Skip to main content Skip to office menu Skip to footer
Capital Icon Minnesota Legislature

Office of the Revisor of Statutes

SF 1324

Introduction - 87th Legislature (2011 - 2012)

Posted on 02/23/2012 09:48 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 2.1 2.2 2.3 2.4 2.5 2.6
2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26
2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9
3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31
3.32 3.33 3.34 4.1 4.2 4.3 4.4 4.5 4.6
4.7 4.8 4.9 4.10 4.11
4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31
4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17
5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27
5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10
6.11 6.12 6.13 6.14 6.15 6.16
6.17 6.18 6.19 6.20
6.21 6.22 6.23 6.24 6.25
6.26 6.27 6.28 6.29 6.30 7.1 7.2
7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23
7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3
8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18
8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27
8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2
9.3 9.4 9.5 9.6 9.7 9.8
9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18
9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27
9.28 9.29 9.30 9.31 10.1 10.2 10.3 10.4 10.5 10.6
10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15
10.16 10.17 10.18 10.19 10.20 10.21 10.22
10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12
12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29
13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5
14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33
14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25
15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15
16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 17.1 17.2 17.3
17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25
17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24
18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 18.36 18.37 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24
19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17
20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26
20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15
21.16 21.17 21.18 21.19 21.20 21.21
21.22 21.23 21.24 21.25
21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4
22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3
23.4 23.5 23.6 23.7 23.8
23.9 23.10 23.11 23.12 23.13 23.14

A bill for an act
relating to agriculture; changing certain programs, requirements, fees, and
duties; appropriating money; amending Minnesota Statutes 2010, sections
18B.065, by adding a subdivision; 18B.316, subdivision 6; 18G.07, subdivision
1; 18G.10, subdivisions 5, 7, by adding a subdivision; 18H.07, subdivisions 2, 3;
18H.10; 18H.14; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05,
subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.08, subdivision 2;
21.82, subdivisions 7, 8; 35.0661, subdivisions 2, 3; 223.17, subdivisions 6, 9;
231.36; 231.38; 231.39; 232.22, subdivisions 3, 4, 5; 232.23, subdivisions 5,
10; 232.24, subdivisions 1, 2; 236.02, subdivision 5, by adding a subdivision;
repealing Minnesota Statutes 2010, sections 27.19, subdivisions 2, 3; 27.20;
223.18; 231.035; 231.28; 232.24, subdivision 3; 232.25; 236.09; Minnesota
Rules, parts 1505.0780; 1505.0810; 1562.0100, subparts 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25; 1562.0200; 1562.0700,
subparts 1b, 3; 1562.0900; 1562.1300.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 18B.065, is amended by adding a
subdivision to read:


new text begin Subd. 10. new text end

new text begin Indemnification. new text end

new text begin (a) A local unit of government, when operating or
participating in a waste pesticide collection program pursuant to a cooperative agreement
with the commissioner under this section, is an employee of the state, certified to be
acting within the scope of employment, for purposes of the indemnification provisions of
section 3.736, subdivision 9, for claims that arise out of the transportation, management,
or disposal of any waste pesticide covered by the agreement:
new text end

new text begin (1) from and after the time the waste permanently leaves the local unit of
government's possession and comes into the possession of the state's authorized
transporter; and
new text end

new text begin (2) during the time the waste is transported between the local unit of government
facilities by the state's authorized transporter.
new text end

new text begin (b) The state is not obligated to defend or indemnify a local unit of government under
this subdivision to the extent of the local unit of government's liability insurance. The
local unit of government's right to indemnify is not a waiver of the limitation, defenses,
and immunities available to either the local unit of government or the state by law.
new text end

Sec. 2.

Minnesota Statutes 2010, section 18B.316, subdivision 6, is amended to read:


Subd. 6.

Agricultural pesticide sales invoices.

new text begin (a) new text end Sales invoices for agricultural
pesticides sold in or into this state by a licensed agricultural pesticide dealer or a pesticide
dealer under this section must show the percent of gross sales fee rate assessed and the
gross sales fee paid under section 18B.26, subdivision 3, paragraph (c).

new text begin (b) A licensed agricultural pesticide dealer or a pesticide dealer may request an
exemption from paragraph (a). The request for exemption must be in writing to the
commissioner and must include verifiable information to justify that compliance with
paragraph (a) is an extreme business hardship for the licensed agricultural pesticide dealer
or pesticide dealer. The commissioner may approve or reject a request for exemption
based upon review of the submitted information. An approved exemption under this
paragraph is valid for one calendar year. The commissioner must maintain a list of those
licensed agricultural pesticide dealers or pesticide dealers that have been granted an
exemption on the department's Web site.
new text end

new text begin (c) A licensed agricultural pesticide dealer or a pesticide dealer issued an exemption
under paragraph (b) must include the following statement on each sales invoice for any
sale of an agricultural pesticide: "Minnesota Department of Agriculture Annual Gross
Sales Fees of 0.55% have been Assessed and Paid on the Sale of an Agricultural Pesticide."
new text end

new text begin (d) new text end Only the person who actually will pay the gross sales fee may show the rate or
the amount of the fee as a line item on the sales invoice.

Sec. 3.

Minnesota Statutes 2010, section 18G.07, subdivision 1, is amended to read:


Subdivision 1.

Creation of registry.

(a) The commissioner shall maintain a list of
all personsnew text begin , businesses,new text end and companies that new text begin employ persons who new text end provide tree care or tree
trimming services in Minnesota. All new text begin commercial new text end tree care providers, tree trimmers, and
deleted text begin persons whodeleted text end new text begin employers that direct employees to new text end remove trees, limbs, branches, brush, or
shrubs for hire must be registered deleted text begin bydeleted text end new text begin withnew text end the commissioner.

