1.1 	A bill for an act
1.2 	relating to agriculture; making changes to seed fee permit law; making changes 
1.3 	to perishable food products provisions; making technical and policy changes; 
1.4 	providing agriculture-related grants; appropriating money;amending Minnesota 
1.5 	Statutes 2018, sections 21.891, subdivision 2; 27.001; 27.01; 27.03, subdivisions 
1.6 	3, 4; 27.0405, subdivision 1; 27.06; 27.07; 27.08; 27.09; 27.10; 27.11; 27.13; 
1.7 	27.131; 27.133; 27.137, subdivisions 5, 7, 9, 10; 27.138; 27.19, subdivision 1; 
1.8 	31.175; Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision 
1.9 	4; repealing Minnesota Statutes 2018, sections 13.6435, subdivision 5; 27.03, 
1.10 	subdivision 1; 27.04; 27.041.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	PERISHABLE FARM PRODUCTS

1.14 	Section 1. Minnesota Statutes 2018, section 21.891, subdivision 2, is amended to read:
1.15 		Subd. 2.Seed fee permits. (a) An initial A labeler who wishes to sell seed in Minnesota 
1.16 	must comply with section 21.89, subdivisions 1 and 2, and the procedures in this subdivision. 
1.17 	Each initial labeler who wishes to sell seed in Minnesota must apply to the commissioner 
1.18 	to obtain a permit. The application must contain the name and address of the applicant, the 
1.19 	application date, and the name and title of the applicant's contact person. Permit fees are 
1.20 	based on the initial sale of seed in Minnesota.
1.21 	(b) The application for a seed permit covered by section 21.89, subdivision 2, clause 
1.22 	(1), must be accompanied by an application fee of $75.
1.23 	(c) The application for a seed permit covered by section 21.89, subdivision 2, clause 
1.24 	(2), must be accompanied by an application fee based on the level of annual gross sales as 
1.25 	follows:
2.1 	(1) for gross sales of $0 to $25,000, the annual permit fee is $75;
2.2 	(2) for gross sales of $25,001 to $50,000, the annual permit fee is $150;
2.3 	(3) for gross sales of $50,001 to $100,000, the annual permit fee is $300;
2.4 	(4) for gross sales of $100,001 to $250,000, the annual permit fee is $750;
2.5 	(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,500;
2.6 	(6) for gross sales of $500,001 to $1,000,000, the annual permit fee is $3,000; and
2.7 	(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.
2.8 	(d) The application for a seed permit covered by section 21.89, subdivision 2, clause 
2.9 	(3), must be accompanied by an application fee of $75. Initial Labelers holding seed fee 
2.10 	permits covered under this paragraph need not apply for a new permit or pay the application 
2.11 	fee. Under this permit category, the fees for the following kinds of agricultural seed sold 
2.12 	either in bulk or containers are:
2.13 	(1) oats, wheat, and barley, 9 cents per hundredweight;
2.14 	(2) rye, field beans, buckwheat, and flax, 12 cents per hundredweight;
2.15 	(3) field corn, 17 cents per 80,000 seed unit;
2.16 	(4) forage, hemp, lawn and turf grasses, and legumes, 69 cents per hundredweight;
2.17 	(5) sunflower, $1.96 per hundredweight;
2.18 	(6) sugar beet, 12 cents per 100,000 seed unit;
2.19 	(7) soybeans, 7.5 cents per 140,000 seed unit; and
2.20 	(8) for any agricultural seed not listed in clauses (1) to (7), the fee for the crop most 
2.21 	closely resembling it in normal planting rate applies.; and
2.22 	(9) for native grasses and wildflower seed, $1 per hundredweight.
2.23 	(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is shipped 
2.24 	into Minnesota by a person other than the initial labeler, the responsibility for the seed fees 
2.25 	are transferred to the shipper. An application for a transfer of this responsibility must be 
2.26 	made to the commissioner. Upon approval by the commissioner of the transfer, the shipper 
2.27 	is responsible for payment of the seed permit fees.
2.28 	(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or as 
2.29 	a line item cost on each invoice for seed sold. To identify the fee on an invoice, the words 
2.30 	"Minnesota seed permit fees" must be used.
3.1 	(g) All seed fee permit holders must file semiannual reports with the commissioner, 
3.2 	even if no seed was sold during the reporting period. Each semiannual report must be 
3.3 	submitted within 30 days of the end of each reporting period. The reporting periods are 
3.4 	October 1 to March 31 and April 1 to September 30 of each year or July 1 to December 31 
3.5 	and January 1 to June 30 of each year. Permit holders may change their reporting periods 
3.6 	with the approval of the commissioner.
3.7 	(h) The holder of a seed fee permit must pay fees on all seed for which the permit holder 
3.8 	is the initial labeler and which are covered by sections 21.80 to 21.92 and sold during the 
3.9 	reporting period.
3.10 	(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed fee 
3.11 	within 30 days after the end of each reporting period, the commissioner shall assess a penalty 
3.12 	of $100 or eight percent, calculated on an annual basis, of the fee due, whichever is greater, 
3.13 	but no more than $500 for each late semiannual report. A $15 penalty must be charged when 
3.14 	the semiannual report is late, even if no fee is due for the reporting period. Seed fee permits 
3.15 	may be revoked for failure to comply with the applicable provisions of this paragraph or 
3.16 	the Minnesota seed law.

3.17 	Sec. 2. Minnesota Statutes 2018, section 27.001, is amended to read:
3.18 	27.001 PUBLIC POLICY.
3.19 	The legislature recognizes that perishable agricultural farm products are important 
3.20 	sources of revenue to a large number of citizens of this state engaged in producing, 
3.21 	processing, manufacturing, or selling such products and that such products cannot be 
3.22 	repossessed in case of default. It is therefore declared to be the policy of the legislature that 
3.23 	certain financial protection be afforded those who are producers on the farm; farmer 
3.24 	cooperatives which are not wholesale produce dealers as described in section 27.01, 
3.25 	subdivision 8; and licensed wholesale produce dealers, including the retail merchant 
3.26 	purchasing produce directly from farmers and suppliers of perishable farm products. The 
3.27 	provisions of this chapter which relate to perishable agricultural commodities shall be 
3.28 	liberally construed to achieve these ends and shall be administered and enforced with a view 
3.29 	to carrying out the above declaration of policy. A person who handles perishable farm 
3.30 	products in a manner described under this chapter is required to comply with all applicable 
3.31 	rules adopted by the commissioner.

