1.1                          A bill for an act 
  1.2             relating to agriculture; requiring animal waste 
  1.3             technician licenses; creating and funding an animal 
  1.4             feedlot cleanup fund; limiting issuance of certain 
  1.5             animal feedlot permits; requiring animal feedlot 
  1.6             inventory and review; providing for assistance in 
  1.7             adoption, review, and update of feedlot ordinances; 
  1.8             requiring a generic environmental impact statement on 
  1.9             feedlots; providing for feedlot compliance grants; 
  1.10            increasing the value-added agricultural product 
  1.11            revolving fund; expanding the paratuberculosis control 
  1.12            program; providing for certain alternative and 
  1.13            sustainable hog production facilities; appropriating 
  1.14            money; amending Minnesota Statutes 1996, section 
  1.15            116.07, by adding a subdivision; proposing coding for 
  1.16            new law in Minnesota Statutes, chapter 116; proposing 
  1.17            coding for new law as Minnesota Statutes, chapter 18G. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  [18G.01] [PURPOSE.] 
  1.20     The purpose of this chapter is to minimize the 
  1.21  environmental risks associated with improper handling, 
  1.22  management, or application of animal wastes generated by large 
  1.23  animal feedlots.  
  1.24     Sec. 2.  [18G.02] [TRAINING AND LICENSING FOR ANIMAL WASTE 
  1.25  TECHNICIANS.] 
  1.26     After March 1, 2000, a person who manages or applies animal 
  1.27  wastes must hold a valid commercial or noncommercial animal 
  1.28  waste technician license.  This section and sections 18G.03 and 
  1.29  18G.04 do not apply to a person who manages and applies: 
  1.30     (1) only animal wastes generated by animals owned by that 
  1.31  person on property owned or leased by that person; or 
  2.1      (2) annually an amount of animal wastes that would 
  2.2   otherwise be suitable for application to one acre or less of 
  2.3   crop land.  
  2.4      The commissioner of agriculture, in cooperation with the 
  2.5   Minnesota extension service and appropriate educational 
  2.6   institutions, shall establish and implement a program for 
  2.7   training and licensing commercial and noncommercial animal waste 
  2.8   technicians.  
  2.9      Sec. 3.  [18G.03] [COMMERCIAL ANIMAL WASTE TECHNICIAN.] 
  2.10     Subdivision 1.  [REQUIREMENT.] (a) A person may not manage 
  2.11  or apply animal wastes for hire without a valid commercial 
  2.12  animal waste technician license.  
  2.13     (b) A commercial animal waste technician licensee must have 
  2.14  a valid license identification card when managing or applying 
  2.15  animal wastes for hire and must display it upon demand by an 
  2.16  authorized representative of the commissioner or a law 
  2.17  enforcement officer.  The commissioner shall prescribe the 
  2.18  information required on the license identification card.  
  2.19     Subd. 2.  [RESPONSIBILITY.] A person required to be 
  2.20  licensed under this section who performs animal waste management 
  2.21  or application for hire or who employs a licensed technician to 
  2.22  perform animal waste management or application for compensation 
  2.23  is responsible for proper management or application of the 
  2.24  animal wastes. 
  2.25     Subd. 3.  [LICENSE.] A commercial animal waste technician 
  2.26  license: 
  2.27     (1) is valid for three years and expires on December 31 of 
  2.28  the third year for which it is issued, unless suspended or 
  2.29  revoked before that date; 
  2.30     (2) is not transferable to another person; and 
  2.31     (3) must be prominently displayed to the public in the 
  2.32  commercial animal waste technician's place of business. 
  2.33     Subd. 4.  [APPLICATION.] A person must apply to the 
  2.34  commissioner for a commercial animal waste technician license on 
  2.35  forms and in the manner required by the commissioner and must 
  2.36  include the application fee.  The commissioner shall prescribe 
  3.1   and administer an examination or equivalent measure to determine 
  3.2   if the applicant is eligible for the commercial animal waste 
  3.3   technician license. 
  3.4      Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
  3.5   commissioner of agriculture to renew a commercial animal waste 
  3.6   technician license and must include the application fee.  The 
  3.7   commissioner may renew a commercial animal waste technician 
  3.8   license, subject to reexamination, attendance at workshops 
  3.9   approved by the commissioner, or other requirements imposed by 
  3.10  the commissioner to provide the animal waste technician with 
  3.11  information regarding changing technology and to help ensure a 
  3.12  continuing level of competence and ability to manage and apply 
  3.13  animal wastes properly.  The applicant may renew a commercial 
  3.14  animal waste technician license within 12 months after 
  3.15  expiration of the license without having to meet initial testing 
  3.16  requirements.  The commissioner may require additional 
  3.17  demonstration of animal waste technician qualification if a 
  3.18  person has had a license suspended or revoked or has had a 
  3.19  history of violations of this section. 
