1.1                          A bill for an act 
  1.2             relating to agriculture; reducing and eliminating 
  1.3             penalties for violating the adulterated dairy products 
  1.4             law; authorizing a dairy assistance program; requiring 
  1.5             inspection and permits of bulk milk pick-up tankers; 
  1.6             changing certain standards for milk used for 
  1.7             manufacturing purposes; appropriating money; amending 
  1.8             Minnesota Statutes 1994, sections 32.21, subdivision 
  1.9             4; 32.394, subdivision 8d, and by adding a 
  1.10            subdivision; and 32.415. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 32.21, 
  1.13  subdivision 4, is amended to read: 
  1.14     Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
  1.15  producer, who violates this section is guilty of a misdemeanor 
  1.16  or subject to a civil penalty up to $1,000. 
  1.17     (b) A milk producer may not change milk plants within 30 
  1.18  days, without permission of the commissioner, after receiving 
  1.19  notification from the commissioner under paragraph (c) or (d) 
  1.20  that the milk producer has violated this section. 
  1.21     (c) A milk producer who violates subdivision 3, clause (1), 
  1.22  (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
  1.23  paragraph. 
  1.24     (1) Upon notification of the first violation in a 12-month 
  1.25  period, the producer must meet with the dairy plant field 
  1.26  service representative to initiate corrective action within 30 
  1.27  days. 
  1.28     (2) Upon the second violation within a 12-month period, the 
  2.1   producer is subject to a civil penalty of $300.  The 
  2.2   commissioner shall notify the producer by certified mail stating 
  2.3   the penalty is payable in 30 days, the consequences of failure 
  2.4   to pay the penalty, and the consequences of future violations. 
  2.5      (3) Upon the third violation within a 12-month period, the 
  2.6   producer is subject to an additional civil penalty of $300 and 
  2.7   possible revocation of the producer's permit or certification.  
  2.8   The commissioner shall notify the producer by certified mail 
  2.9   that all civil penalties owed must be paid within 30 days and 
  2.10  that the commissioner is initiating administrative procedures to 
  2.11  revoke the producer's permit or certification to sell milk for 
  2.12  at least 30 days. 
  2.13     (d) The producer's shipment of milk must be immediately 
  2.14  suspended if the producer is identified as an individual source 
  2.15  of milk containing residues causing a bulk load of milk to test 
  2.16  positive in violation of subdivision 3, clause (6) or (7).  
  2.17  Shipment may resume only after subsequent milk has been sampled 
  2.18  by the commissioner or the commissioner's agent and found to 
  2.19  contain no residues above established tolerances or safe levels. 
  2.20     The producer remains eligible only for manufacturing grade 
  2.21  until the producer completes the "Milk and Dairy Beef Residue 
  2.22  Prevention Protocol" with a licensed veterinarian, displays the 
  2.23  signed certificate in the milkhouse, and sends verification to 
  2.24  the commissioner.  A milk producer who violates whose milk 
  2.25  supply is in violation of subdivision 3, clause (6) or (7), and 
  2.26  has caused a bulk load to test positive is subject to clauses 
  2.27  (1) to (3) of this paragraph.  
  2.28     (1) For the first violation in a 12-month period, a 
  2.29  producer shall not receive payment for any milk contaminated or 
  2.30  the equivalent of at least the value of two days' milk 
  2.31  production on that farm.  Milk purchased for use from the 
  2.32  producer during the two-day penalty period will be assessed a 
  2.33  civil penalty equal to the minimum value of that milk and is 
  2.34  payable to the commissioner by the dairy plant or marketing 
  2.35  organization who purchases the milk.  The producer remains 
  2.36  eligible only for manufacturing grade until the producer 
  3.1   completes the "Milk and Dairy Beef Residue Prevention Protocol" 
  3.2   with a licensed veterinarian, displays the signed certificate in 
  3.3   the milkhouse, and sends verification to the commissioner.  To 
  3.4   maintain a permit or certification to market milk, this program 
  3.5   must be completed within 30 days dairy plant may collect from 
  3.6   the responsible producer the value of the contaminated truck 
  3.7   load of milk.  If the amount collected by the plant is less than 
  3.8   two days of milk production on that farm, then the commissioner 
  3.9   must assess the difference as a civil penalty payable by the 
  3.10  plant or marketing organization on behalf of the responsible 
  3.11  producer. 
