Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1988, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1988
CHAPTER 688-H.F.No. 1000
An act relating to agriculture; providing alternatives
for meaningful long-term benefits to Minnesota
agriculture; providing initiatives for farmers to use
sustainable agriculture; developing agricultural
practices that minimize the use of energy in
production agriculture; establishing a study of the
use of Minnesota grown products under certain
conditions; establishing a rural health and safety
program; establishing a Minnesota dairy task force;
authorizing different versions of the Minnesota grown
label; establishing a program to certify soil testing
laboratories; prescribing periodic review of grain
testing equipment; authorizing a soil buffering
demonstration project; authorizing designation of
organic certification agencies; requiring crop hail
insurance providers to file rates; authorizing the
rural finance authority to implement a
seller-sponsored loan program; amending requirements
of rural finance authority loan programs; adjusting
interest rate buy-down program eligibility; extending
deadline for seed potato standards; providing for
certain ethanol development payments; establishing a
school milk program; establishing a laboratory
services account; establishing a degradable plastics
task force; restricting use of certain plastic
products; regulating dry edible beans; establishing an
agricultural contract task force; regulating the
marketing of certain grains; appropriating money;
amending Minnesota Statutes 1986, sections 17B.02;
41A.09, by adding a subdivision; 41B.02, by adding a
subdivision; 223.16, subdivision 4; 232.21,
subdivision 7; and 232.23, subdivision 4, and by
adding a subdivision; Minnesota Statutes 1987
Supplement, sections 17.102, subdivision 1; 17B.05;
41B.01, subdivision 2; 41B.03, subdivision 3; 41B.039,
subdivisions 1, 2, and 4; and 41B.05; Laws 1987,
chapters 124, section 2; and 396, article 9, section
1, subdivision 4; proposing coding for new law in
Minnesota Statutes, chapters 16B; 17; 17B; 31; 32;
60A; 124; and 325E.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA AGRICULTURAL PRODUCTS
Section 1. [16B.103] [AGRICULTURAL FOOD PRODUCTS GROWN IN
STATE.]
Subdivision 1. [STATE CONTRACTS.] The commissioner shall
encourage and make a reasonable attempt to identify and purchase
food products that are grown in this state.
Subd. 2. [REPORT.] The commissioner shall prepare a report
at the end of each biennium and submit it to the committees on
agriculture of the house of representatives and senate on the
total food products purchased or contracted for by agencies and
the amounts of fruits, vegetables, grains, meats, poultry, and
other food products purchased or contracted for that are grown
in this state.
Sec. 2. [AGRICULTURAL PRODUCT USE REPORT.]
The commissioner of agriculture shall investigate the use
of agricultural products to discern the opportunity for
expansion of market share by agricultural producers in the
state. This investigation must include franchised food chain
and restaurant establishments selling prepared food in this
state. The commissioner shall submit a report of the
investigation to the committees on agriculture of the house of
representatives and senate by January 31, 1989.
Sec. 3. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
Section 1 applies to contracts entered into by the state after
June 30, 1988.
ARTICLE 2
RURAL HEALTH AND SAFETY PROGRAM
Section 1. [137.34] [PROGRAM ESTABLISHED.]
Subdivision 1. [PROGRAM ESTABLISHED.] The Minnesota
extension service is instructed to develop and implement an
ongoing program for rural health and safety.
Subd. 2. [PROGRAM GOALS.] (a) During fiscal years 1989 and
1990, priority goals of the rural health and safety program must
include the following:
(1) assessment of the availability of high quality farm
safety education and training materials and programs and
identification of any barriers to increasingly widespread
acceptance and utilization of these materials and programs;
(2) design, coordination, conduct, and interpretation of
statewide rural health and safety studies;
(3) evaluation of the concept of voluntary farm safety
audits and the possibility that those audits might be linked to
an appropriate recognition or reward system including reduced
insurance premiums for farmsteads that achieve a particularly
good safety rating;
(4) development of joint educational programs and effective
working relationships among the Minnesota agencies and
organizations having rural health and safety concerns; and
(5) development of effective working relationships and
information sharing arrangements with agencies and organizations
in other states of the upper midwest that have rural health and
safety concerns.
(b) The director of the Minnesota extension service shall
report to the committees on agriculture of the house of
representatives and senate on the findings and recommendations
of the rural health and safety program by March 1, 1989.
Subd. 3. [RESPONSIBILITIES.] The rural health and safety
program in the Minnesota extension service has the following
ongoing responsibilities:
(1) to develop programs and materials related to farm
accident prevention;
(2) to develop and implement educational programs that will
enable rural residents to understand and comply with safety
standards and good health practices;
(3) to maintain cooperation and effective working
relationships with health and safety agencies and organizations
in Minnesota, other states, and the United States government;
and
(4) to seek and efficiently utilize grant money made
available for programs relating to rural and farm safety.
Subd. 4. [PROGRAM FUNDING.] Money for support of the rural
health and safety program in the Minnesota extension service may
be accepted from the following sources:
(1) legislative appropriations from the general fund;
(2) funds from other sources within the University of
Minnesota and the extension service to the extent not precluded
by other law; and
(3) gifts or grants from individuals, organizations,
governmental units, foundations, corporations, or other sources
except that no restrictions may be placed by the giver with
respect to the functions, duties, and responsibilities of the
program.
ARTICLE 3
DAIRY TASK FORCE
Section 1. [MINNESOTA DAIRY TASK FORCE.]
Subdivision 1. [ESTABLISHMENT.] The Minnesota dairy task
force is established consisting of:
(1) the commissioner of agriculture or the commissioner's
designee, who is a nonvoting member;
(2) a representative from the University of Minnesota
designated by the dean of the college of agriculture, who is a
nonvoting member;
(3) two members representing dairy processors of class I
and class II milk appointed by the governor;
(4) one member representing the dairy herd improvement
association appointed by the governor;
(5) two class I milk producers appointed by the governor;
(6) two class II milk producers appointed by the governor;
(7) one dairy farmer at-large appointed by the governor;
and
(8) one retail grocer appointed by the governor.
Subd. 2. [OBJECTIVES.] The objectives of the Minnesota
dairy task force are to:
(1) increase production efficiency of dairy cow herds;
(2) reduce input costs of production;
(3) increase profitability of individual dairy farms; and
(4) establish long-range goals, objectives, and time line
achievement strategies for the dairy industry.
Subd. 3. [DUTIES.] The Minnesota dairy task force shall by
June 1, 1989:
(1) gather existing information on increasing milk
production efficiency of dairy cow herds, reducing input costs,
and increasing profitability of dairy farms;
(2) establish a mechanism to disseminate gathered
information to dairy farmers in a practical form;
(3) examine computerized analysis of dairy records and the
available software, and recommend practical alternatives for
dairy farmers to use computerized analysis;
(4) develop a preliminary draft of long-range goals,
objectives, and time line achievement strategies for the dairy
industry;
(5) study alternatives for component pricing of milk;
(6) recommend legislation needed to accomplish the
objectives and goals in subdivision 2; and
(7) examine available data on patterns and relationships
between changes in the purchase price of raw milk from dairy
farmers and changes in the retail price of dairy products
purchased by the consumer.
Subd. 4. [PILOT PROJECTS; DEMONSTRATIONS.] The task force
may sponsor and oversee pilot projects and demonstrations on
dairy farms. The projects must be of general applicability to
family size dairy farms of the state. Pilot projects and
demonstrations must apply strategies and practices for
increasing the profitability of dairy farms and increasing
income levels for individual dairy farmers.
Sec. 2. [REPORT.]
The Minnesota dairy task force shall prepare and submit an
interim report on its activities, accomplishments, and
recommendations to the committees on agriculture of the senate
and house of representatives by February 1, 1989.
