1.1                          A bill for an act 
  1.2             relating to agriculture; requiring financial assurance 
  1.3             for feedlots; proposing coding for new law in 
  1.4             Minnesota Statutes, chapter 116. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [116.0714] [FINANCIAL ASSURANCE FOR FEEDLOTS.] 
  1.7      (a) All owners of existing and new animal feedlots having a 
  1.8   capacity of 750 animal units or more shall furnish the agency 
  1.9   with evidence of financial ability to pay for any environmental 
  1.10  damages that may result from the operation of the facility and 
  1.11  to comply with the requirements of closure upon abandonment of 
  1.12  manure storage structures as established pursuant to rules 
  1.13  adopted by the agency. 
  1.14     (b) To establish evidence of financial ability, the agency 
  1.15  shall require surety, including an irrevocable commercial letter 
  1.16  of credit, cash, a cashier's check, a certificate of deposit, 
  1.17  commercial or private insurance, designated savings account, or 
  1.18  other negotiable instrument of a blanket surety bond.  The 
  1.19  instrument shall constitute an unconditional promise to pay and 
  1.20  be in a form negotiable by the agency.  The amount of such 
  1.21  letter of credit, cash, certificate, bond, receipt, or other 
  1.22  negotiable instrument shall be: 
  1.23     (1) $25,000 for an animal feedlot having a capacity of 750 
  1.24  animal units or more, but less than 1,000 animal units; 
  1.25     (2) $50,000 for an animal feedlot having a capacity of 
  2.1   1,000 animal units or more, but less than 2,000 animal units; 
  2.2   and 
  2.3      (3) $100,000 for an animal feedlot having a capacity of 
  2.4   2,000 animal units or more. 
  2.5      (c) No permit for the construction or operation of an 
  2.6   animal feedlot may be issued in the state unless the owner of 
  2.7   the feedlot posts adequate surety as determined by this section 
  2.8   to ensure the resources necessary to close, clean up, and 
  2.9   restore the environment upon cessation of the operation or to 
  2.10  pay for environmental damage arising from the operation of the 
  2.11  facility. 
  2.12     (d) Upon change in the ownership of an animal feedlot, the 
  2.13  new owner shall establish and maintain evidence of financial 
  2.14  responsibility at the same level of surety as the previous owner.