HF 1717

1st Unofficial Engrossment - 90th Legislature (2017 - 2018)

Posted on 05/17/2017 08:35 a.m.

1.1A bill for an act 1.2relating to agriculture; making policy and technical changes to various 1.3agricultural-related provisions; reorganizing dairy law; making conforming changes; 1.4amending Minnesota Statutes 2016, sections 13.6435, subdivision 8; 15.985; 1.517.119, subdivision 1; 17.53, subdivisions 2, 8, 13; 17.983, subdivision 1; 17.984, 1.6subdivision 1; 18B.01, by adding subdivisions; 18B.26, subdivision 1; 18B.28, 1.7subdivisions 1, 3; 18B.305, subdivision 1; 18B.33, subdivision 1; 18B.34, 1.8subdivision 1; 18B.36, subdivision 1; 18B.37, subdivision 3; 18C.70, subdivision 1.95; 18C.71, subdivision 4; 18H.06, subdivision 2; 18H.07, subdivisions 2, 3; 21.111, 1.10subdivisions 2, 3; 21.113; 21.117; 25.32; 25.33, subdivisions 5, 10, 21; 25.341, 1.11subdivisions 1, 2; 25.35; 25.371, subdivision 2; 25.38; 25.39, subdivisions 1, 1a, 1.122, 3; 25.40, subdivision 2; 25.41, subdivisions 1, 2, 3, 5, 7a; 25.42; 25.43; 27.04; 1.1327.041, subdivision 1; 28A.21, subdivision 6; 31A.02, subdivision 4; 32C.02, 1.14subdivision 2; 32C.06; 34A.01, subdivision 1; 41B.03, subdivisions 2, 3; 41B.043, 1.15subdivision 5; 41B.045, subdivision 2; 41C.02, subdivision 12; 116V.01, 1.16subdivisions 1, 2, 3, 4, 7, 10, 11, 13, 14; 223.17, subdivision 8; 232.22, subdivision 1.177; proposing coding for new law as Minnesota Statutes, chapter 32D; repealing 1.18Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, 22a; 18B.285; 1.1925.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15; 32.01, subdivisions 1.201, 2, 6, 8, 9, 10, 11, 12; 32.021; 32.071; 32.072; 32.073; 32.074; 32.075; 32.076; 1.2132.078; 32.10; 32.102; 32.103; 32.105; 32.106; 32.21; 32.212; 32.22; 32.25; 32.391, 1.22subdivisions 1, 1d, 1e, 1f, 1g, 2, 3; 32.392; 32.393; 32.394, subdivisions 1, 2, 3, 1.234, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, 12; 32.395; 32.397; 32.398, subdivision 1; 1.2432.401, subdivisions 1, 2, 3, 5; 32.415; 32.416; 32.475; 32.481, subdivision 1; 1.2532.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3, 4, 5, 12, 13, 14; 32.555; 1.2632.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72; 32.74; 32.745; 1.2732.75; 32.90; 41D.01, subdivision 4. 1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.29ARTICLE 1 1.30AGRICULTURAL POLICY 1.31    Section 1. Minnesota Statutes 2016, section 15.985, is amended to read: 1.3215.985 ADVISORY INSPECTIONS. 2.1(a) Upon the voluntary request of a person to a state agency for an advisory inspection 2.2for the purpose of complying with state law, the agency must, except as provided in 2.3paragraphs (f) and (g), conduct an advisory inspection. An agency is not required to conduct 2.4an advisory inspection if the agency has a regularly scheduled inspection that would occur 2.5within 90 days after the request for the advisory inspection, or if before an advisory inspection 2.6is requested, the agency has notified the person that it will be conducting an inspection 2.7within 45 days. If an advisory inspection results in findings that potentially could make a 2.8person subject to a fine or other penalty imposed by the agency, the agency must notify the 2.9person in writing of those findings within ten days of the inspection. 2.10(1) Except as provided in clause (2), if within 60 days of receiving notice, the person 2.11notifies the agency that it has corrected the situation that made the person potentially subject 2.12to the fine or penalty, and the agency later determines that the situation is corrected, the 2.13agency may not impose a fine or penalty as a result of the findings in the advisory inspection. 2.14    (2) For violations of chapter 177, if the person notifies the agency within the time period 2.15for remedying violations required under the applicable section of chapter 177 that it has 2.16corrected the situation that made the person potentially subject to the fine or penalty, and 2.17the agency later determines that the situation is corrected, the agency may not impose a fine 2.18or penalty as a result of the finding in the advisory inspection. 2.19    (3) A person may not request more than one advisory inspection from the same agency 2.20in a calendar year. A person may not request an advisory inspection after an inspection 2.21resulting in a fine or other penalty has been determined and the violator notified of the 2.22amount to be paid, until fines or penalties have been paid or settled. 2.23(b) For purposes of this section: 2.24(1) "inspection" includes an examination of real or personal property or an audit or other 2.25examination of financial or other documents; 2.26(2) "penalty" includes a civil or administrative fine or other financial sanction; 2.27(3) "person" includes a real person and businesses, including corporations, partnerships, 2.28limited liability companies, and unincorporated associations; and 2.29(4) "state agency" means a department, agency, board, commission, constitutional office, 2.30or other group in the executive branch of state government. 2.31(c) If an agency revises, amends, extends, or adds additional violations to a notice, the 2.32person has 60 days from the date of those changes to correct the situation without fine or 3.1penalty. For violations of chapter 177, the person has the time period for remedying violations 3.2under the applicable section of chapter 177 to correct the situation without fine or penalty. 3.3    (d) An agency conducting an inspection under this section may impose and collect from 3.4the person requesting the inspection a fee equal to the costs incurred by the agency related 3.5to the inspection. Fees under this section shall be considered charges for goods and services 3.6provided for the direct and primary use of a private individual, business, or other entity 3.7under section 16A.1283, paragraph (b), clause (3). Fee revenue collected under this section 3.8must be deposited in an appropriate fund other than the general fund and is appropriated 3.9from that fund to the agency collecting the fee for the purpose of conducting inspections 3.10under this section. 3.11    (e) Nothing in this section shall prohibit or interfere with an agency offering similar 3.12programs that allow independent audits or inspections, including the environmental 3.13improvement program under chapter 114C. If a person conducts a self-audit under chapter 3.14114C, the terms and conditions of this section do not apply. For advisory inspections 3.15conducted by the Pollution Control Agency, terms and conditions of sections 114C.20 to 3.16114C.28 shall be used instead of those in paragraphs (a) to (c) and (g). 3.17(f) If agency staff resources are limited, an agency must give higher priority to the 3.18agency's regular inspections over advisory inspections under this section. Insofar as 3.19conducting advisory inspections reduces an agency's costs, the savings must be reflected 3.20in the charges for advisory inspections. Before hiring additional staff complement for 3.21purposes of this section, an agency must report to the chairs and ranking minority members 3.22of the legislative budget committees with jurisdiction over the agency documenting: (1) the 3.23demand for advisory inspections and why additional staff complement is needed to meet 3.24the demand; and (2) that the revenue generated by advisory inspections will cover the 3.25expenses of the additional staff complement. If a person requests an advisory inspection, 3.26but the agency does not have staff resources necessary to conduct the advisory inspection 3.27before a regular inspection is conducted, and the regular inspection results in findings that 3.28could make a person subject to a fine or penalty, the agency must take into account the 3.29person's request for an advisory inspection and the person's desire to take corrective action 3.30before taking any enforcement action against the person. 3.31(g) This section does not apply to: 3.32(1) criminal penalties; 3.33(2) situations in which implementation of this section is prohibited by federal law or 3.34would result in loss of federal funding or in other federal sanctions or in which 4.1implementation would interfere with multistate agreements, international agreements, or 4.2agreements between state and federal regulatory agencies; 4.3(3) conduct constituting fraud; 4.4(4) violations in a manner that endangers human life or presents significant risk of major 4.5injury or severe emotional harm to humans; 4.6(5) violations that are part of a pattern that has occurred repeatedly and shows willful 4.7intent; 4.8(6) violations for which it may be demonstrated that the alternative inspections process 4.9is being used to avoid enforcement; 4.10(7) violations that occur within three years of violating an applicable law; 4.11(8) the Department of Revenue; 4.12(9) the Workers' Compensation Division at the Department of Labor and Industry; 4.13(10) violations of vehicle size weight limits under sections 169.80 to 169.88; 4.14(11) commercial motor vehicle inspections under section 169.781 and motor carrier 4.15regulations under chapter 221; 4.16(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the 4.17division provides free inspections similar to those under this section; 4.18(13) new text begin (12) new text end state inspections or surveys of hospitals, nursing homes, outpatient surgical 4.19centers, supervised living facilities, board and lodging with special services, home care, 4.20housing with services and assisted living settings, hospice, and supplemental nursing services 4.21agencies; 4.22(14) new text begin (13) new text end examinations of health maintenance organizations or county-based purchasing 4.23entities regulated under chapter 62D; 4.24(15) new text begin (14) new text end special transportation services under section 174.30; and 4.25(16) new text begin (15) new text end entities regulated by the Department of Commerce's Financial Institutions and 4.26Insurance Divisions for purposes of regulatory requirements of those divisions. 4.27If an agency determines that this section does not apply due to situations specified in clause 4.28(2), the agency must report the basis for that determination to the chairs and ranking minority 4.29members of the legislative committees with jurisdiction over the agency. 4.30(h) An agency may terminate an advisory inspection and proceed as if an inspection 4.31were a regular inspection if, in the process of conducting an advisory inspection, the agency 5.1finds a situation that the agency determines: could lead to criminal penalties; endangers 5.2human life or presents significant risk of major injury or severe emotional harm to humans; 5.3presents a severe and imminent threat to animals, food, feed, crops, commodities, or the 5.4environment; or evidences a pattern of willful violations. 5.5    Sec. 2. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read: 5.6    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share grants 5.7to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible 5.8tractors with eligible rollover protective structures. 5.9 new text begin (b) new text end Grants new text begin for farmers new text end are limited to 70 percent of the farmer's or school's documented 5.10cost to purchase, ship, and install an eligible rollover protective structure. The commissioner 5.11must increase the new text begin a farmer's new text end grant award amount over the 70 percent grant limitation 5.12requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500. 5.13 new text begin (c) Schools are eligible for grants that cover the full amount of a school's documented new text end 5.14 new text begin cost to purchase, ship, and install an eligible rollover protective structure. new text end 5.15(b) new text begin (d) new text end A rollover protective structure is eligible if it meets or exceeds SAE International 5.16standard J2194 new text begin is certified to appropriate national or international rollover protection structure new text end 5.17 new text begin standards with a seat belt new text end . 5.18(c) new text begin (e) new text end A tractor is eligible if the tractor was built before 1987. 5.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from July 1, 2016. new text end 5.20    Sec. 3. Minnesota Statutes 2016, section 17.53, subdivision 2, is amended to read: 5.21    Subd. 2. Agricultural commodity. (a) Except as provided in paragraph (b), "agricultural 5.22commodity" means any agricultural product, including, without limitation, animals and 5.23animal products, grown, raised, produced, or fed within Minnesota for use as food, feed, 5.24seed, or any industrial or chemurgic purpose. 5.25(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "agricultural commodity" means 5.26wheat, barley, and cultivated wild rice including, without limitation, wheat, barley, and 5.27cultivated wild rice grown or produced within or outside Minnesota, for use as food, feed, 5.28seed, or any industrial or chemurgic purpose. 5.29    Sec. 4. Minnesota Statutes 2016, section 17.53, subdivision 8, is amended to read: 5.30    Subd. 8. First purchaser. (a) Except as provided in paragraph (b), "first purchaser" 5.31means any person that buys agricultural commodities for movement into commercial channels 6.1from the producer; or any lienholder, secured party or pledgee, public or private, or assignee 6.2of said lienholder, secured party or pledgee, who gains title to the agricultural commodity 6.3from the producer as the result of exercising any legal rights by the lienholder, secured 6.4party, pledgee, or assignee thereof, regardless of when the lien, security interest or pledge 6.5was created and regardless of whether the first purchaser is domiciled within the state or 6.6without. "First purchaser" does not mean the Commodity Credit Corporation when a 6.7commodity is used as collateral for a federal nonrecourse loan unless the commissioner 6.8determines otherwise. 6.9(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "first purchaser" means a person 6.10who buys, receives delivery of, or provides storage for the agricultural commodity from a 6.11producer for movement into commercial channels; or a lienholder, secured party, or pledgee, 6.12who gains title to the agricultural commodity from the producers as the result of exercising 6.13any legal rights by the lienholder, secured party, pledgee, or assignee, regardless of when 6.14the lien, security interest, or pledge was created and regardless of whether or not the first 6.15purchaser is domiciled in the state. "First purchaser" does not mean the Commodity Credit 6.16Corporation when the wheat, barley, or cultivated wild rice is used as collateral for a federal 6.17nonrecourse loan unless the commissioner determines otherwise. 6.18    Sec. 5. Minnesota Statutes 2016, section 17.53, subdivision 13, is amended to read: 6.19    Subd. 13. Producer. (a) Except as provided in paragraph (b), "producer" means any 6.20person who owns or operates an agricultural producing or growing facility for an agricultural 6.21commodity and shares in the profits and risk of loss from such operation, and who grows, 6.22raises, feeds or produces the agricultural commodity in Minnesota during the current or 6.23preceding marketing year. 6.24(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "producer" means in addition to 6.25the meaning in paragraph (a) and for the purpose of the payment or the refund of the checkoff 6.26fee paid pursuant to sections 17.51 to 17.69 only, a person who delivers into, stores within, 6.27or makes the first sale of the agricultural commodity in Minnesota. 6.28    Sec. 6. Minnesota Statutes 2016, section 17.983, subdivision 1, is amended to read: 6.29    Subdivision 1. Administrative penalties; citation. If a person has violated a provision 6.30of chapter 25, 31B, or 32 new text begin 32D new text end , the commissioner may issue a written citation to the person 6.31by personal service or by certified mail. The citation must describe the nature of the violation 6.32and the statute or rule alleged to have been violated; state the time for correction, if 6.33applicable; and the amount of any proposed fine. The citation must advise the person to 7.1notify the commissioner in writing within 30 days if the person wishes to appeal the citation. 7.2If the person fails to appeal the citation, the citation is the final order and not subject to 7.3further review. 7.4    Sec. 7. Minnesota Statutes 2016, section 17.984, subdivision 1, is amended to read: 7.5    Subdivision 1. Authority. To carry out the commissioner's enforcement duties under 7.6chapter 32 new text begin 32D new text end , the commissioner may, upon presenting appropriate credentials, during 7.7regular working hours and at other reasonable times, inspect premises subject to the 7.8commissioner's enforcement and licensing authority for reasons related to the commissioner's 7.9enforcement and licensing authority; request information from persons with information 7.10relevant to an inspection; and inspect relevant papers and records, including business records. 7.11The commissioner may issue notices in lieu of citations for minor violations if a notice is 7.12in the public interest. 7.13    Sec. 8. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 7.14read: 7.15     new text begin Subd. 9b. new text end new text begin Experimental use permit. new text end new text begin "Experimental use permit" means a permit issued new text end 7.16 new text begin by the United States Environmental Protection Agency as authorized in Section 5 of the new text end 7.17 new text begin Federal Insecticide, Fungicide, and Rodenticide Act. new text end 7.18    Sec. 9. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 7.19read: 7.20     new text begin Subd. 9c. new text end new text begin Experimental use pesticide product. new text end new text begin "Experimental use pesticide product" new text end 7.21 new text begin means any federally registered or unregistered pesticide whose use is authorized by an new text end 7.22 new text begin experimental use permit issued by the United States Environmental Protection Agency. new text end 7.23    Sec. 10. Minnesota Statutes 2016, section 18B.26, subdivision 1, is amended to read: 7.24    Subdivision 1. Requirement. (a) Except as provided in paragraphs (b) to (d) new text begin (e) new text end , a person 7.25may not use or distribute a pesticide in this state unless it is registered with the commissioner. 7.26Pesticide registrations expire on December 31 of each year and may be renewed on or before 7.27that date for the following calendar year. 7.28(b) Registration is not required if a pesticide is shipped from one plant or warehouse to 7.29another plant or warehouse operated by the same person and used solely at the plant or 7.30warehouse as an ingredient in the formulation of a pesticide that is registered under this 7.31chapter. 8.1(c) An unregistered pesticide that was previously registered with the commissioner may 8.2be used for a period of two years following the cancellation of the registration of the pesticide, 8.3unless the commissioner determines that the continued use of the pesticide would cause 8.4unreasonable adverse effects on the environment, or with the written permission of the 8.5commissioner. To use the unregistered pesticide at any time after the two-year period, the 8.6pesticide end user must demonstrate to the satisfaction of the commissioner, if requested, 8.7that the pesticide has been continuously registered under a different brand name or by a 8.8different manufacturer and has similar composition, or, the pesticide end user obtains the 8.9written permission of the commissioner. 8.10(d) The commissioner may allow specific pesticide products that are not registered with 8.11the commissioner to be distributed in this state for use in another state. 8.12 new text begin (e) A substance or mixture of substances being tested only to determine its potential new text end 8.13 new text begin efficacy as a pesticide, or to determine its toxicity or other properties, and not requiring the new text end 8.14 new text begin issuance of an experimental use permit under United States Environmental Protection new text end 8.15 new text begin Agency criteria specified in federal regulations, is not required to be registered. new text end 8.16(e) new text begin (f) new text end Each pesticide with a unique United States Environmental Protection Agency 8.17pesticide registration number or a unique brand name must be registered with the 8.18commissioner. 8.19(f) new text begin (g) new text end It is unlawful for a person to distribute or use a pesticide in the state, or to sell 8.20into the state for use in the state, any pesticide product that has not been registered by the 8.21commissioner and for which the applicable pesticide registration application fee, gross sales 8.22fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and 4. 8.23(g) new text begin (h) new text end Every person who sells for use in the state a pesticide product that has been 8.24registered by the commissioner shall pay to the commissioner the applicable registration 8.25application fees, sales fees, and waste pesticide program surcharges. These sales expressly 8.26include all sales made electronically, telephonically, or by any other means that result in a 8.27pesticide product being shipped to or used in the state. There is a rebuttable presumption 8.28that pesticide products that are sold or distributed in or into the state by any person are sold 8.29or distributed for use in the state. 