1.1                          A bill for an act 
  1.2             relating to agriculture; changing meeting provisions 
  1.3             and duties of the board of grain standards; changing 
  1.4             certain fees; defining and clarifying certain terms; 
  1.5             changing certain provisions related to grain buyers, 
  1.6             warehouses, and grain storage; clarifying uses of 
  1.7             value-added agricultural product processing and 
  1.8             marketing grants; clarifying contributions eligible 
  1.9             for certain matching funds; changing pesticide 
  1.10            registration and aquatic pest control licensing 
  1.11            provisions; clarifying a fertilizer reporting 
  1.12            requirement; conforming meat and poultry rules to 
  1.13            federal law; providing for poultry inspection; 
  1.14            amending Minnesota Statutes 1998, sections 17.101, 
  1.15            subdivision 5; 17.109, subdivision 3; 17B.07; 17B.12; 
  1.16            17B.15, subdivision 1; 18B.26, subdivisions 1, 3, and 
  1.17            6; 18B.315, subdivisions 3, 4, and 6; 18C.421, 
  1.18            subdivision 1; 27.01, subdivision 8, and by adding a 
  1.19            subdivision; 27.19, subdivision 1; 31.101, subdivision 
  1.20            10; 31A.01; 31A.02, subdivision 4, and by adding 
  1.21            subdivisions; 31A.15, subdivision 1; 31A.21, 
  1.22            subdivisions 1 and 3; 31A.31; 223.17, subdivisions 5 
  1.23            and 6; 223.175; 232.21, by adding a subdivision; and 
  1.24            232.23, subdivisions 3 and 6; repealing Minnesota 
  1.25            Statutes 1998, section 31A.28.  
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27     Section 1.  Minnesota Statutes 1998, section 17.101, 
  1.28  subdivision 5, is amended to read: 
  1.29     Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
  1.30  MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
  1.31     (1) "agricultural commodity" means a material produced for 
  1.32  use in or as food, feed, seed, or fiber and includes crops for 
  1.33  fiber, food, oilseeds, seeds, livestock, livestock products, 
  1.34  dairy, dairy products, poultry, poultry products, and other 
  1.35  products or by-products of the farm produced for the same or 
  2.1   similar use, except ethanol; and 
  2.2      (2) "agricultural product processing facility" means land, 
  2.3   buildings, structures, fixtures, and improvements located or to 
  2.4   be located in Minnesota and used or operated primarily for the 
  2.5   processing or production of marketable products from 
  2.6   agricultural commodities produced in Minnesota.  
  2.7      (b) The commissioner shall establish and implement a 
  2.8   value-added agricultural product processing and marketing grant 
  2.9   program to help farmers finance new cooperatives that organize 
  2.10  for the purposes of operating agricultural product processing 
  2.11  facilities and for marketing activities related to the sale and 
  2.12  distribution of processed agricultural products.  
  2.13     (c) To be eligible for this program a grantee must:  
  2.14     (1) be a cooperative organized under chapter 308A; 
  2.15     (2) certify that all of the control and equity in the 
  2.16  cooperative is from farmers as defined in section 500.24, 
  2.17  subdivision 2, who are actively engaged in agricultural 
  2.18  commodity production; 
  2.19     (3) be operated primarily for the processing of 
  2.20  agricultural commodities produced in Minnesota; 
  2.21     (4) receive agricultural commodities produced primarily by 
  2.22  shareholders or members of the cooperative; and 
  2.23     (5) have no direct or indirect involvement in the 
  2.24  production of agricultural commodities.  
  2.25     (d) The commissioner may receive applications from and make 
  2.26  grants up to $50,000 for feasibility, marketing 
  2.27  analysis, assistance with organizational development, financing 
  2.28  and managing new cooperatives, product development, development 
  2.29  of business and marketing plans, and predesign of 
  2.30  facilities including site analysis, development of bid 
  2.31  specifications, preliminary blueprints and schematics, and 
  2.32  completion of purchase agreements and other necessary legal 
  2.33  documents to eligible cooperatives.  The commissioner shall give 
  2.34  priority to applicants who use the grants for planning costs 
  2.35  related to an application for financial assistance from the 
  2.36  United States Department of Agriculture, Rural Business - 
  3.1   Cooperative Service. 
  3.2      Sec. 2.  Minnesota Statutes 1998, section 17.109, 
  3.3   subdivision 3, is amended to read: 
  3.4      Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
  3.5   FUNDS.] Appropriations to the Minnesota grown matching account 
  3.6   may be expended only to the extent that they are matched with 
  3.7   contributions to the account from private sources on a basis of 
  3.8   $4 of the appropriation to each $1 of private 
  3.9   contributions.  Private contributions eligible to be matched 
  3.10  include gifts, revenue received from the sale of advertising 
  3.11  space and directory listings, and revenue received from the 
  3.12  development and sale of promotional materials.  Matching funds 
  3.13  are not available after the appropriation is encumbered. 
  3.14     Sec. 3.  Minnesota Statutes 1998, section 17B.07, is 
  3.15  amended to read: 
  3.16     17B.07 [OFFICIAL TITLE OF BOARD; MEETINGS.] 
  3.17     The official title of the board shall be "The Minnesota 
  3.18  board of grain standards" and it shall have jurisdiction over 
  3.19  all grain appeal cases brought before it.  
