1.1                          A bill for an act 
  1.2             relating to agriculture; making the farmer-lender 
  1.3             mediation program permanent; providing for uniformity 
  1.4             in meat and poultry inspection; updating certain food 
  1.5             standards; simplifying certain language; changing the 
  1.6             scope of the value-added agricultural product 
  1.7             processing and marketing grant program; changing 
  1.8             meeting provisions and duties of the board of grain 
  1.9             standards; changing certain fees; changing certain 
  1.10            requirements for handling eggs; changing eligibility 
  1.11            and maximum loan amounts for certain rural finance 
  1.12            authority loan programs; increasing the amount of 
  1.13            livestock dealer bonds; clarifying status of certain 
  1.14            grain buying transactions; changing certain grain 
  1.15            storage provisions; making technical changes to 
  1.16            pesticide and fertilizer laws; providing feedlot 
  1.17            permit timelines; changing definitions under the 
  1.18            wholesale produce dealer act; amending Minnesota 
  1.19            Statutes 1998, sections 17.101, subdivision 5; 17A.05, 
  1.20            subdivision 2; 17B.07; 17B.12; 18.023, subdivision 3a; 
  1.21            18B.07, subdivision 2; 18C.005, subdivision 34, and by 
  1.22            adding a subdivision; 18C.215, subdivisions 1, 2, and 
  1.23            by adding a subdivision; 18C.411, subdivision 1; 
  1.24            18C.421, subdivision 1; 18D.201, subdivision 3; 27.01, 
  1.25            subdivision 8, and by adding a subdivision; 27.19, 
  1.26            subdivision 1; 29.23, subdivisions 2, 3, and 4; 29.26; 
  1.27            31.101, as amended; 31.102, subdivision 1; 31.103, 
  1.28            subdivision 1; 31.104; 31.632; 31.633, subdivision 1; 
  1.29            31.651; 31A.02, subdivisions 5, 6, 10, 13, and 14; 
  1.30            31A.03; 31A.05; 31A.06; 31A.07, subdivisions 1 and 2; 
  1.31            31A.08; 31A.10; 31A.13; 31A.16; 31A.17; 41B.03, 
  1.32            subdivisions 1 and 2; 41B.039, subdivision 2; 41B.04, 
  1.33            subdivision 8; 41B.042, subdivision 4; 41B.043, 
  1.34            subdivision 2; 41B.045, subdivision 2; 223.17, 
  1.35            subdivision 5; 223.175; 232.21, by adding a 
  1.36            subdivision; and 232.23, subdivisions 3 and 6; 
  1.37            Minnesota Statutes 1999 Supplement, sections 17B.15, 
  1.38            subdivision 1; 28A.075; 31A.01; 31A.15, subdivision 1; 
  1.39            and 116.07, subdivision 7; proposing coding for new 
  1.40            law in Minnesota Statutes, chapter 17; repealing 
  1.41            Minnesota Statutes 1998, section 583.21; Laws 1986, 
  1.42            chapter 398, article 1, section 18, as amended. 
  1.43  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.44                             ARTICLE 1 
  2.1                       FARMER-LENDER MEDIATION 
  2.2      Section 1.  [REPEALER.] 
  2.3      (a) Minnesota Statutes 1998, section 583.21, is repealed. 
  2.4      (b) Laws 1986, chapter 398, article 1, section 18, as 
  2.5   amended by Laws 1987, chapter 292, section 37; Laws 1989, 
  2.6   chapter 350, article 16, section 8; Laws 1990, chapter 525, 
  2.7   section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
  2.8   Special Session chapter 2, article 6, section 2; Laws 1995, 
  2.9   chapter 212, article 2, section 11; Laws 1997, chapter 183, 
  2.10  article 3, section 29; Laws 1998, chapter 395, section 7; Laws 
  2.11  1998, chapter 402, section 6; and Laws 1999, chapter 214, 
  2.12  article 2, section 19, is repealed. 
  2.13     Sec. 2.  [EFFECTIVE DATE.] 
  2.14     Section 1 is effective the day following final enactment. 
  2.15                             ARTICLE 2 
  2.16                   CERTIFICATIONS AND INSPECTIONS 
  2.17     Section 1.  [17.1025] [MINNESOTA CERTIFICATION PROGRAM.] 
  2.18     In cooperation with the University of Minnesota, the 
  2.19  department of trade and economic development, and the board of 
  2.20  animal health, the commissioner shall establish a pilot program 
  2.21  to certify agricultural production methods and agricultural 
  2.22  products grown or processed within the state to assure the 
  2.23  integrity of claims made by participating businesses.  The 
  2.24  commissioner may select and cooperate with private organizations 
  2.25  that have established procedures and safeguards to justify 
  2.26  claimed characteristics of the production process or the final 
  2.27  certified product to conduct certification activities for third 
  2.28  party producers. 
  2.29     The commissioner may establish guidelines for the 
  2.30  certification program, which are not subject to chapter 14.  The 
  2.31  commissioner shall submit a report on the pilot program to the 
  2.32  legislature by February 1, 2001. 
  2.33     Sec. 2.  Minnesota Statutes 1998, section 27.01, 
  2.34  subdivision 8, is amended to read: 
  2.35     Subd. 8.  [WHOLESALE PRODUCE DEALER.] (a) "Wholesale 
  2.36  produce dealer" or "dealer at wholesale" means:  
  3.1      (1) a person who buys or contracts to buy produce in 
  3.2   wholesale lots for resale; 
  3.3      (2) a person engaging in the business of a broker or agent, 
  3.4   who handles or deals in produce for a commission or fee; 
  3.5      (3) a truck owner or operator who buys produce in wholesale 
  3.6   lots for resale; and 
  3.7      (4) a person engaged in the business of a cannery, food 
  3.8   manufacturer, or food processor, who purchases produce in 
  3.9   wholesale lots as a part of that business; and 
  3.10     (5) a person who contracts with a producer to grow, raise, 
  3.11  or provide produce in Minnesota.  
  3.12     (b) For purposes of paragraph (a), "wholesale lots" means 
  3.13  purchases from Minnesota sellers must total more than $12,000 
  3.14  annually. 
  3.15     (c) "Wholesale produce dealer" or "dealer at wholesale" 
  3.16  does not include:  
  3.17     (1) a truck owner and operator who regularly engages in the 
  3.18  business of transporting freight, including produce, for a 
  3.19  transportation fee only, and who does not purchase, contract to 
  3.20  purchase, or sell produce; 
  3.21     (2) a marketing cooperative association in which 
  3.22  substantially all of the voting stock is held by patrons who 
  3.23  patronize the association and in which at least 75 percent of 
  3.24  the business of the association is transacted with member or 
  3.25  stockholder patrons; 
  3.26     (3) a person who purchases Minnesota seasonally grown 
  3.27  perishable fresh fruits and vegetables, and pays cash, including 
  3.28  lawful money of the United States, a cashier's check, a 
  3.29  certified check, or a bank draft; 
  3.30     (4) a person who handles and deals in only canned, 
  3.31  packaged, or processed produce or packaged dairy products that 
  3.32  are no longer perishable as determined by the commissioner by 
  3.33  rule; or 
  3.34     (5) retail merchants who purchase produce, defined in 
  3.35  subdivision 2, directly from farmers, which in the aggregate 
  3.36  does not exceed $500 per month.  
  4.1      Sec. 3.  Minnesota Statutes 1998, section 27.01, is amended 
  4.2   by adding a subdivision to read: 
  4.3      Subd. 11.  [PRODUCER.] "Producer" means a person who 
  4.4   produces or causes to be produced produce in a quantity beyond 
  4.5   the person's own family use. 
  4.6      Sec. 4.  Minnesota Statutes 1998, section 27.19, 
  4.7   subdivision 1, is amended to read: 
  4.8      Subdivision 1.  [PROHIBITED ACTS.] (a) A person subject to 
  4.9   the provisions of this section and sections 27.01 to 27.14 may 
  4.10  not:  
  4.11     (1) operate or advertise to operate as a dealer at 
  4.12  wholesale without a license; 
  4.13     (2) make any false statement or report as to the grade, 
  4.14  condition, markings, quality, or quantity of produce, as defined 
  4.15  in section 27.069, received or delivered, or act in any manner 
  4.16  to deceive a consignor or purchaser; 
  4.17     (3) refuse to accept a shipment contracted for by the 
  4.18  person, unless the refusal is based upon the showing of a state 
  4.19  inspection certificate secured with reasonable promptness after 
  4.20  the receipt of the shipment showing that the kind and quality of 
  4.21  produce, as defined in section 27.069, is other than that 
  4.22  purchased or ordered by the person; 
  4.23     (4) fail to account or make a settlement for produce within 
  4.24  the required time; 
  4.25     (5) violate or fail to comply with the terms or conditions 
  4.26  of a contract entered into by the person for the purchase 
  4.27  production or sale of produce; 
  4.28     (6) purchase for a person's own account any produce 
  4.29  received on consignment, either directly or indirectly, without 
  4.30  the consent of the consignor; 
  4.31     (7) issue a false or misleading market quotation, or cancel 
  4.32  a quotation during the period advertised by the person; 
  4.33     (8) increase the sales charges on produce shipped to the 
  4.34  person by means of "dummy" or fictitious sales; 
  4.35     (9) receive decorative forest products and the products of 
  4.36  farms and waters from foreign states or countries for sale or 
  5.1   resale, either within or outside of the state, and give the 
  5.2   purchaser the impression, through any method of advertising or 
  5.3   description, that the produce is of Minnesota origin; 
  5.4      (10) fail to notify in writing all suppliers of produce of 
  5.5   the protection afforded to suppliers by the person's licensee 
  5.6   bond, including:  availability of a bond, notice requirements, 
  5.7   and any other conditions of the bond; 
  5.8      (11) make a false statement to the commissioner on an 
  5.9   application for license or bond or in response to written 
  5.10  questions from the commissioner regarding the license or bond; 
  5.11     (12) commit to pay and not pay in full for all produce 
  5.12  committed for.  A processor may not pay an amount less than the 
  5.13  full contract price if the crop produced is satisfactory for 
  5.14  processing and is not harvested for reasons within the 
  5.15  processor's control.  If the processor sets the date for 
  5.16  planting, bunching, unusual yields, and a processor's inability 
  5.17  or unwillingness to harvest must be considered to be within the 
  5.18  processor's control.  Under this clause growers must be 
  5.19  compensated for passed acreage at the same rate for grade and 
  5.20  yield as they would have received had the crop been harvested in 
  5.21  a timely manner minus any contractual provision for green manure 
  5.22  or feed value.  Both parties are excused from payment or 
  5.23  performance for crop conditions that are beyond the control of 
  5.24  the parties; or 
  5.25     (13) discriminate between different sections, localities, 
  5.26  communities, or cities, or between persons in the same 
  5.27  community, by purchasing produce from farmers of the same grade, 
  5.28  quality, and kind, at different prices, except that price 
  5.29  differentials are allowed if directly related to the costs of 
  5.30  transportation, shipping, and handling of the produce and a 
  5.31  person is allowed to meet the prices of a competitor in good 
  5.32  faith, in the same locality for the same grade, quality, and 
  5.33  kind of produce.  A showing of different prices by the 
  5.34  commissioner is prima facie evidence of discrimination.  
  5.35     (b) A separate violation occurs with respect to each 
  5.36  different person involved, each purchase or transaction 
  6.1   involved, and each false statement. 
