1.1                          A bill for an act 
  1.2             relating to agriculture; appropriating money for 
  1.3             agricultural purposes; establishing and modifying 
  1.4             certain programs; providing for regulation of certain 
  1.5             activities and practices; providing for accounts, 
  1.6             assessments, and fees; amending Minnesota Statutes 
  1.7             1998, sections 17.115, subdivision 3; 17.116, 
  1.8             subdivision 3; 17.136; 17.451, subdivision 2; 17.452, 
  1.9             subdivisions 5 and 8; 17.59, subdivision 5; 17A.11; 
  1.10            18B.05, subdivision 1; 18B.26, subdivision 5; 18C.131; 
  1.11            18E.02, subdivision 5; 21.115; 21.92; 25.39, 
  1.12            subdivision 4; 27.07, subdivision 6; 28A.08, 
  1.13            subdivision 3; 31.94; 31.95, subdivision 3a; 32.21, 
  1.14            subdivision 4; 32.394, subdivision 9; 35.02, 
  1.15            subdivision 1; 35.04; 35.05; 35.08; 35.09, 
  1.16            subdivisions 2 and 2a; 35.67; 35.68; 35.82, 
  1.17            subdivisions 1b, 2, and 3; 35.92, subdivision 5; 
  1.18            35.93, subdivision 1; 41A.09, subdivision 3a; 41D.02, 
  1.19            subdivision 2; 103F.515, subdivision 2; 156.001, 
  1.20            subdivisions 2, 3, and by adding a subdivision; 
  1.21            156.01, subdivision 3; 156.02, subdivisions 1 and 2; 
  1.22            156.03; 156.072; 156.10; 156.11; 156.12, subdivisions 
  1.23            2 and 4; 216B.2424, by adding a subdivision; 239.791, 
  1.24            subdivisions 1, 12, and by adding subdivisions; and 
  1.25            500.24, subdivisions 2 and 3; proposing coding for new 
  1.26            law in Minnesota Statutes, chapters 17; 18E; 28A; 31B; 
  1.27            and 156; repealing Minnesota Statutes 1998, sections 
  1.28            17.76; 35.245; 35.96, subdivision 4; 42.01; 42.02; 
  1.29            42.03; 42.04; 42.05; 42.06; 42.07; 42.08; 42.09; 
  1.30            42.10; 42.11; 42.12; 42.13; and 42.14. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32  Section 1.  [AGRICULTURE APPROPRIATIONS.] 
  1.33     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.34  appropriated from the general fund, or another named fund, to 
  1.35  the agencies and for the purposes specified in this act, to be 
  1.36  available for the fiscal years indicated for each purpose.  The 
  1.37  figures "1999," "2000," and "2001," where used in this act, mean 
  1.38  that the appropriation or appropriations listed under them are 
  2.1   available for the year ending June 30, 1999, June 30, 2000, or 
  2.2   June 30, 2001, respectively.  
  2.3                           SUMMARY BY FUND
  2.4                1999           2000           2001          TOTAL
  2.5   General   $   -0-      $35,426,000    $30,684,000   $66,110,000
  2.6   Special Revenue            200,000        200,000       400,000
  2.7   Environmental              336,000        342,000       678,000
  2.8   Solid Waste                  -0-            -0-           -0-  
  2.9   TOTAL     $   -0-      $35,962,000    $31,226,000   $67,188,000
  2.10                                             APPROPRIATIONS 
  2.11                                         Available for the Year 
  2.12                                             Ending June 30 
  2.13                                            2000         2001 
  2.15  Sec. 2.  AGRICULTURE 
  2.16  Subdivision 1.  Total 
  2.17  Appropriation                         $28,565,000   $23,775,000
  2.18                Summary by Fund
  2.19  General              28,229,000    23,433,000
  2.20  Environmental           336,000       342,000
  2.21  The amounts that may be spent from this 
  2.22  appropriation for each program are 
  2.23  specified in the following subdivisions.
  2.24  Subd. 2.  Protection Service 
  2.25      11,589,000     11,774,000
  2.26                Summary by Fund
  2.27  General              11,253,000    11,432,000
  2.28  Environmental           336,000       342,000
  2.29  $336,000 the first year and $342,000 
  2.30  the second year are from the 
  2.31  environmental response, compensation, 
  2.32  and compliance account in the 
  2.33  environmental fund. 
  2.34  $200,000 the first year shall be 
  2.35  transferred to the seed potato 
  2.36  inspection fund and used for the 
  2.37  administration and enforcement of 
  2.38  Minnesota Statutes, sections 21.80 to 
  2.39  21.92.  This appropriation is to 
  2.40  supplement the fees paid by seed potato 
  2.41  growers.  This is a one-time 
  2.42  appropriation. 
  2.43  $100,000 the first year is to conduct a 
  2.44  predesign study for a joint agency 
  2.45  laboratory that will serve the 
  2.46  environmental laboratory needs of the 
  2.47  department of agriculture, department 
  2.48  of natural resources, pollution control 
  3.1   agency, and the Minnesota department of 
  3.2   health.  This is a one-time 
  3.3   appropriation. 
  3.4   $25,000 the first year and $25,000 the 
  3.5   second year are for expenses associated 
  3.6   with the licensing and management of 
  3.7   cervidae shooting preserves in section 
  3.8   12.  This is a one-time appropriation. 
  3.9   $250,000 the first year and $50,000 the 
  3.10  second year shall be transferred to the 
  3.11  grain inspection account to replace 
  3.12  revenues lost due to poor yields and 
  3.13  low market prices for grains during 
  3.14  1999.  This is a one-time appropriation.
  3.15  $30,000 the first year and $30,000 the 
  3.16  second year are to replace cuts in 
  3.17  federal funding for the elevator 
  3.18  inspection program.  This is a one-time 
  3.19  appropriation. 
  3.20  $158,000 the first year and $158,000 
  3.21  the second year are for payment of 
  3.22  claims relating to livestock damaged by 
  3.23  threatened or endangered animal species 
  3.24  and agricultural crops damaged by elk.  
  3.25  If the appropriation for either year is 
  3.26  insufficient, the appropriation for the 
  3.27  other year is available for it.  This 
  3.28  is not a one-time appropriation. 
  3.29  Subd. 3.  Agricultural Marketing and Development
  3.30      10,616,000       5,867,000
  3.31  $25,000 the first year and $25,000 the 
  3.32  second year are for a grant to the 
  3.33  University of Minnesota for research on 
  3.34  grazing or organic farming.  This is a 
  3.35  one-time appropriation. 
  3.36  Notwithstanding Minnesota Statutes, 
  3.37  section 41A.09, subdivision 3a, the 
  3.38  total payments from the ethanol 
  3.39  development account to all producers 
  3.40  may not exceed $74,117,000 for the 
  3.41  biennium ending June 30, 2001.  If the 
  3.42  total amount for which all producers 
  3.43  are eligible in a quarter exceeds the 
  3.44  amount available for payments, the 
  3.45  commissioner shall make the payments on 
  3.46  a pro rata basis.  In fiscal year 2000, 
  3.47  the commissioner shall first reimburse 
  3.48  producers for eligible unpaid claims 
  3.49  accumulated through June 30, 1999.  
  3.50  $200,000 the first year is for a loan 
  3.51  from the rural finance authority to an 
  3.52  entity that develops a facility that 
  3.53  uses poultry litter as a fuel for the 
  3.54  generation of electricity.  Principal 
  3.55  and interest payments on the loan must 
  3.56  be deposited in the general fund. 
  3.57  $300,000 the first year is for an 
  3.58  operating loan from the rural finance 
  3.59  authority to a cooperative association 
  3.60  organized under Minnesota Statutes, 
  3.61  chapter 308A, for development and 
  4.1   operation of a livestock packing 
  4.2   plant.  Principal and interest payments 
  4.3   on the loan must be deposited in the 
  4.4   general fund. 
  4.5   $50,000 the first year is for the 
  4.6   commissioner, in consultation with the 
  4.7   commissioner of economic development, 
  4.8   to conduct a study of the need for a 
  4.9   commercial shipping port at which 
  4.10  agricultural cooperatives or individual 
  4.11  farmers would have access to port 
  4.12  facilities. 
  4.13  $300,000 the first year is for an 
  4.14  operating loan from the rural finance 
  4.15  authority to a cooperative association 
  4.16  organized under Minnesota Statutes, 
  4.17  chapter 308A, for development and 
  4.18  operation of an alfalfa pelletizing 
  4.19  plant.  Principal and interest payments 
  4.20  on the loan must be deposited in the 
  4.21  general fund. 
  4.22  Notwithstanding the transfers from the 
  4.23  ethanol development fund to the general 
  4.24  fund required under Laws 1997, chapter 
  4.25  216, section 17, and Laws 1998, chapter 
  4.26  401, section 10, $500,000 must be 
  4.27  retained in the ethanol development 
  4.28  fund until June 30, 2000.  This sum is 
  4.29  available for making one additional 
  4.30  loan under Minnesota Statutes, section 
  4.31  41B.044.  This provision is effective 
  4.32  the day following final enactment. 
  4.33  $1,500,000 the first year is for a 
  4.34  grant to a qualified institution or 
  4.35  organization to pursue further research 
  4.36  on diseases of soybeans including, but 
  4.37  not limited to, soybean cyst nematode 
  4.38  (SCN), white mold (sclerotinia stem 
  4.39  rot), phytophthora root rot (PRR), and 
  4.40  iron deficiency chlorosis.  $300,000 of 
  4.41  this appropriation may be designated 
  4.42  for research on specialty gene traits 
  4.43  of soybeans.  This is a one-time 
  4.44  appropriation. 
  4.45  $100,000 the first year is for a grant 
  4.46  to a qualified institution to fund 
  4.47  research on turkey respiratory disease 
  4.48  control and prevention.  This 
  4.49  appropriation is in addition to other 
  4.50  public and nonpublic money for turkey 
  4.51  research.  This is a one-time 
  4.52  appropriation. 
  4.53  $100,000 the first year is for a grant 
  4.54  to a qualified institution to fund 
  4.55  research on potato aphids.  This 
  4.56  appropriation is in addition to other 
  4.57  public and nonpublic money for potato 
  4.58  aphid research.  This is a one-time 
  4.59  appropriation. 
  4.60  $120,000 the first year is for a grant 
  4.61  to the University of Minnesota 
  4.62  extension service for its farm safety 
  4.63  and health program.  This is a one-time 
  4.64  appropriation. 
  5.1   $400,000 the first year and $100,000 
  5.2   the second year are to establish an 
  5.3   agricultural water quality and quantity 
  5.4   management, research, demonstration, 
  5.5   and education program.  Of this 
  5.6   biennial appropriation, $250,000 is for 
  5.7   projects at the Lamberton site and 
  5.8   $250,000 is for projects at the Waseca 
  5.9   site.  The commissioner may contract 
  5.10  with the University of Minnesota or 
  5.11  others for the implementation of parts 
  5.12  of the program.  If the appropriation 
  5.13  for either is insufficient, the 
  5.14  appropriation for the other year is 
  5.15  available.  This is a one-time 
  5.16  appropriation. 
  5.17  $500,000 the first year is for a grant 
  5.18  to the University of Minnesota for the 
  5.19  agricultural experiment stations.  This 
  5.20  amount must be distributed to the 
  5.21  stations in equal amounts and must be 
  5.22  used for agricultural crop and 
  5.23  livestock research projects.  This is a 
  5.24  one-time appropriation. 
  5.25  $300,000 the first year is for a grant 
  5.26  to the Minnesota agriculture education 
  5.27  leadership council for a planning grant 
  5.28  for an urban agricultural high school.  
  5.29  This appropriation is available until 
  5.30  June 30, 2001.  This is a one-time 
  5.31  appropriation. 
  5.32  $75,000 the first year and $75,000 the 
  5.33  second year are for grants to the 
  5.34  Minnesota agriculture education 
  5.35  leadership council for grants to 
  5.36  schools and community organizations for 
  5.37  agricultural education programs.  This 
  5.38  is a one-time appropriation. 
  5.39  $900,000 the first year and $462,000 
  5.40  the second year are to the commissioner 
  5.41  of agriculture for programs to 
  5.42  aggressively promote, develop, expand, 
  5.43  and enhance the marketing of 
  5.44  agricultural products from Minnesota 
  5.45  producers and processors.  The 
  5.46  commissioner must enter into 
  5.47  collaborative efforts with the 
  5.48  department of trade and economic 
  5.49  development, the world trade center 
  5.50  corporation, and other public or 
  5.51  private entities knowledgeable in 
  5.52  market identification and development.  
  5.53  The commissioner may also contract with 
  5.54  or make grants to public or private 
  5.55  organizations involved in efforts to 
  5.56  enhance communication between producers 
  5.57  and markets and organizations that 
  5.58  identify, develop, and promote the 
  5.59  marketing of Minnesota agricultural 
  5.60  crops, livestock, and produce in local, 
  5.61  regional, national, and international 
  5.62  marketplaces.  Grants may be provided 
  5.63  to appropriate organizations including 
  5.64  those functioning as marketing clubs, 
  5.65  to a cooperative known as Minnesota 
  5.66  Marketplace, and to recognized 
  5.67  associations of producers or processors 
  6.1   of organic foods or Minnesota grown 
  6.2   specialty crops.  Beginning October 15, 
  6.3   1999, and 15 days after the close of 
  6.4   each calendar quarter thereafter, the 
  6.5   commissioner shall provide to the 
  6.6   senate and house committees with 
  6.7   jurisdiction over agriculture policy 
  6.8   and funding interim reports of the 
  6.9   progress toward accomplishing the goals 
  6.10  of this item.  The commissioner shall 
  6.11  deliver a final report on March 1, 
  6.12  2001.  If the appropriation for either 
  6.13  year is insufficient, the appropriation 
  6.14  for the other year is available.  This 
  6.15  is a one-time appropriation that 
  6.16  remains available until expended. 
  6.17  $30,000 the first year is for staff 
  6.18  support and other expenses of the 
  6.19  roundtable to assess producer 
  6.20  production contracts under section 67.  
  6.21  This appropriation is available until 
  6.22  June 30, 2001.  This is a one-time 
  6.23  appropriation. 
  6.24  $40,000 the first year and $10,000 the 
  6.25  second year are for development of a 
  6.26  site on the Internet for extending "Ag 
  6.27  in the Classroom" information and 
  6.28  materials and maintenance of the site.  
  6.29  This is a one-time appropriation. 
  6.30  $125,000 the first year and $125,000 
  6.31  the second year are for a grant to the 
  6.32  University of Minnesota to employ and 
  6.33  support a senior researcher in plant 
  6.34  genetics for additional research on the 
  6.35  development of scab-resistant wheat 
  6.36  varieties.  This is a one-time 
  6.37  appropriation. 
  6.38  $400,000 the first year is for a grant 
  6.39  to the Minnesota state colleges and 
  6.40  universities for providing financial 
  6.41  analysis assistance to farm operators 
  6.42  who apply for farm operating loans.  
  6.43  This is a one-time appropriation. 
  6.44  $71,000 the first year and $71,000 the 
  6.45  second year are for transfer to the 
  6.46  Minnesota grown matching account and 
  6.47  may be used as grants for Minnesota 
  6.48  grown promotion under Minnesota 
  6.49  Statutes, section 17.109. 
  6.50  $610,000 the first year and $460,000 
  6.51  the second year are for continued 
  6.52  research of solutions and alternatives 
  6.53  for manure management and odor 
  6.54  control.  This is a one-time 
  6.55  appropriation. 
  6.56  $50,000 the first year and $50,000 the 
  6.57  second year are for beaver damage 
  6.58  control grants for the purposes of 
  6.59  Minnesota Statutes, section 17.110. 
  6.60  $80,000 the first year and $80,000 the 
  6.61  second year are for grants to farmers 
  6.62  for demonstration projects involving 
  6.63  sustainable agriculture.  If a project 
  7.1   cost is more than $25,000, the amount 
  7.2   above $25,000 must be matched at the 
  7.3   rate of one state dollar for each 
  7.4   dollar of nonstate money.  Priorities 
  7.5   must be given for projects involving 
  7.6   multiple parties.  Up to $20,000 each 
  7.7   year may be used for dissemination of 
  7.8   information about the demonstration 
  7.9   grant projects.  If the appropriation 
  7.10  for either year is insufficient, the 
  7.11  appropriation for the other is 
  7.12  available. 
  7.13  $501,000 the first year and $501,000 
  7.14  the second year are for support of the 
  7.15  dairy diagnostic teams. 
  7.16  Subd. 4.  Administration and 
  7.17  Financial Assistance 
  7.18       6,360,000       6,134,000
  7.19  $49,000 the first year and $49,000 the 
  7.20  second year are for family farm 
  7.21  security interest payment adjustments.  
  7.22  If the appropriation for either year is 
  7.23  insufficient, the appropriation for the 
  7.24  other year is available for it.  No new 
  7.25  loans may be approved in fiscal year 
  7.26  2000 or 2001.  
  7.27  $254,000 the first year and $256,000 
  7.28  the second year are for the farm 
  7.29  advocates program. 
  7.30  $70,000 the first year and $70,000 the 
  7.31  second year are for the Northern Crops 
  7.32  Institute.  These appropriations may be 
  7.33  spent to purchase equipment.  
  7.34  $250,000 the first year is for creation 
  7.35  of a rapid response fund under the 
  7.36  control of the commissioner for 
  7.37  response to agricultural crop or 
  7.38  livestock emergency situations.  This 
  7.39  is a one-time appropriation and remains 
  7.40  available until expended. 
  7.41  $150,000 the first year and $150,000 
  7.42  the second year are for grants to 
  7.43  agriculture information centers.  The 
  7.44  grants are only available on a match 
  7.45  basis.  The funds may be released at 
  7.46  the rate of $5 of state money for each 
  7.47  $1 of matching nonstate money.  
  7.48  $19,000 the first year and $19,000 the 
  7.49  second year are for a grant to the 
  7.50  Minnesota Livestock Breeders' 
  7.51  Association. 
  7.52  The pilot program for distribution of 
  7.53  coupons through the sustainable 
  7.54  resource center under Laws 1998, 
  7.55  chapter 401, section 6, is canceled. 
