1.1                          A bill for an act 
  1.2             relating to agricultural relief; providing for a 
  1.3             payment to farmers at risk based on the acreage of 
  1.4             agricultural use land; appropriating money. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [AGRICULTURAL ASSISTANCE IN 2000.] 
  1.7      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  1.8   subdivision apply to this section. 
  1.9      (b) "Acre" means an acre of effective agricultural use land 
  1.10  within the state of Minnesota as reported to the Farm Service 
  1.11  Agency on form 156EZ. 
  1.12     (c) "Commissioner" means the commissioner of revenue. 
  1.13     (d) "Disaster county" means a county in Minnesota that: 
  1.14     (1) received a presidential major disaster declaration in 
  1.15  1999; or 
  1.16     (2) was named as a contiguous county under a presidential 
  1.17  major disaster declaration in 1999. 
  1.18     (e) "Effective agricultural use land" means land suitable 
  1.19  for growing an agricultural crop and excludes land enrolled in 
  1.20  the conservation reserve program established by Minnesota 
  1.21  Statutes, section 103F.515, or the water bank program 
  1.22  established by Minnesota Statutes, section 103F.601. 
  1.23     (f) "Farm" or "farm operation" means an agricultural 
  1.24  production operation located wholly or in part within a disaster 
  1.25  county that: 
  2.1      (1) has a unique farm number as reported on form 156EZ to 
  2.2   the Farm Service Agency and includes at least 40 acres of 
  2.3   effective agricultural use land; or 
  2.4      (2) has produced at least $10,000 in sales of unprocessed 
  2.5   livestock or unprocessed dairy products as reported on schedule 
  2.6   F or form 1065, 1120, or 1120S of the farmer's federal income 
  2.7   tax return for the taxable year beginning in either calendar 
  2.8   year 1998 or 1999. 
  2.9      (g) "Farm operator" means a person who is identified as the 
  2.10  operator of a farm on form 156EZ filed with the Farm Service 
  2.11  Agency. 
  2.12     (h) "Farm Service Agency" means the United States 
  2.13  Department of Agriculture, Farm Service Agency. 
  2.14     (i) "Farmer" or "farmer at risk" means a person who: 
  2.15     (1) produces an agricultural crop or livestock and is 
  2.16  reported to the Farm Service Agency as bearing a percentage of 
  2.17  the risk for the farm operation; or 
  2.18     (2) owns or resides on property homesteaded under Minnesota 
  2.19  Statutes, section 273.124, subdivision 1, paragraph (c), and 
  2.20  operates a livestock production facility. 
  2.21     (j) "Livestock" means cattle, hogs, poultry, and sheep. 
  2.22     (k) "Person" includes individuals, fiduciaries, estates, 
  2.23  trusts, partnerships, joint ventures, and corporations. 
  2.24     Subd. 2.  [PAYMENT TO FARMERS.] (a) A farm operator may 
  2.25  apply on a separate form for each farm that the person operates 
  2.26  to the commissioner for payments as provided under this 
  2.27  subdivision.  The payment must be made to each farmer at risk 
  2.28  for a farm operation and must equal $4, multiplied by the number 
  2.29  of acres of the farm operation, multiplied by the percentage of 
  2.30  the risk borne by that farmer for that farm operation. 
  2.31     (b) Applications must be based on information reported to 
  2.32  the Farm Service Agency for crop year 1999, by December 31, 
  2.33  1999, and must include the social security number, federal 
  2.34  employer identification number, or a producer number assigned by 
  2.35  the Farm Service Agency for each farmer and the Farm Service 
  2.36  Agency farm number from form 156EZ.  The commissioner shall 
  3.1   prepare application forms for the payment and ensure that they 
  3.2   are available throughout the state.  The commissioner shall make 
  3.3   payments by June 30, 2000, to each eligible farmer who applies 
  3.4   by May 31, 2000, or within 30 days of the application if the 
  3.5   application is received after May 31, 2000.  In no case will 
  3.6   applications be accepted after September 30, 2000. 
