1.1                          A bill for an act 
  1.2             relating to agriculture; providing funding for the 
  1.3             department of agriculture, the board of animal health, 
  1.4             the Minnesota horticultural society, and the 
  1.5             agricultural utilization research institute; changing 
  1.6             certain fees and charges; creating, extending, and 
  1.7             expanding certain programs; establishing, changing, 
  1.8             and clarifying terms and procedures; refunding certain 
  1.9             fines; providing a civil penalty; appropriating money; 
  1.10            amending Minnesota Statutes 2000, sections 17.102, 
  1.11            subdivision 3; 17.1025; 17.117; 17.85; 18B.065, 
  1.12            subdivision 5; 18C.425, subdivision 2; 18E.04, 
  1.13            subdivisions 2, 4, 5; 21.85, subdivision 12; 27.041, 
  1.14            subdivision 2; 28A.04, subdivision 1; 28A.08, 
  1.15            subdivision 3; 28A.085, subdivision 4; 29.22, 
  1.16            subdivision 2; 31.11; 31.39; 32.392; 32.394, 
  1.17            subdivisions 8, 8a, 8b, 8d, 8e; 34.07; 38.02, 
  1.18            subdivision 1; 41A.09, subdivision 2a; 103B.3369, 
  1.19            subdivision 5; 116.07, subdivision 7; 116O.09, 
  1.20            subdivision 1a; 169.871, subdivision 1; 169.872, 
  1.21            subdivision 1; 223.17, subdivision 3; 231.16; 
  1.22            proposing coding for new law in Minnesota Statutes, 
  1.23            chapters 17; 28A; 32; 41A; repealing Minnesota 
  1.24            Statutes 2000, section 31.11, subdivision 2. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26  Section 1.  [AGRICULTURE APPROPRIATIONS.] 
  1.27     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.28  appropriated from the general fund, or another named fund, to 
  1.29  the agencies and for the purposes specified in this act, to be 
  1.30  available for the fiscal years indicated for each purpose.  The 
  1.31  figures "2002" and "2003," where used in this act, mean that the 
  1.32  appropriation or appropriations listed under them are available 
  1.33  for the year ending June 30, 2002, or June 30, 2003, 
  1.34  respectively.  The term "the first year" means the year ending 
  1.35  June 30, 2002, and the term "the second year" means the year 
  2.1   ending June 30, 2003. 
  2.2                           SUMMARY BY FUND
  2.3                            2002           2003          TOTAL
  2.4   General               $ 33,121,000   $ 34,331,000  $ 67,452,000
  2.5   Environmental              347,000        353,000       700,000
  2.6   TOTAL                 $ 33,468,000   $ 34,684,000  $ 68,152,000
  2.7   Sec. 2.  COMMISSIONER OF AGRICULTURE 
  2.8   Subdivision 1.  Total 
  2.9   Appropriation                         26,583,000     27,667,000
  2.10                Summary by Fund
  2.11  General              26,235,000    27,313,000
  2.12  Environmental           347,000       353,000
  2.13  Subd. 2.  Protection Service          12,533,000     12,583,000
  2.14                Summary by Fund
  2.15  General              12,186,000    12,230,000
  2.16  Environmental           347,000       353,000
  2.17  [DAIRY DEVELOPMENT AND PROFITABILITY 
  2.18  ENHANCEMENT PROGRAM.] (a) $1,702,000 
  2.19  the first year and $1,746,000 the 
  2.20  second year are for grants to continue 
  2.21  the dairy development and profitability 
  2.22  enhancement program under Laws 1997, 
  2.23  chapter 216, section 7, subdivision 2, 
  2.24  and to expand the program to include 
  2.25  additional dairy business planning and 
  2.26  modernization activities.  The base for 
  2.27  fiscal year 2004 shall be $1,952,000.  
  2.28  Grants from this appropriation for the 
  2.29  dairy development and profitability 
  2.30  enhancement programs (formerly known as 
  2.31  the "dairy diagnostics program") must 
  2.32  require periodic reports to the 
  2.33  commissioner on the aggregate changes 
  2.34  in producer financial stability, 
  2.35  productivity, product quality, animal 
  2.36  health, environmental protection, and 
  2.37  other performance measures attributable 
  2.38  to the program.  Information reported 
  2.39  to the commissioner must be sufficient 
  2.40  to establish regional and statewide 
  2.41  performance benchmarks for the dairy 
  2.42  industry. 
  2.43  (b) In designing and implementing the 
  2.44  dairy development and profitability 
  2.45  enhancement program the commissioner 
  2.46  must consult with the dairy leaders 
  2.47  roundtable, appropriate producer and 
  2.48  processor groups, the Minnesota state 
  2.49  colleges and universities system, the 
  2.50  Minnesota extension service, farm 
  2.51  credit services, and other agricultural 
  2.52  lending institutions. 
  2.53  (c) Of the appropriation in paragraph 
  2.54  (a), $1,452,000 the first year and 
  3.1   $1,452,000 the second year are for the 
  3.2   activities of dairy development and 
  3.3   profitability enhancement teams.  The 
  3.4   commissioner must make grants, under 
  3.5   contract, to regional or statewide 
  3.6   organizations qualified to manage the 
  3.7   several components of the program.  
  3.8   Each regional or statewide organization 
  3.9   must designate a coordinator 
  3.10  responsible for overseeing the program 
  3.11  and making required reports to the 
  3.12  commissioner.  Dairy development and 
  3.13  profitability enhancement teams are 
  3.14  encouraged to engage in activities 
  3.15  including, but not limited to, 
  3.16  comprehensive financial analysis, risk 
  3.17  management education, enhanced milk 
  3.18  marketing tools and technologies, 
  3.19  five-year business plans, and design 
  3.20  and engineering costs.  Up to 40 
  3.21  percent of the appropriation under this 
  3.22  paragraph may be used to provide 
  3.23  producers with technical and 
  3.24  environmental compliance support 
  3.25  services required to implement dairy 
  3.26  environmental quality assurance 
  3.27  practices.  A producer is eligible for 
  3.28  support under any program under 
  3.29  paragraphs (a) to (e) for no more than 
  3.30  three consecutive calendar years.  
  3.31  Grants to producers must not be used 
  3.32  for capital improvements or for the 
  3.33  start up of a new dairy enterprise. 
  3.34  (d) Of the appropriation in paragraph 
  3.35  (a), up to $544,000 during the biennium 
  3.36  may be used as dollar-for-dollar 
  3.37  matching grants to producers for 
  3.38  comprehensive five-year dairy 
  3.39  development plans.  It is legislative 
  3.40  intent that $500,000 each fiscal year 
  3.41  of funding from future base 
  3.42  appropriations are for the activities 
  3.43  of this paragraph.  
  3.44  (e) The regional and statewide 
  3.45  organizations that deliver the dairy 
  3.46  development and profitability 
  3.47  enhancement program must provide 
  3.48  required reports to the commissioner in 
  3.49  a format that maintains the 
  3.50  confidentiality of business information 
  3.51  related to any single dairy producer. 
  3.52  [POTATO DISEASE RESEARCH.] $200,000 the 
  3.53  first year and $200,000 the second year 
  3.54  are for grants to the University of 
  3.55  Minnesota for additional research on 
  3.56  potato diseases.  This appropriation is 
  3.57  for research in addition to ongoing 
  3.58  potato disease research programs and 
  3.59  requires a dollar-for-dollar match from 
  3.60  nonstate sources.  Not later than March 
  3.61  1, 2004, the commissioner shall provide 
  3.62  a report on the grant and research to 
  3.63  the committees of the senate and house 
  3.64  of representatives having jurisdiction 
  3.65  over agricultural policy and finance 
  3.66  issues.  This is a one-time 
  3.67  appropriation.  Any unencumbered 
  3.68  balance does not cancel at the end of 
  4.1   the first year and is available for 
  4.2   grants in the second year. 
  4.3   [VOLUNTARY CLEANUP.] $347,000 the first 
  4.4   year and $353,000 the second year are 
  4.5   from the environmental fund for 
  4.6   administrative funding for the 
  4.7   voluntary cleanup program.  
  4.8   Subd. 3.  Agriculture Marketing  
  4.9   and Development                        8,531,000      9,796,000
  4.10  [AGRICULTURAL TRADE MARKETING.] 
  4.11  $200,000 the first year and $400,000 
  4.12  the second year are to employ and 
  4.13  support, or contract for the services 
  4.14  of, an agricultural trade specialist.  
  4.15  The trade specialist must demonstrate 
  4.16  thorough knowledge of Minnesota 
  4.17  agricultural producers and products, 
  4.18  and opportunities for developing or 
  4.19  expanding both broad and niche 
  4.20  agricultural product markets nationally 
  4.21  and internationally.  The trade 
  4.22  specialist must coordinate efforts with 
  4.23  market development and trade experts of 
  4.24  the World Trade Conference Center and 
  4.25  other public and private Minnesota 
  4.26  entities involved in marketing 
  4.27  Minnesota products.  To the extent 
  4.28  practicable, the trade specialist must 
  4.29  provide specific assistance to small 
  4.30  agricultural producers and producers 
  4.31  that would benefit from the development 
  4.32  of international markets. 
  4.33  [COOPERATIVE SHIPPERS' ASSOCIATION.] (a)
  4.34  $100,000 in the biennium is for grants 
  4.35  or direct assistance to Minnesota 
  4.36  agricultural producers and processors 
  4.37  in forming a not-for-profit corporation 
  4.38  or a member cooperative shippers' 
  4.39  association.  The purpose of the 
  4.40  shippers' association is to facilitate 
  4.41  agricultural marketing through the 
  4.42  efficient and economical movement of 
  4.43  products from Minnesota origins to 
  4.44  their destinations.  Products may 
  4.45  include agricultural commodities and 
  4.46  processed and manufactured agricultural 
  4.47  products.  The shippers' association 
  4.48  shall also assist small and 
  4.49  medium-sized producers by providing 
  4.50  services that increase negotiating 
  4.51  power and provide quality 
  4.52  transportation services at a lower cost 
  4.53  than is available to an individual 
  4.54  shipper. 
  4.55  (b) The commissioner may award grants 
  4.56  to one or more qualifying producer 
  4.57  shippers' associations that contract to 
  4.58  enter into collaborative agreements 
  4.59  with the departments of agriculture, 
  4.60  trade and economic development, and 
  4.61  transportation; farm organizations; 
  4.62  processors and handlers of Minnesota 
  4.63  agricultural products; and other 
  4.64  appropriate public and private entities 
  4.65  knowledgeable in the logistical and 
  4.66  financial issues involved in moving 
  5.1   agricultural products to market.  Along 
  5.2   with other services, an eligible grant 
  5.3   recipient must agree to provide or 
  5.4   arrange for identity-preserved, 
  5.5   single-source billing and tracking 
  5.6   transportation services from 
  5.7   agricultural producers or processors to 
  5.8   destination customers; freight 
  5.9   forwarding; negotiations for volume 
  5.10  contracts; banking and insurance 
  5.11  services; government inspection fee and 
  5.12  documentation services; intermodal 
  5.13  transportation services using sealed 
  5.14  containers; and liaison services with 
  5.15  the United States Department of 
  5.16  Agriculture and the Foreign 
  5.17  Agricultural Service for international 
  5.18  trade and export programs. 
  5.19  [FEEDLOT PERMIT SPECIALISTS.] $250,000 
  5.20  the first year and $250,000 the second 
  5.21  year are for the feedlot permit 
  5.22  specialist program.  The base in fiscal 
  5.23  year 2004 shall be $400,000.  
  5.24  [FEEDLOT ENVIRONMENTAL COMPLIANCE 
  5.25  GRANTS.] $1,685,000 the first year and 
  5.26  $1,750,000 the second year are for 
  5.27  grants to feedlot operators for 
  5.28  upgrading existing, out-of-compliance 
  5.29  animal feedlots with a capacity under 
  5.30  500 animal units.  Each $3 of state 
  5.31  cost-share grant money must be matched 
  5.32  by $1, and the maximum amount of a 
  5.33  grant for any livestock producer or 
  5.34  feedlot compliance project is $50,000.  
  5.35  The commissioner shall develop 
  5.36  guidelines for equitable, statewide 
  5.37  disbursement of feedlot compliance 
  5.38  grants.  Any unencumbered balance does 
  5.39  not cancel at the end of the first year 
  5.40  and is available for grants in the 
  5.41  second year.  
  5.42  [FEEDLOT COST SHARE.] (a) $150,000 the 
  5.43  first year and $150,000 the second year 
  5.44  are for grants or interagency transfers 
  5.45  for partial payment on contracts for 
  5.46  the preparation of environmental impact 
  5.47  statements on certain animal feedlot 
  5.48  projects.  To be eligible for partial 
  5.49  payment under this paragraph: 
  5.50  (1) the environmental impact statement 
  5.51  must have been ordered by a district 
  5.52  court against the recommendation of the 
  5.53  pollution control agency; or 
  5.54  (2) the pollution control agency must 
  5.55  have initially ordered the applicant to 
  5.56  prepare an environmental assessment 
  5.57  worksheet but subsequently required the 
  5.58  preparation of a full environmental 
  5.59  impact statement. 
  5.60  (b) Notwithstanding the provision in 
  5.61  Minnesota Rules that an applicant is 
  5.62  required to pay the entire cost of an 
  5.63  environmental impact statement, the 
  5.64  commissioner may provide up to 75 
  5.65  percent of the contract cost and the 
  6.1   applicant must pay the remainder of the 
  6.2   contract cost. 
  6.3   (c) If the pollution control agency 
  6.4   orders an environmental impact 
  6.5   statement after initially requiring 
  6.6   only an environmental assessment 
  6.7   worksheet, as described in paragraph 
  6.8   (a), clause (2), the pollution control 
  6.9   agency must develop the statement of 
  6.10  need and reasonableness at no cost to 
  6.11  the applicant. 
  6.12  (d) If the appropriation in paragraph 
  6.13  (a) for either year is insufficient, 
  6.14  the appropriation for the other year is 
  6.15  available.  Any unencumbered balance 
  6.16  does not cancel at the end of the first 
  6.17  year and is available for grants or 
  6.18  interagency transfers in the second 
  6.19  year. 
  6.20  [GRAIN GERM EXTRACTION RESEARCH AND 
  6.21  DEMONSTRATION GRANTS.] $100,000 the 
  6.22  first year and $100,000 the second year 
  6.23  are for research and demonstration 
  6.24  project grants associated with 
  6.25  second-generation ethanol plants that 
  6.26  advance commercial-scale extraction of 
  6.27  the germ component of grains.  If the 
  6.28  commissioner determines that a grantee, 
  6.29  after making a good-faith attempt, has 
  6.30  been unable to scale up grain germ 
  6.31  extraction technology to commercial 
  6.32  capacity, the grantee may, 
  6.33  nevertheless, remain eligible for 
  6.34  ethanol producer payments under the 
  6.35  second-generation ethanol development 
  6.36  program.  This is a one-time 
  6.37  appropriation.  Any unencumbered 
  6.38  balance does not cancel at the end of 
  6.39  the first year and is available for 
  6.40  grants in the second year. 
  6.41  [ETHANOL PRODUCTION FACILITY LOANS.] 
  6.42  $250,000 in the second year is for 
  6.43  deposit in the ethanol development fund 
  6.44  for loans under the ethanol production 
  6.45  facility loan program of Minnesota 
  6.46  Statutes, section 41B.044.  Base-level 
  6.47  funding for the 2004-2005 biennium is 
  6.48  $500,000. 
  6.49  [SECOND-GENERATION ETHANOL PRODUCER 
  6.50  PAYMENTS.] $720,000 the second year is 
  6.51  for deposit in the second-generation 
  6.52  ethanol development account in the 
  6.53  agricultural fund created under 
  6.54  Minnesota Statutes, section 41A.10, 
  6.55  subdivision 4, paragraph (e), for 
  6.56  payment for ethanol produced at 
  6.57  facilities placed in production after 
  6.58  June 30, 2002.  Base-level funding for 
  6.59  the 2004-2005 biennium is $6,000,000.  
  6.60  This funding level represents a 
  6.61  recapture of payments previously made 
  6.62  to plants whose eligibility for 
  6.63  payments under the original ethanol 
  6.64  producer payment program under 
  6.65  Minnesota Statutes, section 41A.09, has 
  6.66  expired.  Payments in fiscal years 2004 
  7.1   and 2005 must be made to an ethanol 
  7.2   facility that uses wheat and/or barley 
  7.3   as its primary feedstock.  
  7.4   [LAMB AND WOOL PROGRAM.] $100,000 the 
  7.5   first year and $100,000 the second year 
  7.6   are for a collaborative research, 
  7.7   production education, and herd 
  7.8   development and management program at 
  7.9   the Minnesota state colleges and 
  7.10  universities system facility located at 
  7.11  Pipestone for lamb and wool farmers.  
  7.12  [ORGANIC AND SUSTAINABLE PROGRAMS.] (a) 
  7.13  $360,000 the first year and $360,000 
  7.14  the second year are for organic and 
  7.15  sustainable agriculture programs, as 
  7.16  described in paragraphs (b) to (d). 
  7.17  (b) $50,000 each year is for organic 
  7.18  certification cost-share to Minnesota 
  7.19  farmers, assistance to organic growers, 
  7.20  or market development.  Of the amount 
  7.21  for organic programs, at least $70,000 
  7.22  is for cost-share payments and up to 
  7.23  $30,000 may be used for organic market 
  7.24  development or other assistance to 
  7.25  organic growers.  Cost-share payments 
  7.26  must be two-thirds of the cost of the 
  7.27  certification or $200 per farmer, 
  7.28  whichever is less.  A certified farmer 
  7.29  is eligible to receive annual 
  7.30  certification cost-share payments for 
  7.31  up to five years. 
  7.32  (c) $100,000 each year is for a 
  7.33  contract with a qualified research 
  7.34  institution to gather, evaluate, 
  7.35  publish, and disseminate sustainable 
  7.36  agriculture information to a broad 
  7.37  audience through both printed and 
  7.38  electronic means.  The commissioner 
  7.39  shall require semi-annual reports on 
  7.40  activities of the research institution. 
