HF 2398

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 04/23/2012 02:51pm

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2398

1.2A bill for an act

1.3relating to agriculture; modifying provisions related to pesticides, plants,
1.4nursery law, inspections, enforcements, seeds, commercial feed, food, animals,
1.5grain, and weights and measures; establishing Dairy Research, Teaching, and
1.6Consumer Education Authority; providing for food law enforcement; making
1.7technical and conforming changes; repealing obsolete provisions; extending
1.8certain exceptions to the minimum content requirements for biodiesel; imposing
1.9penalties; providing certain counties capital improvement plan authority;
1.10modifying treatment of certain secured or guaranteed loans; requiring reports;
1.11amending Minnesota Statutes 2010, sections 17.114, subdivisions 3, 4; 17.982,
1.12subdivision 1; 17.983; 18B.065, subdivision 2a; 18B.316, subdivision 6; 18G.02,
1.13subdivision 14; 18G.10, subdivision 7, by adding a subdivision; 18H.02,
1.14subdivision 14, by adding a subdivision; 18H.10; 18H.14; 18J.01; 18J.02; 18J.04,
1.15subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions
1.163, 4, 5; 21.82, subdivisions 7, 8; 25.33, subdivisions 5, 13, 14; 25.36; 25.37;
1.1728A.03, subdivisions 3, 5, 6; 28A.21, subdivision 6; 31.01, subdivisions 2, 3,
1.184, 21, 25, 28; 31.121; 31.123; 31.13; 31.94; 31A.02, subdivisions 13, 14, 15,
1.1916; 31A.23; 32.01, subdivisions 11, 12; 35.0661, subdivisions 2, 3; 40A.17;
1.2041A.12, subdivisions 2, 4; 48.24, subdivision 5; 223.16, subdivision 12; 223.17,
1.21subdivisions 1, 4, 9; 232.21, subdivisions 2, 6, 12; 232.22, subdivisions 3, 4,
1.225, 7; 232.23, subdivisions 2, 10; 232.24, subdivisions 1, 2; 239.092; 239.093;
1.23239.77, subdivision 3; Laws 2010, chapter 228, section 4; Laws 2010, Second
1.24Special Session chapter 1, article 1, section 11; Laws 2011, chapter 14, section
1.256; proposing coding for new law as Minnesota Statutes, chapters 32C; 34A;
1.26repealing Minnesota Statutes 2010, sections 17.984; 17B.01; 17B.02; 17B.03;
1.2717B.04; 17B.041; 17B.0451; 17B.048; 17B.05; 17B.06; 17B.07; 17B.10;
1.2817B.11; 17B.12; 17B.13; 17B.14; 17B.15, subdivisions 1, 3; 17B.16; 17B.17;
1.2917B.18; 17B.20; 17B.22, subdivisions 1, 2; 17B.28; 17B.29; 28.15; 28A.12;
1.3028A.13; 29.28; 31.031; 31.041; 31.05; 31.14; 31.393; 31.58; 31.592; 31.621,
1.31subdivision 5; 31.631, subdivision 4; 31.633, subdivision 2; 31.681; 31.74,
1.32subdivision 3; 31.91; 31A.24; 31A.26; 32.078; 32.475, subdivision 7; 32.61;
1.3332.90; 34.113; 35.243; 35.255; 35.67; 35.72, subdivisions 1, 2, 3, 4, 5; 223.16,
1.34subdivision 7; 223.18; 232.21, subdivision 4; 232.24, subdivision 3; 232.25;
1.35233.01; 233.015; 233.017; 233.02; 233.03; 233.05; 233.06; 233.07; 233.08;
1.36233.09; 233.10; 233.11; 233.12; 233.22; 233.23; 233.24; 233.33; 234.01; 234.03;
1.37234.04; 234.05; 234.06; 234.08; 234.09; 234.10; 234.11; 234.12; 234.13; 234.14;
1.38234.15; 234.16; 234.17; 234.18; 234.19; 234.20; 234.21; 234.22; 234.23; 234.24;
1.39234.25; 234.27; 235.01; 235.02; 235.04; 235.05; 235.06; 235.07; 235.08; 235.09;
1.40235.10; 235.13; 235.18; 236.01; 236.02; 236.03; 236.04; 236.05; 236.06; 236.07;
1.41236.08; 236.09; 395.14; 395.15; 395.16; 395.17; 395.18; 395.19; 395.20;
1.42395.21; 395.22; 395.23; 395.24; Minnesota Rules, parts 1505.0780; 1505.0810;
1.431511.0100; 1511.0110; 1511.0120; 1511.0130; 1511.0140; 1511.0150;
2.11511.0160; 1511.0170; 1540.0010, subpart 26; 1550.0930, subparts 3, 4, 5, 6, 7;
2.21550.1040, subparts 3, 4, 5, 6; 1550.1260, subparts 6, 7; 1562.0100, subparts
2.33, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25;
2.41562.0200; 1562.0400; 1562.0700; 1562.0900; 1562.1300; 1562.1800.
2.5April 23, 2012
2.6The Honorable Kurt Zellers
2.7Speaker of the House of Representatives
2.8The Honorable Michelle L. Fischbach
2.9President of the Senate
2.10We, the undersigned conferees for H. F. No. 2398 report that we have agreed upon
2.11the items in dispute and recommend as follows:
2.12That the Senate recede from its amendments and that H. F. No. 2398 be further
2.13amended as follows:
2.14Delete everything after the enacting clause and insert:

2.15"ARTICLE 1

2.16AGRICULTURE POLICY

2.17    Section 1. [1.1485] STATE SOIL.
2.18Lester is designated as the official soil of the state of Minnesota.

2.19    Sec. 2. Minnesota Statutes 2010, section 17.114, subdivision 3, is amended to read:
2.20    Subd. 3. Duties. (a) The commissioner shall:
2.21(1) establish a clearinghouse and provide information, appropriate educational
2.22opportunities and other assistance to individuals, producers, and groups about sustainable
2.23agricultural techniques, practices, and opportunities;
2.24(2) survey producers and support services and organizations to determine
2.25information and research needs in the area of sustainable agricultural practices;
2.26(3) demonstrate the on-farm applicability of sustainable agriculture practices to
2.27conditions in this state;
2.28(4) coordinate the efforts of state agencies regarding activities relating to sustainable
2.29agriculture;
2.30(5) direct the programs of the department so as to work toward the sustainability of
2.31agriculture in this state;
2.32(6) inform agencies of how state or federal programs could utilize and support
2.33sustainable agriculture practices;
2.34(7) work closely with farmers, the University of Minnesota, and other appropriate
2.35organizations to identify opportunities and needs as well as assure coordination and
3.1avoid duplication of state agency efforts regarding research, teaching, and extension
3.2work relating to sustainable agriculture; and
3.3(8) work cooperatively with local governments and others to strengthen the
3.4connection between farmers who practice sustainable farming methods and urban, rural,
3.5and suburban consumers, including, but not limited to, promoting local farmers' markets
3.6and community-supported agriculture; and.
3.7(9) report to the Environmental Quality Board for review and then to the house of
3.8representatives and senate committees with jurisdiction over the environment, natural
3.9resources, and agriculture every even-numbered year.
3.10(b) The report under paragraph (a), clause (9), must include:
3.11(1) the presentation and analysis of findings regarding the current status and trends
3.12regarding the economic condition of producers; the status of soil and water resources
3.13utilized by production agriculture; the magnitude of off-farm inputs used; and the amount
3.14of nonrenewable resources used by Minnesota farmers;
3.15(2) a description of current state or federal programs directed toward sustainable
3.16agriculture including significant results and experiences of those programs;
3.17(3) a description of specific actions the Department of Agriculture is taking in the
3.18area of sustainable agriculture, including, but not limited to, specific actions to strengthen
3.19the connection between sustainable farmers and consumers under paragraph (a), clause (8);
3.20(4) a description of current and future research needs at all levels in the area of
3.21sustainable agriculture; and
3.22(5) suggestions for changes in existing programs or policies or enactment of new
3.23programs or policies that will affect farm profitability, maintain soil and water quality,
3.24reduce input costs, or lessen dependence upon nonrenewable resources.

3.25    Sec. 3. Minnesota Statutes 2010, section 17.114, subdivision 4, is amended to read:
3.26    Subd. 4. Integrated pest management. (a) The state shall promote and facilitate
3.27the use of integrated pest management through education, technical or financial assistance,
3.28information and research.
3.29(b) The commissioner shall coordinate the development of a state approach to the
3.30promotion and use of integrated pest management, which shall include delineation of
3.31the responsibilities of the state, public postsecondary institutions, Minnesota Extension
3.32Service, local units of government, and the private sector; establishment of information
3.33exchange and integration; procedures for identifying research needs and reviewing and
3.34preparing informational materials; procedures for factoring integrated pest management
3.35into state laws, rules, and uses of pesticides; and identification of barriers to adoption.
4.1(c) The commissioner shall report to the Environmental Quality Board for review
4.2and then to the house of representatives and senate committees with jurisdiction over the
4.3environment, natural resources, and agriculture every even-numbered year. The report
4.4shall be combined with the report required in subdivision 3.

4.5    Sec. 4. Minnesota Statutes 2010, section 18B.065, subdivision 2a, is amended to read:
4.6    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
4.7commissioner must designate a place in each county of the state that is available at least
4.8every other year for persons to dispose of unused portions of agricultural pesticides. The
4.9commissioner shall consult with the person responsible for solid waste management
4.10and disposal in each county to determine an appropriate location and to advertise each
4.11collection event. The commissioner may provide a collection opportunity in a county
4.12more frequently if the commissioner determines that a collection is warranted.
4.13    (b) For nonagricultural waste pesticides, the commissioner must provide a disposal
4.14opportunity each year in each county or enter into a contract with a group of counties
4.15under a joint powers agreement or contract for household hazardous waste disposal.
4.16(c) As provided under subdivision 7, the commissioner may enter into cooperative
4.17agreements with local units of government to provide the collections required under
4.18paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
4.19agreement, with funding for reasonable costs incurred including, but not limited to, related
4.20supplies, transportation, advertising, and disposal costs as well as reasonable overhead
4.21costs.
4.22    (d) A person who collects waste pesticide under this section shall, on a form
4.23provided or in a method approved by the commissioner, record information on each
4.24waste pesticide product collected including, but not limited to, the quantity collected
4.25and either the product name and its active ingredient or ingredients or the United States
4.26Environmental Protection Agency registration number. The person must submit this
4.27information to the commissioner at least annually by January 30.

4.28    Sec. 5. Minnesota Statutes 2010, section 18B.065, is amended by adding a subdivision
4.29to read:
4.30    Subd. 10. Indemnification. (a) A local unit of government, when operating or
4.31participating in a waste pesticide collection program pursuant to a cooperative agreement
4.32with the commissioner under this section, is an employee of the state, certified to be
4.33acting within the scope of employment, for purposes of the indemnification provisions of
5.1section 3.736, subdivision 9, for claims that arise out of the transportation, management,
5.2or disposal of any waste pesticide covered by the agreement:
5.3(1) from and after the time the waste permanently leaves the local unit of
5.4government's possession and comes into the possession of the state's authorized
5.5transporter; and
5.6(2) during the time the waste is transported between the local unit of government
5.7facilities by the state's authorized transporter.
5.8(b) The state is not obligated to defend or indemnify a local unit of government under
5.9this subdivision to the extent of the local unit of government's liability insurance. The
5.10local unit of government's right to indemnify is not a waiver of the limitation, defenses,
5.11and immunities available to either the local unit of government or the state by law.

5.12    Sec. 6. Minnesota Statutes 2010, section 18B.316, subdivision 6, is amended to read:
5.13    Subd. 6. Agricultural pesticide sales invoices. (a) Sales invoices for agricultural
5.14pesticides sold in or into this state by a licensed agricultural pesticide dealer or a pesticide
5.15dealer under this section must show the percent of gross sales fee rate assessed and the
5.16gross sales fee paid under section 18B.26, subdivision 3, paragraph (c).
5.17(b) A licensed agricultural pesticide dealer or a pesticide dealer may request an
5.18exemption from paragraph (a). The request for exemption must be in writing to the
5.19commissioner and must include verifiable information to justify that compliance with
5.20paragraph (a) is an extreme business hardship for the licensed agricultural pesticide dealer
5.21or pesticide dealer. The commissioner may approve or reject a request for exemption
5.22based upon review of the submitted information. An approved exemption under this
5.23paragraph is valid for one calendar year. The commissioner must maintain a list of those
5.24licensed agricultural pesticide dealers or pesticide dealers that have been granted an
5.25exemption on the department's Web site.
5.26(c) A licensed agricultural pesticide dealer or a pesticide dealer issued an exemption
5.27under paragraph (b) must include the following statement on each sales invoice for any
5.28sale of an agricultural pesticide: "Minnesota Department of Agriculture Annual Gross
5.29Sales Fees of 0.55% have been Assessed and Paid on the Sale of an Agricultural Pesticide."
5.30(d) Only the person who actually will pay the gross sales fee may show the rate or
5.31the amount of the fee as a line item on the sales invoice.

5.32    Sec. 7. Minnesota Statutes 2010, section 18G.02, subdivision 14, is amended to read:
6.1    Subd. 14. Infested. "Infested" means a plant has been overrun by plant pests,
6.2including weeds, or contains or harbors plant pests in a quantity that may threaten other
6.3plants.

6.4    Sec. 8. Minnesota Statutes 2010, section 18G.07, subdivision 1, is amended to read:
6.5    Subdivision 1. Creation of registry. (a) The commissioner shall maintain a list of
6.6all persons, businesses, and companies that employ persons who provide tree care or tree
6.7trimming services in Minnesota. All commercial tree care providers, tree trimmers, and
6.8persons who employers that direct employees to remove trees, limbs, branches, brush, or
6.9shrubs for hire must be registered by with the commissioner.
6.10(b) Persons or companies who are required to be registered under paragraph (a) must
6.11register annually by providing the following to the commissioner:
6.12(1) accurate and up-to-date business name, address, and telephone number;
6.13(2) a complete list of all Minnesota counties in which they work; and
6.14(3) a nonrefundable fee of $25 for initial application or renewing the registration.
6.15(c) All persons and companies required to be registered under paragraph (a) must
6.16register before conducting the activities specified in paragraph (a). Annual registration
6.17expires December 31, must be renewed annually, and the renewal fee remitted by January
6.187 1 of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee
6.19due must be charged for each month, or portion of a month, that the fee is delinquent up to
6.20a maximum of 30 percent for any application for renewal postmarked after December 31.

6.21    Sec. 9. Minnesota Statutes 2010, section 18G.10, subdivision 7, is amended to read:
6.22    Subd. 7. Supplemental, additional, or other certificates and permits. (a) The
6.23commissioner may provide inspection, sampling, or certification services to ensure
6.24that Minnesota plant treatment processes, plant products, or commodities meet import
6.25requirements of other states or countries.
6.26(b) The state plant regulatory official may issue permits and certificates verifying that
6.27various Minnesota agricultural plant treatment processes, products, or commodities meet
6.28specified plant health requirements, treatment requirements, or pest absence assurances
6.29based on determinations by the commissioner.

6.30    Sec. 10. Minnesota Statutes 2010, section 18G.10, is amended by adding a subdivision
6.31to read:
6.32    Subd. 8. Misuse of a certificate or permit. (a) Certificates and permits may not be
6.33altered, counterfeited, obtained, or used improperly, for any plant product.
7.1(b) Certificates and permits are not transferable to another location or another person.

7.2    Sec. 11. Minnesota Statutes 2010, section 18H.02, subdivision 14, is amended to read:
7.3    Subd. 14. Infested. "Infested" means a plant has been overrun by plant pests,
7.4including weeds, or contains or harbors plant pests in a quantity that may threaten other
7.5plants.

7.6    Sec. 12. Minnesota Statutes 2010, section 18H.02, is amended by adding a subdivision
7.7to read:
7.8    Subd. 16a. Nonhardy. "Nonhardy" means a plant that cannot be expected to
7.9survive or reliably produce flowers and fruit in average minimum winter temperatures
7.10at the growing site as determined by the commissioner based upon independent field
7.11trials and industry input represented by the United States Department of Agriculture
7.12Plant Hardiness Zone designations.

7.13    Sec. 13. Minnesota Statutes 2010, section 18H.10, is amended to read:
7.1418H.10 STORAGE OF NURSERY STOCK.
7.15(a) All nursery stock must be kept and displayed under conditions of temperature,
7.16light, and moisture sufficient to maintain the viability and vigor of the nursery stock.
7.17(b) Packaged dormant nursery stock must be stored under conditions that retard
7.18growth, prevent etiolated growth, and protect its viability.
7.19(c) Balled and burlapped nursery stock being held for sale to the public must be kept
7.20in a moisture-holding material approved by the commissioner and not toxic to plants.
7.21The moisture-holding material must adequately cover and protect the ball of earth and
7.22must be kept moist at all times.

7.23    Sec. 14. Minnesota Statutes 2010, section 18H.14, is amended to read:
7.2418H.14 LABELING AND ADVERTISING OF NURSERY STOCK.
7.25(a) Plants, plant materials, or nursery stock must not be labeled or advertised with
7.26false or misleading information including, but not limited to, scientific name, variety,
7.27place of origin, hardiness zone as defined by the United States Department of Agriculture,
7.28and growth habit.
7.29(b) All nonhardy nursery stock as designated by the commissioner must be labeled
7.30"nonhardy" in Minnesota.
7.31(b) (c) A person may not offer for distribution plants, plant materials, or nursery
7.32stock, represented by some specific or special form of notation, including, but not limited
8.1to, "free from" or "grown free of," unless the plants are produced under a specific program
8.2approved by the commissioner to address the specific plant properties addressed in the
8.3special notation claim.
8.4(d) Nursery stock collected from the wild state must be inspected and certified
8.5prior to sale and at the time of sale must be labeled "Collected from the Wild." The label
8.6must remain on each plant or clump of plants while it is offered for sale and during the
8.7distribution process. The collected stock may be grown in nursery rows at least two years,
8.8after which the plants may be sold without the labeling required by this paragraph.

8.9    Sec. 15. Minnesota Statutes 2010, section 18J.01, is amended to read:
8.1018J.01 DEFINITIONS.
8.11(a) The definitions in sections 18G.02 and, 18H.02, 27.01, 223.16, 231.01, and
8.12232.21 apply to this chapter.
8.13(b) For purposes of this chapter, "associated rules" means rules adopted under this
8.14chapter, chapter 18G or, 18H, 27, 223, 231, or 232, or sections 21.80 to 21.92.

8.15    Sec. 16. Minnesota Statutes 2010, section 18J.02, is amended to read:
8.1618J.02 DUTIES OF COMMISSIONER.
8.17The commissioner shall administer and enforce this chapter, chapters 18G and, 18H,
8.1827, 223, 231, and 232; sections 21.80 to 21.92,; and associated rules.

8.19    Sec. 17. Minnesota Statutes 2010, section 18J.03, is amended to read:
8.2018J.03 CIVIL LIABILITY.
8.21A person regulated by this chapter, chapter 18G or, 18H, 27, 223, 231, or 232,
8.22or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
8.23associated rules by the person's employee or agent.

8.24    Sec. 18. Minnesota Statutes 2010, section 18J.04, subdivision 1, is amended to read:
8.25    Subdivision 1. Access and entry. The commissioner, upon presentation of official
8.26department credentials, must be granted immediate access at reasonable times to sites
8.27where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
8.28seeds, plants, grain, household goods, general merchandise, produce, or other living or
8.29nonliving products or other objects regulated under chapter 18G or, 18H, 27, 223, 231, or
8.30232; sections 21.80 to 21.92,; or associated rules.