8.30    Sec. 11. Minnesota Statutes 2016, section 18B.28, subdivision 1, is amended to read: 8.31    Subdivision 1. Requirement. A person may not use or distribute an experimental use 8.32pesticide product in the state until it is registered with the commissioner. Experimental use 8.33pesticide product registrations expire on December 31 of each year and may be renewed 9.1on or before that date. new text begin A substance or mixture of substances being tested only to determine new text end 9.2 new text begin its potential efficacy as a pesticide, or to determine its toxicity or other properties, and not new text end 9.3 new text begin requiring the issuance of an experimental use permit under United States Environmental new text end 9.4 new text begin Protection Agency criteria specified in federal regulations, is not required to be registered. new text end 9.5    Sec. 12. Minnesota Statutes 2016, section 18B.28, subdivision 3, is amended to read: 9.6    Subd. 3. Application. A person must file an application for experimental use pesticide 9.7product registration with the commissioner. An application to register an experimental use 9.8pesticide product must include: 9.9(1) the name and address of the applicant; 9.10(2) a federal new text begin copy of the United States new text end Environmental Protection Agency approval 9.11document new text begin permit new text end ; 9.12(3) new text begin a description of new text end the purpose or objectives of the experimental use product; 9.13(4) an new text begin a copy of the experimental use pesticide labeling new text end accepted experimental use 9.14pesticide product label new text begin by the United States Environmental Protection Agency new text end ; 9.15(5) the name, address, and telephone number of cooperators or participants in this state; 9.16(6) the amount of material to be shipped or used in this state; and 9.17(7) other information requested by the commissioner. 9.18    Sec. 13. Minnesota Statutes 2016, section 18B.305, subdivision 1, is amended to read: 9.19    Subdivision 1. Education and training. (a) The commissioner, as the lead agency, shall 9.20develop, implement or approve, and evaluate, in consultation with University of Minnesota 9.21Extension, the Minnesota State Colleges and Universities system, and other educational 9.22institutions, innovative educational and training programs addressing pesticide new text begin and pest new text end 9.23 new text begin management new text end concerns including: 9.24(1) water quality protection; 9.25(2) endangered species protection; 9.26(3) minimizing pesticide residues in food and water; 9.27(4) worker protection and applicator safety; 9.28(5) chronic toxicity; 9.29(6) integrated pest management and pest resistance; 10.1(7) pesticide disposal; 10.2(8) pesticide drift; 10.3(9) relevant laws including pesticide labels and labeling and state and federal rules and 10.4regulations; and 10.5(10) current science and technology updates. 10.6(b) The commissioner shall appoint educational planning committees which must include 10.7representatives of industry and applicators. 10.8(c) Specific current regulatory concerns must be discussed and, if appropriate, 10.9incorporated into each training session. Relevant changes to pesticide product labels or 10.10labeling or state and federal rules and regulations may be included. 10.11(d) The commissioner may approve programs from private industry, higher education 10.12institutions, and nonprofit organizations that meet minimum requirements for education, 10.13training, and certification. 10.14    Sec. 14. Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read: 10.15    Subdivision 1. Requirement. (a) A person may not apply a pesticide for hire without a 10.16commercial applicator license for the appropriate use categories or a structural pest control 10.17license. 10.18    (b) A commercial applicator licensee must have a valid license identification card to 10.19purchase a restricted use pesticide or apply pesticides for hire and must display it upon 10.20demand by an authorized representative of the commissioner or a law enforcement officer. 10.21The commissioner shall prescribe the information required on the license identification 10.22card. 10.23 new text begin (c) A person licensed under this section applying a pesticide consistent with the label new text end 10.24 new text begin and labeling is not required to verify, document, or otherwise prove a particular need prior new text end 10.25 new text begin to or following the application of a pesticide registered under FIFRA, except as required new text end 10.26 new text begin by the label. new text end 10.27    Sec. 15. Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read: 10.28    Subdivision 1. Requirement. (a) Except for a licensed commercial applicator, certified 10.29private applicator, or licensed structural pest control applicator, a person, including a 10.30government employee, may not purchase or use a restricted use pesticide in performance 11.1of official duties without having a noncommercial applicator license for an appropriate use 11.2category. 11.3    (b) A licensee must have a valid license identification card when applying pesticides 11.4and must display it upon demand by an authorized representative of the commissioner or a 11.5law enforcement officer. The license identification card must contain information required 11.6by the commissioner. 11.7 new text begin (c) A person licensed under this section applying a pesticide consistent with the label new text end 11.8 new text begin and labeling is not required to verify, document, or otherwise prove a particular need prior new text end 11.9 new text begin to or following the application of a pesticide registered under FIFRA, except as required new text end 11.10 new text begin by the label. new text end 11.11    Sec. 16. Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read: 11.12    Subdivision 1. Requirement. (a) Except for a licensed commercial or noncommercial 11.13applicator, only a certified private applicator may use a restricted use pesticide to produce 11.14an agricultural commodity: 11.15(1) as a traditional exchange of services without financial compensation; 11.16(2) on a site owned, rented, or managed by the person or the person's employees; or 11.17(3) when the private applicator is one of two or fewer employees and the owner or 11.18operator is a certified private applicator or is licensed as a noncommercial applicator. 11.19(b) A person may not purchase a restricted use pesticide without presenting a license 11.20card, certified private applicator card, or the card number. 11.21 new text begin (c) A person certified under this section applying a pesticide consistent with the label new text end 11.22 new text begin and labeling is not required to verify, document, or otherwise prove a particular need prior new text end 11.23 new text begin to or following the application of a pesticide registered under FIFRA, except as required new text end 11.24 new text begin by the label. new text end 11.25    Sec. 17. Minnesota Statutes 2016, section 18B.37, subdivision 3, is amended to read: 11.26    Subd. 3. Structural pest control applicators. (a) A structural pest control applicator 11.27must maintain a record of each structural pest control application conducted by that person 11.28or by the person's employees. The record must include the: 11.29(1) date of structural pest control application; 11.30(2) target pest; 12.1(3) brand name of the pesticide, United States Environmental Protection Agency 12.2registration number, and amount used; 12.3(4) for fumigation, the temperature and exposure time; 12.4(5) time the pesticide application was completed; 12.5(6) name and address of the customer; 12.6(7) name of structural pest control applicator, name of company and address of applicator 12.7or company, and license number of applicator; and 12.8(8) any other information required by the commissioner. 12.9(b) All information for this record requirement must be contained in a document for 12.10each pesticide application. An invoice containing the required information may constitute 12.11the record. 12.12(c) The record must be completed no later than five days after the application of the 12.13pesticide. 12.14(d) Records must be retained for five years after the date of treatment. 12.15(e) A copy of the record must be given to a person who ordered the application that is 12.16present at the site where the structural pest control application is conducted, placed in a 12.17conspicuous location at the site where the structural pest control application is conducted 12.18immediately after the application of the pesticides, or delivered to the person who ordered 12.19an application or the owner of the site. The commissioner must make sample forms available 12.20that meet the requirements of this subdivision. 12.21 new text begin (f) A structural applicator must post in a conspicuous place inside a renter's apartment new text end 12.22 new text begin where a pesticide application has occurred a list of postapplication precautions contained new text end 12.23 new text begin on the label of the pesticide that was applied in the apartment and any other information new text end 12.24 new text begin required by the commissioner. new text end 12.25    Sec. 18. Minnesota Statutes 2016, section 18C.70, subdivision 5, is amended to read: 12.26    Subd. 5. Expiration. This section expires January 8, 2017 new text begin June 30, 2020 new text end . 12.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from January 7, 2017. new text end 12.28    Sec. 19. Minnesota Statutes 2016, section 18C.71, subdivision 4, is amended to read: 12.29    Subd. 4. Expiration. This section expires January 8, 2017 new text begin June 30, 2020 new text end . 12.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from January 7, 2017. new text end 13.1    Sec. 20. Minnesota Statutes 2016, section 18H.06, subdivision 2, is amended to read: 13.2    Subd. 2. Occasional sales. (a) An individual may offer nursery stock for sale and be 13.3exempt from the requirement to obtain a nursery stock certificate if: 13.4(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000; 13.5(2) all nursery stock sold or distributed by the individual is intended for planting in 13.6Minnesota; 13.7(3) all nursery stock purchased or procured for resale or distribution was grown in 13.8Minnesota and has been certified by the commissioner; and 13.9(4) the individual conducts sales or distributions of nursery stock on ten or fewer days 13.10in a calendar year. 13.11 new text begin (b) A municipality may offer certified nursery stock for sale and be exempt from the new text end 13.12 new text begin requirement to obtain a nursery stock certificate if: new text end 13.13 new text begin (1) all nursery stock offered for sale or distributed is intended for planting by residents new text end 13.14 new text begin of the municipality on public property or public easements within the municipal boundary; new text end 13.15 new text begin (2) all nursery stock purchased or procured for resale or distribution is grown in new text end 13.16 new text begin Minnesota and has been certified by the commissioner; and new text end 13.17 new text begin (3) the municipality submits to the commissioner before any sale or distribution of new text end 13.18 new text begin nursery stock a list of all suppliers who provide the municipality with nursery stock. new text end 13.19(b) new text begin (c) new text end The commissioner may prescribe the conditions of the exempt nursery sales under 13.20this subdivision and may conduct routine inspections of the nursery stock offered for sale. 13.21    Sec. 21. Minnesota Statutes 2016, section 18H.07, subdivision 2, is amended to read: 13.22    Subd. 2. Nursery stock grower certificate. (a) A nursery stock grower must pay an 13.23annual fee based on the area of all acreage on which nursery stock is grown as follows: 13.24(1) less than one-half acre, $150; 13.25(2) from one-half acre to two acres, $200; 13.26(3) over two acres up to five acres, $300; 13.27(4) over five acres up to ten acres, $350; 13.28(5) over ten acres up to 20 acres, $500; 13.29(6) over 20 acres up to 40 acres, $650; 14.1(7) over 40 acres up to 50 acres, $800; 14.2(8) over 50 acres up to 200 acres, $1,100; 14.3(9) over 200 acres up to 500 acres, $1,500; and 14.4(10) over 500 acres, $1,500 plus $2 for each additional acre. 14.5(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must 14.6be charged for each month, or portion thereof, that the fee is delinquent up to a maximum 14.7of 30 percent for any application for renewal not postmarked new text begin or electronically date stamped new text end 14.8by December 31 of the current year. 14.9(c) A nursery stock grower found operating without a valid nursery stock grower 14.10certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 14.11commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 14.12owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner. 14.13    Sec. 22. Minnesota Statutes 2016, section 18H.07, subdivision 3, is amended to read: 14.14    Subd. 3. Nursery stock dealer certificate. (a) A nursery stock dealer must pay an annual 14.15fee based on the dealer's gross sales of certified nursery stock per location during the most 14.16recent certificate year. A certificate applicant operating for the first time must pay the 14.17minimum fee. The fees per sales location are: 14.18(1) gross sales up to $5,000, $150; 14.19(2) gross sales over $5,000 up to $20,000, $175; 14.20(3) gross sales over $20,000 up to $50,000, $300; 14.21(4) gross sales over $50,000 up to $75,000, $425; 14.22(5) gross sales over $75,000 up to $100,000, $550; 14.23(6) gross sales over $100,000 up to $200,000, $675; and 14.24(7) gross sales over $200,000, $800. 14.25(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must 14.26be charged for each month, or portion thereof, that the fee is delinquent up to a maximum 14.27of 30 percent for any application for renewal not postmarked new text begin or electronically date stamped new text end 14.28by December 31 of the current year. 14.29(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate 14.30cannot offer for sale or sell nursery stock until: (1) payment is received by the commissioner 15.1for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed; and (2) a 15.2new certificate is issued to the nursery stock dealer by the commissioner. 15.3    Sec. 23. Minnesota Statutes 2016, section 21.111, subdivision 2, is amended to read: 15.4    Subd. 2. Inspected. "Inspected" means that the potato plants are examined in the field 15.5and that the harvested potatoes produced by such new text begin the potato new text end plants are examined by or under 15.6the authority of the commissioner. new text begin For seed potatoes produced in a lab, inspected means new text end 15.7 new text begin that the lab's records, including records related to the lab's procedures and protocols, as well new text end 15.8 new text begin as the seed potatoes, have been examined under the authority of the commissioner. new text end 15.9    Sec. 24. Minnesota Statutes 2016, section 21.111, subdivision 3, is amended to read: 15.10    Subd. 3. Certified. "Certified" means that the potatoes were inspected while growing 15.11in the field and again after being harvested, and were thereafter duly certified by or under 15.12the authority of the commissioner, as provided in sections 21.111 to 21.122, and as provided 15.13by rules adopted and published by the commissioner. new text begin For seed potatoes produced in a lab, new text end 15.14 new text begin certified means that: new text end 15.15 new text begin (1) the seed potato lab facilities and the lab's procedures and protocols have been new text end 15.16 new text begin examined under the authority of the commissioner; and new text end 15.17 new text begin (2) the seed potatoes have been inspected after they have been harvested, removed, or new text end 15.18 new text begin released from the lab, and were duly certified by or under the authority of the commissioner, new text end 15.19 new text begin as provided in sections 21.111 to 21.122. new text end 15.20    Sec. 25. Minnesota Statutes 2016, section 21.113, is amended to read: 15.2121.113 CERTIFICATES OF INSPECTION. 15.22 new text begin (a) new text end The commissioner shall cause new text begin issue new text end certificates of inspection to be issued only when 15.23seed potatoes have been inspected while growing in the field and again after being harvested. 15.24 new text begin (b) For seed potatoes produced in a lab, the commissioner shall issue certificates of new text end 15.25 new text begin inspection only after: new text end 15.26 new text begin (1) the seed potato lab facility and the lab's records have been inspected; and new text end 15.27 new text begin (2) the seed potatoes have been inspected after they have been harvested, removed, or new text end 15.28 new text begin released from the lab. new text end 15.29Such new text begin (c) new text end Certificates new text begin of inspection under this section new text end shall show the varietal purity and 15.30the freedom from disease and physical injury of such potatoes and shall contain such new text begin any new text end 16.1other information as may be prescribed by rules adopted and published under sections 21.111 16.2to 21.122. 16.3    Sec. 26. Minnesota Statutes 2016, section 21.117, is amended to read: 16.421.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS. 16.5 new text begin (a) new text end Any person may make application to the commissioner for inspection or certification 16.6of seed potatoes growing or to be grown. Upon receiving such application and the required 16.7fee and such other information as may be required, the commissioner shall cause such 16.8potatoes to be inspected or certified in accordance with the provisions of sections 21.111 16.9to 21.122 and the rules adopted and published thereunder. 16.10 new text begin (b) new text end If a grower wishes to withdraw a field new text begin or lab new text end after having made application for 16.11inspection and such withdrawal is requested before the field new text begin or lab new text end inspection has been 16.12made, the fee paid shall be refunded to said grower. 16.13    Sec. 27. Minnesota Statutes 2016, section 25.32, is amended to read: 16.1425.32 COMMISSIONER'S DUTIES. 16.15 new text begin The commissioner shall administer new text end sections 25.31 to 25.43 shall be administered by the 16.16commissioner. 16.17    Sec. 28. Minnesota Statutes 2016, section 25.33, subdivision 5, is amended to read: 16.18    Subd. 5. Commercial feed. "Commercial feed" means materials or combinations of 16.19materials that are distributed or intended to be distributed for use as feed or for mixing in 16.20feed, including feed for aquatic animals, unless the materials are specifically exempted. 16.21Unmixed whole seeds and physically altered entire unmixed seeds new text begin , as identified in the new text end 16.22 new text begin United States grain standards new text end , if the whole or physically altered seeds are not chemically 16.23changed new text begin , are not labeled as a feed or for use as feed, new text end or are not adulterated within the meaning 16.24of section 25.37, paragraph (a), are exempt. The commissioner by rule may exempt from 16.25this definition, or from specific provisions of sections 25.31 to 25.43, commodities such as 16.26hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or 16.27substances if those commodities, compounds, or substances are not intermixed with other 16.28materials new text begin , are not labeled as a feed or for use as feed new text end , and are not adulterated within the 16.29meaning of section 25.37, paragraph (a). 17.1    Sec. 29. Minnesota Statutes 2016, section 25.33, subdivision 10, is amended to read: 17.2    Subd. 10. Manufacture. "Manufacture" means to grind, mix or new text begin , new text end blend, or further process new text begin , new text end 17.3 new text begin package, or label new text end a commercial feed for distribution. 17.4    Sec. 30. Minnesota Statutes 2016, section 25.33, subdivision 21, is amended to read: 17.5    Subd. 21. Commissioner. "Commissioner" means the commissioner of agriculture or 17.6a designated representative new text begin the commissioner's agent new text end . 17.7    Sec. 31. Minnesota Statutes 2016, section 25.341, subdivision 1, is amended to read: 17.8    Subdivision 1. Requirement. Before a person may: (1) manufacture a commercial feed 17.9in the state; (2) distribute a commercial feed in or into the state; or (3) have the person's 17.10name appear on the label of a commercial feed as guarantor, the person must have a 17.11commercial feed license for each new text begin guarantor, or new text end manufacturing or distributing facility. A 17.12person who makes only retail sales of commercial feed, guaranteed by another, is not required 17.13to obtain a license. 