4.1 	Sec. 3. Minnesota Statutes 2018, section 27.01, is amended to read:
4.2 	27.01 DEFINITIONS.
4.3 		Subd. 2.Produce Perishable farm products. "Produce" "Perishable farm products"
4.4 	means:
4.5 	(1) perishable produce, including fresh fruits and, vegetables, and mushrooms;
4.6 	(2) milk and cream and products manufactured from milk and cream; and
4.7 	(3) poultry and poultry products, including eggs.
4.8 		Subd. 4.Voluntary extension of credit. The term "voluntary extension of credit" means 
4.9 	a written agreement between the a seller and the licensee a buyer wherein the time of payment 
4.10 	for the purchase price of produce perishable farm products is extended beyond the a due 
4.11 	date.
4.12 		Subd. 5.Due date. (a) "Due date" means ten 30 days from the date of delivery of produce
4.13 	perishable farm products by the a seller to the licensee a buyer if the due date is not specified 
4.14 	in the contract. For purposes of this definition a signed invoice with a due date is a contract.
4.15 	(b) If produce is perishable farm products are consigned, "due date" means ten 30 days 
4.16 	from the date the sale is made by the broker or handler, except as to milk processing plants, 
4.17 	where the due date means 15 days following the monthly day of accounting subsequent to 
4.18 	deliveries following the date fixed by each milk processing plant for that accounting.
4.19 		Subd. 7.Commissioner. "Commissioner" means the commissioner of the Department 
4.20 	of agriculture.
4.21 		Subd. 8.Wholesale produce Farm products dealer. (a) "Wholesale produce dealer" 
4.22 	or "dealer at wholesale" "Farm products dealer," "dealer of farm products," or "dealer"
4.23 	means:
4.24 	(1) a any person operating as a retail food handler, wholesale food handler, wholesale 
4.25 	food processor or manufacturer, or food broker who buys from or contracts with a seller 
4.26 	for production or sale of produce in wholesale lots perishable farm products for resale;.
4.27 	(2) a person engaging in the business of a broker or agent, who handles or deals in 
4.28 	produce for a commission or fee;
4.29 	(3) a truck owner or operator who buys produce in wholesale lots for resale; and
4.30 	(4) a person engaged in the business of a cannery, food manufacturer, or food processor, 
4.31 	who purchases produce in wholesale lots as a part of that business.
5.1 	(b) For purposes of paragraph (a), "wholesale lots" means purchases from Minnesota 
5.2 	sellers must total more than $12,000 annually.
5.3 	(c) "Wholesale produce dealer" or "dealer at wholesale" (b) "Farm products dealer," 
5.4 	"dealer of farm products," or "dealer" does not include:
5.5 	(1) a truck owner and operator who regularly engages in the business of transporting 
5.6 	freight, including produce perishable farm products, for a transportation fee only, and who 
5.7 	does not purchase, contract to purchase, or sell produce;
5.8 	(2) a marketing cooperative association in which substantially all of the voting stock is 
5.9 	held by patrons who patronize the association and in which at least 75 percent of the business 
5.10 	of the association is transacted with member or stockholder patrons;
5.11 	(3) a person who purchases Minnesota seasonally grown perishable fresh fruits and 
5.12 	vegetables, perishable farm products and pays in cash, including lawful money of the United 
5.13 	States, a cashier's check, a certified check, or a bank draft; or
5.14 	(4) a person who handles and deals in only canned, packaged, or processed produce or 
5.15 	packaged dairy perishable farm products that are no longer perishable as determined by the 
5.16 	commissioner by rule; or.
5.17 	(5) retail merchants who purchase produce, defined in subdivision 2, directly from 
5.18 	farmers, which in the aggregate does not exceed $500 per month.
5.19 		Subd. 10.Seller. "Seller" means a farmer or wholesale produce dealer perishable farm 
5.20 	products supplier, whether the person is the owner of the produce perishable farm products
5.21 	or produces it for another person who holds title to it.
5.22 		Subd. 11.Person. "Person" has the meaning given in section 34A.01, subdivision 10.
5.23 		Subd. 12.Miscellaneous terms. "Retail food handler," "wholesale food handler," 
5.24 	"wholesale food processor or manufacturer," and "food broker" have the meanings given 
5.25 	in section 28A.05.

5.26 	Sec. 4. Minnesota Statutes 2018, section 27.03, subdivision 3, is amended to read:
5.27 		Subd. 3.Brokers. (a) A wholesale produce farm products dealer operating as a broker, 
5.28 	upon negotiating the sale of perishable farm products, shall must issue to both buyer and 
5.29 	seller a written memorandum of sale before the close of the next business day showing the
5.30 	price, date of delivery, quality, and other details of the transaction.
5.31 	(b) The memorandum required in paragraph (a) must have an individual identifying 
5.32 	number printed upon it. Numbers must be organized and printed on the memoranda so that 
6.1 	each memorandum can be identified and accounted for sequentially. Unused or damaged 
6.2 	memoranda must be retained by the broker for accounting purposes.
6.3 	(c) A wholesale produce dealer operating as a broker may not alter the terms of a 
6.4 	transaction specified on the original memorandum of sale required in paragraph (a) without 
6.5 	the consent of both parties to the transaction. Upon making a change, the broker is required 
6.6 	to issue a clearly marked corrected memorandum of sale indicating the date and time when 
6.7 	the adjustment or change was made. The broker shall transmit the corrected memorandum 
6.8 	to both the buyer and seller before the close of the next business day.

6.9 	Sec. 5. Minnesota Statutes 2018, section 27.03, subdivision 4, is amended to read:
6.10 		Subd. 4.Payments for produce perishable farm products. If there is a contract between 
6.11 	a seller and a wholesale produce farm products dealer to buy produce perishable farm 
6.12 	products, the wholesale produce farm products dealer must pay for the produce that is
6.13 	perishable farm products delivered to the wholesale produce farm products dealer at the 
6.14 	time and in the manner specified in the contract with the seller. If the due date is not set by 
6.15 	the contract, the wholesale produce farm products dealer shall must pay for the produce by 
6.16 	ten perishable farm products within 30 days after delivery or taking possession of the produce
6.17 	perishable farm products. A payment received after the due date must include payment of 
6.18 	12 percent annual interest prorated for the number of days past the due date.

6.19 	Sec. 6. Minnesota Statutes 2018, section 27.0405, subdivision 1, is amended to read:
6.20 		Subdivision 1.Production and review of information. (a) Upon special order, the 
6.21 	commissioner may require persons engaged in the business of a farm products dealer at 
6.22 	wholesale to file at the time and in the manner the commissioner directs, sworn or unsworn 
6.23 	reports or answers in writing to specific questions on any matter which the commissioner 
6.24 	may investigate.
6.25 	(b) For the purposes of this section, the commissioner or the commissioner's authorized 
6.26 	agents may audit and review any records relating to the financial condition of any farm 
6.27 	products dealer at wholesale and any transactions between the dealer and persons entitled 
6.28 	to the protections of this chapter, if the records are in the possession of or under the case, 
6.29 	custody, or control of the dealer or the dealer's authorized agent.

7.1 	Sec. 7. Minnesota Statutes 2018, section 27.06, is amended to read:
7.2 	27.06 COMPLAINTS TO COMMISSIONER, HEARING; ACTION ON BOND.
7.3 	A person claiming to be damaged by a breach of the conditions of a bond given by a 
7.4 	licensee sales contract may submit a complaint to the commissioner within 40 days after 
7.5 	the due date. The complaint must be a written statement of the facts constituting the 
7.6 	complaint. After receiving a filed complaint, the commissioner shall must investigate the 
7.7 	charges made and may have the matter heard as a contested case pursuant to chapter 14 if 
7.8 	an affected party requests a hearing.