9.1    Sec. 19. Minnesota Statutes 2010, section 18J.04, subdivision 2, is amended to read:
9.2    Subd. 2. Purpose of entry. (a) The commissioner may enter sites for:
9.3(1) inspection of inventory and equipment for the manufacture, storage, handling,
9.4distribution, disposal, or any other process regulated under chapter 18G or, 18H, 27, 223,
9.5231, or 232; sections 21.80 to 21.92,; or associated rules;
9.6(2) sampling of sites, seeds, plants, products, grain, household goods, general
9.7merchandise, produce, or other living or nonliving objects that are manufactured, stored,
9.8distributed, handled, or disposed of at those sites and regulated under chapter 18G or,
9.918H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
9.10(3) inspection of records related to the manufacture, distribution, storage, handling,
9.11or disposal of seeds, plants, products, grain, household goods, general merchandise,
9.12produce, or other living or nonliving objects regulated under chapter 18G or, 18H, 27,
9.13223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
9.14(4) investigating compliance with chapter 18G or, 18H, 27, 223, 231, or 232;
9.15sections 21.80 to 21.92,; or associated rules; or
9.16(5) other purposes necessary to implement chapter 18G or, 18H, 27, 223, 231, or
9.17232; sections 21.80 to 21.92,; or associated rules.
9.18(b) The commissioner may enter any public or private premises during or after
9.19regular business hours without notice of inspection when a suspected violation of chapter
9.2018G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules may
9.21threaten public health or the environment.

9.22    Sec. 20. Minnesota Statutes 2010, section 18J.04, subdivision 3, is amended to read:
9.23    Subd. 3. Notice of inspection samples and analyses. (a) The commissioner shall
9.24provide the owner, operator, or agent in charge with a receipt describing any samples
9.25obtained. If requested, the commissioner shall split any samples obtained and provide
9.26them to the owner, operator, or agent in charge. If an analysis is made of the samples,
9.27a copy of the results of the analysis must be furnished to the owner, operator, or agent
9.28in charge within 30 days after an analysis has been performed. If an analysis is not
9.29performed, the commissioner must notify the owner, operator, or agent in charge within 30
9.30days of the decision not to perform the analysis.
9.31(b) The sampling and analysis must be done according to methods provided for
9.32under applicable provisions of chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80
9.33to 21.92,; or associated rules. In cases not covered by those sections and methods or in
9.34cases where methods are available in which improved applicability has been demonstrated
9.35the commissioner may adopt appropriate methods from other sources.

10.1    Sec. 21. Minnesota Statutes 2010, section 18J.04, subdivision 4, is amended to read:
10.2    Subd. 4. Inspection requests by others. (a) A person who believes that a violation
10.3of chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated
10.4rules has occurred may request an inspection by giving notice to the commissioner of the
10.5violation. The notice must be in writing, state with reasonable particularity the grounds
10.6for the notice, and be signed by the person making the request.
10.7(b) If after receiving a notice of violation the commissioner reasonably believes that
10.8a violation has occurred, the commissioner shall make a special inspection in accordance
10.9with the provisions of this section as soon as practicable, to determine if a violation has
10.10occurred.
10.11(c) An inspection conducted pursuant to a notice under this subdivision may cover
10.12an entire site and is not limited to the portion of the site specified in the notice. If the
10.13commissioner determines that reasonable grounds to believe that a violation occurred
10.14do not exist, the commissioner must notify the person making the request in writing of
10.15the determination.

10.16    Sec. 22. Minnesota Statutes 2010, section 18J.05, subdivision 1, is amended to read:
10.17    Subdivision 1. Enforcement required. (a) A violation of chapter 18G or, 18H, 27,
10.18223, 231, or 232; sections 21.80 to 21.92,; or an associated rule is a violation of this
10.19chapter.
10.20(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
10.21officers having authority in the enforcement of the general criminal laws must take action
10.22to the extent of their authority necessary or proper for the enforcement of chapter 18G or,
10.2318H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules or valid orders,
10.24standards, stipulations, and agreements of the commissioner.

10.25    Sec. 23. Minnesota Statutes 2010, section 18J.05, subdivision 2, is amended to read:
10.26    Subd. 2. Commissioner's discretion. If minor violations of chapter 18G or,
10.2718H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules occur or the
10.28commissioner believes the public interest will be best served by a suitable notice of
10.29warning in writing, this section does not require the commissioner to:
10.30(1) report the violation for prosecution;
10.31(2) institute seizure proceedings; or
10.32(3) issue a withdrawal from distribution, stop-sale, or other order.

10.33    Sec. 24. Minnesota Statutes 2010, section 18J.05, subdivision 6, is amended to read:
11.1    Subd. 6. Agent for service of process. All persons licensed, permitted, registered,
11.2or certified under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or
11.3associated rules must appoint the commissioner as the agent upon whom all legal process
11.4may be served and service upon the commissioner is deemed to be service on the licensee,
11.5permittee, registrant, or certified person.

11.6    Sec. 25. Minnesota Statutes 2010, section 18J.06, is amended to read:
11.718J.06 FALSE STATEMENT OR RECORD.
11.8A person must not knowingly make or offer a false statement, record, or other
11.9information as part of:
11.10(1) an application for registration, license, certification, or permit under chapter 18G
11.11or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
11.12(2) records or reports required under chapter 18G or, 18H, 27, 223, 231, or 232;
11.13sections 21.80 to 21.92,; or associated rules; or
11.14(3) an investigation of a violation of chapter 18G or, 18H, 27, 223, 231, or 232;
11.15sections 21.80 to 21.92,; or associated rules.

11.16    Sec. 26. Minnesota Statutes 2010, section 18J.07, subdivision 3, is amended to read:
11.17    Subd. 3. Cancellation of registration, permit, license, certification. The
11.18commissioner may cancel or revoke a registration, permit, license, or certification
11.19provided for under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,;
11.20or associated rules or refuse to register, permit, license, or certify under provisions of
11.21chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules
11.22if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
11.23practices in the evasion or attempted evasion of a provision of chapter 18G or, 18H, 27,
11.24223, 231, or 232; sections 21.80 to 21.92,; or associated rules.

11.25    Sec. 27. Minnesota Statutes 2010, section 18J.07, subdivision 4, is amended to read:
11.26    Subd. 4. Service of order or notice. (a) If a person is not available for service of an
11.27order, the commissioner may attach the order to the facility, site, seed or seed container,
11.28plant or other living or nonliving object regulated under chapter 18G or, 18H, 27, 223,
11.29231, or 232; sections 21.80 to 21.92,; or associated rules and notify the owner, custodian,
11.30other responsible party, or registrant.
11.31(b) The seed, seed container, plant, or other living or nonliving object regulated
11.32under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated
12.1rules may not be sold, used, tampered with, or removed until released under conditions
12.2specified by the commissioner, by an administrative law judge, or by a court.

12.3    Sec. 28. Minnesota Statutes 2010, section 18J.07, subdivision 5, is amended to read:
12.4    Subd. 5. Unsatisfied judgments. (a) An applicant for a license, permit, registration,
12.5or certification under provisions of this chapter, chapter 18G or, 18H, 27, 223, 231, or
12.6232; sections 21.80 to 21.92,; or associated rules may not allow a final judgment against
12.7the applicant for damages arising from a violation of those statutes or rules to remain
12.8unsatisfied for a period of more than 30 days.
12.9(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation
12.10of this chapter results in automatic suspension of the license, permit, registration, or
12.11certification.

12.12    Sec. 29. Minnesota Statutes 2010, section 21.82, subdivision 7, is amended to read:
12.13    Subd. 7. Vegetable seeds. For vegetable seeds prepared for use in home gardens
12.14or household plantings the requirements in paragraphs (a) to (p) apply. Vegetable seeds
12.15packed for sale in commercial quantities to farmers, conservation groups, and other similar
12.16entities are considered agricultural seeds and must be labeled accordingly.
12.17(a) The label must contain the name of the kind or kind and variety for each seed
12.18component in excess of five percent of the whole and the percentage by weight of each
12.19in order of its predominance. If the variety of those kinds generally labeled as to variety
12.20is not stated and it is not required to be stated, the label must show the name of the kind
12.21and the words "variety not stated."
12.22(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
12.23seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
12.24If two or more kinds of varieties are present in excess of five percent and are named on
12.25the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
12.26kind and variety that has pure seed that is less than 95 percent but more than 75 percent
12.27hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
12.28to show the percentage of pure seed that is hybrid seed or a statement such as "contains
12.29from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
12.30as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
12.31must be shown on the label in conjunction with the kind.
12.32(c) Blends must be listed on the label using the term "blend" in conjunction with
12.33the kind.
12.34(d) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."
13.1(e) The label must show a lot number or other lot identification.
13.2(f) The origin may be omitted from the label.
13.3(g) The label must show the year for which the seed was packed for sale listed as
13.4"packed for (year)" for seed with a percentage of germination that exceeds the standard last
13.5established by the commissioner, the percentage of germination and the calendar month
13.6and year that the percentages were determined by test, or the calendar month and year the
13.7germination test was completed and the statement "sell by (month and year listed here),"
13.8which may be no more than 12 months from the date of test, exclusive of the month of test.
13.9(h) For vegetable seeds which germinate less than the standard last established by
13.10the commissioner, the label must show:
13.11(1) a percentage of germination, exclusive of hard or dormant seed or both;
13.12(2) a percentage of hard or dormant seed or both, if present; and
13.13(3) the words "below standard" in not less than eight point type and the month and
13.14year the percentages were determined by test.
13.15(i) The net weight of the contents or a statement indicating the number of seeds in
13.16the container or both, must appear on either the container or the label, except that for
13.17containers with contents of 200 seeds or less a statement indicating the number of seeds in
13.18the container may be listed along with or in lieu of the net weight of contents.
13.19(j) The heading for and percentage by weight of pure seed may be omitted from a
13.20label if the total is more than 90 percent.
13.21(k) The heading for and percentage by weight of weed seed may be omitted from a
13.22label if they are not present in the seed.
13.23(l) The heading "noxious weed seeds" may be omitted from a label if they are not
13.24present in the seed.
13.25(m) The heading for and percentage by weight of other crop seed may be omitted
13.26from a label if it is less than five percent.
13.27(n) The heading for and percentage by weight of inert matter may be omitted from a
13.28label if it is less than ten percent.
13.29(o) The label must contain the name and address of the person who labeled the
13.30seed or who sells the seed in this state or a code number that has been registered with
13.31the commissioner.
13.32(p) The labeling requirements for vegetable seeds prepared for use in home gardens
13.33or household plantings when sold outside their original containers are met if the seed is
13.34weighed from a properly labeled container in the presence of the purchaser.

13.35    Sec. 30. Minnesota Statutes 2010, section 21.82, subdivision 8, is amended to read:
14.1    Subd. 8. Flower seeds. For flower and wildflower seeds prepared for use in home
14.2gardens or household plantings, the requirements in paragraphs (a) to (l) apply. Flower
14.3and wildflower seeds packed for sale in commercial quantities to farmers, conservation
14.4groups, and other similar entities are considered agricultural seeds and must be labeled
14.5accordingly.
14.6(a) The label must contain the name of the kind and variety or a statement of type
14.7and performance characteristics as prescribed by rule.
14.8(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
14.9seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
14.10If two or more kinds of varieties are present in excess of five percent and are named on
14.11the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
14.12kind and variety that has pure seed that is less than 95 percent but more than 75 percent
14.13hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
14.14to show the percentage of pure seed that is hybrid seed or a statement such as "contains
14.15from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
14.16as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
14.17must be shown on the label in conjunction with the kind.
14.18(c) Blends must be listed on the label using the term "blend" in conjunction with
14.19the kind.
14.20(d) Mixtures must be listed on the label using the term "mixture," "mix," or "mixed."
14.21(e) The label must contain the lot number or other lot identification.
14.22(f) The origin may be omitted from the label.
14.23(g) The label must contain the year for which the seed was packed for sale listed as
14.24"packed for (year)" for seed with a percentage of germination that exceeds the standard last
14.25established by the commissioner, the percentage of germination and the calendar month
14.26and year that the percentages were determined by test, or the calendar month and year the
14.27germination test was completed and the statement "sell by (month and year listed here),"
14.28which may be no more than 12 months from the date of test, exclusive of the month of test.
14.29(h) For flower seeds which germinate less than the standard last established by
14.30the commissioner, the label must show:
14.31(1) percentage of germination exclusive of hard or dormant seed or both;
14.32(2) percentage of hard or dormant seed or both, if present; and
14.33(3) the words "below standard" in not less than eight point type and the month and
14.34year this percentage was determined by test.
14.35(i) The label must show the net weight of contents or a statement indicating the
14.36number of seeds in the container, or both, on either the container or the label, except that
15.1for containers with contents of 200 seeds or less a statement indicating the number of
15.2seeds in the container may be listed along with or in lieu of the net weight of contents.
15.3(j) The heading for and percentage by weight of pure seed may be omitted from a
15.4label if the total is more than 90 percent.
15.5(k) The heading for and percentage by weight of weed seed may be omitted from a
15.6label if they are not present in the seed.
15.7(l) The heading "noxious weed seeds" may be omitted from a label if they are not
15.8present in the seed.
15.9(m) The heading for and percentage by weight of other crop seed may be omitted
15.10from a label if it is less than five percent.
15.11(n) The heading for and percentage by weight of inert matter may be omitted from a
15.12label if it is less than ten percent.
15.13(o) The label must show the name and address of the person who labeled the seed
15.14or who sells the seed within this state, or a code number which has been registered with
15.15the commissioner.

15.16    Sec. 31. Minnesota Statutes 2010, section 25.33, subdivision 3, is amended to read:
15.17    Subd. 3. Distribute. "Distribute" means to offer for sale, sell, exchange, or
15.18barter, or otherwise supply commercial feed; or to supply, furnish, or otherwise provide
15.19commercial feed to a contract feeder. The term "distribute" shall not include or apply to
15.20any feeds manufactured for livestock owned by the distributor.
15.21EFFECTIVE DATE.This section is effective retroactively from January 1,
15.222012, and applies to commercial feed inspection fees assessed by the commissioner of
15.23agriculture for calendar year 2012 and thereafter.

15.24    Sec. 32. Minnesota Statutes 2010, section 31.13, is amended to read:
15.2531.13 ANALYSIS; EVIDENCE.
15.26It shall be the duty of the chief chemist and assistants laboratory director, managers,
15.27and analysts to make analyses and examinations of such articles as shall be furnished
15.28to them by the commissioner, for the purpose of determining from such examination
15.29whether such articles are adulterated, misbranded, insufficiently labeled, unwholesome,
15.30poisonous, or deleterious and whether such articles have been manufactured, used, sold,
15.31transported, offered for use, sale, or transportation, or had in possession with intent to use,
15.32sell, or transport in violation of any law now or hereafter enacted relating to food, or of
15.33any definition, standard, rule, or ruling made and published thereunder, and to certify the
16.1result of such analysis and examination to the commissioner. A copy of the result of the
16.2examination or analysis of any such article, duly authenticated, by the chemist analyst
16.3making such analysis determinations or examination, under oath of such chemist analyst,
16.4shall be prima facie evidence in all courts of the matters and facts therein contained.

16.5    Sec. 33. Minnesota Statutes 2010, section 31.94, is amended to read:
16.631.94 COMMISSIONER DUTIES.
16.7(a) In order to promote opportunities for organic agriculture in Minnesota, the
16.8commissioner shall:
16.9(1) survey producers and support services and organizations to determine
16.10information and research needs in the area of organic agriculture practices;
16.11(2) work with the University of Minnesota to demonstrate the on-farm applicability
16.12of organic agriculture practices to conditions in this state;
16.13(3) direct the programs of the department so as to work toward the promotion of
16.14organic agriculture in this state;
16.15(4) inform agencies of how state or federal programs could utilize and support
16.16organic agriculture practices; and
16.17(5) work closely with producers, the University of Minnesota, the Minnesota Trade
16.18Office, and other appropriate organizations to identify opportunities and needs as well
16.19as ensure coordination and avoid duplication of state agency efforts regarding research,
16.20teaching, marketing, and extension work relating to organic agriculture.
16.21(b) By November 15 of each even-numbered year that ends in a zero or a five, the
16.22commissioner, in conjunction with the task force created in paragraph (c), shall report
16.23on the status of organic agriculture in Minnesota to the legislative policy and finance
16.24committees and divisions with jurisdiction over agriculture. The report must include:
16.25available data on organic acreage and production, available data on the sales or market
16.26performance of organic products, and recommendations regarding programs, policies, and
16.27research efforts that will benefit Minnesota's organic agriculture sector.
16.28(1) a description of current state or federal programs directed toward organic
16.29agriculture, including significant results and experiences of those programs;
16.30(2) a description of specific actions the department of agriculture is taking in the
16.31area of organic agriculture, including the proportion of the department's budget spent on
16.32organic agriculture;
16.33(3) a description of current and future research needs at all levels in the area of
16.34organic agriculture;
17.1(4) suggestions for changes in existing programs or policies or enactment of new
17.2programs or policies that will affect organic agriculture;
17.3(5) a description of market trends and potential for organic products;
17.4(6) available information, using currently reliable data, on the price received, yield,
17.5and profitability of organic farms, and a comparison with data on conventional farms; and
17.6(7) available information, using currently reliable data, on the positive and negative
17.7impacts of organic production on the environment and human health.
17.8(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
17.9University of Minnesota on policies and programs that will improve organic agriculture in
17.10Minnesota, including how available resources can most effectively be used for outreach,
17.11education, research, and technical assistance that meet the needs of the organic agriculture
17.12community. The task force must consist of the following residents of the state:
17.13(1) three farmers using organic agriculture methods;
17.14(2) one wholesaler or distributor of organic products;
17.15(3) one representative of organic certification agencies;
17.16(4) two organic processors;
17.17(5) one representative from University of Minnesota Extension;
17.18(6) one University of Minnesota faculty member;
17.19(7) one representative from a nonprofit organization representing producers;
17.20(8) two public members;
17.21(9) one representative from the United States Department of Agriculture;
17.22(10) one retailer of organic products; and
17.23(11) one organic consumer representative.
17.24The commissioner, in consultation with the director of the Minnesota Agricultural
17.25Experiment Station; the dean and director of University of Minnesota Extension; and the
17.26dean of the College of Food, Agricultural and Natural Resource Sciences shall appoint
17.27members to serve staggered two-year terms.
17.28Compensation and removal of members are governed by section 15.059, subdivision
17.296 . The task force must meet at least twice each year and expires on June 30, 2013.
17.30(d) For the purposes of expanding, improving, and developing production and
17.31marketing of the organic products of Minnesota agriculture, the commissioner may
17.32receive funds from state and federal sources and spend them, including through grants or
17.33contracts, to assist producers and processors to achieve certification, to conduct education
17.34or marketing activities, to enter into research and development partnerships, or to address
17.35production or marketing obstacles to the growth and well-being of the industry.
18.1(e) The commissioner may facilitate the registration of state organic production
18.2and handling operations including those exempt from organic certification according to
18.3Code of Federal Regulations, title 7, section 205.101, and certification agents operating
18.4within the state.