  3.20     The board shall meet annually on or before June 15, as 
  3.21  needed and shall establish the grades of all grain subject to 
  3.22  state inspection which shall be known as the "Minnesota grades," 
  3.23  and all grain received at any public warehouse shall be graded 
  3.24  accordingly.  Such grades shall not be changed before the next 
  3.25  annual meeting without the concurrence of at least two members 
  3.26  of the board.  At the time of establishing Minnesota grades, the 
  3.27  board also shall adopt such rules, in accordance with the 
  3.28  Administrative Procedure Act, as it deems necessary for the 
  3.29  enforcement of this section and section 17B.06.  In establishing 
  3.30  the grades, in addition to the physical qualities of the grain, 
  3.31  there shall be taken into consideration the milling and 
  3.32  bread-producing quality of all grain products used as human 
  3.33  food.  The board shall determine the grade, and dockage, if any, 
  3.34  of all grain in all cases where appeals from the decisions of 
  3.35  the chief inspector have been taken and for such purpose they 
  3.36  may request fresh samples of such grain to be furnished directly 
  4.1   to the board.  Dockage shall be considered as being of two 
  4.2   classes; first, that having value and second, that having no 
  4.3   value.  At the annual meeting the board shall ascertain and 
  4.4   determine what dockage contained in grain is of value and 
  4.5   publish a list thereof in connection with the publication of the 
  4.6   Minnesota grades.  Any foreign content of the grain shall not be 
  4.7   considered in establishing the grade.  Whenever grain containing 
  4.8   dockage of value is sold to any public local warehouse or mill, 
  4.9   terminal warehouse, or to any flour mill located in St. Paul, 
  4.10  Minneapolis, or Duluth, or any other point within the state, 
  4.11  which is now or may hereafter be designated as a terminal point, 
  4.12  such sale shall not be considered to include such dockage of 
  4.13  value, but such dockage shall be paid for at its market value or 
  4.14  shall be returned to the vendor of said grain at the option of 
  4.15  the vendee.  
  4.16     Sec. 4.  Minnesota Statutes 1998, section 17B.12, is 
  4.17  amended to read: 
  4.18     17B.12 [APPEALS; PROCEDURE.] 
  4.19     Any owner, consignee, or shipper of grain, or any warehouse 
  4.20  operator, who is dissatisfied with the inspection of grain may 
  4.21  appeal to the board of grain standards by filing a notice of 
  4.22  such appeal with the commissioner and paying a fee, to be fixed 
  4.23  by the commissioner, which shall be refunded if the appeal is 
  4.24  sustained.  The commissioner shall forthwith promptly transmit 
  4.25  the notice to said the board of grain standards.  The decision 
  4.26  of said the board, fixing the grade of such the grains shall 
  4.27  be is final.  
  4.28     Sec. 5.  Minnesota Statutes 1998, section 17B.15, 
  4.29  subdivision 1, is amended to read: 
  4.30     Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
  4.31  for inspection and weighing shall be fixed by the commissioner 
  4.32  and be a lien upon the grain.  The commissioner shall set fees 
  4.33  for all inspection and weighing in an amount adequate to pay the 
  4.34  expenses of carrying out and enforcing the purposes of sections 
  4.35  17B.01 to 17B.23, including the portion of general support costs 
  4.36  and statewide indirect costs of the agency attributable to that 
  5.1   function, with a reserve sufficient for up to six months.  The 
  5.2   commissioner shall review the fee schedule twice each year.  Fee 
  5.3   adjustments are not subject to chapter 14.  Payment shall be 
  5.4   required for services rendered.  If the grain is in transit, the 
  5.5   fees shall be paid by the carrier and treated as advance 
  5.6   charges, and, if received for storage, the fees shall be paid by 
  5.7   the warehouse operator, and added to the storage charges. 
  5.8      All fees collected and all fines and penalties for 
  5.9   violation of any provision of this chapter shall be deposited in 
  5.10  the grain inspection and weighing account, which is created in 
  5.11  the state treasury for carrying out the purpose of sections 
  5.12  17B.01 to 17B.23.  The money in the account, including interest 
  5.13  earned on the account, is annually appropriated to the 
  5.14  commissioner of agriculture to administer the provisions of 
  5.15  sections 17B.01 to 17B.23.  When money from any other account is 
  5.16  used to administer sections 17B.01 to 17B.23, the commissioner 
  5.17  shall notify the chairs of the agriculture, environment and 
  5.18  natural resources finance, and ways and means committees of the 
  5.19  house of representatives; the agriculture and rural development 
  5.20  and finance committees of the senate; and the finance division 
  5.21  of the environment and natural resources committee of the senate.
  5.22     Sec. 6.  Minnesota Statutes 1998, section 18B.26, 
  5.23  subdivision 1, is amended to read: 
  5.24     Subdivision 1.  [REQUIREMENT.] (a) A person may not use or 
  5.25  distribute a pesticide in this state unless it is registered 
  5.26  with the commissioner.  Pesticide registrations expire on 
  5.27  December 31 of each year and may be renewed on or before that 
  5.28  date for the following calendar year.  Registration of each 
  5.29  pesticide expires on December 31.  Beginning on January 1, 2001, 
  5.30  each company whose company name begins with a letter from A to M 
  5.31  shall be registered for two years.  Each company whose company 
  5.32  name begins with a letter from N to Z shall be registered for 
  5.33  one year and shall pay one-half the minimum fee for each 
  5.34  registered pesticide.  Each subsequent registration is for two 
  5.35  years. 