17.14    Sec. 32. Minnesota Statutes 2016, section 25.341, subdivision 2, is amended to read: 17.15    Subd. 2. Application; fee; term. A person who is required to have a commercial feed 17.16license shall new text begin must new text end submit an application on a form provided or approved by the commissioner 17.17accompanied by a new text begin an application new text end fee of $75 paid to the commissioner for each location. A 17.18license is not transferable from one person to another, from one ownership to another, or 17.19from one location to another. The license year is the calendar year. A license expires on 17.20December 31 of the year for which it is issued, except that a license is valid through January 17.2131 of the next year or until the issuance of the renewal license, whichever comes first, if 17.22the licensee has filed a renewal application with the commissioner new text begin that has been received new text end 17.23 new text begin by the commissioner on or before December 31 of the year for which the current license new text end 17.24 new text begin was issued, or postmarked new text end on or before December 31 of the year for which the current 17.25license was issued. Any person who is required to have, but fails to obtain a license or a 17.26licensee who fails to comply with license renewal requirements, shall new text begin must new text end pay a $100 late 17.27fee in addition to the license fee. 17.28    Sec. 33. Minnesota Statutes 2016, section 25.35, is amended to read: 17.2925.35 LABELING. 17.30(a) A commercial feed, except a customer formula feed, must be accompanied by a label 17.31bearing the following information: 18.1(1) the product name and the brand name, if any, under which the commercial feed is 18.2distributed; 18.3(2) the guaranteed analysis, stated in terms the commissioner requires by rule, to advise 18.4the user of the composition of the feed or to support claims made in the labeling. The 18.5substances or elements must be determinable by laboratory methods such as the methods 18.6published by the AOAC International or other generally recognized methods; 18.7(3) the common or usual name of each ingredient used in the manufacture of the 18.8commercial feed. The commissioner may by rule permit the use of a collective term for a 18.9group of ingredients which perform a similar function, or may exempt commercial feeds 18.10or any group of commercial feeds from this requirement on finding that an ingredient 18.11statement is not required in the interest of consumers; 18.12(4) the name and principal mailing address of the manufacturer or the person responsible 18.13for distributing the commercial feed; 18.14(5) adequate directions for use for all commercial feeds containing drugs and for such 18.15other feeds as the commissioner may require by rule as necessary for their safe and effective 18.16use; 18.17(6) precautionary statements which the commissioner determines by rule are necessary 18.18for the safe and effective use of the commercial feed; and 18.19(7) a quantity statement. 18.20(b) A customer formula feed must be accompanied by a label, invoice, delivery slip, or 18.21other shipping document bearing the following information: 18.22(1) name and address of the manufacturer; 18.23(2) name and address of the purchaser; 18.24(3) date of delivery; 18.25(4) the product name and either (i) the quantity of each commercial feed and each other 18.26ingredient used in the mixture, or (ii) a guaranteed analysis and list of ingredients in paragraph 18.27(a), clauses (2) and (3); 18.28(5) adequate directions for use for all customer formula feeds containing drugs and for 18.29other feeds the commissioner requires by rule as necessary for their safe and effective use; 18.30(6) precautionary statements the commissioner determines by rule are necessary for the 18.31safe and effective use of the customer formula feed; 19.1(7) if a product containing a drug is used: 19.2(i) the purpose of the medication (claim statement); and 19.3(ii) the established name of each active drug ingredient and the level of each drug used 19.4in the final mixture expressed in a manner required by the commissioner by rule; and 19.5(8) for a customer formula feed for which the formula is developed by someone other 19.6than the manufacturer, a disclaimer may be included on the label stating "THIS FEED IS 19.7A CUSTOMER FORMULA FEED DEVELOPED BY SOMEONE OTHER THAN THE 19.8MANUFACTURER. THE MANUFACTURER DOES NOT CLAIM, REPRESENT, 19.9WARRANT, OR GUARANTEE, AND IS NOT RESPONSIBLE FOR THE NUTRITIONAL 19.10ADEQUACY OF THIS FEED OR THE NUTRITIONAL SUITABILITY OF THIS FEED 19.11FOR ITS INTENDED PURPOSE." new text begin ; and new text end 19.12 new text begin (9) a quantity statement. new text end 19.13(c) The manufacturer of a customer formula feed the formula of which is developed by 19.14someone other than the manufacturer is not responsible or liable for the nutritional adequacy 19.15or the nutritional suitability of the feed for its intended purpose if: (1) the manufacturer does 19.16not make a claim of nutritional adequacy for the customer formula feed and does not make 19.17a claim for nutritional suitability of the feed for its intended purpose; and (2) the manufacturer 19.18includes the disclaimer in paragraph (b), clause (8). A person other than the manufacturer 19.19who develops or recommends a formula for a customer formula feed is responsible for 19.20providing to the manufacturer of the feed the appropriate labeling information and for 19.21providing the appropriate use information to the feed manufacturer. 19.22    Sec. 34. Minnesota Statutes 2016, section 25.371, subdivision 2, is amended to read: 19.23    Subd. 2. Certificate application. (a) A person may apply to the commissioner for a 19.24good manufacturing practices certificate for commercial feed and feed ingredients. 19.25Application for good manufacturing practices certificates must be made on forms provided 19.26or approved by the commissioner. The commissioner shall conduct inspections of facilities 19.27for persons that have applied for or intend to apply for a good manufacturing practices 19.28certificate for commercial feed and feed ingredients from the commissioner. The 19.29commissioner shall not conduct an inspection under this section new text begin subdivision new text end if the applicant 19.30has not paid in full the inspection fee for previous inspections. Certificate issuance shall be 19.31based on compliance with subdivisions 3 to 14, or United States Food and Drug 19.32Administration rules regarding preventive controls for animal feed. 20.1(b) The commissioner may assess a fee for the inspection, service, and work performed 20.2in carrying out the issuance of a good manufacturing practices certificate for commercial 20.3feed and feed ingredients. The inspection fee must be based on mileage and the cost of 20.4inspection. 20.5    Sec. 35. Minnesota Statutes 2016, section 25.38, is amended to read: 20.625.38 PROHIBITED ACTS. 20.7The following acts and causing the following acts in Minnesota are prohibited: 20.8(1) manufacture or distribution of any commercial feed that is adulterated or misbranded; 20.9(2) adulteration or misbranding of any commercial feed; 20.10(3) distribution of agricultural commodities such as whole seed, hay, straw, stover, silage, 20.11cobs, husks, and hulls, which are adulterated within the meaning of section 25.37, paragraph 20.12(a); 20.13(4) removal or disposal of a commercial feed in violation of an order under section 25.42; 20.14(5) failure or refusal to obtain a commercial feed license under section 25.341 or to 20.15provide a small package listing under section ; or 20.16(6) failure to pay inspection fees new text begin , to register a small package under section 25.39, new text end or new text begin to new text end 20.17file reports as required by section 25.39. 20.18    Sec. 36. Minnesota Statutes 2016, section 25.39, subdivision 1, is amended to read: 20.19    Subdivision 1. Amount of fee. (a) An inspection fee at the rate of 16 cents per ton must 20.20be paid to the commissioner on commercial feeds distributed in this state by the person who 20.21first distributes the commercial feed, except that: 20.22(1) no fee need be paid on: 20.23(i) a commercial feed if the payment has been made by a previous distributor; or 20.24(ii) new text begin any feed ingredient in a new text end customer formula feeds if the inspection fee is paid on the 20.25commercial feeds which are used as ingredients new text begin feed that has been directly furnished by the new text end 20.26 new text begin customer new text end ; or 20.27(2) a Minnesota feed distributor who can substantiate that greater than 50 percent of the 20.28distribution of commercial feed is to purchasers outside the state may purchase commercial 20.29feeds without payment of the inspection fee under a tonnage fee exemption permit issued 20.30by the commissioner new text begin no fee need be paid on a first distribution if made to a qualified buyer new text end 21.1 new text begin who, with approval from the commissioner, is responsible for the fee new text end . Such location specific 21.2 new text begin license-specific tonnage-fee-exemption new text end permits shall be issued on a calendar year basis to 21.3commercial feed distributors new text begin licensees new text end who new text begin distribute feed or feed ingredients outside the new text end 21.4 new text begin state, and who new text end submit a $100 nonrefundable application fee and comply with rules adopted 21.5by the commissioner relative to record keeping, tonnage of commercial feed distributed in 21.6Minnesota, total of all commercial feed tonnage distributed, and all other information which 21.7the commissioner may require so as to ensure that proper inspection fee payment has been 21.8made. 21.9(b) In the case of pet food new text begin or specialty pet food new text end distributed in the state only in packages 21.10of ten pounds or less, a listing of new text begin distributor must register new text end each product and new text begin submit new text end a current 21.11label for each product must be submitted annually on forms provided by the commissioner 21.12and new text begin , new text end accompanied by an annual new text begin application new text end fee of $100 for each product in lieu of the 21.13inspection fee. This annual fee is due by July 1 new text begin must be received by the commissioner on new text end 21.14 new text begin or before June 30 or postmarked on or before June 30 new text end . The inspection fee required by 21.15paragraph (a) applies to pet food new text begin or specialty pet food new text end distributed in packages exceeding 21.16ten pounds. 21.17(c) In the case of specialty pet food distributed in the state only in packages of ten pounds 21.18or less, a listing of each product and a current label for each product must be submitted 21.19annually on forms provided by the commissioner and accompanied by an annual fee of 21.20$100 for each product in lieu of the inspection fee. This annual fee is due by July 1. The 21.21inspection fee required by paragraph (a) applies to specialty pet food distributed in packages 21.22exceeding ten pounds. 21.23(d) new text begin (c) new text end The minimum inspection fee is $75 per annual reporting period. 21.24    Sec. 37. Minnesota Statutes 2016, section 25.39, subdivision 1a, is amended to read: 21.25    Subd. 1a. Containers of ten pounds or less. A distributor who is subject to the annual 21.26fee specified in subdivision 1, paragraph (b) or (c), shall new text begin must new text end do the following: 21.27(1) before beginning distribution, file new text begin register new text end with the commissioner a listing of new text begin the new text end pet 21.28and specialty pet foods to be distributed in the state only in containers of ten pounds or less, 21.29on forms provided by the commissioner. The listing new text begin registration new text end under this clause must be 21.30renewed annually new text begin on or new text end before July 1 new text begin June 30 new text end and is the basis for the payment of the annual 21.31fee. New products added during the year must be submitted to the commissioner as a 21.32supplement to the annual listing new text begin registration new text end before distribution; and 22.1(2) if the annual renewal of the listing new text begin registration new text end is not received new text begin or postmarked on or new text end 22.2before July 1 new text begin June 30 new text end or if an unlisted new text begin unregistered new text end product is distributed, pay a late filing 22.3fee of $100 per product in addition to the normal charge for the listing new text begin registration new text end . The late 22.4filing fee under this clause is in addition to any other penalty under this chapter. 22.5    Sec. 38. Minnesota Statutes 2016, section 25.39, subdivision 2, is amended to read: 22.6    Subd. 2. Annual statement. A person who is liable for the payment of a fee under this 22.7section shall new text begin must new text end file with the commissioner on forms furnished by the commissioner an 22.8annual statement setting forth the number of net tons of commercial feeds distributed in 22.9this state during the calendar year. The report is due by new text begin on or before new text end the 31st of each January new text begin new text end 22.10 new text begin following the year of distribution new text end . The inspection fee at the rate specified in subdivision 1 22.11must accompany the statement. For each tonnage report not filed new text begin with the commissioner new text end or 22.12payment of inspection fees not made on time new text begin received by the commissioner on or before new text end 22.13 new text begin January 31 or postmarked on or before January 31 new text end , a penalty of ten percent of the amount 22.14due, with a minimum penalty of $10, must be assessed against the license holder, and the 22.15amount of fees due, plus penalty, is a debt and may be recovered in a civil action against 22.16the license holder. The assessment of this penalty does not prevent the department from 22.17taking other actions as provided in this chapter. 22.18    Sec. 39. Minnesota Statutes 2016, section 25.39, subdivision 3, is amended to read: 22.19    Subd. 3. Records. Each person required to pay an inspection fee or to report in accordance 22.20with this section shall new text begin must new text end keep records, as determined by the commissioner, accurately 22.21detailing the tonnage of commercial feed distributed in this state. Records upon which the 22.22tonnage is based must be maintained for six years and made available to the commissioner 22.23for inspection, copying, and audit. A person who is located outside of this state must maintain 22.24and make available records required by this section in this state or pay all costs incurred in 22.25auditing of the records at another location. Unless required for the enforcement of this 22.26chapter, the information in the records required by this subdivision is private or nonpublic. 22.27    Sec. 40. Minnesota Statutes 2016, section 25.40, subdivision 2, is amended to read: 22.28    Subd. 2. Notice; public comment. Before the issuance, amendment, or repeal of any 22.29rule authorized by sections 25.31 to 25.43, the commissioner shall publish the proposed 22.30rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated to 22.31give interested parties, including all current license holders, adequate notice and shall afford 22.32all interested persons an opportunity to present their views orally or in writing, within a 22.33reasonable period of time. After consideration of all views presented by interested persons, 23.1the commissioner shall take appropriate action to issue the proposed rule or to amend or 23.2repeal an existing rule. The provisions of this subdivision notwithstanding, if the 23.3commissioner, pursuant to the authority of sections 25.31 to 25.43, adopts the official 23.4definitions of feed ingredients or new text begin and new text end official feed terms as adopted by the Association of 23.5American Feed Control Officials, any amendment or modification adopted by the association 23.6shall be new text begin is new text end adopted automatically under sections 25.31 to 25.43 without regard to the 23.7publication of the notice required by this subdivision unless the commissioner, by order 23.8specifically determines that the amendment or modification shall not be adopted. 23.9    Sec. 41. Minnesota Statutes 2016, section 25.41, subdivision 1, is amended to read: 23.10    Subdivision 1. Authorization; limitation. For the purpose of enforcement of sections 23.1125.31 to 25.43, and associated rules, in order to determine whether the provisions have been 23.12complied with, including whether or not any operations may be subject to such provisions, 23.13officers or employees duly designated by the commissioner new text begin or the commissioner's agent new text end , 23.14upon presenting appropriate credentials, and a written notice to the owner, operator, or agent 23.15in charge, are authorized: 23.16(1) to enter, during normal business hours, any factory, warehouse, or establishment 23.17within the state in which commercial feeds are manufactured, processed, packed, or held 23.18for distribution, or to enter any vehicle being used to transport or hold such feeds; and 23.19(2) to inspect at reasonable times, within reasonable limits, and in a reasonable manner, 23.20such factory, warehouse, establishment or vehicle and all pertinent equipment, finished and 23.21unfinished materials, containers, and labeling therein. The inspection may include the 23.22verification of records and production and control procedures related to the manufacture, 23.23distribution, storage, handling, or disposal of commercial feed as may be necessary to 23.24determine compliance with this chapter. 23.25    Sec. 42. Minnesota Statutes 2016, section 25.41, subdivision 2, is amended to read: 23.26    Subd. 2. Notification; promptness. A separate notice shall new text begin must new text end be given for each 23.27inspection, but a notice shall new text begin is new text end not be required for each entry made during the period covered 23.28by the inspection. Each inspection shall be commenced new text begin must begin new text end and new text begin be new text end completed with 23.29reasonable promptness. Upon completion of the inspection, the owner, operator, or agent 23.30in charge of the facility or vehicle shall new text begin must new text end be so notified. 24.1    Sec. 43. Minnesota Statutes 2016, section 25.41, subdivision 3, is amended to read: 24.2    Subd. 3. Receipt for samples. If the officer or employee new text begin commissioner or the new text end 24.3 new text begin commissioner's agent new text end making such inspection of a factory, warehouse, or other establishment 24.4has obtained a sample in the course of the inspection, upon completion of the inspection 24.5and prior to leaving the premises the officer or employee new text begin commissioner or the commissioner's new text end 24.6 new text begin agent new text end shall give to the owner, operator, or agent in charge a receipt describing the samples 24.7obtained. 24.8    Sec. 44. Minnesota Statutes 2016, section 25.41, subdivision 5, is amended to read: 24.9    Subd. 5. Entry of premises. For the purpose of the enforcement of sections 25.31 to 24.1025.43 , the commissioner or the commissioner's duly designated agent is authorized to enter 24.11upon any public or private premises including any vehicle of transport during regular business 24.12hours to have access to, and to obtain samples, and to examine new text begin and copy new text end records relating 24.13to distribution of commercial feeds. 24.14    Sec. 45. Minnesota Statutes 2016, section 25.41, subdivision 7a, is amended to read: 24.15    Subd. 7a. Manufacturer's report of investigation. If the inspection and analysis of an 24.16official sample indicates that a commercial feed has been adulterated or misbranded, the 24.17person whose name appears on the label of the indicated commercial feed as guarantor shall new text begin new text end 24.18 new text begin must new text end provide a manufacturer's report of investigation to the commissioner within 30 days 24.19following the receipt of the official analysis. 24.20    Sec. 46. Minnesota Statutes 2016, section 25.42, is amended to read: 24.2125.42 DETAINED COMMERCIAL FEEDS. 24.22    Subdivision 1. Withdrawal from distribution order. When the commissioner or the 24.23commissioner's authorized agent has reasonable cause to believe any lot of commercial feed 24.24is being distributed in violation of any of the provisions of sections 25.31 to 25.43 or of any 24.25of the prescribed rules under sections 25.31 to 25.43, the commissioner or new text begin the commissioner's new text end 24.26agent may issue and enforce a written or printed "withdrawal from distribution" order, 24.27warning the distributor not to dispose of the lot of commercial feed in any manner until 24.28written permission is given by the commissioner or the court. The commissioner shall release 24.29the lot of new text begin withdrawn new text end commercial feed so withdrawn when said provisions and new text begin sections 25.31 new text end 24.30 new text begin to 25.43 and associated new text end rules have been complied with. If compliance is not obtained within 24.3130 days, the commissioner may begin, or upon request of the distributor or license holder 24.32shall begin, proceedings for condemnation. 