<a id="pl.1.3"></a><var>1.3</var>agricultural-related provisions; reorganizing dairy law; making conforming changes;<br/>
<a id="pl.1.4"></a><var>1.4</var>amending Minnesota Statutes 2016, sections 13.6435, subdivision 8; 15.985; <br/>
<a id="pl.1.5"></a><var>1.5</var>17.119, subdivision 1; 17.53, subdivisions 2, 8, 13; 17.983, subdivision 1; 17.984,
         <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 1; 18B.01, by adding subdivisions; 18B.26, subdivision 1; 18B.28, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivisions 1, 3; 18B.305, subdivision 1; 18B.33, subdivision 1; 18B.34, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 1; 18B.36, subdivision 1; 18B.37, subdivision 3; 18C.70, subdivision <br/>
<a id="pl.1.9"></a><var>1.9</var>5; 18C.71, subdivision 4; 18H.06, subdivision 2; 18H.07, subdivisions 2, 3; 21.111,
         <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivisions 2, 3; 21.113; 21.117; 25.32; 25.33, subdivisions 5, 10, 21; 25.341, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivisions 1, 2; 25.35; 25.371, subdivision 2; 25.38; 25.39, subdivisions 1, 1a,
         <br/>
<a id="pl.1.12"></a><var>1.12</var>2, 3; 25.40, subdivision 2; 25.41, subdivisions 1, 2, 3, 5, 7a; 25.42; 25.43; 27.04;
         <br/>
<a id="pl.1.13"></a><var>1.13</var>27.041, subdivision 1; 28A.21, subdivision 6; 31A.02, subdivision 4; 32C.02, <br/>
<a id="pl.1.14"></a><var>1.14</var>subdivision 2; 32C.06; 34A.01, subdivision 1; 41B.03, subdivisions 2, 3; 41B.043,
         <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 5; 41B.045, subdivision 2; 41C.02, subdivision 12; 116V.01, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivisions 1, 2, 3, 4, 7, 10, 11, 13, 14; 223.17, subdivision 8; 232.22, subdivision
         <br/>
<a id="pl.1.17"></a><var>1.17</var>7; proposing coding for new law as Minnesota Statutes, chapter 32D; repealing <br/>
<a id="pl.1.18"></a><var>1.18</var>Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, 22a; 18B.285; <br/>
<a id="pl.1.19"></a><var>1.19</var>25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15; 32.01, subdivisions
         <br/>
<a id="pl.1.20"></a><var>1.20</var>1, 2, 6, 8, 9, 10, 11, 12; 32.021; 32.071; 32.072; 32.073; 32.074; 32.075; 32.076;
         <br/>
<a id="pl.1.21"></a><var>1.21</var>32.078; 32.10; 32.102; 32.103; 32.105; 32.106; 32.21; 32.212; 32.22; 32.25; 32.391,
         <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivisions 1, 1d, 1e, 1f, 1g, 2, 3; 32.392; 32.393; 32.394, subdivisions 1, 2, 3,
         <br/>
<a id="pl.1.23"></a><var>1.23</var>4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, 12; 32.395; 32.397; 32.398, subdivision
         1; <br/>
<a id="pl.1.24"></a><var>1.24</var>32.401, subdivisions 1, 2, 3, 5; 32.415; 32.416; 32.475; 32.481, subdivision 1; <br/>
<a id="pl.1.25"></a><var>1.25</var>32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3, 4, 5, 12, 13, 14; 32.555;
         <br/>
<a id="pl.1.26"></a><var>1.26</var>32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72; 32.74; 32.745; <br/>
<a id="pl.1.27"></a><var>1.27</var>32.75; 32.90; 41D.01, subdivision 4.<br/>
<a id="pl.1.28"></a><var>1.28</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.31"></a><var>1.31</var>    Section 1. Minnesota Statutes 2016, section 15.985, is amended to read:<br/>
<a id="pl.1.32"></a><var>1.32</var><b>15.985 ADVISORY INSPECTIONS.</b><br/>
<a id="pl.2.1"></a><var>2.1</var>(a) Upon the voluntary request of a person to a state agency for an advisory inspection
         <br/>
<a id="pl.2.2"></a><var>2.2</var>for the purpose of complying with state law, the agency must, except as provided in
         <br/>
<a id="pl.2.3"></a><var>2.3</var>paragraphs (f) and (g), conduct an advisory inspection. An agency is not required
         to conduct <br/>
<a id="pl.2.4"></a><var>2.4</var>an advisory inspection if the agency has a regularly scheduled inspection that would
         occur <br/>
<a id="pl.2.5"></a><var>2.5</var>within 90 days after the request for the advisory inspection, or if before an advisory
         inspection <br/>
<a id="pl.2.6"></a><var>2.6</var>is requested, the agency has notified the person that it will be conducting an inspection
         <br/>
<a id="pl.2.7"></a><var>2.7</var>within 45 days. If an advisory inspection results in findings that potentially could
         make a <br/>
<a id="pl.2.8"></a><var>2.8</var>person subject to a fine or other penalty imposed by the agency, the agency must notify
         the <br/>
<a id="pl.2.9"></a><var>2.9</var>person in writing of those findings within ten days of the inspection.<br/>
<a id="pl.2.10"></a><var>2.10</var>(1) Except as provided in clause (2), if within 60 days of receiving notice, the person
         <br/>
<a id="pl.2.11"></a><var>2.11</var>notifies the agency that it has corrected the situation that made the person potentially
         subject <br/>
<a id="pl.2.12"></a><var>2.12</var>to the fine or penalty, and the agency later determines that the situation is corrected,
         the <br/>
<a id="pl.2.13"></a><var>2.13</var>agency may not impose a fine or penalty as a result of the findings in the advisory
         inspection.<br/>
<a id="pl.2.14"></a><var>2.14</var>    (2) For violations of chapter 177, if the person notifies the agency within the time
         period <br/>
<a id="pl.2.15"></a><var>2.15</var>for remedying violations required under the applicable section of chapter 177 that
         it has <br/>
<a id="pl.2.16"></a><var>2.16</var>corrected the situation that made the person potentially subject to the fine or penalty,
         and <br/>
<a id="pl.2.17"></a><var>2.17</var>the agency later determines that the situation is corrected, the agency may not impose
         a fine <br/>
<a id="pl.2.18"></a><var>2.18</var>or penalty as a result of the finding in the advisory inspection.<br/>
<a id="pl.2.19"></a><var>2.19</var>    (3) A person may not request more than one advisory inspection from the same agency
         <br/>
<a id="pl.2.20"></a><var>2.20</var>in a calendar year. A person may not request an advisory inspection after an inspection
         <br/>
<a id="pl.2.21"></a><var>2.21</var>resulting in a fine or other penalty has been determined and the violator notified
         of the <br/>
<a id="pl.2.22"></a><var>2.22</var>amount to be paid, until fines or penalties have been paid or settled.<br/>
<a id="pl.2.23"></a><var>2.23</var>(b) For purposes of this section:<br/>
<a id="pl.2.24"></a><var>2.24</var>(1) "inspection" includes an examination of real or personal property or an audit
         or other <br/>
<a id="pl.2.25"></a><var>2.25</var>examination of financial or other documents;<br/>
<a id="pl.2.26"></a><var>2.26</var>(2) "penalty" includes a civil or administrative fine or other financial sanction;<br/>
<a id="pl.2.27"></a><var>2.27</var>(3) "person" includes a real person and businesses, including corporations, partnerships,
         <br/>
<a id="pl.2.28"></a><var>2.28</var>limited liability companies, and unincorporated associations; and<br/>
<a id="pl.2.29"></a><var>2.29</var>(4) "state agency" means a department, agency, board, commission, constitutional office,
         <br/>
<a id="pl.2.30"></a><var>2.30</var>or other group in the executive branch of state government.<br/>
<a id="pl.2.31"></a><var>2.31</var>(c) If an agency revises, amends, extends, or adds additional violations to a notice,
         the <br/>
<a id="pl.2.32"></a><var>2.32</var>person has 60 days from the date of those changes to correct the situation without
         fine or <br/>
<a id="pl.3.1"></a><var>3.1</var>penalty. For violations of chapter 177, the person has the time period for remedying
         violations <br/>
<a id="pl.3.2"></a><var>3.2</var>under the applicable section of chapter 177 to correct the situation without fine
         or penalty.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (d) An agency conducting an inspection under this section may impose and collect from
         <br/>
<a id="pl.3.4"></a><var>3.4</var>the person requesting the inspection a fee equal to the costs incurred by the agency
         related <br/>
<a id="pl.3.5"></a><var>3.5</var>to the inspection. Fees under this section shall be considered charges for goods and
         services <br/>
<a id="pl.3.6"></a><var>3.6</var>provided for the direct and primary use of a private individual, business, or other
         entity <br/>
<a id="pl.3.7"></a><var>3.7</var>under section 
         <statute_ref>16A.1283</statute_ref>, paragraph (b), clause (3). Fee revenue collected under this section <br/>
<a id="pl.3.8"></a><var>3.8</var>must be deposited in an appropriate fund other than the general fund and is appropriated
         <br/>
<a id="pl.3.9"></a><var>3.9</var>from that fund to the agency collecting the fee for the purpose of conducting inspections
         <br/>
<a id="pl.3.10"></a><var>3.10</var>under this section.<br/>
<a id="pl.3.11"></a><var>3.11</var>    (e) Nothing in this section shall prohibit or interfere with an agency offering similar
         <br/>
<a id="pl.3.12"></a><var>3.12</var>programs that allow independent audits or inspections, including the environmental
         <br/>
<a id="pl.3.13"></a><var>3.13</var>improvement program under chapter 114C. If a person conducts a self-audit under chapter
         <br/>
<a id="pl.3.14"></a><var>3.14</var>114C, the terms and conditions of this section do not apply. For advisory inspections
         <br/>
<a id="pl.3.15"></a><var>3.15</var>conducted by the Pollution Control Agency, terms and conditions of sections 
         <statute_ref>114C.20</statute_ref> to <br/>
<statute_ref><a id="pl.3.16"></a><var>3.16</var>114C.28 
         </statute_ref>shall be used instead of those in paragraphs (a) to (c) and (g).<br/>
<a id="pl.3.17"></a><var>3.17</var>(f) If agency staff resources are limited, an agency must give higher priority to
         the <br/>
<a id="pl.3.18"></a><var>3.18</var>agency's regular inspections over advisory inspections under this section. Insofar
         as <br/>
<a id="pl.3.19"></a><var>3.19</var>conducting advisory inspections reduces an agency's costs, the savings must be reflected
         <br/>
<a id="pl.3.20"></a><var>3.20</var>in the charges for advisory inspections. Before hiring additional staff complement
         for <br/>
<a id="pl.3.21"></a><var>3.21</var>purposes of this section, an agency must report to the chairs and ranking minority
         members <br/>
<a id="pl.3.22"></a><var>3.22</var>of the legislative budget committees with jurisdiction over the agency documenting:
         (1) the <br/>
<a id="pl.3.23"></a><var>3.23</var>demand for advisory inspections and why additional staff complement is needed to meet
         <br/>
<a id="pl.3.24"></a><var>3.24</var>the demand; and (2) that the revenue generated by advisory inspections will cover
         the <br/>
<a id="pl.3.25"></a><var>3.25</var>expenses of the additional staff complement. If a person requests an advisory inspection,
         <br/>
<a id="pl.3.26"></a><var>3.26</var>but the agency does not have staff resources necessary to conduct the advisory inspection
         <br/>
<a id="pl.3.27"></a><var>3.27</var>before a regular inspection is conducted, and the regular inspection results in findings
         that <br/>
<a id="pl.3.28"></a><var>3.28</var>could make a person subject to a fine or penalty, the agency must take into account
         the <br/>
<a id="pl.3.29"></a><var>3.29</var>person's request for an advisory inspection and the person's desire to take corrective
         action <br/>
<a id="pl.3.30"></a><var>3.30</var>before taking any enforcement action against the person.<br/>
<a id="pl.3.31"></a><var>3.31</var>(g) This section does not apply to:<br/>
<a id="pl.3.32"></a><var>3.32</var>(1) criminal penalties;<br/>
<a id="pl.3.33"></a><var>3.33</var>(2) situations in which implementation of this section is prohibited by federal law
         or <br/>
<a id="pl.3.34"></a><var>3.34</var>would result in loss of federal funding or in other federal sanctions or in which
         <br/>
<a id="pl.4.1"></a><var>4.1</var>implementation would interfere with multistate agreements, international agreements,
         or <br/>
<a id="pl.4.2"></a><var>4.2</var>agreements between state and federal regulatory agencies;<br/>
<a id="pl.4.3"></a><var>4.3</var>(3) conduct constituting fraud;<br/>
<a id="pl.4.4"></a><var>4.4</var>(4) violations in a manner that endangers human life or presents significant risk
         of major <br/>
<a id="pl.4.5"></a><var>4.5</var>injury or severe emotional harm to humans;<br/>
<a id="pl.4.6"></a><var>4.6</var>(5) violations that are part of a pattern that has occurred repeatedly and shows willful
         <br/>
<a id="pl.4.7"></a><var>4.7</var>intent;<br/>
<a id="pl.4.8"></a><var>4.8</var>(6) violations for which it may be demonstrated that the alternative inspections process
         <br/>
<a id="pl.4.9"></a><var>4.9</var>is being used to avoid enforcement;<br/>
<a id="pl.4.10"></a><var>4.10</var>(7) violations that occur within three years of violating an applicable law;<br/>
<a id="pl.4.11"></a><var>4.11</var>(8) the Department of Revenue;<br/>
<a id="pl.4.12"></a><var>4.12</var>(9) the Workers' Compensation Division at the Department of Labor and Industry;<br/>
<a id="pl.4.13"></a><var>4.13</var>(10) violations of vehicle size weight limits under sections 
         <statute_ref>169.80</statute_ref> to 
         <statute_ref>169.88</statute_ref>;<br/>
<a id="pl.4.14"></a><var>4.14</var>(11) commercial motor vehicle inspections under section 
         <statute_ref>169.781</statute_ref> and motor carrier <br/>
<a id="pl.4.15"></a><var>4.15</var>regulations under chapter 221;<br/>
<a id="pl.4.16"></a><var>4.16</var>(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
         <br/>
<a id="pl.4.17"></a><var>4.17</var>division provides free inspections similar to those under this section;<br/>
<a id="pl.4.18"></a><var>4.18</var>(13) (12) state inspections or surveys of hospitals, nursing homes, outpatient surgical <br/>
<a id="pl.4.19"></a><var>4.19</var>centers, supervised living facilities, board and lodging with special services, home
         care, <br/>
<a id="pl.4.20"></a><var>4.20</var>housing with services and assisted living settings, hospice, and supplemental nursing
         services <br/>
<a id="pl.4.21"></a><var>4.21</var>agencies;<br/>
<a id="pl.4.22"></a><var>4.22</var>(14) (13) examinations of health maintenance organizations or county-based purchasing <br/>
<a id="pl.4.23"></a><var>4.23</var>entities regulated under chapter 62D;<br/>
<a id="pl.4.24"></a><var>4.24</var>(15) (14) special transportation services under section 
         <statute_ref>174.30</statute_ref>; and<br/>
<a id="pl.4.25"></a><var>4.25</var>(16) (15) entities regulated by the Department of Commerce's Financial Institutions and <br/>
<a id="pl.4.26"></a><var>4.26</var>Insurance Divisions for purposes of regulatory requirements of those divisions.<br/>
<a id="pl.4.27"></a><var>4.27</var>If an agency determines that this section does not apply due to situations specified
         in clause <br/>
<a id="pl.4.28"></a><var>4.28</var>(2), the agency must report the basis for that determination to the chairs and ranking
         minority <br/>
<a id="pl.4.29"></a><var>4.29</var>members of the legislative committees with jurisdiction over the agency.<br/>
<a id="pl.4.30"></a><var>4.30</var>(h) An agency may terminate an advisory inspection and proceed as if an inspection
         <br/>
<a id="pl.4.31"></a><var>4.31</var>were a regular inspection if, in the process of conducting an advisory inspection,
         the agency <br/>
<a id="pl.5.1"></a><var>5.1</var>finds a situation that the agency determines: could lead to criminal penalties; endangers
         <br/>
<a id="pl.5.2"></a><var>5.2</var>human life or presents significant risk of major injury or severe emotional harm to
         humans; <br/>
<a id="pl.5.3"></a><var>5.3</var>presents a severe and imminent threat to animals, food, feed, crops, commodities,
         or the <br/>
<a id="pl.5.4"></a><var>5.4</var>environment; or evidences a pattern of willful violations.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.5.5"></a><var>5.5</var>    Sec. 2. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:<br/>
<a id="pl.5.6"></a><var>5.6</var>    Subdivision 1. <b>Grants; eligibility.</b> (a) The commissioner must award cost-share grants <br/>
<a id="pl.5.7"></a><var>5.7</var>to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit
         eligible <br/>
<a id="pl.5.8"></a><var>5.8</var>tractors with eligible rollover protective structures.<br/>
<a id="pl.5.9"></a><var>5.9</var>(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented <br/>
<a id="pl.5.10"></a><var>5.10</var>cost to purchase, ship, and install an eligible rollover protective structure. The
         commissioner <br/>
<a id="pl.5.11"></a><var>5.11</var>must increase the a farmer's grant award amount over the 70 percent grant limitation <br/>
<a id="pl.5.12"></a><var>5.12</var>requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.<br/>
<a id="pl.5.13"></a><var>5.13</var>(c) Schools are eligible for grants that cover the full amount of a school's documented
         <br/>
<a id="pl.5.14"></a><var>5.14</var>cost to purchase, ship, and install an eligible rollover protective structure.<br/>
<a id="pl.5.15"></a><var>5.15</var>(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International <br/>
<a id="pl.5.16"></a><var>5.16</var>standard J2194 is certified to appropriate national or international rollover protection structure
         <br/>
<a id="pl.5.17"></a><var>5.17</var>standards with a seat belt.<br/>
<a id="pl.5.18"></a><var>5.18</var>(c) (e) A tractor is eligible if the tractor was built before 1987.<br/>
<a id="pl.5.19"></a><var>5.19</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from July 1, 2016.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.20"></a><var>5.20</var>    Sec. 3. Minnesota Statutes 2016, section 17.53, subdivision 2, is amended to read:<br/>
<a id="pl.5.21"></a><var>5.21</var>    Subd. 2. <b>Agricultural commodity.</b> (a) Except as provided in paragraph (b), "agricultural <br/>
<a id="pl.5.22"></a><var>5.22</var>commodity" means any agricultural product, including, without limitation, animals
         and <br/>
<a id="pl.5.23"></a><var>5.23</var>animal products, grown, raised, produced, or fed within Minnesota for use as food,
         feed, <br/>
<a id="pl.5.24"></a><var>5.24</var>seed, or any industrial or chemurgic purpose.<br/>
<a id="pl.5.25"></a><var>5.25</var>(b) For wheat, barley, corn, and cultivated wild rice, "agricultural commodity" means <br/>
<a id="pl.5.26"></a><var>5.26</var>wheat, barley, and cultivated wild rice including, without limitation, wheat, barley,
         and <br/>
<a id="pl.5.27"></a><var>5.27</var>cultivated wild rice grown or produced within or outside Minnesota, for use as food,
         feed, <br/>
<a id="pl.5.28"></a><var>5.28</var>seed, or any industrial or chemurgic purpose.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.29"></a><var>5.29</var>    Sec. 4. Minnesota Statutes 2016, section 17.53, subdivision 8, is amended to read:<br/>
<a id="pl.5.30"></a><var>5.30</var>    Subd. 8. <b>First purchaser.</b> (a) Except as provided in paragraph (b), "first purchaser" <br/>
<a id="pl.5.31"></a><var>5.31</var>means any person that buys agricultural commodities for movement into commercial channels
         <br/>
<a id="pl.6.1"></a><var>6.1</var>from the producer; or any lienholder, secured party or pledgee, public or private,
         or assignee <br/>
<a id="pl.6.2"></a><var>6.2</var>of said lienholder, secured party or pledgee, who gains title to the agricultural
         commodity <br/>
<a id="pl.6.3"></a><var>6.3</var>from the producer as the result of exercising any legal rights by the lienholder,
         secured <br/>
<a id="pl.6.4"></a><var>6.4</var>party, pledgee, or assignee thereof, regardless of when the lien, security interest
         or pledge <br/>
<a id="pl.6.5"></a><var>6.5</var>was created and regardless of whether the first purchaser is domiciled within the
         state or <br/>
<a id="pl.6.6"></a><var>6.6</var>without. "First purchaser" does not mean the Commodity Credit Corporation when a <br/>
<a id="pl.6.7"></a><var>6.7</var>commodity is used as collateral for a federal nonrecourse loan unless the commissioner
         <br/>
<a id="pl.6.8"></a><var>6.8</var>determines otherwise.<br/>
<a id="pl.6.9"></a><var>6.9</var>(b) For wheat, barley, corn, and cultivated wild rice, "first purchaser" means a person <br/>
<a id="pl.6.10"></a><var>6.10</var>who buys, receives delivery of, or provides storage for the agricultural commodity
         from a <br/>
<a id="pl.6.11"></a><var>6.11</var>producer for movement into commercial channels; or a lienholder, secured party, or
         pledgee, <br/>
<a id="pl.6.12"></a><var>6.12</var>who gains title to the agricultural commodity from the producers as the result of
         exercising <br/>
<a id="pl.6.13"></a><var>6.13</var>any legal rights by the lienholder, secured party, pledgee, or assignee, regardless
         of when <br/>
<a id="pl.6.14"></a><var>6.14</var>the lien, security interest, or pledge was created and regardless of whether or not
         the first <br/>
<a id="pl.6.15"></a><var>6.15</var>purchaser is domiciled in the state. "First purchaser" does not mean the Commodity
         Credit <br/>
<a id="pl.6.16"></a><var>6.16</var>Corporation when the wheat, barley, or cultivated wild rice is used as collateral
         for a federal <br/>
<a id="pl.6.17"></a><var>6.17</var>nonrecourse loan unless the commissioner determines otherwise.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.18"></a><var>6.18</var>    Sec. 5. Minnesota Statutes 2016, section 17.53, subdivision 13, is amended to read:<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 13. <b>Producer.</b> (a) Except as provided in paragraph (b), "producer" means any <br/>
<a id="pl.6.20"></a><var>6.20</var>person who owns or operates an agricultural producing or growing facility for an agricultural
         <br/>
<a id="pl.6.21"></a><var>6.21</var>commodity and shares in the profits and risk of loss from such operation, and who
         grows, <br/>
<a id="pl.6.22"></a><var>6.22</var>raises, feeds or produces the agricultural commodity in Minnesota during the current
         or <br/>
<a id="pl.6.23"></a><var>6.23</var>preceding marketing year.<br/>
<a id="pl.6.24"></a><var>6.24</var>(b) For wheat, barley, corn, and cultivated wild rice, "producer" means in addition to <br/>
<a id="pl.6.25"></a><var>6.25</var>the meaning in paragraph (a) and for the purpose of the payment or the refund of the
         checkoff <br/>
<a id="pl.6.26"></a><var>6.26</var>fee paid pursuant to sections 
         <statute_ref>17.51</statute_ref> to 
         <statute_ref>17.69</statute_ref> only, a person who delivers into, stores within, <br/>
<a id="pl.6.27"></a><var>6.27</var>or makes the first sale of the agricultural commodity in Minnesota.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.6.28"></a><var>6.28</var>    Sec. 6. Minnesota Statutes 2016, section 17.983, subdivision 1, is amended to read:<br/>
<a id="pl.6.29"></a><var>6.29</var>    Subdivision 1. <b>Administrative penalties; citation.</b> If a person has violated a provision <br/>
<a id="pl.6.30"></a><var>6.30</var>of chapter 25, 31B, or 32 32D, the commissioner may issue a written citation to the person <br/>
<a id="pl.6.31"></a><var>6.31</var>by personal service or by certified mail. The citation must describe the nature of
         the violation <br/>
<a id="pl.6.32"></a><var>6.32</var>and the statute or rule alleged to have been violated; state the time for correction,
         if <br/>
<a id="pl.6.33"></a><var>6.33</var>applicable; and the amount of any proposed fine. The citation must advise the person
         to <br/>
<a id="pl.7.1"></a><var>7.1</var>notify the commissioner in writing within 30 days if the person wishes to appeal the
         citation. <br/>
<a id="pl.7.2"></a><var>7.2</var>If the person fails to appeal the citation, the citation is the final order and not
         subject to <br/>
<a id="pl.7.3"></a><var>7.3</var>further review.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.4"></a><var>7.4</var>    Sec. 7. Minnesota Statutes 2016, section 17.984, subdivision 1, is amended to read:<br/>
<a id="pl.7.5"></a><var>7.5</var>    Subdivision 1. <b>Authority.</b> To carry out the commissioner's enforcement duties under <br/>
<a id="pl.7.6"></a><var>7.6</var>chapter 32 32D, the commissioner may, upon presenting appropriate credentials, during <br/>
<a id="pl.7.7"></a><var>7.7</var>regular working hours and at other reasonable times, inspect premises subject to the
         <br/>
<a id="pl.7.8"></a><var>7.8</var>commissioner's enforcement and licensing authority for reasons related to the commissioner's
         <br/>
<a id="pl.7.9"></a><var>7.9</var>enforcement and licensing authority; request information from persons with information
         <br/>
<a id="pl.7.10"></a><var>7.10</var>relevant to an inspection; and inspect relevant papers and records, including business
         records. <br/>
<a id="pl.7.11"></a><var>7.11</var>The commissioner may issue notices in lieu of citations for minor violations if a
         notice is <br/>
<a id="pl.7.12"></a><var>7.12</var>in the public interest.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.13"></a><var>7.13</var>    Sec. 8. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to <br/>
<a id="pl.7.14"></a><var>7.14</var>read:<br/>
<a id="pl.7.15"></a><var>7.15</var>    Subd. 9b. <b>Experimental use permit.</b> "Experimental use permit" means a permit issued <br/>
<a id="pl.7.16"></a><var>7.16</var>by the United States Environmental Protection Agency as authorized in Section 5 of
         the <br/>
<a id="pl.7.17"></a><var>7.17</var>Federal Insecticide, Fungicide, and Rodenticide Act.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.7.18"></a><var>7.18</var>    Sec. 9. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to <br/>
<a id="pl.7.19"></a><var>7.19</var>read:<br/>
<a id="pl.7.20"></a><var>7.20</var>    Subd. 9c. <b>Experimental use pesticide product.</b> "Experimental use pesticide product" <br/>
<a id="pl.7.21"></a><var>7.21</var>means any federally registered or unregistered pesticide whose use is authorized by
         an <br/>
<a id="pl.7.22"></a><var>7.22</var>experimental use permit issued by the United States Environmental Protection Agency.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.7.23"></a><var>7.23</var>    Sec. 10. Minnesota Statutes 2016, section 18B.26, subdivision 1, is amended to read:<br/>
<a id="pl.7.24"></a><var>7.24</var>    Subdivision 1. <b>Requirement.</b> (a) Except as provided in paragraphs (b) to (d) (e), a person <br/>
<a id="pl.7.25"></a><var>7.25</var>may not use or distribute a pesticide in this state unless it is registered with the
         commissioner. <br/>
<a id="pl.7.26"></a><var>7.26</var>Pesticide registrations expire on December 31 of each year and may be renewed on or
         before <br/>
<a id="pl.7.27"></a><var>7.27</var>that date for the following calendar year.<br/>
<a id="pl.7.28"></a><var>7.28</var>(b) Registration is not required if a pesticide is shipped from one plant or warehouse
         to <br/>
<a id="pl.7.29"></a><var>7.29</var>another plant or warehouse operated by the same person and used solely at the plant
         or <br/>
<a id="pl.7.30"></a><var>7.30</var>warehouse as an ingredient in the formulation of a pesticide that is registered under
         this <br/>
<a id="pl.7.31"></a><var>7.31</var>chapter.<br/>
<a id="pl.8.1"></a><var>8.1</var>(c) An unregistered pesticide that was previously registered with the commissioner
         may <br/>
<a id="pl.8.2"></a><var>8.2</var>be used for a period of two years following the cancellation of the registration of
         the pesticide, <br/>
<a id="pl.8.3"></a><var>8.3</var>unless the commissioner determines that the continued use of the pesticide would cause
         <br/>
<a id="pl.8.4"></a><var>8.4</var>unreasonable adverse effects on the environment, or with the written permission of
         the <br/>
<a id="pl.8.5"></a><var>8.5</var>commissioner. To use the unregistered pesticide at any time after the two-year period,
         the <br/>
<a id="pl.8.6"></a><var>8.6</var>pesticide end user must demonstrate to the satisfaction of the commissioner, if requested,
         <br/>
<a id="pl.8.7"></a><var>8.7</var>that the pesticide has been continuously registered under a different brand name or
         by a <br/>
<a id="pl.8.8"></a><var>8.8</var>different manufacturer and has similar composition, or, the pesticide end user obtains
         the <br/>
<a id="pl.8.9"></a><var>8.9</var>written permission of the commissioner.<br/>
<a id="pl.8.10"></a><var>8.10</var>(d) The commissioner may allow specific pesticide products that are not registered
         with <br/>
<a id="pl.8.11"></a><var>8.11</var>the commissioner to be distributed in this state for use in another state.<br/>
<a id="pl.8.12"></a><var>8.12</var>(e) A substance or mixture of substances being tested only to determine its potential
         <br/>
<a id="pl.8.13"></a><var>8.13</var>efficacy as a pesticide, or to determine its toxicity or other properties, and not
