1.1.................... moves to amend H.F. No. 510, the first engrossment, as follows:
1.2Page 1, before line 7, insert:

1.3    "Section 1. Minnesota Statutes 2008, section 18B.01, is amended by adding a
1.4subdivision to read:
1.5    Subd. 1a. Agricultural pesticide. "Agricultural pesticide" means a pesticide that
1.6bears labeling that meets federal worker protection agricultural use requirements as
1.7provided by Code of Federal Regulations, title 40, parts 156 and 170 (2008).

1.8    Sec. 2. Minnesota Statutes 2008, section 18B.01, is amended by adding a subdivision
1.9to read:
1.10    Subd. 1b. Agricultural pesticide dealer. "Agricultural pesticide dealer" means a
1.11person who distributes an agricultural pesticide in the state or into the state to an end user.
1.12This action would commonly be described as a retail sale.

1.13    Sec. 3. Minnesota Statutes 2008, section 18B.01, subdivision 8, is amended to read:
1.14    Subd. 8. Distribute. "Distribute" means offer for sale, sell, barter, ship, deliver for
1.15shipment, receive and deliver, and offer to deliver pesticides in this state or into this state.

1.16    Sec. 4. Minnesota Statutes 2008, section 18B.01, is amended by adding a subdivision
1.17to read:
1.18    Subd. 14b. Nonagricultural pesticide. "Nonagricultural pesticide" means a
1.19pesticide that does not bear labeling that meets federal worker protection agricultural use
1.20requirements as provided by Code of Federal Regulation, title 40, parts 156 and 170
1.21(2008)."
1.22Page 2, after line 9, insert:

1.23    "Sec. 7. Minnesota Statutes 2008, section 18B.26, subdivision 1, is amended to read:
2.1    Subdivision 1. Requirement. (a) Except as provided in paragraphs (b) to (d), a
2.2person may not use or distribute a pesticide in this state unless it is registered with the
2.3commissioner. Pesticide registrations expire on December 31 of each year and may be
2.4renewed on or before that date for the following calendar year.
2.5(b) Registration is not required if a pesticide is shipped from one plant or warehouse
2.6to another plant or warehouse operated by the same person and used solely at the plant
2.7or warehouse as an ingredient in the formulation of a pesticide that is registered under
2.8this chapter.
2.9(c) An unregistered pesticide that was previously registered with the commissioner
2.10may be used for a period of two years following the cancellation of the registration of the
2.11pesticide, unless the commissioner determines that the continued use of the pesticide
2.12would cause unreasonable adverse effects on the environment, or with the written
2.13permission of the commissioner. To use the unregistered pesticide at any time after
2.14the two-year period, the pesticide end user must demonstrate to the satisfaction of the
2.15commissioner, if requested, that the pesticide has been continuously registered under a
2.16different brand name or by a different manufacturer and has similar composition, or, the
2.17pesticide end user obtains the written permission of the commissioner.
2.18(d) The commissioner may allow specific pesticide products that are not registered
2.19with the commissioner to be distributed in this state for use in another state.
2.20(e) Each pesticide with a unique United States Environmental Protection Agency
2.21pesticide registration number or a unique brand name must be registered with the
2.22commissioner.
2.23(f) It is unlawful for a person to distribute or use a pesticide in the state, or to sell
2.24into the state for use in the state, any pesticide product that has not been registered by the
2.25commissioner and for which the applicable pesticide registration application fee, gross
2.26sales fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and 4.
2.27(g) Every person who sells for use in the state a pesticide product that has been
2.28registered by the commissioner shall pay to the commissioner the applicable registration
2.29application fees, sales fees, and waste pesticide program surcharges. These sales expressly
2.30include all sales made electronically, telephonically, or by any other means that result in a
2.31pesticide product being shipped to or used in the state. There is a rebuttable presumption
2.32that pesticide products that are sold or distributed in or into the state by any person are
2.33sold or distributed for use in the state.

