1.1                          A bill for an act 
  1.2             relating to agriculture; extending certain advisory 
  1.3             committees and a review board; changing provisions of 
  1.4             the value-added agricultural product processing and 
  1.5             marketing grant program; clarifying a term related to 
  1.6             the Minnesota grown matching account; providing for 
  1.7             uniformity with certain federal dairy regulations; 
  1.8             changing provisions of the shared savings loan program 
  1.9             and the sustainable agriculture demonstration grant 
  1.10            program; changing certain shell egg regulations; 
  1.11            changing financing provisions of a cooperative meat 
  1.12            inspection program; expanding an agricultural checkoff 
  1.13            fee refund program; imposing a biodiesel mandate on 
  1.14            certain vehicles; requiring reports; clarifying the 
  1.15            definition of agricultural land; modifying provisions 
  1.16            relating to the rural finance authority; prohibiting 
  1.17            tampering with clock-hour meters on farm tractors; 
  1.18            prescribing criminal and civil penalties; providing a 
  1.19            coyote conflict management option; suspending a rule; 
  1.20            repealing obsolete or unnecessary provisions; 
  1.21            appropriating money; amending Minnesota Statutes 2000, 
  1.22            sections 15.059, subdivision 5a; 17.039; 17.101, 
  1.23            subdivision 5; 17.109, subdivision 3; 17.115; 17.116; 
  1.24            17.136; 17.53, subdivisions 2, 8, 13; 17.63; 18B.305, 
  1.25            subdivision 3; 28A.20; 29.23, subdivisions 2, 3, 4; 
  1.26            29.237; 31.101, by adding a subdivision; 31A.21, 
  1.27            subdivision 2; 32.21, subdivision 4; 32.394, 
  1.28            subdivision 4; 32.415; 32.475, subdivision 2; 32.70, 
  1.29            subdivisions 7, 8; 41B.025, subdivision 1; 41B.03, 
  1.30            subdivision 2; 41B.036; 41B.043, subdivisions 1b, 2; 
  1.31            41B.046, subdivision 2; 97B.001, subdivision 1; 
  1.32            296A.01, by adding a subdivision; 296A.08, subdivision 
  1.33            1; proposing coding for new law in Minnesota Statutes, 
  1.34            chapters 239; 325E; 348; repealing Minnesota Statutes 
  1.35            2000, sections 17.042; 17.06; 17.07; 17.108; 17.139; 
  1.36            17.45; 17.4996; 17.76; 17.861; 17A.091, subdivision 1; 
  1.37            17B.21; 17B.23; 17B.24; 17B.25; 17B.26; 17B.27; 
  1.38            18.205; 24.001; 24.002; 24.12; 24.131; 24.135; 24.141; 
  1.39            24.145; 24.151; 24.155; 24.161; 24.171; 24.175; 24.18; 
  1.40            24.181; 25.47; 27.185; 29.025; 29.049; 30.50; 30.51; 
  1.41            31.185; 31.73; 31B.07; 32.11; 32.12; 32.18; 32.19; 
  1.42            32.20; 32.203; 32.204; 32.206; 32.208; 32.471, 
  1.43            subdivision 1; 32.474; 32.481, subdivision 2; 32.529; 
  1.44            32.53; 32.531, subdivisions 1, 5, 6, 7; 32.5311; 
  1.45            32.5312; 32.532; 32.533; 32.534; 32.55, subdivisions 
  1.46            15, 16, 17; 33.001; 33.002; 33.01; 33.011; 33.02; 
  2.1             33.03; 33.031; 33.032; 33.06; 33.07; 33.08; 33.09; 
  2.2             33.091; 33.111; 35.04; 35.14; 35.84. 
  2.3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.4      Section 1.  Minnesota Statutes 2000, section 15.059, 
  2.5   subdivision 5a, is amended to read: 
  2.6      Subd. 5a.  [LATER EXPIRATION.] Notwithstanding subdivision 
  2.7   5, the advisory councils and committees listed in this 
  2.8   subdivision do not expire June 30, 1997.  These groups expire 
  2.9   June 30, 2001, unless the law creating the group or this 
  2.10  subdivision specifies an earlier expiration date. 
  2.11     Investment advisory council, created in section 11A.08; 
  2.12     Intergovernmental information systems advisory council, 
  2.13  created in section 16B.42, expires June 30, 1999; 
  2.14     Feedlot and manure management advisory committee, created 
  2.15  in section 17.136; 
  2.16     Aquaculture advisory committee, created in section 17.49; 
  2.17     Dairy producers board, created in section 17.76; 
  2.18     Pesticide applicator education and examination review 
  2.19  board, created in section 18B.305; 
  2.20     Advisory seed potato certification task force, created in 
  2.21  section 21.112; 
  2.22     Food safety advisory committee, created in section 28A.20; 
  2.23     Minnesota organic advisory task force, created in section 
  2.24  31.95; 
  2.25     Public programs risk adjustment work group, created in 
  2.26  section 62Q.03; 
  2.27     Workers' compensation self-insurers' advisory committee, 
  2.28  created in section 79A.02; 
  2.29     Youth corps advisory committee, created in section 84.0887; 
  2.30     Iron range off-highway vehicle advisory committee, created 
  2.31  in section 85.013; 
  2.32     Mineral coordinating committee, created in section 93.002; 
  2.33     Game and fish fund citizen advisory committees, created in 
  2.34  section 97A.055; 
  2.35     Wetland heritage advisory committee, created in section 
  2.36  103G.2242; 
  3.1      Wastewater treatment technical advisory committee, created 
  3.2   in section 115.54; 
  3.3      Solid waste management advisory council, created in section 
  3.4   115A.12; 
  3.5      Nuclear waste council, created in section 116C.711; 
  3.6      Genetically engineered organism advisory committee, created 
  3.7   in section 116C.93; 
  3.8      Environment and natural resources trust fund advisory 
  3.9   committee, created in section 116P.06; 
  3.10     Child abuse prevention advisory council, created in section 
  3.11  119A.13; 
  3.12     Chemical abuse and violence prevention council, created in 
  3.13  section 119A.293; 
  3.14     Youth neighborhood centers advisory board, created in 
  3.15  section 119A.295; 
  3.16     Interagency coordinating council, created in section 
  3.17  125A.28, expires June 30, 1999; 
  3.18     Desegregation/integration advisory board, created in 
  3.19  section 124D.892; 
  3.20     Nonpublic education council, created in section 123B.445; 
  3.21     Permanent school fund advisory committee, created in 
  3.22  section 127A.30; 
  3.23     Indian scholarship committee, created in section 124D.84, 
  3.24  subdivision 2; 
  3.25     American Indian education committees, created in section 
  3.26  124D.80; 
  3.27     Summer scholarship advisory committee, created in section 
  3.28  124D.95; 
  3.29     Multicultural education advisory committee, created in 
  3.30  section 124D.894; 
  3.31     Male responsibility and fathering grants review committee, 
  3.32  created in section 124D.33; 
  3.33     Library for the blind and physically handicapped advisory 
  3.34  committee, created in section 134.31; 
  3.35     Higher education advisory council, created in section 
  3.36  136A.031; 
  4.1      Student advisory council, created in section 136A.031; 
  4.2      Cancer surveillance advisory committee, created in section 
  4.3   144.672; 
  4.4      Maternal and child health task force, created in section 
  4.5   145.881; 
  4.6      State community health advisory committee, created in 
  4.7   section 145A.10; 
  4.8      Mississippi River Parkway commission, created in section 
  4.9   161.1419; 
  4.10     School bus safety advisory committee, created in section 
  4.11  169.435; 
  4.12     Advisory council on workers' compensation, created in 
  4.13  section 175.007; 
  4.14     Code enforcement advisory council, created in section 
  4.15  175.008; 
  4.16     Medical services review board, created in section 176.103; 
  4.17     Apprenticeship advisory council, created in section 178.02; 
  4.18     OSHA advisory council, created in section 182.656; 
  4.19     Health professionals services program advisory committee, 
  4.20  created in section 214.32; 
  4.21     Rehabilitation advisory council for the blind, created in 
  4.22  section 248.10; 
  4.23     American Indian advisory council, created in section 
  4.24  254A.035; 
  4.25     Alcohol and other drug abuse advisory council, created in 
  4.26  section 254A.04; 
  4.27     Medical assistance drug formulary committee, created in 
  4.28  section 256B.0625; 
  4.29     Home care advisory committee, created in section 256B.071; 
  4.30     Preadmission screening, alternative care, and home and 
  4.31  community-based services advisory committee, created in section 
  4.32  256B.0911; 
  4.33     Traumatic brain injury advisory committee, created in 
  4.34  section 256B.093; 
  4.35     Minnesota commission serving deaf and hard-of-hearing 
  4.36  people, created in section 256C.28; 
  5.1      American Indian child welfare advisory council, created in 
  5.2   section 260.835; 
  5.3      Juvenile justice advisory committee, created in section 
  5.4   268.29; 
  5.5      Northeast Minnesota economic development fund technical 
  5.6   advisory committees, created in section 298.2213; 
  5.7      Iron range higher education committee, created in section 
  5.8   298.2214; 
  5.9      Northeast Minnesota economic protection trust fund 
  5.10  technical advisory committee, created in section 298.297; 
  5.11     Advisory council on battered women and domestic abuse, 
  5.12  created in section 611A.34. 
