INVOLUNTARY FARM TRANSFER INCOME EXCLUSION
Section 1. Minnesota Statutes 1985 Supplement, section
290.01, subdivision 20b, is amended to read:
Subd. 20b. [MODIFICATIONS REDUCING FEDERAL ADJUSTED GROSS
INCOME.] There shall be subtracted from federal adjusted gross
income:
(1) interest income on obligations of any authority,
commission or instrumentality of the United States to the extent
includible in gross income for federal income tax purposes but
exempt from state income tax under the laws of the United States;
(2) the portion of any gain, from the sale or other
disposition of property having a higher adjusted basis for
Minnesota income tax purposes than for federal income tax
purposes, that does not exceed such difference in basis; but if
such gain is considered a long-term capital gain for federal
income tax purposes, the modification shall be limited to 40 per
centum of the portion of the gain;
(3) losses, not otherwise reducing federal adjusted gross
income assignable to Minnesota, arising from events or
transactions which are assignable to Minnesota under the
provisions of sections 290.17 to 290.20, including any capital
loss or net operating loss carryforwards or carrybacks or out of
state loss carryforwards resulting from the losses, and
including any farm loss carryforwards or carrybacks;
(4) if included in federal adjusted gross income, the
amount of any overpayment of income tax to Minnesota, or any
other state, for any previous taxable year, whether the amount
is received as a refund or credited to another taxable year's
income tax liability;
(5) the amount of any distribution from a qualified pension
or profit-sharing plan included in federal adjusted gross income
in the year of receipt to the extent of any contribution not
previously allowed as a deduction by reason of a change in
federal law which was not adopted by Minnesota law for a taxable
year beginning in 1974 or later;
(6) pension income as provided by section 290.08,
subdivision 26;
(7) the first $3,000 of compensation for personal services
in the armed forces of the United States or the United Nations,
and the next $2,000 of compensation for personal services in the
armed forces of the United States or the United Nations wholly
performed outside the state of Minnesota. This modification
does not apply to compensation defined in clause (6);
(8) unemployment compensation to the extent includible in
gross income for federal income tax purposes under section 85 of
the Internal Revenue Code of 1954;
(9) for an estate or trust, the amount of any income or
gain which is not assignable to Minnesota under the provisions
of section 290.17;
(10)(a) income from the business of mining as defined in
section 290.05, subdivision 1, clause (a) which is not subject
to the Minnesota income tax; (b) to the extent included in
computing federal adjusted gross income, expenses and other
items allocable to the business of mining or producing iron ore,
the mining or production of which is subject to the occupation
tax imposed by section 298.01, subdivision 1, shall be allowed
as a subtraction to the extent that the expenses or other items
are included in computing the modifications provided in section
290.01, subdivision 20a, clause (7) or paragraph (a) of this
clause and to the extent that the expenses or other items are
not deductible, capitalizable, retainable in basis, or taken
into account by allowance or otherwise in computing the
occupation tax. Occupation taxes imposed under chapter 298,
royalty taxes imposed under chapter 299, and depletion expenses
may not be subtracted under this paragraph;
(11) to the extent included in federal adjusted gross
income, distributions from a qualified governmental pension plan
which represent a return of designated employee contributions to
the plan and which contributions were included in gross income
pursuant to Minnesota Statutes 1984, section 290.01, subdivision
20a, clause (18). The provisions of this clause shall apply
before the provisions of clause (6) apply and an amount
subtracted under this clause may not be subtracted under clause
(6); and
(12) to the extent included in federal adjusted gross
income, distributions from an individual retirement account
which represent a return of contributions if the contributions
were included in gross income pursuant to Minnesota Statutes
1984, section 290.01, subdivision 20a, clause (17). The
distribution shall be allocated first to return of contributions
included in gross income until the amount of the contributions
has been exhausted;
(13) to the extent included in federal adjusted gross
income, income related to disposition of property used in a
family farm business as provided by section 290.08, subdivision
27.
Sec. 2. Minnesota Statutes 1984, section 290.08, is
amended by adding a subdivision to read:
Subd. 27. [FARM PROPERTY DISPOSITION INCOME.] For a
person, a family farm corporation, or an authorized farm
corporation, gross income does not include any gain realized
upon termination of a contract for deed, foreclosure of a
mortgage, or deed in lieu of foreclosure if a foreclosure
proceeding has been initiated or threatened in writing on real
or personal property used in a farm business that was owned and
operated by the taxpayer as the taxpayer's principal business.
For the purposes of this subdivision, real property includes any
dwellings located on the property. This modification does not
apply to any net cash proceeds distributed to the taxpayer after
discharge of the debt. For purposes of this subdivision "family
farm corporation" and "authorized farm corporation" are as
defined in section 500.24, subdivision 2, except that the term
"farming" as used in those definitions includes the production
of livestock, dairy animals or dairy products, poultry or
poultry products, fur-bearing animals, horticultural and nursery
stock that is covered by sections 18.44 to 18.61, fruit,
vegetables, forage, grain, and bees and apiary products.