18.5    Sec. 34. [32C.01] ORGANIZATION.
18.6    Subdivision 1. Establishment. The Dairy Research, Teaching, and Consumer
18.7Education Authority is established as a public corporation. The business of the authority
18.8must be conducted under the name "Dairy Research, Teaching, and Consumer Education
18.9Authority."
18.10    Subd. 2. Board of directors. The authority is governed by a board of nine directors.
18.11The term of a director, except as otherwise provided in this subdivision, is four years.
18.12The commissioner of agriculture is a member of the board. The governor shall appoint
18.13four members of the board. Two of the members appointed by the governor must be
18.14currently engaged in the business of operating a dairy. Two of the members appointed
18.15by the governor must be representatives of Minnesota-based businesses actively engaged
18.16in working with or serving Minnesota's dairy industry. The dean of the University of
18.17Minnesota College of Food, Agriculture and Natural Resource Sciences, or the dean's
18.18designee, is a member of the board. One member of the board must be a representative of
18.19a state trade association that represents the interests of milk producers. One member of the
18.20board must be a representative of the Minnesota Division of the Midwest Dairy Council.
18.21One member of the board must be a member of the agricultural education faculty of the
18.22Minnesota State Colleges and Universities System. The four members of the initial board
18.23of directors who are appointed by the governor must be appointed for terms of four years,
18.24and the other four members must be appointed for an initial term of two years. Vacancies
18.25for the governor's appointed positions on the board must be filled by appointment of
18.26the governor. Vacancies for other positions on the board must be filled by the named
18.27represented entities. Board members must not be compensated for their services.
18.28    Subd. 3. Bylaws. The board must adopt bylaws necessary for the conduct of the
18.29business of the authority, consistent with this chapter.
18.30    Subd. 4. Place of business. The board must locate and maintain the authority's
18.31place of business within the state.
18.32    Subd. 5. Chair. The board must annually elect from among its members a chair and
18.33other officers necessary for the performance of its duties.
19.1    Subd. 6. Meetings. The board must meet at least four times each year and may hold
19.2additional meetings upon giving notice in accordance with the bylaws of the authority.
19.3Board meetings are subject to chapter 13D.
19.4    Subd. 7. Conflict of interest. A director, employee, or officer of the authority may
19.5not participate in or vote on a decision of the board relating to an organization in which
19.6the director has either a direct or indirect financial interest.
19.7    Subd. 8. Economic interest statements. Directors and officers of the authority are
19.8public officials for the purpose of section 10A.09, and must file statements of economic
19.9interest with the Campaign Finance and Public Disclosure Board.

19.10    Sec. 35. [32C.02] POWERS.
19.11    Subdivision 1. General corporate powers. (a) The authority has the powers granted
19.12to a business corporation by section 302A.161, subdivisions 3; 4; 5; 7; 8; 9; 11; 12; 13,
19.13except that the authority may not act as a general partner in any partnership; 14; 15; 16; 17;
19.1418; and 22, and the powers necessary or convenient to exercise the enumerated powers.
19.15(b) Section 302A.041 applies to this chapter and the authority in the same manner
19.16that it applies to business corporations established under chapter 302A.
19.17    Subd. 2. Facility design; development and operation. The authority may enter into
19.18management contracts, lease agreements, or both, with a Minnesota nonprofit corporation
19.19to design, develop, and operate a facility to further the purposes of this chapter at the site
19.20determined by the board and on the terms that the board finds desirable. The board must
19.21identify and acquire a site that will accommodate the following facilities and activities:
19.22(1) housing for bred and lactating animals;
19.23(2) milking parlor;
19.24(3) automatic milking systems;
19.25(4) cross-ventilated and natural-ventilated housing;
19.26(5) transition cow housing;
19.27(6) special needs and hospital housing;
19.28(7) classrooms and a conference room;
19.29(8) dairy processing facility with retail;
19.30(9) visitors' center;
19.31(10) student housing;
19.32(11) laboratory facilities;
19.33(12) space to accommodate installation of an anaerobic digester system to research
19.34energy production from feedstock produced on-site or from off-site sources; and
19.35(13) space for feed storage to allow for research capabilities at the facility.
20.1Notwithstanding the provisions of section 32C.01, subdivision 7, relating to conflict
20.2of interest, a director or officer of the authority who is also a director, officer, or member
20.3of a nonprofit corporation with which the authority enters into management contracts or
20.4lease agreements may participate in and vote on the decision of the board as to the terms
20.5and conditions of management contracts or lease agreements between the Minnesota
20.6nonprofit corporation and the authority.
20.7    Subd. 3. Funds. The authority may accept and use gifts, grants, or contributions
20.8from any source to support operation of the facility. Unless otherwise restricted by the
20.9terms of a gift or bequest, the board may sell, exchange, or otherwise dispose of, and
20.10invest or reinvest the money, securities, or other property given or bequeathed to it. The
20.11principal of these funds, the income from them, and all other revenues received by the
20.12authority from any nonstate source must be placed in depositories chosen by the board
20.13and are subject to expenditure for the board's purposes. Expenditures of $25,000 or more
20.14must be approved by the full board.
20.15    Subd. 4. Animals; regulation. The authority must comply with all applicable
20.16laws and rules relating to quarantine, transportation, examination, habitation, care, and
20.17treatment of animals.

20.18    Sec. 36. [32C.03] EMPLOYEES.
20.19(a) The board may hire an executive director of the authority and other employees
20.20the board considers necessary to carry out the program, conduct research, and operate and
20.21maintain facilities of the authority.
20.22(b) Persons employed by contractors or lessees are not state employees and may
20.23not participate in state retirement, deferred compensation, insurance, or other plans that
20.24apply to state employees generally and are not subject to regulation by the Campaign
20.25Finance and Public Disclosure Board, provided, however, that any employee of the state
20.26or any employee or faculty member of the University of Minnesota or Minnesota State
20.27Colleges and Universities System who teaches or conducts research at the authority does
20.28not have their status as employees of the state, the University of Minnesota, or Minnesota
20.29State Colleges and Universities System interrupted by virtue of having their employment
20.30activity take place at facilities owned by the authority.

20.31    Sec. 37. [32C.04] ACCOUNTS; AUDITS.
20.32The authority may establish funds and accounts that it determines to be reasonable
20.33and necessary to conduct the business of the authority. The board shall provide for and
21.1pay the cost of an independent annual audit of its official books and records by the state
21.2auditor. A copy of this audit must be filed with the secretary of state.

21.3    Sec. 38. [32C.05] ANNUAL REPORT.
21.4The board shall submit a report to the chairs and ranking minority members of
21.5the senate and house of representatives agriculture committees and the governor on the
21.6activities of the authority and its contractors and lessees by February 1 of each year. The
21.7report must include at least the following:
21.8(1) a description of each of the programs that the authority has provided or
21.9undertaken at some time during the previous year;
21.10(2) an identification of the sources of funding in the previous year for the authority's
21.11programs including federal, state, and local government, foundations, gifts, donations,
21.12fees, and all other sources;
21.13(3) a description of the administrative expenses of the authority during the previous
21.14year;
21.15(4) a listing of the assets and liabilities of the authority at the end of the previous
21.16fiscal year;
21.17(5) a description of any changes made to the operational plan during the previous
21.18year; and
21.19(6) a description of any newly adopted or significant changes to bylaws, policies,
21.20rules, or programs created or administered by the authority during the previous year.
21.21Reports must be made to the legislature as required by section 3.195.

21.22    Sec. 39. [32C.06] EXPIRATION.
21.23If by August 1, 2017, the authority board has not identified and acquired a site for a
21.24facility, as provided in section 32C.02, subdivision 2, sections 32C.01 to 32C.05 and this
21.25section are repealed on that date. The Department of Agriculture shall notify the revisor of
21.26statutes if the repealer under this section becomes effective.

21.27    Sec. 40. Minnesota Statutes 2010, section 35.0661, subdivision 2, is amended to read:
21.28    Subd. 2. Quarantine zones. Upon an emergency declaration by the governor
21.29under subdivision 1, the board or any licensed veterinarian designated by the board may
21.30establish quarantine zones of control in any area where a specific animal is deemed by a
21.31licensed veterinarian as likely to be infected with the disease based on an actual veterinary
21.32examination or laboratory testing. Quarantine zones of control to restrict the movement of
21.33livestock must be the smallest size practicable to prevent the spread of disease and must
22.1exist for the shortest duration consistent with effective disease control. A quarantine zone
22.2of control must not extend beyond a radius of three miles from an animal deemed as likely
22.3to be infected with the disease, unless the board has adopted a rule regarding a specific
22.4disease requiring a larger quarantine zone of control.

22.5    Sec. 41. Minnesota Statutes 2010, section 35.0661, subdivision 3, is amended to read:
22.6    Subd. 3. Restrictions on movement out of quarantine zones. (a) The board may
22.7issue orders restricting the movement of persons, livestock, machinery, and personal
22.8property out of zones off infected premises designated by the board as quarantined under
22.9subdivision 2. The executive director of the board or any licensed veterinarian designated
22.10by the board may issue the orders. An order may be issued upon a determination that
22.11reasonable cause exists to believe that the movement of persons or personal property out
22.12of a quarantine zone will reasonably threaten to transport a dangerous, infectious, or
22.13communicable disease outside of the quarantine zone.
22.14(b) The order must be served upon any person subject to the order. The restrictions
22.15sought by the board on movement out of a quarantine zone must be limited to the greatest
22.16extent possible consistent with the paramount disease control objectives as determined by
22.17the board. An order under this section may be served on any day at any time. The order
22.18must include a notice of the person's rights under this section, including the ability to enter
22.19into an agreement to abide by disease control measures under paragraph (c) and the right
22.20to request a court hearing under paragraph (d).
22.21(c) No person may be restricted by an order under this subdivision for longer than 72
22.22hours, exclusive of Saturdays, Sundays, and legal holidays, so long as the person agrees to
22.23abide by the disease control measures established by the board. The person shall sign an
22.24acknowledgment form prepared by the board evidencing the person's agreement to abide
22.25by the disease control measures established by the board.
22.26(d) A person whose movements are restricted by an order under this subdivision may
22.27seek a district court hearing on the order at any time after it is served on the person. The
22.28hearing may be held by electronic means as soon as possible. The subject of the order may:
22.29(1) contest imposition of the order on grounds that it is an abuse of the board's
22.30discretion under this section; or
22.31(2) seek a variance from it to allow movement of a person inconsistent with the
22.32order, upon a showing that the person would otherwise suffer irreparable harm.

22.33    Sec. 42. Minnesota Statutes 2010, section 40A.17, is amended to read:
22.3440A.17 REPORT.
23.1The commissioner shall report to the legislature on January March 1 of each
23.2even-numbered year on activities under this chapter. By July 1, 1985, the report must
23.3include the survey of public awareness in the awareness program. The report shall include
23.4recommendations for funding levels and other necessary legislative action.

23.5    Sec. 43. Minnesota Statutes 2010, section 41A.12, subdivision 2, is amended to read:
23.6    Subd. 2. Activities authorized. For the purposes of this program, the commissioner
23.7may issue grants, loans, or other forms of financial assistance. Eligible activities include,
23.8but are not limited to, grants to livestock producers under the livestock investment grant
23.9program under section 17.118, bioenergy awards made by the NextGen Energy Board
23.10under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
23.11financial assistance to support other rural economic infrastructure activities.

23.12    Sec. 44. Minnesota Statutes 2010, section 41A.12, subdivision 4, is amended to read:
23.13    Subd. 4. Sunset. This section expires on June 30, 2013 2015.

23.14    Sec. 45. Minnesota Statutes 2010, section 41B.036, is amended to read:
23.1541B.036 GENERAL POWERS OF THE AUTHORITY.
23.16For the purpose of exercising the specific powers granted in section 41B.04 and
23.17effectuating the other purposes of sections 41B.01 to 41B.23 the authority has the general
23.18powers granted in this section.
23.19(a) It may sue and be sued.
23.20(b) It may have a seal and alter the seal.
23.21(c) It may make, and from time to time, amend and repeal rules consistent with
23.22sections 41B.01 to 41B.23.
23.23(d) It may acquire, hold, and dispose of real or personal property for its corporate
23.24purposes.
23.25(e) It may enter into agreements, contracts, or other transactions with any federal or
23.26state agency, any person and any domestic or foreign partnership, corporation, association,
23.27or organization, including contracts or agreements for administration and implementation
23.28of all or part of sections 41B.01 to 41B.23.
23.29(f) It may acquire real property, or an interest therein, in its own name, by purchase
23.30or foreclosure, where such acquisition is necessary or appropriate.
23.31(g) It may provide general technical services related to rural finance.
23.32(h) It may provide general consultative assistance services related to rural finance.
23.33(i) It may promote research and development in matters related to rural finance.
24.1(j) It may enter into agreements with lenders, borrowers, or the issuers of securities
24.2for the purpose of regulating the development and management of farms financed in whole
24.3or in part by the proceeds of qualified agricultural loans.
24.4(k) It may enter into agreements with other appropriate federal, state, or local
24.5governmental units to foster rural finance. It may give advance reservations of loan
24.6financing as part of the agreements, with the understanding that the authority will only
24.7approve the loans pursuant to normal procedures, and may adopt special procedures
24.8designed to meet problems inherent in such programs.
24.9(l) It may undertake and carry out studies and analyses of rural financing needs
24.10within the state and ways of meeting such needs including: data with respect to
24.11geographical distribution; farm size; the distribution of farm credit needs according to
24.12debt ratios and similar factors; the amount and quality of available financing and its
24.13distribution according to factors affecting rural financing needs and the meeting thereof;
24.14and may make the results of such studies and analyses available to the public and may
24.15engage in research and disseminate information on rural finance.
24.16(m) It may survey and investigate the rural financing needs throughout the state and
24.17make recommendations to the governor and the legislature as to legislation and other
24.18measures necessary or advisable to alleviate any existing shortage in the state.
24.19(n) It may establish cooperative relationships with such county and multicounty
24.20authorities as may be established and may develop priorities for the utilization of authority
24.21resources and assistance within a region in cooperation with county and multicounty
24.22authorities.
24.23(o) It may contract with, use, or employ any federal, state, regional, or local public
24.24or private agency or organization, legal counsel, financial advisors, investment bankers or
24.25others, upon terms it deems necessary or desirable, to assist in the exercise of any of the
24.26powers granted in sections 41B.01 to 41B.23 and to carry out the objectives of sections
24.2741B.01 to 41B.23 and may pay for the services from authority funds.
24.28(p) It may establish cooperative relationships with counties to develop priorities for
24.29the use of authority resources and assistance within counties and to consider county plans
24.30and programs in the process of setting the priorities.
24.31(q) It may delegate any of its powers to its officers or staff.
24.32(r) It may enter into agreements with qualified agricultural lenders or others insuring
24.33or guaranteeing to the state the payment of all or a portion of qualified agricultural loans.
24.34(s) It may enter into agreements with eligible agricultural lenders providing for
24.35advance reservations of purchases of participation interests in restructuring loans, if
24.36the agreements provide that the authority may only purchase participation interests
25.1in restructuring loans under the normal procedure. The authority may provide in an
25.2agreement for special procedures or requirements designed to meet specific conditions or
25.3requirements.
25.4(t) It may allow farmers who are natural persons to combine programs of the federal
25.5Agriculture Credit Act of 1987 with programs of the Rural Finance Authority.
25.6(u) From within available funds generated by program fees, it may provide partial
25.7or full tuition assistance for farm management programs required under section 41B.03,
25.8subdivision 3 , clause (7).
25.9(v) It may accept for and on behalf of the state any gift, bequest, devise, grant, or
25.10interest in money or personal property of any kind tendered to the state for any purpose
25.11pertaining to the activities of the authority.

25.12    Sec. 46. Minnesota Statutes 2010, section 41B.048, subdivision 6, is amended to read:
25.13    Subd. 6. Loans. (a) The authority may disburse loans through a fiscal agent to
25.14farmers and agricultural landowners who are eligible under subdivision 5. The total
25.15accumulative loan principal must not exceed $75,000 per loan.
25.16(b) The fiscal agent may impose a loan origination fee in the amount of one percent
25.17of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
25.18the time of loan closing.
25.19(c) The loan may be disbursed over a period not to exceed 12 years.
25.20(d) A borrower may receive loans, depending on the availability of funds, for planted
25.21areas up to 160 acres for up to:
25.22(1) the total amount necessary for establishment of the crop;
25.23(2) the total amount of maintenance costs, including weed control, during the first
25.24three years; and
25.25(3) 70 percent of the estimated value of one year's growth of the crop for years
25.26four through 12.
25.27(e) Security for the loan must be the crop, a personal note executed by the borrower,
25.28an interest in the land upon which the crop is growing, and whatever other security is
25.29required by the fiscal agent or the authority. All recording fees must be paid by the
25.30borrower.
25.31(f) The authority may prescribe forms and establish an application process for
25.32applicants to apply for a loan.
25.33(g) The authority may impose a reasonable, nonrefundable application fee for each
25.34application for a loan under this program. The application fee is initially $50. Application
26.1fees received by the authority must be deposited in the agroforestry loan program revolving
26.2fund established in subdivision 7 revolving loan account established under section 41B.06.
26.3(h) Loans under the program must be made using money in the agroforestry loan
26.4program revolving fund established in subdivision 7 revolving loan account established
26.5under section 41B.06.
26.6(i) All repayments of financial assistance granted under this section, including
26.7principal and interest, must be deposited into the revolving loan account established
26.8under section 41B.06.
26.9(i) (j) The interest payable on loans made by the authority for the agroforestry
26.10loan program must, if funded by revenue bond proceeds, be at a rate not less than the
26.11rate on the revenue bonds, and may be established at a higher rate necessary to pay
26.12costs associated with the issuance of the revenue bonds and a proportionate share of the
26.13cost of administering the program. The interest payable on loans for the agroforestry
26.14loan program funded from sources other than revenue bond proceeds must be at a rate
26.15determined by the authority.
26.16(j) (k) Loan principal balance outstanding plus all assessed interest must be repaid
26.17within 120 days of harvest, but no later than 15 years from planting.

26.18    Sec. 47. Minnesota Statutes 2010, section 41B.055, subdivision 1, is amended to read:
26.19    Subdivision 1. Establishment. The authority must establish and implement a
26.20livestock equipment pilot loan program to help finance the purchase of livestock-related
26.21equipment and make livestock facilities improvements.

26.22    Sec. 48. [41B.056] PILOT AGRICULTURAL MICROLOAN PROGRAM.
26.23    Subdivision 1. Establishment. The authority shall establish and implement a pilot
26.24agricultural microloan program to help finance the production of specialty crops or
26.25eligible livestock. The authority may contract with an intermediary to provide an efficient
26.26delivery system for this program.
26.27    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
26.28(b) "Intermediary" means any lending institution or other organization of a for-profit
26.29or nonprofit nature that is in good standing with the state of Minnesota that has the
26.30appropriate business structure and trained personnel suitable to providing efficient
26.31disbursement of loan funds and the servicing and collection of loans.
26.32(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
26.33and other horticultural products, that are intensively cultivated.
27.1(d) "Eligible livestock" means poultry that has been allowed access to the outside,
27.2sheep, or goats.
27.3    Subd. 3. Eligibility. To be eligible for this program a borrower must:
27.4(1) be a legal resident of Minnesota;
27.5(2) either:
27.6(i) be a member of a protected group as defined in section 43A.02, subdivision 33; or
27.7(ii) be a qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph
27.8(b);
27.9(3) be or plan to become a grower of specialty crops or eligible livestock;
27.10(4) market or contract to market the specialty crops or eligible livestock; and
27.11(5) demonstrate an ability to repay the loan.
27.12    Subd. 4. Loans. (a) The authority may disburse loans through an intermediary
27.13to farmers who are eligible under subdivision 3. The total accumulative loan principal
27.14must not exceed $10,000 per loan.
27.15(b) Refinancing an existing debt is not an eligible purpose.
27.16(c) The loan may be disbursed over a period not to exceed six years.
27.17(d) A borrower may receive loans, depending on the availability of funds, up to 70
27.18percent of the estimated value of the crop or livestock.
27.19(e) Security for the loan must be a personal note executed by the borrower and any
27.20other security required by the intermediary or the authority.
27.21(f) The authority may prescribe forms and establish an application process for
27.22applicants to apply for a loan.
27.23(g) The interest payable on loans for the pilot agricultural microloan program must
27.24be at a rate determined by the authority.
27.25(h) Loans under this program will be made using money in the revolving loan
27.26account established under section 41B.06.
27.27(i) Repayments of financial assistance under this section, including principal and
27.28interest, must be deposited into the revolving loan account established under section
27.2941B.06.