  5.13     Sec. 2.  Minnesota Statutes 2000, section 17.039, is 
  5.14  amended to read: 
  5.15     17.039 [ETHICAL GUIDELINES FOR FARM ADVOCATES.] 
  5.16     The commissioner of agriculture shall establish not later 
  5.17  than August 1, 1986, ethical guidelines for farm advocates who 
  5.18  perform the duties of an advocate.  The Ethical guidelines 
  5.19  developed by the commissioner must be part of the contract with 
  5.20  each farm advocate. 
  5.21     Sec. 3.  Minnesota Statutes 2000, section 17.101, 
  5.22  subdivision 5, is amended to read: 
  5.23     Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
  5.24  MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
  5.25     (1) "agricultural commodity" means a material produced for 
  5.26  use in or as food, feed, seed, or fiber and includes crops for 
  5.27  fiber, food, oilseeds, seeds, livestock, livestock products, 
  5.28  dairy, dairy products, poultry, poultry products, and other 
  5.29  products or by-products of the farm produced for the same or 
  5.30  similar use, except ethanol; and 
  5.31     (2) "agricultural product processing facility" means land, 
  5.32  buildings, structures, fixtures, and improvements located or to 
  5.33  be located in Minnesota and used or operated primarily for the 
  5.34  processing or production of marketable products from 
  5.35  agricultural commodities produced in Minnesota.  
  5.36     (b) The commissioner shall establish and implement a 
  6.1   value-added agricultural product processing and marketing grant 
  6.2   program to help farmers finance new cooperatives that organize 
  6.3   for the purposes of operating agricultural product processing 
  6.4   facilities, forming marketing cooperatives, and for marketing 
  6.5   activities related to the sale and distribution of processed 
  6.6   agricultural products.  
  6.7      (c) To be eligible for this program a grantee must:  
  6.8      (1) be a cooperative organized under chapter 308A; 
  6.9      (2) certify that all of the control and equity in the 
  6.10  cooperative is from farmers or family farm corporations as 
  6.11  defined in section 500.24, subdivision 2, who are actively 
  6.12  engaged in agricultural commodity production; 
  6.13     (3) be operated primarily for the processing of 
  6.14  agricultural commodities produced in Minnesota; 
  6.15     (4) receive agricultural commodities produced primarily by 
  6.16  shareholders or members of the cooperative; and 
  6.17     (5) have no direct or indirect involvement in the 
  6.18  production of agricultural commodities.  
  6.19     (d) The commissioner may receive applications from and make 
  6.20  grants up to $50,000 for feasibility, marketing analysis, 
  6.21  assistance with organizational development, financing and 
  6.22  managing new cooperatives, product development, development of 
  6.23  business and marketing plans, and predesign of facilities 
  6.24  including site analysis, development of bid specifications, 
  6.25  preliminary blueprints and schematics, and completion of 
  6.26  purchase agreements and other necessary legal documents to 
  6.27  eligible cooperatives.  The commissioner shall give priority to 
  6.28  applicants who use the grants for planning costs related to an 
  6.29  application for financial assistance from the United States 
  6.30  Department of Agriculture, Rural Business - Cooperative Service. 
  6.31     Sec. 4.  Minnesota Statutes 2000, section 17.109, 
  6.32  subdivision 3, is amended to read: 
  6.33     Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
  6.34  FUNDS.] Appropriations to the Minnesota grown matching account 
  6.35  may be expended only to the extent that they are matched with 
  6.36  contributions to the account from private sources on a basis of 
  7.1   $4 of the appropriation to each $1 of private contributions.  
  7.2   Matching funds are not available after the appropriation is 
  7.3   encumbered.  For the purposes of this subdivision, "private 
  7.4   contributions" includes, but is not limited to, advertising 
  7.5   revenue, listing fees, and revenues from the development and 
  7.6   sale of promotional materials. 
  7.7      Sec. 5.  Minnesota Statutes 2000, section 17.115, is 
  7.8   amended to read: 
  7.9      17.115 [SHARED SAVINGS LOAN PROGRAM.] 
  7.10     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
  7.11  establish a shared savings loan program to provide loans that 
  7.12  enable farmers to adopt best management practices that emphasize 
  7.13  sufficiency and self-sufficiency in agricultural inputs, 
  7.14  including energy efficiency, reduction or improved management of 
  7.15  petroleum and chemical inputs, and increasing the energy 
  7.16  self-sufficiency of production by agricultural producers, and 
  7.17  environmental improvements. 
  7.18     Subd. 2.  [LOAN CRITERIA.] (a) The shared savings loan 
  7.19  program must provide loans for purchase of new or used 
  7.20  machinery, and installation of equipment, and for projects that 
  7.21  reduce or make more efficient farm energy use make environmental 
  7.22  improvements or enhance farm profitability.  Eligible loan uses 
  7.23  do not include seed, fertilizer, or fuel. 
  7.24     (b) Loans may not exceed $15,000 $25,000 per individual 
  7.25  applying for a loan and may not exceed $75,000 $100,000 for 
  7.26  loans to five four or more individuals on joint projects.  The 
  7.27  loan repayment period may be up to seven years as determined by 
  7.28  project cost and energy savings.  The interest on the loans is 
  7.29  six percent. 
  7.30     (c) Loans may only be made to residents of this state 
  7.31  engaged in farming.  
  7.32     Subd. 3.  [AWARDING OF LOANS.] (a) Applications for loans 
  7.33  must be made to the commissioner on forms prescribed by the 
  7.34  commissioner. 
  7.35     (b) The applications must be reviewed, ranked, and 
  7.36  recommended by a loan review panel appointed by the 
  8.1   commissioner.  The loan review panel shall consist of two 
  8.2   lenders with agricultural experience, two resident farmers of 
  8.3   the state using sustainable agriculture methods, two resident 
  8.4   farmers of the state using organic agriculture methods, a farm 
  8.5   management specialist, a representative from a post-secondary 
  8.6   education institution, and a chair from the department.  
  8.7      (c) The loan review panel shall rank applications according 
  8.8   to the following criteria: 
  8.9      (1) realize savings to the cost of agricultural production 
  8.10  and project savings to repay the cost of the loan; 
  8.11     (2) reduce or make more efficient use of energy or 
  8.12  inputs; and 
  8.13     (3) reduce production costs increase overall farm 
  8.14  profitability; and 
  8.15     (4) result in environmental benefits.  
  8.16     (d) A loan application must show that the loan can be 
  8.17  repaid by the applicant.  
  8.18     (e) The commissioner must consider the recommendations of 
  8.19  the loan review panel and may make loans for eligible projects.  
  8.20  Priority must be given based on the amount of savings realized 
  8.21  by adopting the practice implemented by the loan. 
  8.22     Subd. 4.  [ADMINISTRATION; INFORMATION DISSEMINATION.] The 
  8.23  amount in the revolving loan account is appropriated to the 
  8.24  commissioner to make loans under this section and administer the 
  8.25  loan program.  The interest on the money in the revolving loan 
  8.26  account and the interest on loans repaid to the state may be 
  8.27  spent by the commissioner for administrative expenses.  The 
  8.28  commissioner shall collect and disseminate information relating 
  8.29  to projects for which loans are given under this section. 
  8.30     Subd. 5.  [FARM MANURE DIGESTER TECHNOLOGY.] Appropriations 
  8.31  in Laws 1998, chapter 401, section 6, must be used for revolving 
  8.32  loans for demonstration projects of farm manure digester 
  8.33  technology.  Notwithstanding the limitations of subdivision 2, 
  8.34  paragraphs (b) and (c), loans under this subdivision are 
  8.35  no-interest loans in principal amounts not to exceed $200,000 
  8.36  and may be made to any resident of this state.  Loans for one or 
  9.1   more projects must be made only after the commissioner seeks 
  9.2   applications.  Loans under this program may be used as a match 
  9.3   for federal loans or grants.  Money repaid from loans must be 
  9.4   returned to the revolving fund for future projects. 
  9.5      Sec. 6.  Minnesota Statutes 2000, section 17.116, is 
  9.6   amended to read: 
  9.7      17.116 [SUSTAINABLE AGRICULTURE DEMONSTRATION GRANTS.] 