(b) Persons or companies who are required to be registered under paragraph (a) must
register annually by providing the following to the commissioner:

(1) accurate and up-to-date business name, address, and telephone number;

(2) a complete list of all Minnesota counties in which they work; and

(3) a nonrefundable fee of $25 for initial application or renewing the registration.

(c) All persons and companies required to be registered under paragraph (a) must
register before conducting the activities specified in paragraph (a). Annual registration
expires December 31, must be renewed annually, and the renewal fee remitted by January
deleted text begin 7deleted text end new text begin 1new text end of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee
due must be charged for each month, or portion of a month, that the fee is delinquent up to
a maximum of 30 percent for any application for renewal postmarked after December 31.

Sec. 4.

Minnesota Statutes 2010, section 18G.10, subdivision 5, is amended to read:


Subd. 5.

Certificate fees.

(a) The commissioner shall assess the fees in paragraphs
(b) to (f) for the inspection, service, and work performed in carrying out the issuance of
a phytosanitary certificate or export certificate. The inspection fee must be based on
mileage and inspection time.

(b) Mileage charge: current United States Internal Revenue Service mileage rate.

(c) Inspection time: $50 per hour minimum or fee necessary to cover department
costs. Inspection time includes the driving time to and from the location in addition to
the time spent conducting the inspection.

(d) If laboratory analysis or other technical analysis is required to issue a certificate,
the commissioner must set and collect the fee to recover this additional cost.

(e) Certificate fee for product value greater than $250: $75 new text begin minimum or fee
necessary to cover department costs, including research and processing costs,
new text end for each
phytosanitary or export certificate issued for any single shipment valued at more than $250
in addition to any mileage or inspection time charges that are assessed.

(f) Certificate fee for product value less than $250: $25 new text begin minimum or fee necessary to
cover department costs, including research and processing costs,
new text end for each phytosanitary or
export certificate issued for any single shipment valued at less than $250 in addition to
any mileage or inspection time charges that are assessed.

(g) For services provided for in subdivision 7 that are goods and services provided
for the direct and primary use of a private individual, business, or other entity, the
commissioner must set and collect the fees to cover the cost of the services provided.

Sec. 5.

Minnesota Statutes 2010, section 18G.10, subdivision 7, is amended to read:


Subd. 7.

Supplemental, additional, or other certificates and permits.

(a) The
commissioner may provide inspection, sampling, or certification services to ensure
that Minnesota new text begin plant treatment processes, new text end plant productsnew text begin ,new text end or commodities meet import
requirements of other states or countries.

(b) The state plant regulatory official may issue permits and certificates verifying that
various Minnesota agricultural new text begin plant treatment processes, new text end productsnew text begin ,new text end or commodities meet
specified plant health requirements, treatment requirements, or pest absence assurances
based on determinations by the commissioner.

Sec. 6.

Minnesota Statutes 2010, section 18G.10, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Misuse of a certificate or permit. new text end

new text begin Certificates, permits, and official letters
issued to support certification or permit processes are not transferable to another location
or another person.
new text end

Sec. 7.

Minnesota Statutes 2010, section 18H.07, subdivision 2, is amended to read:


Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must
pay an annual fee based on the area of all acreage on which nursery stock is grown for
certification as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin Beginning April 1, a firm found operating without a nursery stock growers certificate
must pay a penalty equal to the required nursery stock growers certificate fee.
new text end

Sec. 8.

Minnesota Statutes 2010, section 18H.07, subdivision 3, is amended to read:


Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an
annual fee based on the dealer's gross sales of certified nursery stock per location during
the most recent certificate year. A certificate applicant operating for the first time must pay
the minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin Beginning April 1, a firm found operating without a nursery stock dealer certificate
must pay a penalty equal to the required nursery stock dealer certificate fee.
new text end

Sec. 9.

Minnesota Statutes 2010, section 18H.10, is amended to read:


18H.10 STORAGE OF NURSERY STOCK.

new text begin (a) new text end All nursery stock must be kept and displayed under conditions of temperature,
light, and moisture sufficient to maintain the viability and vigor of the nursery stock.

new text begin (b)new text end Packaged dormant nursery stock must be stored under conditions that retard
growth, prevent etiolated growth, and protect its viability.

new text begin (c) Balled and burlapped nursery stock being held for sale to the public must be kept
in a moisture-holding material approved by the commissioner and not toxic to plants.
The moisture-holding material must adequately cover and protect the ball of earth and
must be kept moist at all times.
new text end

Sec. 10.

Minnesota Statutes 2010, section 18H.14, is amended to read:


18H.14 LABELING AND ADVERTISING OF NURSERY STOCK.

(a) Plants, plant materials, or nursery stock must not be labeled or advertised with
false or misleading information including, but not limited to, scientific name, variety,
place of origin, hardiness zone as defined by the United States Department of Agriculture,
and growth habit.

(b) A person may not offer for distribution plants, plant materials, or nursery stock,
represented by some specific or special form of notation, including, but not limited to,
"free from" or "grown free of," unless the plants are produced under a specific program
approved by the commissioner to address the specific plant properties addressed in the
special notation claim.

new text begin (c) Nursery stock collected from the wild state must be inspected and certified
prior to sale and at the time of sale must be labeled "Collected from the Wild." The label
must remain on each plant or clump of plants while it is offered for sale and during the
distribution process. The collected stock may be grown in nursery rows at least two years,
after which the plants may be sold without the labeling required by this paragraph.
new text end

Sec. 11.

Minnesota Statutes 2010, section 18J.01, is amended to read:


18J.01 DEFINITIONS.

(a) The definitions in sections 18G.02 deleted text begin anddeleted text end new text begin ,new text end 18H.02new text begin , 27.01, 223.16, 231.01, 232.21,
and 236.01,
new text end apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end or sections 21.80 to 21.92.

Sec. 12.