Sec. 3. [REPEALER.]
Section 1 is repealed effective June 30, 1990.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 and 2 are effective July 1, 1988.
ARTICLE 4
MINNESOTA GROWN LABEL
Section 1. Minnesota Statutes 1987 Supplement, section
17.102, subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT AND USE OF LABEL.] (a) The
commissioner shall establish a "Minnesota grown" logo or
labeling statement for use in identifying agricultural products
that are grown, processed, or manufactured in this state. The
commissioner may develop labeling statements that apply to
specific marketing or promotional needs. One version of a
labeling statement must identify food products certified as
organically grown in this state. The Minnesota grown logo or
labeling statement may be used on raw agricultural products that
are not processed into a different physical form or frozen, only
if 80 percent or more of the agricultural product is produced in
this state.
(b) The Minnesota grown logo or labeling statement may not
be used without a license from the commissioner except that
wholesalers and retailers may use the Minnesota grown logo and
labeling statement for displaying and advertising products that
qualify for use of the Minnesota grown logo or labeling
statement.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 5
SOIL TEST LABORATORY CERTIFICATION
Section 1. [17.73] [SOIL TESTING LABORATORY
CERTIFICATION.]
Subdivision 1. [PROGRAM ESTABLISHMENT.] The commissioner
shall establish a program to certify the accuracy of analyses
from soil testing laboratories and promote standardization of
soil testing procedures and analytical results.
Subd. 2. [CHECK SAMPLE SYSTEM.] (a) The commissioner shall
institute a system of check samples that requires a laboratory
to be certified to analyze at least four multiple soil check
samples during the calendar year. The samples must be supplied
by the commissioner or by a person under contract with the
commissioner to prepare and distribute the samples.
(b) Within 30 days after the laboratory receives check
samples, the laboratory shall report to the commissioner the
results of the analyses for all requested elements or compounds
or for the elements or compounds the laboratory makes an
analytical determination of as a service to others.
(c) The commissioner shall compile analytical data
submitted by laboratories and provide laboratories submitting
samples with a copy of the data without laboratory names or code
numbers.
(d) The commissioner may conduct check samples on
laboratories that are not certified.
Subd. 3. [ANALYSES REPORTING STANDARDS.] (a) The results
obtained from soil or plant analysis must be reported in
accordance with standard reporting units established by the
commissioner by rule. The standard reporting units must conform
as far as practical to uniform standards that are adopted on a
regional or national basis.
(b) If a certified laboratory offers a recommendation, the
University of Minnesota recommendation or that of another land
grant college in a contiguous state must be offered in addition
to other recommendations, and the source of the recommendation
must be identified on the recommendation form. If relative
levels such as low, medium, or high are presented to classify
the analytical results, the corresponding relative levels based
on the analysis as designated by the University of Minnesota or
the land grant college in a contiguous state must also be
presented.
Subd. 4. [REVOCATION OF CERTIFICATION.] If the
commissioner determines that analysis being performed by a
laboratory is inaccurate as evidenced by check sample results,
the commissioner may deny, suspend, or revoke certification.
Subd. 5. [CERTIFICATION FEES.] (a) A laboratory applying
for certification shall pay an application fee of $100 and a
certification fee of $100 before the certification is issued.
(b) Certification is valid for one year and the renewal fee
is $100. The commissioner shall charge an additional
application fee of $100 if a certified laboratory allows
certification to lapse before applying for renewed certification.
(c) The commissioner shall notify a certified lab that its
certification lapses within 30 to 60 days of the date when the
certification lapses.
(d) Fees collected under this subdivision must be deposited
in the state treasury and credited to the laboratory services
account. The money in the account is annually appropriated to
the commissioner to administer this section.
Subd. 6. [RULES.] The commissioner shall adopt rules for
the establishment of minimum standards for laboratories,
equipment, procedures, and personnel used in soil analysis and
rules necessary to administer and enforce this section. The
commissioner shall consult with representatives of the
fertilizer industry, representatives of the laboratories doing
business in this state, and with the University of Minnesota
college of agriculture before proposing rules.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 6
GRAIN MARKETING
Section 1. Minnesota Statutes 1986, section 17B.02, is
amended to read:
17B.02 [DEFINITIONS.]
Subdivision 1. [SCOPE.] As used in sections 17B.01 to
17B.29, the terms defined in this section have the meanings
given them.
Subd. 2. [DEPARTMENT.] "Department" means the Minnesota
department of agriculture.
Subd. 3. [COMMISSIONER.] "Commissioner" means the
commissioner of agriculture or the commissioner's authorized
representative.
Subd. 3a. [DISCOUNT.] "Discount" means an offer or
purchase price for grain that is lower than the base or standard
price offered by a buyer at a certain time and at a specified
location. A discount price represents the lower than normal
value of the grain because of inferior quality as determined by
measurement of grade, dockage, test weight, or other factors.
Subd. 4. [PERSON.] "Person" means any individual, firm,
copartnership, cooperative, company, association, and
corporation, or their lessees, trustees, or receivers.
Subd. 5. [PREMIUM.] "Premium" means an offer or a purchase
price for corn, soybeans, or wheat that exceeds the base or
standard price offered by a buyer at a certain time and at a
specified location. A premium price represents the higher than
normal value of the grain because of superior quality as
determined by measurement of grade, dockage, test weight, or
other factors.
Subd. 6. [TEST EQUIPMENT.] "Test equipment" means the
mechanical and electronic devices commonly used in measurement
of grain qualities including protein content, moisture content,
and test weight.
Subd. 7. [TEST EQUIPMENT OPERATOR.] "Test equipment
operator" means a person assigned by the management of an
elevator or grain storage facility who is chiefly responsible
for the preparation and analysis of grain samples for protein
content, test weight, moisture content, and other qualities upon
which price is determined.
Sec. 2. [17B.041] [COMMISSIONER TO REVIEW ACCURACY OF TEST
EQUIPMENT AND TEST EQUIPMENT OPERATORS.]
Subdivision 1. [PERIODIC REVIEW; EQUIPMENT AND OPERATORS.]
The commissioner shall implement, by rule or emergency rule, a
program for the periodic review of protein analysis, test
weight, dockage testing devices, moisture testing equipment, and
other equipment used to determine qualities upon which price is
determined, and the operators of the equipment. If a review is
performed by department personnel at the site of the test
equipment, the review must consist of the performance of routine
tests and analysis on one or more samples of grain by the
principal operator of the test equipment.
Subd. 2. [TAGGING OF OUT-OF-COMPLIANCE TEST
EQUIPMENT.] Personnel of the department who perform an on-site
review of test equipment and operators shall prohibit the
further use of test equipment that fails to meet and maintain
acceptable tolerance levels established by rule.
Subd. 3. [FOLLOW-UP REVIEW UPON REQUEST.] The commissioner
shall arrange for a follow-up review within seven business days
of a periodic review if a follow-up review is requested by the
test equipment operator.
Subd. 4. [REQUEST FOR COMMISSIONER TO SCHEDULE A REVIEW.]
A purchaser or seller of grain may request the commissioner to
perform a review of the test equipment and test equipment
operator that is used to test the grain. A signed request must
be submitted to the commissioner and upon receipt of a request,
the commissioner shall schedule a review at a reasonable time
considering other duties and responsibilities of the department
personnel.
Subd. 5. [STATE NOT LIABLE.] The state is not liable to a
seller or purchaser of grain for losses resulting from erroneous
tests or analysis by test equipment or test equipment operators,
whether reviewed by the department or not, if the commissioner
and the department have exercised due care in the scheduling and
conduct of reviews under subdivisions 1 and 3.