  7.56  $175,000 the first year and $175,000 
  7.57  the second year must be spent for the 
  7.58  WIC coupon program. 
  7.59  $50,000 the first year and $50,000 the 
  8.1   second year are for the Passing on the 
  8.2   Farm Center under Minnesota Statutes, 
  8.3   section 17.985.  This appropriation is 
  8.4   available only to the extent matched 
  8.5   with nonstate money. 
  8.6   $1,767,000 the first year and 
  8.7   $1,697,000 the second year are for an 
  8.8   electronic information management 
  8.9   system. 
  8.10  $267,000 the first year and $200,000 
  8.11  the second year are for the dairy 
  8.12  inspection account.  Of the first year 
  8.13  appropriation, up to $50,000 is 
  8.14  available for additional funding of 
  8.15  beaver damage control grants.  This is 
  8.16  a one-time appropriation.  By February 
  8.17  15, 2000, the commissioner shall review 
  8.18  the fairness and equity of the fee 
  8.19  structure for dairy inspections and 
  8.20  report the findings to the legislature. 
  8.21  $50,000 the first year is to complete a 
  8.22  study of the business climate for dairy 
  8.23  farmers.  This is a one-time 
  8.24  appropriation. 
  8.25  Sec. 3.  BOARD OF ANIMAL HEALTH        2,985,000      3,039,000
  8.26  $118,000 each year is for a program to 
  8.27  investigate the avian pneumovirus 
  8.28  disease and to identify the infected 
  8.29  flocks.  This is a one-time 
  8.30  appropriation. 
  8.31  $150,000 the first year and $150,000 
  8.32  the second year are additional money 
  8.33  for a program to control 
  8.34  paratuberculosis ("Johne's disease") in 
  8.35  domestic bovine herds. 
  8.36  $125,000 the first year and $125,000 
  8.37  the second year are for pseudorabies 
  8.38  control programs.  This is a one-time 
  8.39  appropriation. 
  8.40  Sec. 4.  MINNESOTA HORTICULTURAL 
  8.41  SOCIETY                                   82,000         82,000
  8.42  Sec. 5.  AGRICULTURAL UTILIZATION
  8.43  RESEARCH INSTITUTE                     4,330,000      4,330,000
  8.44                Summary by Fund 
  8.45  General               4,130,000     4,130,000
  8.46  Special Revenue         200,000       200,000
  8.47  $200,000 each year shall be transferred 
  8.48  from the department of agriculture's 
  8.49  pesticide regulatory account in the 
  8.50  special revenue fund for the pesticide 
  8.51  reduction options program.  This is a 
  8.52  one-time appropriation.  By January 15, 
  8.53  2000, the Agricultural Utilization 
  8.54  Research Institute must report to the 
  8.55  standing committees of the house and 
  8.56  senate with jurisdiction over 
  8.57  agricultural policy issues on the 
  8.58  pesticide reduction options program. 
  9.1   The Agricultural Utilization Research 
  9.2   Institute must collaborate with the 
  9.3   commissioner of agriculture on issues 
  9.4   of market development and technology 
  9.5   transfer. 
  9.6   $200,000 the first year and $200,000 
  9.7   the second year are for hybrid tree 
  9.8   management research and development of 
  9.9   an implementation plan for establishing 
  9.10  hybrid tree plantations in the state.  
  9.11  This appropriation is available to the 
  9.12  extent it is matched by $2 of nonstate 
  9.13  contributions, either cash or in kind, 
  9.14  for each $1 of state money. 
  9.15  The base funding for the Agricultural 
  9.16  Utilization Research Institute in 
  9.17  fiscal year 2002 and thereafter is 
  9.18  reduced by $73,000 each fiscal year. 
  9.19     Sec. 6.  Minnesota Statutes 1998, section 17.115, 
  9.20  subdivision 3, is amended to read: 
  9.21     Subd. 3.  [AWARDING OF LOANS.] (a) Applications for loans 
  9.22  must be made to the commissioner on forms prescribed by the 
  9.23  commissioner. 
  9.24     (b) The applications must be reviewed, ranked, and 
  9.25  recommended by a loan review panel appointed by the 
  9.26  commissioner.  The loan review panel shall consist of two 
  9.27  lenders with agricultural experience, two resident farmers of 
  9.28  the state using sustainable agriculture methods, two resident 
  9.29  farmers of the state using organic agriculture methods, a farm 
  9.30  management specialist, a representative from a post-secondary 
  9.31  education institution, and a chair from the department.  
  9.32     (c) The loan review panel shall rank applications according 
  9.33  to the following criteria: 
  9.34     (1) realize savings to the cost of agricultural production 
  9.35  and project savings to repay the cost of the loan; 
  9.36     (2) reduce or make more efficient use of energy; and 
  9.37     (3) reduce production costs.  
  9.38     (d) A loan application must show that the loan can be 
  9.39  repaid by the applicant.  
  9.40     (e) The commissioner must consider the recommendations of 
  9.41  the loan review panel and may make loans for eligible projects.  
  9.42  Priority must be given based on the amount of savings realized 
  9.43  by adopting the practice implemented by the loan. 
 10.1      Sec. 7.  Minnesota Statutes 1998, section 17.116, 
 10.2   subdivision 3, is amended to read: 
 10.3      Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
 10.4   must be made to the commissioner on forms prescribed by the 
 10.5   commissioner. 
 10.6      (b) The applications must be reviewed, ranked, and 
 10.7   recommended by a technical review panel appointed by the 
 10.8   commissioner.  The technical review panel shall consist of a 
 10.9   soil scientist, an agronomist, a representative from a 
 10.10  post-secondary educational institution, two resident farmers of 
 10.11  the state using sustainable agriculture methods, two resident 
 10.12  farmers of the state using organic agriculture methods, and a 
 10.13  chair from the department.  
 10.14     (c) The technical review panel shall rank applications 
 10.15  according to the following criteria: 
 10.16     (1) direct or indirect energy savings or production; 
 10.17     (2) environmental benefit; 
 10.18     (3) farm profitability; 
 10.19     (4) the number of farms able to apply the techniques or the 
 10.20  technology proposed; 
 10.21     (5) the effectiveness of the project as a demonstration; 
 10.22     (6) the immediate transferability of the project to farms; 
 10.23  and 
 10.24     (7) the ability of the project to accomplish its goals. 
 10.25     (d) The commissioner shall consider the recommendations of 
 10.26  the technical review panel and may award grants for eligible 
 10.27  projects.  Priority must be given to applicants who are farmers 
 10.28  or groups of farmers. 
 10.29     (e) Grants for eligible projects may not exceed $25,000 
 10.30  unless the portion above $25,000 is matched on an equal basis by 
 10.31  the applicant's cash or in-kind land use contribution.  Grant 
 10.32  funding of projects may not exceed $50,000 under this section, 
 10.33  but applicants may utilize other funding sources.  A portion of 
 10.34  each grant must be targeted for public information activities of 
 10.35  the project. 
 10.36     (f) A project may continue for up to three years.  
 11.1   Multiyear projects must be reevaluated by the technical review 
 11.2   panel and the commissioner before second or third year funding 
 11.3   is approved.  A project is limited to one grant for its funding. 
 11.4      Sec. 8.  Minnesota Statutes 1998, section 17.136, is 
 11.5   amended to read: 
 11.6      17.136 [ANIMAL FEEDLOTS; POLLUTION CONTROL; FEEDLOT AND 
 11.7   MANURE MANAGEMENT ADVISORY COMMITTEE.] 
 11.8      (a) The commissioner of agriculture and the commissioner of 
 11.9   the pollution control agency shall establish a feedlot and 
 11.10  manure management advisory committee to identify needs, goals, 
 11.11  and suggest policies for research, monitoring, and regulatory 
 11.12  activities regarding feedlot and manure management.  In 
 11.13  establishing the committee, the commissioner shall give first 
 11.14  consideration to members of the existing feedlot advisory group. 
 11.15     (b) The committee must include representation from beef, 
 11.16  dairy, pork, chicken, and turkey producer organizations.  The 
 11.17  committee shall not exceed ~~18~~ 23 members, but, after June 30, 
 11.18  ~~1997~~ 1999, must include representatives from at least four 
 11.19  environmental organizations, eight livestock producers, ~~and~~ four 
 11.20  experts in soil and water science, nutrient management, and 
 11.21  animal husbandry, two commercial solid manure applicators who 
 11.22  are not producers, two commercial liquid manure applicators who 
 11.23  are not producers, and one member from an organization 
 11.24  representing local units of government, and chairs of the senate 
 11.25  and the house of representatives committees that deal with 
 11.26  agricultural policy or the designees of the chairs.  In 
 11.27  addition, the departments of agriculture, health, and natural 
 11.28  resources, the pollution control agency, board of water and soil 
 11.29  resources, soil and water conservation districts, the federal 
 11.30  Natural Resource Conservation Service, the association of 
 11.31  Minnesota counties, and the Farm Service Agency shall serve on 
 11.32  the committee as ex officio nonvoting members. 
 11.33     (c) The advisory committee shall elect a chair and a 
 11.34  vice-chair from its members.  The department and the agency 
 11.35  shall provide staff support to the committee. 
 11.36     (d) The commissioner of agriculture and the commissioner of 
 12.1   the pollution control agency shall consult with the advisory 
 12.2   committee during the development of any policies, rules, or 
 12.3   funding proposals or recommendations relating to feedlots or 
 12.4   feedlot-related manure management. 
 12.5      (e) The commissioner of agriculture shall consult with the 
 12.6   advisory committee on establishing a list of manure management 
 12.7   research needs and priorities. 
 12.8      (f) The advisory committee shall advise the commissioners 
 12.9   on other appropriate matters. 
 12.10     (g) Nongovernment members of the advisory committee shall 
 12.11  receive expenses, in accordance with section 15.059, subdivision 
 12.12  6.  The advisory committee expires on June 30, 2001. 
 12.13     Sec. 9.  Minnesota Statutes 1998, section 17.451, 
 12.14  subdivision 2, is amended to read: 
 12.15     Subd. 2.  [FARMED CERVIDAE.] "Farmed cervidae" means 
 12.16  members of the cervidae family that are: 
 12.17     (1) raised for the purpose of shooting, harvesting, 
 12.18  producing fiber, meat, or animal by-products, as pets, or as 
 12.19  breeding stock; and 
 12.20     (2) registered in a manner approved by the board of animal 
 12.21  health.  
 12.22     Sec. 10.  Minnesota Statutes 1998, section 17.452, 
 12.23  subdivision 5, is amended to read: 
 12.24     Subd. 5.  [RAISING FARMED CERVIDAE IS AN AGRICULTURAL 
 12.25  PURSUIT.] Raising farmed cervidae is agricultural production and 
 12.26  an agricultural pursuit, which may include the sale of farmed 
 12.27  cervidae to a person for personal consumption.  Personal 
 12.28  consumption may include the harvesting of farmed cervidae by 
 12.29  firearms or archery on a licensed shooting preserve. 
 12.30     Sec. 11. Minnesota Statutes 1998, section 17.452, 
 12.31  subdivision 8, is amended to read: 
 12.32     Subd. 8.  [SLAUGHTER.] Farmed cervidae that are to be sold 
 12.33  for commercial meat purposes must be slaughtered and inspected 
 12.34  in accordance with the United States Department of Agriculture 
 12.35  voluntary program for exotic animals, Code of Federal 
 12.36  Regulations, title 9, part 352. 
 13.1      Sec. 12.  [17.4521] [CERVIDAE SHOOTING PRESERVES.] 
 13.2      Subdivision 1.  [FEES FOR SHOOTING PRESERVES.] (a) The fee 
 13.3   for a cervidae shooting preserve license is $900 annually and 
 13.4   will be deposited in the game and fish fund. 
 13.5      (b) Shooting preserve licenses issued under this 
 13.6   subdivision expire on the last day of March. 
 13.7      Subd. 2.  [SHOOTING PRESERVE APPLICATION.] The commissioner 
 13.8   may license up to ten cervidae shooting preserves in the state.  
 13.9   An application for a cervidae shooting preserve license must be 
 13.10  filed with the commissioner.  The application must include a 
 13.11  legal description of the shooting preserve land, number of 
 13.12  acres, species to be harvested, and other necessary information 
 13.13  prescribed by the commissioner. 
 13.14     Subd. 3.  [GAME AVAILABLE.] Game that may be released and 
 13.15  harvested in a licensed cervidae shooting preserve must be 
 13.16  specified in the license and are limited to species raised as 
 13.17  farmed cervidae under sections 17.451 and 17.452.  Only farmed 
 13.18  cervidae from herds in the accredited program of the board of 
 13.19  animal health may be transported to and released in a licensed 
 13.20  cervidae shooting preserve. 
 13.21     Subd. 4.  [LOCATION; SIZE OF PRESERVE.] A shooting preserve 
 13.22  must be separated from any farmed cervidae breeding pens or 
 13.23  pastures.  A shooting preserve must be contiguous and contain at 
 13.24  least 240 acres for elk and at least 120 acres for deer but no 
 13.25  more than 960 acres, including any water area, and must have 
 13.26  areas of cover to provide for concealment of the cervidae 
 13.27  sufficient to prevent the cervidae from being visible in all 
 13.28  parts of the preserve at one time and must afford cervidae the 
 13.29  chance of escape from pursuit by patrons of the shooting 
 13.30  preserve. 
 13.31     Subd. 5.  [POSTING OF BOUNDARIES.] The boundaries of a 
 13.32  shooting preserve must be clearly posted in a manner prescribed 
 13.33  by the commissioner.  The operator must post signs around the 
 13.34  entire perimeter of the preserve at intervals not to exceed 500 
 13.35  feet. 
 13.36     Subd. 6.  [FENCING AND ENCLOSURES.] All perimeter fencing 
 14.1   must be paid for and maintained by the licensee and comply with 
 14.2   farmed cervidae requirements in section 17.452. 
 14.3      Subd. 7.  [REMOVAL OF ALL WILD CERVIDAE.] To the extent 
 14.4   practicable, all wild cervidae must be removed from the shooting 
 14.5   preserve property at the owner's expense prior to final issuance 
 14.6   of the shooting preserve license.  After the owner's removal 
 14.7   efforts are completed, the commissioner shall determine the 
 14.8   number and type of wild cervidae remaining on the shooting 
 14.9   preserve property.  The shooting preserve operator shall pay the 
 14.10  restitution value, adopted under section 97A.345, for each wild 
 14.11  cervidae remaining on the shooting preserve property.  Money 
 14.12  received under this subdivision shall be credited to the game 
 14.13  and fish fund.  
 14.14     Subd. 8.  [REVOCATION OF LICENSE.] The commissioner may 
 14.15  revoke a shooting preserve license if the licensee or persons 
 14.16  authorized to harvest in the shooting preserve have been 
 14.17  convicted of a violation under this section.  After revocation, 
 14.18  a new license may be issued at the discretion of the 
 14.19  commissioner. 
 14.20     Subd. 9.  [HUNTING LICENSE NOT REQUIRED.] A hunting license 
 14.21  is not required to harvest authorized species of cervidae on a 
 14.22  licensed shooting preserve. 
 14.23     Subd. 10.  [SEASON.] (a) The open season for harvesting in 
 14.24  a shooting preserve is August 15 through March 31. 
 14.25     (b) The commissioner may restrict the open season after 
 14.26  receiving a complaint, holding a public hearing, and finding 
 14.27  that the population of a particular species of wild cervidae is 
 14.28  harmed by harvesting in the shooting preserve. 
 14.29     Subd. 11.  [WEAPONS LIMITATIONS.] A person may harvest 
 14.30  farmed cervidae on a shooting preserve by archery or firearms 
 14.31  authorized by law to take wild cervidae in the same area. 
 14.32     Subd. 12.  [LICENSEE MAY ESTABLISH RESTRICTIONS.] A 
 14.33  shooting preserve licensee is responsible for determining who is 
 14.34  allowed to harvest in the preserve.  In each preserve, the 
 14.35  licensee may establish the charge for harvesting cervidae, the 
 14.36  shooting hours, the season, weapon limitations, and restrictions 
 15.1   on the age, sex, and number of each species that may be 
 15.2   harvested by the hunter.  These provisions may not conflict with 
 15.3   this section and may not be less restrictive than any rule. 
 15.4      Subd. 13.  [IDENTIFICATION AND MARKING OF CERVIDAE.] All 
 15.5   cervidae must be identified by permanent tattoo, electronic 
 15.6   implant, or other means of identification that comply with 
 15.7   section 17.452. 
 15.8      Subd. 14.  [MARKING HARVESTED CERVIDAE.] Harvested cervidae 
 15.9   must be marked in accordance with or identified by the shooting 
 15.10  preserve operator in a manner prescribed by the commissioner.  
 15.11  The commissioner may issue the tags or other markings at a cost 
 15.12  not to exceed $2 each.  The marking must remain attached on the 
 15.13  cervidae while the cervidae is transported. 
 15.14     Subd. 15.  [RECORDKEEPING.] A shooting preserve must 
 15.15  maintain a registration book listing the names, addresses, and 
 15.16  hunting license numbers, if applicable, of all patrons of the 
 15.17  shooting preserve, the date when they harvested, the amount and 
 15.18  species of cervidae taken, and the tag numbers or other markings 
 15.19  affixed to each animal.  A shooting preserve must keep records 
 15.20  of the number of each species raised and purchased and the date 
 15.21  and number of each species released.  An annual report shall be 
 15.22  made to the commissioner by the date herd registration is 
 15.23  required.  The records must be open to inspection by the 
 15.24  commissioner at all reasonable times. 