  6.2      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  6.3   28A.075, is amended to read: 
  6.4      28A.075 [DELEGATION TO LOCAL BOARD OF HEALTH.] 
  6.5      (a) At the request of a local board of health that licensed 
  6.6   and inspected grocery and convenience stores on January 1, 1999, 
  6.7   the commissioner must enter into agreements before January 1, 
  6.8   2001, with local boards of health to delegate to the appropriate 
  6.9   local board of health the licensing and inspection duties of the 
  6.10  commissioner pertaining to retail food handlers that are grocery 
  6.11  or convenience stores.  At the request of a local board of 
  6.12  health that licensed and inspected part of any grocery or 
  6.13  convenience store on January 1, 1999, the commissioner must 
  6.14  enter into agreements before July 1, 2001, with local boards of 
  6.15  health to delegate to the appropriate local board of health the 
  6.16  licensing and inspection duties of the commissioner pertaining 
  6.17  to retail food handlers that are grocery or convenience stores.  
  6.18  Retail grocery or convenience stores inspected under the state 
  6.19  meat inspection program of chapter 31A are exempt from 
  6.20  delegation. 
  6.21     (b) A local board of health must adopt an ordinance 
  6.22  consistent with the Minnesota Food Code, Minnesota Rules, 
  6.23  chapter 4626, for all of its jurisdiction to regulate grocery 
  6.24  and convenience stores and the ordinance (Food Code) must not be 
  6.25  in conflict with standards set in law or rule. 
  6.26     Sec. 6.  Minnesota Statutes 1998, section 31.632, is 
  6.27  amended to read: 
  6.28     31.632 [MINNESOTA APPROVED MEATS; USE OF LABEL.] 
  6.29     The commissioner may authorize, pursuant to rules 
  6.30  promulgated in the manner provided by law, the use of the label 
  6.31  "Minnesota Approved" on meats and, meat products, poultry, and 
  6.32  poultry products processed by persons licensed under sections 
  6.33  31.51 to 31.58, or by establishments under the inspection 
  6.34  program of the United States Department of Agriculture, if the 
  6.35  ingredients of such the poultry, poultry products, meats, and 
  6.36  meat products are meat, meat by-products, poultry, poultry 
  7.1   products, or meat food products which have been inspected and 
  7.2   passed by the United States Department of Agriculture, or the 
  7.3   Minnesota department of agriculture and further if such the 
  7.4   poultry, poultry products, meats, and meat products, after such 
  7.5   processing, are sound, healthful, wholesome, and fit for human 
  7.6   food.  A person or establishment desiring to label poultry, 
  7.7   poultry products, meats, and meat products as provided in this 
  7.8   section shall apply to the commissioner for authority to do so.  
  7.9   The commissioner shall grant this authority to the applicant if 
  7.10  the applicant complies with the provisions of this section and 
  7.11  rules promulgated pursuant to this section.  A person using the 
  7.12  label "Minnesota Approved" on poultry, poultry products, meat 
  7.13  and, or meat products contrary to law is guilty of a misdemeanor.
  7.14     Sec. 7.  Minnesota Statutes 1998, section 31.633, 
  7.15  subdivision 1, is amended to read: 
  7.16     Subdivision 1.  [MENU REQUIREMENT.] Any restaurant, eating 
  7.17  place, or other establishment serving meat or poultry in any 
  7.18  form to the public, which meat that has any filler or meat or 
  7.19  poultry substitute added to it or incorporated in it, shall 
  7.20  clearly and prominently indicate on its menu or bill of fare the 
  7.21  meat entrees that contain filler or meat or poultry substitutes. 
  7.22     Sec. 8.  Minnesota Statutes 1998, section 31.651, is 
  7.23  amended to read: 
  7.24     31.651 [KOSHER PRODUCTS, UNLAWFUL SALE.] 
  7.25     Subdivision 1.  [KOSHER REQUIREMENTS.] No person shall sell 
  7.26  or expose for sale any poultry, poultry products, meat, or meat 
  7.27  preparations and falsely represent the same to be kosher, 
  7.28  whether such poultry, poultry products, meat, or meat 
  7.29  preparations be raw or prepared for human consumption; nor shall 
  7.30  the person permit any such products or the contents of any 
  7.31  package or container to be labeled or to have inscribed thereon 
  7.32  the word "kosher" in any language unless such products shall 
  7.33  have been prepared or processed in accordance with orthodox 
  7.34  Hebrew religious requirements sanctioned by a recognized 
  7.35  rabbinical council.  
  7.36     Subd. 2.  [NOTICE REQUIRED.] Any person who sells or 
  8.1   exposes for sale in the same place of business both kosher and 
  8.2   nonkosher poultry, meat, or meat preparations, either raw or 
  8.3   prepared for human consumption, shall indicate on window signs 
  8.4   and all display advertising, in block letters at least four 
  8.5   inches in height, "kosher and nonkosher meat and poultry sold 
  8.6   here"; and shall display over each kind of poultry, meat, or 
  8.7   meat preparation so exposed a sign, in block letters at least 
  8.8   two inches in height, reading, "kosher meat," or "kosher 
  8.9   poultry," "nonkosher meat," or "nonkosher poultry," as the case 
  8.10  may be; provided that subdivision 2 shall not apply to persons 
  8.11  selling or offering for sale kosher poultry, poultry products, 
  8.12  meats, or meat products solely in separate consumer packages, 
  8.13  which have been prepackaged and properly labeled "kosher."  
  8.14     Subd. 3.  [PRESUMPTION.] Possession of nonkosher poultry, 
  8.15  poultry products, meat, or meat preparations in any place of 
  8.16  business shall be presumptive evidence that the person in 
  8.17  possession thereof exposes the same for sale.  
  8.18     Subd. 4.  [PRIMA FACIE EVIDENCE.] The absence of a duly 
  8.19  sanctioned kosher "plumba," mark, stamp, tag, brand, or label 
  8.20  from any poultry, poultry products, meat, meat preparation, or 
  8.21  food product shall be prima facie evidence that such product is 
  8.22  nonkosher.  
  8.23     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  8.24  31A.01, is amended to read: 
  8.25     31A.01 [POLICY.] 
  8.26     Meat, poultry, poultry food products, and meat food 
  8.27  products are an important source of the nation's total supply of 
  8.28  food.  It is essential in the public interest that the health 
  8.29  and welfare of consumers be protected by assuring that meat, 
  8.30  poultry, and meat food products distributed to them are 
  8.31  wholesome, unadulterated, and properly marked, labeled, and 
  8.32  packaged.  Unwholesome, adulterated, or misbranded meat, 
  8.33  poultry, poultry food products, or meat food products injure the 
  8.34  public welfare, destroy markets for wholesome, unadulterated, 
  8.35  and properly labeled and packaged meat, poultry, poultry food 
  8.36  products, and meat food products, and result in losses to 
  9.1   livestock producers and processors of meat, poultry, poultry 
  9.2   food products, and meat food products and injury to consumers.  
  9.3   Unwholesome, adulterated, mislabeled, or deceptively packaged 
  9.4   articles can be sold at lower prices and compete unfairly with 
  9.5   wholesome, unadulterated, and properly labeled and packaged 
  9.6   articles, to the detriment of consumers and the general public.  
  9.7      Regulation by the commissioner and cooperation between this 
  9.8   state and the United States under this chapter are appropriate 
  9.9   to protect the health and welfare of consumers and accomplish 
  9.10  the purposes of this chapter.  
  9.11     Sec. 10.  Minnesota Statutes 1998, section 31A.02, 
  9.12  subdivision 5, is amended to read: 
  9.13     Subd. 5.  [CUSTOM PROCESSING.] "Custom processing" means 
  9.14  slaughtering, eviscerating, dressing, or processing an animal or 
  9.15  processing meat products or poultry products for the owner of 
  9.16  the animal or of the meat products and poultry products, if all 
  9.17  meat products or poultry products derived from the custom 
  9.18  operation are returned to the owner of the animal or of the meat 
  9.19  products or poultry products.  No person may sell, offer for 
  9.20  sale, or possess with intent to sell meat derived from custom 
  9.21  processing. 
  9.22     Sec. 11.  Minnesota Statutes 1998, section 31A.02, 
  9.23  subdivision 6, is amended to read: 
  9.24     Subd. 6.  [MEAT BROKER.] "Meat broker" means a person in 
  9.25  the business of buying or selling carcasses, parts of carcasses, 
  9.26  meat, or meat food products, poultry, or poultry products of 
  9.27  animals on commission, or otherwise negotiating purchases or 
  9.28  sales of those articles other than for the person's own account 
  9.29  or as an employee of another person, firm, or corporation.  
  9.30     Sec. 12.  Minnesota Statutes 1998, section 31A.02, 
  9.31  subdivision 10, is amended to read: 
  9.32     Subd. 10.  [MEAT FOOD PRODUCT; POULTRY FOOD PRODUCT.] "Meat 
  9.33  food product" or "poultry food product" means a product usable 
  9.34  as human food and made wholly or in part from meat or poultry or 
  9.35  a portion of the carcass of cattle, sheep, swine, poultry, 
  9.36  farmed cervidae, as defined in section 17.451, subdivision 2, 
 10.1   llamas, as defined in section 17.455, subdivision 2, ratitae, as 
 10.2   defined in section 17.453, subdivision 3, or goats.  "Meat food 
 10.3   product" or "poultry food product" does not include products 
 10.4   which contain meat, poultry, or other portions of the carcasses 
 10.5   of cattle, sheep, swine, farmed cervidae, llamas, ratitae, or 
 10.6   goats only in a relatively small proportion or that historically 
 10.7   have not been considered by consumers as products of the meat 
 10.8   food industry, and which are exempted from definition as a meat 
 10.9   food product or poultry food product by the commissioner under 
 10.10  the conditions the commissioner prescribes to assure that the 
 10.11  meat or other portions of carcasses contained in the products 
 10.12  are not adulterated and that the products are not represented as 
 10.13  meat food products or poultry food products.  
 10.14     "Meat food product," as applied to products of equines, has 
 10.15  a meaning comparable to that for cattle, sheep, swine, farmed 
 10.16  cervidae, llamas, ratitae, and goats. 