Sec. 3. [17B.0451] [PREMIUMS BASED ON CORN TEST WEIGHT
MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of corn who provides a discount for corn that
falls below the standard test weight for corn must offer an
equal or greater premium for corn that has a test weight higher
than the standard test weight.
Sec. 4. [17B.0452] [PREMIUMS BASED ON SOYBEAN TEST WEIGHT
MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of soybeans who provides a discount for
soybeans that fall below the standard test weight for soybeans
must offer an equal or greater premium for soybeans that have a
test weight higher than the standard test weight.
Sec. 5. [17B.0453] [PREMIUMS BASED ON TEST WHEAT WEIGHT
MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of wheat who provides a discount for wheat that
falls below the standard test weight for wheat must offer an
equal or greater premium for wheat that has a test weight higher
than the standard test weight.
Sec. 6. [17B.0461] [PREMIUMS BASED ON FOREIGN MATERIAL IN
CORN MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of corn who provides a discount for corn that
falls below the standard for foreign material for corn must
offer an equal or greater premium for corn that has less foreign
material than the standard. For corn, foreign material includes
broken corn and foreign material.
Sec. 7. [17B.0462] [PREMIUMS BASED ON FOREIGN MATERIAL IN
SOYBEANS MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of soybeans who provides a discount for
soybeans that fall below the standard for foreign material for
soybean must offer an equal or greater premium for soybeans that
have less foreign material than the standard.
Sec. 8. [17B.0463] [PREMIUMS BASED ON FOREIGN MATERIAL IN
WHEAT MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of wheat who provides a discount for wheat that
falls below the standard for foreign material for wheat must
offer an equal or greater premium for wheat that has less
foreign material than the standard.
Sec. 9. [17B.0471] [PREMIUMS BASED ON TOTAL DAMAGED CORN
KERNELS MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of corn who provides a discount for corn that
falls below the standard for total damaged kernels for corn must
offer an equal or greater premium for corn that has less total
damaged kernels than the standard.
Sec. 10. [17B.0472] [PREMIUMS BASED ON TOTAL DAMAGED
SOYBEAN KERNELS MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of soybeans who provides a discount for
soybeans that fall below the standard for total damaged kernels
for soybeans must offer an equal or greater premium for soybeans
that have less total damaged kernels than the standard.
Sec. 11. [17B.0473] [PREMIUMS BASED ON TOTAL DAMAGED WHEAT
KERNELS MUST EQUAL OR EXCEED DISCOUNTS.]
A purchaser of wheat who provides a discount for wheat that
falls below the standard for total damaged kernels for wheat
must offer an equal or greater premium for wheat that has less
total damaged kernels than the standard.
Sec. 12. [17B.048] [SELLER OPTION TO AVERAGE LOADS.]
A purchaser of corn, soybeans, or wheat must allow a seller
who delivers the grain in multiple loads within a period of two
consecutive calendar days, at the option of the seller, to
average the measurements from the multiple loads with respect to
test weight, moisture content, and protein analysis. All loads
allowed to be averaged under this section must be of a quality
acceptable to the purchaser.
Sec. 13. Minnesota Statutes 1987 Supplement, section
17B.05, is amended to read:
17B.05 [DISPUTES ON GRADES, DOCKAGE; STATE ARBITRATION.]
(a) If a disagreement arises between a person receiving and
a person delivering grain in this state as to the proper grade,
dockage, moisture content, protein content, or other factors
used in establishing the market price of the grain, an average
sample of the grain in dispute may be taken by either or both of
the parties interested. The commissioner shall prescribe a
procedure for taking samples and having the samples certified by
both the person receiving and the person delivering the grain as
being true samples of the grain in dispute on the day the grain
is delivered and sampled. Samples must be forwarded prepaid in
suitable air-tight containers, with the names and addresses of
the person receiving and the person delivering the grain, to the
head of the grain inspection division of the department. The
head of the grain inspection division shall examine samples
submitted, and determine the proper grade, dockage, moisture
content, protein content, and other factors used in establishing
the market price of the samples of grain in accordance with the
inspection rules and the standards established by the United
States Department of Agriculture and the state of Minnesota.
The test results must be based on the arithmetic mean of the
samples submitted. If a person requesting the inspection asks
for determination of some but not all of the factors that affect
market price, the department shall perform only the requested
tests on the samples. A person requesting the inspection must
pay the required fee before the results of the inspection are
released. The fee charged must be the same as that required for
similar services rendered by the grain inspection division.
Payment for the grain involved in a disagreement must be made on
the basis of grade, dockage, moisture content, protein content,
and other market pricing factors certified by the department on
samples submitted. An appeal of the determination made by the
department may be made as provided under the United States Grain
Standards Act, United States Code, title 7, section 79,
subsection (c), and the Code of Federal Regulations, title 7,
sections 800.125 to 800.140. A person receiving or delivering
grain that is subject to this section is liable for damages
resulting from not abiding by the determination made by the
department. A person who violates this section is subject to
penalties prescribed in section 17B.29.
(b) A licensed business that uses test equipment as defined
in section 17B.02 to perform tests or analysis on grain to be
purchased or placed in storage must post at the place of
business a notice informing persons selling or delivering grain
of their right to have a representative sample of the grain
forwarded to the grain inspection division for analysis. The
commissioner shall provide copies of the notice to each business
licensed to buy or receive grain. The business must display the
notice in a conspicuous location as prescribed by the
commissioner.
Sec. 14. [EFFECTIVE DATE.]
Section 3, 4, 5, 6, 7, 8, 9, 10, or 11 is effective 30 days
after at least three states representing 30 percent or more of
the national production of that grain according to the current
United States Department of Agriculture crop production summary
requires that a premium be paid for the grain based on the
factors provided in the section. Section 3, 4, 5, 6, 7, 8, 9,
10, or 11 applies to purchasers of grain in this state 30 days
after the commissioner publishes notice in the State Register
that the section is effective. The commissioner must notify
affected licensed purchasers of grain that section 3, 4, 5, 6,
7, 8, 9, 10, or 11 is effective by ten days after notice is
published in the State Register. Section 12 is effective August
1, 1989.
ARTICLE 7
BY-PRODUCT SOIL BUFFERING MATERIALS
Section 1. [17.7241] [DEFINITIONS.]
Subdivision 1. [SCOPE.] The definitions in this section
apply to sections 1 to 5.
Subd. 2. [COMMISSIONER.] "Commissioner" means the
commissioner of agriculture.
Subd. 3. [INDUSTRIAL BY-PRODUCT SOIL BUFFERING MATERIAL.]
"Industrial by-product soil buffering material" means an
industrial waste or by-product or the by-product of municipal
water treatment processes containing calcium or magnesium or
both in a form that may neutralize soil acidity.
Subd. 4. [LIMESTONE.] "Limestone" means a material
consisting essentially of calcium carbonate or a combination of
calcium carbonate with magnesium carbonate capable of
neutralizing soil acidity.
Subd. 5. [SOIL BUFFERING MATERIALS.] "Soil buffering
materials" means materials whose calcium or magnesium or both
are capable of neutralizing soil acidity.
Subd. 6. [STOCKPILE.] "Stockpile" means a supply of
agricultural soil buffering material stored for future use.
Subd. 7. [TNP.] "TNP" means total neutralizing power and
is the number of pounds of neutralizing value in one ton of a
soil buffering material.
Sec. 2. [17.7242] [SOIL BUFFERING DEMONSTRATION PROJECT
AND STUDY.]
Subdivision 1. [PURPOSE.] The purpose of the demonstration
project required under sections 1 to 5 is to identify
appropriate and mutually beneficial methods for the use of
industrial by-product soil buffering materials. Proper use will
minimize current waste disposal problems, provide a market for
an underutilized resource, and make available to farmers an
effective, low-cost soil buffering product.