  3.20     Subd. 6.  [FINANCIAL RESPONSIBILITY.] (a) A commercial 
  3.21  animal waste technician license may not be issued unless the 
  3.22  applicant furnishes proof of financial responsibility.  The 
  3.23  financial responsibility may be demonstrated by (1) proof of net 
  3.24  assets equal to or greater than $50,000, or (2) a performance 
  3.25  bond or insurance of the kind and in an amount determined by the 
  3.26  commissioner of agriculture. 
  3.27     (b) The bond or insurance must cover a period of time at 
  3.28  least equal to the term of the applicant's license.  The 
  3.29  commissioner shall immediately suspend the license of a person 
  3.30  who fails to maintain the required bond or insurance.  
  3.31     (c) An employee of a licensed person is not required to 
  3.32  maintain an insurance policy or bond during the time the 
  3.33  employer is maintaining the required insurance or bond. 
  3.34     (d) Applications for reinstatement of a license suspended 
  3.35  under paragraph (b) must be accompanied by proof of satisfaction 
  3.36  of judgments previously rendered.  
  4.1      Subd. 7.  [APPLICATION FEE.] (a) A person initially 
  4.2   applying for or renewing a commercial animal waste technician 
  4.3   license must pay a nonrefundable application fee of $50.  
  4.4      (b) Fees collected under this subdivision must be deposited 
  4.5   in the animal waste liability account.  
  4.6      Sec. 4.  [18G.04] [NONCOMMERCIAL ANIMAL WASTE TECHNICIAN.] 
  4.7      Subdivision 1.  [REQUIREMENT.] (a) A person who does not 
  4.8   hold a valid commercial animal waste technician license may not 
  4.9   manage or apply animal wastes without a valid noncommercial 
  4.10  animal waste technician license. 
  4.11     (b) A noncommercial animal waste technician licensee must, 
  4.12  within 24 hours of the demand, display a valid animal waste 
  4.13  technician license to an authorized representative of the 
  4.14  commissioner or a law enforcement officer.  The commissioner 
  4.15  shall prescribe the information required on the license 
  4.16  identification card. 
  4.17     Subd. 2.  [RESPONSIBILITY.] A person required to be 
  4.18  licensed under this section is responsible for proper management 
  4.19  or application of the animal wastes. 
  4.20     Subd. 3.  [LICENSE.] A noncommercial animal waste 
  4.21  technician license: 
  4.22     (1) is valid for three years and expires on December 31 of 
  4.23  the third year for which it is issued, unless suspended or 
  4.24  revoked before that date; and 
  4.25     (2) is not transferable to another person. 
  4.26     Subd. 4.  [APPLICATION.] A person must apply to the 
  4.27  commissioner for a noncommercial animal waste technician license 
  4.28  on forms and in the manner required by the commissioner and must 
  4.29  include the application fee.  The commissioner shall prescribe 
  4.30  and administer an examination or equivalent measure to determine 
  4.31  if the applicant is eligible for the noncommercial animal waste 
  4.32  technician license. 
  4.33     Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
  4.34  commissioner to renew a noncommercial animal waste technician 
  4.35  license and must include the application fee.  The commissioner 
  4.36  may renew a noncommercial animal waste technician license 
  5.1   subject to reexamination, attendance at workshops approved by 
  5.2   the commissioner, or other requirements imposed by the 
  5.3   commissioner to provide the animal waste technician with 
  5.4   information regarding changing technology and to help ensure a 
  5.5   continuing level of competence and ability to manage and apply 
  5.6   animal wastes safely and properly.  The applicant may renew a 
  5.7   noncommercial animal waste technician license within 12 months 
  5.8   after expiration of the license without having to meet initial 
  5.9   testing requirements.  The commissioner may require additional 
  5.10  demonstration of animal waste technician qualification if a 
  5.11  person has had a license suspended or revoked or has had a 
  5.12  history of violations of this section.  
  5.13     Subd. 6.  [APPLICATION FEE.] (a) A person initially 
  5.14  applying for or renewing a noncommercial animal waste technician 
  5.15  license must pay a nonrefundable application fee of $25. 
  5.16     (b) Fees collected under this subdivision must be deposited 
  5.17  in the animal waste liability account. 
  5.18     Sec. 5.  Minnesota Statutes 1996, section 116.07, is 
  5.19  amended by adding a subdivision to read: 
  5.20     Subd. 7b.  [PERMIT REQUIREMENTS.] (a) Neither the pollution 
  5.21  control agency nor a county board may issue a permit to 
  5.22  construct or expand a feedlot if: 
  5.23     (1) the feedlot would operate with a clay, earthen, or 
  5.24  plastic lined animal waste lagoon; or 
  5.25     (2) the feedlot has a design capacity of over 1,000 animal 
  5.26  units, unless the permit issued is an Individual National 
  5.27  Pollutant Discharge Elimination System (NPDES) permit as 
  5.28  required under the federal Clean Water Act. 