 15.25     Sec. 13.  Minnesota Statutes 1998, section 17.59, 
 15.26  subdivision 5, is amended to read: 
 15.27     Subd. 5.  [COMMODITIES RESEARCH AND PROMOTION ACCOUNT.] All 
 15.28  fees collected by the department under sections 17.51 to 17.69 
 15.29  and any other fees and income received by the department in the 
 15.30  administration of these statutes shall be deposited in a 
 15.31  separate account known as the commodity research and promotion 
 15.32  account in the special revenue fund.  All money in the account, 
 15.33  including interest, is appropriated to the commissioner to carry 
 15.34  out the duties of sections 17.51 to 17.69. 
 15.35     Sec. 14.  Minnesota Statutes 1998, section 17A.11, is 
 15.36  amended to read: 
 16.1      17A.11 [FEES FOR LIVESTOCK WEIGHING.] 
 16.2      The commissioner shall prescribe the fee necessary to cover 
 16.3   the cost of state weighing, to be assessed and collected from 
 16.4   the seller in the manner the commissioner may prescribe.  The 
 16.5   fee assessed must be the same, and the manner of collection of 
 16.6   the fee must be uniform at all facilities.  At any location 
 16.7   where state weighing is performed in accordance with this 
 16.8   chapter and the total annual fees collected are insufficient to 
 16.9   pay the cost of the weighing, the annual deficit shall be 
 16.10  assessed and collected in the manner the commissioner may 
 16.11  prescribe.  Additional money arising from the weighing of 
 16.12  animals by the commissioner, which has been collected and 
 16.13  retained by any person, shall be paid on demand to the 
 16.14  commissioner.  All money collected by the commissioner shall be 
 16.15  deposited in the state treasury and credited to the livestock 
 16.16  weighing fund.  All money in the fund is appropriated to the 
 16.17  commissioner to carry out the duties of section 17A.10. 
 16.18     Sec. 15.  Minnesota Statutes 1998, section 18B.05, 
 16.19  subdivision 1, is amended to read: 
 16.20     Subdivision 1.  [ESTABLISHMENT.] A pesticide regulatory 
 16.21  account is established in the state treasury.  Fees and 
 16.22  penalties collected under this chapter must be deposited in the 
 16.23  state treasury and credited to the pesticide regulatory 
 16.24  account.  All money in the account, including interest, is 
 16.25  appropriated to the commissioner for the administration and 
 16.26  enforcement of this chapter. 
 16.27     Sec. 16.  Minnesota Statutes 1998, section 18B.26, 
 16.28  subdivision 5, is amended to read: 
 16.29     Subd. 5.  [REVIEW AND REGISTRATION.] (a) The commissioner 
 16.30  may not deny the registration of a pesticide because the 
 16.31  commissioner determines the pesticide is not essential. 
 16.32     (b) The commissioner shall review each application and may 
 16.33  approve, deny, or cancel the registration of any pesticide.  The 
 16.34  commissioner may impose state use and distribution restrictions 
 16.35  on a pesticide as part of the registration to prevent 
 16.36  unreasonable adverse effects on the environment. 
 17.1      (c) The commissioner must notify the applicant of the 
 17.2   approval, denial, cancellation, state use or distribution 
 17.3   restrictions. 
 17.4      (d) The applicant may request a hearing on any adverse 
 17.5   action of the commissioner within 30 days after being notified. 
 17.6      (e) The commissioner may exempt from the requirement of 
 17.7   registration pesticides that have been deregulated or classified 
 17.8   as minimum risk by the United States Environmental Protection 
 17.9   Agency. 
 17.10     Sec. 17.  Minnesota Statutes 1998, section 18C.131, is 
 17.11  amended to read: 
 17.12     18C.131 [FERTILIZER INSPECTION ACCOUNT.] 
 17.13     A fertilizer inspection account is established in the state 
 17.14  treasury.  The fees collected under this chapter and interest 
 17.15  attributable to money in the account must be deposited in the 
 17.16  state treasury and credited to the fertilizer inspection 
 17.17  account.  All money in the account, including interest earned, 
 17.18  is appropriated to the commissioner for the administration and 
 17.19  enforcement of this chapter. 
 17.20     Sec. 18.  Minnesota Statutes 1998, section 18E.02, 
 17.21  subdivision 5, is amended to read: 
 17.22     Subd. 5.  [ELIGIBLE PERSON.] "Eligible person" means: 
 17.23     (1) a responsible party or an owner of real property, but 
 17.24  does not include the state, a state agency, a political 
 17.25  subdivision of the state, except as provided in clause (2), the 
 17.26  federal government, or an agency of the federal government; 
 17.27     (2) the owners of municipal airports ~~at Perham, Madison,~~ 
 17.28  ~~and Hector,~~ in Minnesota where a licensed aerial pesticide 
 17.29  applicator has caused an incident through storage, handling, or 
 17.30  distribution operations for agricultural chemicals if (i) the 
 17.31  commissioner has determined that corrective action is necessary 
 17.32  and (ii) the commissioner determines, and the agricultural 
 17.33  chemical response compensation board concurs, that based on an 
 17.34  affirmative showing made by the owner, a responsible party 
 17.35  cannot be identified or the identified responsible party is 
 17.36  unable to comply with an order for corrective action; or 
 18.1      (3) a person involved in a transaction relating to real 
 18.2   property who is not a responsible party or owner of the real 
 18.3   property and who voluntarily takes corrective action on the 
 18.4   property in response to a request or order for corrective action 
 18.5   from the commissioner~~, except an owner of a municipal airport~~ 
 18.6   ~~not listed in clause (2)~~. 
 18.7      Sec. 19.  [18E.035] [FINANCIAL SECURITY; MUNICIPAL 
 18.8   AIRPORTS.] 
 18.9      Section 18E.02, subdivision 5, clause (2), does not 
 18.10  prohibit the owner of a municipal airport from requiring 
 18.11  financial security from an aerial pesticide applicator to cover 
 18.12  any necessary corrective action. 
 18.13     Sec. 20.  Minnesota Statutes 1998, section 21.115, is 
 18.14  amended to read: 
 18.15     21.115 [FEES; SEED POTATO INSPECTION FUND.] 
 18.16     The commissioner shall fix the fees for all inspections and 
 18.17  certifications in such amounts as from time to time may be found 
 18.18  necessary to pay the expenses of carrying out and enforcing the 
 18.19  purposes of sections 21.111 to 21.122, with a reasonable 
 18.20  reserve, and shall require the same to be paid before such 
 18.21  inspections or certifications are made.  All moneys collected as 
 18.22  fees or as penalties for violations of any of the provisions of 
 18.23  such sections shall be paid into the state treasury and therein 
 18.24  credited to the seed potato inspection fund of the commissioner, 
 18.25  which fund is hereby created and appropriated for carrying out 
 18.26  the purposes of sections 21.111 to 21.122.  Interest, if any, 
 18.27  received on deposits of these moneys shall be credited to such 
 18.28  fund, and there shall be paid into this fund any sum provided by 
 18.29  the legislature for the purpose of carrying out the provisions 
 18.30  of such sections.  
 18.31     Sec. 21.  Minnesota Statutes 1998, section 21.92, is 
 18.32  amended to read: 
 18.33     21.92 [SEED INSPECTION FUND.] 
 18.34     There is established in the state treasury an account known 
 18.35  as the seed inspection fund.  Fees and penalties collected by 
 18.36  the commissioner under sections 21.80 to 21.92 and interest 
 19.1   attributable to money in the account shall be deposited into 
 19.2   this account.  The rates at which the fees are charged may be 
 19.3   adjusted pursuant to section 16A.1285.  Money in the account, 
 19.4   including interest earned, is appropriated to the commissioner 
 19.5   for the administration and enforcement of sections 21.80 to 
 19.6   21.92. 
 19.7      Sec. 22.  Minnesota Statutes 1998, section 25.39, 
 19.8   subdivision 4, is amended to read: 
 19.9      Subd. 4.  [COMMERCIAL FEED INSPECTION ACCOUNT.] A 
 19.10  commercial feed inspection account is established in the state 
 19.11  treasury.  Fees and penalties collected under sections 25.35 to 
 19.12  25.43 and interest attributable to money in the account must be 
 19.13  deposited in the state treasury and credited to the commercial 
 19.14  feed inspection account.  Money in the account, including 
 19.15  interest earned, is appropriated to the commissioner for the 
 19.16  administration and enforcement of sections 25.341 to 25.43. 
 19.17     Sec. 23.  Minnesota Statutes 1998, section 27.07, 
 19.18  subdivision 6, is amended to read: 
 19.19     Subd. 6.  [COOPERATIVE AGREEMENTS; FEES; ACCOUNT.] The 
 19.20  commissioner may collect fees as provided for in cooperative 
 19.21  agreements between the commissioner and the United States 
 19.22  Department of Agriculture for the inspection of fresh fruits, 
 19.23  vegetables, and other products.  The fees and interest 
 19.24  attributable to money in the account must be deposited in the 
 19.25  state treasury and credited to a fruit and vegetables inspection 
 19.26  account.  Money in the account, including interest earned, is 
 19.27  appropriated to the commissioner to administer the cooperative 
 19.28  agreements. 
 19.29     Sec. 24.  Minnesota Statutes 1998, section 28A.08, 
 19.30  subdivision 3, is amended to read: 
 19.31     Subd. 3.  [FEES EFFECTIVE JULY 1, ~~1996~~ 1999.] 
 19.32                                                    Penalties 
 19.33  Type of food handler                    License  Late     No
 19.34                                          Fee      Renewal  License
 19.35                                          Effective
 19.36                                          July 1, ~~1996~~ 1999
 20.1   1.   Retail food handler
 20.2        (a) Having gross sales of only
 20.3        prepackaged nonperishable food
 20.4        of less than $15,000 for 
 20.5        the immediately previous 
 20.6        license or fiscal year and 
 20.7        filing a statement with the 
 20.8        commissioner                       ~~$ 45~~     ~~$ 15~~     ~~$ 25~~
 20.9                                           $ 48     $ 16     $ 27
 20.10       (b) Having under $15,000 gross
 20.11       sales including food preparation 
 20.12       or having $15,000 to $50,000 
 20.13       gross sales for the immediately 
 20.14       previous license or fiscal year    ~~$ 61~~     ~~$ 15~~     ~~$ 25~~
 20.15                                          $ 65     $ 16     $ 27
 20.16       (c) Having $50,000 to $250,000 
 20.17       gross sales for the immediately  
 20.18       previous license or fiscal year    ~~$118~~     ~~$ 35~~     ~~$ 75~~
 20.19                                          $126     $ 37     $ 80
 20.20       (d) Having $250,000 to 
 20.21       $1,000,000 gross sales for the 
 20.22       immediately previous license or 
 20.23       fiscal year                        ~~$202~~     ~~$ 50~~     ~~$100~~
 20.24                                          $216     $ 54     $107
 20.25       (e) Having $1,000,000 to 
 20.26       $5,000,000 gross sales for the 
 20.27       immediately previous license or 
 20.28       fiscal year                        ~~$562~~     ~~$100~~     ~~$175~~
 20.29                                          $601     $107     $187
 20.30       (f) Having $5,000,000 to
 20.31       $10,000,000 gross sales for the
 20.32       immediately previous license or
 20.33       fiscal year                        ~~$787~~     ~~$150~~     ~~$300~~
 20.34                                          $842     $161     $321
 20.35       (g) Having over $10,000,000
 20.36       gross sales for the immediately
 21.1        previous license or fiscal year    ~~$899~~     ~~$200~~     ~~$350~~
 21.2                                           $962     $214     $375
 21.3   2.   Wholesale food handler
 21.4        (a) Having gross sales or
 21.5        service of less than $25,000
 21.6        for the immediately previous 
 21.7        license or fiscal year             ~~$ 50~~     ~~$ 15~~     ~~$ 15~~
 21.8                                           $ 54     $ 16     $ 16
 21.9        (b) Having $25,000 to
 21.10       $250,000 gross sales or
 21.11       service for the immediately 
 21.12       previous license or fiscal year    ~~$225~~     ~~$ 50~~     ~~$100~~
 21.13                                          $241     $ 54     $107
 21.14       (c) Having $250,000 to 
 21.15       $1,000,000 gross sales or
 21.16       service from a mobile unit
 21.17       without a separate food facility
 21.18       for the immediately previous
 21.19       license or fiscal year             ~~$337~~     ~~$ 75~~     ~~$150~~
 21.20                                          $361     $ 80     $161
 21.21       (d) Having $250,000 to 
 21.22       $1,000,000 gross sales or
 21.23       service not covered under 
 21.24       paragraph (c) for the immediately 
 21.25       previous license or fiscal year    ~~$449~~     ~~$100~~     ~~$200~~
 21.26                                          $480     $107     $214
 21.27       (e) Having $1,000,000 to
 21.28       $5,000,000 gross sales or 
 21.29       service for the immediately 
 21.30       previous license or fiscal year    ~~$562~~     ~~$125~~     ~~$250~~
 21.31                                          $601     $134     $268
 21.32       (f) Having over $5,000,000 gross
 21.33       sales for the immediately 
 21.34       previous license or fiscal year    ~~$647~~     ~~$150~~     ~~$300~~
 21.35                                          $692     $161     $321
 21.36  3.   Food broker                        ~~$112~~     ~~$ 30~~     ~~$ 50~~
 22.1                                           $120     $ 32     $ 54
 22.2   4.   Wholesale food processor
 22.3        or manufacturer 
 22.4        (a) Having gross sales of less 
 22.5        than $125,000 for the 
 22.6        immediately previous license 
 22.7        or fiscal year                     ~~$150~~     ~~$ 50~~     ~~$100~~
 22.8                                           $161     $ 54     $107
 22.9        (b) Having $125,000 to $250,000
 22.10       gross sales for the immediately 
 22.11       previous license or fiscal year    ~~$310~~     ~~$ 75~~     ~~$150~~
 22.12                                          $332     $ 80     $161
 22.13       (c) Having $250,001 to $1,000,000
 22.14       gross sales for the immediately 
 22.15       previous license or fiscal year    ~~$449~~     ~~$100~~     ~~$200~~
 22.16                                          $480     $107     $214
 22.17       (d) Having $1,000,001 to
 22.18       5,000,000 gross sales for the
 22.19       immediately previous license or
 22.20       fiscal year                        ~~$562~~     ~~$125~~     ~~$250~~
 22.21                                          $601     $134     $268
 22.22       (e) Having $5,000,001 to 
 22.23       $10,000,000 gross sales for 
 22.24       the immediately previous 
 22.25       license or fiscal year             ~~$647~~     ~~$150~~     ~~$300~~ 
 22.26                                          $692     $161     $321
 22.27       (f) Having over $10,000,000 
 22.28       gross sales for the immediately 
 22.29       previous license or fiscal year    ~~$900~~     ~~$200~~     ~~$350~~ 
 22.30                                          $963     $214     $375
 22.31  5.   Wholesale food processor of
 22.32       meat or poultry products
 22.33       under supervision of the
 22.34       U. S. Department of Agriculture 
 22.35       (a) Having gross sales of less 
 22.36       than $125,000 for the 
 23.1        immediately previous license 
 23.2        or fiscal year                     ~~$100~~     ~~$ 25~~     ~~$ 50~~
 23.3                                           $107     $ 27     $ 54
 23.4        (b) Having $125,000 to 
 23.5        $250,000 gross sales for the
 23.6        immediately previous license
 23.7        or fiscal year                     ~~$169~~     ~~$ 50~~     ~~$ 75~~
 23.8                                           $181     $ 54     $ 80
 23.9        (c) Having $250,001 to
 23.10       $1,000,000 gross sales for the
 23.11       immediately previous license
 23.12       or fiscal year                     ~~$253~~     ~~$ 75~~     ~~$125~~
 23.13                                          $271     $ 80     $134
 23.14       (d) Having $1,000,001 to
 23.15       $5,000,000 gross sales 
 23.16       for the immediately previous 
 23.17       license or fiscal year             ~~$310~~     ~~$ 75~~     ~~$150~~
 23.18                                          $332     $ 80     $161
 23.19       (e) Having $5,000,001 to 
 23.20       $10,000,000 gross sales for 
 23.21       the immediately previous 
 23.22       license or fiscal year             ~~$366~~     ~~$100~~     ~~$175~~ 
 23.23                                          $392     $107     $187
 23.24       (f) Having over $10,000,000 
 23.25       gross sales for the immediately 
 23.26       previous license or fiscal year    ~~$500~~     ~~$150~~     ~~$250~~ 
 23.27                                          $535     $161     $268
 23.28  6.   Wholesale food manufacturer
 23.29       having the permission of the
 23.30       commissioner to use the name
 23.31       Minnesota Farmstead cheese         $ 30     $ 10     $ 15
 23.32  7.   Nonresident frozen dairy 
 23.33       manufacturer                       $200     $ 50     $ 75
 23.34  8.   Wholesale food manufacturer
 23.35       processing less than 700,000
 23.36       pounds per year of raw milk        $ 30     $ 10     $ 15
 24.1   9.   A milk marketing organization
 24.2        without facilities for 
 24.3        processing or manufacturing 
 24.4        that purchases milk from milk
 24.5        producers for delivery to a
 24.6        licensed wholesale food 
 24.7        processor or manufacturer          $ 50     $ 15     $ 25
 24.8      Sec. 25.  [28A.081] [CERTIFICATE FEES.] 
 24.9      A fee of $75 for each certificate shall be charged to all 
 24.10  food establishments that request certificates issued by the 
 24.11  Minnesota department of agriculture to facilitate the movement 
 24.12  of Minnesota processed and manufactured foods destined for 
 24.13  export from the state of Minnesota.  Certificates include, but 
 24.14  are not limited to, certificates of free sale, certificates of 
 24.15  export, certificates of sanitation, sanitary certificates, 
 24.16  certificates of origin and/or free sale, certificates of health 
 24.17  and/or free sale, sanitation, and purity, certificate of free 
 24.18  trade, certificate of free sale, sanitation, purity, and origin, 
 24.19  certificate of health, sanitation, purity, and free sale, and 
 24.20  letter of plant certification. 
 24.21     A food establishment shall be billed within seven days for 
 24.22  certificates issued.  The food establishment must submit payment 
 24.23  for certificates within ten days of the billing date.  If 
 24.24  certificate fee payments are not received within 15 days of the 
 24.25  billing date, the department may not issue any future 
 24.26  certificates until previous fees due are paid in full. 