  3.7      Subd. 3.  [ALTERNATE QUALIFICATION.] (a) If an agricultural 
  3.8   production operation does not meet the definition of a farm 
  3.9   under subdivision 1 solely because: 
  3.10     (1) the farm operator had not filed a form 156EZ with the 
  3.11  Farm Service Agency; 
  3.12     (2) there was an error in the Farm Service Agency's 
  3.13  records; or 
  3.14     (3) an operator operates more than one farm and the acres 
  3.15  of effective agricultural use land of a farm is less than 40 
  3.16  acres, but the combined acres of effective agricultural use land 
  3.17  of all land operated by that operator is at least 40 acres, 
  3.18  the commissioner may allow the farm operator to apply for 
  3.19  payment under subdivision 2 after providing the information the 
  3.20  commissioner requires to determine the number of acres that 
  3.21  would be comparable to the effective agricultural use land 
  3.22  listed on form 156EZ. 
  3.23     (b) If the number of acres of effective agricultural use 
  3.24  land for crop year 1999 for a farm is greater than indicated in 
  3.25  the Farm Service Agency's records, the commissioner may allow a 
  3.26  farm operator to apply for payment on the greater acreage after 
  3.27  providing the information the commissioner requires. 
  3.28     (c) If a person who produced an agricultural crop or 
  3.29  livestock in 1999 and bore a portion of the risk for the farm 
  3.30  operation does not meet the definition of a farmer under 
  3.31  subdivision 1 solely because that information was not reported 
  3.32  to the Farm Service Agency or because there was an error in the 
  3.33  Farm Service Agency's records, the commissioner may allow the 
  3.34  farmer to be included on an application for payment under 
  3.35  subdivision 2 after the farmer provides the information the 
  3.36  commissioner requires to determine the farmer was at risk for 
  4.1   that farm. 
  4.2      Subd. 4.  [LIMIT.] No person may receive a payment under 
  4.3   subdivision 2 that exceeds $5,600. 
  4.4      Subd. 5.  [APPLICATION OF OTHER LAWS.] The payments under 
  4.5   subdivision 2 are a "Minnesota tax law" for purposes of 
  4.6   Minnesota Statutes, section 270B.01, subdivision 8. 
  4.7      Subd. 6.  [REMEDIES.] A farmer denied a payment under 
  4.8   subdivision 2 may appeal that denial under Minnesota Statutes, 
  4.9   section 289A.50, subdivision 7. 
  4.10     Subd. 7.  [INTEREST.] Payments under subdivision 2 bear 
  4.11  interest at the rate specified in Minnesota Statutes, section 
  4.12  289A.55, subdivision 1, from the later of the payment dates 
  4.13  specified under subdivision 2 or 75 days after a complete 
  4.14  payment application was filed with the commissioner. 
  4.15     Subd. 8.  [PENALTIES.] If the commissioner determines that 
  4.16  claims for payments under subdivision 2 are or were excessive 
  4.17  and were filed with fraudulent intent, the claim must be 
  4.18  disallowed in full.  If the claim has been paid, the amount 
  4.19  disallowed must be recovered by assessment and collection under 
  4.20  Minnesota Statutes, chapter 289A.  The assessment must be made 
  4.21  within two years after a check is cashed, but if cashing a check 
  4.22  constitutes theft under Minnesota Statutes, section 609.52, or 
  4.23  forgery under Minnesota Statutes, section 609.631, the 
  4.24  assessment may be made at any time.  The assessment may be 
  4.25  appealed administratively and judicially. 
  4.26     Sec. 2.  [APPROPRIATION.] 
  4.27     The amount necessary to fund the payments required under 
  4.28  section 1, subdivision 2, is appropriated in fiscal year 2000 
  4.29  from the general fund to the commissioner of revenue.  This 
  4.30  appropriation is available until June 30, 2001. 
  4.31     Sec. 3.  [EFFECTIVE DATE.] 
  4.32     Sections 1 and 2 are effective the day following final 
  4.33  enactment.