25.1    Subd. 2. Seizure; disposition. Any lot of commercial feed not in compliance with said 25.2provisions and new text begin sections 25.31 to 25.43 and associated new text end rules shall be new text begin is new text end subject to seizure on 25.3complaint of the commissioner to the district court of the county in which said new text begin the new text end commercial 25.4feed is located. In the event the court finds the commercial feed to be in violation of sections 25.525.31 to 25.43 and orders the condemnation of said new text begin the new text end commercial feed, it shall new text begin the new text end 25.6 new text begin commercial feed must new text end be disposed of in any new text begin a new text end manner consistent with the quality of the 25.7commercial feed and the laws of the state; provided, that in no instance, shall the disposition 25.8of said new text begin the new text end commercial feed be ordered by the court without first giving the claimant an 25.9opportunity to apply to the court for release of said new text begin the new text end commercial feed or for permission 25.10to process or relabel said new text begin the new text end commercial feed to bring it into compliance with sections 25.1125.31 to 25.43. 25.12    Sec. 47. Minnesota Statutes 2016, section 25.43, is amended to read: 25.1325.43 PENALTIES. 25.14    Subdivision 1. Misdemeanor. Any person convicted of violating any of the provisions 25.15of sections 25.31 to 25.43 or who shall impede, hinder new text begin impedes, hinders new text end , or otherwise prevent new text begin new text end 25.16 new text begin prevents new text end , or attempt new text begin attempts new text end to prevent, said new text begin the new text end commissioner or duly authorized new text begin the new text end 25.17 new text begin commissioner's new text end agent in performance of a duty in connection with the provisions of sections 25.1825.31 to 25.43, shall be new text begin is new text end guilty of a misdemeanor. 25.19    Subd. 2. Minor violations. Nothing in sections 25.31 to 25.43 shall be construed as 25.20requiring the commissioner or the commissioner's representative new text begin agent new text end to: (1) report for 25.21prosecution, or (2) institute seizure proceedings, or (3) issue a withdrawal from distribution 25.22order, as a result of minor violations of sections 25.31 to 25.43, or when the commissioner 25.23or representative new text begin the commissioner's agent new text end believes the public interest will best be served 25.24by suitable notice of warning in writing. 25.25    Subd. 3. County attorney duties. Each county attorney to whom any violation is reported 25.26shall new text begin must new text end cause appropriate proceedings to be instituted and prosecuted in the district court 25.27or other court of competent jurisdiction without delay. Before the commissioner reports a 25.28violation for such prosecution, an opportunity shall new text begin must new text end be given the distributor to present 25.29views to the commissioner. 25.30    Subd. 4. Injunction. The commissioner may apply to the district court for a temporary 25.31or permanent injunction restraining any person from violating or continuing to violate any 25.32of the provisions of sections 25.31 to 25.43 or any new text begin associated new text end rule promulgated under the 25.33act notwithstanding the existence of other remedies at law. 26.1    Subd. 5. new text begin Notice of new text end appeal. new text begin (a) new text end Any person adversely affected by an act, order, new text begin citation, new text end 26.2or ruling made pursuant to the provisions of sections 25.31 to 25.43 may seek judicial review 26.3in accordance with chapter 14. new text begin has 30 days from receipt of the citation or order to notify new text end 26.4 new text begin the commissioner in writing that the person intends to contest the citation or order through new text end 26.5 new text begin a hearing. The hearing request must identify the order or citation being contested and state new text end 26.6 new text begin the grounds for contesting it. new text end 26.7 new text begin (b) If the person fails to notify the commissioner that the person intends to contest the new text end 26.8 new text begin citation or order, the citation or order is final and not subject to further judicial or new text end 26.9 new text begin administrative review. new text end 26.10     new text begin Subd. 6. new text end new text begin Administrative review. new text end new text begin If a person notifies the commissioner that the person new text end 26.11 new text begin intends to contest a citation or order issued under this chapter, the Office of Administrative new text end 26.12 new text begin Hearings shall conduct a hearing according to the applicable provisions of chapter 14 for new text end 26.13 new text begin hearings in contested cases and final decisions are subject to judicial review as provided in new text end 26.14 new text begin chapter 14. new text end 26.15    Sec. 48. Minnesota Statutes 2016, section 27.04, is amended to read: 26.1627.04 APPLICATION FOR LICENSE. 26.17    Subdivision 1. Issuance. The commissioner shall issue a wholesale produce dealer's 26.18license to engage in the business of a dealer at wholesale to persons submitting an application, 26.19paying the prescribed fee, and complying with the conditions in this section. 26.20    Subd. 2. Application contents. (a) The application must be in writing, accompanied by 26.21the prescribed fee, and state: 26.22(1) the place or places where the applicant intends to carry on the business for which 26.23the license is desired; 26.24(2) the estimated amount of business to be done monthly; 26.25(3) the amount of business done during the preceding year, if any; 26.26(4) the full names of the persons constituting the firm for a partnership, and for a 26.27corporation the names of the officers of the corporation and where incorporated; new text begin and new text end 26.28(5) a financial statement showing the value and character of the assets and the amount 26.29of liabilities of the applicant; 26.30(6) the income and expenses for the most recent year; 27.1(7) the names and addresses of all shareholders who own at least five percent of a 27.2corporate applicant's shares of stock; 27.3(8) whether the applicant or any of its officers, partners, or agents have been involved 27.4in any litigation relating to the business of a wholesale produce dealer in the previous five 27.5years; and 27.6(9) new text begin (5) new text end any other information relevant to the conduct of its business as a wholesale 27.7produce dealer in the previous five years, as the commissioner may require. 27.8(b) If a contract is used in a transaction, a copy of the contract must also be filed with 27.9the commissioner. 27.10(c) Financial data required of an applicant under this section is classified as private data 27.11with regard to data on individuals and as nonpublic data with regard to data not on individuals 27.12under section 13.02. 27.13    Subd. 3. Filing. Applications shall be filed annually. 27.14    Sec. 49. Minnesota Statutes 2016, section 27.041, subdivision 1, is amended to read: 27.15    Subdivision 1. Bonds. (a) The applicant required to be bonded shall execute and file 27.16with the commissioner a surety bond to the state of Minnesota to be approved by the 27.17commissioner, the amount, form, and effective date to be determined by the commissioner 27.18with the maximum not to exceed $1,000,000. In lieu of the surety bond, the commissioner 27.19may accept a duly executed letter of credit. new text begin Before a wholesale produce dealer's license is new text end 27.20 new text begin issued, the applicant for the license must file with the commissioner a bond in a penal sum new text end 27.21 new text begin prescribed by the commissioner but not less than the following amounts: new text end 27.22 new text begin (1) $5,000 for wholesale produce dealers whose monthly purchases are $35,000 or less; new text end 27.23 new text begin (2) $10,000 for wholesale produce dealers whose monthly purchases are more than new text end 27.24 new text begin $35,000 but not more than $75,000; new text end 27.25 new text begin (3) $15,000 for wholesale produce dealers whose monthly purchases are more than new text end 27.26 new text begin $75,000 but not more than $100,000; new text end 27.27 new text begin (4) $25,000 for wholesale produce dealers whose monthly purchases are more than new text end 27.28 new text begin $100,000 but not more than $250,000; new text end 27.29 new text begin (5) $50,000 for wholesale produce dealers whose monthly purchases are more than new text end 27.30 new text begin $250,000 but not more than $500,000; new text end 28.1 new text begin (6) $100,000 for wholesale produce dealers whose monthly purchases are more than new text end 28.2 new text begin $500,000 but not more than $750,000; new text end 28.3 new text begin (7) $175,000 for wholesale produce dealers whose monthly purchases are more than new text end 28.4 new text begin $750,000 but not more than $1,000,000; new text end 28.5 new text begin (8) $250,000 for wholesale produce dealers whose monthly purchases are more than new text end 28.6 new text begin $1,000,000 but not more than $2,500,000; new text end 28.7 new text begin (9) $500,000 for wholesale produce dealers whose monthly purchases are more than new text end 28.8 new text begin $2,500,000 but not more than $10,000,000; new text end 28.9 new text begin (10) $750,000 for wholesale produce dealers whose monthly purchases are more than new text end 28.10 new text begin $10,000,000 but not more than $25,000,000; and new text end 28.11 new text begin (11) $1,000,000 for wholesale produce dealers whose gross annual purchases exceed new text end 28.12 new text begin $25,000,000. new text end 28.13 new text begin (b) A wholesale produce dealer who has filed a bond with the commissioner before July new text end 28.14 new text begin 1, 2016, is not required to increase the amount of the bond to comply with this section until new text end 28.15 new text begin July 1, 2017. The commissioner may postpone an increase in the amount of the bond until new text end 28.16 new text begin July 1, 2018, if a licensee demonstrates that the increase will impose undue financial hardship new text end 28.17 new text begin on the licensee, and that producers will not be harmed as a result of the postponement. The new text end 28.18 new text begin commissioner may impose other restrictions on a licensee whose bond increase has been new text end 28.19 new text begin postponed. The amount of the bond shall be based on the amount purchased or contracted new text end 28.20 new text begin for from Minnesota farmers and other Minnesota dealers for produce during the previous new text end 28.21 new text begin 12 months. new text end 28.22 new text begin (c) A first-time applicant for a wholesale produce dealer's license shall file a $10,000 new text end 28.23 new text begin bond with the commissioner. This bond shall remain in effect for the first year of the license. new text end 28.24 new text begin Thereafter, the licensee shall comply with the applicable bonding requirements in paragraph new text end 28.25 new text begin (a), clauses (1) to (11). new text end 28.26 new text begin (d) In lieu of the bond required by this subdivision, the applicant may deposit with the new text end 28.27 new text begin commissioner of management and budget cash; a certified check; a cashier's check; a postal, new text end 28.28 new text begin bank, or express money order; assignable bonds or notes of the United States; an assignment new text end 28.29 new text begin of a bank savings account or investment certificate; or an irrevocable bank letter of credit new text end 28.30 new text begin as defined in section 336.5-102, in the same amount as would be required for a bond. new text end 28.31 new text begin (e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide new text end 28.32 new text begin 60 days' written notice of the bond's termination date to the licensee and the commissioner. new text end 29.1 new text begin (f) new text end The bond or letter of credit shall be conditioned on the faithful performance of the 29.2applicant's duties as a dealer at wholesale, including: 29.3(1) the observance of all laws relating to the carrying on of the business of a dealer at 29.4wholesale; 29.5(2) payment when due, unless it appears to the commissioner that a voluntary extension 29.6of credit has been given on the produce by the seller to the licensee beyond the due date; 29.7(3) the prompt settlement and payment of all claims and charges due the state for services 29.8rendered or otherwise; 29.9(4) the prompt reporting of sales as required by law to all persons consigning produce 29.10to the licensee for sale on commission; and 29.11(5) the prompt payment to the persons entitled thereto of the proceeds of the sales, less 29.12lawful charges, disbursements, and commissions. 29.13(b) new text begin (g) new text end The bond shall cover all wholesale produce business subject to the protection 29.14outlined in section 27.001 which is: 29.15(1) transacted within this state; or 29.16(2) transacted in part within this state and in part within the states and provinces 29.17contiguous with this state and sold by Minnesota sellers. 29.18 new text begin (h) Wholesale produce dealers who are retail merchants shall be required to file a bond new text end 29.19 new text begin under paragraph (a) based on the dollar amount of produce purchased directly from farmers. new text end 29.20    Sec. 50. Minnesota Statutes 2016, section 28A.21, subdivision 6, is amended to read: 29.21    Subd. 6. Expiration. This section expires June 30, 2017 new text begin 2027 new text end . 29.22    Sec. 51. Minnesota Statutes 2016, section 31A.02, subdivision 4, is amended to read: 29.23    Subd. 4. Animals. "Animals" means cattle, swine, sheep, goats, poultry, farmed Cervidae, 29.24as defined in section 35.153, subdivision 3, llamas, as defined in section 17.455, subdivision 29.252 , Ratitae, as defined in section 17.453, subdivision 3, horses, equines, and other large 29.26domesticated animals. 29.27    Sec. 52. Minnesota Statutes 2016, section 32C.02, subdivision 2, is amended to read: 29.28    Subd. 2. Facility design; development and operation. The authority may enter into 29.29management contracts, lease agreements, or both, with a Minnesota nonprofit corporation 29.30to design, develop, and operate a facility to further the purposes of this chapter at the site 30.1determined by the board and on the terms that the board finds desirable. The board must 30.2identify and acquire a site that will accommodate new text begin , where practicable, new text end the following facilities 30.3and activities: 30.4(1) housing for bred and lactating animals; 30.5(2) milking parlor; 30.6(3) automatic milking systems; 30.7(4) cross-ventilated and natural-ventilated housing; 30.8(5) transition cow housing; 30.9(6) special needs and hospital housing; 30.10(7) classrooms and a conference room; 30.11(8) dairy processing facility with retail; 30.12(9) visitors' center; 30.13(10) student housing; 30.14(11) laboratory facilities; 30.15(12) space to accommodate installation of an anaerobic digester system to research 30.16energy production from feedstock produced on site or from off-site sources; and 30.17(13) space for feed storage to allow for research capabilities at the facility. 30.18Notwithstanding the provisions of section 32C.01, subdivision 7, relating to conflict of 30.19interest, a director or officer of the authority who is also a director, officer, or member of 30.20a nonprofit corporation with which the authority enters into management contracts or lease 30.21agreements may participate in and vote on the decision of the board as to the terms and 30.22conditions of management contracts or lease agreements between the Minnesota nonprofit 30.23corporation and the authority. 30.24    Sec. 53. Minnesota Statutes 2016, section 32C.06, is amended to read: 30.2532C.06 EXPIRATION. 30.26If by August 1, 2017 new text begin 2020 new text end , the authority board has not identified and acquired a site for 30.27a facility, as provided in section 32C.02, subdivision 2, sections 32C.01 to 32C.05 and this 30.28section are repealed on that date. The Department of Agriculture shall notify the revisor of 30.29statutes if the repealer under this section becomes effective. 31.1    Sec. 54. Minnesota Statutes 2016, section 34A.01, subdivision 1, is amended to read: 31.2    Subdivision 1. Applicability. The definitions in this section and chapters 28, 28A, 29, 31.330, 31, 31A, 32 new text begin 32D new text end , and 34 apply to this chapter. The definitions in this section apply to 31.4chapter 32 new text begin 32D new text end . 31.5    Sec. 55. Minnesota Statutes 2016, section 41B.03, subdivision 2, is amended to read: 31.6    Subd. 2. Eligibility for restructured loan. In addition to the eligibility requirements 31.7of subdivision 1, a prospective borrower for a restructured loan must: 31.8(1) have received at least 50 percent of average annual gross income from farming for 31.9the past three years or, for homesteaded property, received at least 40 percent of average 31.10gross income from farming in the past three years, and farming must be the principal 31.11occupation of the borrower; 31.12(2) have projected annual expenses, including operating expenses, family living, and 31.13interest expenses after the restructuring, that do not exceed 95 percent of the borrower's 31.14projected annual income considering prior production history and projected prices for farm 31.15production, except that the authority may reduce the 95 percent requirement if it finds that 31.16other significant factors in the loan application support the making of the loan; 31.17(3) demonstrate substantial difficulty in meeting projected annual expenses without 31.18restructuring the loan; and 31.19(4) have a total net worth, including assets and liabilities of the borrower's spouse and 31.20dependents, of less than $660,000 in 2004 new text begin $1,700,000 in 2017 new text end and an amount in subsequent 31.21years which is adjusted for inflation by multiplying that amount by the cumulative inflation 31.22rate as determined by the United States All-Items Consumer Price Index. 31.23    Sec. 56. Minnesota Statutes 2016, section 41B.03, subdivision 3, is amended to read: 31.24    Subd. 3. Eligibility for beginning farmer loans. (a) In addition to the requirements 31.25under subdivision 1, a prospective borrower for a beginning farm loan in which the authority 31.26holds an interest, must: 31.27(1) have sufficient education, training, or experience in the type of farming for which 31.28the loan is desired; 31.29(2) have a total net worth, including assets and liabilities of the borrower's spouse and 31.30dependents, of less than $350,000 in 2004 new text begin $800,000 in 2017 new text end and an amount in subsequent 32.1years which is adjusted for inflation by multiplying that amount by the cumulative inflation 32.2rate as determined by the United States All-Items Consumer Price Index; 32.3(3) demonstrate a need for the loan; 32.4(4) demonstrate an ability to repay the loan; 32.5(5) certify that the agricultural land to be purchased will be used by the borrower for 32.6agricultural purposes; 32.7(6) certify that farming will be the principal occupation of the borrower; 32.8(7) agree to participate in a farm management program approved by the commissioner 32.9of agriculture for at least the first three years of the loan, if an approved program is available 32.10within 45 miles from the borrower's residence. The commissioner may waive this requirement 32.11for any of the programs administered by the authority if the participant requests a waiver 32.12and has either a four-year degree in an agricultural program or certification as an adult farm 32.13management instructor; and 32.14(8) agree to file an approved soil and water conservation plan with the Natural Resources 32.15Conservation Service office in the county where the land is located. 32.16(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower is 32.17subject to penalty as determined by the authority. 32.18    Sec. 57. Minnesota Statutes 2016, section 41B.043, subdivision 5, is amended to read: 32.19    Subd. 5. Total net worth limit. A prospective borrower for an agricultural improvement 32.20loan in which the authority holds an interest must have a total net worth, including assets 32.21and liabilities of the borrower's spouse and dependents, of less than $350,000 in 2004 new text begin new text end 32.22 new text begin $800,000 in 2017 new text end and an amount in subsequent years which is adjusted for inflation by 32.23multiplying that amount by the cumulative inflation rate as determined by the United States 32.24All-Items Consumer Price Index. 32.25    Sec. 58. Minnesota Statutes 2016, section 41B.045, subdivision 2, is amended to read: 32.26    Subd. 2. Loan participation. The authority may participate in a livestock expansion 32.27loan with an eligible lender to a livestock farmer who meets the requirements of section 32.2841B.03, subdivision 1 , clauses (1) and (2), and who are actively engaged in a livestock 32.29operation. A prospective borrower must have a total net worth, including assets and liabilities 32.30of the borrower's spouse and dependents, of less than $660,000 in 2004 new text begin $1,700,000 in 2017 new text end 32.31and an amount in subsequent years which is adjusted for inflation by multiplying that amount 33.1by the cumulative inflation rate as determined by the United States All-Items Consumer 33.2Price Index. 