 24.27     Sec. 26.  Minnesota Statutes 1998, section 31.94, is 
 24.28  amended to read: 
 24.29     31.94 [COMMISSIONER DUTIES.] 
 24.30     (a) The commissioner shall enforce sections 31.92 to 31.95. 
 24.31  The commissioner shall withhold from sale or trade any product 
 24.32  sold, labeled, or advertised in violation of sections 31.92 to 
 24.33  31.95. 
 24.34     (b) The commissioner shall investigate the offering for 
 24.35  sale, labeling, or advertising of an article or substance as 
 24.36  organically grown, organically processed, or produced in an 
 25.1   organic environment if there is reason to believe that action is 
 25.2   in violation of sections 31.92 to 31.95. 
 25.3      (c) The commissioner may adopt rules that further clarify 
 25.4   organic food standards and marketing practices. 
 25.5      (d) In order to promote opportunities for organic 
 25.6   agriculture in Minnesota, the commissioner shall: 
 25.7      (1) survey producers and support services and organizations 
 25.8   to determine information and research needs in the area of 
 25.9   organic agriculture practices; 
 25.10     (2) work with the University of Minnesota to demonstrate 
 25.11  the on-farm applicability of organic agriculture practices to 
 25.12  conditions in this state; 
 25.13     (3) direct the programs of the department so as to work 
 25.14  toward the promotion of organic agriculture in this state; 
 25.15     (4) inform agencies of how state or federal programs could 
 25.16  utilize and support organic agriculture practices; and 
 25.17     (5) work closely with farmers, the University of Minnesota, 
 25.18  the Minnesota trade office, and other appropriate organizations 
 25.19  to identify opportunities and needs as well as ensure 
 25.20  coordination and avoid duplication of state agency efforts 
 25.21  regarding research, teaching, and extension work relating to 
 25.22  organic agriculture. 
 25.23     (e) By November 15 of each even-numbered year the 
 25.24  commissioner, in conjunction with the task force created in 
 25.25  section 31.95, subdivision 3a, shall report on the status of 
 25.26  organic agriculture in Minnesota to the legislative policy and 
 25.27  finance committees and divisions with jurisdiction over 
 25.28  agriculture.  The report must include: 
 25.29     (1) a description of current state or federal programs 
 25.30  directed toward organic agriculture, including significant 
 25.31  results and experiences of those programs; 
 25.32     (2) a description of specific actions the department of 
 25.33  agriculture is taking in the area of organic agriculture, 
 25.34  including the proportion of the department's budget spent on 
 25.35  organic agriculture; 
 25.36     (3) a description of current and future research needs at 
 26.1   all levels in the area of organic agriculture; and 
 26.2      (4) suggestions for changes in existing programs or 
 26.3   policies or enactment of new programs or policies that will 
 26.4   affect organic agriculture. 
 26.5      Sec. 27.  Minnesota Statutes 1998, section 31.95, 
 26.6   subdivision 3a, is amended to read: 
 26.7      Subd. 3a.  [CERTIFICATION ORGANIZATIONS.] (a) A Minnesota 
 26.8   grown organic product that is labeled "certified" must be 
 26.9   certified by a designated certification organization.  
 26.10     (b) A certified organic product sold in this state must be 
 26.11  certified by a designated certification organization or by a 
 26.12  certification organization approved by the commissioner.  Before 
 26.13  approving a certification organization, the commissioner must 
 26.14  seek the evaluation and recommendation of the Minnesota organic 
 26.15  advisory task force. 
 26.16     (c) The commissioner shall appoint a Minnesota organic 
 26.17  advisory task force ~~composed of members of the organic industry~~ 
 26.18  ~~to advise the commissioner on organic issues.  Members of the~~ 
 26.19  ~~task force may not be paid compensation or costs for expenses~~ to 
 26.20  advise the commissioner on policies and practices to improve 
 26.21  organic agriculture in Minnesota.  The task force shall consist 
 26.22  of the following residents of the state: 
 26.23     (1) three farmers using organic agriculture methods; 
 26.24     (2) one organic food retailer or distributor; 
 26.25     (3) one representative of organic food certification 
 26.26  agencies; 
 26.27     (4) one organic food processor; 
 26.28     (5) one representative from the Minnesota extension 
 26.29  service; 
 26.30     (6) one representative from an environmental nonprofit 
 26.31  organization; 
 26.32     (7) two at-large members; and 
 26.33     (8) one representative from the agricultural utilization 
 26.34  research institute.  Terms, compensation, and removal of members 
 26.35  are governed by section 15.059, subdivision 6.  The task 
 26.36  force must meet at least twice each year and expires on June 30, 
 27.1   ~~2001~~ 2003. 
 27.2      Sec. 28.  [31B.32] [DAILY PRICE REPORTS.] 
 27.3      (a) At the close of each business day on which a packer 
 27.4   purchased or received on contract livestock for slaughter, the 
 27.5   packer must report to the United States Department of 
 27.6   Agriculture, agricultural marketing service, and the Minnesota 
 27.7   commissioner of agriculture all prices paid for livestock under 
 27.8   contract and through cash market sales during that business day, 
 27.9   including: 
 27.10     (1) the amount of the base price and a description of the 
 27.11  formula used to establish that base price; 
 27.12     (2) a description of the types and amount of any premiums 
 27.13  or discounts including, but not limited to, quality 
 27.14  characteristics, grade and yield, volume, early delivery, 
 27.15  percent lean, and transportation or acquisition cost savings to 
 27.16  the packer; and 
 27.17     (3) the basis on which payment was made including 
 27.18  live-weight, carcass weight, or value in the meat.  
 27.19     (b) The commissioner shall make information reported by 
 27.20  packers available to the public, through an electronic medium, 
 27.21  on the day succeeding the day covered by the packer's report.  
 27.22  The disclosure of information reported by the commissioner may 
 27.23  be made only in a form that ensures that: 
 27.24     (1) the identity of the parties involved in any transaction 
 27.25  described in a report is not disclosed; 
 27.26     (2) the identity of the packer submitting a report is not 
 27.27  disclosed; and 
 27.28     (3) the confidentiality of proprietary business information 
 27.29  is otherwise protected. 
 27.30     Sec. 29.  Minnesota Statutes 1998, section 32.21, 
 27.31  subdivision 4, is amended to read: 
 27.32     Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
 27.33  producer, who violates this section is guilty of a misdemeanor 
 27.34  or subject to a civil penalty up to $1,000. 
 27.35     (b) A milk producer may not change milk plants within 30 
 27.36  days, without permission of the commissioner, after receiving 
 28.1   notification from the commissioner under paragraph (c) or (d) 
 28.2   that the milk producer has violated this section. 
 28.3      (c) A milk producer who violates subdivision 3, clause (1), 
 28.4   (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
 28.5   paragraph. 
 28.6      (1) Upon notification of the first violation in a 12-month 
 28.7   period, the producer must meet with the dairy plant field 
 28.8   service representative to initiate corrective action within 30 
 28.9   days. 
 28.10     (2) Upon the second violation within a 12-month period, the 
 28.11  producer is subject to a civil penalty of $300.  The 
 28.12  commissioner shall notify the producer by certified mail stating 
 28.13  the penalty is payable in 30 days, the consequences of failure 
 28.14  to pay the penalty, and the consequences of future violations. 
 28.15     (3) Upon the third violation within a 12-month period, the 
 28.16  producer is subject to an additional civil penalty of $300 and 
 28.17  possible revocation of the producer's permit or certification.  
 28.18  The commissioner shall notify the producer by certified mail 
 28.19  that all civil penalties owed must be paid within 30 days and 
 28.20  that the commissioner is initiating administrative procedures to 
 28.21  revoke the producer's permit or certification to sell milk for 
 28.22  at least 30 days. 
 28.23     (d) The producer's shipment of milk must be immediately 
 28.24  suspended if the producer is identified as an individual source 
 28.25  of milk containing residues causing a bulk load of milk to test 
 28.26  positive in violation of subdivision 3, clause (6) or (7).  
 28.27  ~~Shipment may resume~~ The Grade A or manufacturing grade permit 
 28.28  must be converted to temporary status for not more than 30 days 
 28.29  and shipment may resume only after subsequent milk has been 
 28.30  sampled by the commissioner or the commissioner's agent and 
 28.31  found to contain no residues above established tolerances or 
 28.32  safe levels. 
 28.33     The Grade A or manufacturing grade permit may be restored 
 28.34  if the producer ~~remains eligible only for manufacturing grade~~ 
 28.35  ~~until the producer~~ completes the "Milk and Dairy Beef Residue 
 28.36  Prevention Protocol" with a licensed veterinarian, displays the 
 29.1   signed certificate in the milkhouse, and sends verification to 
 29.2   the commissioner within the 30-day temporary permit status 
 29.3   period.  If the producer does not comply within the temporary 
 29.4   permit status period, the Grade A or manufacturing grade permit 
 29.5   must be suspended.  A milk producer whose milk supply is in 
 29.6   violation of subdivision 3, clause (6) or (7), and has caused a 
 29.7   bulk load to test positive is subject to clauses (1) to (3) of 
 29.8   this paragraph.  
 29.9      (1) For the first violation in a 12-month period, a dairy 
 29.10  plant may collect from the responsible producer the value of the 
 29.11  contaminated truck load of milk.  If the amount collected by the 
 29.12  plant is less than two days of milk production on that farm, 
 29.13  then the commissioner must assess the difference as a civil 
 29.14  penalty payable by the plant or marketing organization on behalf 
 29.15  of the responsible producer. 
 29.16     (2) For the second violation in a 12-month period, a dairy 
 29.17  plant may collect from the responsible producer the value of the 
 29.18  contaminated truck load of milk.  If the amount collected by the 
 29.19  plant is less than four days of milk production on that farm, 
 29.20  then the commissioner must assess the difference as a civil 
 29.21  penalty payable by the plant or marketing organization on behalf 
 29.22  of the responsible producer. 
 29.23     (3) For the third violation in a 12-month period, a dairy 
 29.24  plant may collect from the responsible producer the value of the 
 29.25  contaminated load of milk.  If the amount collected by the plant 
 29.26  is less than four days of milk production on that farm, then the 
 29.27  commissioner must assess the difference as a civil penalty 
 29.28  payable by the plant or marketing organization on behalf of the 
 29.29  responsible producer.  The commissioner shall also notify the 
 29.30  producer by certified mail that the commissioner is initiating 
 29.31  administrative procedures to revoke the producer's right to sell 
 29.32  milk for a minimum of 30 days.  
 29.33     (4) If a bulk load of milk tests negative for residues and 
 29.34  there is a positive producer sample on the load, no civil 
 29.35  penalties may be assessed to the producer.  The plant must 
 29.36  report the positive result within 24 hours and reject further 
 30.1   milk shipments from that producer until the producer's milk 
 30.2   tests negative.  The department shall suspend the producer's 
 30.3   permit and count the violation on the producer's record.  The 
 30.4   ~~producer remains eligible only for manufacturing grade~~ 
 30.5   ~~until~~ Grade A or manufacturing grade permit must be converted to 
 30.6   temporary status for not more than 30 days during which time the 
 30.7   producer ~~reviews~~ must review the "Milk and Dairy Beef Residue 
 30.8   Prevention Protocol" with a licensed veterinarian, display the 
 30.9   signed certificate in the milkhouse, and send verification to 
 30.10  the commissioner.  ~~To maintain a permit or certification to~~ 
 30.11  ~~market milk, this program must be reviewed within 30 days.~~  If 
 30.12  these conditions are met, the Grade A or manufacturing grade 
 30.13  permit must be reinstated.  If the producer does not comply 
 30.14  within the temporary permit status period, the Grade A or 
 30.15  manufacturing grade permit must be suspended. 
 30.16     (e) A milk producer that has been certified as completing 
 30.17  the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
 30.18  months of the first violation of subdivision 3, clause (7), need 
 30.19  only review the cause of the violation with a field service 
 30.20  representative within three days to maintain Grade A or 
 30.21  manufacturing grade permit and shipping status if all other 
 30.22  requirements of this section are met. 
 30.23     (f) Civil penalties collected under this section must be 
 30.24  deposited in the milk inspection services account established in 
 30.25  this chapter. 
 30.26     Sec. 30.  Minnesota Statutes 1998, section 32.394, 
 30.27  subdivision 9, is amended to read: 
 30.28     Subd. 9.  [PAYMENTS; REFUNDS; DISPOSITION.] Fees are 
 30.29  payable by a processor or marketing organization by July 1 of 
 30.30  each year for Grade A, and by January 1 of each year for 
 30.31  manufacturing grade, and if not paid within 30 days of the due 
 30.32  date, the service must be discontinued, and permission to market 
 30.33  manufacturing grade or Grade A milk or milk products or use the 
 30.34  Grade A label must be withdrawn.  A processor may terminate 
 30.35  payment and service without loss of the Grade A label if written 
 30.36  notice of that intention is given prior to the due date of the 
 31.1   payment of an assessment and if the continuous inspection of the 
 31.2   plant is assumed by a city whose milk control ordinance is 
 31.3   substantially equivalent to Minnesota law and rule and is 
 31.4   enforced with equal effectiveness.  If a farm discontinues the 
 31.5   production of milk within six months of the billing date, a 
 31.6   request for a refund based on inspection services not received 
 31.7   may be made by the processor or by the marketing organization on 
 31.8   behalf of its patrons.  This request must be made in writing by 
 31.9   July 1 for manufacturing grade, or by December 31 for Grade A, 
 31.10  and on approval by the commissioner refunds must be made to the 
 31.11  processor or marketing organization.  
 31.12     The fees for services performed by the activities of this 
 31.13  section must be deposited in the state treasury and constitute a 
 31.14  separate account to be known as the dairy services account, 
 31.15  which is hereby created.  All money in the account, including 
 31.16  interest earned, is appropriated to the commissioner to 
 31.17  administer this chapter. 
 31.18     Sec. 31.  Minnesota Statutes 1998, section 35.02, 
 31.19  subdivision 1, is amended to read: 
 31.20     Subdivision 1.  [MEMBERS; OFFICERS.] The board has five 
 31.21  members appointed by the governor with the advice and consent of 
 31.22  the senate, three of whom are producers of livestock in the 
 31.23  state, and two of whom are practicing veterinarians licensed in 
 31.24  Minnesota.  The dean of the college of veterinary medicine of 
 31.25  the University of Minnesota may serve as consultant to the board 
 31.26  without vote.  Appointments to fill unexpired terms must be made 
 31.27  from the classes to which the retiring members belong.  The 
 31.28  board shall elect a president and a vice-president from among 
 31.29  its members and a veterinarian licensed in Minnesota who is not 
 31.30  a member to be its executive ~~secretary~~ director for a term of 
 31.31  one year and until a successor qualifies.  The board shall set 
 31.32  the duties of the ~~secretary~~ director. 
 31.33     Sec. 32.  Minnesota Statutes 1998, section 35.04, is 
 31.34  amended to read: 
 31.35     35.04 [DUTY OF BOARDS OF HEALTH.] 
 31.36     Boards of health as defined in section 145A.02, subdivision 
 32.1   2, shall assist the board in the prevention, suppression, 
 32.2   control, and eradication of contagious and infectious dangerous 
 32.3   diseases among domestic animals when directed to do so by the 
 32.4   ~~secretary~~ director or any member of the board.  Two or more 
 32.5   local boards may be required in emergencies to cooperate in 
 32.6   giving assistance.  The rules of the state board prevail over 
 32.7   conflicting local board rules. 
 32.8      Sec. 33.  Minnesota Statutes 1998, section 35.05, is 
 32.9   amended to read: 
 32.10     35.05 [AUTHORITY OF STATE BOARD.] 
 32.11     (a) The state board may quarantine or kill any domestic 
 32.12  animal infected with, or which has been exposed to, a contagious 
 32.13  or infectious dangerous disease if it is necessary to protect 
 32.14  the health of the domestic animals of the state.  
 32.15     (b) The board may regulate or prohibit the arrival in and 
 32.16  departure from the state of infected or exposed animals and, in 
 32.17  case of violation of any rule or prohibition, may detain any 
 32.18  animal at its owner's expense.  The board may regulate or 
 32.19  prohibit the importation of domestic animals which, in its 
 32.20  opinion, may injure the health of Minnesota livestock.  
 32.21     (c) The board may implement the United States, Voluntary 
 32.22  Johne's Disease Herd Status Program for cattle. 
 32.23     (d) Rules adopted by the board under authority of this 
 32.24  chapter must be published in the State Register.  
 32.25     Sec. 34.  Minnesota Statutes 1998, section 35.08, is 
 32.26  amended to read: 
 32.27     35.08 [KILLING OF DISEASED ANIMALS.] 
 32.28     If the board decides upon the killing of an animal affected 
 32.29  with tuberculosis, paratuberculosis, or brucellosis, it shall 
 32.30  notify the animal's owner or keeper of the decision.  If the 
 32.31  board, through its executive ~~secretary~~ director, orders that an 
 32.32  animal may be transported for immediate slaughter to any 
 32.33  abattoir where the meat inspection division of the United States 
 32.34  Department of Agriculture maintains inspection, or where the 
 32.35  animal and plant health inspection service of the United States 
 32.36  Department of Agriculture or the board establishes field 
 33.1   postmortem inspection, the owner must receive the value of the 
 33.2   net salvage of the carcass. 
 33.3      Before the animal is removed from the premises of the 
 33.4   owner, the representative or authorized agent of the board must 
 33.5   agree with the owner in writing as to the value of the animal.  
 33.6   In the absence of an agreement, three competent, disinterested 
 33.7   persons, one appointed by the board, one by the owner, and a 
 33.8   third by the first two, shall appraise the animal at its full 
 33.9   replacement cost taking into consideration the purpose and use 
 33.10  of the animal. 