27.30    Sec. 49. Minnesota Statutes 2010, section 41B.06, is amended to read:
27.3141B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
27.32    There is established in the rural finance administration fund a Rural Finance
27.33Authority revolving loan account that is eligible to receive appropriations and the transfer
27.34of loan funds from other programs. All repayments of financial assistance granted from
27.35this account, including principal and interest, must be deposited into this account. Interest
28.1earned on money in the account accrues to the account, and the money in the account
28.2is appropriated to the commissioner of agriculture for purposes of the Rural Finance
28.3Authority livestock equipment, methane digester, disaster recovery, and value-added
28.4agricultural product, agroforestry, and agricultural microloan loan programs, including
28.5costs incurred by the authority to establish and administer the programs.

28.6    Sec. 50. Minnesota Statutes 2010, section 48.24, subdivision 5, is amended to read:
28.7    Subd. 5. Treatment of secured or guaranteed loans. Loans or obligations shall not
28.8be subject under this section to any limitation based upon such capital and surplus to the
28.9extent that they are secured or covered by guarantees, or by commitments or agreements
28.10to take over or to purchase the same, made by:
28.11(1) the commissioner of agriculture on the purchase of agricultural land Minnesota
28.12Department of Agriculture;
28.13(2) any Federal Reserve bank;
28.14(3) the United States or any department, bureau, board, commission, or establishment
28.15of the United States, including any corporation wholly owned directly or indirectly by
28.16the United States;
28.17(4) the Minnesota Employment and Economic Development Department; or
28.18(5) a municipality or political subdivision within Minnesota to the extent that the
28.19guarantee or collateral is a valid and enforceable general obligation of that political body.

28.20    Sec. 51. Minnesota Statutes 2010, section 223.16, subdivision 12, is amended to read:
28.21    Subd. 12. Public grain warehouse operator. "Public grain warehouse operator"
28.22means a person operating a grain warehouse in which grain belonging to persons other
28.23than the grain warehouse operator is accepted for storage or purchase or who offers grain
28.24storage or warehouse facilities to the public for hire or a feed-processing plant that
28.25receives and stores grain, the equivalent of which it processes and returns to the grain's
28.26owner in amounts, at intervals, and with added ingredients that are mutually agreeable to
28.27the grain's owner and the person operating the plant.

28.28    Sec. 52. Minnesota Statutes 2010, section 223.17, subdivision 1, is amended to read:
28.29    Subdivision 1. Licenses. An application for a grain buyer's license must be filed
28.30with the commissioner and the license issued before any grain may be purchased. The
28.31commissioner must provide application forms and licenses that state the restrictions and
28.32authority to purchase and store grain under the license being applied for and issued. The
28.33categories of grain buyers' licenses are:
29.1(a) private grain warehouse operator's license;
29.2(b) public grain warehouse operator's license; and
29.3(c) independent grain buyer's license.
29.4The applicant for a grain buyer's license shall identify all grain buying locations
29.5owned or controlled by the grain buyer and all vehicles owned or controlled by the grain
29.6buyer used to transport purchased grain. Every applicant for a grain buyer's license shall
29.7have a permanent established place of business at each licensed location. An "established
29.8place of business" means a permanent enclosed building, including a house or a farm,
29.9either owned by the applicant or leased by the applicant for a period of at least one year,
29.10and where the books, records, and files necessary to conduct the business are kept and
29.11maintained. The commissioner may maintain information on grain buyers by categories
29.12including, but not limited to, the categories provided in clauses (a) to (c) and grain buyers
29.13that are licensed to purchase grain using trucks but that do not have a public or private
29.14warehouse license.

29.15    Sec. 53. Minnesota Statutes 2010, section 223.17, subdivision 4, is amended to read:
29.16    Subd. 4. Bond. (a) Before a grain buyer's license is issued, the applicant for
29.17the license must file with the commissioner a bond in a penal sum prescribed by the
29.18commissioner but not less than the following amounts:
29.19(a) (1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
29.20(b) (2) $20,000 for grain buyers whose gross annual purchases are more than
29.21$100,000 but not more than $750,000;
29.22(c) (3) $30,000 for grain buyers whose gross annual purchases are more than
29.23$750,000 but not more than $1,500,000;
29.24(d) (4) $40,000 for grain buyers whose gross annual purchases are more than
29.25$1,500,000 but not more than $3,000,000;
29.26(e) (5) $50,000 for grain buyers whose gross annual purchases are more than
29.27$3,000,000 but not more than $6,000,000;
29.28(f) (6) $70,000 for grain buyers whose gross annual purchases are more than
29.29$6,000,000 but not more than $12,000,000;
29.30(g) (7) $125,000 for grain buyers whose gross annual purchases are more than
29.31$12,000,000 but not more than $24,000,000; and
29.32(h) (8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
29.33(b) A grain buyer who has filed a bond with the commissioner prior to July 1, 2004,
29.34is not required to increase the amount of the bond to comply with this section until July 1,
29.352005. The commissioner may postpone an increase in the amount of the bond until July 1,
30.12006, if a licensee demonstrates that the increase will impose undue financial hardship on
30.2the licensee, and that producers will not be harmed as a result of the postponement. The
30.3commissioner may impose other restrictions on a licensee whose bond increase has been
30.4postponed. The amount of the bond shall be based on the most recent financial statement
30.5gross annual grain purchase report of the grain buyer filed under subdivision 6.
30.6(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
30.7commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
30.8the licensee shall comply with the applicable bonding requirements contained in clauses
30.9(a) to (h) paragraph (a), clauses (1) to (8).
30.10(d) In lieu of the bond required by this subdivision the applicant may deposit with
30.11the commissioner of management and budget cash, a certified check, a cashier's check,
30.12a postal, bank, or express money order, assignable bonds or notes of the United States,
30.13or an assignment of a bank savings account or investment certificate or an irrevocable
30.14bank letter of credit as defined in section 336.5-102, in the same amount as would be
30.15required for a bond.
30.16(e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
30.1790 days' written notice of the bond's termination date to the licensee and the commissioner.

30.18    Sec. 54. Minnesota Statutes 2010, section 223.17, subdivision 6, is amended to read:
30.19    Subd. 6. Financial statements. For the purpose of fixing or changing the amount of
30.20a required bond or for any other proper reason, (a) The commissioner shall may require an
30.21annual financial statement from a licensee which has been prepared in accordance with
30.22generally accepted accounting principles and which meets the following requirements:
30.23(a) (1) The financial statement shall include, but not be limited to the following: (1)
30.24(i) a balance sheet; (2)
30.25(ii) a statement of income (profit and loss); (3)
30.26(iii) a statement of retained earnings; (4)
30.27(iv) a statement of changes in financial position; and (5)
30.28(v) a statement of the dollar amount of grain purchased in the previous fiscal year
30.29of the grain buyer.
30.30(b) (2) The financial statement shall be accompanied by a compilation report of the
30.31financial statement that is prepared by a grain commission firm or a management firm
30.32approved by the commissioner or by an independent public accountant, in accordance with
30.33standards established by the American Institute of Certified Public Accountants. Grain
30.34buyers purchasing less than 150,000 bushels of grain per calendar year may submit a
31.1financial statement prepared by a public accountant who is not an employee or a relative
31.2within the third degree of kindred according to civil law.
31.3(c) (3) The financial statement shall be accompanied by a certification by the chief
31.4executive officer or the chief executive officer's designee of the licensee, under penalty
31.5of perjury, that the financial statement accurately reflects the financial condition of the
31.6licensee for the period specified in the statement.
31.7(b) Only one financial statement must be filed for a chain of warehouses owned
31.8or operated as a single business entity, unless otherwise required by the commissioner.
31.9Any grain buyer having a net worth in excess of $500,000,000 need not file the financial
31.10statement required by this subdivision but must provide the commissioner with a certified
31.11net worth statement. All financial statements filed with the commissioner are private or
31.12nonpublic data as provided in section 13.02.

31.13    Sec. 55. Minnesota Statutes 2010, section 223.17, subdivision 9, is amended to read:
31.14    Subd. 9. Defaults; violations. It is a violation under this chapter if the commissioner
31.15finds, after an investigation is conducted, that a complaint is valid or that a licensee is in
31.16violation of the provisions of this chapter, the commissioner may immediately suspend
31.17the license, in which case the licensee shall surrender the license to the commissioner.
31.18Within 15 days, the licensee may request an administrative hearing subject to chapter 14
31.19to determine whether the license should be revoked. If no request is made within 15 days,
31.20the commissioner shall revoke the license.

31.21    Sec. 56. Minnesota Statutes 2010, section 232.21, subdivision 2, is amended to read:
31.22    Subd. 2. Bond. "Bond" means an acceptable obligation, running to the state as
31.23obligee, for the purpose of indemnifying depositors and producers of grain against breach
31.24of contract by a public grain warehouse or grain bank operator.

31.25    Sec. 57. Minnesota Statutes 2010, section 232.21, subdivision 6, is amended to read:
31.26    Subd. 6. Depositor. "Depositor" means a person who is the owner or legal holder of
31.27an outstanding grain warehouse receipt, grain bank receipt or open scale ticket marked
31.28for storage on which a receipt is to be issued, representing any grain stored in a public
31.29grain warehouse or grain bank.

31.30    Sec. 58. Minnesota Statutes 2010, section 232.21, subdivision 12, is amended to read:
31.31    Subd. 12. Public grain warehouse operator. "Public grain warehouse operator"
31.32means a person licensed to operate a grain warehouse in which grain belonging to persons
32.1other than the grain warehouse operator is accepted for storage or purchase, or who offers
32.2grain storage or grain warehouse facilities to the public for hire or a feed-processing
32.3plant that receives and stores grain, the equivalent of which, it processes and returns to
32.4the grain's owner in amounts, at intervals, and with added ingredients that are mutually
32.5agreeable to the grain's owner and the person operating the plant.

32.6    Sec. 59. Minnesota Statutes 2010, section 232.22, subdivision 3, is amended to read:
32.7    Subd. 3. Fees; grain buyers and storage account. There is created in the
32.8agricultural fund an account known as the grain buyers and storage account. The
32.9commissioner shall set the fees for inspections examinations, certifications, and licenses
32.10under sections 232.20 to 232.25 232.24 at levels necessary to pay the costs of administering
32.11and enforcing sections 232.20 to 232.25 232.24. All money collected pursuant to sections
32.12232.20 to 232.25 and chapters 233 and 236 232.24 shall be paid by the commissioner into
32.13the state treasury and credited to the grain buyers and storage account and is appropriated
32.14to the commissioner for the administration and enforcement of sections 232.20 to 232.25
32.15and chapters 233 and 236 232.24. All money collected pursuant to chapter 231 shall be
32.16paid by the commissioner into the grain buyers and storage account and is appropriated to
32.17the commissioner for the administration and enforcement of chapter 231.
32.18The fees for a license to store grain are as follows:
32.19(a) For a license to store grain, $110 for each home rule charter or statutory city or
32.20town in which a public grain warehouse is operated.
32.21(b) A person with a license to store grain in a public grain warehouse is subject to
32.22an examination fee for each licensed location, based on the following schedule for one
32.23examination:

32.24 32.25		Bushel Capacity	Examination Fee
32.26		Less than 150,001	$	300
32.27		150,001 to 250,000	$	425
32.28		250,001 to 500,000	$	545
32.29		500,001 to 750,000	$	700
32.30		750,001 to 1,000,000	$	865
32.31		1,000,001 to 1,200,000	$	1,040
32.32		1,200,001 to 1,500,000	$	1,205
32.33		1,500,001 to 2,000,000	$	1,380
32.34		More than 2,000,000	$	1,555

32.35(c) The fee for the second examination is $55 per hour per examiner for warehouse
32.36operators who choose to have it performed by the commissioner.
33.1(d) A penalty amount not to exceed ten percent of the fees due may be imposed by
33.2the commissioner for each month for which the fees are delinquent.

33.3    Sec. 60. Minnesota Statutes 2010, section 232.22, subdivision 4, is amended to read:
33.4    Subd. 4. Bonding. (a) Before a license is issued, the applicant for a public grain
33.5warehouse operator's license shall file with the commissioner a bond in a penal sum
33.6prescribed by the commissioner. The penal sum on a condition one bond shall be
33.7established by rule by the commissioner pursuant to the requirements of chapter 14 for
33.8all grain outstanding on grain warehouse receipts. The penal sum on a condition two
33.9bond shall not be less than $10,000 for each location up to a maximum of five locations.
33.10based on the annual average storage liability as stated on the statement of grain in storage
33.11report or on the gross annual grain purchase report, whichever is greater, and applying
33.12the following amounts:
33.13(1) $10,000 for storages with annual average storage liability of more than $0 but
33.14not more than $25,000;
33.15(2) $20,000 for storages with annual average storage liability of more than $25,001
33.16but not more than $50,000;
33.17(3) $30,000 for storages with annual average storage liability of more than $50,001
33.18but not more than $75,000;
33.19(4) $50,000 for storages with annual average storage liability of more than $75,001
33.20but not more than $100,000;
33.21(5) $75,000 for storages with annual average storage liability of more than $100,001
33.22but not more than $200,000;
33.23(6) $125,000 for storages with annual average storage liability of more than
33.24$200,001 but not more than $300,000;
33.25(7) $175,000 for storages with annual average storage liability of more than
33.26$300,001 but not more than $400,000;
33.27(8) $225,000 for storages with annual average storage liability of more than
33.28$400,001 but not more than $500,000;
33.29(9) $275,000 for storages with annual average storage liability of more than
33.30$500,001 but not more than $600,000;
33.31(10) $325,000 for storages with annual average storage liability of more than
33.32$600,001 but not more than $700,000;
33.33(11) $375,000 for storages with annual average storage liability of more than
33.34$700,001 but not more than $800,000;
34.1(12) $425,000 for storages with annual average storage liability of more than
34.2$800,001 but not more than $900,000;
34.3(13) $475,000 for storages with annual average storage liability of more than
34.4$900,001 but not more than $1,000,000; and
34.5(14) $500,000 for storages with annual average storage liability of more than
34.6$1,000,000.
34.7(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
34.890 days' written notice of the bond's termination date to the licensee and the commissioner.

34.9    Sec. 61. Minnesota Statutes 2010, section 232.22, subdivision 5, is amended to read:
34.10    Subd. 5. Statement of grain in storage; reports. (a) All public grain warehouse
34.11operators must by the tenth day of each month February 15 of each year file with the
34.12commissioner on forms a form approved by the commissioner a report showing the net
34.13annual average liability of all grain outstanding on grain warehouse receipts as of the close
34.14of business on the last day of that occurred during the preceding month calendar year.
34.15This report shall be used for the purpose of establishing the penal sum of the bond.
34.16(b) Warehouse operators that are at a maximum bond and want to continue at
34.17maximum bond do not need to file this report.
34.18(b) If (c) It is a violation of this chapter for any public grain warehouse operator
34.19willfully neglects or refuses to fail to file the report required in clause paragraph (a) for
34.20two consecutive months, the commissioner may immediately suspend the person's license
34.21and the licensee must surrender the license to the commissioner. Within 15 days the
34.22licensee may request an administrative hearing subject to chapter 14 to determine if the
34.23license should be revoked. If no request is made within 15 days the commissioner shall
34.24revoke the license.
34.25(c) (d) Every public grain warehouse operator shall keep in a place of safety complete
34.26and accurate records and accounts relating to any grain warehouse operated. The records
34.27shall reflect each commodity received and shipped daily, the balance remaining in the
34.28grain warehouse at the close of each business day, a listing of all unissued grain warehouse
34.29receipts in the operator's possession, a record of all grain warehouse receipts issued which
34.30remain outstanding and a record of all grain warehouse receipts which have been returned
34.31for cancellation. Copies of grain warehouse receipts or other documents evidencing
34.32ownership of grain by a depositor, or other liability of the grain warehouse operator, shall
34.33be retained as long as the liability exists but must be kept for a minimum of three years.
35.1(d) (e) Every public grain warehouse operator must maintain in the grain warehouse
35.2at all times grain of proper grade and sufficient quantity to meet delivery obligations on
35.3all outstanding grain warehouse receipts.

35.4    Sec. 62. Minnesota Statutes 2010, section 232.22, subdivision 7, is amended to read:
35.5    Subd. 7. Bond disbursement. (a) The condition one bond of a public grain
35.6warehouse operator must be conditioned that the public grain warehouse operator issuing
35.7a grain warehouse receipt is liable to the depositor for the delivery of the kind, grade and
35.8net quantity of grain called for by the receipt.
35.9(b) The condition two bond shall provide for payment of loss caused by the grain
35.10buyer's failure to pay, upon the owner's demand, the purchase price of grain sold to the
35.11grain buyer. The bond shall be conditioned upon the grain buyer being duly licensed as
35.12provided herein. The bond shall not cover any transaction which constitutes a voluntary
35.13extension of credit.
35.14(c) (b) Upon notification of default, the commissioner shall determine the validity
35.15of all claims and notify all parties having filed claims. Any aggrieved party may appeal
35.16the commissioner's determination by requesting, within 15 days, that the commissioner
35.17initiate a contested case proceeding. In the absence of such a request, or following the
35.18issuance of a final order in a contested case, the surety company shall issue payment to
35.19those claimants entitled to payment. If the commissioner determines it is necessary, the
35.20commissioner may apply to the district court for an order appointing a trustee or receiver
35.21to manage and supervise the operations of the grain warehouse operator in default. The
35.22commissioner may participate in any resulting court proceeding as an interested party.
35.23(d) (c) For the purpose of determining the amount of bond disbursement against all
35.24valid claims under a condition one bond, all grain owned or stored in the public grain
35.25warehouse shall be sold and the combined proceeds deposited in a special fund. Payment
35.26shall be made from the special fund satisfying the valid claims of grain warehouse receipt
35.27holders.
35.28(e) (d) If a public grain warehouse operator has become liable to more than one
35.29depositor or producer by reason of breaches of the conditions of the bond and the
35.30amount of the bond is insufficient to pay, beyond the proceeds of the special fund, the
35.31entire liability to all valid claimants, the proceeds of the bond and special fund shall be
35.32apportioned among the valid claimants on a pro rata basis.
35.33(f) (e) A bond is not cumulative from one licensing period to the next. The maximum
35.34liability of the bond shall be its face value for the licensing period.

36.1    Sec. 63. Minnesota Statutes 2010, section 232.23, subdivision 2, is amended to read:
36.2    Subd. 2. Scale tickets. A public or private grain warehouse operator, upon
36.3receiving grain, shall issue a scale ticket for each load of grain received. Scale tickets shall
36.4contain the name, location and the date of each transaction, weight, volume, kind of
36.5grain, signature of warehouse operator, and be consecutively numbered. Electronic scale
36.6tickets do not require a signature. A duplicate copy of each scale ticket shall remain in the
36.7possession of the public or private grain warehouse operator as a permanent record. The
36.8original scale ticket shall be delivered to the depositor upon receipt of each load of grain.
36.9Each scale ticket shall have printed across its face "This is a memorandum, nonnegotiable,
36.10possession of which does not signify that settlement has or has not been consummated."
36.11The scale ticket shall state specifically whether the grain is received on contract, for
36.12storage, for shipment or consignment or sold. If the grain is received on contract or sold,
36.13the price shall be indicated on the scale ticket. All paper scale tickets shall be dated and
36.14signed by the public or private grain warehouse operator or the operator's agent or manager.

36.15    Sec. 64. Minnesota Statutes 2010, section 232.23, subdivision 5, is amended to read:
36.16    Subd. 5. Void agreements; penalty. A provision or agreement in a grain warehouse
36.17receipt not contained in subdivision 4 is void. The failure to issue a grain warehouse
36.18receipt, as directed, or the issuance of slips, memoranda or other forms of receipt
36.19embracing a different grain warehouse or storage contract is a misdemeanor, and no
36.20slip, memorandum or other form of receipt is admissible as evidence in any civil action.
36.21Nothing in sections 232.20 to 232.25 232.24 requires or compels any person operating a
36.22flour, cereal or feed mill or malthouse doing a manufacturing business, to receive, store or
36.23purchase at the mill or malthouse any kind of grain.