 10.17     Sec. 13.  Minnesota Statutes 1998, section 31A.02, 
 10.18  subdivision 13, is amended to read: 
 10.19     Subd. 13.  [ADULTERATED.] "Adulterated" means a carcass, 
 10.20  part of a carcass, meat, poultry, poultry food product, or meat 
 10.21  food product under one or more of the following circumstances: 
 10.22     (a) if it bears or contains a poisonous or harmful 
 10.23  substance which may render it injurious to health; but if the 
 10.24  substance is not an added substance, the article is not 
 10.25  adulterated if the quantity of the substance in or on the 
 10.26  article does not ordinarily make it injurious to health; 
 10.27     (b) if it bears or contains, by administration of a 
 10.28  substance to the live animal or otherwise, an added poisonous or 
 10.29  harmful substance, other than (1) a pesticide chemical in or on 
 10.30  a raw agricultural commodity; (2) a food additive; or (3) a 
 10.31  color additive, which may, in the judgment of the commissioner, 
 10.32  make the article unfit for human food; 
 10.33     (c) if it is, in whole or in part, a raw agricultural 
 10.34  commodity that bears or contains a pesticide chemical which is 
 10.35  unsafe within the meaning of section 408 of the Federal Food, 
 10.36  Drug, and Cosmetic Act; 
 11.1      (d) if it bears or contains a food additive which is unsafe 
 11.2   within the meaning of section 409 of the Federal Food, Drug, and 
 11.3   Cosmetic Act; 
 11.4      (e) if it bears or contains a color additive which is 
 11.5   unsafe within the meaning of section 706 of the Federal Food, 
 11.6   Drug, and Cosmetic Act; 
 11.7      (f) if it contains a filthy, putrid, or decomposed 
 11.8   substance or is for any other reason unfit for human food; 
 11.9      (g) if it has been prepared, packed, or held under 
 11.10  unsanitary conditions so that it may be contaminated with filth 
 11.11  or harmful to health; 
 11.12     (h) if it is wholly or partly the product of an animal 
 11.13  which has died otherwise than by slaughter; 
 11.14     (i) if its container is wholly or partly composed of a 
 11.15  poisonous or harmful substance which may make the contents 
 11.16  harmful to health; 
 11.17     (j) if it has been intentionally subjected to radiation, 
 11.18  unless the use of the radiation conformed with a regulation or 
 11.19  exemption in effect under section 409 of the Federal Food, Drug, 
 11.20  and Cosmetic Act; 
 11.21     (k) if a valuable constituent has been wholly or partly 
 11.22  omitted or removed from it; if a substance has been wholly or 
 11.23  partly substituted for it; if damage or inferiority has been 
 11.24  concealed; or if a substance has been added to it or mixed or 
 11.25  packed with it so as to increase its bulk or weight, reduce its 
 11.26  quality or strength, or make it appear better or of greater 
 11.27  value than it is; or 
 11.28     (l) if it is margarine containing animal fat and any of the 
 11.29  raw material used in it wholly or partly consisted of a filthy, 
 11.30  putrid, or decomposed substance.  
 11.31     Sec. 14.  Minnesota Statutes 1998, section 31A.02, 
 11.32  subdivision 14, is amended to read: 
 11.33     Subd. 14.  [MISBRANDED.] "Misbranded" means a carcass, part 
 11.34  of a carcass, meat, poultry, poultry food product, or meat food 
 11.35  product under one or more of the following circumstances: 
 11.36     (a) if its labeling is false or misleading; 
 12.1      (b) if it is offered for sale under the name of another 
 12.2   food; 
 12.3      (c) if it is an imitation of another food, unless its label 
 12.4   bears, in type of uniform size and prominence, the word 
 12.5   "imitation" followed immediately by the name of the food 
 12.6   imitated; 
 12.7      (d) if its container is made, formed, or filled so as to be 
 12.8   misleading; 
 12.9      (e) if its package or other container does not have a label 
 12.10  showing (1) the name and place of business of the manufacturer, 
 12.11  packer, or distributor; and (2) an accurate statement of the 
 12.12  quantity of the contents in terms of weight, measure, or 
 12.13  numerical count subject to reasonable variations permitted and 
 12.14  exemptions for small packages established in rules of the 
 12.15  commissioner; 
 12.16     (f) if a word, statement, or other information required by 
 12.17  or under authority of this chapter to appear on the label or 
 12.18  other labeling is not prominently and conspicuously placed on 
 12.19  the label or labeling in terms that make it likely to be read 
 12.20  and understood by the ordinary individual under customary 
 12.21  conditions of purchase and use; 
 12.22     (g) if it is represented as a food for which a definition 
 12.23  and standard of identity or composition has been prescribed by 
 12.24  rules of the commissioner under section 31A.07, unless (1) it 
 12.25  conforms to the definition and standard, and (2) its label bears 
 12.26  the name of the food specified in the definition and standard 
 12.27  and, if required by the rules, the common names of optional 
 12.28  ingredients, other than spices, flavoring, and coloring, present 
 12.29  in the food; 
 12.30     (h) if it is represented as a food for which a standard of 
 12.31  fill of container has been prescribed by rules of the 
 12.32  commissioner under section 31A.07, and it falls below the 
 12.33  applicable standard of fill of container, unless its label 
 12.34  bears, in the manner and form the rules specify, a statement 
 12.35  that it falls below the standard; 
 12.36     (i) if it is not subject to paragraph (g), unless its label 
 13.1   bears (1) the usual name of the food, if there is one, and (2) 
 13.2   in case it is fabricated from two or more ingredients, the 
 13.3   common or usual name of each ingredient; except that spices, 
 13.4   flavorings, and colorings may, when authorized by the 
 13.5   commissioner, be designated as spices, flavorings, and colorings 
 13.6   without naming each.  To the extent that compliance with clause 
 13.7   (2) is impracticable, or results in deception or unfair 
 13.8   competition, the commissioner shall establish exemptions by 
 13.9   rule; 
 13.10     (j) if it purports to be or is represented for special 
 13.11  dietary uses, unless its label bears the information concerning 
 13.12  its vitamin, mineral, and other dietary properties that the 
 13.13  commissioner, after consultation with the Secretary of 
 13.14  Agriculture of the United States, determines by rule to be 
 13.15  necessary to inform purchasers of its value for special dietary 
 13.16  uses; 
 13.17     (k) if it bears or contains any artificial flavoring, 
 13.18  artificial coloring, or chemical preservative, unless it bears 
 13.19  labeling stating that fact; 
 13.20     (l) if it fails to bear, directly or on its container, as 
 13.21  the commissioner by rule prescribes, the inspection legend and 
 13.22  other information the commissioner may require by rule to assure 
 13.23  that it will not have false or misleading labeling and that the 
 13.24  public will be told how to keep the article wholesome.  
 13.25     Sec. 15.  Minnesota Statutes 1998, section 31A.03, is 
 13.26  amended to read: 
 13.27     31A.03 [INSPECTION OF LIVE ANIMALS; DISPOSITION OF 
 13.28  DEFECTIVE ANIMALS.] 
 13.29     To prevent the use in intrastate commerce of adulterated 
 13.30  meat and, meat food products, poultry, and poultry food 
 13.31  products, the commissioner shall appoint inspectors and have 
 13.32  them examine and inspect all animals before the animals enter a 
 13.33  slaughtering, packing, meat canning, rendering, or similar 
 13.34  establishment in this state in which slaughtering of animals and 
 13.35  preparation of meat and, meat food products, poultry, and 
 13.36  poultry food products are conducted solely for intrastate 
 14.1   commerce.  Animals found on inspection to show symptoms of 
 14.2   disease must be set apart and slaughtered separately from other 
 14.3   animals.  The carcasses of those animals must be carefully 
 14.4   examined and inspected under rules of the commissioner.  
 14.5      Sec. 16.  Minnesota Statutes 1998, section 31A.05, is 
 14.6   amended to read: 
 14.7      31A.05 [APPLICATION OF INSPECTION PROVISIONS.] 
 14.8      Sections 31A.03 and 31A.04 apply to carcasses or parts of 
 14.9   animals, poultry, or poultry food products, and meat or meat 
 14.10  products derived from them that are usable as human food, when 
 14.11  these items are brought into a slaughtering, meat canning, 
 14.12  salting, packing, rendering, or similar establishment, where 
 14.13  inspection under sections 31A.01 to 31A.16 is done.  Examination 
 14.14  and inspection must be made before the carcasses or animal parts 
 14.15  may enter into a department where they are to be treated and 
 14.16  prepared for meat food products or poultry food products. 
 14.17     Sections 31A.03 and 31A.04 also apply to products which, 
 14.18  after having been issued from a slaughtering, meat canning, 
 14.19  salting, packing, rendering, or similar establishment, must be 
 14.20  returned to it or to a similar establishment where inspection is 
 14.21  done. 
 14.22     The commissioner may limit the entry of carcasses, parts of 
 14.23  carcasses, poultry, poultry food products, meat and, meat food 
 14.24  products, and other materials into an establishment where 
 14.25  inspection under sections 31A.01 to 31A.16 is done to conditions 
 14.26  the commissioner prescribes to assure that allowing the entry of 
 14.27  articles into inspected establishments is consistent with the 
 14.28  purposes of this chapter.  
 14.29     Sec. 17.  Minnesota Statutes 1998, section 31A.06, is 
 14.30  amended to read: 
 14.31     31A.06 [INSPECTORS' DUTIES.] 
 14.32     The commissioner shall appoint inspectors to examine and 
 14.33  inspect poultry food products and meat food products prepared in 
 14.34  a slaughtering, meat canning, salting, packing, rendering, or 
 14.35  similar establishment, where the articles are prepared solely 
 14.36  for intrastate commerce.  For examination and inspection 
 15.1   purposes, the inspectors must be given access at all times, 
 15.2   whether the establishment is operated or not, to every part of 
 15.3   the establishment.  The inspectors shall mark, stamp, tag, or 
 15.4   label as "Minnesota Inspected and Passed" all products found to 
 15.5   be unadulterated, and the inspectors shall label, mark, stamp, 
 15.6   or tag as "Minnesota Inspected and Condemned" all products found 
 15.7   to be adulterated.  Condemned meat food products or poultry food 
 15.8   products must be destroyed for food purposes under section 
 15.9   31A.04.  The commissioner may remove inspectors from an 
 15.10  establishment which fails to destroy condemned poultry food 
 15.11  products or meat food products.  
 15.12     Sec. 18.  Minnesota Statutes 1998, section 31A.07, 
 15.13  subdivision 1, is amended to read: 
 15.14     Subdivision 1.  [LABELING; PACKING.] When poultry, poultry 
 15.15  food products, meat, or a meat food product products prepared 
 15.16  for intrastate commerce which has have been inspected and marked 
 15.17  "Minnesota Inspected and Passed" is are placed or packed in a 
 15.18  can, pot, tin, canvas, or other receptacle or covering in an 
 15.19  establishment where inspection is done under sections 31A.01 to 
 15.20  31A.31, the person, firm, or corporation preparing the product 
 15.21  shall have a label attached to the can, pot, tin, canvas, or 
 15.22  other receptacle or covering, under supervision of an 
 15.23  inspector.  The label must state that the contents have been 
 15.24  "Minnesota Inspected and Passed" under sections 31A.01 to 
 15.25  31A.31.  An inspection or examination of poultry, poultry food 
 15.26  products, meat, or meat food products deposited or enclosed in 
 15.27  cans, tins, pots, canvas, or other receptacles or coverings in 
 15.28  an establishment where inspection is done under this chapter is 
 15.29  not complete until the poultry, poultry food products, meat, or 
 15.30  meat food products have been sealed or enclosed in the can, tin, 
 15.31  pot, canvas, or other receptacle or covering under the 
 15.32  supervision of an inspector.  
 15.33     Sec. 19.  Minnesota Statutes 1998, section 31A.07, 
 15.34  subdivision 2, is amended to read: 
 15.35     Subd. 2.  [LABELS; MARKS.] All carcasses, parts of 
 15.36  carcasses, poultry, poultry food products, meat, and meat food 
 16.1   products inspected at an establishment under this chapter and 
 16.2   found not to be adulterated, must when they leave the 
 16.3   establishment bear, directly or on their containers, legible 
 16.4   labels or official marks as required by the commissioner.  
 16.5      Sec. 20.  Minnesota Statutes 1998, section 31A.08, is 
 16.6   amended to read: 
 16.7      31A.08 [RULES.] 