Minnesota Statutes 2010, section 18J.02, is amended to read:


18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G deleted text begin anddeleted text end new text begin ,new text end 18H,
new text begin 27, 223, 231, 232, and 236, new text end sections 21.80 to 21.92, and associated rules.

Sec. 13.

Minnesota Statutes 2010, section 18J.03, is amended to read:


18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236,
new text end or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
associated rules by the person's employee or agent.

Sec. 14.

Minnesota Statutes 2010, section 18J.04, subdivision 1, is amended to read:


Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites
where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
seeds, plants, new text begin grain, household goods, general merchandise, produce, new text end or other living or
nonliving products or other objects regulated under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231,
232, or 236,
new text end sections 21.80 to 21.92, or associated rules.

Sec. 15.

Minnesota Statutes 2010, section 18J.04, subdivision 2, is amended to read:


Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223,
231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules;

(2) sampling of sites, seeds, plants, products, new text begin grain, household goods, general
merchandise, produce,
new text end or other living or nonliving objects that are manufactured, stored,
distributed, handled, or disposed of at those sites and regulated under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H,
new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling,
or disposal of seeds, plants, products, new text begin grain, household goods, general merchandise,
produce,
new text end or other living or nonliving objects regulated under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27,
223, 231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules;

(4) investigating compliance with chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules; or

(5) other purposes necessary to implement chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232,
or 236,
new text end sections 21.80 to 21.92, or associated rules.

(b) The commissioner may enter any public or private premises during or after
regular business hours without notice of inspection when a suspected violation of chapter
18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules may
threaten public health or the environment.

Sec. 16.

Minnesota Statutes 2010, section 18J.04, subdivision 3, is amended to read:


Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall
provide the owner, operator, or agent in charge with a receipt describing any samples
obtained. If requested, the commissioner shall split any samples obtained and provide
them to the owner, operator, or agent in charge. If an analysis is made of the samples,
a copy of the results of the analysis must be furnished to the owner, operator, or agent
in charge within 30 days after an analysis has been performed. If an analysis is not
performed, the commissioner must notify the owner, operator, or agent in charge within 30
days of the decision not to perform the analysis.

(b) The sampling and analysis must be done according to methods provided for
under applicable provisions of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections
21.80 to 21.92, or associated rules. In cases not covered by those sections and methods
or in cases where methods are available in which improved applicability has been
demonstrated the commissioner may adopt appropriate methods from other sources.

Sec. 17.

Minnesota Statutes 2010, section 18J.04, subdivision 4, is amended to read:


Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation
of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated
rules has occurred may request an inspection by giving notice to the commissioner of the
violation. The notice must be in writing, state with reasonable particularity the grounds
for the notice, and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that
a violation has occurred, the commissioner shall make a special inspection in accordance
with the provisions of this section as soon as practicable, to determine if a violation has
occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover
an entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred
do not exist, the commissioner must notify the person making the request in writing of
the determination.

Sec. 18.

Minnesota Statutes 2010, section 18J.05, subdivision 1, is amended to read:


Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H,
new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or an associated rule is a violation
of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
officers having authority in the enforcement of the general criminal laws must take action
to the extent of their authority necessary or proper for the enforcement of chapter 18G deleted text begin ordeleted text end new text begin ,new text end
18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules or valid orders,
standards, stipulations, and agreements of the commissioner.

Sec. 19.

Minnesota Statutes 2010, section 18J.05, subdivision 2, is amended to read:


Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G deleted text begin ordeleted text end new text begin ,new text end
18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules occur or
the commissioner believes the public interest will be best served by a suitable notice of
warning in writing, this section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

Sec. 20.

Minnesota Statutes 2010, section 18J.05, subdivision 6, is amended to read:


Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered,
or certified under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92,
or associated rules must appoint the commissioner as the agent upon whom all legal
process may be served and service upon the commissioner is deemed to be service on the
licensee, permittee, registrant, or certified person.

Sec. 21.

Minnesota Statutes 2010, section 18J.06, is amended to read:


18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other
information as part of:

(1) an application for registration, license, certification, or permit under chapter 18G
deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules;

(2) records or reports required under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules; or

(3) an investigation of a violation of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules.

Sec. 22.

Minnesota Statutes 2010, section 18J.07, subdivision 3, is amended to read:


Subd. 3.

Cancellation of registration, permit, license, certification.

The
commissioner may cancel or revoke a registration, permit, license, or certification
provided for under chapter 18G or 18H, sections 21.80 to 21.92, or associated rules or
refuse to register, permit, license, or certify under provisions of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H,
new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or associated rules if the registrant,
permittee, licensee, or certified person has used fraudulent or deceptive practices in the
evasion or attempted evasion of a provision of chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or
236,
new text end sections 21.80 to 21.92, or associated rules.

Sec. 23.

Minnesota Statutes 2010, section 18J.07, subdivision 4, is amended to read:


Subd. 4.

Service of order or notice.

(a) If a person is not available for service of an
order, the commissioner may attach the order to the facility, site, seed or seed container,
plant or other living or nonliving object regulated under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223,
231, 232, or 236,
new text end sections 21.80 to 21.92, or associated rules and notify the owner,
custodian, other responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated
under chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or 236, new text end sections 21.80 to 21.92, or
associated rules may not be sold, used, tampered with, or removed until released under
conditions specified by the commissioner, by an administrative law judge, or by a court.

Sec. 24.

Minnesota Statutes 2010, section 18J.07, subdivision 5, is amended to read:


Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration,
or certification under provisions of this chapter, chapter 18G deleted text begin ordeleted text end new text begin ,new text end 18H, new text begin 27, 223, 231, 232, or
236,
new text end sections 21.80 to 21.92, or associated rules may not allow a final judgment against
the applicant for damages arising from a violation of those statutes or rules to remain
unsatisfied for a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation
of this chapter results in automatic suspension of the license, permit, registration, or
certification.