         requiring the <br/>
<a id="pl.8.14"></a><var>8.14</var>issuance of an experimental use permit under United States Environmental Protection
         <br/>
<a id="pl.8.15"></a><var>8.15</var>Agency criteria specified in federal regulations, is not required to be registered.<br/>
<a id="pl.8.16"></a><var>8.16</var>(e) (f) Each pesticide with a unique United States Environmental Protection Agency <br/>
<a id="pl.8.17"></a><var>8.17</var>pesticide registration number or a unique brand name must be registered with the <br/>
<a id="pl.8.18"></a><var>8.18</var>commissioner.<br/>
<a id="pl.8.19"></a><var>8.19</var>(f) (g) It is unlawful for a person to distribute or use a pesticide in the state, or to
         sell <br/>
<a id="pl.8.20"></a><var>8.20</var>into the state for use in the state, any pesticide product that has not been registered
         by the <br/>
<a id="pl.8.21"></a><var>8.21</var>commissioner and for which the applicable pesticide registration application fee,
         gross sales <br/>
<a id="pl.8.22"></a><var>8.22</var>fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and
         4.<br/>
<a id="pl.8.23"></a><var>8.23</var>(g) (h) Every person who sells for use in the state a pesticide product that has been <br/>
<a id="pl.8.24"></a><var>8.24</var>registered by the commissioner shall pay to the commissioner the applicable registration
         <br/>
<a id="pl.8.25"></a><var>8.25</var>application fees, sales fees, and waste pesticide program surcharges. These sales
         expressly <br/>
<a id="pl.8.26"></a><var>8.26</var>include all sales made electronically, telephonically, or by any other means that
         result in a <br/>
<a id="pl.8.27"></a><var>8.27</var>pesticide product being shipped to or used in the state. There is a rebuttable presumption
         <br/>
<a id="pl.8.28"></a><var>8.28</var>that pesticide products that are sold or distributed in or into the state by any person
         are sold <br/>
<a id="pl.8.29"></a><var>8.29</var>or distributed for use in the state.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.8.30"></a><var>8.30</var>    Sec. 11. Minnesota Statutes 2016, section 18B.28, subdivision 1, is amended to read:<br/>
<a id="pl.8.31"></a><var>8.31</var>    Subdivision 1. <b>Requirement.</b> A person may not use or distribute an experimental use <br/>
<a id="pl.8.32"></a><var>8.32</var>pesticide product in the state until it is registered with the commissioner. Experimental
         use <br/>
<a id="pl.8.33"></a><var>8.33</var>pesticide product registrations expire on December 31 of each year and may be renewed
         <br/>
<a id="pl.9.1"></a><var>9.1</var>on or before that date. A substance or mixture of substances being tested only to determine <br/>
<a id="pl.9.2"></a><var>9.2</var>its potential efficacy as a pesticide, or to determine its toxicity or other properties,
         and not <br/>
<a id="pl.9.3"></a><var>9.3</var>requiring the issuance of an experimental use permit under United States Environmental
         <br/>
<a id="pl.9.4"></a><var>9.4</var>Protection Agency criteria specified in federal regulations, is not required to be
         registered.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.9.5"></a><var>9.5</var>    Sec. 12. Minnesota Statutes 2016, section 18B.28, subdivision 3, is amended to read:<br/>
<a id="pl.9.6"></a><var>9.6</var>    Subd. 3. <b>Application.</b> A person must file an application for experimental use pesticide <br/>
<a id="pl.9.7"></a><var>9.7</var>product registration with the commissioner. An application to register an experimental
         use <br/>
<a id="pl.9.8"></a><var>9.8</var>pesticide product must include:<br/>
<a id="pl.9.9"></a><var>9.9</var>(1) the name and address of the applicant;<br/>
<a id="pl.9.10"></a><var>9.10</var>(2) a federal copy of the United States Environmental Protection Agency approval <br/>
<a id="pl.9.11"></a><var>9.11</var>document permit;<br/>
<a id="pl.9.12"></a><var>9.12</var>(3) a description of the purpose or objectives of the experimental use product;<br/>
<a id="pl.9.13"></a><var>9.13</var>(4) an a copy of the experimental use pesticide labeling accepted experimental use <br/>
<a id="pl.9.14"></a><var>9.14</var>pesticide product label by the United States Environmental Protection Agency;<br/>
<a id="pl.9.15"></a><var>9.15</var>(5) the name, address, and telephone number of cooperators or participants in this
         state;<br/>
<a id="pl.9.16"></a><var>9.16</var>(6) the amount of material to be shipped or used in this state; and<br/>
<a id="pl.9.17"></a><var>9.17</var>(7) other information requested by the commissioner.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.9.18"></a><var>9.18</var>    Sec. 13. Minnesota Statutes 2016, section 18B.305, subdivision 1, is amended to read:<br/>
<a id="pl.9.19"></a><var>9.19</var>    Subdivision 1. <b>Education and training.</b> (a) The commissioner, as the lead agency, shall <br/>
<a id="pl.9.20"></a><var>9.20</var>develop, implement or approve, and evaluate, in consultation with University of Minnesota
         <br/>
<a id="pl.9.21"></a><var>9.21</var>Extension, the Minnesota State Colleges and Universities system, and other educational
         <br/>
<a id="pl.9.22"></a><var>9.22</var>institutions, innovative educational and training programs addressing pesticide and pest <br/>
<a id="pl.9.23"></a><var>9.23</var>management concerns including:<br/>
<a id="pl.9.24"></a><var>9.24</var>(1) water quality protection;<br/>
<a id="pl.9.25"></a><var>9.25</var>(2) endangered species protection;<br/>
<a id="pl.9.26"></a><var>9.26</var>(3) minimizing pesticide residues in food and water;<br/>
<a id="pl.9.27"></a><var>9.27</var>(4) worker protection and applicator safety;<br/>
<a id="pl.9.28"></a><var>9.28</var>(5) chronic toxicity;<br/>
<a id="pl.9.29"></a><var>9.29</var>(6) integrated pest management and pest resistance;<br/>
<a id="pl.10.1"></a><var>10.1</var>(7) pesticide disposal;<br/>
<a id="pl.10.2"></a><var>10.2</var>(8) pesticide drift;<br/>
<a id="pl.10.3"></a><var>10.3</var>(9) relevant laws including pesticide labels and labeling and state and federal rules
         and <br/>
<a id="pl.10.4"></a><var>10.4</var>regulations; and<br/>
<a id="pl.10.5"></a><var>10.5</var>(10) current science and technology updates.<br/>
<a id="pl.10.6"></a><var>10.6</var>(b) The commissioner shall appoint educational planning committees which must include
         <br/>
<a id="pl.10.7"></a><var>10.7</var>representatives of industry and applicators.<br/>
<a id="pl.10.8"></a><var>10.8</var>(c) Specific current regulatory concerns must be discussed and, if appropriate, <br/>
<a id="pl.10.9"></a><var>10.9</var>incorporated into each training session. Relevant changes to pesticide product labels
         or <br/>
<a id="pl.10.10"></a><var>10.10</var>labeling or state and federal rules and regulations may be included.<br/>
<a id="pl.10.11"></a><var>10.11</var>(d) The commissioner may approve programs from private industry, higher education
         <br/>
<a id="pl.10.12"></a><var>10.12</var>institutions, and nonprofit organizations that meet minimum requirements for education,
         <br/>
<a id="pl.10.13"></a><var>10.13</var>training, and certification.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.10.14"></a><var>10.14</var>    Sec. 14. Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read:<br/>
<a id="pl.10.15"></a><var>10.15</var>    Subdivision 1. <b>Requirement.</b> (a) A person may not apply a pesticide for hire without a <br/>
<a id="pl.10.16"></a><var>10.16</var>commercial applicator license for the appropriate use categories or a structural pest
         control <br/>
<a id="pl.10.17"></a><var>10.17</var>license.<br/>
<a id="pl.10.18"></a><var>10.18</var>    (b) A commercial applicator licensee must have a valid license identification card
         to <br/>
<a id="pl.10.19"></a><var>10.19</var>purchase a restricted use pesticide or apply pesticides for hire and must display
         it upon <br/>
<a id="pl.10.20"></a><var>10.20</var>demand by an authorized representative of the commissioner or a law enforcement officer.
         <br/>
<a id="pl.10.21"></a><var>10.21</var>The commissioner shall prescribe the information required on the license identification
         <br/>
<a id="pl.10.22"></a><var>10.22</var>card.<br/>
<a id="pl.10.23"></a><var>10.23</var>(c) A person licensed under this section applying a pesticide consistent with the
         label <br/>
<a id="pl.10.24"></a><var>10.24</var>and labeling is not required to verify, document, or otherwise prove a particular
         need prior <br/>
<a id="pl.10.25"></a><var>10.25</var>to or following the application of a pesticide registered under FIFRA, except as required
         <br/>
<a id="pl.10.26"></a><var>10.26</var>by the label.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.10.27"></a><var>10.27</var>    Sec. 15. Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read:<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subdivision 1. <b>Requirement.</b> (a) Except for a licensed commercial applicator, certified <br/>
<a id="pl.10.29"></a><var>10.29</var>private applicator, or licensed structural pest control applicator, a person, including
         a <br/>
<a id="pl.10.30"></a><var>10.30</var>government employee, may not purchase or use a restricted use pesticide in performance
         <br/>
<a id="pl.11.1"></a><var>11.1</var>of official duties without having a noncommercial applicator license for an appropriate
         use <br/>
<a id="pl.11.2"></a><var>11.2</var>category.<br/>
<a id="pl.11.3"></a><var>11.3</var>    (b) A licensee must have a valid license identification card when applying pesticides
         <br/>
<a id="pl.11.4"></a><var>11.4</var>and must display it upon demand by an authorized representative of the commissioner
         or a <br/>
<a id="pl.11.5"></a><var>11.5</var>law enforcement officer. The license identification card must contain information
         required <br/>
<a id="pl.11.6"></a><var>11.6</var>by the commissioner.<br/>
<a id="pl.11.7"></a><var>11.7</var>(c) A person licensed under this section applying a pesticide consistent with the
         label <br/>
<a id="pl.11.8"></a><var>11.8</var>and labeling is not required to verify, document, or otherwise prove a particular
         need prior <br/>
<a id="pl.11.9"></a><var>11.9</var>to or following the application of a pesticide registered under FIFRA, except as required
         <br/>
<a id="pl.11.10"></a><var>11.10</var>by the label.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.11.11"></a><var>11.11</var>    Sec. 16. Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read:<br/>
<a id="pl.11.12"></a><var>11.12</var>    Subdivision 1. <b>Requirement.</b> (a) Except for a licensed commercial or noncommercial <br/>
<a id="pl.11.13"></a><var>11.13</var>applicator, only a certified private applicator may use a restricted use pesticide
         to produce <br/>
<a id="pl.11.14"></a><var>11.14</var>an agricultural commodity:<br/>
<a id="pl.11.15"></a><var>11.15</var>(1) as a traditional exchange of services without financial compensation;<br/>
<a id="pl.11.16"></a><var>11.16</var>(2) on a site owned, rented, or managed by the person or the person's employees; or<br/>
<a id="pl.11.17"></a><var>11.17</var>(3) when the private applicator is one of two or fewer employees and the owner or
         <br/>
<a id="pl.11.18"></a><var>11.18</var>operator is a certified private applicator or is licensed as a noncommercial applicator.<br/>
<a id="pl.11.19"></a><var>11.19</var>(b) A person may not purchase a restricted use pesticide without presenting a license
         <br/>
<a id="pl.11.20"></a><var>11.20</var>card, certified private applicator card, or the card number.<br/>
<a id="pl.11.21"></a><var>11.21</var>(c) A person certified under this section applying a pesticide consistent with the
         label <br/>
<a id="pl.11.22"></a><var>11.22</var>and labeling is not required to verify, document, or otherwise prove a particular
         need prior <br/>
<a id="pl.11.23"></a><var>11.23</var>to or following the application of a pesticide registered under FIFRA, except as required
         <br/>
<a id="pl.11.24"></a><var>11.24</var>by the label.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.11.25"></a><var>11.25</var>    Sec. 17. Minnesota Statutes 2016, section 18B.37, subdivision 3, is amended to read:<br/>
<a id="pl.11.26"></a><var>11.26</var>    Subd. 3. <b>Structural pest control applicators.</b> (a) A structural pest control applicator <br/>
<a id="pl.11.27"></a><var>11.27</var>must maintain a record of each structural pest control application conducted by that
         person <br/>
<a id="pl.11.28"></a><var>11.28</var>or by the person's employees. The record must include the:<br/>
<a id="pl.11.29"></a><var>11.29</var>(1) date of structural pest control application;<br/>
<a id="pl.11.30"></a><var>11.30</var>(2) target pest;<br/>
<a id="pl.12.1"></a><var>12.1</var>(3) brand name of the pesticide, United States Environmental Protection Agency <br/>
<a id="pl.12.2"></a><var>12.2</var>registration number, and amount used;<br/>
<a id="pl.12.3"></a><var>12.3</var>(4) for fumigation, the temperature and exposure time;<br/>
<a id="pl.12.4"></a><var>12.4</var>(5) time the pesticide application was completed;<br/>
<a id="pl.12.5"></a><var>12.5</var>(6) name and address of the customer;<br/>
<a id="pl.12.6"></a><var>12.6</var>(7) name of structural pest control applicator, name of company and address of applicator
         <br/>
<a id="pl.12.7"></a><var>12.7</var>or company, and license number of applicator; and<br/>
<a id="pl.12.8"></a><var>12.8</var>(8) any other information required by the commissioner.<br/>
<a id="pl.12.9"></a><var>12.9</var>(b) All information for this record requirement must be contained in a document for
         <br/>
<a id="pl.12.10"></a><var>12.10</var>each pesticide application. An invoice containing the required information may constitute
         <br/>
<a id="pl.12.11"></a><var>12.11</var>the record.<br/>
<a id="pl.12.12"></a><var>12.12</var>(c) The record must be completed no later than five days after the application of
         the <br/>
<a id="pl.12.13"></a><var>12.13</var>pesticide.<br/>
<a id="pl.12.14"></a><var>12.14</var>(d) Records must be retained for five years after the date of treatment.<br/>
<a id="pl.12.15"></a><var>12.15</var>(e) A copy of the record must be given to a person who ordered the application that
         is <br/>
<a id="pl.12.16"></a><var>12.16</var>present at the site where the structural pest control application is conducted, placed
         in a <br/>
<a id="pl.12.17"></a><var>12.17</var>conspicuous location at the site where the structural pest control application is
         conducted <br/>
<a id="pl.12.18"></a><var>12.18</var>immediately after the application of the pesticides, or delivered to the person who
         ordered <br/>
<a id="pl.12.19"></a><var>12.19</var>an application or the owner of the site. The commissioner must make sample forms available
         <br/>
<a id="pl.12.20"></a><var>12.20</var>that meet the requirements of this subdivision.<br/>
<a id="pl.12.21"></a><var>12.21</var>(f) A structural applicator must post in a conspicuous place inside a renter's apartment
         <br/>
<a id="pl.12.22"></a><var>12.22</var>where a pesticide application has occurred a list of postapplication precautions contained
         <br/>
<a id="pl.12.23"></a><var>12.23</var>on the label of the pesticide that was applied in the apartment and any other information
         <br/>
<a id="pl.12.24"></a><var>12.24</var>required by the commissioner.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.12.25"></a><var>12.25</var>    Sec. 18. Minnesota Statutes 2016, section 18C.70, subdivision 5, is amended to read:<br/>
<a id="pl.12.26"></a><var>12.26</var>    Subd. 5. <b>Expiration.</b> This section expires January 8, 2017 June 30, 2020.<br/>
<a id="pl.12.27"></a><var>12.27</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 7, 2017.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.12.28"></a><var>12.28</var>    Sec. 19. Minnesota Statutes 2016, section 18C.71, subdivision 4, is amended to read:<br/>
<a id="pl.12.29"></a><var>12.29</var>    Subd. 4. <b>Expiration.</b> This section expires January 8, 2017 June 30, 2020.<br/>
<a id="pl.12.30"></a><var>12.30</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 7, 2017.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 20. Minnesota Statutes 2016, section 18H.06, subdivision 2, is amended to read:<br/>
<a id="pl.13.2"></a><var>13.2</var>    Subd. 2. <b>Occasional sales.</b> (a) An individual may offer nursery stock for sale and be <br/>
<a id="pl.13.3"></a><var>13.3</var>exempt from the requirement to obtain a nursery stock certificate if:<br/>
<a id="pl.13.4"></a><var>13.4</var>(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;<br/>
<a id="pl.13.5"></a><var>13.5</var>(2) all nursery stock sold or distributed by the individual is intended for planting
         in <br/>
<a id="pl.13.6"></a><var>13.6</var>Minnesota;<br/>
<a id="pl.13.7"></a><var>13.7</var>(3) all nursery stock purchased or procured for resale or distribution was grown in
         <br/>
<a id="pl.13.8"></a><var>13.8</var>Minnesota and has been certified by the commissioner; and<br/>
<a id="pl.13.9"></a><var>13.9</var>(4) the individual conducts sales or distributions of nursery stock on ten or fewer
         days <br/>
<a id="pl.13.10"></a><var>13.10</var>in a calendar year.<br/>
<a id="pl.13.11"></a><var>13.11</var>(b) A municipality may offer certified nursery stock for sale and be exempt from the
         <br/>
<a id="pl.13.12"></a><var>13.12</var>requirement to obtain a nursery stock certificate if:<br/>
<a id="pl.13.13"></a><var>13.13</var>(1) all nursery stock offered for sale or distributed is intended for planting by
         residents <br/>
<a id="pl.13.14"></a><var>13.14</var>of the municipality on public property or public easements within the municipal boundary;<br/>
<a id="pl.13.15"></a><var>13.15</var>(2) all nursery stock purchased or procured for resale or distribution is grown in
         <br/>
<a id="pl.13.16"></a><var>13.16</var>Minnesota and has been certified by the commissioner; and<br/>
<a id="pl.13.17"></a><var>13.17</var>(3) the municipality submits to the commissioner before any sale or distribution of
         <br/>
<a id="pl.13.18"></a><var>13.18</var>nursery stock a list of all suppliers who provide the municipality with nursery stock.<br/>
<a id="pl.13.19"></a><var>13.19</var>(b) (c) The commissioner may prescribe the conditions of the exempt nursery sales under <br/>
<a id="pl.13.20"></a><var>13.20</var>this subdivision and may conduct routine inspections of the nursery stock offered
         for sale.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.13.21"></a><var>13.21</var>    Sec. 21. Minnesota Statutes 2016, section 18H.07, subdivision 2, is amended to read:<br/>
<a id="pl.13.22"></a><var>13.22</var>    Subd. 2. <b>Nursery stock grower certificate.</b> (a) A nursery stock grower must pay an <br/>
<a id="pl.13.23"></a><var>13.23</var>annual fee based on the area of all acreage on which nursery stock is grown as follows:<br/>
<a id="pl.13.24"></a><var>13.24</var>(1) less than one-half acre, $150;<br/>
<a id="pl.13.25"></a><var>13.25</var>(2) from one-half acre to two acres, $200;<br/>
<a id="pl.13.26"></a><var>13.26</var>(3) over two acres up to five acres, $300;<br/>
<a id="pl.13.27"></a><var>13.27</var>(4) over five acres up to ten acres, $350;<br/>
<a id="pl.13.28"></a><var>13.28</var>(5) over ten acres up to 20 acres, $500;<br/>
<a id="pl.13.29"></a><var>13.29</var>(6) over 20 acres up to 40 acres, $650;<br/>
<a id="pl.14.1"></a><var>14.1</var>(7) over 40 acres up to 50 acres, $800;<br/>
<a id="pl.14.2"></a><var>14.2</var>(8) over 50 acres up to 200 acres, $1,100;<br/>
<a id="pl.14.3"></a><var>14.3</var>(9) over 200 acres up to 500 acres, $1,500; and<br/>
<a id="pl.14.4"></a><var>14.4</var>(10) over 500 acres, $1,500 plus $2 for each additional acre.<br/>
<a id="pl.14.5"></a><var>14.5</var>(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee
         due must <br/>
<a id="pl.14.6"></a><var>14.6</var>be charged for each month, or portion thereof, that the fee is delinquent up to a
         maximum <br/>
<a id="pl.14.7"></a><var>14.7</var>of 30 percent for any application for renewal not postmarked or electronically date stamped <br/>
<a id="pl.14.8"></a><var>14.8</var>by December 31 of the current year.<br/>
<a id="pl.14.9"></a><var>14.9</var>(c) A nursery stock grower found operating without a valid nursery stock grower <br/>
<a id="pl.14.10"></a><var>14.10</var>certificate cannot offer for sale or sell nursery stock until: (1) payment is received
         by the <br/>
<a id="pl.14.11"></a><var>14.11</var>commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate
         fee <br/>
<a id="pl.14.12"></a><var>14.12</var>owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.14.13"></a><var>14.13</var>    Sec. 22. Minnesota Statutes 2016, section 18H.07, subdivision 3, is amended to read:<br/>
<a id="pl.14.14"></a><var>14.14</var>    Subd. 3. <b>Nursery stock dealer certificate.</b> (a) A nursery stock dealer must pay an annual <br/>
<a id="pl.14.15"></a><var>14.15</var>fee based on the dealer's gross sales of certified nursery stock per location during
         the most <br/>
<a id="pl.14.16"></a><var>14.16</var>recent certificate year. A certificate applicant operating for the first time must
         pay the <br/>
<a id="pl.14.17"></a><var>14.17</var>minimum fee. The fees per sales location are:<br/>
<a id="pl.14.18"></a><var>14.18</var>(1) gross sales up to $5,000, $150;<br/>
<a id="pl.14.19"></a><var>14.19</var>(2) gross sales over $5,000 up to $20,000, $175;<br/>
<a id="pl.14.20"></a><var>14.20</var>(3) gross sales over $20,000 up to $50,000, $300;<br/>
<a id="pl.14.21"></a><var>14.21</var>(4) gross sales over $50,000 up to $75,000, $425;<br/>
<a id="pl.14.22"></a><var>14.22</var>(5) gross sales over $75,000 up to $100,000, $550;<br/>
<a id="pl.14.23"></a><var>14.23</var>(6) gross sales over $100,000 up to $200,000, $675; and<br/>
<a id="pl.14.24"></a><var>14.24</var>(7) gross sales over $200,000, $800.<br/>
<a id="pl.14.25"></a><var>14.25</var>(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee
         due must <br/>
<a id="pl.14.26"></a><var>14.26</var>be charged for each month, or portion thereof, that the fee is delinquent up to a
         maximum <br/>
<a id="pl.14.27"></a><var>14.27</var>of 30 percent for any application for renewal not postmarked or electronically date stamped <br/>
<a id="pl.14.28"></a><var>14.28</var>by December 31 of the current year.<br/>
<a id="pl.14.29"></a><var>14.29</var>(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate
         <br/>
<a id="pl.14.30"></a><var>14.30</var>cannot offer for sale or sell nursery stock until: (1) payment is received by the
         commissioner <br/>
<a id="pl.15.1"></a><var>15.1</var>for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed;
         and (2) a <br/>
<a id="pl.15.2"></a><var>15.2</var>new certificate is issued to the nursery stock dealer by the commissioner.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.15.3"></a><var>15.3</var>    Sec. 23. Minnesota Statutes 2016, section 21.111, subdivision 2, is amended to read:<br/>
<a id="pl.15.4"></a><var>15.4</var>    Subd. 2. <b>Inspected.</b> "Inspected" means that the potato plants are examined in the field <br/>
<a id="pl.15.5"></a><var>15.5</var>and that the harvested potatoes produced by such the potato plants are examined by or under <br/>
<a id="pl.15.6"></a><var>15.6</var>the authority of the commissioner. For seed potatoes produced in a lab, inspected means <br/>
<a id="pl.15.7"></a><var>15.7</var>that the lab's records, including records related to the lab's procedures and protocols,
         as well <br/>
<a id="pl.15.8"></a><var>15.8</var>as the seed potatoes, have been examined under the authority of the commissioner.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.15.9"></a><var>15.9</var>    Sec. 24. Minnesota Statutes 2016, section 21.111, subdivision 3, is amended to read:<br/>
<a id="pl.15.10"></a><var>15.10</var>    Subd. 3. <b>Certified.</b> "Certified" means that the potatoes were inspected while growing <br/>
<a id="pl.15.11"></a><var>15.11</var>in the field and again after being harvested, and were thereafter duly certified by
         or under <br/>
<a id="pl.15.12"></a><var>15.12</var>the authority of the commissioner, as provided in sections 
         <statute_ref>21.111</statute_ref> to 
         <statute_ref>21.122</statute_ref>, and as provided <br/>
<a id="pl.15.13"></a><var>15.13</var>by rules adopted and published by the commissioner. For seed potatoes produced in a lab, <br/>
<a id="pl.15.14"></a><var>15.14</var>certified means that:<br/>
<a id="pl.15.15"></a><var>15.15</var>(1) the seed potato lab facilities and the lab's procedures and protocols have been
         <br/>
<a id="pl.15.16"></a><var>15.16</var>examined under the authority of the commissioner; and<br/>
<a id="pl.15.17"></a><var>15.17</var>(2) the seed potatoes have been inspected after they have been harvested, removed,
         or <br/>
<a id="pl.15.18"></a><var>15.18</var>released from the lab, and were duly certified by or under the authority of the commissioner,
         <br/>
<a id="pl.15.19"></a><var>15.19</var>as provided in sections 21.111 to 21.122.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.15.20"></a><var>15.20</var>    Sec. 25. Minnesota Statutes 2016, section 21.113, is amended to read:<br/>
<a id="pl.15.21"></a><var>15.21</var><b>21.113 CERTIFICATES OF INSPECTION.</b><br/>
<a id="pl.15.22"></a><var>15.22</var>(a) The commissioner shall cause issue certificates of inspection to be issued only when <br/>
<a id="pl.15.23"></a><var>15.23</var>seed potatoes have been inspected while growing in the field and again after being
         harvested.<br/>
<a id="pl.15.24"></a><var>15.24</var>(b) For seed potatoes produced in a lab, the commissioner shall issue certificates
         of <br/>
<a id="pl.15.25"></a><var>15.25</var>inspection only after:<br/>
<a id="pl.15.26"></a><var>15.26</var>(1) the seed potato lab facility and the lab's records have been inspected; and<br/>
<a id="pl.15.27"></a><var>15.27</var>(2) the seed potatoes have been inspected after they have been harvested, removed,
         or <br/>
<a id="pl.15.28"></a><var>15.28</var>released from the lab.<br/>
<a id="pl.15.29"></a><var>15.29</var>Such (c) Certificates of inspection under this section shall show the varietal purity and <br/>
<a id="pl.15.30"></a><var>15.30</var>the freedom from disease and physical injury of such potatoes and shall contain such any <br/>
<a id="pl.16.1"></a><var>16.1</var>other information as may be prescribed by rules adopted and published under sections
         
         <statute_ref>21.111</statute_ref> <br/>
<a id="pl.16.2"></a><var>16.2</var>to 
         <statute_ref>21.122</statute_ref>.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.16.3"></a><var>16.3</var>    Sec. 26. Minnesota Statutes 2016, section 21.117, is amended to read:<br/>
<a id="pl.16.4"></a><var>16.4</var><b>21.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS.</b><br/>
<a id="pl.16.5"></a><var>16.5</var>(a) Any person may make application to the commissioner for inspection or certification
         <br/>
<a id="pl.16.6"></a><var>16.6</var>of seed potatoes growing or to be grown. Upon receiving such application and the required
         <br/>
<a id="pl.16.7"></a><var>16.7</var>fee and such other information as may be required, the commissioner shall cause such
         <br/>
<a id="pl.16.8"></a><var>16.8</var>potatoes to be inspected or certified in accordance with the provisions of sections
         
         <statute_ref>21.111</statute_ref> <br/>
<a id="pl.16.9"></a><var>16.9</var>to 
         <statute_ref>21.122</statute_ref> and the rules adopted and published thereunder.<br/>
<a id="pl.16.10"></a><var>16.10</var>(b) If a grower wishes to withdraw a field or lab after having made application for <br/>
<a id="pl.16.11"></a><var>16.11</var>inspection and such withdrawal is requested before the field or lab inspection has been <br/>
<a id="pl.16.12"></a><var>16.12</var>made, the fee paid shall be refunded to said grower.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.16.13"></a><var>16.13</var>    Sec. 27. Minnesota Statutes 2016, section 25.32, is amended to read:<br/>
<a id="pl.16.14"></a><var>16.14</var><b>25.32 COMMISSIONER'S DUTIES.</b><br/>
<a id="pl.16.15"></a><var>16.15</var>The commissioner shall administer sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> shall be administered by the <br/>
<a id="pl.16.16"></a><var>16.16</var>commissioner.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.16.17"></a><var>16.17</var>    Sec. 28. Minnesota Statutes 2016, section 25.33, subdivision 5, is amended to read:<br/>
<a id="pl.16.18"></a><var>16.18</var>    Subd. 5. <b>Commercial feed.</b> "Commercial feed" means materials or combinations of <br/>
<a id="pl.16.19"></a><var>16.19</var>materials that are distributed or intended to be distributed for use as feed or for
         mixing in <br/>
<a id="pl.16.20"></a><var>16.20</var>feed, including feed for aquatic animals, unless the materials are specifically exempted.
