HF 2398

1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 04/05/2012 01:25pm

1.1A bill for an act

1.2relating to agriculture; modifying provisions related to pesticides, plants,
1.3nursery law, inspections, enforcements, food, animals, grain, and weights and
1.4measures; requiring reports; modifying certain ethanol and biodiesel provisions;
1.5delaying the effective date to eliminate certain limitations on wind easements;
1.6designating Lester as official state soil; requiring disclosures for certain treated
1.7ground beef; establishing pilot agricultural microloan program; modifying
1.8treatment of secured or guaranteed loans; modifying seized animal procedures;
1.9providing for food law enforcement; making technical and conforming
1.10changes;amending Minnesota Statutes 2010, sections 17.114, subdivisions 3,
1.114; 17.982, subdivision 1; 17.983; 17.984, subdivision 1; 18B.065, subdivision
1.122a, by adding a subdivision; 18B.316, subdivision 6; 18G.02, subdivision 14;
1.1318G.07, subdivision 1; 18G.10, subdivision 7, by adding a subdivision; 18H.02,
1.14subdivision 14, by adding a subdivision; 18H.10; 18H.14; 18J.01; 18J.02; 18J.03;
1.1518J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07,
1.16subdivisions 3, 4, 5; 21.82, subdivisions 7, 8; 25.33, subdivision 3; 28A.03,
1.17subdivisions 3, 5, 6; 31.01, subdivisions 2, 3, 4, 21, 25, 28; 31.121; 31.123;
1.1831.13; 31.94; 31A.02, subdivisions 13, 14, 15, 16; 31A.23; 32.01, subdivisions
1.1911, 12; 35.0661, subdivisions 2, 3; 40A.17; 41A.12, subdivisions 2, 4; 41B.036;
1.2041B.048, subdivision 6; 41B.055, subdivision 1; 41B.06; 48.24, subdivision 5;
1.21223.16, subdivision 12; 223.17, subdivisions 1, 4, 6, 9; 232.21, subdivisions 2,
1.226, 12; 232.22, subdivisions 3, 4, 5, 7; 232.23, subdivisions 2, 5, 10; 232.24,
1.23subdivisions 1, 2; 239.092; 239.093; 239.77, subdivisions 3, 5; 239.791,
1.24subdivision 1a; 347.54, subdivisions 2, 3; Laws 2008, chapter 296, article 1,
1.25section 25, as amended; Laws 2011, chapter 14, section 6; proposing coding for
1.26new law in Minnesota Statutes, chapters 1; 31; 41B; 346; proposing coding
1.27for new law as Minnesota Statutes, chapter 34A; repealing Minnesota Statutes
1.282010, sections 17B.01; 17B.02; 17B.03; 17B.04; 17B.041; 17B.0451; 17B.048;
1.2917B.05; 17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14; 17B.15,
1.30subdivisions 1, 3; 17B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1, 2;
1.3117B.28; 17B.29; 25.33, subdivision 18; 27.19, subdivisions 2, 3; 27.20; 28.15;
1.3228A.12; 28A.13; 29.28; 31.031; 31.041; 31.05; 31.14; 31.393; 31.58; 31.592;
1.3331.621, subdivision 5; 31.631, subdivision 4; 31.633, subdivision 2; 31.681;
1.3431.74, subdivision 3; 31.91; 31A.24; 31A.26; 34.113; 35.243; 35.255; 35.67;
1.3535.68; 35.69; 35.71, subdivisions 1, 2, 3, 4, 5, 6, 7; 35.72; 41B.048, subdivision
1.367; 223.16, subdivision 7; 223.18; 232.21, subdivision 4; 232.24, subdivision 3;
1.37232.25; 233.01; 233.015; 233.017; 233.02; 233.03; 233.04; 233.05; 233.06;
1.38233.07; 233.08; 233.09; 233.10; 233.11; 233.12; 233.22; 233.23; 233.24; 233.33;
1.39234.01; 234.03; 234.04; 234.05; 234.06; 234.08; 234.09; 234.10; 234.11; 234.12;
2.1234.13; 234.14; 234.15; 234.16; 234.17; 234.18; 234.19; 234.20; 234.21; 234.22;
2.2234.23; 234.24; 234.25; 234.27; 235.01; 235.02; 235.04; 235.05; 235.06; 235.07;
2.3235.08; 235.09; 235.10; 235.13; 235.18; 236.01; 236.02; 236.03; 236.04; 236.05;
2.4236.06; 236.07; 236.08; 236.09; 395.14; 395.15; 395.16; 395.17; 395.18; 395.19;
2.5395.20; 395.21; 395.22; 395.23; 395.24; Minnesota Rules, parts 1505.0780;
2.61505.0810; 1511.0100; 1511.0110; 1511.0120; 1511.0130; 1511.0140;
2.71511.0150; 1511.0160; 1511.0170; 1540.0010, subpart 26; 1550.0930, subparts
2.83, 4, 5, 6, 7; 1550.1040, subparts 3, 4, 5, 6; 1550.1260, subparts 6, 7; 1562.0100,
2.9subparts 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23,
2.1024, 25; 1562.0200; 1562.0400; 1562.0700; 1562.0900; 1562.1300; 1562.1800.
2.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.12ARTICLE 1

2.13AGRICULTURE POLICY

2.14    Section 1. [1.1485] STATE SOIL.
2.15Lester is designated as the official soil of the state of Minnesota.

2.16    Sec. 2. Minnesota Statutes 2010, section 17.114, subdivision 3, is amended to read:
2.17    Subd. 3. Duties. (a) The commissioner shall:
2.18(1) establish a clearinghouse and provide information, appropriate educational
2.19opportunities and other assistance to individuals, producers, and groups about sustainable
2.20agricultural techniques, practices, and opportunities;
2.21(2) survey producers and support services and organizations to determine
2.22information and research needs in the area of sustainable agricultural practices;
2.23(3) demonstrate the on-farm applicability of sustainable agriculture practices to
2.24conditions in this state;
2.25(4) coordinate the efforts of state agencies regarding activities relating to sustainable
2.26agriculture;
2.27(5) direct the programs of the department so as to work toward the sustainability of
2.28agriculture in this state;
2.29(6) inform agencies of how state or federal programs could utilize and support
2.30sustainable agriculture practices;
2.31(7) work closely with farmers, the University of Minnesota, and other appropriate
2.32organizations to identify opportunities and needs as well as assure coordination and
2.33avoid duplication of state agency efforts regarding research, teaching, and extension
2.34work relating to sustainable agriculture; and
2.35(8) work cooperatively with local governments and others to strengthen the
2.36connection between farmers who practice sustainable farming methods and urban, rural,
3.1and suburban consumers, including, but not limited to, promoting local farmers' markets
3.2and community-supported agriculture; and.
3.3(9) report to the Environmental Quality Board for review and then to the house of
3.4representatives and senate committees with jurisdiction over the environment, natural
3.5resources, and agriculture every even-numbered year.
3.6(b) The report under paragraph (a), clause (9), must include:
3.7(1) the presentation and analysis of findings regarding the current status and trends
3.8regarding the economic condition of producers; the status of soil and water resources
3.9utilized by production agriculture; the magnitude of off-farm inputs used; and the amount
3.10of nonrenewable resources used by Minnesota farmers;
3.11(2) a description of current state or federal programs directed toward sustainable
3.12agriculture including significant results and experiences of those programs;
3.13(3) a description of specific actions the Department of Agriculture is taking in the
3.14area of sustainable agriculture, including, but not limited to, specific actions to strengthen
3.15the connection between sustainable farmers and consumers under paragraph (a), clause (8);
3.16(4) a description of current and future research needs at all levels in the area of
3.17sustainable agriculture; and
3.18(5) suggestions for changes in existing programs or policies or enactment of new
3.19programs or policies that will affect farm profitability, maintain soil and water quality,
3.20reduce input costs, or lessen dependence upon nonrenewable resources.

3.21    Sec. 3. Minnesota Statutes 2010, section 17.114, subdivision 4, is amended to read:
3.22    Subd. 4. Integrated pest management. (a) The state shall promote and facilitate
3.23the use of integrated pest management through education, technical or financial assistance,
3.24information and research.
3.25(b) The commissioner shall coordinate the development of a state approach to the
3.26promotion and use of integrated pest management, which shall include delineation of
3.27the responsibilities of the state, public postsecondary institutions, Minnesota Extension
3.28Service, local units of government, and the private sector; establishment of information
3.29exchange and integration; procedures for identifying research needs and reviewing and
3.30preparing informational materials; procedures for factoring integrated pest management
3.31into state laws, rules, and uses of pesticides; and identification of barriers to adoption.
3.32(c) The commissioner shall report to the Environmental Quality Board for review
3.33and then to the house of representatives and senate committees with jurisdiction over the
3.34environment, natural resources, and agriculture every even-numbered year. The report
3.35shall be combined with the report required in subdivision 3.

4.1    Sec. 4. Minnesota Statutes 2010, section 18B.065, subdivision 2a, is amended to read:
4.2    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
4.3commissioner must designate a place in each county of the state that is available at least
4.4every other year for persons to dispose of unused portions of agricultural pesticides. The
4.5commissioner shall consult with the person responsible for solid waste management
4.6and disposal in each county to determine an appropriate location and to advertise each
4.7collection event. The commissioner may provide a collection opportunity in a county
4.8more frequently if the commissioner determines that a collection is warranted.
4.9    (b) For nonagricultural waste pesticides, the commissioner must provide a disposal
4.10opportunity each year in each county or enter into a contract with a group of counties
4.11under a joint powers agreement or contract for household hazardous waste disposal.
4.12(c) As provided under subdivision 7, the commissioner may enter into cooperative
4.13agreements with local units of government to provide the collections required under
4.14paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
4.15agreement, with funding for reasonable costs incurred including, but not limited to, related
4.16supplies, transportation, advertising, and disposal costs as well as reasonable overhead
4.17costs.
4.18    (d) A person who collects waste pesticide under this section shall, on a form
4.19provided or in a method approved by the commissioner, record information on each
4.20waste pesticide product collected including, but not limited to, the quantity collected
4.21and either the product name and its active ingredient or ingredients or the United States
4.22Environmental Protection Agency registration number. The person must submit this
4.23information to the commissioner at least annually by January 30.

4.24    Sec. 5. Minnesota Statutes 2010, section 18B.065, is amended by adding a subdivision
4.25to read:
4.26    Subd. 10. Indemnification. (a) A local unit of government, when operating or
4.27participating in a waste pesticide collection program pursuant to a cooperative agreement
4.28with the commissioner under this section, is an employee of the state, certified to be
4.29acting within the scope of employment, for purposes of the indemnification provisions of
4.30section 3.736, subdivision 9, for claims that arise out of the transportation, management,
4.31or disposal of any waste pesticide covered by the agreement:
4.32(1) from and after the time the waste permanently leaves the local unit of
4.33government's possession and comes into the possession of the state's authorized
4.34transporter; and
5.1(2) during the time the waste is transported between the local unit of government
5.2facilities by the state's authorized transporter.
5.3(b) The state is not obligated to defend or indemnify a local unit of government under
5.4this subdivision to the extent of the local unit of government's liability insurance. The
5.5local unit of government's right to indemnify is not a waiver of the limitation, defenses,
5.6and immunities available to either the local unit of government or the state by law.

5.7    Sec. 6. Minnesota Statutes 2010, section 18B.316, subdivision 6, is amended to read:
5.8    Subd. 6. Agricultural pesticide sales invoices. (a) Sales invoices for agricultural
5.9pesticides sold in or into this state by a licensed agricultural pesticide dealer or a pesticide
5.10dealer under this section must show the percent of gross sales fee rate assessed and the
5.11gross sales fee paid under section 18B.26, subdivision 3, paragraph (c).
5.12(b) A licensed agricultural pesticide dealer or a pesticide dealer may request an
5.13exemption from paragraph (a). The request for exemption must be in writing to the
5.14commissioner and must include verifiable information to justify that compliance with
5.15paragraph (a) is an extreme business hardship for the licensed agricultural pesticide dealer
5.16or pesticide dealer. The commissioner may approve or reject a request for exemption
5.17based upon review of the submitted information. An approved exemption under this
5.18paragraph is valid for one calendar year. The commissioner must maintain a list of those
5.19licensed agricultural pesticide dealers or pesticide dealers that have been granted an
5.20exemption on the department's Web site.
5.21(c) A licensed agricultural pesticide dealer or a pesticide dealer issued an exemption
5.22under paragraph (b) must include the following statement on each sales invoice for any
5.23sale of an agricultural pesticide: "Minnesota Department of Agriculture Annual Gross
5.24Sales Fees of 0.55% have been Assessed and Paid on the Sale of an Agricultural Pesticide."
5.25(d) Only the person who actually will pay the gross sales fee may show the rate or
5.26the amount of the fee as a line item on the sales invoice.

