HF 2367

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a permanent 
  1.3             certification program; changing certain fees, charges, 
  1.4             and licensing provisions; expanding certain programs; 
  1.5             changing a reimbursement program; funding programs of 
  1.6             the department of agriculture and the board of animal 
  1.7             health; imposing penalties; appropriating money; 
  1.8             amending Minnesota Statutes 2000, sections 17.1025; 
  1.9             17.85; 18C.425, subdivisions 2, 6; 18E.02, by adding a 
  1.10            subdivision; 18E.04, subdivisions 2, 4, 5; 21.85, 
  1.11            subdivision 12; 27.041, subdivision 2; 28A.04, 
  1.12            subdivision 1; 28A.08, subdivision 3; 29.22, 
  1.13            subdivision 2; 31.39; 32.392; 32.394, subdivisions 8, 
  1.14            8a, 8b, 8e; 223.17, subdivision 3; 231.16; proposing 
  1.15            coding for new law in Minnesota Statutes, chapters 
  1.16            28A; 32; repealing Minnesota Statutes 2000, section 
  1.17            31.11, subdivision 2.  
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 2000, section 17.1025, is 
  1.20  amended to read: 
  1.21     17.1025 [MINNESOTA CERTIFICATION PROGRAM.] 
  1.22     Subdivision 1.  [ESTABLISHMENT.] In cooperation with the 
  1.23  University of Minnesota, the department of trade and economic 
  1.24  development, and the board of animal health, the commissioner 
  1.25  shall establish a pilot program to certify agricultural 
  1.26  production methods and agricultural products grown or processed 
  1.27  within the state to assure the integrity of claims made by 
  1.28  participating businesses.  The commissioner may select and 
  1.29  cooperate with private organizations that have established 
  1.30  procedures and safeguards to justify claimed characteristics of 
  1.31  the production process or the final certified product to conduct 
  2.1   certification activities for third party producers. 
  2.2      The commissioner may establish guidelines for the 
  2.3   certification program, which are not subject to chapter 14.  The 
  2.4   commissioner shall submit a report on the pilot program to the 
  2.5   legislature by February 1, 2001. 
  2.6      Subd. 2.  [CERTIFICATION PROCESS.] Applications for 
  2.7   certification must be submitted to the commissioner and must be 
  2.8   evaluated by representatives of the commissioner, the University 
  2.9   of Minnesota, the department of trade and economic development, 
  2.10  other state agencies with regulatory authority or expertise in 
  2.11  the subject matter of the application or in the certification 
  2.12  process, and any other person named by the commissioner.  
  2.13     The commissioner shall make the final certification 
  2.14  decision after the certification group prepares a 
  2.15  recommendation.  The application may be accepted, denied, or 
  2.16  returned to the applicant for further action.  The 
  2.17  recommendation must be based upon the benefit of the 
  2.18  certification to the producer or processor, the benefit to the 
  2.19  state's agricultural economy, the costs to the state involved in 
  2.20  certification and ongoing monitoring, the quality of internal 
  2.21  and external audit controls to assure compliance with the terms 
  2.22  of the certification, and other factors appropriate to best 
  2.23  benefit the participants and the state.  
  2.24     Subd. 3.  [INTELLECTUAL PROPERTY.] The commissioner shall 
  2.25  incorporate the Minnesota Grown logo and develop language to 
  2.26  best promote the use of certified products and procedures, and 
  2.27  explore and implement procedures to best use the resources of 
  2.28  the Internet in the promotion and distribution of Minnesota 
  2.29  certified products and processes.  
  2.30     Subd. 4.  [CERTIFICATION REVOCATION OR SUSPENSION; 
  2.31  MISDEMEANOR.] A certification may be revoked or suspended by the 
  2.32  commissioner without hearing if the terms of the certification 
  2.33  are not being followed, the certification has become unused or 
  2.34  obsolete, or the continued use of the certification is contrary 
  2.35  to the interests of the state or the purpose of the 
  2.36  certification program.  Use of the certification after 
  3.1   suspension or revocation is a misdemeanor and may also be 
  3.2   enjoined by the commissioner in an action in district court.  
  3.3      Subd. 5.  [NO GUARANTEE OR WARRANTY.] Certification does 
  3.4   not constitute a guarantee or warranty as to any characteristic 
  3.5   of any product or production process.  The state and other 
  3.6   parties involved in the certification decision may not be found 
  3.7   liable for a certification or refusal to certify.  
  3.8      Subd. 6.  [SUNSET.] This section expires June 30, 2007. 
  3.9      Sec. 2.  Minnesota Statutes 2000, section 17.85, is amended 
  3.10  to read: 
  3.11     17.85 [LABORATORY SERVICES ACCOUNT.] 
  3.12     A laboratory services account is established in the 
  3.13  agricultural fund.  Payments for laboratory services performed 
  3.14  by the laboratory services division of the department of 
  3.15  agriculture must be deposited in the agricultural fund and 
  3.16  credited to the laboratory services account.  Money in the 
  3.17  account, including interest earned on the account, is annually 
  3.18  appropriated to the commissioner of agriculture to administer 
  3.19  the programs of the laboratory services division.  The 
  3.20  agriculture laboratory exists to provide analytical and 
  3.21  technical services in support of agency programs that protect 
  3.22  and enhance the state's agriculture, environment, and food chain.
  3.23  The laboratory may provide analytical and technical services for 
  3.24  a fee to any public or private entity as requested or required 
  3.25  to meet department objectives in support of Minnesota 
  3.26  agriculture and a national food safety system.  