 33.11     The appraisement made under this section must be in 
 33.12  writing, signed by the appraisers, and certified by the board to 
 33.13  the commissioner of finance, who shall draw a warrant on the 
 33.14  state treasurer for the amount due the owner. 
 33.15     Sec. 35.  Minnesota Statutes 1998, section 35.09, 
 33.16  subdivision 2, is amended to read: 
 33.17     Subd. 2.  [EXCEPTIONS.] The owner of an animal is entitled 
 33.18  to the indemnity provided in subdivision 1, except in the 
 33.19  following cases: 
 33.20     (1) steers; 
 33.21     (2) animals which have not been kept in good faith for one 
 33.22  year or since their birth in the state; 
 33.23     (3) animals brought into the state, contrary to law or 
 33.24  rules of the board; 
 33.25     (4) animals diseased on arrival in the state; 
 33.26     (5) animals belonging to the United States; 
 33.27     (6) animals belonging to institutions maintained by the 
 33.28  state, a county, or a municipality; 
 33.29     (7) animals which the owner or claimant knew or should have 
 33.30  known were diseased at the time they were acquired; 
 33.31     (8) animals exposed to brucellosis through the owner's 
 33.32  negligence; 
 33.33     (9) animals which have been injected with brucellosis 
 33.34  vaccine, bacterin, or other preparations made from or through 
 33.35  the agency of Brucella Microorganisms unless it was done in 
 33.36  compliance with the rules of the board; 
 34.1      (10) animals belonging to a person who has received 
 34.2   indemnity as a result of a former inspection or tests and has 
 34.3   then introduced into the same herd any animals which have not 
 34.4   passed the tuberculin or brucellosis test; 
 34.5      (11) animals if the owner, agent, or person in possession 
 34.6   of them has not complied with the rules of the board with 
 34.7   respect to condemned animals; 
 34.8      (12) condemned animals which are not destroyed within 15 
 34.9   days after the date of appraisal, or for which the owner refuses 
 34.10  to sign the appraisal or report of the members of the appraisal 
 34.11  board, except that in extraordinary circumstances and in 
 34.12  meritorious cases and at the discretion of the executive 
 34.13  ~~secretary~~ director of the board the time limit of 15 days may be 
 34.14  extended an additional 15 days if the owner receives permission 
 34.15  from the executive ~~secretary~~ director within 15 days of the date 
 34.16  of appraisal; 
 34.17     (13) livestock affected with tuberculosis, 
 34.18  paratuberculosis, or brucellosis unless the entire herd of which 
 34.19  the affected livestock is a part, or from which the affected 
 34.20  livestock has originated, is examined and tested under the 
 34.21  supervision of the board, in order to determine if they are free 
 34.22  from the disease; 
 34.23     (14) livestock affected with tuberculosis, 
 34.24  paratuberculosis, or brucellosis unless the owner has carried 
 34.25  out the instructions of the board relating to cleaning, 
 34.26  disinfection, and rendering the stables and premises in a 
 34.27  sanitary condition within 15 days of the time of removal of the 
 34.28  animals from the premises, except when, because of inclement 
 34.29  weather or other extenuating circumstances, the time is extended 
 34.30  by the executive ~~secretary~~ director of the board; 
 34.31     (15) livestock affected with tuberculosis, 
 34.32  paratuberculosis, or brucellosis, if the owner has fed milk or 
 34.33  milk products derived from creameries which was not pasteurized 
 34.34  as required by state laws; and 
 34.35     (16) animals owned by a nonresident if neither the owner 
 34.36  nor the owner's agent breed livestock in Minnesota.  
 35.1      If, at any time, the annual appropriation for payment of 
 35.2   indemnities becomes exhausted as a result of condemnation and 
 35.3   slaughter of animals, the board shall discontinue making further 
 35.4   official tests or authorizing tests unless an owner signs a 
 35.5   waiver on blanks furnished by the board of payment of indemnity 
 35.6   for any animals that may be condemned as the result of a test 
 35.7   and inspection which releases the state from any obligation to 
 35.8   pay indemnity from any future appropriation. 
 35.9      Sec. 36.  Minnesota Statutes 1998, section 35.09, 
 35.10  subdivision 2a, is amended to read: 
 35.11     Subd. 2a.  [NONREACTORS; CATTLE INELIGIBLE FOR TEST.] The 
 35.12  board may condemn and appraise nonreactors to the brucellosis 
 35.13  test and exposed cattle not eligible to be tested from herds 
 35.14  affected with brucellosis and may pay the owner the difference 
 35.15  between the appraisal value and the salvage value up to $300 for 
 35.16  grade animals or $600 for purebred registered animals if the 
 35.17  board through its executive ~~secretary~~ director has determined 
 35.18  according to criteria adopted by the board that herd 
 35.19  depopulation is essential to the goal of bovine brucellosis 
 35.20  eradication.  Indemnity payable by the state must be reduced by 
 35.21  the amount paid by the United States Department of Agriculture.  
 35.22  No indemnity may be paid for steers. 
 35.23     Sec. 37.  Minnesota Statutes 1998, section 35.67, is 
 35.24  amended to read: 
 35.25     35.67 [RABIES INVESTIGATION.] 
 35.26     If the executive ~~secretary~~ director of the board of animal 
 35.27  health, or a board of health as defined in section 145A.02, 
 35.28  subdivision 2, receives a written complaint that rabies exists 
 35.29  in a town or city in the board's jurisdiction, the board of 
 35.30  health shall investigate, either personally or through 
 35.31  subordinate officers, the truth of the complaint.  A board of 
 35.32  health may also make an investigation and determination 
 35.33  independently, without having received a complaint.  The fact 
 35.34  that a board of health has investigated and determined that 
 35.35  rabies does not exist in a jurisdiction does not deprive the 
 35.36  executive ~~secretary~~ director of the board of animal health of 
 36.1   jurisdiction or authority to make an investigation and 
 36.2   determination with reference to the territory.  For the purposes 
 36.3   of sections 35.67 to 35.69, the jurisdiction of the 
 36.4   executive ~~secretary~~ director of the board of animal health is 
 36.5   the entire state.  
 36.6      Sec. 38.  Minnesota Statutes 1998, section 35.68, is 
 36.7   amended to read: 
 36.8      35.68 [RABIES PROCLAMATION.] 
 36.9      If a board of health as defined in section 145A.02, 
 36.10  subdivision 2, investigates and finds that rabies does exist in 
 36.11  a town or city the board of health shall make and file a 
 36.12  proclamation of the investigation and determination which 
 36.13  prohibits the owner or custodian of any dog from allowing the 
 36.14  dog to be at large within the town or city unless the dog is 
 36.15  effectively muzzled so that it cannot bite any other animal or 
 36.16  person. 
 36.17     If the executive ~~secretary~~ director of the board of animal 
 36.18  health, after investigation, has determined that rabies exists 
 36.19  in any territory in the state, similar proclamations must be 
 36.20  issued in all towns and cities within the territory or area in 
 36.21  which it is necessary to control the outbreak and prevent the 
 36.22  spread of the disease.  The proclamation must prohibit the owner 
 36.23  or custodian of any dog within the designated territory from 
 36.24  permitting or allowing the dog to be at large within the 
 36.25  territory unless the dog is effectively muzzled so that it 
 36.26  cannot bite any other animal or person. 
 36.27     All local peace officers and boards of health shall enforce 
 36.28  sections 35.67 to 35.69.  
 36.29     A proclamation issued by the board of health must be filed 
 36.30  with the clerk of the political subdivision responsible for the 
 36.31  board of health.  One issued by the executive ~~secretary~~ director 
 36.32  of the board of animal health must be filed with the clerk of 
 36.33  each town and city within the territory it covers. 
 36.34     Each officer with whom the proclamation is filed shall 
 36.35  publish a copy of it in one issue of a legal newspaper published 
 36.36  in the clerk's town or city if one is published there.  If no 
 37.1   newspaper is published there, the clerk must post a copy of the 
 37.2   proclamation in three public places.  Publication is at the 
 37.3   expense of the municipality.  
 37.4      Proof of publication must be by affidavit of the publisher 
 37.5   and proof of posting must be by the person doing the posting.  
 37.6   The affidavit must be filed with the proclamation.  The 
 37.7   proclamation is effective five days after the publication or 
 37.8   posting and remains effective for the period of time not 
 37.9   exceeding six months specified in it by the board of health 
 37.10  making the proclamation. 
 37.11     Sec. 39.  Minnesota Statutes 1998, section 35.82, 
 37.12  subdivision 1b, is amended to read: 
 37.13     Subd. 1b.  [CARCASSES FOR PET OR MINK FOOD.] (a) The board, 
 37.14  through its executive ~~secretary~~ director, may issue a permit to 
 37.15  the owner or operator of a pet food processing establishment, a 
 37.16  mink rancher, or a supplier of an establishment, located within 
 37.17  the boundaries of Minnesota, to transport the carcasses of 
 37.18  domestic animals that have died or have been killed, other than 
 37.19  by being slaughtered for human or animal consumption, over the 
 37.20  public highways to the establishment for pet food or mink food 
 37.21  purposes only.  The owners and operators of pet food processing 
 37.22  establishments or their suppliers and mink ranch operators 
 37.23  located in any adjacent state with which a reciprocal agreement 
 37.24  is in effect under subdivision 3 are not required to possess a 
 37.25  permit issued under this subdivision.  The permit is valid for 
 37.26  one year following the date of issue unless it is revoked. 
 37.27     (b) The owner or operator of a pet food processing plant or 
 37.28  mink ranch shall employ an official veterinarian.  A 
 37.29  veterinarian named in the permit application who is accepted by 
 37.30  the board to act as the official veterinarian is authorized to 
 37.31  act as its representative. 
 37.32     (c) Carcasses collected by owners or operators under permit 
 37.33  may be used for pet food or mink food purposes if the official 
 37.34  veterinarian examines them and finds them suitable for pet food 
 37.35  or mink food purposes. 
 37.36     (d) Carcasses not passed by the official veterinarian for 
 38.1   pet food or mink food purposes must be disposed of by a 
 38.2   rendering plant operating under permit from the board. 
 38.3      (e) The board must require pet food processing 
 38.4   establishments, owners and operators of mink ranches, and 
 38.5   suppliers of these establishments to conform to rules of the 
 38.6   board applicable to rendering plants within the state. 
 38.7      Sec. 40.  Minnesota Statutes 1998, section 35.82, 
 38.8   subdivision 2, is amended to read: 
 38.9      Subd. 2.  [DISPOSITION OF CARCASSES.] (a) Except as 
 38.10  provided in subdivision 1b and paragraph (d), every person 
 38.11  owning or controlling any domestic animal that has died or been 
 38.12  killed otherwise than by being slaughtered for human or animal 
 38.13  consumption, shall as soon as reasonably possible bury the 
 38.14  carcass at a depth adequate to prevent scavenging by other 
 38.15  animals in the ground or thoroughly burn it or dispose of it by 
 38.16  another method approved by the board as being effective for the 
 38.17  protection of public health and the control of livestock 
 38.18  diseases.  The board, through its executive ~~secretary~~ director, 
 38.19  may issue permits to owners of rendering plants located in 
 38.20  Minnesota which are operated and conducted as required by law, 
 38.21  to transport carcasses of domestic animals and fowl that have 
 38.22  died, or have been killed otherwise than by being slaughtered 
 38.23  for human or animal consumption, over the public highways to 
 38.24  their plants for rendering purposes in accordance with the rules 
 38.25  adopted by the board relative to transportation, rendering, and 
 38.26  other provisions the board considers necessary to prevent the 
 38.27  spread of disease.  The board may issue permits to owners of 
 38.28  rendering plants located in an adjacent state with which a 
 38.29  reciprocal agreement is in effect under subdivision 3. 
 38.30     (b) Carcasses collected by rendering plants under permit 
 38.31  may be used for pet food or mink food if the owner or operator 
 38.32  meets the requirements of subdivision 1b. 
 38.33     (c) An authorized employee or agent of the board may enter 
 38.34  private or public property and inspect the carcass of any 
 38.35  domestic animal that has died or has been killed other than by 
 38.36  being slaughtered for human or animal consumption.  Failure to 
 39.1   dispose of the carcass of any domestic animal within the period 
 39.2   specified by this subdivision is a public nuisance.  The board 
 39.3   may petition the district court of the county in which a carcass 
 39.4   is located for a writ requiring the abatement of the public 
 39.5   nuisance.  A civil action commenced under this paragraph does 
 39.6   not preclude a criminal prosecution under this section.  No 
 39.7   person may sell, offer to sell, give away, or convey along a 
 39.8   public road or on land the person does not own, the carcass of a 
 39.9   domestic animal when the animal died or was killed other than by 
 39.10  being slaughtered for human or animal consumption unless it is 
 39.11  done with a special permit pursuant to this section.  The 
 39.12  carcass or parts of a domestic animal that has died or has been 
 39.13  killed other than by being slaughtered for human or animal 
 39.14  consumption may be transported along a public road for a medical 
 39.15  or scientific purpose if the carcass is enclosed in a leakproof 
 39.16  container to prevent spillage or the dripping of liquid waste.  
 39.17  The board may adopt rules relative to the transportation of the 
 39.18  carcass of any domestic animal for a medical or scientific 
 39.19  purpose.  A carcass on a public thoroughfare may be transported 
 39.20  for burial or other disposition in accordance with this section. 
 39.21     No person who owns or controls diseased animals shall 
 39.22  negligently or willfully permit them to escape from that control 
 39.23  or to run at large. 
 39.24     (d) A sheep producer may compost sheep carcasses owned by 
 39.25  the producer on the producer's land without a permit and is 
 39.26  exempt from compost facility specifications contained in rules 
 39.27  of the board. 
 39.28     (e) The board shall develop best management practices for 
 39.29  dead animal disposal and the pollution control agency feedlot 
 39.30  program shall distribute them to livestock producers in the 
 39.31  state. 
 39.32     Sec. 41.  Minnesota Statutes 1998, section 35.82, 
 39.33  subdivision 3, is amended to read: 
 39.34     Subd. 3.  [RECIPROCITY.] The executive ~~secretary~~ director 
 39.35  of the board may enter into a reciprocal agreement on behalf of 
 39.36  this state with an adjacent state which provides for permits to 
 40.1   be issued to rendering plants, pet food processing 
 40.2   establishments or suppliers of establishments, and mink ranch 
 40.3   operators located in either state to transport carcasses to 
 40.4   their plants, establishments, or ranches over the public 
 40.5   highways of this state and the reciprocating state. 
 40.6      This subdivision applies if the adjacent state has in 
 40.7   effect standards and requirements which are the equivalent of 
 40.8   the standards and requirements of this state as established by 
 40.9   the board. 
 40.10     Sec. 42.  Minnesota Statutes 1998, section 35.92, 
 40.11  subdivision 5, is amended to read: 
 40.12     Subd. 5.  [SUBPOENAS.] The board of animal health through 
 40.13  its executive ~~secretary~~ director may issue subpoenas to compel 
 40.14  the attendance of witnesses or submission of books, documents, 
 40.15  and records affecting the authority or privilege granted by a 
 40.16  license, registration, certification, or permit issued under 
 40.17  this chapter or by the board or issued by the commissioner of 
 40.18  agriculture if agreed to by the commissioner. 
 40.19     Sec. 43.  Minnesota Statutes 1998, section 35.93, 
 40.20  subdivision 1, is amended to read: 
 40.21     Subdivision 1.  [ADMINISTRATIVE REMEDIES.] The board of 
 40.22  animal health may seek to remedy violations by authorizing the 
 40.23  executive ~~secretary~~ director to issue a written warning, 
 40.24  administrative meeting, cease and desist, stop-sale, or other 
 40.25  special order, seizure, stipulation, or agreement, if the board 
 40.26  determines that the remedy is in the public interest. 
 40.27     Sec. 44.  Minnesota Statutes 1998, section 41A.09, 
 40.28  subdivision 3a, is amended to read: 
 40.29     Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 40.30  shall make cash payments to producers of ethanol, anhydrous 
 40.31  alcohol, and wet alcohol located in the state.  These payments 
 40.32  shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 40.33  fermented in the state and produced at plants that have begun 
 40.34  production by June 30, 2000.  For the purpose of this 
 40.35  subdivision, an entity that holds a controlling interest in more 
 40.36  than one ethanol plant is considered a single producer.  The 
 41.1   amount of the payment for each producer's annual production is: 
 41.2      (1) except as provided in paragraph (b), for each gallon of 
 41.3   ethanol or anhydrous alcohol produced on or before June 30, 
 41.4   2000, or ten years after the start of production, whichever is 
 41.5   later, 20 cents per gallon; and 
 41.6      (2) for each gallon produced of wet alcohol on or before 
 41.7   June 30, 2000, or ten years after the start of production, 
 41.8   whichever is later, a payment in cents per gallon calculated by 
 41.9   the formula "alcohol purity in percent divided by five," and 
 41.10  rounded to the nearest cent per gallon, but not less than 11 
 41.11  cents per gallon. 
 41.12     The producer payments for anhydrous alcohol and wet alcohol 
 41.13  under this section may be paid to either the original producer 
 41.14  of anhydrous alcohol or wet alcohol or the secondary processor, 
 41.15  at the option of the original producer, but not to both. 
 41.16     (b) If the level of production at an ethanol plant 
 41.17  increases due to an increase in the production capacity of the 
 41.18  plant and the increased production begins by June 30, 2000, the 
 41.19  payment under paragraph (a), clause (1), applies to the 
 41.20  additional increment of production until ten years after the 
 41.21  increased production began.  Once a plant's production capacity 
 41.22  reaches 15,000,000 gallons per year, no additional increment 
 41.23  will qualify for the payment. 