  7.41  (d) $210,000 each year is for grants to 
  7.42  farmers for demonstration projects 
  7.43  involving sustainable agriculture as 
  7.44  authorized in Minnesota Statutes, 
  7.45  section 17.116.  Of the amount for 
  7.46  grants, up to $40,000 may be used for 
  7.47  dissemination of information about the 
  7.48  demonstration projects.  
  7.49  [TURF GRASS RESEARCH.] $100,000 the 
  7.50  first year and $100,000 the second year 
  7.51  are for a grant, under contract, to the 
  7.52  northern Minnesota forage-turf seed 
  7.53  advisory committee.  This appropriation 
  7.54  is for basic and applied research on 
  7.55  the improved production of forage and 
  7.56  turf seed related to new and improved 
  7.57  varieties.  Basic and applied research 
  7.58  may be contracted to a qualified third 
  7.59  party.  Not later than March 1, 2003, 
  7.60  the commissioner shall provide an 
  7.61  interim report on the grant to the 
  7.62  committees of the senate and house of 
  7.63  representatives having jurisdiction 
  7.64  over agricultural policy and finance 
  7.65  issues.  Any unencumbered balance does 
  8.1   not cancel at the end of the first year 
  8.2   and is available for grants in the 
  8.3   second year.  
  8.4   [QUARANTINE GREENHOUSE OPERATION.] 
  8.5   $120,000 the first year and $240,000 
  8.6   the second year are for operating funds 
  8.7   to staff and maintain the quarantine 
  8.8   greenhouse facility constructed as 
  8.9   authorized by Laws 2000, chapter 492, 
  8.10  article 1, section 2, subdivision 4. 
  8.11  [AGRICULTURE BEST MANAGEMENT PRACTICES 
  8.12  PROGRAM.] $350,000 the first year and 
  8.13  $350,000 the second year are for the 
  8.14  agricultural best management practices 
  8.15  program. 
  8.16  [MINNESOTA CERTIFICATION PROGRAM.] 
  8.17  $215,000 the first year and $215,000 
  8.18  the second year are for operation of 
  8.19  the Minnesota certification program 
  8.20  under Minnesota Statutes, section 
  8.21  17.1025.  Base-level funding for 
  8.22  2004-2005 biennium is $640,000. 
  8.23  [MINNESOTA GROWN MATCHING.] $71,000 the 
  8.24  first year and $71,000 the second year 
  8.25  are for transfer to the Minnesota grown 
  8.26  matching account and may be used as 
  8.27  grants for Minnesota grown promotion 
  8.28  under Minnesota Statutes, section 
  8.29  17.109. 
  8.30  Subd. 4.  Administration and  
  8.31  Financial Assistance                   5,519,000      5,288,000
  8.32  [FARM ADVOCATES PROGRAM.] $274,000 the 
  8.33  first year and $274,000 the second year 
  8.34  are for the farm advocates program. 
  8.35  [TURKEY RESPIRATORY DISEASE RESEARCH.] 
  8.36  $300,000 the first year and $300,000 
  8.37  the second year are for a grant to the 
  8.38  University of Minnesota to fund 
  8.39  research on turkey respiratory disease 
  8.40  control and prevention.  This 
  8.41  appropriation must be matched on a 
  8.42  dollar-for-dollar basis with public or 
  8.43  nonpublic money and is in addition to 
  8.44  other public and nonpublic money for 
  8.45  turkey research.  This is a one-time 
  8.46  appropriation.  Any unencumbered 
  8.47  balance does not cancel at the end of 
  8.48  the first year and is available for 
  8.49  grants in the second year.  
  8.50  [ELECTRONIC INFORMATION MANAGEMENT 
  8.51  SYSTEM.] $425,000 the first year and 
  8.52  $200,000 the second year are for an 
  8.53  electronic information management 
  8.54  system.  This appropriation is in 
  8.55  addition to base funding. 
  8.56  [FAMILY FARM INTEREST PAYMENT 
  8.57  ADJUSTMENTS.] $13,000 the first year 
  8.58  and $7,000 the second year are for 
  8.59  family farm security interest payment 
  8.60  adjustments.  If the appropriation for 
  8.61  either year is insufficient, the 
  8.62  appropriation for the other year is 
  9.1   available for it.  No new loans may be 
  9.2   approved in fiscal year 2002 or 2003.  
  9.3   [NORTHERN CROPS INSTITUTE.] $70,000 the 
  9.4   first year and $70,000 the second year 
  9.5   are for the Northern Crops Institute.  
  9.6   These appropriations may be spent to 
  9.7   purchase equipment.  
  9.8   [AGRICULTURE INFORMATION CENTERS.] 
  9.9   $175,000 the first year and $175,000 
  9.10  the second year are for grants to 
  9.11  agriculture information centers.  The 
  9.12  grants are only available on a match 
  9.13  basis.  The funds may be released at 
  9.14  the rate of $4 of state money for each 
  9.15  $1 of matching nonstate money that is 
  9.16  raised.  
  9.17  [SEAWAY PORT AUTHORITY.] $115,000 the 
  9.18  first year and $115,000 the second year 
  9.19  are for the Seaway Port Authority of 
  9.20  Duluth for purposes of providing direct 
  9.21  assistance and services to cooperative 
  9.22  shippers' associations, agricultural 
  9.23  marketing cooperatives, individual 
  9.24  agricultural producers, and other 
  9.25  groups seeking to benefit from 
  9.26  opportunities to market and ship 
  9.27  commodities from an international 
  9.28  seaway port. 
  9.29  [MINNESOTA LIVESTOCK BREEDERS' 
  9.30  ASSOCIATION.] $19,000 the first year 
  9.31  and $19,000 the second year are for a 
  9.32  grant to the Minnesota Livestock 
  9.33  Breeders' Association. 
  9.34  [COUNTY FAIR EXHIBITOR AWARDS.] $50,000 
  9.35  the first year and $50,000 the second 
  9.36  year are for distribution to county 
  9.37  agricultural societies under Minnesota 
  9.38  Statutes, section 38.02.  This 
  9.39  appropriation is in addition to base 
  9.40  and is added to base in fiscal year 
  9.41  2004. 
  9.42  Sec. 3.  BOARD OF ANIMAL HEALTH        2,964,000      2,846,000 
  9.43  [JOHNE'S DISEASE; CATTLE HERD TESTING.] 
  9.44  $340,000 the first year and $340,000 
  9.45  the second year are for enhancement of 
  9.46  the paratuberculosis (Johne's disease) 
  9.47  program, including financial and 
  9.48  educational assistance with testing and 
  9.49  related activities to reduce the 
  9.50  prevalence of the disease and the 
  9.51  establishment of test-negative herds as 
  9.52  a source of paratuberculosis-free 
  9.53  replacement cattle.  $140,000 of this 
  9.54  appropriation in each year is a 
  9.55  one-time appropriation. 
  9.56  [CONTROL OF PSEUDORABIES AND OTHER 
  9.57  DISEASE EMERGENCIES.] $100,000 the 
  9.58  first year and $100,000 the second year 
  9.59  are to provide short term, emergency 
  9.60  funding for unanticipated livestock 
  9.61  disease outbreaks including continued 
  9.62  efforts to control pseudorabies in 
  9.63  swine.  This appropriation may be used 
 10.1   to cover the costs of pseudorabies 
 10.2   monitoring, vaccines, blood tests, and 
 10.3   laboratory fees.  If the appropriation 
 10.4   for either year is insufficient, the 
 10.5   appropriation for the other year is 
 10.6   available.  This is a one-time 
 10.7   appropriation and remains available 
 10.8   until June 30, 2003. 
 10.9   Sec. 4.  MINNESOTA HORTICULTURAL 
 10.10  SOCIETY                                  41,000         41,000
 10.11  Sec. 5.  AGRICULTURAL UTILIZATION
 10.12  RESEARCH INSTITUTE                    3,880,000      4,130,000
 10.13  $200,000 the first year and $200,000 
 10.14  the second year are for hybrid tree 
 10.15  management research and development of 
 10.16  an implementation plan for establishing 
 10.17  hybrid tree plantations in the state.  
 10.18  This appropriation is available to the 
 10.19  extent matched by $2 of nonstate 
 10.20  contributions, either cash or in kind, 
 10.21  for each $1 of state money. 
 10.22  Sec. 6.  ACRRA FEE BALANCE
 10.23  Notwithstanding Minnesota Statutes, 
 10.24  section 16A.1283, or other law, the 
 10.25  commissioner of agriculture shall 
 10.26  adjust fees collected for the 
 10.27  agricultural chemical response and 
 10.28  reimbursement account created under 
 10.29  Minnesota Statutes, section 18E.03, 
 10.30  subdivision 1, as provided in Minnesota 
 10.31  Statutes, section 18E.03, subdivision 
 10.32  3.  This exemption is intended to allow 
 10.33  the commissioner to maintain the ACRRA 
 10.34  account balance between $1,000,000 and 
 10.35  $5,000,000. 
 10.36     Sec. 7.  [17.1017] [PROMOTIONAL PUBLICATIONS.] 
 10.37     When a copy of the department's promotional publication 
 10.38  commonly referred to as "The Green Book, Marketing Sustainable 
 10.39  Agriculture" is provided to a non-Minnesota resident, the 
 10.40  commissioner may charge a fee for the publication approximately 
 10.41  sufficient to cover the costs of printing and distribution. 
 10.42     Sec. 8.  Minnesota Statutes 2000, section 17.102, 
 10.43  subdivision 3, is amended to read: 
 10.44     Subd. 3.  [LICENSE.] A person may not use the Minnesota 
 10.45  grown logo or labeling without an annual license from the 
 10.46  commissioner.  The commissioner shall issue licenses for a fee 
 10.47  of $5.  ~~The commissioner shall charge a late fee of $10 for~~ 
 10.48  ~~renewal of a license that has expired.~~ 
 10.49     Sec. 9.  Minnesota Statutes 2000, section 17.1025, is 
 10.50  amended to read: 
 11.1      17.1025 [MINNESOTA CERTIFICATION PROGRAM.] 
 11.2      Subdivision 1.  [ESTABLISHMENT.] In cooperation with the 
 11.3   University of Minnesota, the department of trade and economic 
 11.4   development, and the board of animal health, the commissioner 
 11.5   shall establish a ~~pilot~~ program to certify agricultural 
 11.6   production methods and agricultural products grown or processed 
 11.7   within the state to assure the integrity of claims made by 
 11.8   participating businesses.  The commissioner may select and 
 11.9   cooperate with private organizations that have established 
 11.10  procedures and safeguards to justify claimed characteristics of 
 11.11  the production process or the final certified product to conduct 
 11.12  certification activities for third party producers. 
 11.13     The commissioner may establish guidelines for the 
 11.14  certification program, which are not subject to chapter 14.  ~~The~~ 
 11.15  ~~commissioner shall submit a report on the pilot program to the~~ 
 11.16  ~~legislature by February 1, 2001.~~ 
 11.17     Subd. 2.  [CERTIFICATION PROCESS.] Applications for 
 11.18  certification must be submitted to the commissioner and must be 
 11.19  evaluated by representatives of the commissioner, the University 
 11.20  of Minnesota, the department of trade and economic development, 
 11.21  other state agencies with regulatory authority or expertise in 
 11.22  the subject matter of the application or in the certification 
 11.23  process, and any other person named by the commissioner.  
 11.24     The commissioner shall make the final certification 
 11.25  decision after the certification group prepares a 
 11.26  recommendation.  The application may be accepted, denied, or 
 11.27  returned to the applicant for further action.  The 
 11.28  recommendation must be based upon the benefit of the 
 11.29  certification to the producer or processor, the benefit to the 
 11.30  state's agricultural economy, the costs to the state involved in 
 11.31  certification and ongoing monitoring, the quality of internal 
 11.32  and external audit controls to assure compliance with the terms 
 11.33  of the certification, and other factors appropriate to best 
 11.34  benefit the participants and the state.  
 11.35     Subd. 3.  [INTELLECTUAL PROPERTY.] The commissioner shall 
 11.36  develop a logo and develop language to best promote the use of 
 12.1   certified products and procedures, and explore and implement 
 12.2   procedures to best use the resources of the Internet in the 
 12.3   promotion and distribution of Minnesota certified products and 
 12.4   processes.  To the extent practical, the Minnesota certification 
 12.5   program must be coordinated with the Minnesota grown program 
 12.6   under section 17.102 to accomplish the goals of both programs.  
 12.7      Subd. 4.  [CERTIFICATION REVOCATION OR SUSPENSION; 
 12.8   MISDEMEANOR.] A certification may be revoked or suspended by the 
 12.9   commissioner without hearing if the terms of the certification 
 12.10  are not being followed, the certification has become unused or 
 12.11  obsolete, or the continued use of the certification is contrary 
 12.12  to the interests of the state or the purpose of the 
 12.13  certification program.  Use of the certification after 
 12.14  suspension or revocation is a misdemeanor and may also be 
 12.15  enjoined by the commissioner in an action in district court.  
 12.16     Subd. 5.  [MINNESOTA CERTIFIED ACCOUNT; FEES.] (a) A 
 12.17  Minnesota certified account is created in the agricultural 
 12.18  fund.  All fees and reimbursements collected under this 
 12.19  subdivision must be deposited in the account.  Money in the 
 12.20  account is appropriated to the commissioner. 
 12.21     (b) An applicant must pay an application fee of $100 to the 
 12.22  commissioner.  In addition, if the commissioner must contract 
 12.23  with a third party to provide specific auditing or other 
 12.24  services to validate an application, the applicant may be 
 12.25  required to reimburse the commissioner for the cost of these 
 12.26  services.  Prior to incurring expenses in excess of the 
 12.27  application fee, the commissioner shall provide the affected 
 12.28  applicant an opportunity to withdraw from the program.  The 
 12.29  commissioner may also arrange terms for reimbursement of the 
 12.30  cost of additional services.  
 12.31     Subd. 6.  [NO GUARANTEE OR WARRANTY.] Certification does 
 12.32  not constitute a guarantee or warranty as to any characteristic 
 12.33  of any product or production process.  The state and other 
 12.34  parties involved in the certification decision may not be found 
 12.35  liable for a certification or refusal to certify.  
 12.36     Sec. 10.  Minnesota Statutes 2000, section 17.117, is 
 13.1   amended to read: 
 13.2      17.117 [AGRICULTURE BEST MANAGEMENT PRACTICES LOAN 
 13.3   PROGRAM.] 
 13.4      Subdivision 1.  [PURPOSE.] The purpose of the agriculture 
 13.5   best management practices loan program is to provide low or no 
 13.6   interest financing to farmers, agriculture supply businesses, 
 13.7   and rural landowners for the implementation of agriculture and 
 13.8   other best management practices that reduce environmental 
 13.9   pollution. 
 13.10     Subd. 2.  [AUTHORITY.] The commissioner ~~shall~~ may develop 
 13.11  administrative guidelines specifying criteria, standards, and 
 13.12  procedures for making loans and establish, adopt rules for, and 
 13.13  implement a program to make loans or otherwise provide funds to 
 13.14  local units of government, federal authorities, lending 
 13.15  institutions, and other appropriate organizations who will in 
 13.16  turn provide loans to landowners and businesses for facilities, 
 13.17  fixtures, equipment, or other ~~sustainable~~ best management 
 13.18  practices that prevent or mitigate ~~sources of nonpoint source~~ 
 13.19  ~~water~~ pollution or other adverse environmental impacts.  ~~The~~ 
 13.20  ~~commissioner shall establish pilot projects to develop~~ 
 13.21  ~~procedures for implementing the program.  The commissioner shall~~ 
 13.22  ~~develop administrative guidelines to implement the pilot~~ 
 13.23  ~~projects specifying criteria, standards, and procedures for~~ 
 13.24  ~~making loans.~~  The agriculture best management practices loan 
 13.25  program must provide a consistent programmatic framework for the 
 13.26  disbursement and administration of funds available to the 
 13.27  commissioner designated to the program for protection of 
 13.28  environmental quality or remediation or mitigation of adverse 
 13.29  environmental impacts.  The distribution of loans or funds 
 13.30  through the program must comply with all limitations, 
 13.31  provisions, or requirements of the respective funding sources.  
 13.32  Unless otherwise limited by the funding source, the commissioner 
 13.33  shall manage the program using perpetual revolving fund accounts.
 13.34     Subd. 3.  [APPROPRIATIONS.] Up to $140,000,000 of the 
 13.35  balance in the water pollution control revolving fund in section 
 13.36  446A.07, as determined by the public facilities authority, is 
 14.1   appropriated to the commissioner for the establishment of this 
 14.2   program.  In addition, the commissioner may receive 
 14.3   appropriations from the legislature and grants or funds from 
 14.4   other sources for implementation of the program. 
 14.5      Subd. 4.  [DEFINITIONS.] (a) For the purposes of this 
 14.6   section, the terms defined in this subdivision have the meanings 
 14.7   given them. 
 14.8      (b) "Agricultural and environmental revolving accounts" 
 14.9   means accounts in the agricultural fund, controlled by the 
 14.10  commissioner, which hold funds available to the program. 
 14.11     (c) "Agriculture supply business" means a person, 
 14.12  partnership, joint venture, corporation, limited liability 
 14.13  company, association, firm, public service company, or 
 14.14  cooperative that provides materials, equipment, or services to 
 14.15  farmers or agriculture-related enterprises. 
 14.16     (d) "Allocation" means the funds awarded to an applicant 
 14.17  for implementation of best management practices through a 
 14.18  competitive or noncompetitive application process. 
 14.19     ~~(a)~~ (e) "Applicant" means a ~~county or a local government~~ 
 14.20  ~~unit designated by a county under subdivision 8, paragraph~~ 
 14.21  ~~(a)~~ local unit of government eligible to participate in this 
 14.22  program that requests an allocation of funds as provided in 
 14.23  subdivision 6b. 
 14.24     ~~(b) "Authority" means the Minnesota public facilities~~ 
 14.25  ~~authority as established in section 446A.03.~~ 
 14.26     ~~(c)~~ (f) "Best management practices" has the meaning given 
 14.27  in sections 103F.711, subdivision 3, and 103H.151, subdivision 
 14.28  2, or other practices, techniques, and measures that have been 
 14.29  demonstrated to the satisfaction of the commissioner to prevent 
 14.30  or reduce adverse environmental impacts by using the most 
 14.31  effective and practicable means of achieving environmental goals.