  3.27     Sec. 3.  Minnesota Statutes 2000, section 18C.425, 
  3.28  subdivision 2, is amended to read: 
  3.29     Subd. 2.  [SPECIALTY FERTILIZER REGISTRATION.] An 
  3.30  application for registration of a specialty fertilizer must be 
  3.31  accompanied by a nonrefundable application fee of $100 $150 for 
  3.32  each brand and grade to be sold or distributed as provided in 
  3.33  section 18C.411.  
  3.34     Sec. 4.  Minnesota Statutes 2000, section 18C.425, 
  3.35  subdivision 6, is amended to read: 
  3.36     Subd. 6.  [INSPECTION FEES.] The person responsible for 
  4.1   payment of the inspection fees for fertilizers, soil amendments, 
  4.2   or plant amendments sold and used in this state must pay an 
  4.3   inspection fee of 15 25 cents per ton of fertilizer, soil 
  4.4   amendment, and plant amendment sold or distributed in this 
  4.5   state, with a minimum of $10 on all tonnage reports.  Products 
  4.6   sold or distributed to manufacturers or exchanged between them 
  4.7   are exempt from the inspection fee imposed by this subdivision 
  4.8   if the products are used exclusively for manufacturing purposes. 
  4.9      Sec. 5.  Minnesota Statutes 2000, section 18E.02, is 
  4.10  amended by adding a subdivision to read: 
  4.11     Subd. 5a.  [EMERGENCY INCIDENT.] "Emergency incident" means 
  4.12  an incident resulting from a flood, fire, tornado, 
  4.13  transportation accident, storage container rupture, or other 
  4.14  event as determined by the commissioner that immediately, 
  4.15  uncontrollably, and unpredictably releases agricultural 
  4.16  chemicals into the environment and causes unreasonable adverse 
  4.17  effects on the public health or the environment.  
  4.18     Sec. 6.  Minnesota Statutes 2000, section 18E.04, 
  4.19  subdivision 2, is amended to read: 
  4.20     Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
  4.21  request by an eligible person, the board may pay the eligible 
  4.22  person for the reasonable and necessary cash disbursements for 
  4.23  corrective action costs incurred by the eligible person as 
  4.24  provided under subdivision 4 if the board determines: 
  4.25     (1) the eligible person pays the first $1,000 of the 
  4.26  corrective action costs; 
  4.27     (2) the eligible person provides the board with a sworn 
  4.28  affidavit and other convincing evidence that the eligible person 
  4.29  is unable to pay additional corrective action costs; 
  4.30     (3) the eligible person continues to assume responsibility 
  4.31  for carrying out the requirements of corrective action orders 
  4.32  issued to the eligible person or that are in effect; and 
  4.33     (4) the incident was reported as required in chapters 18B, 
  4.34  18C, and 18D; and 
  4.35     (5) the eligible person submits the application for 
  4.36  reimbursement of eligible corrective action costs to the 
  5.1   department: 
  5.2      (i) within three years of incurring the costs or approval 
  5.3   of a corrective action report, whichever is later; or 
  5.4      (ii) by June 1, 2004, in the case of costs incurred before 
  5.5   the effective date of this clause.  
  5.6      (b) An eligible person is not eligible for payment or 
  5.7   reimbursement and must refund amounts paid or reimbursed by the 
  5.8   board if false statements or misrepresentations are made in the 
  5.9   affidavit or other evidence submitted to the commissioner to 
  5.10  show an inability to pay corrective action costs.  
  5.11     (c) The board may pay the eligible person and one or more 
  5.12  designees by multiparty check. 
  5.13     Sec. 7.  Minnesota Statutes 2000, section 18E.04, 
  5.14  subdivision 4, is amended to read: 
  5.15     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
  5.16  a person that is eligible for reimbursement or payment under 
  5.17  subdivisions 1, 2, and 3 from the agricultural chemical response 
  5.18  and reimbursement account for:  
  5.19     (1) 90 percent of the total reasonable and necessary 
  5.20  corrective action costs greater than $1,000 and less than or 
  5.21  equal to $100,000 $200,000; 
  5.22     (2) 100 percent of the total reasonable and necessary 
  5.23  corrective action costs greater than $100,000 but less than or 
  5.24  equal to $200,000; 
  5.25     (3) 80 percent of the total reasonable and necessary 
  5.26  corrective action costs greater than $200,000 but less than or 
  5.27  equal to $300,000; and 
  5.28     (4) (3) 60 percent of the total reasonable and necessary 
  5.29  corrective action costs greater than $300,000 but less than or 
  5.30  equal to $350,000.  
  5.31     (b) A reimbursement or payment may not be made until the 
  5.32  board has determined that the costs are reasonable and are for a 
  5.33  reimbursement of the costs that were actually incurred. 
  5.34     (c) The board may make periodic payments or reimbursements 
  5.35  as corrective action costs are incurred upon receipt of invoices 
  5.36  for the corrective action costs. 
  6.1      (d) Money in the agricultural chemical response and 
  6.2   reimbursement account is appropriated to the commissioner to 
  6.3   make payments and reimbursements directed by the board under 
  6.4   this subdivision.  
  6.5      (e) The board may not make reimbursement greater than the 
  6.6   maximum allowed under paragraph (a) for all incidents on a 
  6.7   single site which: 
  6.8      (1) were not reported at the time of release but were 
  6.9   discovered and reported after July 1, 1989; and 
  6.10     (2) may have occurred prior to July 1, 1989, as determined 
  6.11  by the commissioner. 