         <br/>
<a id="pl.16.21"></a><var>16.21</var>Unmixed whole seeds and physically altered entire unmixed seeds, as identified in the <br/>
<a id="pl.16.22"></a><var>16.22</var>United States grain standards, if the whole or physically altered seeds are not chemically <br/>
<a id="pl.16.23"></a><var>16.23</var>changed, are not labeled as a feed or for use as feed, or are not adulterated within the meaning <br/>
<a id="pl.16.24"></a><var>16.24</var>of section 
         <statute_ref>25.37</statute_ref>, paragraph (a), are exempt. The commissioner by rule may exempt from <br/>
<a id="pl.16.25"></a><var>16.25</var>this definition, or from specific provisions of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref>, commodities such as <br/>
<a id="pl.16.26"></a><var>16.26</var>hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds
         or <br/>
<a id="pl.16.27"></a><var>16.27</var>substances if those commodities, compounds, or substances are not intermixed with
         other <br/>
<a id="pl.16.28"></a><var>16.28</var>materials, are not labeled as a feed or for use as feed, and are not adulterated within the <br/>
<a id="pl.16.29"></a><var>16.29</var>meaning of section 
         <statute_ref>25.37</statute_ref>, paragraph (a).<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.17.1"></a><var>17.1</var>    Sec. 29. Minnesota Statutes 2016, section 25.33, subdivision 10, is amended to read:<br/>
<a id="pl.17.2"></a><var>17.2</var>    Subd. 10. <b>Manufacture.</b> "Manufacture" means to grind, mix or, blend, or further process, <br/>
<a id="pl.17.3"></a><var>17.3</var>package, or label a commercial feed for distribution.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.17.4"></a><var>17.4</var>    Sec. 30. Minnesota Statutes 2016, section 25.33, subdivision 21, is amended to read:<br/>
<a id="pl.17.5"></a><var>17.5</var>    Subd. 21. <b>Commissioner.</b> "Commissioner" means the commissioner of agriculture or <br/>
<a id="pl.17.6"></a><var>17.6</var>a designated representative the commissioner's agent.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.17.7"></a><var>17.7</var>    Sec. 31. Minnesota Statutes 2016, section 25.341, subdivision 1, is amended to read:<br/>
<a id="pl.17.8"></a><var>17.8</var>    Subdivision 1. <b>Requirement.</b> Before a person may: (1) manufacture a commercial feed <br/>
<a id="pl.17.9"></a><var>17.9</var>in the state; (2) distribute a commercial feed in or into the state; or (3) have the
         person's <br/>
<a id="pl.17.10"></a><var>17.10</var>name appear on the label of a commercial feed as guarantor, the person must have a
         <br/>
<a id="pl.17.11"></a><var>17.11</var>commercial feed license for each guarantor, or manufacturing or distributing facility. A <br/>
<a id="pl.17.12"></a><var>17.12</var>person who makes only retail sales of commercial feed, guaranteed by another, is not
         required <br/>
<a id="pl.17.13"></a><var>17.13</var>to obtain a license.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.17.14"></a><var>17.14</var>    Sec. 32. Minnesota Statutes 2016, section 25.341, subdivision 2, is amended to read:<br/>
<a id="pl.17.15"></a><var>17.15</var>    Subd. 2. <b>Application; fee; term.</b> A person who is required to have a commercial feed <br/>
<a id="pl.17.16"></a><var>17.16</var>license shall must submit an application on a form provided or approved by the commissioner <br/>
<a id="pl.17.17"></a><var>17.17</var>accompanied by a an application fee of $75 paid to the commissioner for each location. A <br/>
<a id="pl.17.18"></a><var>17.18</var>license is not transferable from one person to another, from one ownership to another,
         or <br/>
<a id="pl.17.19"></a><var>17.19</var>from one location to another. The license year is the calendar year. A license expires
         on <br/>
<a id="pl.17.20"></a><var>17.20</var>December 31 of the year for which it is issued, except that a license is valid through January <br/>
<a id="pl.17.21"></a><var>17.21</var>31 of the next year or until the issuance of the renewal license, whichever comes first, if <br/>
<a id="pl.17.22"></a><var>17.22</var>the licensee has filed a renewal application with the commissioner that has been received <br/>
<a id="pl.17.23"></a><var>17.23</var>by the commissioner on or before December 31 of the year for which the current license
         <br/>
<a id="pl.17.24"></a><var>17.24</var>was issued, or postmarked on or before December 31 of the year for which the current <br/>
<a id="pl.17.25"></a><var>17.25</var>license was issued. Any person who is required to have, but fails to obtain a license
         or a <br/>
<a id="pl.17.26"></a><var>17.26</var>licensee who fails to comply with license renewal requirements, shall must pay a $100 late <br/>
<a id="pl.17.27"></a><var>17.27</var>fee in addition to the license fee.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.17.28"></a><var>17.28</var>    Sec. 33. Minnesota Statutes 2016, section 25.35, is amended to read:<br/>
<a id="pl.17.29"></a><var>17.29</var><b>25.35 LABELING.</b><br/>
<a id="pl.17.30"></a><var>17.30</var>(a) A commercial feed, except a customer formula feed, must be accompanied by a label
         <br/>
<a id="pl.17.31"></a><var>17.31</var>bearing the following information:<br/>
<a id="pl.18.1"></a><var>18.1</var>(1) the product name and the brand name, if any, under which the commercial feed is
         <br/>
<a id="pl.18.2"></a><var>18.2</var>distributed;<br/>
<a id="pl.18.3"></a><var>18.3</var>(2) the guaranteed analysis, stated in terms the commissioner requires by rule, to
         advise <br/>
<a id="pl.18.4"></a><var>18.4</var>the user of the composition of the feed or to support claims made in the labeling.
         The <br/>
<a id="pl.18.5"></a><var>18.5</var>substances or elements must be determinable by laboratory methods such as the methods
         <br/>
<a id="pl.18.6"></a><var>18.6</var>published by the AOAC International or other generally recognized methods;<br/>
<a id="pl.18.7"></a><var>18.7</var>(3) the common or usual name of each ingredient used in the manufacture of the <br/>
<a id="pl.18.8"></a><var>18.8</var>commercial feed. The commissioner may by rule permit the use of a collective term
         for a <br/>
<a id="pl.18.9"></a><var>18.9</var>group of ingredients which perform a similar function, or may exempt commercial feeds
         <br/>
<a id="pl.18.10"></a><var>18.10</var>or any group of commercial feeds from this requirement on finding that an ingredient
         <br/>
<a id="pl.18.11"></a><var>18.11</var>statement is not required in the interest of consumers;<br/>
<a id="pl.18.12"></a><var>18.12</var>(4) the name and principal mailing address of the manufacturer or the person responsible
         <br/>
<a id="pl.18.13"></a><var>18.13</var>for distributing the commercial feed;<br/>
<a id="pl.18.14"></a><var>18.14</var>(5) adequate directions for use for all commercial feeds containing drugs and for
         such <br/>
<a id="pl.18.15"></a><var>18.15</var>other feeds as the commissioner may require by rule as necessary for their safe and
         effective <br/>
<a id="pl.18.16"></a><var>18.16</var>use;<br/>
<a id="pl.18.17"></a><var>18.17</var>(6) precautionary statements which the commissioner determines by rule are necessary
         <br/>
<a id="pl.18.18"></a><var>18.18</var>for the safe and effective use of the commercial feed; and<br/>
<a id="pl.18.19"></a><var>18.19</var>(7) a quantity statement.<br/>
<a id="pl.18.20"></a><var>18.20</var>(b) A customer formula feed must be accompanied by a label, invoice, delivery slip,
         or <br/>
<a id="pl.18.21"></a><var>18.21</var>other shipping document bearing the following information:<br/>
<a id="pl.18.22"></a><var>18.22</var>(1) name and address of the manufacturer;<br/>
<a id="pl.18.23"></a><var>18.23</var>(2) name and address of the purchaser;<br/>
<a id="pl.18.24"></a><var>18.24</var>(3) date of delivery;<br/>
<a id="pl.18.25"></a><var>18.25</var>(4) the product name and either (i) the quantity of each commercial feed and each
         other <br/>
<a id="pl.18.26"></a><var>18.26</var>ingredient used in the mixture, or (ii) a guaranteed analysis and list of ingredients
         in paragraph <br/>
<a id="pl.18.27"></a><var>18.27</var>(a), clauses (2) and (3);<br/>
<a id="pl.18.28"></a><var>18.28</var>(5) adequate directions for use for all customer formula feeds containing drugs and
         for <br/>
<a id="pl.18.29"></a><var>18.29</var>other feeds the commissioner requires by rule as necessary for their safe and effective
         use;<br/>
<a id="pl.18.30"></a><var>18.30</var>(6) precautionary statements the commissioner determines by rule are necessary for
         the <br/>
<a id="pl.18.31"></a><var>18.31</var>safe and effective use of the customer formula feed;<br/>
<a id="pl.19.1"></a><var>19.1</var>(7) if a product containing a drug is used:<br/>
<a id="pl.19.2"></a><var>19.2</var>(i) the purpose of the medication (claim statement); and<br/>
<a id="pl.19.3"></a><var>19.3</var>(ii) the established name of each active drug ingredient and the level of each drug
         used <br/>
<a id="pl.19.4"></a><var>19.4</var>in the final mixture expressed in a manner required by the commissioner by rule; and<br/>
<a id="pl.19.5"></a><var>19.5</var>(8) for a customer formula feed for which the formula is developed by someone other
         <br/>
<a id="pl.19.6"></a><var>19.6</var>than the manufacturer, a disclaimer may be included on the label stating "THIS FEED
         IS <br/>
<a id="pl.19.7"></a><var>19.7</var>A CUSTOMER FORMULA FEED DEVELOPED BY SOMEONE OTHER THAN THE <br/>
<a id="pl.19.8"></a><var>19.8</var>MANUFACTURER. THE MANUFACTURER DOES NOT CLAIM, REPRESENT, <br/>
<a id="pl.19.9"></a><var>19.9</var>WARRANT, OR GUARANTEE, AND IS NOT RESPONSIBLE FOR THE NUTRITIONAL <br/>
<a id="pl.19.10"></a><var>19.10</var>ADEQUACY OF THIS FEED OR THE NUTRITIONAL SUITABILITY OF THIS FEED <br/>
<a id="pl.19.11"></a><var>19.11</var>FOR ITS INTENDED PURPOSE."; and<br/>
<a id="pl.19.12"></a><var>19.12</var>(9) a quantity statement.<br/>
<a id="pl.19.13"></a><var>19.13</var>(c) The manufacturer of a customer formula feed the formula of which is developed
         by <br/>
<a id="pl.19.14"></a><var>19.14</var>someone other than the manufacturer is not responsible or liable for the nutritional
         adequacy <br/>
<a id="pl.19.15"></a><var>19.15</var>or the nutritional suitability of the feed for its intended purpose if: (1) the manufacturer
         does <br/>
<a id="pl.19.16"></a><var>19.16</var>not make a claim of nutritional adequacy for the customer formula feed and does not
         make <br/>
<a id="pl.19.17"></a><var>19.17</var>a claim for nutritional suitability of the feed for its intended purpose; and (2)
         the manufacturer <br/>
<a id="pl.19.18"></a><var>19.18</var>includes the disclaimer in paragraph (b), clause (8). A person other than the manufacturer
         <br/>
<a id="pl.19.19"></a><var>19.19</var>who develops or recommends a formula for a customer formula feed is responsible for
         <br/>
<a id="pl.19.20"></a><var>19.20</var>providing to the manufacturer of the feed the appropriate labeling information and
         for <br/>
<a id="pl.19.21"></a><var>19.21</var>providing the appropriate use information to the feed manufacturer.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.19.22"></a><var>19.22</var>    Sec. 34. Minnesota Statutes 2016, section 25.371, subdivision 2, is amended to read:<br/>
<a id="pl.19.23"></a><var>19.23</var>    Subd. 2. <b>Certificate application.</b> (a) A person may apply to the commissioner for a <br/>
<a id="pl.19.24"></a><var>19.24</var>good manufacturing practices certificate for commercial feed and feed ingredients.
         <br/>
<a id="pl.19.25"></a><var>19.25</var>Application for good manufacturing practices certificates must be made on forms provided
         <br/>
<a id="pl.19.26"></a><var>19.26</var>or approved by the commissioner. The commissioner shall conduct inspections of facilities
         <br/>
<a id="pl.19.27"></a><var>19.27</var>for persons that have applied for or intend to apply for a good manufacturing practices
         <br/>
<a id="pl.19.28"></a><var>19.28</var>certificate for commercial feed and feed ingredients from the commissioner. The <br/>
<a id="pl.19.29"></a><var>19.29</var>commissioner shall not conduct an inspection under this section subdivision if the applicant <br/>
<a id="pl.19.30"></a><var>19.30</var>has not paid in full the inspection fee for previous inspections. Certificate issuance
         shall be <br/>
<a id="pl.19.31"></a><var>19.31</var>based on compliance with subdivisions 3 to 14, or United States Food and Drug <br/>
<a id="pl.19.32"></a><var>19.32</var>Administration rules regarding preventive controls for animal feed.<br/>
<a id="pl.20.1"></a><var>20.1</var>(b) The commissioner may assess a fee for the inspection, service, and work performed
         <br/>
<a id="pl.20.2"></a><var>20.2</var>in carrying out the issuance of a good manufacturing practices certificate for commercial
         <br/>
<a id="pl.20.3"></a><var>20.3</var>feed and feed ingredients. The inspection fee must be based on mileage and the cost
         of <br/>
<a id="pl.20.4"></a><var>20.4</var>inspection.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.20.5"></a><var>20.5</var>    Sec. 35. Minnesota Statutes 2016, section 25.38, is amended to read:<br/>
<a id="pl.20.6"></a><var>20.6</var><b>25.38 PROHIBITED ACTS.</b><br/>
<a id="pl.20.7"></a><var>20.7</var>The following acts and causing the following acts in Minnesota are prohibited:<br/>
<a id="pl.20.8"></a><var>20.8</var>(1) manufacture or distribution of any commercial feed that is adulterated or misbranded;<br/>
<a id="pl.20.9"></a><var>20.9</var>(2) adulteration or misbranding of any commercial feed;<br/>
<a id="pl.20.10"></a><var>20.10</var>(3) distribution of agricultural commodities such as whole seed, hay, straw, stover,
         silage, <br/>
<a id="pl.20.11"></a><var>20.11</var>cobs, husks, and hulls, which are adulterated within the meaning of section 
         <statute_ref>25.37</statute_ref>, paragraph <br/>
<a id="pl.20.12"></a><var>20.12</var>(a);<br/>
<a id="pl.20.13"></a><var>20.13</var>(4) removal or disposal of a commercial feed in violation of an order under section
         
         <statute_ref>25.42</statute_ref>;<br/>
<a id="pl.20.14"></a><var>20.14</var>(5) failure or refusal to obtain a commercial feed license under section 
         <statute_ref>25.341</statute_ref> or to <br/>
<a id="pl.20.15"></a><var>20.15</var>provide a small package listing under section 
<statute_ref>25.39</statute_ref>; or<br/>
<a id="pl.20.16"></a><var>20.16</var>(6) failure to pay inspection fees, to register a small package under section 25.39, or to <br/>
<a id="pl.20.17"></a><var>20.17</var>file reports as required by section 
         <statute_ref>25.39</statute_ref>.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.20.18"></a><var>20.18</var>    Sec. 36. Minnesota Statutes 2016, section 25.39, subdivision 1, is amended to read:<br/>
<a id="pl.20.19"></a><var>20.19</var>    Subdivision 1. <b>Amount of fee.</b> (a) An inspection fee at the rate of 16 cents per ton must <br/>
<a id="pl.20.20"></a><var>20.20</var>be paid to the commissioner on commercial feeds distributed in this state by the person
         who <br/>
<a id="pl.20.21"></a><var>20.21</var>first distributes the commercial feed, except that:<br/>
<a id="pl.20.22"></a><var>20.22</var>(1) no fee need be paid on:<br/>
<a id="pl.20.23"></a><var>20.23</var>(i) a commercial feed if the payment has been made by a previous distributor; or<br/>
<a id="pl.20.24"></a><var>20.24</var>(ii) any feed ingredient in a customer formula feeds if the inspection fee is paid on the <br/>
<a id="pl.20.25"></a><var>20.25</var>commercial feeds which are used as ingredients feed that has been directly furnished by the <br/>
<a id="pl.20.26"></a><var>20.26</var>customer; or<br/>
<a id="pl.20.27"></a><var>20.27</var>(2) a Minnesota feed distributor who can substantiate that greater than 50 percent of
         the <br/>
<a id="pl.20.28"></a><var>20.28</var>distribution of commercial feed is to purchasers outside the state may purchase commercial
         <br/>
<a id="pl.20.29"></a><var>20.29</var>feeds without payment of the inspection fee under a tonnage fee exemption permit issued
         <br/>
<a id="pl.20.30"></a><var>20.30</var>by the commissioner no fee need be paid on a first distribution if made to a qualified buyer <br/>
<a id="pl.21.1"></a><var>21.1</var>who, with approval from the commissioner, is responsible for the fee. Such location specific <br/>
<a id="pl.21.2"></a><var>21.2</var>license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to <br/>
<a id="pl.21.3"></a><var>21.3</var>commercial feed distributors licensees who distribute feed or feed ingredients outside the <br/>
<a id="pl.21.4"></a><var>21.4</var>state, and who submit a $100 nonrefundable application fee and comply with rules adopted <br/>
<a id="pl.21.5"></a><var>21.5</var>by the commissioner relative to record keeping, tonnage of commercial feed distributed
         in <br/>
<a id="pl.21.6"></a><var>21.6</var>Minnesota, total of all commercial feed tonnage distributed, and all other information
         which <br/>
<a id="pl.21.7"></a><var>21.7</var>the commissioner may require so as to ensure that proper inspection fee payment has
         been <br/>
<a id="pl.21.8"></a><var>21.8</var>made.<br/>
<a id="pl.21.9"></a><var>21.9</var>(b) In the case of pet food or specialty pet food distributed in the state only in packages <br/>
<a id="pl.21.10"></a><var>21.10</var>of ten pounds or less, a listing of distributor must register each product and submit a current <br/>
<a id="pl.21.11"></a><var>21.11</var>label for each product must be submitted annually on forms provided by the commissioner <br/>
<a id="pl.21.12"></a><var>21.12</var>and, accompanied by an annual application fee of $100 for each product in lieu of the <br/>
<a id="pl.21.13"></a><var>21.13</var>inspection fee. This annual fee is due by July 1 must be received by the commissioner on <br/>
<a id="pl.21.14"></a><var>21.14</var>or before June 30 or postmarked on or before June 30. The inspection fee required by <br/>
<a id="pl.21.15"></a><var>21.15</var>paragraph (a) applies to pet food or specialty pet food distributed in packages exceeding <br/>
<a id="pl.21.16"></a><var>21.16</var>ten pounds.<br/>
<a id="pl.21.17"></a><var>21.17</var>(c) In the case of specialty pet food distributed in the state only in packages of
         ten pounds <br/>
<a id="pl.21.18"></a><var>21.18</var>or less, a listing of each product and a current label for each product must be submitted
         <br/>
<a id="pl.21.19"></a><var>21.19</var>annually on forms provided by the commissioner and accompanied by an annual fee of
         <br/>
<a id="pl.21.20"></a><var>21.20</var>$100 for each product in lieu of the inspection fee. This annual fee is due by July
         1. The <br/>
<a id="pl.21.21"></a><var>21.21</var>inspection fee required by paragraph (a) applies to specialty pet food distributed
         in packages <br/>
<a id="pl.21.22"></a><var>21.22</var>exceeding ten pounds.<br/>
<a id="pl.21.23"></a><var>21.23</var>(d) (c) The minimum inspection fee is $75 per annual reporting period.<br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.21.24"></a><var>21.24</var>    Sec. 37. Minnesota Statutes 2016, section 25.39, subdivision 1a, is amended to read:<br/>
<a id="pl.21.25"></a><var>21.25</var>    Subd. 1a. <b>Containers of ten pounds or less.</b> A distributor who is subject to the annual <br/>
<a id="pl.21.26"></a><var>21.26</var>fee specified in subdivision 1, paragraph (b) or (c), shall must do the following:<br/>
<a id="pl.21.27"></a><var>21.27</var>(1) before beginning distribution, file register with the commissioner a listing of the pet <br/>
<a id="pl.21.28"></a><var>21.28</var>and specialty pet foods to be distributed in the state only in containers of ten pounds
         or less, <br/>
<a id="pl.21.29"></a><var>21.29</var>on forms provided by the commissioner. The listing registration under this clause must be <br/>
<a id="pl.21.30"></a><var>21.30</var>renewed annually on or before July 1 June 30 and is the basis for the payment of the annual <br/>
<a id="pl.21.31"></a><var>21.31</var>fee. New products added during the year must be submitted to the commissioner as a
         <br/>
<a id="pl.21.32"></a><var>21.32</var>supplement to the annual listing registration before distribution; and<br/>
<a id="pl.22.1"></a><var>22.1</var>(2) if the annual renewal of the listing registration is not received or postmarked on or <br/>
<a id="pl.22.2"></a><var>22.2</var>before July 1 June 30 or if an unlisted unregistered product is distributed, pay a late filing <br/>
<a id="pl.22.3"></a><var>22.3</var>fee of $100 per product in addition to the normal charge for the listing registration. The late <br/>
<a id="pl.22.4"></a><var>22.4</var>filing fee under this clause is in addition to any other penalty under this chapter.<br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.22.5"></a><var>22.5</var>    Sec. 38. Minnesota Statutes 2016, section 25.39, subdivision 2, is amended to read:<br/>
<a id="pl.22.6"></a><var>22.6</var>    Subd. 2. <b>Annual statement.</b> A person who is liable for the payment of a fee under this <br/>
<a id="pl.22.7"></a><var>22.7</var>section shall must file with the commissioner on forms furnished by the commissioner an <br/>
<a id="pl.22.8"></a><var>22.8</var>annual statement setting forth the number of net tons of commercial feeds distributed
         in <br/>
<a id="pl.22.9"></a><var>22.9</var>this state during the calendar year. The report is due by on or before the 31st of each January <br/>
<a id="pl.22.10"></a><var>22.10</var>following the year of distribution. The inspection fee at the rate specified in subdivision 1 <br/>
<a id="pl.22.11"></a><var>22.11</var>must accompany the statement. For each tonnage report not filed with the commissioner or <br/>
<a id="pl.22.12"></a><var>22.12</var>payment of inspection fees not made on time received by the commissioner on or before <br/>
<a id="pl.22.13"></a><var>22.13</var>January 31 or postmarked on or before January 31, a penalty of ten percent of the amount <br/>
<a id="pl.22.14"></a><var>22.14</var>due, with a minimum penalty of $10, must be assessed against the license holder, and
         the <br/>
<a id="pl.22.15"></a><var>22.15</var>amount of fees due, plus penalty, is a debt and may be recovered in a civil action
         against <br/>
<a id="pl.22.16"></a><var>22.16</var>the license holder. The assessment of this penalty does not prevent the department
         from <br/>
<a id="pl.22.17"></a><var>22.17</var>taking other actions as provided in this chapter.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.22.18"></a><var>22.18</var>    Sec. 39. Minnesota Statutes 2016, section 25.39, subdivision 3, is amended to read:<br/>
<a id="pl.22.19"></a><var>22.19</var>    Subd. 3. <b>Records.</b> Each person required to pay an inspection fee or to report in accordance <br/>
<a id="pl.22.20"></a><var>22.20</var>with this section shall must keep records, as determined by the commissioner, accurately <br/>
<a id="pl.22.21"></a><var>22.21</var>detailing the tonnage of commercial feed distributed in this state. Records upon which
         the <br/>