7.9 	Sec. 8. Minnesota Statutes 2018, section 27.07, is amended to read:
7.10 	27.07 GRADES ESTABLISHED; INSPECTION.
7.11 		Subdivision 1.Commissioner's power. The commissioner shall have power to establish 
7.12 	grades on all produce perishable farm products and when deemed necessary shall provide 
7.13 	for inspecting and grading produce perishable farm products subject to sale at such marketing 
7.14 	points within the state as the commissioner may designate.
7.15 		Subd. 2.Certificates. The commissioner shall provide for the issuing of issue certificates 
7.16 	of inspection showing the grade, quality, and conditions of the produce perishable farm 
7.17 	products, and may charge and collect a reasonable fee therefor, a schedule thereof to be 
7.18 	adopted and published from time to time. Such certificates for the issuance of a certificate 
7.19 	of inspection. A certificate of inspection shall be is prima facie evidence in all courts of this 
7.20 	state as to the grade, quality, and condition of the produce perishable farm products at the 
7.21 	time the inspection was made.
7.22 		Subd. 3.Application for inspector's services. Any person who wants produce perishable 
7.23 	farm products or a perishable farm products sales transaction to be inspected may apply to 
7.24 	the commissioner for the service of an inspector and, if it appears to the commissioner that 
7.25 	the perishable farm products volume of the produce is sufficient to justify the request, the 
7.26 	commissioner may grant the service upon terms and conditions fixed by the commissioner 
7.27 	and this section.
7.28 		Subd. 4.Deposit agreement. The commissioner may require an agreement, prior to the 
7.29 	establishment of the inspection service, requiring the user of the inspection service to at all 
7.30 	times have on deposit with the department a sufficient amount of money to pay the estimated 
7.31 	costs of such inspection service for a period of not less than 15 days in advance. When any 
7.32 	such agreement shall terminate by action of either party thereto, the commissioner shall pay 
8.1 	to the depositor any money remaining to the depositor's credit after the deduction of the 
8.2 	costs at the time such agreement terminates.
8.3 		Subd. 5.Fees. Fees for inspection shall be determined by the commissioner and shall 
8.4 	be reviewed and adjusted every six months. In determining the fees to be charged, the 
8.5 	commissioner shall take into consideration fees charged in other states offering similar 
8.6 	inspection services to the end that the fees charged will provide a competitive marketing 
8.7 	position for Minnesota produce perishable farm products.
8.8 		Subd. 6.Cooperative agreements; fees; account. The commissioner may collect fees 
8.9 	as provided for in cooperative agreements between the commissioner and the United States 
8.10 	Department of Agriculture for the inspection of fresh fruits, vegetables, and other perishable 
8.11 	farm products. The fees and interest attributable to money in the account must be deposited 
8.12 	in the agricultural fund and credited to a fruit and vegetables inspection account. Money in 
8.13 	the account, including interest earned, is appropriated to the commissioner to administer 
8.14 	the cooperative agreements.

8.15 	Sec. 9. Minnesota Statutes 2018, section 27.08, is amended to read:
8.16 	27.08 FILING BRAND OR LABEL; PERMIT.
8.17 	Any person producing, manufacturing, or handling, perishable farm products in this 
8.18 	state, any of the products mentioned in section 27.01, except cheese and butter, and preparing, 
8.19 	packing, and offering the same perishable farm products for sale, may file with the 
8.20 	commissioner a brand or label, and. The applicant may place upon this brand or label such
8.21 	a descriptive or locative matter, as shall be approved by the commissioner. The commissioner 
8.22 	may issue to such an applicant for brands and labels a permit to use the same, subject to 
8.23 	such the rules and restrictions as to quality of product so branded as the commissioner may 
8.24 	determine. The brand or label shall be recorded in the office of the commissioner and any 
8.25 	person who shall, without authority of the commissioner, brand and label therewith products 
8.26 	or commodities of a quality below the standard permitted under the brand or label, shall be 
8.27 	subject to the penal provisions of section 27.19.

8.28 	Sec. 10. Minnesota Statutes 2018, section 27.09, is amended to read:
8.29 	27.09 INSPECTION CERTIFICATE.
8.30 	When produce is perishable farm products are ready for sale, or is on its are on the way 
8.31 	to market, the owner thereof, or the conveyor, or the prospective buyer, or any other interested 
8.32 	party, person with an interest in the perishable farm products may call for and shall be 
9.1 	entitled to  request an inspection of such produce and to an inspection certificate, as provided 
9.2 	for inthe perishable farm products under section 27.07.

9.3 	Sec. 11. Minnesota Statutes 2018, section 27.10, is amended to read:
9.4 	27.10 PRODUCE EXAMINED, WHEN PERISHABLE FARM PRODUCTS 
9.5 	EXAMINATION.
9.6 	(a) When produce is perishable farm products are shipped to or received by a farm 
9.7 	products dealer at wholesale for handling, purchase, or sale in this state at any market point 
9.8 	therein giving inspection service, as provided for in section 27.07, and the farm products
9.9 	dealer at wholesale finds the same perishable farm products to be in a spoiled, damaged, 
9.10 	unmarketable, or unsatisfactory condition, unless both parties shall waive inspection before 
9.11 	sale or other disposition thereof, the dealer shall cause the same to be must have the 
9.12 	perishable farm products examined by an inspector assigned by the commissioner for that 
9.13 	purpose, and. The inspector shall must execute and deliver a certificate to the applicant 
9.14 	thereof farm products dealer stating the day, the time and place of the inspection, and the 
9.15 	condition of the produce and mail or deliver a copy of the certificate to the shipper thereof
9.16 	of the perishable farm products.
9.17 	(b) This section does not apply when the parties to the perishable farm products sales 
9.18 	contract waive the inspection requirement.

9.19 	Sec. 12. Minnesota Statutes 2018, section 27.11, is amended to read:
9.20 	27.11 SHIPMENTS ON CONSIGNMENT.
9.21 	When any farm products dealer at wholesale to whom produce has perishable farm 
9.22 	products have been shipped or consigned for sale on a commission basis or on consignment 
9.23 	or under any circumstances wherein where the title to the produce perishable farm products
9.24 	remains with the shipper, has received the same, the dealer shall must, within a reasonable 
9.25 	time thereafter, make a written, report to the shipper, which report shall include the exact 
9.26 	time of arrival, and the quantity, quality, and price per unit of the produce and at the same 
9.27 	time shall perishable farm products. The dealer must pay the shipper the net amount due at 
9.28 	the time the report required under this section is made.

10.1 	Sec. 13. Minnesota Statutes 2018, section 27.13, is amended to read:
10.2 	27.13 INVESTIGATION OF COMPLAINTS; SUSPENSION OR REVOCATION 
10.3 	OF LICENSE.
10.4 	(a) The commissioner is authorized to: (1) receive complaints against any persons person
10.5 	dealing in, shipping, transporting, storing, or selling produce, and shall have authority to
10.6 	perishable farm products; (2) make any and all necessary investigations relative to the 
10.7 	handling of, or storing, shipping, or dealing in produce at wholesale and shall, at all times, 
10.8 	have access to perishable farm products; and (3) enter with reasonable notice all buildings, 
10.9 	yards, warehouses, storage and transportation facilities in which any produce is perishable 
10.10 	farm products are kept, stored, handled or transacted. For the purpose of enforcing the 
10.11 	provisions of sections 27.01 to 27.14 and 27.19, the commissioner shall have the authority, 
10.12 	upon complaint being filed for any alleged violation of the provisions thereof, or the rules 
10.13 	issued thereunder, or upon information furnished by an inspector of the Department of 
10.14 	Agriculture, to suspend while violation continues or revoke any license issued by the 
10.15 	commissioner upon ten days notice to the licensee and an opportunity to be heard. Where 
10.16 	the public interest requires it the commissioner may suspend a license after such notice 
10.17 	pending hearing and decision.
10.18 	(b) The commissioner shall have, and is hereby granted, full authority to may: (1) issue 
10.19 	subpoenas requiring the attendance of witnesses before the commissioner, with books, 
10.20 	papers, and other documents, articles, or instruments, and to; (2) compel the disclosure by 
10.21 	such witnesses of all facts known to them relative to the a matter under investigation, and 
10.22 	shall have full authority to; and (3) administer oaths and to take testimony; and.
10.23 	(c) The commissioner shall thereafter give the must provide a complainant a written 
10.24 	report of the investigation conducted under this section. Such report shall be The report is
10.25 	prima facie evidence of the matters therein contained in the report. All parties disobeying 
10.26 	the orders or subpoenas of the commissioner shall be A party violating a commissioner's 
10.27 	order or subpoena is guilty of contempt as in proceedings in district courts of the state and 
10.28 	may be punished in like manner.