  5.36     (b) Registration is not required if a pesticide is shipped 
  6.1   from one plant or warehouse to another plant or warehouse 
  6.2   operated by the same person and used solely at the plant or 
  6.3   warehouse as an ingredient in the formulation of a pesticide 
  6.4   that is registered under this chapter. 
  6.5      (c) An unregistered pesticide that was previously 
  6.6   registered with the commissioner may be used for a period of two 
  6.7   years following the cancellation of the registration of the 
  6.8   pesticide, unless the commissioner determines that the continued 
  6.9   use of the pesticide would cause unreasonable adverse effects on 
  6.10  the environment, or with the written permission of the 
  6.11  commissioner.  To use the unregistered pesticide at any time 
  6.12  after the two-year period, the pesticide end user must 
  6.13  demonstrate to the satisfaction of the commissioner, if 
  6.14  requested, that the pesticide has been continuously registered 
  6.15  under a different brand name or by a different manufacturer and 
  6.16  has similar composition, or, the pesticide end user obtains the 
  6.17  written permission of the commissioner.  
  6.18     (d) Each pesticide with a unique United States 
  6.19  Environmental Protection Agency pesticide registration number or 
  6.20  a unique brand name must be registered with the commissioner. 
  6.21     Sec. 7.  Minnesota Statutes 1998, section 18B.26, 
  6.22  subdivision 3, is amended to read: 
  6.23     Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
  6.24  annual a biennial application fee for each pesticide to be 
  6.25  registered, and this fee is set at one-tenth of one percent for 
  6.26  calendar year 1990, at one-fifth of one percent for calendar 
  6.27  year 1991, and at two-fifths of one percent for calendar year 
  6.28  1992 and thereafter of two-fifths of one percent of annual gross 
  6.29  sales within the state and annual gross sales of pesticides used 
  6.30  in the state, with a minimum nonrefundable fee of $250 $500 per 
  6.31  registration period.  The fee for a new product registered any 
  6.32  time during the first year of the registration period must be 
  6.33  the minimum.  The fee for a new product registered during the 
  6.34  second year of a company's registration period must be one-half 
  6.35  of the minimum.  The registrant shall determine when and which 
  6.36  pesticides are sold or used in this state.  The registrant shall 
  7.1   secure sufficient sales information of pesticides distributed 
  7.2   into this state from distributors and dealers, regardless of 
  7.3   distributor location, to make a determination.  Sales of 
  7.4   pesticides in this state and sales of pesticides for use in this 
  7.5   state by out-of-state distributors are not exempt and must be 
  7.6   included in the registrant's annual report, as required under 
  7.7   paragraph (c), and fees shall be paid by the registrant based 
  7.8   upon those reported sales.  Sales of pesticides in the state for 
  7.9   use outside of the state are exempt from the application fee in 
  7.10  this paragraph if the registrant properly documents the sale 
  7.11  location and distributors.  A registrant paying more than the 
  7.12  minimum fee shall pay the balance due by March 1 based on the 
  7.13  gross sales of the pesticide by the registrant for the preceding 
  7.14  calendar year.  The fee for disinfectants and sanitizers shall 
  7.15  be the minimum.  The minimum fee is due by December 31 preceding 
  7.16  the first year of the two-year period for which the application 
  7.17  for registration is made.  Of the amount collected after 
  7.18  calendar year 1990, at least $600,000 per fiscal year must be 
  7.19  credited to the waste pesticide account under section 18B.065, 
  7.20  subdivision 5. 
  7.21     (b) An additional fee of $100 must be paid by the applicant 
  7.22  for each pesticide to be registered if the application is a 
  7.23  renewal application that is submitted after December 31. 
  7.24     (c) A registrant must annually report to the commissioner 
  7.25  the amount and type of each registered pesticide sold, offered 
  7.26  for sale, or otherwise distributed in the state.  The report 
  7.27  shall be filed by March 1 for the previous year's registration.  
  7.28  The commissioner shall specify the form of the report and 
  7.29  require additional information deemed necessary to determine the 
  7.30  amount and type of pesticides annually distributed in the 
  7.31  state.  The information required shall include the brand name, 
  7.32  amount, and formulation of each pesticide sold, offered for 
  7.33  sale, or otherwise distributed in the state, but the information 
  7.34  collected, if made public, shall be reported in a manner which 
  7.35  does not identify a specific brand name in the report. 
  7.36     Sec. 8.  Minnesota Statutes 1998, section 18B.26, 
  8.1   subdivision 6, is amended to read: 
  8.2      Subd. 6.  [DISCONTINUANCE OF REGISTRATION.] To ensure 
  8.3   complete withdrawal from distribution or further use of a 
  8.4   pesticide, a person who intends to discontinue a pesticide 
  8.5   registration must:  
  8.6      (1) terminate a further distribution within the state and 
  8.7   continue to register the pesticide annually for two successive 
  8.8   years.  If the second year of discontinuation of a product falls 
  8.9   on the first year of a company's registration period, the fee 
  8.10  must be one-half of the minimum; 
  8.11     (2) initiate and complete a total recall of the pesticide 
  8.12  from all distribution in the state within 60 days from the date 
  8.13  of notification to the commissioner of intent to discontinue 
  8.14  registration; or 
  8.15     (3) submit to the commissioner evidence adequate to 
  8.16  document that no distribution of the registered pesticide has 
  8.17  occurred in the state.  