5.27    Sec. 7. Minnesota Statutes 2010, section 18G.02, subdivision 14, is amended to read:
5.28    Subd. 14. Infested. "Infested" means a plant has been overrun by plant pests,
5.29including weeds, or contains or harbors plant pests in a quantity that may threaten other
5.30plants.

5.31    Sec. 8. Minnesota Statutes 2010, section 18G.07, subdivision 1, is amended to read:
5.32    Subdivision 1. Creation of registry. (a) The commissioner shall maintain a list of
5.33all persons, businesses, and companies that employ persons who provide tree care or tree
6.1trimming services in Minnesota. All commercial tree care providers, tree trimmers, and
6.2persons who employers that direct employees to remove trees, limbs, branches, brush, or
6.3shrubs for hire must be registered by with the commissioner.
6.4(b) Persons or companies who are required to be registered under paragraph (a) must
6.5register annually by providing the following to the commissioner:
6.6(1) accurate and up-to-date business name, address, and telephone number;
6.7(2) a complete list of all Minnesota counties in which they work; and
6.8(3) a nonrefundable fee of $25 for initial application or renewing the registration.
6.9(c) All persons and companies required to be registered under paragraph (a) must
6.10register before conducting the activities specified in paragraph (a). Annual registration
6.11expires December 31, must be renewed annually, and the renewal fee remitted by January
6.127 1 of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee
6.13due must be charged for each month, or portion of a month, that the fee is delinquent up to
6.14a maximum of 30 percent for any application for renewal postmarked after December 31.

6.15    Sec. 9. Minnesota Statutes 2010, section 18G.10, subdivision 7, is amended to read:
6.16    Subd. 7. Supplemental, additional, or other certificates and permits. (a) The
6.17commissioner may provide inspection, sampling, or certification services to ensure
6.18that Minnesota plant treatment processes, plant products, or commodities meet import
6.19requirements of other states or countries.
6.20(b) The state plant regulatory official may issue permits and certificates verifying that
6.21various Minnesota agricultural plant treatment processes, products, or commodities meet
6.22specified plant health requirements, treatment requirements, or pest absence assurances
6.23based on determinations by the commissioner.

6.24    Sec. 10. Minnesota Statutes 2010, section 18G.10, is amended by adding a subdivision
6.25to read:
6.26    Subd. 8. Misuse of a certificate or permit. (a) Certificates and permits may not be
6.27altered, counterfeited, obtained, or used improperly, for any plant product.
6.28(b) Certificates and permits are not transferable to another location or another person.

6.29    Sec. 11. Minnesota Statutes 2010, section 18H.02, subdivision 14, is amended to read:
6.30    Subd. 14. Infested. "Infested" means a plant has been overrun by plant pests,
6.31including weeds, or contains or harbors plant pests in a quantity that may threaten other
6.32plants.

7.1    Sec. 12. Minnesota Statutes 2010, section 18H.02, is amended by adding a subdivision
7.2to read:
7.3    Subd. 16a. Nonhardy. "Nonhardy" means a plant that cannot be expected to
7.4survive or reliably produce flowers and fruit in average minimum winter temperatures
7.5at the growing site as determined by the commissioner based upon independent field
7.6trials and industry input represented by the United States Department of Agriculture
7.7Plant Hardiness Zone designations.

7.8    Sec. 13. Minnesota Statutes 2010, section 18H.10, is amended to read:
7.918H.10 STORAGE OF NURSERY STOCK.
7.10(a) All nursery stock must be kept and displayed under conditions of temperature,
7.11light, and moisture sufficient to maintain the viability and vigor of the nursery stock.
7.12(b) Packaged dormant nursery stock must be stored under conditions that retard
7.13growth, prevent etiolated growth, and protect its viability.
7.14(c) Balled and burlapped nursery stock being held for sale to the public must be kept
7.15in a moisture-holding material approved by the commissioner and not toxic to plants.
7.16The moisture-holding material must adequately cover and protect the ball of earth and
7.17must be kept moist at all times.

7.18    Sec. 14. Minnesota Statutes 2010, section 18H.14, is amended to read:
7.1918H.14 LABELING AND ADVERTISING OF NURSERY STOCK.
7.20(a) Plants, plant materials, or nursery stock must not be labeled or advertised with
7.21false or misleading information including, but not limited to, scientific name, variety,
7.22place of origin, hardiness zone as defined by the United States Department of Agriculture,
7.23and growth habit.
7.24(b) All nonhardy nursery stock as designated by the commissioner must be labeled
7.25"nonhardy" in Minnesota.
7.26(b) (c) A person may not offer for distribution plants, plant materials, or nursery
7.27stock, represented by some specific or special form of notation, including, but not limited
7.28to, "free from" or "grown free of," unless the plants are produced under a specific program
7.29approved by the commissioner to address the specific plant properties addressed in the
7.30special notation claim.
7.31(d) Nursery stock collected from the wild state must be inspected and certified
7.32prior to sale and at the time of sale must be labeled "Collected from the Wild." The label
7.33must remain on each plant or clump of plants while it is offered for sale and during the
8.1distribution process. The collected stock may be grown in nursery rows at least two years,
8.2after which the plants may be sold without the labeling required by this paragraph.

8.3    Sec. 15. Minnesota Statutes 2010, section 18J.01, is amended to read:
8.418J.01 DEFINITIONS.
8.5(a) The definitions in sections 18G.02 and, 18H.02, 27.01, 223.16, 231.01, and
8.6232.21 apply to this chapter.
8.7(b) For purposes of this chapter, "associated rules" means rules adopted under this
8.8chapter, chapter 18G or, 18H, 27, 223, 231, or 232, or sections 21.80 to 21.92.

8.9    Sec. 16. Minnesota Statutes 2010, section 18J.02, is amended to read:
8.1018J.02 DUTIES OF COMMISSIONER.
8.11The commissioner shall administer and enforce this chapter, chapters 18G and, 18H,
8.1227, 223, 231, and 232; sections 21.80 to 21.92,; and associated rules.

8.13    Sec. 17. Minnesota Statutes 2010, section 18J.03, is amended to read:
8.1418J.03 CIVIL LIABILITY.
8.15A person regulated by this chapter, chapter 18G or, 18H, 27, 223, 231, or 232,
8.16or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
8.17associated rules by the person's employee or agent.

8.18    Sec. 18. Minnesota Statutes 2010, section 18J.04, subdivision 1, is amended to read:
8.19    Subdivision 1. Access and entry. The commissioner, upon presentation of official
8.20department credentials, must be granted immediate access at reasonable times to sites
8.21where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
8.22seeds, plants, grain, household goods, general merchandise, produce, or other living or
8.23nonliving products or other objects regulated under chapter 18G or, 18H, 27, 223, 231, or
8.24232; sections 21.80 to 21.92,; or associated rules.

8.25    Sec. 19. Minnesota Statutes 2010, section 18J.04, subdivision 2, is amended to read:
8.26    Subd. 2. Purpose of entry. (a) The commissioner may enter sites for:
8.27(1) inspection of inventory and equipment for the manufacture, storage, handling,
8.28distribution, disposal, or any other process regulated under chapter 18G or, 18H, 27, 223,
8.29231, or 232; sections 21.80 to 21.92,; or associated rules;
9.1(2) sampling of sites, seeds, plants, products, grain, household goods, general
9.2merchandise, produce, or other living or nonliving objects that are manufactured, stored,
9.3distributed, handled, or disposed of at those sites and regulated under chapter 18G or,
9.418H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
9.5(3) inspection of records related to the manufacture, distribution, storage, handling,
9.6or disposal of seeds, plants, products, grain, household goods, general merchandise,
9.7produce, or other living or nonliving objects regulated under chapter 18G or, 18H, 27,
9.8223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
9.9(4) investigating compliance with chapter 18G or, 18H, 27, 223, 231, or 232;
9.10sections 21.80 to 21.92,; or associated rules; or
9.11(5) other purposes necessary to implement chapter 18G or, 18H, 27, 223, 231, or
9.12232; sections 21.80 to 21.92,; or associated rules.
9.13(b) The commissioner may enter any public or private premises during or after
9.14regular business hours without notice of inspection when a suspected violation of chapter
9.1518G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules may
9.16threaten public health or the environment.

9.17    Sec. 20. Minnesota Statutes 2010, section 18J.04, subdivision 3, is amended to read:
9.18    Subd. 3. Notice of inspection samples and analyses. (a) The commissioner shall
9.19provide the owner, operator, or agent in charge with a receipt describing any samples
9.20obtained. If requested, the commissioner shall split any samples obtained and provide
9.21them to the owner, operator, or agent in charge. If an analysis is made of the samples,
9.22a copy of the results of the analysis must be furnished to the owner, operator, or agent
9.23in charge within 30 days after an analysis has been performed. If an analysis is not
9.24performed, the commissioner must notify the owner, operator, or agent in charge within 30
9.25days of the decision not to perform the analysis.
9.26(b) The sampling and analysis must be done according to methods provided for
9.27under applicable provisions of chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80
9.28to 21.92,; or associated rules. In cases not covered by those sections and methods or in
9.29cases where methods are available in which improved applicability has been demonstrated
9.30the commissioner may adopt appropriate methods from other sources.

9.31    Sec. 21. Minnesota Statutes 2010, section 18J.04, subdivision 4, is amended to read:
9.32    Subd. 4. Inspection requests by others. (a) A person who believes that a violation
9.33of chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated
9.34rules has occurred may request an inspection by giving notice to the commissioner of the
10.1violation. The notice must be in writing, state with reasonable particularity the grounds
10.2for the notice, and be signed by the person making the request.
10.3(b) If after receiving a notice of violation the commissioner reasonably believes that
10.4a violation has occurred, the commissioner shall make a special inspection in accordance
10.5with the provisions of this section as soon as practicable, to determine if a violation has
10.6occurred.
10.7(c) An inspection conducted pursuant to a notice under this subdivision may cover
10.8an entire site and is not limited to the portion of the site specified in the notice. If the
10.9commissioner determines that reasonable grounds to believe that a violation occurred
10.10do not exist, the commissioner must notify the person making the request in writing of
10.11the determination.

10.12    Sec. 22. Minnesota Statutes 2010, section 18J.05, subdivision 1, is amended to read:
10.13    Subdivision 1. Enforcement required. (a) A violation of chapter 18G or, 18H, 27,
10.14223, 231, or 232; sections 21.80 to 21.92,; or an associated rule is a violation of this
10.15chapter.
10.16(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
10.17officers having authority in the enforcement of the general criminal laws must take action
10.18to the extent of their authority necessary or proper for the enforcement of chapter 18G or,
10.1918H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules or valid orders,
10.20standards, stipulations, and agreements of the commissioner.

10.21    Sec. 23. Minnesota Statutes 2010, section 18J.05, subdivision 2, is amended to read:
10.22    Subd. 2. Commissioner's discretion. If minor violations of chapter 18G or,
10.2318H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules occur or the
10.24commissioner believes the public interest will be best served by a suitable notice of
10.25warning in writing, this section does not require the commissioner to:
10.26(1) report the violation for prosecution;
10.27(2) institute seizure proceedings; or
10.28(3) issue a withdrawal from distribution, stop-sale, or other order.

10.29    Sec. 24. Minnesota Statutes 2010, section 18J.05, subdivision 6, is amended to read:
10.30    Subd. 6. Agent for service of process. All persons licensed, permitted, registered,
10.31or certified under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or
10.32associated rules must appoint the commissioner as the agent upon whom all legal process
11.1may be served and service upon the commissioner is deemed to be service on the licensee,
11.2permittee, registrant, or certified person.

11.3    Sec. 25. Minnesota Statutes 2010, section 18J.06, is amended to read:
11.418J.06 FALSE STATEMENT OR RECORD.
11.5A person must not knowingly make or offer a false statement, record, or other
11.6information as part of:
11.7(1) an application for registration, license, certification, or permit under chapter 18G
11.8or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules;
11.9(2) records or reports required under chapter 18G or, 18H, 27, 223, 231, or 232;
11.10sections 21.80 to 21.92,; or associated rules; or
11.11(3) an investigation of a violation of chapter 18G or, 18H, 27, 223, 231, or 232;
11.12sections 21.80 to 21.92,; or associated rules.

11.13    Sec. 26. Minnesota Statutes 2010, section 18J.07, subdivision 3, is amended to read:
11.14    Subd. 3. Cancellation of registration, permit, license, certification. The
11.15commissioner may cancel or revoke a registration, permit, license, or certification
11.16provided for under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,;
11.17or associated rules or refuse to register, permit, license, or certify under provisions of
11.18chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated rules
11.19if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
11.20practices in the evasion or attempted evasion of a provision of chapter 18G or, 18H, 27,
11.21223, 231, or 232; sections 21.80 to 21.92,; or associated rules.