  9.8      Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
  9.9   agriculture shall establish a grant program for sustainable 
  9.10  agriculture methods that demonstrates best management practices, 
  9.11  including farm input reduction or management, enterprise 
  9.12  diversification including new crops and livestock, farm energy 
  9.13  efficiency, or usable on-farm energy production, or the transfer 
  9.14  of technologies that enhance the environment and farm 
  9.15  profitability.  The commissioner shall use the program to 
  9.16  demonstrate and publicize the energy efficiency, environmental 
  9.17  benefit, and profitability of sustainable agriculture techniques 
  9.18  or systems from production through marketing.  The grants must 
  9.19  fund research or demonstrations on farms of external input 
  9.20  reduction techniques or farm scale energy production methods 
  9.21  consistent with the program objectives. 
  9.22     Subd. 2.  [ELIGIBILITY.] (a) Grants may only be made to 
  9.23  farmers, educational institutions, individuals at educational 
  9.24  institutions, or nonprofit organizations residing or located in 
  9.25  the state for research or demonstrations on farms in the state. 
  9.26     (b) Grants may only be made for projects that show: 
  9.27     (1) the ability to maximize direct or indirect energy 
  9.28  savings or production; 
  9.29     (2) a positive effect or reduced adverse effect on the 
  9.30  environment; and 
  9.31     (3) increased profitability for the individual farm by 
  9.32  reducing costs or improving marketing opportunities. 
  9.33     Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
  9.34  must be made to the commissioner on forms prescribed by the 
  9.35  commissioner. 
  9.36     (b) The applications must be reviewed, ranked, and 
 10.1   recommended by a technical review panel appointed by the 
 10.2   commissioner.  The technical review panel shall consist of a 
 10.3   soil scientist, an agronomist, a representative from a 
 10.4   post-secondary educational institution, an agricultural 
 10.5   marketing specialist, two resident farmers of the state using 
 10.6   sustainable agriculture methods, two resident farmers of the 
 10.7   state using organic agriculture methods, and a chair from the 
 10.8   department.  
 10.9      (c) The technical review panel shall rank applications 
 10.10  according to the following criteria: 
 10.11     (1) direct or indirect energy savings or production; 
 10.12     (2) environmental benefit; 
 10.13     (3) farm profitability; 
 10.14     (4) the number of farms able to apply the techniques or the 
 10.15  technology proposed; 
 10.16     (5) the effectiveness of the project as a demonstration; 
 10.17     (6) the immediate transferability of the project to farms; 
 10.18  and 
 10.19     (7) the ability of the project to accomplish its goals. 
 10.20     (d) The commissioner shall consider the recommendations of 
 10.21  the technical review panel and may award grants for eligible 
 10.22  projects.  Priority must be given to applicants who are farmers 
 10.23  or groups of farmers. 
 10.24     (e) Grants for eligible projects may not exceed $25,000 
 10.25  unless the portion above $25,000 is matched on an equal basis by 
 10.26  the applicant's cash or in-kind land use contribution.  Grant 
 10.27  funding of projects may not exceed $50,000 under this section, 
 10.28  but applicants may utilize other funding sources.  A portion of 
 10.29  each grant must be targeted for public information activities of 
 10.30  the project. 
 10.31     (f) A project may continue for up to three years.  
 10.32  Multiyear projects must be reevaluated by the technical review 
 10.33  panel and the commissioner before second or third year funding 
 10.34  is approved.  A project is limited to one grant for its funding. 
 10.35     Sec. 7.  Minnesota Statutes 2000, section 17.136, is 
 10.36  amended to read: 
 11.1      17.136 [ANIMAL FEEDLOTS; POLLUTION CONTROL; FEEDLOT AND 
 11.2   MANURE MANAGEMENT ADVISORY COMMITTEE.] 
 11.3      (a) The commissioner of agriculture and the commissioner of 
 11.4   the pollution control agency shall establish a feedlot and 
 11.5   manure management advisory committee to identify needs, goals, 
 11.6   and suggest policies for research, monitoring, and regulatory 
 11.7   activities regarding feedlot and manure management.  In 
 11.8   establishing the committee, the commissioner shall give first 
 11.9   consideration to members of the existing feedlot advisory group. 
 11.10     (b) The committee must include representation from beef, 
 11.11  dairy, pork, chicken, and turkey producer organizations.  The 
 11.12  committee shall not exceed 21 members, but, after June 30, 1999, 
 11.13  must include representatives from at least four environmental 
 11.14  organizations, eight livestock producers, four experts in soil 
 11.15  and water science, nutrient management, and animal husbandry, 
 11.16  one commercial solid manure applicator who is not a producer, 
 11.17  one commercial liquid manure applicator who is not a producer, 
 11.18  and one member from an organization representing local units of 
 11.19  government, and chairs of the senate and the house of 
 11.20  representatives committees that deal with agricultural policy or 
 11.21  the designees of the chairs.  In addition, the departments of 
 11.22  agriculture, health, and natural resources, the pollution 
 11.23  control agency, board of water and soil resources, soil and 
 11.24  water conservation districts, the federal Natural Resource 
 11.25  Conservation Service, the association of Minnesota counties, and 
 11.26  the Farm Service Agency shall serve on the committee as ex 
 11.27  officio nonvoting members. 
 11.28     (c) The advisory committee shall elect a chair and a 
 11.29  vice-chair from its members.  The department and the agency 
 11.30  shall provide staff support to the committee. 
 11.31     (d) The commissioner of agriculture and the commissioner of 
 11.32  the pollution control agency shall consult with the advisory 
 11.33  committee during the development of any policies, rules, or 
 11.34  funding proposals or recommendations relating to feedlots or 
 11.35  feedlot-related manure management. 
 11.36     (e) The commissioner of agriculture shall consult with the 
 12.1   advisory committee on establishing a list of manure management 
 12.2   research needs and priorities. 
 12.3      (f) The advisory committee shall advise the commissioners 
 12.4   on other appropriate matters. 
 12.5      (g) Nongovernment members of the advisory committee shall 
 12.6   receive expenses, in accordance with section 15.059, subdivision 
 12.7   6.  The advisory committee expires on June 30, 2001 2004. 
 12.8      Sec. 8.  Minnesota Statutes 2000, section 17.53, 
 12.9   subdivision 2, is amended to read: 
 12.10     Subd. 2.  [AGRICULTURAL COMMODITY.] (a) Except as provided 
 12.11  in paragraph (b), "agricultural commodity" means any 
 12.12  agricultural product, including, without limitation, animals and 
 12.13  animal products, grown, raised, produced, or fed within 
 12.14  Minnesota for use as food, feed, seed, or any industrial or 
 12.15  chemurgic purpose. 
 12.16     (b) For wheat and, barley, and cultivated wild 
 12.17  rice, "agricultural commodity" means wheat and, barley, and 
 12.18  cultivated wild rice including, without limitation, wheat and, 
 12.19  barley, and cultivated wild rice grown or produced within or 
 12.20  outside Minnesota, for use as food, feed, seed, or any 
 12.21  industrial or chemurgic purpose.  
 12.22     Sec. 9.  Minnesota Statutes 2000, section 17.53, 
 12.23  subdivision 8, is amended to read: 
 12.24     Subd. 8.  [FIRST PURCHASER.] (a) Except as provided in 
 12.25  paragraph (b), "first purchaser" means any person that buys 
 12.26  agricultural commodities for movement into commercial channels 
 12.27  from the producer; or any lienholder, secured party or pledgee, 
 12.28  public or private, or assignee of said lienholder, secured party 
 12.29  or pledgee, who gains title to the agricultural commodity from 
 12.30  the producer as the result of exercising any legal rights by the 
 12.31  lienholder, secured party, pledgee, or assignee thereof, 
 12.32  regardless of when the lien, security interest or pledge was 
 12.33  created and regardless of whether the first purchaser is 
 12.34  domiciled within the state or without.  "First purchaser" does 
 12.35  not mean the commodity credit corporation when a commodity is 
 12.36  used as collateral for a federal nonrecourse loan unless the 
 13.1   commissioner determines otherwise.  
 13.2      (b) For wheat and, barley, and cultivated wild rice, "first 
 13.3   purchaser" means a person who buys, receives delivery of, or 
 13.4   provides storage for the agricultural commodity from a producer 
 13.5   for movement into commercial channels; or a lienholder, secured 
 13.6   party, or pledgee, who gains title to the agricultural commodity 
 13.7   from the producers as the result of exercising any legal rights 
 13.8   by the lienholder, secured party, pledgee, or assignee, 
 13.9   regardless of when the lien, security interest, or pledge was 
 13.10  created and regardless of whether or not the first purchaser is 
 13.11  domiciled in the state.  "First purchaser" does not mean the 
 13.12  commodity credit corporation when the wheat or, barley, or 
 13.13  cultivated wild rice is used as collateral for a federal 
 13.14  nonrecourse loan unless the commissioner determines otherwise. 