Sec. 25.

Minnesota Statutes 2010, section 18J.08, subdivision 2, is amended to read:


Subd. 2.

Administrative review.

If a person notifies the commissioner that
the person intends to contest an order issued under this section, the state Office of
Administrative Hearings must conduct a hearing in accordance with the applicable
provisions of chapter 14 for hearings in contested cases.new text begin If a contested case hearing is
conducted, the associated costs of the Office of Administrative Hearings must be equitably
allocated among the parties as determined by the administrative law judge.
new text end

Sec. 26.

Minnesota Statutes 2010, section 21.82, subdivision 7, is amended to read:


Subd. 7.

Vegetable seeds.

For vegetable seeds prepared for use in home gardens
or household plantings the requirements in paragraphs (a) to (p) apply. Vegetable seeds
packed for sale in commercial quantities to farmers, conservation groups, and other similar
entities are considered agricultural seeds and must be labeled accordingly.

(a) The label must contain the name of the kind or kind and variety for each seed
component in excess of five percent of the whole and the percentage by weight of each
in order of its predominance. If the variety of those kinds generally labeled as to variety
is not stated and it is not required to be stated, the label must show the name of the kind
and the words "variety not stated."

(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
If two or more kinds of varieties are present in excess of five percent and are named on
the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
kind and variety that has pure seed that is less than 95 percent but more than 75 percent
hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
to show the percentage of pure seed that is hybrid seed or a statement such as "contains
from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
must be shown on the label in conjunction with the kind.

(c) Blends must be listed on the label using the term "blend" in conjunction with
the kind.

(d) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."

(e) The label must show a lot number or other lot identification.

(f) The origin may be omitted from the label.

(g) The label must show the year for which the seed was packed for sale listed as
"packed for (year)" for seed with a percentage of germination that exceeds the standard last
established by the commissioner, the percentage of germination and the calendar month
and year that the percentages were determined by test, or the calendar month and year the
germination test was completed and the statement "sell by (month and year listed here),"
which may be no more than 12 months from the date of test, exclusive of the month of test.

(h) For vegetable seeds which germinate less than the standard last established by
the commissioner, the label must show:

(1) a percentage of germination, exclusive of hard or dormant seed or both;

(2) a percentage of hard or dormant seed or both, if present; and

(3) the words "below standard" in not less than eight point type and the month and
year the percentages were determined by test.

(i) The net weight of the contentsnew text begin or a statement indicating the number of seeds in
the container or both,
new text end must appear on either the container or the labeldeleted text begin , except that for
containers with contents of 200 seeds or less a statement indicating the number of seeds in
the container may be listed along with or in lieu of the net weight of contents
deleted text end .

(j) The heading for and percentage by weight of pure seed may be omitted from a
label if the total is more than 90 percent.

(k) The heading for and percentage by weight of weed seed may be omitted from a
label if they are not present in the seed.

(l) The heading "noxious weed seeds" may be omitted from a label if they are not
present in the seed.

(m) The heading for and percentage by weight of other crop seed may be omitted
from a label if it is less than five percent.

(n) The heading for and percentage by weight of inert matter may be omitted from a
label if it is less than ten percent.

(o) The label must contain the name and address of the person who labeled the
seed or who sells the seed in this state or a code number that has been registered with
the commissioner.

(p) The labeling requirements for vegetable seeds prepared for use in home gardens
or household plantings when sold outside their original containers are met if the seed is
weighed from a properly labeled container in the presence of the purchaser.

Sec. 27.

Minnesota Statutes 2010, section 21.82, subdivision 8, is amended to read:


Subd. 8.

Flower seeds.

For flower and wildflower seeds prepared for use in home
gardens or household plantings, the requirements in paragraphs (a) to (l) apply. Flower
and wildflower seeds packed for sale in commercial quantities to farmers, conservation
groups, and other similar entities are considered agricultural seeds and must be labeled
accordingly.

(a) The label must contain the name of the kind and variety or a statement of type
and performance characteristics as prescribed by rule.

(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
If two or more kinds of varieties are present in excess of five percent and are named on
the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
kind and variety that has pure seed that is less than 95 percent but more than 75 percent
hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
to show the percentage of pure seed that is hybrid seed or a statement such as "contains
from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
must be shown on the label in conjunction with the kind.

(c) Blends must be listed on the label using the term "blend" in conjunction with
the kind.

(d) Mixtures must be listed on the label using the term "mixture," "mix," or "mixed."

(e) The label must contain the lot number or other lot identification.

(f) The origin may be omitted from the label.

(g) The label must contain the year for which the seed was packed for sale listed as
"packed for (year)" for seed with a percentage of germination that exceeds the standard last
established by the commissioner, the percentage of germination and the calendar month
and year that the percentages were determined by test, or the calendar month and year the
germination test was completed and the statement "sell by (month and year listed here),"
which may be no more than 12 months from the date of test, exclusive of the month of test.

(h) For flower seeds which germinate less than the standard last established by
the commissioner, the label must show:

(1) percentage of germination exclusive of hard or dormant seed or both;

(2) percentage of hard or dormant seed or both, if present; and

(3) the words "below standard" in not less than eight point type and the month and
year this percentage was determined by test.

(i) The label must show the net weight of contents new text begin or a statement indicating the
number of seeds in the container, or both,
new text end on either the container or the labeldeleted text begin , except that
for containers with contents of 200 seeds or less a statement indicating the number of
seeds in the container may be listed along with or in lieu of the net weight of contents
deleted text end .

(j) The heading for and percentage by weight of pure seed may be omitted from a
label if the total is more than 90 percent.

(k) The heading for and percentage by weight of weed seed may be omitted from a
label if they are not present in the seed.

(l) The heading "noxious weed seeds" may be omitted from a label if they are not
present in the seed.