11.22    Sec. 27. Minnesota Statutes 2010, section 18J.07, subdivision 4, is amended to read:
11.23    Subd. 4. Service of order or notice. (a) If a person is not available for service of an
11.24order, the commissioner may attach the order to the facility, site, seed or seed container,
11.25plant or other living or nonliving object regulated under chapter 18G or, 18H, 27, 223,
11.26231, or 232; sections 21.80 to 21.92,; or associated rules and notify the owner, custodian,
11.27other responsible party, or registrant.
11.28(b) The seed, seed container, plant, or other living or nonliving object regulated
11.29under chapter 18G or, 18H, 27, 223, 231, or 232; sections 21.80 to 21.92,; or associated
11.30rules may not be sold, used, tampered with, or removed until released under conditions
11.31specified by the commissioner, by an administrative law judge, or by a court.

11.32    Sec. 28. Minnesota Statutes 2010, section 18J.07, subdivision 5, is amended to read:
12.1    Subd. 5. Unsatisfied judgments. (a) An applicant for a license, permit, registration,
12.2or certification under provisions of this chapter, chapter 18G or, 18H, 27, 223, 231, or
12.3232; sections 21.80 to 21.92,; or associated rules may not allow a final judgment against
12.4the applicant for damages arising from a violation of those statutes or rules to remain
12.5unsatisfied for a period of more than 30 days.
12.6(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation
12.7of this chapter results in automatic suspension of the license, permit, registration, or
12.8certification.

12.9    Sec. 29. Minnesota Statutes 2010, section 21.82, subdivision 7, is amended to read:
12.10    Subd. 7. Vegetable seeds. For vegetable seeds prepared for use in home gardens
12.11or household plantings the requirements in paragraphs (a) to (p) apply. Vegetable seeds
12.12packed for sale in commercial quantities to farmers, conservation groups, and other similar
12.13entities are considered agricultural seeds and must be labeled accordingly.
12.14(a) The label must contain the name of the kind or kind and variety for each seed
12.15component in excess of five percent of the whole and the percentage by weight of each
12.16in order of its predominance. If the variety of those kinds generally labeled as to variety
12.17is not stated and it is not required to be stated, the label must show the name of the kind
12.18and the words "variety not stated."
12.19(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
12.20seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
12.21If two or more kinds of varieties are present in excess of five percent and are named on
12.22the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
12.23kind and variety that has pure seed that is less than 95 percent but more than 75 percent
12.24hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
12.25to show the percentage of pure seed that is hybrid seed or a statement such as "contains
12.26from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
12.27as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
12.28must be shown on the label in conjunction with the kind.
12.29(c) Blends must be listed on the label using the term "blend" in conjunction with
12.30the kind.
12.31(d) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."
12.32(e) The label must show a lot number or other lot identification.
12.33(f) The origin may be omitted from the label.
12.34(g) The label must show the year for which the seed was packed for sale listed as
12.35"packed for (year)" for seed with a percentage of germination that exceeds the standard last
13.1established by the commissioner, the percentage of germination and the calendar month
13.2and year that the percentages were determined by test, or the calendar month and year the
13.3germination test was completed and the statement "sell by (month and year listed here),"
13.4which may be no more than 12 months from the date of test, exclusive of the month of test.
13.5(h) For vegetable seeds which germinate less than the standard last established by
13.6the commissioner, the label must show:
13.7(1) a percentage of germination, exclusive of hard or dormant seed or both;
13.8(2) a percentage of hard or dormant seed or both, if present; and
13.9(3) the words "below standard" in not less than eight point type and the month and
13.10year the percentages were determined by test.
13.11(i) The net weight of the contents or a statement indicating the number of seeds in
13.12the container or both, must appear on either the container or the label, except that for
13.13containers with contents of 200 seeds or less a statement indicating the number of seeds in
13.14the container may be listed along with or in lieu of the net weight of contents.
13.15(j) The heading for and percentage by weight of pure seed may be omitted from a
13.16label if the total is more than 90 percent.
13.17(k) The heading for and percentage by weight of weed seed may be omitted from a
13.18label if they are not present in the seed.
13.19(l) The heading "noxious weed seeds" may be omitted from a label if they are not
13.20present in the seed.
13.21(m) The heading for and percentage by weight of other crop seed may be omitted
13.22from a label if it is less than five percent.
13.23(n) The heading for and percentage by weight of inert matter may be omitted from a
13.24label if it is less than ten percent.
13.25(o) The label must contain the name and address of the person who labeled the
13.26seed or who sells the seed in this state or a code number that has been registered with
13.27the commissioner.
13.28(p) The labeling requirements for vegetable seeds prepared for use in home gardens
13.29or household plantings when sold outside their original containers are met if the seed is
13.30weighed from a properly labeled container in the presence of the purchaser.

13.31    Sec. 30. Minnesota Statutes 2010, section 21.82, subdivision 8, is amended to read:
13.32    Subd. 8. Flower seeds. For flower and wildflower seeds prepared for use in home
13.33gardens or household plantings, the requirements in paragraphs (a) to (l) apply. Flower
13.34and wildflower seeds packed for sale in commercial quantities to farmers, conservation
14.1groups, and other similar entities are considered agricultural seeds and must be labeled
14.2accordingly.
14.3(a) The label must contain the name of the kind and variety or a statement of type
14.4and performance characteristics as prescribed by rule.
14.5(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
14.6seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
14.7If two or more kinds of varieties are present in excess of five percent and are named on
14.8the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
14.9kind and variety that has pure seed that is less than 95 percent but more than 75 percent
14.10hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
14.11to show the percentage of pure seed that is hybrid seed or a statement such as "contains
14.12from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
14.13as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
14.14must be shown on the label in conjunction with the kind.
14.15(c) Blends must be listed on the label using the term "blend" in conjunction with
14.16the kind.
14.17(d) Mixtures must be listed on the label using the term "mixture," "mix," or "mixed."
14.18(e) The label must contain the lot number or other lot identification.
14.19(f) The origin may be omitted from the label.
14.20(g) The label must contain the year for which the seed was packed for sale listed as
14.21"packed for (year)" for seed with a percentage of germination that exceeds the standard last
14.22established by the commissioner, the percentage of germination and the calendar month
14.23and year that the percentages were determined by test, or the calendar month and year the
14.24germination test was completed and the statement "sell by (month and year listed here),"
14.25which may be no more than 12 months from the date of test, exclusive of the month of test.
14.26(h) For flower seeds which germinate less than the standard last established by
14.27the commissioner, the label must show:
14.28(1) percentage of germination exclusive of hard or dormant seed or both;
14.29(2) percentage of hard or dormant seed or both, if present; and
14.30(3) the words "below standard" in not less than eight point type and the month and
14.31year this percentage was determined by test.
14.32(i) The label must show the net weight of contents or a statement indicating the
14.33number of seeds in the container, or both, on either the container or the label, except that
14.34for containers with contents of 200 seeds or less a statement indicating the number of
14.35seeds in the container may be listed along with or in lieu of the net weight of contents.
15.1(j) The heading for and percentage by weight of pure seed may be omitted from a
15.2label if the total is more than 90 percent.
15.3(k) The heading for and percentage by weight of weed seed may be omitted from a
15.4label if they are not present in the seed.
15.5(l) The heading "noxious weed seeds" may be omitted from a label if they are not
15.6present in the seed.
15.7(m) The heading for and percentage by weight of other crop seed may be omitted
15.8from a label if it is less than five percent.
15.9(n) The heading for and percentage by weight of inert matter may be omitted from a
15.10label if it is less than ten percent.
15.11(o) The label must show the name and address of the person who labeled the seed
15.12or who sells the seed within this state, or a code number which has been registered with
15.13the commissioner.

15.14    Sec. 31. Minnesota Statutes 2010, section 25.33, subdivision 3, is amended to read:
15.15    Subd. 3. Distribute. "Distribute" means to offer for sale, sell, exchange, or
15.16barter, or otherwise supply commercial feed; or to supply, furnish, or otherwise provide
15.17commercial feed to a contract feeder. The term "distribute" shall not include or apply to
15.18any feeds manufactured for livestock owned by the distributor.
15.19EFFECTIVE DATE.This section is effective retroactively from January 1,
15.202012, and applies to commercial feed inspection fees assessed by the commissioner of
15.21agriculture for calendar year 2012 and thereafter.

15.22    Sec. 32. [31.1211] LABELING CERTAIN TREATED GROUND BEEF.
15.23(a) A person selling ground beef to schools must disclose if it contains lean finely
15.24textured beef or boneless lean beef trimmings treated with ammonia gas or citric acid.
15.25(b) Ground beef sold to the public at retail that contains lean finely textured beef
15.26or boneless lean beef trimmings treated with ammonia gas or citric acid shall be labeled
15.27stating that fact.

15.28    Sec. 33. Minnesota Statutes 2010, section 31.13, is amended to read:
15.2931.13 ANALYSIS; EVIDENCE.
15.30It shall be the duty of the chief chemist and assistants laboratory director, managers,
15.31and analysts to make analyses and examinations of such articles as shall be furnished
15.32to them by the commissioner, for the purpose of determining from such examination
16.1whether such articles are adulterated, misbranded, insufficiently labeled, unwholesome,
16.2poisonous, or deleterious and whether such articles have been manufactured, used, sold,
16.3transported, offered for use, sale, or transportation, or had in possession with intent to use,
16.4sell, or transport in violation of any law now or hereafter enacted relating to food, or of
16.5any definition, standard, rule, or ruling made and published thereunder, and to certify the
16.6result of such analysis and examination to the commissioner. A copy of the result of the
16.7examination or analysis of any such article, duly authenticated, by the chemist analyst
16.8making such analysis determinations or examination, under oath of such chemist analyst,
16.9shall be prima facie evidence in all courts of the matters and facts therein contained.

16.10    Sec. 34. Minnesota Statutes 2010, section 31.94, is amended to read:
16.1131.94 COMMISSIONER DUTIES.
16.12(a) In order to promote opportunities for organic agriculture in Minnesota, the
16.13commissioner shall:
16.14(1) survey producers and support services and organizations to determine
16.15information and research needs in the area of organic agriculture practices;
16.16(2) work with the University of Minnesota to demonstrate the on-farm applicability
16.17of organic agriculture practices to conditions in this state;
16.18(3) direct the programs of the department so as to work toward the promotion of
16.19organic agriculture in this state;
16.20(4) inform agencies of how state or federal programs could utilize and support
16.21organic agriculture practices; and
16.22(5) work closely with producers, the University of Minnesota, the Minnesota Trade
16.23Office, and other appropriate organizations to identify opportunities and needs as well
16.24as ensure coordination and avoid duplication of state agency efforts regarding research,
16.25teaching, marketing, and extension work relating to organic agriculture.
16.26(b) By November 15 of each even-numbered year that ends in a zero or a five, the
16.27commissioner, in conjunction with the task force created in paragraph (c), shall report
16.28on the status of organic agriculture in Minnesota to the legislative policy and finance
16.29committees and divisions with jurisdiction over agriculture. The report must include:
16.30available data on organic acreage and production, available data on the sales or market
16.31performance of organic products, and recommendations regarding programs, policies, and
16.32research efforts that will benefit Minnesota's organic agriculture sector.
16.33(1) a description of current state or federal programs directed toward organic
16.34agriculture, including significant results and experiences of those programs;
17.1(2) a description of specific actions the department of agriculture is taking in the
17.2area of organic agriculture, including the proportion of the department's budget spent on
17.3organic agriculture;
17.4(3) a description of current and future research needs at all levels in the area of
17.5organic agriculture;
17.6(4) suggestions for changes in existing programs or policies or enactment of new
17.7programs or policies that will affect organic agriculture;
17.8(5) a description of market trends and potential for organic products;
17.9(6) available information, using currently reliable data, on the price received, yield,
17.10and profitability of organic farms, and a comparison with data on conventional farms; and
17.11(7) available information, using currently reliable data, on the positive and negative
17.12impacts of organic production on the environment and human health.
17.13(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
17.14University of Minnesota on policies and programs that will improve organic agriculture in
17.15Minnesota, including how available resources can most effectively be used for outreach,
17.16education, research, and technical assistance that meet the needs of the organic agriculture
17.17community. The task force must consist of the following residents of the state:
17.18(1) three farmers using organic agriculture methods;
17.19(2) one wholesaler or distributor of organic products;
17.20(3) one representative of organic certification agencies;
17.21(4) two organic processors;
17.22(5) one representative from University of Minnesota Extension;
17.23(6) one University of Minnesota faculty member;
17.24(7) one representative from a nonprofit organization representing producers;
17.25(8) two public members;
17.26(9) one representative from the United States Department of Agriculture;
17.27(10) one retailer of organic products; and
17.28(11) one organic consumer representative.
17.29The commissioner, in consultation with the director of the Minnesota Agricultural
17.30Experiment Station; the dean and director of University of Minnesota Extension; and the
17.31dean of the College of Food, Agricultural and Natural Resource Sciences shall appoint
17.32members to serve staggered two-year terms.
17.33Compensation and removal of members are governed by section 15.059, subdivision
17.346 . The task force must meet at least twice each year and expires on June 30, 2013.
17.35(d) For the purposes of expanding, improving, and developing production and
17.36marketing of the organic products of Minnesota agriculture, the commissioner may
18.1receive funds from state and federal sources and spend them, including through grants or
18.2contracts, to assist producers and processors to achieve certification, to conduct education
18.3or marketing activities, to enter into research and development partnerships, or to address
18.4production or marketing obstacles to the growth and well-being of the industry.
18.5(e) The commissioner may facilitate the registration of state organic production
18.6and handling operations including those exempt from organic certification according to
18.7Code of Federal Regulations, title 7, section 205.101, and certification agents operating
18.8within the state.