33.3Participation is limited to 45 percent of the principal amount of the loan or $525,000, 33.4whichever is less. The interest rates and repayment terms of the authority's participation 33.5interest may be different from the interest rates and repayment terms of the lender's retained 33.6portion of the loan. 33.7    Sec. 59. Minnesota Statutes 2016, section 41C.02, subdivision 12, is amended to read: 33.8    Subd. 12. Low or moderate net worth. "Low or moderate net worth" means: 33.9(1) for an individual, an aggregate net worth of the individual and the individual's spouse 33.10and minor children of less than $350,000 in 2004 new text begin $800,000 in 2017 new text end and an amount in 33.11subsequent years which is adjusted for inflation by multiplying that amount by the cumulative 33.12inflation rate as determined by the United States All-Items Consumer Price Index; or 33.13(2) for a partnership, an aggregate net worth of all partners, including each partner's net 33.14capital in the partnership, and each partner's spouse and minor children of less than twice 33.15the amount set for an individual in clause (1). However, the aggregate net worth of each 33.16partner and that partner's spouse and minor children may not exceed the amount set for an 33.17individual in clause (1). 33.18    Sec. 60. Minnesota Statutes 2016, section 116V.01, subdivision 1, is amended to read: 33.19    Subdivision 1. Establishment. The Agricultural Utilization Research Institute is 33.20established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue Code 33.21of 1986, as amended. The Agricultural Utilization Research Institute shall conduct onsite 33.22and applied research, promote the establishment of new products and product uses and the 33.23expansion of existing markets for the state's agricultural commodities and products, including 33.24direct financial and technical assistance for Minnesota entrepreneurs. The institute must 33.25establish or maintain facilities and work with private and public entities to leverage the 33.26resources available to achieve maximum results for Minnesota agriculture. 33.27    Sec. 61. Minnesota Statutes 2016, section 116V.01, subdivision 2, is amended to read: 33.28    Subd. 2. Board of directors. The board of directors of the Agricultural Utilization 33.29Research Institute is comprised of: 33.30(1) the chairs of the senate and the house of representatives standing committees with 33.31jurisdiction over agriculture finance or the chair's designee; 34.1(2) two representatives of statewide farm organizations; 34.2(3) two representatives of agribusiness; and 34.3(4) three representatives of the commodity promotion councils new text begin ; and new text end 34.4 new text begin (5) two at-large representatives new text end . 34.5    Sec. 62. Minnesota Statutes 2016, section 116V.01, subdivision 3, is amended to read: 34.6    Subd. 3. Duties. (a) The Agricultural Utilization Research Institute shall: 34.7    (1) identify development opportunities for agricultural products; 34.8    (2) implement a program that identifies techniques to meet those opportunities; 34.9    (3) monitor and coordinate research among the public and private organizations and 34.10individuals specifically addressing procedures to transfer new technology to businesses, 34.11farmers, and individuals; 34.12    (4) provide research grants to public and private educational institutions and other 34.13organizations that are undertaking basic and applied research to promote the development 34.14of emerging agricultural industries; 34.15    (5) assist organizations and individuals with market analysis and product marketing 34.16implementations; 34.17    (6) new text begin (5) new text end to the extent possible earn and receive revenue from contracts, patents, licenses, 34.18royalties, grants, fees-for-service, and memberships; 34.19    (7) new text begin (6) new text end work with the Department of Agriculture, the United States Department of 34.20Agriculture, the Department of Employment and Economic Development, and other agencies 34.21to maximize marketing opportunities locally, nationally, and internationally; and 34.22    (8) new text begin (7) new text end leverage available funds from federal, state, and private sources to develop new 34.23markets and value added opportunities for Minnesota agricultural products. 34.24    (b) The Agricultural Utilization Research Institute board of directors shall have the sole 34.25approval authority for establishing agricultural utilization research priorities, requests for 34.26proposals to meet those priorities, awarding of grants, hiring and direction of personnel, 34.27and other expenditures of funds consistent with the adopted and approved mission and goals 34.28of the Agricultural Utilization Research Institute. The actions and expenditures of the 34.29Agricultural Utilization Research Institute are subject to audit. The institute shall annually 34.30report by February 1 to the senate and house of representatives standing committees with 34.31jurisdiction over agricultural policy and funding. The report must list projects initiated, 35.1progress on projects, and financial information relating to expenditures, income from other 35.2sources, and other information to allow the committees to evaluate the effectiveness of the 35.3institute's activities. 35.4    (c) The Agricultural Utilization Research Institute shall convene a Renewable Energy 35.5Roundtable, the purpose of which shall be to further the state's leadership on bioenergy 35.6issues. 35.7    (i) The Renewable Energy Roundtable shall consist of one representative appointed by 35.8the commissioner of the Minnesota Department of Agriculture, one appointed by the 35.9commissioner of the Minnesota Department of Commerce, one appointed by the chancellor 35.10of the Minnesota State Colleges and Universities, and one appointed by the president of the 35.11University of Minnesota. The appointees must have expertise relevant to bioenergy. 35.12    (ii) The board shall oversee the activities and shall provide staff to assist the Renewable 35.13Energy Roundtable. 35.14    (iii) The Renewable Energy Roundtable will engage professionals and experts from 35.15private, government, academic, and nonprofit entities across the state to identify bioenergy 35.16opportunities and collaborate with a broad group of interested parties to identify future 35.17alternative courses of action the state can take to sustain a long-term competitive position 35.18in renewable energy through the year 2025. The Renewable Energy Roundtable will consult, 35.19advise, and review projects and initiatives funded by the state as directed by the 35.20administration and the legislature. 35.21    Sec. 63. Minnesota Statutes 2016, section 116V.01, subdivision 4, is amended to read: 35.22    Subd. 4. Staff. The board of directors shall hire staff new text begin an executive director new text end for the 35.23Agricultural Utilization Research Institute. Persons employed by the Agricultural Utilization 35.24Research Institute are not state employees and may participate in state retirement, deferred 35.25compensation, insurance, or other plans that apply to state employees generally and are 35.26subject to regulation by the state Campaign Finance and Public Disclosure Board. 35.27    Sec. 64. Minnesota Statutes 2016, section 116V.01, subdivision 7, is amended to read: 35.28    Subd. 7. Bylaws. The board of directors shall adopt bylaws necessary for the conduct 35.29of the business of the institute consistent with this section. The corporation must publish 35.30bylaws and amendments to the bylaws in the State Register new text begin on the board's Web site new text end . 36.1    Sec. 65. Minnesota Statutes 2016, section 116V.01, subdivision 10, is amended to read: 36.2    Subd. 10. Meetings. The board of directors shall meet at least twice each year and may 36.3hold additional meetings upon giving notice in accordance with the bylaws of the institute. 36.4Board meetings are subject to chapter 13D, except section 13D.01, subdivision 6, as it 36.5pertains to financial information, business plans, income and expense projections, customer 36.6lists, market and feasibility studies, and trade secret information as defined by section 13.37, 36.7subdivision 1 , paragraph (b). new text begin For the purposes of section 13D.015, the board of directors is new text end 36.8 new text begin a state board. new text end 36.9    Sec. 66. Minnesota Statutes 2016, section 116V.01, subdivision 11, is amended to read: 36.10    Subd. 11. Conflict of interest. A director, employee, or officer of the institute may not 36.11participate in new text begin advocate for new text end or vote on a decision of the board relating to an organization in 36.12which the director new text begin , employee, or officer new text end has either a direct or indirect financial interest. 36.13    Sec. 67. Minnesota Statutes 2016, section 116V.01, subdivision 13, is amended to read: 36.14    Subd. 13. Funds. The institute may accept and use gifts, grants, or contributions from 36.15any source. Unless otherwise restricted by the terms of a gift or bequest, the board may sell, 36.16exchange, or otherwise dispose of and invest or reinvest the money, securities, or other 36.17property given or bequested to it. The principal of these funds, the income from them, and 36.18all other revenues received by it from any nonstate source must be placed in the depositories 36.19the board determines and is new text begin are new text end subject to expenditure for the board's purposes. new text begin Receipts new text end 36.20 new text begin and new text end expenditures of more than $25,000 new text begin $50,000 new text end must be approved by the full board. 36.21    Sec. 68. Minnesota Statutes 2016, section 116V.01, subdivision 14, is amended to read: 36.22    Subd. 14. Accounts; audits. The institute may establish funds and accounts that it finds 36.23convenient. The board shall provide for and pay the cost of an independent annual audit of 36.24its official books and records by the legislative auditor subject to sections 3.971 and 3.972. 36.25 new text begin In addition, the board shall provide and pay for the cost of an annual financial audit of its new text end 36.26 new text begin official books and records by an independent audit firm. new text end A copy of this new text begin the annual financial new text end 36.27audit shall be filed with the secretary of state new text begin Office of the Attorney General, Charities new text end 36.28 new text begin Division new text end . 36.29For purposes of this section, "institute" means the Agricultural Utilization Research 36.30Institute established under this section and "board of directors" means the board of directors 36.31of the Agricultural Utilization Research Institute. 37.1    Sec. 69. Minnesota Statutes 2016, section 223.17, subdivision 8, is amended to read: 37.2    Subd. 8. Bond disbursement. (a) The bond required under subdivision 4 shall provide 37.3for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand, 37.4the purchase price of grain sold to the grain buyer in the manner provided by subdivision 37.55, including loss caused by failure to pay within the time required. The bond shall be 37.6conditioned upon the grain buyer being duly licensed as provided herein. 37.7(b) The commissioner shall promptly determine the validity of all claims filed and notify 37.8the claimants of the determination. An aggrieved party may appeal the commissioner's 37.9determination by requesting, within 15 days, that the commissioner initiate a contested case 37.10proceeding. In the absence of such a request, or following the issuance of a final order in a 37.11contested case, the surety company shall issue payment promptly to those claimants entitled 37.12to payment. The commissioner may apply to the district court for an order appointing a 37.13trustee or receiver to manage and supervise the operations of the grain buyer in default. The 37.14commissioner may participate in any resulting court proceeding as an interested party. 37.15(c) If a grain buyer has become liable to more than one producer by reason of breaches 37.16of the conditions of the bond and the amount of the bond is insufficient to pay the entire 37.17liability to all producers entitled to the protection of the bond, the proceeds of the bond shall 37.18be apportioned among the bona fide claimants. 37.19(d) The bond shall not be cumulative from one licensing period to the next. The maximum 37.20liability of the bond shall be its face value for the licensing period. 37.21 new text begin (e) The bond disbursement shall occur 200 days from the date the commissioner publishes new text end 37.22 new text begin a public notice of a claim. At the end of this time period, the commissioner shall initiate new text end 37.23 new text begin bond payments on all valid claims received by the commissioner. new text end 37.24    Sec. 70. Minnesota Statutes 2016, section 232.22, subdivision 7, is amended to read: 37.25    Subd. 7. Bond disbursement. (a) The bond of a public grain warehouse operator must 37.26be conditioned that the public grain warehouse operator issuing a grain warehouse receipt 37.27is liable to the depositor for the delivery of the kind, grade and net quantity of grain called 37.28for by the receipt. 37.29(b) Upon notification of default, the commissioner shall determine the validity of all 37.30claims and notify all parties having filed claims. Any aggrieved party may appeal the 37.31commissioner's determination by requesting, within 15 days, that the commissioner initiate 37.32a contested case proceeding. In the absence of such a request, or following the issuance of 37.33a final order in a contested case, the surety company shall issue payment to those claimants 38.1entitled to payment. If the commissioner determines it is necessary, the commissioner may 38.2apply to the district court for an order appointing a trustee or receiver to manage and supervise 38.3the operations of the grain warehouse operator in default. The commissioner may participate 38.4in any resulting court proceeding as an interested party. 38.5(c) For the purpose of determining the amount of bond disbursement against all valid 38.6claims under a condition one bond, all grain owned or stored in the public grain warehouse 38.7shall be sold and the combined proceeds deposited in a special fund. Payment shall be made 38.8from the special fund satisfying the valid claims of grain warehouse receipt holders. 38.9(d) If a public grain warehouse operator has become liable to more than one depositor 38.10or producer by reason of breaches of the conditions of the bond and the amount of the bond 38.11is insufficient to pay, beyond the proceeds of the special fund, the entire liability to all valid 38.12claimants, the proceeds of the bond and special fund shall be apportioned among the valid 38.13claimants on a pro rata basis. 38.14(e) A bond is not cumulative from one licensing period to the next. The maximum 38.15liability of the bond shall be its face value for the licensing period. 38.16 new text begin (f) The bond disbursement shall occur 200 days from the date the commissioner publishes new text end 38.17 new text begin a public notice of a claim. At the end of this time period, the commissioner shall initiate new text end 38.18 new text begin bond payments on all valid claims received by the department. new text end 38.19    Sec. 71. new text begin REVISOR'S INSTRUCTION. new text end 38.20 new text begin The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision new text end 38.21 new text begin 9a, to Minnesota Statutes, section 18B.01, subdivision 9d, and correct any cross-references new text end 38.22 new text begin related to the renumbering. new text end 38.23    Sec. 72. new text begin REPEALER. new text end 38.24 new text begin Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, and 22a; 18B.285; new text end 38.25 new text begin 25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15; and 41D.01, subdivision new text end 38.26 new text begin 4, new text end new text begin are repealed. new text end 38.27ARTICLE 2 38.28DAIRY LAW REORGANIZATION 38.29    Section 1. Minnesota Statutes 2016, section 13.6435, subdivision 8, is amended to read: 39.1    Subd. 8. Dairy products. Financial and production information obtained by the 39.2commissioner of agriculture to administer chapter 32 new text begin 32D new text end are classified under section 32.71, 39.3subdivision 2 new text begin 32D.25, subdivision 2 new text end . 39.4    Sec. 2. new text begin [32D.01] DEFINITIONS. new text end 39.5     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin The definitions in this section apply to this chapter. new text end 39.6     new text begin Subd. 2. new text end new text begin Adulterated. new text end new text begin "Adulterated" means an item is covered by section 34A.02. new text end 39.7     new text begin Subd. 3. new text end new text begin Cheese. new text end new text begin "Cheese" includes all varieties of cheese, cheese spreads, cheese foods, new text end 39.8 new text begin cheese compounds, or processed cheese made or manufactured in whole or in part from new text end 39.9 new text begin milk. new text end 39.10     new text begin Subd. 4. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of agriculture. new text end 39.11     new text begin Subd. 5. new text end new text begin Dairy farm. new text end new text begin "Dairy farm" means a place or premises where one or more lactating new text end 39.12 new text begin animals, including cows, goats, sheep, water buffalo, camels, or other hoofed mammals, new text end 39.13 new text begin are kept, and from which all or a portion of the milk produced at the place or premises is new text end 39.14 new text begin delivered, sold, or offered for sale. new text end 39.15     new text begin Subd. 6. new text end new text begin Dairy plant. new text end new text begin "Dairy plant" means any place where a dairy product is new text end 39.16 new text begin manufactured, processed, or handled and includes milk-receiving stations, creameries, new text end 39.17 new text begin cheese factories, condenseries, milk plants, transfer stations, and marketing organizations new text end 39.18 new text begin that purchase milk and cream directly from producers for resale and other establishments, new text end 39.19 new text begin as those terms are used in this chapter and chapters 17, 27, and 31; but does not include any new text end 39.20 new text begin place where dairy products are not processed but sold at whole or retail only. new text end 39.21     new text begin Subd. 7. new text end new text begin Dairy product. new text end new text begin "Dairy product" means milk as defined by Code of Federal new text end 39.22 new text begin Regulations, title 21, cream, any product or by-product of either, or any commodity among new text end 39.23 new text begin the principal constituents or ingredients of which is one or a combination of two or more new text end 39.24 new text begin of them, as determined by standards, grades, or rules adopted by the commissioner. new text end 39.25     new text begin Subd. 8. new text end new text begin Fluid milk products. new text end new text begin "Fluid milk products" means yogurt, cream, sour cream, new text end 39.26 new text begin half and half, reconstituted half and half, concentrated milk, concentrated milk products, new text end 39.27 new text begin skim milk, nonfat milk, chocolate flavored milk, chocolate flavored dairy drink, chocolate new text end 39.28 new text begin flavored reconstituted milk, chocolate flavored reconstituted dairy drink, buttermilk, cultured new text end 39.29 new text begin buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted new text end 39.30 new text begin cream, reconstituted skim milk, homogenized milk, and any other fluid milk product made new text end 39.31 new text begin by the addition of any substance to milk or to any of the fluid milk products enumerated new text end 39.32 new text begin under this subdivision or by rule adopted by the commissioner. new text end 40.1     new text begin Subd. 9. new text end new text begin Goat milk. new text end new text begin "Goat milk" means a whole, fresh, clean lacteal secretion free from new text end 40.2 new text begin colostrum, obtained by the complete milking of one or more healthy goats. new text end 40.3     new text begin Subd. 10. new text end new text begin Milk. new text end new text begin "Milk" means the normal lacteal secretion, practically free of colostrum, new text end 40.4 new text begin obtained by the milking of one or more healthy hoofed mammals. Hoofed mammals include new text end 40.5 new text begin but are not limited to cattle, water buffalo, sheep, goats, yaks, and camels. new text end 40.6     new text begin Subd. 11. new text end new text begin Milk for manufacturing purposes. new text end new text begin "Milk for manufacturing purposes" means new text end 40.7 new text begin milk produced for processing and manufacturing into products for human consumption but new text end 40.8 new text begin not subject to Grade A or comparable requirements. new text end 40.9     new text begin Subd. 12. new text end new text begin Milk-receiving station. new text end new text begin "Milk-receiving station" means a dairy plant where new text end 40.10 new text begin raw milk for pasteurization or for manufacture is received, handled, or prepared for new text end 40.11 new text begin