(m) The heading for and percentage by weight of other crop seed may be omitted
from a label if it is less than five percent.

(n) The heading for and percentage by weight of inert matter may be omitted from a
label if it is less than ten percent.

(o) The label must show the name and address of the person who labeled the seed
or who sells the seed within this state, or a code number which has been registered with
the commissioner.

Sec. 28.

Minnesota Statutes 2010, section 35.0661, subdivision 2, is amended to read:


Subd. 2.

Quarantine zones.

Upon an emergency declaration by the governor
under subdivision 1, the board or any licensed veterinarian designated by the board may
establish quarantine zones of control in any area where a specific animal is deemed by a
licensed veterinarian as likely to be infected with the disease based on an actual veterinary
examination or laboratory testing. Quarantine zones of controlnew text begin to restrict the movement of
livestock
new text end must be the smallest size practicable to prevent the spread of disease and must
exist for the shortest duration consistent with effective disease control. deleted text begin A quarantine zone
of control must not extend beyond a radius of three miles from an animal deemed as likely
to be infected with the disease, unless the board has adopted a rule regarding a specific
disease requiring a larger quarantine zone of control.
deleted text end

Sec. 29.

Minnesota Statutes 2010, section 35.0661, subdivision 3, is amended to read:


Subd. 3.

Restrictions on movement out of quarantine zones.

(a) The board may
issue orders restricting the movement of persons, deleted text begin livestock,deleted text end machinery, and personal
property deleted text begin out of zonesdeleted text end new text begin off infected premisesnew text end designated by the board as quarantined under
subdivision 2. The executive director of the board or any licensed veterinarian designated
by the board may issue the orders. An order may be issued upon a determination that
reasonable cause exists to believe that the movement of persons or personal property out
of a quarantine zone will reasonably threaten to transport a dangerous, infectious, or
communicable disease outside of the quarantine zone.

(b) The order must be served upon any person subject to the order. The restrictions
sought by the board on movement out of a quarantine zone must be limited to the greatest
extent possible consistent with the paramount disease control objectives as determined by
the board. An order under this section may be served on any day at any time. The order
must include a notice of the person's rights under this section, including the ability to enter
into an agreement to abide by disease control measures under paragraph (c) and the right
to request a court hearing under paragraph (d).

(c) No person may be restricted by an order under this subdivision for longer than 72
hours, exclusive of Saturdays, Sundays, and legal holidays, so long as the person agrees to
abide by the disease control measures established by the board. The person shall sign an
acknowledgment form prepared by the board evidencing the person's agreement to abide
by the disease control measures established by the board.

(d) A person whose movements are restricted by an order under this subdivision may
seek a district court hearing on the order at any time after it is served on the person. The
hearing may be held by electronic means as soon as possible. The subject of the order may:

(1) contest imposition of the order on grounds that it is an abuse of the board's
discretion under this section; or

(2) seek a variance from it to allow movement of a person inconsistent with the
order, upon a showing that the person would otherwise suffer irreparable harm.

Sec. 30.

Minnesota Statutes 2010, section 223.17, subdivision 6, is amended to read:


Subd. 6.

Financial statements.

deleted text begin For the purpose of fixing or changing the amount of
a required bond or for any other proper reason,
deleted text end The commissioner deleted text begin shalldeleted text end new text begin maynew text end require an
annual financial statement from a licensee which has been prepared in accordance with
generally accepted accounting principles and which meets the following requirements:

(a) The financial statement shall include, but not be limited to the following: (1)
a balance sheet; (2) a statement of income (profit and loss); (3) a statement of retained
earnings; (4) a statement of changes in financial position; and (5) a statement of the dollar
amount of grain purchased in the previous fiscal year of the grain buyer.

(b) The financial statement shall be accompanied by a compilation report of the
financial statement that is prepared by a grain commission firm or a management firm
approved by the commissioner or by an independent public accountant, in accordance with
standards established by the American Institute of Certified Public Accountants. Grain
buyers purchasing less than 150,000 bushels of grain per calendar year may submit a
financial statement prepared by a public accountant who is not an employee or a relative
within the third degree of kindred according to civil law.

(c) The financial statement shall be accompanied by a certification by the chief
executive officer or the chief executive officer's designee of the licensee, under penalty
of perjury, that the financial statement accurately reflects the financial condition of the
licensee for the period specified in the statement.

Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. Any
grain buyer having a net worth in excess of $500,000,000 need not file the financial
statement required by this subdivision but must provide the commissioner with a certified
net worth statement. All financial statements filed with the commissioner are private or
nonpublic data as provided in section 13.02.

Sec. 31.

Minnesota Statutes 2010, section 223.17, subdivision 9, is amended to read:


Subd. 9.

Defaults; violations.

new text begin It is a violation of this chapter new text end if the commissioner
finds, after an investigation is conducted, that a complaint is valid or that a licensee is in
violation of the provisions of this chapterdeleted text begin , the commissioner may immediately suspend
the license, in which case the licensee shall surrender the license to the commissioner.
Within 15 days, the licensee may request an administrative hearing subject to chapter 14
to determine whether the license should be revoked. If no request is made within 15 days,
the commissioner shall revoke the license
deleted text end .

Sec. 32.