 41.24     (c) The commissioner shall make payments to producers of 
 41.25  ethanol or wet alcohol in the amount of 1.5 cents for each 
 41.26  kilowatt hour of electricity generated using closed-loop biomass 
 41.27  in a cogeneration facility at an ethanol plant located in the 
 41.28  state.  Payments under this paragraph shall be made only for 
 41.29  electricity generated at cogeneration facilities that begin 
 41.30  operation by June 30, 2000.  The payments apply to electricity 
 41.31  generated on or before the date ten years after the producer 
 41.32  first qualifies for payment under this paragraph.  Total 
 41.33  payments under this paragraph in any fiscal year may not exceed 
 41.34  $750,000.  For the purposes of this paragraph: 
 41.35     (1) "closed-loop biomass" means any organic material from a 
 41.36  plant that is planted for the purpose of being used to generate 
 42.1   electricity or for multiple purposes that include being used to 
 42.2   generate electricity; and 
 42.3      (2) "cogeneration" means the combined generation of: 
 42.4      (i) electrical or mechanical power; and 
 42.5      (ii) steam or forms of useful energy, such as heat, that 
 42.6   are used for industrial, commercial, heating, or cooling 
 42.7   purposes. 
 42.8      (d) ~~Except for new production capacity approved under~~ 
 42.9   ~~paragraph (i), clause (1),~~ The total payments under paragraphs 
 42.10  (a) and (b) to all producers may not 
 42.11  exceed ~~$34,000,000~~ $38,000,000 in a fiscal year.  Total payments 
 42.12  under paragraphs (a) and (b) to a producer in a fiscal year may 
 42.13  not exceed $3,000,000. 
 42.14     (e) By the last day of October, January, April, and July, 
 42.15  each producer shall file a claim for payment for ethanol, 
 42.16  anhydrous alcohol, and wet alcohol production during the 
 42.17  preceding three calendar months.  A producer with more than one 
 42.18  plant shall file a separate claim for each plant.  A producer 
 42.19  shall file a separate claim for the original production capacity 
 42.20  of each plant and for each additional increment of production 
 42.21  that qualifies under paragraph (b).  A producer that files a 
 42.22  claim under this subdivision shall include a statement of the 
 42.23  producer's total ethanol, anhydrous alcohol, and wet alcohol 
 42.24  production in Minnesota during the quarter covered by the claim, 
 42.25  including anhydrous alcohol and wet alcohol produced or received 
 42.26  from an outside source.  A producer shall file a separate claim 
 42.27  for any amount claimed under paragraph (c).  For each claim and 
 42.28  statement of total ethanol, anhydrous alcohol, and wet alcohol 
 42.29  production filed under this subdivision, the volume of ethanol, 
 42.30  anhydrous alcohol, and wet alcohol production or amounts of 
 42.31  electricity generated using closed-loop biomass must be examined 
 42.32  by an independent certified public accountant in accordance with 
 42.33  standards established by the American Institute of Certified 
 42.34  Public Accountants. 
 42.35     (f) Payments shall be made November 15, February 15, May 
 42.36  15, and August 15.  A separate payment shall be made for each 
 43.1   claim filed.  The total quarterly payment to a producer under 
 43.2   this paragraph, excluding amounts paid under paragraph (c), may 
 43.3   not exceed $750,000.  ~~Except for new production capacity~~ 
 43.4   ~~approved under paragraph (i), clause (1),~~ If the total amount 
 43.5   for which all ~~other~~ producers are eligible in a quarter under 
 43.6   paragraphs (a) and (b) exceeds ~~$8,500,000~~ $10,000,000, the 
 43.7   commissioner shall make payments for production capacity that is 
 43.8   subject to this restriction in the order in which the portion of 
 43.9   production capacity covered by each claim went into production.  
 43.10     (g) If the total amount for which all producers are 
 43.11  eligible in a quarter under paragraph (c) exceeds the amount 
 43.12  available for payments, the commissioner shall make payments in 
 43.13  the order in which the plants covered by the claims began 
 43.14  generating electricity using closed-loop biomass. 
 43.15     (h) After July 1, 1997, new production capacity is only 
 43.16  eligible for payment under this subdivision if the commissioner 
 43.17  receives: 
 43.18     (1) an application for approval of the new production 
 43.19  capacity; 
 43.20     (2) an appropriate letter of long-term financial commitment 
 43.21  for construction of the new production capacity; and 
 43.22     (3) copies of all necessary permits for construction of the 
 43.23  new production capacity. 
 43.24     The commissioner may approve new production capacity based 
 43.25  on the order in which the applications are received.  
 43.26     (i) After April 22, 1998, the commissioner may only 
 43.27  approve~~:  (1) up to 12,000,000 gallons of new production~~ 
 43.28  ~~capacity at one plant that has not previously received approval~~ 
 43.29  ~~or payment for any production capacity; or (2)~~ new production 
 43.30  capacity at approved or existing plants not to exceed planned 
 43.31  expansions reported to the commissioner by February ~~1997~~ 1999.  
 43.32  The commissioner may not approve any new production capacity 
 43.33  after July 1, ~~1998~~ 1999.  
 43.34     (j) For the purposes of this subdivision "new production 
 43.35  capacity" means annual ethanol production capacity that was not 
 43.36  allowed under a permit issued by the pollution control agency 
 44.1   prior to July 1, 1997, or for which construction did not begin 
 44.2   prior to July 1, 1997. 
 44.3      Sec. 45.  Minnesota Statutes 1998, section 41D.02, 
 44.4   subdivision 2, is amended to read: 
 44.5      Subd. 2.  [ELEMENTARY AND SECONDARY AGRICULTURAL 
 44.6   EDUCATION.] The council may provide grants for: 
 44.7      (1) planning and establishment costs for elementary and 
 44.8   secondary agriculture education programs; 
 44.9      (2) new instructional and communication technologies; and 
 44.10     (3) curriculum updates. 
 44.11     Sec. 46.  Minnesota Statutes 1998, section 103F.515, 
 44.12  subdivision 2, is amended to read: 
 44.13     Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
 44.14  conservation reserve program if the land meets the requirements 
 44.15  of paragraphs (b) and (c).  
 44.16     (b) Land is eligible if the land: 
 44.17     (1) is marginal agricultural land; 
 44.18     (2) is adjacent to marginal agricultural land and is either 
 44.19  beneficial to resource protection or necessary for efficient 
 44.20  recording of the land description; 
 44.21     (3) consists of a drained wetland; 
 44.22     (4) is land that with a windbreak would be beneficial to 
 44.23  resource protection; 
 44.24     (5) is land in a sensitive groundwater area; 
 44.25     (6) is riparian land; 
 44.26     (7) is cropland or noncropland adjacent to restored 
 44.27  wetlands to the extent of up to four acres of cropland or one 
 44.28  acre of noncropland for each acre of wetland restored; 
 44.29     (8) is a woodlot on agricultural land; 
 44.30     (9) is abandoned building site on agricultural land, 
 44.31  provided that funds are not used for compensation of the value 
 44.32  of the buildings; or 
 44.33     (10) is land on a hillside used for pasture.  
 44.34     (c) Eligible land under paragraph (a) must: 
 44.35     (1) be owned by the landowner, or a parent or other blood 
 44.36  relative of the landowner, for at least one year before the date 
 45.1   of application; 
 45.2      (2) be at least five acres in size, except for a drained 
 45.3   wetland area, riparian area, windbreak, woodlot, or abandoned 
 45.4   building site, or be a whole field as defined by the United 
 45.5   States Agricultural Stabilization and Conservation Services; 
 45.6      (3) not be set aside, enrolled or diverted under another 
 45.7   federal or state government program unless enrollment in the 
 45.8   conservation reserve program would provide additional 
 45.9   conservation benefits or a longer term of enrollment than under 
 45.10  the current federal or state program; and 
 45.11     (4) have been in agricultural crop production for at least 
 45.12  two of the last five years before the date of application except 
 45.13  drained wetlands, riparian lands, woodlots, abandoned building 
 45.14  sites, or land on a hillside used for pasture. 
 45.15     (d) In selecting drained wetlands for enrollment in the 
 45.16  program, the highest priority must be given to wetlands with a 
 45.17  cropping history during the period 1976 to 1985. 
 45.18     (e) In selecting land for enrollment in the program, 
 45.19  highest priority must be given to permanent easements that are 
 45.20  consistent with the purposes stated in section 103F.505. 
 45.21     Sec. 47.  Minnesota Statutes 1998, section 156.001, 
 45.22  subdivision 2, is amended to read: 
 45.23     Subd. 2.  [ACCREDITED OR APPROVED COLLEGE OF VETERINARY 
 45.24  MEDICINE.] "Accredited or approved college of veterinary 
 45.25  medicine" means a veterinary college or division of a university 
 45.26  or college that offers the degree of doctor of veterinary 
 45.27  medicine or its equivalent and that conforms to the standards 
 45.28  required for accreditation or approval by the American 
 45.29  Veterinary Medical Association Council on Education. 
 45.30     Sec. 48.  Minnesota Statutes 1998, section 156.001, 
 45.31  subdivision 3, is amended to read: 
 45.32     Subd. 3.  [ANIMAL.] "Animal" does not include poultry ~~or~~ 
 45.33  ~~birds of any kind~~. 
 45.34     Sec. 49.  Minnesota Statutes 1998, section 156.001, is 
 45.35  amended by adding a subdivision to read: 
 45.36     Subd. 5a.  [FIRM.] "Firm" includes a corporation, limited 
 46.1   liability company, and limited liability partnership, wherever 
 46.2   incorporated, organized, or registered. 
 46.3      Sec. 50.  Minnesota Statutes 1998, section 156.01, 
 46.4   subdivision 3, is amended to read: 
 46.5      Subd. 3.  [OFFICERS.] The board shall elect from its number 
 46.6   a president and such other officers as are necessary, all from 
 46.7   within its membership.  One person may hold the offices of both 
 46.8   secretary and treasurer.  The board shall have a seal and the 
 46.9   power to subpoena witnesses, to administer oaths, and take 
 46.10  testimony.  It shall make, alter, or amend ~~such~~ rules ~~as may be~~ 
 46.11  that are necessary to carry this chapter into effect ~~the~~ 
 46.12  ~~provisions of this chapter~~.  It shall hold examinations for 
 46.13  applicants for license to engage in veterinary practice at a 
 46.14  time and place of its own choosing.  Notice of ~~such~~ an 
 46.15  examination ~~shall~~ must be posted 90 days before the date set for 
 46.16  ~~an~~ the examination in all veterinary schools approved by the 
 46.17  board in the state, and ~~shall~~ must be published in the ~~journal~~ 
 46.18  ~~of the American Veterinary Medical Association.~~  American 
 46.19  Association of Veterinary State Boards "Directory of Veterinary 
 46.20  Licensure Requirements."  The board may hold ~~such~~ other meetings 
 46.21  ~~as~~ it deems necessary; but no meeting shall exceed three days 
 46.22  duration. 
 46.23     Sec. 51.  Minnesota Statutes 1998, section 156.02, 
 46.24  subdivision 1, is amended to read: 
 46.25     Subdivision 1.  [LICENSE APPLICATION.] Application for a 
 46.26  license to practice veterinary medicine in this state shall be 
 46.27  made in writing to the board of veterinary medicine upon a form 
 46.28  furnished by the board, accompanied by satisfactory evidence 
 46.29  that the applicant is at least 18 years of age, is of good moral 
 46.30  character, and has one of the following: 
 46.31     (1) a diploma conferring the degree of doctor of veterinary 
 46.32  medicine, or an equivalent degree, from an accredited or 
 46.33  approved college of veterinary medicine; 
 46.34     (2) an ECFVG certificate; or 
 46.35     (3) a certificate from the dean of an accredited or 
 46.36  approved college of veterinary medicine stating that the 
 47.1   applicant is a student in good standing expecting to be 
 47.2   graduated at the completion of the current academic year of the 
 47.3   college in which the applicant is enrolled. 
 47.4      The application shall contain the information and material 
 47.5   required by subdivision 2 and any other information that the 
 47.6   board may, in its sound judgment, require.  The application 
 47.7   shall be filed with the board at least ~~45~~ 60 days before the 
 47.8   date of the examination.  If the board deems it advisable, it 
 47.9   may require that such application be verified by the oath of the 
 47.10  applicant. 
 47.11     Sec. 52.  Minnesota Statutes 1998, section 156.02, 
 47.12  subdivision 2, is amended to read: 
 47.13     Subd. 2.  [REQUIRED WITH APPLICATION.] Every application 
 47.14  shall contain the following information and material: 
 47.15     (1) the application fee set by the board in the form of a 
 47.16  check or money order payable to the board, which fee is not 
 47.17  returnable in the event permission to take the examination is 
 47.18  denied for good cause; 
 47.19     (2) a copy of a diploma from an accredited or approved 
 47.20  college of veterinary medicine or a certificate from the dean or 
 47.21  secretary of an accredited or approved college of veterinary 
 47.22  medicine showing the time spent in the school and the date when 
 47.23  the applicant was duly and regularly graduated or will duly and 
 47.24  regularly graduate or verification of ECFVG certification; 
 47.25     (3) affidavits of at least two veterinarians and three 
 47.26  adults who are not related to the applicant setting forth how 
 47.27  long a time, when, and under what circumstances they have known 
 47.28  the applicant, and any other facts as may be proper to enable 
 47.29  the board to determine the qualifications of the applicant; and 
 47.30     (4) if the applicant has served in the armed forces, a copy 
 47.31  of discharge papers. 
 47.32     Sec. 53.  Minnesota Statutes 1998, section 156.03, is 
 47.33  amended to read: 
 47.34     156.03 [EXAMINATION; PAYMENT.] 
 47.35     Upon filing the application and any other papers, 
 47.36  affidavits, or proof that the board of veterinary medicine may 
 48.1   require, together with the payment ~~to the board of a fee as set~~ 
 48.2   ~~by the board, the board, if satisfied, shall issue to the~~ 
 48.3   ~~applicant for license an order for examination.  Every applicant~~ 
 48.4   ~~for a license shall submit to a theoretical or practical~~ 
 48.5   ~~examination, or both, as designated by the board.  The~~ 
 48.6   ~~examination may be oral, or written, or both~~ of the application 
 48.7   fee and appropriate examination fee as set by the board, the 
 48.8   board shall issue to the applicant a permit to take the national 
 48.9   examination in veterinary medicine and the Minnesota Veterinary 
 48.10  Jurisprudence Examination.  All applicants must be evaluated 
 48.11  using an examination prescribed by the board.  A passing score 
 48.12  for the national examination must be the criterion referenced 
 48.13  passing score as determined by the National Board Examination 
 48.14  Committee. 
 48.15     Sec. 54.  Minnesota Statutes 1998, section 156.072, is 
 48.16  amended to read: 
 48.17     156.072 [NONRESIDENTS; LICENSES.] 
 48.18     Subdivision 1.  [APPLICATION.] A doctor of veterinary 
 48.19  medicine duly admitted to practice in any ~~of the other states or~~ 
 48.20  ~~territories or District of Columbia~~ state, commonwealth, 
 48.21  territory, or district of the United States or province of 
 48.22  Canada desiring permission to practice veterinary medicine in 
 48.23  this state shall submit an application to the board upon forms 
 48.24  prescribed by the board.  Upon proof of licensure to practice in 
 48.25  any ~~other state or territory or in the District of~~ 
 48.26  ~~Columbia~~ United States or Canadian jurisdiction and having been 
 48.27  actively engaged in practicing veterinary medicine therein, for 
 48.28  at least three of the five years next preceding the application, 
 48.29  or having been engaged in full time teaching of veterinary 
 48.30  medicine in an approved or accredited college for at least three 
 48.31  of the five years next preceding the application, or any 
 48.32  combination thereof, the national examination in veterinary 
 48.33  medicine may be waived, upon the recommendation of the board, 
 48.34  and the applicant be admitted to practice without examination.  
 48.35  However, the board may impose any other ~~tests as~~ examinations it 
 48.36  considers proper. 
 49.1      Subd. 2.  [REQUIRED WITH APPLICATION.] Such doctor of 
 49.2   veterinary medicine shall accompany the application by the 
 49.3   following: 
 49.4      (1) a copy of a diploma from an accredited or approved 
 49.5   college of veterinary medicine or certification from the dean, 
 49.6   registrar, or secretary of an accredited or approved college of 
 49.7   veterinary medicine attesting to the applicants graduation from 
 49.8   an accredited or approved college of veterinary medicine, or a 
 49.9   certificate of satisfactory completion of the ECFVG program. 
 49.10     (2) affidavits of two licensed practicing doctors of 
 49.11  veterinary medicine ~~of the state, territory or District of~~ 
 49.12  ~~Columbia so certifying~~ residing in the United States or Canadian 
 49.13  licensing jurisdiction in which the applicant is currently 
 49.14  practicing, attesting that they are well acquainted with ~~such~~ 
 49.15  the applicant, that the applicant is a person of good moral 
 49.16  character, and has been actively engaged in practicing or 
 49.17  teaching ~~as the case may be~~ in such ~~state, territory, or~~ 
 49.18  ~~District of Columbia~~ jurisdiction for the period above 
 49.19  prescribed; 
 49.20     ~~(2)~~ (3) a certificate from the regulatory agency having 
 49.21  jurisdiction over the conduct of practice of veterinary medicine 
 49.22  that such applicant is in good standing and is not the subject 
 49.23  of disciplinary action or pending disciplinary action; 
 49.24     ~~(3)~~ (4) a certificate from all other jurisdictions in which 
 49.25  the applicant holds a currently active license or held a license 
 49.26  within the past ten years, stating that the applicant is and was 
 49.27  in good standing and has not been subject to disciplinary 
 49.28  action; ~~and~~ 
 49.29     ~~(4)~~ (5) in lieu of clauses (3) and (4), certification from 
 49.30  the Veterinary Information Verification Agency that the 
 49.31  applicant's licensure is in good standing; 
 49.32     (6) a fee as set by the board in form of check or money 
 49.33  order payable to the board, no part of which shall be refunded 
 49.34  should the application be denied; 
 49.35     (7) score reports on previously taken national examinations 
 49.36  in veterinary medicine, certified by the Veterinary Information 
 50.1   Verification Agency; and 
 50.2      (8) if requesting waiver of examination, provide evidence 
 50.3   of meeting licensure requirements in the state of the 
 50.4   applicant's original licensure that were substantially equal to 
 50.5   the requirements for licensure in Minnesota in existence at that 
 50.6   time. 