 13.15     Sec. 10.  Minnesota Statutes 2000, section 17.53, 
 13.16  subdivision 13, is amended to read: 
 13.17     Subd. 13.  [PRODUCER.] (a) Except as provided in paragraph 
 13.18  (b), "producer" means any person who owns or operates an 
 13.19  agricultural producing or growing facility for an agricultural 
 13.20  commodity and shares in the profits and risk of loss from such 
 13.21  operation, and who grows, raises, feeds or produces the 
 13.22  agricultural commodity in Minnesota during the current or 
 13.23  preceding marketing year. 
 13.24     (b) For wheat and, barley, and cultivated wild 
 13.25  rice, "producer" means in addition to the meaning in paragraph 
 13.26  (a) and for the purpose of the payment or the refund of the 
 13.27  checkoff fee paid pursuant to sections 17.51 to 17.69 only, a 
 13.28  person who delivers into, stores within, or makes the first sale 
 13.29  of the agricultural commodity in Minnesota. 
 13.30     Sec. 11.  Minnesota Statutes 2000, section 17.63, is 
 13.31  amended to read: 
 13.32     17.63 [REFUND OF FEES.] 
 13.33     (a) Any producer, except a producer of potatoes in area 
 13.34  number one, as listed in section 17.54, subdivision 9, a 
 13.35  producer of wheat or barley, or a producer of paddy cultivated 
 13.36  wild rice, may, by the use of forms to be provided by the 
 14.1   commissioner and upon presentation of such proof as the 
 14.2   commissioner requires, have the checkoff fee paid pursuant to 
 14.3   sections 17.51 to 17.69 fully or partially refunded, provided 
 14.4   the checkoff fee was remitted on a timely basis.  The request 
 14.5   for refund must be received in the office of the commissioner 
 14.6   within the time specified in the promotion order following the 
 14.7   payment of the checkoff fee.  In no event shall these requests 
 14.8   for refund be accepted more often than 12 times per year.  
 14.9   Refund shall be made by the commissioner and council within 30 
 14.10  days of the request for refund provided that the checkoff fee 
 14.11  sought to be refunded has been received.  Rules governing the 
 14.12  refund of checkoff fees for all commodities shall be formulated 
 14.13  by the commissioner, shall be fully outlined in the promotion 
 14.14  order, and shall be available for the information of all 
 14.15  producers concerned with the referendum. 
 14.16     (b) The commissioner must allow partial refund requests 
 14.17  from corn producers who have checked off and must allow for 
 14.18  assignment of payment to the Minnesota corn growers association 
 14.19  if the Minnesota corn research and promotion council requests 
 14.20  such action by the commissioner.  
 14.21     (c) The Minnesota corn research and promotion council shall 
 14.22  not elect to impose membership on any individual producer not 
 14.23  requesting a partial refund or assignment of payment to the 
 14.24  association. 
 14.25     (d) For any wheat or, barley, or cultivated wild rice for 
 14.26  which the checkoff fee must be paid pursuant to sections 17.51 
 14.27  to 17.69 and for which a checkoff fee or fee that serves a 
 14.28  comparable purpose in a jurisdiction outside Minnesota had been 
 14.29  previously paid for the same wheat or, barley, or cultivated 
 14.30  wild rice, the producer of the wheat or, barley, or cultivated 
 14.31  wild rice is exempt from payment of the checkoff fee.  The 
 14.32  commissioner, in consultation with the wheat research and 
 14.33  promotion council and, barley research and promotion 
 14.34  council, and cultivated wild rice research and promotion 
 14.35  council, shall determine jurisdictions outside of Minnesota 
 14.36  which collect a checkoff fee or fee that serves a comparable 
 15.1   purpose.  In order to qualify for the exemption, the producer 
 15.2   must demonstrate to the first purchaser that a checkoff fee or 
 15.3   fee has been paid to such a jurisdiction. 
 15.4      Sec. 12.  Minnesota Statutes 2000, section 18B.305, 
 15.5   subdivision 3, is amended to read: 
 15.6      Subd. 3.  [PESTICIDE APPLICATOR EDUCATION AND EXAMINATION 
 15.7   REVIEW BOARD.] (a) The commissioner shall establish and chair a 
 15.8   pesticide applicator education and examination review board.  
 15.9   This board, consisting of 15 members, must meet at least once a 
 15.10  year before the initiation of pesticide educational planning 
 15.11  programs.  The purpose of the board is to discuss topics of 
 15.12  current concern that can be incorporated into pesticide 
 15.13  applicator training sessions and appropriate examinations.  This 
 15.14  board shall review and evaluate the various educational programs 
 15.15  recently conducted and recommend options to increase overall 
 15.16  effectiveness.  
 15.17     (b) Membership on this board must include applicators 
 15.18  representing various licensing categories, such as agriculture, 
 15.19  turf and ornamental, aerial, aquatic, and structural pest 
 15.20  control and private pesticide applicators, and other 
 15.21  governmental agencies, including the University of Minnesota, 
 15.22  the pollution control agency, department of health, department 
 15.23  of natural resources, and department of transportation.  
 15.24     (c) Membership on the board must include representatives 
 15.25  from environmental protection organizations. 
 15.26     (d) This board shall review licensing and certification 
 15.27  requirements for private, commercial, and noncommercial 
 15.28  applicators and provide a report to the commissioner with 
 15.29  recommendations by January 15, 1998.  This board shall review 
 15.30  category requirements and provide recommendations to the 
 15.31  commissioner.  This board expires on June 30, 2001 2004. 
 15.32     Sec. 13.  Minnesota Statutes 2000, section 28A.20, is 
 15.33  amended to read: 
 15.34     28A.20 [FOOD SAFETY ADVISORY COMMITTEE TASK FORCE.] 
 15.35     Subdivision 1.  [ESTABLISHMENT.] A food safety advisory 
 15.36  committee task force is established to advise the commissioner 
 16.1   and the legislature on food issues and food safety.  
 16.2      Subd. 2.  [MEMBERSHIP.] (a) The food safety advisory 
 16.3   committee task force consists of:  
 16.4      (1) the commissioner of agriculture; 
 16.5      (2) the commissioner of health; 
 16.6      (3) a representative of the United States Food and Drug 
 16.7   Administration; 
 16.8      (4) a representative of the United States Department of 
 16.9   Agriculture; 
 16.10     (5) a representative of the agricultural utilization 
 16.11  research institute; 
 16.12     (6) one person from the University of Minnesota 
 16.13  knowledgeable in food and food safety issues; and 
 16.14     (7) nine members appointed by the governor who are 
 16.15  interested in food and food safety, of whom: 
 16.16     (i) two persons are health or food professionals; 
 16.17     (ii) one person represents a statewide general farm 
 16.18  organization; 
 16.19     (iii) one person represents a local food inspection agency; 
 16.20  and 
 16.21     (iv) one person represents a food-oriented consumer group.  
 16.22     (b) Members shall serve without compensation.  Members 
 16.23  appointed by the governor shall serve four-year terms.  
 16.24     Subd. 3.  [ORGANIZATION.] (a) The committee task force 
 16.25  shall meet monthly or as determined by the chair.  
 16.26     (b) The members of the committee task force shall annually 
 16.27  elect a chair and other officers as they determine necessary.  
 16.28     Subd. 4.  [STAFF.] The commissioner of agriculture shall 
 16.29  provide support staff, office space, and administrative services 
 16.30  for the committee task force.  
 16.31     Subd. 5.  [DUTIES.] The committee task force shall:  
 16.32     (1) coordinate educational efforts about various aspects of 
 16.33  food safety; 
 16.34     (2) provide advice and coordination to state agencies as 
 16.35  requested by the agencies; 
 16.36     (3) serve as a source of information and referral for the 
 17.1   public, news media, and others concerned with food safety; and 
 17.2      (4) make recommendations to Congress, the legislature, and 
 17.3   others about appropriate action to improve food safety in the 
 17.4   state. 
 17.5      Subd. 6.  [EXPIRATION.] This section expires on June 
 17.6   30, 2001 2004. 
 17.7      Sec. 14.  Minnesota Statutes 2000, section 29.23, 
 17.8   subdivision 2, is amended to read: 
 17.9      Subd. 2.  [EQUIPMENT.] The commissioner shall also by rule 
 17.10  provide for minimum plant and equipment requirements for 
 17.11  candling, grading, handling and storing eggs, and shall define 
 17.12  candling.  Equipment in use before July 1, 1991, that does not 
 17.13  meet the design and fabrication requirements of this chapter may 
 17.14  remain in use if it is in good repair, capable of being 
 17.15  maintained in a sanitary condition, and capable of maintaining a 
 17.16  temperature of 50 45 degrees Fahrenheit (10 7 degrees Celsius) 
 17.17  or less. 