  3.12     (2) For the second violation in a 12-month period, a 
  3.13  producer shall not receive payment for any milk contaminated or 
  3.14  the equivalent of at least the value of four days' milk 
  3.15  production on that farm.  Milk purchased for use from the 
  3.16  producer during the four-day penalty period will be assessed a 
  3.17  civil penalty equal to the minimum value of that milk and is 
  3.18  payable to the commissioner by the dairy plant or marketing 
  3.19  organization who purchases the milk.  The producer remains 
  3.20  eligible only for manufacturing grade until the producer reviews 
  3.21  the "Milk and Dairy Beef Residue Prevention Protocol" with a 
  3.22  licensed veterinarian, displays the updated certificate in the 
  3.23  milkhouse, and sends verification to the commissioner.  To 
  3.24  maintain a permit or certification to market milk, this program 
  3.25  must be reviewed within 30 days dairy plant may collect from the 
  3.26  responsible producer the value of the contaminated truck load of 
  3.27  milk.  If the amount collected by the plant is less than four 
  3.28  days of milk production on that farm, then the commissioner must 
  3.29  assess the difference as a civil penalty payable by the plant or 
  3.30  marketing organization on behalf of the responsible producer. 
  3.31     (3) For the third violation in a 12-month period, a 
  3.32  producer shall not receive payment for any milk contaminated or 
  3.33  the equivalent of at least the value of four days' milk 
  3.34  production on that farm.  Milk purchased for use from the 
  3.35  producer during the four-day penalty period will be assessed a 
  3.36  civil penalty equal to the minimum value of that milk and is 
  4.1   payable to the commissioner by the dairy plant or marketing 
  4.2   organization who purchases the milk.  The producer remains 
  4.3   eligible only for manufacturing grade until the producer reviews 
  4.4   the "Milk and Dairy Beef Residue Prevention Protocol" with a 
  4.5   licensed veterinarian, displays the updated certificate in the 
  4.6   milkhouse, and sends verification to the commissioner.  To 
  4.7   maintain a permit or certification to market milk, this program 
  4.8   must be reviewed within 30 days dairy plant may collect from the 
  4.9   responsible producer the value of the contaminated load of milk. 
  4.10  If the amount collected by the plant is less than four days of 
  4.11  milk production on that farm, then the commissioner must assess 
  4.12  the difference as a civil penalty payable by the plant or 
  4.13  marketing organization on behalf of the responsible producer.  
  4.14  The commissioner shall also notify the producer by certified 
  4.15  mail that the commissioner is initiating administrative 
  4.16  procedures to revoke the producer's permit or 
  4.17  certification right to sell milk for a minimum of 30 days.  
  4.18     (4) If a bulk load of milk tests negative for residues and 
  4.19  there is a positive producer sample on the load, no civil 
  4.20  penalties may be assessed to the producer.  The plant must 
  4.21  report the positive result within 24 hours and reject further 
  4.22  milk shipments from that producer until the producer's milk 
  4.23  tests negative.  The department shall suspend the producer's 
  4.24  permit and count the violation on the producer's record.  The 
  4.25  producer remains eligible only for manufacturing grade until the 
  4.26  producer reviews the "Milk and Dairy Beef Residue Prevention 
  4.27  Protocol" with a licensed veterinarian.  To maintain a permit or 
  4.28  certification to market milk, this program must be reviewed 
  4.29  within 30 days. 
  4.30     (e) A milk producer that has been certified as completing 
  4.31  the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
  4.32  months of the first violation of subdivision 3, clause (7), need 
  4.33  only review the cause of the violation with a field service 
  4.34  representative within three days to maintain shipping status if 
  4.35  all other requirements of this section are met. 
  4.36     (f) Civil penalties collected under this section must be 
  5.1   deposited in the milk inspection services account established in 
  5.2   this chapter. 
