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2003 Minnesota Session Laws

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                            CHAPTER 107-S.F.No. 990 
                  An act relating to agriculture; changing certain wild 
                  rice provisions; changing certain procedures and 
                  requirements for organic food; clarifying certain food 
                  provisions; clarifying an enforcement provision; 
                  changing a milk storage requirement; providing for 
                  compliance with federal law; extending a provision 
                  authorizing certain emergency restrictions; setting 
                  certain ethanol goals; changing certain animal lot 
                  regulations; requiring that certain gasoline contain 
                  denatured ethanol; eliminating a requirement for 
                  anaplasmosis testing; extending an agency sunset; 
                  providing a turtle seller's license exemption; 
                  authorizing certain persons to own and operate 
                  agricultural land; amending Minnesota Statutes 2002, 
                  sections 30.49, subdivision 6; 31.05, by adding a 
                  subdivision; 31.101, subdivisions 3, 4, 5, 6, 7, 8, 9, 
                  10, 11, 12; 31.102, subdivision 1; 31.103, subdivision 
                  1; 31.92, subdivision 3, by adding subdivisions; 
                  31.94; 32.01, subdivision 10; 32.21, subdivision 4; 
                  32.394, subdivisions 4, 8c; 32.415; 35.0661, 
                  subdivision 4; 41A.09, subdivision 1a; 41D.01, 
                  subdivision 4; 97C.605, subdivision 2c; 116.07, 
                  subdivision 7; 239.791, subdivision 1; 500.221, 
                  subdivision 2; proposing coding for new law in 
                  Minnesota Statutes, chapter 31; repealing Minnesota 
                  Statutes 2002, sections 31.92, subdivisions 2a, 5; 
                  31.93; 31.95; 32.391, subdivisions 1a, 1b, 1c; 35.251; 
                  Minnesota Rules, parts 1700.0800; 1700.1000; 
                  1700.1300; 1705.0550; 1705.0560; 1705.0570; 1705.0580; 
                  1705.0590; 1705.0600; 1705.0610; 1705.0630; and 
                  1715.1430. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 30.49, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PACKAGED BLENDED RICE AND CERTAIN READY-TO-EAT 
        RICE.] A package containing a blend of wild rice and at least 40 
        percent other grains or food products, and puffed or 
        ready-to-eat wild rice that is consumed or packaged on the 
        retail premises, are exempt from this section, except 
        subdivisions 3, 5, and 7. 
           Sec. 2.  Minnesota Statutes 2002, section 31.05, is amended 
        by adding a subdivision to read: 
           Subd. 5.  [EMERGENCY RESPONSE.] In the event of an 
        emergency declared by the governor's order under section 12.31, 
        if the commissioner finds or has probable cause to believe that 
        a food or consumer commodity within a specific area is likely to 
        be adulterated because of the emergency or so misbranded as to 
        be dangerous or fraudulent, or is in violation of section 
        31.131, subdivision 1, the commissioner may embargo a geographic 
        area that is included in the declared emergency.  The 
        commissioner shall provide notice to the public and to those 
        with custody of the product in as thorough a manner as is 
        practical under the emergency circumstances. 
           Sec. 3.  Minnesota Statutes 2002, section 31.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
        chemical regulations in effect on April 1, 2001, adopted under 
        authority of the Federal Insecticide, Fungicide and Rodenticide 
        Act, as provided by United States Code, title 7, chapter 6, are 
        the pesticide chemical rules in this state.  
           Sec. 4.  Minnesota Statutes 2002, section 31.101, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
        regulations in effect on April 1, 2001, as provided by Code of 
        Federal Regulations, title 21, parts 170 to 199, are the food 
        additive rules in this state.  
           Sec. 5.  Minnesota Statutes 2002, section 31.101, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
        regulations in effect on April 1, 2001, as provided by Code of 
        Federal Regulations, title 21, parts 70 to 82, are the color 
        additive rules in this state.  
           Sec. 6.  Minnesota Statutes 2002, section 31.101, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
        dietary use regulations in effect on April 1, 2001, as provided 
        by Code of Federal Regulations, title 21, parts 104 and 105, are 
        the special dietary use rules in this state.  
           Sec. 7.  Minnesota Statutes 2002, section 31.101, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
        regulations in effect on April 1, 2001, adopted under the Fair 
        Packaging and Labeling Act, as provided by United States Code, 
        title 15, sections 1451 to 1461, are the rules in this state.  