10.29 	Sec. 14. Minnesota Statutes 2018, section 27.131, is amended to read:
10.30 	27.131 MEDIATION AND ARBITRATION.
10.31 	A contract for produce perishable farm products between a buyer and a seller must 
10.32 	contain language providing for resolution of contract disputes by either mediation or 
10.33 	arbitration. If there is a contract dispute, either party may make a written request to the 
11.1 	department commissioner for mediation or arbitration, as specified in the contract to facilitate 
11.2 	resolution of the dispute.

11.3 	Sec. 15. Minnesota Statutes 2018, section 27.133, is amended to read:
11.4 	27.133 PARENT COMPANY LIABILITY.
11.5 	If a wholesale produce farm products dealer is a subsidiary of another corporation, 
11.6 	partnership, or association, the parent corporation, partnership, or association is liable to a 
11.7 	seller for the amount of any unpaid claim or contract performance claim if the wholesale 
11.8 	produce farm products dealer fails to pay or perform according to the terms of the contract 
11.9 	and this chapter.

11.10 	Sec. 16. Minnesota Statutes 2018, section 27.137, subdivision 5, is amended to read:
11.11 		Subd. 5.Proceeds. "Proceeds" means whatever is received upon the sale, exchange, 
11.12 	collection, or transfer of produce, products of produce, or proceeds from the produce or 
11.13 	products of produce perishable farm products or manufactured farm products.

11.14 	Sec. 17. Minnesota Statutes 2018, section 27.137, subdivision 7, is amended to read:
11.15 		Subd. 7.Products of produce Manufactured farm products. "Products of produce"
11.16 	"Manufactured farm products" means products derived from produce perishable farm 
11.17 	products through manufacturing, processing, or packaging.

11.18 	Sec. 18. Minnesota Statutes 2018, section 27.137, subdivision 9, is amended to read:
11.19 		Subd. 9.Trust assets. "Trust assets" means produce, products of produce, and proceeds 
11.20 	from the produce or products of produce perishable farm products or manufactured farm 
11.21 	products and proceeds from the perishable or manufactured farm products.

11.22 	Sec. 19. Minnesota Statutes 2018, section 27.137, subdivision 10, is amended to read:
11.23 		Subd. 10.Wholesale produce Farm products dealer. "Wholesale produce Farm 
11.24 	products dealer" has the meaning given in section 27.01, subdivision 8, and includes the 
11.25 	person whether or not the person is licensed.

11.26 	Sec. 20. Minnesota Statutes 2018, section 27.138, is amended to read:
11.27 	27.138 WHOLESALE PRODUCE FARM PRODUCTS DEALERS' TRUST.
11.28 		Subdivision 1.Trust establishment and maintenance. (a) The produce and products 
11.29 	of produce of a wholesale produce dealer A farm products dealer's perishable farm products 
12.1 	and manufactured farm products and proceeds related to the sale of a farm products dealer's 
12.2 	perishable farm products or manufactured farm products are held in trust for the benefit of 
12.3 	unpaid sellers.
12.4 	(b) The trust assets are to be maintained as a nonsegregated floating trust. Commingling 
12.5 	of the trust assets is contemplated.
12.6 	(c) The wholesale produce farm products dealer must maintain the trust assets in a 
12.7 	manner that makes the trust assets freely available to satisfy the amounts owed to unpaid 
12.8 	sellers and may not divert trust assets in a manner that impairs the ability of unpaid sellers 
12.9 	to recover amounts due.
12.10 	(d) A wholesale produce farm products dealer must maintain the trust assets in trust until 
12.11 	payment has been made in full to unpaid sellers. Payment is not made if a seller receives a 
12.12 	payment instrument that is dishonored.
12.13 	(e) A wholesale produce farm products dealer holds trust assets in trust for the seller, 
12.14 	except that the wholesale produce farm products dealer may transfer title to trust assets if 
12.15 	the proceeds of the transfer are maintained as trust assets. Until a seller is paid, a wholesale 
12.16 	produce farm products dealer does must not transfer title to trust assets:
12.17 	(1) in a transaction made to another wholesale produce farm products dealer;
12.18 	(2) in a transaction intended to impair the ability of unpaid sellers to recover amounts 
12.19 	due; or
12.20 	(3) for which the value is inadequate to satisfy filed beneficiaries notices.
12.21 		Subd. 2.Sellers' rights to trust assets. (a) An unpaid seller may recover trust assets for 
12.22 	the net amount unpaid after the due date after allowing deductions of contemplated expenses 
12.23 	or advances made in connection with the transaction. An amount is considered unpaid if a 
12.24 	seller receives a payment instrument that is dishonored.
12.25 	(b) An unpaid seller may recover trust assets after filing a beneficiaries notice with the 
12.26 	wholesale produce farm products dealer to whom the produce was perishable farm products 
12.27 	were transferred and the commissioner, and after filing in the central filing system under 
12.28 	section 336.9-501 as if the trust were a security interest in the trust assets by 40 days after 
12.29 	the due date for the payment to the seller or 40 days after a payment instrument to the seller 
12.30 	for the produce perishable farm products is dishonored, whichever is later.
12.31 		Subd. 3.Beneficiaries notice. (a) A beneficiaries notice must be in writing and in a 
12.32 	form prescribed by the commissioner.
13.1 	(b) The beneficiaries notice must contain:
13.2 	(1) the name and address of the seller;
13.3 	(2) the name and address of the wholesale produce farm products dealer maintaining 
13.4 	the trust assets;
13.5 	(3) the produce perishable farm products, amount of produce product, amount to be paid 
13.6 	the seller, and the due date of transactions that are unpaid or, if appropriate, the date a 
13.7 	payment instrument was dishonored; and
13.8 	(4) a description of the trust assets.
13.9 	(c) The filing officer shall must enter on the initial financing statement filed pursuant 
13.10 	to this section the time of day and date of filing. The filing officer shall must accept filings, 
13.11 	amendments, and terminations of an initial financing statement filed pursuant to this section 
13.12 	and charge the same filing fees as provided in section 336.9-525. An initial financing 
13.13 	statement filed pursuant to this section is void and may be removed from the filing system 
13.14 	18 months after the date of filing. The beneficiaries notice may be physically destroyed 30 
13.15 	months after the date of filing.
13.16 		Subd. 4.Priority of unpaid sellers' interests in trust assets. (a) The unpaid seller's 
13.17 	interest in trust assets is paramount to all other liens, security interests, and encumbrances 
13.18 	in the trust assets. An unpaid seller who recovers trust assets recovers them free of any liens, 
13.19 	security interests, or encumbrances.
13.20 	(b) If the trust assets are inadequate to pay unpaid sellers the amount due, the unpaid 
13.21 	sellers shall share proportionately in the trust assets.
13.22 		Subd. 5.Recovery actions. An action to recover trust assets may be brought in district 
13.23 	court in a county where trust assets are located after the beneficiaries notice is filed. The 
13.24 	beneficiaries notice may be amended, except the amount due, by leave of the court in 
13.25 	furtherance of justice. An action to recover trust assets is barred if it is not brought by 18 
13.26 	months after the date the beneficiaries notice is filed.
13.27 		Subd. 6.Terminations of beneficiaries notice. A seller must terminate a beneficiaries 
13.28 	notice by ten days after the amount due for the wholesale produce farm products dealer is 
13.29 	paid. The commissioner may terminate a beneficiaries notice upon request and demonstration 
13.30 	by the wholesale produce farm products dealer that the amounts due under the beneficiaries 
13.31 	notice have been paid.