Minnesota Statutes 2010, section 231.36, is amended to read:


231.36 FALSIFICATION OR DESTRUCTION OF ACCOUNTS.

Any personnew text begin is in violation of this chapternew text end who deleted text begin shalldeleted text end new text begin :
new text end

new text begin (1)new text end willfully deleted text begin make anydeleted text end new text begin makes anew text end false entry in the account or in any record or
memorandum kept by a warehouse operator or household goods warehouse operatordeleted text begin ,
or who shall
deleted text end new text begin ;
new text end

new text begin (2)new text end willfully deleted text begin destroydeleted text end new text begin destroysnew text end , deleted text begin mutilatedeleted text end new text begin mutilatesnew text end , deleted text begin alterdeleted text end new text begin altersnew text end , or by any other means
or device, deleted text begin falsifydeleted text end new text begin falsifiesnew text end a record of any such account, record, or memorandumdeleted text begin , or who
shall
deleted text end new text begin ;
new text end

new text begin (3)new text end willfully deleted text begin neglectdeleted text end new text begin neglectsnew text end or deleted text begin faildeleted text end new text begin failsnew text end to make full, true, and correct entries in such
accounts, records, or memoranda, of all facts and transactions appertaining to the business
of the warehouse operator or household goods warehouse operatordeleted text begin ,deleted text end new text begin ;new text end or deleted text begin shall keep any
deleted text end

new text begin (4) keepsnew text end accounts or records with the intent to evade the provisions of this chapterdeleted text begin ,
is guilty of a gross misdemeanor and, upon conviction, is subject to imprisonment not
exceeding one year or to a fine not exceeding $3,000, or both
deleted text end .

Sec. 33.

Minnesota Statutes 2010, section 231.38, is amended to read:


231.38 PENALTY FOR TRANSACTING BUSINESS WITHOUT A LICENSE.

Any person who shall transact the business of a warehouse operator or household
goods warehouse operator, except for the purpose of winding up the same under the
supervision of the department, without first procuring a license and giving a bond or
providing proof of insurance as provided for in this chapter and any licensed warehouse
operator or household goods warehouse operator who shall operate any warehouse without
obtaining the permit herein provided for or who shall continue to transact such business
after such license has expired or the required insurance has lapsed or such bond may have
become void or found insufficient security for the penal sum in which it is executed by the
department approving the same is deleted text begin guilty of a gross misdemeanor and, upon conviction,
shall be fined in a sum not less than $100 nor more than $3,000 for each and every day
the business is carried on before the license or permit, as the case may be, is issued or
after the expiration of such license or permit or after receiving notice from the department
that the insurance has lapsed or bond has become void or has been found insufficient
security; and the operation of such warehouse operator or household goods warehouse
operator may be enjoined upon complaint of the department before a court of competent
jurisdiction
deleted text end new text begin in violation of this chapternew text end .

A warehouse operator or household goods warehouse operator has 30 days after a
license or permit has expired or insurance has lapsed or bond become void or been found
insufficient before the penalty in this section applies.

Sec. 34.

Minnesota Statutes 2010, section 231.39, is amended to read:


231.39 PERSONS VIOLATING ACT OR ORDER; PENALTY.

Any warehouse operator or household goods warehouse operator and each person
who, either individually or acting as an officer, agent, or employee of a warehouse
operator or household goods warehouse operator, violates or fails to comply with any
provisions of this chapter, or fails to observe, obey, or comply with any order, decision,
rule, direction, or requirement or any part or portion thereof of the department made or
issued under authority of this chapter or who procures, aids, or abets any warehouse
operator or household goods warehouse operator in the violation of this chapter or in
the failure to observe, obey, or comply deleted text begin with this chapter or any such order, decision,
rule, direction, or requirement or any part or portion thereof in a case in which a penalty
is not otherwise provided for in this chapter is guilty of a gross misdemeanor and, upon
conviction, shall be punished by a fine not exceeding $3,000 or by imprisonment not
exceeding one year or both
deleted text end new text begin is in violation of this chapternew text end .

deleted text begin Each violation of this chapter, or of any order, decision, rule, direction, or
requirement of the department, or any part or portion thereof, by any warehouse operator
or household goods warehouse operator is a separate and distinct offense.
deleted text end

deleted text begin In construing and enforcing the provisions of this chapter relating to penalties, the
act, omission, or failure of any officer, agent, or employee of any warehouse operator
or household goods warehouse operator, acting within the scope of official duties or
employment, shall in each case be and be deemed to be the act, omission, or failure of
such warehouse operator or household goods warehouse operator.
deleted text end

Sec. 35.

Minnesota Statutes 2010, section 232.22, subdivision 3, is amended to read:


Subd. 3.

Fees; grain buyers and storage account.

There is created in the
agricultural fund an account known as the grain buyers and storage account. The
commissioner shall set the fees for deleted text begin inspectionsdeleted text end new text begin examinationsnew text end , certificationsnew text begin ,new text end and licenses
under sections 232.20 to 232.25 at levels necessary to pay the costs of administering and
enforcing sections 232.20 to 232.25. All money collected pursuant to sections 232.20
to 232.25 and chapters 233 and 236 shall be paid by the commissioner into the state
treasury and credited to the grain buyers and storage account and is appropriated to the
commissioner for the administration and enforcement of sections 232.20 to 232.25 and
chapters 233 and 236. All money collected pursuant to chapter 231 shall be paid by
the commissioner into the grain buyers and storage account and is appropriated to the
commissioner for the administration and enforcement of chapter 231.

The fees for a license to store grain are as follows:

(a) For a license to store grain, $110 for each home rule charter or statutory city or
town in which a public grain warehouse is operated.

(b) A person with a license to store grain in a public grain warehouse is subject to
an examination fee for each licensed location, based on the following schedule for one
examination:

Bushel Capacity
Examination
Fee
Less than 150,001
$
300
150,001 to 250,000
$
425
250,001 to 500,000
$
545
500,001 to 750,000
$
700
750,001 to 1,000,000
$
865
1,000,001 to 1,200,000
$
1,040
1,200,001 to 1,500,000
$
1,205
1,500,001 to 2,000,000
$
1,380
More than 2,000,000
$
1,555

(c) The fee for the second examination is $55 per hour per examiner for warehouse
operators who choose to have it performed by the commissioner.

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by
the commissioner for each month for which the fees are delinquent.

Sec. 36.

Minnesota Statutes 2010, section 232.22, subdivision 4, is amended to read:


Subd. 4.