  6.12     (f) The board may only reimburse an eligible person for 
  6.13  separate incidents within a single site if the commissioner 
  6.14  determines that each incident is completely separate and 
  6.15  distinct in respect of location within the single site or time 
  6.16  of occurrence. 
  6.17     Sec. 8.  Minnesota Statutes 2000, section 18E.04, 
  6.18  subdivision 5, is amended to read: 
  6.19     Subd. 5.  [REIMBURSEMENT OR PAYMENT DECISIONS.] (a) The 
  6.20  board may issue a letter of intent on whether a person is 
  6.21  eligible for payment or reimbursement.  The letter is not 
  6.22  binding on the board. 
  6.23     (b) The board must issue an order granting or denying a 
  6.24  request within 30 days following the board meeting at which the 
  6.25  board votes to grant or deny a request for reimbursement or for 
  6.26  payment under subdivision 1, 2, or 3. 
  6.27     (c) After an initial request is made for reimbursement, 
  6.28  notwithstanding subdivisions 1 to 4, the board may deny 
  6.29  additional requests for reimbursement. 
  6.30     (d) (1) An eligible person adversely affected by the 
  6.31  board's disapproval of a reimbursement or payment application 
  6.32  under paragraph (b) or a partial reimbursement under subdivision 
  6.33  3 may, within 60 days of receipt of the board's order, request a 
  6.34  hearing of determination before the board.  A request for a 
  6.35  hearing must be made in writing and specify the grounds for the 
  6.36  request.  
  7.1      (2) Within 30 days of the receipt of a request for a 
  7.2   hearing under clause (1), the eligible person must be notified 
  7.3   either as to the date of the hearing for determination or of the 
  7.4   denial of the request for a hearing.  Hearings must be scheduled 
  7.5   immediately following the next regularly scheduled board meeting 
  7.6   as determined by the notification letter.  
  7.7      (3) If a dispute related to the disapproval of a 
  7.8   reimbursement is not resolved after a hearing under clause (2) 
  7.9   or if a request is denied, the eligible person may appeal the 
  7.10  decision as a contested case hearing under chapter 14.  A 
  7.11  request for a contested case hearing must be submitted to the 
  7.12  board in writing within 30 days of the date of the hearing or 
  7.13  within 30 days of the receipt of notification of denial of the 
  7.14  hearing request under clause (2).  
  7.15     Sec. 9.  Minnesota Statutes 2000, section 21.85, 
  7.16  subdivision 12, is amended to read: 
  7.17     Subd. 12.  [SERVICE TESTING AND IDENTIFICATION.] The 
  7.18  commissioner shall provide for purity and germination tests of 
  7.19  seeds and identification of seeds and plants for farmers, 
  7.20  dealers, and others, and may establish and collect fees for 
  7.21  testing and identification schedules to recover the cost of 
  7.22  services provided.  Money collected must be deposited in the 
  7.23  laboratory services account in the agricultural fund.  
  7.24     Sec. 10.  Minnesota Statutes 2000, section 27.041, 
  7.25  subdivision 2, is amended to read: 
  7.26     Subd. 2.  [LICENSES.] (a) The license, or a certified copy 
  7.27  of the license, must be kept posted in the office of the 
  7.28  licensee at each place within the state where the licensee 
  7.29  transacts business.  A wholesale produce dealer may not appoint, 
  7.30  delegate, or authorize a person, firm, or company to purchase 
  7.31  produce unless a certified copy, identification card, or truck 
  7.32  decal has been issued at the request of the wholesale produce 
  7.33  dealer to that person, firm, or company acting as the buyer or 
  7.34  agent.  
  7.35     (b) A license expires June 30 following its issuance and 
  7.36  must be renewed July 1 of each year.  
  8.1      (c) A license issued under this subdivision is 
  8.2   automatically void upon the termination of the surety bond 
  8.3   covering the licensed operation.  
  8.4      (d) The fee for each license must include a $50 $75 
  8.5   registration fee and an additional fee of .025 .045 percent of 
  8.6   the total annual dollar amount of produce purchased the previous 
  8.7   year from sellers within the state of Minnesota subject to this 
  8.8   chapter.  Fees may not exceed $1,500 $2,000 per license.  In 
  8.9   addition, a fee of $20 shall be charged for each certified copy 
  8.10  of a license, $5 for each license identification card, and $10 
  8.11  for each license identification truck decal.  
  8.12     (e) A penalty amounting to ten percent of the fees due may 
  8.13  be imposed by the commissioner for each month for which the fees 
  8.14  are delinquent.  
  8.15     (f) A licensee who sells, disposes of, or discontinues the 
  8.16  licensee's business during the lifetime of a license shall, at 
  8.17  the time the action is taken, notify the commissioner in 
  8.18  writing, and upon demand produce before the commissioner a full 
  8.19  statement of all assets and liabilities as of the date of 
  8.20  transfer or discontinuance of the business.  
  8.21     Sec. 11.  Minnesota Statutes 2000, section 28A.04, 
  8.22  subdivision 1, is amended to read: 
  8.23     Subdivision 1.  [APPLICATION; DATE OF ISSUANCE.] (a) No 
  8.24  person shall engage in the business of manufacturing, 
  8.25  processing, selling, handling, or storing food without having 
  8.26  first obtained from the commissioner a license for doing such 
  8.27  business.  Applications for such license shall be made to the 
  8.28  commissioner in such manner and time as required and upon such 
  8.29  forms as provided by the commissioner and shall contain the name 
  8.30  and address of the applicant, address or description of each 
  8.31  place of business, and the nature of the business to be 
  8.32  conducted at each place, and such other pertinent information as 
  8.33  the commissioner may require. 