Sec. 3. Minnesota Statutes 1985 Supplement, section
290.091, subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by
this section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of
the following for the taxable year:
(1) the taxpayer's federal adjusted gross income as defined
in the Internal Revenue Code;
(2) the taxpayer's federal tax preference items; less the
sum of
(i) interest income as defined in section 290.01,
subdivision 20b, clause (1); and
(ii) the amount of interest paid or accrued within the
taxable year on indebtedness to the extent that the amount does
not exceed qualified net investment income, as defined in
section 55(e)(5) of the Internal Revenue Code. Interest does
not include amounts deducted in computing federal adjusted gross
income or amounts that are not allowable under section 55(e)(8)
of the Internal Revenue Code; and
(iii) to the extent included in the taxpayer's federal
adjusted gross income, gain excluded from gross income under
section 290.01, subdivision 20b, clause (13).
In the case of an estate or trust, adjusted gross income
must be modified as provided in section 55(e)(6)(B) of the
Internal Revenue Code.
(b) "Federal tax preference items" means items as defined
in sections 57, 58, and 443(d) of the Internal Revenue Code,
modified as follows:
(1) The capital gain preference item shall be reduced
(i) where the gain would be modified because some or all of
the assets have a higher basis for Minnesota purposes than for
federal purposes; and
(ii) to the extent it includes gain excluded from gross
income under section 290.01, subdivision 20b, clause (13).
(2) In the case of a nonresident individual, or an estate
or trust, with a net operating loss that is a larger amount for
Minnesota than for federal, the capital gain preference item
shall be reduced to the extent it was reduced in the allowance
of the net operating loss.
(3) Federal preference items from the business of mining or
producing iron ore and other ores which are subject to the
occupation tax and exempt from taxation under section 290.05,
subdivision 1, shall not be a preference item for Minnesota.
(4) Other federal preference items to the extent not
allowed in the computation of Minnesota gross income, as
determined by the commissioner, are not preference items for
Minnesota.
(c) "Internal Revenue Code" means the Internal Revenue Code
of 1954, as amended through December 31, 1984.
(d) "Regular tax" means the tax that would be imposed under
this chapter (without regard to this section), reduced by the
sum of the nonrefundable credits allowed under this chapter.
Sec. 4. Minnesota Statutes 1985 Supplement, section
290.491, is amended to read:
290.491 [TAX ON GAIN; DISCHARGE IN BANKRUPTCY.]
(a) Any tax due under this chapter on a gain realized on a
forced sale pursuant to foreclosure of a mortgage or other
security interest in agricultural production property, other
real property, or equipment, used in a farm business that was
owned and operated by the taxpayer shall be a dischargeable debt
in a bankruptcy proceeding under United States Code, title 11,
section 727.
A gain (b) Income realized on a sale or exchange of
agricultural production property, other real property, or
equipment, used in a farm business that was owned and operated
by the taxpayer shall be exempt from taxation under this
chapter, if the taxpayer was insolvent at the time of the sale
and the proceeds of the sale were used solely to discharge
indebtedness secured by a mortgage, lien or other security
interest on the property sold. For purposes of this section,
"insolvent" means insolvent as defined in section 108(d)(3) of
the Internal Revenue Code of 1954, as amended through December
31, 1984. This paragraph applies only to the extent that the
gain is includable in federal adjusted gross income or in the
computation of the alternative minimum taxable income under
section 290.091 for purposes of the alternative minimum tax.
The amount of the exemption is limited to the excess of the
taxpayer's (1) liabilities over (2) the total assets and any
exclusion claimed under section 108 of the Internal Revenue Code
of 1954, as amended through December 31, 1985, determined
immediately before application of this paragraph.
(c) For purposes of this section, any tax due under this
chapter specifically includes, but is not limited to, tax
imposed under sections 290.02 and 290.03 on income derived from
a sale or exchange, whether constituting gain, discharge of
indebtedness or recapture of depreciation deductions, or the
alternative minimum tax imposed under section 290.091.
Sec. 5. [AMENDED RETURNS.]
Subdivision 1. [SPECIAL RULES.] An amended return filed on
the basis of this article for a taxable year beginning after
December 31, 1982, and before January 1, 1985, shall be filed no
later than June 30, 1987. Such a return may include a reduction
in gross income to effect subtraction of any amount added to
gross income for that year pursuant to Minnesota Statutes 1984,
section 290.01, subdivision 20a, clause (3), if the increase in
the federal tax liability was a result of recapture of the
investment tax credit attributable to disposition of property
described in section 2. Any reduction in income arising from a
farm pursuant to this article shall not be considered in the
computation of the farm loss modification under Minnesota
Statutes 1984, section 290.09, subdivision 29, in an amended
return. On an amended return for a taxable year beginning after
December 31, 1982, and before January 1, 1985, the minimum tax
imposed under Minnesota Statutes 1984, section 290.091, shall be
computed by subtracting from federal preference items the amount
of any gain excluded from gross income under section 290.01,
subdivision 20b, clause (13), that was included in the
taxpayer's federal preference items in that taxable year.
Subd. 2. [PAYMENT OF REFUNDS.] The commissioner of revenue
shall pay refunds to claimants who file amended returns based on
this article notwithstanding expiration of the period of
limitations in Minnesota Statutes, section 290.50, or any other
law. No interest will be paid on refunds paid on claims filed
for periods for which the statute of limitations had expired.