Bonding.

new text begin (a) new text end Before a license is issued, the applicant for a public grain
warehouse operator's license shall file with the commissioner a bond in a penal sum
prescribed by the commissionerdeleted text begin . The penal sum on a condition one bond shall be
established by rule by the commissioner pursuant to the requirements of chapter 14 for all
grain outstanding on grain warehouse receipts. The penal sum on a condition two bond
shall not be less than $10,000 for each location up to a maximum of five locations.
deleted text end new text begin based
on 50 percent of the net liability as stated on the statement of grain in storage report and
applying the following amounts:
new text end

new text begin (1) $10,000 for storages with 50 percent of peak monthly storage liability is more
than $0 but not more than $25,000;
new text end

new text begin (2) $20,000 for storages with 50 percent of peak monthly storage liability is more
than $25,001 but not more than $50,000;
new text end

new text begin (3) $30,000 for storages with 50 percent of peak monthly storage liability is more
than $50,001 but not more than $75,000;
new text end

new text begin (4) $50,000 for storages with 50 percent of peak monthly storage liability is more
than $75,001 but not more than $100,000;
new text end

new text begin (5) $75,000 for storages with 50 percent of peak monthly storage liability is more
than $100,001 but not more than $200,000;
new text end

new text begin (6) $125,000 for storages with 50 percent of peak monthly storage liability is more
than $200,001 but not more than $300,000;
new text end

new text begin (7) $175,000 for storages with 50 percent of peak monthly storage liability is more
than $300,001 but not more than $400,000;
new text end

new text begin (8) $225,000 for storages with 50 percent of peak monthly storage liability is more
than $400,001 but not more than $500,000;
new text end

new text begin (9) $275,000 for storages with 50 percent of peak monthly storage liability is more
than $500,001 but not more than $600,000;
new text end

new text begin (10) $325,000 for storages with 50 percent of peak monthly storage liability is more
than $600,001 but not more than $700,000;
new text end

new text begin (11) $425,000 for storages with 50 percent of peak monthly storage liability is more
than $800,001 but not more than $900,000;
new text end

new text begin (12) $475,000 for storages with 50 percent of peak monthly storage liability is more
than $900,001 but not more than $1,000,000; and
new text end

new text begin (13) $500,000 for storages with 50 percent of peak monthly storage liability is
more than $1,000,000.
new text end

new text begin (b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.
new text end

Sec. 37.

Minnesota Statutes 2010, section 232.22, subdivision 5, is amended to read:


Subd. 5.

Statement of grain in storage; reports.

(a) All public grain warehouse
operators must by deleted text begin the tenth day of each monthdeleted text end new text begin February 15 of each yearnew text end file with the
commissioner on deleted text begin formsdeleted text end new text begin a formnew text end approved by the commissioner a report showing the
new text begin highest monthly new text end net liability of all grain outstanding on grain warehouse receipts deleted text begin as of the
close of business on the last day of
deleted text end new text begin that occurred duringnew text end the preceding deleted text begin monthdeleted text end new text begin calendar
year
new text end . This report shall be used for the purpose of establishing the penal sum of the bond.

new text begin (b) Warehouse operators that are at a maximum bond and want to continue at
maximum bond do not need to file this report.
new text end

deleted text begin (b) Ifdeleted text end new text begin (c) It is a violation of this chapter fornew text end any public grain warehouse operator
deleted text begin willfully neglects or refusesdeleted text end new text begin to failnew text end to file the report required in clause (a) deleted text begin for two
consecutive months, the commissioner may immediately suspend the person's license
and the licensee must surrender the license to the commissioner. Within 15 days the
licensee may request an administrative hearing subject to chapter 14 to determine if the
license should be revoked. If no request is made within 15 days the commissioner shall
revoke the license
deleted text end .

deleted text begin (c)deleted text end new text begin (d)new text end Every public grain warehouse operator shall keep in a place of safety complete
and accurate records and accounts relating to any grain warehouse operated. The records
shall reflect each commodity received and shipped daily, the balance remaining in the
grain warehouse at the close of each business day, a listing of all unissued grain warehouse
receipts in the operator's possession, a record of all grain warehouse receipts issued which
remain outstanding and a record of all grain warehouse receipts which have been returned
for cancellation. Copies of grain warehouse receipts or other documents evidencing
ownership of grain by a depositor, or other liability of the grain warehouse operator, shall
be retained as long as the liability exists but must be kept for a minimum of three years.

deleted text begin (d)deleted text end new text begin (e)new text end Every public grain warehouse operator must maintain in the grain warehouse
at all times grain of proper grade and sufficient quantity to meet delivery obligations on
all outstanding grain warehouse receipts.

Sec. 38.

Minnesota Statutes 2010, section 232.23, subdivision 5, is amended to read:


Subd. 5.

Void agreements; penalty.

A provision or agreement in a grain warehouse
receipt not contained in subdivision 4 is void. The failure to issue a grain warehouse
receipt, as directed, or the issuance of slips, memoranda or other forms of receipt
embracing a different grain warehouse or storage contract is a deleted text begin misdemeanordeleted text end new text begin violationnew text end ,
and no slip, memorandum or other form of receipt is admissible as evidence in any civil
action. Nothing in sections 232.20 to 232.25 requires or compels any person operating a
flour, cereal or feed mill or malthouse doing a manufacturing business, to receive, store or
purchase at the mill or malthouse any kind of grain.

Sec. 39.

Minnesota Statutes 2010, section 232.23, subdivision 10, is amended to read:


Subd. 10.