<a id="pl.22.22"></a><var>22.22</var>tonnage is based must be maintained for six years and made available to the commissioner
         <br/>
<a id="pl.22.23"></a><var>22.23</var>for inspection, copying, and audit. A person who is located outside of this state
         must maintain <br/>
<a id="pl.22.24"></a><var>22.24</var>and make available records required by this section in this state or pay all costs
         incurred in <br/>
<a id="pl.22.25"></a><var>22.25</var>auditing of the records at another location. Unless required for the enforcement of
         this <br/>
<a id="pl.22.26"></a><var>22.26</var>chapter, the information in the records required by this subdivision is private or
         nonpublic.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.22.27"></a><var>22.27</var>    Sec. 40. Minnesota Statutes 2016, section 25.40, subdivision 2, is amended to read:<br/>
<a id="pl.22.28"></a><var>22.28</var>    Subd. 2. <b>Notice; public comment.</b> Before the issuance, amendment, or repeal of any <br/>
<a id="pl.22.29"></a><var>22.29</var>rule authorized by sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref>, the commissioner shall publish the proposed <br/>
<a id="pl.22.30"></a><var>22.30</var>rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated
         to <br/>
<a id="pl.22.31"></a><var>22.31</var>give interested parties, including all current license holders, adequate notice and
         shall afford <br/>
<a id="pl.22.32"></a><var>22.32</var>all interested persons an opportunity to present their views orally or in writing,
         within a <br/>
<a id="pl.22.33"></a><var>22.33</var>reasonable period of time. After consideration of all views presented by interested
         persons, <br/>
<a id="pl.23.1"></a><var>23.1</var>the commissioner shall take appropriate action to issue the proposed rule or to amend
         or <br/>
<a id="pl.23.2"></a><var>23.2</var>repeal an existing rule. The provisions of this subdivision notwithstanding, if the
         <br/>
<a id="pl.23.3"></a><var>23.3</var>commissioner, pursuant to the authority of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref>, adopts the official <br/>
<a id="pl.23.4"></a><var>23.4</var>definitions of feed ingredients or and official feed terms as adopted by the Association of <br/>
<a id="pl.23.5"></a><var>23.5</var>American Feed Control Officials, any amendment or modification adopted by the association
         <br/>
<a id="pl.23.6"></a><var>23.6</var>shall be is adopted automatically under sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> without regard to the <br/>
<a id="pl.23.7"></a><var>23.7</var>publication of the notice required by this subdivision unless the commissioner, by
         order <br/>
<a id="pl.23.8"></a><var>23.8</var>specifically determines that the amendment or modification shall not be adopted.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.23.9"></a><var>23.9</var>    Sec. 41. Minnesota Statutes 2016, section 25.41, subdivision 1, is amended to read:<br/>
<a id="pl.23.10"></a><var>23.10</var>    Subdivision 1. <b>Authorization; limitation.</b> For the purpose of enforcement of sections <br/>
<statute_ref><a id="pl.23.11"></a><var>23.11</var>25.31
         </statute_ref> to 
         <statute_ref>25.43</statute_ref>, and associated rules, in order to determine whether the provisions have been <br/>
<a id="pl.23.12"></a><var>23.12</var>complied with, including whether or not any operations may be subject to such provisions,
         <br/>
<a id="pl.23.13"></a><var>23.13</var>officers or employees duly designated by the commissioner or the commissioner's agent, <br/>
<a id="pl.23.14"></a><var>23.14</var>upon presenting appropriate credentials, and a written notice to the owner, operator,
         or agent <br/>
<a id="pl.23.15"></a><var>23.15</var>in charge, are authorized:<br/>
<a id="pl.23.16"></a><var>23.16</var>(1) to enter, during normal business hours, any factory, warehouse, or establishment
         <br/>
<a id="pl.23.17"></a><var>23.17</var>within the state in which commercial feeds are manufactured, processed, packed, or
         held <br/>
<a id="pl.23.18"></a><var>23.18</var>for distribution, or to enter any vehicle being used to transport or hold such feeds;
         and<br/>
<a id="pl.23.19"></a><var>23.19</var>(2) to inspect at reasonable times, within reasonable limits, and in a reasonable
         manner, <br/>
<a id="pl.23.20"></a><var>23.20</var>such factory, warehouse, establishment or vehicle and all pertinent equipment, finished
         and <br/>
<a id="pl.23.21"></a><var>23.21</var>unfinished materials, containers, and labeling therein. The inspection may include
         the <br/>
<a id="pl.23.22"></a><var>23.22</var>verification of records and production and control procedures related to the manufacture,
         <br/>
<a id="pl.23.23"></a><var>23.23</var>distribution, storage, handling, or disposal of commercial feed as may be necessary
         to <br/>
<a id="pl.23.24"></a><var>23.24</var>determine compliance with this chapter.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.23.25"></a><var>23.25</var>    Sec. 42. Minnesota Statutes 2016, section 25.41, subdivision 2, is amended to read:<br/>
<a id="pl.23.26"></a><var>23.26</var>    Subd. 2. <b>Notification; promptness.</b> A separate notice shall must be given for each <br/>
<a id="pl.23.27"></a><var>23.27</var>inspection, but a notice shall is not be required for each entry made during the period covered <br/>
<a id="pl.23.28"></a><var>23.28</var>by the inspection. Each inspection shall be commenced must begin and be completed with <br/>
<a id="pl.23.29"></a><var>23.29</var>reasonable promptness. Upon completion of the inspection, the owner, operator, or
         agent <br/>
<a id="pl.23.30"></a><var>23.30</var>in charge of the facility or vehicle shall must be so notified.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.24.1"></a><var>24.1</var>    Sec. 43. Minnesota Statutes 2016, section 25.41, subdivision 3, is amended to read:<br/>
<a id="pl.24.2"></a><var>24.2</var>    Subd. 3. <b>Receipt for samples.</b> If the officer or employee commissioner or the <br/>
<a id="pl.24.3"></a><var>24.3</var>commissioner's agent making such inspection of a factory, warehouse, or other establishment <br/>
<a id="pl.24.4"></a><var>24.4</var>has obtained a sample in the course of the inspection, upon completion of the inspection
         <br/>
<a id="pl.24.5"></a><var>24.5</var>and prior to leaving the premises the officer or employee commissioner or the commissioner's <br/>
<a id="pl.24.6"></a><var>24.6</var>agent shall give to the owner, operator, or agent in charge a receipt describing the samples
         <br/>
<a id="pl.24.7"></a><var>24.7</var>obtained.<br/>
<br/>
<a id="bill.1.44.0"></a><a id="pl.24.8"></a><var>24.8</var>    Sec. 44. Minnesota Statutes 2016, section 25.41, subdivision 5, is amended to read:<br/>
<a id="pl.24.9"></a><var>24.9</var>    Subd. 5. <b>Entry of premises.</b> For the purpose of the enforcement of sections 
         <statute_ref>25.31</statute_ref> to <br/>
<statute_ref><a id="pl.24.10"></a><var>24.10</var>25.43
         </statute_ref>, the commissioner or the commissioner's duly designated agent is authorized to enter <br/>
<a id="pl.24.11"></a><var>24.11</var>upon any public or private premises including any vehicle of transport during regular
         business <br/>
<a id="pl.24.12"></a><var>24.12</var>hours to have access to, and to obtain samples, and to examine and copy records relating <br/>
<a id="pl.24.13"></a><var>24.13</var>to distribution of commercial feeds.<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.24.14"></a><var>24.14</var>    Sec. 45. Minnesota Statutes 2016, section 25.41, subdivision 7a, is amended to read:<br/>
<a id="pl.24.15"></a><var>24.15</var>    Subd. 7a. <b>Manufacturer's report of investigation.</b> If the inspection and analysis of an <br/>
<a id="pl.24.16"></a><var>24.16</var>official sample indicates that a commercial feed has been adulterated or misbranded,
         the <br/>
<a id="pl.24.17"></a><var>24.17</var>person whose name appears on the label of the indicated commercial feed as guarantor
         shall <br/>
<a id="pl.24.18"></a><var>24.18</var>must provide a manufacturer's report of investigation to the commissioner within 30 days
         <br/>
<a id="pl.24.19"></a><var>24.19</var>following the receipt of the official analysis.<br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.24.20"></a><var>24.20</var>    Sec. 46. Minnesota Statutes 2016, section 25.42, is amended to read:<br/>
<a id="pl.24.21"></a><var>24.21</var><b>25.42 DETAINED COMMERCIAL FEEDS.</b><br/>
<a id="pl.24.22"></a><var>24.22</var>    Subdivision 1. <b>Withdrawal from distribution order.</b> When the commissioner or the <br/>
<a id="pl.24.23"></a><var>24.23</var>commissioner's authorized agent has reasonable cause to believe any lot of commercial feed <br/>
<a id="pl.24.24"></a><var>24.24</var>is being distributed in violation of any of the provisions of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> or of any <br/>
<a id="pl.24.25"></a><var>24.25</var>of the prescribed rules under sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref>, the commissioner or the commissioner's <br/>
<a id="pl.24.26"></a><var>24.26</var>agent may issue and enforce a written or printed "withdrawal from distribution" order,
         <br/>
<a id="pl.24.27"></a><var>24.27</var>warning the distributor not to dispose of the lot of commercial feed in any manner
         until <br/>
<a id="pl.24.28"></a><var>24.28</var>written permission is given by the commissioner or the court. The commissioner shall
         release <br/>
<a id="pl.24.29"></a><var>24.29</var>the lot of withdrawn commercial feed so withdrawn when said provisions and sections 25.31 <br/>
<a id="pl.24.30"></a><var>24.30</var>to 25.43 and associated rules have been complied with. If compliance is not obtained within <br/>
<a id="pl.24.31"></a><var>24.31</var>30 days, the commissioner may begin, or upon request of the distributor or license
         holder <br/>
<a id="pl.24.32"></a><var>24.32</var>shall begin, proceedings for condemnation.<br/>
<a id="pl.25.1"></a><var>25.1</var>    Subd. 2. <b>Seizure; disposition.</b> Any lot of commercial feed not in compliance with said <br/>
<a id="pl.25.2"></a><var>25.2</var>provisions and sections 25.31 to 25.43 and associated rules shall be is subject to seizure on <br/>
<a id="pl.25.3"></a><var>25.3</var>complaint of the commissioner to the district court of the county in which said the commercial <br/>
<a id="pl.25.4"></a><var>25.4</var>feed is located. In the event the court finds the commercial feed to be in violation
         of sections <br/>
<statute_ref><a id="pl.25.5"></a><var>25.5</var>25.31
         </statute_ref> to 
         <statute_ref>25.43</statute_ref> and orders the condemnation of said the commercial feed, it shall the <br/>
<a id="pl.25.6"></a><var>25.6</var>commercial feed must be disposed of in any a manner consistent with the quality of the <br/>
<a id="pl.25.7"></a><var>25.7</var>commercial feed and the laws of the state; provided, that in no instance, shall the
         disposition <br/>
<a id="pl.25.8"></a><var>25.8</var>of said the commercial feed be ordered by the court without first giving the claimant an <br/>
<a id="pl.25.9"></a><var>25.9</var>opportunity to apply to the court for release of said the commercial feed or for permission <br/>
<a id="pl.25.10"></a><var>25.10</var>to process or relabel said the commercial feed to bring it into compliance with sections <br/>
<statute_ref><a id="pl.25.11"></a><var>25.11</var>25.31
         </statute_ref> to 
         <statute_ref>25.43</statute_ref>.<br/>
<br/>
<a id="bill.1.47.0"></a><a id="pl.25.12"></a><var>25.12</var>    Sec. 47. Minnesota Statutes 2016, section 25.43, is amended to read:<br/>
<a id="pl.25.13"></a><var>25.13</var><b>25.43 PENALTIES.</b><br/>
<a id="pl.25.14"></a><var>25.14</var>    Subdivision 1. <b>Misdemeanor.</b> Any person convicted of violating any of the provisions <br/>
<a id="pl.25.15"></a><var>25.15</var>of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> or who shall impede, hinder impedes, hinders, or otherwise prevent <br/>
<a id="pl.25.16"></a><var>25.16</var>prevents, or attempt attempts to prevent, said the commissioner or duly authorized the <br/>
<a id="pl.25.17"></a><var>25.17</var>commissioner's agent in performance of a duty in connection with the provisions of sections <br/>
<statute_ref><a id="pl.25.18"></a><var>25.18</var>25.31
         </statute_ref> to 
         <statute_ref>25.43</statute_ref>, shall be is guilty of a misdemeanor.<br/>
<a id="pl.25.19"></a><var>25.19</var>    Subd. 2. <b>Minor violations.</b> Nothing in sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> shall be construed as <br/>
<a id="pl.25.20"></a><var>25.20</var>requiring the commissioner or the commissioner's representative agent to: (1) report for <br/>
<a id="pl.25.21"></a><var>25.21</var>prosecution, or (2) institute seizure proceedings, or (3) issue a withdrawal from
         distribution <br/>
<a id="pl.25.22"></a><var>25.22</var>order, as a result of minor violations of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref>, or when the commissioner <br/>
<a id="pl.25.23"></a><var>25.23</var>or representative the commissioner's agent believes the public interest will best be served <br/>
<a id="pl.25.24"></a><var>25.24</var>by suitable notice of warning in writing.<br/>
<a id="pl.25.25"></a><var>25.25</var>    Subd. 3. <b>County attorney duties.</b> Each county attorney to whom any violation is reported <br/>
<a id="pl.25.26"></a><var>25.26</var>shall must cause appropriate proceedings to be instituted and prosecuted in the district court
         <br/>
<a id="pl.25.27"></a><var>25.27</var>or other court of competent jurisdiction without delay. Before the commissioner reports
         a <br/>
<a id="pl.25.28"></a><var>25.28</var>violation for such prosecution, an opportunity shall must be given the distributor to present <br/>
<a id="pl.25.29"></a><var>25.29</var>views to the commissioner.<br/>
<a id="pl.25.30"></a><var>25.30</var>    Subd. 4. <b>Injunction.</b> The commissioner may apply to the district court for a temporary <br/>
<a id="pl.25.31"></a><var>25.31</var>or permanent injunction restraining any person from violating or continuing to violate
         any <br/>
<a id="pl.25.32"></a><var>25.32</var>of the provisions of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> or any associated rule promulgated under the <br/>
<a id="pl.25.33"></a><var>25.33</var>act notwithstanding the existence of other remedies at law.<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 5. <b>Notice of </b><b>appeal.</b> (a) Any person adversely affected by an act, order, citation, <br/>
<a id="pl.26.2"></a><var>26.2</var>or ruling made pursuant to the provisions of sections 
         <statute_ref>25.31</statute_ref> to 
         <statute_ref>25.43</statute_ref> may seek judicial review <br/>
<a id="pl.26.3"></a><var>26.3</var>in accordance with chapter 14. has 30 days from receipt of the citation or order to notify <br/>
<a id="pl.26.4"></a><var>26.4</var>the commissioner in writing that the person intends to contest the citation or order
         through <br/>
<a id="pl.26.5"></a><var>26.5</var>a hearing. The hearing request must identify the order or citation being contested
         and state <br/>
<a id="pl.26.6"></a><var>26.6</var>the grounds for contesting it.<br/>
<a id="pl.26.7"></a><var>26.7</var>(b) If the person fails to notify the commissioner that the person intends to contest
         the <br/>
<a id="pl.26.8"></a><var>26.8</var>citation or order, the citation or order is final and not subject to further judicial
         or <br/>
<a id="pl.26.9"></a><var>26.9</var>administrative review.<br/>
<a id="pl.26.10"></a><var>26.10</var>    Subd. 6. <b>Administrative review.</b> If a person notifies the commissioner that the person <br/>
<a id="pl.26.11"></a><var>26.11</var>intends to contest a citation or order issued under this chapter, the Office of Administrative
         <br/>
<a id="pl.26.12"></a><var>26.12</var>Hearings shall conduct a hearing according to the applicable provisions of chapter
         14 for <br/>
<a id="pl.26.13"></a><var>26.13</var>hearings in contested cases and final decisions are subject to judicial review as
         provided in <br/>
<a id="pl.26.14"></a><var>26.14</var>chapter 14.<br/>
<br/>
<a id="bill.1.48.0"></a><a id="pl.26.15"></a><var>26.15</var>    Sec. 48. Minnesota Statutes 2016, section 27.04, is amended to read:<br/>
<a id="pl.26.16"></a><var>26.16</var><b>27.04 APPLICATION FOR LICENSE.</b><br/>
<a id="pl.26.17"></a><var>26.17</var>    Subdivision 1. <b>Issuance.</b> The commissioner shall issue a wholesale produce dealer's <br/>
<a id="pl.26.18"></a><var>26.18</var>license to engage in the business of a dealer at wholesale to persons submitting an
         application, <br/>
<a id="pl.26.19"></a><var>26.19</var>paying the prescribed fee, and complying with the conditions in this section.<br/>
<a id="pl.26.20"></a><var>26.20</var>    Subd. 2. <b>Application contents.</b> (a) The application must be in writing, accompanied by <br/>
<a id="pl.26.21"></a><var>26.21</var>the prescribed fee, and state:<br/>
<a id="pl.26.22"></a><var>26.22</var>(1) the place or places where the applicant intends to carry on the business for which
         <br/>
<a id="pl.26.23"></a><var>26.23</var>the license is desired;<br/>
<a id="pl.26.24"></a><var>26.24</var>(2) the estimated amount of business to be done monthly;<br/>
<a id="pl.26.25"></a><var>26.25</var>(3) the amount of business done during the preceding year, if any;<br/>
<a id="pl.26.26"></a><var>26.26</var>(4) the full names of the persons constituting the firm for a partnership, and for
         a <br/>
<a id="pl.26.27"></a><var>26.27</var>corporation the names of the officers of the corporation and where incorporated; and<br/>
<a id="pl.26.28"></a><var>26.28</var>(5) a financial statement showing the value and character of the assets and the amount
         <br/>
<a id="pl.26.29"></a><var>26.29</var>of liabilities of the applicant;<br/>
<a id="pl.26.30"></a><var>26.30</var>(6) the income and expenses for the most recent year;<br/>
<a id="pl.27.1"></a><var>27.1</var>(7) the names and addresses of all shareholders who own at least five percent of a
         <br/>
<a id="pl.27.2"></a><var>27.2</var>corporate applicant's shares of stock;<br/>
<a id="pl.27.3"></a><var>27.3</var>(8) whether the applicant or any of its officers, partners, or agents have been involved
         <br/>
<a id="pl.27.4"></a><var>27.4</var>in any litigation relating to the business of a wholesale produce dealer in the previous
         five <br/>
<a id="pl.27.5"></a><var>27.5</var>years; and<br/>
<a id="pl.27.6"></a><var>27.6</var>(9) (5) any other information relevant to the conduct of its business as a wholesale <br/>
<a id="pl.27.7"></a><var>27.7</var>produce dealer in the previous five years, as the commissioner may require.<br/>
<a id="pl.27.8"></a><var>27.8</var>(b) If a contract is used in a transaction, a copy of the contract must also be filed
         with <br/>
<a id="pl.27.9"></a><var>27.9</var>the commissioner.<br/>
<a id="pl.27.10"></a><var>27.10</var>(c) Financial data required of an applicant under this section is classified as private
         data <br/>
<a id="pl.27.11"></a><var>27.11</var>with regard to data on individuals and as nonpublic data with regard to data not on
         individuals <br/>
<a id="pl.27.12"></a><var>27.12</var>under section 
         <statute_ref>13.02</statute_ref>.<br/>
<a id="pl.27.13"></a><var>27.13</var>    Subd. 3. <b>Filing.</b> Applications shall be filed annually.<br/>
<br/>
<a id="bill.1.49.0"></a><a id="pl.27.14"></a><var>27.14</var>    Sec. 49. Minnesota Statutes 2016, section 27.041, subdivision 1, is amended to read:<br/>
<a id="pl.27.15"></a><var>27.15</var>    Subdivision 1. <b>Bonds.</b> (a) The applicant required to be bonded shall execute and file <br/>
<a id="pl.27.16"></a><var>27.16</var>with the commissioner a surety bond to the state of Minnesota to be approved by the
         <br/>
<a id="pl.27.17"></a><var>27.17</var>commissioner, the amount, form, and effective date to be determined by the commissioner
         <br/>
<a id="pl.27.18"></a><var>27.18</var>with the maximum not to exceed $1,000,000. In lieu of the surety bond, the commissioner
         <br/>
<a id="pl.27.19"></a><var>27.19</var>may accept a duly executed letter of credit. Before a wholesale produce dealer's license is <br/>
<a id="pl.27.20"></a><var>27.20</var>issued, the applicant for the license must file with the commissioner a bond in a
         penal sum <br/>
<a id="pl.27.21"></a><var>27.21</var>prescribed by the commissioner but not less than the following amounts:<br/>
<a id="pl.27.22"></a><var>27.22</var>(1) $5,000 for wholesale produce dealers whose monthly purchases are $35,000 or less;<br/>
<a id="pl.27.23"></a><var>27.23</var>(2) $10,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.27.24"></a><var>27.24</var>$35,000 but not more than $75,000;<br/>
<a id="pl.27.25"></a><var>27.25</var>(3) $15,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.27.26"></a><var>27.26</var>$75,000 but not more than $100,000;<br/>
<a id="pl.27.27"></a><var>27.27</var>(4) $25,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.27.28"></a><var>27.28</var>$100,000 but not more than $250,000;<br/>
<a id="pl.27.29"></a><var>27.29</var>(5) $50,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.27.30"></a><var>27.30</var>$250,000 but not more than $500,000;<br/>
<a id="pl.28.1"></a><var>28.1</var>(6) $100,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.28.2"></a><var>28.2</var>$500,000 but not more than $750,000;<br/>
<a id="pl.28.3"></a><var>28.3</var>(7) $175,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.28.4"></a><var>28.4</var>$750,000 but not more than $1,000,000;<br/>
<a id="pl.28.5"></a><var>28.5</var>(8) $250,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.28.6"></a><var>28.6</var>$1,000,000 but not more than $2,500,000;<br/>
<a id="pl.28.7"></a><var>28.7</var>(9) $500,000 for wholesale produce dealers whose monthly purchases are more than <br/>
<a id="pl.28.8"></a><var>28.8</var>$2,500,000 but not more than $10,000,000;<br/>
<a id="pl.28.9"></a><var>28.9</var>(10) $750,000 for wholesale produce dealers whose monthly purchases are more than
         <br/>
<a id="pl.28.10"></a><var>28.10</var>$10,000,000 but not more than $25,000,000; and<br/>
<a id="pl.28.11"></a><var>28.11</var>(11) $1,000,000 for wholesale produce dealers whose gross annual purchases exceed
         <br/>
<a id="pl.28.12"></a><var>28.12</var>$25,000,000.<br/>
<a id="pl.28.13"></a><var>28.13</var>(b) A wholesale produce dealer who has filed a bond with the commissioner before July
         <br/>
<a id="pl.28.14"></a><var>28.14</var>1, 2016, is not required to increase the amount of the bond to comply with this section
         until <br/>
<a id="pl.28.15"></a><var>28.15</var>July 1, 2017. The commissioner may postpone an increase in the amount of the bond
         until <br/>
<a id="pl.28.16"></a><var>28.16</var>July 1, 2018, if a licensee demonstrates that the increase will impose undue financial
         hardship <br/>
<a id="pl.28.17"></a><var>28.17</var>on the licensee, and that producers will not be harmed as a result of the postponement.