 16.8      The commissioner shall have experts in sanitation or other 
 16.9   competent inspectors inspect all slaughtering, meat canning, 
 16.10  salting, packing, rendering, or similar establishments in which 
 16.11  animals are slaughtered and their poultry, poultry food 
 16.12  products, meat, and meat food products are prepared solely for 
 16.13  intrastate commerce.  The inspections must be conducted as 
 16.14  necessary for the commissioner to know the sanitary conditions 
 16.15  of the establishments, and to prescribe the rules of sanitation 
 16.16  under which the establishments must be maintained.  If an 
 16.17  establishment has sanitary conditions that allow poultry, 
 16.18  poultry food products, meat, or meat food products to become 
 16.19  adulterated, the commissioner shall refuse to allow the poultry, 
 16.20  poultry food products, meat, or meat food products to be 
 16.21  labeled, marked, stamped, or tagged as "Minnesota Inspected and 
 16.22  Passed."  
 16.23     Sec. 21.  Minnesota Statutes 1998, section 31A.10, is 
 16.24  amended to read: 
 16.25     31A.10 [PROHIBITIONS.] 
 16.26     No person may, with respect to an animal, carcass, part of 
 16.27  a carcass, poultry, poultry food product, meat, or meat food 
 16.28  product: 
 16.29     (1) slaughter an animal or prepare an article that is 
 16.30  usable as human food, at any establishment preparing articles 
 16.31  solely for intrastate commerce, except in compliance with this 
 16.32  chapter; 
 16.33     (2) sell, transport, offer for sale or transportation, or 
 16.34  receive for transportation, in intrastate commerce (i) articles 
 16.35  which are usable as human food and are adulterated or misbranded 
 16.36  at the time of sale, transportation, offer for sale or 
 17.1   transportation, or receipt for transportation; or (ii) articles 
 17.2   required to be inspected under sections 31A.01 to 31A.16 that 
 17.3   have not been inspected and passed; 
 17.4      (3) do something to an article that is usable as human food 
 17.5   while the article is being transported in intrastate commerce or 
 17.6   held for sale after transportation, which is intended to cause 
 17.7   or has the effect of causing the article to be adulterated or 
 17.8   misbranded; or 
 17.9      (4) sell, offer for sale, or possess with intent to sell 
 17.10  meat derived from custom processing.  
 17.11     Sec. 22.  Minnesota Statutes 1998, section 31A.13, is 
 17.12  amended to read: 
 17.13     31A.13 [INSPECTORS.] 
 17.14     The commissioner shall appoint inspectors to inspect 
 17.15  animals, whole or parts of carcasses, poultry, poultry food 
 17.16  products, meat, and meat food products the inspection of which 
 17.17  is provided for by law, and the sanitary conditions of all 
 17.18  establishments in which the poultry, poultry food products, 
 17.19  meat, and meat food products are prepared.  Inspectors shall 
 17.20  refuse to stamp, mark, tag, or label a whole or part of a 
 17.21  carcass or a meat food product derived from it, prepared in an 
 17.22  establishment covered by sections 31A.01 to 31A.12, until it has 
 17.23  actually been inspected and found to be not adulterated.  
 17.24  Inspectors shall perform other duties required by this chapter 
 17.25  or by rules adopted by the commissioner that are necessary for 
 17.26  the efficient execution of this chapter.  Inspections under this 
 17.27  chapter must conform to the rules adopted by the commissioner 
 17.28  consistent with this chapter.  
 17.29     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 17.30  31A.15, subdivision 1, is amended to read: 
 17.31     Subdivision 1.  [INSPECTION.] The provisions of sections 
 17.32  31A.01 to 31A.16 requiring inspection of the slaughter of 
 17.33  animals and the preparation of the carcasses, parts of 
 17.34  carcasses, meat, poultry, poultry food products, and meat food 
 17.35  products at establishments conducting slaughter and preparation 
 17.36  do not apply: 
 18.1      (1) to the processing by a person of the person's own 
 18.2   animals and the owner's preparation and transportation in 
 18.3   intrastate commerce of the carcasses, parts of carcasses, meat, 
 18.4   poultry, poultry food products, and meat food products of those 
 18.5   animals exclusively for use by the owner and members of the 
 18.6   owner's household, nonpaying guests, and employees; or 
 18.7      (2) to the custom processing by a person of cattle, sheep, 
 18.8   swine, poultry, or goats delivered by the owner for processing, 
 18.9   and the preparation or transportation in intrastate commerce of 
 18.10  the carcasses, parts of carcasses, meat, poultry, poultry food 
 18.11  products, and meat food products of animals, exclusively for use 
 18.12  in the household of the owner by the owner and members of the 
 18.13  owner's household, nonpaying guests, and employees.  Meat from 
 18.14  custom processing of cattle, sheep, swine, poultry, or goats 
 18.15  must be identified and handled as required by the commissioner, 
 18.16  during all phases of processing, chilling, cooling, freezing, 
 18.17  preparation, storage, and transportation.  The custom processor 
 18.18  may not engage in the business of buying or selling carcasses, 
 18.19  parts of carcasses, meat, poultry, poultry food products, or 
 18.20  meat food products of animals usable as human food unless the 
 18.21  carcasses, parts of carcasses, meat, poultry, poultry food 
 18.22  products, or meat food products have been inspected and passed 
 18.23  and are identified as inspected and passed by the Minnesota 
 18.24  department of agriculture or the United States Department of 
 18.25  Agriculture.  
 18.26     Sec. 24.  Minnesota Statutes 1998, section 31A.16, is 
 18.27  amended to read: 
 18.28     31A.16 [STORING AND HANDLING CONDITIONS.] 
 18.29     The commissioner may adopt rules prescribing conditions 
 18.30  under which carcasses, parts of carcasses, poultry, poultry food 
 18.31  products, meat, and meat food products of animals usable as 
 18.32  human food must be stored or otherwise handled by a person in 
 18.33  the business of buying, selling, freezing, storing, or 
 18.34  transporting them, in or for intrastate commerce, if the 
 18.35  commissioner considers action necessary to assure that the 
 18.36  articles will not be adulterated or misbranded when delivered to 
 19.1   the consumer.  
 19.2      Sec. 25.  Minnesota Statutes 1998, section 31A.17, is 
 19.3   amended to read: 
 19.4      31A.17 [ARTICLES NOT INTENDED AS HUMAN FOOD.] 
 19.5      Inspection must not be provided under sections 31A.01 to 
 19.6   31A.16 at an establishment for the slaughter of animals or the 
 19.7   preparation of carcasses or parts or products of animals which 
 19.8   are not intended for use as human food.  Before they are offered 
 19.9   for sale or transportation in intrastate commerce, those 
 19.10  articles must be denatured or otherwise identified as prescribed 
 19.11  by rules of the commissioner to deter their use for human food, 
 19.12  unless they are naturally inedible by humans.  No person may 
 19.13  buy, sell, transport, offer for sale or transportation, or 
 19.14  receive for transportation, in intrastate commerce, carcasses, 
 19.15  parts of carcasses, poultry, poultry food products, meat, or 
 19.16  meat food products of animals which are not intended for use as 
 19.17  human food unless they are denatured or otherwise identified as 
 19.18  required by the rules of the commissioner or are naturally 
 19.19  inedible by humans. 
 19.20     Sec. 26.  [EFFECTIVE DATE.] 
 19.21     Sections 1 to 25 are effective the day following final 
 19.22  enactment. 
 19.23                             ARTICLE 3 
 19.24                      UPDATING FOOD STANDARDS 
 19.25     Section 1.  Minnesota Statutes 1998, section 31.101, as 
 19.26  amended by Laws 1999, chapter 231, section 55, is amended to 
 19.27  read: 
 19.28     31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
 19.29     Subdivision 1.  [AUTHORITY.] The authority to commissioner 
 19.30  may promulgate and amend rules for the efficient administration 
 19.31  and enforcement of the Minnesota Food Law is vested in the 
 19.32  commissioner and is in addition to authority granted in sections 
 19.33  31.10, 31.11, and 31.12.  Such The rules when applicable shall 
 19.34  must conform, insofar as practicable and consistent with state 
 19.35  law, with those promulgated under the federal law.  This 
 19.36  rulemaking authority is in addition to that in sections 31.10, 
 20.1   31.11, and 31.12.  Rules adopted under this section may be 
 20.2   amended by the commissioner under chapter 14, subject to the 
 20.3   limitation in subdivision 7.  
 20.4      Subd. 2.  [HEARINGS.] Hearings authorized or required by 
 20.5   law shall must be conducted by the commissioner or such an 
 20.6   officer, agent, or employee as the commissioner may designate 
 20.7   designates for the purpose.  
 20.8      Subd. 3.  [FEDERAL PESTICIDE CHEMICAL REGULATIONS RULES.] 
 20.9   Federal pesticide chemical regulations and amendments thereto in 
 20.10  effect on April 1, 1997 2000, adopted under authority of the 
 20.11  Federal Insecticide, Fungicide and Rodenticide Act, as provided 
 20.12  by United States Code, title 7, chapter 6, are the pesticide 
 20.13  chemical rules in this state.  Such rules may be amended by the 
 20.14  commissioner proceeding in accordance with the Administrative 
 20.15  Procedure Act.  
 20.16     Subd. 4.  [FEDERAL FOOD ADDITIVE REGULATIONS RULES.] 
 20.17  Federal food additive regulations and amendments thereto in 
 20.18  effect on April 1, 1997 2000, as provided by Code of Federal 
 20.19  Regulations, title 21, parts 170 to 199, are the food additive 
 20.20  rules in this state.  Such rules may be amended by the 
 20.21  commissioner proceeding in accordance with the Administrative 
 20.22  Procedure Act.  
 20.23     Subd. 5.  [FEDERAL COLOR ADDITIVE REGULATIONS RULES.] 
 20.24  Federal color additive regulations and amendments thereto in 
 20.25  effect on April 1, 1997 2000, as provided by Code of Federal 
 20.26  Regulations, title 21, parts 70 to 82, are the color additive 
 20.27  rules in this state.  Such rules may be amended by the 
 20.28  commissioner proceeding in accordance with the Administrative 
 20.29  Procedure Act.  
 20.30     Subd. 6.  [FEDERAL SPECIAL DIETARY USE REGULATIONS RULES.] 
 20.31  Federal special dietary use regulations and amendments thereto 
 20.32  in effect on April 1, 1997 2000, as provided by Code of Federal 
 20.33  Regulations, title 21, parts 104 and 105, are the special 
 20.34  dietary use rules in this state.  Such rules may be amended by 
 20.35  the commissioner proceeding in accordance with the 
 20.36  Administrative Procedure Act.  
 21.1      Subd. 7.  [FAIR PACKAGING AND LABELING ACT REGULATIONS 
 21.2   RULES.] Federal regulations and amendments thereto in effect on 
 21.3   April 1, 1997 2000, adopted under the Fair Packaging and 
 21.4   Labeling Act, as provided by United States Code, title 15, 
 21.5   sections 1451 to 1461, are the rules in this state.  Such rules 
 21.6   may be amended by the commissioner proceeding in accordance with 
 21.7   the Administrative Procedure Act; provided that The commissioner 
 21.8   shall may not adopt amendments to such these rules or adopt 
 21.9   other rules which are contrary to the labeling requirements for 
 21.10  the net quantity of contents required pursuant to section 4 of 
 21.11  the Fair Packaging and Labeling Act and the 
 21.12  regulations promulgated thereunder adopted under that act.  