14.1 	Sec. 21. Minnesota Statutes 2018, section 27.19, subdivision 1, is amended to read:
14.2 		Subdivision 1.Prohibited acts. (a) A person subject to the provisions of this section 
14.3 	and sections 27.01 to 27.14may must not:
14.4 	(1) operate or advertise to operate as a dealer at wholesale without a license;
14.5 	(2) (1) make any false statement or report as to the grade, condition, markings, quality, 
14.6 	or quantity of produce, as defined in section 27.069, received or delivered, or act in any 
14.7 	manner to deceive a consignor or purchaser;
14.8 	(3) (2) refuse to accept a shipment contracted for by the person, unless the refusal is 
14.9 	based upon the showing of a state inspection certificate secured with reasonable promptness 
14.10 	after the receipt of the shipment showing that the kind and quality of produce, as defined 
14.11 	in section 27.069, is other than that purchased or ordered by the person;
14.12 	(4) (3) fail to account or make a settlement for produce perishable farm products within 
14.13 	the required time;
14.14 	(5) (4) violate or fail to comply with the terms or conditions of a contract entered into 
14.15 	by the person for the purchase, production, or sale of produce perishable farm products;
14.16 	(6) (5) purchase for a person's own account any produce received on consignment, either 
14.17 	directly or indirectly, without the consent of the consignor;
14.18 	(7) (6) issue a false or misleading market quotation, or cancel a quotation during the 
14.19 	period advertised by the person;
14.20 	(8) (7) increase the sales charges on produce perishable farm products shipped to the 
14.21 	person by means of "dummy" or fictitious sales;
14.22 	(9) (8) receive decorative forest products and the products of farms and waters from 
14.23 	foreign states or countries for sale or resale, either within or outside of the state, and give 
14.24 	the purchaser the impression, through any method of advertising or description, that the 
14.25 	produce is perishable farm products are of Minnesota origin;
14.26 	(10) fail to notify in writing all suppliers of produce of the protection afforded to suppliers 
14.27 	by the person's licensee bond, including: availability of a bond, notice requirements, and 
14.28 	any other conditions of the bond;
14.29 	(11) make a false statement to the commissioner on an application for license or bond 
14.30 	or in response to written questions from the commissioner regarding the license or bond;
14.31 	(12) (9) commit to pay and not pay in full for all produce perishable farm products
14.32 	committed for. A processor may not pay an amount less than the full contract price if the 
15.1 	crop produced is satisfactory for processing and is not harvested for reasons within the 
15.2 	processor's control. If the processor sets the date for planting, then bunching, unusual yields, 
15.3 	and a processor's inability or unwillingness to harvest must be considered to be within the 
15.4 	processor's control. Under this clause growers must be compensated for passed acreage at 
15.5 	the same rate for grade and yield as they would have received had the crop been harvested 
15.6 	in a timely manner minus any contractual provision for green manure or feed value. Both 
15.7 	parties are excused from payment or performance for crop conditions that are beyond the 
15.8 	control of the parties; or
15.9 	(13) (10) discriminate between different sections, localities, communities, or cities, or 
15.10 	between persons in the same community, by purchasing produce perishable farm products
15.11 	from farmers of the same grade, quality, and kind, at different prices, except that price 
15.12 	differentials are allowed if directly related to the costs of transportation, shipping, and 
15.13 	handling of the produce perishable farm products and a person is allowed to meet the prices 
15.14 	of a competitor in good faith, in the same locality for the same grade, quality, and kind of 
15.15 	produce perishable farm products. A showing of different prices by the commissioner is 
15.16 	prima facie evidence of discrimination.
15.17 	(b) Any person violating any provision of this chapter, or any rule adopted under this 
15.18 	chapter, is guilty of a misdemeanor.
15.19 	(b) (c) A separate violation occurs with respect to each different person involved, each 
15.20 	purchase or transaction involved, and each false statement.
15.21 	(d) Any prosecuting officer to whom the commissioner reports a violation of this chapter, 
15.22 	or a violation of any rule adopted under this chapter, must bring appropriate proceedings 
15.23 	in a proper court without delay for the enforcement of the penalties under this chapter.

15.24 	Sec. 22. Minnesota Statutes 2018, section 31.175, is amended to read:
15.25 	31.175 WATER, PLUMBING, AND SEWAGE.
15.26 	A person who is required by statutes administered by the Department of Agriculture, or 
15.27 	by rules adopted pursuant to those statutes, to provide a suitable water supply, or plumbing 
15.28 	or sewage disposal system shall not engage in the business of manufacturing, processing, 
15.29 	selling, handling, or storing food at wholesale or retail unless the person's water supply is 
15.30 	satisfactory pursuant to rules adopted by the Department of Health, the person's plumbing 
15.31 	is satisfactory pursuant to rules adopted by the Department of Labor and Industry, and the 
15.32 	person's sewage disposal system satisfies the rules of the Pollution Control Agency. This 
15.33 	section does not limit the commissioner's ability to issue a food handler's license when an 
16.1 	investigation completed pursuant to section 28A.07 has determined the requirements of this 
16.2 	section are not relevant and the applicant is considered fit to engage in business as described 
16.3 	in the license application.

16.4 	Sec. 23. REPEALER.
 16.5 	Minnesota Statutes 2018, sections 13.6435, subdivision 5; 27.03, subdivision 1; 27.04; 
16.6 	and 27.041, are repealed.