Subd. 2. [AUTHORITY.] The commissioner shall coordinate
the design and implementation of a demonstration project to
examine the technical feasibility, economic benefits, and
environmental impacts of using industrial by-product soil
buffering materials as a substitute for limestone and other
traditional soil buffering materials.
Subd. 3. [PROCEDURES DEVELOPED.] The demonstration project
must identify and recommend as proposed standards appropriate
procedures for the sampling, analysis, TNP labeling, storage,
stockpiling, transportation, and application of industrial
by-product soil buffering materials. After TNP labeling
standards have been established, which must be no later than
March 1, 1989, they must be provided to the landowner or tenant
prior to land application or stockpiling.
Subd. 4. [SCOPE.] The demonstration project must be on a
scale deemed by the commissioner to be efficient and manageable
while providing the greatest practicable use of industrial
by-product soil buffering materials for agricultural purposes.
Sec. 3. [17.7243] [RESPONSIBILITIES OF THE COMMISSIONER.]
Subdivision 1. [BROAD PARTICIPATION.] The commissioner
shall seek participation in the demonstration project by other
persons, institutions, and organizations having an interest in
soil buffering materials and industrial by-product soil
buffering materials including the pollution control agency, one
or more counties, one or more soil and water conservation
districts, and the University of Minnesota.
Subd. 2. [PUBLIC EDUCATION.] The commissioner shall seek
to maximize the public education benefit of the demonstration
program.
Sec. 4. [17.7244] [ENVIRONMENTAL CONTROLS.]
Subdivision 1. [SAMPLING; ANALYSIS.] The commissioner and
the commissioner's agents may sample, inspect, make analysis of,
and test industrial by-product soil buffering materials used in
the demonstration project and study at a time and place and to
an extent the commissioner considers necessary to determine
whether the industrial by-product soil buffering materials are
suitable for the project. The commissioner and the
commissioner's agents may enter public or private premises where
demonstration projects are being conducted in order to have
access to:
(1) soil buffering materials used in the demonstration
project;
(2) sampling of sites actually or reportedly exposed to
industrial by-product soil buffering materials;
(3) inspection of storage, handling, transportation, use,
or disposal areas of industrial by-product soil buffering
materials;
(4) inspection or investigation of complaints of injury to
humans, wildlife, domesticated animals, crops, or the
environment;
(5) observation of the use and application of the soil
buffering material;
(6) inspection of records related to the production,
transportation, stockpiling, use, or disposal of industrial
by-product soil buffering material; and
(7) other purposes necessary to implement sections 1 to 5.
Subd. 2. [RECEIPT FOR INSPECTION SAMPLES; REPORT ON
ANALYSES.] Before leaving inspected premises, the commissioner
shall provide the owner, operator, or agent in charge with a
receipt describing any samples obtained. If an analysis is made
of the samples, a copy of the results of the analysis must be
furnished to the owner, operator, or agent in charge.
Subd. 3. [EMERGENCY INSPECTION.] The commissioner and the
commissioner's agents may enter public or private property
without a notice of inspection if a suspected incident involving
industrial by-product soil buffering materials may threaten
public health or the environment.
Sec. 5. [17.7245] [REPORT.]
The commissioner shall report to the committees on
agriculture of the house of representatives and senate by March
1, 1989, and on March 1 of each year thereafter, about the
activities, findings, and recommendations related to the
demonstration project.
Sec. 6. [17.7246] [EXEMPTION.]
Sections 1 to 5 do not apply to industrial by-product soil
buffering material produced at a facility if the University of
Minnesota, North Central Experimental Station, has conducted a
study of the material at that facility.
Sec. 7. [REPEALER.]
Sections 1 to 6 are repealed June 30, 1991.
Sec. 8. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 8
ORGANIC CERTIFICATION
Section 1. [31.95] [ORGANIC CERTIFICATION.]
Subdivision 1. [DESIGNATION.] The commissioner shall
designate one or more organizations located in this state, made
up of organic food growers, manufacturers, or sellers, to
certify organically grown seeds, products, and food.
Subd. 2. [FEES.] The commissioner shall prescribe fees to
be charged to persons for certification of organically grown
seeds, production, and food under section 16A.128. By 1991,
fees collected must reflect the total annual cost of
certification.
Subd. 3. [CERTIFICATION REQUIREMENT.] An organic
certification agency may not refuse services or certification to
a person:
(1) whose seeds, production, and food meet certification
requirements; and
(2) who has paid membership dues and certification fees.
Subd. 4. [RULES.] The organic certification organization
may draft rules for submission to the commissioner to adopt for
implementation of the organically grown certification program.
ARTICLE 9
CROP HAIL INSURANCE RATE FILING
Section 1. [60A.32] [RATE FILING FOR CROP HAIL INSURANCE.]
An insurer issuing policies of insurance against crop
damage by hail in this state shall file its insurance rates with
the commissioner. The insurance rates must be filed before
April 1 of the year in which a policy is issued.
ARTICLE 10
RURAL FINANCE AUTHORITY
Section 1. Minnesota Statutes 1987 Supplement, section
41B.01, subdivision 2, is amended to read:
Subd. 2. [PURPOSE.] Sections 41B.01 to 41B.23 create and
establish the Minnesota rural finance authority and establish 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 rural
finance authority's programs and of the bonds issued to finance
or provide security for the programs is to purchase
participation interests in loans, including seller-sponsored
loans to be made available by agricultural lenders to farmers 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 programs in sections 41B.01 to 41B.23 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 authority and in authorizing the programs in sections
41B.01 to 41B.23, 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 authority, 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. Minnesota Statutes 1986, section 41B.02, is
amended by adding a subdivision to read:
Subd. 18. [SELLER-SPONSORED LOAN.] "Seller-sponsored loan"
means a loan in which part or all of the price of a farm is
financed by a loan from the seller of the farm who is a natural
person, a partnership, or a family farm corporation as defined
in section 500.24, located in Minnesota. The loan must be
secured by a real estate mortgage evidenced by one or more notes
that may carry different interest rates or by a contract for
deed. The definition of a seller-sponsored loan under this
subdivision does not include a loan between persons within the
second degree of kindred according to common law. A
seller-sponsored loan may not be made to a person who has
previously defaulted on a state loan or state guarantee of a
loan.
Sec. 3. Minnesota Statutes 1987 Supplement, section
41B.03, subdivision 3, is amended to read:
Subd. 3. [BEGINNING FARMER LOANS.] In addition to the
requirements under subdivision 1, a prospective borrower for a
beginning farm loan, including a seller-sponsored loan, in which
the authority holds an interest, must:
(1) have sufficient education, training, or experience in
the type of farming for which the loan is desired;
(2) have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, of less
than $100,000;
(3) demonstrate a need for the loan;
(4) demonstrate an ability to repay the loan;
(5) demonstrate that the agricultural land to be purchased
will be used by the borrower for agricultural purposes; and
(6) demonstrate that farming will be the principal
occupation of the borrower.
Sec. 4. Minnesota Statutes 1987 Supplement, section
41B.039, subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] The authority may
establish, develop criteria, and implement a beginning farmer
program. The program must assist persons entering farming who
have not owned a farm before entering the beginning farmer
program. The program may include assistance for persons
entering or reentering farming through the use of
seller-sponsored loans.
Sec. 5. Minnesota Statutes 1987 Supplement, section
41B.039, subdivision 2, is amended to read:
Subd. 2. [STATE PARTICIPATION.] The state may participate
in a new real estate loan with an eligible lender to a beginning
farmer to the extent of one-fourth 35 percent of the principal
amount of the loan or $25,000 $50,000, whichever is less. The
interest rates and repayment terms of the authority's
participation interest may be different than the interest rates
and repayment terms of the lender's retained portion of the loan.