         The <br/>
<a id="pl.28.18"></a><var>28.18</var>commissioner may impose other restrictions on a licensee whose bond increase has been
         <br/>
<a id="pl.28.19"></a><var>28.19</var>postponed. The amount of the bond shall be based on the amount purchased or contracted
         <br/>
<a id="pl.28.20"></a><var>28.20</var>for from Minnesota farmers and other Minnesota dealers for produce during the previous
         <br/>
<a id="pl.28.21"></a><var>28.21</var>12 months.<br/>
<a id="pl.28.22"></a><var>28.22</var>(c) A first-time applicant for a wholesale produce dealer's license shall file a $10,000
         <br/>
<a id="pl.28.23"></a><var>28.23</var>bond with the commissioner. This bond shall remain in effect for the first year of
         the license. <br/>
<a id="pl.28.24"></a><var>28.24</var>Thereafter, the licensee shall comply with the applicable bonding requirements in
         paragraph <br/>
<a id="pl.28.25"></a><var>28.25</var>(a), clauses (1) to (11).<br/>
<a id="pl.28.26"></a><var>28.26</var>(d) In lieu of the bond required by this subdivision, the applicant may deposit with
         the <br/>
<a id="pl.28.27"></a><var>28.27</var>commissioner of management and budget cash; a certified check; a cashier's check;
         a postal, <br/>
<a id="pl.28.28"></a><var>28.28</var>bank, or express money order; assignable bonds or notes of the United States; an assignment
         <br/>
<a id="pl.28.29"></a><var>28.29</var>of a bank savings account or investment certificate; or an irrevocable bank letter
         of credit <br/>
<a id="pl.28.30"></a><var>28.30</var>as defined in section 336.5-102, in the same amount as would be required for a bond.<br/>
<a id="pl.28.31"></a><var>28.31</var>(e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
         <br/>
<a id="pl.28.32"></a><var>28.32</var>60 days' written notice of the bond's termination date to the licensee and the commissioner.<br/>
<a id="pl.29.1"></a><var>29.1</var>(f) The bond or letter of credit shall be conditioned on the faithful performance of the
         <br/>
<a id="pl.29.2"></a><var>29.2</var>applicant's duties as a dealer at wholesale, including:<br/>
<a id="pl.29.3"></a><var>29.3</var>(1) the observance of all laws relating to the carrying on of the business of a dealer
         at <br/>
<a id="pl.29.4"></a><var>29.4</var>wholesale;<br/>
<a id="pl.29.5"></a><var>29.5</var>(2) payment when due, unless it appears to the commissioner that a voluntary extension
         <br/>
<a id="pl.29.6"></a><var>29.6</var>of credit has been given on the produce by the seller to the licensee beyond the due
         date;<br/>
<a id="pl.29.7"></a><var>29.7</var>(3) the prompt settlement and payment of all claims and charges due the state for
         services <br/>
<a id="pl.29.8"></a><var>29.8</var>rendered or otherwise;<br/>
<a id="pl.29.9"></a><var>29.9</var>(4) the prompt reporting of sales as required by law to all persons consigning produce
         <br/>
<a id="pl.29.10"></a><var>29.10</var>to the licensee for sale on commission; and<br/>
<a id="pl.29.11"></a><var>29.11</var>(5) the prompt payment to the persons entitled thereto of the proceeds of the sales,
         less <br/>
<a id="pl.29.12"></a><var>29.12</var>lawful charges, disbursements, and commissions.<br/>
<a id="pl.29.13"></a><var>29.13</var>(b) (g) The bond shall cover all wholesale produce business subject to the protection <br/>
<a id="pl.29.14"></a><var>29.14</var>outlined in section 
         <statute_ref>27.001</statute_ref> which is:<br/>
<a id="pl.29.15"></a><var>29.15</var>(1) transacted within this state; or<br/>
<a id="pl.29.16"></a><var>29.16</var>(2) transacted in part within this state and in part within the states and provinces
         <br/>
<a id="pl.29.17"></a><var>29.17</var>contiguous with this state and sold by Minnesota sellers.<br/>
<a id="pl.29.18"></a><var>29.18</var>(h) Wholesale produce dealers who are retail merchants shall be required to file a
         bond <br/>
<a id="pl.29.19"></a><var>29.19</var>under paragraph (a) based on the dollar amount of produce purchased directly from
         farmers.<br/>
<br/>
<a id="bill.1.50.0"></a><a id="pl.29.20"></a><var>29.20</var>    Sec. 50. Minnesota Statutes 2016, section 28A.21, subdivision 6, is amended to read:<br/>
<a id="pl.29.21"></a><var>29.21</var>    Subd. 6. <b>Expiration.</b>  This section expires June 30, 2017 2027.<br/>
<br/>
<a id="bill.1.51.0"></a><a id="pl.29.22"></a><var>29.22</var>    Sec. 51. Minnesota Statutes 2016, section 31A.02, subdivision 4, is amended to read:<br/>
<a id="pl.29.23"></a><var>29.23</var>    Subd. 4. <b>Animals.</b> "Animals" means cattle, swine, sheep, goats, poultry, farmed Cervidae, <br/>
<a id="pl.29.24"></a><var>29.24</var>as defined in section 
         <statute_ref>35.153, subdivision 3</statute_ref>, llamas, as defined in section 
         <statute_ref>17.455, subdivision <br/>
<a id="pl.29.25"></a><var>29.25</var>2
         </statute_ref>, Ratitae, as defined in section 
         <statute_ref>17.453, subdivision 3</statute_ref>, horses, equines, and other large <br/>
<a id="pl.29.26"></a><var>29.26</var>domesticated animals.<br/>
<br/>
<a id="bill.1.52.0"></a><a id="pl.29.27"></a><var>29.27</var>    Sec. 52. Minnesota Statutes 2016, section 32C.02, subdivision 2, is amended to read:<br/>
<a id="pl.29.28"></a><var>29.28</var>    Subd. 2. <b>Facility design; development and operation.</b> The authority may enter into <br/>
<a id="pl.29.29"></a><var>29.29</var>management contracts, lease agreements, or both, with a Minnesota nonprofit corporation
         <br/>
<a id="pl.29.30"></a><var>29.30</var>to design, develop, and operate a facility to further the purposes of this chapter
         at the site <br/>
<a id="pl.30.1"></a><var>30.1</var>determined by the board and on the terms that the board finds desirable. The board
         must <br/>
<a id="pl.30.2"></a><var>30.2</var>identify and acquire a site that will accommodate, where practicable, the following facilities <br/>
<a id="pl.30.3"></a><var>30.3</var>and activities:<br/>
<a id="pl.30.4"></a><var>30.4</var>(1) housing for bred and lactating animals;<br/>
<a id="pl.30.5"></a><var>30.5</var>(2) milking parlor;<br/>
<a id="pl.30.6"></a><var>30.6</var>(3) automatic milking systems;<br/>
<a id="pl.30.7"></a><var>30.7</var>(4) cross-ventilated and natural-ventilated housing;<br/>
<a id="pl.30.8"></a><var>30.8</var>(5) transition cow housing;<br/>
<a id="pl.30.9"></a><var>30.9</var>(6) special needs and hospital housing;<br/>
<a id="pl.30.10"></a><var>30.10</var>(7) classrooms and a conference room;<br/>
<a id="pl.30.11"></a><var>30.11</var>(8) dairy processing facility with retail;<br/>
<a id="pl.30.12"></a><var>30.12</var>(9) visitors' center;<br/>
<a id="pl.30.13"></a><var>30.13</var>(10) student housing;<br/>
<a id="pl.30.14"></a><var>30.14</var>(11) laboratory facilities;<br/>
<a id="pl.30.15"></a><var>30.15</var>(12) space to accommodate installation of an anaerobic digester system to research
         <br/>
<a id="pl.30.16"></a><var>30.16</var>energy production from feedstock produced on site or from off-site sources; and<br/>
<a id="pl.30.17"></a><var>30.17</var>(13) space for feed storage to allow for research capabilities at the facility.<br/>
<a id="pl.30.18"></a><var>30.18</var>Notwithstanding the provisions of section 
         <statute_ref>32C.01, subdivision 7</statute_ref>, relating to conflict of <br/>
<a id="pl.30.19"></a><var>30.19</var>interest, a director or officer of the authority who is also a director, officer,
         or member of <br/>
<a id="pl.30.20"></a><var>30.20</var>a nonprofit corporation with which the authority enters into management contracts
         or lease <br/>
<a id="pl.30.21"></a><var>30.21</var>agreements may participate in and vote on the decision of the board as to the terms
         and <br/>
<a id="pl.30.22"></a><var>30.22</var>conditions of management contracts or lease agreements between the Minnesota nonprofit
         <br/>
<a id="pl.30.23"></a><var>30.23</var>corporation and the authority.<br/>
<br/>
<a id="bill.1.53.0"></a><a id="pl.30.24"></a><var>30.24</var>    Sec. 53. Minnesota Statutes 2016, section 32C.06, is amended to read:<br/>
<a id="pl.30.25"></a><var>30.25</var><b>32C.06 EXPIRATION.</b><br/>
<a id="pl.30.26"></a><var>30.26</var>If by August 1, 2017 2020, the authority board has not identified and acquired a site for <br/>
<a id="pl.30.27"></a><var>30.27</var>a facility, as provided in section 
         <statute_ref>32C.02, subdivision 2</statute_ref>, sections 
         <statute_ref>32C.01</statute_ref> to 
         <statute_ref>32C.05</statute_ref> and this <br/>
<a id="pl.30.28"></a><var>30.28</var>section are repealed on that date. The Department of Agriculture shall notify the
         revisor of <br/>
<a id="pl.30.29"></a><var>30.29</var>statutes if the repealer under this section becomes effective.<br/>
<br/>
<a id="bill.1.54.0"></a><a id="pl.31.1"></a><var>31.1</var>    Sec. 54. Minnesota Statutes 2016, section 34A.01, subdivision 1, is amended to read:<br/>
<a id="pl.31.2"></a><var>31.2</var>    Subdivision 1. <b>Applicability.</b> The definitions in this section and chapters 28, 28A, 29, <br/>
<a id="pl.31.3"></a><var>31.3</var>30, 31, 31A, 32 32D, and 34 apply to this chapter. The definitions in this section apply to <br/>
<a id="pl.31.4"></a><var>31.4</var>chapter 32 32D.<br/>
<br/>
<a id="bill.1.55.0"></a><a id="pl.31.5"></a><var>31.5</var>    Sec. 55. Minnesota Statutes 2016, section 41B.03, subdivision 2, is amended to read:<br/>
<a id="pl.31.6"></a><var>31.6</var>    Subd. 2. <b>Eligibility for restructured loan.</b> In addition to the eligibility requirements <br/>
<a id="pl.31.7"></a><var>31.7</var>of subdivision 1, a prospective borrower for a restructured loan must:<br/>
<a id="pl.31.8"></a><var>31.8</var>(1) have received at least 50 percent of average annual gross income from farming
         for <br/>
<a id="pl.31.9"></a><var>31.9</var>the past three years or, for homesteaded property, received at least 40 percent of
         average <br/>
<a id="pl.31.10"></a><var>31.10</var>gross income from farming in the past three years, and farming must be the principal
         <br/>
<a id="pl.31.11"></a><var>31.11</var>occupation of the borrower;<br/>
<a id="pl.31.12"></a><var>31.12</var>(2) have projected annual expenses, including operating expenses, family living, and
         <br/>
<a id="pl.31.13"></a><var>31.13</var>interest expenses after the restructuring, that do not exceed 95 percent of the borrower's
         <br/>
<a id="pl.31.14"></a><var>31.14</var>projected annual income considering prior production history and projected prices
         for farm <br/>
<a id="pl.31.15"></a><var>31.15</var>production, except that the authority may reduce the 95 percent requirement if it
         finds that <br/>
<a id="pl.31.16"></a><var>31.16</var>other significant factors in the loan application support the making of the loan;<br/>
<a id="pl.31.17"></a><var>31.17</var>(3) demonstrate substantial difficulty in meeting projected annual expenses without
         <br/>
<a id="pl.31.18"></a><var>31.18</var>restructuring the loan; and<br/>
<a id="pl.31.19"></a><var>31.19</var>(4) have a total net worth, including assets and liabilities of the borrower's spouse
         and <br/>
<a id="pl.31.20"></a><var>31.20</var>dependents, of less than $660,000 in 2004 $1,700,000 in 2017 and an amount in subsequent <br/>
<a id="pl.31.21"></a><var>31.21</var>years which is adjusted for inflation by multiplying that amount by the cumulative
         inflation <br/>
<a id="pl.31.22"></a><var>31.22</var>rate as determined by the United States All-Items Consumer Price Index.<br/>
<br/>
<a id="bill.1.56.0"></a><a id="pl.31.23"></a><var>31.23</var>    Sec. 56. Minnesota Statutes 2016, section 41B.03, subdivision 3, is amended to read:<br/>
<a id="pl.31.24"></a><var>31.24</var>    Subd. 3. <b>Eligibility for beginning farmer loans.</b> (a) In addition to the requirements <br/>
<a id="pl.31.25"></a><var>31.25</var>under subdivision 1, a prospective borrower for a beginning farm loan in which the
         authority <br/>
<a id="pl.31.26"></a><var>31.26</var>holds an interest, must:<br/>
<a id="pl.31.27"></a><var>31.27</var>(1) have sufficient education, training, or experience in the type of farming for
         which <br/>
<a id="pl.31.28"></a><var>31.28</var>the loan is desired;<br/>
<a id="pl.31.29"></a><var>31.29</var>(2) have a total net worth, including assets and liabilities of the borrower's spouse
         and <br/>
<a id="pl.31.30"></a><var>31.30</var>dependents, of less than $350,000 in 2004 $800,000 in 2017 and an amount in subsequent <br/>
<a id="pl.32.1"></a><var>32.1</var>years which is adjusted for inflation by multiplying that amount by the cumulative
         inflation <br/>
<a id="pl.32.2"></a><var>32.2</var>rate as determined by the United States All-Items Consumer Price Index;<br/>
<a id="pl.32.3"></a><var>32.3</var>(3) demonstrate a need for the loan;<br/>
<a id="pl.32.4"></a><var>32.4</var>(4) demonstrate an ability to repay the loan;<br/>
<a id="pl.32.5"></a><var>32.5</var>(5) certify that the agricultural land to be purchased will be used by the borrower
         for <br/>
<a id="pl.32.6"></a><var>32.6</var>agricultural purposes;<br/>
<a id="pl.32.7"></a><var>32.7</var>(6) certify that farming will be the principal occupation of the borrower;<br/>
<a id="pl.32.8"></a><var>32.8</var>(7) agree to participate in a farm management program approved by the commissioner
         <br/>
<a id="pl.32.9"></a><var>32.9</var>of agriculture for at least the first three years of the loan, if an approved program
         is available <br/>
<a id="pl.32.10"></a><var>32.10</var>within 45 miles from the borrower's residence. The commissioner may waive this requirement
         <br/>
<a id="pl.32.11"></a><var>32.11</var>for any of the programs administered by the authority if the participant requests
         a waiver <br/>
<a id="pl.32.12"></a><var>32.12</var>and has either a four-year degree in an agricultural program or certification as an
         adult farm <br/>
<a id="pl.32.13"></a><var>32.13</var>management instructor; and<br/>
<a id="pl.32.14"></a><var>32.14</var>(8) agree to file an approved soil and water conservation plan with the Natural Resources
         <br/>
<a id="pl.32.15"></a><var>32.15</var>Conservation Service office in the county where the land is located.<br/>
<a id="pl.32.16"></a><var>32.16</var>(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower
         is <br/>
<a id="pl.32.17"></a><var>32.17</var>subject to penalty as determined by the authority.<br/>
<br/>
<a id="bill.1.57.0"></a><a id="pl.32.18"></a><var>32.18</var>    Sec. 57. Minnesota Statutes 2016, section 41B.043, subdivision 5, is amended to read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 5. <b>Total net worth limit.</b> A prospective borrower for an agricultural improvement <br/>
<a id="pl.32.20"></a><var>32.20</var>loan in which the authority holds an interest must have a total net worth, including
         assets <br/>
<a id="pl.32.21"></a><var>32.21</var>and liabilities of the borrower's spouse and dependents, of less than $350,000 in 2004 <br/>
<a id="pl.32.22"></a><var>32.22</var>$800,000 in 2017 and an amount in subsequent years which is adjusted for inflation by <br/>
<a id="pl.32.23"></a><var>32.23</var>multiplying that amount by the cumulative inflation rate as determined by the United
         States <br/>
<a id="pl.32.24"></a><var>32.24</var>All-Items Consumer Price Index.<br/>
<br/>
<a id="bill.1.58.0"></a><a id="pl.32.25"></a><var>32.25</var>    Sec. 58. Minnesota Statutes 2016, section 41B.045, subdivision 2, is amended to read:<br/>
<a id="pl.32.26"></a><var>32.26</var>    Subd. 2. <b>Loan participation.</b> The authority may participate in a livestock expansion <br/>
<a id="pl.32.27"></a><var>32.27</var>loan with an eligible lender to a livestock farmer who meets the requirements of section
         <br/>
<statute_ref><a id="pl.32.28"></a><var>32.28</var>41B.03, subdivision 1
         </statute_ref>, clauses (1) and (2), and who are actively engaged in a livestock <br/>
<a id="pl.32.29"></a><var>32.29</var>operation. A prospective borrower must have a total net worth, including assets and
         liabilities <br/>
<a id="pl.32.30"></a><var>32.30</var>of the borrower's spouse and dependents, of less than $660,000 in 2004 $1,700,000 in 2017 <br/>
<a id="pl.32.31"></a><var>32.31</var>and an amount in subsequent years which is adjusted for inflation by multiplying that
         amount <br/>
<a id="pl.33.1"></a><var>33.1</var>by the cumulative inflation rate as determined by the United States All-Items Consumer
         <br/>
<a id="pl.33.2"></a><var>33.2</var>Price Index.<br/>
<a id="pl.33.3"></a><var>33.3</var>Participation is limited to 45 percent of the principal amount of the loan or $525,000,
         <br/>
<a id="pl.33.4"></a><var>33.4</var>whichever is less. The interest rates and repayment terms of the authority's participation
         <br/>
<a id="pl.33.5"></a><var>33.5</var>interest may be different from the interest rates and repayment terms of the lender's
         retained <br/>
<a id="pl.33.6"></a><var>33.6</var>portion of the loan.<br/>
<br/>
<a id="bill.1.59.0"></a><a id="pl.33.7"></a><var>33.7</var>    Sec. 59. Minnesota Statutes 2016, section 41C.02, subdivision 12, is amended to read:<br/>
<a id="pl.33.8"></a><var>33.8</var>    Subd. 12. <b>Low or moderate net worth.</b> "Low or moderate net worth" means:<br/>
<a id="pl.33.9"></a><var>33.9</var>(1) for an individual, an aggregate net worth of the individual and the individual's
         spouse <br/>
<a id="pl.33.10"></a><var>33.10</var>and minor children of less than $350,000 in 2004 $800,000 in 2017 and an amount in <br/>
<a id="pl.33.11"></a><var>33.11</var>subsequent years which is adjusted for inflation by multiplying that amount by the
         cumulative <br/>
<a id="pl.33.12"></a><var>33.12</var>inflation rate as determined by the United States All-Items Consumer Price Index;
         or<br/>
<a id="pl.33.13"></a><var>33.13</var>(2) for a partnership, an aggregate net worth of all partners, including each partner's
         net <br/>
<a id="pl.33.14"></a><var>33.14</var>capital in the partnership, and each partner's spouse and minor children of less than
         twice <br/>
<a id="pl.33.15"></a><var>33.15</var>the amount set for an individual in clause (1). However, the aggregate net worth of
         each <br/>
<a id="pl.33.16"></a><var>33.16</var>partner and that partner's spouse and minor children may not exceed the amount set
         for an <br/>
<a id="pl.33.17"></a><var>33.17</var>individual in clause (1).<br/>
<br/>
<a id="bill.1.60.0"></a><a id="pl.33.18"></a><var>33.18</var>    Sec. 60. Minnesota Statutes 2016, section 116V.01, subdivision 1, is amended to read:<br/>
<a id="pl.33.19"></a><var>33.19</var>    Subdivision 1. <b>Establishment.</b> The Agricultural Utilization Research Institute is <br/>
<a id="pl.33.20"></a><var>33.20</var>established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue
         Code <br/>
<a id="pl.33.21"></a><var>33.21</var>of 1986, as amended. The Agricultural Utilization Research Institute shall conduct
         onsite <br/>
<a id="pl.33.22"></a><var>33.22</var>and applied research, promote the establishment of new products and product uses and
         the <br/>
<a id="pl.33.23"></a><var>33.23</var>expansion of existing markets for the state's agricultural commodities and products,
         including <br/>
<a id="pl.33.24"></a><var>33.24</var>direct financial and technical assistance for Minnesota entrepreneurs. The institute must <br/>
<a id="pl.33.25"></a><var>33.25</var>establish or maintain facilities and work with private and public entities to leverage
         the <br/>
<a id="pl.33.26"></a><var>33.26</var>resources available to achieve maximum results for Minnesota agriculture.<br/>
<br/>
<a id="bill.1.61.0"></a><a id="pl.33.27"></a><var>33.27</var>    Sec. 61. Minnesota Statutes 2016, section 116V.01, subdivision 2, is amended to read:<br/>
<a id="pl.33.28"></a><var>33.28</var>    Subd. 2. <b>Board of directors.</b> The board of directors of the Agricultural Utilization <br/>
<a id="pl.33.29"></a><var>33.29</var>Research Institute is comprised of:<br/>
<a id="pl.33.30"></a><var>33.30</var>(1) the chairs of the senate and the house of representatives standing committees
         with <br/>
<a id="pl.33.31"></a><var>33.31</var>jurisdiction over agriculture finance or the chair's designee;<br/>
<a id="pl.34.1"></a><var>34.1</var>(2) two representatives of statewide farm organizations;<br/>
<a id="pl.34.2"></a><var>34.2</var>(3) two representatives of agribusiness; and<br/>
<a id="pl.34.3"></a><var>34.3</var>(4) three representatives of the commodity promotion councils; and<br/>
<a id="pl.34.4"></a><var>34.4</var>(5) two at-large representatives.<br/>
<br/>
<a id="bill.1.62.0"></a><a id="pl.34.5"></a><var>34.5</var>    Sec. 62. Minnesota Statutes 2016, section 116V.01, subdivision 3, is amended to read:<br/>
<a id="pl.34.6"></a><var>34.6</var>    Subd. 3. <b>Duties.</b> (a) The Agricultural Utilization Research Institute shall:<br/>
<a id="pl.34.7"></a><var>34.7</var>    (1) identify development opportunities for agricultural products;<br/>
<a id="pl.34.8"></a><var>34.8</var>    (2) implement a program that identifies techniques to meet those opportunities;<br/>
<a id="pl.34.9"></a><var>34.9</var>    (3) monitor and coordinate research among the public and private organizations and
         <br/>
<a id="pl.34.10"></a><var>34.10</var>individuals specifically addressing procedures to transfer new technology to businesses,
         <br/>
<a id="pl.34.11"></a><var>34.11</var>farmers, and individuals;<br/>
<a id="pl.34.12"></a><var>34.12</var>    (4) provide research grants to public and private educational institutions and other <br/>
<a id="pl.34.13"></a><var>34.13</var>organizations that are undertaking basic and applied research to promote the development
         <br/>
<a id="pl.34.14"></a><var>34.14</var>of emerging agricultural industries;<br/>
<a id="pl.34.15"></a><var>34.15</var>    (5) assist organizations and individuals with market analysis and product marketing <br/>
<a id="pl.34.16"></a><var>34.16</var>implementations;<br/>
<a id="pl.34.17"></a><var>34.17</var>    (6) (5) to the extent possible earn and receive revenue from contracts, patents, licenses,
         <br/>
<a id="pl.34.18"></a><var>34.18</var>royalties, grants, fees-for-service, and memberships;<br/>
<a id="pl.34.19"></a><var>34.19</var>    (7) (6) work with the Department of Agriculture, the United States Department of <br/>
<a id="pl.34.20"></a><var>34.20</var>Agriculture, the Department of Employment and Economic Development, and other agencies
         <br/>
<a id="pl.34.21"></a><var>34.21</var>to maximize marketing opportunities locally, nationally, and internationally; and<br/>
<a id="pl.34.22"></a><var>34.22</var>    (8) (7) leverage available funds from federal, state, and private sources to develop new
         <br/>
<a id="pl.34.23"></a><var>34.23</var>markets and value added opportunities for Minnesota agricultural products.<br/>
<a id="pl.34.24"></a><var>34.24</var>    (b) The Agricultural Utilization Research Institute board of directors shall have
         the sole <br/>
<a id="pl.34.25"></a><var>34.25</var>approval authority for establishing agricultural utilization research priorities,
         requests for <br/>
<a id="pl.34.26"></a><var>34.26</var>proposals to meet those priorities, awarding of grants, hiring and direction of personnel,
         <br/>
<a id="pl.34.27"></a><var>34.27</var>and other expenditures of funds consistent with the adopted and approved mission and
         goals <br/>
<a id="pl.34.28"></a><var>34.28</var>of the Agricultural Utilization Research Institute. The actions and expenditures of
         the <br/>
<a id="pl.34.29"></a><var>34.29</var>Agricultural Utilization Research Institute are subject to audit. The institute shall
         annually <br/>
<a id="pl.34.30"></a><var>34.30</var>report by February 1 to the senate and house of representatives standing committees
         with <br/>
<a id="pl.34.31"></a><var>34.31</var>jurisdiction over agricultural policy and funding. The report must list projects initiated,
         <br/>
<a id="pl.35.1"></a><var>35.1</var>progress on projects, and financial information relating to expenditures, income from
         other <br/>
<a id="pl.35.2"></a><var>35.2</var>sources, and other information to allow the committees to evaluate the effectiveness
         of the <br/>
<a id="pl.35.3"></a><var>35.3</var>institute's activities.<br/>
<a id="pl.35.4"></a><var>35.4</var>    (c) The Agricultural Utilization Research Institute shall convene a Renewable Energy
         <br/>
<a id="pl.35.5"></a><var>35.5</var>Roundtable, the purpose of which shall be to further the state's leadership on bioenergy
         <br/>
<a id="pl.35.6"></a><var>35.6</var>issues.<br/>
<a id="pl.35.7"></a><var>35.7</var>    (i) The Renewable Energy Roundtable shall consist of one representative appointed
         by <br/>
<a id="pl.35.8"></a><var>35.8</var>the commissioner of the Minnesota Department of Agriculture, one appointed by the
         <br/>
<a id="pl.35.9"></a><var>35.9</var>commissioner of the Minnesota Department of Commerce, one appointed by the chancellor
         <br/>
<a id="pl.35.10"></a><var>35.10</var>of the Minnesota State Colleges and Universities, and one appointed by the president
         of the <br/>
<a id="pl.35.11"></a><var>35.11</var>University of Minnesota. The appointees must have expertise relevant to bioenergy.<br/>
<a id="pl.35.12"></a><var>35.12</var>    (ii) The board shall oversee the activities and shall provide staff to assist the
         Renewable <br/>
<a id="pl.35.13"></a><var>35.13</var>Energy Roundtable.<br/>
<a id="pl.35.14"></a><var>35.14</var>    (iii) The Renewable Energy Roundtable will engage professionals and experts from <br/>
<a id="pl.35.15"></a><var>35.15</var>private, government, academic, and nonprofit entities across the state to identify
         bioenergy <br/>
<a id="pl.35.16"></a><var>35.16</var>opportunities and collaborate with a broad group of interested parties to identify
         future <br/>
<a id="pl.35.17"></a><var>35.17</var>alternative courses of action the state can take to sustain a long-term competitive
         position <br/>
<a id="pl.35.18"></a><var>35.18</var>in renewable energy through the year 2025. The Renewable Energy Roundtable will consult,
         <br/>
<a id="pl.35.19"></a><var>35.19</var>advise, and review projects and initiatives funded by the state as directed by the
         <br/>
<a id="pl.35.20"></a><var>35.20</var>administration and the legislature.<br/>
<br/>
<a id="bill.1.63.0"></a><a id="pl.35.21"></a><var>35.21</var>    Sec. 63. Minnesota Statutes 2016, section 116V.01, subdivision 4, is amended to read:<br/>
<a id="pl.35.22"></a><var>35.22</var>    Subd. 4. <b>Staff.</b> The board of directors shall hire staff an executive director for the <br/>
<a id="pl.35.23"></a><var>35.23</var>Agricultural Utilization Research Institute. Persons employed by the Agricultural
         Utilization <br/>
<a id="pl.35.24"></a><var>35.24</var>Research Institute are not state employees and may participate in state retirement,
         deferred <br/>
<a id="pl.35.25"></a><var>35.25</var>compensation, insurance, or other plans that apply to state employees generally and
         are <br/>
<a id="pl.35.26"></a><var>35.26</var>subject to regulation by the state Campaign Finance and Public Disclosure Board.<br/>
<br/>
<a id="bill.1.64.0"></a><a id="pl.35.27"></a><var>35.27</var>    Sec. 64. Minnesota Statutes 2016, section 116V.01, subdivision 7, is amended to read:<br/>
<a id="pl.35.28"></a><var>35.28</var>    Subd. 7. <b>Bylaws.</b> The board of directors shall adopt bylaws necessary for the conduct <br/>
<a id="pl.35.29"></a><var>35.29</var>of the business of the institute consistent with this section. The corporation must
         publish <br/>
<a id="pl.35.30"></a><var>35.30</var>bylaws and amendments to the bylaws in the State Register on the board's Web site.<br/>
<br/>
<a id="bill.1.65.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 65. Minnesota Statutes 2016, section 116V.01, subdivision 10, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var>    Subd. 10. <b>Meetings.</b> The board of directors shall meet at least twice each year and may <br/>
<a id="pl.36.3"></a><var>36.3</var>hold additional meetings upon giving notice in accordance with the bylaws of the institute.
         <br/>
<a id="pl.36.4"></a><var>36.4</var>Board meetings are subject to chapter 13D, except section 
         <statute_ref>13D.01, subdivision 6</statute_ref>, as it <br/>
<a id="pl.36.5"></a><var>36.5</var>pertains to financial information, business plans, income and expense projections,
         customer <br/>
<a id="pl.36.6"></a><var>36.6</var>lists, market and feasibility studies, and trade secret information as defined by
         section 
         <statute_ref>13.37, <br/>
<a id="pl.36.7"></a><var>36.7</var>subdivision 1
         </statute_ref>, paragraph (b). For the purposes of section 13D.015, the board of directors is <br/>
<a id="pl.36.8"></a><var>36.8</var>a state board.<br/>
<br/>
<a id="bill.1.66.0"></a><a id="pl.36.9"></a><var>36.9</var>    Sec. 66. Minnesota Statutes 2016, section 116V.01, subdivision 11, is amended to read:<br/>
<a id="pl.36.10"></a><var>36.10</var>    Subd. 11. <b>Conflict of interest.</b> A director, employee, or officer of the institute may not <br/>
<a id="pl.36.11"></a><var>36.11</var>participate in advocate for or vote on a decision of the board relating to an organization in <br/>
<a id="pl.36.12"></a><var>36.12</var>which the director, employee, or officer has either a direct or indirect financial interest.<br/>
<br/>
<a id="bill.1.67.0"></a><a id="pl.36.13"></a><var>36.13</var>    Sec. 67. Minnesota Statutes 2016, section 116V.01, subdivision 13, is amended to read:<br/>
<a id="pl.36.14"></a><var>36.14</var>    Subd. 13. <b>Funds.</b> The institute may accept and use gifts, grants, or contributions from <br/>
<a id="pl.36.15"></a><var>36.15</var>any source. Unless otherwise restricted by the terms of a gift or bequest, the board
         may sell, <br/>
<a id="pl.36.16"></a><var>36.16</var>exchange, or otherwise dispose of and invest or reinvest the money, securities, or
         other <br/>
<a id="pl.36.17"></a><var>36.17</var>property given or bequested to it. The principal of these funds, the income from them,
         and <br/>
<a id="pl.36.18"></a><var>36.18</var>all other revenues received by it from any nonstate source must be placed in the depositories <br/>
<a id="pl.36.19"></a><var>36.19</var>the board determines and is are subject to expenditure for the board's purposes. Receipts <br/>
<a id="pl.36.20"></a><var>36.20</var>and expenditures of more than $25,000 $50,000 must be approved by the full board.<br/>
<br/>
<a id="bill.1.68.0"></a><a id="pl.36.21"></a><var>36.21</var>    Sec. 68. Minnesota Statutes 2016, section 116V.01, subdivision 14, is amended to read:<br/>
<a id="pl.36.22"></a><var>36.22</var>    Subd. 14. <b>Accounts; audits.</b> The institute may establish funds and accounts that it finds <br/>
<a id="pl.36.23"></a><var>36.23</var>convenient. The board shall provide for and pay the cost of an independent annual audit of <br/>
<a id="pl.36.24"></a><var>36.24</var>its official books and records by the legislative auditor subject to sections 
         <statute_ref>3.971</statute_ref> and 
         <statute_ref>3.972</statute_ref>. <br/>
<a id="pl.36.25"></a><var>36.25</var>In addition, the board shall provide and pay for the cost of an annual financial audit
         of its <br/>
<a id="pl.36.26"></a><var>36.26</var>official books and records by an independent audit firm. A copy of this the annual financial <br/>
<a id="pl.36.27"></a><var>36.27</var>audit shall be filed with the secretary of state Office of the Attorney General, Charities <br/>
<a id="pl.36.28"></a><var>36.28</var>Division.<br/>
<a id="pl.36.29"></a><var>36.29</var>For purposes of this section, "institute" means the Agricultural Utilization Research
         <br/>
<a id="pl.36.30"></a><var>36.30</var>Institute established under this section and "board of directors" means the board
         of directors <br/>
<a id="pl.36.31"></a><var>36.31</var>of the Agricultural Utilization Research Institute.<br/>
<br/>
<a id="bill.1.69.0"></a><a id="pl.37.1"></a><var>37.1</var>    Sec. 69. Minnesota Statutes 2016, section 223.17, subdivision 8, is amended to read:<br/>
<a id="pl.37.2"></a><var>37.2</var>    Subd. 8. <b>Bond disbursement.</b> (a) The bond required under subdivision 4 shall provide <br/>
<a id="pl.37.3"></a><var>37.3</var>for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand,
         <br/>
<a id="pl.37.4"></a><var>37.4</var>the purchase price of grain sold to the grain buyer in the manner provided by subdivision
         <br/>
<a id="pl.37.5"></a><var>37.5</var>5, including loss caused by failure to pay within the time required. The bond shall
         be <br/>
<a id="pl.37.6"></a><var>37.6</var>conditioned upon the grain buyer being duly licensed as provided herein.<br/>
<a id="pl.37.7"></a><var>37.7</var>(b) The commissioner shall promptly determine the validity of all claims filed and
         notify <br/>
<a id="pl.37.8"></a><var>37.8</var>the claimants of the determination. An aggrieved party may appeal the commissioner's
         <br/>
<a id="pl.37.9"></a><var>37.9</var>determination by requesting, within 15 days, that the commissioner initiate a contested
         case <br/>
<a id="pl.37.10"></a><var>37.10</var>proceeding. In the absence of such a request, or following the issuance of a final
         order in a <br/>
<a id="pl.37.11"></a><var>37.11</var>contested case, the surety company shall issue payment promptly to those claimants
         entitled <br/>
<a id="pl.37.12"></a><var>37.12</var>to payment. The commissioner may apply to the district court for an order appointing
         a <br/>
<a id="pl.37.13"></a><var>37.13</var>trustee or receiver to manage and supervise the operations of the grain buyer in default.