        The commissioner may not adopt amendments to these rules or 
        adopt other rules which are contrary to the labeling 
        requirements for the net quantity of contents required pursuant 
        to section 4 of the Fair Packaging and Labeling Act and the 
        regulations adopted under that act.  
           Sec. 8.  Minnesota Statutes 2002, section 31.101, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
        regulations including recodification contained in Code of 
        Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
        effect April 1, 2001, and not otherwise adopted herein, also are 
        adopted as food rules of this state.  
           Sec. 9.  Minnesota Statutes 2002, section 31.101, 
        subdivision 9, is amended to read: 
           Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
        effect on April 1, 2001, as provided by Code of Federal 
        Regulations, title 50, parts 260 to 267, are incorporated as 
        part of the fishery products rules in this state for state 
        inspections performed under a cooperative agreement with the 
        United States Department of Commerce, National Marine Fisheries 
        Service.  
           Sec. 10.  Minnesota Statutes 2002, section 31.101, 
        subdivision 10, is amended to read: 
           Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
        effect on April 1, 2001, as provided by Code of Federal 
        Regulations, title 9, part 301, et seq., are incorporated as 
        part of the meat and poultry rules in this state. 
           Sec. 11.  Minnesota Statutes 2002, section 31.101, 
        subdivision 11, is amended to read: 
           Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
        OTHER PRODUCTS.] Federal regulations in effect on April 1, 2001, 
        as provided by Code of Federal Regulations, title 7, parts 51 
        and 52, are incorporated as part of the rules in this state.  
           Sec. 12.  Minnesota Statutes 2002, section 31.101, 
        subdivision 12, is amended to read: 
           Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
        STANDARDS.] Federal grading and inspection standards for 
        manufacturing dairy plants and products and amendments thereto 
        in effect on April 1, 2001, as provided by Code of Federal 
        Regulations, title 7, part 58, subparts B-W, are adopted as the 
        dairy grade rules and manufacturing plant standards in this 
        state. 
           Sec. 13.  Minnesota Statutes 2002, section 31.102, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
        RULES.] Federal definitions and standards of identity, quality, 
        and fill of container in effect on April 1, 2001, adopted under 
        authority of the federal act, are the definitions and standards 
        of identity, quality, and fill of container in this state.  The 
        rules may be amended by the commissioner under chapter 14.  
           Sec. 14.  Minnesota Statutes 2002, section 31.103, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
        labels of consumer commodities must conform with the 
        requirements for the declaration of net quantity of contents of 
        section 4 of the Fair Packaging and Labeling Act (United States 
        Code, title 15, section 1451 et seq.) and federal regulations in 
        effect on April 1, 2001, adopted under authority of that act, 
        except to the extent that the commissioner amends the rules 
        under chapter 14.  Consumer commodities exempted from the 
        requirements of section 4 of the Fair Packaging and Labeling Act 
        are also exempt from this subdivision.  
           Sec. 15.  Minnesota Statutes 2002, section 31.92, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [FEDERAL LAW.] "Federal law" means the Organic 
        Foods Production Act of 1990, United States Code, title 7, 
        sections 6501 et seq. and associated regulations in Code of 
        Federal Regulations, title 7, section 205. 
           Sec. 16.  Minnesota Statutes 2002, section 31.92, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ORGANIC FOOD.] "Organic food" means any food 
        product, including meat, dairy, and beverage, that is marketed 
        using the term "organic" or any derivative of "organic" in its 
        labeling or advertising "Organic" is a labeling term that refers 
        to an agricultural product produced in accordance with federal 
        law. 
           Sec. 17.  Minnesota Statutes 2002, section 31.92, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [ORGANIC PRODUCTION.] "Organic production" means 
        a production system that is managed in accordance with federal 
        law to respond to site-specific conditions by integrating 
        cultural, biological, and mechanical practices that foster 
        cycling of resources, promote ecological balance, and conserve 
        biodiversity. 
           Sec. 18.  [31.925] [UNIFORMITY WITH FEDERAL LAW.] 
           The federal law specified in section 31.92, subdivision 2b, 
        is adopted as the organic food production law and rules in this 
        state. 
           Sec. 19.  Minnesota Statutes 2002, section 31.94, is 
        amended to read: 
           31.94 [COMMISSIONER DUTIES.] 