  5.3      Sec. 2.  Minnesota Statutes 1994, section 32.394, 
  5.4   subdivision 8d, is amended to read: 
  5.5      Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
  5.6   pay to the commissioner a fee for fluid milk processed and milk 
  5.7   used in the manufacture of fluid milk products sold for retail 
  5.8   sale in Minnesota.  Beginning May 1, 1993, the fee is six cents 
  5.9   per hundredweight.  If the commissioner determines that a 
  5.10  different fee, not less than five cents and not more than nine 
  5.11  cents per hundredweight, when combined with general fund 
  5.12  appropriations and fees charged under sections 31.39 and 32.394, 
  5.13  subdivision 8, is needed to provide adequate funding for the 
  5.14  Grades A and B inspection programs and the administration and 
  5.15  enforcement of Laws 1993, chapter 65, the commissioner may, by 
  5.16  rule, change the fee on processors within the range provided 
  5.17  within this subdivision. 
  5.18     (b) Processors must report quantities of milk processed 
  5.19  under paragraph (a) on forms provided by the commissioner.  
  5.20  Processor fees must be paid monthly.  The commissioner may 
  5.21  require the production of records as necessary to determine 
  5.22  compliance with this subdivision. 
  5.23     (c) The commissioner may create within the department a 
  5.24  dairy consulting program to provide assistance to dairy 
  5.25  producers who are experiencing problems meeting the sanitation 
  5.26  and quality requirements of the dairy laws and rules. 
  5.27     The commissioner may use money appropriated from the dairy 
  5.28  services account created in subdivision 9 to pay for the program 
  5.29  authorized in this paragraph. 
  5.30     Sec. 3.  Minnesota Statutes 1994, section 32.394, is 
  5.31  amended by adding a subdivision to read: 
  5.32     Subd. 8e.  [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk 
  5.33  pick-up tankers must be inspected and obtain a permit issued by 
  5.34  the commissioner annually by July 1.  The owner or operator must 
  5.35  pay a $25 permit fee per tanker to the commissioner.  The 
  5.36  commissioner may appoint such persons as the commissioner deems 
  6.1   qualified to make inspections. 
  6.2      Sec. 4.  Minnesota Statutes 1994, section 32.415, is 
  6.3   amended to read: 
  6.4      32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
  6.5      (a) The commissioner may adopt rules to provide uniform 
  6.6   quality standards, and producers of milk used for manufacturing 
  6.7   purposes shall conform to the standards contained in Subparts B, 
  6.8   C, D, E, and F of the United States Department of Agriculture 
  6.9   Consumer and Marketing Service Recommended Requirements for Milk 
  6.10  for Manufacturing Purposes and its Production and Processing, 
  6.11  Vol. 37 Federal Register, No. 68, Part II, April 7, 1972, with 
  6.12  the following exceptions:  
  6.13     (1) inspections of producers shall begin not later than 
  6.14  January 1, 1984; 
  6.15     (2) producers shall comply with the standards not later 
  6.16  than July 1, 1985, except as otherwise allowed under the 
  6.17  standards; and 
  6.18     (3) as revised through March 1, 1996, except that the 
  6.19  commissioner shall develop methods by which producers can comply 
  6.20  with the standards without violation of religious beliefs.  
  6.21     (b) The commissioner shall perform or contract for the 
  6.22  performance of the inspections necessary to implement this 
  6.23  section or shall certify dairy industry personnel to perform the 
  6.24  inspections.  
  6.25     (c) The commissioner and other employees of the department 
  6.26  shall make every reasonable effort to assist producers in 
  6.27  achieving the milk quality standards at minimum cost and to use 
  6.28  the experience and expertise of the University of Minnesota and 
  6.29  the agricultural extension service to assist producers in 
  6.30  achieving the milk quality standards in the most cost-effective 
  6.31  manner.  
  6.32     (d) The commissioner shall consult with producers, 
  6.33  processors, and others involved in the dairy industry in order 
  6.34  to prepare for the implementation of this section including 
  6.35  development of informational and educational materials, 
  6.36  meetings, and other methods of informing producers about the 
  7.1   implementation of standards under this section. 
  7.2      Sec. 5.  [EFFECTIVE DATE.] 
  7.3      Section 3 is effective the day following final enactment.  
  7.4   Section 3 applies to farm bulk milk pick-up tankers on July 1, 
  7.5   1996.