Sec. 6. Minnesota Statutes 1987 Supplement, section
41B.039, subdivision 4, is amended to read:
Subd. 4. [FARM MANAGEMENT.] A borrower must agree to
participate in a farm management program approved by the
commissioner of agriculture for at least the first eight five
years of the loan.
Sec. 7. Minnesota Statutes 1987 Supplement, section
41B.05, is amended to read:
41B.05 [GENERAL POWERS OF THE AUTHORITY.]
For the purpose of exercising the specific powers granted
in section 41B.04 and effectuating the other purposes of
sections 41B.01 to 41B.23 the authority 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 sections 41B.01 to 41B.23.
(d) It may acquire, hold, and dispose of real or 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 sections
41B.01 to 41B.23.
(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.
(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
authority 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 authority 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
sections 41B.01 to 41B.23 and to carry out the objectives of
sections 41B.01 to 41B.23 and may pay for the services from
authority funds.
(p) It may establish cooperative relationships with
counties to develop priorities for the use of authority
resources and assistance within counties and to consider county
plans and programs in the process of setting the priorities.
(q) It may delegate any of its powers to its officers or
staff.
(r) It may enter into agreements with qualified
agricultural lenders or others insuring or guaranteeing to the
state the payment of all or a portion of qualified agricultural
loans.
(s) It 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 authority may only purchase
participation interests in restructuring loans under the normal
procedure. The authority may provide in an agreement for
special procedures or requirements designed to meet specific
conditions or requirements.
(t) It may allow farmers who are natural persons to combine
programs of the federal Agriculture Credit Act of 1987 with
programs of the rural finance authority.
ARTICLE 11
INTEREST RATE BUY-DOWN ADJUSTMENT
Section 1. [INTEREST RATE BUY-DOWN ADJUSTMENT.]
Subdivision 1. [ELIGIBILITY.] Notwithstanding Laws 1987,
chapter 15, section 8, subdivision 2, the commissioner may
consider a farmer an eligible buyer if the farmer has a loan
balance with a lender under the Federal Guaranteed Operating
Loan Program with the Interest Rate Buy-down Program
administered by the FmHA between the dates January 1, 1987, and
December 31, 1988, and complies with the remaining provisions of
Laws 1987, chapter 15.
Subd. 2. [LATER MATURITY.] Notwithstanding Laws 1987,
chapter 15, section 8, subdivision 3, the commissioner may
consider a farm operating loan eligible for interest rate
buy-down even though the maturity date is later than June 30,
1989, if the maturity date is later due to participation in the
Federal Guaranteed Operating Loan Program Interest Rate Buy-down
Program administered by the FmHA.
Subd. 3. [PAYMENT AFTER REQUEST.] Notwithstanding Laws
1987, chapter 15, section 4, subdivision 5, the commissioner may
pay the last one-half of the interest rate buy-down amount
within 30 days after request for final payment is received from
the lender.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 12
EXTENSION OF DEADLINE FOR SEED POTATO STANDARDS
Section 1. Laws 1987, chapter 124, section 2, is amended
to read:
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective for potatoes planted after January
1, 1989 1990.
ARTICLE 13
AGRICULTURAL CONTRACT TASK FORCE
Section 1. [AGRICULTURAL CONTRACT TASK FORCE.]
The commissioner of agriculture shall form an advisory task
force to determine the feasibility of changing existing programs
or developing a new program to provide economic protection for
farmers producing agricultural commodities under contract. The
economic protection would be provided when businesses have filed
bankruptcy and are unable to make payments under the contract or
are otherwise financially unable to make payments under the
contract.
The advisory task force membership must include farmers,
canning processors, contract seed businesses, livestock and
poultry contractors, other agricultural processors, farm
organizations, and bonding and financial institutions.
The commissioner shall coordinate meetings of the advisory
task force, provide staff support, and participate in the
advisory task force meetings.
The commissioner shall prepare a report of recommendations
of the task force including recommendations for the legislature.
The report must be presented to the chairs of the agriculture
committees in the legislature by January 15, 1989.
ARTICLE 14
DRY EDIBLE BEANS
Section 1. Minnesota Statutes 1986, section 223.16,
subdivision 4, is amended to read:
Subd. 4. [GRAIN.] "Grain" means any cereal grain, coarse
grain or oilseed in unprocessed form for which a standard has
been established by the United States Secretary of Agriculture
or the Minnesota board of grain standards, dry edible beans, or
any other agricultural crop which crops designated by the
commissioner may designate by rule.
Sec. 2. Minnesota Statutes 1986, section 232.21,
subdivision 7, is amended to read:
Subd. 7. [GRAIN.] "Grain" means any cereal grain, course
grain or oilseed in unprocessed form for which a standard has
been established by the United States secretary of agriculture
or the Minnesota board of grain standards, dry edible beans, or
agricultural crops designated by the commissioner by rule.
Sec. 3. Minnesota Statutes 1986, section 232.23,
subdivision 4, is amended to read:
Subd. 4. [FORM OF GRAIN WAREHOUSE RECEIPT.] (a) A grain
warehouse receipt must be in duplicate, contain the name and
location of the grain warehouse, and be delivered to the
depositor or the depositor's agent. Grain warehouse receipts
shall be consecutively numbered as prescribed by the
commissioner and state the date of deposit, except where the
deposit of a certain lot for storage is not completed in one
day. In that case, the grain warehouse receipt, when issued,
shall be dated not later than Saturday of the week of delivery.
(b) A grain warehouse receipt shall contain either on its
face or reverse side the following specific grain warehouse and
storage contract: "This grain is received, insured and stored
through the date of expiration of the annual licenses of this
grain warehouse and terms expressed in the body of this grain
warehouse receipt shall constitute due notice to its holder of
the expiration of the storage period. It is unlawful for a
public grain warehouse operator to charge or collect a greater
or lesser amount than the amount filed with the commissioner.
All charges shall be collected by the grain warehouse operator
upon the owner's presentation of the grain warehouse receipt for
the sale or delivery of the grain represented by the receipt, or
the termination of the storage period. Upon the presentation of
this grain warehouse receipt and payment of all charges accrued
up to the time of presentation, the above amount, kind and grade
of grain will be delivered within the time prescribed by law to
the depositor or the depositor's order."
(c) A grain warehouse receipt shall also have printed on it
the following:
"Redemption of Receipt
Received from .............., the sum of $........ or
........ bushels in full satisfaction of the obligation
represented by this grain warehouse receipt.
Gross price per bushel $.......
Storage per bushel $.......
Net price per bushel $.......
All blank spaces in this grain warehouse receipt were
filled in before I signed it and I certify that I am the owner
of the commodity for which this grain warehouse receipt was
issued and that there are no liens, chattel mortgages or other
claims against the commodity represented by this grain warehouse
receipt.
Signed ............
Accepted .................. Dated ............
Warehouse operator
This redemption shall be signed by the depositor or the
depositor's agent in the event that the grain represented is
redelivered or purchased by the public grain warehouse
operator. Signature of this redemption by the depositor
constitutes a valid cancellation of the obligation embraced in
the storage contract."
(d) A warehouse receipt for dry edible beans must state the
grade of the dry edible beans delivered to the grain warehouse
and the redelivery charge required under section 4, paragraph
(a).