         The <br/>
<a id="pl.37.14"></a><var>37.14</var>commissioner may participate in any resulting court proceeding as an interested party.<br/>
<a id="pl.37.15"></a><var>37.15</var>(c) If a grain buyer has become liable to more than one producer by reason of breaches
         <br/>
<a id="pl.37.16"></a><var>37.16</var>of the conditions of the bond and the amount of the bond is insufficient to pay the
         entire <br/>
<a id="pl.37.17"></a><var>37.17</var>liability to all producers entitled to the protection of the bond, the proceeds of
         the bond shall <br/>
<a id="pl.37.18"></a><var>37.18</var>be apportioned among the bona fide claimants.<br/>
<a id="pl.37.19"></a><var>37.19</var>(d) The bond shall not be cumulative from one licensing period to the next. The maximum
         <br/>
<a id="pl.37.20"></a><var>37.20</var>liability of the bond shall be its face value for the licensing period.<br/>
<a id="pl.37.21"></a><var>37.21</var>(e) The bond disbursement shall occur 200 days from the date the commissioner publishes
         <br/>
<a id="pl.37.22"></a><var>37.22</var>a public notice of a claim. At the end of this time period, the commissioner shall
         initiate <br/>
<a id="pl.37.23"></a><var>37.23</var>bond payments on all valid claims received by the commissioner.<br/>
<br/>
<a id="bill.1.70.0"></a><a id="pl.37.24"></a><var>37.24</var>    Sec. 70. Minnesota Statutes 2016, section 232.22, subdivision 7, is amended to read:<br/>
<a id="pl.37.25"></a><var>37.25</var>    Subd. 7. <b>Bond disbursement.</b> (a) The bond of a public grain warehouse operator must <br/>
<a id="pl.37.26"></a><var>37.26</var>be conditioned that the public grain warehouse operator issuing a grain warehouse
         receipt <br/>
<a id="pl.37.27"></a><var>37.27</var>is liable to the depositor for the delivery of the kind, grade and net quantity of
         grain called <br/>
<a id="pl.37.28"></a><var>37.28</var>for by the receipt.<br/>
<a id="pl.37.29"></a><var>37.29</var>(b) Upon notification of default, the commissioner shall determine the validity of
         all <br/>
<a id="pl.37.30"></a><var>37.30</var>claims and notify all parties having filed claims. Any aggrieved party may appeal
         the <br/>
<a id="pl.37.31"></a><var>37.31</var>commissioner's determination by requesting, within 15 days, that the commissioner
         initiate <br/>
<a id="pl.37.32"></a><var>37.32</var>a contested case proceeding. In the absence of such a request, or following the issuance
         of <br/>
<a id="pl.37.33"></a><var>37.33</var>a final order in a contested case, the surety company shall issue payment to those
         claimants <br/>
<a id="pl.38.1"></a><var>38.1</var>entitled to payment. If the commissioner determines it is necessary, the commissioner
         may <br/>
<a id="pl.38.2"></a><var>38.2</var>apply to the district court for an order appointing a trustee or receiver to manage
         and supervise <br/>
<a id="pl.38.3"></a><var>38.3</var>the operations of the grain warehouse operator in default. The commissioner may participate
         <br/>
<a id="pl.38.4"></a><var>38.4</var>in any resulting court proceeding as an interested party.<br/>
<a id="pl.38.5"></a><var>38.5</var>(c) For the purpose of determining the amount of bond disbursement against all valid
         <br/>
<a id="pl.38.6"></a><var>38.6</var>claims under a condition one bond, all grain owned or stored in the public grain warehouse
         <br/>
<a id="pl.38.7"></a><var>38.7</var>shall be sold and the combined proceeds deposited in a special fund. Payment shall
         be made <br/>
<a id="pl.38.8"></a><var>38.8</var>from the special fund satisfying the valid claims of grain warehouse receipt holders.<br/>
<a id="pl.38.9"></a><var>38.9</var>(d) If a public grain warehouse operator has become liable to more than one depositor
         <br/>
<a id="pl.38.10"></a><var>38.10</var>or producer by reason of breaches of the conditions of the bond and the amount of
         the bond <br/>
<a id="pl.38.11"></a><var>38.11</var>is insufficient to pay, beyond the proceeds of the special fund, the entire liability
         to all valid <br/>
<a id="pl.38.12"></a><var>38.12</var>claimants, the proceeds of the bond and special fund shall be apportioned among the
         valid <br/>
<a id="pl.38.13"></a><var>38.13</var>claimants on a pro rata basis.<br/>
<a id="pl.38.14"></a><var>38.14</var>(e) A bond is not cumulative from one licensing period to the next. The maximum <br/>
<a id="pl.38.15"></a><var>38.15</var>liability of the bond shall be its face value for the licensing period.<br/>
<a id="pl.38.16"></a><var>38.16</var>(f) The bond disbursement shall occur 200 days from the date the commissioner publishes
         <br/>
<a id="pl.38.17"></a><var>38.17</var>a public notice of a claim. At the end of this time period, the commissioner shall
         initiate <br/>
<a id="pl.38.18"></a><var>38.18</var>bond payments on all valid claims received by the department.<br/>
<br/>
<a id="bill.1.71.0"></a><a id="pl.38.19"></a><var>38.19</var>    Sec. 71. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.38.20"></a><var>38.20</var>The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision
         <br/>
<a id="pl.38.21"></a><var>38.21</var>9a, to Minnesota Statutes, section 18B.01, subdivision 9d, and correct any cross-references
         <br/>
<a id="pl.38.22"></a><var>38.22</var>related to the renumbering.<br/>
<br/>
<a id="bill.1.72.0"></a><a id="pl.38.23"></a><var>38.23</var>    Sec. 72. <b>REPEALER.</b><br/>
<a id="pl.38.24"></a><var>38.24</var>Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, and 22a; 18B.285;
         <br/>
<a id="pl.38.25"></a><var>38.25</var>25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15; and 41D.01,
         subdivision <br/>
<a id="pl.38.26"></a><var>38.26</var>4, are repealed.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.38.29"></a><var>38.29</var>    Section 1. Minnesota Statutes 2016, section 13.6435, subdivision 8, is amended to read:<br/>
<a id="pl.39.1"></a><var>39.1</var>    Subd. 8. <b>Dairy products.</b> Financial and production information obtained by the <br/>
<a id="pl.39.2"></a><var>39.2</var>commissioner of agriculture to administer chapter 32 32D are classified under section 
         <statute_ref>32.71, <br/>
<a id="pl.39.3"></a><var>39.3</var>subdivision 2
</statute_ref> 32D.25, subdivision 2.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.39.4"></a><var>39.4</var>    Sec. 2. <b>[32D.01] DEFINITIONS.</b><br/>
<a id="pl.39.5"></a><var>39.5</var>    Subdivision 1. <b>Scope.</b> The definitions in this section apply to this chapter.<br/>
<a id="pl.39.6"></a><var>39.6</var>    Subd. 2. <b>Adulterated.</b> "Adulterated" means an item is covered by section 34A.02.<br/>
<a id="pl.39.7"></a><var>39.7</var>    Subd. 3. <b>Cheese.</b> "Cheese" includes all varieties of cheese, cheese spreads, cheese foods, <br/>
<a id="pl.39.8"></a><var>39.8</var>cheese compounds, or processed cheese made or manufactured in whole or in part from
         <br/>
<a id="pl.39.9"></a><var>39.9</var>milk.<br/>
<a id="pl.39.10"></a><var>39.10</var>    Subd. 4. <b>Commissioner.</b> "Commissioner" means the commissioner of agriculture.<br/>
<a id="pl.39.11"></a><var>39.11</var>    Subd. 5. <b>Dairy farm.</b> "Dairy farm" means a place or premises where one or more lactating <br/>
<a id="pl.39.12"></a><var>39.12</var>animals, including cows, goats, sheep, water buffalo, camels, or other hoofed mammals,
         <br/>
<a id="pl.39.13"></a><var>39.13</var>are kept, and from which all or a portion of the milk produced at the place or premises
         is <br/>
<a id="pl.39.14"></a><var>39.14</var>delivered, sold, or offered for sale.<br/>
<a id="pl.39.15"></a><var>39.15</var>    Subd. 6. <b>Dairy plant.</b> "Dairy plant" means any place where a dairy product is <br/>
<a id="pl.39.16"></a><var>39.16</var>manufactured, processed, or handled and includes milk-receiving stations, creameries,
         <br/>
<a id="pl.39.17"></a><var>39.17</var>cheese factories, condenseries, milk plants, transfer stations, and marketing organizations
         <br/>
<a id="pl.39.18"></a><var>39.18</var>that purchase milk and cream directly from producers for resale and other establishments,
         <br/>
<a id="pl.39.19"></a><var>39.19</var>as those terms are used in this chapter and chapters 17, 27, and 31; but does not
         include any <br/>
<a id="pl.39.20"></a><var>39.20</var>place where dairy products are not processed but sold at whole or retail only.<br/>
<a id="pl.39.21"></a><var>39.21</var>    Subd. 7. <b>Dairy product.</b> "Dairy product" means milk as defined by Code of Federal <br/>
<a id="pl.39.22"></a><var>39.22</var>Regulations, title 21, cream, any product or by-product of either, or any commodity
         among <br/>
<a id="pl.39.23"></a><var>39.23</var>the principal constituents or ingredients of which is one or a combination of two
         or more <br/>
<a id="pl.39.24"></a><var>39.24</var>of them, as determined by standards, grades, or rules adopted by the commissioner.<br/>
<a id="pl.39.25"></a><var>39.25</var>    Subd. 8. <b>Fluid milk products.</b> "Fluid milk products" means yogurt, cream, sour cream, <br/>
<a id="pl.39.26"></a><var>39.26</var>half and half, reconstituted half and half, concentrated milk, concentrated milk products,
         <br/>
<a id="pl.39.27"></a><var>39.27</var>skim milk, nonfat milk, chocolate flavored milk, chocolate flavored dairy drink, chocolate
         <br/>
<a id="pl.39.28"></a><var>39.28</var>flavored reconstituted milk, chocolate flavored reconstituted dairy drink, buttermilk,
         cultured <br/>
<a id="pl.39.29"></a><var>39.29</var>buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted
         <br/>
<a id="pl.39.30"></a><var>39.30</var>cream, reconstituted skim milk, homogenized milk, and any other fluid milk product
         made <br/>
<a id="pl.39.31"></a><var>39.31</var>by the addition of any substance to milk or to any of the fluid milk products enumerated
         <br/>
<a id="pl.39.32"></a><var>39.32</var>under this subdivision or by rule adopted by the commissioner.<br/>
<a id="pl.40.1"></a><var>40.1</var>    Subd. 9. <b>Goat milk.</b> "Goat milk" means a whole, fresh, clean lacteal secretion free from <br/>
<a id="pl.40.2"></a><var>40.2</var>colostrum, obtained by the complete milking of one or more healthy goats.<br/>
<a id="pl.40.3"></a><var>40.3</var>    Subd. 10. <b>Milk.</b> "Milk" means the normal lacteal secretion, practically free of colostrum, <br/>
<a id="pl.40.4"></a><var>40.4</var>obtained by the milking of one or more healthy hoofed mammals. Hoofed mammals include
         <br/>
<a id="pl.40.5"></a><var>40.5</var>but are not limited to cattle, water buffalo, sheep, goats, yaks, and camels.<br/>
<a id="pl.40.6"></a><var>40.6</var>    Subd. 11. <b>Milk for manufacturing purposes.</b> "Milk for manufacturing purposes" means <br/>
<a id="pl.40.7"></a><var>40.7</var>milk produced for processing and manufacturing into products for human consumption
         but <br/>
<a id="pl.40.8"></a><var>40.8</var>not subject to Grade A or comparable requirements.<br/>
<a id="pl.40.9"></a><var>40.9</var>    Subd. 12. <b>Milk-receiving station.</b> "Milk-receiving station" means a dairy plant where <br/>
<a id="pl.40.10"></a><var>40.10</var>raw milk for pasteurization or for manufacture is received, handled, or prepared for
         <br/>
<a id="pl.40.11"></a><var>40.11</var>processing or for resale as unpasteurized milk or fluid milk products.<br/>
<a id="pl.40.12"></a><var>40.12</var>    Subd. 13. <b>Minnesota farmstead cheese.</b> "Minnesota farmstead cheese" means cheese <br/>
<a id="pl.40.13"></a><var>40.13</var>manufactured in Minnesota on the same farm that the milk used in its manufacturing
         is <br/>
<a id="pl.40.14"></a><var>40.14</var>produced.<br/>
<a id="pl.40.15"></a><var>40.15</var>    Subd. 14. <b>Misbranded or misbranding.</b> "Misbranded" or "misbranding" means an item <br/>
<a id="pl.40.16"></a><var>40.16</var>is covered by section 34A.03.<br/>
<a id="pl.40.17"></a><var>40.17</var>    Subd. 15. <b>Pasteurization or pasteurized.</b> (a) "Pasteurization," "pasteurized," and similar <br/>
<a id="pl.40.18"></a><var>40.18</var>terms mean:<br/>
<a id="pl.40.19"></a><var>40.19</var>(1) the process of heating every particle of milk or dairy product in properly operated
         <br/>
<a id="pl.40.20"></a><var>40.20</var>equipment approved by the commissioner to a temperature of at least 145 degrees Fahrenheit
         <br/>
<a id="pl.40.21"></a><var>40.21</var>and holding the temperature for at least 30 minutes;<br/>
<a id="pl.40.22"></a><var>40.22</var>(2) the process of heating every particle of milk or dairy product in properly operated
         <br/>
<a id="pl.40.23"></a><var>40.23</var>equipment approved by the commissioner to a temperature of at least 161 degrees Fahrenheit
         <br/>
<a id="pl.40.24"></a><var>40.24</var>and holding the temperature for at least 15 seconds; or<br/>
<a id="pl.40.25"></a><var>40.25</var>(3) the process of heating every particle of milk or dairy product in properly operated
         <br/>
<a id="pl.40.26"></a><var>40.26</var>equipment approved by the commissioner to the temperatures and holding for the times
         as <br/>
<a id="pl.40.27"></a><var>40.27</var>the commissioner may prescribe by rule, containing standards more stringent than those
         <br/>
<a id="pl.40.28"></a><var>40.28</var>imposed by this subdivision.<br/>
<a id="pl.40.29"></a><var>40.29</var>(b) Nothing in this subdivision shall be construed as excluding any other process
         that <br/>
<a id="pl.40.30"></a><var>40.30</var>has been demonstrated to be equally efficient and is approved by the commissioner.<br/>
<a id="pl.40.31"></a><var>40.31</var>    Subd. 16. <b>Recombinant bovine growth hormone or rBGH.</b> "Recombinant bovine <br/>
<a id="pl.40.32"></a><var>40.32</var>growth hormone" or "rBGH" means a growth hormone intended for use in bovine animals
         <br/>
<a id="pl.41.1"></a><var>41.1</var>that has been produced through recombinant DNA techniques, described alternately as
         <br/>
<a id="pl.41.2"></a><var>41.2</var>recombinant bovine somatotropin or rBST.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.41.3"></a><var>41.3</var>    Sec. 3. <b>[32D.02] INSPECTION AUTHORITY AND DUTIES.</b><br/>
<a id="pl.41.4"></a><var>41.4</var>    Subdivision 1. <b>Enforcement.</b> The commissioner is charged with the enforcement of this <br/>
<a id="pl.41.5"></a><var>41.5</var>chapter.<br/>
<a id="pl.41.6"></a><var>41.6</var>    Subd. 2. <b>Power and authority.</b> For the purpose of enforcing this chapter, the <br/>
<a id="pl.41.7"></a><var>41.7</var>commissioner and the commissioner's assistants, agents, and employees have the power
         <br/>
<a id="pl.41.8"></a><var>41.8</var>and authority granted under sections 31.02 to 31.171.<br/>
<a id="pl.41.9"></a><var>41.9</var>    Subd. 3. <b>Inspection of dairies.</b> At times the commissioner determines proper, the <br/>
<a id="pl.41.10"></a><var>41.10</var>commissioner shall inspect all places where dairy products are made, stored, or served
         as <br/>
<a id="pl.41.11"></a><var>41.11</var>food for purchase, and all places where hoofed mammals are kept by persons engaged
         in <br/>
<a id="pl.41.12"></a><var>41.12</var>the sale of milk, and shall require the correction of all unsanitary conditions and
         practices.<br/>
<a id="pl.41.13"></a><var>41.13</var>    Subd. 4. <b>Refusal of inspection.</b> A refusal or physical threat that prevents the completion <br/>
<a id="pl.41.14"></a><var>41.14</var>of an inspection or neglect to obey a lawful direction of the commissioner or the
         <br/>
<a id="pl.41.15"></a><var>41.15</var>commissioner's agent given while carrying out this section may result in the suspension
         of <br/>
<a id="pl.41.16"></a><var>41.16</var>the offender's permit or certification or other enforcement as deemed appropriate
         by the <br/>
<a id="pl.41.17"></a><var>41.17</var>commissioner. The offender is required to meet with a representative of the offender's
         plant <br/>
<a id="pl.41.18"></a><var>41.18</var>or marketing organization and a representative of the commissioner within 48 hours
         of <br/>
<a id="pl.41.19"></a><var>41.19</var>receiving notice, excluding holidays or weekends, or the suspension or enforcement
         action <br/>
<a id="pl.41.20"></a><var>41.20</var>shall take effect. A producer may request a hearing before the commissioner or the
         <br/>
<a id="pl.41.21"></a><var>41.21</var>commissioner's agent if a serious concern exists relative to the retention of the
         offender's <br/>
<a id="pl.41.22"></a><var>41.22</var>permit or certification to sell milk.<br/>
<a id="pl.41.23"></a><var>41.23</var>    Subd. 5. <b>Inspection service.</b> To ensure compliance with the laws and rules governing <br/>
<a id="pl.41.24"></a><var>41.24</var>the production, handling, processing, and sale of milk and dairy products, the commissioner
         <br/>
<a id="pl.41.25"></a><var>41.25</var>is authorized, through a duly trained and qualified milk inspector, to inspect milk
         and milk <br/>
<a id="pl.41.26"></a><var>41.26</var>products and the premises and plants where milk and milk products are produced, handled,
         <br/>
<a id="pl.41.27"></a><var>41.27</var>and processed. Inspection services must acquaint the processor and producers with
         the <br/>
<a id="pl.41.28"></a><var>41.28</var>requirements for a Grade A or manufacturing grade milk supply for preliminary inspection
         <br/>
<a id="pl.41.29"></a><var>41.29</var>to determine if a processor has brought the processor's farms and plants to the state
         of <br/>
<a id="pl.41.30"></a><var>41.30</var>compliance that qualifies the processor's products for the Grade A or manufacturing
         grade <br/>
<a id="pl.41.31"></a><var>41.31</var>label, and for continuous inspection to ensure that a farm or plant and all products
         from a <br/>
<a id="pl.41.32"></a><var>41.32</var>farm or plant are in compliance with this chapter.<br/>
<a id="pl.42.1"></a><var>42.1</var>    Subd. 6. <b>Field service.</b> Grade A or manufacturing grade processors shall provide a <br/>
<a id="pl.42.2"></a><var>42.2</var>continuous field service to assist producers who sell their milk to the processor's
         plant to <br/>
<a id="pl.42.3"></a><var>42.3</var>attain and maintain compliance with this chapter. A person who performs field service
         must <br/>
<a id="pl.42.4"></a><var>42.4</var>first obtain a permit from the commissioner. A person desiring to secure a permit
         must apply <br/>
<a id="pl.42.5"></a><var>42.5</var>on a form provided by the commissioner, and before a permit is issued the commissioner
         <br/>
<a id="pl.42.6"></a><var>42.6</var>shall determine that the applicant is competent and qualified to perform field service.
         The <br/>
<a id="pl.42.7"></a><var>42.7</var>permit is not transferable to another person and may be revoked for due cause after
         the <br/>
<a id="pl.42.8"></a><var>42.8</var>holder of the permit has been given the opportunity for a hearing. The permit holder
         must <br/>
<a id="pl.42.9"></a><var>42.9</var>be given a notice in writing of the time and place of the hearing at least seven days
         before <br/>
<a id="pl.42.10"></a><var>42.10</var>the date of the hearing.<br/>
<a id="pl.42.11"></a><var>42.11</var>    Subd. 7. <b>Enforcement standards.</b> The standards in this chapter and rules adopted under <br/>
<a id="pl.42.12"></a><var>42.12</var>this chapter by the commissioner shall be the only standards for use in Minnesota.
         No <br/>
<a id="pl.42.13"></a><var>42.13</var>municipality or other subdivision of state government shall provide, by ordinance,
         more <br/>
<a id="pl.42.14"></a><var>42.14</var>stringent or comprehensive standards than are contained in this chapter and rules
         adopted <br/>
<a id="pl.42.15"></a><var>42.15</var>by the commissioner under this chapter.<br/>
<a id="pl.42.16"></a><var>42.16</var>    Subd. 8. <b>Rules.</b> (a) The commissioner shall by rule adopt identity, production, and <br/>
<a id="pl.42.17"></a><var>42.17</var>processing standards for both Grade A and manufacturing grade milk and dairy products.<br/>
<a id="pl.42.18"></a><var>42.18</var>(b) In the exercise of the authority to establish requirements for Grade A milk and
         milk <br/>
<a id="pl.42.19"></a><var>42.19</var>products, the commissioner adopts definitions, standards of identity, and requirements
         for <br/>
<a id="pl.42.20"></a><var>42.20</var>production and processing contained in the most current version of the Grade A Pasteurized
         <br/>
<a id="pl.42.21"></a><var>42.21</var>Milk Ordinance, and its associated documents, of the United States Department of Health
         <br/>
<a id="pl.42.22"></a><var>42.22</var>and Human Services in a manner provided for and not in conflict with law.<br/>
<a id="pl.42.23"></a><var>42.23</var>(c) Producers of milk, other than Grade A, shall conform to the standards contained
         in <br/>
<a id="pl.42.24"></a><var>42.24</var>subparts B, C, D, E, and F of the United States Department of Agriculture Agricultural
         <br/>
<a id="pl.42.25"></a><var>42.25</var>Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and
         <br/>
<a id="pl.42.26"></a><var>42.26</var>its Production and Processing, except that the commissioner shall develop methods
         by which <br/>
<a id="pl.42.27"></a><var>42.27</var>producers are able to comply with the standards without violation of religious beliefs.<br/>
<a id="pl.42.28"></a><var>42.28</var>    Subd. 9. <b>Certified industry inspection.</b> Industry personnel may be certified to perform <br/>
<a id="pl.42.29"></a><var>42.29</var>any inspection, to the extent allowed by federal law and provided that performance
         of the <br/>
<a id="pl.42.30"></a><var>42.30</var>inspections is consistent with rules adopted in subdivision 8.<br/>
<a id="pl.42.31"></a><var>42.31</var>    Subd. 10. <b>Fees; dairy services account.</b> (a) All fees and penalties collected under this <br/>
<a id="pl.42.32"></a><var>42.32</var>chapter shall be deposited into the dairy services account in the agricultural fund
         and used <br/>
<a id="pl.42.33"></a><var>42.33</var>for the purposes of administering this chapter.<br/>
<a id="pl.43.1"></a><var>43.1</var>(b) Unless otherwise noted, all fees are payable by a processor or marketing organization
         <br/>
<a id="pl.43.2"></a><var>43.2</var>and are invoiced on July 1 of each year for Grade A and January 1 of each year for
         <br/>
<a id="pl.43.3"></a><var>43.3</var>manufacturing grade, and if not paid within 30 days of the due date, inspection service
         may <br/>
<a id="pl.43.4"></a><var>43.4</var>be discontinued. If a farm discontinues the production of milk within six months of
         the <br/>
<a id="pl.43.5"></a><var>43.5</var>billing date, a request for a refund based on inspection services not received may
         be made <br/>
<a id="pl.43.6"></a><var>43.6</var>by the processor or by the marketing organization on behalf of its patrons. This request
         must <br/>
<a id="pl.43.7"></a><var>43.7</var>be made in writing by June 30 for manufacturing grade or by December 31 for Grade
         A. <br/>
<a id="pl.43.8"></a><var>43.8</var>Upon approval by the commissioner, refunds must be made to the processor or marketing
         <br/>
<a id="pl.43.9"></a><var>43.9</var>organization.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.43.10"></a><var>43.10</var>    Sec. 4. <b>[32D.03] BULK MILK HAULER AND SAMPLER LICENSE.</b><br/>
<a id="pl.43.11"></a><var>43.11</var>    Subdivision 1. <b>License requirement.</b> A person collecting milk from a dairy farm and <br/>
<a id="pl.43.12"></a><var>43.12</var>transporting the milk by bulk pickup and not in individual containers from farm to
         plant <br/>
<a id="pl.43.13"></a><var>43.13</var>must obtain a bulk milk hauler and sampler license.<br/>
<a id="pl.43.14"></a><var>43.14</var>    Subd. 2. <b>Application.</b> A person desiring to secure a bulk milk hauler and sampler license <br/>
<a id="pl.43.15"></a><var>43.15</var>must apply on a form provided by the commissioner. Before the license is issued, the
         <br/>
<a id="pl.43.16"></a><var>43.16</var>commissioner shall determine that the applicant is competent and qualified.<br/>
<a id="pl.43.17"></a><var>43.17</var>    Subd. 3. <b>Term of license; transferability.</b> An initial bulk milk hauler and sampler <br/>
<a id="pl.43.18"></a><var>43.18</var>license issued by the commissioner expires on the following December 31 and is not
         <br/>
<a id="pl.43.19"></a><var>43.19</var>transferable. A renewal bulk milk hauler and sampler license is not transferable,
         is valid for <br/>
<a id="pl.43.20"></a><var>43.20</var>two years, and expires on December 31 of the second year.<br/>
<a id="pl.43.21"></a><var>43.21</var>    Subd. 4. <b>Fees and penalties.</b> The fee for an initial or renewal bulk milk hauler and <br/>
<a id="pl.43.22"></a><var>43.22</var>sampler license is $60. The fee shall be paid to the commissioner before the commissioner
         <br/>
<a id="pl.43.23"></a><var>43.23</var>issues an initial or renewal bulk milk hauler and sampler license. If a bulk milk
         hauler and <br/>
<a id="pl.43.24"></a><var>43.24</var>sampler license renewal is not applied for on or before January 1, a fee of $30 shall
         be <br/>
<a id="pl.43.25"></a><var>43.25</var>imposed. A person who does not renew a bulk milk hauler and sampler license within
         one <br/>
<a id="pl.43.26"></a><var>43.26</var>year following its December 31 expiration date, except those persons who do not renew
         the <br/>
<a id="pl.43.27"></a><var>43.27</var>bulk milk hauler and sampler license while engaged in active military service, shall
         be <br/>
<a id="pl.43.28"></a><var>43.28</var>required to prove competency and qualification pursuant to section 32D.07 before a
         bulk <br/>
<a id="pl.43.29"></a><var>43.29</var>milk hauler and sampler license is issued. The commissioner may require any other
         person <br/>
<a id="pl.43.30"></a><var>43.30</var>who renews a bulk milk hauler and sampler license to prove competency and qualification
         <br/>
<a id="pl.43.31"></a><var>43.31</var>in the same manner.<br/>
<a id="pl.43.32"></a><var>43.32</var>    Subd. 5. <b>Suspension or cancellation.</b> The commissioner is empowered to conduct <br/>
<a id="pl.43.33"></a><var>43.33</var>enforcement action, suspend, or cancel any bulk milk hauler and sampler license pursuant
         <br/>
<a id="pl.43.34"></a><var>43.34</var>to section 34A.06.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.44.1"></a><var>44.1</var>    Sec. 5. <b>[32D.04] MILK TANK TRUCKS.</b><br/>
<a id="pl.44.2"></a><var>44.2</var>All farm bulk milk pickup tankers, milk transports, and tankers used to transport
         milk <br/>
<a id="pl.44.3"></a><var>44.3</var>products must be inspected and obtain a permit issued by the commissioner at least
         once <br/>
<a id="pl.44.4"></a><var>44.4</var>every 12 months. The owner or operator must pay a $25 permit fee per tanker to the
         <br/>
<a id="pl.44.5"></a><var>44.5</var>commissioner. The commissioner may appoint a person the commissioner deems qualified
         <br/>
<a id="pl.44.6"></a><var>44.6</var>to make inspections.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.44.7"></a><var>44.7</var>    Sec. 6. <b>[32D.05] GRADE A DAIRY FARM PERMITTING; WATER WELL </b><br/>
<a id="pl.44.8"></a><var>44.8</var><b>DISTANCE REQUIREMENT.</b><br/>
<a id="pl.44.9"></a><var>44.9</var>(a) No milk producer may sell or distribute milk from a dairy farm as Grade A milk
         <br/>
<a id="pl.44.10"></a><var>44.10</var>without a valid Grade A dairy farm permit issued by the commissioner.<br/>
<a id="pl.44.11"></a><var>44.11</var>(b) A dairy farmer who wishes to be permitted to produce Grade A milk may not be <br/>
<a id="pl.44.12"></a><var>44.12</var>denied the Grade A permit solely because of provisions in rules adopted by the commissioner
         <br/>
<a id="pl.44.13"></a><var>44.13</var>requiring a minimum distance between a water well and dairy farm. To be eligible for
         a <br/>
<a id="pl.44.14"></a><var>44.14</var>Grade A permit, the following conditions must be met:<br/>
<a id="pl.44.15"></a><var>44.15</var>(1) the water well must have been in place prior to January 1, 1974;<br/>
<a id="pl.44.16"></a><var>44.16</var>(2) the water well must comply with all other rules applicable to the well, other
         than the <br/>
<a id="pl.44.17"></a><var>44.17</var>distance requirement; and<br/>
<a id="pl.44.18"></a><var>44.18</var>(3) water from the well must be tested at least once every 12 months. More frequent
         <br/>
<a id="pl.44.19"></a><var>44.19</var>testing may be required in compliance with guidelines established by the commissioner
         if <br/>
<a id="pl.44.20"></a><var>44.20</var>water test results fail to meet water quality requirements.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.44.21"></a><var>44.21</var>    Sec. 7. <b>[32D.06] GRADE A DAIRY FARM INSPECTION; FEES.</b><br/>
<a id="pl.44.22"></a><var>44.22</var>(a) As provided in section 32D.02, subdivision 4, the commissioner shall provide <br/>
<a id="pl.44.23"></a><var>44.23</var>inspection service to any milk producer who wishes to market Grade A milk and is in
         <br/>
<a id="pl.44.24"></a><var>44.24</var>compliance with the requirement for the production of Grade A milk. Grade A inspections
         <br/>
<a id="pl.44.25"></a><var>44.25</var>shall be completed at least once every six months.<br/>
<a id="pl.44.26"></a><var>44.26</var>(b) The fee for inspections must be no more than $50 per farm, paid annually by the
         <br/>
<a id="pl.44.27"></a><var>44.27</var>processor or by the marketing organization on behalf of its patrons.<br/>
<a id="pl.44.28"></a><var>44.28</var>(c) For a farm requiring a reinspection in addition to the required biannual inspections,
         <br/>
<a id="pl.44.29"></a><var>44.29</var>an additional fee must be paid by the processor or by the marketing organization on
         behalf <br/>
<a id="pl.44.30"></a><var>44.30</var>of its patrons. The fee for reinspection of a farm with fewer than 100 hoofed milk-producing
         <br/>
<a id="pl.45.1"></a><var>45.1</var>animals is $60 per reinspection. The fee for reinspection of a farm with 100 or more
         hoofed <br/>
<a id="pl.45.2"></a><var>45.2</var>milk-producing animals is $150 per reinspection.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.45.3"></a><var>45.3</var>    Sec. 8. <b>[32D.07] MANUFACTURING GRADE DAIRY FARM CERTIFICATION.</b><br/>
<a id="pl.45.4"></a><var>45.4</var>A producer who wishes to sell milk for manufacturing purposes must obtain from the
         <br/>
<a id="pl.45.5"></a><var>45.5</var>commissioner an annual Grade B farm certification.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.45.6"></a><var>45.6</var>    Sec. 9. <b>[32D.08] MANUFACTURING GRADE DAIRY FARM INSPECTION; FEES.</b><br/>
<a id="pl.45.7"></a><var>45.7</var>(a) A producer selling milk for manufacturing purposes must be inspected at least
         once <br/>
<a id="pl.45.8"></a><var>45.8</var>every 12 months.<br/>
<a id="pl.45.9"></a><var>45.9</var>(b) The fee for the certification inspection must not be more than $25 per producer,
         to <br/>
<a id="pl.45.10"></a><var>45.10</var>be paid annually by the processor or the marketing organization on behalf of its patrons.<br/>
<a id="pl.45.11"></a><var>45.11</var>(c) For a producer requiring more than one inspection for certification, a reinspection
         <br/>
<a id="pl.45.12"></a><var>45.12</var>fee of $45 must be paid by the processor or by the marketing organization on behalf
         of its <br/>
<a id="pl.45.13"></a><var>45.13</var>patrons.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.45.14"></a><var>45.14</var>    Sec. 10. <b>[32D.09] DAIRY PLANT LICENSING AND PERMITTING.</b><br/>
<a id="pl.45.15"></a><var>45.15</var>    Subdivision 1. <b>Licensing.</b> A dairy plant must obtain a license as required under section <br/>
<a id="pl.45.16"></a><var>45.16</var>28A.04.<br/>
<a id="pl.45.17"></a><var>45.17</var>    Subd. 2. <b>Permitting.</b> No person shall operate a dairy plant in this state unless the dairy <br/>
<a id="pl.45.18"></a><var>45.18</var>plant, equipment, and water supply and plumbing system have been first approved by
         the <br/>
<a id="pl.45.19"></a><var>45.19</var>commissioner and a permit issued to operate the same. A permit may be revoked by the
         <br/>
<a id="pl.45.20"></a><var>45.20</var>commissioner for due cause pursuant to section 34A.06.<br/>
<a id="pl.45.21"></a><var>45.21</var>    Subd. 3. <b>Approval.</b> At the time of filing the application for a permit, the applicant shall <br/>
<a id="pl.45.22"></a><var>45.22</var>submit to the commissioner duplicate floor plans of the plant that show the placement
         of <br/>
<a id="pl.45.23"></a><var>45.23</var>equipment, the source of water supply and method of distribution, a detailed pasteurization
         <br/>
<a id="pl.45.24"></a><var>45.24</var>flow chart, and the location of the plumbing system, including the disposal of wastes.