16.7 	ARTICLE 2
16.8 	AGRICULTURE APPROPRIATIONS

16.9 	Section 1. Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision 4, 
16.10 	is amended to read:

16.11
16.12	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		23,653,000
		23,654,000
23,354,000
	
16.13 	(a) $9,300,000 the first year and $9,300,000
16.14 	$9,000,000 the second year are for transfer to 
16.15 	the agriculture research, education, extension, 
16.16 	and technology transfer account under 
16.17 	Minnesota Statutes, section 41A.14, 
16.18 	subdivision 3. Of these amounts: at least 
16.19 	$600,000 the first year and $600,000 the 
16.20 	second year are for the Minnesota Agricultural 
16.21 	Experiment Station's agriculture rapid 
16.22 	response fund under Minnesota Statutes, 
16.23 	section 41A.14, subdivision 1, clause (2); 
16.24 	$2,000,000 the first year and $2,000,000 the 
16.25 	second year are for grants to the Minnesota 
16.26 	Agriculture Education Leadership Council to 
16.27 	enhance agricultural education with priority 
16.28 	given to Farm Business Management 
16.29 	challenge grants; $350,000 the first year and 
16.30 	$350,000 the second year are for potato 
16.31 	breeding; and $450,000 the first year and 
16.32 	$450,000 the second year are for the cultivated 
16.33 	wild rice breeding project at the North Central 
17.1 	Research and Outreach Center to include a 
17.2 	tenure track/research associate plant breeder. 
17.3 	The commissioner shall transfer the remaining 
17.4 	funds in this appropriation each year to the 
17.5 	Board of Regents of the University of 
17.6 	Minnesota for purposes of Minnesota Statutes, 
17.7 	section 41A.14. Of the amount transferred to 
17.8 	the Board of Regents, up to $1,000,000 each
17.9 	the first year and $700,000 the second year is
17.10 	are for research on avian influenza.
17.11 	To the extent practicable, money expended 
17.12 	under Minnesota Statutes, section 41A.14, 
17.13 	subdivision 1, clauses (1) and (2), must 
17.14 	supplement and not supplant existing sources 
17.15 	and levels of funding. The commissioner may 
17.16 	use up to one percent of this appropriation for 
17.17 	costs incurred to administer the program. The 
17.18 	base amount for agriculture research, 
17.19 	education, extension, and technology transfer 
17.20 	for fiscal year 2022 and later is $9,300,000.
17.21 	(b) $14,353,000 the first year and $14,354,000 
17.22 	the second year are for the agricultural growth, 
17.23 	research, and innovation program in 
17.24 	Minnesota Statutes, section 41A.12. Except 
17.25 	as provided below, the commissioner may 
17.26 	allocate the appropriation each year among 
17.27 	the following areas: facilitating the start-up, 
17.28 	modernization, improvement, or expansion of 
17.29 	livestock operations including beginning and 
17.30 	transitioning livestock operations with 
17.31 	preference given to robotic dairy-milking 
17.32 	equipment; providing funding not to exceed 
17.33 	$400,000 each year to develop and enhance 
17.34 	farm-to-school markets for Minnesota farmers 
17.35 	by providing more fruits, vegetables, meat, 
18.1 	grain, and dairy for Minnesota children in 
18.2 	school and child care settings including, at the 
18.3 	commissioner's discretion, reimbursing 
18.4 	schools for purchases from local farmers; 
18.5 	assisting value-added agricultural businesses 
18.6 	to begin or expand, to access new markets, or 
18.7 	to diversify, including aquaponics systems; 
18.8 	providing funding not to exceed $300,000 
18.9 	each year for urban youth agricultural 
18.10 	education or urban agriculture community 
18.11 	development; providing funding not to exceed 
18.12 	$300,000 each year for the good food access 
18.13 	program under Minnesota Statutes, section 
18.14 	17.1017; facilitating the start-up, 
18.15 	modernization, or expansion of other 
18.16 	beginning and transitioning farms including 
18.17 	by providing loans under Minnesota Statutes, 
18.18 	section 41B.056; sustainable agriculture 
18.19 	on-farm research and demonstration; 
18.20 	development or expansion of food hubs and 
18.21 	other alternative community-based food 
18.22 	distribution systems; enhancing renewable 
18.23 	energy infrastructure and use; crop research 
18.24 	including basic and applied turf seed research; 
18.25 	Farm Business Management tuition assistance; 
18.26 	and good agricultural practices/good handling 
18.27 	practices certification assistance. The 
18.28 	commissioner may use up to 6.5 percent of 
18.29 	this appropriation for costs incurred to 
18.30 	administer the program.
18.31 	Of the amount appropriated for the agricultural 
18.32 	growth, research, and innovation program in 
18.33 	Minnesota Statutes, section 41A.12:
18.34 	(1) $1,000,000 the first year and $1,000,000 
18.35 	the second year are for distribution in equal 
19.1 	amounts to each of the state's county fairs to 
19.2 	preserve and promote Minnesota agriculture;
19.3 	(2) $2,500,000 the first year and $2,500,000 
19.4 	the second year are for incentive payments 
19.5 	under Minnesota Statutes, sections 41A.16, 
19.6 	41A.17, and 41A.18. Notwithstanding 
19.7 	Minnesota Statutes, section 16A.28, the first 
19.8 	year appropriation is available until June 30, 
19.9 	2021, and the second year appropriation is 
19.10 	available until June 30, 2022. Payments for 
19.11 	each quarter of the fiscal year may not exceed 
19.12 	$625,000, unless money is carried forward 
19.13 	from a previous quarter. No entity may receive 
19.14 	more than $2,500,000 in payments in a fiscal 
19.15 	year from one of the programs. If this 
19.16 	appropriation exceeds the total amount for 
19.17 	which all producers are eligible in a fiscal 
19.18 	year, the balance of the appropriation is 
19.19 	available for the agricultural growth, research, 
19.20 	and innovation program. The base amount for 
19.21 	the allocation under this clause is $3,000,000 
19.22 	in fiscal year 2022 and later;
19.23 	(3) up to $5,000,000 the first year is for Dairy 
19.24 	Assistance, Investment, Relief Initiative 
19.25 	(DAIRI) grants to Minnesota dairy farmers 
19.26 	who enroll for five years of coverage under 
19.27 	the federal dairy margin coverage program 
19.28 	and produced no more than 16,000,000 pounds 
19.29 	of milk in 2018. The commissioner must 
19.30 	award DAIRI grants based on participating 
19.31 	producers' amount of 2018 milk, up to 
19.32 	5,000,000 pounds per participating producer, 
19.33 	at a rate determined by the commissioner 
19.34 	within the limits of available funding;
20.1 	(4) up to $5,000,000 the second year is for 
20.2 	innovative soybean processing and research;
20.3 	(5) $75,000 the first year is for a grant to 
20.4 	Greater Mankato Growth, Inc. for assistance 
20.5 	to agricultural-related businesses to promote 
20.6 	jobs, innovation, and synergy development; 
20.7 	and
20.8 	(6) $75,000 the first year and $75,000 the 
20.9 	second year are for grants to the Minnesota 
20.10 	Turf Seed Council for basic and applied 
20.11 	research; and
20.12 	(7) $200,000 the second year is for grants to 
20.13 	independently owned or employee-owned 
20.14 	meat processors that may also operate as a 
20.15 	retail seller, to expand their meat processing 
20.16 	operations.
20.17 	The amounts in clauses (3) to (6) (7) are 
20.18 	onetime.
20.19 	Notwithstanding Minnesota Statutes, section 
20.20 	16A.28, any unencumbered balance does not 
20.21 	cancel at the end of the first year and is 
20.22 	available for the second year and 
20.23 	appropriations encumbered under contract on 
20.24 	or before June 30, 2021, for agricultural 
20.25 	growth, research, and innovation grants are 
20.26 	available until June 30, 2024.
20.27 	The base amount for the agricultural growth, 
20.28 	research, and innovation program is 
20.29 	$14,693,000 in fiscal year 2022 and 
20.30 	$14,693,000 in fiscal year 2023, and includes 
20.31 	funding for incentive payments under 
20.32 	Minnesota Statutes, sections 41A.16, 41A.17, 
20.33 	41A.18, and 41A.20.
21.1 	The commissioner must consult with the 
21.2 	commissioner of transportation, the 
21.3 	commissioner of administration, and local 
21.4 	units of government to identify at least ten 
21.5 	parcels of publicly owned land that are suitable 
21.6 	for urban agriculture.