  8.18     Sec. 9.  Minnesota Statutes 1998, section 18B.315, 
  8.19  subdivision 3, is amended to read: 
  8.20     Subd. 3.  [APPLICATION.] (a) A person must apply to the 
  8.21  commissioner for an aquatic pest control license on forms and in 
  8.22  a manner required by the commissioner.  The commissioner shall 
  8.23  require the applicant to pass a written, closed-book, monitored 
  8.24  examination or oral examination, or both, and may also require a 
  8.25  practical demonstration regarding aquatic pest control.  The 
  8.26  commissioner shall establish the examination procedure, 
  8.27  including the phases and contents of the examination. 
  8.28     (b) The commissioner may license a person as a master under 
  8.29  an aquatic pest control license if the person has the necessary 
  8.30  qualifications through knowledge and experience to properly 
  8.31  plan, determine, and supervise the selection and application of 
  8.32  pesticides in aquatic pest control.  To demonstrate the 
  8.33  qualifications and become licensed as a master under the aquatic 
  8.34  pest control license, a person must: 
  8.35     (1) pass a closed-book test administered by the 
  8.36  commissioner; 
  9.1      (2) have direct experience as a licensed journeyman under 
  9.2   an aquatic pest control license for at least two years by this 
  9.3   state or a state with equivalent certification requirements, or 
  9.4   have at least 1,600 hours of qualifying experience in the 
  9.5   previous four years as determined by the commissioner; and 
  9.6      (3) show practical knowledge and field experience under 
  9.7   clause (2) in the actual selection and application of pesticides 
  9.8   under varying conditions. 
  9.9      (c) The commissioner may license a person as a journeyman 
  9.10  under an aquatic pest control license if the person: 
  9.11     (1) has the necessary qualifications in the practical 
  9.12  selection and application of pesticides; 
  9.13     (2) has passed a closed-book examination given by the 
  9.14  commissioner; and 
  9.15     (3) is engaged as an employee of or is working under the 
  9.16  direction of a person licensed as a master under an aquatic pest 
  9.17  control license. 
  9.18     Sec. 10.  Minnesota Statutes 1998, section 18B.315, 
  9.19  subdivision 4, is amended to read: 
  9.20     Subd. 4.  [RENEWAL.] (a) An aquatic pest control applicator 
  9.21  license may be renewed on or before the expiration of an 
  9.22  existing license subject to reexamination, attendance at 
  9.23  workshops approved by the commissioner, or other requirements 
  9.24  imposed by the commissioner to provide the applicator with 
  9.25  information regarding changing technology and to help assure a 
  9.26  continuing level of competency and ability to use pesticides 
  9.27  safely and properly.  The commissioner may require an additional 
  9.28  demonstration of applicator qualification if the applicator has 
  9.29  had a license suspended or revoked or has otherwise had a 
  9.30  history of violations of this chapter. 
  9.31     (b) If a person fails to renew an aquatic pest control 
  9.32  license within three 12 months of its expiration, the person 
  9.33  must obtain an aquatic pest control license subject to the 
  9.34  requirements, procedures, and fees required for an initial 
  9.35  license. 
  9.36     Sec. 11.  Minnesota Statutes 1998, section 18B.315, 
 10.1   subdivision 6, is amended to read: 
 10.2      Subd. 6.  [FEES.] (a) An applicant for an aquatic pest 
 10.3   control license for a business must pay a nonrefundable 
 10.4   application fee of $100.  An employee of a licensed business 
 10.5   must pay a nonrefundable application fee of $50 for an 
 10.6   individual aquatic pest control license. 
 10.7      (b) An application received after expiration of the aquatic 
 10.8   pest control license March 1 in the year for which the license 
 10.9   is to be issued is subject to a penalty of 50 percent of the 
 10.10  application fee. 
 10.11     (c) An applicant that meets renewal requirements by 
 10.12  reexamination instead of attending workshops must pay the 
 10.13  equivalent workshop fee for the reexamination as determined by 
 10.14  the commissioner. 
 10.15     Sec. 12.  Minnesota Statutes 1998, section 18C.421, 
 10.16  subdivision 1, is amended to read: 
 10.17     Subdivision 1.  [SEMIANNUAL STATEMENT.] (a) Each licensed 
 10.18  distributor of fertilizer and each registrant of a specialty 
 10.19  fertilizer, soil amendment, or plant amendment must file a 
 10.20  semiannual statement for the periods ending December 31 and June 
 10.21  30 with the commissioner on forms furnished by the commissioner 
 10.22  stating the number of net tons and grade of each raw fertilizer 
 10.23  material distributed or the number of net tons of each brand or 
 10.24  grade of fertilizer, soil amendment, or plant amendment 
 10.25  distributed in this state during the reporting period. 