         New <br/>
<a id="pl.45.25"></a><var>45.25</var>construction or alteration of an existing dairy plant shall be made only with the
         approval of <br/>
<a id="pl.45.26"></a><var>45.26</var>the commissioner and duplicate plans for the construction or alteration shall be submitted
         <br/>
<a id="pl.45.27"></a><var>45.27</var>to the commissioner for approval. The fee for approval services is $45 per hour of
         department <br/>
<a id="pl.45.28"></a><var>45.28</var>staff time spent in the approval process.<br/>
<a id="pl.45.29"></a><var>45.29</var>    Subd. 4. <b>Farmstead cheese.</b> (a) The commissioner or the commissioner's designee shall <br/>
<a id="pl.45.30"></a><var>45.30</var>issue an additional permit to a dairy plant that desires to use the name "Minnesota
         farmstead <br/>
<a id="pl.46.1"></a><var>46.1</var>cheese" upon application made by the dairy plant for use of the name, provided the
         cheese <br/>
<a id="pl.46.2"></a><var>46.2</var>meets the definition in section 32D.01, subdivision 13.<br/>
<a id="pl.46.3"></a><var>46.3</var>(b) No cheese or packaged cheese that is sold, offered or exposed for sale, or held
         in <br/>
<a id="pl.46.4"></a><var>46.4</var>possession with intent to sell at either retail or wholesale in this state may be
         labeled or <br/>
<a id="pl.46.5"></a><var>46.5</var>described as "Minnesota farmstead cheese" unless it meets the criteria in section
         32D.01, <br/>
<a id="pl.46.6"></a><var>46.6</var>subdivision 13, and the manufacturer has obtained the designated permit.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.46.7"></a><var>46.7</var>    Sec. 11. <b>[32D.10] INSPECTIONS.</b><br/>
<a id="pl.46.8"></a><var>46.8</var>(a) Inspections of Grade A plants must be completed at least once every three months.
         <br/>
<a id="pl.46.9"></a><var>46.9</var>A pasteurization plant requesting Grade A inspection must pay an annual inspection
         fee of <br/>
<a id="pl.46.10"></a><var>46.10</var>no more than $500.<br/>
<a id="pl.46.11"></a><var>46.11</var>(b) Inspections of manufacturing plants that process milk or milk products other than
         <br/>
<a id="pl.46.12"></a><var>46.12</var>Grade A must be completed at least once every six months. A manufacturing plant that
         <br/>
<a id="pl.46.13"></a><var>46.13</var>pasteurizes milk or milk by-products must pay an annual fee based on the number of
         <br/>
<a id="pl.46.14"></a><var>46.14</var>pasteurization units. The fee must not exceed $140 per unit.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.46.15"></a><var>46.15</var>    Sec. 12. <b>[32D.11] PROCUREMENT FEE.</b><br/>
<a id="pl.46.16"></a><var>46.16</var>A dairy plant operator in this state must pay to the commissioner on or before the
         18th <br/>
<a id="pl.46.17"></a><var>46.17</var>of each month a fee of 1.1 cents per hundredweight of milk purchased the previous
         month. <br/>
<a id="pl.46.18"></a><var>46.18</var>If a milk producer in this state ships milk out of the state for sale, the producer
         must pay <br/>
<a id="pl.46.19"></a><var>46.19</var>the fee to the commissioner unless the purchaser voluntarily pays the fee. Producers
         who <br/>
<a id="pl.46.20"></a><var>46.20</var>ship milk out of state and processors must submit to the commissioner monthly reports
         <br/>
<a id="pl.46.21"></a><var>46.21</var>related to milk purchases along with the appropriate procurement fee. The commissioner
         <br/>
<a id="pl.46.22"></a><var>46.22</var>shall have access to all relevant purchase or sale records as necessary to verify
         compliance <br/>
<a id="pl.46.23"></a><var>46.23</var>with this section and may require the producer or purchaser to produce records as
         necessary <br/>
<a id="pl.46.24"></a><var>46.24</var>to determine compliance.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.46.25"></a><var>46.25</var>    Sec. 13. <b>[32D.12] SELECTED PRODUCTS FEE.</b><br/>
<a id="pl.46.26"></a><var>46.26</var>(a) A manufacturer must pay to the commissioner a fee for fluid milk processed and
         <br/>
<a id="pl.46.27"></a><var>46.27</var>milk used in the manufacture of fluid milk products sold for retail sale in Minnesota
         in an <br/>
<a id="pl.46.28"></a><var>46.28</var>amount not less than five cents and not more than nine cents per hundredweight as
         set by <br/>
<a id="pl.46.29"></a><var>46.29</var>the commissioner's order. No change within any 12-month period may be in excess of
         one <br/>
<a id="pl.46.30"></a><var>46.30</var>cent per hundredweight.<br/>
<a id="pl.46.31"></a><var>46.31</var>(b) A processor must report quantities of milk processed under paragraph (a) on forms
         <br/>
<a id="pl.46.32"></a><var>46.32</var>provided by the commissioner. Processor fees must be paid monthly. The commissioner
         <br/>
<a id="pl.47.1"></a><var>47.1</var>may require the production of records as necessary to determine compliance with this
         <br/>
<a id="pl.47.2"></a><var>47.2</var>paragraph.<br/>
<a id="pl.47.3"></a><var>47.3</var>(c) The commissioner may create within the department a dairy consulting program to
         <br/>
<a id="pl.47.4"></a><var>47.4</var>provide assistance to dairy producers who are experiencing problems meeting the sanitation
         <br/>
<a id="pl.47.5"></a><var>47.5</var>and quality requirements of the dairy laws and rules. The commissioner may use money
         <br/>
<a id="pl.47.6"></a><var>47.6</var>appropriated from the dairy services account to pay for the program authorized in
         this <br/>
<a id="pl.47.7"></a><var>47.7</var>paragraph.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.47.8"></a><var>47.8</var>    Sec. 14. <b>[32D.13] MILK QUALITY STANDARDS.</b><br/>
<a id="pl.47.9"></a><var>47.9</var>    Subdivision 1. <b>Visible adulteration or odors.</b> Milk shall not be visibly adulterated, or <br/>
<a id="pl.47.10"></a><var>47.10</var>have any objectionable odor, or be abnormal in appearance or consistency.<br/>
<a id="pl.47.11"></a><var>47.11</var>    Subd. 2. <b>Grade A raw milk.</b> (a) The bacterial count of Grade A raw milk from producers <br/>
<a id="pl.47.12"></a><var>47.12</var>must not exceed 100,000 bacteria per milliliter prior to commingling with other producer
         <br/>
<a id="pl.47.13"></a><var>47.13</var>milk.<br/>
<a id="pl.47.14"></a><var>47.14</var>(b) After commingling with other producer milk, the bacteria count must not exceed
         <br/>
<a id="pl.47.15"></a><var>47.15</var>300,000 per milliliter prior to pasteurization.<br/>
<a id="pl.47.16"></a><var>47.16</var>    Subd. 3. <b>Grade A pasteurized milk and fluid milk products.</b> (a) The bacterial count <br/>
<a id="pl.47.17"></a><var>47.17</var>of Grade A pasteurized milk and fluid milk products, at any time after pasteurization
         until <br/>
<a id="pl.47.18"></a><var>47.18</var>delivery, must not exceed 20,000 bacteria per milliliter.<br/>
<a id="pl.47.19"></a><var>47.19</var>(b) The coliform count of Grade A pasteurized milk and fluid milk products must not
         <br/>
<a id="pl.47.20"></a><var>47.20</var>exceed ten bacteria per milliliter except that bulk tank transport shipments must
         not exceed <br/>
<a id="pl.47.21"></a><var>47.21</var>100 per milliliter.<br/>
<a id="pl.47.22"></a><var>47.22</var>    Subd. 4. <b>Raw milk, other than Grade A.</b> The bacterial count of raw milk from producers <br/>
<a id="pl.47.23"></a><var>47.23</var>must not exceed 500,000 bacteria per milliliter prior to commingling with other producer
         <br/>
<a id="pl.47.24"></a><var>47.24</var>milk.<br/>
<a id="pl.47.25"></a><var>47.25</var>    Subd. 5. <b>Pasteurized milk, other than Grade A.</b> The bacterial count of pasteurized <br/>
<a id="pl.47.26"></a><var>47.26</var>milk other than Grade A pasteurized milk, at any time after pasteurization until delivery,
         <br/>
<a id="pl.47.27"></a><var>47.27</var>must not exceed 20,000 bacteria per milliliter.<br/>
<a id="pl.47.28"></a><var>47.28</var>    Subd. 6. <b>Exceptions.</b> Bacterial count standards do not apply to sour cream, cultured <br/>
<a id="pl.47.29"></a><var>47.29</var>buttermilk, and other cultured fluid milk products.<br/>
<a id="pl.47.30"></a><var>47.30</var>    Subd. 7. <b>Rules and standards.</b> The commissioner may prescribe standards and rules <br/>
<a id="pl.47.31"></a><var>47.31</var>adopted in accordance with law more stringent than those imposed by this section.<br/>
<a id="pl.48.1"></a><var>48.1</var>    Subd. 8. <b>Somatic cell count.</b> (a) The somatic cell count, as determined by a direct <br/>
<a id="pl.48.2"></a><var>48.2</var>microscopic somatic cell count or an electronic somatic cell count, must not exceed
         750,000 <br/>
<a id="pl.48.3"></a><var>48.3</var>cells per milliliter for Grade A raw milk and raw milk other than Grade A. Notwithstanding
         <br/>
<a id="pl.48.4"></a><var>48.4</var>any federal standard, the somatic cell count of goat milk must not exceed 1,500,000
         cells <br/>
<a id="pl.48.5"></a><var>48.5</var>per milliliter.<br/>
<a id="pl.48.6"></a><var>48.6</var>(b) The commissioner may prescribe standards and rules adopted in accordance with
         <br/>
<a id="pl.48.7"></a><var>48.7</var>law more stringent than those imposed by this subdivision.<br/>
<a id="pl.48.8"></a><var>48.8</var>    Subd. 9. <b>Temperature.</b> If milk is received or collected from a dairy farm more than two <br/>
<a id="pl.48.9"></a><var>48.9</var>hours after the most recent milking, the temperature of the milk shall not exceed
         45 degrees <br/>
<a id="pl.48.10"></a><var>48.10</var>Fahrenheit (7 degrees Celsius). If the milk consists of a blend of milk from two or
         more <br/>
<a id="pl.48.11"></a><var>48.11</var>milkings, and the milk is received or collected less than two hours after the most
         recent <br/>
<a id="pl.48.12"></a><var>48.12</var>milking, the blend temperature shall not exceed 50 degrees Fahrenheit (10 degrees
         Celsius).<br/>
<a id="pl.48.13"></a><var>48.13</var>    Subd. 10. <b>Industry enforcement.</b> A dairy plant is not required to reject milk shipments <br/>
<a id="pl.48.14"></a><var>48.14</var>in response to a violation of subdivisions 2 to 9 unless the commissioner suspends
         or revokes <br/>
<a id="pl.48.15"></a><var>48.15</var>the dairy plant permit or milk producer's Grade A permit or manufacturing grade certification.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.48.16"></a><var>48.16</var>    Sec. 15. <b>[32D.14] OFFICIAL PRODUCER SAMPLES.</b><br/>
<a id="pl.48.17"></a><var>48.17</var>(a) An official producer sample for each producer must be analyzed for bacteria, somatic
         <br/>
<a id="pl.48.18"></a><var>48.18</var>cell count, temperature, and antibiotic residues at least once per month in four out
         of every <br/>
<a id="pl.48.19"></a><var>48.19</var>six months. Official producer samples must be collected and analyzed without providing
         <br/>
<a id="pl.48.20"></a><var>48.20</var>the producer with prior notification of the sampling date.<br/>
<a id="pl.48.21"></a><var>48.21</var>(b) Official producer sample results must be inclusive of all animals from which milk
         <br/>
<a id="pl.48.22"></a><var>48.22</var>is collected and sold on the day of sampling.<br/>
<a id="pl.48.23"></a><var>48.23</var>(c) Official producer sample results must be collected by a licensed sampler.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.48.24"></a><var>48.24</var>    Sec. 16. <b>[32D.15] MONTHLY REPORTING.</b><br/>
<a id="pl.48.25"></a><var>48.25</var>(a) In at least four out of every six months, the dairy plant that procures milk from
         the <br/>
<a id="pl.48.26"></a><var>48.26</var>producer must report to the commissioner at least one representative test result for
         bacteria, <br/>
<a id="pl.48.27"></a><var>48.27</var>somatic cell count, temperature, and antibiotic residues. The result shall be reported
         within <br/>
<a id="pl.48.28"></a><var>48.28</var>seven days after the laboratory obtains the test results.<br/>
<a id="pl.48.29"></a><var>48.29</var>(b) A laboratory that performs the tests required under this section for a dairy plant
         may <br/>
<a id="pl.48.30"></a><var>48.30</var>report the test results for the dairy plant.<br/>
<a id="pl.49.1"></a><var>49.1</var>(c) A dairy plant or laboratory shall report test results under this section in an
         electronic <br/>
<a id="pl.49.2"></a><var>49.2</var>form approved by the department or using an approved alternative.<br/>
 <br/>
<a id="bill.2.17.0"></a><a id="pl.49.3"></a><var>49.3</var>    Sec. 17. <b>[32D.16] ENFORCEMENT.</b><br/>
<a id="pl.49.4"></a><var>49.4</var>The commissioner shall suspend a producer's permit or certification if three of the
         last <br/>
<a id="pl.49.5"></a><var>49.5</var>five official producer samples exceed the applicable standard. The commissioner shall
         <br/>
<a id="pl.49.6"></a><var>49.6</var>provide warning of a pending suspension when two of the last four producer samples
         exceed <br/>
<a id="pl.49.7"></a><var>49.7</var>the applicable standard.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.49.8"></a><var>49.8</var>    Sec. 18. <b>[32D.17] LABORATORY CERTIFICATION.</b><br/>
<a id="pl.49.9"></a><var>49.9</var>(a) A laboratory and its methods are required to be approved or certified prior to
         testing <br/>
<a id="pl.49.10"></a><var>49.10</var>Grade A milk samples. The results of approved or certified laboratories may be used
         by <br/>
<a id="pl.49.11"></a><var>49.11</var>official regulatory agencies in enforcement of requirements for milk and milk products.
         The <br/>
<a id="pl.49.12"></a><var>49.12</var>approval or certification remains valid unless suspended or revoked by the commissioner
         <br/>
<a id="pl.49.13"></a><var>49.13</var>for failure to comply with the requirements of this chapter.<br/>
<a id="pl.49.14"></a><var>49.14</var>(b) Certified or approved laboratories must receive a permit from the commissioner.