21.7 	Sec. 2. GRAIN STORAGE FACILITY SAFETY GRANT PILOT PROGRAM.
 21.8 		Subdivision 1.Protection equipment grants; eligibility. (a) The commissioner must 
21.9 	award cost-share grants to Minnesota farmers who purchase grain storage facility safety 
21.10 	protection equipment. Grants are limited to 50 percent of the farmer's documented cost to 
21.11 	purchase, ship, and install grain storage facility safety protection equipment or $300, 
21.12 	whichever is less.
21.13 	(b) Eligible grain storage facility safety protection equipment includes:
21.14 	(1) fall protection systems;
21.15 	(2) personal protective equipment to increase survivability in the event of a grain bin 
21.16 	related emergency;
21.17 	(3) engineering controls to prevent contact with an auger or other moving parts; and
21.18 	(4) other grain storage facility safety protection equipment approved by the commissioner.
21.19 		Subd. 2.Grain silo air quality monitoring equipment. The commissioner must award 
21.20 	cost-share grants to Minnesota farmers who purchase grain silo air quality monitoring 
21.21 	equipment. Grants are limited to 50 percent of the farmer's documented cost to purchase, 
21.22 	ship, and install grain silo air quality monitoring equipment or $300, whichever is less.
21.23 		Subd. 3.Promotion; administration. The commissioner may spend up to five percent 
21.24 	of total program dollars each fiscal year to promote and administer the program to Minnesota 
21.25 	farmers.
21.26 		Subd. 4.Nonstate sources; appropriation. The commissioner must accept contributions 
21.27 	from nonstate sources, including but not limited to nonprofits, foundations, and corporations 
21.28 	to supplement state appropriations for this program. Contributions received under this 
21.29 	subdivision are appropriated to the commissioner for purposes of this section.

22.1 	Sec. 3. APPROPRIATION; GRAIN STORAGE FACILITY SAFETY GRANT 
22.2 	PILOT PROGRAM.
 22.3 	(a) $100,000 is appropriated from the general fund in fiscal year 2021 to the commissioner 
22.4 	of agriculture for the grain storage facility safety grant program. By January 1, 2022, the 
22.5 	commissioner shall report on the number of applications for grants received, the number of 
22.6 	grants awarded, the total amount of donations received, the total dollar amount requested 
22.7 	by applicants, and the total dollar amount awarded under this program by county, in addition 
22.8 	to statewide. The commissioner shall also include the average dollar amounts requested by 
22.9 	applicants and awarded under this program. This is a onetime appropriation.
22.10 	(b) $25,000 in fiscal year 2021 is appropriated from the general fund to the commissioner 
22.11 	of agriculture for a grant to the Board of Regents of the University of Minnesota for 
22.12 	University of Minnesota Extension to create and present curriculum regarding grain storage 
22.13 	facility safety. The University of Minnesota Extension is encouraged to collaborate with 
22.14 	stakeholders, including 4-H, FFA, and agriculture education programs through the schools 
22.15 	to ensure these resources are available to current and future farmers. By January 11, 2022, 
22.16 	the University of Minnesota Extension is requested to report on the results of the grant 
22.17 	issued under this appropriation to the members of the legislative committees with jurisdiction 
22.18 	over agriculture finance and higher education finance. This is a onetime appropriation.
22.19 	(c) $25,000 in fiscal year 2021 is appropriated to the commissioner of agriculture for 
22.20 	grants to the Board of Regents of the University of Minnesota or the Board of Trustees of 
22.21 	the Minnesota State Colleges and Universities to design digital applications that allow a 
22.22 	user to remotely power off a grain storage facility via cell phone or electronic device. Any 
22.23 	digital applications created as a result of this grant must be made available to the public at 
22.24 	no cost. By January 15, 2021, the commissioner shall report on the grants issued under this 
22.25 	appropriation to the members of the legislative committees with jurisdiction over agriculture 
22.26 	finance and higher education finance. By February 1, 2022, a recipient of a grant for this 
22.27 	purpose is requested to report to the commissioner of agriculture and the members of the 
22.28 	legislative committees with jurisdiction over agriculture finance and higher education finance 
22.29 	regarding the digital application produced as a result of the grant.

22.30 	Sec. 4. FARM CRISIS LOAN ORIGINATION FEE GRANT PROGRAM.
 22.31 	(a) $250,000 in fiscal year 2020 is appropriated from the general fund to the commissioner 
22.32 	of agriculture for grants to eligible farmers who have been approved for farm debt 
22.33 	restructuring loans guaranteed by the United States Department of Agriculture (USDA), 
22.34 	Farm Service Agency or issued under a loan program administered by the Rural Finance 
23.1 	Authority. The commissioner must award an eligible farmer a grant in an amount equal to 
23.2 	the loan origination fee amount required for the farmer to obtain the USDA, Farm Service 
23.3 	Agency guaranteed loan or Rural Finance Authority program loan.
23.4 	(b) For purposes of this section, "eligible farmer" means an individual who regularly 
23.5 	participates in physical labor or operations management in the individual's farming operation 
23.6 	and files "Schedule F" as part of the person's annual Form 1040 filing with the United States 
23.7 	Internal Revenue Service or a family farm organized under Minnesota Statutes, section 
23.8 	500.24, if the individual or family farm:
23.9 	(1) has a total net worth of less than $800,000 in calendar year 2020; and
23.10 	(2) is either in mediation proceedings under Minnesota Statutes, chapter 583, or has 
23.11 	received a mediation notice under Minnesota Statutes, section 583.26, subdivision 1, 
23.12 	paragraph (a).
23.13 	(c) The commissioner must give first priority to grant applicants who are currently in 
23.14 	mediation under Minnesota Statutes, chapter 583, and must give second priority to grant 
23.15 	applicants who have received a mediation notice under Minnesota Statutes, section 583.26, 
23.16 	subdivision 1, paragraph (a).
23.17 	(d) The amount appropriated under this section is onetime and is available until June 
23.18 	30, 2023.
23.19 	(e) The commissioner may use up to ten percent of the amount appropriated under this 
23.20 	section to administer the grant program.

23.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.22 	Sec. 5. APPROPRIATION; FARM ADVOCATE SERVICES.
 23.23 	$100,000 in fiscal year 2021 is appropriated from the general fund to the commissioner 
23.24 	of agriculture for farm advocate services. This appropriation is in addition to the amount 
23.25 	appropriated under Laws 2019, First Special Session chapter 1, article 1, section 2, 
23.26 	subdivision 5, paragraph (e). This is a onetime appropriation.