36.24    Sec. 65. Minnesota Statutes 2010, section 232.23, subdivision 10, is amended to read:
36.25    Subd. 10. Delivery of grain. (a) On the redemption of a grain warehouse receipt
36.26and payment of all lawful charges, the grain represented by the receipt is immediately
36.27deliverable to the depositor or the depositor's order, and is not subject to any further charge
36.28for storage after demand for delivery has been made and proper facilities for receiving and
36.29shipping the grain have been provided. If delivery has not commenced within 48 hours
36.30after demand has been made and proper facilities have been provided, the public grain
36.31warehouse operator issuing the grain warehouse receipt is liable to the owner in damages
36.32not exceeding two cents per bushel for each day's delay, unless the public grain warehouse
36.33operator makes delivery to different owners in the order demanded as rapidly as it can be
36.34done through ordinary diligence, or unless insolvency has occurred.
37.1(b) If a disagreement arises between the person receiving and the person delivering
37.2the grain at a public grain warehouse in this state as to the proper grade or dockage of any
37.3grain, an average sample of at least three quarts of the grain in dispute may be taken by
37.4either or both of the persons interested. The sample shall be certified by both the owner
37.5and the public grain warehouse operator as being true samples of the grain in dispute on
37.6the delivery day. The samples shall be forwarded in a suitable airtight container by parcel
37.7post or express, prepaid, with the name and address of both parties, to the head of the a
37.8United States Department of Agriculture authorized grain inspection program of the
37.9Department of Agriculture, who shall, upon request, examine the grain, and determine
37.10what grade or dockage the samples of grain are entitled to under the inspection rules.
37.11Before the results of the inspection are released to the person requesting the inspection,
37.12the person shall pay the required fee. The fee shall be the same as that required for similar
37.13services rendered by the grain inspection program.

37.14    Sec. 66. Minnesota Statutes 2010, section 232.24, subdivision 1, is amended to read:
37.15    Subdivision 1. Schedule of inspection examination. A licensee under sections
37.16232.20 to 232.25 is subject to two audits examinations annually conducted by the
37.17commissioner or the agricultural marketing service of the United States Department of
37.18Agriculture. The commissioner may, by rule, authorize one audit examination to be
37.19conducted by a qualified nongovernmental unit.

37.20    Sec. 67. Minnesota Statutes 2010, section 232.24, subdivision 2, is amended to read:
37.21    Subd. 2. Financial reports. A licensee under sections 232.20 to 232.25 upon request
37.22must provide to the commissioner a copy of the financial reports of an audit conducted by
37.23a qualified nongovernmental unit containing information the commissioner requires.

37.24    Sec. 68. Minnesota Statutes 2010, section 239.092, is amended to read:
37.25239.092 SALE FROM BULK.
37.26    (a) Bulk sales of commodities, when the buyer and seller are not both present to
37.27witness the measurement, must be accompanied by a delivery ticket containing the
37.28following information:
37.29    (1) the name and address of the person who weighed or measured the commodity;
37.30    (2) the date delivered;
37.31    (3) the quantity delivered;
37.32    (4) the count of individually wrapped packages delivered, if more than one is
37.33included in the quantity delivered;
38.1    (5) the quantity on which the price is based, if different than the quantity delivered;
38.2and
38.3    (6) the identity of the commodity in the most descriptive terms commercially
38.4practicable, including representations of quality made in connection with the sale.
38.5    (b) This section is not intended to conflict with the bulk sale requirements of the
38.6Department of Agriculture. If a conflict occurs, the law and rules of the Department of
38.7Agriculture govern.
38.8    (c) Firewood sold or distributed across state boundaries or more than 100 miles
38.9from its origin in this state must include delivery ticket information regarding the harvest
38.10locations of the wood by county or counties and state.
38.11(d) Paragraph (c) may be enforced using the authority granted in this chapter or
38.12section 18J.05 or 84D.13.

38.13    Sec. 69. Minnesota Statutes 2010, section 239.093, is amended to read:
38.14239.093 INFORMATION REQUIRED WITH PACKAGE.
38.15    (a) A package offered, exposed, or held for sale must bear a clear and conspicuous
38.16declaration of:
38.17    (1) the identity of the commodity in the package, unless the commodity can be easily
38.18identified through the wrapper or container;
38.19    (2) the net quantity in terms of weight, measure, or count;
38.20    (3) the name and address of the manufacturer, packer, or distributor, if the packages
38.21were not produced on the premises where they are offered, exposed, or held for sale; and
38.22    (4) the unit price, if the packages are part of a lot containing random weight
38.23packages of the same commodity.
38.24    (b) This section is not intended to conflict with the packaging requirements of the
38.25Department of Agriculture. If a conflict occurs, the laws and rules of the Department of
38.26Agriculture govern.
38.27    (c) Firewood sold or distributed across state boundaries or more than 100 miles from
38.28its origin in this state must include information regarding the harvest locations of the wood
38.29by county or counties and state on each label or wrapper.
38.30(d) Paragraph (c) may be enforced using the authority granted in this chapter or
38.31section 18J.05 or 84D.13.

38.32    Sec. 70. Minnesota Statutes 2010, section 239.77, subdivision 3, is amended to read:
38.33    Subd. 3. Exceptions. (a) The minimum content requirements of subdivision 2 do
38.34not apply to fuel used in the following equipment:
39.1    (1) motors located at an electric generating plant regulated by the Nuclear
39.2Regulatory Commission;
39.3    (2) railroad locomotives;
39.4    (3) off-road taconite and copper mining equipment and machinery;
39.5    (4) off-road logging equipment and machinery; and
39.6    (5) until May 1, 2010, vehicles and equipment used exclusively on an aircraft
39.7landing field vessels of the United States Coast Guard and vessels subject to inspection
39.8under United States Code, title 46, section 3301, subsection (1), (9), (10), (13), or (15).
39.9    (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
39.10Regulatory Commission has approved the use of biodiesel fuel in motors at electric
39.11generating plants under its regulation.
39.12    (c) The minimum content requirements of subdivision 2 do not apply to Number 1
39.13diesel fuel sold or offered for sale during the months of October, November, December,
39.14January, February, and March.
39.15(d) This subdivision expires on May 1, 2012 2015.
39.16EFFECTIVE DATE.This section is effective the day following final enactment.

39.17    Sec. 71. Minnesota Statutes 2010, section 239.77, subdivision 5, is amended to read:
39.18    Subd. 5. Annual report. (a) Beginning in 2009, the commissioner of agriculture
39.19must report by January 15 of each year to the chairs and ranking minority members of
39.20the legislative committees and divisions with jurisdiction over agriculture policy and
39.21finance regarding the implementation of the minimum content requirements in subdivision
39.222, including information about the price and supply of biodiesel fuel. The report shall
39.23include information about the impacts of the biodiesel mandate on the development of
39.24biodiesel production capacity in the state, and on the use of feedstock grown or raised in
39.25the state for biodiesel production. The report must include any written comments received
39.26from members of the biodiesel fuel task force by January 1 of that year designated by
39.27them for inclusion in the report.
39.28(b) The commissioner of agriculture, in consultation with the commissioner
39.29of commerce and the Biodiesel Fuel Task Force, shall study the need to continue
39.30the exceptions in subdivision 3. The 2013 report under paragraph (a) shall include
39.31recommendations for studies and other research needs to make a determination on the
39.32need for the exceptions, including any recommendations for use of the agricultural growth,
39.33research, and innovation program funding to conduct the research. The 2014 report under
39.34paragraph (a) shall contain the commissioner of agriculture's recommendations on whether
39.35to continue any of the exceptions in subdivision 3.

40.1    Sec. 72. Minnesota Statutes 2010, section 239.791, subdivision 1a, is amended to read:
40.2    Subd. 1a. Minimum ethanol content required. (a) Except as provided in
40.3subdivisions 10 to 14, on August 30, 2013 2015, and thereafter, a person responsible for
40.4the product shall ensure that all gasoline sold or offered for sale in Minnesota must contain
40.5at least the quantity of ethanol required by clause (1) or (2), whichever is greater:
40.6(1) 20 percent denatured ethanol by volume; or
40.7(2) the maximum percent of denatured ethanol by volume authorized in a waiver
40.8granted by the United States Environmental Protection Agency.
40.9(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
40.10clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
40.11content, exclusive of denaturants and other permitted components, comprises not less than
40.1218.4 percent by volume and not more than 20 percent by volume of the blend as determined
40.13by an appropriate United States Environmental Protection Agency or American Society of
40.14Testing Materials standard method of analysis of alcohol content in motor fuels.
40.15(c) This subdivision expires on December 31, 2012 2014, if by that date:
40.16(1) the commissioner of agriculture certifies and publishes the certification in
40.17the State Register that at least 20 percent of the volume of gasoline sold in the state
40.18is denatured ethanol; or
40.19(2) federal approval has not been granted under paragraph (a), clause (1). The
40.20United States Environmental Protection Agency's failure to act on an application shall not
40.21be deemed approval under paragraph (a), clause (1), or a waiver under section 211(f)(4) of
40.22the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).

40.23    Sec. 73. [346.47] SEIZED ANIMALS.
40.24    Subdivision 1. Definitions. As used in this section:
40.25(1) "establishment" means any public or private agency, person, society, or
40.26corporation having custody of animals that are seized under the authority of the state or
40.27any political subdivision of the state; and
40.28(2) "regular business day" means a day during which the establishment having
40.29custody of an animal is open to the public not less than four consecutive hours between
40.30the hours of 8:00 a.m. and 7:00 p.m.
40.31    Subd. 2. Impoundment; record keeping. All animals seized by public authority
40.32must be held in an establishment for redemption by the owner for at least five regular
40.33business days of the establishment or for a longer time specified by municipal ordinance.
40.34Establishments must maintain the following records of the animals in custody, and
40.35preserve the records for at least six months:
41.1(1) the description of the animal by species, breed, sex, approximate age, and other
41.2distinguishing traits;
41.3(2) the location at which the animal was seized;
41.4(3) the date of seizure;
41.5(4) the name and address of the person from whom any animal three months of age
41.6or over was received; and
41.7(5) the name and address of the person to whom any animal three months of age
41.8or over was transferred.
41.9The records must be maintained in a form permitting easy perusal by the public.
41.10A person may view the records and animals in custody at any time during which the
41.11establishment is open to the public.
41.12    Subd. 3. Release of animals. A person must not release an animal seized and held
41.13under this section for research or product testing, either directly or through an animal
41.14dealer. This subdivision does not apply to the temporary transfer of an animal to a college
41.15of veterinary medicine or veterinary technology school accredited by the American
41.16Veterinary Medicine Association for the purpose of sterilization or needed veterinary care.

41.17    Sec. 74. Minnesota Statutes 2010, section 347.54, subdivision 2, is amended to read:
41.18    Subd. 2. Reclaimed. A dangerous dog seized under subdivision 1 may be reclaimed
41.19by the owner of the dog upon payment of impounding and boarding fees, and presenting
41.20proof to the appropriate animal control authority that the requirements of sections 347.51
41.21and 347.52 will be met. A dog not reclaimed under this subdivision within seven days
41.22may be disposed of as provided under section 35.71, subdivision 3 in a manner permitted
41.23by law, and the owner is liable to the animal control authority for costs incurred in
41.24confining and disposing of the dog.

41.25    Sec. 75. Minnesota Statutes 2010, section 347.54, subdivision 3, is amended to read:
41.26    Subd. 3. Subsequent offenses; seizure. If a person has been convicted of a
41.27misdemeanor for violating a provision of section 347.51, 347.515, or 347.52, and the
41.28person is charged with a subsequent violation relating to the same dog, the dog must be
41.29seized by the animal control authority having jurisdiction. If the owner is convicted of the
41.30crime for which the dog was seized, the court shall order that the dog be destroyed in a
41.31proper and humane manner and the owner pay the cost of confining and destroying the
41.32animal. If the owner is not convicted and the dog is not reclaimed by the owner within
41.33seven days after the owner has been notified that the dog may be reclaimed, the dog may be
41.34disposed of as provided under section 35.71, subdivision 3 in a manner permitted by law.

42.1    Sec. 76. Laws 2008, chapter 296, article 1, section 25, the effective date, as amended
42.2by Laws 2010, chapter 333, article 1, section 33, is amended to read:
42.3EFFECTIVE DATE.This section is effective June 1, 2012 2017.
42.4EFFECTIVE DATE.This section is effective the day following final enactment.

42.5    Sec. 77. Laws 2010, Second Special Session chapter 1, article 1, section 11, is
42.6amended to read:

42.7

Sec. 11. AGRICULTURE

$

4,000,000

42.8To the commissioner of agriculture:
42.9(1) $3,800,000 is for the purposes specified
42.10in Minnesota Statutes, section 12A.04; and
42.11(2) notwithstanding section 2, subdivision 1,
42.12$200,000 is for the purpose of mental health
42.13counseling to assist agricultural producers
42.14and their families located in any rural disaster
42.15area declared by the Federal Emergency
42.16Management Agency or the United States
42.17Department of Agriculture.
42.18This appropriation is from the general fund.
42.19EFFECTIVE DATE.This section is effective retroactively from October 19, 2010,
42.20the effective date of Laws 2010, Second Special Session chapter 1.

42.21    Sec. 78. Laws 2011, chapter 14, section 6, is amended by adding an effective date to
42.22read:
42.23EFFECTIVE DATE.This section is effective retroactively from April 16, 2011.

42.24    Sec. 79. STEELE COUNTY; CIP BONDING AUTHORITY.
42.25(a) The governing body of Steele County may, by resolution, include in its capital
42.26improvement plan under Minnesota Statutes, section 373.40, buildings to be acquired,
42.27constructed, and improved at its fairgrounds for use by its agricultural society.
42.28(b) The buildings authorized by paragraph (a) constitute "capital improvements"
42.29for all purposes of Minnesota Statutes, section 373.40, if the principal amount of bonds
42.30issued to finance the buildings do not exceed $650,000.
43.1EFFECTIVE DATE.This section is effective the day after the governing body
43.2of Steele County and its chief clerical officer timely complete their compliance with
43.3Minnesota Statutes, section 645.021, subdivisions 2 and 3.

43.4    Sec. 80. WADENA COUNTY; CIP BONDING AUTHORITY.
43.5(a) The governing body of Wadena County may, by resolution, include in its capital
43.6improvement plan under Minnesota Statutes, section 373.40, buildings to be acquired,
43.7constructed, and improved at its fairgrounds for use by its agricultural society.
43.8(b) The buildings authorized by paragraph (a) constitute "capital improvements"
43.9for all purposes of Minnesota Statutes, section 373.40, if the principal amount of bonds
43.10issued to finance the buildings do not exceed $1,000,000.
43.11EFFECTIVE DATE.This section is effective the day after the governing body
43.12of Wadena County and its chief clerical officer timely complete their compliance with
43.13Minnesota Statutes, section 645.021, subdivisions 2 and 3.

43.14    Sec. 81. NEXT GENERATION BIOFUEL BLENDS.
43.15The NextGen Energy Board, established in Minnesota Statutes, section 41A.105,
43.16shall include in its February 2013 report to the legislature an analysis of next generation
43.17biofuels that can be blended with gasoline or other energy sources. The report shall
43.18analyze research on next generation biofuel blends and information on federal approvals
43.19needed and the status of the federal approval for next generation biofuel blends, and make
43.20policy recommendations for updating Minnesota's biofuels mandates to reflect current
43.21industry practices. The commissioner of agriculture shall convene an advisory group to
43.22advise and assist the NextGen Energy Board in the analysis and report. Members of the
43.23group may include representatives of the next generation biofuels industry, the ethanol
43.24industry, persons with biofuels engineering or other biofuels expertise, suppliers of
43.25biofuels feedstocks or inputs, and other persons with applicable knowledge or expertise as
43.26designated by the commissioner.

43.27    Sec. 82. BALANCE TRANSFER.
43.28The balance in the agroforestry loan program revolving fund established under
43.29Minnesota Statutes, section 41B.048, is transferred to the revolving loan account
43.30established under Minnesota Statutes, section 41B.06, and the agroforestry loan program
43.31revolving fund is abolished.

43.32    Sec. 83. REPEALER.
44.1(a) Minnesota Statutes 2010, sections 17B.01; 17B.02; 17B.03; 17B.04; 17B.041;
44.217B.0451; 17B.048; 17B.05; 17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14;
44.317B.15, subdivisions 1 and 3; 17B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1
44.4and 2; 17B.28; 17B.29; 25.33, subdivision 18; 27.19, subdivisions 2 and 3; 27.20; 35.243;
44.535.255; 35.71, subdivisions 1, 2, 3, 4, 5, 6, and 7; 35.72, subdivisions 1, 2, 3, 4, and 5;
44.641B.048, subdivision 7; 223.16, subdivision 7; 223.18; 232.21, subdivision 4; 232.24,
44.7subdivision 3; 232.25; 233.01; 233.015; 233.017; 233.02; 233.03; 233.04; 233.05; 233.06;
44.8233.07; 233.08; 233.09; 233.10; 233.11; 233.12; 233.22; 233.23; 233.24; 233.33; 234.01;
44.9234.03; 234.04; 234.05; 234.06; 234.08; 234.09; 234.10; 234.11; 234.12; 234.13; 234.14;
44.10234.15; 234.16; 234.17; 234.18; 234.19; 234.20; 234.21; 234.22; 234.23; 234.24; 234.25;
44.11234.27; 235.01; 235.02; 235.04; 235.05; 235.06; 235.07; 235.08; 235.09; 235.10; 235.13;
44.12235.18; 236.01; 236.02; 236.03; 236.04; 236.05; 236.06; 236.07; 236.08; 236.09; 395.14;
44.13395.15; 395.16; 395.17; 395.18; 395.19; 395.20; 395.21; 395.22; 395.23; and 395.24, are
44.14repealed.
44.15(b) Minnesota Rules, parts 1505.0780; 1505.0810; 1511.0100; 1511.0110;
44.161511.0120; 1511.0130; 1511.0140; 1511.0150; 1511.0160; 1511.0170; 1562.0100,
44.17subparts 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25;
44.181562.0200; 1562.0400; 1562.0700; 1562.0900; 1562.1300; and 1562.1800, are repealed.

44.19ARTICLE 2

44.20FOOD LAW ENFORCEMENT

44.21    Section 1. Minnesota Statutes 2010, section 17.982, subdivision 1, is amended to read:
44.22    Subdivision 1. Criminal penalties. A person who violates a provision of chapter
44.2325, 28A, 29, 31, 31A, or 31B, or 34 for which a penalty has not been prescribed is guilty
44.24of a misdemeanor.

44.25    Sec. 2. Minnesota Statutes 2010, section 17.983, is amended to read:
44.2617.983 ADMINISTRATIVE PENALTIES AND ENFORCEMENT.
44.27    Subdivision 1. Administrative penalties; citation. If a person has violated a
44.28provision of chapter 25, 28A, 29, 31, 31A, 31B, or 32, or 34, the commissioner may issue
44.29a written citation to the person by personal service or by certified mail. The citation must
44.30describe the nature of the violation and the statute or rule alleged to have been violated;
44.31state the time for correction, if applicable; and the amount of any proposed fine. The
44.32citation must advise the person to notify the commissioner in writing within 30 days if the
44.33person wishes to appeal the citation. If the person fails to appeal the citation, the citation
44.34is the final order and not subject to further review.
45.1    Subd. 3. Contested case. If a person appeals a citation or a penalty assessment
45.2within the time limits in subdivision 1, the commissioner shall initiate a contested
45.3proceeding under chapter 14. The report of the administrative law judge is the final
45.4decision of the commissioner of agriculture.

45.5    Sec. 3. Minnesota Statutes 2010, section 17.984, subdivision 1, is amended to read:
45.6    Subdivision 1. Authority. To carry out the commissioner's enforcement duties
45.7under chapter 29, 31, 31A, 32, or 34, the commissioner may, upon presenting appropriate
45.8credentials, during regular working hours and at other reasonable times, inspect premises
45.9subject to the commissioner's enforcement and licensing authority for reasons related to
45.10the commissioner's enforcement and licensing authority; request information from persons
45.11with information relevant to an inspection; and inspect relevant papers and records,
45.12including business records. The commissioner may issue notices in lieu of citations for
45.13minor violations if a notice is in the public interest.