 17.18     Sec. 15.  Minnesota Statutes 2000, section 29.23, 
 17.19  subdivision 3, is amended to read: 
 17.20     Subd. 3.  [EGG TEMPERATURE.] Eggs must be held at a 
 17.21  temperature not to exceed 50 45 degrees Fahrenheit (10 7 degrees 
 17.22  Celsius) after being received by the egg handler except for 
 17.23  cleaning, sanitizing, grading, and further processing when they 
 17.24  must immediately be placed under refrigeration that is 
 17.25  maintained at 45 degrees Fahrenheit (7 degrees Celsius) or 
 17.26  below.  Eggs offered for retail sale must be held at a 
 17.27  temperature not to exceed 45 degrees Fahrenheit (7 degrees 
 17.28  Celsius).  After August 1, 1992, eggs offered for retail sale 
 17.29  must be held at a temperature not to exceed 45 degrees 
 17.30  Fahrenheit (7 degrees Celsius).  Equipment in use prior to 
 17.31  August 1, 1991, is not subject to this requirement.  
 17.32     Sec. 16.  Minnesota Statutes 2000, section 29.23, 
 17.33  subdivision 4, is amended to read: 
 17.34     Subd. 4.  [VEHICLE TEMPERATURE.] A vehicle used for the 
 17.35  transportation of shell eggs from a warehouse, retail store, 
 17.36  candling and grading facility, or egg holding facility must have 
 18.1   an ambient air temperature of 50 45 degrees Fahrenheit (10 7 
 18.2   degrees Celsius) or below. 
 18.3      Sec. 17.  Minnesota Statutes 2000, section 29.237, is 
 18.4   amended to read: 
 18.5      29.237 [UNIFORMITY WITH FEDERAL LAW.] 
 18.6      Subdivision 1.  [SHELL EGGS.] Federal regulations governing 
 18.7   the grading of shell eggs and United States standards, grades, 
 18.8   and weight classes for shell eggs, in effect on July 1, 
 18.9   1990 2000, as provided by Code of Federal Regulations, title 7, 
 18.10  part 56, are the grading and candling rules in this state, 
 18.11  subject to amendment by the commissioner under chapter 14, the 
 18.12  Administrative Procedure Act. 
 18.13     Subd. 2.  [INSPECTION.] Federal regulations governing the 
 18.14  inspection of eggs and egg products, in effect on May 1, 
 18.15  1990 2000, as provided by Code of Federal Regulations, title 7, 
 18.16  part 59, are the inspection of egg and egg products rules in 
 18.17  this state, subject to amendment by the commissioner under 
 18.18  chapter 14, the Administrative Procedure Act. 
 18.19     Sec. 18.  Minnesota Statutes 2000, section 31.101, is 
 18.20  amended by adding a subdivision to read: 
 18.21     Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
 18.22  STANDARDS.] Federal grading and inspection standards for 
 18.23  manufacturing dairy plants and products and amendments thereto 
 18.24  in effect on January 1, 2001, as provided by Code of Federal 
 18.25  Regulations, title 7, part 58, subparts B-W, are adopted as the 
 18.26  dairy grade rules and manufacturing plant standards in this 
 18.27  state. 
 18.28     Sec. 19.  Minnesota Statutes 2000, section 31A.21, 
 18.29  subdivision 2, is amended to read: 
 18.30     Subd. 2.  [FEDERAL ASSISTANCE.] In its cooperative efforts, 
 18.31  the Minnesota department of agriculture may accept from the 
 18.32  United States Secretary of Agriculture (1) advisory assistance 
 18.33  in planning and otherwise developing the state program, (2) 
 18.34  technical and laboratory assistance and training, including 
 18.35  necessary curricular and instructional materials and equipment, 
 18.36  and (3) financial and other aid for the administration of the 
 19.1   program.  The Minnesota department of agriculture may spend a 
 19.2   sum for administration of this chapter equal to 50 percent of 
 19.3   the estimated total cost of the cooperative program. 
 19.4      Sec. 20.  Minnesota Statutes 2000, section 32.21, 
 19.5   subdivision 4, is amended to read: 
 19.6      Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
 19.7   producer, who violates this section is guilty of a misdemeanor 
 19.8   or subject to a civil penalty up to $1,000. 
 19.9      (b) A milk producer may not change milk plants within 30 
 19.10  days, without permission of the commissioner, after receiving 
 19.11  notification from the commissioner under paragraph (c) or (d) 
 19.12  that the milk producer has violated this section. 
 19.13     (c) A milk producer who violates subdivision 3, clause (1), 
 19.14  (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
 19.15  paragraph. 
 19.16     (1) Upon notification of the first violation in a 12-month 
 19.17  period, the producer must meet with the dairy plant field 
 19.18  service representative to initiate corrective action within 30 
 19.19  days. 
 19.20     (2) Upon the second violation within a 12-month period, the 
 19.21  producer is subject to a civil penalty of $300.  The 
 19.22  commissioner shall notify the producer by certified mail stating 
 19.23  the penalty is payable in 30 days, the consequences of failure 
 19.24  to pay the penalty, and the consequences of future violations. 
 19.25     (3) Upon the third violation within a 12-month period, the 
 19.26  producer is subject to an additional civil penalty of $300 and 
 19.27  possible revocation of the producer's permit or certification.  
 19.28  The commissioner shall notify the producer by certified mail 
 19.29  that all civil penalties owed must be paid within 30 days and 
 19.30  that the commissioner is initiating administrative procedures to 
 19.31  revoke the producer's permit or certification to sell milk for 
 19.32  at least 30 days. 
 19.33     (d) The producer's shipment of milk must be immediately 
 19.34  suspended if the producer is identified as an individual source 
 19.35  of milk containing residues causing a bulk load of milk to test 
 19.36  positive in violation of subdivision 3, clause (6) or (7).  The 
 20.1   Grade A or manufacturing grade permit must be converted to 
 20.2   temporary status for not more than 30 days and shipment may 
 20.3   resume only after subsequent milk has been sampled by the 
 20.4   commissioner or the commissioner's agent and found to contain no 
 20.5   residues above established tolerances or safe levels. 
 20.6      The Grade A or manufacturing grade permit may be restored 
 20.7   if the producer completes the "Milk and Dairy Beef Residue 
 20.8   Prevention Protocol" with a licensed veterinarian, displays the 
 20.9   signed certificate in the milkhouse, and sends verification to 
 20.10  the commissioner within the 30-day temporary permit status 
 20.11  period.  If the producer does not comply within the temporary 
 20.12  permit status period, the Grade A or manufacturing grade permit 
 20.13  must be suspended.  A milk producer whose milk supply is in 
 20.14  violation of subdivision 3, clause (6) or (7), and has caused a 
 20.15  bulk load to test positive is subject to clauses (1) to (3) of 
 20.16  this paragraph.  
 20.17     (1) For the first violation in a 12-month period, the 
 20.18  penalty is the value of all milk on the contaminated load plus 
 20.19  any costs associated with the disposition of the contaminated 
 20.20  load.  Future pick-ups are prohibited until subsequent testing 
 20.21  reveals the milk is free of drug residue.  A farm inspection 
 20.22  must be completed by the plant representative and the producer 
 20.23  to determine the cause of the residue and actions required to 
 20.24  prevent future violations. 
 20.25     (2) For the second violation in a 12-month period, the 
 20.26  penalty is the value of all milk on the contaminated load plus 
 20.27  any costs associated with the disposition of the contaminated 
 20.28  load.  Future pick-ups are prohibited until subsequent testing 
 20.29  reveals the milk is free of drug residue.  A farm inspection 
 20.30  must be completed by the regulatory agency or its agent to 
 20.31  determine the cause of the residue and actions required to 
 20.32  prevent future violations. 
 20.33     (3) For the third violation in a 12-month period, the 
 20.34  penalty is the value of all milk on the contaminated load plus 
 20.35  any costs associated with the disposition of the contaminated 
 20.36  load.  Future pick-ups are prohibited until subsequent testing 
 21.1   reveals the milk is free of drug residue.  The commissioner or 
 21.2   the commissioner's agent shall also notify the producer by 
 21.3   certified mail that the commissioner is initiating 
 21.4   administrative procedures to revoke the producer's right to sell 
 21.5   milk for a minimum of 30 days.  
 21.6      (4) If a bulk load of milk tests negative for residues and 
 21.7   there is a positive producer sample on the load, no civil 
 21.8   penalties may be assessed to the producer.  The plant must 
 21.9   report the positive result within 24 hours and reject further 
 21.10  milk shipments from that producer until the producer's milk 
 21.11  tests negative.  A farm inspection must be completed by the 
 21.12  plant representative and the producer to determine the cause of 
 21.13  the residue and actions required to prevent future violations.  
 21.14  The department shall suspend the producer's permit and count the 
 21.15  violation on the producer's record.  The Grade A or 
 21.16  manufacturing grade permit must be converted to temporary status 
 21.17  for not more than 30 days during which time the producer must 
 21.18  review the "Milk and Dairy Beef Residue Prevention Protocol" 
 21.19  with a licensed veterinarian, display the signed certificate in 
 21.20  the milkhouse, and send verification to the commissioner.  If 
 21.21  these conditions are met, the Grade A or manufacturing grade 
 21.22  permit must be reinstated.  If the producer does not comply 
 21.23  within the temporary permit status period, the Grade A or 
 21.24  manufacturing grade permit must be suspended. 