 14.32     ~~(d) "Chair" means the chair of the board of water and soil~~ 
 14.33  ~~resources or the designee of the chair.~~ 
 14.34     ~~(e)~~ (g) "Borrower" means ~~an individual~~ a farmer, an 
 14.35  agriculture supply business, or a rural landowner applying for a 
 14.36  low-interest loan. 
 15.1      ~~(f)~~ (h) "Commissioner" means the commissioner of 
 15.2   agriculture, including when the commissioner is acting in the 
 15.3   capacity of chair of the rural finance authority, or the 
 15.4   designee of the commissioner. 
 15.5      (i) "Committed project" means an eligible project scheduled 
 15.6   to be implemented at a future date:  
 15.7      (1) that has been approved and certified by the local 
 15.8   government unit; and 
 15.9      (2) for which a local lender has obligated itself to offer 
 15.10  a loan. 
 15.11     ~~(g)~~ (j) "Comprehensive water management plan" means a state 
 15.12  approved and locally adopted plan authorized under section 
 15.13  103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405. 
 15.14     ~~(h) "Local allocation request" means a loan allocation~~ 
 15.15  ~~request from an applicant to implement agriculturally related~~ 
 15.16  ~~best management practices defined in paragraph (c).~~ 
 15.17     (k) "Cost incurred" means expenses for implementation of a 
 15.18  project accrued because the borrower has agreed to purchase 
 15.19  equipment or is obligated to pay for services or materials 
 15.20  already provided as a result of implementing a prior approved 
 15.21  eligible project. 
 15.22     (l) "Farmer" means a person, partnership, joint venture, 
 15.23  corporation, limited liability company, association, firm, 
 15.24  public service company, or cooperative that regularly 
 15.25  participates in physical labor or operations management of 
 15.26  farming and files a Schedule F as part of filing United States 
 15.27  Internal Revenue Service Form 1040 or indicates farming as the 
 15.28  primary business activity under Schedule C, K, or S, or any 
 15.29  other applicable report to the United States Internal Revenue 
 15.30  Service. 
 15.31     ~~(i)~~ (m) "Lender agreement" means ~~a loan agreement entered~~ 
 15.32  ~~into between the commissioner, a local lender, and the~~ 
 15.33  ~~applicant, if different from the local lender.  The agreement~~ 
 15.34  ~~will contain terms and conditions of the loan that will include~~ 
 15.35  ~~but need not be limited to general loan provisions, loan~~ 
 15.36  ~~management requirements, application of payments, loan term~~ 
 16.1   ~~limits, allowable expenses, and fee limitations~~ an agreement 
 16.2   entered into between the commissioner and a local lender which 
 16.3   contains terms and conditions of participation in the program. 
 16.4      ~~(j)~~ (n) "Local government unit" means a county, soil and 
 16.5   water conservation district, or an organization formed for the 
 16.6   joint exercise of powers under section 471.59 with the authority 
 16.7   to participate in the program. 
 16.8      ~~(k)~~ (o) "Local lender" means a local government unit as 
 16.9   defined in paragraph ~~(j)~~ (n), a state or federally chartered 
 16.10  bank, a savings association, a state or federal credit 
 16.11  union, Agribank and its affiliated organizations, or a nonprofit 
 16.12  economic development organization or other financial lending 
 16.13  institution approved by the commissioner~~, or Farm Credit~~ 
 16.14  ~~Services~~. 
 16.15     (p) "Local revolving loan account" means the account held 
 16.16  by a local government unit and a local lender into which 
 16.17  principal repayments from borrowers are deposited and new loans 
 16.18  are issued in accordance with the requirements of the program 
 16.19  and lender agreements. 
 16.20     ~~(l)~~ (q) "Nonpoint source" has the meaning given in section 
 16.21  103F.711, subdivision 6. 
 16.22     (r) "Program" means the agriculture best management 
 16.23  practices loan program in this section. 
 16.24     (s) "Project" means one or more components or activities 
 16.25  located within Minnesota that are required by the local 
 16.26  government unit to be implemented for satisfactory completion of 
 16.27  an eligible best management practice. 
 16.28     (t) "Rural landowner" means the owner of record of 
 16.29  Minnesota real estate located in an area determined by the local 
 16.30  government unit to be rural after consideration of local land 
 16.31  use patterns, zoning regulations, jurisdictional boundaries, 
 16.32  local community definitions, historical uses, and other 
 16.33  pertinent local factors. 
 16.34     Subd. 5.  [USES OF FUNDS.] Use of funds under this section 
 16.35  must be in compliance with the rules and regulations of the 
 16.36  funding source or appropriation.  Use of funds from the public 
 17.1   facilities authority must comply with the federal Water 
 17.2   Pollution Control Act, section 446A.07, and eligible activities 
 17.3   listed in the intended use plan authorized in section 446A.07, 
 17.4   subdivision 4. 
 17.5      Subd. 5a.  [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 
 17.6   ACCOUNTS.] (a) There shall be established in the agricultural 
 17.7   fund revolving accounts to receive appropriations and money from 
 17.8   other sources.  All repayments of loans granted under this 
 17.9   section, including principal and interest, must be deposited 
 17.10  into the appropriate revolving account including the water 
 17.11  pollution control revolving account under section 446A.07.  
 17.12  Interest earned in an account accrues to that account. 
 17.13     (b) The money in the revolving accounts is appropriated to 
 17.14  the commissioner for the purposes of this section. 
 17.15     Subd. 6.  [APPLICATION.] (a) Only the following local 
 17.16  government units may apply for funds under this program: 
 17.17     (1) counties or their designees; 
 17.18     (2) soil and water conservation districts; and 
 17.19     (3) joint power organizations consisting of counties or 
 17.20  their designees or soil and water conservation districts. 
 17.21     (b) A county may submit an application for an allocation.  
 17.22  A county or a group of counties may designate another local 
 17.23  government unit to submit a local allocation request on their 
 17.24  behalf.  If a county does not submit an application, and does 
 17.25  not designate another local government unit, a soil and water 
 17.26  conservation district may submit an application for an 
 17.27  allocation.  If the local soil and water conservation district 
 17.28  does not submit an application, then an eligible joint powers 
 17.29  organization may submit an application for an allocation.  In 
 17.30  all instances, there may be only one application representing 
 17.31  any geographic area.  The applicant must coordinate and submit 
 17.32  requests on behalf of other units of government within the 
 17.33  geographic jurisdiction of the applicant. 
 17.34     ~~(a)~~ (c) The commissioner must prescribe forms and establish 
 17.35  an application process for applicants to apply for ~~a local~~ an 
 17.36  allocation ~~request~~ of funds.  The application must include but 
 18.1   need not be limited to (1) the geographic area served; (2) the 
 18.2   type and estimated cost of activities or projects for which they 
 18.3   are seeking ~~a loan~~ an allocation; and (3) ~~a ranking~~ 
 18.4   prioritization or targeting of proposed activities or projects~~;~~ 
 18.5   ~~and (4) the designation of the local lender and lending~~ 
 18.6   ~~practices the local lender intends to use to issue the loans to~~ 
 18.7   ~~the borrowers, if a local lender other than the applicant is to~~ 
 18.8   ~~be used~~. 
 18.9      ~~(b)~~ (d) If ~~a local allocation request~~ an application is 
 18.10  rejected, the applicant must be notified in writing as to the 
 18.11  reasons for the rejection and given 30 days to submit a revised 
 18.12  application.  The revised application shall be reviewed 
 18.13  according to the same procedure used to review the initial 
 18.14  application.  Failure of an applicant to be awarded funds does 
 18.15  not constitute a rejection of the application. 
 18.16     Subd. 6a.  [REVIEW AND RANKING OF APPLICATIONS.] (a) The 
 18.17  commissioner shall chair the subcommittee established in section 
 18.18  103F.761, subdivision 2, paragraph (b), for purposes of 
 18.19  reviewing and ranking applications and recommending to the 
 18.20  commissioner allocation amounts.  The subcommittee consists of 
 18.21  representatives of the departments of agriculture, natural 
 18.22  resources, and health; the pollution control agency; the board 
 18.23  of water and soil resources; the Farm Service Agency and the 
 18.24  Natural Resource Conservation Service of the United States 
 18.25  Department of Agriculture; the Association of Minnesota 
 18.26  Counties; the Minnesota Association of Soil and Water 
 18.27  Conservation Districts; and other agencies or associations the 
 18.28  commissioner determines are appropriate. 
 18.29     (b) The subcommittee must use the following criteria as 
 18.30  well as other criteria it determines appropriate in carrying out 
 18.31  the review and ranking: 
 18.32     (1) whether the proposed activities are identified in a 
 18.33  comprehensive water management plan or other appropriate local 
 18.34  planning documents as priorities; 
 18.35     (2) the potential that the proposed activities have for 
 18.36  improving or protecting environmental quality; 
 19.1      (3) the extent that the proposed activities support 
 19.2   areawide or multijurisdictional approaches to protecting 
 19.3   environmental quality based on defined watershed or similar 
 19.4   geographic areas; 
 19.5      (4) whether the activities are needed for compliance with 
 19.6   existing environmental laws or rules; 
 19.7      (5) whether the proposed activities demonstrate 
 19.8   participation, coordination, and cooperation between local units 
 19.9   of government and other public agencies; 
 19.10     (6) whether there is coordination with other public and 
 19.11  private funding sources and programs; 
 19.12     (7) whether the applicant has targeted specific best 
 19.13  management practices to resolve specific environmental problems; 
 19.14     (8) past performance of the applicant in completing 
 19.15  projects identified in prior applications and allocation 
 19.16  agreements; and 
 19.17     (9) whether there are off-site public benefits. 
 19.18     Subd. 6b.  [ALLOCATION AMOUNT.] (a) The subcommittee 
 19.19  created in subdivision 6a shall recommend to the commissioner 
 19.20  the amount of allocation for each applicant.  This allocation 
 19.21  must include: 
 19.22     (1) the amount of repayments received by the commissioner 
 19.23  during the previous year from prior completed projects approved 
 19.24  by the local government unit; and 
 19.25     (2) the amount of funds previously designated to committed 
 19.26  projects. 
 19.27     (b) Within the limits of the funds available to the 
 19.28  commissioner, the subcommittee may recommend an increased 
 19.29  allocation award to the applicant based on: 
 19.30     (1) the ranking of the local government unit application 
 19.31  under subdivision 6a; and 
 19.32     (2) the amount of unallocated or uncommitted funds in, or 
 19.33  that will be received by, the agricultural and environmental 
 19.34  revolving accounts within one year. 
 19.35     (c) Notwithstanding paragraphs (a) and (b), the 
 19.36  commissioner may reserve up to two percent of all funds 
 20.1   appropriated to the agricultural and environmental revolving 
 20.2   accounts to be allocated to applicants that disburse or commit 
 20.3   all of their current allocations or to local lenders who wish to 
 20.4   provide financial assistance.  
 20.5      (d) The commissioner may add, for the purposes of 
 20.6   calculating future allocations under paragraphs (a) and (b), the 
 20.7   loan amount for projects financed from these reserved funds to 
 20.8   the allocation for the respective local government units in 
 20.9   which jurisdiction the project was completed.  
 20.10     Subd. 7.  [PAYMENTS TO LOCAL LENDERS.] (a) Payments made 
 20.11  from the ~~water pollution control revolving fund~~ commissioner to 
 20.12  the local lender must be made in accordance with applicable 
 20.13  state and federal laws and rules governing the payments and the 
 20.14  lender agreement. 
 20.15     (b) Payments from the commissioner to the local lender must 
 20.16  be disbursed on a cost-incurred basis.  ~~Local lenders shall~~ 
 20.17  ~~submit payment requests at least quarterly but not more than~~ 
 20.18  ~~monthly.  Payment requests must be reviewed and approved by the~~ 
 20.19  ~~commissioner.  The payment request form must itemize all costs~~ 
 20.20  ~~by major elements and show eligible and ineligible costs.~~  The 
 20.21  request must be made in accordance with requirements and 
 20.22  procedures established by the commissioner.  Payment requests 
 20.23  must be reviewed and approved by the commissioner. 
 20.24     ~~(c) The commissioner may initiate recision of an allocation~~ 
 20.25  ~~granted in a lender agreement as provided in subdivision 11,~~ 
 20.26  ~~paragraph (d), if the local lender fails to enter into loans~~ 
 20.27  ~~with borrowers equaling the total allocation granted within one~~ 
 20.28  ~~year from the date of the lender agreement or fails to have the~~ 
 20.29  ~~total amount of allocated funds drawn down through payment~~ 
 20.30  ~~requests within two years.  An additional year to draw down the~~ 
 20.31  ~~undisbursed portion of an allocation may be granted by the~~ 
 20.32  ~~commissioner under extenuating circumstances.~~  
 20.33     Subd. 8.  [~~APPLICANT; BORROWERS~~ ALLOCATION AGREEMENT.] (a) 
 20.34  ~~A county may submit a local allocation request.  A county or a~~ 
 20.35  ~~group of counties may designate another local government unit to~~ 
 20.36  ~~submit a local allocation request.~~ 
 21.1      ~~(b) If a county does not submit a local allocation request,~~ 
 21.2   ~~and does not designate another local government unit, a soil and~~ 
 21.3   ~~water conservation district may submit a local allocation~~ 
 21.4   ~~request.  In all instances, there may be only one request from a~~ 
 21.5   ~~county.  The applicant must coordinate and submit requests on~~ 
 21.6   ~~behalf of other units of government within the geographic~~ 
 21.7   ~~jurisdiction of the applicant.~~  Eligible local government units 
 21.8   with an allocation award may enter into an allocation agreement 
 21.9   with the commissioner and participate in this program. 
 21.10     (b) The allocation agreement must contain terms and 
 21.11  conditions for participation in this program and providing of 
 21.12  funds through this program, including, but not limited to:  
 21.13  program requirements, reporting requirements, project 
 21.14  eligibility and limitations, allowable expenses, limitations, 
 21.15  recision and cancellation provisions, and the responsibilities 
 21.16  of the commissioner, local government unit, and local lender. 
 21.17     (c) If the commissioner determines that a local government 
 21.18  unit is not in compliance with the terms of the allocation 
 21.19  agreement, the commissioner may rescind all or part of any 
 21.20  allocation awarded through this program. 
 21.21     Subd. 9.  [~~REVIEW AND RANKING OF ALLOCATION REQUESTS~~ 
 21.22  ALLOCATION RECISION.] ~~(a) The commissioner shall chair the~~ 
 21.23  ~~subcommittee established in section 103F.761, subdivision 2,~~ 
 21.24  ~~paragraph (b), for purposes of reviewing and ranking local~~ 
 21.25  ~~allocation requests.  The rankings must be in order of priority~~ 
 21.26  ~~and shall provide financial assistance within the limits of the~~ 
 21.27  ~~funds available.  In carrying out the review and ranking, the~~ 
 21.28  ~~subcommittee must consist of, at a minimum, the chair,~~ 
 21.29  ~~representatives of the pollution control agency, United States~~ 
 21.30  ~~Department of Agricultural Stabilization and Conservation~~ 
 21.31  ~~Service, United States Department of Agriculture Soil~~ 
 21.32  ~~Conservation Service, Association of Minnesota Counties, and~~ 
 21.33  ~~other agencies or associations as the commissioner, the chair,~~ 
 21.34  ~~and agency determine are appropriate.  The review and ranking~~ 
 21.35  ~~shall take into consideration other related state or federal~~ 
 21.36  ~~programs.~~ 
 22.1      ~~(b) The subcommittee shall use the criteria listed below in~~ 
 22.2   ~~carrying out the review and ranking:~~ 
 22.3      ~~(1) whether the proposed activities are identified in a~~ 
 22.4   ~~comprehensive water management plan as priorities;~~ 
 22.5      ~~(2) whether the applicant intends to establish a revolving~~ 
 22.6   ~~loan program under subdivision 10, paragraph (b);~~ 
 22.7      ~~(3) the potential that the proposed activities have for~~ 
 22.8   ~~improving or protecting surface and groundwater quality;~~ 
 22.9      ~~(4) the extent that the proposed activities support~~ 
 22.10  ~~areawide or multijurisdictional approaches to protecting water~~ 
 22.11  ~~quality based on defined watershed;~~ 
 22.12     ~~(5) whether the activities are needed for compliance with~~ 
 22.13  ~~existing water related laws or rules;~~ 
 22.14     ~~(6) whether the proposed activities demonstrate~~ 
 22.15  ~~participation, coordination, and cooperation between local units~~ 
 22.16  ~~of government and other public agencies;~~ 
 22.17     ~~(7) whether there is coordination with other public and~~ 
 22.18  ~~private funding sources and programs;~~ 
 22.19     ~~(8) whether there are off-site public benefits such as~~ 
 22.20  ~~preventing downstream degradation and siltation; and~~ 
 22.21     ~~(9) the proposed interest rate.~~  (a) Continued availability 
 22.22  of allocations granted to a local government unit is contingent 
 22.23  upon the commissioner's approval of the local government unit's 
 22.24  annual report.  The commissioner shall review this annual report 
 22.25  to ensure that the past and future uses of the funds are 
 22.26  consistent with the comprehensive water management plan, other 
 22.27  local planning documents, the requirements of the funding 
 22.28  source, and compliance to program requirements.  If the 
 22.29  commissioner concludes the past or intended uses of the money 
 22.30  are not consistent with these requirements, the commissioner 
 22.31  shall rescind all or part of the allocation awarded to a local 
 22.32  government unit. 
 22.33     (b) The commissioner may rescind funds allocated to the 
 22.34  local government unit that are not designated to committed 
 22.35  projects or disbursed within one year from the date of the 
 22.36  allocation agreement. 
 23.1      (c) An additional year to use the undisbursed portion of an 
 23.2   allocation may be granted by the commissioner under extenuating 
 23.3   circumstances. 