  8.34     (b) A retail or wholesale food handler license shall be 
  8.35  issued for the period July 1 to June 30 following and shall be 
  8.36  renewed thereafter by the licensee on or before July 1 each 
  9.1   year, except that licenses for all mobile food concession units 
  9.2   and retail mobile units shall be issued for the period April 1 
  9.3   to March 31, and shall be renewed thereafter by the licensee on 
  9.4   or before April 1 each year.  A license for a food broker or for 
  9.5   a food processor or manufacturer shall be issued for the period 
  9.6   January 1 to December 31 following and shall be renewed 
  9.7   thereafter by the licensee on or before January 1 of each year, 
  9.8   except that a license for a wholesale food processor or 
  9.9   manufacturer operating only at the state fair shall be issued 
  9.10  for the period July 1 to June 30 following and shall be renewed 
  9.11  thereafter by the licensee on or before July 1 of each year.  A 
  9.12  penalty for a late renewal shall be assessed in accordance with 
  9.13  section 28A.08. 
  9.14     (c) A person applying for a new license up to 14 calendar 
  9.15  days before the effective date of the new license period under 
  9.16  paragraph (b) must be issued a license for the 14 days and the 
  9.17  next license year as a single license and pay a single license 
  9.18  fee as if the 14 days were part of the upcoming license period. 
  9.19     Sec. 12.  Minnesota Statutes 2000, section 28A.08, 
  9.20  subdivision 3, is amended to read: 
  9.21     Subd. 3.  [FEES EFFECTIVE JULY 1, 1999.] 
  9.22                                                    Penalties 
  9.23  Type of food handler                    License    Late     No
  9.24                                          Fee      Renewal  License
  9.25                                          Effective 
  9.26                                          July 1,
  9.27                                          1999
  9.28  1.   Retail food handler
  9.29       (a) Having gross sales of only
  9.30       prepackaged nonperishable food
  9.31       of less than $15,000 for 
  9.32       the immediately previous 
  9.33       license or fiscal year and 
  9.34       filing a statement with the 
  9.35       commissioner                       $ 48     $ 16     $ 27
  9.36       (b) Having under $15,000 gross
 10.1        sales including food preparation 
 10.2        or having $15,000 to $50,000 
 10.3        gross sales for the immediately 
 10.4        previous license or fiscal year    $ 65     $ 16     $ 27
 10.5        (c) Having $50,000 to $250,000 
 10.6        gross sales for the immediately 
 10.7        previous license or fiscal year    $126     $ 37     $ 80 
 10.8        (d) Having $250,000 to 
 10.9        $1,000,000 gross sales for the 
 10.10       immediately previous license or 
 10.11       fiscal year                        $216     $ 54     $107
 10.12       (e) Having $1,000,000 to 
 10.13       $5,000,000 gross sales for the 
 10.14       immediately previous license or 
 10.15       fiscal year                        $601     $107     $187
 10.16       (f) Having $5,000,000 to
 10.17       $10,000,000 gross sales for the
 10.18       immediately previous license or
 10.19       fiscal year                        $842     $161     $321
 10.20       (g) Having over $10,000,000
 10.21       gross sales for the immediately
 10.22       previous license or fiscal year    $962     $214     $375
 10.23  2.   Wholesale food handler
 10.24       (a) Having gross sales or
 10.25       service of less than $25,000
 10.26       for the immediately previous 
 10.27       license or fiscal year             $ 54     $ 16     $ 16
 10.28       (b) Having $25,000 to
 10.29       $250,000 gross sales or
 10.30       service for the immediately 
 10.31       previous license or fiscal year    $241     $ 54     $107
 10.32       (c) Having $250,000 to 
 10.33       $1,000,000 gross sales or
 10.34       service from a mobile unit
 10.35       without a separate food facility
 10.36       for the immediately previous
 11.1        license or fiscal year             $361     $ 80     $161
 11.2        (d) Having $250,000 to 
 11.3        $1,000,000 gross sales or
 11.4        service not covered under 
 11.5        paragraph (c) for the immediately 
 11.6        previous license or fiscal year    $480     $107     $214
 11.7        (e) Having $1,000,000 to
 11.8        $5,000,000 gross sales or 
 11.9        service for the immediately 
 11.10       previous license or fiscal year    $601     $134     $268
 11.11       (f) Having over $5,000,000 gross
 11.12       sales for the immediately 
 11.13       previous license or fiscal year    $692     $161     $321
 11.14  3.   Food broker                        $120     $ 32     $ 54
 11.15  4.   Wholesale food processor
 11.16       or manufacturer 
 11.17       (a) Having gross sales of less 
 11.18       than $125,000 for the 
 11.19       immediately previous license 
 11.20       or fiscal year                     $161     $ 54     $107
 11.21       (b) Having $125,000 to $250,000
 11.22       gross sales for the immediately 
 11.23       previous license or fiscal year    $332     $ 80     $161
 11.24       (c) Having $250,001 to $1,000,000
 11.25       gross sales for the immediately 
 11.26       previous license or fiscal year    $480     $107     $214
 11.27       (d) Having $1,000,001 to
 11.28       5,000,000 gross sales for the
 11.29       immediately previous license or
 11.30       fiscal year                        $601     $134     $268
 11.31       (e) Having $5,000,001 to 
 11.32       $10,000,000 gross sales for 
 11.33       the immediately previous 
 11.34       license or fiscal year             $692     $161     $321 
 11.35       (f) Having over $10,000,000 