 50.7      Subd. 3.  [EXAMINATION.] A doctor of veterinary medicine 
 50.8   duly admitted to practice in any ~~of the other states or~~ 
 50.9   ~~territories or in the District of Columbia~~ state, commonwealth, 
 50.10  territory, or district of the United States or province of 
 50.11  Canada desiring admission to practice in this state but who has 
 50.12  not been actively engaged in the practice thereof for at least 
 50.13  three of the preceding five years must be examined for admission 
 50.14  in accordance with the requirements prescribed herein for those 
 50.15  not admitted to practice anywhere. 
 50.16     Subd. 4.  [TEMPORARY PERMIT.] The board may issue without 
 50.17  examination a temporary permit to practice veterinary medicine 
 50.18  in this state to a person who has submitted an application 
 50.19  approved by the board for license pending examination, and holds 
 50.20  a doctor of veterinary medicine degree or an equivalent degree 
 50.21  from an approved or accredited ~~veterinary~~ college of veterinary 
 50.22  medicine or an ECFVG certification.  The temporary permit shall 
 50.23  expire the day after publication of the notice of results of the 
 50.24  first examination given after the permit is issued.  No 
 50.25  temporary permit may be issued to any applicant who has 
 50.26  previously failed the national examination ~~in this state or in~~ 
 50.27  ~~any other state, territory, or district of the United States or~~ 
 50.28  ~~a foreign country~~ and is currently not licensed in any licensing 
 50.29  jurisdiction of the United States or Canada or to any person 
 50.30  whose license has been revoked or suspended or who is currently 
 50.31  subject to a disciplinary order in any licensing jurisdiction of 
 50.32  the United States or Canada. 
 50.33     Sec. 55.  [156.074] [TEMPORARY LICENSE.] 
 50.34     A graduate of a nonaccredited or approved college of 
 50.35  veterinary medicine, who has satisfactorily completed the fourth 
 50.36  year of clinical study at an approved or accredited college of 
 51.1   veterinary medicine and has successfully passed the national 
 51.2   examination in veterinary medicine and the Minnesota Veterinary 
 51.3   Jurisprudence Examination, and is enrolled in the ECFVG program, 
 51.4   may be granted a temporary license.  The holder of a temporary 
 51.5   license issued under these provisions must practice under the 
 51.6   supervision of a Minnesota licensed veterinarian.  The temporary 
 51.7   license is valid until the candidate obtains ECFVG certification 
 51.8   or for a maximum of two years from the date of issue. 
 51.9      Sec. 56.  Minnesota Statutes 1998, section 156.10, is 
 51.10  amended to read: 
 51.11     156.10 [UNLAWFUL PRACTICE WITHOUT LICENSE OR PERMIT; GROSS 
 51.12  MISDEMEANOR.] 
 51.13     It ~~shall be unlawful~~ is a gross misdemeanor for any person 
 51.14  to practice veterinary medicine in the state without having 
 51.15  first secured a veterinary license or temporary permit, as 
 51.16  provided in this chapter~~, and any person violating the~~ 
 51.17  ~~provisions of this section shall be guilty of a gross~~ 
 51.18  ~~misdemeanor and punished therefor according to the laws of the~~ 
 51.19  ~~state~~. 
 51.20     Sec. 57.  Minnesota Statutes 1998, section 156.11, is 
 51.21  amended to read: 
 51.22     156.11 [~~CORPORATIONS~~ FIRMS NOT TO PRACTICE.] 
 51.23     (a) It ~~shall be~~ is unlawful in ~~the state of~~ Minnesota for 
 51.24  any ~~corporation~~ firm, other than one organized pursuant to 
 51.25  chapter ~~319A or~~ 319B, to practice veterinary medicine, or to 
 51.26  hold itself out or advertise itself in any way as being entitled 
 51.27  to practice veterinary medicine, or to receive ~~the fees, or~~ 
 51.28  ~~portions of fees, or gifts or other emoluments or~~ 
 51.29  ~~benefits~~ compensation derived from the practice of veterinary 
 51.30  medicine~~,~~ or the performance of veterinary services by any 
 51.31  person, whether ~~such~~ that person ~~be~~ is licensed to practice 
 51.32  veterinary medicine or not.  Any ~~corporation~~ firm violating the 
 51.33  provisions of this section ~~shall be~~ is guilty of a gross 
 51.34  misdemeanor and must be fined not more than $3,000 for each 
 51.35  offense~~, and~~.  Each day that this ~~chapter~~ section is violated 
 51.36  ~~shall be considered~~ is a separate offense. 
 52.1      (b) Notwithstanding section 319B.08, a veterinary medical 
 52.2   practice firm has 12 months after the death of an owner before 
 52.3   all of the owner's ownership interest must be acquired by the 
 52.4   practice, by persons permitted to own the ownership interest, or 
 52.5   by some combination. 
 52.6      Sec. 58.  Minnesota Statutes 1998, section 156.12, 
 52.7   subdivision 2, is amended to read: 
 52.8      Subd. 2.  [AUTHORIZED ACTIVITIES.] No provision of this 
 52.9   chapter shall be construed to prohibit: 
 52.10     (a) a person from rendering necessary gratuitous assistance 
 52.11  in the treatment of any animal when the assistance does not 
 52.12  amount to prescribing, testing for, or diagnosing, operating, or 
 52.13  vaccinating and when the attendance of a licensed veterinarian 
 52.14  cannot be procured; 
 52.15     (b) a person who is a regular student in an accredited or 
 52.16  approved college of veterinary medicine from performing duties 
 52.17  or actions assigned by instructors or preceptors or working 
 52.18  under the direct supervision of a licensed veterinarian; 
 52.19     (c) a veterinarian regularly licensed in another 
 52.20  jurisdiction from consulting with a licensed veterinarian in 
 52.21  this state; 
 52.22     (d) the owner of an animal and the owner's regular employee 
 52.23  from caring for and ~~treating~~ administering to the animal 
 52.24  belonging to the owner, except where the ownership of the animal 
 52.25  was transferred for purposes of circumventing this chapter; 
 52.26     (e) veterinarians employed by the University of Minnesota 
 52.27  from performing their duties with the college of veterinary 
 52.28  medicine, college of agriculture, agricultural experiment 
 52.29  station, agricultural extension service, medical school, school 
 52.30  of public health, or other unit within the university; or a 
 52.31  person from lecturing or giving instructions or demonstrations 
 52.32  at the university or in connection with a continuing education 
 52.33  course or seminar to veterinarians; 
 52.34     (f) any person from selling or applying any pesticide, 
 52.35  insecticide or herbicide; 
 52.36     (g) any person from engaging in bona fide scientific 
 53.1   research or investigations which reasonably requires 
 53.2   experimentation involving animals; 
 53.3      (h) any employee of a licensed veterinarian from performing 
 53.4   duties other than diagnosis, prescription or surgical correction 
 53.5   under the direction and supervision of the veterinarian, who 
 53.6   shall be responsible for the performance of the employee; 
 53.7      (i) a graduate of a foreign college of veterinary medicine 
 53.8   from working under the direct personal instruction, control, or 
 53.9   supervision of a veterinarian faculty member of the College of 
 53.10  Veterinary Medicine, University of Minnesota in order to 
 53.11  complete the requirements necessary to obtain an ECFVG 
 53.12  certificate. 
 53.13     Sec. 59.  Minnesota Statutes 1998, section 156.12, 
 53.14  subdivision 4, is amended to read: 
 53.15     Subd. 4.  [TITLES.] It ~~shall be~~ is unlawful for a person 
 53.16  who has not received a professional degree from an accredited or 
 53.17  approved college of veterinary medicine, or ECFVG certification, 
 53.18  to use any of the following titles or designations:  Veterinary, 
 53.19  veterinarian, animal doctor, animal surgeon, animal 
 53.20  dentist, animal chiropractor, animal acupuncturist, or any other 
 53.21  title, designation, word, letter, abbreviation, sign, card, or 
 53.22  device tending to indicate that the person is qualified to 
 53.23  practice veterinary medicine. 
 53.24     Sec. 60.  Minnesota Statutes 1998, section 216B.2424, is 
 53.25  amended by adding a subdivision to read: 
 53.26     Subd. 6.  [FUEL SUPPLY CONTRACT.] Notwithstanding any other 
 53.27  provision of this section, a public utility may satisfy up to 75 
 53.28  megawatts of the mandate in subdivision 5 by converting power 
 53.29  purchase agreements entered into to satisfy that mandate and 
 53.30  executed prior to March 15, 1999, into fuel supply agreements 
 53.31  between the same parties. 
 53.32     Sec. 61.  Minnesota Statutes 1998, section 239.791, 
 53.33  subdivision 1, is amended to read: 
 53.34     Subdivision 1.  [MINIMUM OXYGEN CONTENT REQUIRED.] Except 
 53.35  as provided in subdivisions 10 to ~~12~~ 14, a person responsible 
 53.36  for the product shall comply with the following requirements: 
 54.1      (a) After October 1, 1995, gasoline sold or offered for 
 54.2   sale at any time in a carbon monoxide control area must contain 
 54.3   at least 2.7 percent oxygen by weight. 
 54.4      (b) After October 1, 1997, all gasoline sold or offered for 
 54.5   sale in Minnesota must contain at least 2.7 percent oxygen by 
 54.6   weight. 
 54.7      Sec. 62.  Minnesota Statutes 1998, section 239.791, 
 54.8   subdivision 12, is amended to read: 
 54.9      Subd. 12.  [EXEMPTION FOR COLLECTOR VEHICLE AND OFF-ROAD 
 54.10  USE.] (a) ~~Except during a carbon monoxide control period in a~~ 
 54.11  ~~carbon monoxide control area,~~ A person responsible for the 
 54.12  product may offer for sale, sell, or dispense at a retail 
 54.13  gasoline station for use in collector vehicles or vehicles 
 54.14  eligible to be licensed as collector vehicles, off-road 
 54.15  vehicles, motorcycles, boats, snowmobiles, or small engines, 
 54.16  gasoline that is not oxygenated in accordance with subdivision 1 
 54.17  if the person meets the conditions in paragraphs (b) 
 54.18  to ~~(d)~~ (e).  If the nonoxygenated gasoline is for use in a small 
 54.19  engine, it must be dispensed into a can with a capacity of six 
 54.20  or fewer gallons. 
 54.21     (b) The nonoxygenated gasoline must be unleaded premium 
 54.22  grade as defined in section 239.751, subdivision 4. 
 54.23     (c) No more than one storage tank on the premises of the 
 54.24  retail gasoline station may be used for storage of the 
 54.25  nonoxygenated gasoline offered for sale, sold, or dispensed by 
 54.26  the station. 
 54.27     (d) The pump stands must be posted with a permanent notice 
 54.28  stating:  "NONOXYGENATED GASOLINE.  FOR USE IN COLLECTOR 
 54.29  VEHICLES OR VEHICLES ELIGIBLE TO BE LICENSED AS COLLECTOR 
 54.30  VEHICLES, OFF-ROAD VEHICLES, MOTORCYCLES, BOATS, SNOWMOBILES, OR 
 54.31  SMALL ENGINES ONLY." 
 54.32     (e) A retail gasoline station that sells or offers for sale 
 54.33  nonoxygenated premium grade gasoline under this subdivision must 
 54.34  annually report to the division of weights and measures, 
 54.35  department of public service, on forms provided by the division, 
 54.36  the total number of gallons of nonoxygenated gasoline sold.  
 55.1   Data submitted to the department under this paragraph are 
 55.2   nonpublic data as defined in section 13.02, subdivision 9. 
 55.3      Sec. 63.  Minnesota Statutes 1998, section 239.791, is 
 55.4   amended by adding a subdivision to read: 
 55.5      Subd. 13.  [EXEMPTION FOR CERTAIN RIPARIAN LANDOWNERS.] (a) 
 55.6   A person responsible for the product may offer for sale, sell, 
 55.7   and deliver directly to a bulk fuel storage tank gasoline that 
 55.8   is not oxygenated in accordance with subdivision 1 if the 
 55.9   conditions in paragraphs (b) to (e) are met. 
 55.10     (b) The nonoxygenated gasoline must be unleaded premium 
 55.11  grade as defined in section 239.751, subdivision 4. 
 55.12     (c) The bulk fuel storage tank must be stationary or 
 55.13  permanent. 
 55.14     (d) The bulk fuel storage tank must be under the control of 
 55.15  an owner of littoral or riparian property and located on that 
 55.16  littoral or riparian property. 
 55.17     (e) The nonoxygenated gasoline must be purchased for use in 
 55.18  vehicles that would qualify for an exemption under subdivision 
 55.19  12, paragraph (a). 
 55.20     Sec. 64.  Minnesota Statutes 1998, section 239.791, is 
 55.21  amended by adding a subdivision to read: 
 55.22     Subd. 14.  [EXEMPTION FOR AIRCRAFT OPERATORS.] A person 
 55.23  responsible for the product may offer for sale, sell, and 
 55.24  deliver directly to a bulk fuel storage tank gasoline that is 
 55.25  not oxygenated in accordance with subdivision 1 for use in 
 55.26  aircraft if the nonoxygenated gasoline is unleaded premium grade 
 55.27  as defined in section 239.751, subdivision 4. 
 55.28     Sec. 65.  Minnesota Statutes 1998, section 500.24, 
 55.29  subdivision 2, is amended to read: 
 55.30     Subd. 2.  [DEFINITIONS.] The definitions in this 
 55.31  subdivision apply to this section. 
 55.32     (a) "Farming" means the production of (1) agricultural 
 55.33  products; (2) livestock or livestock products; (3) milk or milk 
 55.34  products; or (4) fruit or other horticultural products.  It does 
 55.35  not include the processing, refining, or packaging of said 
 55.36  products, nor the provision of spraying or harvesting services 
 56.1   by a processor or distributor of farm products.  It does not 
 56.2   include the production of timber or forest products, the 
 56.3   production of poultry or poultry products, or the feeding and 
 56.4   caring for livestock that are delivered to a corporation for 
 56.5   slaughter or processing for up to 20 days before slaughter or 
 56.6   processing. 
 56.7      (b) "Family farm" means an unincorporated farming unit 
 56.8   owned by one or more persons residing on the farm or actively 
 56.9   engaging in farming. 
 56.10     (c) "Family farm corporation" means a corporation founded 
 56.11  for the purpose of farming and the ownership of agricultural 
 56.12  land in which the majority of the voting stock is held by and 
 56.13  the majority of the stockholders are persons or the spouses of 
 56.14  persons related to each other within the third degree of kindred 
 56.15  according to the rules of the civil law, and at least one of 
 56.16  said related persons is residing on or actively operating the 
 56.17  farm, and none of whose stockholders are corporations; provided 
 56.18  that a family farm corporation shall not cease to qualify as 
 56.19  such hereunder by reason of any devise or bequest of shares of 
 56.20  voting stock. 
 56.21     (d) "Authorized farm corporation" means a corporation 
 56.22  meeting the following standards: 
 56.23     (1) it has no more than five shareholders; 
 56.24     (2) all its shareholders, other than any estate, are 
 56.25  natural persons; 
 56.26     (3) it does not have more than one class of shares; 
 56.27     (4) its revenue from rent, royalties, dividends, interest, 
 56.28  and annuities does not exceed 20 percent of its gross receipts; 
 56.29     (5) shareholders holding 51 percent or more of the interest 
 56.30  in the corporation reside on the farm or are actively engaging 
 56.31  in farming; 
 56.32     (6) it does not, directly or indirectly, own or otherwise 
 56.33  have an interest in any title to more than 1,500 acres of 
 56.34  agricultural land; and 
 56.35     (7) none of its shareholders are shareholders in other 
 56.36  authorized farm corporations that directly or indirectly in 
 57.1   combination with the corporation own more than 1,500 acres of 
 57.2   agricultural land. 
 57.3      (e) "Authorized livestock farm corporation" means a 
 57.4   corporation formed for the production of livestock and meeting 
 57.5   the following standards: 
 57.6      (1) it is engaged in the production of livestock other than 
 57.7   dairy cattle; 
 57.8      (2) all its shareholders, other than any estate, are 
 57.9   natural persons or family farm corporations; 
 57.10     (3) it does not have more than one class of shares; 
 57.11     (4) its revenue from rent, royalties, dividends, interest, 
 57.12  and annuities does not exceed 20 percent of its gross receipts; 
 57.13     (5) shareholders holding 75 percent or more of the control, 
 57.14  financial, and capital investment in the corporation are farmers 
 57.15  residing in Minnesota and at least 51 percent of the required 
 57.16  percentage of farmers are actively engaged in livestock 
 57.17  production; 
 57.18     (6) it does not, directly or indirectly, own or otherwise 
 57.19  have an interest in any title to more than 1,500 acres of 
 57.20  agricultural land; and 
 57.21     (7) none of its shareholders are shareholders in other 
 57.22  authorized farm corporations that directly or indirectly in 
 57.23  combination with the corporation own more than 1,500 acres of 
 57.24  agricultural land. 
 57.25     (f) "Agricultural land" means real estate used for farming 
 57.26  or capable of being used for farming in this state. 
 57.27     (g) "Pension or investment fund" means a pension or 
 57.28  employee welfare benefit fund, however organized, a mutual fund, 
 57.29  a life insurance company separate account, a common trust of a 
 57.30  bank or other trustee established for the investment and 
 57.31  reinvestment of money contributed to it, a real estate 
 57.32  investment trust, or an investment company as defined in United 
 57.33  States Code, title 15, section 80a-3.  
 57.34     (h) "Farm homestead" means a house including adjoining 
 57.35  buildings that has been used as part of a farming operation or 
 57.36  is part of the agricultural land used for a farming operation. 