 10.26     (b) Tonnage reports are not required to be filed with the 
 10.27  commissioner from licensees who distribute fertilizer solely by 
 10.28  custom application. 
 10.29     (c) A report from a licensee who sells to an ultimate 
 10.30  consumer must be accompanied by records or invoice copies 
 10.31  indicating the name of the distributor who paid the inspection 
 10.32  fee, the net tons received, and the grade or brand name of the 
 10.33  products received.  
 10.34     (c) (d) The report is due on or before the last day of the 
 10.35  month following the close of each reporting period of each 
 10.36  calendar year.  
 11.1      (d) (e) The inspection fee at the rate stated in section 
 11.2   18C.425, subdivision 6, must accompany the statement. 
 11.3      Sec. 13.  Minnesota Statutes 1998, section 27.01, 
 11.4   subdivision 8, is amended to read: 
 11.5      Subd. 8.  [WHOLESALE PRODUCE DEALER.] (a) "Wholesale 
 11.6   produce dealer" or "dealer at wholesale" means:  
 11.7      (1) a person who buys or contracts to buy produce in 
 11.8   wholesale lots for resale; 
 11.9      (2) a person engaging in the business of a broker or agent, 
 11.10  who handles or deals in produce for a commission or fee; 
 11.11     (3) a truck owner or operator who buys produce in wholesale 
 11.12  lots for resale; and 
 11.13     (4) a person engaged in the business of a cannery, food 
 11.14  manufacturer, or food processor, who purchases produce in 
 11.15  wholesale lots as a part of that business; or 
 11.16     (5) a person who contracts with a producer to grow, raise, 
 11.17  or provide produce in Minnesota.  
 11.18     (b) For purposes of paragraph (a), "wholesale lots" means 
 11.19  purchases from Minnesota sellers must total more than $12,000 
 11.20  annually. 
 11.21     (c) "Wholesale produce dealer" or "dealer at wholesale" 
 11.22  does not include:  
 11.23     (1) a truck owner and operator who regularly engages in the 
 11.24  business of transporting freight, including produce, for a 
 11.25  transportation fee only, and who does not purchase, contract to 
 11.26  purchase, or sell produce; 
 11.27     (2) a marketing cooperative association in which 
 11.28  substantially all of the voting stock is held by patrons who 
 11.29  patronize the association and in which at least 75 percent of 
 11.30  the business of the association is transacted with member or 
 11.31  stockholder patrons; 
 11.32     (3) a person who purchases Minnesota seasonally grown 
 11.33  perishable fresh fruits and vegetables, and pays cash, including 
 11.34  lawful money of the United States, a cashier's check, a 
 11.35  certified check, or a bank draft; 
 11.36     (4) a person who handles and deals in only canned, 
 12.1   packaged, or processed produce or packaged dairy products that 
 12.2   are no longer perishable as determined by the commissioner by 
 12.3   rule; or 
 12.4      (5) retail merchants who purchase produce, defined in 
 12.5   subdivision 2, directly from farmers, which in the aggregate 
 12.6   does not exceed $500 per month.  
 12.7      Sec. 14.  Minnesota Statutes 1998, section 27.01, is 
 12.8   amended by adding a subdivision to read: 
 12.9      Subd. 11.  [PRODUCER.] "Producer" means a person who 
 12.10  produces or causes to be produced produce in a quantity beyond 
 12.11  the person's own family use and is able to transfer title to 
 12.12  another or provides management, labor, machinery, facilities, or 
 12.13  any other production input for the production of produce. 
 12.14     Sec. 15.  Minnesota Statutes 1998, section 27.19, 
 12.15  subdivision 1, is amended to read: 
 12.16     Subdivision 1.  [PROHIBITED ACTS.] (a) A person subject to 
 12.17  the provisions of this section and sections 27.01 to 27.14 may 
 12.18  not:  
 12.19     (1) operate or advertise to operate as a dealer at 
 12.20  wholesale without a license; 
 12.21     (2) make any false statement or report as to the grade, 
 12.22  condition, markings, quality, or quantity of produce, as defined 
 12.23  in section 27.069, received or delivered, or act in any manner 
 12.24  to deceive a consignor or purchaser; 
 12.25     (3) refuse to accept a shipment contracted for by the 
 12.26  person, unless the refusal is based upon the showing of a state 
 12.27  inspection certificate secured with reasonable promptness after 
 12.28  the receipt of the shipment showing that the kind and quality of 
 12.29  produce, as defined in section 27.069, is other than that 
 12.30  purchased or ordered by the person; 
 12.31     (4) fail to account or make a settlement for produce within 
 12.32  the required time; 
 12.33     (5) violate or fail to comply with the terms or conditions 
 12.34  of a contract entered into by the person for the purchase 
 12.35  production or sale of produce; 
 12.36     (6) purchase for a person's own account any produce 
 13.1   received on consignment, either directly or indirectly, without 
 13.2   the consent of the consignor; 
 13.3      (7) issue a false or misleading market quotation, or cancel 
 13.4   a quotation during the period advertised by the person; 
 13.5      (8) increase the sales charges on produce shipped to the 
 13.6   person by means of "dummy" or fictitious sales; 
 13.7      (9) receive decorative forest products and the products of 
 13.8   farms and waters from foreign states or countries for sale or 
 13.9   resale, either within or outside of the state, and give the 