Sec. 6. [EFFECTIVE DATE.]
Sections 1, 2, and 4 are effective for taxable years
beginning after December 31, 1982. Section 3 is effective for
taxable years beginning after December 31, 1984.
ARTICLE 22
FARM ADVOCATE ETHICAL GUIDELINES
Section 1. [17.039] [ETHICAL GUIDELINES FOR FARM
ADVOCATES.]
The commissioner of agriculture shall establish not later
than August 1, 1986, ethical guidelines for farm advocates who
perform the duties of an advocate. The ethical guidelines must
be part of the contract with each advocate.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 23
FARM LOAN INTEREST BUY-DOWN
Section 1. [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 1 to 9.
Subd. 2. [APPROVED ADULT FARM MANAGEMENT PROGRAM.]
"Approved adult farm management program" means a farm management
training program designed for persons currently engaged in
farming that has been approved by the commissioner under section
4, subdivision 4.
Subd. 3. [COMMISSIONER.] "Commissioner" means the
commissioner of commerce.
Subd. 4. [COMMISSIONER'S INTEREST INDEX.] "Commissioner's
interest index" means an interest rate that is three percent
above the current lending rate of the Federal Interest Credit
Bank to production credit associations as certified each month
by the commissioner.
Subd. 5. [ELIGIBLE BORROWER.] "Eligible borrower" means a
farmer who applies to a lender for a farm operating loan between
the dates January 1, 1986, and December 30, 1986, and who meets
all qualifications established in section 2 and any further
qualifications that may be established in the program quidelines
adopted by the commissioner under section 4, subdivision 1.
Subd. 6. [FARM OPERATING LOAN.] "Farm operating loan"
means an original, extended, or renegotiated loan or line of
credit obtained by a farmer from a lender for the purpose of
financing the operations of a farm. A farm operating loan
includes an open line of credit even though the maximum
principal amount of the line of credit may not be drawn at any
one time. A farm operating loan eligible for interest rate
buy-down must have a maturity date of June 30, 1987, or earlier.
Subd. 7. [FARMER.] "Farmer" means a state resident or a
domestic family farm corporation as defined in section 500.24,
subdivision 2, operating a farm within the state.
Subd. 8. [INTEREST RATE BUY-DOWN; BUY-DOWN.] "Interest
rate buy-down" or "buy-down" means a reduction in the effective
interest rate on a farm operating loan made pursuant to sections
1 to 9 to an eligible borrower due to partial payment of
interest costs by the commissioner and partial payment of
interest costs by the participating lender.
Subd. 9. [LENDER.] "Lender" means a bank, a credit union,
or a savings and loan association chartered by the state or
federal government, a unit of the farm credit system, the
federal deposit insurance corporation, and other financial
institutions that the commissioner deems appropriate.
Subd. 10. [PARTICIPATING LENDER.] "Participating lender"
means a lender who has been granted participating lender status
by the commissioner.
Sec. 2. [FARMER ELIGIBILITY.]
Subdivision 1. [DEBT-TO-ASSET RATIO.] Only a farmer with a
debt-to-asset ratio exceeding 50 percent at the time of
application for a farm operating loan is an eligible borrower
for purposes of interest rate buy-down. The debt-to-asset ratio
of a farmer must be determined by the lender. A debt-to-asset
ratio determined by a lender is deemed to be reasonable and
accurate without further audit or substantiation.
Subd. 2. [ASSESSMENT OF CONTINUED VIABILITY.] Only a
farmer determined by the lender to have a reasonable opportunity
for long-term financial viability in the farmer's current farm
operation is an eligible borrower. A determination of financial
viability by a lender is deemed to be reasonable and accurate
without further audit or substantiation.
Subd. 3. [ENROLLMENT IN ADULT FARM MANAGEMENT PROGRAM.] To
be an eligible borrower, a farmer must agree to enroll in an
approved adult farm management program offered not more than 50
miles from the farmer's residence if enrollment is a condition
of receiving a farm operating loan from a participating lender.
Sec. 3. [LENDER ELIGIBILITY.]
Subdivision 1. [ELIGIBLE PARTICIPATING LENDER STATUS.] A
lender who meets all requirements established by the
commissioner must be certified as a participating lender.
Subd. 2. [PARTIAL PAYMENT FOR ADULT FARM MANAGEMENT
TRAINING.] A participating lender must agree to pay one-half of
the enrollment and tuition costs of an approved adult farm
management program for an eligible borrower approved by the
commissioner for interest rate buy-down. A participating lender
is not required to assist with enrollment or tuition costs for a
period longer than the term of the farm operating loan, and a
lender is not required to assist with the enrollment and tuition
costs for more than one individual for each farm operating loan.
Sec. 4. [RESPONSIBILITIES OF THE COMMISSIONER.]