 58.1      (i) "Family farm partnership" means a limited partnership 
 58.2   formed for the purpose of farming and the ownership of 
 58.3   agricultural land in which the majority of the interests in the 
 58.4   partnership is held by and the majority of the partners are 
 58.5   persons or the spouses of persons related to each other within 
 58.6   the third degree of kindred according to the rules of the civil 
 58.7   law, at least one of the related persons is residing on or 
 58.8   actively operating the farm, and none of the partners are 
 58.9   corporations.  A family farm partnership does not cease to 
 58.10  qualify as a family farm partnership because of a devise or 
 58.11  bequest of interest in the partnership.  
 58.12     (j) "Authorized farm partnership" means a limited 
 58.13  partnership meeting the following standards:  
 58.14     (1) it has been issued a certificate from the secretary of 
 58.15  state or is registered with the county recorder and farming and 
 58.16  ownership of agricultural land is stated as a purpose or 
 58.17  character of the business; 
 58.18     (2) no more than five partners; 
 58.19     (3) all its partners, other than any estate, are natural 
 58.20  persons; 
 58.21     (4) its revenue from rent, royalties, dividends, interest, 
 58.22  and annuities do not exceed 20 percent of its gross receipts; 
 58.23     (5) its general partners hold at least 51 percent of the 
 58.24  interest in the land assets of the partnership and reside on the 
 58.25  farm or are actively engaging in farming not more than 1,500 
 58.26  acres as a general partner in an authorized limited partnership; 
 58.27     (6) its limited partners do not participate in the business 
 58.28  of the limited partnership including operating, managing, or 
 58.29  directing management of farming operations; 
 58.30     (7) it does not, directly or indirectly, own or otherwise 
 58.31  have an interest in any title to more than 1,500 acres of 
 58.32  agricultural land; and 
 58.33     (8) none of its limited partners are limited partners in 
 58.34  other authorized farm partnerships that directly or indirectly 
 58.35  in combination with the partnership own more than 1,500 acres of 
 58.36  agricultural land.  
 59.1      (k) "Farmer" means a natural person who regularly 
 59.2   participates in physical labor or operations management in the 
 59.3   person's farming operation and files "Schedule F" as part of the 
 59.4   person's annual Form 1040 filing with the United States Internal 
 59.5   Revenue Service. 
 59.6      (l) "Actively engaged in livestock production" means 
 59.7   performing day-to-day physical labor or day-to-day operations 
 59.8   management that significantly contributes to livestock 
 59.9   production and the functioning of a livestock operation. 
 59.10     (m) "Research or experimental farm" means a corporation, 
 59.11  limited partnership, or pension or investment fund that owns or 
 59.12  operates agricultural land for research or experimental 
 59.13  purposes, provided that any commercial sales from the operation 
 59.14  are incidental to the research or experimental objectives of the 
 59.15  corporation.  A corporation, limited partnership, or pension or 
 59.16  investment fund seeking initial approval by the commissioner to 
 59.17  operate agricultural land for research or experimental purposes 
 59.18  must first submit to the commissioner a prospectus or proposal 
 59.19  of the intended method of operation containing information 
 59.20  required by the commissioner including a copy of any operational 
 59.21  contract with individual participants. 
 59.22     (n) "Breeding stock farm" means a corporation or limited 
 59.23  partnership that owns land for the purpose of raising breeding 
 59.24  stock, including embryos, for resale to farmers or for the 
 59.25  purpose of growing seed, wild rice, nursery plants, or sod.  An 
 59.26  entity that is organized to raise livestock other than dairy 
 59.27  cattle under this paragraph that does not qualify as an 
 59.28  authorized farm corporation must:  
 59.29     (1) sell all castrated animals to be fed out or finished to 
 59.30  farming operations that are neither directly nor indirectly 
 59.31  owned by the business entity operating the breeding stock 
 59.32  operation; and 
 59.33     (2) report its total production and sales annually to the 
 59.34  commissioner.  
 59.35     (o) "Aquatic farm" means a corporation or limited 
 59.36  partnership that owns or leases agricultural land as a necessary 
 60.1   part of an aquatic farm as defined in section 17.47, subdivision 
 60.2   3.  
 60.3      (p) "Religious farm" means a corporation formed primarily 
 60.4   for religious purposes whose sole income is derived from 
 60.5   agriculture.  
 60.6      (q) "Utility corporation" means a corporation regulated 
 60.7   under Minnesota Statutes 1974, chapter 216B, that owns 
 60.8   agricultural land for purposes described in that chapter, or an 
 60.9   electric generation or transmission cooperative that owns 
 60.10  agricultural land for use in its business if the land is not 
 60.11  used for farming except under lease to a family farm unit, a 
 60.12  family farm corporation, or a family farm partnership.  
 60.13     (r) "Benevolent trust" means a pension fund or family trust 
 60.14  established by the owners of a family farm, authorized farm 
 60.15  corporation, authorized livestock farm corporation, or family 
 60.16  farm corporation that holds an interest in title to agricultural 
 60.17  land on which one or more of those owners or shareholders have 
 60.18  resided or have been actively engaged in farming as required by 
 60.19  paragraph (b), (c), (d), or (e). 
 60.20     (s) "Development organization" means a corporation, limited 
 60.21  partnership, or pension or investment fund that owns 
 60.22  agricultural land for which the corporation, limited 
 60.23  partnership, or pension or investment fund has documented plans 
 60.24  to use and subsequently uses the land within six years from the 
 60.25  date of purchase for a specific nonfarming purpose, or if the 
 60.26  land is zoned nonagricultural, or if the land is located within 
 60.27  an incorporated area.  A corporation, limited partnership, or 
 60.28  pension or investment fund may hold agricultural land in the 
 60.29  amount necessary for its nonfarm business operation; provided, 
 60.30  however, that pending the development of agricultural land for 
 60.31  nonfarm purposes, the land may not be used for farming except 
 60.32  under lease to a family farm unit, a family farm corporation, an 
 60.33  authorized farm corporation, an authorized livestock farm 
 60.34  corporation, a family farm partnership, or an authorized farm 
 60.35  partnership, or except when controlled through ownership, 
 60.36  options, leaseholds, or other agreements by a corporation that 
 61.1   has entered into an agreement with the United States under the 
 61.2   New Community Act of 1968 (Title IV of the Housing and Urban 
 61.3   Development Act of 1968, United States Code, title 42, sections 
 61.4   3901 to 3914) as amended, or a subsidiary or assign of such a 
 61.5   corporation.  
 61.6      (t) "Exempt land" means agricultural land owned or leased 
 61.7   by a corporation as of May 20, 1973, agricultural land owned or 
 61.8   leased by a pension or investment fund as of May 12, 1981, or 
 61.9   agricultural land owned or leased by a limited partnership as of 
 61.10  May 1, 1988, including the normal expansion of that ownership at 
 61.11  a rate not to exceed 20 percent of the amount of land owned as 
 61.12  of May 20, 1973, for a corporation; May 12, 1981, for a pension 
 61.13  or investment fund; or May 1, 1988, for a limited partnership, 
 61.14  measured in acres, in any five-year period, and including 
 61.15  additional ownership reasonably necessary to meet the 
 61.16  requirements of pollution control rules.  A corporation, limited 
 61.17  partnership, or pension or investment fund that is eligible to 
 61.18  own or lease agricultural land under this section prior to May 
 61.19  1997 may continue to own or lease agricultural land subject to 
 61.20  the same conditions and limitations as previously allowed.  
 61.21     (u) "Gifted land" means agricultural land acquired as a 
 61.22  gift, either by grant or devise, by an educational, religious, 
 61.23  or charitable nonprofit corporation, limited partnership, or 
 61.24  pension or investment fund if all land so acquired is disposed 
 61.25  of within ten years after acquiring the title.  
 61.26     (v) "Repossessed land" means agricultural land acquired by 
 61.27  a corporation, limited partnership, or pension or investment 
 61.28  fund by process of law in the collection of debts, or by any 
 61.29  procedure for the enforcement of a lien or claim on the land, 
 61.30  whether created by mortgage or otherwise if all land so acquired 
 61.31  is disposed of within five years after acquiring the title.  The 
 61.32  five-year limitation is a covenant running with the title to the 
 61.33  land against any grantee, assignee, or successor of the pension 
 61.34  or investment fund, corporation, or limited partnership.  The 
 61.35  land so acquired must not be used for farming during the 
 61.36  five-year period, except under a lease to a family farm unit, a 
 62.1   family farm corporation, an authorized farm corporation, an 
 62.2   authorized livestock farm corporation, a family farm 
 62.3   partnership, or an authorized farm partnership.  Notwithstanding 
 62.4   the five-year divestiture requirement under this paragraph, a 
 62.5   financial institution may continue to own the agricultural land 
 62.6   if the agricultural land is leased to the immediately preceding 
 62.7   former owner, but must dispose of the agricultural land within 
 62.8   ten years of acquiring the title.  Livestock acquired by a 
 62.9   pension or investment fund, corporation, or limited partnership 
 62.10  in the collection of debts, or by a procedure for the 
 62.11  enforcement of lien or claim on the livestock whether created by 
 62.12  security agreement or otherwise after August 1, 1994, must be 
 62.13  sold or disposed of within one full production cycle for the 
 62.14  type of livestock acquired or 18 months after the livestock is 
 62.15  acquired, whichever is later.  
 62.16     (w) "Commissioner" means the commissioner of agriculture.  
 62.17     (x) "Demonstration corporation" means a nonprofit 
 62.18  corporation organized under state nonprofit corporation law and 
 62.19  formed primarily for the purpose of demonstrating historical 
 62.20  farming practices. 
 62.21     Sec. 66.  Minnesota Statutes 1998, section 500.24, 
 62.22  subdivision 3, is amended to read: 
 62.23     Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
 62.24  CORPORATIONS RESTRICTED.] No corporation, limited liability 
 62.25  company, pension or investment fund, or limited partnership 
 62.26  shall engage in farming; nor shall any corporation, limited 
 62.27  liability company, pension or investment fund, or limited 
 62.28  partnership, directly or indirectly, own, acquire, or otherwise 
 62.29  obtain any interest, in agricultural land other than a bona fide 
 62.30  encumbrance taken for purposes of security.  This subdivision 
 62.31  does not apply to general partnerships.  This subdivision does 
 62.32  not apply to any agricultural land, corporation, limited 
 62.33  partnership, or pension or investment fund that meet any of the 
 62.34  definitions in subdivision 2, paragraphs (b) to (e), (i), (j), 
 62.35  ~~and~~ (m) to (v), and (x), has a conservation plan prepared for 
 62.36  the agricultural land, and reports as required under subdivision 
 63.1   4. 
 63.2      Sec. 67.  [AGRICULTURAL PRODUCER CONTRACTS; ROUNDTABLE ON 
 63.3   CONTRACT FARMING.] 
 63.4      Subdivision 1.  [PURPOSE; LEGISLATIVE FINDINGS.] The 
 63.5   legislature finds that continuing changes in the agricultural 
 63.6   livestock, poultry, commodity crop, and specialty crop 
 63.7   industries have led to an ever larger portion of Minnesota 
 63.8   farmers who produce under contract for processors.  To the 
 63.9   extent that production under contract lessens competition and 
 63.10  dulls important market signals, independent producers are left 
 63.11  at a critical economic disadvantage.  The legislature finds 
 63.12  further that the study and recommendations authorized by this 
 63.13  section will identify ways to assure that competitive markets 
 63.14  remain for producers who choose not to produce under contract. 
 63.15     Subd. 2.  [CREATION; MEMBERSHIP.] (a) There is hereby 
 63.16  created a roundtable on contract farming with 22 members 
 63.17  appointed as follows: 
 63.18     (1) the chair of the agriculture and rural development 
 63.19  committee of the senate shall appoint one citizen member with 
 63.20  education and experience in the area of agricultural economics, 
 63.21  one citizen member who is the operator of a production 
 63.22  agriculture farm in the state, one processor of agricultural 
 63.23  livestock, one poultry processor, and three members of the 
 63.24  senate, at least one of whom must be a member of the minority 
 63.25  caucus; 
 63.26     (2) the chair of the agriculture and rural development 
 63.27  finance committee of the house of representatives shall appoint 
 63.28  one citizen member with education and experience in the area of 
 63.29  agricultural economics, one citizen member who is the operator 
 63.30  of a production agriculture farm in the state, one poultry 
 63.31  producer, one processor of agricultural commodities, and three 
 63.32  members of the house of representatives, at least one of whom 
 63.33  must be a member of the minority caucus; 
 63.34     (3) the governor shall appoint three members, one each 
 63.35  representing processors of agricultural livestock, poultry, 
 63.36  commodity crops, or specialty crops; 
 64.1      (4) the governor shall appoint two members representing 
 64.2   different types of financial institutions or organizations of 
 64.3   financial institutions; 
 64.4      (5) the Minnesota Farm Bureau Federation shall appoint one 
 64.5   member; 
 64.6      (6) the Minnesota Farmers Union shall appoint one member; 
 64.7      (7) the Minnesota Cattlemen's Association shall appoint one 
 64.8   member; and 
 64.9      (8) the Minnesota Pork Producers Association shall appoint 
 64.10  one member. 
 64.11     (b) All appointments must be made June 15, 1999. 
 64.12     (c) Citizen members of the roundtable serve without 
 64.13  compensation but may be reimbursed for expenses as provided in 
 64.14  Minnesota Statutes, section 15.059, subdivision 6. 
 64.15     (d) The first meeting of the roundtable must be called and 
 64.16  convened by the chairs of the agriculture policy committees of 
 64.17  the senate and the house of representatives.  Roundtable members 
 64.18  must then elect a permanent chair from among the roundtable 
 64.19  members. 
 64.20     (e) The roundtable may organize itself into two or more 
 64.21  committees each concentrating on the issues most relevant to 
 64.22  particular types of producer contracts, such as agricultural 
 64.23  livestock or poultry contracts, commodity crop contracts, or 
 64.24  specialty crop contracts.  If committees of the roundtable are 
 64.25  formed, they must report their findings to the full roundtable. 
 64.26     Subd. 3.  [CHARGE.] The roundtable shall examine current 
 64.27  and projected impacts of agricultural livestock, poultry, 
 64.28  commodity crops, and specialty crops produced under contract 
 64.29  with processors and the effect of contract production on the 
 64.30  availability or distortion of valid market price information and 
 64.31  access to competitive markets for other producers.  In 
 64.32  fulfilling its charge, the roundtable may consult with persons 
 64.33  involved with or affected by activities and recommendations of 
 64.34  the agricultural marketing and bargaining task force created 
 64.35  under Laws 1997, chapter 142. 
 64.36     Subd. 4.  [RESOURCES; STAFF SUPPORT; CONTRACT 
 65.1   SERVICES.] The commissioner of agriculture shall provide 
 65.2   necessary resources and staff support for the meetings, 
 65.3   hearings, activities, and report of the roundtable.  To the 
 65.4   extent the roundtable determines it appropriate to contract with 
 65.5   nonstate providers for research or analytical services, the 
 65.6   commissioner shall serve as the fiscal agent for the roundtable. 
 65.7      Subd. 5.  [PUBLIC HEARINGS.] The roundtable shall hold at 
 65.8   least four public hearings on the issue of agricultural 
 65.9   production under contract, at least three of which must be held 
 65.10  in greater Minnesota. 
 65.11     Subd. 6.  [REPORT.] The roundtable shall report its 
 65.12  findings to the legislature by January 15, 2000.  The report 
 65.13  must include recommendations for law or rule changes that would 
 65.14  ensure competition and valid market price signals to both 
 65.15  contract producers and those who choose not to produce under 
 65.16  contract. 
 65.17     Subd. 7.  [EXPIRATION.] The roundtable on contract farming 
 65.18  expires 45 days after its report and recommendations are 
 65.19  delivered to the legislature or on June 1, 2000, whichever date 
 65.20  is earlier. 
 65.21     Sec. 68.  [URBAN AGRICULTURAL HIGH SCHOOL.] 
 65.22     Subdivision 1.  [WORKING GROUP ESTABLISHED.] The 
 65.23  commissioner of agriculture, in collaboration with the Minnesota 
 65.24  agriculture education leadership council, must establish a 
 65.25  working group to develop a proposal for an urban agricultural 
 65.26  high school and development of agribusiness partnerships. 
 65.27     Subd. 2.  [GRANT PURPOSES.] The planning grant may be used 
 65.28  for curriculum design, demographic research, development of 
 65.29  partnerships, site acquisition, market assessment of student 
 65.30  interest, and facility predesign purposes. 
 65.31     Subd. 3.  [REPORT.] The Minnesota agriculture education 
 65.32  leadership council must present a report to the legislature by 
 65.33  January 15, 2000. 
 65.34     Sec. 69.  [FEEDLOT RULE REVIEW.] 
 65.35     To reduce the need for future farm-related state spending, 
 65.36  and to ensure legislative intent and oversight, after the 
 66.1   effective date of this section, the Minnesota pollution control 
 66.2   agency shall not implement any new or increased fees related to 
 66.3   livestock or poultry production or implement any new or amended 
 66.4   rules or new or increased fees related to the operation of 
 66.5   livestock or poultry feedlots until at least 60 days after the 
 66.6   proposed rules have been reviewed and approved by majority vote 
 66.7   of the standing committees of the senate and the house of 
 66.8   representatives having jurisdiction over agricultural policy 
 66.9   issues. 
 66.10     Sec. 70.  [REVISOR INSTRUCTION.] 
 66.11     The revisor of statutes shall renumber Minnesota Statutes, 
 66.12  section 156.072, subdivision 4, as section 156.073. 
 66.13     Sec. 71.  [REPEALER.] 
 66.14     Minnesota Statutes 1998, sections 35.245; and 35.96, 
 66.15  subdivision 4, are repealed on the day following final 
 66.16  enactment.  Minnesota Statutes 1998, sections 17.76; 42.01; 
 66.17  42.02; 42.03; 42.04; 42.05; 42.06; 42.07; 42.08; 42.09; 42.10; 
 66.18  42.11; 42.12; 42.13; and 42.14, are repealed. 
 66.19     Sec. 72.  [EFFECTIVE DATE.] 
 66.20     Sections 8, 31, 32, 34 to 44, 61 to 64, and 67 are 
 66.21  effective on the day following final enactment.