           (a) The commissioner shall enforce sections 31.92 to 31.95. 
        The commissioner shall withhold from sale or trade any product 
        sold, labeled, or advertised in violation of sections 31.92 to 
        31.95. 
           (b) The commissioner shall investigate the offering for 
        sale, labeling, or advertising of an article or substance as 
        organically grown, organically processed, or produced in an 
        organic environment if there is reason to believe that action is 
        in violation of sections 31.92 to 31.95. 
           (c) The commissioner may adopt rules that further clarify 
        organic food standards and marketing practices. 
           (d) In order to promote opportunities for organic 
        agriculture in Minnesota, the commissioner shall: 
           (1) survey producers and support services and organizations 
        to determine information and research needs in the area of 
        organic agriculture practices; 
           (2) work with the University of Minnesota to demonstrate 
        the on-farm applicability of organic agriculture practices to 
        conditions in this state; 
           (3) direct the programs of the department so as to work 
        toward the promotion of organic agriculture in this state; 
           (4) inform agencies of how state or federal programs could 
        utilize and support organic agriculture practices; and 
           (5) work closely with farmers producers, the University of 
        Minnesota, the Minnesota trade office, and other appropriate 
        organizations to identify opportunities and needs as well as 
        ensure coordination and avoid duplication of state agency 
        efforts regarding research, teaching, marketing, and extension 
        work relating to organic agriculture. 
           (e) (b) By November 15 of each even-numbered year the 
        commissioner, in conjunction with the task force created in 
        section 31.95, subdivision 3a paragraph (c), shall report on the 
        status of organic agriculture in Minnesota to the legislative 
        policy and finance committees and divisions with jurisdiction 
        over agriculture.  The report must include: 
           (1) a description of current state or federal programs 
        directed toward organic agriculture, including significant 
        results and experiences of those programs; 
           (2) a description of specific actions the department of 
        agriculture is taking in the area of organic agriculture, 
        including the proportion of the department's budget spent on 
        organic agriculture; 
           (3) a description of current and future research needs at 
        all levels in the area of organic agriculture; and 
           (4) suggestions for changes in existing programs or 
        policies or enactment of new programs or policies that will 
        affect organic agriculture; 
           (5) a description of market trends and potential for 
        organic products; 
           (6) available information, using currently reliable data, 
        on the price received, yield, and profitability of organic 
        farms, and a comparison with data on conventional farms; and 
           (7) available information, using currently reliable data, 
        on the positive and negative impacts of organic production on 
        the environment and human health. 
           (c) The commissioner shall appoint a Minnesota organic 
        advisory task force to advise the commissioner on policies and 
        practices to improve organic agriculture in Minnesota.  The task 
        force must consist of the following residents of the state: 
           (1) three farmers using organic agriculture methods; 
           (2) two organic food wholesalers, retailers, or 
        distributors; 
           (3) one representative of organic food certification 
        agencies; 
           (4) two organic food processors; 
           (5) one representative from the Minnesota extension 
        service; 
           (6) one representative from a Minnesota postsecondary 
        research institution; 
           (7) one representative from a nonprofit organization 
        representing producers; 
           (8) one at-large member; 
           (9) one representative from the United States Department of 
        Agriculture; and 
           (10) one organic consumer representative. 
        Terms, compensation, and removal of members are governed by 
        section 15.059, subdivision 6.  The task force must meet at 
        least twice each year and expires on June 30, 2005. 
           (d) For the purposes of expanding, improving, and 
        developing production and marketing of the organic products of 
        Minnesota agriculture, the commissioner may receive funds from 
        state and federal sources and spend them, including through 
        grants or contracts, to assist producers and processors to 
        achieve certification, to conduct education or marketing 
        activities, to enter into research and development partnerships, 
        or to address production or marketing obstacles to the growth 
        and well-being of the industry. 
           (e) The commissioner may facilitate the registration of 
        state organic production and handling operations including those 
        exempt from organic certification according to Code of Federal 
        Regulations, title 7, section 205.101, and certification agents 
        operating within the state. 
           Sec. 20.  Minnesota Statutes 2002, section 32.01, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DAIRY PRODUCT.] "Dairy product" means milk as 
        defined by Code of Federal Regulations, title 21, cream, any 
        product or by-product of either, or any commodity among the 
        principal constituents or ingredients of which is one or a 
        combination of two or more of them, as determined by standards, 
        grades, or rules duly adopted by the commissioner.  