Delivery of grain.

deleted text begin (a)deleted text end On the redemption of a grain warehouse receipt
and payment of all lawful charges, the grain represented by the receipt is immediately
deliverable to the depositor or the depositor's order, and is not subject to any further charge
for storage after demand for delivery has been made and proper facilities for receiving and
shipping the grain have been provided. If delivery has not commenced within 48 hours
after demand has been made and proper facilities have been provided, the public grain
warehouse operator issuing the grain warehouse receipt is liable to the owner in damages
not exceeding two cents per bushel for each day's delay, unless the public grain warehouse
operator makes delivery to different owners in the order demanded as rapidly as it can be
done through ordinary diligence, or unless insolvency has occurred.

deleted text begin (b) If a disagreement arises between the person receiving and the person delivering
the grain at a public grain warehouse in this state as to the proper grade or dockage of any
grain, an average sample of at least three quarts of the grain in dispute may be taken by
either or both of the persons interested. The sample shall be certified by both the owner
and the public grain warehouse operator as being true samples of the grain in dispute
on the delivery day. The samples shall be forwarded in a suitable airtight container by
parcel post or express, prepaid, with the name and address of both parties, to the head of
the grain inspection program of the Department of Agriculture, who shall, upon request,
examine the grain, and determine what grade or dockage the samples of grain are entitled
to under the inspection rules. Before the results of the inspection are released to the person
requesting the inspection, the person shall pay the required fee. The fee shall be the same
as that required for similar services rendered by the grain inspection program.
deleted text end

Sec. 40.

Minnesota Statutes 2010, section 232.24, subdivision 1, is amended to read:


Subdivision 1.

Schedule of deleted text begin inspectiondeleted text end new text begin examinationnew text end .

A licensee under sections
232.20 to 232.25 is subject to two deleted text begin auditsdeleted text end new text begin examinationsnew text end annually conducted by the
commissioner or the agricultural marketing service of the United States Department of
Agriculture. The commissioner may, by rule, authorize one deleted text begin auditdeleted text end new text begin examinationnew text end to be
conducted by a qualified nongovernmental unit.

Sec. 41.

Minnesota Statutes 2010, section 232.24, subdivision 2, is amended to read:


Subd. 2.

Financial reports.

A licensee under sections 232.20 to 232.25 new text begin upon request
new text end must provide to the commissioner a copy of the financial reports of an audit conducted by
a qualified nongovernmental unit containing information the commissioner requires.

Sec. 42.

Minnesota Statutes 2010, section 236.02, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Statement of grain in storage; reports. new text end

new text begin (a) Annually by February 15
each grain bank operator must file with the commissioner on a form approved by the
commissioner a report showing the highest monthly net liability of all grain outstanding
on grain bank receipts that occurred during the preceding calendar year. This report must
be used for the purpose of establishing the sum of the bond.
new text end

new text begin (b) Grain bank operators that are at maximum bond and want to continue at
maximum bond do not need to file this report.
new text end

new text begin (c) It is a violation of this chapter for a public grain bank operator to fail to file
the report required in clause (a).
new text end

Sec. 43.

Minnesota Statutes 2010, section 236.02, subdivision 5, is amended to read:


Subd. 5.

deleted text begin Bonddeleted text end new text begin Bondingnew text end .

deleted text begin A license may not be issued for the operation of a
grain bank until the applicant has filed with the department a bond in a sum set by the
department. The bond may not be less than $1,500 for each license and must at all times
be large enough to protect the holders of outstanding grain bank receipts. Bonds must be
filed annually and cover the period of the grain bank license.
deleted text end new text begin (a) Before a license is issued,
the applicant for a grain bank operator's license shall file with the commissioner a bond in
a penal sum prescribed by the commissioner based on 50 percent of the net liability as
stated on the statement of grain in storage report and applying the following amounts:
new text end

new text begin (1) $1,500 for storages with 50 percent of peak monthly storage liability is more
than $0 but not more than $5,000;
new text end

new text begin (2) $3,000 for storages with 50 percent of peak monthly storage liability is more
than $5,001 but not more than $10,000;
new text end

new text begin (3) $8,000 for storages with 50 percent of peak monthly storage liability is more
than $10,001 but not more than $25,000;
new text end

new text begin (4) $15,000 for storages with 50 percent of peak monthly storage liability is more
than $25,001 but not more than $50,000;
new text end

new text begin (5) $35,000 for storages with 50 percent of peak monthly storage liability is more
than $50,001 but not more than $100,000;
new text end

new text begin (6) $75,000 for storages with 50 percent of peak monthly storage liability is more
than $100,001 but not more than $200,000;
new text end

new text begin (7) $125,000 for storages with 50 percent of peak monthly storage liability is more
than $200,001 but not more than $300,000; and
new text end

new text begin (8) $150,000 for storages with 50 percent of peak monthly storage liability is more
than $300,001.
new text end

new text begin (b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.
new text end

Bonds must run to the state of Minnesota and be for the benefit of all persons storing
grain in a grain bank. They must be conditioned upon the faithful performance by the
grain bank operator of the law relating to the operation of grain banks by the grain bank
operator and related rules of the department. deleted text begin The department may require increases in
the amounts of bonds as it considers necessary for the protection of grain bank receipt
holders.
deleted text end The surety of grain bank bonds must be a corporate surety company authorized to
transact business in Minnesota.

Sec. 44. new text begin APPROPRIATIONS AVAILABLE UNTIL SPENT.
new text end

new text begin The appropriations in Laws 2009, chapter 172, article 2, section 2, paragraph (d), for
research and pilot projects related to ways agricultural practices contribute to restoring
impaired waters and assist with the development of total maximum daily load plans,
are available until spent.
new text end

Sec. 45. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 27.19, subdivisions 2 and 3; 27.20; 223.18;
231.035; 231.28; 232.24, subdivision 3; 232.25; and 236.09,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1505.0780; 1505.0810; 1562.0100, subparts 3, 4, 5,
6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25; 1562.0200;
1562.0700, subparts 1b and 3; 1562.0900; and 1562.1300,
new text end new text begin are repealed.
new text end