processing or for resale as unpasteurized milk or fluid milk products. new text end 40.12     new text begin Subd. 13. new text end new text begin Minnesota farmstead cheese. new text end new text begin "Minnesota farmstead cheese" means cheese new text end 40.13 new text begin manufactured in Minnesota on the same farm that the milk used in its manufacturing is new text end 40.14 new text begin produced. new text end 40.15     new text begin Subd. 14. new text end new text begin Misbranded or misbranding. new text end new text begin "Misbranded" or "misbranding" means an item new text end 40.16 new text begin is covered by section 34A.03. new text end 40.17     new text begin Subd. 15. new text end new text begin Pasteurization or pasteurized. new text end new text begin (a) "Pasteurization," "pasteurized," and similar new text end 40.18 new text begin terms mean: new text end 40.19 new text begin (1) the process of heating every particle of milk or dairy product in properly operated new text end 40.20 new text begin equipment approved by the commissioner to a temperature of at least 145 degrees Fahrenheit new text end 40.21 new text begin and holding the temperature for at least 30 minutes; new text end 40.22 new text begin (2) the process of heating every particle of milk or dairy product in properly operated new text end 40.23 new text begin equipment approved by the commissioner to a temperature of at least 161 degrees Fahrenheit new text end 40.24 new text begin and holding the temperature for at least 15 seconds; or new text end 40.25 new text begin (3) the process of heating every particle of milk or dairy product in properly operated new text end 40.26 new text begin equipment approved by the commissioner to the temperatures and holding for the times as new text end 40.27 new text begin the commissioner may prescribe by rule, containing standards more stringent than those new text end 40.28 new text begin imposed by this subdivision. new text end 40.29 new text begin (b) Nothing in this subdivision shall be construed as excluding any other process that new text end 40.30 new text begin has been demonstrated to be equally efficient and is approved by the commissioner. new text end 40.31     new text begin Subd. 16. new text end new text begin Recombinant bovine growth hormone or rBGH. new text end new text begin "Recombinant bovine new text end 40.32 new text begin growth hormone" or "rBGH" means a growth hormone intended for use in bovine animals new text end 41.1 new text begin that has been produced through recombinant DNA techniques, described alternately as new text end 41.2 new text begin recombinant bovine somatotropin or rBST. new text end 41.3    Sec. 3. new text begin [32D.02] INSPECTION AUTHORITY AND DUTIES. new text end 41.4     new text begin Subdivision 1. new text end new text begin Enforcement. new text end new text begin The commissioner is charged with the enforcement of this new text end 41.5 new text begin chapter. new text end 41.6     new text begin Subd. 2. new text end new text begin Power and authority. new text end new text begin For the purpose of enforcing this chapter, the new text end 41.7 new text begin commissioner and the commissioner's assistants, agents, and employees have the power new text end 41.8 new text begin and authority granted under sections 31.02 to 31.171. new text end 41.9     new text begin Subd. 3. new text end new text begin Inspection of dairies. new text end new text begin At times the commissioner determines proper, the new text end 41.10 new text begin commissioner shall inspect all places where dairy products are made, stored, or served as new text end 41.11 new text begin food for purchase, and all places where hoofed mammals are kept by persons engaged in new text end 41.12 new text begin the sale of milk, and shall require the correction of all unsanitary conditions and practices. new text end 41.13     new text begin Subd. 4. new text end new text begin Refusal of inspection. new text end new text begin A refusal or physical threat that prevents the completion new text end 41.14 new text begin of an inspection or neglect to obey a lawful direction of the commissioner or the new text end 41.15 new text begin commissioner's agent given while carrying out this section may result in the suspension of new text end 41.16 new text begin the offender's permit or certification or other enforcement as deemed appropriate by the new text end 41.17 new text begin commissioner. The offender is required to meet with a representative of the offender's plant new text end 41.18 new text begin or marketing organization and a representative of the commissioner within 48 hours of new text end 41.19 new text begin receiving notice, excluding holidays or weekends, or the suspension or enforcement action new text end 41.20 new text begin shall take effect. A producer may request a hearing before the commissioner or the new text end 41.21 new text begin commissioner's agent if a serious concern exists relative to the retention of the offender's new text end 41.22 new text begin permit or certification to sell milk. new text end 41.23     new text begin Subd. 5. new text end new text begin Inspection service. new text end new text begin To ensure compliance with the laws and rules governing new text end 41.24 new text begin the production, handling, processing, and sale of milk and dairy products, the commissioner new text end 41.25 new text begin is authorized, through a duly trained and qualified milk inspector, to inspect milk and milk new text end 41.26 new text begin products and the premises and plants where milk and milk products are produced, handled, new text end 41.27 new text begin and processed. Inspection services must acquaint the processor and producers with the new text end 41.28 new text begin requirements for a Grade A or manufacturing grade milk supply for preliminary inspection new text end 41.29 new text begin to determine if a processor has brought the processor's farms and plants to the state of new text end 41.30 new text begin compliance that qualifies the processor's products for the Grade A or manufacturing grade new text end 41.31 new text begin label, and for continuous inspection to ensure that a farm or plant and all products from a new text end 41.32 new text begin farm or plant are in compliance with this chapter. new text end 42.1     new text begin Subd. 6. new text end new text begin Field service. new text end new text begin Grade A or manufacturing grade processors shall provide a new text end 42.2 new text begin continuous field service to assist producers who sell their milk to the processor's plant to new text end 42.3 new text begin attain and maintain compliance with this chapter. A person who performs field service must new text end 42.4 new text begin first obtain a permit from the commissioner. A person desiring to secure a permit must apply new text end 42.5 new text begin on a form provided by the commissioner, and before a permit is issued the commissioner new text end 42.6 new text begin shall determine that the applicant is competent and qualified to perform field service. The new text end 42.7 new text begin permit is not transferable to another person and may be revoked for due cause after the new text end 42.8 new text begin holder of the permit has been given the opportunity for a hearing. The permit holder must new text end 42.9 new text begin be given a notice in writing of the time and place of the hearing at least seven days before new text end 42.10 new text begin the date of the hearing. new text end 42.11     new text begin Subd. 7. new text end new text begin Enforcement standards. new text end new text begin The standards in this chapter and rules adopted under new text end 42.12 new text begin this chapter by the commissioner shall be the only standards for use in Minnesota. No new text end 42.13 new text begin municipality or other subdivision of state government shall provide, by ordinance, more new text end 42.14 new text begin stringent or comprehensive standards than are contained in this chapter and rules adopted new text end 42.15 new text begin by the commissioner under this chapter. new text end 42.16     new text begin Subd. 8. new text end new text begin Rules. new text end new text begin (a) The commissioner shall by rule adopt identity, production, and new text end 42.17 new text begin processing standards for both Grade A and manufacturing grade milk and dairy products. new text end 42.18 new text begin (b) In the exercise of the authority to establish requirements for Grade A milk and milk new text end 42.19 new text begin products, the commissioner adopts definitions, standards of identity, and requirements for new text end 42.20 new text begin production and processing contained in the most current version of the Grade A Pasteurized new text end 42.21 new text begin Milk Ordinance, and its associated documents, of the United States Department of Health new text end 42.22 new text begin and Human Services in a manner provided for and not in conflict with law. new text end 42.23 new text begin (c) Producers of milk, other than Grade A, shall conform to the standards contained in new text end 42.24 new text begin subparts B, C, D, E, and F of the United States Department of Agriculture Agricultural new text end 42.25 new text begin Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and new text end 42.26 new text begin its Production and Processing, except that the commissioner shall develop methods by which new text end 42.27 new text begin producers are able to comply with the standards without violation of religious beliefs. new text end 42.28     new text begin Subd. 9. new text end new text begin Certified industry inspection. new text end new text begin Industry personnel may be certified to perform new text end 42.29 new text begin any inspection, to the extent allowed by federal law and provided that performance of the new text end 42.30 new text begin inspections is consistent with rules adopted in subdivision 8. new text end 42.31     new text begin Subd. 10. new text end new text begin Fees; dairy services account. new text end new text begin (a) All fees and penalties collected under this new text end 42.32 new text begin chapter shall be deposited into the dairy services account in the agricultural fund and used new text end 42.33 new text begin for the purposes of administering this chapter. new text end 43.1 new text begin (b) Unless otherwise noted, all fees are payable by a processor or marketing organization new text end 43.2 new text begin and are invoiced on July 1 of each year for Grade A and January 1 of each year for new text end 43.3 new text begin manufacturing grade, and if not paid within 30 days of the due date, inspection service may new text end 43.4 new text begin be discontinued. If a farm discontinues the production of milk within six months of the new text end 43.5 new text begin billing date, a request for a refund based on inspection services not received may be made new text end 43.6 new text begin by the processor or by the marketing organization on behalf of its patrons. This request must new text end 43.7 new text begin be made in writing by June 30 for manufacturing grade or by December 31 for Grade A. new text end 43.8 new text begin Upon approval by the commissioner, refunds must be made to the processor or marketing new text end 43.9 new text begin organization. new text end 43.10    Sec. 4. new text begin [32D.03] BULK MILK HAULER AND SAMPLER LICENSE. new text end 43.11     new text begin Subdivision 1. new text end new text begin License requirement. new text end new text begin A person collecting milk from a dairy farm and new text end 43.12 new text begin transporting the milk by bulk pickup and not in individual containers from farm to plant new text end 43.13 new text begin must obtain a bulk milk hauler and sampler license. new text end 43.14     new text begin Subd. 2. new text end new text begin Application. new text end new text begin A person desiring to secure a bulk milk hauler and sampler license new text end 43.15 new text begin must apply on a form provided by the commissioner. Before the license is issued, the new text end 43.16 new text begin commissioner shall determine that the applicant is competent and qualified. new text end 43.17     new text begin Subd. 3. new text end new text begin Term of license; transferability. new text end new text begin An initial bulk milk hauler and sampler new text end 43.18 new text begin license issued by the commissioner expires on the following December 31 and is not new text end 43.19 new text begin transferable. A renewal bulk milk hauler and sampler license is not transferable, is valid for new text end 43.20 new text begin two years, and expires on December 31 of the second year. new text end 43.21     new text begin Subd. 4. new text end new text begin Fees and penalties. new text end new text begin The fee for an initial or renewal bulk milk hauler and new text end 43.22 new text begin sampler license is $60. The fee shall be paid to the commissioner before the commissioner new text end 43.23 new text begin issues an initial or renewal bulk milk hauler and sampler license. If a bulk milk hauler and new text end 43.24 new text begin sampler license renewal is not applied for on or before January 1, a fee of $30 shall be new text end 43.25 new text begin imposed. A person who does not renew a bulk milk hauler and sampler license within one new text end 43.26 new text begin year following its December 31 expiration date, except those persons who do not renew the new text end 43.27 new text begin bulk milk hauler and sampler license while engaged in active military service, shall be new text end 43.28 new text begin required to prove competency and qualification pursuant to section 32D.07 before a bulk new text end 43.29 new text begin milk hauler and sampler license is issued. The commissioner may require any other person new text end 43.30 new text begin who renews a bulk milk hauler and sampler license to prove competency and qualification new text end 43.31 new text begin in the same manner. new text end 43.32     new text begin Subd. 5. new text end new text begin Suspension or cancellation. new text end new text begin The commissioner is empowered to conduct new text end 43.33 new text begin enforcement action, suspend, or cancel any bulk milk hauler and sampler license pursuant new text end 43.34 new text begin to section 34A.06. new text end 44.1    Sec. 5. new text begin [32D.04] MILK TANK TRUCKS. new text end 44.2 new text begin All farm bulk milk pickup tankers, milk transports, and tankers used to transport milk new text end 44.3 new text begin products must be inspected and obtain a permit issued by the commissioner at least once new text end 44.4 new text begin every 12 months. The owner or operator must pay a $25 permit fee per tanker to the new text end 44.5 new text begin commissioner. The commissioner may appoint a person the commissioner deems qualified new text end 44.6 new text begin to make inspections. new text end 44.7    Sec. 6. new text begin [32D.05] GRADE A DAIRY FARM PERMITTING; WATER WELL new text end 44.8 new text begin DISTANCE REQUIREMENT. new text end 44.9 new text begin (a) No milk producer may sell or distribute milk from a dairy farm as Grade A milk new text end 44.10 new text begin without a valid Grade A dairy farm permit issued by the commissioner. new text end 44.11 new text begin (b) A dairy farmer who wishes to be permitted to produce Grade A milk may not be new text end 44.12 new text begin denied the Grade A permit solely because of provisions in rules adopted by the commissioner new text end 44.13 new text begin requiring a minimum distance between a water well and dairy farm. To be eligible for a new text end 44.14 new text begin Grade A permit, the following conditions must be met: new text end 44.15 new text begin (1) the water well must have been in place prior to January 1, 1974; new text end 44.16 new text begin (2) the water well must comply with all other rules applicable to the well, other than the new text end 44.17 new text begin distance requirement; and new text end 44.18 new text begin (3) water from the well must be tested at least once every 12 months. More frequent new text end 44.19 new text begin testing may be required in compliance with guidelines established by the commissioner if new text end 44.20 new text begin water test results fail to meet water quality requirements. new text end 44.21    Sec. 7. new text begin [32D.06] GRADE A DAIRY FARM INSPECTION; FEES. new text end 44.22 new text begin (a) As provided in section 32D.02, subdivision 4, the commissioner shall provide new text end 44.23 new text begin inspection service to any milk producer who wishes to market Grade A milk and is in new text end 44.24 new text begin compliance with the requirement for the production of Grade A milk. Grade A inspections new text end 44.25 new text begin shall be completed at least once every six months. new text end 44.26 new text begin (b) The fee for inspections must be no more than $50 per farm, paid annually by the new text end 44.27 new text begin processor or by the marketing organization on behalf of its patrons. new text end 44.28 new text begin (c) For a farm requiring a reinspection in addition to the required biannual inspections, new text end 44.29 new text begin an additional fee must be paid by the processor or by the marketing organization on behalf new text end 44.30 new text begin of its patrons. The fee for reinspection of a farm with fewer than 100 hoofed milk-producing new text end 45.1 new text begin animals is $60 per reinspection. The fee for reinspection of a farm with 100 or more hoofed new text end 45.2 new text begin milk-producing animals is $150 per reinspection. new text end 45.3    Sec. 8. new text begin [32D.07] MANUFACTURING GRADE DAIRY FARM CERTIFICATION. new text end 45.4 new text begin A producer who wishes to sell milk for manufacturing purposes must obtain from the new text end 45.5 new text begin commissioner an annual Grade B farm certification. new text end 45.6    Sec. 9. new text begin [32D.08] MANUFACTURING GRADE DAIRY FARM INSPECTION; FEES. new text end 45.7 new text begin (a) A producer selling milk for manufacturing purposes must be inspected at least once new text end 45.8 new text begin every 12 months. new text end 45.9 new text begin (b) The fee for the certification inspection must not be more than $25 per producer, to new text end 45.10 new text begin be paid annually by the processor or the marketing organization on behalf of its patrons. new text end 45.11 new text begin (c) For a producer requiring more than one inspection for certification, a reinspection new text end 45.12 new text begin fee of $45 must be paid by the processor or by the marketing organization on behalf of its new text end 45.13 new text begin patrons. new text end 45.14    Sec. 10. new text begin [32D.09] DAIRY PLANT LICENSING AND PERMITTING. new text end 45.15     new text begin Subdivision 1. new text end new text begin Licensing. new text end new text begin A dairy plant must obtain a license as required under section new text end 45.16 new text begin 28A.04. new text end 45.17     new text begin Subd. 2. new text end new text begin Permitting. new text end new text begin No person shall operate a dairy plant in this state unless the dairy new text end 45.18 new text begin plant, equipment, and water supply and plumbing system have been first approved by the new text end 45.19 new text begin commissioner and a permit issued to operate the same. A permit may be revoked by the new text end 45.20 new text begin commissioner for due cause pursuant to section 34A.06. new text end 45.21     new text begin Subd. 3. new text end new text begin Approval. new text end new text begin At the time of filing the application for a permit, the applicant shall new text end 45.22 new text begin submit to the commissioner duplicate floor plans of the plant that show the placement of new text end 45.23 new text begin equipment, the source of water supply and method of distribution, a detailed pasteurization new text end 45.24 new text begin flow chart, and the location of the plumbing system, including the disposal of wastes. New new text end 45.25 new text begin construction or alteration of an existing dairy plant shall be made only with the approval of new text end 45.26 new text begin the commissioner and duplicate plans for the construction or alteration shall be submitted new text end 45.27 new text begin to the commissioner for approval. The fee for approval services is $45 per hour of department new text end 45.28 new text begin staff time spent in the approval process. new text end 45.29     new text begin Subd. 4. new text end new text begin Farmstead cheese. new text end new text begin (a) The commissioner or the commissioner's designee shall new text end 45.30 new text begin issue an additional permit to a dairy plant that desires to use the name "Minnesota farmstead new text end 46.1 new text begin cheese" upon application made by the dairy plant for use of the name, provided the cheese new text end 46.2 new text begin meets the definition in section 32D.01, subdivision 13. new text end 46.3 new text begin (b) No cheese or packaged cheese that is sold, offered or exposed for sale, or held in new text end 46.4 new text begin possession with intent to sell at either retail or wholesale in this state may be