 21.25     (e) A milk producer that has been certified as completing 
 21.26  the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
 21.27  months of the first violation of subdivision 3, clause (7), need 
 21.28  only review the cause of the violation with a field service 
 21.29  representative within three days to maintain Grade A or 
 21.30  manufacturing grade permit and shipping status if all other 
 21.31  requirements of this section are met. 
 21.32     (f) Civil penalties collected under this section must be 
 21.33  deposited in the milk inspection services account established in 
 21.34  this chapter. 
 21.35     Sec. 21.  Minnesota Statutes 2000, section 32.394, 
 21.36  subdivision 4, is amended to read: 
 22.1      Subd. 4.  [RULES.] The commissioner shall by rule 
 22.2   promulgate identity, production and processing standards for 
 22.3   milk, milk products and goat milk which are intended to bear the 
 22.4   Grade A label. 
 22.5      In the exercise of the authority to establish requirements 
 22.6   for Grade A milk, milk products and goat milk, the commissioner 
 22.7   may adopt adopts definitions, standards of identity, and 
 22.8   requirements for production and processing contained in the 
 22.9   "1999 Grade A Pasteurized Milk Ordinance" and the "1995 Grade A 
 22.10  Condensed and Dry Milk Ordinance" of the United States 
 22.11  Department of Health and Human Services, in a manner provided 
 22.12  for and not in conflict with law. 
 22.13     Sec. 22.  Minnesota Statutes 2000, section 32.415, is 
 22.14  amended to read: 
 22.15     32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
 22.16     (a) The commissioner may adopt rules to provide uniform 
 22.17  quality standards, and producers of milk used for manufacturing 
 22.18  purposes shall conform to the standards contained in Subparts B, 
 22.19  C, D, E, and F of the United States Department of Agriculture 
 22.20  Consumer and Marketing Service Recommended Requirements for Milk 
 22.21  for Manufacturing Purposes and its Production and Processing, 
 22.22  Vol. 37 Federal Register, No. 68, Part II, April 7, 1972, as 
 22.23  revised through March 1, 1997 November 12, 1996, except that the 
 22.24  commissioner shall develop methods by which producers can comply 
 22.25  with the standards without violation of religious beliefs.  
 22.26     (b) The commissioner shall perform or contract for the 
 22.27  performance of the inspections necessary to implement this 
 22.28  section or shall certify dairy industry personnel to perform the 
 22.29  inspections.  
 22.30     (c) The commissioner and other employees of the department 
 22.31  shall make every reasonable effort to assist producers in 
 22.32  achieving the milk quality standards at minimum cost and to use 
 22.33  the experience and expertise of the University of Minnesota and 
 22.34  the agricultural extension service to assist producers in 
 22.35  achieving the milk quality standards in the most cost-effective 
 22.36  manner.  
 23.1      (d) The commissioner shall consult with producers, 
 23.2   processors, and others involved in the dairy industry in order 
 23.3   to prepare for the implementation of this section including 
 23.4   development of informational and educational materials, 
 23.5   meetings, and other methods of informing producers about the 
 23.6   implementation of standards under this section. 
 23.7      Sec. 23.  Minnesota Statutes 2000, section 32.475, 
 23.8   subdivision 2, is amended to read: 
 23.9      Subd. 2.  [MINNESOTA GRADES.] It is unlawful to sell, offer 
 23.10  or expose for sale, or have in possession with intent to sell 
 23.11  any butter at retail unless it has been graded and labeled with 
 23.12  such grades as follows: 
 23.13     (a) Grade, Minnesota, AA -- 93 score U.S. Grade AA 
 23.14     (b) Grade, Minnesota, A -- 92 score U.S. Grade A 
 23.15     (c) Grade, Minnesota, B -- 90 score U.S. Grade B 
 23.16     (d) Grade, Minnesota, undergrade -- all butter below 
 23.17  Minnesota B.  
 23.18     For the purposes of this section "sale at retail" shall 
 23.19  include all sales to a restaurant or eating establishment that 
 23.20  serves butter to its patrons or that uses butter in the 
 23.21  preparation of any food which is served to its patrons.  
 23.22     Sec. 24.  Minnesota Statutes 2000, section 32.70, 
 23.23  subdivision 7, is amended to read: 
 23.24     Subd. 7.  [SELECTED CLASS I DAIRY PRODUCTS.] "Selected 
 23.25  class I dairy products" means milk for human consumption in 
 23.26  fluid form and all other class I dairy products as defined by 
 23.27  the Upper Midwest Milk Marketing Order, Code of Federal 
 23.28  Regulations, title 7, part 1068.40 1030.40, or successor orders. 
 23.29     Sec. 25.  Minnesota Statutes 2000, section 32.70, 
 23.30  subdivision 8, is amended to read: 
 23.31     Subd. 8.  [SELECTED CLASS II DAIRY PRODUCTS.] "Selected 
 23.32  class II dairy products" means milk for human consumption 
 23.33  processed into fluid cream, eggnog, yogurt, and all other class 
 23.34  II dairy products as defined by the Upper Midwest Milk Marketing 
 23.35  Order, Code of Federal Regulations, title 7, part 1068.40 
 23.36  1030.40, or successor orders. 
 24.1      Sec. 26.  Minnesota Statutes 2000, section 41B.025, 
 24.2   subdivision 1, is amended to read: 
 24.3      Subdivision 1.  [ESTABLISHMENT.] There is created a public 
 24.4   body corporate and politic to be known as the "Minnesota rural 
 24.5   finance authority," which shall perform the governmental 
 24.6   functions and exercise the sovereign powers delegated to it in 
 24.7   sections 41B.01 to 41B.23 and chapter 41C in furtherance of the 
 24.8   public policies and purposes declared in section 41B.01.  The 
 24.9   board of the authority consists of the commissioners of 
 24.10  agriculture, commerce, trade and economic development, and 
 24.11  finance, the state auditor, and six public members appointed by 
 24.12  the governor with the advice and consent of the senate.  The 
 24.13  state auditor may designate one staff member to serve in the 
 24.14  auditor's place.  No public member may reside within the 
 24.15  metropolitan area, as defined in section 473.121, subdivision 
 24.16  2.  Each member shall hold office until a successor has been 
 24.17  appointed and has qualified.  A certificate of appointment or 
 24.18  reappointment of any member is conclusive evidence of the proper 
 24.19  appointment of the member. 
 24.20     Sec. 27.  Minnesota Statutes 2000, section 41B.03, 
 24.21  subdivision 2, is amended to read: 
 24.22     Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
 24.23  to the eligibility requirements of subdivision 1, a prospective 
 24.24  borrower for a restructured loan must:  
 24.25     (1) have received at least 50 percent of average annual 
 24.26  gross income from farming for the past three years or, for 
 24.27  homesteaded property, received at least 40 percent of average 
 24.28  gross income from farming in the past three years, and farming 
 24.29  must be the principal occupation of the borrower; 
 24.30     (2) have a debt-to-asset ratio equal to or greater than 50 
 24.31  percent and in determining this ratio, the assets must be valued 
 24.32  at their current market value; 
 24.33     (3) have projected annual expenses, including operating 
 24.34  expenses, family living, and interest expenses after the 
 24.35  restructuring, that do not exceed 95 percent of the borrower's 
 24.36  projected annual income considering prior production history and 
 25.1   projected prices for farm production, except that the authority 
 25.2   may reduce the 95 percent requirement if it finds that other 
 25.3   significant factors in the loan application support the making 
 25.4   of the loan; 
 25.5      (4) (3) demonstrate substantial difficulty in meeting 
 25.6   projected annual expenses without restructuring the loan; and 
 25.7      (5) (4) must have a total net worth, including assets and 
 25.8   liabilities of the borrower's spouse and dependents, of less 
 25.9   than $400,000 in 1999 and an amount in subsequent years which is 
 25.10  adjusted for inflation by multiplying $400,000 by the cumulative 
 25.11  inflation rate as determined by the United States All-Items 
 25.12  Consumer Price Index. 
 25.13     Sec. 28.  Minnesota Statutes 2000, section 41B.036, is 
 25.14  amended to read: 
 25.15     41B.036 [GENERAL POWERS OF THE AUTHORITY.] 
 25.16     For the purpose of exercising the specific powers granted 
 25.17  in section 41B.04 and effectuating the other purposes of 
 25.18  sections 41B.01 to 41B.23 the authority has the general powers 
 25.19  granted in this section. 
 25.20     (a) It may sue and be sued. 
 25.21     (b) It may have a seal and alter the seal. 
 25.22     (c) It may make, and from time to time, amend and repeal 
 25.23  rules consistent with sections 41B.01 to 41B.23. 
 25.24     (d) It may acquire, hold, and dispose of real or personal 
 25.25  property for its corporate purposes. 