18.9    Sec. 35. Minnesota Statutes 2010, section 35.0661, subdivision 2, is amended to read:
18.10    Subd. 2. Quarantine zones. Upon an emergency declaration by the governor
18.11under subdivision 1, the board or any licensed veterinarian designated by the board may
18.12establish quarantine zones of control in any area where a specific animal is deemed by a
18.13licensed veterinarian as likely to be infected with the disease based on an actual veterinary
18.14examination or laboratory testing. Quarantine zones of control to restrict the movement of
18.15livestock must be the smallest size practicable to prevent the spread of disease and must
18.16exist for the shortest duration consistent with effective disease control. A quarantine zone
18.17of control must not extend beyond a radius of three miles from an animal deemed as likely
18.18to be infected with the disease, unless the board has adopted a rule regarding a specific
18.19disease requiring a larger quarantine zone of control.

18.20    Sec. 36. Minnesota Statutes 2010, section 35.0661, subdivision 3, is amended to read:
18.21    Subd. 3. Restrictions on movement out of quarantine zones. (a) The board may
18.22issue orders restricting the movement of persons, livestock, machinery, and personal
18.23property out of zones off infected premises designated by the board as quarantined under
18.24subdivision 2. The executive director of the board or any licensed veterinarian designated
18.25by the board may issue the orders. An order may be issued upon a determination that
18.26reasonable cause exists to believe that the movement of persons or personal property out
18.27of a quarantine zone will reasonably threaten to transport a dangerous, infectious, or
18.28communicable disease outside of the quarantine zone.
18.29(b) The order must be served upon any person subject to the order. The restrictions
18.30sought by the board on movement out of a quarantine zone must be limited to the greatest
18.31extent possible consistent with the paramount disease control objectives as determined by
18.32the board. An order under this section may be served on any day at any time. The order
18.33must include a notice of the person's rights under this section, including the ability to enter
19.1into an agreement to abide by disease control measures under paragraph (c) and the right
19.2to request a court hearing under paragraph (d).
19.3(c) No person may be restricted by an order under this subdivision for longer than 72
19.4hours, exclusive of Saturdays, Sundays, and legal holidays, so long as the person agrees to
19.5abide by the disease control measures established by the board. The person shall sign an
19.6acknowledgment form prepared by the board evidencing the person's agreement to abide
19.7by the disease control measures established by the board.
19.8(d) A person whose movements are restricted by an order under this subdivision may
19.9seek a district court hearing on the order at any time after it is served on the person. The
19.10hearing may be held by electronic means as soon as possible. The subject of the order may:
19.11(1) contest imposition of the order on grounds that it is an abuse of the board's
19.12discretion under this section; or
19.13(2) seek a variance from it to allow movement of a person inconsistent with the
19.14order, upon a showing that the person would otherwise suffer irreparable harm.

19.15    Sec. 37. Minnesota Statutes 2010, section 40A.17, is amended to read:
19.1640A.17 REPORT.
19.17The commissioner shall report to the legislature on January March 1 of each
19.18even-numbered year on activities under this chapter. By July 1, 1985, the report must
19.19include the survey of public awareness in the awareness program. The report shall include
19.20recommendations for funding levels and other necessary legislative action.

19.21    Sec. 38. Minnesota Statutes 2010, section 41A.12, subdivision 2, is amended to read:
19.22    Subd. 2. Activities authorized. For the purposes of this program, the commissioner
19.23may issue grants, loans, or other forms of financial assistance. Eligible activities include,
19.24but are not limited to, grants to livestock producers under the livestock investment grant
19.25program under section 17.118, bioenergy awards made by the NextGen Energy Board
19.26under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
19.27financial assistance to support other rural economic infrastructure activities.

19.28    Sec. 39. Minnesota Statutes 2010, section 41A.12, subdivision 4, is amended to read:
19.29    Subd. 4. Sunset. This section expires on June 30, 2013 2015.

19.30    Sec. 40. Minnesota Statutes 2010, section 41B.036, is amended to read:
19.3141B.036 GENERAL POWERS OF THE AUTHORITY.
20.1For the purpose of exercising the specific powers granted in section 41B.04 and
20.2effectuating the other purposes of sections 41B.01 to 41B.23 the authority has the general
20.3powers granted in this section.
20.4(a) It may sue and be sued.
20.5(b) It may have a seal and alter the seal.
20.6(c) It may make, and from time to time, amend and repeal rules consistent with
20.7sections 41B.01 to 41B.23.
20.8(d) It may acquire, hold, and dispose of real or personal property for its corporate
20.9purposes.
20.10(e) It may enter into agreements, contracts, or other transactions with any federal or
20.11state agency, any person and any domestic or foreign partnership, corporation, association,
20.12or organization, including contracts or agreements for administration and implementation
20.13of all or part of sections 41B.01 to 41B.23.
20.14(f) It may acquire real property, or an interest therein, in its own name, by purchase
20.15or foreclosure, where such acquisition is necessary or appropriate.
20.16(g) It may provide general technical services related to rural finance.
20.17(h) It may provide general consultative assistance services related to rural finance.
20.18(i) It may promote research and development in matters related to rural finance.
20.19(j) It may enter into agreements with lenders, borrowers, or the issuers of securities
20.20for the purpose of regulating the development and management of farms financed in whole
20.21or in part by the proceeds of qualified agricultural loans.
20.22(k) It may enter into agreements with other appropriate federal, state, or local
20.23governmental units to foster rural finance. It may give advance reservations of loan
20.24financing as part of the agreements, with the understanding that the authority will only
20.25approve the loans pursuant to normal procedures, and may adopt special procedures
20.26designed to meet problems inherent in such programs.
20.27(l) It may undertake and carry out studies and analyses of rural financing needs
20.28within the state and ways of meeting such needs including: data with respect to
20.29geographical distribution; farm size; the distribution of farm credit needs according to
20.30debt ratios and similar factors; the amount and quality of available financing and its
20.31distribution according to factors affecting rural financing needs and the meeting thereof;
20.32and may make the results of such studies and analyses available to the public and may
20.33engage in research and disseminate information on rural finance.
20.34(m) It may survey and investigate the rural financing needs throughout the state and
20.35make recommendations to the governor and the legislature as to legislation and other
20.36measures necessary or advisable to alleviate any existing shortage in the state.
21.1(n) It may establish cooperative relationships with such county and multicounty
21.2authorities as may be established and may develop priorities for the utilization of authority
21.3resources and assistance within a region in cooperation with county and multicounty
21.4authorities.
21.5(o) It may contract with, use, or employ any federal, state, regional, or local public
21.6or private agency or organization, legal counsel, financial advisors, investment bankers or
21.7others, upon terms it deems necessary or desirable, to assist in the exercise of any of the
21.8powers granted in sections 41B.01 to 41B.23 and to carry out the objectives of sections
21.941B.01 to 41B.23 and may pay for the services from authority funds.
21.10(p) It may establish cooperative relationships with counties to develop priorities for
21.11the use of authority resources and assistance within counties and to consider county plans
21.12and programs in the process of setting the priorities.
21.13(q) It may delegate any of its powers to its officers or staff.
21.14(r) It may enter into agreements with qualified agricultural lenders or others insuring
21.15or guaranteeing to the state the payment of all or a portion of qualified agricultural loans.
21.16(s) It may enter into agreements with eligible agricultural lenders providing for
21.17advance reservations of purchases of participation interests in restructuring loans, if
21.18the agreements provide that the authority may only purchase participation interests
21.19in restructuring loans under the normal procedure. The authority may provide in an
21.20agreement for special procedures or requirements designed to meet specific conditions or
21.21requirements.
21.22(t) It may allow farmers who are natural persons to combine programs of the federal
21.23Agriculture Credit Act of 1987 with programs of the Rural Finance Authority.
21.24(u) From within available funds generated by program fees, it may provide partial
21.25or full tuition assistance for farm management programs required under section 41B.03,
21.26subdivision 3 , clause (7).
21.27(v) It may accept for and on behalf of the state any gift, bequest, devise, grant, or
21.28interest in money or personal property of any kind tendered to the state for any purpose
21.29pertaining to the activities of the authority.

21.30    Sec. 41. Minnesota Statutes 2010, section 41B.048, subdivision 6, is amended to read:
21.31    Subd. 6. Loans. (a) The authority may disburse loans through a fiscal agent to
21.32farmers and agricultural landowners who are eligible under subdivision 5. The total
21.33accumulative loan principal must not exceed $75,000 per loan.
22.1(b) The fiscal agent may impose a loan origination fee in the amount of one percent
22.2of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
22.3the time of loan closing.
22.4(c) The loan may be disbursed over a period not to exceed 12 years.
22.5(d) A borrower may receive loans, depending on the availability of funds, for planted
22.6areas up to 160 acres for up to:
22.7(1) the total amount necessary for establishment of the crop;
22.8(2) the total amount of maintenance costs, including weed control, during the first
22.9three years; and
22.10(3) 70 percent of the estimated value of one year's growth of the crop for years
22.11four through 12.
22.12(e) Security for the loan must be the crop, a personal note executed by the borrower,
22.13an interest in the land upon which the crop is growing, and whatever other security is
22.14required by the fiscal agent or the authority. All recording fees must be paid by the
22.15borrower.
22.16(f) The authority may prescribe forms and establish an application process for
22.17applicants to apply for a loan.
22.18(g) The authority may impose a reasonable, nonrefundable application fee for each
22.19application for a loan under this program. The application fee is initially $50. Application
22.20fees received by the authority must be deposited in the agroforestry loan program revolving
22.21fund established in subdivision 7 revolving loan account established under section 41B.06.
22.22(h) Loans under the program must be made using money in the agroforestry loan
22.23program revolving fund established in subdivision 7 revolving loan account established
22.24under section 41B.06.
22.25(i) All repayments of financial assistance granted under this section, including
22.26principal and interest, must be deposited into the revolving loan account established
22.27under section 41B.06.
22.28(i) (j) The interest payable on loans made by the authority for the agroforestry
22.29loan program must, if funded by revenue bond proceeds, be at a rate not less than the
22.30rate on the revenue bonds, and may be established at a higher rate necessary to pay
22.31costs associated with the issuance of the revenue bonds and a proportionate share of the
22.32cost of administering the program. The interest payable on loans for the agroforestry
22.33loan program funded from sources other than revenue bond proceeds must be at a rate
22.34determined by the authority.
22.35(j) (k) Loan principal balance outstanding plus all assessed interest must be repaid
22.36within 120 days of harvest, but no later than 15 years from planting.

23.1    Sec. 42. Minnesota Statutes 2010, section 41B.055, subdivision 1, is amended to read:
23.2    Subdivision 1. Establishment. The authority must establish and implement a
23.3livestock equipment pilot loan program to help finance the purchase of livestock-related
23.4equipment and make livestock facilities improvements.