 21.13     Subd. 8.  [FOOD AND DRUGS REGULATIONS RULES.] Applicable 
 21.14  federal regulations including recodification contained in Code 
 21.15  of Federal Regulations, title 21, parts 0-1299, Food and Drugs, 
 21.16  in effect April 1, 1997 2000, and not otherwise adopted herein, 
 21.17  also are adopted as food rules of this state.  Such rules may be 
 21.18  amended by the commissioner in accordance with the 
 21.19  Administrative Procedure Act. 
 21.20     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
 21.21  effect on April 1, 1997 2000, as provided by Code of Federal 
 21.22  Regulations, title 50, parts 260 to 267, are incorporated as 
 21.23  part of the fishery products rules in this state for state 
 21.24  inspections performed under a cooperative agreement with the 
 21.25  United States Department of Commerce, National Marine Fisheries 
 21.26  Service.  The rules may be amended by the commissioner under 
 21.27  chapter 14. 
 21.28     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
 21.29  effect on January April 1, 1999 2000, as provided by Code of 
 21.30  Federal Regulations, title 9, part 301, et seq., are 
 21.31  incorporated as part of the meat and poultry rules in this 
 21.32  state.  The rules may be amended by the commissioner under 
 21.33  chapter 14. 
 21.34     Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
 21.35  OTHER PRODUCTS.] Federal regulations in effect on April 1, 
 21.36  1997 2000, as provided by Code of Federal Regulations, title 7, 
 22.1   parts 51 and 52, are incorporated as part of the rules in this 
 22.2   state.  The rules may be amended by the commissioner under 
 22.3   chapter 14. 
 22.4      Sec. 2.  Minnesota Statutes 1998, section 31.102, 
 22.5   subdivision 1, is amended to read: 
 22.6      Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
 22.7   RULES.] Federal definitions and standards of identity, quality, 
 22.8   and fill of container and amendments thereto, in effect on April 
 22.9   1, 1997 2000, adopted under authority of the federal act, are 
 22.10  the definitions and standards of identity, quality, and fill of 
 22.11  container in this state.  Such The rules may be amended by the 
 22.12  commissioner proceeding in accordance with the Administrative 
 22.13  Procedure Act under chapter 14.  
 22.14     Sec. 3.  Minnesota Statutes 1998, section 31.103, 
 22.15  subdivision 1, is amended to read: 
 22.16     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
 22.17  labels of consumer commodities shall must conform with the 
 22.18  requirements for the declaration of net quantity of contents of 
 22.19  section 4 of the Fair Packaging and Labeling Act (United States 
 22.20  Code, title 15, section 1451 et seq.) and federal regulations in 
 22.21  effect on April 1, 1997 2000, promulgated pursuant 
 22.22  thereto adopted under authority of that act, except to the 
 22.23  extent that the commissioner shall exercise authority to amend 
 22.24  such amends the rules in accordance with the Administrative 
 22.25  Procedure Act under chapter 14.  Consumer commodities exempted 
 22.26  from the requirements of section 4 of the Fair Packaging and 
 22.27  Labeling Act shall are also be exempt from this subdivision.  
 22.28     Sec. 4.  Minnesota Statutes 1998, section 31.104, is 
 22.29  amended to read: 
 22.30     31.104 [FOOD LABELING EXEMPTION RULES.] 
 22.31     The commissioner shall promulgate rules exempting from any 
 22.32  labeling requirement food which is, in accordance with the 
 22.33  practice of the trade, to be processed, labeled or repacked in 
 22.34  substantial quantities at establishments other than those where 
 22.35  originally processed or packed, on condition that such food is 
 22.36  not adulterated or misbranded upon removal from such processing, 
 23.1   labeling or repacking establishment.  
 23.2      Federal regulations in effect on April 1, 1997 2000, 
 23.3   adopted under authority of the federal act relating to such 
 23.4   exemptions are effective in this state unless the commissioner 
 23.5   shall exercise authority to amend such regulations amends them.  
 23.6   The commissioner also may promulgate amendments to amend 
 23.7   existing rules concerning exemptions in accordance with the 
 23.8   Administrative Procedure Act under chapter 14. 
 23.9                              ARTICLE 4 
 23.10                           GRANT PROGRAMS 
 23.11     Section 1.  Minnesota Statutes 1998, section 17.101, 
 23.12  subdivision 5, is amended to read: 
 23.13     Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
 23.14  MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
 23.15     (1) "agricultural commodity" means a material produced for 
 23.16  use in or as food, feed, seed, or fiber and includes crops for 
 23.17  fiber, food, oilseeds, seeds, livestock, livestock products, 
 23.18  dairy, dairy products, poultry, poultry products, and other 
 23.19  products or by-products of the farm produced for the same or 
 23.20  similar use, except ethanol; and 
 23.21     (2) "agricultural product processing facility" means land, 
 23.22  buildings, structures, fixtures, and improvements located or to 
 23.23  be located in Minnesota and used or operated primarily for the 
 23.24  processing or production of marketable products from 
 23.25  agricultural commodities produced in Minnesota.  
 23.26     (b) The commissioner shall establish and implement a 
 23.27  value-added agricultural product processing and marketing grant 
 23.28  program to help farmers finance new cooperatives that organize 
 23.29  for the purposes of operating agricultural product processing 
 23.30  facilities and for marketing activities related to the sale and 
 23.31  distribution of processed agricultural products.  
 23.32     (c) To be eligible for this program a grantee must:  
 23.33     (1) be a cooperative organized under chapter 308A; 
 23.34     (2) certify that all of the control and equity in the 
 23.35  cooperative is from farmers as defined in section 500.24, 
 23.36  subdivision 2, who are actively engaged in agricultural 
 24.1   commodity production; 
 24.2      (3) be operated primarily for the processing of 
 24.3   agricultural commodities produced in Minnesota; 
 24.4      (4) receive agricultural commodities produced primarily by 
 24.5   shareholders or members of the cooperative; and 
 24.6      (5) have no direct or indirect involvement in the 
 24.7   production of agricultural commodities.  
 24.8      (d) The commissioner may receive applications from and make 
 24.9   grants up to $50,000 for feasibility, marketing 
 24.10  analysis, assistance with organizational development, financing 
 24.11  and managing new cooperatives, product development, development 
 24.12  of business and marketing plans, and predesign of 
 24.13  facilities including site analysis, development of bid 
 24.14  specifications, preliminary blueprints and schematics, and 
 24.15  completion of purchase agreements and other necessary legal 
 24.16  documents to eligible cooperatives.  The commissioner shall give 
 24.17  priority to applicants who use the grants for planning costs 
 24.18  related to an application for financial assistance from the 
 24.19  United States Department of Agriculture, Rural Business - 
 24.20  Cooperative Service. 
 24.21     Sec. 2.  Minnesota Statutes 1998, section 18.023, 
 24.22  subdivision 3a, is amended to read: 
 24.23     Subd. 3a.  [GRANTS TO MUNICIPALITIES.] (a) The commissioner 
 24.24  may, in the name of the state and within the limit of 
 24.25  appropriations provided, make grants-in-aid to a municipality 
 24.26  with an approved disease control program for the partial funding 
 24.27  of municipal sanitation and reforestation programs to replace 
 24.28  trees lost to disease or natural disaster.  The commissioner may 
 24.29  make grants-in-aid to any home rule charter or statutory city, 
 24.30  or any special purpose park and recreation board organized under 
 24.31  a charter of a city of the first class or any nonprofit 
 24.32  corporation serving a city of the first class or any county 
 24.33  having an approved disease control program for the acquisition 
 24.34  or implementation of a wood utilization or disposal system. 
 24.35     (b) The commissioner shall promulgate rules for the 
 24.36  administration of grants authorized by this subdivision.  The 
 25.1   rules shall establish and contain as a minimum: 
 25.2      (1) Procedures for grant applications; 
 25.3      (2) Conditions and procedures for the administration of 
 25.4   grants; 
 25.5      (3) Criteria of eligibility for grants including, but not 
 25.6   limited to, those specified in this subdivision; and 
 25.7      (4) Other matters the commissioner may find necessary to 
 25.8   the proper administration of the grant program. 
 25.9      (c) Grants-in-aid payments for wood utilization and 
 25.10  disposal systems made by the commissioner pursuant to this 
 25.11  subdivision shall not exceed 50 percent of the total cost of the 
 25.12  system.  Grants for sanitation and reforestation shall be 
 25.13  combined into one grant program.  Grants to any municipality for 
 25.14  sanitation shall not exceed 50 percent of sanitation costs 
 25.15  approved by the commissioner including any amount of sanitation 
 25.16  costs paid by special assessments, ad valorem taxes, federal 
 25.17  grants or other funds.  A municipality shall not specially 
 25.18  assess a property owner any amount greater than the amount of 
 25.19  the tree's sanitation cost minus the amount of the tree's 
 25.20  sanitation cost reimbursed by the commissioner.  Grants to 
 25.21  municipalities for reforestation shall not exceed 50 percent of 
 25.22  the cost, but not more than $50 per tree, of trees planted 
 25.23  pursuant to the reforestation program; provided that a 
 25.24  reforestation grant to any county may include 90 percent of the 
 25.25  cost, but not more than $60 per tree, of the first 50 trees 
 25.26  planted on public property in a town not described in 
 25.27  subdivision 1 and of less than 1,000 population upon the town's 
 25.28  application to the county.  Reforestation grants to towns and 
 25.29  home rule charter or statutory cities as described in 
 25.30  subdivision 1 of less than 4,000 population with an approved 
 25.31  disease control program may include 90 percent of the cost, but 
 25.32  not more than $60 per tree, of the first 50 trees planted on 
 25.33  public property with the approval of the 1979 application.  The 
 25.34  governing body of any municipality which receives a 
 25.35  reforestation grant pursuant to this section shall appoint up to 
 25.36  seven residents of the municipality or designate an existing 
 26.1   municipal board or committee to serve as a reforestation 
 26.2   advisory committee to advise the governing body of the 
 26.3   municipality in the administration of the reforestation 
 26.4   program.  For the purpose of this subdivision, "cost" shall not 
 26.5   include the value of a gift or dedication of trees required by a 
 26.6   municipal ordinance but shall include documented "in kind" 
 26.7   services or voluntary work for municipalities with a population 
 26.8   of less than 1,000 according to the most recent federal census. 
 26.9      (d) Based upon estimates submitted by the municipality to 
 26.10  the commissioner, which shall state the estimated costs of 
 26.11  sanitation and reforestation in the succeeding quarter under an 
 26.12  approved program, the commissioner shall direct quarterly 
 26.13  advance payments to be made by the state to the municipality 
 26.14  commencing April 1, 1979.  The commissioner shall direct 
 26.15  adjustment of any overestimate in a succeeding quarter.  A 
 26.16  municipality may elect to receive the proceeds of its sanitation 
 26.17  and reforestation grants on a periodic cost reimbursement basis. 
 26.18     (e) A home rule charter or statutory city, or county 
 26.19  outside the metropolitan area or any municipality, as defined in 
 26.20  subdivision 1, may submit an application for a grant authorized 
 26.21  by this subdivision concurrently with its request for approval 
 26.22  of a disease control program. 
 26.23                             ARTICLE 5 
 26.24                      BOARD OF GRAIN STANDARDS 
 26.25     Section 1.  Minnesota Statutes 1998, section 17B.07, is 
 26.26  amended to read: 
 26.27     17B.07 [OFFICIAL TITLE OF BOARD; MEETINGS.] 
 26.28     The official title of the board shall be "The Minnesota 
 26.29  board of grain standards" and it shall have jurisdiction over 
 26.30  all grain appeal cases brought before it.  