Sec. 4. Minnesota Statutes 1986, section 232.23, is
amended by adding a subdivision to read:
Subd. 10a. [REDELIVERY OF DRY EDIBLE BEANS.] (a) A public
grain warehouse shall deliver dry edible beans to a holder of a
warehouse receipt after the warehouse receipt holder pays a
redelivery charge and the charges accrued until the time the
warehouse receipt is surrendered to the grain warehouse
operator. The dry edible beans must be dry and processed to
acceptable standards for canning and packaging use. The
redelivery charge may not exceed $3 per net hundredweight of the
dry edible beans. The commissioner may determine the maximum
redelivery charge by rule, after receiving a petition to change
the redelivery charge signed by at least 25 dry edible bean
processors, producers, and public warehouse operators.
(b) A grain warehouse operator shall deliver dry edible
beans in bags or in bulk as requested by the warehouse receipt
holder. The warehouse receipt holder shall furnish the bags if
dry edible beans are to be bagged.
(c) A grain warehouse operator shall grade the dry edible
beans if requested by the warehouse receipt holder. The grain
warehouse operator may determine grade by United States
Department of Agriculture standards, Northarvest standards, or
Michigan Bean Shippers Association standards. The warehouse
receipt holder shall pay grading fees.
ARTICLE 15
SUSTAINABLE AGRICULTURE LOANS AND GRANTS
Section 1. [17.115] [SHARED SAVINGS LOAN PROGRAM.]
Subdivision 1. [ESTABLISHMENT.] The commissioner shall
establish a shared savings loan program to provide loans that
enable farmers to adopt best management practices that emphasize
sufficiency and self-sufficiency in agricultural inputs,
including energy efficiency, reduction of petroleum and chemical
inputs, and increasing the energy self-sufficiency of
agricultural producers.
Subd. 2. [LOAN CRITERIA.] (a) The shared savings loan
program must provide loans for purchase of new or used
machinery, installation of equipment, and projects that reduce
or make more efficient farm energy use. Eligible loan uses do
not include seed, fertilizer, or fuel.
(b) Loans may not exceed $15,000 per individual applying
for a loan and may not exceed $75,000 for loans to five or more
individuals on joint projects. The loan repayment period may be
up to seven years as determined by project cost and energy
savings. The interest on the loans is six percent.
(c) Loans may only be made to residents of this state
engaged in farming.
Subd. 3. [AWARDING OF LOANS.] (a) Applications for loans
must be made to the commissioner on forms prescribed by the
commissioner.
(b) The applications must be reviewed, ranked, and
recommended by a loan review panel appointed by the
commissioner. The loan review panel shall consist of two
lenders with agricultural experience, two resident farmers of
the state using sustainable agriculture methods, a farm
management specialist, a representative from a post-secondary
education institution, and a chairperson from the department.
(c) The loan review panel shall rank applications according
to the following criteria:
(1) realize savings to the cost of agricultural production
and project savings to repay the cost of the loan;
(2) reduce or make more efficient use of energy; and
(3) reduce production costs.
(d) A loan application must show that the loan can be
repaid by the applicant.
(e) The commissioner must consider the recommendations of
the loan review panel and may make loans for eligible projects.
Priority must be given based on the amount of savings realized
by adopting the practice implemented by the loan.
Subd. 4. [ADMINISTRATION; INFORMATION DISSEMINATION.] The
amount in the revolving loan account is appropriated to the
commissioner to make loans under this section and administer the
loan program. The interest on the money in the revolving loan
account and the interest on loans repaid to the state may be
spent by the commissioner for administrative expenses. The
commissioner shall collect and disseminate information relating
to projects for which loans are given under this section.
Sec. 2. [17.116] [SUSTAINABLE AGRICULTURE DEMONSTRATION
GRANTS.]
Subdivision 1. [ESTABLISHMENT.] The commissioner of
agriculture shall establish a grant program for sustainable
agriculture methods that demonstrates best management practices,
including farm input reduction, farm energy efficiency, or
usable on-farm energy production. The commissioner shall use
the program to demonstrate and publicize the energy efficiency,
environmental benefit, and profitability of sustainable
agriculture techniques. The grants must fund demonstrations on
farms of external input reduction techniques or farm scale
energy production methods consistent with the program objectives.
Subd. 2. [ELIGIBILITY.] (a) Grants may only be made to
farmers, educational institutions, or nonprofit organizations
residing or located in the state for demonstrations on farms in
the state.
(b) Grants may only be made for projects that show:
(1) the ability to maximize direct or indirect energy
savings or production;
(2) a positive effect or reduced adverse effect on the
environment; and
(3) profitability for the individual farm.
Subd. 3. [AWARDING OF GRANTS.] (a) Applications for grants
must be made to the commissioner on forms prescribed by the
commissioner.
(b) The applications must be reviewed, ranked, and
recommended by a technical review panel appointed by the
commissioner. The technical review panel shall consist of a
soil scientist, an agronomist, a representative from a
post-secondary educational institution, two resident farmers of
the state using sustainable agriculture methods, and a
chairperson from the department.
(c) The technical review panel shall rank applications
according to the following criteria:
(1) direct or indirect energy savings or production;
(2) environmental benefit;
(3) farm profitability;
(4) the number of farms able to apply the techniques or the
technology proposed;
(5) the effectiveness of the project as a demonstration;
(6) the immediate transferability of the project to farms;
and
(7) the ability of the project to accomplish its goals.
(d) The commissioner shall consider the recommendations of
the technical review panel and may award grants for eligible
projects. Priority must be given to applicants who are farmers
or groups of farmers.
(e) Grants for eligible projects may not exceed $25,000
unless the portion above $25,000 is matched on an equal basis by
the applicant's cash or in-kind land use contribution. Grant
funding of projects may not exceed $50,000 under this section,
but applicants may utilize other funding sources. A portion of
each grant must be targeted for public information activities of
the project.
(f) A project may continue for up to three years.
Multi-year projects must be reevaluated by the technical review
panel and the commissioner before second or third year funding
is approved. A project is limited to one grant for its funding.
(g) Only one grant under this section may be made per
grantee.
ARTICLE 16
SCHOOL MILK PROGRAM
Section 1. [124.648] [MILK PROGRAM.]
Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature
finds that for best health and well-being, school children in
the state should receive at least one serving of milk each day.
The school milk program established in this section is to
provide school districts in the state with added resources so
that all kindergarten students in public and nonpublic schools
may have access to wholesome milk on a daily basis.
Subd. 2. [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each
school district in the state is encouraged to participate in the
state-supported school milk program for kindergartners.
Participating districts shall provide one serving of milk on
each school day to each kindergarten student attending a public
or nonpublic school in the district. No student is required to
accept the milk that is provided by the district. The program
must be promoted and operated under the direction of the
commissioner or the commissioner's designee.
Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE
COMMISSIONER.] (a) The commissioner shall:
(1) encourage all districts to participate in the school
milk program for kindergartners;
(2) prepare program guidelines, not subject to chapter 14,
which will effectively and efficiently distribute appropriated
and donated money to participating districts; and
(3) seek donations and matching funds from appropriate
private and public sources.
(b) Program guidelines may provide for disbursement to
districts through a mechanism of prepayments or by reimbursement
for approved program expenses.
(c) It is suggested that the benefits of the school milk
program may reach the largest number of kindergarten students if
districts are allowed to submit annual bids stating the
per-serving level of support that would be acceptable to the
district for their participation in the program. The
commissioner would review all bids received and approve bids in
sufficient number and value to maximize the provision of milk to
kindergarten students consistent with available funds.
Subd. 4. [REIMBURSEMENT.] In accordance with program
guidelines, the commissioner shall prepay or reimburse
participating school districts for the state share of the
district's cost for providing milk to kindergarten students.
ARTICLE 17
DEGRADABLE PLASTICS
Section 1. [325E.045] [PURCHASE, SALE, AND USE OF CERTAIN
POLYETHYLENE MATERIAL PROHIBITED.]