2.34    Sec. 8. Minnesota Statutes 2008, section 18B.26, subdivision 3, is amended to read:
3.1    Subd. 3. Registration application and gross sales fee. (a) A registrant shall pay an
3.2annual registration application fee for each pesticide to be registered, and this fee is set
3.3at 0.4 percent of annual gross sales within the state and annual gross sales of pesticides
3.4used in the state, with a minimum nonrefundable fee of $250 $350. The fee is due by
3.5December 31 preceding the year for which the application for registration is made. The
3.6fee is nonrefundable.
3.7The registrant shall determine when and which pesticides are sold or used in
3.8this state. (b) For nonagricultural pesticides, the registrant shall pay the minimum
3.9registration application fee in paragraph (a) and shall additionally pay a fee of 0.5 percent
3.10of annual gross sales of nonagricultural pesticides in the state and the annual gross sales
3.11of nonagricultural pesticides sold into the state for use in this state. The commissioner
3.12may not assess a fee under this paragraph if the amount due based on percent of annual
3.13gross sales is less than $10. The registrant shall secure sufficient sales information
3.14of nonagricultural pesticides distributed into this state from distributors and dealers,
3.15regardless of distributor location, to make a determination. Sales of nonagricultural
3.16pesticides in this state and sales of nonagricultural pesticides for use in this state by
3.17out-of-state distributors are not exempt and must be included in the registrant's annual
3.18report, as required under paragraph (c) (g), and fees shall be paid by the registrant
3.19based upon those reported sales. Sales of nonagricultural pesticides in the state for use
3.20outside of the state are exempt from the application gross sales fee in this paragraph if
3.21the registrant properly documents the sale location and distributors. A registrant paying
3.22more than the minimum fee shall pay the balance due by March 1 based on the gross
3.23sales of the nonagricultural pesticide by the registrant for the preceding calendar year.
3.24The fee for disinfectants and sanitizers shall be the minimum. The minimum fee is due
3.25by December 31 preceding the year for which the application for registration is made. In
3.26each fiscal year, the commissioner shall allocate from the pesticide regulatory account a
3.27sum sufficient to collect and dispose of waste pesticides under section 18B.065. However,
3.28notwithstanding section 18B.065, if the commissioner determines that the balance in the
3.29pesticide regulatory account at the end of the fiscal year will be less than $500,000, the
3.30commissioner may suspend waste pesticide collections or provide partial payment to a
3.31person for waste pesticide collection. The commissioner must notify as soon as possible
3.32and no later than August 1 a person under contract to collect waste pesticides of an
3.33anticipated suspension or payment reduction. Pesticide determined by the commissioner
3.34to be a sanitizer or disinfectant is exempt from the gross sales fee.
3.35(c) For agricultural pesticides, a licensed agricultural pesticide dealer shall pay a
3.36gross sales fee of 0.55 percent of annual gross sales of the agricultural pesticide in the
4.1state and the annual gross sales of the agricultural pesticide sold into the state for use in
4.2this state.
4.3(d) In those cases where a registrant first sells an agricultural pesticide in or into the
4.4state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
4.5license and is responsible for payment of the annual gross sales fee under paragraph (c),
4.6record keeping under paragraph (i), and all other requirements of section 18B.316.
4.7(e) If total annual gross sales fees from paragraph (c) are less than $......., the
4.8commissioner may increase the percentage assessed under paragraph (c) for the next
4.9calendar year of reported annual gross sales.
4.10    (b) (f) An additional fee of $100 50 percent of the registration application fee must
4.11be paid by the applicant for each pesticide to be registered if the application is a renewal
4.12application that is submitted after December 31.
4.13    (c) (g) A registrant must annually report to the commissioner the amount and, type
4.14and annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
4.15otherwise distributed in the state. The report shall be filed by March 1 for the previous
4.16year's registration. The commissioner shall specify the form of the report or approve
4.17the method for submittal of the report and may require additional information deemed
4.18necessary to determine the amount and type of pesticides nonagricultural pesticide
4.19annually distributed in the state. The information required shall include the brand
4.20name, United States Environmental Protection Agency registration number, amount,
4.21and formulation of each nonagricultural pesticide sold, offered for sale, or otherwise
4.22distributed in the state, but the information collected, if made public, shall be reported in a
4.23manner which does not identify a specific brand name in the report.
4.24(h) A licensed agricultural pesticide dealer must annually report to the commissioner
4.25the amount, type, and annual gross sales of each registered agricultural pesticide sold,
4.26offered for sale, or otherwise distributed in the state or into the state for use in the state.
4.27The report must be filed by January 31 for the previous year's sales. The commissioner
4.28shall specify the form, contents and approved electronic method for submittal of the
4.29report and may require additional information deemed necessary to determine the amount
4.30and type of agricultural pesticide annually distributed within the state or into the state.
4.31The information required must include the brand name, United States Environmental
4.32Protection Agency registration number, amount, and formulation of each agricultural
4.33pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
4.34(i) A person who registers a pesticide with the commissioner under paragraph (a)
4.35shall keep accurate records detailing all distribution or sales transactions into the state or
4.36in the state and subject to a fee and surcharge under this section, for five years.
5.1(j) The records are subject to inspection, copying and audit by the commissioner
5.2and must clearly demonstrate proof of payment of all applicable fees and surcharges
5.3for each registered pesticide product sold for use in this state. A person who is located
5.4outside of this state must maintain and make available records required by this subdivision
5.5in this state or pay all costs incurred by the commissioner in the inspecting, copying or
5.6auditing of the records.
5.7(k) The commissioner may adopt by rule regulations that require persons subject
5.8to audit under this section to provide information determined by the commissioner to be
5.9necessary to enable the commissioner to perform the audit.
5.10    (d) (l) A registrant who is required to pay more than the minimum fee for any
5.11pesticide under paragraph (a) must pay a late fee penalty of $100 for each pesticide
5.12application fee paid after March 1 in the year for which the license is to be issued.