 26.31     The board shall meet annually on or before June 15, as 
 26.32  needed and shall establish the grades of all grain subject to 
 26.33  state inspection which shall be known as the "Minnesota grades," 
 26.34  and all grain received at any public warehouse shall be graded 
 26.35  accordingly.  Such grades shall not be changed before the next 
 26.36  annual meeting without the concurrence of at least two members 
 27.1   of the board.  At the time of establishing Minnesota grades, the 
 27.2   board also shall adopt such rules, in accordance with the 
 27.3   Administrative Procedure Act, as it deems necessary for the 
 27.4   enforcement of this section and section 17B.06.  In establishing 
 27.5   the grades, in addition to the physical qualities of the grain, 
 27.6   there shall be taken into consideration the milling and 
 27.7   bread-producing quality of all grain products used as human 
 27.8   food.  The board shall determine the grade, and dockage, if any, 
 27.9   of all grain in all cases where appeals from the decisions of 
 27.10  the chief inspector have been taken and for such purpose they 
 27.11  may request fresh samples of such grain to be furnished directly 
 27.12  to the board.  Dockage shall be considered as being of two 
 27.13  classes; first, that having value and second, that having no 
 27.14  value.  At the annual meeting the board shall ascertain and 
 27.15  determine what dockage contained in grain is of value and 
 27.16  publish a list thereof in connection with the publication of the 
 27.17  Minnesota grades.  Any foreign content of the grain shall not be 
 27.18  considered in establishing the grade.  Whenever grain containing 
 27.19  dockage of value is sold to any public local warehouse or mill, 
 27.20  terminal warehouse, or to any flour mill located in St. Paul, 
 27.21  Minneapolis, or Duluth, or any other point within the state, 
 27.22  which is now or may hereafter be designated as a terminal point, 
 27.23  such sale shall not be considered to include such dockage of 
 27.24  value, but such dockage shall be paid for at its market value or 
 27.25  shall be returned to the vendor of said grain at the option of 
 27.26  the vendee.  
 27.27     Sec. 2.  Minnesota Statutes 1998, section 17B.12, is 
 27.28  amended to read: 
 27.29     17B.12 [APPEALS; PROCEDURE.] 
 27.30     Any owner, consignee, or shipper of grain, or any warehouse 
 27.31  operator, who is dissatisfied with the inspection of grain may 
 27.32  appeal to the board of grain standards by filing a notice of 
 27.33  such appeal with the commissioner and paying a fee, to be fixed 
 27.34  by the commissioner, which shall be refunded if the appeal is 
 27.35  sustained.  The commissioner shall forthwith promptly transmit 
 27.36  the notice to said the board of grain standards.  The decision 
 28.1   of said the board, fixing the grade of such the grains shall 
 28.2   be is final.  
 28.3      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 28.4   17B.15, subdivision 1, is amended to read: 
 28.5      Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
 28.6   for inspection and weighing shall be fixed by the commissioner 
 28.7   and be a lien upon the grain.  The commissioner shall set fees 
 28.8   for all inspection and weighing in an amount adequate to pay the 
 28.9   expenses of carrying out and enforcing the purposes of sections 
 28.10  17B.01 to 17B.23, including the portion of general support costs 
 28.11  and statewide indirect costs of the agency attributable to that 
 28.12  function, with a reserve sufficient for up to six months.  The 
 28.13  commissioner shall review the fee schedule twice each year.  Fee 
 28.14  adjustments are not subject to chapter 14.  Payment shall be 
 28.15  required for services rendered.  If the grain is in transit, the 
 28.16  fees shall be paid by the carrier and treated as advance 
 28.17  charges, and, if received for storage, the fees shall be paid by 
 28.18  the warehouse operator, and added to the storage charges. 
 28.19     All fees collected and all fines and penalties for 
 28.20  violation of any provision of this chapter shall be deposited in 
 28.21  the grain inspection and weighing account, which is created in 
 28.22  the agricultural fund for carrying out the purpose of sections 
 28.23  17B.01 to 17B.23.  The money in the account, including interest 
 28.24  earned on the account, is annually appropriated to the 
 28.25  commissioner of agriculture to administer the provisions of 
 28.26  sections 17B.01 to 17B.23.  When money from any other account is 
 28.27  used to administer sections 17B.01 to 17B.23, the commissioner 
 28.28  shall notify the chairs of the agriculture, environment and 
 28.29  natural resources finance, and ways and means committees of the 
 28.30  house of representatives; the agriculture and rural development 
 28.31  and finance committees of the senate; and the finance division 
 28.32  of the environment and natural resources committee of the senate.
 28.33                             ARTICLE 6 
 28.34                       EGG HANDLING STANDARDS 
 28.35     Section 1.  Minnesota Statutes 1998, section 29.23, 
 28.36  subdivision 2, is amended to read: 
 29.1      Subd. 2.  [EQUIPMENT.] The commissioner shall also by rule 
 29.2   provide for minimum plant and equipment requirements for 
 29.3   candling, grading, handling and storing eggs, and shall define 
 29.4   candling.  Equipment in use before July 1, 1991, that does not 
 29.5   meet the design and fabrication requirements of this chapter may 
 29.6   remain in use if it is in good repair, capable of being 
 29.7   maintained in a sanitary condition, and capable of maintaining a 
 29.8   temperature of 50 degrees Fahrenheit (10 degrees Celsius) or 
 29.9   less. 
 29.10     Sec. 2.  Minnesota Statutes 1998, section 29.23, 
 29.11  subdivision 3, is amended to read: 
 29.12     Subd. 3.  [EGG TEMPERATURE.] Eggs must be held at a 
 29.13  temperature not to exceed 50 degrees Fahrenheit (10 degrees 
 29.14  Celsius) after being received by the egg handler except for 
 29.15  cleaning, sanitizing, grading, and further processing when they 
 29.16  must immediately be placed under refrigeration that is 
 29.17  maintained at 45 degrees Fahrenheit (7 degrees Celsius) or 
 29.18  below.  Eggs offered for retail sale must be held at a 
 29.19  temperature not to exceed 45 41 degrees Fahrenheit (7 5 degrees 
 29.20  Celsius).  After August 1, 1992, eggs offered for retail sale 
 29.21  must be held at a temperature not to exceed 45 degrees 
 29.22  Fahrenheit (7 degrees Celsius).  Equipment in use prior to 
 29.23  August 1, 1991, is not subject to this requirement.  
 29.24     Sec. 3.  Minnesota Statutes 1998, section 29.23, 
 29.25  subdivision 4, is amended to read: 
 29.26     Subd. 4.  [VEHICLE TEMPERATURE.] A vehicle used for the 
 29.27  transportation of shell eggs from a warehouse, retail store, 
 29.28  candling and grading facility, or egg holding facility must have 
 29.29  an ambient air temperature of 50 45 degrees Fahrenheit (10 7 
 29.30  degrees Celsius) or below. 
 29.31     Sec. 4.  Minnesota Statutes 1998, section 29.26, is amended 
 29.32  to read: 
 29.33     29.26 [EGGS IN POSSESSION OF RETAILER.] 
 29.34     All eggs sold or offered for sale at retail must have been 
 29.35  candled and graded and must be clearly labeled according to 
 29.36  Minnesota consumer grades as established by rule under section 
 30.1   29.23.  No eggs shall be sold or offered for sale as "ungraded," 
 30.2   "unclassified," or by any other name that does not clearly 
 30.3   designate the grade.  All eggs in possession of the retailer, 
 30.4   either in temporary storage or on display, must be held at a 
 30.5   temperature not to exceed 45 41 degrees Fahrenheit (7 5 degrees 
 30.6   Celsius).  
 30.7      Candled and graded eggs held 31 days past the coded pack 
 30.8   date lose their grades and must be removed from sale. 
 30.9                              ARTICLE 7 
 30.10                      RURAL FINANCE AUTHORITY 
 30.11     Section 1.  Minnesota Statutes 1998, section 41B.03, 
 30.12  subdivision 1, is amended to read: 
 30.13     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
 30.14  a program in sections 41B.01 to 41B.23: 
 30.15     (1) a borrower must be a resident of Minnesota or a 
 30.16  domestic family farm corporation, as defined in section 500.24, 
 30.17  subdivision 2; and 
 30.18     (2) the borrower or one of the borrowers must be the 
 30.19  principal operator of the farm or, for a prospective homestead 
 30.20  redemption borrower, must have at one time been the principal 
 30.21  operator of a farm; and 
 30.22     (3) the borrower must not receive assistance under sections 
 30.23  41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans 
 30.24  during the borrower's lifetime. 
 30.25     Sec. 2.  Minnesota Statutes 1998, section 41B.03, 
 30.26  subdivision 2, is amended to read: 
 30.27     Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
 30.28  to the eligibility requirements of subdivision 1, a prospective 
 30.29  borrower for a restructured loan must:  
 30.30     (1) have received at least 50 percent of average annual 
 30.31  gross income from farming for the past three years or, for 
 30.32  homesteaded property, received at least 40 percent of average 
 30.33  gross income from farming in the past three years, and farming 
 30.34  must be the principal occupation of the borrower; 
 30.35     (2) have a debt-to-asset ratio equal to or greater than 50 
 30.36  percent and in determining this ratio, the assets must be valued 
 31.1   at their current market value; 
 31.2      (3) have projected annual expenses, including operating 
 31.3   expenses, family living, and interest expenses after the 
 31.4   restructuring, that do not exceed 95 percent of the borrower's 
 31.5   projected annual income considering prior production history and 
 31.6   projected prices for farm production, except that the authority 
 31.7   may reduce the 95 percent requirement if it finds that other 
 31.8   significant factors in the loan application support the making 
 31.9   of the loan; and 
 31.10     (4) demonstrate substantial difficulty in meeting projected 
 31.11  annual expenses without restructuring the loan; and 
 31.12     (5) must have a total net worth, including assets and 
 31.13  liabilities of the borrower's spouse and dependents, of less 
 31.14  than $400,000 in 1999 and an amount in subsequent years which is 
 31.15  adjusted for inflation by multiplying $400,000 by the cumulative 
 31.16  inflation rate as determined by the United States All-Items 
 31.17  Consumer Price Index. 
 31.18     Sec. 3.  Minnesota Statutes 1998, section 41B.039, 
 31.19  subdivision 2, is amended to read: 
 31.20     Subd. 2.  [STATE PARTICIPATION.] The state may participate 
 31.21  in a new real estate loan with an eligible lender to a beginning 
 31.22  farmer to the extent of 45 percent of the principal amount of 
 31.23  the loan or $100,000 $125,000, whichever is less.  The interest 
 31.24  rates and repayment terms of the authority's participation 
 31.25  interest may be different than the interest rates and repayment 
 31.26  terms of the lender's retained portion of the loan. 
 31.27     Sec. 4.  Minnesota Statutes 1998, section 41B.04, 
 31.28  subdivision 8, is amended to read: 
 31.29     Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
 31.30  that are eligible for restructuring under sections 41B.01 to 
 31.31  41B.23 and upon acceptance by the authority, the authority shall 
 31.32  enter into a participation agreement or other financial 
 31.33  arrangement whereby it shall participate in a restructured loan 
 31.34  to the extent of 45 percent of the primary principal or 
 31.35  $100,000 $150,000, whichever is less.  The authority's portion 
 31.36  of the loan must be protected during the authority's 
 32.1   participation by the first mortgage held by the eligible lender 
 32.2   to the extent of its participation in the loan. 