45.14    Sec. 4. Minnesota Statutes 2010, section 28A.03, subdivision 3, is amended to read:
45.15    Subd. 3. Person. "Person" means any individual, firm, corporation, company,
45.16association, cooperative, or partnership and includes any trustee, receiver, assignee, or
45.17other similar representative thereof has the meaning given in section 34A.01, subdivision
45.1810.

45.19    Sec. 5. Minnesota Statutes 2010, section 28A.03, subdivision 5, is amended to read:
45.20    Subd. 5. Food. "Food," includes every article used for, entering into the
45.21consumption of, or used or intended for use in the preparation of food, drink, confectionery,
45.22or condiment for humans, whether simple, mixed or compound. "nonperishable food,"
45.23"frozen food," "perishable food," and "readily perishable food" have the meanings given
45.24in section 34A.01.
45.25(a) "Perishable food" is food which includes, but is not limited to fresh fruits, fresh
45.26vegetables, and other products which need protection from extremes of temperatures in
45.27order to avoid decomposition by microbial growth or otherwise.
45.28(b) "Readily perishable food" is food or a food ingredient consisting in whole or
45.29in part of milk, milk products, eggs, meat, fish, poultry or other food or food ingredient
45.30which is capable of supporting rapid and progressive growth of infectious or toxigenic
45.31microorganisms.
45.32(c) "Frozen food" is food which is processed and preserved by freezing in accordance
45.33with good commercial practices and which is intended to be sold in the frozen state.
46.1(d) For the purposes of this definition, packaged food in hermetically sealed
46.2containers processed by heat to prevent spoilage; packaged pickles; jellies, jams and
46.3condiments in sealed containers; bakery products such as bread, rolls, buns, donuts,
46.4fruit-filled pies and pastries; dehydrated packaged food; and dry or packaged food so low in
46.5moisture content as to preclude development of microorganisms are not "perishable food,"
46.6"readily perishable food," or "frozen food" within the meaning of paragraphs (a), (b), and
46.7(c), when they are stored and handled in accordance with good commercial practices.
46.8(e) "Nonperishable food" is food described in paragraph (d) with a shelf life of
46.9more than 90 days.

46.10    Sec. 6. Minnesota Statutes 2010, section 28A.03, subdivision 6, is amended to read:
46.11    Subd. 6. Sell; sale. "Sell" and "sale" include the keeping, offering, or exposing for
46.12sale, use, transporting, transferring, negotiating, soliciting, or exchange of food, the having
46.13in possession with intent to sell, use, transport, negotiate, solicit, or exchange the same
46.14and the storing, or carrying thereof in aid of traffic therein whether done or permitted in
46.15person or through others have the meanings given in section 34A.01, subdivision 12.

46.16    Sec. 7. Minnesota Statutes 2010, section 28A.21, subdivision 6, is amended to read:
46.17    Subd. 6. Expiration. Notwithstanding section 15.059, subdivision 5, this section
46.18expires June 30, 2012 2017.

46.19    Sec. 8. Minnesota Statutes 2010, section 31.01, subdivision 2, is amended to read:
46.20    Subd. 2. Person. "Person" means any individual, firm, partnership, copartnership,
46.21society, association, company, or corporation and includes any trustee, receiver, assignee
46.22or other similar representative thereof has the meaning given in section 34A.01,
46.23subdivision 10.

46.24    Sec. 9. Minnesota Statutes 2010, section 31.01, subdivision 3, is amended to read:
46.25    Subd. 3. Food. "Food" means articles used for food or drink for humans or other
46.26animals, chewing gum, and articles used for components of any such article has the
46.27meaning given in section 34A.01, subdivision 4.

46.28    Sec. 10. Minnesota Statutes 2010, section 31.01, subdivision 4, is amended to read:
46.29    Subd. 4. Sell and sale. "Sell" and "sale" shall be considered to include the
46.30manufacture, production, processing, packing, exposure, offer, possession, and holding of
46.31any such article for sale; and the sale, dispensing, and giving of any such article, and the
47.1supplying or applying of any such article in the conduct of any food operation have the
47.2meanings given in section 34A.01, subdivision 12.

47.3    Sec. 11. Minnesota Statutes 2010, section 31.01, subdivision 21, is amended to read:
47.4    Subd. 21. Label. "Label" means a display of written, printed, or graphic matter
47.5upon the immediate container of any article, and includes a like display, if required by law
47.6or rule, on the outside container or wrapper, if any there be, of the retail package of such
47.7article has the meaning given in section 34A.01, subdivision 6.

47.8    Sec. 12. Minnesota Statutes 2010, section 31.01, subdivision 25, is amended to read:
47.9    Subd. 25. Labeling. "Labeling" means all labels and other written, printed, or
47.10graphic matter upon an article or any of its containers or wrappers, or accompanying such
47.11article has the meaning given in section 34A.01, subdivision 7.

47.12    Sec. 13. Minnesota Statutes 2010, section 31.01, subdivision 28, is amended to read:
47.13    Subd. 28. Pesticide chemical. "Pesticide chemical" means any substance which,
47.14alone, in chemical combination, or in formulation with one or more other substances is an
47.15"economic poison" within the meaning of chapter 24, or the Federal Insecticide, Fungicide
47.16and Rodenticide Act (United States Code, title 7, sections 135-135k), as amended, and
47.17which is used in the production, storage, or transportation of raw agricultural commodities
47.18has the meaning given in section 18B.01, subdivision 18.

47.19    Sec. 14. Minnesota Statutes 2010, section 31.121, is amended to read:
47.2031.121 FOOD ADULTERATION.
47.21A food shall be deemed to be adulterated: if it is covered by section 34A.02.
47.22(a) If it bears or contains any poisonous or deleterious substance which may render it
47.23injurious to health; but in case the substance is not an added substance such food shall
47.24not be considered adulterated under this clause if the quantity of such substance in such
47.25food does not ordinarily render it injurious to health; or
47.26(b) If it bears or contains any added poisonous or added deleterious substance, other
47.27than one which is a pesticide chemical in or on a raw agricultural commodity; a food
47.28additive; or a color additive, which is unsafe within the meaning of section 31.122; or
47.29(c) If it is a raw agricultural commodity and it bears or contains a pesticide chemical
47.30which is unsafe within the meaning of section 31.122; or
47.31(d) If it is or it bears or contains any food additive which is unsafe within the
47.32meaning of section 31.122; provided that where a pesticide chemical has been used in or
48.1on a raw agricultural commodity in conformity with an exemption granted or tolerance
48.2prescribed under section 31.122, and such raw agricultural commodity has been subjected
48.3to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of
48.4such pesticide chemical remaining in or on such processed food shall, notwithstanding
48.5the provisions of section 31.122 and this clause, not be deemed unsafe if such residue in
48.6or on the raw agricultural commodity has been removed to the extent possible in good
48.7manufacturing practice, and the concentration of such residue in the processed food
48.8when ready to eat is not greater than the tolerance prescribed for the raw agricultural
48.9commodity; or
48.10(e) If it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
48.11decomposed substance, or if it is otherwise unfit for food; or
48.12(f) If it has been produced, prepared, packed, or held under insanitary conditions
48.13whereby it may have become contaminated with filth, or whereby it may have been
48.14rendered diseased, unwholesome, or injurious to health; or
48.15(g) If it is in whole or in part the product of a diseased animal or of an animal which
48.16has died otherwise than by slaughter, or of an animal that has been fed upon the uncooked
48.17offal from a slaughterhouse; or
48.18(h) If its container is composed in whole or in part of any poisonous or deleterious
48.19substance which may render the contents injurious to health; or
48.20(i) If it has been intentionally subjected to radiation, unless the use of the radiation
48.21was in conformity with a rule or exemption in effect pursuant to section 31.122 or section
48.22409 of the federal act; or
48.23(j) If any valuable constituent has been in whole or in part omitted or abstracted
48.24therefrom; or
48.25(k) If any substance has been substituted wholly or in part therefor; or
48.26(l) If damage or inferiority has been concealed in any manner; or
48.27(m) If any substance has been added thereto or mixed or packed therewith so as
48.28to increase its bulk or weight, or reduce its quality or strength or make it appear better
48.29or of greater value than it is; or
48.30(n) If it is confectionery, and (1) has partially or completely imbedded therein any
48.31nonnutritive object; provided, that this clause shall not apply in the case of any nonnutritive
48.32object if in the judgment of the commissioner, as provided by rules, such object is of
48.33practical functional value to the confectionery product and would not render the product
48.34injurious or hazardous to health; or (2) bears or contains any nonnutritive substance;
48.35provided, that this clause shall not apply to (i) a confection containing alcohol as defined
48.36in section 31.76, or (ii) a safe nonnutritive substance which is in or on confectionery by
49.1reason of its use for some practical functional purpose in the manufacture, packaging, or
49.2storing of such confectionery if the use of the substance does not promote deception of the
49.3consumer or otherwise result in adulteration or misbranding in violation of any provision
49.4of the Minnesota Food Law; and provided further, that the commissioner may, for the
49.5purpose of avoiding or resolving uncertainty as to the application of this clause, issue rules
49.6allowing or prohibiting the use of particular nonnutritive substances; or
49.7(o) If it is or bears or contains any color additive which is unsafe within the meaning
49.8of section 31.122; or
49.9(p) If it is oleomargarine or margarine or butter and any of the raw material used
49.10therein consisted in whole or in part of any filthy, putrid, or decomposed substance, or
49.11such oleomargarine or margarine or butter is otherwise unfit for food.

49.12    Sec. 15. Minnesota Statutes 2010, section 31.123, is amended to read:
49.1331.123 FOOD MISBRANDING.
49.14A food shall be deemed to be is misbranded: if it is covered by section 34A.03.
49.15(a) If its labeling is false or misleading in any particular, or if its labeling, whether on
49.16the commodity itself, its container or its package, fails to conform with the requirements
49.17of Laws 1974, chapter 84;
49.18(b) If it is offered for sale under the name of another food;
49.19(c) If it is an imitation of another food for which a definition and standard of identity
49.20have been prescribed by rules as provided by sections 31.10 and 31.102; or if it is an
49.21imitation of another food that is not subject to clause (g), unless in either case its label
49.22bears in type of uniform size and prominence the word "imitation" and immediately
49.23thereafter the name of the food imitated;
49.24(d) If its container is so made, formed, or filled as to be misleading;
49.25(e) If in package form, unless it bears a label containing (1) the name and place of
49.26business of the manufacturer, packer, or distributor, and (2) an accurate statement of
49.27the net quantity of the contents in terms of weight, measure, or numerical count, which
49.28statement shall be separately and accurately stated in a uniform location upon the principal
49.29display panel of the label; provided, that under this subclause reasonable variations shall
49.30be permitted, and exemptions as to small packages shall be established by rules prescribed
49.31by the commissioner;
49.32(f) If any word, statement, or other information required by or under authority of
49.33the Minnesota Food Law to appear on the label or labeling is not prominently placed
49.34thereon with such conspicuousness (as compared with other words, statements, designs, or
50.1devices, in the labeling) and in such terms as to render it likely to be read and understood
50.2by the ordinary individual under customary conditions of purchase and use;
50.3(g) If it purports to be or is represented as a food for which a definition and standard
50.4of identity have been prescribed by rules as provided by sections 31.10 and 31.102,
50.5unless (1) it conforms to such definition and standard, and (2) its label bears the name
50.6of the food specified in the definition and standard, and, insofar as may be required by
50.7such rules, the common names of optional ingredients (other than spices, flavoring, and
50.8coloring) present in such food;
50.9(h) If it purports to be or is represented as (1) a food for which a standard of quality
50.10has been prescribed by rules as provided by sections 31.10 and 31.102, and its quality falls
50.11below such standard unless its label bears, in such manner and form as such rules specify,
50.12a statement that it falls below such standard, or (2) a food for which a standard or standards
50.13of fill of container have been prescribed by rule as provided by sections 31.10 and 31.102,
50.14and it falls below the standard of fill of container applicable thereto unless its label bears, in
50.15such manner and form as such rules specify, a statement that it falls below such standard;
50.16(i) If it is not subject to the provisions of clause (g), unless it bears labeling clearly
50.17giving (1) the common or usual name of the food, if any there be, and (2) in case it
50.18is fabricated from two or more ingredients, the common or usual name of each such
50.19ingredient; except that spices, flavorings, and colorings, other than those sold as such,
50.20may be designated as spices, flavorings, and colorings, without naming each; provided,
50.21that to the extent that compliance with the requirements of this subclause is impractical
50.22or results in deception or unfair competition, exemptions shall be established by rules
50.23promulgated by the commissioner;
50.24(j) If it purports to be or is represented for special dietary uses, unless its label
50.25bears such information concerning its vitamin, mineral, and other dietary properties as
50.26the commissioner determines to be, and by rules prescribes as, necessary in order to fully
50.27inform purchasers as to its value for such uses;
50.28(k) If it bears or contains any artificial flavoring, artificial coloring, or chemical
50.29preservative, unless it bears labeling stating that fact; provided, that to the extent that
50.30compliance with the requirements of this clause is impracticable, exemptions shall be
50.31established by rules promulgated by the commissioner. The provisions of this clause and
50.32clauses (g) and (i) with respect to artificial coloring do not apply to butter, cheese or ice
50.33cream. The provisions with respect to chemical preservatives do not apply to a pesticide
50.34chemical when used in or on a raw agricultural commodity which is the product of the soil;
50.35(l) If it is a raw agricultural commodity which is the product of the soil, bearing or
50.36containing a pesticide chemical applied after harvest, unless the shipping container of such
51.1commodity bears labeling which declares the presence of such chemical in or on such
51.2commodity and the common or usual name and the function of such chemical; provided,
51.3however, that no such declaration shall be required while such commodity, having been
51.4removed from the shipping container, is being held or displayed for sale at retail out of
51.5such container in accordance with the custom of the trade;
51.6(m) If it is a product intended as an ingredient of another food and when used
51.7according to the directions of the purveyor will result in the final food product being
51.8adulterated or misbranded;
51.9(n) If it is a color additive unless its packaging and labeling are in conformity with
51.10such packaging and labeling requirements applicable to such color additive prescribed
51.11under the provisions of the federal act.

51.12    Sec. 16. Minnesota Statutes 2010, section 31A.02, subdivision 13, is amended to read:
51.13    Subd. 13. Adulterated. "Adulterated" means a carcass, part of a carcass, meat,
51.14poultry, poultry food product, or meat food product under one or more of the following
51.15circumstances: an item is covered by section 34A.02.
51.16(a) if it bears or contains a poisonous or harmful substance which may render
51.17it injurious to health; but if the substance is not an added substance, the article is not
51.18adulterated if the quantity of the substance in or on the article does not ordinarily make it
51.19injurious to health;
51.20(b) if it bears or contains, by administration of a substance to the live animal or
51.21otherwise, an added poisonous or harmful substance, other than (1) a pesticide chemical in
51.22or on a raw agricultural commodity; (2) a food additive; or (3) a color additive, which
51.23may, in the judgment of the commissioner, make the article unfit for human food;
51.24(c) if it is, in whole or in part, a raw agricultural commodity that bears or contains a
51.25pesticide chemical which is unsafe within the meaning of section 408 of the Federal
51.26Food, Drug, and Cosmetic Act;
51.27(d) if it bears or contains a food additive which is unsafe within the meaning of
51.28section 409 of the Federal Food, Drug, and Cosmetic Act;
51.29(e) if it bears or contains a color additive which is unsafe within the meaning of
51.30section 706 of the Federal Food, Drug, and Cosmetic Act;
51.31(f) if it contains a filthy, putrid, or decomposed substance or is for any other reason
51.32unfit for human food;
51.33(g) if it has been prepared, packed, or held under unsanitary conditions so that it may
51.34be contaminated with filth or harmful to health;
52.1(h) if it is wholly or partly the product of an animal which has died otherwise than
52.2by slaughter;
52.3(i) if its container is wholly or partly composed of a poisonous or harmful substance
52.4which may make the contents harmful to health;
52.5(j) if it has been intentionally subjected to radiation, unless the use of the radiation
52.6conformed with a regulation or exemption in effect under section 409 of the Federal
52.7Food, Drug, and Cosmetic Act;
52.8(k) if a valuable constituent has been wholly or partly omitted or removed from it;
52.9if a substance has been wholly or partly substituted for it; if damage or inferiority has
52.10been concealed; or if a substance has been added to it or mixed or packed with it so as
52.11to increase its bulk or weight, reduce its quality or strength, or make it appear better
52.12or of greater value than it is; or
52.13(l) if it is margarine containing animal fat and any of the raw material used in it
52.14wholly or partly consisted of a filthy, putrid, or decomposed substance.

52.15    Sec. 17. Minnesota Statutes 2010, section 31A.02, subdivision 14, is amended to read:
52.16    Subd. 14. Misbranded. "Misbranded" means a carcass, part of a carcass, meat,
52.17poultry, poultry food product, or meat food product under one or more of the following
52.18circumstances: an item is covered by section 34A.03.
52.19(a) if its labeling is false or misleading;
52.20(b) if it is offered for sale under the name of another food;
52.21(c) if it is an imitation of another food, unless its label bears, in type of uniform
52.22size and prominence, the word "imitation" followed immediately by the name of the
52.23food imitated;
52.24(d) if its container is made, formed, or filled so as to be misleading;
52.25(e) if its package or other container does not have a label showing (1) the name and
52.26place of business of the manufacturer, packer, or distributor; and (2) an accurate statement
52.27of the quantity of the contents in terms of weight, measure, or numerical count subject
52.28to reasonable variations permitted and exemptions for small packages established in
52.29rules of the commissioner;
52.30(f) if a word, statement, or other information required by or under authority of this
52.31chapter to appear on the label or other labeling is not prominently and conspicuously
52.32placed on the label or labeling in terms that make it likely to be read and understood by the
52.33ordinary individual under customary conditions of purchase and use;
52.34(g) if it is represented as a food for which a definition and standard of identity or
52.35composition has been prescribed by rules of the commissioner under section 31A.07,
53.1unless (1) it conforms to the definition and standard, and (2) its label bears the name of the
53.2food specified in the definition and standard and, if required by the rules, the common
53.3names of optional ingredients, other than spices, flavoring, and coloring, present in the
53.4food;
53.5(h) if it is represented as a food for which a standard of fill of container has been
53.6prescribed by rules of the commissioner under section 31A.07, and it falls below the
53.7applicable standard of fill of container, unless its label bears, in the manner and form the
53.8rules specify, a statement that it falls below the standard;
53.9(i) if it is not subject to paragraph (g), unless its label bears (1) the usual name of
53.10the food, if there is one, and (2) in case it is fabricated from two or more ingredients,
53.11the common or usual name of each ingredient; except that spices, flavorings, and
53.12colorings may, when authorized by the commissioner, be designated as spices, flavorings,
53.13and colorings without naming each. To the extent that compliance with clause (2) is
53.14impracticable, or results in deception or unfair competition, the commissioner shall
53.15establish exemptions by rule;
53.16(j) if it purports to be or is represented for special dietary uses, unless its label bears
53.17the information concerning its vitamin, mineral, and other dietary properties that the
53.18commissioner, after consultation with the Secretary of Agriculture of the United States,
53.19determines by rule to be necessary to inform purchasers of its value for special dietary uses;
53.20(k) if it bears or contains any artificial flavoring, artificial coloring, or chemical
53.21preservative, unless it bears labeling stating that fact;
53.22(l) if it fails to bear, directly or on its container, as the commissioner by rule
53.23prescribes, the inspection legend and other information the commissioner may require by
53.24rule to assure that it will not have false or misleading labeling and that the public will be
53.25told how to keep the article wholesome.