 13.10  purchaser the impression, through any method of advertising or 
 13.11  description, that the produce is of Minnesota origin; 
 13.12     (10) fail to notify in writing all suppliers of produce of 
 13.13  the protection afforded to suppliers by the person's licensee 
 13.14  bond, including:  availability of a bond, notice requirements, 
 13.15  and any other conditions of the bond; 
 13.16     (11) make a false statement to the commissioner on an 
 13.17  application for license or bond or in response to written 
 13.18  questions from the commissioner regarding the license or bond; 
 13.19     (12) commit to pay and not pay in full for all produce 
 13.20  committed for.  A processor may not pay an amount less than the 
 13.21  full contract price if the crop produced is satisfactory for 
 13.22  processing and is not harvested for reasons within the 
 13.23  processor's control.  If the processor sets the date for 
 13.24  planting, bunching, unusual yields, and a processor's inability 
 13.25  or unwillingness to harvest must be considered to be within the 
 13.26  processor's control.  Under this clause growers must be 
 13.27  compensated for passed acreage at the same rate for grade and 
 13.28  yield as they would have received had the crop been harvested in 
 13.29  a timely manner minus any contractual provision for green manure 
 13.30  or feed value.  Both parties are excused from payment or 
 13.31  performance for crop conditions that are beyond the control of 
 13.32  the parties; or 
 13.33     (13) discriminate between different sections, localities, 
 13.34  communities, or cities, or between persons in the same 
 13.35  community, by purchasing produce from farmers of the same grade, 
 13.36  quality, and kind, at different prices, except that price 
 14.1   differentials are allowed if directly related to the costs of 
 14.2   transportation, shipping, and handling of the produce and a 
 14.3   person is allowed to meet the prices of a competitor in good 
 14.4   faith, in the same locality for the same grade, quality, and 
 14.5   kind of produce.  A showing of different prices by the 
 14.6   commissioner is prima facie evidence of discrimination.  
 14.7      (b) A separate violation occurs with respect to each 
 14.8   different person involved, each purchase or transaction 
 14.9   involved, and each false statement. 
 14.10     Sec. 16.  Minnesota Statutes 1998, section 31.101, 
 14.11  subdivision 10, is amended to read: 
 14.12     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
 14.13  effect on April 1, 1997 January 1, 1999, as provided by Code of 
 14.14  Federal Regulations, title 9, parts 301 to 362 and 381 to 391, 
 14.15  with the exception of Subpart C-Exemptions, sections 381.10 to 
 14.16  381.15 et seq., are incorporated as part of the meat and poultry 
 14.17  rules in this state.  The rules may be amended by the 
 14.18  commissioner under chapter 14. 
 14.19     Sec. 17.  Minnesota Statutes 1998, section 31A.01, is 
 14.20  amended to read: 
 14.21     31A.01 [POLICY.] 
 14.22     Meat, poultry, and meat food products are an important 
 14.23  source of the nation's total supply of food.  It is essential in 
 14.24  the public interest that the health and welfare of consumers be 
 14.25  protected by assuring that meat, poultry, and meat food products 
 14.26  distributed to them are wholesome, unadulterated, and properly 
 14.27  marked, labeled, and packaged.  Unwholesome, adulterated, or 
 14.28  misbranded meat, poultry, or meat food products injure the 
 14.29  public welfare, destroy markets for wholesome, unadulterated, 
 14.30  and properly labeled and packaged meat, poultry, and meat food 
 14.31  products, and result in losses to livestock producers and 
 14.32  processors of meat, poultry, and meat food products and injury 
 14.33  to consumers.  Unwholesome, adulterated, mislabeled, or 
 14.34  deceptively packaged articles can be sold at lower prices and 
 14.35  compete unfairly with wholesome, unadulterated, and properly 
 14.36  labeled and packaged articles, to the detriment of consumers and 
 15.1   the general public.  
 15.2      Regulation by the commissioner and cooperation between this 
 15.3   state and the United States under this chapter are appropriate 
 15.4   to protect the health and welfare of consumers and accomplish 
 15.5   the purposes of this chapter.  
 15.6      Sec. 18.  Minnesota Statutes 1998, section 31A.02, 
 15.7   subdivision 4, is amended to read: 
 15.8      Subd. 4.  [ANIMALS.] "Animals" means cattle, swine, sheep, 
 15.9   goats, poultry, farmed cervidae, as defined in section 17.451, 
 15.10  subdivision 2, llamas, as defined in section 17.455, subdivision 
 15.11  2, ratitae, as defined in section 17.453, subdivision 3, horses, 
 15.12  equines, and other large domesticated animals, not including 
 15.13  poultry.  
 15.14     Sec. 19.  Minnesota Statutes 1998, section 31A.02, is 
 15.15  amended by adding a subdivision to read: 
 15.16     Subd. 17a.  [FEDERAL POULTRY INSPECTION ACT.] "Federal 
 15.17  Poultry Inspection Act" means the Federal Poultry Products 
 15.18  Inspection Act, as amended. 
 15.19     Sec. 20.  Minnesota Statutes 1998, section 31A.02, is 
 15.20  amended by adding a subdivision to read: 
 15.21     Subd. 24.  [POULTRY.] "Poultry" means any domesticated 
 15.22  bird, including, but not limited to, chickens, turkeys, ducks, 
 15.23  geese, or guineas. 
