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