23.5    Sec. 43. [41B.056] PILOT AGRICULTURAL MICROLOAN PROGRAM.
23.6    Subdivision 1. Establishment. The authority shall establish and implement a pilot
23.7agricultural microloan program to help finance the production of specialty crops or
23.8eligible livestock. The authority may contract with an intermediary to provide an efficient
23.9delivery system for this program.
23.10    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
23.11(b) "Intermediary" means any lending institution or other organization of a for-profit
23.12or nonprofit nature that is in good standing with the state of Minnesota that has the
23.13appropriate business structure and trained personnel suitable to providing efficient
23.14disbursement of loan funds and the servicing and collection of loans.
23.15(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
23.16and other horticultural products, that are intensively cultivated.
23.17(d) "Eligible livestock" means poultry that has been allowed access to the outside,
23.18sheep, or goats.
23.19    Subd. 3. Eligibility. To be eligible for this program a borrower must:
23.20(1) be a legal resident of Minnesota;
23.21(2) either:
23.22(i) be a member of a protected group as defined in section 43A.02, subdivision 33; or
23.23(ii) be a qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph
23.24(b);
23.25(3) be or plan to become a grower of specialty crops or eligible livestock;
23.26(4) market or contract to market the specialty crops or eligible livestock; and
23.27(5) demonstrate an ability to repay the loan.
23.28    Subd. 4. Loans. (a) The authority may disburse loans through an intermediary
23.29to farmers who are eligible under subdivision 3. The total accumulative loan principal
23.30must not exceed $10,000 per loan.
23.31(b) Refinancing an existing debt is not an eligible purpose.
23.32(c) The loan may be disbursed over a period not to exceed six years.
23.33(d) A borrower may receive loans, depending on the availability of funds, up to 70
23.34percent of the estimated value of the crop or livestock.
24.1(e) Security for the loan must be a personal note executed by the borrower and any
24.2other security required by the intermediary or the authority.
24.3(f) The authority may prescribe forms and establish an application process for
24.4applicants to apply for a loan.
24.5(g) The interest payable on loans for the pilot agricultural microloan program must
24.6be at a rate determined by the authority.
24.7(h) Loans under this program will be made using money in the revolving loan
24.8account established under section 41B.06.
24.9(i) Repayments of financial assistance under this section, including principal and
24.10interest, must be deposited into the revolving loan account established under section
24.1141B.06.

24.12    Sec. 44. Minnesota Statutes 2010, section 41B.06, is amended to read:
24.1341B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
24.14    There is established in the rural finance administration fund a Rural Finance
24.15Authority revolving loan account that is eligible to receive appropriations and the transfer
24.16of loan funds from other programs. All repayments of financial assistance granted from
24.17this account, including principal and interest, must be deposited into this account. Interest
24.18earned on money in the account accrues to the account, and the money in the account
24.19is appropriated to the commissioner of agriculture for purposes of the Rural Finance
24.20Authority livestock equipment, methane digester, disaster recovery, and value-added
24.21agricultural product, agroforestry, and agricultural microloan loan programs, including
24.22costs incurred by the authority to establish and administer the programs.

24.23    Sec. 45. Minnesota Statutes 2010, section 48.24, subdivision 5, is amended to read:
24.24    Subd. 5. Treatment of secured or guaranteed loans. Loans or obligations shall not
24.25be subject under this section to any limitation based upon such capital and surplus to the
24.26extent that they are secured or covered by guarantees, or by commitments or agreements
24.27to take over or to purchase the same, made by:
24.28(1) the commissioner of agriculture on the purchase of agricultural land Minnesota
24.29Department of Agriculture;
24.30(2) any Federal Reserve bank;
24.31(3) the United States or any department, bureau, board, commission, or establishment
24.32of the United States, including any corporation wholly owned directly or indirectly by
24.33the United States;
24.34(4) the Minnesota Employment and Economic Development Department; or
25.1(5) a municipality or political subdivision within Minnesota to the extent that the
25.2guarantee or collateral is a valid and enforceable general obligation of that political body.

25.3    Sec. 46. Minnesota Statutes 2010, section 223.16, subdivision 12, is amended to read:
25.4    Subd. 12. Public grain warehouse operator. "Public grain warehouse operator"
25.5means a person operating a grain warehouse in which grain belonging to persons other
25.6than the grain warehouse operator is accepted for storage or purchase or who offers grain
25.7storage or warehouse facilities to the public for hire or a feed-processing plant that
25.8receives and stores grain, the equivalent of which it processes and returns to the grain's
25.9owner in amounts, at intervals, and with added ingredients that are mutually agreeable to
25.10the grain's owner and the person operating the plant.

25.11    Sec. 47. Minnesota Statutes 2010, section 223.17, subdivision 1, is amended to read:
25.12    Subdivision 1. Licenses. An application for a grain buyer's license must be filed
25.13with the commissioner and the license issued before any grain may be purchased. The
25.14commissioner must provide application forms and licenses that state the restrictions and
25.15authority to purchase and store grain under the license being applied for and issued. The
25.16categories of grain buyers' licenses are:
25.17(a) private grain warehouse operator's license;
25.18(b) public grain warehouse operator's license; and
25.19(c) independent grain buyer's license.
25.20The applicant for a grain buyer's license shall identify all grain buying locations
25.21owned or controlled by the grain buyer and all vehicles owned or controlled by the grain
25.22buyer used to transport purchased grain. Every applicant for a grain buyer's license shall
25.23have a permanent established place of business at each licensed location. An "established
25.24place of business" means a permanent enclosed building, including a house or a farm,
25.25either owned by the applicant or leased by the applicant for a period of at least one year,
25.26and where the books, records, and files necessary to conduct the business are kept and
25.27maintained. The commissioner may maintain information on grain buyers by categories
25.28including, but not limited to, the categories provided in clauses (a) to (c) and grain buyers
25.29that are licensed to purchase grain using trucks but that do not have a public or private
25.30warehouse license.

25.31    Sec. 48. Minnesota Statutes 2010, section 223.17, subdivision 4, is amended to read:
26.1    Subd. 4. Bond. (a) Before a grain buyer's license is issued, the applicant for
26.2the license must file with the commissioner a bond in a penal sum prescribed by the
26.3commissioner but not less than the following amounts:
26.4(a) (1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
26.5(b) (2) $20,000 for grain buyers whose gross annual purchases are more than
26.6$100,000 but not more than $750,000;
26.7(c) (3) $30,000 for grain buyers whose gross annual purchases are more than
26.8$750,000 but not more than $1,500,000;
26.9(d) (4) $40,000 for grain buyers whose gross annual purchases are more than
26.10$1,500,000 but not more than $3,000,000;
26.11(e) (5) $50,000 for grain buyers whose gross annual purchases are more than
26.12$3,000,000 but not more than $6,000,000;
26.13(f) (6) $70,000 for grain buyers whose gross annual purchases are more than
26.14$6,000,000 but not more than $12,000,000;
26.15(g) (7) $125,000 for grain buyers whose gross annual purchases are more than
26.16$12,000,000 but not more than $24,000,000; and
26.17(h) (8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
26.18(b) A grain buyer who has filed a bond with the commissioner prior to July 1, 2004,
26.19is not required to increase the amount of the bond to comply with this section until July 1,
26.202005. The commissioner may postpone an increase in the amount of the bond until July 1,
26.212006, if a licensee demonstrates that the increase will impose undue financial hardship on
26.22the licensee, and that producers will not be harmed as a result of the postponement. The
26.23commissioner may impose other restrictions on a licensee whose bond increase has been
26.24postponed. The amount of the bond shall be based on the most recent financial statement
26.25gross annual grain purchase report of the grain buyer filed under subdivision 6.
26.26(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
26.27commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
26.28the licensee shall comply with the applicable bonding requirements contained in clauses
26.29(a) to (h) paragraph (a), clauses (1) to (8).
26.30(d) In lieu of the bond required by this subdivision the applicant may deposit with
26.31the commissioner of management and budget cash, a certified check, a cashier's check,
26.32a postal, bank, or express money order, assignable bonds or notes of the United States,
26.33or an assignment of a bank savings account or investment certificate or an irrevocable
26.34bank letter of credit as defined in section 336.5-102, in the same amount as would be
26.35required for a bond.
27.1(e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
27.290 days' written notice of the bond's termination date to the licensee and the commissioner.

27.3    Sec. 49. Minnesota Statutes 2010, section 223.17, subdivision 6, is amended to read:
27.4    Subd. 6. Financial statements. For the purpose of fixing or changing the amount of
27.5a required bond or for any other proper reason, (a) The commissioner shall may require an
27.6annual financial statement from a licensee which has been prepared in accordance with
27.7generally accepted accounting principles and which meets the following requirements:
27.8(a) (1) The financial statement shall include, but not be limited to the following: (1)
27.9(i) a balance sheet; (2)
27.10(ii) a statement of income (profit and loss); (3)
27.11(iii) a statement of retained earnings; (4)
27.12(iv) a statement of changes in financial position; and (5)
27.13(v) a statement of the dollar amount of grain purchased in the previous fiscal year
27.14of the grain buyer.
27.15(b) (2) The financial statement shall be accompanied by a compilation report of the
27.16financial statement that is prepared by a grain commission firm or a management firm
27.17approved by the commissioner or by an independent public accountant, in accordance with
27.18standards established by the American Institute of Certified Public Accountants. Grain
27.19buyers purchasing less than 150,000 bushels of grain per calendar year may submit a
27.20financial statement prepared by a public accountant who is not an employee or a relative
27.21within the third degree of kindred according to civil law.
27.22(c) (3) The financial statement shall be accompanied by a certification by the chief
27.23executive officer or the chief executive officer's designee of the licensee, under penalty
27.24of perjury, that the financial statement accurately reflects the financial condition of the
27.25licensee for the period specified in the statement.
27.26(b) Only one financial statement must be filed for a chain of warehouses owned
27.27or operated as a single business entity, unless otherwise required by the commissioner.
27.28Any grain buyer having a net worth in excess of $500,000,000 need not file the financial
27.29statement required by this subdivision but must provide the commissioner with a certified
27.30net worth statement. All financial statements filed with the commissioner are private or
27.31nonpublic data as provided in section 13.02.

27.32    Sec. 50. Minnesota Statutes 2010, section 223.17, subdivision 9, is amended to read:
27.33    Subd. 9. Defaults; violations. It is a violation under this chapter if the commissioner
27.34finds, after an investigation is conducted, that a complaint is valid or that a licensee is in
28.1violation of the provisions of this chapter, the commissioner may immediately suspend
28.2the license, in which case the licensee shall surrender the license to the commissioner.
28.3Within 15 days, the licensee may request an administrative hearing subject to chapter 14
28.4to determine whether the license should be revoked. If no request is made within 15 days,
28.5the commissioner shall revoke the license.

28.6    Sec. 51. Minnesota Statutes 2010, section 232.21, subdivision 2, is amended to read:
28.7    Subd. 2. Bond. "Bond" means an acceptable obligation, running to the state as
28.8obligee, for the purpose of indemnifying depositors and producers of grain against breach
28.9of contract by a public grain warehouse or grain bank operator.

28.10    Sec. 52. Minnesota Statutes 2010, section 232.21, subdivision 6, is amended to read:
28.11    Subd. 6. Depositor. "Depositor" means a person who is the owner or legal holder of
28.12an outstanding grain warehouse receipt, grain bank receipt or open scale ticket marked
28.13for storage on which a receipt is to be issued, representing any grain stored in a public
28.14grain warehouse or grain bank.

28.15    Sec. 53. Minnesota Statutes 2010, section 232.21, subdivision 12, is amended to read:
28.16    Subd. 12. Public grain warehouse operator. "Public grain warehouse operator"
28.17means a person licensed to operate a grain warehouse in which grain belonging to persons
28.18other than the grain warehouse operator is accepted for storage or purchase, or who offers
28.19grain storage or grain warehouse facilities to the public for hire or a feed-processing
28.20plant that receives and stores grain, the equivalent of which, it processes and returns to
28.21the grain's owner in amounts, at intervals, and with added ingredients that are mutually
28.22agreeable to the grain's owner and the person operating the plant.

28.23    Sec. 54. Minnesota Statutes 2010, section 232.22, subdivision 3, is amended to read:
28.24    Subd. 3. Fees; grain buyers and storage account. There is created in the
28.25agricultural fund an account known as the grain buyers and storage account. The
28.26commissioner shall set the fees for inspections examinations, certifications, and licenses
28.27under sections 232.20 to 232.25 232.24 at levels necessary to pay the costs of administering
28.28and enforcing sections 232.20 to 232.25 232.24. All money collected pursuant to sections
28.29232.20 to 232.25 and chapters 233 and 236 232.24 shall be paid by the commissioner into
28.30the state treasury and credited to the grain buyers and storage account and is appropriated
28.31to the commissioner for the administration and enforcement of sections 232.20 to 232.25
28.32and chapters 233 and 236 232.24. All money collected pursuant to chapter 231 shall be
29.1paid by the commissioner into the grain buyers and storage account and is appropriated to
29.2the commissioner for the administration and enforcement of chapter 231.
29.3The fees for a license to store grain are as follows:
29.4(a) For a license to store grain, $110 for each home rule charter or statutory city or
29.5town in which a public grain warehouse is operated.
29.6(b) A person with a license to store grain in a public grain warehouse is subject to
29.7an examination fee for each licensed location, based on the following schedule for one
29.8examination:

29.9 29.10		Bushel Capacity	Examination Fee
29.11		Less than 150,001	$	300
29.12		150,001 to 250,000	$	425
29.13		250,001 to 500,000	$	545
29.14		500,001 to 750,000	$	700
29.15		750,001 to 1,000,000	$	865
29.16		1,000,001 to 1,200,000	$	1,040
29.17		1,200,001 to 1,500,000	$	1,205
29.18		1,500,001 to 2,000,000	$	1,380
29.19		More than 2,000,000	$	1,555

29.20(c) The fee for the second examination is $55 per hour per examiner for warehouse
29.21operators who choose to have it performed by the commissioner.
29.22(d) A penalty amount not to exceed ten percent of the fees due may be imposed by
29.23the commissioner for each month for which the fees are delinquent.