  5.29     (b) Paragraph (a) does not prohibit the issuance of a 
  5.30  permit for the construction of a clay, earthen, or plastic lined 
  5.31  animal waste lagoon if the feedlot has a design capacity of 750 
  5.32  animal units or less and is part of the animal waste management 
  5.33  facility for a dairy operation. 
  5.34     (c) Existing animal feedlots having a design capacity of 
  5.35  1,000 animal units or more must be brought into compliance with 
  5.36  the requirement for a General National Pollutant Discharge 
  6.1   Elimination System (NPDES) permit as required under the federal 
  6.2   Clean Water Act. 
  6.3      Sec. 6.  [116.0711] [ANIMAL WASTE LIABILITY ACCOUNT; 
  6.4   SURCHARGE.] 
  6.5      Subdivision 1.  [ESTABLISHMENT OF ACCOUNT.] An animal waste 
  6.6   liability account is established in the environmental fund.  
  6.7   Money in the account is appropriated to the commissioner for 
  6.8   containment and cleanup of animal waste. 
  6.9      Subd. 2.  [FEEDLOT PERMIT SURCHARGE.] A surcharge of $1 per 
  6.10  animal unit of design capacity for feedlots having a design 
  6.11  capacity of 750 animal units or more must be paid on feedlot 
  6.12  construction permits issued or renewed by the pollution control 
  6.13  agency or a county board.  Money collected under this section 
  6.14  must be deposited in the state treasury and credited to the 
  6.15  animal waste liability account.  
  6.16     Sec. 7.  [116.0712] [ANIMAL WASTE CONTROL AND SPILL 
  6.17  INVENTORY AND REPORTING; CONTINGENCY PLAN.] 
  6.18     The pollution control agency, in cooperation with the 
  6.19  commissioner of agriculture and county officials, shall 
  6.20  investigate the problems of proper control of animal wastes 
  6.21  generated by animal feedlots and conduct an inventory of animal 
  6.22  waste facilities and storage sites and the needs relative to the 
  6.23  management, transportation, and application of animal wastes and 
  6.24  shall develop an informational reporting system of animal waste 
  6.25  quantities generated, applied, and disposed of in the state.  
  6.26  The agency shall also develop a statewide animal waste 
  6.27  contingency plan including containment, closure, and cleanup 
  6.28  measures. 
  6.29     Sec. 8.  [INVENTORY OF FEEDLOTS.] 
  6.30     Subdivision 1.  [SCOPE; COMMISSIONER OF AGRICULTURE TO 
  6.31  COORDINATE.] The commissioner of agriculture, in cooperation 
  6.32  with the commissioner of the pollution control agency, shall 
  6.33  organize and coordinate a comprehensive, county-by-county 
  6.34  inventory of existing animal feedlots as defined in Minnesota 
  6.35  Rules, part 7020.0300, subpart 3.  The pollution control agency 
  6.36  shall design the inventory, design the methodology for 
  7.1   conducting the inventory, and determine the requirements for 
  7.2   county feedlot programs to conduct the inventory within their 
  7.3   jurisdiction.  The agency shall also provide training and 
  7.4   oversight to ensure that state guidelines and requirements are 
  7.5   met.  The inventory must determine for each animal feedlot: 
  7.6      (1) the type of livestock; 
  7.7      (2) the design capacity in animal units; 
  7.8      (3) the manure management system employed; 
  7.9      (4) the state of compliance with the federal Clean Water 
  7.10  Act, pollution control agency, and county permit conditions and 
  7.11  applicable laws, rules, and ordinances; and 
  7.12     (5) the ownership and business organization having 
  7.13  controlling interest in the livestock and the feedlot. 
  7.14     Subd. 2.  [GRANTS AND TECHNICAL ASSISTANCE TO COUNTIES.] 
  7.15  From the appropriation in section 11, the commissioner of 
  7.16  agriculture, in cooperation with the commissioner of the 
  7.17  pollution control agency, shall make grants to counties for the 
  7.18  full costs of conducting and reporting the feedlot inventory.  
  7.19  The commissioner may also provide to counties support and 
  7.20  technical assistance relating to the inventory. 
  7.21     Subd. 3.  [REPORT.] Not later than March 1, 1999, the 
  7.22  commissioner of agriculture shall report to the legislature the 
  7.23  findings of the animal feedlot inventory. 
  7.24     Sec. 9.  [ADOPTION, REVIEW, AND UPDATE OF FEEDLOT 
  7.25  ORDINANCES.] 
  7.26     (a) The commissioners of the pollution control agency and 
  7.27  agriculture shall provide technical assistance to counties for 
  7.28  the development and adoption of new or amended ordinances 
  7.29  relating to animal feedlots. 