 23.4      Subd. 9a.  [AUTHORITY AND RESPONSIBILITIES OF ~~APPLICANTS~~ 
 23.5   LOCAL GOVERNMENT UNITS.] ~~Applicants may enter into a lender~~ 
 23.6   ~~agreement designating a local lender.  Applicants designating~~ 
 23.7   ~~themselves as the local lender may enter into contracts for loan~~ 
 23.8   ~~review, processing, and servicing.~~ (a) A local government unit 
 23.9   that enters into an allocation agreement with the commissioner: 
 23.10     (1) is responsible for the local administration and 
 23.11  implementation of the program in accordance with this section; 
 23.12     (2) may submit applications for allocations to the 
 23.13  commissioner; 
 23.14     (3) shall identify, develop, determine eligibility, define 
 23.15  and approve projects, designate maximum loan amounts for 
 23.16  projects, and certify completion of projects implemented under 
 23.17  this program.  In areas where no local government unit has 
 23.18  applied for funds under this program, the commissioner may 
 23.19  appoint a local government unit to review and certify projects 
 23.20  or the commissioner may assume the authority and responsibility 
 23.21  of the local government unit; 
 23.22     (4) shall certify as eligible only projects that are within 
 23.23  its geographic jurisdiction or within the geographic area 
 23.24  identified in its local comprehensive water management plans or 
 23.25  other local planning documents; 
 23.26     (5) may require withholding by the local lender of all or a 
 23.27  portion of the loan to the borrower until satisfactory 
 23.28  completion of all required components of a certified project; 
 23.29     (6) shall identify which account is used to finance an 
 23.30  approved project if the local government unit has allocations 
 23.31  from multiple accounts in the agricultural and environmental 
 23.32  revolving accounts; 
 23.33     (7) shall report to the commissioner annually the past and 
 23.34  intended uses of allocations awarded; and 
 23.35     (8) may request additional funds in excess of their 
 23.36  allocation when funds are available in the agricultural and 
 24.1   environmental revolving accounts, as long as all other 
 24.2   allocation awards to the local government unit have been used or 
 24.3   committed. 
 24.4      (b) If a local government unit withdraws from participation 
 24.5   in this program, the local government unit, or the commissioner 
 24.6   in accordance with the priorities established under subdivision 
 24.7   6a, may designate another local government unit that is eligible 
 24.8   under subdivision 6, as the new local government unit 
 24.9   responsible for local administration of this program.  This 
 24.10  designated local government unit may accept responsibility and 
 24.11  administration of allocations awarded to the former responsible 
 24.12  local government unit. 
 24.13     Subd. 9b.  [LENDER AGREEMENT.] (a) Any local lender 
 24.14  entering into a lender agreement with the commissioner may 
 24.15  participate in this program. 
 24.16     (b) The lender agreement will contain terms and conditions 
 24.17  for participation in this program and providing funds to the 
 24.18  local lenders, including but not limited to, program 
 24.19  requirements, loan and account management requirements, 
 24.20  payments, repayments, term limits, allowable expenses, fee 
 24.21  limitations, recision and cancellation provisions, collateral 
 24.22  and security requirements, reporting requirements, review and 
 24.23  appeal procedure for cancellation of the loan agreement or 
 24.24  disqualification as a local lender, and the responsibilities of 
 24.25  the commissioner, local government unit, and local lender. 
 24.26     (c) If the commissioner determines that a local lender is 
 24.27  not in compliance with the terms of the lender agreement, the 
 24.28  commissioner may take the following actions: 
 24.29     (1) disqualify the local lender as a participating lender 
 24.30  in this program for a period of up to five years from the date 
 24.31  that the commissioner determines noncompliance to the lender 
 24.32  agreement; and 
 24.33     (2) require immediate or accelerated repayment of all or 
 24.34  part of all funds provided to the local lender. 
 24.35     (d) Existing lender agreements, executed prior to July 1, 
 24.36  2001, may be amended by mutual consent of all signatory parties, 
 25.1   to comply with this section, to establish a single allocation 
 25.2   agreement that includes the amount of prior allocation awards 
 25.3   and defines the terms and conditions required under subdivision 
 25.4   8, or to modify the amount of allocation awarded. 
 25.5      Subd. 10.  [AUTHORITY AND RESPONSIBILITIES OF LOCAL 
 25.6   LENDERS.] (a) Local lenders may enter into lender agreements 
 25.7   with the commissioner. 
 25.8      (b) Local lenders may enter into loan agreements with 
 25.9   borrowers to finance eligible projects under this section. 
 25.10     (c) ~~Local lenders may establish revolving loan programs to~~ 
 25.11  ~~finance projects under this section~~ The local lender shall 
 25.12  notify the local government unit of the loan amount issued to 
 25.13  the borrower after the closing of each loan. 
 25.14     (d) Local lenders with local revolving loan accounts 
 25.15  created before July 1, 2001, may continue to retain and use 
 25.16  those accounts in accordance with their lending agreements for 
 25.17  the full term of those agreements. 
 25.18     (e) Local lenders, including ~~applicants~~ local government 
 25.19  units designating themselves as the local lender, may enter into 
 25.20  participation agreements with other lenders. 
 25.21     (f) Local lenders may ~~also~~ enter into contracts with other 
 25.22  lenders for the limited purposes of loan review, processing and 
 25.23  servicing, or to enter into loan agreements with borrowers to 
 25.24  finance projects under this section.  Other lenders entering 
 25.25  into contracts with local lenders under this section must meet 
 25.26  the definition of local lender in subdivision 4, must comply 
 25.27  with all provisions of the lender agreement and this section, 
 25.28  and must guarantee repayment of the loan funds to the local 
 25.29  lender.  ~~In no case may there be more than one local lender per~~ 
 25.30  ~~county or more than one revolving fund per county.~~ 
 25.31     (g) When required by the local government unit, a local 
 25.32  lender must withhold all or a portion of the loan disbursement 
 25.33  for a project until notified by the local government unit that 
 25.34  the project has been satisfactorily completed. 
 25.35     (h) The local lender is responsible for repaying all funds 
 25.36  provided by the commissioner to the local lender. 
 26.1      (i) The local lender is responsible for collecting 
 26.2   repayments from borrowers.  If a borrower defaults on a loan 
 26.3   issued by the local lender, it is the responsibility of the 
 26.4   local lender to obtain repayment from the borrower.  Default on 
 26.5   the part of borrowers shall have no effect on the local lender's 
 26.6   responsibility to repay its obligations to the commissioner 
 26.7   whether or not the local lender fully recovers defaulted amounts 
 26.8   from borrowers. 
 26.9      (j) The local lender shall provide sufficient collateral or 
 26.10  protection to the commissioner for the funds provided to the 
 26.11  local lender.  The commissioner must approve the collateral or 
 26.12  protection provided. 
 26.13     Subd. 11.  [LOANS ISSUED TO BORROWER ~~ELIGIBILITY; TERMS;~~ 
 26.14  ~~REPAYMENT; RECISION~~.] (a) Local lenders ~~shall use the following~~ 
 26.15  ~~criteria in addition to other criteria they deem necessary in~~ 
 26.16  ~~determining the eligibility of borrowers for loans:~~ 
 26.17     ~~(1) whether the activity is certified by a local unit of~~ 
 26.18  ~~government~~ may issue loans only for projects that are approved 
 26.19  and certified by the local government unit as meeting priority 
 26.20  needs identified in a comprehensive water management plan ~~and is~~ 
 26.21  or other local planning documents, are in compliance with 
 26.22  accepted practices, standards, specifications, or criteria~~;~~ 
 26.23     ~~(2) whether the activity is certified as~~, and are eligible 
 26.24  for financing under Environmental Protection Agency or other 
 26.25  applicable guidelines~~; and~~ 
 26.26     ~~(3) whether the repayment is assured from the borrower~~. 
 26.27     (b) The local lender may use any additional criteria 
 26.28  considered necessary to determine the eligibility of borrowers 
 26.29  for loans. 
 26.30     (c) Local lenders shall set the terms and conditions of 
 26.31  loans to borrowers, except that: 
 26.32     (1) no loan to ~~an individual~~ a borrower may exceed $50,000; 
 26.33     (2) no loan for a project may exceed $50,000; and 
 26.34     (3) no borrower shall, at any time, have multiple loans 
 26.35  from this program with a total outstanding loan balance of more 
 26.36  than $50,000.  ~~In all instances, local lenders must provide for~~ 
 27.1   ~~sufficient collateral or protection for the loan principal.~~  
 27.2   ~~They are responsible for collecting repayments by borrowers.~~  
 27.3      ~~(c) The local lender is responsible for repaying the~~ 
 27.4   ~~principal of a loan to the commissioner.  The terms of repayment~~ 
 27.5   ~~will be identified in the lender agreement.  If defaults occur,~~ 
 27.6   ~~it is the responsibility of the local lender to obtain repayment~~ 
 27.7   ~~from the borrower.  Default on the part of individual borrowers~~ 
 27.8   ~~shall have no effect on the local lender's responsibility to~~ 
 27.9   ~~repay its loan from the commissioner whether or not the local~~ 
 27.10  ~~lender fully recovers defaulted amounts from individual~~ 
 27.11  ~~borrowers.  For revolving loan programs established under~~ 
 27.12  ~~subdivision 10, paragraph (c), the lender agreement must provide~~ 
 27.13  ~~that:~~ 
 27.14     ~~(1) repayment of principal to the commissioner must begin~~ 
 27.15  ~~no later than ten years after the date of the lender agreement~~ 
 27.16  ~~and must be repaid in full no later than 20 years after the date~~ 
 27.17  ~~of the lender agreement;~~ 
 27.18     ~~(2) after the initial ten-year period, the local lender~~ 
 27.19  ~~shall not write any additional loans, and any existing principal~~ 
 27.20  ~~balance held by the local lender shall be immediately repaid to~~ 
 27.21  ~~the commissioner;~~ 
 27.22     ~~(3) after the initial ten-year period, all principal~~ 
 27.23  ~~received by the local lender from borrowers shall be repaid to~~ 
 27.24  ~~the commissioner as it is received; and~~ 
 27.25     ~~(4) the applicant shall report to the commissioner annually~~ 
 27.26  ~~regarding the past and intended uses of the money in the~~ 
 27.27  ~~revolving loan program.~~ 
 27.28     ~~(d) Continued availability of the allocation granted in the~~ 
 27.29  ~~lender agreement is contingent upon commissioner approval of the~~ 
 27.30  ~~annual report.  The commissioner shall review the annual report~~ 
 27.31  ~~to ensure the past and future uses of the funds are consistent~~ 
 27.32  ~~with the comprehensive water management plan and the lender~~ 
 27.33  ~~agreement.  If the commissioner concludes the past or intended~~ 
 27.34  ~~uses of the money are not consistent with the comprehensive~~ 
 27.35  ~~water management plan or the lender agreement, the commissioner~~ 
 27.36  ~~shall rescind the allocation granted under the lender agreement.~~ 
 28.1   ~~Such recision shall result in termination of available~~ 
 28.2   ~~allocation, the immediate repayment of any unencumbered funds~~ 
 28.3   ~~held by the local lender in a revolving loan fund, and the~~ 
 28.4   ~~repayment of the principal portion of loan repayments to the~~ 
 28.5   ~~commissioner as they are received.  The lender agreement shall~~ 
 28.6   ~~reflect the commissioner's rights under this paragraph.~~ 
 28.7      ~~(e) A local lender shall receive certification from local~~ 
 28.8   ~~government unit staff that a project has been satisfactorily~~ 
 28.9   ~~completed prior to releasing the final loan disbursement.~~ 
 28.10     (d) The maximum term length for conservation tillage and 
 28.11  individual sewage treatment system projects is five years.  The 
 28.12  maximum term length for other projects in this section is ten 
 28.13  years. 
 28.14     (e) Fees charged at the time of closing must: 
 28.15     (1) be in compliance with normal and customary practices of 
 28.16  the local lender; 
 28.17     (2) be in accordance with published fee schedules issued by 
 28.18  the local lender; 
 28.19     (3) not be based on participation in the program; and 
 28.20     (4) be consistent with fees charged other similar types of 
 28.21  loans offered by the local lender. 
 28.22     (f) The interest rate assessed to an outstanding loan 
 28.23  balance by the local lender must not exceed three percent per 
 28.24  year. 
 28.25     Subd. 11a.  [ELIGIBLE PROJECTS.] All projects that 
 28.26  remediate or mitigate adverse environmental impacts are eligible 
 28.27  if: 
 28.28     (1) the project is eligible under the allocation agreement 
 28.29  and provisions of the originating appropriation or funding 
 28.30  sources designated by the local government unit to finance the 
 28.31  project; and 
 28.32     (2) manure management projects remediate or mitigate 
 28.33  impacts from facilities with less than 1,000 animal units as 
 28.34  defined in Minnesota Rules, chapter 7020. 
 28.35     Subd. 12.  [DATA PRIVACY.] The following data on ~~applicants~~ 
 28.36  local government units, local lenders, or borrowers collected by 
 29.1   the commissioner under this section are private for data on 
 29.2   individuals as provided in section 13.02, subdivision 12, or 
 29.3   nonpublic for data not on individuals as provided in section 
 29.4   13.02, subdivision 9:  financial information, including, but not 
 29.5   limited to, credit reports, financial statements, tax returns 
 29.6   and net worth calculations received or prepared by the 
 29.7   commissioner. 
 29.8      Subd. 13.  [ESTABLISHMENT OF ACCOUNT.] The public 
 29.9   facilities authority shall establish an account called the 
 29.10  agriculture best management practices revolving fund to provide 
 29.11  loans and other forms of financial assistance authorized under 
 29.12  section 446A.07.  The fund must be credited with repayments. 
 29.13     ~~Subd. 14.  [FEES AND INTEREST.] (a) Origination fees~~ 
 29.14  ~~charged directly to borrowers by local lenders upon executing a~~ 
 29.15  ~~loan shall not exceed one-half of one percent of the loan~~ 
 29.16  ~~amount.  Interest assessed to loan repayments by the local~~ 
 29.17  ~~lender must not exceed three percent.~~  
 29.18     ~~(b) The local lender shall create a principal account to~~ 
 29.19  ~~which the principal portions of individual borrower loan~~ 
 29.20  ~~repayments will be credited.~~ 
 29.21     ~~(c) Any interest earned on outstanding loan balances not~~ 
 29.22  ~~separated as repayments are received and before the principal~~ 
 29.23  ~~amounts are deposited in the principal account shall be added to~~ 
 29.24  ~~the principal portion of the loan to the local lender and must~~ 
 29.25  ~~be paid to the commissioner when the principal is due under the~~ 
 29.26  ~~lender agreement.~~ 
 29.27     ~~(d) Any interest earned on the principal account must be~~ 
 29.28  ~~added to the principal portion of the loan to the local lender~~ 
 29.29  ~~and must be paid to the commissioner when the principal is due~~ 
 29.30  ~~under the lender agreement.~~ 
 29.31     Subd. 15.  [COMMISSIONER'S REPORT.] (a) The commissioner 
 29.32  ~~and chair~~ shall prepare and submit a report to the house of 
 29.33  representatives and senate committees with jurisdiction over the 
 29.34  environment, natural resources, and agriculture by October 15 of 
 29.35  each odd-numbered year. 
 29.36     (b) The report shall include, but need not be limited to, 
 30.1   matters such as loan allocations and uses, the extent to which 
 30.2   the financial assistance is helping implement local water and 
 30.3   other environmental planning priorities, the integration or 
 30.4   coordination that has occurred with related programs, and other 
 30.5   matters deemed pertinent to the implementation of the program. 
 30.6      Subd. 16.  [LIENS AGAINST PROPERTY.] (a) Unless a county 
 30.7   determines otherwise, at the time of the disbursement of funds 
 30.8   on a loan to a borrower under this section, the principal 
 30.9   balance due plus accrued interest on the principal balance as 
 30.10  provided by this section becomes a lien in favor of the county 
 30.11  making the loan upon the real property on which the project is 
 30.12  located.  The lien must be first and prior to all other liens 
 30.13  against the property, including state tax liens, whether filed 
 30.14  before or after the placing of a lien under this subdivision, 
 30.15  except liens for special assessments by the county under 
 30.16  applicable special assessments laws, which liens shall be of 
 30.17  equal rank with the lien created under this subdivision.  A lien 
 30.18  in favor of the county shall be first and prior as provided in 
 30.19  this subdivision only if the county making the loan gives 
 30.20  written notice of the intent to make the loan under this 
 30.21  subdivision to all other persons having a recorded interest in 
 30.22  the real property subject to the lien, no less than 30 days 
 30.23  prior to the disbursement of the funds, and receives an 
 30.24  agreement to subordinate superior lien positions held by all 
 30.25  other lenders having a recorded interest in the real property 
 30.26  subject to the lien.  This lien and subordination agreement must 
 30.27  be recorded against the real estate in the county recorder's 
 30.28  office or filed with the registrar of titles for the county or 
 30.29  counties in which the property is located.  The county may bill 
 30.30  amounts due on the loan on the tax statement for the property.  
 30.31  Enforcement of the lien created by this subdivision shall, at 
 30.32  the county's option, be in the manner set forth in chapter 580 
 30.33  or 581.  When the amount due plus interest has been paid, the 
 30.34  county shall file a satisfaction of the lien created under this 
 30.35  subdivision.  
 30.36     (b) A county may also secure amounts due on a loan under 
 31.1   this section by taking a purchase money security interest in 
 31.2   equipment in accordance with chapter 336, article 9, and may 
 31.3   enforce the purchase money security interest in accordance with 
 31.4   chapters 336, article 9, and 565. 
 31.5      Subd. 17.  [REFERENDUM EXEMPTION.] For the purpose of 
 31.6   obtaining a loan from the commissioner, a local government unit 
 31.7   may provide to the commissioner its general obligation note.  
 31.8   All obligations incurred by a local government unit in obtaining 
 31.9   a loan from the commissioner must be in accordance with chapter 
 31.10  475, except that so long as the obligations are issued to 
 31.11  evidence a loan from the commissioner to the local government 
 31.12  unit, an election is not required to authorize the obligations 
 31.13  issued, and the amount of the obligations shall not be included 
 31.14  in determining the net indebtedness of the local government unit 
 31.15  under the provisions of any law or chapter limiting the 
 31.16  indebtedness. 