29.24    Sec. 55. Minnesota Statutes 2010, section 232.22, subdivision 4, is amended to read:
29.25    Subd. 4. Bonding. (a) Before a license is issued, the applicant for a public grain
29.26warehouse operator's license shall file with the commissioner a bond in a penal sum
29.27prescribed by the commissioner. The penal sum on a condition one bond shall be
29.28established by rule by the commissioner pursuant to the requirements of chapter 14 for
29.29all grain outstanding on grain warehouse receipts. The penal sum on a condition two
29.30bond shall not be less than $10,000 for each location up to a maximum of five locations.
29.31based on the annual average storage liability as stated on the statement of grain in storage
29.32report or on the gross annual grain purchase report, whichever is greater, and applying
29.33the following amounts:
29.34(1) $10,000 for storages with annual average storage liability of more than $0 but
29.35not more than $25,000;
29.36(2) $20,000 for storages with annual average storage liability of more than $25,001
29.37but not more than $50,000;
30.1(3) $30,000 for storages with annual average storage liability of more than $50,001
30.2but not more than $75,000;
30.3(4) $50,000 for storages with annual average storage liability of more than $75,001
30.4but not more than $100,000;
30.5(5) $75,000 for storages with annual average storage liability of more than $100,001
30.6but not more than $200,000;
30.7(6) $125,000 for storages with annual average storage liability of more than
30.8$200,001 but not more than $300,000;
30.9(7) $175,000 for storages with annual average storage liability of more than
30.10$300,001 but not more than $400,000;
30.11(8) $225,000 for storages with annual average storage liability of more than
30.12$400,001 but not more than $500,000;
30.13(9) $275,000 for storages with annual average storage liability of more than
30.14$500,001 but not more than $600,000;
30.15(10) $325,000 for storages with annual average storage liability of more than
30.16$600,001 but not more than $700,000;
30.17(11) $375,000 for storages with annual average storage liability of more than
30.18$700,001 but not more than $800,000;
30.19(12) $425,000 for storages with annual average storage liability of more than
30.20$800,001 but not more than $900,000;
30.21(13) $475,000 for storages with annual average storage liability of more than
30.22$900,001 but not more than $1,000,000; and
30.23(14) $500,000 for storages with annual average storage liability of more than
30.24$1,000,000.
30.25(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
30.2690 days' written notice of the bond's termination date to the licensee and the commissioner.

30.27    Sec. 56. Minnesota Statutes 2010, section 232.22, subdivision 5, is amended to read:
30.28    Subd. 5. Statement of grain in storage; reports. (a) All public grain warehouse
30.29operators must by the tenth day of each month February 15 of each year file with the
30.30commissioner on forms a form approved by the commissioner a report showing the net
30.31annual average liability of all grain outstanding on grain warehouse receipts as of the close
30.32of business on the last day of that occurred during the preceding month calendar year.
30.33This report shall be used for the purpose of establishing the penal sum of the bond.
30.34(b) Warehouse operators that are at a maximum bond and want to continue at
30.35maximum bond do not need to file this report.
31.1(b) If (c) It is a violation of this chapter for any public grain warehouse operator
31.2willfully neglects or refuses to fail to file the report required in clause (a) for two
31.3consecutive months, the commissioner may immediately suspend the person's license
31.4and the licensee must surrender the license to the commissioner. Within 15 days the
31.5licensee may request an administrative hearing subject to chapter 14 to determine if the
31.6license should be revoked. If no request is made within 15 days the commissioner shall
31.7revoke the license.
31.8(c) (d) Every public grain warehouse operator shall keep in a place of safety complete
31.9and accurate records and accounts relating to any grain warehouse operated. The records
31.10shall reflect each commodity received and shipped daily, the balance remaining in the
31.11grain warehouse at the close of each business day, a listing of all unissued grain warehouse
31.12receipts in the operator's possession, a record of all grain warehouse receipts issued which
31.13remain outstanding and a record of all grain warehouse receipts which have been returned
31.14for cancellation. Copies of grain warehouse receipts or other documents evidencing
31.15ownership of grain by a depositor, or other liability of the grain warehouse operator, shall
31.16be retained as long as the liability exists but must be kept for a minimum of three years.
31.17(d) (e) Every public grain warehouse operator must maintain in the grain warehouse
31.18at all times grain of proper grade and sufficient quantity to meet delivery obligations on
31.19all outstanding grain warehouse receipts.

31.20    Sec. 57. Minnesota Statutes 2010, section 232.22, subdivision 7, is amended to read:
31.21    Subd. 7. Bond disbursement. (a) The condition one bond of a public grain
31.22warehouse operator must be conditioned that the public grain warehouse operator issuing
31.23a grain warehouse receipt is liable to the depositor for the delivery of the kind, grade and
31.24net quantity of grain called for by the receipt.
31.25(b) The condition two bond shall provide for payment of loss caused by the grain
31.26buyer's failure to pay, upon the owner's demand, the purchase price of grain sold to the
31.27grain buyer. The bond shall be conditioned upon the grain buyer being duly licensed as
31.28provided herein. The bond shall not cover any transaction which constitutes a voluntary
31.29extension of credit.
31.30(c) (b) Upon notification of default, the commissioner shall determine the validity
31.31of all claims and notify all parties having filed claims. Any aggrieved party may appeal
31.32the commissioner's determination by requesting, within 15 days, that the commissioner
31.33initiate a contested case proceeding. In the absence of such a request, or following the
31.34issuance of a final order in a contested case, the surety company shall issue payment to
31.35those claimants entitled to payment. If the commissioner determines it is necessary, the
32.1commissioner may apply to the district court for an order appointing a trustee or receiver
32.2to manage and supervise the operations of the grain warehouse operator in default. The
32.3commissioner may participate in any resulting court proceeding as an interested party.
32.4(d) (c) For the purpose of determining the amount of bond disbursement against all
32.5valid claims under a condition one bond, all grain owned or stored in the public grain
32.6warehouse shall be sold and the combined proceeds deposited in a special fund. Payment
32.7shall be made from the special fund satisfying the valid claims of grain warehouse receipt
32.8holders.
32.9(e) (d) If a public grain warehouse operator has become liable to more than one
32.10depositor or producer by reason of breaches of the conditions of the bond and the
32.11amount of the bond is insufficient to pay, beyond the proceeds of the special fund, the
32.12entire liability to all valid claimants, the proceeds of the bond and special fund shall be
32.13apportioned among the valid claimants on a pro rata basis.
32.14(f) (e) A bond is not cumulative from one licensing period to the next. The maximum
32.15liability of the bond shall be its face value for the licensing period.

32.16    Sec. 58. Minnesota Statutes 2010, section 232.23, subdivision 2, is amended to read:
32.17    Subd. 2. Scale tickets. A public or private grain warehouse operator, upon
32.18receiving grain, shall issue a scale ticket for each load of grain received. Scale tickets shall
32.19contain the name, location and the date of each transaction, weight, volume, kind of
32.20grain, signature of warehouse operator, and be consecutively numbered. Electronic grain
32.21tickets do not require a signature. A duplicate copy of each scale ticket shall remain in the
32.22possession of the public or private grain warehouse operator as a permanent record. The
32.23original scale ticket shall be delivered to the depositor upon receipt of each load of grain.
32.24Each scale ticket shall have printed across its face "This is a memorandum, nonnegotiable,
32.25possession of which does not signify that settlement has or has not been consummated."
32.26The scale ticket shall state specifically whether the grain is received on contract, for
32.27storage, for shipment or consignment or sold. If the grain is received on contract or sold,
32.28the price shall be indicated on the scale ticket. All paper scale tickets shall be dated and
32.29signed by the public or private grain warehouse operator or the operator's agent or manager.

32.30    Sec. 59. Minnesota Statutes 2010, section 232.23, subdivision 5, is amended to read:
32.31    Subd. 5. Void agreements; penalty. A provision or agreement in a grain warehouse
32.32receipt not contained in subdivision 4 is void. The failure to issue a grain warehouse
32.33receipt, as directed, or the issuance of slips, memoranda or other forms of receipt
32.34embracing a different grain warehouse or storage contract is a misdemeanor, and no
33.1slip, memorandum or other form of receipt is admissible as evidence in any civil action.
33.2Nothing in sections 232.20 to 232.25 232.24 requires or compels any person operating a
33.3flour, cereal or feed mill or malthouse doing a manufacturing business, to receive, store or
33.4purchase at the mill or malthouse any kind of grain.

33.5    Sec. 60. Minnesota Statutes 2010, section 232.23, subdivision 10, is amended to read:
33.6    Subd. 10. Delivery of grain. (a) On the redemption of a grain warehouse receipt
33.7and payment of all lawful charges, the grain represented by the receipt is immediately
33.8deliverable to the depositor or the depositor's order, and is not subject to any further charge
33.9for storage after demand for delivery has been made and proper facilities for receiving and
33.10shipping the grain have been provided. If delivery has not commenced within 48 hours
33.11after demand has been made and proper facilities have been provided, the public grain
33.12warehouse operator issuing the grain warehouse receipt is liable to the owner in damages
33.13not exceeding two cents per bushel for each day's delay, unless the public grain warehouse
33.14operator makes delivery to different owners in the order demanded as rapidly as it can be
33.15done through ordinary diligence, or unless insolvency has occurred.
33.16(b) If a disagreement arises between the person receiving and the person delivering
33.17the grain at a public grain warehouse in this state as to the proper grade or dockage of any
33.18grain, an average sample of at least three quarts of the grain in dispute may be taken by
33.19either or both of the persons interested. The sample shall be certified by both the owner
33.20and the public grain warehouse operator as being true samples of the grain in dispute on
33.21the delivery day. The samples shall be forwarded in a suitable airtight container by parcel
33.22post or express, prepaid, with the name and address of both parties, to the head of the a
33.23United States Department of Agriculture authorized grain inspection program of the
33.24Department of Agriculture, who shall, upon request, examine the grain, and determine
33.25what grade or dockage the samples of grain are entitled to under the inspection rules.
33.26Before the results of the inspection are released to the person requesting the inspection,
33.27the person shall pay the required fee. The fee shall be the same as that required for similar
33.28services rendered by the grain inspection program.

33.29    Sec. 61. Minnesota Statutes 2010, section 232.24, subdivision 1, is amended to read:
33.30    Subdivision 1. Schedule of inspection examination. A licensee under sections
33.31232.20 to 232.25 is subject to two audits examinations annually conducted by the
33.32commissioner or the agricultural marketing service of the United States Department of
33.33Agriculture. The commissioner may, by rule, authorize one audit examination to be
33.34conducted by a qualified nongovernmental unit.

34.1    Sec. 62. Minnesota Statutes 2010, section 232.24, subdivision 2, is amended to read:
34.2    Subd. 2. Financial reports. A licensee under sections 232.20 to 232.25 upon request
34.3must provide to the commissioner a copy of the financial reports of an audit conducted by
34.4a qualified nongovernmental unit containing information the commissioner requires.

34.5    Sec. 63. Minnesota Statutes 2010, section 239.092, is amended to read:
34.6239.092 SALE FROM BULK.
34.7    (a) Bulk sales of commodities, when the buyer and seller are not both present to
34.8witness the measurement, must be accompanied by a delivery ticket containing the
34.9following information:
34.10    (1) the name and address of the person who weighed or measured the commodity;
34.11    (2) the date delivered;
34.12    (3) the quantity delivered;
34.13    (4) the count of individually wrapped packages delivered, if more than one is
34.14included in the quantity delivered;
34.15    (5) the quantity on which the price is based, if different than the quantity delivered;
34.16and
34.17    (6) the identity of the commodity in the most descriptive terms commercially
34.18practicable, including representations of quality made in connection with the sale.
34.19    (b) This section is not intended to conflict with the bulk sale requirements of the
34.20Department of Agriculture. If a conflict occurs, the law and rules of the Department of
34.21Agriculture govern.
34.22    (c) Firewood sold or distributed across state boundaries or more than 100 miles
34.23from its origin in this state must include delivery ticket information regarding the harvest
34.24locations of the wood by county or counties and state.
34.25(d) Paragraph (c) may be enforced using the authority granted in this chapter or
34.26section 18J.05 or 84D.13.