 11.36       gross sales for the immediately 
 12.1        previous license or fiscal year    $963     $214     $375
 12.2   5.   Wholesale food processor of
 12.3        meat or poultry products
 12.4        under supervision of the
 12.5        U. S. Department of Agriculture 
 12.6        (a) Having gross sales of less 
 12.7        than $125,000 for the 
 12.8        immediately previous license 
 12.9        or fiscal year                     $107     $ 27     $ 54
 12.10       (b) Having $125,000 to 
 12.11       $250,000 gross sales for the
 12.12       immediately previous license
 12.13       or fiscal year                     $181     $ 54     $ 80
 12.14       (c) Having $250,001 to
 12.15       $1,000,000 gross sales for the
 12.16       immediately previous license
 12.17       or fiscal year                     $271     $ 80     $134
 12.18       (d) Having $1,000,001 to
 12.19       $5,000,000 gross sales 
 12.20       for the immediately previous 
 12.21       license or fiscal year             $332     $ 80     $161
 12.22       (e) Having $5,000,001 to 
 12.23       $10,000,000 gross sales for 
 12.24       the immediately previous 
 12.25       license or fiscal year             $392     $107     $187 
 12.26       (f) Having over $10,000,000 
 12.27       gross sales for the immediately 
 12.28       previous license or fiscal year    $535     $161     $268 
 12.29  6.   Wholesale food processor or
 12.30       manufacturer operating only at
 12.31       the state fair                     $125     $ 40     $ 50 
 12.32  7.   Wholesale food manufacturer
 12.33       having the permission of the
 12.34       commissioner to use the name
 12.35       Minnesota Farmstead cheese         $ 30 $ 0 $ 10 $ 0 $ 15
 12.36   8.  Nonresident frozen dairy 
 13.1        manufacturer                       $200     $ 50     $ 75
 13.2    9.  Wholesale food manufacturer
 13.3        processing less than 700,000
 13.4        pounds per year of raw milk        $ 30     $ 10     $ 15
 13.5    10. A milk marketing organization
 13.6        without facilities for 
 13.7        processing or manufacturing 
 13.8        that purchases milk from milk
 13.9        producers for delivery to a
 13.10       licensed wholesale food 
 13.11       processor or manufacturer          $ 50     $ 15     $ 25
 13.12     Sec. 13.  [28A.082] [FOOD HANDLER PLAN REVIEW.] 
 13.13     The fees for review under the Minnesota Food Code of food 
 13.14  handler facility floor plans are based upon the square footage 
 13.15  of the structure being newly constructed, remodeled, or 
 13.16  converted.  The fees are: 
 13.17            Square Footage          Review Fee
 13.18                0 -  4,999            $156.25
 13.19            5,000 - 24,999            $218.75
 13.20              25,000 plus             $343.75
 13.21     Plans, equipment specifications, material lists, and other 
 13.22  required information must be submitted on forms provided by the 
 13.23  department at least 30 days before commencement of construction, 
 13.24  remodeling, or conversion along with the required fee and review 
 13.25  application. 
 13.26     Fees collected under this section must be deposited into a 
 13.27  food handler review account in the agriculture fund.  Money in 
 13.28  the account, including interest earned, is appropriated to the 
 13.29  commissioner. 
 13.30     Sec. 14.  Minnesota Statutes 2000, section 29.22, 
 13.31  subdivision 2, is amended to read: 
 13.32     Subd. 2.  [FEE.] In addition to the annual food handler's 
 13.33  license, required under section 28A.04, there is an annual 
 13.34  inspection fee applicable to every person who engages in the 
 13.35  business of buying for resale, selling, or trading in eggs 
 13.36  except a retail grocer who sells eggs previously candled and 
 14.1   graded.  The fee must be computed on the basis of the number of 
 14.2   cases of shell eggs handled at each place of business during the 
 14.3   highest volume month of each licensing year.  If a given lot of 
 14.4   eggs is moved from one location of business to a second location 
 14.5   of business and the food handler's license is held by the same 
 14.6   person at both locations, the given lot of eggs must be counted 
 14.7   in determining the volume of business on which the inspection 
 14.8   fee is based at the first location of business but must not 
 14.9   enter into the computation of volume of business for the second 
 14.10  location.  For the purpose of determining fees, "case" means one 
 14.11  of 30 dozen capacity.  The schedule of fees is as follows: 
 14.12   
 14.13  HIGHEST VOLUME OF CASES EACH                 FEE    
 14.14  LICENSING YEAR     
 14.15     1 -     50                               $ 10 $ 12.50  
 14.16    51 -    100                               $ 25 $ 31.25 
 14.17   101 -   1000                               $ 50 $ 62.50 
 14.18  1001 -   2000                               $ 75 $ 93.75 
 14.19  2001 -   4000                               $100 $125.00 
 14.20  4001 -   6000                               $125 $156.25 
 14.21  6001 -   8000                               $150 $187.50 
 14.22  8001 - 10,000                               $200 $250.00 
 14.23    OVER 10,000                               $250 $312.00 
 14.24     Each person subject to the inspection fee in this section 
 14.25  shall, under the direction of the commissioner, keep records 
 14.26  necessary to accurately determine the volume of shell eggs on 
 14.27  which the inspection fee is due and shall prepare annually a 
 14.28  written report of the volume upon forms supplied by the 
 14.29  commissioner.  This report, together with the required 
 14.30  inspection fee, must be filed with the department on or before 
 14.31  the last day of May of each year.  