 25.26     (e) It may enter into agreements, contracts, or other 
 25.27  transactions with any federal or state agency, any person and 
 25.28  any domestic or foreign partnership, corporation, association, 
 25.29  or organization, including contracts or agreements for 
 25.30  administration and implementation of all or part of sections 
 25.31  41B.01 to 41B.23. 
 25.32     (f) It may acquire real property, or an interest therein, 
 25.33  in its own name, by purchase or foreclosure, where such 
 25.34  acquisition is necessary or appropriate. 
 25.35     (g) It may provide general technical services related to 
 25.36  rural finance. 
 26.1      (h) It may provide general consultative assistance services 
 26.2   related to rural finance. 
 26.3      (i) It may promote research and development in matters 
 26.4   related to rural finance. 
 26.5      (j) It may enter into agreements with lenders, borrowers, 
 26.6   or the issuers of securities for the purpose of regulating the 
 26.7   development and management of farms financed in whole or in part 
 26.8   by the proceeds of qualified agricultural loans. 
 26.9      (k) It may enter into agreements with other appropriate 
 26.10  federal, state, or local governmental units to foster rural 
 26.11  finance.  It may give advance reservations of loan financing as 
 26.12  part of the agreements, with the understanding that the 
 26.13  authority will only approve the loans pursuant to normal 
 26.14  procedures, and may adopt special procedures designed to meet 
 26.15  problems inherent in such programs. 
 26.16     (l) It may undertake and carry out studies and analyses of 
 26.17  rural financing needs within the state and ways of meeting such 
 26.18  needs including:  data with respect to geographical 
 26.19  distribution; farm size; the distribution of farm credit needs 
 26.20  according to debt ratios and similar factors; the amount and 
 26.21  quality of available financing and its distribution according to 
 26.22  factors affecting rural financing needs and the meeting thereof; 
 26.23  and may make the results of such studies and analyses available 
 26.24  to the public and may engage in research and disseminate 
 26.25  information on rural finance. 
 26.26     (m) It may survey and investigate the rural financing needs 
 26.27  throughout the state and make recommendations to the governor 
 26.28  and the legislature as to legislation and other measures 
 26.29  necessary or advisable to alleviate any existing shortage in the 
 26.30  state. 
 26.31     (n) It may establish cooperative relationships with such 
 26.32  county and multicounty authorities as may be established and may 
 26.33  develop priorities for the utilization of authority resources 
 26.34  and assistance within a region in cooperation with county and 
 26.35  multicounty authorities. 
 26.36     (o) It may contract with, use, or employ any federal, 
 27.1   state, regional, or local public or private agency or 
 27.2   organization, legal counsel, financial advisors, investment 
 27.3   bankers or others, upon terms it deems necessary or desirable, 
 27.4   to assist in the exercise of any of the powers granted in 
 27.5   sections 41B.01 to 41B.23 and to carry out the objectives of 
 27.6   sections 41B.01 to 41B.23 and may pay for the services from 
 27.7   authority funds. 
 27.8      (p) It may establish cooperative relationships with 
 27.9   counties to develop priorities for the use of authority 
 27.10  resources and assistance within counties and to consider county 
 27.11  plans and programs in the process of setting the priorities. 
 27.12     (q) It may delegate any of its powers to its officers or 
 27.13  staff. 
 27.14     (r) It may enter into agreements with qualified 
 27.15  agricultural lenders or others insuring or guaranteeing to the 
 27.16  state the payment of all or a portion of qualified agricultural 
 27.17  loans. 
 27.18     (s) It may enter into agreements with eligible agricultural 
 27.19  lenders providing for advance reservations of purchases of 
 27.20  participation interests in restructuring loans, if the 
 27.21  agreements provide that the authority may only purchase 
 27.22  participation interests in restructuring loans under the normal 
 27.23  procedure.  The authority may provide in an agreement for 
 27.24  special procedures or requirements designed to meet specific 
 27.25  conditions or requirements. 
 27.26     (t) It may allow farmers who are natural persons to combine 
 27.27  programs of the federal Agriculture Credit Act of 1987 with 
 27.28  programs of the rural finance authority. 
 27.29     (u) From within available funds generated by program fees, 
 27.30  it may provide partial or full tuition assistance for farm 
 27.31  management programs required under section 41B.03, subdivision 
 27.32  3, clause (7). 
 27.33     (v) It may provide technical information and other services 
 27.34  and assistance to state or local government departments, 
 27.35  agencies, and offices to maximize the utilization of 
 27.36  Minnesota-produced agricultural products, including but not 
 28.1   limited to ethanol and other liquid fuels.  
 28.2      Sec. 29.  Minnesota Statutes 2000, section 41B.043, 
 28.3   subdivision 1b, is amended to read: 
 28.4      Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
 28.5   participate in an agricultural improvement loan with an eligible 
 28.6   lender to a farmer who meets the requirements of section 41B.03, 
 28.7   subdivision 1, clauses (1) and (2), and who are actively engaged 
 28.8   in farming.  Participation is limited to 45 percent of the 
 28.9   principal amount of the loan or $100,000 $125,000, whichever is 
 28.10  less.  The interest rates and repayment terms of the authority's 
 28.11  participation interest may be different than the interest rates 
 28.12  and repayment terms of the lender's retained portion of the loan.
 28.13     Sec. 30.  Minnesota Statutes 2000, section 41B.043, 
 28.14  subdivision 2, is amended to read: 
 28.15     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
 28.16  $35,000 or $125,000 for a loan participation or be made to 
 28.17  refinance an existing debt.  Each direct loan and participation 
 28.18  must be secured by a mortgage on real property and such other 
 28.19  security as the authority may require. 
 28.20     Sec. 31.  Minnesota Statutes 2000, section 41B.046, 
 28.21  subdivision 2, is amended to read: 
 28.22     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 28.23  and implement a value-added agricultural product loan program to 
 28.24  help farmers finance the purchase of stock in a cooperative that 
 28.25  is proposing to build or purchase and operate an agricultural 
 28.26  product processing facility or already owns and operates an 
 28.27  agricultural product processing facility. 
 28.28     Sec. 32.  Minnesota Statutes 2000, section 97B.001, 
 28.29  subdivision 1, is amended to read: 
 28.30     Subdivision 1.  [AGRICULTURAL LAND DEFINITION.] For 
 28.31  purposes of this section, "agricultural land" means land: 
 28.32     (1) that is plowed or tilled; 
 28.33     (2) that has standing crops or crop residues; or 
 28.34     (3) within a maintained fence for enclosing domestic 
 28.35  livestock; 
 28.36     (4) that is planted native or introduced grassland or hay 
 29.1   land; or 
 29.2      (5) that is planted to short rotation woody crops as 
 29.3   defined in section 41B.048, subdivision 4. 
 29.4      Sec. 33.  [239.77] [BIODIESEL MANDATE FOR GOVERNMENT 
 29.5   VEHICLES.] 
 29.6      Subdivision 1.  [BIODIESEL FUEL OIL, DEFINED.] "Biodiesel 
 29.7   fuel oil" means a biodegradable, combustible liquid fuel derived 
 29.8   from vegetable oils or animal fats that meets ASTM 
 29.9   specifications PS 121-99 and is suitable for blending with 
 29.10  diesel fuel oil for use in internal combustion diesel engines. 
 29.11     Subd. 2.  [STATE VEHICLE MANDATE.] On or after July 1, 
 29.12  2002, all diesel fuel consumed in Minnesota in internal 
 29.13  combustion engines in vehicles owned or operated by the state of 
 29.14  Minnesota, the metropolitan council, and transit services 
 29.15  receiving funding from the metropolitan council must contain at 
 29.16  least two percent biodiesel fuel by volume. 
 29.17     Subd. 3.  [MONITOR AND REPORT.] The commissioner of 
 29.18  transportation, in consultation with the commissioners of the 
 29.19  pollution control agency, administration, and agriculture, shall 
 29.20  monitor the performance of vehicles under subdivision 2 and 
 29.21  report to the legislative committees with jurisdiction over 
 29.22  transportation, environment, and state government policy and 
 29.23  finance no later than January 1, 2004.  The report must assess 
 29.24  the operating costs, operational performance, and environmental 
 29.25  impact of the mandate under subdivision 2. 
 29.26     Sec. 34.  [239.775] [PRIVATE SECTOR BIODIESEL FUEL OIL 
 29.27  DEMONSTRATION PROJECTS.] 
 29.28     The commissioner of transportation shall consult with 
 29.29  representatives of the trucking, rail, utility, waste-hauling, 
 29.30  mining, timber, agriculture, and passenger transit industries to 
 29.31  develop protocols for biodiesel fuel demonstration projects.  
 29.32  The commissioner shall report to the legislative committees with 
 29.33  jurisdiction over transportation, environment, and state 
 29.34  government policy and finance no later than January 1, 2002, on 
 29.35  the cost, feasibility, and desirability of conducting biodiesel 
 29.36  field demonstration projects. 