34.27    Sec. 64. Minnesota Statutes 2010, section 239.093, is amended to read:
34.28239.093 INFORMATION REQUIRED WITH PACKAGE.
34.29    (a) A package offered, exposed, or held for sale must bear a clear and conspicuous
34.30declaration of:
34.31    (1) the identity of the commodity in the package, unless the commodity can be easily
34.32identified through the wrapper or container;
34.33    (2) the net quantity in terms of weight, measure, or count;
35.1    (3) the name and address of the manufacturer, packer, or distributor, if the packages
35.2were not produced on the premises where they are offered, exposed, or held for sale; and
35.3    (4) the unit price, if the packages are part of a lot containing random weight
35.4packages of the same commodity.
35.5    (b) This section is not intended to conflict with the packaging requirements of the
35.6Department of Agriculture. If a conflict occurs, the laws and rules of the Department of
35.7Agriculture govern.
35.8    (c) Firewood sold or distributed across state boundaries or more than 100 miles from
35.9its origin in this state must include information regarding the harvest locations of the wood
35.10by county or counties and state on each label or wrapper.
35.11(d) Paragraph (c) may be enforced using the authority granted in this chapter or
35.12section 18J.05 or 84D.13.

35.13    Sec. 65. Minnesota Statutes 2010, section 239.77, subdivision 3, is amended to read:
35.14    Subd. 3. Exceptions. (a) The minimum content requirements of subdivision 2 do
35.15not apply to fuel used in the following equipment:
35.16    (1) motors located at an electric generating plant regulated by the Nuclear
35.17Regulatory Commission;
35.18    (2) railroad locomotives;
35.19    (3) off-road taconite and copper mining equipment and machinery;
35.20    (4) off-road logging equipment and machinery; and
35.21    (5) until May 1, 2010, vehicles and equipment used exclusively on an aircraft
35.22landing field vessels of the U.S. Coast Guard and vessels subject to inspection under
35.23United States Code, title 46, section 3301, subsections (1), (9), (10), (13), or (15).
35.24    (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
35.25Regulatory Commission has approved the use of biodiesel fuel in motors at electric
35.26generating plants under its regulation.
35.27    (c) The minimum content requirements of subdivision 2 do not apply to Number 1
35.28diesel fuel sold or offered for sale during the months of October, November, December,
35.29January, February, and March.
35.30(d) This subdivision expires on May 1, 2012 2014.
35.31EFFECTIVE DATE.This section is effective April 1, 2012.

35.32    Sec. 66. Minnesota Statutes 2010, section 239.77, subdivision 5, is amended to read:
35.33    Subd. 5. Annual report. (a) Beginning in 2009, the commissioner of agriculture
35.34must report by January 15 of each year to the chairs and ranking minority members of
36.1the legislative committees and divisions with jurisdiction over agriculture policy and
36.2finance regarding the implementation of the minimum content requirements in subdivision
36.32, including information about the price and supply of biodiesel fuel. The report shall
36.4include information about the impacts of the biodiesel mandate on the development of
36.5biodiesel production capacity in the state, and on the use of feedstock grown or raised in
36.6the state for biodiesel production. The report must include any written comments received
36.7from members of the biodiesel fuel task force by January 1 of that year designated by
36.8them for inclusion in the report.
36.9(b) The commissioner of agriculture, in consultation with the commissioner
36.10of commerce and the Biodiesel Fuel Task Force, shall study the need to continue
36.11the exceptions in subdivision 3. The 2013 report under paragraph (a) shall include
36.12recommendations for studies and other research needs to make a determination on the
36.13need for the exceptions, including any recommendations for use of the agricultural growth,
36.14research, and innovation program funding to conduct the research. The 2014 report under
36.15paragraph (a) shall contain the commissioner of agriculture's recommendations on whether
36.16to continue any of the exceptions in subdivision 3.

36.17    Sec. 67. Minnesota Statutes 2010, section 239.791, subdivision 1a, is amended to read:
36.18    Subd. 1a. Minimum ethanol content required. (a) Except as provided in
36.19subdivisions 10 to 14, on August 30, 2013 2014, and thereafter, a person responsible for
36.20the product shall ensure that all gasoline sold or offered for sale in Minnesota must contain
36.21at least the quantity of ethanol required by clause (1) or (2), whichever is greater:
36.22(1) 20 percent denatured ethanol by volume; or
36.23(2) the maximum percent of denatured ethanol by volume authorized in a waiver
36.24granted by the United States Environmental Protection Agency.
36.25(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
36.26clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
36.27content, exclusive of denaturants and other permitted components, comprises not less than
36.2818.4 percent by volume and not more than 20 percent by volume of the blend as determined
36.29by an appropriate United States Environmental Protection Agency or American Society of
36.30Testing Materials standard method of analysis of alcohol content in motor fuels.
36.31(c) This subdivision expires on December 31, 2012 2013, if by that date:
36.32(1) the commissioner of agriculture certifies and publishes the certification in
36.33the State Register that at least 20 percent of the volume of gasoline sold in the state
36.34is denatured ethanol; or
37.1(2) federal approval has not been granted under paragraph (a), clause (1). The
37.2United States Environmental Protection Agency's failure to act on an application shall not
37.3be deemed approval under paragraph (a), clause (1), or a waiver under section 211(f)(4) of
37.4the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).

37.5    Sec. 68. [346.47] SEIZED ANIMALS.
37.6    Subdivision 1. Definitions. As used in this section:
37.7(1) "establishment" means any public or private agency, person, society, or
37.8corporation having custody of animals that are seized under the authority of the state or
37.9any political subdivision of the state; and
37.10(2) "regular business day" means a day during which the establishment having
37.11custody of an animal is open to the public not less than four consecutive hours between
37.12the hours of 8:00 a.m. and 7:00 p.m.
37.13    Subd. 2. Impoundment; record keeping. All animals seized by public authority
37.14must be held in an establishment for redemption by the owner for at least five regular
37.15business days of the establishment or for a longer time specified by municipal ordinance.
37.16Establishments must maintain the following records of the animals in custody, and
37.17preserve the records for at least six months:
37.18(1) the description of the animal by species, breed, sex, approximate age, and other
37.19distinguishing traits;
37.20(2) the location at which the animal was seized;
37.21(3) the date of seizure;
37.22(4) the name and address of the person from whom any animal three months of age
37.23or over was received; and
37.24(5) the name and address of the person to whom any animal three months of age
37.25or over was transferred.
37.26The records must be maintained in a form permitting easy perusal by the public.
37.27A person may view the records and animals in custody at any time during which the
37.28establishment is open to the public.
37.29    Subd. 3. Release of animals. A person must not release an animal seized and held
37.30under this section for research or product testing, either directly or through an animal
37.31dealer. This subdivision does not apply to the temporary transfer of an animal to a college
37.32of veterinary medicine or veterinary technology school accredited by the American
37.33Veterinary Medicine Association for the purpose of sterilization or needed veterinary care.

37.34    Sec. 69. Minnesota Statutes 2010, section 347.54, subdivision 2, is amended to read:
38.1    Subd. 2. Reclaimed. A dangerous dog seized under subdivision 1 may be reclaimed
38.2by the owner of the dog upon payment of impounding and boarding fees, and presenting
38.3proof to the appropriate animal control authority that the requirements of sections 347.51
38.4and 347.52 will be met. A dog not reclaimed under this subdivision within seven days
38.5may be disposed of as provided under section 35.71, subdivision 3 in a manner permitted
38.6by law, and the owner is liable to the animal control authority for costs incurred in
38.7confining and disposing of the dog.

38.8    Sec. 70. Minnesota Statutes 2010, section 347.54, subdivision 3, is amended to read:
38.9    Subd. 3. Subsequent offenses; seizure. If a person has been convicted of a
38.10misdemeanor for violating a provision of section 347.51, 347.515, or 347.52, and the
38.11person is charged with a subsequent violation relating to the same dog, the dog must be
38.12seized by the animal control authority having jurisdiction. If the owner is convicted of the
38.13crime for which the dog was seized, the court shall order that the dog be destroyed in a
38.14proper and humane manner and the owner pay the cost of confining and destroying the
38.15animal. If the owner is not convicted and the dog is not reclaimed by the owner within
38.16seven days after the owner has been notified that the dog may be reclaimed, the dog may be
38.17disposed of as provided under section 35.71, subdivision 3 in a manner permitted by law.

38.18    Sec. 71. Laws 2008, chapter 296, article 1, section 25, the effective date, as amended
38.19by Laws 2010, chapter 333, article 1, section 33, is amended to read:
38.20EFFECTIVE DATE.This section is effective June 1, 2012 2017.
38.21EFFECTIVE DATE.This section is effective the day following final enactment.

38.22    Sec. 72. Laws 2011, chapter 14, section 6, is amended by adding an effective date to
38.23read:
38.24EFFECTIVE DATE.This section is effective retroactively from April 16, 2011.

38.25    Sec. 73. NEXT GENERATION BIOFUEL BLENDS.
38.26The NextGen Energy Board, established in Minnesota Statutes, section 41A.105,
38.27shall include in its February 2013 report to the legislature an analysis of next generation
38.28biofuels that can be blended with gasoline or other energy sources. The report shall
38.29analyze research on next generation biofuel blends and information on federal approvals
38.30needed and the status of the federal approval for next generation biofuel blends.

39.1    Sec. 74. BALANCE TRANSFER.
39.2The balance in the agroforestry loan program revolving fund established under
39.3Minnesota Statutes, section 41B.048, is transferred to the revolving loan account
39.4established under Minnesota Statutes, section 41B.06, and the agroforestry loan program
39.5revolving fund is abolished.

39.6    Sec. 75. REPEALER.
39.7(a) Minnesota Statutes 2010, sections 17B.01; 17B.02; 17B.03; 17B.04; 17B.041;
39.817B.0451; 17B.048; 17B.05; 17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14;
39.917B.15, subdivisions 1 and 3; 17B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1
39.10and 2; 17B.28; 17B.29; 25.33, subdivision 18; 27.19, subdivisions 2 and 3; 27.20; 35.243;
39.1135.255; 35.67; 35.68; 35.69; 35.71, subdivisions 1, 2, 3, 4, 5, 6, and 7; 35.72; 41B.048,
39.12subdivision 7; 223.16, subdivision 7; 223.18; 232.21, subdivision 4; 232.24, subdivision
39.133; 232.25; 233.01; 233.015; 233.017; 233.02; 233.03; 233.04; 233.05; 233.06; 233.07;
39.14233.08; 233.09; 233.10; 233.11; 233.12; 233.22; 233.23; 233.24; 233.33; 234.01; 234.03;
39.15234.04; 234.05; 234.06; 234.08; 234.09; 234.10; 234.11; 234.12; 234.13; 234.14; 234.15;
39.16234.16; 234.17; 234.18; 234.19; 234.20; 234.21; 234.22; 234.23; 234.24; 234.25; 234.27;
39.17235.01; 235.02; 235.04; 235.05; 235.06; 235.07; 235.08; 235.09; 235.10; 235.13; 235.18;
39.18236.01; 236.02; 236.03; 236.04; 236.05; 236.06; 236.07; 236.08; 236.09; 395.14; 395.15;
39.19395.16; 395.17; 395.18; 395.19; 395.20; 395.21; 395.22; 395.23; and 395.24, are repealed.
39.20(b) Minnesota Rules, parts 1505.0780; 1505.0810; 1511.0100; 1511.0110;
39.211511.0120; 1511.0130; 1511.0140; 1511.0150; 1511.0160; 1511.0170; 1562.0100,
39.22subparts 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25;
39.231562.0200; 1562.0400; 1562.0700; 1562.0900; 1562.1300; and 1562.1800, are repealed.

39.24ARTICLE 2

39.25FOOD ENFORCEMENT

39.26    Section 1. Minnesota Statutes 2010, section 17.982, subdivision 1, is amended to read:
39.27    Subdivision 1. Criminal penalties. A person who violates a provision of chapter
39.2825, 28A, 29, 31, 31A, or 31B, or 34 for which a penalty has not been prescribed is guilty
39.29of a misdemeanor.