 31.17     Sec. 11.  [17.131] [FEEDLOT PERMIT SPECIALIST PROGRAM.] 
 31.18     Subdivision 1.  [PURPOSE.] The feedlot permit specialist 
 31.19  program is primarily, but not exclusively, intended to assist 
 31.20  operators proposing to permit feedlots with capacities of under 
 31.21  500 animal units.  
 31.22     Subd. 2.  [SPECIALISTS; DUTIES, ASSIGNMENT.] (a) The 
 31.23  commissioner shall employ or contract for feedlot permit 
 31.24  specialists to support operators of small and medium sized farms 
 31.25  that wish to develop or expand animal agriculture operations in 
 31.26  the state.  The support does not provide legal fees or court 
 31.27  costs but must include review of draft business plans, 
 31.28  assistance with preparing and submitting applications for any 
 31.29  necessary local or state permits, technical support before and 
 31.30  during any public hearings, and advocacy during any permit 
 31.31  appeals. 
 31.32     (b) Farm operators may apply to the commissioner for the 
 31.33  services of a feedlot permit specialist.  The application must 
 31.34  include reasonable details on the existing farm operation and a 
 31.35  business plan related to the development or expansion of the 
 31.36  proposed livestock operation.  From the information submitted, 
 32.1   the commissioner shall determine the applicant's eligibility and 
 32.2   whether or not to grant the request for a specialist.  An 
 32.3   applicant whose request is declined may reapply after six months.
 32.4      (c) If the request for the services of a specialist is 
 32.5   granted, the commissioner shall appoint a specialist qualified 
 32.6   to assist the applicant based on the type of livestock proposed 
 32.7   in the plan, the geographic area of the state, and other factors 
 32.8   determined by the commissioner. 
 32.9      (d) A specialist appointed by the commissioner shall have 
 32.10  primary responsibility for assisting the applicant throughout a 
 32.11  given permit process.  The specialist may work with other 
 32.12  specialists to provide optimal service to the applicant. 
 32.13     Sec. 12.  Minnesota Statutes 2000, section 17.85, is 
 32.14  amended to read: 
 32.15     17.85 [LABORATORY SERVICES ACCOUNT.] 
 32.16     A laboratory services account is established in the 
 32.17  agricultural fund.  Payments for laboratory services performed 
 32.18  by the laboratory services division of the department of 
 32.19  agriculture must be deposited in the agricultural fund and 
 32.20  credited to the laboratory services account.  Money in the 
 32.21  account, including interest earned on the account, is annually 
 32.22  appropriated to the commissioner of agriculture to administer 
 32.23  the programs of the laboratory services division.  The 
 32.24  agriculture laboratory exists to provide analytical and 
 32.25  technical services in support of agency programs that protect 
 32.26  and enhance the state's agriculture, environment, and food chain.
 32.27  The laboratory may provide analytical and technical services for 
 32.28  a fee to any public or private entity as requested or required 
 32.29  to meet department objectives in support of Minnesota 
 32.30  agriculture and a national food safety system.  
 32.31     Sec. 13.  Minnesota Statutes 2000, section 18B.065, 
 32.32  subdivision 5, is amended to read: 
 32.33     Subd. 5.  [WASTE PESTICIDE COLLECTION ACCOUNT; 
 32.34  APPROPRIATION.] A waste pesticide account is established in 
 32.35  the ~~state treasury~~ agricultural fund.  Assessments collected 
 32.36  under subdivision 2 shall be deposited in the state treasury and 
 33.1   credited to the waste pesticide account.  Money in the account 
 33.2   is appropriated to the commissioner to pay for costs incurred to 
 33.3   implement the waste pesticide collection program. 
 33.4      Sec. 14.  Minnesota Statutes 2000, section 18C.425, 
 33.5   subdivision 2, is amended to read: 
 33.6      Subd. 2.  [SPECIALTY FERTILIZER REGISTRATION.] An 
 33.7   application for registration of a specialty fertilizer must be 
 33.8   accompanied by a nonrefundable application fee of ~~$100~~ $150 for 
 33.9   each brand and grade to be sold or distributed as provided in 
 33.10  section 18C.411.  
 33.11     Sec. 15.  Minnesota Statutes 2000, section 18E.04, 
 33.12  subdivision 2, is amended to read: 
 33.13     Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
 33.14  request by an eligible person, the board may pay the eligible 
 33.15  person for the reasonable and necessary cash disbursements for 
 33.16  corrective action costs incurred by the eligible person as 
 33.17  provided under subdivision 4 if the board determines: 
 33.18     (1) the eligible person pays the first $1,000 of the 
 33.19  corrective action costs; 
 33.20     (2) the eligible person provides the board with a sworn 
 33.21  affidavit and other convincing evidence that the eligible person 
 33.22  is unable to pay additional corrective action costs; 
 33.23     (3) the eligible person continues to assume responsibility 
 33.24  for carrying out the requirements of corrective action orders 
 33.25  issued to the eligible person or that are in effect; ~~and~~ 
 33.26     (4) the incident was reported as required in chapters 18B, 
 33.27  18C, and 18D; and 
 33.28     (5) the eligible person submits the application for 
 33.29  reimbursement of eligible corrective action costs to the 
 33.30  department: 
 33.31     (i) within three years of incurring the costs or approval 
 33.32  of a corrective action report, whichever is later; or 
 33.33     (ii) by June 1, 2004, in the case of costs incurred before 
 33.34  the effective date of this clause.  
 33.35     (b) An eligible person is not eligible for payment or 
 33.36  reimbursement and must refund amounts paid or reimbursed by the 
 34.1   board if false statements or misrepresentations are made in the 
 34.2   affidavit or other evidence submitted to the commissioner to 
 34.3   show an inability to pay corrective action costs.  
 34.4      (c) The board may pay the eligible person and one or more 
 34.5   designees by multiparty check. 
 34.6      Sec. 16.  Minnesota Statutes 2000, section 18E.04, 
 34.7   subdivision 4, is amended to read: 
 34.8      Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
 34.9   a person that is eligible for reimbursement or payment under 
 34.10  subdivisions 1, 2, and 3 from the agricultural chemical response 
 34.11  and reimbursement account for:  
 34.12     (1) 90 percent of the total reasonable and necessary 
 34.13  corrective action costs greater than $1,000 and less than or 
 34.14  equal to ~~$100,000~~ $200,000; 
 34.15     (2) ~~100 percent of the total reasonable and necessary~~ 
 34.16  ~~corrective action costs greater than $100,000 but less than or~~ 
 34.17  ~~equal to $200,000;~~ 
 34.18     ~~(3)~~ 80 percent of the total reasonable and necessary 
 34.19  corrective action costs greater than $200,000 but less than or 
 34.20  equal to $300,000; and 
 34.21     ~~(4)~~ (3) 60 percent of the total reasonable and necessary 
 34.22  corrective action costs greater than $300,000 but less than or 
 34.23  equal to $350,000.  
 34.24     (b) A reimbursement or payment may not be made until the 
 34.25  board has determined that the costs are reasonable and are for a 
 34.26  reimbursement of the costs that were actually incurred. 
 34.27     (c) The board may make periodic payments or reimbursements 
 34.28  as corrective action costs are incurred upon receipt of invoices 
 34.29  for the corrective action costs. 
 34.30     (d) Money in the agricultural chemical response and 
 34.31  reimbursement account is appropriated to the commissioner to 
 34.32  make payments and reimbursements directed by the board under 
 34.33  this subdivision.  
 34.34     (e) The board may not make reimbursement greater than the 
 34.35  maximum allowed under paragraph (a) for all incidents on a 
 34.36  single site which: 
 35.1      (1) were not reported at the time of release but were 
 35.2   discovered and reported after July 1, 1989; and 
 35.3      (2) may have occurred prior to July 1, 1989, as determined 
 35.4   by the commissioner. 
 35.5      (f) The board may only reimburse an eligible person for 
 35.6   separate incidents within a single site if the commissioner 
 35.7   determines that each incident is completely separate and 
 35.8   distinct in respect of location within the single site or time 
 35.9   of occurrence. 
 35.10     Sec. 17.  Minnesota Statutes 2000, section 18E.04, 
 35.11  subdivision 5, is amended to read: 
 35.12     Subd. 5.  [REIMBURSEMENT OR PAYMENT DECISIONS.] (a) The 
 35.13  board may issue a letter of intent on whether a person is 
 35.14  eligible for payment or reimbursement.  The letter is not 
 35.15  binding on the board. 
 35.16     (b) The board must issue an order granting or denying a 
 35.17  request within 30 days following the board meeting at which the 
 35.18  board votes to grant or deny a request for reimbursement or for 
 35.19  payment under subdivision 1, 2, or 3. 
 35.20     (c) After an initial request is made for reimbursement, 
 35.21  notwithstanding subdivisions 1 to 4, the board may deny 
 35.22  additional requests for reimbursement. 
 35.23     (d)(1) An eligible person adversely affected by the board's 
 35.24  disapproval of a reimbursement or payment application under 
 35.25  paragraph (b) or a partial reimbursement under subdivision 3 
 35.26  may, within 60 days of receipt of the board's order, request a 
 35.27  hearing of determination before the board.  A request for a 
 35.28  hearing must be made in writing and specify the grounds for the 
 35.29  request.  
 35.30     (2) Within 30 days of the receipt of a request for a 
 35.31  hearing under clause (1), the eligible person must be notified 
 35.32  either as to the date of the hearing for determination or of the 
 35.33  denial of the request for a hearing.  Hearings must be scheduled 
 35.34  immediately following the next regularly scheduled board meeting 
 35.35  as determined by the notification letter.  
 35.36     (3) If a dispute related to the disapproval of a 
 36.1   reimbursement is not resolved after a hearing under clause (2), 
 36.2   or if a request is denied, the eligible person may appeal the 
 36.3   decision as a contested case hearing under chapter 14.  A 
 36.4   request for a contested case hearing must be submitted to the 
 36.5   board in writing within 30 days of the date of the hearing or 
 36.6   within 30 days of the receipt of notification of denial of the 
 36.7   hearing request under clause (2).  
 36.8      Sec. 18.  Minnesota Statutes 2000, section 21.85, 
 36.9   subdivision 12, is amended to read: 
 36.10     Subd. 12.  [SERVICE TESTING AND IDENTIFICATION.] The 
 36.11  commissioner shall provide for purity and germination tests of 
 36.12  seeds and identification of seeds and plants for farmers, 
 36.13  dealers, and others, and ~~may~~ establish ~~and collect fees for~~ 
 36.14  ~~testing and identification~~ schedules to recover the cost of 
 36.15  services provided.  Money collected must be deposited in the 
 36.16  laboratory services account in the agricultural fund.  
 36.17     Sec. 19.  Minnesota Statutes 2000, section 27.041, 
 36.18  subdivision 2, is amended to read: 
 36.19     Subd. 2.  [LICENSES; APPROPRIATION OF FEES AND PENALTIES.] 
 36.20  (a) The license, or a certified copy of the license, must be 
 36.21  kept posted in the office of the licensee at each place within 
 36.22  the state where the licensee transacts business.  A wholesale 
 36.23  produce dealer may not appoint, delegate, or authorize a person, 
 36.24  firm, or company to purchase produce unless a certified copy, 
 36.25  identification card, or truck decal has been issued at the 
 36.26  request of the wholesale produce dealer to that person, firm, or 
 36.27  company acting as the buyer or agent.  
 36.28     (b) A license expires June 30 following its issuance and 
 36.29  must be renewed July 1 of each year.  
 36.30     (c) A license issued under this subdivision is 
 36.31  automatically void upon the termination of the surety bond 
 36.32  covering the licensed operation.  
 36.33     (d) The fee for each license must include a ~~$50~~ $75 
 36.34  registration fee and an additional fee of ~~.025~~ .045 percent of 
 36.35  the total annual dollar amount of produce purchased the previous 
 36.36  year from sellers within the state of Minnesota subject to this 
 37.1   chapter.  Fees may not exceed ~~$1,500~~ $2,000 per license.  In 
 37.2   addition, a fee of $20 shall be charged for each certified copy 
 37.3   of a license, $5 for each license identification card, and $10 
 37.4   for each license identification truck decal.  
 37.5      (e) A penalty amounting to ten percent of the fees due may 
 37.6   be imposed by the commissioner for each month for which the fees 
 37.7   are delinquent.  
 37.8      (f) A licensee who sells, disposes of, or discontinues the 
 37.9   licensee's business during the lifetime of a license shall, at 
 37.10  the time the action is taken, notify the commissioner in 
 37.11  writing, and upon demand produce before the commissioner a full 
 37.12  statement of all assets and liabilities as of the date of 
 37.13  transfer or discontinuance of the business.  
 37.14     (g) A wholesale produce dealers license account is created 
 37.15  in the agricultural fund.  All fees and penalties collected 
 37.16  under this subdivision must be deposited in the wholesale 
 37.17  produce dealers license account.  Money in the account is 
 37.18  appropriated to the commissioner for operation of the wholesale 
 37.19  produce dealers program.  
 37.20     Sec. 20.  Minnesota Statutes 2000, section 28A.04, 
 37.21  subdivision 1, is amended to read: 
 37.22     Subdivision 1.  [APPLICATION; DATE OF ISSUANCE.] (a) No 
 37.23  person shall engage in the business of manufacturing, 
 37.24  processing, selling, handling, or storing food without having 
 37.25  first obtained from the commissioner a license for doing such 
 37.26  business.  Applications for such license shall be made to the 
 37.27  commissioner in such manner and time as required and upon such 
 37.28  forms as provided by the commissioner and shall contain the name 
 37.29  and address of the applicant, address or description of each 
 37.30  place of business, and the nature of the business to be 
 37.31  conducted at each place, and such other pertinent information as 
 37.32  the commissioner may require. 
 37.33     (b) A retail or wholesale food handler license shall be 
 37.34  issued for the period July 1 to June 30 following and shall be 
 37.35  renewed thereafter by the licensee on or before July 1 each 
 37.36  year, except that licenses for all mobile food concession units 
 38.1   and retail mobile units shall be issued for the period April 1 
 38.2   to March 31, and shall be renewed thereafter by the licensee on 
 38.3   or before April 1 each year.  A license for a food broker or for 
 38.4   a food processor or manufacturer shall be issued for the period 
 38.5   January 1 to December 31 following and shall be renewed 
 38.6   thereafter by the licensee on or before January 1 of each year, 
 38.7   except that a license for a wholesale food processor or 
 38.8   manufacturer operating only at the state fair shall be issued 
 38.9   for the period July 1 to June 30 following and shall be renewed 
 38.10  thereafter by the licensee on or before July 1 of each year.  A 
 38.11  penalty for a late renewal shall be assessed in accordance with 
 38.12  section 28A.08. 
 38.13     (c) A person applying for a new license up to 14 calendar 
 38.14  days before the effective date of the new license period under 
 38.15  paragraph (b) must be issued a license for the 14 days and the 
 38.16  next license year as a single license and pay a single license 
 38.17  fee as if the 14 days were part of the upcoming license period. 
 38.18     Sec. 21.  Minnesota Statutes 2000, section 28A.08, 
 38.19  subdivision 3, is amended to read: 