Subdivision 1. [DEFINITIONS.] The definitions in this
subdivision apply to section 1.
(a) "Degradable" means capable of being decomposed by
natural biological processes, including exposure to ultraviolet
rays of the sun, within five years after the date of disposal.
(b) "Person" means an individual, partnership, corporation,
sole proprietorship, association, or other for-profit or
nonprofit organization, including the state and its political
subdivisions.
(c) "Polyethylene disposal bag" means a bag made of
polyethylene that is used or intended to be used for disposal of
mixed municipal solid waste as defined in section 115A.03.
(d) "Polyethylene beverage ring" means a device made of
polyethylene that is used or intended to be used to hold
beverage bottles or other beverage containers together.
(e) "Public agency" means the state, an office, agency, or
institution of the state, a county, a statutory or home rule
charter city, a town, a school district, or another special
taxing district.
Subd. 2. [BEVERAGE RING USE AND SALE PROHIBITED.] A person
may not use, sell, or offer for sale a polyethylene beverage
ring that is not degradable.
Subd. 3. [GOVERNMENTAL PURCHASE PROHIBITED.] A public
agency may not purchase polyethylene disposal bags that are not
degradable.
Subd. 4. [GOVERNMENTAL USE PROHIBITED.] A public agency
may not use polyethylene disposal bags that are not degradable.
Sec. 2. [DEGRADABLE PLASTICS TASK FORCE.]
Subdivision 1. [ESTABLISHMENT.] An advisory task force on
degradable plastics is established. The task force consists of
the commissioners of agriculture, commerce, and the pollution
control agency, the director of the waste management board, the
president of the greater Minnesota corporation, the head of the
consumer affairs division of the attorney general's office, and
two representatives of industry and one retailer appointed by
the rural development board. Representatives of other state
agencies may also become members of the task force with the
approval of a majority of its members.
Subd. 2. [DUTIES.] The task force shall study the
feasibility and consequences of requiring industry and consumer
products other than items in section 1 to be degradable.
Subd. 3. [REPORT.] The task force shall report its
findings, along with any proposed legislation the task force
believes necessary, to the legislature by January 1, 1990, after
which the task force expires.
Subd. 4. [ADMINISTRATION AND EXPENSES.] The task force is
attached to the rural development board for administrative
purposes and the board shall furnish the task force with office
space and administrative assistance necessary to fulfill the
duties of the task force. Members of the task force must be
paid their expenses under section 15.059.
Sec. 3. [EFFECTIVE DATE.]
Section 1, subdivision 2, is effective January 1, 1989.
Section 1, subdivisions 3 and 4, are effective July 1, 1990.
ARTICLE 18
ETHANOL DEVELOPMENT
Section 1. Minnesota Statutes 1986, section 41A.09, is
amended by adding a subdivision to read:
Subd. 6. [CONTINUED PAYMENTS.] A plant in production or
under construction by January 1, 1990, shall continue to receive
uninterrupted payments under subdivision 3 of at least 20 cents
per gallon of ethanol produced until July 1, 2000.
ARTICLE 19
LIVESTOCK REPORT DEADLINE
Section 1. Laws 1987, chapter 396, article 9, section 1,
subdivision 4, is amended to read:
Subd. 4. [REPORT.] The interdisciplinary study team shall
prepare and deliver to the commissioner of agriculture a report
on the results of the study. If feasible, the study team shall
also submit the results of the study in a form appropriate for
publication in one or more recognized scientific journals. The
commissioner shall report results of the study to the house and
senate committees on agriculture not later than February August
1, 1989.
ARTICLE 20
LABORATORY SERVICES ACCOUNT
Section 1. [17.85] [LABORATORY SERVICES ACCOUNT.]
A laboratory services account is established in the state
treasury. Payments for laboratory services performed by the
laboratory services division of the department of agriculture
must be deposited in the state treasury and credited to the
laboratory services account. Money in the account, including
interest earned on the account, is annually appropriated to the
commissioner of agriculture to administer the programs of the
laboratory services division.
ARTICLE 21
APPROPRIATIONS
Section 1. [APPROPRIATION CANCELLATION.]
All money appropriated by Laws 1987, chapter 15, section
10, subdivision 1, clauses (a) and (b), for purposes of program
"A" in 1987 and program "B" in 1987 and 1988 that remains
unencumbered on July 1, 1988, and all money transferred to the
interest rate buy-down program by Laws 1987, chapter 15, section
10, subdivision 4, is canceled.
Sec. 2. [STATE AGRICULTURAL PRODUCT USE REPORT.]
$35,000 is appropriated from the general fund to the
commissioner of agriculture to contract for an investigation and
report on the use of state agricultural products within the
state and opportunities for expanded markets for state
agricultural products within the state under article 1. This
appropriation is available until June 30, 1989.
Sec. 3. [ORGANIC FOOD CERTIFICATION AND ENFORCEMENT.]
Subdivision 1. [START-UP CERTIFICATION COSTS.] $100,000 is
appropriated from the general fund to the commissioner of
agriculture for a grant to an organic certification organization
for start-up and initial administrative costs for the purpose of
promoting and marketing "Minnesota grown" certified organic food
products. This appropriation is available until June 30, 1989.
Subd. 2. [ENFORCEMENT COSTS.] $50,000 is appropriated from
the general fund to the commissioner of agriculture to
administer and enforce the organic food law, Minnesota Statutes,
sections 31.92 to 31.94. This appropriation is available until
June 30, 1989.
Sec. 4. [BLUEGRASS SEED AND TURF PRODUCTION.]
$35,000 is appropriated from the general fund to the
commissioner of agriculture, to be available until June 30,
1989, for a bluegrass seed and turf production program as
follows:
(1) for contracting for personnel and
labor costs related to bluegrass seed
production over one year $20,000
(2) for establishment and evaluation
of sod varieties on mineral and peat
soil, direct seeded turf varieties,
and turf characteristics $15,000
Sec. 5. [ALFALFA EXTRACTION PROCESS.]
$300,000 is appropriated from the general fund to the
commissioner of agriculture, to be matched on the basis of $2 of
nonstate money or in-kind contributions for each $1 of this
appropriation, to establish a pilot plant for a protein
xanthophyll alfalfa extraction process. The commissioner must
contract to establish a pilot plant for the process and
operations of the plant with the required testing for markets.
This appropriation is available until June 30, 1989.
Sec. 6. [SWEET SORGHUM RESEARCH AND DEMONSTRATION.]
$94,000 is appropriated from the general fund to the
commissioner of agriculture for transfer to the Mankato
Technical Institute for the sweet sorghum research and
demonstration project on the feasibility of growing, harvesting,
and processing sweet sorghum as a Minnesota crop. This
appropriation is available until June 30, 1989.
Sec. 7. [SUSTAINABLE AGRICULTURE.]
Subdivision 1. [REVOLVING LOAN FUND.] $1,000,000 is
appropriated from the general fund to the commissioner of
agriculture to be credited to a revolving loan account for
low-interest loans to farmers to adopt sustainable agriculture
practices. Money in the account does not cancel but is
appropriated to the commissioner of agriculture to make
low-interest loans to farmers under this subdivision.
Notwithstanding chapter 14, the commissioner shall prescribe
procedures for application and implementation of the program.
Subd. 2. [DEMONSTRATION GRANT PROGRAM.] $300,000 is
appropriated from the general fund to the commissioner of
agriculture for grants to farmers for demonstration projects
involving sustainable agriculture. If a project cost is more
than $25,000, the amount above $25,000 must be cost-shared at a
state-applicant ratio of 1 to 1. Priority must be given for
projects involving multiple parties. Up to $20,000 of this
appropriation may be used for dissemination of information about
the demonstration grant projects. This appropriation is
available until June 30, 1989.