5.13    Sec. 9. [18B.316] AGRICULTURAL PESTICIDE DEALER LICENSE AND
5.14REPORTING.
5.15    Subdivision 1. Requirement. (a) A person must not distribute or sell an agricultural
5.16pesticide in the state or into the state without first obtaining an agricultural pesticide
5.17dealer license.
5.18(b) Each location or place of business from which an agricultural pesticide is
5.19distributed or sold in the state or into the state is required to have a separate agricultural
5.20pesticide dealer license.
5.21(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
5.22to be licensed under this subdivision.
5.23    Subd. 2. Exemption. A person who is a pesticide registrant under provisions of this
5.24chapter is exempt from the requirement of subdivision 1, except in those cases where a
5.25registrant first sells an agricultural pesticide in or into the state to a pesticide end user, the
5.26registrant must first obtain an agricultural pesticide dealer license.
5.27    Subd. 3. Resident agent. (a) A person required to be licensed under subdivisions
5.281 and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
5.29operates from a location or place of business outside the state and who distributes or sells
5.30an agricultural pesticide into the state, must continuously maintain in this state both of
5.31the following:
5.32(1) a registered office;
5.33(2) a registered agent, who may be either a person resident in this state whose
5.34business office or residence is identical with the registered office under clause (1), a
5.35domestic corporation or limited liability company, or a foreign corporation of limited
6.1liability company authorized to transact business in this state and having a business office
6.2identical with the registered office;
6.3(3) a person licensed under this section or section 18B.31 shall annually file with
6.4the commissioner, either at the time of initial licensing or as part of license renewal, the
6.5name, address, telephone number, and electronic mail address of the licensee's registered
6.6agent; and
6.7(4) for licensees under section 18B.31 who are located in the state, the licensee is
6.8the registered agent.
6.9    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
6.10agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
6.11operates from a location or place of business outside the state and who distributes or
6.12sells an agricultural pesticide into the state, as well as the acts of the employees of those
6.13licensees.
6.14    Subd. 5. Records. (a) A person licensed as an agricultural pesticide dealer, or a
6.15person licensed as a pesticide dealer pursuant to section 18B.31, must maintain at his or
6.16her principal place of business accurate records of purchases, sales, and distributions of
6.17agricultural pesticides in and into this state, including those of its branch locations, for five
6.18years. The records shall be made available for audit under provisions of this chapter and
6.19chapter 18D.
6.20    Subd. 6. Agricultural pesticide sales invoices. Sales invoices for agricultural
6.21pesticides sold in or into this state by a licensed agricultural pesticide dealer or a pesticide
6.22dealer under this section must show the percent of gross sales fee rate assessed and the
6.23gross sales fee paid under section 18B.26, subdivision 3, paragraph (c). Only the person
6.24who actually will pay the gross sales fee may show the rate or the amount of the fee as
6.25a line item on the sales invoice.
6.26    Subd. 7. License. An agricultural pesticide dealer license:
6.27(1) is issued by the commissioner upon review of a complete initial or renewal
6.28application;
6.29(2) is valid for one year and expires on January 31 of each year;
6.30(3) is not transferable from one location or place of business to another location
6.31or place of business; and
6.32(4) must be prominently displayed to the public in the agricultural pesticide dealer's
6.33place of business and in the registered office of the resident agent.
6.34    Subd. 8. Report of sales and payment to the commissioner. A person who is an
6.35agricultural pesticide dealer, or is a licensed pesticide dealer under 18B.31, who distributes
7.1or sells an agricultural pesticide in or into the state, and a pesticide registrant pursuant
7.2to section 18B.26, subdivision 3, paragraph (d), shall no later than January 31 of each
7.3year report and pay applicable fees on annual gross sales of agricultural pesticides to the
7.4commissioner pursuant to requirements under section 18B.26, subdivision 3, paragraphs
7.5(c) and (h).
7.6    Subd. 9. Application. (a) A person must apply to the commissioner for an
7.7agricultural pesticide dealer license on forms and in a manner approved by the
7.8commissioner.
7.9(b) The applicant must be the person in charge of each location or place of business
7.10from which agricultural pesticides are distributed or sold in or into the state.
7.11(c) The commissioner may require that the applicant provide information regarding
7.12the applicant's proposed operations and other information considered pertinent by the
7.13commissioner.
7.14(d) The commissioner may require additional demonstration of licensee qualification
7.15if the licensee has had a license suspended or revoked, or has otherwise had a history of
7.16violations in another state or of this chapter.
7.17(e) A licensed agricultural pesticide dealer who changes his or her address or place
7.18of business shall immediately notify the commissioner of such a change.
7.19(f) An application for renewal of an agricultural pesticide dealer license is complete
7.20only when a report and any applicable payment of fees under subdivision 8 are received
7.21by the commissioner.
7.22    Subd. 10. Application fee. (a) An application for an agricultural pesticide dealer
7.23license, or a renewal of an agricultural pesticide dealer license, must be accompanied
7.24by a nonrefundable fee of $150.
7.25(b) If an application for renewal of an agricultural pesticide dealer license is not filed
7.26before January of the year for which the license is to be issued, an additional fee of 50
7.27percent of the application fee must be paid by the applicant before the commissioner
7.28may issue the license.