           Sec. 21.  Minnesota Statutes 2002, section 32.21, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
        producer, who violates this section is guilty of a misdemeanor 
        or subject to a civil penalty up to $1,000. 
           (b) A milk producer may not change milk plants within 30 
        days, without permission of the commissioner, after receiving 
        notification from the commissioner under paragraph (c) or (d) 
        that the milk producer has violated this section. 
           (c) A milk producer who violates subdivision 3, clause (1), 
        (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
        paragraph. 
           (1) Upon notification of the first violation in a 12-month 
        period, the producer must meet with the dairy plant field 
        service representative qualified dairy sanitarian to initiate 
        corrective action within 30 days. 
           (2) Upon the second violation within a 12-month period, the 
        producer is subject to a civil penalty of $300.  The 
        commissioner shall notify the producer by certified mail stating 
        the penalty is payable in 30 days, the consequences of failure 
        to pay the penalty, and the consequences of future violations. 
           (3) Upon the third violation within a 12-month period, the 
        producer is subject to an additional civil penalty of $300 and 
        possible revocation of the producer's permit or certification.  
        The commissioner shall notify the producer by certified mail 
        that all civil penalties owed must be paid within 30 days and 
        that the commissioner is initiating administrative procedures to 
        revoke the producer's permit or certification to sell milk for 
        at least 30 days. 
           (d) The producer's shipment of milk must be immediately 
        suspended if the producer is identified as an individual source 
        of milk containing residues causing a bulk load of milk to test 
        positive in violation of subdivision 3, clause (6) or (7).  The 
        Grade A or manufacturing grade permit must be converted to 
        temporary status for not more than 30 days and shipment may 
        resume only after subsequent milk has been sampled by the 
        commissioner or the commissioner's agent and found to contain no 
        residues above established tolerances or safe levels. 
           The Grade A or manufacturing grade permit may be restored 
        if the producer completes the "Milk and Dairy Beef Residue 
        Prevention Protocol" with a licensed veterinarian, displays the 
        signed certificate in the milkhouse, and sends verification to 
        the commissioner within the 30-day temporary permit status 
        period.  If the producer does not comply within the temporary 
        permit status period, the Grade A or manufacturing grade permit 
        must be suspended.  A milk producer whose milk supply is in 
        violation of subdivision 3, clause (6) or (7), and has caused a 
        bulk load to test positive is subject to clauses (1) to (3) of 
        this paragraph.  
           (1) For the first violation in a 12-month period, the 
        penalty is the value of all milk on the contaminated load plus 
        any costs associated with the disposition of the contaminated 
        load.  Future pickups are prohibited until subsequent testing 
        reveals the milk is free of drug residue.  A farm inspection 
        must be completed by the plant representative a qualified dairy 
        sanitarian and the producer to determine the cause of the 
        residue and actions required to prevent future violations. 
           (2) For the second violation in a 12-month period, the 
        penalty is the value of all milk on the contaminated load plus 
        any costs associated with the disposition of the contaminated 
        load.  Future pickups are prohibited until subsequent testing 
        reveals the milk is free of drug residue.  A farm inspection 
        must be completed by the regulatory agency or its agent to 
        determine the cause of the residue and actions required to 
        prevent future violations. 
           (3) For the third violation in a 12-month period, the 
        penalty is the value of all milk on the contaminated load plus 
        any costs associated with the disposition of the contaminated 
        load.  Future pickups are prohibited until subsequent testing 
        reveals the milk is free of drug residue.  The commissioner or 
        the commissioner's agent shall also notify the producer by 
        certified mail that the commissioner is initiating 
        administrative procedures to revoke the producer's right to sell 
        milk for a minimum of 30 days.  
           (4) If a bulk load of milk tests negative for residues and 
        there is a positive producer sample on the load, no civil 
        penalties may be assessed to the producer.  The plant must 
        report the positive result within 24 hours and reject further 
        milk shipments from that producer until the producer's milk 
        tests negative.  A farm inspection must be completed by the 
        plant representative and the producer to determine the cause of 
        the residue and actions required to prevent future violations.  