 15.24     Sec. 21.  Minnesota Statutes 1998, section 31A.15, 
 15.25  subdivision 1, is amended to read: 
 15.26     Subdivision 1.  [INSPECTION.] The provisions of sections 
 15.27  31A.01 to 31A.16 requiring inspection of the slaughter of 
 15.28  animals and the preparation of the carcasses, parts of 
 15.29  carcasses, meat, and meat food products at establishments 
 15.30  conducting slaughter and preparation do not apply: 
 15.31     (1) to the processing by a person of the person's own 
 15.32  animals and the owner's preparation and transportation in 
 15.33  intrastate commerce of the carcasses, parts of carcasses, meat, 
 15.34  and meat food products of those animals exclusively for use by 
 15.35  the owner and members of the owner's household, nonpaying 
 15.36  guests, and employees; or 
 16.1      (2) to the custom processing by a person of cattle, sheep, 
 16.2   swine, poultry, or goats delivered by the owner for processing, 
 16.3   and the preparation or transportation in intrastate commerce of 
 16.4   the carcasses, parts of carcasses, meat, and meat food products 
 16.5   of animals, exclusively for use in the household of the owner by 
 16.6   the owner and members of the owner's household, nonpaying 
 16.7   guests, and employees.  Meat from custom processing of cattle, 
 16.8   sheep, swine, or goats must be identified and handled as 
 16.9   required by the commissioner, during all phases of processing, 
 16.10  chilling, cooling, freezing, preparation, storage, and 
 16.11  transportation.  The custom processor may not engage in the 
 16.12  business of buying or selling carcasses, parts of carcasses, 
 16.13  meat, or meat food products of animals usable as human food 
 16.14  unless the carcasses, parts of carcasses, meat, or meat food 
 16.15  products have been inspected and passed and are identified as 
 16.16  inspected and passed by the Minnesota department of agriculture 
 16.17  or the United States Department of Agriculture.  
 16.18     Sec. 22.  Minnesota Statutes 1998, section 31A.21, 
 16.19  subdivision 1, is amended to read: 
 16.20     Subdivision 1.  [DESIGNATION.] The Minnesota department of 
 16.21  agriculture is the state agency responsible for cooperating with 
 16.22  the United States Secretary of Agriculture under section 301 of 
 16.23  the Federal Meat Inspection Act and of the Poultry Products 
 16.24  Inspection Act to develop and administer the state meat 
 16.25  inspection program under this chapter so that its requirements 
 16.26  at least equal those imposed under titles I and IV of the 
 16.27  Federal Meat Inspection Act and of the Poultry Products 
 16.28  Inspection Act to develop and administer the state program under 
 16.29  sections 31A.17 to 31A.20 to carry out the purposes of this 
 16.30  chapter and the federal act.  
 16.31     Sec. 23.  Minnesota Statutes 1998, section 31A.21, 
 16.32  subdivision 3, is amended to read: 
 16.33     Subd. 3.  [ADVICE; CONSULTATION.] The Minnesota department 
 16.34  of agriculture may recommend to the United States Secretary of 
 16.35  Agriculture officials or employees of this state for appointment 
 16.36  to the advisory committees provided for in section 301 of the 
 17.1   Federal Meat Inspection Act and of the Poultry Products 
 17.2   Inspection Act.  The Minnesota department of agriculture shall 
 17.3   serve as the representative of the governor for consultation 
 17.4   with the secretary under paragraph (c) of section 301 of the 
 17.5   Federal Meat Inspection Act and of the Poultry Products 
 17.6   Inspection Act unless the governor selects another 
 17.7   representative.  
 17.8      Sec. 24.  Minnesota Statutes 1998, section 31A.31, is 
 17.9   amended to read: 
 17.10     31A.31 [CITATION.] 
 17.11     This chapter may be cited as the Minnesota Meat and Poultry 
 17.12  Inspection Act. 
 17.13     Sec. 25.  Minnesota Statutes 1998, section 223.17, 
 17.14  subdivision 5, is amended to read: 
 17.15     Subd. 5.  [CASH SALES; MANNER OF PAYMENT.] For a cash sale 
 17.16  of a shipment of grain which is part of a multiple shipment 
 17.17  sale, the grain buyer shall tender payment to the seller in cash 
 17.18  or by check not later than ten days after the sale of that 
 17.19  shipment, except that when the entire sale is completed, payment 
 17.20  shall be tendered not later than the close of business on the 
 17.21  next day, or within 48 hours, whichever is later.  For other 
 17.22  cash sales the grain buyer, before the close of business on the 
 17.23  next business day after the sale, shall tender payment to the 
 17.24  seller in cash or by check, or shall wire or mail funds to the 
 17.25  seller's account in the amount of at least 80 percent of the 
 17.26  value of the grain at the time of delivery.  The grain buyer 
 17.27  shall complete final settlement as rapidly as possible through 
 17.28  ordinary diligence.  Any transaction which is not a cash sale in 
 17.29  compliance with the provisions of this subdivision constitutes a 
 17.30  voluntary extension of credit which is not afforded protection 
 17.31  under the grain buyer's bond, and which must comply with 
 17.32  sections 223.175 and 223.177. 