Subdivision 1. [ADOPTION OF PROGRAM GUIDELINES.] Within 30
days after the effective date of sections 1 to 9, the
commissioner shall adopt and make available to any interested
party guidelines for the interest rate buy-down program
established in sections 1 to 9. To the maximum extent
practicable, the commissioner shall adopt guidelines that
coordinate the state program with any federal farm financial
relief program and make benefits of the state interest rate
buy-down program additive to the federal program. The
commissioner may adopt program guidelines without regard to
chapter 14.
Subd. 2. [PREPARATION AND DISTRIBUTION OF LENDER
PARTICIPATION FORMS.] The commissioner shall prepare and
distribute to all lenders in the state forms and instructions
for the program.
Subd. 3. [PREPARATION AND DISTRIBUTION OF LOAN APPLICATION
FORMS.] The commissioner shall prepare and distribute to all
participating lenders forms and instructions to be used in
applying for state interest rate buy-down payments.
Subd. 4. [APPROVAL OF ADULT FARM MANAGEMENT PROGRAMS.] The
commissioner, in consultation with the commissioner of
agriculture, shall prepare and distribute to all participating
lenders a list of adult farm management training programs
approved for eligible borrowers.
Subd. 5. [REVIEW OF APPLICATIONS FOR BUY-DOWN
PAYMENT.] The commissioner must review within five working days
of submission by a participating lender a properly completed
application for interest rate buy-down payments on a farm
operating loan made to a farmer. If a qualified lender does not
receive written notice that the commissioner has denied interest
rate buy-down payments within seven working days, the farmer is
an eligible borrower and interest rate buy-down payments on the
farm operating loan are approved by the commissioner.
Subd. 6. [BUY-DOWN PAYMENTS TO PARTICIPATING LENDERS.] The
commissioner shall make interest rate buy-down payments to
participating lenders as provided in this subdivision. An
amount equal to half of the expected interest rate buy-down
amount may be paid to the participating lender 30 days after the
loan is reviewed by the commissioner. If the participating
lender elects to receive the first half payment at a date later
than 30 days after the loan is reviewed by the commissioner, the
commissioner shall make the payment on the date requested. The
balance of the interest rate buy-down payment must be paid to
the participating lender not more than 30 days after the request
for final payment is received.
Sec. 5. [FARMER APPLICATION FOR INTEREST RATE BUY-DOWN.]
A participating lender must receive and evaluate loan
applications from any farmer who has transacted farm-related
borrowing with the lender within the prior three years or from a
farmer who has not previously established farm-related borrowing
or whose previous lender is no longer in the business of making
farm-related loans. The participating lender may use criteria
beyond those in section 2 in determining whether to make a farm
operating loan to a farmer.
Sec. 6. [APPLICATION BY PARTICIPATING LENDERS.]
In order to receive interest rate buy-down payments from
the state, a participating lender must submit to the
commissioner a properly completed application form for each farm
operating loan eligible for interest rate buy-down payments.
Sec. 7. [MAXIMUM INTEREST RATE.]
To qualify for interest rate buy-down payments, a
participating lender must offer to make a farm operating loan to
an eligible borrower at a rate of interest equivalent to that
offered to other farmers having similar security and financial
status but in no case may the interest rate exceed the current
commissioner's interest index. The commissioner may use
appropriate means to verify that the operating loan interest
rate available to an eligible borrower is substantially the same
as that available to other borrowers.
Sec. 8. [STATE CONTRIBUTION TO INTEREST BUY-DOWN.]
As provided in section 4, subdivision 6, the commissioner
shall pay to a participating lender for the first $100,000 of a
farm operating loan made to an eligible borrower an amount
equivalent to 37.5 percent of the contract interest to be paid
during the term of the farm operating loan.
Sec. 9. [LENDER CONTRIBUTION TO INTEREST BUY-DOWN.]
A participating lender must provide a reduction in interest
rate for the first $100,000 of a farm operating loan made to an
eligible borrower in an amount equivalent to 12.5 percent of the
contract interest rate to be paid during the term of the farm
operating loan.
Sec. 10. [EXISTING RESTRUCTURING PROGRAM; DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 10 to 12.
Subd. 2. [CLASSIFIED FARM LOAN.] "Classified farm loan"
means a farm loan that the lender determines to have a
substantial risk of nonpayment, so that the lender is likely to
sustain some loss if the borrower's paying capacity, net worth,
or collateral is not improved. The loan need not already have
been classified by a bank examiner.
Subd. 3. [COMMISSIONER.] "Commissioner" means the
commissioner of commerce.
Subd. 4. [COMMISSIONER'S INTEREST INDEX.] "Commissioner's
interest index" means an interest rate that is 2.3 percent above
the current lending rates of the federal intermediate credit
bank to production credit associations as certified each month
by the commissioner.
Subd. 5. [FARMER.] "Farmer" means a state resident
individual, or a domestic family farm corporation defined in
Minnesota Statutes, section 500.24, engaged in the business of
farming property in this state.
Subd. 6. [FARMERS HOME ADMINISTRATION.] "Farmers home
administration" means the farmers home administration of the
United States Department of Agriculture.
Subd. 7. [FARM LOAN.] "Farm loan" means a loan for
operating expenses or the purchase of property for a farm
business.
Subd. 8. [LENDER.] "Lender" means a bank, savings and loan
association, or credit union chartered by the state or federal
government, a farm credit system lender, and the Federal Deposit
Insurance Corporation.