        The department shall suspend the producer's permit and count the 
        violation on the producer's record.  The Grade A or 
        manufacturing grade permit must be converted to temporary status 
        for not more than 30 days during which time the producer must 
        review the "Milk and Dairy Beef Residue Prevention Protocol" 
        with a licensed veterinarian, display the signed certificate in 
        the milkhouse, and send verification to the commissioner.  If 
        these conditions are met, the Grade A or manufacturing grade 
        permit must be reinstated.  If the producer does not comply 
        within the temporary permit status period, the Grade A or 
        manufacturing grade permit must be suspended. 
           (e) A milk producer that has been certified as completing 
        the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
        months of the first violation of subdivision 3, clause (7), need 
        only review the cause of the violation with a field service 
        representative within three days to maintain Grade A or 
        manufacturing grade permit and shipping status if all other 
        requirements of this section are met. 
           (f) Civil penalties collected under this section must be 
        deposited in the milk inspection services account established in 
        this chapter. 
           Sec. 22.  Minnesota Statutes 2002, section 32.394, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RULES.] The commissioner shall by rule 
        promulgate identity, production and processing standards for 
        milk, milk products and goat milk which are intended to bear the 
        Grade A label. 
           In the exercise of the authority to establish requirements 
        for Grade A milk, milk products, and goat milk, the commissioner 
        adopts definitions, standards of identity, and requirements for 
        production and processing contained in the "1999 2001 Grade A 
        Pasteurized Milk Ordinance" and the "1995 Grade A Condensed and 
        Dry Milk Ordinance" of the United States Department of Health 
        and Human Services, in a manner provided for and not in conflict 
        with law. 
           Sec. 23.  Minnesota Statutes 2002, section 32.394, 
        subdivision 8c, is amended to read: 
           Subd. 8c.  [GRADE A OR MANUFACTURING GRADE RAW MILK.] Grade 
        A or manufacturing grade raw milk must not have been stored 
        longer than 76 72 hours when it is picked up at the farm by the 
        receiving plant.  The commissioner or an agent of the 
        commissioner may waive the 76-hour 72-hour time limit in a case 
        of hardship, emergency, or natural disaster.  On farms permitted 
        or certified for bulk tank storage, the milk may only be picked 
        up from approved bulk milk tanks in proper working order. 
           Sec. 24.  Minnesota Statutes 2002, section 32.415, is 
        amended to read: 
           32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
           (a) The commissioner may adopt rules to provide uniform 
        quality standards, and producers of milk used for manufacturing 
        purposes shall conform to the standards contained in Subparts B, 
        C, D, E, and F of the United States Department of Agriculture 
        Consumer and Marketing Service Recommended Requirements for Milk 
        for Manufacturing Purposes and its Production and Processing, as 
        revised through November 12, 1996 June 17, 2002, except that the 
        commissioner shall develop methods by which producers can comply 
        with the standards without violation of religious beliefs.  
           (b) The commissioner shall perform or contract for the 
        performance of the inspections necessary to implement this 
        section or shall certify dairy industry personnel to perform the 
        inspections.  
           (c) The commissioner and other employees of the department 
        shall make every reasonable effort to assist producers in 
        achieving the milk quality standards at minimum cost and to use 
        the experience and expertise of the University of Minnesota and 
        the agricultural extension service to assist producers in 
        achieving the milk quality standards in the most cost-effective 
        manner.  
           (d) The commissioner shall consult with producers, 
        processors, and others involved in the dairy industry in order 
        to prepare for the implementation of this section including 
        development of informational and educational materials, 
        meetings, and other methods of informing producers about the 
        implementation of standards under this section. 
           Sec. 25.  Minnesota Statutes 2002, section 35.0661, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPIRATION.] This section expires July 31, 
        2003 2005. 
           Sec. 26.  Minnesota Statutes 2002, section 41A.09, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ETHANOL PRODUCTION GOAL.] It is a goal of the 
        state that ethanol production plants in the state attain a total 
        annual production level of: 
           (1) 240,000,000 gallons in 2003; 
           (2) 300,000,000 gallons in 2004; 
           (3) 360,000,000 gallons in 2005 and 2006; 
           (4) 420,000,000 gallons in 2007; and 
           (5) 480,000,000 gallons in 2008 and subsequent years. 