  7.30     (b) The attorney general shall provide legal assistance to 
  7.31  counties that elect to adopt, review, or modify ordinances 
  7.32  relating to animal feedlots.  
  7.33     (c) The commissioner of agriculture shall provide for 
  7.34  transfer of appropriated money to the attorney general and the 
  7.35  pollution control agency for costs of the legal or technical 
  7.36  assistance provided under this subdivision. 
  8.1      A county may adopt by ordinance standards for animal 
  8.2   feedlots that are more stringent than standards in pollution 
  8.3   control agency rule. 
  8.4      Sec. 10.  [COUNTIES AND TOWNS TO REPORT.] 
  8.5      (a) Not later than August 1, 1998, each county and each 
  8.6   town that has adopted ordinances related to animal feedlots 
  8.7   shall supply copies of the ordinances to the commissioner of 
  8.8   agriculture.  A county or town that adopts a new or amended 
  8.9   ordinance related to animal feedlots shall report the new or 
  8.10  amended ordinance to the commissioner within 60 days after the 
  8.11  adoption. 
  8.12     (b) The reporting requirements of paragraph (a) expire 
  8.13  after June 30, 2001. 
  8.14     Sec. 11.  [APPROPRIATION; INVENTORY AND REVIEW; TECHNICAL 
  8.15  AND LEGAL ASSISTANCE.] 
  8.16     $....... is appropriated from the general fund to the 
  8.17  commissioner of agriculture for the purposes of sections 8 and 9 
  8.18  for fiscal year 1999. 
  8.19     Sec. 12.  [APPROPRIATION; GENERIC ENVIRONMENTAL IMPACT 
  8.20  STATEMENT.] 
  8.21     $1,200,000 is appropriated in fiscal year 1999 from the 
  8.22  general fund to the pollution control agency for the development 
  8.23  of a generic environmental impact statement for animal 
  8.24  feedlots.  The pollution control agency shall carry out this 
  8.25  effort in cooperation with the environmental quality board, the 
  8.26  department of agriculture, and the department of health.  The 
  8.27  pollution control agency may transfer portions of the 
  8.28  appropriation to the cooperating agencies.  This appropriation 
  8.29  remains available until June 30, 2000. 
  8.30     Sec. 13.  [APPROPRIATION; FEEDLOT COMPLIANCE GRANTS AND 
  8.31  LOANS.] 
  8.32     (a) $12,000,000 is appropriated from the general fund to 
  8.33  the commissioner of agriculture for feedlot compliance grants 
  8.34  and loans. 
  8.35     (b) Of the appropriation in paragraph (a), $6,000,000 is 
  8.36  for grants of up to 75 percent of the direct cost of upgrading 
  9.1   existing feedlots into compliance with state and local feedlot 
  9.2   rules.  To be eligible for a grant under this section the 
  9.3   feedlot: 
  9.4      (1) must have been identified in the county-by-county 
  9.5   inventory of existing feedlots conducted under section 8; 
  9.6      (2) must be out of compliance with feedlot rules; 
  9.7      (3) must have a design capacity of 500 animal units or less 
  9.8   prior to the compliance upgrade; and 
  9.9      (4) must have a final design capacity of 500 animal units 
  9.10  or less after the compliance upgrade. 
  9.11     (c) Of the appropriation in paragraph (a), $6,000,000 is 
  9.12  for loans for feedlot compliance upgrades under the agricultural 
  9.13  best management practices loan program in Minnesota Statutes, 
  9.14  section 17.117. 
  9.15     (d) The appropriations in this section are available until 
  9.16  June 30, 1999. 
  9.17     Sec. 14.  [APPROPRIATION; VALUE-ADDED AGRICULTURAL PRODUCT 
  9.18  REVOLVING FUND.] 
  9.19     $250,000 is appropriated from the general fund to the 
  9.20  value-added agricultural product revolving fund under Minnesota 
  9.21  Statutes, section 41B.046. 
  9.22     Sec. 15.  [APPROPRIATIONS; PARATUBERCULOSIS.] 
  9.23     $40,000 in fiscal year 1998 and $160,000 in fiscal year 
  9.24  1999 is appropriated from the general fund to the board of 
  9.25  animal health to expand the program for the control of 
  9.26  paratuberculosis ("Johne's disease") in domestic bovine herds.  
  9.27  These appropriations are in addition to the appropriations for 
  9.28  the same purposes in Laws 1997, chapter 216, section 8. 
  9.29     Sec. 16.  [APPROPRIATION; UNIVERSITY OF MINNESOTA.] 
  9.30     $800,000 is appropriated from the general fund to the 
  9.31  University of Minnesota for alternative and sustainable hog 
  9.32  production facilities on the Morris campus.  This appropriation 
  9.33  is available until June 30, 1999.