1.1                          A bill for an act 
  1.2             relating to agriculture; including poultry in the 
  1.3             prompt payment requirement for livestock purchases; 
  1.4             amending Minnesota Statutes 2000, section 31B.04. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 31B.04, is 
  1.7   amended to read: 
  1.8      31B.04 [PROMPT PAYMENT FOR PURCHASE OF LIVESTOCK AND 
  1.9   POULTRY.] 
  1.10     Subdivision 1.  [KIND OF PAYMENT; TIME REQUIRED.] A packer, 
  1.11  market agency, or dealer purchasing livestock or poultry shall, 
  1.12  before the close of the next business day following the purchase 
  1.13  of livestock or poultry and transfer of its possession, deliver 
  1.14  to the seller or the seller's authorized representative the full 
  1.15  amount of the purchase price.  If a packer, market agency, or 
  1.16  dealer is purchasing livestock or poultry for slaughter, that 
  1.17  person shall, before the close of the next business day 
  1.18  following purchase of livestock or poultry and transfer of its 
  1.19  possession, actually deliver at the point of transfer of 
  1.20  possession to the seller or the seller's authorized 
  1.21  representative a check or shall wire transfer funds to the 
  1.22  seller's account for the full amount of the purchase price; or, 
  1.23  in the case of a purchase on a carcass or "grade and yield" 
  1.24  basis, the purchaser shall make payment by check at the point of 
  1.25  transfer of possession or shall wire transfer funds to the 
  2.1   seller's account for the full amount of the purchase price not 
  2.2   later than the close of the first business day following 
  2.3   determination of the purchase price.  If the seller or a duly 
  2.4   authorized representative is not present to receive payment at 
  2.5   the point of transfer of possession, the packer, market agency, 
  2.6   or dealer shall wire funds or place a check in the United States 
  2.7   mail for the full amount of the purchase price properly 
  2.8   addressed to the seller within the time limits specified in this 
  2.9   section, and that action complies with the requirement for 
  2.10  prompt payment. 
  2.11     Subd. 2.  [WAIVER.] Notwithstanding subdivision 1 and 
  2.12  subject to terms and conditions the commissioner may prescribe, 
  2.13  the parties to the purchase and sale of livestock or poultry may 
  2.14  expressly agree in writing, before the purchase or sale, to 
  2.15  effect payment in a manner other than that required in 
  2.16  subdivision 1.  The agreement must be disclosed in the records 
  2.17  of the market agency or dealer selling the livestock or poultry, 
  2.18  and in the purchaser's records and on the accounts or other 
  2.19  documents issued by the purchaser relating to the transaction. 
  2.20     Subd. 3.  [DELAY IN PAYMENT OR ATTEMPT TO DELAY.] Any delay 
  2.21  or attempt to delay by a market agency, dealer, or packer 
  2.22  purchasing livestock or poultry, the collection of funds under 
  2.23  this section, or otherwise for the purpose of or resulting in 
  2.24  extending the normal period of payment for the livestock or 
  2.25  poultry is an "unfair practice" in violation of this chapter.