           Sec. 27.  Minnesota Statutes 2002, section 41D.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPIRATION.] This section expires on June 
        30, 2003 2008. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 28.  Minnesota Statutes 2002, section 97C.605, 
        subdivision 2c, is amended to read: 
           Subd. 2c.  [LICENSE EXEMPTIONS.] A person does not need a 
        turtle seller's license or an angling license: 
           (1) when buying turtles for resale at a retail outlet; 
           (2) when buying a turtle at a retail outlet; or 
           (3) if the person is a nonresident buying a turtle from a 
        licensed turtle seller for export out of state.  Shipping 
        documents provided by the turtle seller must accompany each 
        shipment exported out of state by a nonresident.  Shipping 
        documents must include:  name, address, city, state, and zip 
        code of the buyer; number of each species of turtle; and name 
        and license number of the turtle seller; or 
           (4) to take, possess, and rent or sell up to 25 turtles for 
        the purpose of providing the turtles to participants at a 
        nonprofit turtle race, if the person is a resident under age 
        18.  The person is responsible for the well-being of the turtles.
           Sec. 29.  Minnesota Statutes 2002, section 116.07, 
        subdivision 7, is amended to read: 
           Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
        LOT PERMITS.] Any Minnesota county board may, by resolution, 
        with approval of the pollution control agency, assume 
        responsibility for processing applications for permits required 
        by the pollution control agency under this section for livestock 
        feedlots, poultry lots or other animal lots.  The responsibility 
        for permit application processing, if assumed by a county, may 
        be delegated by the county board to any appropriate county 
        officer or employee.  
           (a) For the purposes of this subdivision, the term 
        "processing" includes: 
           (1) the distribution to applicants of forms provided by the 
        pollution control agency; 
           (2) the receipt and examination of completed application 
        forms, and the certification, in writing, to the pollution 
        control agency either that the animal lot facility for which a 
        permit is sought by an applicant will comply with applicable 
        rules and standards, or, if the facility will not comply, the 
        respects in which a variance would be required for the issuance 
        of a permit; and 
           (3) rendering to applicants, upon request, assistance 
        necessary for the proper completion of an application. 
           (b) For the purposes of this subdivision, the term 
        "processing" may include, at the option of the county board, 
        issuing, denying, modifying, imposing conditions upon, or 
        revoking permits pursuant to the provisions of this section or 
        rules promulgated pursuant to it, subject to review, suspension, 
        and reversal by the pollution control agency.  The pollution 
        control agency shall, after written notification, have 15 days 
        to review, suspend, modify, or reverse the issuance of the 
        permit.  After this period, the action of the county board is 
        final, subject to appeal as provided in chapter 14.  For permit 
        applications filed after October 1, 2001, section 15.99 applies 
        to feedlot permits issued by the agency or a county pursuant to 
        this subdivision. 
           (c) For the purpose of administration of rules adopted 
        under this subdivision, the commissioner and the agency may 
        provide exceptions for cases where the owner of a feedlot has 
        specific written plans to close the feedlot within five years.  
        These exceptions include waiving requirements for major capital 
        improvements. 
           (d) For purposes of this subdivision, a discharge caused by 
        an extraordinary natural event such as a precipitation event of 
        greater magnitude than the 25-year, 24-hour event, tornado, or 
        flood in excess of the 100-year flood is not a "direct discharge 
        of pollutants." 
           (e) In adopting and enforcing rules under this subdivision, 
        the commissioner shall cooperate closely with other governmental 
        agencies. 
           (f) The pollution control agency shall work with the 
        Minnesota extension service, the department of agriculture, the 
        board of water and soil resources, producer groups, local units 
        of government, as well as with appropriate federal agencies such 
        as the Natural Resources Conservation Service and the Farm 
        Service Agency, to notify and educate producers of rules under 
        this subdivision at the time the rules are being developed and 
        adopted and at least every two years thereafter. 
           (g) The pollution control agency shall adopt rules 
        governing the issuance and denial of permits for livestock 
        feedlots, poultry lots or other animal lots pursuant to this 
        section.  Pastures are exempt from the rules authorized under 
        this paragraph.  A feedlot permit is not required for livestock 
        feedlots with more than ten but less than 50 animal units; 
        provided they are not in shoreland areas.  A livestock feedlot 
        permit does not become required solely because of a change in 
        the ownership of the buildings, grounds, or feedlot.  These 
        rules apply both to permits issued by counties and to permits 
        issued by the pollution control agency directly.  