53.26    Sec. 18. Minnesota Statutes 2010, section 31A.02, subdivision 15, is amended to read:
53.27    Subd. 15. Label. "Label" means a display of written, printed, or graphic matter on
53.28an article's immediate container, not including package liners has the meaning given
53.29in section 34A.01, subdivision 6.

53.30    Sec. 19. Minnesota Statutes 2010, section 31A.02, subdivision 16, is amended to read:
53.31    Subd. 16. Labeling. "Labeling" means labels and other written, printed, or graphic
53.32matter (1) on an article or its containers or wrappers, or (2) accompanying an article has
53.33the meaning given in section 34A.01, subdivision 7.

54.1    Sec. 20. Minnesota Statutes 2010, section 31A.23, is amended to read:
54.231A.23 DETENTION OF ANIMALS OR PRODUCTS.
54.3This section applies to a carcass, part of a carcass, meat, or meat food product of an
54.4animal, a product exempted from the definition of a meat food product, or a dead, dying,
54.5disabled, or diseased animal. If an authorized representative of the commissioner finds
54.6such an article or animal on premises where it is held for purposes of, during, or after
54.7distribution in intrastate commerce, and there is reason to believe that it is adulterated or
54.8misbranded and is usable as human food, or that it has not been inspected, in violation of
54.9sections 31A.01 to 31A.16, the Federal Meat Inspection Act, or the Federal Food, Drug,
54.10and Cosmetic Act, or that the article or animal has been or is intended to be distributed in
54.11violation of a provision of those laws, it may be detained by the representative for up to
54.1220 days pending action under section 31A.24 34A.11, subdivision 2, or notification of
54.13federal authorities having jurisdiction over the article or animal. It must not be moved
54.14by a person, firm, or corporation from the place at which it is located when detained,
54.15until released by the representative. The representative may require all official marks to
54.16be removed from the article or animal before it is released unless the commissioner is
54.17satisfied that the article or animal is eligible to retain the official marks.

54.18    Sec. 21. Minnesota Statutes 2010, section 32.01, subdivision 11, is amended to read:
54.19    Subd. 11. Adulterated. "Adulterated" has the meaning given it in section 31.01,
54.20subdivision 19 , and acts amendatory thereof means an item is covered by section 34A.02.

54.21    Sec. 22. Minnesota Statutes 2010, section 32.01, subdivision 12, is amended to read:
54.22    Subd. 12. Misbranded. "Misbranded" or "misbranding" has the meaning given
54.23in section 31.01, subdivision 5, and acts amendatory thereof means an item is covered
54.24by section 34A.03.

54.25    Sec. 23. [34A.01] DEFINITIONS.
54.26    Subdivision 1. Applicability. The definitions in this section and chapters 28, 28A,
54.2729, 30, 31, 31A, 32, and 34 apply to this chapter. The definitions in this section apply
54.28to chapter 32.
54.29    Subd. 2. Commissioner. "Commissioner" means the commissioner of agriculture.
54.30    Subd. 3. Federal act. "Federal act" means the federal Food, Drug, and Cosmetic
54.31Act, as amended, United States Code, title 21, sections 301 et seq.
54.32    Subd. 4. Food. "Food" means every ingredient used for, entering into the
54.33consumption of, or used or intended for use in the preparation of food, drink, confectionery,
55.1or condiment for humans or other animals, whether simple, mixed, or compound; and
55.2articles used as components of these ingredients.
55.3    Subd. 5. Frozen food. "Frozen food" is food that is processed and preserved by
55.4freezing and which is intended to be sold in the frozen state.
55.5    Subd. 6. Label. "Label" means a display of written, printed, or graphic matter
55.6upon or affixed to the container of any food, and includes a like display, if required by
55.7law or rule, on the outside container or wrapper, if there is one, of the retail package
55.8of the food, not including package liners.
55.9    Subd. 7. Labeling. "Labeling" means labels and other written, printed, or graphic
55.10matter:
55.11(1) on food or its containers or wrappers;
55.12(2) accompanying or supporting food; or
55.13(3) a placard in, on, or adjacent to the food.
55.14    Subd. 8. Nonperishable food. "Nonperishable food" is food with a shelf life of
55.15more than 90 days and that is not perishable food, readily perishable food, or frozen food.
55.16    Subd. 9. Perishable food. "Perishable food" means food including, but not limited
55.17to, fresh fruits, fresh vegetables, and other products that need protection from extremes of
55.18temperatures in order to avoid decomposition by microbial growth or otherwise.
55.19    Subd. 10. Person. "Person" means any individual, firm, partnership, cooperative,
55.20society, joint stock association, association, company, or corporation and includes any
55.21officer, employee, agent, trustee, receiver, assignee, or other similar business entity or
55.22representative of one of those entities.
55.23    Subd. 11. Readily perishable food. "Readily perishable food" is food or a food
55.24ingredient consisting in whole or in part of milk, milk products, eggs, meat, fish, poultry,
55.25or other food or food ingredient that is capable of supporting growth of infectious or
55.26toxigenic microorganisms. Readily perishable food requires time and temperature control
55.27to limit pathogenic microorganism growth or toxin formation.
55.28    Subd. 12. Sell; sale. "Sell" and "sale" mean keeping, offering, or exposing for sale,
55.29use, transporting, transferring, negotiating, soliciting, or exchanging food; having in
55.30possession with intent to sell, use, transport, negotiate, solicit, or exchange food; storing,
55.31manufacturing, producing, processing, packing, and holding of food for sale; dispensing or
55.32giving food; or supplying or applying food in the conduct of any food operation or carrying
55.33food in aid of traffic in food whether done or permitted in person or through others.

55.34    Sec. 24. [34A.012] EXCLUSIONS.
55.35The following items are not perishable food, readily perishable food, or frozen food:
56.1(1) packaged pickles;
56.2(2) jellies, jams, and condiments in sealed containers;
56.3(3) bakery products such as bread, rolls, buns, donuts, fruit-filled pies, and pastries;
56.4(4) dehydrated packaged food;
56.5(5) dry or packaged food with a water activity that precludes development of
56.6microorganisms; and
56.7(6) food in unopened hermetically sealed containers that is commercially processed
56.8to achieve and maintain commercial sterility under conditions of nonrefrigerated storage
56.9and distribution.

56.10    Sec. 25. [34A.02] ADULTERATION.
56.11Food is adulterated if:
56.12(1) it bears or contains any poisonous or deleterious substance which may render
56.13it injurious to health; but if the substance is not an added substance, the item is not
56.14adulterated under this clause if the quantity of the substance in the item does not ordinarily
56.15render it injurious to health;
56.16(2) it bears or contains any added poisonous, deleterious, or nonnutritive substance,
56.17other than one which is a pesticide in or on a raw agricultural commodity; a food additive;
56.18or a color additive, that is unsafe within the meaning of section 31.122 or section 406
56.19of the federal act;
56.20(3) it bears or contains, by administration of a substance to the live animal or
56.21otherwise, an added poisonous or harmful substance, other than a pesticide in or on a raw
56.22agricultural commodity, a food additive, or a color additive, that may, in the judgment of
56.23the commissioner, make the article unfit for human food;
56.24(4) it is unsafe or bears or contains any food additive that is unsafe within the
56.25meaning of section 31.122 or section 409 of the federal act;
56.26(5) it is or bears or contains any color additive that is unsafe within the meaning of
56.27section 31.122 or section 706 of the federal act;
56.28(6) it is a raw agricultural commodity and it bears or contains a pesticide that is
56.29unsafe within the meaning of section 31.122 or section 408 of the federal act;
56.30(7) it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
56.31decomposed substance, or if it is otherwise unfit for food;
56.32(8) it has been produced, prepared, packed, or held under unsanitary conditions
56.33whereby it may have become contaminated with filth, or whereby it may have been
56.34rendered diseased, unwholesome, or injurious to health;
57.1(9) it is in whole or in part the product of a diseased animal or of an animal which
57.2has died otherwise than by slaughter that is unsafe within the meaning of section 402(a)(1)
57.3or (2) of the federal act, or of an animal that has been fed upon the uncooked offal from a
57.4slaughterhouse;
57.5(10) its container is wholly or partly composed of any poisonous or deleterious
57.6substance that may render the contents injurious to health;
57.7(11) it has been intentionally subjected to radiation, unless the use of the radiation
57.8was in conformity with a rule, regulation, or exemption in effect pursuant to section
57.931.122 or section 409 of the federal act;
57.10(12) any valuable constituent has been in whole or in part omitted or abstracted from
57.11the food; if any substance has been substituted wholly or in part for the food; or if damage
57.12or inferiority has been concealed in any manner;
57.13(13) any substance has been added to it or mixed or packed with it so as to increase
57.14its bulk or weight, reduce its quality or strength, or make it appear better or of greater
57.15value than it is;
57.16(14) its composition or quality falls below or differs from that which it is purported
57.17or is represented to possess by its labeling; or
57.18(15) it is confectionery and:
57.19(i) has partially or completely imbedded in the food any nonnutritive object,
57.20provided that this clause does not apply in the case of any nonnutritive object if in the
57.21judgment of the commissioner, as provided by rules, the object is of practical functional
57.22value to the confectionery product and would not render the product injurious or hazardous
57.23to human or animal health; or
57.24(ii) bears or contains any nonnutritive substance; provided that this item does not
57.25apply to a confection containing alcohol as defined in section 31.76, or a safe nonnutritive
57.26substance which is in or on confectionery by reason of its use for some practical functional
57.27purpose in the manufacture, packaging, or storing of the confectionery if the use of the
57.28substance does not promote deception of the consumer or otherwise result in adulteration
57.29or misbranding in violation of this chapter, and provided further that the commissioner
57.30may, for the purpose of avoiding or resolving uncertainty as to the application of this
57.31clause, issue rules allowing or prohibiting the use of particular nonnutritive substances.

57.32    Sec. 26. [34A.03] MISBRANDING.
57.33(a) Food is misbranded if:
58.1(1) its labeling is false or misleading in any particular, or its labeling, whether on
58.2the item itself, its container, or its package, fails to conform with the requirements of
58.3this chapter;
58.4(2) it is offered for sale or distributed under the name of another food;
58.5(3) it is an imitation of another food for which a definition and standard of identity
58.6have been prescribed by rules as provided by sections 31.10 and 31.102; or if it is an
58.7imitation of another food that is not subject to clause (5), unless in either case its label
58.8bears in type of uniform size and prominence the word "imitation" and immediately
58.9thereafter the name of the food imitated;
58.10(4) its container is so made, formed, or filled as to be misleading;
58.11(5) it purports to be or is represented as a food for which a definition and standard
58.12of identity have been prescribed by rules as provided by sections 31.10, 31.102, and
58.1331A.07, unless it conforms to that definition and standard, and its label bears the name
58.14of the food specified in the definition and standard, and insofar as may be required by
58.15the rules, the common names of optional ingredients, other than spices, flavoring, and
58.16coloring, present in the food;
58.17(6) it purports to be or is represented as:
58.18(i) a food for which a standard of quality has been prescribed by rules as provided by
58.19sections 31.10 and 31.102, and its quality falls below that standard unless its label bears in
58.20a manner and form the rules specify, a statement that it falls below the standard; or
58.21(ii) a food for which a standard or standards of fill of container have been prescribed
58.22by rule as provided by sections 31.10, 31.102, and 31A.07, and it falls below the standard
58.23of fill of container applicable thereto unless its label bears, in a manner and form the rules
58.24specify, a statement that it falls below the standard;
58.25(7) it is not subject to clause (5), unless it bears labeling clearly giving the common
58.26or usual name of the food, if there is one, and in case it is fabricated from two or more
58.27ingredients, the common or usual name of each ingredient, except that spices, flavorings,
58.28and colorings, other than those sold as such, may be designated as spices, flavorings, and
58.29colorings, without naming each, provided that to the extent that compliance with the
58.30requirements of this clause is impractical or results in deception or unfair competition,
58.31exemptions must be established by rules promulgated by the commissioner;
58.32(8) it purports to be or is represented for special dietary uses, unless its label
58.33bears information concerning its vitamin, mineral, and other dietary properties as the
58.34commissioner determines to be, and by rules prescribed as, necessary in order to fully
58.35inform purchasers as to its value for those uses;
59.1(9) it bears or contains any artificial flavoring, artificial coloring, or chemical
59.2preservative, unless it bears labeling stating that fact; provided that, to the extent that
59.3compliance with the requirements of this clause is impracticable, exemptions must be
59.4established by rules promulgated by the commissioner. The provisions of this clause and
59.5clauses (5) and (7) with respect to artificial coloring do not apply to butter, cheese, or ice
59.6cream. The provisions with respect to chemical preservatives do not apply to a pesticide
59.7when used in or on a raw agricultural commodity which is the product of the soil;
59.8(10) it is a product intended as an ingredient of another food and when used
59.9according to the directions of the purveyor will result in the final food product being
59.10adulterated or misbranded;
59.11(11) it is a color additive unless its packaging and labeling are in conformity with
59.12such packaging and labeling requirements applicable to the color additive prescribed
59.13under the provisions of the federal act;
59.14(12) it is food subject to section 31.101, subdivision 10, or chapter 31A, that fails to
59.15bear, directly or on its container, as the commissioner by rule prescribes, the inspection
59.16legend and other information the commissioner may require by rule to ensure that it
59.17will not have false or misleading labeling, and that the public will be told how to keep
59.18the article wholesome; or
59.19(13) its labeling would deceive or mislead the purchaser with respect to its
59.20composition or suitability.
59.21(b) Food is also misbranded if it is a raw agricultural commodity which is the
59.22product of the soil, bearing or containing a pesticide applied after harvest, unless the
59.23shipping container of that commodity bears labeling which declares the presence of the
59.24chemical in or on the commodity and the common or usual name and the function of the
59.25chemical. No such declaration is required while the commodity, having been removed
59.26from the shipping container, is being held or displayed for sale at retail out of the container
59.27in accordance with the custom of the trade.

59.28    Sec. 27. [34A.04] ENFORCEMENT.
59.29    Subdivision 1. Enforcement required. (a) The commissioner shall enforce this
59.30chapter and chapters 28, 28A, 29, 30, 31, 31A, and 34. To carry out the enforcement duties
59.31under these chapters, the commissioner may, upon presenting appropriate credentials,
59.32during regular working hours and at other reasonable times, inspect premises subject
59.33to the commissioner's enforcement and licensing authority; require information from
59.34persons with information relevant to an inspection; and inspect and copy relevant papers
59.35and records, including business records.
60.1(b) The commissioner may administer oaths, take and cause to be taken depositions
60.2of witnesses, and issue subpoenas, and may petition the district court in the county in which
60.3the premises is located to compel compliance with subpoenas or to permit an inspection.
60.4(c) Violations of chapters 28, 28A, 29, 30, 31, 31A, and 34, or rules adopted under
60.5chapters 28, 28A, 29, 30, 31, 31A, and 34 are a violation of this chapter.
60.6(d) Upon the request of the commissioner, county attorneys, sheriffs, and other
60.7officers having authority in the enforcement of the general criminal laws shall take action
60.8to the extent of their authority necessary or proper for the enforcement of this chapter or
60.9standards, stipulations, and agreements of the commissioner.
60.10    Subd. 2. Commissioner's discretion. If minor violations of this chapter occur or
60.11the commissioner believes the public interest will be best served by a suitable notice of
60.12warning in writing, this chapter does not require the commissioner to take any additional
60.13action.
60.14    Subd. 3. Civil actions. Civil judicial enforcement actions may be brought by the
60.15attorney general in the name of the state on behalf of the commissioner. A county attorney
60.16may bring a civil judicial enforcement action upon the request of the commissioner and
60.17agreement by the attorney general.
60.18    Subd. 4. Injunction. The commissioner may apply to a court with jurisdiction for a
60.19temporary or permanent injunction to prevent, restrain, or enjoin violations of provisions
60.20of this chapter.
60.21    Subd. 5. Criminal actions. Each county attorney or city attorney to whom the
60.22commissioner reports any violation of this chapter shall consider instituting appropriate
60.23proceedings in the proper courts and prosecuting them in the manner required by law. If
60.24the county or city attorney refuses to prosecute, the attorney general, on request of the
60.25commissioner, may prosecute.

60.26    Sec. 28. [34A.05] FALSE STATEMENT OR RECORD.
60.27A person must not knowingly make or offer a false statement, record, or other
60.28information as part of:
60.29(1) an application for registration, listing, license, certification, or permit subject
60.30to this chapter;
60.31(2) records or reports required subject to this chapter; or
60.32(3) an investigation of a violation of this chapter.

60.33    Sec. 29. [34A.06] ADMINISTRATIVE ACTIONS.
61.1    Subdivision 1. Administrative enforcement. (a) The commissioner may enforce
61.2this chapter by written warning, administrative meeting, cease and desist, forced sale,
61.3detention, embargo, condemnation, citation, corrective action order, seizure, agreement,
61.4withdrawal from distribution, or administrative penalty if the commissioner determines
61.5that the remedy is in the public interest.
61.6(b) For facilities required to submit a plan review under rules of the commissioner of
61.7agriculture, the commissioner may withdraw by written order the approval of a facility or
61.8equipment if:
61.9(1) hazards to human life exist; or
61.10(2) there is satisfactory evidence that the person to whom the approval was issued
61.11has used fraudulent or deceptive practices to evade or attempt to evade provisions of
61.12this chapter.
61.13(c) Any action under this subdivision may be appealed pursuant to section 34A.08.
61.14    Subd. 2. License revocation, suspension, and refusal. (a) The commissioner
61.15may revoke, suspend, limit, modify, or refuse to grant or renew a registration, listing,
61.16permit, license, or certification if a person violates or has violated this chapter within
61.17the last three years.
61.18(b) The commissioner may revoke, suspend, limit, modify, or refuse to grant or
61.19renew a registration, listing, permit, license, or certification to a person from another state
61.20if that person has had a registration, permit, license, or certification denied, revoked,
61.21or suspended by another state for an offense reasonably related to the requirements,
61.22qualifications, or duties of a registration, permit, license, or certification issued under
61.23this chapter.
61.24(c) The commissioner may revoke, suspend, limit, modify, or refuse to grant or
61.25renew a registration, listing, permit, license, or certification to a person after receiving
61.26satisfactory evidence that the registrant, permittee, licensee, or certificate holder has used
61.27fraudulent and deceptive practices in the evasion or attempted evasion of this chapter.
61.28(d) A registration, listing, permit, license, or certification may not be revoked or
61.29suspended until the registrant, permittee, licensee, or certificate holder has been given
61.30opportunity for a hearing by the commissioner. After receiving notice of revocation or
61.31suspension, a registrant, permittee, licensee, registrant, or certificate holder has ten days to
61.32request a hearing, or another time period mutually agreed to by both parties. If no request is
61.33made within ten days or other agreed-upon time, the registration, listing, permit, license, or
61.34certification is revoked or suspended. In the case of a refusal to grant a registration, listing,
61.35permit, license, or certification, the registrant, permittee, licensee, registrant, or certificate
62.1holder has ten days from notice of refusal to request a hearing. Upon receiving a request
62.2for hearing, the department shall proceed pursuant to section 34A.08, subdivision 2.