 14.32     Sec. 15.  Minnesota Statutes 2000, section 31.39, is 
 14.33  amended to read: 
 14.34     31.39 [ASSESSMENTS; INSPECTION SERVICES; COMMERCIAL 
 14.35  CANNERIES ACCOUNT.] 
 14.36     The commissioner is hereby authorized and directed to 
 15.1   collect from each commercial cannery an assessment for 
 15.2   inspection and services furnished, and for maintaining a 
 15.3   bacteriological laboratory and employing such bacteriologists 
 15.4   and trained and qualified sanitarians as the commissioner may 
 15.5   deem necessary.  The assessment to be made on each commercial 
 15.6   cannery, for each and every packing season, shall not exceed 
 15.7   one-half cent per case on all foods packed, canned, or preserved 
 15.8   therein, nor shall the assessment in any one calendar year to 
 15.9   any one cannery exceed $3,000 $6,000, and the minimum assessment 
 15.10  to any cannery in any one calendar year shall be $100.  The 
 15.11  commissioner shall provide appropriate deductions from 
 15.12  assessments for the net weight of meat, chicken, or turkey 
 15.13  ingredients which have been inspected and passed for 
 15.14  wholesomeness by the United States Department of Agriculture.  
 15.15  The commissioner may, when the commissioner deems it advisable, 
 15.16  graduate and reduce the assessment to such sum as is required to 
 15.17  furnish the inspection and laboratory services rendered.  The 
 15.18  assessment made and the license fees, penalties, and other sums 
 15.19  so collected shall be deposited in the state treasury, as other 
 15.20  departmental receipts are deposited, but shall constitute a 
 15.21  separate account to be known as the commercial canneries 
 15.22  inspection account, which is hereby created, and together with 
 15.23  moneys now remaining in said account, set aside, and 
 15.24  appropriated as a revolving fund, to meet the expense of special 
 15.25  inspection, laboratory and other services rendered, as provided 
 15.26  in sections 31.31 to 31.392.  The amount of such assessment 
 15.27  shall be due and payable on or before December 31, of each year, 
 15.28  and if not paid on or before February 15 following, shall bear 
 15.29  interest after that date at the rate of seven percent per annum, 
 15.30  and a penalty of ten percent on the amount of the assessment 
 15.31  shall also be added and collected. 
 15.32     Sec. 16.  [32.105] [MILK PROCUREMENT FEE.] 
 15.33     A dairy plant operator within the state, except the 
 15.34  operator of a plant that is required to pay a processor 
 15.35  assessment under section 32.394, subdivision 8d, must pay a fee 
 15.36  to the commissioner by the 18th of each month equal to 0.70 
 16.1   cents per hundredweight of milk purchased the previous month.  
 16.2   If a milk producer within the state ships milk out of the state 
 16.3   for sale, the producer must pay the fee to the commissioner 
 16.4   unless the purchaser voluntarily pays the fee. 
 16.5      Producers who ship milk out of state or processors must 
 16.6   submit monthly reports as to milk purchases along with the 
 16.7   appropriate procurement fee to the commissioner.  The 
 16.8   commissioner may have access to all relevant purchase or sale 
 16.9   records as necessary to verify compliance with this section and 
 16.10  may require the producer or purchaser to produce records as 
 16.11  necessary to determine compliance. 
 16.12     The fees collected under this section must be deposited in 
 16.13  the dairy services account in the agriculture fund.  Money in 
 16.14  the account, including interest earned, is appropriated to the 
 16.15  commissioner to administer this chapter. 
 16.16     Sec. 17.  Minnesota Statutes 2000, section 32.392, is 
 16.17  amended to read: 
 16.18     32.392 [APPROVAL OF DAIRY PLANTS.] 
 16.19     No person shall operate a dairy plant in this state unless 
 16.20  the dairy plant, and the equipment, water supply and plumbing 
 16.21  system connected therewith shall have been first approved by the 
 16.22  commissioner and a permit issued to operate the same.  At the 
 16.23  time of filing the application for a permit, the applicant shall 
 16.24  submit to the commissioner duplicate floor plans of such plant 
 16.25  which shall show the placement of equipment, the source of water 
 16.26  supply and method of distribution, and the location of the 
 16.27  plumbing system, including the disposal of wastes.  All new 
 16.28  construction or alteration of any existing dairy plants shall be 
 16.29  made only with the approval of the commissioner and duplicate 
 16.30  plans for such construction or alteration shall be submitted to 
 16.31  the commissioner for approval.  Any permit may be revoked by the 
 16.32  commissioner for due cause after the holder of the permit has 
 16.33  been given the opportunity for a hearing, in which case the 
 16.34  holder of the permit shall be notified in writing, at least 
 16.35  seven days prior to the date of such hearing, of the time and 
 16.36  place of such hearing.  
 17.1      The fee for approval services is $45 per hour of department 
 17.2   staff time spent in the approval process.  These fees must be 
 17.3   deposited in the dairy services account in the agriculture 
 17.4   fund.  Money in the account, including interest earned, is 
 17.5   appropriated to the commissioner to administer this chapter. 
 17.6      Sec. 18.  Minnesota Statutes 2000, section 32.394, 
 17.7   subdivision 8, is amended to read: 
 17.8      Subd. 8.  [GRADE A INSPECTION FEES.] (a) A processor or 
 17.9   marketing organization of milk, milk products, sheep milk, or 
 17.10  goat milk who wishes to market Grade A milk or use the Grade A 
 17.11  label must apply for Grade A inspection service from the 
 17.12  commissioner.  A pasteurization plant requesting Grade A 
 17.13  inspection service must hold a Grade A permit and pay an annual 
 17.14  inspection fee of no more than $500. 