Sec. 11. [QUALIFICATION OF LENDERS.]
(a) To qualify for an interest payment under sections 10 to
12, a lender must first sign an agreement with the commissioner
to follow the guidelines.
(b) A lender may not foreclose on a farm loan of a farmer
who has had a loan application submitted to the farmers home
administration under section 12 until (1) the lender certifies
to the commissioner that the farmer's loans have been submitted
to the farmers home administration for debt restructuring and
that the loan debt restructuring has been approved or denied, or
(2) 90 days have expired, whichever is earlier.
(c) The commissioner may not make an interest payment to a
lender for a loan under sections 10 to 12, if the lender has
foreclosed the loan.
Sec. 12. [INTEREST PAYMENT PROGRAM ON EXISTING FARM
LOANS.]
Subdivision 1. [COMMISSIONER PAYS INTEREST.] The
commissioner shall pay the interest attributable to the first 60
days of a 120-day period, on the first $25,000 of operating farm
loans and the first $25,000 of ownership farm loans of each
borrower submitted by a lender that signs an agreement under
section 11 to the farmers home administration for loan
guarantees and debt restructuring.
Subd. 2. [INTEREST.] The interest to be paid is the amount
that becomes attributable to the first 60-day period after the
lender signs the agreement with the commissioner under section
11. The amount to be paid is determined by the loan agreement
between the lender and the borrower.
Subd. 3. [CLASSIFIED FARM LOAN REVIEW.] During the first
60 days of the 120-day period after the agreement with the
commissioner in section 11 is signed, the lender must review all
classified farm loans and determine which farm loans the lender
will submit to the farmers home administration for loan
guarantees and debt restructuring.
Subd. 4. [LENDER-BORROWER AGREEMENT.] For each farm loan
that the lender submits to the farmers home administration for
loan guarantees and debt restructuring, the lender and the
borrower of the farm loan must sign an agreement. The agreement
must:
(1) state that the lender has agreed with the commissioner
not to foreclose on farm loans submitted, as specified in
section 11;
(2) state that the commissioner will pay the interest
attributable to the eligible portion of the farm loan submitted
to the farmers home administration for the first 60 days of the
120-day period if the lender qualifies for state interest
payment;
(3) state that the borrower is not liable for interest paid
by the commissioner;
(4) provide that if the lender qualifies for state interest
payments, the lender will assume responsibility for the interest
attributable to the eligible portion of the farm loan submitted
and the borrower is not liable for the interest except as
provided in clause (5); and
(5) provide that if the borrower agrees to have the farm
loan submitted and the farmers home administration guarantees
the loan, the lender may add the interest attributable to the
second 60 days of the period to the principal of the borrower's
farm loan.
Subd. 5. [PAYMENT APPLICATION.] The lender must apply to
the commissioner for the 60-day state interest payment on a farm
loan that is submitted to the farmers home administration. The
lender must give the commissioner evidence of the farm loan
submitted to the farmers home administration guaranteed loan
program and application for the farmers home administration
approved lenders program. A lender that complies with this
section is qualified to receive payment from the commissioner.
Sec. 13. [ELIGIBLE FARM OPERATING LOANS.]
Notwithstanding Laws 1985, chapter 4, as amended by Laws
1985, chapter 114, a farm operating loan due and payable by
April 1, 1986, and is otherwise eligible for the state interest
payment and the commissioner of commerce shall make the payment
if the loan was submitted by December 31, 1985.
Sec. 14. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 24
TANK SAFETY
Section 1. Minnesota Statutes 1985 Supplement, section
221.033, subdivision 3, is amended to read:
Subd. 3. [VARIANCE, RULES.] The commissioner shall adopt
rules which provide a procedure for granting a variance from
those regulations adopted under subdivision 1 which prescribe
specifications for tank motor vehicles used to transport
gasoline. The variance may be granted only to persons who
transport gasoline in for tank motor vehicles with a capacity of
3,000 gallons or less which are used to transport gasoline and
were designed and manufactured between 1950 and 1975 according
to American society of mechanical engineers specifications in
effect at the time of manufacture to transport petroleum
products. The commissioner shall prescribe alternative
requirements to assure the safety of the tank motor vehicles
operated under the variance, and shall register each tank motor
vehicle operated under the variance.
ARTICLE 25
PRIORITY LIEN STUDY
Section 1. [PRIORITY LIEN STUDY.]
The chairs of the house agriculture committee and the
senate agriculture and natural resources committee shall each
appoint eight members to a joint interim legislative committee
to study priority liens on agricultural products and the impact
of restricting short sales of raw agricultural products. At
least three members from each political party must be
represented by each house. The joint committee shall submit a
written report to the legislature by December 15, 1986.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 26
SOIL AND WATER PURIFICATION TEST
Section 1. [116.54] [INJECTION OF CERTAIN MATERIALS.]