7.29    Sec. 10. Minnesota Statutes 2008, section 18B.37, subdivision 1, is amended to read:
7.30    Subdivision 1. Pesticide dealer. (a) A pesticide dealer must maintain records of all
7.31sales of restricted use pesticides as required by the commissioner. Records must be kept at
7.32the time of sale on forms supplied by the commissioner or on the pesticide dealer's forms
7.33if they are approved by the commissioner.
7.34(b) Records must be submitted annually with the renewal application for a pesticide
7.35dealer license or upon request of the commissioner.
8.1(c) Copies of records required under this subdivision must be maintained by the
8.2pesticide dealer for a period of five years after the date of the pesticide sale."
8.3Page 4, after line 18, insert:

8.4    "Sec. 15. Minnesota Statutes 2008, section 18E.03, subdivision 2, is amended to read:
8.5    Subd. 2. Expenditures. (a) Money in the agricultural chemical response and
8.6reimbursement account may only be used:
8.7(1) to pay for the commissioner's responses to incidents under chapters 18B, 18C,
8.8and 18D that are not eligible for payment under section 115B.20, subdivision 2;
8.9(2) to pay for emergency responses that are otherwise unable to be funded;
8.10(3) to reimburse and pay corrective action costs under section 18E.04; and
8.11(4) by the board to reimburse the commissioner for board staff and other
8.12administrative costs and the commissioner's incident response program costs related to
8.13eligible incident sites, up to $225,000 $450,000 per fiscal year.
8.14(b) Money in the agricultural chemical response and reimbursement account is
8.15appropriated to the commissioner to make payments as provided in this subdivision.