 17.15     (b) For Grade A farm inspection service, the fee must be no 
 17.16  more than $50 $10 per farm, paid annually by the processor or by 
 17.17  the marketing organization on behalf of its patrons.  For a farm 
 17.18  requiring a reinspection in addition to the required biannual 
 17.19  inspections, an additional fee of no more than $25 per 
 17.20  reinspection must be paid by the processor or by the marketing 
 17.21  organization on behalf of its patrons.  The Grade A farm 
 17.22  inspection fee must not exceed the lesser of (1) 40 percent of 
 17.23  the department's actual average cost per farm inspection or 
 17.24  reinspection; or (2) the dollar limits set in this subdivision.  
 17.25  No fee increase may be implemented until after the commissioner 
 17.26  has held three or more public hearings No fee may be charged for 
 17.27  reinspection of a dairy farm. 
 17.28     Sec. 19.  Minnesota Statutes 2000, section 32.394, 
 17.29  subdivision 8a, is amended to read: 
 17.30     Subd. 8a.  [LABORATORY CERTIFICATION.] A laboratory, before 
 17.31  conducting a test the results of which are to be used in the 
 17.32  enforcement of requirements for distribution of milk, milk 
 17.33  products or goat milk under the Grade A label, must be certified 
 17.34  as meeting the requirements for laboratory approval that are 
 17.35  established by rule of the commissioner, and must receive a 
 17.36  permit from the commissioner.  The permit shall remain valid 
 18.1   without renewal unless suspended or revoked by the commissioner 
 18.2   for failure to comply with the requirements.  Satisfactory 
 18.3   analytical procedures and results for split samples, the nature, 
 18.4   number and frequency of which shall be in accordance with rules 
 18.5   established by the commissioner, shall be required of a 
 18.6   certified laboratory for retention of its certification and 
 18.7   permit. 
 18.8      An application for initial certification or biennial 
 18.9   recertification, or for recertification following suspension or 
 18.10  revocation of a permit shall be accompanied by a an annual fee 
 18.11  of not less than $100 nor more than $350.  The fee for each set 
 18.12  of split samples shall be not less than $25 nor more than 
 18.13  $75. based on the number of analysts approved and the number of 
 18.14  specific tests for which they are approved.  This fee must not 
 18.15  be less than $150 nor more than $200 per analyst approved and 
 18.16  not less than $35 or more than $50 for each test approved.  The 
 18.17  commissioner may annually adjust assessments within the limits 
 18.18  established by this subdivision to meet the cost recovery of the 
 18.19  services required by this subdivision. 
 18.20     A certified laboratory of record on June 5, 1975 shall be 
 18.21  issued a permit without having to pay the initial certification 
 18.22  fee. 
 18.23     Sec. 20.  Minnesota Statutes 2000, section 32.394, 
 18.24  subdivision 8e, is amended to read: 
 18.25     Subd. 8e.  [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk 
 18.26  pick-up tankers, milk transports, and tankers used to transport 
 18.27  milk products must be inspected and obtain a permit issued by 
 18.28  the commissioner annually by July 1.  The owner or operator must 
 18.29  pay a $25 permit fee per tanker to the commissioner.  The 
 18.30  commissioner may appoint such persons as the commissioner deems 
 18.31  qualified to make inspections. 
 18.32     Sec. 21.  Minnesota Statutes 2000, section 32.394, 
 18.33  subdivision 8b, is amended to read: 
 18.34     Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] (a) A 
 18.35  processor or marketing organization of milk, milk products, 
 18.36  sheep milk, or goat milk who wishes to market other than Grade A 
 19.1   milk must apply for a manufacturing grade farm certification 
 19.2   inspection from the commissioner.  A manufacturing plant that 
 19.3   pasteurizes milk or milk by-products must pay an annual fee 
 19.4   based on the number of pasteurization units.  This fee must not 
 19.5   exceed $140 per unit. 
 19.6      (b) The fee for farm certification inspection must not be 
 19.7   more than $25 $10 per farm to be paid annually by the processor 
 19.8   or by the marketing organization on behalf of its patrons.  For 
 19.9   a farm requiring more than the one inspection for certification, 
 19.10  a reinspection fee of no more than $25 must be paid by the 
 19.11  processor or by the marketing organization on behalf of its 
 19.12  patrons.  The fee must be set by the commissioner in an amount 
 19.13  necessary to cover 40 percent of the department's actual cost of 
 19.14  providing the annual inspection but must not exceed the limits 
 19.15  in this subdivision. No fee increase may be implemented until 
 19.16  after the commissioner has held three or more public hearings No 
 19.17  fee may be charged for reinspection of a farm. 
 19.18     Sec. 22.  Minnesota Statutes 2000, section 223.17, 
 19.19  subdivision 3, is amended to read: 
 19.20     Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
 19.21  commissioner shall set the fees for inspections under sections 
 19.22  223.15 to 223.22 at levels necessary to pay the expenses of 
 19.23  administering and enforcing sections 223.15 to 223.22.  