           (h) The pollution control agency shall exercise supervising 
        authority with respect to the processing of animal lot permit 
        applications by a county. 
           (i) Any new rules or amendments to existing rules proposed 
        under the authority granted in this subdivision, or to implement 
        new fees on animal feedlots, must be submitted to the members of 
        legislative policy and finance committees with jurisdiction over 
        agriculture and the environment prior to final adoption.  The 
        rules must not become effective until 90 days after the proposed 
        rules are submitted to the members.  
           (j) Until new rules are adopted that provide for plans for 
        manure storage structures, any plans for a liquid manure storage 
        structure must be prepared or approved by a registered 
        professional engineer or a United States Department of 
        Agriculture, Natural Resources Conservation Service employee. 
           (k) A county may adopt by ordinance standards for animal 
        feedlots that are more stringent than standards in pollution 
        control agency rules. 
           (l) After January 1, 2001, a county that has not accepted 
        delegation of the feedlot permit program must hold a public 
        meeting prior to the agency issuing a feedlot permit for a 
        feedlot facility with 300 or more animal units, unless another 
        public meeting has been held with regard to the feedlot facility 
        to be permitted. 
           (m) After the proposed rules published in the State 
        Register, volume 24, number 25, are finally adopted, the agency 
        may not impose additional conditions as a part of a feedlot 
        permit, unless specifically required by law or agreed to by the 
        feedlot operator. 
           (n) For the purposes of feedlot permitting, a discharge 
        from land-applied manure or a manure stockpile that is managed 
        according to agency rule must not be subject to a fine for a 
        discharge violation.  
           (o) For the purposes of feedlot permitting, manure that is 
        land applied, or a manure stockpile that is managed according to 
        agency rule, must not be considered a discharge into waters of 
        the state, unless the discharge is to waters of the state, as 
        defined by section 103G.005, subdivision 17, except type 1 or 
        type 2 wetlands, as defined in section 103G.005, subdivision 
        17b, and does not meet discharge standards established for 
        feedlots under agency rule. 
           (p) Unless the upgrade is needed to correct an immediate 
        public health threat under section 145A.04, subdivision 8, or 
        the facility is determined to be a concentrated animal feeding 
        operation under Code of Federal Regulations, title 40, section 
        122.23, in effect on April 15, 2003, the agency may not require 
        a feedlot operator: 
           (1) to spend more than $3,000 to upgrade an existing 
        feedlot with less than 300 animal units unless cost-share money 
        is available to the feedlot operator for 75 percent of the cost 
        of the upgrade; or 
           (2) to spend more than $10,000 to upgrade an existing 
        feedlot with between 300 and 500 animal units, unless cost-share 
        money is available to the feedlot operator for 75 percent of the 
        cost of the upgrade or $50,000, whichever is less. 
           (q) For the purposes of this section, "pastures" means 
        areas, including winter feeding areas as part of a grazing area, 
        where grass or other growing plants are used for grazing and 
        where the concentration of animals allows a vegetative cover to 
        be maintained during the growing season except that vegetative 
        cover is not required: 
           (1) in the immediate vicinity of supplemental feeding or 
        watering devices; 
           (2) in associated corrals and chutes where livestock are 
        gathered for the purpose of sorting, veterinary services, 
        loading and unloading trucks and trailers, and other necessary 
        activities related to good animal husbandry practices; and 
           (3) in associated livestock access lanes used to convey 
        livestock to and from areas of the pasture. 
           Sec. 30.  Minnesota Statutes 2002, section 239.791, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MINIMUM OXYGEN ETHANOL CONTENT REQUIRED.] 
        (a) Except as provided in subdivisions 10 to 14, a person 
        responsible for the product shall comply with the following 
        requirements: 
           (a) After October 1, 1995, gasoline sold or offered for 
        sale at any time in a carbon monoxide control area must contain 
        at least 2.7 percent oxygen by weight. 
           (b) After October 1, 1997, ensure that all gasoline sold or 
        offered for sale in Minnesota must contain at least 2.7 10.0 
        percent oxygen denatured ethanol by weight volume. 
           (c) For the purposes of this subdivision, the oxygenates 
        listed in section 239.761, subdivision 6, paragraph (b), shall 
        not be included in calculating the oxygen content of the 
        gasoline. 