 32.3      Sec. 5.  Minnesota Statutes 1998, section 41B.042, 
 32.4   subdivision 4, is amended to read: 
 32.5      Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
 32.6   may participate in new seller-sponsored loans to the extent of 
 32.7   45 percent of the principal amount of the loan or 
 32.8   $100,000 $125,000, whichever is less.  The interest rates and 
 32.9   repayment terms of the authority's participation interest may be 
 32.10  different than the interest rates and repayment terms of the 
 32.11  seller's retained portion of the loan. 
 32.12     Sec. 6.  Minnesota Statutes 1998, section 41B.043, 
 32.13  subdivision 2, is amended to read: 
 32.14     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
 32.15  $35,000 or $100,000 $125,000 for a loan participation or be made 
 32.16  to refinance an existing debt.  Each direct loan and 
 32.17  participation must be secured by a mortgage on real property and 
 32.18  such other security as the authority may require. 
 32.19     Sec. 7.  Minnesota Statutes 1998, section 41B.045, 
 32.20  subdivision 2, is amended to read: 
 32.21     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
 32.22  participate in a livestock expansion loan with an eligible 
 32.23  lender to a livestock farmer who meets the requirements of 
 32.24  section 41B.03, subdivision 1, clauses (1) and (2), and who are 
 32.25  actively engaged in a livestock operation.  A prospective 
 32.26  borrower must have a total net worth, including assets and 
 32.27  liabilities of the borrower's spouse and dependents, of less 
 32.28  than $400,000 in 1999 and an amount in subsequent years which is 
 32.29  adjusted for inflation by multiplying $400,000 by the cumulative 
 32.30  inflation rate as determined by the United States All-Items 
 32.31  Consumer Price Index. 
 32.32     Participation is limited to 45 percent of the principal 
 32.33  amount of the loan or $250,000, whichever is less.  The interest 
 32.34  rates and repayment terms of the authority's participation 
 32.35  interest may be different from the interest rates and repayment 
 32.36  terms of the lender's retained portion of the loan.  Loans under 
 33.1   this program must not be included in the lifetime limitation 
 33.2   calculated under section 41B.03, subdivision 1. 
 33.3                              ARTICLE 8 
 33.4                  LIVESTOCK DEALERS AND GRAIN BUYERS 
 33.5      Section 1.  Minnesota Statutes 1998, section 17A.05, 
 33.6   subdivision 2, is amended to read: 
 33.7      Subd. 2.  [LIVESTOCK DEALERS.] The amount of each livestock 
 33.8   dealer bond filed with the commissioner shall be not less 
 33.9   than $5,000 $10,000 or such larger amount as required, based on 
 33.10  the commissioner's consideration of the principal's financial 
 33.11  statement, the volume of business reported, or any other factor 
 33.12  the commissioner deems pertinent for the protection of the 
 33.13  public.  Each such bond shall contain the condition clause 
 33.14  applicable when the principal buys on commission or as a 
 33.15  dealer.  A livestock dealer's bond shall be executed on a form 
 33.16  furnished by the commissioner or in accordance with the Packers 
 33.17  and Stockyards Act, 1921, as amended, (United States Code, title 
 33.18  7, section 181 et seq.). 
 33.19     When a bond is executed on a state form furnished by the 
 33.20  commissioner, the bond shall be for the protection of both the 
 33.21  buyer and the seller named in the transaction when the principal 
 33.22  fails to pay when due for livestock purchased or sold for the 
 33.23  principal's own account or the account of others and shall be 
 33.24  limited to the protection of claimants whose residence or 
 33.25  principal place of livestock business is in the state of 
 33.26  Minnesota at the time of the transaction.  If the bond is filed 
 33.27  on a form in accordance with the Packers and Stockyards Act, the 
 33.28  bond shall cover claimants regardless of place of residence. 
 33.29     Sec. 2.  Minnesota Statutes 1998, section 223.17, 
 33.30  subdivision 5, is amended to read: 
 33.31     Subd. 5.  [CASH SALES; MANNER OF PAYMENT.] For a cash sale 
 33.32  of a shipment of grain which is part of a multiple shipment 
 33.33  sale, the grain buyer shall tender payment to the seller in cash 
 33.34  or by check not later than ten days after the sale of that 
 33.35  shipment, except that when the entire sale is completed, payment 
 33.36  shall be tendered not later than the close of business on the 
 34.1   next day, or within 48 hours, whichever is later.  For other 
 34.2   cash sales the grain buyer, before the close of business on the 
 34.3   next business day after the sale, shall tender payment to the 
 34.4   seller in cash or by check, or shall wire or mail funds to the 
 34.5   seller's account in the amount of at least 80 percent of the 
 34.6   value of the grain at the time of delivery.  The grain buyer 
 34.7   shall complete final settlement as rapidly as possible through 
 34.8   ordinary diligence.  Any transaction which is not a cash sale in 
 34.9   compliance with the provisions of this subdivision constitutes a 
 34.10  voluntary extension of credit which is not afforded protection 
 34.11  under the grain buyer's bond, and which must comply with 
 34.12  sections 223.175 and 223.177. 
 34.13     Sec. 3.  Minnesota Statutes 1998, section 223.175, is 
 34.14  amended to read: 
 34.15     223.175 [WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS; 
 34.16  FORM.] 
 34.17     A written confirmation required under section 223.177, 
 34.18  subdivision 2, and a written voluntary extension of credit 
 34.19  contract must include those items prescribed by the commissioner 
 34.20  by rule.  A contract shall include a statement of the legal and 
 34.21  financial responsibilities of grain buyers and sellers 
 34.22  established in this chapter.  A contract shall also include the 
 34.23  following statement in not less than ten point, all capital 
 34.24  type, framed in a box with space provided for the seller's 
 34.25  signature:  "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF 
 34.26  CREDIT.  THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S 
 34.27  BOND."  If a written contract is provided at the time the grain 
 34.28  is delivered to the grain buyer, the seller shall sign the 
 34.29  contract in the space provided beneath the statement.  A 
 34.30  transaction that does not meet the provisions of a voluntary 
 34.31  extension of credit, including the issuance and signing of a 
 34.32  voluntary extension of credit contract, is a cash sale. 
 34.33     Sec. 4.  Minnesota Statutes 1998, section 232.21, is 
 34.34  amended by adding a subdivision to read: 
 34.35     Subd. 14.  [OPEN STORAGE.] "Open storage" means grain or 
 34.36  agricultural products received by a warehouse operator from a 
 35.1   depositor for which warehouse receipts have not been issued or a 
 35.2   purchase made and the records documented accordingly. 
 35.3      Sec. 5.  Minnesota Statutes 1998, section 232.23, 
 35.4   subdivision 3, is amended to read: 
 35.5      Subd. 3.  [GRAIN DELIVERED CONSIDERED SOLD STORED.] All 
 35.6   grain delivered to a public grain warehouse operator shall be 
 35.7   considered sold stored at the time of delivery, unless 
 35.8   arrangements have been made with the public grain warehouse 
 35.9   operator prior to or at the time of delivery to apply the grain 
 35.10  on contract, for shipment or consignment or for storage cash 
 35.11  sale.  Grain may be held in open storage or placed on a 
 35.12  warehouse receipt.  Warehouse receipts must be issued for all 
 35.13  grain held in open storage within six months of delivery to the 
 35.14  warehouse unless the depositor has signed a statement that the 
 35.15  depositor does not desire a warehouse receipt.  The warehouse 
 35.16  operator's tariff applies for any grain that is retained in open 
 35.17  storage or under warehouse receipt.  
 35.18     Sec. 6.  Minnesota Statutes 1998, section 232.23, 
 35.19  subdivision 6, is amended to read: 
 35.20     Subd. 6.  [LIABILITY.] A public grain warehouse 
 35.21  operator issuing a grain warehouse receipt is liable to the 
 35.22  depositor for the delivery of the kind, grade, and net quantity 
 35.23  of grain called for by the grain warehouse receipt. or scale 
 35.24  ticket marked "store." 
 35.25                             ARTICLE 9 
 35.26                       AGRICULTURAL CHEMICALS 
 35.27     Section 1.  Minnesota Statutes 1998, section 18B.07, 
 35.28  subdivision 2, is amended to read: 
 35.29     Subd. 2.  [PROHIBITED PESTICIDE USE.] (a) A person may not 
 35.30  use, store, handle, distribute, or dispose of a pesticide, 
 35.31  rinsate, pesticide container, or pesticide application equipment 
 35.32  in a manner: 
 35.33     (1) that is inconsistent with a label or labeling as 
 35.34  defined by FIFRA; 
 35.35     (2) that endangers humans, damages agricultural products, 
 35.36  food, livestock, fish, or wildlife, or domestic animals; or 
 36.1      (3) that will cause unreasonable adverse effects on the 
 36.2   environment.  
 36.3      (b) A person may not direct a pesticide onto property 
 36.4   beyond the boundaries of the target site.  A person may not 
 36.5   apply a pesticide resulting in damage to adjacent property. 
 36.6      (c) A person may not directly apply a pesticide on a human 
 36.7   by overspray or target site spray. 
 36.8      (d) A person may not apply a pesticide in a manner so as to 
 36.9   expose a worker in an immediately adjacent, open field. 
 36.10     Sec. 2.  Minnesota Statutes 1998, section 18C.005, is 
 36.11  amended by adding a subdivision to read: 
 36.12     Subd. 7a.  [CUSTOM BLEND FERTILIZER.] "Custom blend 
 36.13  fertilizer" means a fertilizer blended according to the 
 36.14  specifications that are furnished to a distributor by a consumer 
 36.15  prior to blending. 
 36.16     Sec. 3.  Minnesota Statutes 1998, section 18C.005, 
 36.17  subdivision 34, is amended to read: 
 36.18     Subd. 34.  [SPECIALTY FERTILIZER.] "Specialty fertilizer" 
 36.19  means a fertilizer labeled and distributed for, but not limited 
 36.20  to, the following uses:  greenhouses, nurseries, home gardens, 
 36.21  house plants, lawn fertilizer that is not custom applied, 
 36.22  shrubs, golf courses, municipal parks, and cemeteries. 
 36.23     Sec. 4.  Minnesota Statutes 1998, section 18C.215, 
 36.24  subdivision 1, is amended to read: 
 36.25     Subdivision 1.  [PACKAGED FERTILIZERS.] (a) A person may 
 36.26  not sell or distribute specialty fertilizer in bags or other 
 36.27  containers in this state unless a label is placed on or affixed 
 36.28  to the bag or container stating in a clear, legible, and 
 36.29  conspicuous form the following information:  
 36.30     (1) the net weight; 
 36.31     (2) the brand and grade, except the grade is not required 
 36.32  if primary nutrients are not claimed; 
 36.33     (3) the guaranteed analysis; 
 36.34     (4) the name and address of the guarantor; 
 36.35     (5) directions for use, except directions for use are not 
 36.36  required for custom blend specialty fertilizers; and 
 37.1      (6) a derivatives statement.  
 37.2      (b) A person may not sell or distribute fertilizer for 
 37.3   agricultural purposes in bags or other containers in this state 
 37.4   unless a label is placed on or affixed to the bag or container 
 37.5   stating in a clear, legible, and conspicuous form the 
 37.6   information listed in paragraph (a), clauses (1) to (4), except: 
 37.7      (1) the grade is not required if primary nutrients are not 
 37.8   claimed; and 
 37.9      (2) the grade on the label is optional if the fertilizer is 
 37.10  used only for agricultural purposes and the guaranteed analysis 
 37.11  statement is shown in the complete form as in section 18C.211. 