Sec. 8. [RURAL HEALTH AND SAFETY PROGRAM.]
$50,000 is appropriated from the general fund to the
Minnesota Extension services for purposes of the rural health
and safety program in article 2. This appropriation must be
matched by $25,000 of university or extension service funds.
Money in this appropriation must be released to the extension
service as matching funds are made available in the ratio of $2
in general fund money for each $1 of matching money. This
appropriation is available until June 30, 1989.
Sec. 9. [DAIRY TASK FORCE.]
$30,000 is appropriated from the unfair dairy trade
practices account to the commissioner of agriculture to be
matched dollar for dollar by private money to pay for the
expenses of the Minnesota dairy task force and pilot projects in
article 3. This appropriation is available until June 30, 1989.
Sec. 10. [MINNESOTA GROWN COUPONS TO WIC
RECIPIENTS.] $85,000 is appropriated from the general fund to
the commissioner of agriculture to be available until June 30,
1989, for a pilot program to provide Minnesota grown coupons for
women, infants, and children program recipients. The
commissioner of agriculture in cooperation with the commissioner
of health may conduct pilot projects to give Minnesota grown
coupons redeemable for food identified with a Minnesota grown
logo or labeling statement at selected sites to women, infants,
and children program recipients. The commissioner shall conduct
an evaluation of the pilot program, prepare a report, and submit
the report to the legislature by January 1, 1989.
Sec. 11. [MINNESOTA GROWN LABELING.]
$20,000 is appropriated from the general fund to the
commissioner of agriculture to develop different versions of the
labeling statement and adopt rules under article 4. This
appropriation is available until June 30, 1989.
Sec. 12. [SOIL TESTING LABORATORY CERTIFICATION.]
$15,000 is appropriated from the general fund to the
commissioner of agriculture to implement and administer the soil
testing laboratory certification program in article 5. This
appropriation is available until June 30, 1989.
Sec. 13. [PLANT PEST SURVEY PROGRAM.]
$171,000 is appropriated from the general fund to the
commissioner of agriculture to survey and detect plant pests and
disseminate information to farmers on making appropriate
applications of pesticides and nonchemical controls. This
appropriation is available until June 30, 1989.
The approved complement of the department of agriculture is
increased by three positions to administer the plant pest survey
and detection program.
The commissioner of agriculture shall prepare a report on
plant pest survey and detection and submit it to the legislature
by June 1, 1990.
Sec. 14. [GRAIN MARKETING.]
$100,000 is appropriated from the general fund to the
commissioner of agriculture for purposes of providing periodic
reviews of test equipment and test equipment operators under
article 6. The approved complement of the department of
agriculture is increased by three positions. This appropriation
is available until June 30, 1989.
Sec. 15. [BY-PRODUCT SOIL BUFFERING.]
$70,000 is appropriated from the general fund to the
commissioner of agriculture for purposes of the demonstration
project and study of industry by-product soil buffering
materials in article 7. This appropriation is available until
June 30, 1989. Of this amount, up to $50,000 is available to
the commissioner of agriculture for expenses of administering
and coordinating the demonstration project. The balance of the
appropriation may be used by the commissioner for material
testing and analysis and other activities related to the
demonstration project and performed by the University of
Minnesota or other qualified participants or organizations.
Sec. 16. [AMARANTH PROCESSING FEASIBILITY.]
$125,000 is appropriated to the commissioner of
agriculture, to be matched on the basis of $1 of nonstate money
for each $2 of this appropriation, for contracting for a study
to design and investigate the feasibility of processing,
marketing, and production of amaranth, and constructing an
amaranth pilot processing plant. This appropriation is
available until June 30, 1989. As part of the contract, a
report must be prepared and submitted to the chairs of the
agriculture committees of the legislature by December 1, 1989.
Sec. 17. [SOIL AND WATER STEWARDSHIP EDUCATION.]
$80,000 is appropriated from the general fund to the
legislative coordinating commission to make a grant to an
organization to collect and disseminate materials on soil and
water stewardship designated by the joint legislative committee
on agricultural land preservation and soil and water
conservation. This appropriation is available until June 30,
1989. The joint committee shall request proposals to locate,
collect, index, and organize materials on soil and water
stewardship for dissemination to primary and secondary schools
for use in curricula. The joint committee shall designate an
appropriate organization to review how existing requirements for
environmental education are being met and report to the chairs
of the agriculture committees of the legislature by February 1,
1989.
Sec. 18. [DEGRADABLE PLASTICS.]
$50,000 is appropriated from the general fund to the rural
development board for the purposes of article 17, section 2, to
be available until January 1, 1990.
Sec. 19. [SCHOOL MILK PROGRAM.]
Subdivision 1. [GENERAL FUND APPROPRIATION.] $800,000 is
appropriated from the general fund to the commissioner of
education for the school milk program in article 16, to be
available until June 30, 1989. Of this amount, up to $10,000
may be used for costs of administering the school milk program.
Subd. 2. [MATCHING FUNDS IN SUBSEQUENT YEARS.] The
commissioner of education shall identify likely sources of
matching funds for the school milk program in years after the
1988-1989 school year. It is the intent of the legislature to
require non-state funds to match general fund appropriations to
the school milk program in future years.
Sec. 20. [PURPLE LOOSESTRIFE.]
$50,000 is appropriated from the general fund to the
commissioner of agriculture, to be available until June 30,
1989, for eradication of purple loosestrife (lithrum salicaria)
on farm land where the farmer is required to eradicate the
purple loosestrife because of the noxious weed law, Minnesota
Statutes, sections 18.171 to 18.315. Upon written permission by
the farmer, the commissioner or the commissioner's designee may
enter upon the farm land to eradicate purple loosestrife.
The commissioner may adopt rules or temporary rules
necessary for the administration of this section.
Sec. 21. [COUNTY AND DISTRICT AGRICULTURAL SOCIETIES;
OTHER ASSOCIATIONS.]
$145,000 is appropriated from the general fund to the
commissioner of agriculture to provide supplemental funding for
state aid to county and district agricultural societies under
Minnesota Statutes, section 38.02, and to other associations as
follows:
County and District Agricultural Societies $101,025
Red River Valley Livestock Association 2,395
Northeastern Minnesota Junior Livestock Association 485
Livestock Premiums/Boys and Girls 1,500
Red Lake Band of Chippewa Indians 365
Poultry Association 730
Minnesota Poultry Association 375
Northern Poultry Association 45
Red River Valley Dairymen's Association 485
Minnesota Livestock Breeder's Association 7,675
Northern Sheep Grower's Association 45
Northern Crops Institute 29,925
This appropriation is available until June 30, 1989.
Sec. 22. [BEGINNING FARMER AND FARM BUSINESS MANAGEMENT
EDUCATION PROGRAMS.]
$125,000 is appropriated from the general fund to the state
board of vocational technical education to be available until
June 30, 1989. $50,000 of this appropriation is to make $2,500
grants to technical institutes and school districts to provide
an educational program for beginning farmers pursuing a career
in agriculture, and the balance is to operate farm business
management programs assisting in the farmer-lender mediation
process.
Sec. 23. [MEDIATION PROGRAM; COMMISSIONER OF AGRICULTURE.]
$200,000 is appropriated from the general fund to the
commissioner of agriculture to use for the participation of farm
advocates in farmer-lender mediation and operation and
administration of the mediation program. This appropriation is
available until June 30, 1989.
Sec. 24. [EFFECTIVE DATE.]
Sections 10 and 21 are effective the day following final
enactment.
Approved April 28, 1988
Official Publication of the State of Minnesota
Revisor of Statutes