Subdivision 1. [POLLUTION CONTROL AGENCY TO AUTHORIZE,
MONITOR.] The pollution control agency shall authorize and may
monitor not less than one or more than five projects to test the
controlled injection of oxygen-bearing materials and appropriate
microbiological systems into sites of water or soil
contamination. An applicant for authority to conduct one of the
tests shall describe to the agency plans for the test injection
project including at least the following:
(1) the quantity and type of chemicals and microbes to be
used in the injection project;
(2) the frequency and planned duration of the injections;
(3) test monitoring and evaluation equipment that will be
maintained at the site; and
(4) procedures for recording, analyzing, and maintaining
information on the injection project.
The applicant shall make available to the agency all
significant test results from the injection project. Trade
secret information, as defined in section 13.37, made available
by an applicant is classified as nonpublic data, pursuant to
section 13.02, subdivision 9, or private data on individuals,
pursuant to section 13.02, subdivision 12.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 27
DITCH CONSERVATION
Section 1. Minnesota Statutes 1985 Supplement, section
160.232, is amended to read:
160.232 [MOWING DITCHES OUTSIDE CITIES.]
Road authorities may not mow or till the right-of-way of a
highway located outside of a home rule charter or statutory city
except as allowed in this section and section 160.23.
(a) On any highway, the first eight feet away from the road
surface, or shoulder if one exists, may be mowed at any time.
(b) An entire right-of-way may be mowed after July 31.
From August 31 to the following July 31, the entire right-of-way
may only be mowed if necessary for safety reasons, and may not
be mowed to a height of less than 12 inches.
(c) A right-of-way may be mowed as necessary to maintain
sight distance for safety and may be mowed at other times under
rules of the commissioner, or by resolution of a local road
authority.
(d) A right-of-way may be mowed, burned, or tilled to
prepare the right-of-way for the establishment of permanent
vegetative cover or for prairie vegetation management.
Sec. 2. Minnesota Statutes 1984, section 160.27,
subdivision 5, is amended to read:
Subd. 5. [MISDEMEANORS.] Except for the actions of the
road authorities, their agents, employees, contractors, and
utilities in carrying out their duties imposed by law or
contract, and except as herein provided, it shall be unlawful to:
(1) Obstruct any highway or deposit snow or ice thereon;
(2) Plow or perform any other detrimental operation within
the road right of way except in the preparation of the land for
planting a perennial hay crop, and the harvesting of said
crop permanent vegetative cover;
(3) Erect a fence on the right of way of a trunk highway,
county state-aid highway, county highway or town road, except to
erect a lane fence to the ends of a livestock pass;
(4) Dig any holes in any highway; except to locate markers
placed to identify sectional corner positions and private
boundary corners.
(5) Remove any earth, gravel or rock from any highway;
(6) Obstruct any ditch draining any highway or drain any
noisome materials into any ditch;
(7) Place or maintain any building or structure within the
limits of any highway;
(8) Place or maintain any advertisement within the limits
of any highway;
(9) Paint, print, place, or affix any advertisement or any
object within the limits of any highway;
(10) Deface, mar, damage, or tamper with any structure,
work, material, equipment, tools, signs, markers, signals,
paving, guardrails, drains, or any other highway appurtenance on
or along any highway;
(11) Remove, injure, displace, or destroy right of way
markers, or reference or witness monuments, or markers placed to
preserve section or quarter section corners;
(12) Improperly place or fail to place warning signs and
detour signs as provided by law;
(13) Drive over, through, or around any barricade, fence,
or obstruction erected for the purpose of preventing traffic
from passing over a portion of a highway closed to public travel
or to remove, deface, or damage any such barricade, fence, or
obstruction.
Violations hereof shall be prosecuted by the county
attorney of the county where the violations occur. Any person
convicted of such violations shall be guilty of a misdemeanor.
Sec. 3. [REPORT.]
Subdivision 1. [INVESTIGATION.] The state soil and water
conservation board shall determine the length and area of
drainage ditches that are required to be planted with permanent
grass under section 106A.021 and prior law, and the enforcement
actions taken by the commissioner of natural resources or
enforcement personnel to maintain the grass strips.
Subd. 2. [COOPERATION.] The commissioner of
transportation, county highway engineers, the road authorities,
drainage authorities, and county auditors shall cooperate with
the state soil and water conservation board in conducting the
investigations.
Subd. 3. [REPORT TO LEGISLATURE.] The state soil and water
conservation board shall prepare a report on the information
collected under subdivision 1 and submit it to the legislature
by January 15, 1987.
Sec. 4. [EFFECTIVE DATE.]
This article is effective the day after final enactment.
ARTICLE 28
AGRICULTURAL LAND PRESERVATION
Section 1. [40A.151] [MINNESOTA CONSERVATION FUND.]
Subdivision 1. [ESTABLISHMENT.] The Minnesota conservation
fund is established as an account in the state treasury. Money
from counties under section 2 must be deposited in the state
treasury and credited to the Minnesota conservation fund account.
Subd. 2. [USE OF FUND.] Money in the fund is annually
appropriated to the commissioner of revenue to reimburse taxing
jurisdictions as provided in section 3 and section 473H.10.
Sec. 2. [40A.152] [COUNTY CONSERVATION FEE; ACCOUNT.]