 30.1      Sec. 35.  Minnesota Statutes 2000, section 296A.01, is 
 30.2   amended by adding a subdivision to read: 
 30.3      Subd. 51.  [BIODIESEL FUEL OIL.] "Biodiesel fuel oil" has 
 30.4   the meaning given in section 239.77, subdivision 1. 
 30.5      Sec. 36.  Minnesota Statutes 2000, section 296A.08, 
 30.6   subdivision 1, is amended to read: 
 30.7      Subdivision 1.  [TAX IMPOSED.] There is imposed an excise 
 30.8   tax on all special fuel at the rates specified in subdivision 
 30.9   2.  For purposes of this section, "owner or operator" means the 
 30.10  operation of licensed motor vehicles, whether loaded or empty, 
 30.11  whether for compensation or not for compensation, and whether 
 30.12  owned by or leased to the motor carrier who operates them or 
 30.13  causes them to be operated. 
 30.14     (a) For undyed diesel fuel, biodiesel fuel oil, and undyed 
 30.15  kerosene, the tax is imposed on the first licensed distributor 
 30.16  who received the product in Minnesota. 
 30.17     (b) For dyed fuel being used illegally in a licensed motor 
 30.18  vehicle, the tax is imposed on the owner or operator of the 
 30.19  motor vehicle. 
 30.20     (c) For dyed fuel used in a motor vehicle but subject to a 
 30.21  federal exemption, although no federal tax may be imposed, the 
 30.22  owner or operator of the vehicle is liable for the state tax. 
 30.23     (d) For other fuels, including jet fuel, propane, and 
 30.24  compressed natural gas, the tax is imposed on the distributor, 
 30.25  special fuel dealer, or bulk purchaser. 
 30.26     (e) Any person delivering special fuel on which the excise 
 30.27  tax has not previously been paid, into the supply tank of an 
 30.28  aircraft or a licensed motor vehicle shall report such delivery 
 30.29  and shall pay, or collect and pay the excise tax on the special 
 30.30  fuel so delivered to the commissioner. 
 30.31     Sec. 37.  [325E.165] [DEFINITIONS.] 
 30.32     Subdivision 1.  [SCOPE.] For the purposes of sections 
 30.33  325E.165 to 325E.167, the terms defined in this section have the 
 30.34  meanings given them. 
 30.35     Subd. 2.  [FARM TRACTOR.] "Farm tractor" means a 
 30.36  self-propelled vehicle that is designed primarily for pulling or 
 31.1   propelling agricultural machinery and implements and is used 
 31.2   principally in the occupation or business of farming, including 
 31.3   an implement of husbandry, as defined in section 169.01, 
 31.4   subdivision 55, that is self-propelled. 
 31.5      Subd. 3.  [PERSON.] "Person" means an individual, firm, 
 31.6   partnership, incorporated and unincorporated association, or 
 31.7   other legal or commercial entity. 
 31.8      Sec. 38.  [325E.166] [CLOCK-HOUR METERS; PROHIBITED ACTS.] 
 31.9      Subdivision 1.  [TAMPERING.] No person shall, with intent 
 31.10  to defraud, knowingly tamper with, adjust, alter, change, set 
 31.11  back, disconnect, or fail to connect the clock-hour meter of a 
 31.12  farm tractor, or cause any of the foregoing to occur to a 
 31.13  clock-hour meter of a farm tractor, so as to reflect fewer hours 
 31.14  than the farm tractor has actually been in operation. 
 31.15     Subd. 2.  [OPERATION WITH DISCONNECTED OR NONFUNCTIONAL 
 31.16  METER.] No person shall, with intent to defraud, operate a farm 
 31.17  tractor knowing that the clock-hour meter of the farm tractor is 
 31.18  disconnected or nonfunctional. 
 31.19     Subd. 3.  [TAMPERING DEVICE.] No person shall advertise for 
 31.20  sale, sell, use, or install on any part of a farm tractor or on 
 31.21  a clock-hour meter in a farm tractor a device that causes the 
 31.22  clock-hour meter to register any hours of operation other than 
 31.23  the true hours of operation that the clock-hour meter was 
 31.24  designed to measure. 
 31.25     Subd. 4.  [DISCLOSURE.] No person shall sell or offer for 
 31.26  sale a farm tractor with knowledge that the hours registered on 
 31.27  the clock-hour meter have been altered so as to reflect fewer 
 31.28  hours than the farm tractor has actually been in operation, 
 31.29  without disclosing the fact to prospective purchasers. 
 31.30     Subd. 5.  [CONSPIRACY.] No person shall conspire with 
 31.31  another person to violate this section. 
 31.32     Sec. 39.  [325E.167] [PENALTIES; REMEDIES.] 
 31.33     Subdivision 1.  [CRIMINAL PENALTY.] A person who is found 
 31.34  to have violated sections 325E.165 to 325E.167 is guilty of a 
 31.35  gross misdemeanor. 
 31.36     Subd. 2.  [CIVIL PENALTY.] In addition to the penalties 
 32.1   provided in subdivision 1, any person who is found to have 
 32.2   violated sections 325E.165 to 325E.167 is subject to the 
 32.3   penalties in section 8.31. 
 32.4      Subd. 3.  [PRIVATE RIGHT OF ACTION.] A person injured by a 
 32.5   violation of sections 325E.165 to 325E.167 may recover the 
 32.6   actual damages sustained together with costs and disbursements, 
 32.7   including reasonable attorney fees.  The court in its discretion 
 32.8   may increase the award of damages to an amount not to exceed 
 32.9   three times the actual damages sustained or $1,500, whichever is 
 32.10  greater. 
 32.11     Sec. 40.  [348.125] [COYOTE CONFLICT MANAGEMENT OPTION.] 
 32.12     A county board may, by resolution, offer a bounty for the 
 32.13  destruction of coyotes (Canis latrans).  The resolution may be 
 32.14  made applicable to the whole or any part of the county.  The 
 32.15  bounty must apply during the months specified in the resolution 
 32.16  and be in an amount determined by the board.  
 32.17     Sec. 41.  [BIODIESEL SUPPLY AND DISTRIBUTION REPORT.] 
 32.18     By February 15 in 2002 and 2003, the commissioner of 
 32.19  agriculture, in consultation with the commissioners of 
 32.20  transportation and commerce, shall report to the legislative 
 32.21  committees with jurisdiction over agriculture and transportation 
 32.22  policy on (1) the production and distribution of biodiesel fuel 
 32.23  oil in Minnesota, (2) the adequacy of biodiesel fuel oil 
 32.24  supplies, and (3) the distribution system to achieve the 
 32.25  requirement in Minnesota Statutes, section 239.77. 
 32.26     Sec. 42.  [SUSPENSION OF RULE.] 
 32.27     The application of Minnesota Rules, part 1720.0620, is 
 32.28  suspended from January 1, 2001, to June 1, 2002, for products 
 32.29  used exclusively for poultry.  
 32.30     Sec. 43.  [APPROPRIATION; BIODIESEL.] 
 32.31     $111,000 is appropriated to the metropolitan council in 
 32.32  fiscal year 2003 for the cost of the biodiesel requirement.  
 32.33  This is a one-time appropriation.  The metropolitan council must 
 32.34  report its actual cost of the biodiesel mandate by January 15, 
 32.35  2003. 
 32.36     Sec. 44.  [REPEALER.] 
 33.1      Minnesota Statutes 2000, sections 17.042; 17.06; 17.07; 
 33.2   17.108; 17.139; 17.45; 17.4996; 17.76; 17.861; 17A.091, 
 33.3   subdivision 1; 17B.21; 17B.23; 17B.24; 17B.25; 17B.26; 17B.27; 
 33.4   18.205; 24.001; 24.002; 24.12; 24.131; 24.135; 24.141; 24.145; 
 33.5   24.151; 24.155; 24.161; 24.171; 24.175; 24.18; 24.181; 25.47; 
 33.6   27.185; 29.025; 29.049; 30.50; 30.51; 31.185; 31.73; 31B.07; 
 33.7   32.11; 32.12; 32.18; 32.19; 32.20; 32.203; 32.204; 32.206; 
 33.8   32.208; 32.471, subdivision 1; 32.474; 32.481, subdivision 2; 
 33.9   32.529; 32.53; 32.531, subdivisions 1, 5, 6, and 7; 32.5311; 
 33.10  32.5312; 32.532; 32.533; 32.534; 32.55, subdivisions 15, 16, and 
 33.11  17; 33.001; 33.002; 33.01; 33.011; 33.02; 33.03; 33.031; 33.032; 
 33.12  33.06; 33.07; 33.08; 33.09; 33.091; 33.111; 35.04; 35.14; and 
 33.13  35.84, are repealed. 
 33.14     Sec. 45.  [EFFECTIVE DATE.] 
 33.15     Sections 1, 3, 12, 13, 26, 27, 29, 30, 31, 42, and 44 are 
 33.16  effective the day following final enactment.