 38.20     Subd. 3.  [FEES EFFECTIVE JULY 1, 1999.] 
 38.21                                                    Penalties 
 38.22  Type of food handler                    License    Late     No
 38.23                                          Fee      Renewal  License
 38.24                                          Effective 
 38.25                                          July 1,
 38.26                                          1999
 38.27  1.   Retail food handler
 38.28       (a) Having gross sales of only
 38.29       prepackaged nonperishable food
 38.30       of less than $15,000 for 
 38.31       the immediately previous 
 38.32       license or fiscal year and 
 38.33       filing a statement with the 
 38.34       commissioner                       $ 48     $ 16     $ 27
 38.35       (b) Having under $15,000 gross
 38.36       sales including food preparation 
 39.1        or having $15,000 to $50,000 
 39.2        gross sales for the immediately 
 39.3        previous license or fiscal year    $ 65     $ 16     $ 27
 39.4        (c) Having $50,000 to $250,000 
 39.5        gross sales for the immediately 
 39.6        previous license or fiscal year    $126     $ 37     $ 80 
 39.7        (d) Having $250,000 to 
 39.8        $1,000,000 gross sales for the 
 39.9        immediately previous license or 
 39.10       fiscal year                        $216     $ 54     $107
 39.11       (e) Having $1,000,000 to 
 39.12       $5,000,000 gross sales for the 
 39.13       immediately previous license or 
 39.14       fiscal year                        $601     $107     $187
 39.15       (f) Having $5,000,000 to
 39.16       $10,000,000 gross sales for the
 39.17       immediately previous license or
 39.18       fiscal year                        $842     $161     $321
 39.19       (g) Having over $10,000,000
 39.20       gross sales for the immediately
 39.21       previous license or fiscal year    $962     $214     $375
 39.22  2.   Wholesale food handler
 39.23       (a) Having gross sales or
 39.24       service of less than $25,000
 39.25       for the immediately previous 
 39.26       license or fiscal year             $ 54     $ 16     $ 16
 39.27       (b) Having $25,000 to
 39.28       $250,000 gross sales or
 39.29       service for the immediately 
 39.30       previous license or fiscal year    $241     $ 54     $107
 39.31       (c) Having $250,000 to 
 39.32       $1,000,000 gross sales or
 39.33       service from a mobile unit
 39.34       without a separate food facility
 39.35       for the immediately previous
 39.36       license or fiscal year             $361     $ 80     $161
 40.1        (d) Having $250,000 to 
 40.2        $1,000,000 gross sales or
 40.3        service not covered under 
 40.4        paragraph (c) for the immediately 
 40.5        previous license or fiscal year    $480     $107     $214
 40.6        (e) Having $1,000,000 to
 40.7        $5,000,000 gross sales or 
 40.8        service for the immediately 
 40.9        previous license or fiscal year    $601     $134     $268
 40.10       (f) Having over $5,000,000 gross
 40.11       sales for the immediately 
 40.12       previous license or fiscal year    $692     $161     $321
 40.13  3.   Food broker                        $120     $ 32     $ 54
 40.14  4.   Wholesale food processor
 40.15       or manufacturer 
 40.16       (a) Having gross sales of less 
 40.17       than $125,000 for the 
 40.18       immediately previous license 
 40.19       or fiscal year                     $161     $ 54     $107
 40.20       (b) Having $125,000 to $250,000
 40.21       gross sales for the immediately 
 40.22       previous license or fiscal year    $332     $ 80     $161
 40.23       (c) Having $250,001 to $1,000,000
 40.24       gross sales for the immediately 
 40.25       previous license or fiscal year    $480     $107     $214
 40.26       (d) Having $1,000,001 to
 40.27       5,000,000 gross sales for the
 40.28       immediately previous license or
 40.29       fiscal year                        $601     $134     $268
 40.30       (e) Having $5,000,001 to 
 40.31       $10,000,000 gross sales for 
 40.32       the immediately previous 
 40.33       license or fiscal year             $692     $161     $321 
 40.34       (f) Having over $10,000,000 
 40.35       gross sales for the immediately 
 40.36       previous license or fiscal year    $963     $214     $375
 41.1   5.   Wholesale food processor of
 41.2        meat or poultry products
 41.3        under supervision of the
 41.4        U. S. Department of Agriculture 
 41.5        (a) Having gross sales of less 
 41.6        than $125,000 for the 
 41.7        immediately previous license 
 41.8        or fiscal year                     $107     $ 27     $ 54
 41.9        (b) Having $125,000 to 
 41.10       $250,000 gross sales for the
 41.11       immediately previous license
 41.12       or fiscal year                     $181     $ 54     $ 80
 41.13       (c) Having $250,001 to
 41.14       $1,000,000 gross sales for the
 41.15       immediately previous license
 41.16       or fiscal year                     $271     $ 80     $134
 41.17       (d) Having $1,000,001 to
 41.18       $5,000,000 gross sales 
 41.19       for the immediately previous 
 41.20       license or fiscal year             $332     $ 80     $161
 41.21       (e) Having $5,000,001 to 
 41.22       $10,000,000 gross sales for 
 41.23       the immediately previous 
 41.24       license or fiscal year             $392     $107     $187 
 41.25       (f) Having over $10,000,000 
 41.26       gross sales for the immediately 
 41.27       previous license or fiscal year    $535     $161     $268 
 41.28  6.   Wholesale food processor or
 41.29       manufacturer operating only at
 41.30       the state fair                     $125     $ 40     $ 50 
 41.31  7.   Wholesale food manufacturer
 41.32       having the permission of the
 41.33       commissioner to use the name
 41.34       Minnesota Farmstead cheese         ~~$ 30~~ $ 0 ~~$ 10~~ $ 0 $ 15
 41.35   8.  Nonresident frozen dairy 
 41.36       manufacturer                       $200     $ 50     $ 75
 42.1    9.  Wholesale food manufacturer
 42.2        processing less than 700,000
 42.3        pounds per year of raw milk        $ 30     $ 10     $ 15
 42.4    10. A milk marketing organization
 42.5        without facilities for 
 42.6        processing or manufacturing 
 42.7        that purchases milk from milk
 42.8        producers for delivery to a
 42.9        licensed wholesale food 
 42.10       processor or manufacturer          $ 50     $ 15     $ 25
 42.11     Sec. 22.  [28A.082] [FOOD HANDLER PLAN REVIEW.] 
 42.12     The fees for review under the Minnesota Food Code of food 
 42.13  handler facility floor plans are based upon the square footage 
 42.14  of the structure being newly constructed, remodeled, or 
 42.15  converted.  The fees are: 
 42.16            Square Footage          Review Fee
 42.17                0 -  4,999            $156.25
 42.18            5,000 - 24,999            $218.75
 42.19               25,000 plus            $343.75
 42.20     Plans, equipment specifications, material lists, and other 
 42.21  required information must be submitted on forms provided by the 
 42.22  department at least 30 days before commencement of construction, 
 42.23  remodeling, or conversion along with the required fee and review 
 42.24  application. 
 42.25     Fees collected under this section must be deposited into a 
 42.26  food handler plan review account in the agriculture fund.  
 42.27     Sec. 23.  Minnesota Statutes 2000, section 28A.085, 
 42.28  subdivision 4, is amended to read: 
 42.29     Subd. 4.  [~~DEPOSIT~~ FOOD HANDLER REINSPECTION ACCOUNT; 
 42.30  APPROPRIATION.] A food handler reinspection account is 
 42.31  established in the agricultural fund.  All reinspection fees and 
 42.32  assessments collected must be deposited in the state treasury 
 42.33  and are credited to ~~an account in the special revenue fund~~ the 
 42.34  food handler reinspection account.  Money in the account, 
 42.35  including interest accrued, is appropriated to the commissioner 
 42.36  to pay the expenses relating to reinspections conducted under 
 43.1   the chapters listed in subdivision 1. 
 43.2      Sec. 24.  Minnesota Statutes 2000, section 29.22, 
 43.3   subdivision 2, is amended to read: 
 43.4      Subd. 2.  [FEE.] In addition to the annual food handler's 
 43.5   license, required under section 28A.04, there is an annual 
 43.6   inspection fee applicable to every person who engages in the 
 43.7   business of buying for resale, selling, or trading in eggs 
 43.8   except a retail grocer who sells eggs previously candled and 
 43.9   graded.  The fee must be computed on the basis of the number of 
 43.10  cases of shell eggs handled at each place of business during the 
 43.11  highest volume month of each licensing year.  If a given lot of 
 43.12  eggs is moved from one location of business to a second location 
 43.13  of business and the food handler's license is held by the same 
 43.14  person at both locations, the given lot of eggs must be counted 
 43.15  in determining the volume of business on which the inspection 
 43.16  fee is based at the first location of business but must not 
 43.17  enter into the computation of volume of business for the second 
 43.18  location.  For the purpose of determining fees, "case" means one 
 43.19  of 30 dozen capacity.  The schedule of fees is as follows: 
 43.20   
 43.21  HIGHEST VOLUME OF CASES EACH                 FEE    
 43.22  LICENSING YEAR     
 43.23     1 -     50                               ~~$ 10~~ $ 12.50  
 43.24    51 -    100                               ~~$ 25~~ $ 31.25 
 43.25   101 -   1000                               ~~$ 50~~ $ 62.50 
 43.26  1001 -   2000                               ~~$ 75~~ $ 93.75 
 43.27  2001 -   4000                               ~~$100~~ $125.00 
 43.28  4001 -   6000                               ~~$125~~ $156.25 
 43.29  6001 -   8000                               ~~$150~~ $187.50 
 43.30  8001 - 10,000                               ~~$200~~ $250.00 
 43.31    OVER 10,000                               ~~$250~~ $312.00 
 43.32     Each person subject to the inspection fee in this section 
 43.33  shall, under the direction of the commissioner, keep records 
 43.34  necessary to accurately determine the volume of shell eggs on 
 43.35  which the inspection fee is due and shall prepare annually a 
 43.36  written report of the volume upon forms supplied by the 
 44.1   commissioner.  This report, together with the required 
 44.2   inspection fee, must be filed with the department on or before 
 44.3   the last day of May of each year.  
 44.4      Sec. 25.  Minnesota Statutes 2000, section 31.11, is 
 44.5   amended to read: 
 44.6      31.11 [RULES.] 
 44.7      Subdivision 1.  [FOOD LAWS.] For the purpose of preventing 
 44.8   fraud and deception in the manufacture, use, sale, and 
 44.9   transportation of food, or for the purpose of protecting and 
 44.10  preserving the public health, it shall also be the duty of the 
 44.11  commissioner to make and publish uniform rules, not inconsistent 
 44.12  with law, for carrying out and enforcing the provisions of laws 
 44.13  now or hereafter enacted relating to food; which rules shall be 
 44.14  made in the manner provided by law.  Until such rules are made 
 44.15  and published, the rules heretofore made by the commissioner 
 44.16  shall remain in full force and effect, except as otherwise 
 44.17  prescribed by law.  Any person who shall manufacture, use, sell, 
 44.18  transport, offer for use, sale or transportation, or have in 
 44.19  possession with intent to use, sell or transport, any article of 
 44.20  food contrary to the provisions of any such rule, or who shall 
 44.21  fail to comply with any such rule, shall be guilty of a 
 44.22  misdemeanor. 
 44.23     Subd. 2.  [PLAN REVIEW FEES.] The commissioner shall, by 
 44.24  rule, set plan review fees that will approximate the cost to the 
 44.25  department of its review of plans and specifications submitted 
 44.26  by food handlers. 
 44.27     Subd. 3.  [FOOD HANDLER PLAN REVIEW ACCOUNT; 
 44.28  APPROPRIATION.] ~~There is created in the state treasury an~~ 
 44.29  ~~account known as the food handler plan review fund.~~  A food 
 44.30  handler plan review account is created in the agricultural 
 44.31  fund.  Fees paid under ~~this~~ subdivision 2 must be deposited in 
 44.32  the food handler plan review ~~fund~~ account.  Money in the ~~food~~ 
 44.33  ~~handler plan review fund~~ account is ~~annually~~ appropriated to the 
 44.34  commissioner to pay the costs of the food handler plan and 
 44.35  specifications review program. 
 44.36     Sec. 26.  Minnesota Statutes 2000, section 31.39, is 
 45.1   amended to read: 
 45.2      31.39 [ASSESSMENTS; INSPECTION SERVICES; COMMERCIAL 
 45.3   CANNERIES ACCOUNT.] 
 45.4      Subdivision 1.  [ASSESSMENT.] The commissioner is hereby 
 45.5   authorized and directed to collect from each commercial cannery 
 45.6   an assessment for inspection and services furnished, and for 
 45.7   maintaining a bacteriological laboratory and employing such 
 45.8   bacteriologists and trained and qualified sanitarians as the 
 45.9   commissioner may deem necessary.  The assessment to be made on 
 45.10  each commercial cannery, for each and every packing season, 
 45.11  shall not exceed one-half cent per case on all foods packed, 
 45.12  canned, or preserved therein, nor shall the assessment in any 
 45.13  one calendar year to any one cannery exceed ~~$3,000~~ $6,000, and 
 45.14  the minimum assessment to any cannery in any one calendar year 
 45.15  shall be $100.  The commissioner shall provide appropriate 
 45.16  deductions from assessments for the net weight of meat, chicken, 
 45.17  or turkey ingredients which have been inspected and passed for 
 45.18  wholesomeness by the United States Department of Agriculture.  
 45.19  The commissioner may, when the commissioner deems it advisable, 
 45.20  graduate and reduce the assessment to such sum as is required to 
 45.21  furnish the inspection and laboratory services rendered.  The 
 45.22  assessment ~~made and the license fees, penalties, and other sums~~ 
 45.23  ~~so collected shall be deposited in the state treasury, as other~~ 
 45.24  ~~departmental receipts are deposited, but shall constitute a~~ 
 45.25  ~~separate account to be known as the commercial canneries~~ 
 45.26  ~~inspection account, which is hereby created, and together with~~ 
 45.27  ~~moneys now remaining in said account, set aside, and~~ 
 45.28  ~~appropriated as a revolving fund,~~ is due and payable not later 
 45.29  than December 31 of each year, and if not paid by the subsequent 
 45.30  February 15, the amount must bear interest from December 31 
 45.31  until paid at the rate of seven percent per annum and a penalty 
 45.32  of ten percent of the amount. 
 45.33     Subd. 2.  [COMMERCIAL CANNERIES INSPECTION ACCOUNT; 
 45.34  APPROPRIATION.] A commercial canneries inspection account is 
 45.35  created in the agricultural fund.  Assessments collected under 
 45.36  subdivision 1 must be deposited in the commercial canneries 
 46.1   inspection account.  Money in the account is appropriated to the 
 46.2   commissioner to meet the expense of special inspection, 
 46.3   laboratory and other services rendered, as provided in sections 
 46.4   31.31 to 31.392.  The amount of such assessment shall be due and 
 46.5   payable on or before December 31, of each year, and if not paid 
 46.6   on or before February 15 following, shall bear interest after 
 46.7   that date at the rate of seven percent per annum, and a penalty 
 46.8   of ten percent on the amount of the assessment shall also be 
 46.9   added and collected. 
 46.10     Sec. 27.  [32.105] [MILK PROCUREMENT FEE.] 
 46.11     A dairy plant operator, except the operator of a plant that 
 46.12  is required to pay a processor assessment under section 32.394, 
 46.13  subdivision 8d, within the state must pay a fee to the 
 46.14  commissioner by the 18th of each month equal to 0.70 cents per 
 46.15  hundredweight of milk purchased the previous month.  If a milk 
 46.16  producer within the state ships milk out of the state for sale, 
 46.17  the producer must pay the fee to the commissioner unless the 
 46.18  purchaser voluntarily pays the fee. 
 46.19     Dairy plant operators must submit monthly reports of milk 
 46.20  purchases and producers who ship milk out of state must submit 
 46.21  monthly reports as to milk shipped, along with the fee required 
 46.22  in this section, to the commissioner.  The commissioner may have 
 46.23  access to all relevant purchase or sale records as necessary to 
 46.24  verify compliance with this section and may require the producer 
 46.25  or purchaser to produce records as necessary to determine 
 46.26  compliance. 
 46.27     The fees collected under this section must be deposited in 
 46.28  the dairy services account in the agriculture fund.  
 46.29     Sec. 28.  Minnesota Statutes 2000, section 32.392, is 
 46.30  amended to read: 
 46.31     32.392 [APPROVAL OF DAIRY PLANTS.] 
 46.32     No person shall operate a dairy plant in this state unless 
 46.33  the dairy plant, and the equipment, water supply and plumbing 
 46.34  system connected therewith shall have been first approved by the 
 46.35  commissioner and a permit issued to operate the same.  At the 
 46.36  time of filing the application for a permit, the applicant shall 
 47.1   submit to the commissioner duplicate floor plans of such plant 
 47.2   which shall show the placement of equipment, the source of water 
 47.3   supply and method of distribution, and the location of the 
 47.4   plumbing system, including the disposal of wastes.  All new 
 47.5   construction or alteration of any existing dairy plants shall be 
 47.6   made only with the approval of the commissioner and duplicate 
 47.7   plans for such construction or alteration shall be submitted to 
 47.8   the commissioner for approval.  Any permit may be revoked by the 
 47.9   commissioner for due cause after the holder of the permit has 
 47.10  been given the opportunity for a hearing, in which case the 
 47.11  holder of the permit shall be notified in writing, at least 
 47.12  seven days prior to the date of such hearing, of the time and 
 47.13  place of such hearing.  
 47.14     The fee for approval services is $45 per hour of department 
 47.15  staff time spent in the approval process.  These fees must be 
 47.16  deposited in the dairy services account in the agriculture fund. 
 47.17     Sec. 29.  Minnesota Statutes 2000, section 32.394, 
 47.18  subdivision 8, is amended to read: 
 47.19     Subd. 8.  [GRADE A INSPECTION FEES.] (a) A processor or 
 47.20  marketing organization of milk, milk products, sheep milk, or 
 47.21  goat milk who wishes to market Grade A milk or use the Grade A 
 47.22  label must apply for Grade A inspection service from the 
 47.23  commissioner.  A pasteurization plant requesting Grade A 
 47.24  inspection service must hold a Grade A permit and pay an annual 
 47.25  inspection fee of no more than $500. 
 47.26     (b) For Grade A farm inspection service, the fee must be no 
 47.27  more than ~~$50~~ $25 per farm, paid annually by the processor or by 
 47.28  the marketing organization on behalf of its patrons.  ~~For a farm~~ 
 47.29  ~~requiring a reinspection in addition to the required biannual~~ 
 47.30  ~~inspections, an additional fee of no more than $25 per~~ 
 47.31  ~~reinspection must be paid by the processor or by the marketing~~ 
 47.32  ~~organization on behalf of its patrons.  The Grade A farm~~ 
 47.33  ~~inspection fee must not exceed the lesser of (1) 40 percent of~~ 
 47.34  ~~the department's actual average cost per farm inspection or~~ 
 47.35  ~~reinspection; or (2) the dollar limits set in this subdivision.~~  
 47.36  ~~No fee increase may be implemented until after the commissioner~~ 
 48.1   ~~has held three or more public hearings~~ No fee may be charged for 
 48.2   reinspection of a dairy farm. 
 48.3      Sec. 30.  Minnesota Statutes 2000, section 32.394, 
 48.4   subdivision 8a, is amended to read: 
 48.5      Subd. 8a.  [LABORATORY CERTIFICATION.] A laboratory, before 
 48.6   conducting a test the results of which are to be used in the 
 48.7   enforcement of requirements for distribution of milk, milk 
 48.8   products or goat milk under the Grade A label, must be certified 
 48.9   as meeting the requirements for laboratory approval that are 
 48.10  established by rule of the commissioner, and must receive a 
 48.11  permit from the commissioner.  The permit shall remain valid 
 48.12  without renewal unless suspended or revoked by the commissioner 
 48.13  for failure to comply with the requirements.  Satisfactory 
 48.14  analytical procedures and results for split samples, the nature, 
 48.15  number and frequency of which shall be in accordance with rules 
 48.16  established by the commissioner, shall be required of a 
 48.17  certified laboratory for retention of its certification and 
 48.18  permit. 
 48.19     An application for initial certification or biennial 
 48.20  recertification, or for recertification following suspension or 
 48.21  revocation of a permit shall be accompanied by ~~a~~ an annual fee 
 48.22  ~~of not less than $100 nor more than $350.  The fee for each set~~ 
 48.23  ~~of split samples shall be not less than $25 nor more than~~ 
 48.24  ~~$75.~~ based on the number of analysts approved and the number of 
 48.25  specific tests for which they are approved.  This fee must not 
 48.26  be less than $150 or more than $200 per analyst approved and not 
 48.27  less than $35 or more than $50 for each test approved.  The 
 48.28  commissioner may annually adjust assessments within the limits 
 48.29  established by this subdivision to meet the cost recovery of the 
 48.30  services required by this subdivision. 