Subdivision 1. [FEE.] A county that has allowed exclusive
agricultural zones to be created under chapter 40A, that has
designated lands eligible for agricultural preserves under
section 473H.04, or that has elected to become an agricultural
land preservation pilot county, shall impose an additional fee
of $3 per transaction on the recording or registration of a
mortgage subject to the tax under section 287.05 and an
additional $3 on the recording or registration of a deed subject
to the tax under section 287.21. One-half of the fee must be
deposited in a special conservation account to be created in the
county general revenue fund and one-half must be transferred to
the commissioner of revenue for deposit in the state treasury
and credited to the Minnesota conservation fund.
Subd. 2. [USE OF ACCOUNT.] Money from the county
conservation account must be spent by the county to reimburse
the county and taxing jurisdictions within the county for
revenue lost under the conservation tax credit under section 3
or the valuation of agricultural preserves under section
473H.10. Money remaining in the account after those payments
may be spent for the following purposes:
(1) agricultural land preservation and conservation
planning and implementation of official controls under this
chapter or chapter 473H;
(2) soil conservation activities and enforcement of soil
loss ordinances;
(3) incentives for landowners who create exclusive
agricultural use zones;
(4) payments to municipalities within the county for the
purposes of clauses (1) to (3).
Subd. 3. [TRANSFER TO STATE FUND.] Money in the county
conservation account that is not encumbered by the county within
one year of deposit in the account must be transferred to the
commissioner of revenue for deposit in the Minnesota
conservation fund.
Sec. 3. [273.119] [CONSERVATION TAX CREDIT.]
Subdivision 1. [ELIGIBILITY; AMOUNT OF CREDIT.] Land
located in an exclusive agricultural use zone created under
chapter 40A is eligible for a property tax credit of $1.50 per
acre. To qualify for the tax credit in any year the owner shall
file with the assessor by June 30 of that year a record of the
restrictive covenant received by the owner under section 40A.10,
subdivision 3. An owner who has given notice of termination of
the exclusive agricultural use zone under section 40A.11,
subdivision 2, is not eligible for the credit. The assessor
shall indicate the amount of the property tax reduction on the
property tax statement of each taxpayer receiving a credit under
this section. The credit paid pursuant to this section shall be
deducted from the tax due on the property before computation of
the homestead credit paid pursuant to section 273.13 and the
state agricultural credit paid pursuant to section 124.2137.
Subd. 2. [REIMBURSEMENT FOR LOST REVENUE.] The county may
transfer money from the county conservation account created in
section 2 to the county revenue fund to reimburse the fund for
the cost of the property tax credit. The county auditor shall
certify to the commissioner of revenue on or before June 1 of
each year the amount of tax lost to the county from the property
tax credit under subdivision 1 and the extent that the tax lost
exceeds funds available in the county conservation account. On
or before July 15 of each year, the commissioner shall reimburse
the county from the Minnesota conservation fund under section 1
for the taxes lost in excess of the county account.
Sec. 4. Minnesota Statutes 1985 Supplement, section
473H.10, subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF TAX; STATE REIMBURSEMENT.] (a)
After the assessor has determined the market value of all land
valued according to subdivision 2, he shall compute the assessed
value of those properties by applying the appropriate
classification percentages. When the county auditor computes
the rate of tax pursuant to section 275.08, he shall include the
assessed value of land as provided in this clause.
(b) The county auditor shall compute the tax on lands
valued according to subdivision 2 and nonresidential buildings
by multiplying the assessed value times the total rate of tax
for all purposes as provided in clause (a).
(c) The county auditor shall then compute the maximum ad
valorem property tax on lands valued according to subdivision 2
and nonresidential buildings by multiplying the assessed value
times 105 percent of the previous year's statewide average mill
rate levied on property located within townships for all
purposes.
(d) The tax due and payable by the owner of preserve land
valued according to subdivision 2 and nonresidential buildings
will be the amount determined in clause (b) or (c), whichever is
less. If the gross tax in clause (c) is less than the gross tax
in clause (b), the state shall reimburse the taxing
jurisdictions for the amount of difference. Residential
buildings shall continue to be valued and classified according
to the provisions of sections 273.11 and 273.13, as they would
be in the absence of this section, and the tax on those
buildings shall not be subject to the limitation contained in
this clause.
The county may transfer money from the county conservation
account created in section 2 to the county revenue fund to
reimburse the fund for the tax lost as a result of this
subdivision or to pay taxing jurisdictions within the county for
the tax lost. The county auditor shall certify to the
commissioner of revenue on or before June 1 the total amount of
tax lost to the county and taxing jurisdictions located within
his county as a result of this subdivision and the extent that
the tax lost exceeds funds available in the county conservation
account. Payments shall be made by the state as provided in
section 273.13, subdivision 15a to each of the affected taxing
jurisdictions if the county conservation account is insufficient
to make the reimbursement. There is annually appropriated from
the general fund in the state treasury Minnesota conservation
fund under section 1 to the commissioner of revenue an amount
sufficient to make the reimbursement provided in this
subdivision.
Sec. 5. [EFFECTIVE DATE.]
Section 3 is effective for taxes levied in 1987 and payable
in 1988 and after. Section 4 is effective June 1, 1987.