labeled or new text end 46.5 new text begin described as "Minnesota farmstead cheese" unless it meets the criteria in section 32D.01, new text end 46.6 new text begin subdivision 13, and the manufacturer has obtained the designated permit. new text end 46.7    Sec. 11. new text begin [32D.10] INSPECTIONS. new text end 46.8 new text begin (a) Inspections of Grade A plants must be completed at least once every three months. new text end 46.9 new text begin A pasteurization plant requesting Grade A inspection must pay an annual inspection fee of new text end 46.10 new text begin no more than $500. new text end 46.11 new text begin (b) Inspections of manufacturing plants that process milk or milk products other than new text end 46.12 new text begin Grade A must be completed at least once every six months. A manufacturing plant that new text end 46.13 new text begin pasteurizes milk or milk by-products must pay an annual fee based on the number of new text end 46.14 new text begin pasteurization units. The fee must not exceed $140 per unit. new text end 46.15    Sec. 12. new text begin [32D.11] PROCUREMENT FEE. new text end 46.16 new text begin A dairy plant operator in this state must pay to the commissioner on or before the 18th new text end 46.17 new text begin of each month a fee of 1.1 cents per hundredweight of milk purchased the previous month. new text end 46.18 new text begin If a milk producer in this state ships milk out of the state for sale, the producer must pay new text end 46.19 new text begin the fee to the commissioner unless the purchaser voluntarily pays the fee. Producers who new text end 46.20 new text begin ship milk out of state and processors must submit to the commissioner monthly reports new text end 46.21 new text begin related to milk purchases along with the appropriate procurement fee. The commissioner new text end 46.22 new text begin shall have access to all relevant purchase or sale records as necessary to verify compliance new text end 46.23 new text begin with this section and may require the producer or purchaser to produce records as necessary new text end 46.24 new text begin to determine compliance. new text end 46.25    Sec. 13. new text begin [32D.12] SELECTED PRODUCTS FEE. new text end 46.26 new text begin (a) A manufacturer must pay to the commissioner a fee for fluid milk processed and new text end 46.27 new text begin milk used in the manufacture of fluid milk products sold for retail sale in Minnesota in an new text end 46.28 new text begin amount not less than five cents and not more than nine cents per hundredweight as set by new text end 46.29 new text begin the commissioner's order. No change within any 12-month period may be in excess of one new text end 46.30 new text begin cent per hundredweight. new text end 46.31 new text begin (b) A processor must report quantities of milk processed under paragraph (a) on forms new text end 46.32 new text begin provided by the commissioner. Processor fees must be paid monthly. The commissioner new text end 47.1 new text begin may require the production of records as necessary to determine compliance with this new text end 47.2 new text begin paragraph. new text end 47.3 new text begin (c) The commissioner may create within the department a dairy consulting program to new text end 47.4 new text begin provide assistance to dairy producers who are experiencing problems meeting the sanitation new text end 47.5 new text begin and quality requirements of the dairy laws and rules. The commissioner may use money new text end 47.6 new text begin appropriated from the dairy services account to pay for the program authorized in this new text end 47.7 new text begin paragraph. new text end 47.8    Sec. 14. new text begin [32D.13] MILK QUALITY STANDARDS. new text end 47.9     new text begin Subdivision 1. new text end new text begin Visible adulteration or odors. new text end new text begin Milk shall not be visibly adulterated, or new text end 47.10 new text begin have any objectionable odor, or be abnormal in appearance or consistency. new text end 47.11     new text begin Subd. 2. new text end new text begin Grade A raw milk. new text end new text begin (a) The bacterial count of Grade A raw milk from producers new text end 47.12 new text begin must not exceed 100,000 bacteria per milliliter prior to commingling with other producer new text end 47.13 new text begin milk. new text end 47.14 new text begin (b) After commingling with other producer milk, the bacteria count must not exceed new text end 47.15 new text begin 300,000 per milliliter prior to pasteurization. new text end 47.16     new text begin Subd. 3. new text end new text begin Grade A pasteurized milk and fluid milk products. new text end new text begin (a) The bacterial count new text end 47.17 new text begin of Grade A pasteurized milk and fluid milk products, at any time after pasteurization until new text end 47.18 new text begin delivery, must not exceed 20,000 bacteria per milliliter. new text end 47.19 new text begin (b) The coliform count of Grade A pasteurized milk and fluid milk products must not new text end 47.20 new text begin exceed ten bacteria per milliliter except that bulk tank transport shipments must not exceed new text end 47.21 new text begin 100 per milliliter. new text end 47.22     new text begin Subd. 4. new text end new text begin Raw milk, other than Grade A. new text end new text begin The bacterial count of raw milk from producers new text end 47.23 new text begin must not exceed 500,000 bacteria per milliliter prior to commingling with other producer new text end 47.24 new text begin milk. new text end 47.25     new text begin Subd. 5. new text end new text begin Pasteurized milk, other than Grade A. new text end new text begin The bacterial count of pasteurized new text end 47.26 new text begin milk other than Grade A pasteurized milk, at any time after pasteurization until delivery, new text end 47.27 new text begin must not exceed 20,000 bacteria per milliliter. new text end 47.28     new text begin Subd. 6. new text end new text begin Exceptions. new text end new text begin Bacterial count standards do not apply to sour cream, cultured new text end 47.29 new text begin buttermilk, and other cultured fluid milk products. new text end 47.30     new text begin Subd. 7. new text end new text begin Rules and standards. new text end new text begin The commissioner may prescribe standards and rules new text end 47.31 new text begin adopted in accordance with law more stringent than those imposed by this section. new text end 48.1     new text begin Subd. 8. new text end new text begin Somatic cell count. new text end new text begin (a) The somatic cell count, as determined by a direct new text end 48.2 new text begin microscopic somatic cell count or an electronic somatic cell count, must not exceed 750,000 new text end 48.3 new text begin cells per milliliter for Grade A raw milk and raw milk other than Grade A. Notwithstanding new text end 48.4 new text begin any federal standard, the somatic cell count of goat milk must not exceed 1,500,000 cells new text end 48.5 new text begin per milliliter. new text end 48.6 new text begin (b) The commissioner may prescribe standards and rules adopted in accordance with new text end 48.7 new text begin law more stringent than those imposed by this subdivision. new text end 48.8     new text begin Subd. 9. new text end new text begin Temperature. new text end new text begin If milk is received or collected from a dairy farm more than two new text end 48.9 new text begin hours after the most recent milking, the temperature of the milk shall not exceed 45 degrees new text end 48.10 new text begin Fahrenheit (7 degrees Celsius). If the milk consists of a blend of milk from two or more new text end 48.11 new text begin milkings, and the milk is received or collected less than two hours after the most recent new text end 48.12 new text begin milking, the blend temperature shall not exceed 50 degrees Fahrenheit (10 degrees Celsius). new text end 48.13     new text begin Subd. 10. new text end new text begin Industry enforcement. new text end new text begin A dairy plant is not required to reject milk shipments new text end 48.14 new text begin in response to a violation of subdivisions 2 to 9 unless the commissioner suspends or revokes new text end 48.15 new text begin the dairy plant permit or milk producer's Grade A permit or manufacturing grade certification. new text end 48.16    Sec. 15. new text begin [32D.14] OFFICIAL PRODUCER SAMPLES. new text end 48.17 new text begin (a) An official producer sample for each producer must be analyzed for bacteria, somatic new text end 48.18 new text begin cell count, temperature, and antibiotic residues at least once per month in four out of every new text end 48.19 new text begin six months. Official producer samples must be collected and analyzed without providing new text end 48.20 new text begin the producer with prior notification of the sampling date. new text end 48.21 new text begin (b) Official producer sample results must be inclusive of all animals from which milk new text end 48.22 new text begin is collected and sold on the day of sampling. new text end 48.23 new text begin (c) Official producer sample results must be collected by a licensed sampler. new text end 48.24    Sec. 16. new text begin [32D.15] MONTHLY REPORTING. new text end 48.25 new text begin (a) In at least four out of every six months, the dairy plant that procures milk from the new text end 48.26 new text begin producer must report to the commissioner at least one representative test result for bacteria, new text end 48.27 new text begin somatic cell count, temperature, and antibiotic residues. The result shall be reported within new text end 48.28 new text begin seven days after the laboratory obtains the test results. new text end 48.29 new text begin (b) A laboratory that performs the tests required under this section for a dairy plant may new text end 48.30 new text begin report the test results for the dairy plant. new text end 49.1 new text begin (c) A dairy plant or laboratory shall report test results under this section in an electronic new text end 49.2 new text begin form approved by the department or using an approved alternative. new text end new text begin new text end 49.3    Sec. 17. new text begin [32D.16] ENFORCEMENT. new text end 49.4 new text begin The commissioner shall suspend a producer's permit or certification if three of the last new text end 49.5 new text begin five official producer samples exceed the applicable standard. The commissioner shall new text end 49.6 new text begin provide warning of a pending suspension when two of the last four producer samples exceed new text end 49.7 new text begin the applicable standard. new text end 49.8    Sec. 18. new text begin [32D.17] LABORATORY CERTIFICATION. new text end 49.9 new text begin (a) A laboratory and its methods are required to be approved or certified prior to testing new text end 49.10 new text begin Grade A milk samples. The results of approved or certified laboratories may be used by new text end 49.11 new text begin official regulatory agencies in enforcement of requirements for milk and milk products. The new text end 49.12 new text begin approval or certification remains valid unless suspended or revoked by the commissioner new text end 49.13 new text begin for failure to comply with the requirements of this chapter. new text end 49.14 new text begin (b) Certified or approved laboratories must receive a permit from the commissioner. new text end 49.15 new text begin The permit remains valid without renewal unless suspended or revoked by the commissioner new text end 49.16 new text begin for failure to comply with the requirements of this chapter. new text end 49.17 new text begin (c) Satisfactory analytical procedures and results for split samples, the nature, number, new text end 49.18 new text begin and frequency of which shall be in accordance with rules established by the commissioner, new text end 49.19 new text begin shall be required of a certified laboratory for retention of its certification and permit. new text end 49.20 new text begin (d) An application for initial certification or biennial recertification, or for recertification new text end 49.21 new text begin following suspension or revocation of a permit, shall be accompanied by an annual fee new text end 49.22 new text begin based on the number of analyses approved and the number of specific tests for which they new text end 49.23 new text begin are approved. The fee must not be less than $150 nor more than $200 for each analysis new text end 49.24 new text begin approved and not less than $35 nor more than $50 for each test approved. The commissioner new text end 49.25 new text begin may annually adjust assessments within the limits established by this subdivision to meet new text end 49.26 new text begin the cost recovery of the services required by this section. new text end 49.27    Sec. 19. new text begin [32D.18] MILK BOUGHT BY WEIGHT; TESTING METHODS. new text end 49.28     new text begin Subdivision 1. new text end new text begin Milk fat, protein, and solids not fat bases of payment; tests. new text end new text begin (a) Milk new text end 49.29 new text begin must be purchased from producers using a formula based on one or more of the following: new text end 49.30 new text begin (1) payment of a standard rate with uniform differentials for milk testing above or below new text end 49.31 new text begin 3.5 percent milk fat; new text end 50.1 new text begin (2) payment of a standard rate for the pounds of milk fat contained in the milk; new text end 50.2 new text begin (3) payment of a standard rate for the pounds of protein contained in the milk; new text end 50.3 new text begin (4) payment of a standard rate for the pounds of nonfat solids contained in the milk; or new text end 50.4 new text begin (5) payment of standard rates based on other attributes of value in the milk. new text end 50.5 new text begin (b) In addition, an adjustment may be made on the basis of milk quality and other new text end 50.6 new text begin premiums. Testing procedures for determining the percentages of milk fat, protein, and new text end 50.7 new text begin nonfat solids must comply with the methods approved by the Association of Analytical new text end 50.8 new text begin Chemists or be as adopted by rule. new text end 50.9     new text begin Subd. 2. new text end new text begin Apparatus to conform to specifications. new text end new text begin Glassware, test bottles, pipettes, acid new text end 50.10 new text begin measures, chemicals, scales, and other apparatus used in the operation of these tests shall new text end 50.11 new text begin conform to the specifications for the particular test method. new text end 50.12     new text begin Subd. 3. new text end new text begin Penalties for violations. new text end new text begin A person who: new text end 50.13 new text begin (1) employs any test other than those tests authorized by rule adopted by the new text end 50.14 new text begin commissioner, or any methods other than the standard official methods for determining the new text end 50.15 new text begin milk fat content of milk or cream; new text end 50.16 new text begin (2) incorrectly samples milk or cream purchased or sold; new text end 50.17 new text begin (3) incorrectly weighs milk or cream purchased or sold; new text end 50.18 new text begin (4) incorrectly grades milk or cream purchased or sold; new text end 50.19 new text begin (5) makes a false entry of the weight, test result, or grade of any milk or cream purchased new text end 50.20 new text begin or sold; new text end 50.21 new text begin (6) incorrectly samples, weighs, tests, or records or reports weights or tests of skim milk new text end 50.22 new text begin or buttermilk purchased or sold; new text end 50.23 new text begin (7) underreads the tests; new text end 50.24 new text begin (8) falsifies the reading of the tests; new text end 50.25 new text begin (9) manipulates the reading of the tests; or new text end 50.26 new text begin (10) falsely states, certifies, or uses in the purchase or sale of milk or cream a misreading new text end 50.27 new text begin of such tests, whether the tests or actual reading have been made by the person or by any new text end 50.28 new text begin other person, new text end 50.29 new text begin is guilty of a misdemeanor. new text end 51.1    Sec. 20. new text begin [32D.19] ADULTERATED DAIRY PRODUCTS. new text end 51.2     new text begin Subdivision 1. new text end new text begin Purchase and sale prohibition. new text end new text begin A person may not sell or knowingly new text end 51.3 new text begin buy adulterated dairy products. new text end 51.4     new text begin Subd. 2. new text end new text begin Manufacture of food for human consumption from adulterated milk or new text end 51.5 new text begin cream prohibited. new text end new text begin An article of food for human consumption may not be manufactured new text end 51.6 new text begin from adulterated milk or cream, except as provided in the Federal Food, Drug, and Cosmetic new text end 51.7 new text begin Act, United States Code, title 21, section 301 et seq., and related federal regulations. new text end 51.8     new text begin Subd. 3. new text end new text begin Adulterated milk. new text end new text begin For purposes of this section, milk is adulterated if it: new text end 51.9 new text begin (1) is drawn in a filthy or unsanitary place; new text end 51.10 new text begin (2) is drawn from unhealthy or diseased animals; new text end 51.11 new text begin (3) contains water in excess of that normally found in milk; new text end 51.12 new text begin (4) contains a substance that is not a normal constituent of the milk except as allowed new text end 51.13 new text begin in this chapter; or new text end 51.14 new text begin (5) contains drug residues or other chemical or biological substances in amounts above new text end 51.15 new text begin the tolerances or safe levels established by rule. new text end 51.16     new text begin Subd. 4. new text end new text begin Drug residues. new text end new text begin (a) Before processing milk, all bulk milk pickup tankers must new text end 51.17 new text begin be tested for the presence of beta lactam drug residues and for other residues as determined new text end 51.18 new text begin necessary by the commissioner. Milk received from a producer in other than a bulk milk new text end 51.19 new text begin pickup tanker is also subject to this section. new text end 51.20 new text begin (b) Bulk milk tankers that confirm positive for beta lactam drug residues or other residues new text end 51.21 new text begin must follow up with producer sample testing of all producers contained on the positive load. new text end 51.22 new text begin (c) Individual producer samples must be tested for the presence of beta lactam drug new text end 51.23 new text begin residues at least once a month for four out of every six-month period. Results of these tests new text end 51.24 new text begin must be reported to the commissioner as official producer sample results using established new text end 51.25 new text begin electronic reporting procedures. new text end 51.26 new text begin (d) Drug residue testing methods must be those approved by the Food and Drug new text end 51.27 new text begin Administration (FDA) and the National Conference of Interstate Milk Shipments or listed new text end 51.28 new text begin in the FDA's current version of M-a-85. new text end 51.29 new text begin (e) All drug residue samples testing positive must be reported to the commissioner or new text end 51.30 new text begin the commissioner's designee within 24 hours. The report must include how and where the new text end 51.31 new text begin milk was disposed of, and the volume, the responsible producer, and the possible cause of new text end 51.32 new text begin the violative residue. All milk sample residue results must be recorded and retained for six new text end 52.1 new text begin months by the receiving plant for examination by the commissioner or the commissioner's new text end 52.2 new text begin designee. new text end 52.3     new text begin Subd. 5. new text end new text begin Penalties. new text end new text begin (a) The permit or certification of a milk producer identified as having new text end 52.4 new text begin a positive drug residue is immediately suspended. The producer must not ship milk while new text end 52.5 new text begin the permit or certification is suspended. new text end 52.6 new text begin (b) The producer's permit or certification may be reinstated after being sampled by the new text end 52.7 new text begin commissioner or the commissioner's designee and testing negative on the sample. new text end 52.8 new text begin (c) A milk producer may not change plants within 30 days, without permission of the new text end 52.9 new text begin commissioner, after receiving notification from the commissioner of a residue violation. new text end 52.10 new text begin (d) The producer that is identified with the drug residue violation is responsible for the new text end 52.11 new text begin value of all milk on any load that tests positive for drug residues and any costs associated new text end 52.12 new text begin with its disposal. Payment shall be made to the purchaser of the milk. new text end 52.13 new text begin (e) For the first and second