 48.31     ~~A certified laboratory of record on June 5, 1975 shall be~~ 
 48.32  ~~issued a permit without having to pay the initial certification~~ 
 48.33  ~~fee.~~ 
 48.34     Sec. 31.  Minnesota Statutes 2000, section 32.394, 
 48.35  subdivision 8b, is amended to read: 
 48.36     Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] (a)  A 
 49.1   processor or marketing organization of milk, milk products, 
 49.2   sheep milk, or goat milk who wishes to market other than Grade A 
 49.3   milk must apply for a manufacturing grade farm certification 
 49.4   inspection from the commissioner.  A manufacturing plant that 
 49.5   pasteurizes milk or milk by-products must pay an annual fee 
 49.6   based on the number of pasteurization units.  This fee must not 
 49.7   exceed $140 per unit. 
 49.8      (b) The fee for farm certification inspection must not be 
 49.9   more than $25 per farm to be paid annually by the processor or 
 49.10  by the marketing organization on behalf of its patrons.  ~~For a~~ 
 49.11  ~~farm requiring more than the one inspection for certification, a~~ 
 49.12  ~~reinspection fee of no more than $25 must be paid by the~~ 
 49.13  ~~processor or by the marketing organization on behalf of its~~ 
 49.14  ~~patrons.  The fee must be set by the commissioner in an amount~~ 
 49.15  ~~necessary to cover 40 percent of the department's actual cost of~~ 
 49.16  ~~providing the annual inspection but must not exceed the limits~~ 
 49.17  ~~in this subdivision. No fee increase may be implemented until~~ 
 49.18  ~~after the commissioner has held three or more public hearings~~ No 
 49.19  fee may be charged for reinspection of a farm. 
 49.20     Sec. 32.  Minnesota Statutes 2000, section 32.394, 
 49.21  subdivision 8d, is amended to read: 
 49.22     Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
 49.23  pay to the commissioner a fee for fluid milk processed and milk 
 49.24  used in the manufacture of fluid milk products sold for retail 
 49.25  sale in Minnesota.  Beginning ~~May 1, 1993~~ July 1, 2001, the fee 
 49.26  is ~~six~~ seven cents per hundredweight.  ~~If the commissioner~~ 
 49.27  ~~determines that a different fee, not less than five cents and~~ 
 49.28  ~~not more than nine cents per hundredweight, when combined with~~ 
 49.29  ~~general fund appropriations and fees charged under sections~~ 
 49.30  ~~31.39 and 32.394, subdivision 8, is needed to provide adequate~~ 
 49.31  ~~funding for the Grades A and B inspection programs and the~~ 
 49.32  ~~administration and enforcement of Laws 1993, chapter 65, the~~ 
 49.33  ~~commissioner may, by rule, change the fee on processors within~~ 
 49.34  ~~the range provided within this subdivision.~~ 
 49.35     (b) Processors must report quantities of milk processed 
 49.36  under paragraph (a) on forms provided by the commissioner.  
 50.1   Processor fees must be paid monthly.  The commissioner may 
 50.2   require the production of records as necessary to determine 
 50.3   compliance with this subdivision. 
 50.4      (c) The commissioner may create within the department a 
 50.5   dairy consulting program to provide assistance to dairy 
 50.6   producers who are experiencing problems meeting the sanitation 
 50.7   and quality requirements of the dairy laws and rules. 
 50.8      The commissioner may use money appropriated from the dairy 
 50.9   services account created in subdivision 9 to pay for the program 
 50.10  authorized in this paragraph. 
 50.11     Sec. 33.  Minnesota Statutes 2000, section 32.394, 
 50.12  subdivision 8e, is amended to read: 
 50.13     Subd. 8e.  [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk 
 50.14  pick-up tankers, milk transports, and tankers used to transport 
 50.15  milk products must be inspected and obtain a permit issued by 
 50.16  the commissioner annually by July 1.  The owner or operator must 
 50.17  pay a $25 permit fee per tanker to the commissioner.  The 
 50.18  commissioner may appoint such persons as the commissioner deems 
 50.19  qualified to make inspections. 
 50.20     Sec. 34.  Minnesota Statutes 2000, section 34.07, is 
 50.21  amended to read: 
 50.22     34.07 [BEVERAGE INSPECTION ~~FUND~~ ACCOUNT; APPROPRIATION.] 
 50.23     A beverage inspection account is created in the 
 50.24  agricultural fund.  All fees and fines collected ~~hereunder by~~ 
 50.25  ~~the commissioner, together with all fines paid for the violation~~ 
 50.26  ~~of the provisions of sections 34.02 to 34.11, shall be paid into~~ 
 50.27  ~~the state treasury and credited to the beverage inspection fund,~~ 
 50.28  ~~hereby created.  The money so derived is hereby appropriated to~~ 
 50.29  ~~compensate for and meet the expense of inspection and~~ 
 50.30  ~~supervision, as provided for in sections 34.02 to 34.11. The~~ 
 50.31  ~~money so collected and appropriated shall be expended by the~~ 
 50.32  ~~commissioner for inspection, supervisions, publications, short~~ 
 50.33  ~~courses, and such other activities as in the commissioner's~~ 
 50.34  ~~judgment may be necessary, not inconsistent with the provisions~~ 
 50.35  ~~of sections 34.02 to 34.11~~ under this chapter must be credited 
 50.36  to the beverage inspection account.  Money in the account is 
 51.1   appropriated to the commissioner for inspection and supervision 
 51.2   under this chapter. 
 51.3      Sec. 35.  Minnesota Statutes 2000, section 38.02, 
 51.4   subdivision 1, is amended to read: 
 51.5      Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] 
 51.6   ~~(1)~~ (a) Money appropriated to aid county and district 
 51.7   agricultural societies and associations shall be distributed 
 51.8   among all county and district agricultural societies or 
 51.9   associations in the state pro rata, upon condition that each of 
 51.10  them has complied with the conditions specified in ~~clause~~ 
 51.11  ~~(2)~~ paragraph (b). 
 51.12     ~~(2)~~ (b) To be eligible to participate in ~~such~~ a 
 51.13  distribution under paragraph (a), ~~each such~~ an agricultural 
 51.14  society or association ~~(a) shall~~ must:  (1) have held an annual 
 51.15  fair for each of the three years last past, unless prevented 
 51.16  from doing so because of a calamity or an epidemic declared by 
 51.17  the board of health as defined in section 145A.02, subdivision 
 51.18  2, or the state commissioner of health to exist; ~~(b) shall~~ (2) 
 51.19  have an annual membership of 25 or more; ~~(c) shall~~ (3) have paid 
 51.20  out to exhibitors for premiums awarded at the last fair held a 
 51.21  sum not less than the amount to be received from the state; ~~(d)~~ 
 51.22  ~~shall~~ (4) have published and distributed not less than three 
 51.23  weeks before the opening day of the fair a premium list, listing 
 51.24  all items or articles on which premiums are offered and the 
 51.25  amounts of such premiums and shall have paid premiums pursuant 
 51.26  to the amount shown for each article or item to be exhibited; 
 51.27  provided that premiums for school exhibits may be advertised in 
 51.28  the published premium list by reference to a school premium list 
 51.29  prepared and circulated during the preceding school year; and 
 51.30  shall have collected all fees charged for entering an exhibit at 
 51.31  the time the entry was made and in accordance with schedule of 
 51.32  entry fees to be charged as published in the premium list; ~~(e)~~ 
 51.33  ~~shall~~ (5) have paid not more than one premium on each article or 
 51.34  item exhibited, excluding championship or sweepstake awards, and 
 51.35  excluding the payment of open class premium awards to 4H Club 
 51.36  exhibits which at this same fair had won a first prize award in 
 52.1   regular 4H Club competition; ~~(f) shall~~ and (6) have submitted 
 52.2   its records and annual report to the commissioner of agriculture 
 52.3   on a form provided by the commissioner of agriculture, on or 
 52.4   before the first day of November of the current year. 
 52.5      ~~(3)~~ (c) All payments authorized under the provisions of 
 52.6   this chapter shall be made only upon the presentation by the 
 52.7   commissioner of agriculture with the commissioner of finance of 
 52.8   a statement of premium allocations.  As used herein the term 
 52.9   premium shall mean the cash award paid to an exhibitor for the 
 52.10  merit of an exhibit of livestock, livestock products, grains, 
 52.11  fruits, flowers, vegetables, articles of domestic science, 
 52.12  handicrafts, hobbies, fine arts, and articles made by school 
 52.13  pupils, or the cash award paid to the merit winner of events 
 52.14  such as 4H Club or Future Farmer Contest, Youth Group Contests, 
 52.15  school spelling contests and school current events contests, the 
 52.16  award corresponding to the amount offered in the advertised 
 52.17  premium list referred to in schedule 2.  Payments of awards for 
 52.18  horse races, ball games, musical contests, talent contests, 
 52.19  parades, and for amusement features for which admission is 
 52.20  charged, are specifically excluded from consideration as 
 52.21  premiums within the meaning of that term as used herein.  
 52.22     (d) Upon receipt of the statement by the commissioner of 
 52.23  agriculture, it shall be the duty of the commissioner of finance 
 52.24  to draw a voucher in favor of the agricultural society or 
 52.25  association for the amount to which it is entitled under the 
 52.26  provisions of this chapter, which amount shall be computed as 
 52.27  follows:  On the first ~~$750~~ $1,000 premiums paid by each society 
 52.28  or association, such society or association shall receive 100 
 52.29  percent reimbursement; on the second ~~$750~~ $1,000 premiums paid, 
 52.30  80 percent; on the third ~~$750~~ $1,000 premiums paid, 60 percent; 
 52.31  and on any sum in excess of ~~$2,250~~ $3,000, 40 percent. 
 52.32     ~~(4)~~ (e) If the total amount of state aid to which the 
 52.33  agricultural societies and associations are entitled under the 
 52.34  provisions of this chapter exceeds the amount of the 
 52.35  appropriation therefor, the amounts to which the societies or 
 52.36  associations are entitled shall be prorated so that the total 
 53.1   payments by the state will not exceed the appropriation.  
 53.2      Sec. 36.  Minnesota Statutes 2000, section 41A.09, 
 53.3   subdivision 2a, is amended to read: 
 53.4      Subd. 2a.  [DEFINITIONS.] For the purposes of this 
 53.5   section and section 41A.10, the terms defined in this 
 53.6   subdivision have the meanings given them. 
 53.7      (a) "Ethanol" means fermentation ethyl alcohol derived from 
 53.8   agricultural products, including potatoes, cereal, grains, 
 53.9   cheese whey, and sugar beets; forest products; or other 
 53.10  renewable resources, including residue and waste generated from 
 53.11  the production, processing, and marketing of agricultural 
 53.12  products, forest products, and other renewable resources, that: 
 53.13     (1) meets all of the specifications in ASTM specification D 
 53.14  4806-88; and 
 53.15     (2) is denatured as specified in Code of Federal 
 53.16  Regulations, title 27, parts 20 and 21. 
 53.17     (b) "Wet alcohol" means agriculturally derived fermentation 
 53.18  ethyl alcohol having a purity of at least 50 percent but less 
 53.19  than 99 percent. 
 53.20     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 53.21  derived from agricultural products as described in paragraph 
 53.22  (a), but that does not meet ASTM specifications or is not 
 53.23  denatured and is shipped in bond for further processing. 
 53.24     (d) "Ethanol plant" means a plant at which ethanol, 
 53.25  anhydrous alcohol, or wet alcohol is produced. 
 53.26     Sec. 37.  [41A.10] [SECOND-GENERATION ETHANOL DEVELOPMENT 
 53.27  PROGRAM.] 
 53.28     Subdivision 1.  [DEVELOPMENT HISTORY, GOALS.] (a) The 
 53.29  legislature recognizes the success of the original Minnesota 
 53.30  ethanol development program, and its contribution to rural 
 53.31  economic development, cleaner air throughout the state, and 
 53.32  reduced dependence on imported fuels.  Several ethanol 
 53.33  production plants participating in the original producer payment 
 53.34  program are nearing the end of their ten-year period of 
 53.35  eligibility for payments.  It is the intent of the legislature 
 53.36  to support the second-generation ethanol development program 
 54.1   with the appropriations no longer needed to support facilities 
 54.2   developed under the original program. 
 54.3      (b) The goals of the second-generation ethanol development 
 54.4   program are to demonstrate efficient utilization of 
 54.5   nontraditional feedstocks for the production of ethanol in 
 54.6   association with the commercial-scale extraction of grain germ 
 54.7   from whole grains and to provide the benefits of ethanol 
 54.8   production facilities to geographic regions of the state where 
 54.9   plants do not currently exist. 
 54.10     Subd. 2.  [PREAPPROVAL BY COMMISSIONER.] To be eligible for 
 54.11  grants, loans, and producer payments under the second-generation 
 54.12  ethanol development program, a proposer must receive 
 54.13  preconstruction approval from the commissioner for a planned 
 54.14  second-generation ethanol plant and the associated germ 
 54.15  extraction facility.  The application for approval must be 
 54.16  submitted to the commissioner at least 90 days before 
 54.17  construction begins on the facilities.  The commissioner shall 
 54.18  deny or approve a properly completed application within 30 days 
 54.19  of receipt.  An approval, if granted, must include certification 
 54.20  by the commissioner of the maximum plant production for which 
 54.21  the ethanol producer credit may be paid, but not exceeding 
 54.22  15,000,000 gallons of ethanol per year.  An approval constitutes 
 54.23  commitment by the state to quarterly payments from the ethanol 
 54.24  producer payment program, subject to adequate appropriations, 
 54.25  and, if stated, may also constitute commitment to an ethanol 
 54.26  production facility loan under section 41B.044, a grant for a 
 54.27  grain germ extraction research project, or both. 
 54.28     Subd. 3.  [LOCATION OF FIRST TWO SECOND-GENERATION ETHANOL 
 54.29  PLANTS.] The first two second-generation ethanol plants approved 
 54.30  by the commissioner after the effective date of this act must be 
 54.31  located (1) in west central Minnesota and (2) in northwestern 
 54.32  Minnesota.  The plants must be located not less than one mile 
 54.33  outside the corporate limits of a statutory or home rule charter 
 54.34  city. 
 54.35     Subd. 4.  [PRODUCER PAYMENTS.] (a) An ethanol producer 
 54.36  approved for producer payments under subdivision 2 may apply to 
 55.1   the commissioner for cash payments for ethanol production within 
 55.2   30 days after the end of each calendar quarter.  The claim must 
 55.3   cover ethanol production during the preceding three months. 
 55.4      (b) The commissioner shall make payments from available 
 55.5   appropriations by 45 days after the close of each calendar 
 55.6   quarter.  The total quarterly payment to a producer under this 
 55.7   section may not exceed $750,000. 
 55.8      (c) Notwithstanding the quarterly payment limits of 
 55.9   paragraph (b), the commissioner shall make an additional payment 
 55.10  in the eighth quarter of each fiscal biennium to a 
 55.11  second-generation ethanol producer for the lesser of:  (1) 20 
 55.12  cents per gallon of production in the eighth quarter of the 
 55.13  biennium that is greater than 3,750,000 gallons; or (2) the 
 55.14  total amount of payments lost during the first seven quarters of 
 55.15  the biennium due to plant outages, repair, or major 
 55.16  maintenance.  Total payments to a second-generation ethanol 
 55.17  producer in a fiscal biennium, including any payment under this 
 55.18  paragraph, must not exceed the total amount the producer's 
 55.19  certified production eligibility.  
 55.20     (d) An ethanol producer is eligible for producer payments 
 55.21  under this section for production during 40 consecutive calendar 
 55.22  quarters. 
 55.23     (e) A second-generation ethanol producer payment account is 
 55.24  established in the agricultural fund.  Money in the account is 
 55.25  appropriated to the commissioner to make ethanol producer 
 55.26  payments for facilities that begin production after July 1, 2002.
 55.27     Subd. 5.  [GRAIN GERM EXTRACTION RESEARCH AND DEMONSTRATION 
 55.28  GRANTS.] The commissioner may provide a grant, from money 
 55.29  appropriated for this purpose, for a research and demonstration 
 55.30  project associated with a second-generation ethanol plant that 
 55.31  advances commercial-scale extraction of the germ component of 
 55.32  grains, including corn, wheat, and barley. 
 55.33     Sec. 38.  Minnesota Statutes 2000, section 103B.3369, 
 55.34  subdivision 5, is amended to read: 
 55.35     Subd. 5.  [FINANCIAL ASSISTANCE.] (a) The board may award 
 55.36  grants to watershed management organizations in the seven-county 
 56.1   metropolitan area or counties to carry out water resource 
 56.2   protection and management programs identified as priorities in 
 56.3   comprehensive local water plans.  Grants may be used to employ 
 56.4   persons and to obtain and use information necessary to: 
 56.5      (1) develop comprehensive local water plans under sections 
 56.6   103B.255 and 103B.311 that have not received state funding for 
 56.7   water resources planning as provided for in Laws 1987, chapter 
 56.8   404, section 30, subdivision 5, clause (a); 
 56.9      (2) revise comprehensive local water plans under section 
 56.10  103B.201; and 
 56.11     (3) implement comprehensive local water plans.  
 56.12  A base grant shall be awarded to a county that levies a water 
 56.13  implementation tax at a rate, which shall be determined by the 
 56.14  board.  The minimum amount of the water implementation tax shall 
 56.15  be a tax rate times the adjusted net tax capacity of the county 
 56.16  for the preceding year.  The rate shall be the rate, rounded to 
 56.17  the nearest .001 of a percent, that, when applied to the 
 56.18  adjusted net tax capacity for all counties, raises the amount of 
 56.19  $1,500,000.  The base grant will be in an amount equal to 
 56.20  $37,500 less the amount raised by that levy.  If the amount 
 56.21  necessary to implement the local water plan for the county is 
 56.22  less than $37,500, the amount of the base grant shall be the 
 56.23  amount that, when added to the levy amount, equals the amount 
 56.24  required to implement the plan.  For counties where the tax rate 
 56.25  generates an amount equal to or greater than $18,750, the base 
 56.26  grant shall be in an amount equal to $18,750. 
 56.27     (b) For a county that is approved to become a delegated 
 56.28  county for permitting of animal lots under section 116.07, 
 56.29  subdivision 7, the board may provide a grant under paragraph (a) 
 56.30  that constitutes retroactive reimbursement for feedlot 
 56.31  activities performed by the county from the date of approval by 
 56.32  the county board until the beginning of the next annual grant 
 56.33  funding cycle. 