ARTICLE 29
APPROPRIATION
Section 1. [APPROPRIATIONS.]
Subdivision 1. [LEGAL ASSISTANCE PROGRAM.] $650,000 is
appropriated from the general fund to the supreme court for the
purposes of article 3, for the biennium ending June 30, 1987.
Subd. 2. [MEDIATION.] $360,000 is appropriated from the
general fund to the University of Minnesota agricultural
extension service for purposes of article 1 for the biennium
ending June 30, 1987.
Subd. 3. [INTEREST RATE BUY-DOWN.] $5,000,000 is
appropriated from the general fund to the commissioner of
commerce for purposes of article 23 and $75,000 of it may be
spent for administrative expenses related to article 23 for the
biennium ending June 30, 1987.
Subd. 4. [FAMILY FARM ADVOCATE PROGRAM.] $300,000 is
appropriated from the general fund to the commissioner of
agriculture for the farm advocates program, for the biennium
ending June 30, 1987.
Subd. 5. [DATA COLLECTION TASK FORCE.] $10,500 is
appropriated from the general fund to the legislative advisory
commission to fund the activities of the agricultural data
collection task force pursuant to article 11.
Subd. 6. [FAMILY FARM SECURITY ACT ADDITIONAL INTEREST
PAYMENTS.] $740,000 is appropriated to the commissioner of
agriculture from the general fund for the biennium ending June
30, 1987 in order to make the payments required by article 8.
Subd. 7. [AVTI AND UNIVERSITY OF MINNESOTA TECHNICAL
COLLEGES TUITION SUPPLEMENT.] $1,350,000 is appropriated from
the general fund to the state board of vocational technical
education, for the biennium ending June 30, 1987, for the
following services in proportions deemed necessary by the board
to the agricultural vocational technical institutes and the
University of Minnesota two-year technical colleges for:
(1) reduced tuition costs for existing farm business
management and small business management programs; and
(2) additional farm business management programs and
workshops.
Subd. 8. [AGRICULTURAL EXTENSION SERVICE PROJECTS.]
$1,250,000 is appropriated from the general fund to the board of
regents of the University of Minnesota, to be available until
June 30, 1987, for the following agricultural extension service
projects: voluntary mediation training, project support
program, farm financial management program, family financial and
stress management education, community economy development
education, information exchange for sustainable farming methods
including methods that decrease per unit cost of production and
increase net income, and forest product marketing.
Subd. 9. [MINNESOTA RURAL FINANCE ADMINISTRATION.] $4,802,000
is appropriated to the commissioner
of finance from the general fund for purposes of article 6. Of
this amount, $4,564,000 is exclusively for debt service of bonds
issued under article 6, and $238,000 is for administrative
costs. The complement of the department is increased by 5.0
positions. If the program is found to be unconstitutional, the
balance of this appropriation shall be transferred to the
interest buy-down program in article 23.
Subd. 10. ["FINPAC."] $72,500 is appropriated from the
general fund to the commissioner of finance to be available for
grants to the Farmers Home Administration to continue the
administration's FINPAC capability on the University of
Minnesota's mainframe computer and to upgrade the
administration's "FINPAC" farm financial analysis software for
micro computers as needed to establish compatibility with
"FINPAC" analyses prepared by county extension agents or adult
farm management instructors. This appropriation is for the
biennium ending June 30, 1987.
Subd. 11. [AGRICULTURAL EXPERIMENT STATION RESEARCH
PROJECTS.] $250,000 is appropriated from the general fund to the
board of regents of the University of Minnesota for agricultural
experiment station research projects relating to water quality
problems associated with the application of chemical inputs in
production agriculture, for the biennium ending June 30, 1987.
Subd. 12. [AGRICULTURAL EXTENSION SERVICE RETRENCHMENT.]
$115,000 is appropriated from the general fund to the board of
regents of the University of Minnesota for the Minnesota
extension service to offset scheduled reduction of county
extension agents. It is requested that consideration be made
for those counties with the greatest need for mediation
services. This appropriation is for the biennium ending June
30, 1987.
Subd. 13. [SWEET SORGHUM RESEARCH.] $60,000 is
appropriated to the state board of vocational technical
education for continuation of a demonstration project at the
Mankato vocational technical institute involving butanol and
ethanol production from sweet sorghum, for the biennium ending
June 30, 1987.
Subd. 14. [WILD RICE RESEARCH.] $40,000 is appropriated
from the general fund to the University of Minnesota
agricultural experimental stations for wild rice research to be
available until June 30, 1987, as follows:
(a) for elimination of volunteer seeds $10,000
(b) to develop plants resistant to leaf
diseases 10,000
(c) to develop higher yielding wild rice 10,000
(d) acquisition and preparation of a peat
research site 5,000
(e) approving herbicides and pesticides
that will not affect food value of
rice 5,000
Subd. 15. [FARM LAND CAPITAL GAIN EXCLUSION.] $1,000,000
is appropriated from the general fund to the commissioner of
revenue to make the payments required in article 21, to be
available for the biennium ending June 30, 1987.
Approved March 21, 1986
Official Publication of the State of Minnesota
Revisor of Statutes