8.16    Sec. 16. Minnesota Statutes 2008, section 18E.03, subdivision 4, is amended to read:
8.17    Subd. 4. Fee. (a) The response and reimbursement fee consists of the surcharges and
8.18any adjustments made by the commissioner in this subdivision and shall be collected by
8.19the commissioner. The amount of the response and reimbursement fee shall be determined
8.20and imposed annually by the commissioner as required to satisfy the requirements in
8.21subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in
8.22proportion to the amount of the surcharges listed in this subdivision. License application
8.23categories under paragraph (d) must be charged in proportion to the amount of surcharges
8.24imposed up to a maximum of 50 percent of the license fees set under chapters 18B and
8.2518C.
8.26    (b) The commissioner shall impose a surcharge on pesticides registered under
8.27chapter 18B to be collected as a surcharge on the registration application fee under
8.28section 18B.26, subdivision 3, that is equal to 0.1 percent of sales of the pesticide in the
8.29state and sales of pesticides for use in the state during the previous calendar year, except
8.30the surcharge may not be imposed on pesticides that are sanitizers or disinfectants as
8.31determined by the commissioner. No surcharge is required if the surcharge amount based
8.32on percent of annual gross sales is less than $10. The registrant shall determine when and
8.33which pesticides are sold or used in this state. The registrant shall secure sufficient sales
8.34information of pesticides distributed into this state from distributors and dealers, regardless
8.35of distributor location, to make a determination. Sales of pesticides in this state and sales
9.1of pesticides for use in this state by out-of-state distributors are not exempt and must be
9.2included in the registrant's annual report, as required under section 18B.26, subdivision 3,
9.3paragraph (c), and fees shall be paid by the registrant based upon those reported sales.
9.4Sales of pesticides in the state for use outside of the state are exempt from the surcharge in
9.5this paragraph if the registrant properly documents the sale location and the distributors.
9.6    (c) The commissioner shall impose a ten cents per ton surcharge on the inspection
9.7fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant
9.8amendments.
9.9    (d) The commissioner shall impose a surcharge on the license application of persons
9.10licensed under chapters 18B and 18C consisting of:
9.11    (1) a $75 surcharge for each site where pesticides are stored or distributed, to
9.12be imposed as a surcharge on pesticide dealer application fees under section 18B.31,
9.13subdivision 5 , and the agricultural pesticide dealer application fee under section 18B.316,
9.14subdivision 10;
9.15    (2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil
9.16amendment is distributed, to be imposed on persons licensed under sections 18C.415
9.17and 18C.425;
9.18    (3) a $50 surcharge to be imposed on a structural pest control applicator license
9.19application under section 18B.32, subdivision 6, for business license applications only;
9.20    (4) a $20 surcharge to be imposed on commercial applicator license application fees
9.21under section 18B.33, subdivision 7; and
9.22    (5) a $20 surcharge to be imposed on noncommercial applicator license application
9.23fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a
9.24noncommercial applicator that is a state agency, political subdivision of the state, the
9.25federal government, or an agency of the federal government.
9.26    (e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold
9.27for use outside of the state unless:
9.28    (1) the distributor properly documents that it has less than $2,000,000 per year in
9.29wholesale value of pesticides stored and transferred through the site; or
9.30    (2) the registrant pays the surcharge under paragraph (b) and the registration fee
9.31under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for
9.32use outside of the state.
9.33    (f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for
9.34licenses, and inspection fees imposed on or after July 1, 1990.

9.35    Sec. 17. Minnesota Statutes 2008, section 18E.06, is amended to read:
10.118E.06 REPORT.
10.2By December 1 of each year, the Agricultural Chemical Response Compensation
10.3Board and the commissioner shall submit to the house of representatives Committee
10.4on Ways and Means, the senate Committee on Finance, the house of representatives
10.5and senate committees with jurisdiction over the environment, natural resources, and
10.6agriculture, and the Environmental Quality Board a report detailing the board's activities
10.7and reimbursements and the expenditures and activities associated with the commissioner's
10.8incident response program for which money from the account has been spent during
10.9the previous year."
10.10Renumber the sections in sequence and correct the internal references
10.11Amend the title accordingly