         <br/>
<a id="pl.49.15"></a><var>49.15</var>The permit remains valid without renewal unless suspended or revoked by the commissioner
         <br/>
<a id="pl.49.16"></a><var>49.16</var>for failure to comply with the requirements of this chapter.<br/>
<a id="pl.49.17"></a><var>49.17</var>(c) Satisfactory analytical procedures and results for split samples, the nature,
         number, <br/>
<a id="pl.49.18"></a><var>49.18</var>and frequency of which shall be in accordance with rules established by the commissioner,
         <br/>
<a id="pl.49.19"></a><var>49.19</var>shall be required of a certified laboratory for retention of its certification and
         permit.<br/>
<a id="pl.49.20"></a><var>49.20</var>(d) An application for initial certification or biennial recertification, or for recertification
         <br/>
<a id="pl.49.21"></a><var>49.21</var>following suspension or revocation of a permit, shall be accompanied by an annual
         fee <br/>
<a id="pl.49.22"></a><var>49.22</var>based on the number of analyses approved and the number of specific tests for which
         they <br/>
<a id="pl.49.23"></a><var>49.23</var>are approved. The fee must not be less than $150 nor more than $200 for each analysis
         <br/>
<a id="pl.49.24"></a><var>49.24</var>approved and not less than $35 nor more than $50 for each test approved. The commissioner
         <br/>
<a id="pl.49.25"></a><var>49.25</var>may annually adjust assessments within the limits established by this subdivision
         to meet <br/>
<a id="pl.49.26"></a><var>49.26</var>the cost recovery of the services required by this section.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.49.27"></a><var>49.27</var>    Sec. 19. <b>[32D.18] MILK BOUGHT BY WEIGHT; TESTING METHODS.</b><br/>
<a id="pl.49.28"></a><var>49.28</var>    Subdivision 1. <b>Milk fat, protein, and solids not fat bases of payment; tests.</b> (a) Milk <br/>
<a id="pl.49.29"></a><var>49.29</var>must be purchased from producers using a formula based on one or more of the following:<br/>
<a id="pl.49.30"></a><var>49.30</var>(1) payment of a standard rate with uniform differentials for milk testing above or
         below <br/>
<a id="pl.49.31"></a><var>49.31</var>3.5 percent milk fat;<br/>
<a id="pl.50.1"></a><var>50.1</var>(2) payment of a standard rate for the pounds of milk fat contained in the milk;<br/>
<a id="pl.50.2"></a><var>50.2</var>(3) payment of a standard rate for the pounds of protein contained in the milk;<br/>
<a id="pl.50.3"></a><var>50.3</var>(4) payment of a standard rate for the pounds of nonfat solids contained in the milk;
         or<br/>
<a id="pl.50.4"></a><var>50.4</var>(5) payment of standard rates based on other attributes of value in the milk.<br/>
<a id="pl.50.5"></a><var>50.5</var>(b) In addition, an adjustment may be made on the basis of milk quality and other
         <br/>
<a id="pl.50.6"></a><var>50.6</var>premiums. Testing procedures for determining the percentages of milk fat, protein,
         and <br/>
<a id="pl.50.7"></a><var>50.7</var>nonfat solids must comply with the methods approved by the Association of Analytical
         <br/>
<a id="pl.50.8"></a><var>50.8</var>Chemists or be as adopted by rule.<br/>
<a id="pl.50.9"></a><var>50.9</var>    Subd. 2. <b>Apparatus to conform to specifications.</b> Glassware, test bottles, pipettes, acid <br/>
<a id="pl.50.10"></a><var>50.10</var>measures, chemicals, scales, and other apparatus used in the operation of these tests
         shall <br/>
<a id="pl.50.11"></a><var>50.11</var>conform to the specifications for the particular test method.<br/>
<a id="pl.50.12"></a><var>50.12</var>    Subd. 3. <b>Penalties for violations.</b> A person who:<br/>
<a id="pl.50.13"></a><var>50.13</var>(1) employs any test other than those tests authorized by rule adopted by the <br/>
<a id="pl.50.14"></a><var>50.14</var>commissioner, or any methods other than the standard official methods for determining
         the <br/>
<a id="pl.50.15"></a><var>50.15</var>milk fat content of milk or cream;<br/>
<a id="pl.50.16"></a><var>50.16</var>(2) incorrectly samples milk or cream purchased or sold;<br/>
<a id="pl.50.17"></a><var>50.17</var>(3) incorrectly weighs milk or cream purchased or sold;<br/>
<a id="pl.50.18"></a><var>50.18</var>(4) incorrectly grades milk or cream purchased or sold;<br/>
<a id="pl.50.19"></a><var>50.19</var>(5) makes a false entry of the weight, test result, or grade of any milk or cream
         purchased <br/>
<a id="pl.50.20"></a><var>50.20</var>or sold;<br/>
<a id="pl.50.21"></a><var>50.21</var>(6) incorrectly samples, weighs, tests, or records or reports weights or tests of
         skim milk <br/>
<a id="pl.50.22"></a><var>50.22</var>or buttermilk purchased or sold;<br/>
<a id="pl.50.23"></a><var>50.23</var>(7) underreads the tests;<br/>
<a id="pl.50.24"></a><var>50.24</var>(8) falsifies the reading of the tests;<br/>
<a id="pl.50.25"></a><var>50.25</var>(9) manipulates the reading of the tests; or<br/>
<a id="pl.50.26"></a><var>50.26</var>(10) falsely states, certifies, or uses in the purchase or sale of milk or cream a
         misreading <br/>
<a id="pl.50.27"></a><var>50.27</var>of such tests, whether the tests or actual reading have been made by the person or
         by any <br/>
<a id="pl.50.28"></a><var>50.28</var>other person,<br/>
<a id="pl.50.29"></a><var>50.29</var>is guilty of a misdemeanor.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.51.1"></a><var>51.1</var>    Sec. 20. <b>[32D.19] ADULTERATED DAIRY PRODUCTS.</b><br/>
<a id="pl.51.2"></a><var>51.2</var>    Subdivision 1. <b>Purchase and sale prohibition.</b> A person may not sell or knowingly <br/>
<a id="pl.51.3"></a><var>51.3</var>buy adulterated dairy products.<br/>
<a id="pl.51.4"></a><var>51.4</var>    Subd. 2. <b>Manufacture of food for human consumption from adulterated milk or </b><br/>
<a id="pl.51.5"></a><var>51.5</var><b>cream prohibited.</b> An article of food for human consumption may not be manufactured <br/>
<a id="pl.51.6"></a><var>51.6</var>from adulterated milk or cream, except as provided in the Federal Food, Drug, and
         Cosmetic <br/>
<a id="pl.51.7"></a><var>51.7</var>Act, United States Code, title 21, section 301 et seq., and related federal regulations.<br/>
<a id="pl.51.8"></a><var>51.8</var>    Subd. 3. <b>Adulterated milk.</b> For purposes of this section, milk is adulterated if it:<br/>
<a id="pl.51.9"></a><var>51.9</var>(1) is drawn in a filthy or unsanitary place;<br/>
<a id="pl.51.10"></a><var>51.10</var>(2) is drawn from unhealthy or diseased animals;<br/>
<a id="pl.51.11"></a><var>51.11</var>(3) contains water in excess of that normally found in milk;<br/>
<a id="pl.51.12"></a><var>51.12</var>(4) contains a substance that is not a normal constituent of the milk except as allowed
         <br/>
<a id="pl.51.13"></a><var>51.13</var>in this chapter; or<br/>
<a id="pl.51.14"></a><var>51.14</var>(5) contains drug residues or other chemical or biological substances in amounts above
         <br/>
<a id="pl.51.15"></a><var>51.15</var>the tolerances or safe levels established by rule.<br/>
<a id="pl.51.16"></a><var>51.16</var>    Subd. 4. <b>Drug residues.</b> (a) Before processing milk, all bulk milk pickup tankers must <br/>
<a id="pl.51.17"></a><var>51.17</var>be tested for the presence of beta lactam drug residues and for other residues as
         determined <br/>
<a id="pl.51.18"></a><var>51.18</var>necessary by the commissioner. Milk received from a producer in other than a bulk
         milk <br/>
<a id="pl.51.19"></a><var>51.19</var>pickup tanker is also subject to this section.<br/>
<a id="pl.51.20"></a><var>51.20</var>(b) Bulk milk tankers that confirm positive for beta lactam drug residues or other
         residues <br/>
<a id="pl.51.21"></a><var>51.21</var>must follow up with producer sample testing of all producers contained on the positive
         load.<br/>
<a id="pl.51.22"></a><var>51.22</var>(c) Individual producer samples must be tested for the presence of beta lactam drug
         <br/>
<a id="pl.51.23"></a><var>51.23</var>residues at least once a month for four out of every six-month period. Results of
         these tests <br/>
<a id="pl.51.24"></a><var>51.24</var>must be reported to the commissioner as official producer sample results using established
         <br/>
<a id="pl.51.25"></a><var>51.25</var>electronic reporting procedures.<br/>
<a id="pl.51.26"></a><var>51.26</var>(d) Drug residue testing methods must be those approved by the Food and Drug <br/>
<a id="pl.51.27"></a><var>51.27</var>Administration (FDA) and the National Conference of Interstate Milk Shipments or listed
         <br/>
<a id="pl.51.28"></a><var>51.28</var>in the FDA's current version of M-a-85.<br/>
<a id="pl.51.29"></a><var>51.29</var>(e) All drug residue samples testing positive must be reported to the commissioner
         or <br/>
<a id="pl.51.30"></a><var>51.30</var>the commissioner's designee within 24 hours. The report must include how and where
         the <br/>
<a id="pl.51.31"></a><var>51.31</var>milk was disposed of, and the volume, the responsible producer, and the possible cause
         of <br/>
<a id="pl.51.32"></a><var>51.32</var>the violative residue. All milk sample residue results must be recorded and retained
         for six <br/>
<a id="pl.52.1"></a><var>52.1</var>months by the receiving plant for examination by the commissioner or the commissioner's
         <br/>
<a id="pl.52.2"></a><var>52.2</var>designee.<br/>
<a id="pl.52.3"></a><var>52.3</var>    Subd. 5. <b>Penalties.</b> (a) The permit or certification of a milk producer identified as having <br/>
<a id="pl.52.4"></a><var>52.4</var>a positive drug residue is immediately suspended. The producer must not ship milk
         while <br/>
<a id="pl.52.5"></a><var>52.5</var>the permit or certification is suspended.<br/>
<a id="pl.52.6"></a><var>52.6</var>(b) The producer's permit or certification may be reinstated after being sampled by
         the <br/>
<a id="pl.52.7"></a><var>52.7</var>commissioner or the commissioner's designee and testing negative on the sample.<br/>
<a id="pl.52.8"></a><var>52.8</var>(c) A milk producer may not change plants within 30 days, without permission of the
         <br/>
<a id="pl.52.9"></a><var>52.9</var>commissioner, after receiving notification from the commissioner of a residue violation.<br/>
<a id="pl.52.10"></a><var>52.10</var>(d) The producer that is identified with the drug residue violation is responsible
         for the <br/>
<a id="pl.52.11"></a><var>52.11</var>value of all milk on any load that tests positive for drug residues and any costs
         associated <br/>
<a id="pl.52.12"></a><var>52.12</var>with its disposal. Payment shall be made to the purchaser of the milk.<br/>
<a id="pl.52.13"></a><var>52.13</var>(e) For the first and second violation within a 12-month period, the dairy producer
         must, <br/>
<a id="pl.52.14"></a><var>52.14</var>within 30 days of the date of the residue:<br/>
<a id="pl.52.15"></a><var>52.15</var>(1) meet with the dairy inspector to review potential causes of the adulteration;
         and<br/>
<a id="pl.52.16"></a><var>52.16</var>(2) complete the designated drug residue prevention educational program with a licensed
         <br/>
<a id="pl.52.17"></a><var>52.17</var>veterinarian and submit the signed certificate to the commissioner.<br/>
<a id="pl.52.18"></a><var>52.18</var>(f) Failure to comply with the requirements for the first and second violation listed
         in <br/>
<a id="pl.52.19"></a><var>52.19</var>paragraph (e) may result in suspension of the producer's permit or certification until
         the <br/>
<a id="pl.52.20"></a><var>52.20</var>conditions in paragraph (e) are met.<br/>
<a id="pl.52.21"></a><var>52.21</var>(g) For the third or subsequent violation within a 12-month period, the commissioner
         <br/>
<a id="pl.52.22"></a><var>52.22</var>may initiate proceedings for further enforcement action, that may include a penalty
         of up <br/>
<a id="pl.52.23"></a><var>52.23</var>to a 30-day permit or certification suspension. In lieu of a suspension, the producer
         may be <br/>
<a id="pl.52.24"></a><var>52.24</var>assessed an administrative penalty of up to $1,000 or the value of milk sold during
         the <br/>
<a id="pl.52.25"></a><var>52.25</var>intended suspension period.<br/>
<a id="pl.52.26"></a><var>52.26</var>    Subd. 6. <b>Other forms of adulteration.</b> A milk producer who violates subdivision 3 is <br/>
<a id="pl.52.27"></a><var>52.27</var>subject to any of the following penalties:<br/>
<a id="pl.52.28"></a><var>52.28</var>(1) the permit or certification of a milk producer identified as having adulterated
         milk <br/>
<a id="pl.52.29"></a><var>52.29</var>is immediately suspended. The producer may not ship milk while the permit or certification
         <br/>
<a id="pl.52.30"></a><var>52.30</var>is suspended;<br/>
<a id="pl.53.1"></a><var>53.1</var>(2) the producer that is identified with the adulterated milk violation is responsible
         for <br/>
<a id="pl.53.2"></a><var>53.2</var>the value of all milk on any load that is contaminated by the adulterant and any costs
         <br/>
<a id="pl.53.3"></a><var>53.3</var>associated with its disposal. Payment shall be made to the purchaser of the milk;<br/>
<a id="pl.53.4"></a><var>53.4</var>(3) the producer's permit or certification may be reinstated after the commissioner
         receives <br/>
<a id="pl.53.5"></a><var>53.5</var>adequate verification that the milk is no longer adulterated; and<br/>
<a id="pl.53.6"></a><var>53.6</var>(4) the commissioner may, after evaluation of the severity and repetitive nature of
         the <br/>
<a id="pl.53.7"></a><var>53.7</var>adulteration, initiate additional enforcement action in the form of permit or certification
         <br/>
<a id="pl.53.8"></a><var>53.8</var>suspension for up to 30 days or in lieu of suspension, an administrative penalty of
         up to <br/>
<a id="pl.53.9"></a><var>53.9</var>$1,000, or the value of the milk sold during the intended suspension period for each
         violation.<br/>
<a id="pl.53.10"></a><var>53.10</var>    Subd. 7. <b>Civil penalty.</b> A person other than a milk producer who causes milk to be <br/>
<a id="pl.53.11"></a><var>53.11</var>adulterated is subject to a civil penalty of up to $1,000.<br/>
<a id="pl.53.12"></a><var>53.12</var>    Subd. 8. <b>Appeals.</b> A dairy producer may appeal an adulteration violation by sending <br/>
<a id="pl.53.13"></a><var>53.13</var>written notice to the commissioner within ten days of receipt of the notice of a violation.
         <br/>
<a id="pl.53.14"></a><var>53.14</var>The appeal must contain a description of why the producer wishes to appeal the violation.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.53.15"></a><var>53.15</var>    Sec. 21. <b>[32D.20] LIMITATION ON SALE.</b><br/>
<a id="pl.53.16"></a><var>53.16</var>    Subdivision 1. <b>Pasteurization.</b> No milk or fluid milk products shall be sold, offered or <br/>
<a id="pl.53.17"></a><var>53.17</var>exposed for sale, or held in possession for sale for the purpose of human consumption
         in <br/>
<a id="pl.53.18"></a><var>53.18</var>fluid form in this state unless the milk or fluid milk product has been pasteurized
         and cooled, <br/>
<a id="pl.53.19"></a><var>53.19</var>as defined in section 32D.01, subdivision 15, provided that this section shall not
         apply to <br/>
<a id="pl.53.20"></a><var>53.20</var>milk, cream, or skim milk occasionally secured or purchased for personal use by a
         consumer <br/>
<a id="pl.53.21"></a><var>53.21</var>at the place or farm where the milk is produced.<br/>
<a id="pl.53.22"></a><var>53.22</var>    Subd. 2. <b>Labels.</b> (a) Pasteurized milk or fluid milk products offered or exposed for sale <br/>
<a id="pl.53.23"></a><var>53.23</var>or held in possession for sale shall be labeled or otherwise designated as pasteurized
         milk <br/>
<a id="pl.53.24"></a><var>53.24</var>or pasteurized fluid milk products, and in the case of fluid milk products the label
         shall also <br/>
<a id="pl.53.25"></a><var>53.25</var>state the name of the specific product.<br/>
<a id="pl.53.26"></a><var>53.26</var>(b) Milk and dairy products must be labeled with the plant number where the product
         <br/>
<a id="pl.53.27"></a><var>53.27</var>was produced, or if produced in a state where official plant numbers are not assigned,
         the <br/>
<a id="pl.53.28"></a><var>53.28</var>name of the manufacturer and the address of the plant where it was manufactured.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.53.29"></a><var>53.29</var>    Sec. 22. <b>[32D.21] COOLING AFTER PASTEURIZATION.</b><br/>
<a id="pl.53.30"></a><var>53.30</var>Immediately following pasteurization, all milk and fluid milk products shall be cooled
         <br/>
<a id="pl.53.31"></a><var>53.31</var>in properly operated equipment approved by the commissioner to a temperature of 45
         degrees <br/>
<a id="pl.53.32"></a><var>53.32</var>Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered;
         <br/>
<a id="pl.54.1"></a><var>54.1</var>provided, however, that if the milk or fluid milk product is to be cultured immediately
         after <br/>
<a id="pl.54.2"></a><var>54.2</var>pasteurization, then cooling may be delayed until after the culturing process is completed;
         <br/>
<a id="pl.54.3"></a><var>54.3</var>provided further that the commissioner may prescribe by rule standards more stringent
         than <br/>
<a id="pl.54.4"></a><var>54.4</var>those imposed by this section.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.54.5"></a><var>54.5</var>    Sec. 23. <b>[32D.22] MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS.</b><br/>
<a id="pl.54.6"></a><var>54.6</var>No person, firm, or corporation shall manufacture, transport, sell, offer, or expose
         for <br/>
<a id="pl.54.7"></a><var>54.7</var>sale or have in possession with intent to sell at retail to a consumer any cheese
         that has not <br/>
<a id="pl.54.8"></a><var>54.8</var>been (1) manufactured from milk or milk products that have been pasteurized; (2) subjected
         <br/>
<a id="pl.54.9"></a><var>54.9</var>to a heat treatment equivalent to pasteurization during the process of manufacturing
         or <br/>
<a id="pl.54.10"></a><var>54.10</var>processing; or (3) subjected to an aging process where it has been kept for at least
         60 days <br/>
<a id="pl.54.11"></a><var>54.11</var>after manufacture at a temperature no lower than 35 degrees Fahrenheit.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.54.12"></a><var>54.12</var>    Sec. 24. <b>[32D.23] RECOMBINANT BOVINE GROWTH HORMONE LABELING.</b><br/>
<a id="pl.54.13"></a><var>54.13</var>    Subdivision 1. <b>Labeling.</b> Products offered for wholesale or retail sale in this state that <br/>
<a id="pl.54.14"></a><var>54.14</var>contain milk, cream, or any product or by-product of milk or cream that have been
         processed <br/>
<a id="pl.54.15"></a><var>54.15</var>and handled pursuant to this section may be labeled with an rBGH statement that is
         not <br/>
<a id="pl.54.16"></a><var>54.16</var>false or misleading and in accordance with the federal labeling standards. Products
         offered <br/>
<a id="pl.54.17"></a><var>54.17</var>for wholesale or retail sale in this state need not contain any further label information
         relative <br/>
<a id="pl.54.18"></a><var>54.18</var>to the use of rBGH in milk production.<br/>
<a id="pl.54.19"></a><var>54.19</var>    Subd. 2. <b>Affidavit; records.</b> (a) A dairy plant purchasing milk or cream to be used in <br/>
<a id="pl.54.20"></a><var>54.20</var>products labeled with rBGH claims pursuant to subdivision 1 must provide an affidavit
         <br/>
<a id="pl.54.21"></a><var>54.21</var>from each producer that states that all cows used in the producer's dairy operations
         have <br/>
<a id="pl.54.22"></a><var>54.22</var>not and will not be treated with rBGH, without advanced written notice of at least
         30 days.<br/>
<a id="pl.54.23"></a><var>54.23</var>(b) The affidavit must be signed by the producer or authorized representative. Affidavits
         <br/>
<a id="pl.54.24"></a><var>54.24</var>must be kept on file for not less than two years after receiving written notice that
         rBGH use <br/>
<a id="pl.54.25"></a><var>54.25</var>status will change.<br/>
<a id="pl.54.26"></a><var>54.26</var>(c) If a plant chooses to process and handle only milk or milk products sourced from
         <br/>
<a id="pl.54.27"></a><var>54.27</var>cows who have not been treated with rBGH, the plant, as an alternative to providing
         <br/>
<a id="pl.54.28"></a><var>54.28</var>individual producer affidavits, may provide one affidavit to certify that the plant
         has <br/>
<a id="pl.54.29"></a><var>54.29</var>procedures in place to verify that all producers are not using rBGH. A copy of the
         written <br/>
<a id="pl.54.30"></a><var>54.30</var>procedure that describes this verification process must also be provided with the
         plant <br/>
<a id="pl.54.31"></a><var>54.31</var>affidavit.<br/>
<a id="pl.55.1"></a><var>55.1</var>(d) All affidavits and corresponding records must be available for inspection by the
         <br/>
<a id="pl.55.2"></a><var>55.2</var>commissioner.<br/>
<a id="pl.55.3"></a><var>55.3</var>(e) Dairy plants supplying milk or cream to a processor or manufacturer of a product
         to <br/>
<a id="pl.55.4"></a><var>55.4</var>be labeled pursuant to subdivision 1, for use in that product, shall supply a certification
         to <br/>
<a id="pl.55.5"></a><var>55.5</var>that processor or manufacturer stating that producers of the supplied milk or cream
         have <br/>
<a id="pl.55.6"></a><var>55.6</var>executed and delivered affidavits pursuant to this subdivision.<br/>
<a id="pl.55.7"></a><var>55.7</var>    Subd. 3. <b>Separation of nontreated cows and milk.</b> Milk or cream from <br/>
<a id="pl.55.8"></a><var>55.8</var>non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant
         <br/>
<a id="pl.55.9"></a><var>55.9</var>to subdivision 1 must be kept fully separate from any other milk or cream through
         all stages <br/>
<a id="pl.55.10"></a><var>55.10</var>of storage, transportation, and processing until the milk or resulting dairy products
         are in <br/>
<a id="pl.55.11"></a><var>55.11</var>final packaged form in a properly labeled container. Records of the separation must
         be kept <br/>
<a id="pl.55.12"></a><var>55.12</var>by the dairy plant and product processor or manufacturer at all stages and made available
         <br/>
<a id="pl.55.13"></a><var>55.13</var>to the commissioner for inspection.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.55.14"></a><var>55.14</var>    Sec. 25. <b>[32D.24] DAIRY TRADE PRACTICES; DEFINITIONS.</b><br/>
<a id="pl.55.15"></a><var>55.15</var>    Subdivision 1. <b>Application.</b> The definitions in this section apply to sections 32D.24 to <br/>
<a id="pl.55.16"></a><var>55.16</var>32D.28.<br/>
<a id="pl.55.17"></a><var>55.17</var>    Subd. 2. <b>Basic cost.</b> (a) "Basic cost," for a processor, means the actual cost of the raw <br/>
<a id="pl.55.18"></a><var>55.18</var>milk plus 75 percent of the actual processing and handling costs for a selected class
         I or <br/>
<a id="pl.55.19"></a><var>55.19</var>class II dairy product.<br/>
<a id="pl.55.20"></a><var>55.20</var>(b) Basic cost, for a wholesaler, means the actual cost of the selected class I or
         class II <br/>
<a id="pl.55.21"></a><var>55.21</var>dairy product purchased from the processor or another wholesaler.<br/>
<a id="pl.55.22"></a><var>55.22</var>(c) Basic cost, for a retailer, means the actual cost of the selected class I or class
         II dairy <br/>
<a id="pl.55.23"></a><var>55.23</var>product purchased from a processor or wholesaler.<br/>
<a id="pl.55.24"></a><var>55.24</var>    Subd. 3. <b>Bona fide charity.</b> "Bona fide charity" means a corporation, trust, fund, or <br/>
<a id="pl.55.25"></a><var>55.25</var>foundation organized and operated exclusively for religious, charitable, scientific,
         literary, <br/>
<a id="pl.55.26"></a><var>55.26</var>or educational purposes.<br/>
<a id="pl.55.27"></a><var>55.27</var>    Subd. 4. <b>Processor.</b> "Processor" means a person engaged in manufacturing or processing <br/>
<a id="pl.55.28"></a><var>55.28</var>selected class I or class II dairy products in the person's own plant for sale in
         Minnesota.<br/>
<a id="pl.55.29"></a><var>55.29</var>    Subd. 5. <b>Producer.</b> "Producer" means a person who operates a dairy herd or herds in <br/>
<a id="pl.55.30"></a><var>55.30</var>Minnesota producing milk or cream commercially and whose milk or cream is sold to,
         or <br/>
<a id="pl.55.31"></a><var>55.31</var>received or handled by, a distributor or processor. Producer does not include an incorporated
         <br/>
<a id="pl.55.32"></a><var>55.32</var>or unincorporated association of producers.<br/>
<a id="pl.56.1"></a><var>56.1</var>    Subd. 6. <b>Responsible person.</b> "Responsible person" means the business entity that <br/>
<a id="pl.56.2"></a><var>56.2</var>makes payment to an individual Grade A or Grade B milk producer.<br/>
<a id="pl.56.3"></a><var>56.3</var>    Subd. 7. <b>Selected class I dairy products.</b> "Selected class I dairy products" means milk <br/>
<a id="pl.56.4"></a><var>56.4</var>for human consumption in fluid form and all other class I dairy products as defined
         by the <br/>
<a id="pl.56.5"></a><var>56.5</var>Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40,
         <br/>
<a id="pl.56.6"></a><var>56.6</var>or successor orders.<br/>
<a id="pl.56.7"></a><var>56.7</var>    Subd. 8. <b>Selected class II dairy products.</b> "Selected class II dairy products" means <br/>
<a id="pl.56.8"></a><var>56.8</var>milk for human consumption processed into fluid cream, eggnog, yogurt, and all other
         class <br/>
<a id="pl.56.9"></a><var>56.9</var>II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal
         <br/>
<a id="pl.56.10"></a><var>56.10</var>Regulations, title 7, part 1030.40, or successor orders.<br/>
<a id="pl.56.11"></a><var>56.11</var>    Subd. 9. <b>Sell at retail; sale at retail; retail sales.</b> "Sell at retail," "sale at retail," or <br/>
<a id="pl.56.12"></a><var>56.12</var>"retail sales" means a retail sale or offer for retail sale of a selected class I
         or class II dairy <br/>
<a id="pl.56.13"></a><var>56.13</var>product for ultimate consumption or use.<br/>
<a id="pl.56.14"></a><var>56.14</var>    Subd. 10. <b>Sell at wholesale; sale at wholesale; wholesale sales.</b> "Sell at wholesale," <br/>
<a id="pl.56.15"></a><var>56.15</var>"sale at wholesale," or "wholesale sales" means sale or offer for sale of a selected
         class I <br/>
<a id="pl.56.16"></a><var>56.16</var>dairy product for purposes of resale or further processing or manufacturing but does
         not <br/>
<a id="pl.56.17"></a><var>56.17</var>include a producer selling or delivering milk to a processor.<br/>
<a id="pl.56.18"></a><var>56.18</var>    Subd. 11. <b>Wholesaler.</b> "Wholesaler" means a person including a distributor in the <br/>
<a id="pl.56.19"></a><var>56.19</var>business of making sales of selected class I or class II dairy products at wholesale
         in <br/>
<a id="pl.56.20"></a><var>56.20</var>Minnesota. In the case of a person making sales at both retail and wholesale, wholesaler
         <br/>
<a id="pl.56.21"></a><var>56.21</var>applies only to the sales at wholesale.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.56.22"></a><var>56.22</var>    Sec. 26. <b>[32D.25] DUTIES AND POWERS OF COMMISSIONER; DATA PRIVACY.</b><br/>
<a id="pl.56.23"></a><var>56.23</var>    Subdivision 1. <b>Duties; rules.</b> The commissioner shall adopt rules to implement and <br/>
<a id="pl.56.24"></a><var>56.24</var>administer sections 32D.24 to 32D.28.<br/>
<a id="pl.56.25"></a><var>56.25</var>    Subd. 2. <b>Data privacy.</b> Financial and production information received by the <br/>
<a id="pl.56.26"></a><var>56.26</var>commissioner on processors, wholesalers, or retailers, including but not limited to
         financial <br/>
<a id="pl.56.27"></a><var>56.27</var>statements, fee reports, price schedules, cost documentation, books, papers, records,
         or other <br/>
<a id="pl.56.28"></a><var>56.28</var>documentation for the purpose of administration and enforcement of this chapter is
         classified <br/>
<a id="pl.56.29"></a><var>56.29</var>private data or nonpublic data pursuant to chapter 13. The classification shall not
         limit the <br/>
<a id="pl.56.30"></a><var>56.30</var>use of the information in the preparation, institution, or conduct of a legal proceeding
         by <br/>
<a id="pl.56.31"></a><var>56.31</var>the commissioner in enforcing this chapter.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.57.1"></a><var>57.1</var>    Sec. 27. <b>[32D.26] SALES BELOW COST PROHIBITED; EXCEPTIONS.</b><br/>
<a id="pl.57.2"></a><var>57.2</var>    Subdivision 1. <b>Policy; processors; wholesalers; retailers.</b> (a) It is the intent of the <br/>
<a id="pl.57.3"></a><var>57.3</var>legislature to accomplish partial deregulation of milk marketing with a minimum negative
         <br/>
<a id="pl.57.4"></a><var>57.4</var>impact on small-volume retailers.<br/>
<a id="pl.57.5"></a><var>57.5</var>(b) A processor or wholesaler may not sell or offer for sale selected class I or class
         II <br/>
<a id="pl.57.6"></a><var>57.6</var>dairy products at a price lower than the processor's or wholesaler's basic cost.<br/>
<a id="pl.57.7"></a><var>57.7</var>(c) A retailer may not sell or offer for sale selected class I or class II dairy products
         at <br/>
<a id="pl.57.8"></a><var>57.8</var>a retail price lower than (1) 105 percent of the retailer's basic cost until June
         30, 1994; and <br/>
<a id="pl.57.9"></a><var>57.9</var>(2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may
         not use <br/>
<a id="pl.57.10"></a><var>57.10</var>any method or device in the sale or offer for sale of a selected dairy product that
         results in <br/>
<a id="pl.57.11"></a><var>57.11</var>a violation of this section.<br/>
<a id="pl.57.12"></a><var>57.12</var>    Subd. 2. <b>Exceptions.</b> The minimum processor, wholesaler, and retailer prices of <br/>
<a id="pl.57.13"></a><var>57.13</var>subdivision 1 do not apply:<br/>
<a id="pl.57.14"></a><var>57.14</var>(1) to a sale complying with section 325D.06;<br/>
<a id="pl.57.15"></a><var>57.15</var>(2) to a retailer giving away selected class I and class II dairy products for free
         if the <br/>
<a id="pl.57.16"></a><var>57.16</var>customer is not required to make a purchase; or<br/>
<a id="pl.57.17"></a><var>57.17</var>(3) to a processor, wholesaler, or retailer giving away selected class I and class
         II dairy <br/>
<a id="pl.57.18"></a><var>57.18</var>products for free or at a reduced cost to a bona fide charity.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.57.19"></a><var>57.19</var>    Sec. 28. <b>[32D.27] REDRESS FOR INJURY OR THREATENED INJURY.</b><br/>
<a id="pl.57.20"></a><var>57.20</var>A person injured by a violation of sections 32D.24 to 32D.28 may commence a legal
         <br/>
<a id="pl.57.21"></a><var>57.21</var>action based on the violation in a court of competent jurisdiction and may recover
         economic <br/>
<a id="pl.57.22"></a><var>57.22</var>damages and the costs of the action, including reasonable attorney fees. A person
         injured <br/>
<a id="pl.57.23"></a><var>57.23</var>or who is threatened with injury or loss by reason of violation of sections 32D.24
         to 32D.28 <br/>
<a id="pl.57.24"></a><var>57.24</var>may commence a legal action based on the violation and obtain injunctive relief in
         a court <br/>
<a id="pl.57.25"></a><var>57.25</var>of competent jurisdiction against persons involved in a violation or threatened violation
         of <br/>
<a id="pl.57.26"></a><var>57.26</var>sections 32D.24 to 32D.28 to prevent and restrain violations or threatened violations
         of <br/>
<a id="pl.57.27"></a><var>57.27</var>sections 32D.24 to 32D.28 without alleging or proving actual damages or that an adequate
         <br/>
<a id="pl.57.28"></a><var>57.28</var>remedy at law does not exist, so that injunctive relief can be obtained promptly and
         without <br/>
<a id="pl.57.29"></a><var>57.29</var>awaiting evidence of injury or actual damage. The injunctive relief does not abridge
         and is <br/>
<a id="pl.57.30"></a><var>57.30</var>not in lieu of any other civil remedy provided in sections 32D.24 to 32D.28.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.58.1"></a><var>58.1</var>    Sec. 29. <b>[32D.28] ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT.</b><br/>
<a id="pl.58.2"></a><var>58.2</var>The provisions of section 32D.26 are suspended during the month of June each year
         in <br/>
<a id="pl.58.3"></a><var>58.3</var>honor of "Dairy Month."<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.58.4"></a><var>58.4</var>    Sec. 30. <b>REPEALER.</b><br/>
<a id="pl.58.5"></a><var>58.5</var>Minnesota Statutes 2016, sections 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, and 12;
         32.021; <br/>
<a id="pl.58.6"></a><var>58.6</var>32.071; 32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105;
         <br/>
<a id="pl.58.7"></a><var>58.7</var>32.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, and
         3; 32.392; <br/>
<a id="pl.58.8"></a><var>58.8</var>32.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, and
         12; 32.395; <br/>
<a id="pl.58.9"></a><var>58.9</var>32.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, and 5; 32.415; 32.416;
         32.475; <br/>
<a id="pl.58.10"></a><var>58.10</var>32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3,
         4, 5, 12, <br/>
<a id="pl.58.11"></a><var>58.11</var>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; <br/>
<a id="pl.58.12"></a><var>58.12</var>32.745; 32.75; and 32.90, are repealed.<br/>