 37.12     (c) The labeled information must appear:  
 37.13     (1) on the front or back side of the container; 
 37.14     (2) on the upper one-third of the side of the container; 
 37.15     (3) on the upper end of the container; or 
 37.16     (4) printed on a tag affixed to the upper end of the 
 37.17  container. 
 37.18     (d) If a person sells a custom blend specialty fertilizer 
 37.19  in bags or other containers, the information required in 
 37.20  paragraph (a) must either be affixed to the bag or container as 
 37.21  required in paragraph (c) or be furnished to the customer on an 
 37.22  invoice or delivery ticket in written or printed form. 
 37.23     Sec. 5.  Minnesota Statutes 1998, section 18C.215, 
 37.24  subdivision 2, is amended to read: 
 37.25     Subd. 2.  [BLENDED, MIXED, BULK, AND CUSTOM APPLIED 
 37.26  FERTILIZER.] (a) A distributor who blends or mixes fertilizer or 
 37.27  distributes fertilizer, for agricultural use, in bulk, must 
 37.28  furnish each purchaser with an invoice or delivery ticket in 
 37.29  written or printed form showing: 
 37.30     (1) the net weight and guaranteed analysis of each of the 
 37.31  materials used in the mixture and the name and address of the 
 37.32  guarantor; or 
 37.33     (2) the net weight and guaranteed analysis of the final 
 37.34  mixture and the name and address of the guarantor. 
 37.35     (b) A person may not custom apply specialty fertilizer in 
 37.36  this state unless a label, invoice, or delivery ticket is given 
 38.1   to each purchaser stating in a clear, legible, and conspicuous 
 38.2   form the following information: 
 38.3      (1) the net weight, which may be listed as the total net 
 38.4   weight applied or the net weight applied per unit treated; 
 38.5      (2) the guaranteed analysis; 
 38.6      (3) the name and address of the guarantor; 
 38.7      (4) the number of units treated in square feet, acres, or 
 38.8   another unit of measure; and 
 38.9      (5) a derivative statement. 
 38.10     (c) Copies of invoices or delivery tickets must be kept for 
 38.11  five years after the sale, delivery, or application.  
 38.12     Sec. 6.  Minnesota Statutes 1998, section 18C.215, is 
 38.13  amended by adding a subdivision to read: 
 38.14     Subd. 2a.  [INFORMATION TO CUSTOMER.] If a person sells a 
 38.15  custom blend specialty fertilizer in bulk, the information 
 38.16  required in subdivision 1, paragraph (a), must be furnished to 
 38.17  the customer on an invoice or delivery ticket in written or 
 38.18  printed form. 
 38.19     Sec. 7.  Minnesota Statutes 1998, section 18C.411, 
 38.20  subdivision 1, is amended to read: 
 38.21     Subdivision 1.  [REGISTRATION REQUIRED.] (a) A person may 
 38.22  not sell brands or grades of specialty fertilizers, soil 
 38.23  amendments, or plant amendments in this state unless they are 
 38.24  registered with the commissioner.  
 38.25     (b) Registration of the materials is not a warranty by the 
 38.26  commissioner or the state.  
 38.27     (c) Specialty fertilizers custom applied are exempt from 
 38.28  the registration requirements of this section. 
 38.29     (d) Custom blend specialty fertilizers are exempt from the 
 38.30  registration requirements of this section if the distributor is 
 38.31  licensed as required by section 18C.415 and the fertilizer is 
 38.32  labeled as required by section 18C.215. 
 38.33     Sec. 8.  Minnesota Statutes 1998, section 18C.421, 
 38.34  subdivision 1, is amended to read: 
 38.35     Subdivision 1.  [SEMIANNUAL STATEMENT.] (a) Each licensed 
 38.36  distributor of fertilizer and each registrant of a specialty 
 39.1   fertilizer, soil amendment, or plant amendment must file a 
 39.2   semiannual statement for the periods ending December 31 and June 
 39.3   30 with the commissioner on forms furnished by the commissioner 
 39.4   stating the number of net tons and grade of each raw fertilizer 
 39.5   material distributed or the number of net tons of each brand or 
 39.6   grade of fertilizer, soil amendment, or plant amendment 
 39.7   distributed in this state during the reporting period. 
 39.8      (b) Tonnage reports are not required to be filed with the 
 39.9   commissioner from licensees who distributed fertilizer solely by 
 39.10  custom application. 
 39.11     (c) A report from a licensee who sells to an ultimate 
 39.12  consumer must be accompanied by records or invoice copies 
 39.13  indicating the name of the distributor who paid the inspection 
 39.14  fee, the net tons received, and the grade or brand name of the 
 39.15  products received.  
 39.16     (c) (d) The report is due on or before the last day of the 
 39.17  month following the close of each reporting period of each 
 39.18  calendar year.  
 39.19     (d) (e) The inspection fee at the rate stated in section 
 39.20  18C.425, subdivision 6, must accompany the statement.  
 39.21     Sec. 9.  Minnesota Statutes 1998, section 18D.201, 
 39.22  subdivision 3, is amended to read: 
 39.23     Subd. 3.  [INSPECTION REQUESTS BY OTHERS.] (a) A person who 
 39.24  believes that a violation of this chapter has occurred may 
 39.25  request an inspection by giving notice to the commissioner of 
 39.26  the violation.  The notice must be in writing, state with 
 39.27  reasonable particularity the grounds for the notice, and be 
 39.28  signed by the person making the request.  If the pesticide 
 39.29  application is alleged to have damaged a crop or vegetation, the 
 39.30  request for inspection must be submitted within 45 days of the 
 39.31  date of the pesticide application. 
 39.32     (b) If after receiving a notice of violation the 
 39.33  commissioner reasonably believes that a violation has occurred, 
 39.34  the commissioner shall make a special inspection in accordance 
 39.35  with the provisions of this section as soon as practicable, to 
 39.36  determine if a violation has occurred.  
 40.1      (c) An inspection conducted pursuant to a notice under this 
 40.2   subdivision may cover an entire site and is not limited to the 
 40.3   portion of the site specified in the notice.  If the 
 40.4   commissioner determines that reasonable grounds to believe that 
 40.5   a violation occurred do not exist, the commissioner must notify 
 40.6   the person making the request in writing of the determination. 
 40.7                              ARTICLE 10 
 40.8                          FEEDLOT PERMITTING 
 40.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
 40.10  116.07, subdivision 7, is amended to read: 
 40.11     Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 40.12  LOT PERMITS.] Any Minnesota county board may, by resolution, 
 40.13  with approval of the pollution control agency, assume 
 40.14  responsibility for processing applications for permits required 
 40.15  by the pollution control agency under this section for livestock 
 40.16  feedlots, poultry lots or other animal lots.  The responsibility 
 40.17  for permit application processing, if assumed by a county, may 
 40.18  be delegated by the county board to any appropriate county 
 40.19  officer or employee.  
 40.20     (a) For the purposes of this subdivision, the term 
 40.21  "processing" includes: 
 40.22     (1) the distribution to applicants of forms provided by the 
 40.23  pollution control agency; 
 40.24     (2) the receipt and examination of completed application 
 40.25  forms, and the certification, in writing, to the pollution 
 40.26  control agency either that the animal lot facility for which a 
 40.27  permit is sought by an applicant will comply with applicable 
 40.28  rules and standards, or, if the facility will not comply, the 
 40.29  respects in which a variance would be required for the issuance 
 40.30  of a permit; and 
 40.31     (3) rendering to applicants, upon request, assistance 
 40.32  necessary for the proper completion of an application. 
 40.33     (b) For the purposes of this subdivision, the term 
 40.34  "processing" may include, at the option of the county board, 
 40.35  issuing, denying, modifying, imposing conditions upon, or 
 40.36  revoking permits pursuant to the provisions of this section or 
 41.1   rules promulgated pursuant to it, subject to review, suspension, 
 41.2   and reversal by the pollution control agency.  The pollution 
 41.3   control agency shall, after written notification, have 15 days 
 41.4   to review, suspend, modify, or reverse the issuance of the 
 41.5   permit.  After this period, the action of the county board is 
 41.6   final, subject to appeal as provided in chapter 14.  For permit 
 41.7   applications filed after July 1, 2001, section 15.99 applies to 
 41.8   feedlot permits issued by the agency or a county pursuant to 
 41.9   this subdivision. 
 41.10     (c) For the purpose of administration of rules adopted 
 41.11  under this subdivision, the commissioner and the agency may 
 41.12  provide exceptions for cases where the owner of a feedlot has 
 41.13  specific written plans to close the feedlot within five years.  
 41.14  These exceptions include waiving requirements for major capital 
 41.15  improvements. 
 41.16     (d) For purposes of this subdivision, a discharge caused by 
 41.17  an extraordinary natural event such as a precipitation event of 
 41.18  greater magnitude than the 25-year, 24-hour event, tornado, or 
 41.19  flood in excess of the 100-year flood is not a "direct discharge 
 41.20  of pollutants." 
 41.21     (e) In adopting and enforcing rules under this subdivision, 
 41.22  the commissioner shall cooperate closely with other governmental 
 41.23  agencies. 
 41.24     (f) The pollution control agency shall work with the 
 41.25  Minnesota extension service, the department of agriculture, the 
 41.26  board of water and soil resources, producer groups, local units 
 41.27  of government, as well as with appropriate federal agencies such 
 41.28  as the Natural Resources Conservation Service and the Farm 
 41.29  Service Agency, to notify and educate producers of rules under 
 41.30  this subdivision at the time the rules are being developed and 
 41.31  adopted and at least every two years thereafter. 
 41.32     (g) The pollution control agency shall adopt rules 
 41.33  governing the issuance and denial of permits for livestock 
 41.34  feedlots, poultry lots or other animal lots pursuant to this 
 41.35  section.  A feedlot permit is not required for livestock 
 41.36  feedlots with more than ten but less than 50 animal units; 
 42.1   provided they are not in shoreland areas.  These rules apply 
 42.2   both to permits issued by counties and to permits issued by the 
 42.3   pollution control agency directly.  
 42.4      (h) The pollution control agency shall exercise supervising 
 42.5   authority with respect to the processing of animal lot permit 
 42.6   applications by a county. 
 42.7      (i) Any new rules or amendments to existing rules proposed 
 42.8   under the authority granted in this subdivision, or to implement 
 42.9   new fees on animal feedlots, must be submitted to the members of 
 42.10  legislative policy and finance committees with jurisdiction over 
 42.11  agriculture and the environment prior to final adoption.  The 
 42.12  rules must not become effective until 90 days after the proposed 
 42.13  rules are submitted to the members.  
 42.14     (j) Until new rules are adopted that provide for plans for 
 42.15  manure storage structures, any plans for a liquid manure storage 
 42.16  structure must be prepared or approved by a registered 
 42.17  professional engineer or a United States Department of 
 42.18  Agriculture, Natural Resources Conservation Service employee. 
 42.19     (k) A county may adopt by ordinance standards for animal 
 42.20  feedlots that are more stringent than standards in pollution 
 42.21  control agency rules. 
 42.22     (l) After January 1, 2001, a county that has not accepted 
 42.23  delegation of the feedlot permit program must hold a public 
 42.24  meeting prior to the agency issuing a feedlot permit for a 
 42.25  feedlot facility with 300 or more animal units, unless another 
 42.26  public meeting has been held with regard to the feedlot facility 
 42.27  to be permitted.