 17.33     Sec. 26.  Minnesota Statutes 1998, section 223.17, 
 17.34  subdivision 6, is amended to read: 
 17.35     Subd. 6.  [FINANCIAL STATEMENTS.] For the purpose of fixing 
 17.36  or changing the amount of a required bond or for any other 
 18.1   proper reason, the commissioner shall require an annual 
 18.2   financial statement from a licensee which has been prepared in 
 18.3   accordance with generally accepted accounting principles and 
 18.4   which meets the following requirements:  
 18.5      (a) The financial statement shall include, but not be 
 18.6   limited to the following:  (1) a balance sheet; (2) a statement 
 18.7   of income (profit and loss); (3) a statement of retained 
 18.8   earnings; (4) a statement of changes in financial position cash 
 18.9   flows; and (5) a statement of the dollar amount of grain 
 18.10  purchased in the previous fiscal year of the grain buyer.  
 18.11     (b) The financial statement shall be accompanied by a 
 18.12  compilation, a review, or an audit report of the financial 
 18.13  statement which is prepared by a grain commission firm or a 
 18.14  management firm approved by the commissioner or by an 
 18.15  independent public accountant, in accordance with standards 
 18.16  established by the American Institute of Certified Public 
 18.17  Accountants.  
 18.18     (c) The financial statement shall be accompanied by a 
 18.19  certification by the chief executive officer or the chief 
 18.20  executive officer's designee of the licensee, under penalty of 
 18.21  perjury, that the financial statement accurately reflects the 
 18.22  financial condition of the licensee for the period specified in 
 18.23  the statement. 
 18.24     Only one financial statement must be filed for a chain of 
 18.25  warehouses owned or operated as a single business entity, unless 
 18.26  otherwise required by the commissioner.  Any grain buyer having 
 18.27  a net worth in excess of $500,000,000 need not file the 
 18.28  financial statement required by this subdivision but must 
 18.29  provide the commissioner with a certified net worth statement. 
 18.30  All financial statements filed with the commissioner are private 
 18.31  or nonpublic data as provided in section 13.02.  
 18.32     Sec. 27.  Minnesota Statutes 1998, section 223.175, is 
 18.33  amended to read: 
 18.34     223.175 [WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS; 
 18.35  FORM.] 
 18.36     A written confirmation required under section 223.177, 
 19.1   subdivision 2, and a written voluntary extension of credit 
 19.2   contract must include those items prescribed by the commissioner 
 19.3   by rule.  A contract shall include a statement of the legal and 
 19.4   financial responsibilities of grain buyers and sellers 
 19.5   established in this chapter.  A contract shall also include the 
 19.6   following statement in not less than ten point, all capital 
 19.7   type, framed in a box with space provided for the seller's 
 19.8   signature:  "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF 
 19.9   CREDIT.  THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S 
 19.10  BOND."  If a written contract is provided at the time the grain 
 19.11  is delivered to the grain buyer, the seller shall sign the 
 19.12  contract in the space provided beneath the statement.  Any 
 19.13  transaction that does not meet all the provisions of a voluntary 
 19.14  extension of credit, including the issuance and signing of a 
 19.15  voluntary extension of credit contract, is a cash sale. 
 19.16     Sec. 28.  Minnesota Statutes 1998, section 232.21, is 
 19.17  amended by adding a subdivision to read: 
 19.18     Subd. 14.  [OPEN STORAGE.] "Open storage" means grain or 
 19.19  agricultural products received by a warehouse operator from a 
 19.20  depositor for which warehouse receipts have not been issued or a 
 19.21  purchase made and the records documented accordingly. 
 19.22     Sec. 29.  Minnesota Statutes 1998, section 232.23, 
 19.23  subdivision 3, is amended to read: 
 19.24     Subd. 3.  [GRAIN DELIVERED CONSIDERED SOLD STORED.] All 
 19.25  grain delivered to a public grain warehouse operator shall be 
 19.26  considered sold stored at the time of delivery, unless 
 19.27  arrangements have been made with the public grain warehouse 
 19.28  operator prior to or at the time of delivery to apply the grain 
 19.29  on contract, for shipment or consignment or for storage cash 
 19.30  sale.  Grain may be held in open storage or placed on a 
 19.31  warehouse receipt.  Warehouse receipts must be issued for all 
 19.32  grain held in open storage within six months of delivery to the 
 19.33  warehouse unless the depositor has signed a statement that the 
 19.34  depositor does not desire a warehouse receipt.  The warehouse 
 19.35  operator's tariff applies for any grain that is retained in open 
 19.36  storage or under warehouse receipt.  
 20.1      Sec. 30.  Minnesota Statutes 1998, section 232.23, 
 20.2   subdivision 6, is amended to read: 
 20.3      Subd. 6.  [LIABILITY.] A public grain warehouse 
 20.4   operator issuing a grain warehouse receipt is liable to the 
 20.5   depositor for the delivery of the kind, grade, and net quantity 
 20.6   of grain called for by the grain warehouse receipt or scale 
 20.7   ticket marked "store".  
 20.8      Sec. 31.  [REPEALER.] 
 20.9      Minnesota Statutes 1998, section 31A.28, is repealed.