 56.34     Sec. 39.  Minnesota Statutes 2000, section 116.07, 
 56.35  subdivision 7, is amended to read: 
 56.36     Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 57.1   LOT PERMITS.] Any Minnesota county board may, by resolution, 
 57.2   with approval of the pollution control agency, assume 
 57.3   responsibility for processing applications for permits required 
 57.4   by the pollution control agency under this section for livestock 
 57.5   feedlots, poultry lots, or other animal lots.  The 
 57.6   responsibility for permit application processing, if assumed by 
 57.7   a county, may be delegated by the county board to ~~any~~ an 
 57.8   appropriate county officer or employee, an appropriate officer 
 57.9   or employee of a contiguous county, an appropriate employee of 
 57.10  another governmental unit, or a qualified employee of an 
 57.11  institution of higher education.  
 57.12     (a) For the purposes of this subdivision, the term 
 57.13  "processing" includes: 
 57.14     (1) the distribution to applicants of forms provided by the 
 57.15  pollution control agency; 
 57.16     (2) the receipt and examination of completed application 
 57.17  forms, and the certification, in writing, to the pollution 
 57.18  control agency either that the animal lot facility for which a 
 57.19  permit is sought by an applicant will comply with applicable 
 57.20  rules and standards, or, if the facility will not comply, the 
 57.21  respects in which a variance would be required for the issuance 
 57.22  of a permit; and 
 57.23     (3) ~~rendering~~ in cooperation with the commissioner of 
 57.24  agriculture, providing to applicants, upon request~~,~~ and at no 
 57.25  cost if the applicant is proposing a feedlot with a capacity of 
 57.26  under 500 animal units, the services of a feedlot permit 
 57.27  specialist to provide assistance necessary for the proper and 
 57.28  timely completion of ~~an application~~ the permit process, 
 57.29  including assistance with local and state applications, public 
 57.30  hearings, and appeals. 
 57.31     (b) For the purposes of this subdivision, the term 
 57.32  "processing" may include, at the option of the county board, 
 57.33  issuing, denying, modifying, imposing conditions upon, or 
 57.34  revoking permits pursuant to the provisions of this section or 
 57.35  rules promulgated pursuant to it, subject to review, suspension, 
 57.36  and reversal by the pollution control agency.  The pollution 
 58.1   control agency shall, after written notification, have 15 days 
 58.2   to review, suspend, modify, or reverse the issuance of the 
 58.3   permit.  After this period, the action of the county board is 
 58.4   final, subject to appeal as provided in chapter 14.  For permit 
 58.5   applications filed after October 1, 2001, section 15.99 applies 
 58.6   to feedlot permits issued by the agency or a county pursuant to 
 58.7   this subdivision. 
 58.8      (c) For the purpose of administration of rules adopted 
 58.9   under this subdivision, the commissioner and the agency may 
 58.10  provide exceptions for cases where the owner of a feedlot has 
 58.11  specific written plans to close the feedlot within five years.  
 58.12  These exceptions include waiving requirements for major capital 
 58.13  improvements. 
 58.14     (d) For purposes of this subdivision, a discharge caused by 
 58.15  an extraordinary natural event such as a precipitation event of 
 58.16  greater magnitude than the 25-year, 24-hour event, tornado, or 
 58.17  flood in excess of the 100-year flood is not a "direct discharge 
 58.18  of pollutants." 
 58.19     (e) In adopting and enforcing rules under this subdivision, 
 58.20  the commissioner shall cooperate closely with other governmental 
 58.21  agencies. 
 58.22     (f) The pollution control agency shall work with the 
 58.23  Minnesota extension service, the department of agriculture, the 
 58.24  board of water and soil resources, producer groups, local units 
 58.25  of government, as well as with appropriate federal agencies such 
 58.26  as the Natural Resources Conservation Service and the Farm 
 58.27  Service Agency, to notify and educate producers of rules under 
 58.28  this subdivision at the time the rules are being developed and 
 58.29  adopted and at least every two years thereafter. 
 58.30     (g) The pollution control agency shall adopt rules 
 58.31  governing the issuance and denial of permits for livestock 
 58.32  feedlots, poultry lots or other animal lots pursuant to this 
 58.33  section.  A feedlot permit is not required for livestock 
 58.34  feedlots with more than ten but less than 50 animal units; 
 58.35  provided they are not in shoreland areas.  A livestock feedlot 
 58.36  permit does not become required solely because of a change in 
 59.1   the ownership of the buildings, grounds, or feedlot.  These 
 59.2   rules apply both to permits issued by counties and to permits 
 59.3   issued by the pollution control agency directly.  
 59.4      (h) The pollution control agency shall exercise supervising 
 59.5   authority with respect to the processing of animal lot permit 
 59.6   applications by a county. 
 59.7      (i) Any new rules or amendments to existing rules proposed 
 59.8   under the authority granted in this subdivision, or to implement 
 59.9   new fees on animal feedlots, must be submitted to the members of 
 59.10  legislative policy and finance committees with jurisdiction over 
 59.11  agriculture and the environment prior to final adoption.  The 
 59.12  rules must not become effective until 90 days after the proposed 
 59.13  rules are submitted to the members.  
 59.14     (j) Until new rules are adopted that provide for plans for 
 59.15  manure storage structures, any plans for a liquid manure storage 
 59.16  structure must be prepared or approved by a registered 
 59.17  professional engineer or a United States Department of 
 59.18  Agriculture, Natural Resources Conservation Service employee. 
 59.19     (k) A county may adopt by ordinance standards for animal 
 59.20  feedlots that are more stringent than standards in pollution 
 59.21  control agency rules. 
 59.22     (l) After January 1, 2001, a county that has not accepted 
 59.23  delegation of the feedlot permit program must hold a public 
 59.24  meeting prior to the agency issuing a feedlot permit for a 
 59.25  feedlot facility with 300 or more animal units, unless another 
 59.26  public meeting has been held with regard to the feedlot facility 
 59.27  to be permitted. 
 59.28     (m) After the proposed rules published in the State 
 59.29  Register, volume 24, number 25, are finally adopted, the agency 
 59.30  may not impose additional conditions as a part of a feedlot 
 59.31  permit, unless specifically required by law or agreed to by the 
 59.32  feedlot operator. 
 59.33     (n) For the purposes of feedlot permitting, a discharge 
 59.34  from land-applied manure or a manure stockpile that is managed 
 59.35  according to agency rule must not be subject to a fine for a 
 59.36  discharge violation.  
 60.1      (o) For the purposes of feedlot permitting, manure that is 
 60.2   land applied, or a manure stockpile that is managed according to 
 60.3   agency rule, must not be considered a discharge into waters of 
 60.4   the state, unless the discharge is to waters of the state, as 
 60.5   defined by section 103G.005, subdivision 17, except type 1 or 
 60.6   type 2 wetlands, as defined in section 103G.005, subdivision 
 60.7   17b, and does not meet discharge standards established for 
 60.8   feedlots under agency rule. 
 60.9      (p) Unless the upgrade is needed to correct an immediate 
 60.10  public health threat under section 145A.04, subdivision 8, the 
 60.11  agency may not require a feedlot operator: 
 60.12     (1) to spend more than $3,000 to upgrade an existing 
 60.13  feedlot with less than 300 animal units unless cost-share money 
 60.14  is available to the feedlot operator for 75 percent of the cost 
 60.15  of the upgrade; or 
 60.16     (2) to spend more than $10,000 to upgrade an existing 
 60.17  feedlot with between 300 and 500 animal units, unless cost-share 
 60.18  money is available to the feedlot operator for 75 percent of the 
 60.19  cost of the upgrade or $50,000, whichever is less. 
 60.20     Sec. 40.  Minnesota Statutes 2000, section 116O.09, 
 60.21  subdivision 1a, is amended to read: 
 60.22     Subd. 1a.  [BOARD OF DIRECTORS.] The board of directors of 
 60.23  the agricultural utilization research institute is comprised of: 
 60.24     (1) the chairs of the senate agriculture and rural 
 60.25  development committee and the house of representatives 
 60.26  agriculture and rural development committee; 
 60.27     (2) two representatives of statewide farm organizations; 
 60.28     (3) two representatives of agribusiness, one of whom is a 
 60.29  member of the Minnesota Technology, Inc. board representing 
 60.30  agribusiness; ~~and~~ 
 60.31     (4) three representatives of the commodity promotion 
 60.32  councils; and 
 60.33     (5) the commissioner of agriculture. 
 60.34     A member of the board of directors under clauses (1) to 
 60.35  ~~(4)~~ (5) may designate a permanent or temporary replacement 
 60.36  member representing the same constituency. 
 61.1      Sec. 41.  Minnesota Statutes 2000, section 169.871, 
 61.2   subdivision 1, is amended to read: 
 61.3      Subdivision 1.  [CIVIL LIABILITY.] (a) The owner or lessee 
 61.4   of a vehicle that is operated with a gross weight in excess of a 
 61.5   weight limit imposed under sections 169.825 and 169.832 to 
 61.6   169.851 and 169.87 or a shipper who ships or tenders goods for 
 61.7   shipment in a single truck or combination vehicle that exceeds a 
 61.8   weight limit imposed under sections 169.825 and 169.832 to 
 61.9   169.851 and 169.87 is liable for a civil penalty as follows: 
 61.10     (1) if the total gross excess weight is not more than 1,000 
 61.11  pounds, one cent per pound for each pound in excess of the legal 
 61.12  limit; 
 61.13     (2) if the total gross excess weight is more than 1,000 
 61.14  pounds but not more than 3,000 pounds, $10 plus five cents per 
 61.15  pound for each pound in excess of 1,000 pounds; 
 61.16     (3) if the total gross excess weight is more than 3,000 
 61.17  pounds but not more than 5,000 pounds, $110 plus ten cents per 
 61.18  pound for each pound in excess of 3,000 pounds; 
 61.19     (4) if the total gross excess weight is more than 5,000 
 61.20  pounds but not more than 7,000 pounds, $310 plus 15 cents per 
 61.21  pound for each pound in excess of 5,000 pounds; 
 61.22     (5) if the total gross excess weight is more than 7,000 
 61.23  pounds, $610 plus 20 cents per pound for each pound in excess of 
 61.24  7,000 pounds. 
 61.25     (b) Any penalty imposed upon a defendant under this 
 61.26  subdivision shall not exceed the penalty prescribed by this 
 61.27  subdivision.  Any fine paid by the defendant in a criminal 
 61.28  overweight action that arose from the same overweight violation 
 61.29  shall be applied toward payment of the civil penalty under this 
 61.30  subdivision.  A peace officer or department of public safety 
 61.31  employee described in section 299D.06 who cites a driver for a 
 61.32  violation of the weight limitations established by sections 
 61.33  169.81 to 169.851 and 169.87 shall give written notice to the 
 61.34  driver that the driver or another may also be liable for the 
 61.35  civil penalties provided herein in the same or separate 
 61.36  proceedings.  
 62.1      (c) A penalty imposed upon the owner or lessee of a vehicle 
 62.2   transporting milk from the point of production to the point of 
 62.3   first processing that is based on violations identified by the 
 62.4   use of shippers weight records under section 169.872, must not 
 62.5   exceed an aggregate of $10,000 for the 14 days immediately prior 
 62.6   to the imposition of the penalty.  
 62.7      Sec. 42.  Minnesota Statutes 2000, section 169.872, 
 62.8   subdivision 1, is amended to read: 
 62.9      Subdivision 1.  [RECORD KEEPING.] (a) A person who weighs 
 62.10  goods before or after unloading or a person who loads or unloads 
 62.11  goods on the basis of liquid volume measure shall keep a written 
 62.12  record of the origin, weight and composition of each shipment, 
 62.13  the date of loading or receipt, the name and address of the 
 62.14  shipper, the total number of axles on the vehicle or combination 
 62.15  of vehicles, and the registration number of the power unit or 
 62.16  some other means of identification by which the shipment was 
 62.17  transported.  Except as provided in paragraph (b), the record 
 62.18  shall be retained for 30 days and shall be open to inspection 
 62.19  and copying by a state law enforcement officer or motor 
 62.20  transport representative, except state conservation officers, 
 62.21  upon demand.  No search warrant is required to inspect or copy 
 62.22  the record.  
 62.23     (b) A person weighing a vehicle transporting milk from the 
 62.24  point of production to the point of first processing shall 
 62.25  retain the written record for 14 days. 
 62.26     (c) This subdivision does not apply to a person weighing 
 62.27  goods who is not involved in the shipping, receiving and 
 62.28  transporting of those goods, or to a person weighing raw and 
 62.29  unfinished farm products transported in a single unit vehicle 
 62.30  with not more than three axles or by a trailer towed by a farm 
 62.31  tractor when the transportation is the first haul of the product.
 62.32     Sec. 43.  Minnesota Statutes 2000, section 223.17, 
 62.33  subdivision 3, is amended to read: 
 62.34     Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
 62.35  commissioner shall set the fees for inspections under sections 
 62.36  223.15 to 223.22 at levels necessary to pay the expenses of 
 63.1   administering and enforcing sections 223.15 to 223.22.  
 63.2      The fee for any license issued or renewed after June 30, 
 63.3   ~~1997~~ 2001, shall be set according to the following schedule: 
 63.4      (a) ~~$100~~ $125 plus ~~$50~~ $100 for each additional location 
 63.5   for grain buyers whose gross annual purchases are less than 
 63.6   $100,000; 
 63.7      (b) ~~$200~~ $250 plus ~~$50~~ $100 for each additional location 
 63.8   for grain buyers whose gross annual purchases are at least 
 63.9   $100,000, but not more than $750,000; 
 63.10     (c) ~~$300~~ $375 plus ~~$100~~ $200 for each additional location 
 63.11  for grain buyers whose gross annual purchases are more than 
 63.12  $750,000 but not more than $1,500,000; 
 63.13     (d) ~~$400~~ $500 plus ~~$100~~ $200 for each additional location 
 63.14  for grain buyers whose gross annual purchases are more than 
 63.15  $1,500,000 but not more than $3,000,000; and 
 63.16     (e) ~~$500~~ $625 plus ~~$100~~ $200 for each additional location 
 63.17  for grain buyers whose gross annual purchases are more than 
 63.18  $3,000,000.  
 63.19     There is created the grain buyers and storage account in 
 63.20  the agricultural fund.  Money collected pursuant to sections 
 63.21  223.15 to 223.19 shall be paid into the state treasury and 
 63.22  credited to the grain buyers and storage account and is 
 63.23  appropriated to the commissioner for the administration and 
 63.24  enforcement of sections 223.15 to 223.22. 
 63.25     Sec. 44.  Minnesota Statutes 2000, section 231.16, is 
 63.26  amended to read: 
 63.27     231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
 63.28  OPERATOR TO OBTAIN LICENSE.] 
 63.29     A warehouse operator or household goods warehouse operator 
 63.30  must be licensed annually by the department.  The department 
 63.31  shall prescribe the form of the written application.  If the 
 63.32  department approves the license application and the applicant 
 63.33  files with the department the necessary bond, in the case of 
 63.34  household goods warehouse operators, or proof of warehouse 
 63.35  operators legal liability insurance coverage in an amount of 
 63.36  $50,000 or more, as provided for in this chapter, the department 
 64.1   shall issue the license upon payment of the license fee required 
 64.2   in this section.  A warehouse operator or household goods 
 64.3   warehouse operator to whom a license is issued shall pay a fee 
 64.4   as follows:  
 64.5           Building square footage used for public storage 
 64.6               (1) 5,000 or less               ~~$ 80~~ $100
 64.7               (2) 5,001 to 10,000             ~~$155~~ $200
 64.8               (3) 10,001 to 20,000            ~~$250~~ $300 
 64.9               (4) 20,001 to 100,000           ~~$315~~ $400     
 64.10              (5) 100,001 to 200,000          ~~$410~~ $500 
 64.11              (6) over 200,000                ~~$470~~ $600 
 64.12     Fees collected under this chapter must be paid into the 
 64.13  grain buyers and storage account established in section 232.22. 
 64.14     The license must be renewed annually on or before July 1, 
 64.15  and always upon payment of the full license fee required in this 
 64.16  section.  No license shall be issued for any portion of a year 
 64.17  for less than the full amount of the license fee required in 
 64.18  this section.  Each license obtained under this chapter must be 
 64.19  publicly displayed in the main office of the place of business 
 64.20  of the warehouse operator or household goods warehouse operator 
 64.21  to whom it is issued.  The license authorizes the warehouse 
 64.22  operator or household goods warehouse operator to carry on the 
 64.23  business of warehousing only in the one city or town named in 
 64.24  the application and in the buildings therein described.  The 
 64.25  department, without requiring an additional bond and license, 
 64.26  may issue permits from time to time to any warehouse operator 
 64.27  already duly licensed under the provisions of this chapter to 
 64.28  operate an additional warehouse in the same city or town for 
 64.29  which the original license was issued during the term thereof, 
 64.30  upon the filing an application for a permit in the form 
 64.31  prescribed by the department. 
 64.32     A license may be refused for good cause shown and revoked 
 64.33  by the department for violation of law or of any rule adopted by 
 64.34  the department, upon notice and after hearing. 
 64.35     Sec. 45.  [REFUND OF CERTAIN DAIRY FINES.] 
 64.36     For civil fines levied under Minnesota Statutes 1999 
 65.1   Supplement, section 32.21, subdivision 4, paragraph (d), for 
 65.2   violations that occurred between April 13, 2000, and August 1, 
 65.3   2000, the commissioner of agriculture shall waive the amount of 
 65.4   the civil fine that is above the amount required under Minnesota 
 65.5   Statutes 2000, section 32.21, subdivision 4, paragraph (d).  The 
 65.6   commissioner shall reimburse the amount waived to dairy 
 65.7   producers who have paid civil fines for violations that occurred 
 65.8   between April 13, 2000, and August 1, 2000. 
 65.9      Sec. 46.  [REPEALER.] 
 65.10     Minnesota Statutes 2000, section 31.11, subdivision 2, is 
 65.11  repealed.