           (b) For purposes of enforcing the minimum ethanol 
        requirement of paragraph (a), a gasoline/ethanol blend will be 
        construed to be in compliance if the ethanol content, exclusive 
        of denaturants and permitted contaminants, comprises not less 
        than 9.2 percent by volume and not more than 10.0 percent by 
        volume of the blend as determined by an appropriate United 
        States Environment Protection Agency of American Society of 
        Testing Materials standard method of analysis of alcohol/ether 
        content in motor fuels. 
           Sec. 31.  Minnesota Statutes 2002, section 500.221, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as 
        hereinafter provided, no natural person shall acquire directly 
        or indirectly any interest in agricultural land unless the 
        person is a citizen of the United States or a permanent resident 
        alien of the United States.  In addition to the restrictions in 
        section 500.24, no corporation, partnership, limited 
        partnership, trustee, or other business entity shall directly or 
        indirectly, acquire or otherwise obtain any interest, whether 
        legal, beneficial or otherwise, in any title to agricultural 
        land unless at least 80 percent of each class of stock issued 
        and outstanding or 80 percent of the ultimate beneficial 
        interest of the entity is held directly or indirectly by 
        citizens of the United States or permanent resident aliens.  
        This section shall not apply:  
           (1) to agricultural land that may be acquired by devise, 
        inheritance, as security for indebtedness, by process of law in 
        the collection of debts, or by any procedure for the enforcement 
        of a lien or claim thereon, whether created by mortgage or 
        otherwise.  All agricultural land acquired in the collection of 
        debts or by the enforcement of a lien or claim shall be disposed 
        of within three years after acquiring ownership; 
           (2) to citizens or subjects of a foreign country whose 
        rights to hold land are secured by treaty; 
           (3) to lands used for transportation purposes by a common 
        carrier, as defined in section 218.011, subdivision 10; 
           (4) to lands or interests in lands acquired for use in 
        connection with (i) the production of timber and forestry 
        products by a corporation organized under the laws of Minnesota, 
        or (ii) mining and mineral processing operations.  Pending the 
        development of agricultural land for the production of timber 
        and forestry products or mining purposes the land may not be 
        used for farming except under lease to a family farm, a family 
        farm corporation or an authorized farm corporation; 
           (5) to agricultural land operated for research or 
        experimental purposes if the ownership of the agricultural land 
        is incidental to the research or experimental objectives of the 
        person or business entity and the total acreage owned by the 
        person or business entity does not exceed the acreage owned on 
        May 27, 1977; 
           (6) to the purchase of any tract of 40 acres or less for 
        facilities incidental to pipeline operation by a company 
        operating a pipeline as defined in section 116I.01, subdivision 
        3; or 
           (7) to agricultural land and land capable of being used as 
        farmland in vegetable processing operations that is reasonably 
        necessary to meet the requirements of pollution control law or 
        rules; or 
           (8) to an interest in agricultural land held on the 
        effective date of this section by a natural person with a 
        nonimmigrant treaty investment visa, pursuant to United States 
        Code, title 8, section 1101(a)15(E)(ii), if, within five years 
        after the effective date of this section, the person: 
           (i) disposes of all agricultural land held; or 
           (ii) becomes a permanent resident alien of the United 
        States or a United States citizen. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 32.  [REPEALER.] 
           Subdivision 1.  [ANAPLASMOSIS TESTING REQUIREMENT.] 
        Minnesota Statutes 2002, section 35.251, is repealed. 
           Subd. 2.  [RELATED RULES.] Minnesota Rules, parts 
        1700.0800; 1700.1000; 1700.1300; 1705.0550; 1705.0560; 
        1705.0570; 1705.0580; 1705.0590; 1705.0600; 1705.0610; 
        1705.0630; and 1715.1430, are repealed. 
           Sec. 33.  [REPEALER.] 
           Minnesota Statutes 2002, sections 31.92, subdivisions 2a 
        and 5; 31.93; 31.95; 32.391, subdivisions 1a, 1b, and 1c, are 
        repealed. 
           Sec. 34.  [EFFECTIVE DATE.] 
           Section 1 is effective August 1, 2004.  Sections 25 and 32 
        are effective the day following final enactment. 
           Presented to the governor May 23, 2003 
           Signed by the governor May 27, 2003, 6:00 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569