62.3    Sec. 30. [34A.07] ADMINISTRATIVE PENALTIES.
62.4    Subdivision 1. Assessment. (a) In determining the amount of the administrative
62.5penalty, the commissioner shall consider the economic gain received by the person
62.6allowing or committing the violation, the gravity of the violation in terms of actual or
62.7potential damage to human or animal health and the environment, the willfulness of the
62.8violation, number of violations, history of past violations, and other factors justice may
62.9require, if the additional factors are specifically identified in the inspection report. For a
62.10violation after an initial violation, the commissioner shall also consider the similarity of
62.11the most recent previous violation and the violation to be penalized, the time elapsed since
62.12the last violation, the number of previous violations, and the response of the person to the
62.13most recent previous violation identified.
62.14(b) The commissioner may issue an administrative citation assessing an
62.15administrative penalty of up to $1,500 for each violation of this chapter. Each day a
62.16violation continues is a separate violation. The citation must describe the nature of the
62.17violation, the statute or rule alleged to have been violated, the time for correction, if
62.18applicable, and the amount of any proposed fine. The citation must advise the person to
62.19notify the commissioner in writing within 20 days, or another time period mutually agreed
62.20to by the commissioner and the person subject to the citation, if the person wishes to
62.21appeal the citation, and that if the person fails to appeal the citation, the citation is the
62.22final order and not subject to further review.
62.23(c) An administrative penalty may be assessed if the person subject to a written order
62.24does not comply with the order in the time provided in the order.
62.25    Subd. 2. Collection of penalty. (a) If a person subject to an administrative penalty
62.26fails to pay the penalty, which must be part of a final citation by the commissioner, by 30
62.27days after the final order is issued, the commissioner may commence a civil action for
62.28double the assessed penalty plus attorney fees and costs.
62.29(b) An administrative penalty may be recovered in a civil action in the name of the
62.30state brought in the district court of the county where the violation is alleged to have
62.31occurred or the district court where the commissioner has an office.

62.32    Sec. 31. [34A.08] APPEAL OF ADMINISTRATIVE ACTION OR PENALTY.
62.33    Subdivision 1. Notice of appeal. (a) After service of a citation under section 34A.07
62.34or order under section 34A.06, subdivision 1, a person has 20 days from receipt of the
63.1citation or order, or another time period mutually agreed to by the commissioner and the
63.2person subject to the citation or order, to notify the commissioner in writing that the
63.3person intends to contest the citation or order through a hearing. The hearing request
63.4must specifically identify the order or citation being contested and state the grounds for
63.5contesting it.
63.6(b) If the person fails to notify the commissioner that the person intends to contest
63.7the citation or order, the citation or order is final and not subject to further judicial or
63.8administrative review.
63.9    Subd. 2. Administrative review. If a person notifies the commissioner that
63.10the person intends to contest a citation or order issued under this chapter, the Office
63.11of Administrative Hearings shall conduct a hearing in accordance with the applicable
63.12provisions of chapter 14 for hearings in contested cases.

63.13    Sec. 32. [34A.09] CIVIL PENALTIES.
63.14    Subdivision 1. General penalty. A person who violates this chapter or an order,
63.15standard, stipulation, agreement, citation, or schedule of compliance of the commissioner
63.16or impedes, hinders, or otherwise prevents or attempts to prevent performance of a duty
63.17by the commissioner in connection with this chapter is subject to a civil penalty of up to
63.18$7,500 per day of violation as determined by the court.
63.19    Subd. 2. Actions to compel performance. In an action to compel performance of
63.20an order of the commissioner to enforce this chapter, the court must require a defendant
63.21adjudged responsible to perform the acts within the person's power that are reasonably
63.22necessary to accomplish the purposes of the order.
63.23    Subd. 3. Recovery of penalties by civil action. The civil penalties and payments
63.24provided for in this section may be recovered by a civil action brought by the county
63.25attorney or the attorney general in the name of the state.

63.26    Sec. 33. [34A.10] CRIMINAL PENALTIES.
63.27    Subdivision 1. General violation. Except as provided in subdivisions 2 and 3, a
63.28person is guilty of a misdemeanor if the person violates this chapter or an order, standard,
63.29citation, stipulation, agreement, or schedule of compliance of the commissioner, or
63.30impedes, hinders, or otherwise prevents, or attempts to prevent the commissioner or a
63.31duly authorized agent in performance of a duty in connection with this chapter. Unless
63.32otherwise specified in this chapter, each separate violation is a separate offense, except
63.33that in the case of a violation through continuing failure or neglect to obey this chapter,
63.34each day the failure or neglect continues is a separate offense.
64.1    Subd. 2. Violation endangering humans or animals. A person is guilty of a
64.2gross misdemeanor if the person violates this chapter or an order, standard, stipulation,
64.3agreement, or schedule of compliance of the commissioner and the violation endangers
64.4humans or animals.
64.5    Subd. 3. Violation with knowledge. A person is guilty of a gross misdemeanor if
64.6the person knowingly violates this chapter or an order, standard, stipulation, agreement, or
64.7schedule of compliance of the commissioner.

64.8    Sec. 34. [34A.11] EMBARGO, SEIZURE, AND CONDEMNATION.
64.9    Subdivision 1. Tag, notice, or withdrawal from distribution. If the commissioner
64.10finds probable cause to believe that any food, animal, or consumer commodity is being
64.11distributed in violation of this chapter or rules under this chapter, or is adulterated or so
64.12misbranded as to be dangerous or fraudulent, the commissioner shall affix to the food,
64.13animal, or consumer commodity a tag, withdrawal from distribution order, or other
64.14appropriate marking giving notice that the food, animal, or consumer commodity is, or is
64.15suspected of being, adulterated, misbranded, or distributed in violation of this chapter,
64.16and has been detained or embargoed, and warning all persons not to remove or dispose
64.17of the food, animal, or consumer commodity by sale or otherwise until permission for
64.18removal or disposal is given by the commissioner or the court. It is unlawful for a person
64.19to remove or dispose of a detained or embargoed food, animal, or consumer commodity by
64.20sale or otherwise without the commissioner's or a court's permission and each transaction
64.21is a separate violation of this subdivision.
64.22    Subd. 2. Seizure. A carcass; part of a carcass; meat or meat food product of an
64.23animal; or dead, dying, disabled, or diseased animal that is being transported in intrastate
64.24commerce, or is held for sale in this state after transportation in intrastate commerce, may
64.25be proceeded against, seized, and condemned if:
64.26(1) it is or has been prepared, sold, transported, or otherwise distributed, offered, or
64.27received for distribution in violation of this chapter;
64.28(2) it is usable as human food and is adulterated or misbranded; or
64.29(3) it is in any other way in violation of this chapter.
64.30The commissioner may act against the article or animal at any time on a complaint
64.31in the district court of the judicial district where the article or animal is found.
64.32    Subd. 3. Action for condemnation. If food or an article or animal detained or
64.33embargoed under subdivision 1 has been found by the commissioner to be adulterated
64.34or misbranded or in violation of this chapter, the commissioner shall petition the district
64.35court in the county in which the food or animal is detained or embargoed for an order and
65.1decree for the condemnation of the food or animal. The commissioner shall release the
65.2food or animal when this chapter and rules adopted under this chapter have been complied
65.3with or the food or animal is found to be not adulterated or misbranded.
65.4    Subd. 4. Remedies. If the court finds that a detained or embargoed food or animal
65.5is adulterated, misbranded, or in violation of this chapter or rules adopted under this
65.6chapter, the following remedies are available:
65.7(1) after entering a decree, the food or animal may be destroyed at the expense of
65.8the claimant under the supervision of the commissioner, and all court costs, fees, storage,
65.9and other proper expenses must be assessed against the claimant of the food or animal or
65.10the claimant's agent; and
65.11(2) if adulteration or misbranding can be corrected by proper labeling or processing
65.12of the food or animal, the court, after entry of the decree and after costs, fees, and expenses
65.13have been paid and a good and sufficient bond, conditioned that the food or animal must
65.14be properly labeled or processed, has been executed, may by order direct that the food or
65.15animal be delivered to the claimant for proper labeling or processing under the supervision
65.16of the commissioner. The expense of the supervision must be paid by the claimant. The
65.17food or animal must be returned to the claimant and the bond must be discharged on the
65.18representation to the court by the commissioner that the food or animal is no longer in
65.19violation and that the expenses for the supervision have been paid.
65.20    Subd. 5. Duties of commissioner. If the commissioner finds in any room, building,
65.21vehicle of transportation, or other structure any meat, seafood, poultry, vegetable, fruit, or
65.22other perishable articles of food that are unsound, or contain any filthy, decomposed, or
65.23putrid substance, or that may be poisonous or deleterious to health or otherwise unsafe, the
65.24commissioner shall condemn or destroy the item or in any other manner render the item as
65.25unsalable as human food, and no one has any cause of action against the commissioner
65.26on account of the commissioner's action.
65.27    Subd. 6. Emergency response. If the governor declares an emergency order under
65.28section 12.31 and if the commissioner finds or has probable cause to believe that livestock,
65.29food, or a consumer commodity within a specific area is likely to be adulterated because
65.30of the emergency or so misbranded as to be dangerous or fraudulent, or is in violation of
65.31section 31.131, subdivision 1, the commissioner may embargo a geographic area that is
65.32included in the declared emergency. The commissioner shall provide notice to the public
65.33and to those with custody of the product in as thorough a manner as is practicable under
65.34the emergency circumstances.

65.35    Sec. 35. [34A.12] POWERS OF THE COMMISSIONER.
66.1    Subdivision 1. Gathering information. The commissioner may, for the purposes
66.2of this chapter:
66.3(1) gather and compile information concerning and investigate the organization,
66.4business, conduct, practices, and management of a person in intrastate commerce and
66.5the person's relation to other persons; and
66.6(2) require, by general or special orders, a person, persons, or a class of persons
66.7engaged in intrastate commerce to file with the commissioner, in the form the
66.8commissioner prescribes, annual and special reports or answers in writing to specific
66.9questions, giving the commissioner the information the commissioner requires about the
66.10organization, business, conduct, practices, management, and relation to other persons, of
66.11the person filing the reports or answers. The reports and answers must be made under
66.12oath, or otherwise, as the commissioner prescribes, and filed with the commissioner within
66.13a reasonable time the commissioner prescribes, unless additional time is granted by the
66.14commissioner.
66.15    Subd. 2. Examination of documents for evidence. (a) For purposes of this
66.16chapter, the commissioner must at all reasonable times be allowed to examine and
66.17copy documentary evidence of a person being investigated or proceeded against. The
66.18commissioner may subpoena witnesses and require the production of documentary
66.19evidence of a person relating to any matter under investigation. The commissioner
66.20may sign subpoenas, administer oaths and affirmations, examine witnesses, and receive
66.21evidence.
66.22(b) Attendance of witnesses and the production of documentary evidence may
66.23be required at a designated hearing place. In case of disobedience to a subpoena, the
66.24commissioner may invoke the aid of the district court to require the attendance and
66.25testimony of witnesses and the production of documentary evidence.
66.26(c) The district court, in case of refusal to obey a subpoena issued to a person, may
66.27issue an order requiring the person to appear before the commissioner or to produce
66.28documentary evidence if ordered, or to give evidence touching the matter in question.
66.29Failure to obey the order of the court may be punishable by the court as a contempt.
66.30(d) Upon the application of the attorney general at the request of the commissioner,
66.31the district court may order a person to comply with this chapter or an order of the
66.32commissioner made under this chapter.
66.33(e) The commissioner may order testimony to be taken by deposition in a proceeding
66.34or investigation pending under this chapter at any state of the proceeding or investigation.
66.35Depositions may be taken before a person designated by the commissioner and having
66.36power to administer oaths. The testimony must be reduced to writing by the person taking
67.1the deposition or under the person's direction and must then be signed by the witness. A
67.2person may be compelled to appear and depose and to produce documentary evidence
67.3in the same manner as witnesses may be compelled to appear and testify and produce
67.4documentary evidence before the commissioner.
67.5(f) Witnesses summoned before the commissioner may be paid the same fees and
67.6mileage that are paid witnesses in the district courts. Witnesses whose depositions are
67.7taken and the persons taking them may be entitled to the fees that are paid for those
67.8services in the district court.
67.9(g) A person is not excused from attending and testifying or from producing books,
67.10papers, schedules of charges, contracts, agreements, or other documentary evidence
67.11before the commissioner or in obedience to the subpoena of the commissioner whether
67.12the subpoena is signed or issued by the commissioner or the commissioner's agent, or in
67.13any cause or proceeding, criminal or otherwise, based upon or growing out of an alleged
67.14violation of this chapter because the testimony or evidence, documentary or otherwise,
67.15required of the person may tend to incriminate the person or subject the person to a
67.16penalty or forfeiture. No person may be prosecuted or subjected to a penalty or forfeiture
67.17on account of a matter concerning which the person is compelled, after having claimed
67.18a privilege against self-incrimination, to testify or produce evidence, documentary or
67.19otherwise, except that a witness is not exempt from prosecution and punishment for
67.20perjury committed in testifying.
67.21    Subd. 3. Penalties related to testimony and records. (a) A person who neglects
67.22or refuses to attend and testify, to answer a lawful inquiry, or to produce documentary
67.23evidence, if it is in the person's power to do so in obedience to the subpoena or lawful
67.24requirement of the commissioner, is guilty of a misdemeanor.
67.25(b) A person who willfully:
67.26(1) makes or causes to be made a false entry or statement of fact in a report required
67.27under this chapter;
67.28(2) makes or causes to be made a false entry in an account, record, or memorandum
67.29kept by a person subject to this chapter;
67.30(3) neglects or fails to make or to cause to be made full and correct entries in the
67.31accounts, records, or memoranda of all facts and transactions relating to the person's
67.32business;
67.33(4) leaves the jurisdiction of this state;
67.34(5) mutilates, alters, or by any other means falsifies documentary evidence of a
67.35person subject to this chapter; or
68.1(6) refuses to submit to the commissioner, for inspection and copying, any
68.2documentary evidence of a person subject to this chapter in the person's possession or
68.3control, is guilty of a misdemeanor.
68.4(c) A person required by this chapter to file an annual or special report who fails to
68.5do so within the time fixed by the commissioner for filing the report and continues the
68.6failure for 30 days after notice of failure to file, is guilty of a misdemeanor.
68.7(d) An officer or employee of this state who makes public information obtained by
68.8the commissioner without the commissioner's authority, unless directed by a court, is
68.9guilty of a misdemeanor.

68.10    Sec. 36. REPEALER.
68.11(a) Minnesota Statutes 2010, sections 28.15; 28A.12; 28A.13; 29.28; 31.031;
68.1231.041; 31.05; 31.14; 31.393; 31.58; 31.592; 31.621, subdivision 5; 31.631, subdivision
68.134; 31.633, subdivision 2; 31.681; 31.74, subdivision 3; 31.91; 31A.24; 31A.26; and
68.1434.113, are repealed.
68.15(b) Minnesota Rules, parts 1540.0010, subpart 26; 1550.0930, subparts 3, 4, 5, 6,
68.16and 7; 1550.1040, subparts 3, 4, 5, and 6; and 1550.1260, subparts 6 and 7, are repealed."
68.17Delete the title and insert:

68.18"A bill for an act

68.19relating to agriculture; modifying provisions related to pesticides, plants,
68.20nursery law, inspections, enforcements, seeds, commercial feed, food, animals,
68.21grain, and weights and measures; modifying certain ethanol and biodiesel
68.22provisions; delaying the effective date to eliminate certain limitations on wind
68.23easements; designating Lester as official state soil; establishing Dairy Research,
68.24Teaching, and Consumer Education Authority; establishing pilot agricultural
68.25microloan program; providing certain counties with capital improvement
68.26plan authority; modifying seized animal procedures; providing for food law
68.27enforcement; making administrative, clarifying, technical, and other conforming
68.28changes; requiring reports;amending Minnesota Statutes 2010, sections
68.2917.114, subdivisions 3, 4; 17.982, subdivision 1; 17.983; 17.984, subdivision
68.301; 18B.065, subdivision 2a, by adding a subdivision; 18B.316, subdivision
68.316; 18G.02, subdivision 14; 18G.07, subdivision 1; 18G.10, subdivision 7,
68.32by adding a subdivision; 18H.02, subdivision 14, by adding a subdivision;
68.3318H.10; 18H.14; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05,
68.34subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 21.82, subdivisions 7,
68.358; 25.33, subdivision 3; 28A.03, subdivisions 3, 5, 6; 28A.21, subdivision 6;
68.3631.01, subdivisions 2, 3, 4, 21, 25, 28; 31.121; 31.123; 31.13; 31.94; 31A.02,
68.37subdivisions 13, 14, 15, 16; 31A.23; 32.01, subdivisions 11, 12; 35.0661,
68.38subdivisions 2, 3; 40A.17; 41A.12, subdivisions 2, 4; 41B.036; 41B.048,
68.39subdivision 6; 41B.055, subdivision 1; 41B.06; 48.24, subdivision 5; 223.16,
68.40subdivision 12; 223.17, subdivisions 1, 4, 6, 9; 232.21, subdivisions 2, 6, 12;
68.41232.22, subdivisions 3, 4, 5, 7; 232.23, subdivisions 2, 5, 10; 232.24, subdivisions
68.421, 2; 239.092; 239.093; 239.77, subdivisions 3, 5; 239.791, subdivision 1a;
68.43347.54, subdivisions 2, 3; Laws 2008, chapter 296, article 1, section 25, as
68.44amended; Laws 2010, Second Special Session chapter 1, article 1, section 11;
68.45Laws 2011, chapter 14, section 6; proposing coding for new law in Minnesota
68.46Statutes, chapters 1; 41B; 346; proposing coding for new law as Minnesota
69.1Statutes, chapters 32C; 34A; repealing Minnesota Statutes 2010, sections 17B.01;
69.217B.02; 17B.03; 17B.04; 17B.041; 17B.0451; 17B.048; 17B.05; 17B.06;
69.317B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14; 17B.15, subdivisions 1, 3;
69.417B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1, 2; 17B.28; 17B.29;
69.525.33, subdivision 18; 27.19, subdivisions 2, 3; 27.20; 28.15; 28A.12; 28A.13;
69.629.28; 31.031; 31.041; 31.05; 31.14; 31.393; 31.58; 31.592; 31.621, subdivision
69.75; 31.631, subdivision 4; 31.633, subdivision 2; 31.681; 31.74, subdivision 3;
69.831.91; 31A.24; 31A.26; 34.113; 35.243; 35.255; 35.71, subdivisions 1, 2, 3,
69.94, 5, 6, 7; 35.72, subdivisions 1, 2, 3, 4, 5; 41B.048, subdivision 7; 223.16,
69.10subdivision 7; 223.18; 232.21, subdivision 4; 232.24, subdivision 3; 232.25;
69.11233.01; 233.015; 233.017; 233.02; 233.03; 233.04; 233.05; 233.06; 233.07;
69.12233.08; 233.09; 233.10; 233.11; 233.12; 233.22; 233.23; 233.24; 233.33; 234.01;
69.13234.03; 234.04; 234.05; 234.06; 234.08; 234.09; 234.10; 234.11; 234.12; 234.13;
69.14234.14; 234.15; 234.16; 234.17; 234.18; 234.19; 234.20; 234.21; 234.22; 234.23;
69.15234.24; 234.25; 234.27; 235.01; 235.02; 235.04; 235.05; 235.06; 235.07; 235.08;
69.16235.09; 235.10; 235.13; 235.18; 236.01; 236.02; 236.03; 236.04; 236.05; 236.06;
69.17236.07; 236.08; 236.09; 395.14; 395.15; 395.16; 395.17; 395.18; 395.19; 395.20;
69.18395.21; 395.22; 395.23; 395.24; Minnesota Rules, parts 1505.0780; 1505.0810;
69.191511.0100; 1511.0110; 1511.0120; 1511.0130; 1511.0140; 1511.0150;
69.201511.0160; 1511.0170; 1540.0010, subpart 26; 1550.0930, subparts 3, 4, 5, 6, 7;
69.211550.1040, subparts 3, 4, 5, 6; 1550.1260, subparts 6, 7; 1562.0100, subparts
69.223, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25;
69.231562.0200; 1562.0400; 1562.0700; 1562.0900; 1562.1300; 1562.1800."

	We request the adoption of this report and repassage of the bill.
	House Conferees:
	.....		.....
	Paul Anderson		Rod Hamilton
	.....		.....
	Deb Kiel		Chris Swedzinski
	.....
	Kent Eken
	Senate Conferees:
	.....		.....
	Doug Magnus		Gary H. Dahms
	.....		.....
	David M. Brown		Julie A. Rosen
	.....
	Rod Skoe