 19.24     The fee for any license issued or renewed after June 30, 
 19.25  1997 2001, shall be set according to the following schedule: 
 19.26     (a) $100 $125 plus $50 $100 for each additional location 
 19.27  for grain buyers whose gross annual purchases are less than 
 19.28  $100,000; 
 19.29     (b) $200 $250 plus $50 $100 for each additional location 
 19.30  for grain buyers whose gross annual purchases are at least 
 19.31  $100,000, but not more than $750,000; 
 19.32     (c) $300 $375 plus $100 $200 for each additional location 
 19.33  for grain buyers whose gross annual purchases are more than 
 19.34  $750,000 but not more than $1,500,000; 
 19.35     (d) $400 $500 plus $100 $200 for each additional location 
 19.36  for grain buyers whose gross annual purchases are more than 
 20.1   $1,500,000 but not more than $3,000,000; and 
 20.2      (e) $500 $625 plus $100 $200 for each additional location 
 20.3   for grain buyers whose gross annual purchases are more than 
 20.4   $3,000,000.  
 20.5      There is created the grain buyers and storage account in 
 20.6   the agricultural fund.  Money collected pursuant to sections 
 20.7   223.15 to 223.19 shall be paid into the state treasury and 
 20.8   credited to the grain buyers and storage account and is 
 20.9   appropriated to the commissioner for the administration and 
 20.10  enforcement of sections 223.15 to 223.22. 
 20.11     Sec. 23.  Minnesota Statutes 2000, section 231.16, is 
 20.12  amended to read: 
 20.13     231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
 20.14  OPERATOR TO OBTAIN LICENSE.] 
 20.15     A warehouse operator or household goods warehouse operator 
 20.16  must be licensed annually by the department.  The department 
 20.17  shall prescribe the form of the written application.  If the 
 20.18  department approves the license application and the applicant 
 20.19  files with the department the necessary bond, in the case of 
 20.20  household goods warehouse operators, or proof of warehouse 
 20.21  operators legal liability insurance coverage in an amount of 
 20.22  $50,000 or more, as provided for in this chapter, the department 
 20.23  shall issue the license upon payment of the license fee required 
 20.24  in this section.  A warehouse operator or household goods 
 20.25  warehouse operator to whom a license is issued shall pay a fee 
 20.26  as follows:  
 20.27          Building square footage used for public storage 
 20.28              (1) 5,000 or less               $ 80 $100
 20.29              (2) 5,001 to 10,000             $155 $200
 20.30              (3) 10,001 to 20,000            $250 $300 
 20.31              (4) 20,001 to 100,000           $315 $400     
 20.32              (5) 100,001 to 200,000          $410 $500 
 20.33              (6) over 200,000                $470 $600 
 20.34     Fees collected under this chapter must be paid into the 
 20.35  grain buyers and storage account established in section 232.22. 
 20.36     The license must be renewed annually on or before July 1, 
 21.1   and always upon payment of the full license fee required in this 
 21.2   section.  No license shall be issued for any portion of a year 
 21.3   for less than the full amount of the license fee required in 
 21.4   this section.  Each license obtained under this chapter must be 
 21.5   publicly displayed in the main office of the place of business 
 21.6   of the warehouse operator or household goods warehouse operator 
 21.7   to whom it is issued.  The license authorizes the warehouse 
 21.8   operator or household goods warehouse operator to carry on the 
 21.9   business of warehousing only in the one city or town named in 
 21.10  the application and in the buildings therein described.  The 
 21.11  department, without requiring an additional bond and license, 
 21.12  may issue permits from time to time to any warehouse operator 
 21.13  already duly licensed under the provisions of this chapter to 
 21.14  operate an additional warehouse in the same city or town for 
 21.15  which the original license was issued during the term thereof, 
 21.16  upon the filing an application for a permit in the form 
 21.17  prescribed by the department. 
 21.18     A license may be refused for good cause shown and revoked 
 21.19  by the department for violation of law or of any rule adopted by 
 21.20  the department, upon notice and after hearing. 
 21.21     Sec. 24.  [APPROPRIATIONS.] 
 21.22     Subdivision 1.  [BOARD OF ANIMAL HEALTH.] $300,000 in 
 21.23  fiscal year 2002 and $300,000 in fiscal year 2003 are 
 21.24  appropriated from the general fund to the board of animal health 
 21.25  for a program to investigate the avian pneumovirus disease and 
 21.26  to identify the infected flocks.  This is a one-time 
 21.27  appropriation.  
 21.28     Subd. 2.  [DEPARTMENT OF AGRICULTURE.] The amounts in 
 21.29  paragraphs (a) to (c) are appropriated from the general fund to 
 21.30  the commissioner of agriculture for the purposes indicated: 
 21.31     (a) $120,000 in fiscal year 2002, and $240,000 in fiscal 
 21.32  year 2003, for operating funds to staff and to maintain the 
 21.33  quarantine greenhouse facility constructed as authorized by Laws 
 21.34  2000, chapter 492, article 1, subdivision 4. 
 21.35     (b) $350,000 in fiscal year 2002, and $350,000 in fiscal 
 21.36  year 2003, for the agricultural best management practices 
 22.1   program. 
 22.2      (c) $425,000 in fiscal year 2002, and $200,000 in fiscal 
 22.3   year 2003, for an electronic information management system. 
 22.4      Subd. 3.  [REMEDIATION FUND.] $347,000 in fiscal year 2002, 
 22.5   and $353,000 in fiscal year 2003, are appropriated from the 
 22.6   remediation fund to the commissioner of agriculture for 
 22.7   administrative funding for the voluntary cleanup program. 
 22.8      Sec. 25.  [REPEALER.] 
 22.9      Minnesota Statutes 2000, section 31.11, subdivision 2, is 
 22.10  repealed. 
 22.11     Sec. 26.  [EFFECTIVE DATE.] 
 22.12     Section 1 is effective the day following final enactment.  
 22.13  Sections 13 and 19 are effective July 1, 2001.  Section 16 is 
 22.14  effective for milk delivered after June 30, 2001.