23.27 	Sec. 6. APPROPRIATION; VETERINARY DIAGNOSTIC LAB SAFETY 
23.28 	EQUIPMENT.
 23.29 	$675,000 in fiscal year 2021 is appropriated from the general fund to the commissioner 
23.30 	of agriculture for a grant to the Board of Regents of the University of Minnesota to purchase 
23.31 	testing equipment for the Veterinary Diagnostic Laboratory, including but not limited to 
24.1 	equipment and supplies needed to respond to incidents of African swine fever. This is a 
24.2 	onetime appropriation.

24.3 	Sec. 7. APPROPRIATION; RETAIL FOOD HANDLER SAFETY.
 24.4 	(a) $125,000 in fiscal year 2020 is appropriated from the general fund to the commissioner 
24.5 	of agriculture for grants to retail food handlers, as described in Minnesota Statutes, section 
24.6 	28A.05, paragraph (a). The commissioner must establish a minimum and maximum amount 
24.7 	for grants awarded under this section based on the total amount of money requested in the 
24.8 	applications, and the availability of federal money for a similar purpose. The commissioner 
24.9 	may award grants for recipients to execute requirements, guidance, and recommendations 
24.10 	related to the infectious disease known as COVID-19 provided by the Centers for Disease 
24.11 	Control and Prevention and the Minnesota Department of Health, and to develop safety 
24.12 	procedures, update and retrofit retail locations, purchase personal protective equipment for 
24.13 	employees, and educate the public on the need to follow safety procedures. This is a onetime 
24.14 	appropriation and is available until June 30, 2021.
24.15 	(b) Grants under this section equal $500 for stores that qualify as retail food handlers. 
24.16 	The commissioner must not award a business with multiple eligible locations more than 
24.17 	$5,000 in total grants. Applicants must provide information to the commissioner on how 
24.18 	grant money will be used to ensure safety of Minnesotans from COVID-19.
24.19 	(c) If the commissioner of management and budget determines that any money spent 
24.20 	from the appropriation made in this section is an eligible expenditure from the coronavirus 
24.21 	relief account in the federal fund, the amount of the expenditure is appropriated from the 
24.22 	coronavirus relief account and the corresponding amount is canceled from the general fund.

24.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: S4395-1 

13.6435 AGRICULTURAL DATA CODED ELSEWHERE.Subd. 5.Wholesale produce dealers. 
Financial data submitted by a license applicant are classified under section 27.04, subdivision 2. 

27.03 DEALER REGULATION.Subdivision 1.License. 
A person may not engage in, or purport to be engaged in, or hold out as being engaged in, the business of a dealer at wholesale, or as being a dealer at wholesale, unless licensed and bonded by the commissioner. 

27.04 APPLICATION FOR LICENSE.Subdivision 1.Issuance. 
The commissioner shall issue a wholesale produce dealer's license to engage in the business of a dealer at wholesale to persons submitting an application, paying the prescribed fee, and complying with the conditions in this section. 

Subd. 2.Application contents. 
(a) The application must be in writing, accompanied by the prescribed fee, and state: 

(1) the place or places where the applicant intends to carry on the business for which the license is desired; 

(2) the estimated amount of business to be done monthly; 

(3) the amount of business done during the preceding year, if any; 

(4) the full names of the persons constituting the firm for a partnership, and for a corporation the names of the officers of the corporation and where incorporated; and 

(5) any other information relevant to the conduct of its business as a wholesale produce dealer in the previous five years, as the commissioner may require. 

(b) If a contract is used in a transaction, a copy of the contract must also be filed with the commissioner. 

(c) Financial data required of an applicant under this section is classified as private data with regard to data on individuals and as nonpublic data with regard to data not on individuals under section 13.02. 

Subd. 3.Filing. 
Applications shall be filed annually. 

27.041 BONDS; LICENSES.Subdivision 1.Bonds. 
(a) The applicant required to be bonded shall execute and file with the commissioner a surety bond to the state of Minnesota to be approved by the commissioner, the amount, form, and effective date to be determined by the commissioner with the maximum not to exceed $1,000,000. In lieu of the surety bond, the commissioner may accept a duly executed letter of credit. The bond or letter of credit shall be conditioned on the faithful performance of the applicant's duties as a dealer at wholesale, including: 

(1) the observance of all laws relating to the carrying on of the business of a dealer at wholesale; 

(2) payment when due, unless it appears to the commissioner that a voluntary extension of credit has been given on the produce by the seller to the licensee beyond the due date; 

(3) the prompt settlement and payment of all claims and charges due the state for services rendered or otherwise; 

(4) the prompt reporting of sales as required by law to all persons consigning produce to the licensee for sale on commission; and 

(5) the prompt payment to the persons entitled thereto of the proceeds of the sales, less lawful charges, disbursements, and commissions. 

(b) The bond shall cover all wholesale produce business subject to the protection outlined in section 27.001 which is: 

(1) transacted within this state; or 

(2) transacted in part within this state and in part within the states and provinces contiguous with this state and sold by Minnesota sellers. 

Subd. 1a.Additional bonds. 
(a) The commissioner, after determining a bond given by a licensee is inadequate for the proper protection of the public, may require the licensee to give additional bonds in amounts as determined by the commissioner, with sureties to be approved by the commissioner, and conditioned as provided in this section. 

(b) To set or change the amount of a bond, the commissioner may require a licensee to provide verified statements of the licensee's business. 

(c) Failure of the licensee to furnish the information or to give a new or additional bond is cause for: 

(1) suspension of the licensee's license for as long as the failure continues; or 

(2) revocation of the license, on ten days' notice to the licensee and opportunity to be heard. 

(d) If the commissioner determines it is in the public's interest, the commissioner may suspend the license after giving notice and holding a hearing. 

Subd. 2.Licenses. 
(a) The license, or a certified copy of the license, must be kept posted in the office of the licensee at each place within the state where the licensee transacts business. A wholesale produce dealer may not appoint, delegate, or authorize a person, firm, or company to purchase produce unless a certified copy, identification card, or truck decal has been issued at the request of the wholesale produce dealer to that person, firm, or company acting as the buyer or agent. 

(b) A license expires June 30 following its issuance and must be renewed July 1 of each year. 

(c) A license issued under this subdivision is automatically void upon the termination of the surety bond covering the licensed operation. 

(d) The fee for each license must include a $75 registration fee and an additional fee of .045 percent of the total annual dollar amount of produce purchased the previous year from sellers within the state of Minnesota subject to this chapter. Fees may not exceed $2,000 per license. In addition, a fee of $20 shall be charged for each certified copy of a license, $5 for each license identification card, and $10 for each license identification truck decal. 

(e) A penalty amounting to ten percent of the fees due may be imposed by the commissioner for each month for which the fees are delinquent. 

(f) A licensee who sells, disposes of, or discontinues the licensee's business during the lifetime of a license shall, at the time the action is taken, notify the commissioner in writing, and upon demand produce before the commissioner a full statement of all assets and liabilities as of the date of transfer or discontinuance of the business. 

Subd. 3.Account; appropriation. 
A wholesale produce dealers account is created in the agricultural fund. All fees, charges, and penalties collected under sections 27.01 to 27.069 and 27.11 to 27.19, including interest attributable to that money, must be deposited in the wholesale produce dealers account. Money in the account is appropriated to the commissioner for the purposes of sections 27.01 to 27.069 and 27.11 to 27.19.