violation within a 12-month period, the dairy producer must, new text end 52.14 new text begin within 30 days of the date of the residue: new text end 52.15 new text begin (1) meet with the dairy inspector to review potential causes of the adulteration; and new text end 52.16 new text begin (2) complete the designated drug residue prevention educational program with a licensed new text end 52.17 new text begin veterinarian and submit the signed certificate to the commissioner. new text end 52.18 new text begin (f) Failure to comply with the requirements for the first and second violation listed in new text end 52.19 new text begin paragraph (e) may result in suspension of the producer's permit or certification until the new text end 52.20 new text begin conditions in paragraph (e) are met. new text end 52.21 new text begin (g) For the third or subsequent violation within a 12-month period, the commissioner new text end 52.22 new text begin may initiate proceedings for further enforcement action, that may include a penalty of up new text end 52.23 new text begin to a 30-day permit or certification suspension. In lieu of a suspension, the producer may be new text end 52.24 new text begin assessed an administrative penalty of up to $1,000 or the value of milk sold during the new text end 52.25 new text begin intended suspension period. new text end 52.26     new text begin Subd. 6. new text end new text begin Other forms of adulteration. new text end new text begin A milk producer who violates subdivision 3 is new text end 52.27 new text begin subject to any of the following penalties: new text end 52.28 new text begin (1) the permit or certification of a milk producer identified as having adulterated milk new text end 52.29 new text begin is immediately suspended. The producer may not ship milk while the permit or certification new text end 52.30 new text begin is suspended; new text end 53.1 new text begin (2) the producer that is identified with the adulterated milk violation is responsible for new text end 53.2 new text begin the value of all milk on any load that is contaminated by the adulterant and any costs new text end 53.3 new text begin associated with its disposal. Payment shall be made to the purchaser of the milk; new text end 53.4 new text begin (3) the producer's permit or certification may be reinstated after the commissioner receives new text end 53.5 new text begin adequate verification that the milk is no longer adulterated; and new text end 53.6 new text begin (4) the commissioner may, after evaluation of the severity and repetitive nature of the new text end 53.7 new text begin adulteration, initiate additional enforcement action in the form of permit or certification new text end 53.8 new text begin suspension for up to 30 days or in lieu of suspension, an administrative penalty of up to new text end 53.9 new text begin $1,000, or the value of the milk sold during the intended suspension period for each violation. new text end 53.10     new text begin Subd. 7. new text end new text begin Civil penalty. new text end new text begin A person other than a milk producer who causes milk to be new text end 53.11 new text begin adulterated is subject to a civil penalty of up to $1,000. new text end 53.12     new text begin Subd. 8. new text end new text begin Appeals. new text end new text begin A dairy producer may appeal an adulteration violation by sending new text end 53.13 new text begin written notice to the commissioner within ten days of receipt of the notice of a violation. new text end 53.14 new text begin The appeal must contain a description of why the producer wishes to appeal the violation. new text end 53.15    Sec. 21. new text begin [32D.20] LIMITATION ON SALE. new text end 53.16     new text begin Subdivision 1. new text end new text begin Pasteurization. new text end new text begin No milk or fluid milk products shall be sold, offered or new text end 53.17 new text begin exposed for sale, or held in possession for sale for the purpose of human consumption in new text end 53.18 new text begin fluid form in this state unless the milk or fluid milk product has been pasteurized and cooled, new text end 53.19 new text begin as defined in section 32D.01, subdivision 15, provided that this section shall not apply to new text end 53.20 new text begin milk, cream, or skim milk occasionally secured or purchased for personal use by a consumer new text end 53.21 new text begin at the place or farm where the milk is produced. new text end 53.22     new text begin Subd. 2. new text end new text begin Labels. new text end new text begin (a) Pasteurized milk or fluid milk products offered or exposed for sale new text end 53.23 new text begin or held in possession for sale shall be labeled or otherwise designated as pasteurized milk new text end 53.24 new text begin or pasteurized fluid milk products, and in the case of fluid milk products the label shall also new text end 53.25 new text begin state the name of the specific product. new text end 53.26 new text begin (b) Milk and dairy products must be labeled with the plant number where the product new text end 53.27 new text begin was produced, or if produced in a state where official plant numbers are not assigned, the new text end 53.28 new text begin name of the manufacturer and the address of the plant where it was manufactured. new text end 53.29    Sec. 22. new text begin [32D.21] COOLING AFTER PASTEURIZATION. new text end 53.30 new text begin Immediately following pasteurization, all milk and fluid milk products shall be cooled new text end 53.31 new text begin in properly operated equipment approved by the commissioner to a temperature of 45 degrees new text end 53.32 new text begin Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered; new text end 54.1 new text begin provided, however, that if the milk or fluid milk product is to be cultured immediately after new text end 54.2 new text begin pasteurization, then cooling may be delayed until after the culturing process is completed; new text end 54.3 new text begin provided further that the commissioner may prescribe by rule standards more stringent than new text end 54.4 new text begin those imposed by this section. new text end 54.5    Sec. 23. new text begin [32D.22] MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS. new text end 54.6 new text begin No person, firm, or corporation shall manufacture, transport, sell, offer, or expose for new text end 54.7 new text begin sale or have in possession with intent to sell at retail to a consumer any cheese that has not new text end 54.8 new text begin been (1) manufactured from milk or milk products that have been pasteurized; (2) subjected new text end 54.9 new text begin to a heat treatment equivalent to pasteurization during the process of manufacturing or new text end 54.10 new text begin processing; or (3) subjected to an aging process where it has been kept for at least 60 days new text end 54.11 new text begin after manufacture at a temperature no lower than 35 degrees Fahrenheit. new text end 54.12    Sec. 24. new text begin [32D.23] RECOMBINANT BOVINE GROWTH HORMONE LABELING. new text end 54.13     new text begin Subdivision 1. new text end new text begin Labeling. new text end new text begin Products offered for wholesale or retail sale in this state that new text end 54.14 new text begin contain milk, cream, or any product or by-product of milk or cream that have been processed new text end 54.15 new text begin and handled pursuant to this section may be labeled with an rBGH statement that is not new text end 54.16 new text begin false or misleading and in accordance with the federal labeling standards. Products offered new text end 54.17 new text begin for wholesale or retail sale in this state need not contain any further label information relative new text end 54.18 new text begin to the use of rBGH in milk production. new text end 54.19     new text begin Subd. 2. new text end new text begin Affidavit; records. new text end new text begin (a) A dairy plant purchasing milk or cream to be used in new text end 54.20 new text begin products labeled with rBGH claims pursuant to subdivision 1 must provide an affidavit new text end 54.21 new text begin from each producer that states that all cows used in the producer's dairy operations have new text end 54.22 new text begin not and will not be treated with rBGH, without advanced written notice of at least 30 days. new text end 54.23 new text begin (b) The affidavit must be signed by the producer or authorized representative. Affidavits new text end 54.24 new text begin must be kept on file for not less than two years after receiving written notice that rBGH use new text end 54.25 new text begin status will change. new text end 54.26 new text begin (c) If a plant chooses to process and handle only milk or milk products sourced from new text end 54.27 new text begin cows who have not been treated with rBGH, the plant, as an alternative to providing new text end 54.28 new text begin individual producer affidavits, may provide one affidavit to certify that the plant has new text end 54.29 new text begin procedures in place to verify that all producers are not using rBGH. A copy of the written new text end 54.30 new text begin procedure that describes this verification process must also be provided with the plant new text end 54.31 new text begin affidavit. new text end 55.1 new text begin (d) All affidavits and corresponding records must be available for inspection by the new text end 55.2 new text begin commissioner. new text end 55.3 new text begin (e) Dairy plants supplying milk or cream to a processor or manufacturer of a product to new text end 55.4 new text begin be labeled pursuant to subdivision 1, for use in that product, shall supply a certification to new text end 55.5 new text begin that processor or manufacturer stating that producers of the supplied milk or cream have new text end 55.6 new text begin executed and delivered affidavits pursuant to this subdivision. new text end 55.7     new text begin Subd. 3. new text end new text begin Separation of nontreated cows and milk. new text end new text begin Milk or cream from new text end 55.8 new text begin non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant new text end 55.9 new text begin to subdivision 1 must be kept fully separate from any other milk or cream through all stages new text end 55.10 new text begin of storage, transportation, and processing until the milk or resulting dairy products are in new text end 55.11 new text begin final packaged form in a properly labeled container. Records of the separation must be kept new text end 55.12 new text begin by the dairy plant and product processor or manufacturer at all stages and made available new text end 55.13 new text begin to the commissioner for inspection. new text end 55.14    Sec. 25. new text begin [32D.24] DAIRY TRADE PRACTICES; DEFINITIONS. new text end 55.15     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin The definitions in this section apply to sections 32D.24 to new text end 55.16 new text begin 32D.28. new text end 55.17     new text begin Subd. 2. new text end new text begin Basic cost. new text end new text begin (a) "Basic cost," for a processor, means the actual cost of the raw new text end 55.18 new text begin milk plus 75 percent of the actual processing and handling costs for a selected class I or new text end 55.19 new text begin class II dairy product. new text end 55.20 new text begin (b) Basic cost, for a wholesaler, means the actual cost of the selected class I or class II new text end 55.21 new text begin dairy product purchased from the processor or another wholesaler. new text end 55.22 new text begin (c) Basic cost, for a retailer, means the actual cost of the selected class I or class II dairy new text end 55.23 new text begin product purchased from a processor or wholesaler. new text end 55.24     new text begin Subd. 3. new text end new text begin Bona fide charity. new text end new text begin "Bona fide charity" means a corporation, trust, fund, or new text end 55.25 new text begin foundation organized and operated exclusively for religious, charitable, scientific, literary, new text end 55.26 new text begin or educational purposes. new text end 55.27     new text begin Subd. 4. new text end new text begin Processor. new text end new text begin "Processor" means a person engaged in manufacturing or processing new text end 55.28 new text begin selected class I or class II dairy products in the person's own plant for sale in Minnesota. new text end 55.29     new text begin Subd. 5. new text end new text begin Producer. new text end new text begin "Producer" means a person who operates a dairy herd or herds in new text end 55.30 new text begin Minnesota producing milk or cream commercially and whose milk or cream is sold to, or new text end 55.31 new text begin received or handled by, a distributor or processor. Producer does not include an incorporated new text end 55.32 new text begin or unincorporated association of producers. new text end 56.1     new text begin Subd. 6. new text end new text begin Responsible person. new text end new text begin "Responsible person" means the business entity that new text end 56.2 new text begin makes payment to an individual Grade A or Grade B milk producer. new text end 56.3     new text begin Subd. 7. new text end new text begin Selected class I dairy products. new text end new text begin "Selected class I dairy products" means milk new text end 56.4 new text begin for human consumption in fluid form and all other class I dairy products as defined by the new text end 56.5 new text begin Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40, new text end 56.6 new text begin or successor orders. new text end 56.7     new text begin Subd. 8. new text end new text begin Selected class II dairy products. new text end new text begin "Selected class II dairy products" means new text end 56.8 new text begin milk for human consumption processed into fluid cream, eggnog, yogurt, and all other class new text end 56.9 new text begin II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal new text end 56.10 new text begin Regulations, title 7, part 1030.40, or successor orders. new text end 56.11     new text begin Subd. 9. new text end new text begin Sell at retail; sale at retail; retail sales. new text end new text begin "Sell at retail," "sale at retail," or new text end 56.12 new text begin "retail sales" means a retail sale or offer for retail sale of a selected class I or class II dairy new text end 56.13 new text begin product for ultimate consumption or use. new text end 56.14     new text begin Subd. 10. new text end new text begin Sell at wholesale; sale at wholesale; wholesale sales. new text end new text begin "Sell at wholesale," new text end 56.15 new text begin "sale at wholesale," or "wholesale sales" means sale or offer for sale of a selected class I new text end 56.16 new text begin dairy product for purposes of resale or further processing or manufacturing but does not new text end 56.17 new text begin include a producer selling or delivering milk to a processor. new text end 56.18     new text begin Subd. 11. new text end new text begin Wholesaler. new text end new text begin "Wholesaler" means a person including a distributor in the new text end 56.19 new text begin business of making sales of selected class I or class II dairy products at wholesale in new text end 56.20 new text begin Minnesota. In the case of a person making sales at both retail and wholesale, wholesaler new text end 56.21 new text begin applies only to the sales at wholesale. new text end 56.22    Sec. 26. new text begin [32D.25] DUTIES AND POWERS OF COMMISSIONER; DATA PRIVACY. new text end 56.23     new text begin Subdivision 1. new text end new text begin Duties; rules. new text end new text begin The commissioner shall adopt rules to implement and new text end 56.24 new text begin administer sections 32D.24 to 32D.28. new text end 56.25     new text begin Subd. 2. new text end new text begin Data privacy. new text end new text begin Financial and production information received by the new text end 56.26 new text begin commissioner on processors, wholesalers, or retailers, including but not limited to financial new text end 56.27 new text begin statements, fee reports, price schedules, cost documentation, books, papers, records, or other new text end 56.28 new text begin documentation for the purpose of administration and enforcement of this chapter is classified new text end 56.29 new text begin private data or nonpublic data pursuant to chapter 13. The classification shall not limit the new text end 56.30 new text begin use of the information in the preparation, institution, or conduct of a legal proceeding by new text end 56.31 new text begin the commissioner in enforcing this chapter. new text end 57.1    Sec. 27. new text begin [32D.26] SALES BELOW COST PROHIBITED; EXCEPTIONS. new text end 57.2     new text begin Subdivision 1. new text end new text begin Policy; processors; wholesalers; retailers. new text end new text begin (a) It is the intent of the new text end 57.3 new text begin legislature to accomplish partial deregulation of milk marketing with a minimum negative new text end 57.4 new text begin impact on small-volume retailers. new text end 57.5 new text begin (b) A processor or wholesaler may not sell or offer for sale selected class I or class II new text end 57.6 new text begin dairy products at a price lower than the processor's or wholesaler's basic cost. new text end 57.7 new text begin (c) A retailer may not sell or offer for sale selected class I or class II dairy products at new text end 57.8 new text begin a retail price lower than (1) 105 percent of the retailer's basic cost until June 30, 1994; and new text end 57.9 new text begin (2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may not use new text end 57.10 new text begin any method or device in the sale or offer for sale of a selected dairy product that results in new text end 57.11 new text begin a violation of this section. new text end 57.12     new text begin Subd. 2. new text end new text begin Exceptions. new text end new text begin The minimum processor, wholesaler, and retailer prices of new text end 57.13 new text begin subdivision 1 do not apply: new text end 57.14 new text begin (1) to a sale complying with section 325D.06; new text end 57.15 new text begin (2) to a retailer giving away selected class I and class II dairy products for free if the new text end 57.16 new text begin customer is not required to make a purchase; or new text end 57.17 new text begin (3) to a processor, wholesaler, or retailer giving away selected class I and class II dairy new text end 57.18 new text begin products for free or at a reduced cost to a bona fide charity. new text end 57.19    Sec. 28. new text begin [32D.27] REDRESS FOR INJURY OR THREATENED INJURY. new text end 57.20 new text begin A person injured by a violation of sections 32D.24 to 32D.28 may commence a legal new text end 57.21 new text begin action based on the violation in a court of competent jurisdiction and may recover economic new text end 57.22 new text begin damages and the costs of the action, including reasonable attorney fees. A person injured new text end 57.23 new text begin or who is threatened with injury or loss by reason of violation of sections 32D.24 to 32D.28 new text end 57.24 new text begin may commence a legal action based on the violation and obtain injunctive relief in a court new text end 57.25 new text begin of competent jurisdiction against persons involved in a violation or threatened violation of new text end 57.26 new text begin sections 32D.24 to 32D.28 to prevent and restrain violations or threatened violations of new text end 57.27 new text begin sections 32D.24 to 32D.28 without alleging or proving actual damages or that an adequate new text end 57.28 new text begin remedy at law does not exist, so that injunctive relief can be obtained promptly and without new text end 57.29 new text begin awaiting evidence of injury or actual damage. The injunctive relief does not abridge and is new text end 57.30 new text begin not in lieu of any other civil remedy provided in sections 32D.24 to 32D.28. new text end 58.1    Sec. 29. new text begin [32D.28] ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT. new text end 58.2 new text begin The provisions of section 32D.26 are suspended during the month of June each year in new text end 58.3 new text begin honor of "Dairy Month." new text end 58.4    Sec. 30. new text begin REPEALER. new text end 58.5 new text begin Minnesota Statutes 2016, sections 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, and 12; 32.021; new text end 58.6 new text begin 32.071; 32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105; new text end 58.7 new text begin 32.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, and 3; 32.392; new text end 58.8 new text begin 32.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, and 12; 32.395; new text end 58.9 new text begin 32.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, and 5; 32.415; 32.416; 32.475; new text end 58.10 new text begin 32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3, 4, 5, 12, new text end 58.11 new text begin 13, and 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72; 32.74; new text end 58.12 new text begin 32.745; 32.75; and 32.90, new text end new text begin are repealed. new text end