39.30    Sec. 2. Minnesota Statutes 2010, section 17.983, is amended to read:
39.3117.983 ADMINISTRATIVE PENALTIES AND ENFORCEMENT.
40.1    Subdivision 1. Administrative penalties; citation. If a person has violated a
40.2provision of chapter 25, 28A, 29, 31, 31A, 31B, or 32, or 34, the commissioner may issue
40.3a written citation to the person by personal service or by certified mail. The citation must
40.4describe the nature of the violation and the statute or rule alleged to have been violated;
40.5state the time for correction, if applicable; and the amount of any proposed fine. The
40.6citation must advise the person to notify the commissioner in writing within 30 days if the
40.7person wishes to appeal the citation. If the person fails to appeal the citation, the citation
40.8is the final order and not subject to further review.
40.9    Subd. 3. Contested case. If a person appeals a citation or a penalty assessment
40.10within the time limits in subdivision 1, the commissioner shall initiate a contested
40.11proceeding under chapter 14. The report of the administrative law judge is the final
40.12decision of the commissioner of agriculture.

40.13    Sec. 3. Minnesota Statutes 2010, section 17.984, subdivision 1, is amended to read:
40.14    Subdivision 1. Authority. To carry out the commissioner's enforcement duties
40.15under chapter 29, 31, 31A, 32, or 34, the commissioner may, upon presenting appropriate
40.16credentials, during regular working hours and at other reasonable times, inspect premises
40.17subject to the commissioner's enforcement and licensing authority for reasons related to
40.18the commissioner's enforcement and licensing authority; request information from persons
40.19with information relevant to an inspection; and inspect relevant papers and records,
40.20including business records. The commissioner may issue notices in lieu of citations for
40.21minor violations if a notice is in the public interest.

40.22    Sec. 4. Minnesota Statutes 2010, section 28A.03, subdivision 3, is amended to read:
40.23    Subd. 3. Person. "Person" means any individual, firm, corporation, company,
40.24association, cooperative, or partnership and includes any trustee, receiver, assignee, or
40.25other similar representative thereof has the meaning given in section 34A.01, subdivision
40.2610.

40.27    Sec. 5. Minnesota Statutes 2010, section 28A.03, subdivision 5, is amended to read:
40.28    Subd. 5. Food. "Food," includes every article used for, entering into the
40.29consumption of, or used or intended for use in the preparation of food, drink, confectionery,
40.30or condiment for humans, whether simple, mixed or compound. "nonperishable food,"
40.31"frozen food," "perishable food," and "readily perishable food" have the meanings given
40.32in section 34A.01.
41.1(a) "Perishable food" is food which includes, but is not limited to fresh fruits, fresh
41.2vegetables, and other products which need protection from extremes of temperatures in
41.3order to avoid decomposition by microbial growth or otherwise.
41.4(b) "Readily perishable food" is food or a food ingredient consisting in whole or
41.5in part of milk, milk products, eggs, meat, fish, poultry or other food or food ingredient
41.6which is capable of supporting rapid and progressive growth of infectious or toxigenic
41.7microorganisms.
41.8(c) "Frozen food" is food which is processed and preserved by freezing in accordance
41.9with good commercial practices and which is intended to be sold in the frozen state.
41.10(d) For the purposes of this definition, packaged food in hermetically sealed
41.11containers processed by heat to prevent spoilage; packaged pickles; jellies, jams and
41.12condiments in sealed containers; bakery products such as bread, rolls, buns, donuts,
41.13fruit-filled pies and pastries; dehydrated packaged food; and dry or packaged food so low in
41.14moisture content as to preclude development of microorganisms are not "perishable food,"
41.15"readily perishable food," or "frozen food" within the meaning of paragraphs (a), (b), and
41.16(c), when they are stored and handled in accordance with good commercial practices.
41.17(e) "Nonperishable food" is food described in paragraph (d) with a shelf life of
41.18more than 90 days.

41.19    Sec. 6. Minnesota Statutes 2010, section 28A.03, subdivision 6, is amended to read:
41.20    Subd. 6. Sell; sale. "Sell" and "sale" include the keeping, offering, or exposing for
41.21sale, use, transporting, transferring, negotiating, soliciting, or exchange of food, the having
41.22in possession with intent to sell, use, transport, negotiate, solicit, or exchange the same
41.23and the storing, or carrying thereof in aid of traffic therein whether done or permitted in
41.24person or through others have the meanings given in section 34A.01, subdivision 12.

41.25    Sec. 7. Minnesota Statutes 2010, section 31.01, subdivision 2, is amended to read:
41.26    Subd. 2. Person. "Person" means any individual, firm, partnership, copartnership,
41.27society, association, company, or corporation and includes any trustee, receiver, assignee
41.28or other similar representative thereof has the meaning given in section 34A.01,
41.29subdivision 10.

41.30    Sec. 8. Minnesota Statutes 2010, section 31.01, subdivision 3, is amended to read:
41.31    Subd. 3. Food. "Food" means articles used for food or drink for humans or other
41.32animals, chewing gum, and articles used for components of any such article has the
41.33meaning given in section 34A.01, subdivision 4.

42.1    Sec. 9. Minnesota Statutes 2010, section 31.01, subdivision 4, is amended to read:
42.2    Subd. 4. Sell and sale. "Sell" and "sale" shall be considered to include the
42.3manufacture, production, processing, packing, exposure, offer, possession, and holding of
42.4any such article for sale; and the sale, dispensing, and giving of any such article, and the
42.5supplying or applying of any such article in the conduct of any food operation have the
42.6meanings given in section 34A.01, subdivision 12.

42.7    Sec. 10. Minnesota Statutes 2010, section 31.01, subdivision 21, is amended to read:
42.8    Subd. 21. Label. "Label" means a display of written, printed, or graphic matter
42.9upon the immediate container of any article, and includes a like display, if required by law
42.10or rule, on the outside container or wrapper, if any there be, of the retail package of such
42.11article has the meaning given in section 34A.01, subdivision 6.

42.12    Sec. 11. Minnesota Statutes 2010, section 31.01, subdivision 25, is amended to read:
42.13    Subd. 25. Labeling. "Labeling" means all labels and other written, printed, or
42.14graphic matter upon an article or any of its containers or wrappers, or accompanying such
42.15article has the meaning given in section 34A.01, subdivision 7.

42.16    Sec. 12. Minnesota Statutes 2010, section 31.01, subdivision 28, is amended to read:
42.17    Subd. 28. Pesticide chemical. "Pesticide chemical" means any substance which,
42.18alone, in chemical combination, or in formulation with one or more other substances is an
42.19"economic poison" within the meaning of chapter 24, or the Federal Insecticide, Fungicide
42.20and Rodenticide Act (United States Code, title 7, sections 135-135k), as amended, and
42.21which is used in the production, storage, or transportation of raw agricultural commodities
42.22has the meaning given in section 18B.01, subdivision 18.

42.23    Sec. 13. Minnesota Statutes 2010, section 31.121, is amended to read:
42.2431.121 FOOD ADULTERATION.
42.25A food shall be deemed to be adulterated: if it is covered by section 34A.02.
42.26(a) If it bears or contains any poisonous or deleterious substance which may render it
42.27injurious to health; but in case the substance is not an added substance such food shall
42.28not be considered adulterated under this clause if the quantity of such substance in such
42.29food does not ordinarily render it injurious to health; or
42.30(b) If it bears or contains any added poisonous or added deleterious substance, other
42.31than one which is a pesticide chemical in or on a raw agricultural commodity; a food
42.32additive; or a color additive, which is unsafe within the meaning of section 31.122; or
43.1(c) If it is a raw agricultural commodity and it bears or contains a pesticide chemical
43.2which is unsafe within the meaning of section 31.122; or
43.3(d) If it is or it bears or contains any food additive which is unsafe within the
43.4meaning of section 31.122; provided that where a pesticide chemical has been used in or
43.5on a raw agricultural commodity in conformity with an exemption granted or tolerance
43.6prescribed under section 31.122, and such raw agricultural commodity has been subjected
43.7to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of
43.8such pesticide chemical remaining in or on such processed food shall, notwithstanding
43.9the provisions of section 31.122 and this clause, not be deemed unsafe if such residue in
43.10or on the raw agricultural commodity has been removed to the extent possible in good
43.11manufacturing practice, and the concentration of such residue in the processed food
43.12when ready to eat is not greater than the tolerance prescribed for the raw agricultural
43.13commodity; or
43.14(e) If it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
43.15decomposed substance, or if it is otherwise unfit for food; or
43.16(f) If it has been produced, prepared, packed, or held under insanitary conditions
43.17whereby it may have become contaminated with filth, or whereby it may have been
43.18rendered diseased, unwholesome, or injurious to health; or
43.19(g) If it is in whole or in part the product of a diseased animal or of an animal which
43.20has died otherwise than by slaughter, or of an animal that has been fed upon the uncooked
43.21offal from a slaughterhouse; or
43.22(h) If its container is composed in whole or in part of any poisonous or deleterious
43.23substance which may render the contents injurious to health; or
43.24(i) If it has been intentionally subjected to radiation, unless the use of the radiation
43.25was in conformity with a rule or exemption in effect pursuant to section 31.122 or section
43.26409 of the federal act; or
43.27(j) If any valuable constituent has been in whole or in part omitted or abstracted
43.28therefrom; or
43.29(k) If any substance has been substituted wholly or in part therefor; or
43.30(l) If damage or inferiority has been concealed in any manner; or
43.31(m) If any substance has been added thereto or mixed or packed therewith so as
43.32to increase its bulk or weight, or reduce its quality or strength or make it appear better
43.33or of greater value than it is; or
43.34(n) If it is confectionery, and (1) has partially or completely imbedded therein any
43.35nonnutritive object; provided, that this clause shall not apply in the case of any nonnutritive
43.36object if in the judgment of the commissioner, as provided by rules, such object is of
44.1practical functional value to the confectionery product and would not render the product
44.2injurious or hazardous to health; or (2) bears or contains any nonnutritive substance;
44.3provided, that this clause shall not apply to (i) a confection containing alcohol as defined
44.4in section 31.76, or (ii) a safe nonnutritive substance which is in or on confectionery by
44.5reason of its use for some practical functional purpose in the manufacture, packaging, or
44.6storing of such confectionery if the use of the substance does not promote deception of the
44.7consumer or otherwise result in adulteration or misbranding in violation of any provision
44.8of the Minnesota Food Law; and provided further, that the commissioner may, for the
44.9purpose of avoiding or resolving uncertainty as to the application of this clause, issue rules
44.10allowing or prohibiting the use of particular nonnutritive substances; or
44.11(o) If it is or bears or contains any color additive which is unsafe within the meaning
44.12of section 31.122; or
44.13(p) If it is oleomargarine or margarine or butter and any of the raw material used
44.14therein consisted in whole or in part of any filthy, putrid, or decomposed substance, or
44.15such oleomargarine or margarine or butter is otherwise unfit for food.

44.16    Sec. 14. Minnesota Statutes 2010, section 31.123, is amended to read:
44.1731.123 FOOD MISBRANDING.
44.18A food shall be deemed to be is misbranded: if it is covered by section 34A.03.
44.19(a) If its labeling is false or misleading in any particular, or if its labeling, whether on
44.20the commodity itself, its container or its package, fails to conform with the requirements
44.21of Laws 1974, chapter 84;
44.22(b) If it is offered for sale under the name of another food;
44.23(c) If it is an imitation of another food for which a definition and standard of identity
44.24have been prescribed by rules as provided by sections 31.10 and 31.102; or if it is an
44.25imitation of another food that is not subject to clause (g), unless in either case its label
44.26bears in type of uniform size and prominence the word "imitation" and immediately
44.27thereafter the name of the food imitated;
44.28(d) If its container is so made, formed, or filled as to be misleading;
44.29(e) If in package form, unless it bears a label containing (1) the name and place of
44.30business of the manufacturer, packer, or distributor, and (2) an accurate statement of
44.31the net quantity of the contents in terms of weight, measure, or numerical count, which
44.32statement shall be separately and accurately stated in a uniform location upon the principal
44.33display panel of the label; provided, that under this subclause reasonable variations shall
44.34be permitted, and exemptions as to small packages shall be established by rules prescribed
44.35by the commissioner;
45.1(f) If any word, statement, or other information required by or under authority of
45.2the Minnesota Food Law to appear on the label or labeling is not prominently placed
45.3thereon with such conspicuousness (as compared with other words, statements, designs, or
45.4devices, in the labeling) and in such terms as to render it likely to be read and understood
45.5by the ordinary individual under customary conditions of purchase and use;
45.6(g) If it purports to be or is represented as a food for which a definition and standard
45.7of identity have been prescribed by rules as provided by sections 31.10 and 31.102,
45.8unless (1) it conforms to such definition and standard, and (2) its label bears the name
45.9of the food specified in the definition and standard, and, insofar as may be required by
45.10such rules, the common names of optional ingredients (other than spices, flavoring, and
45.11coloring) present in such food;
45.12(h) If it purports to be or is represented as (1) a food for which a standard of quality
45.13has been prescribed by rules as provided by sections 31.10 and 31.102, and its quality falls
45.14below such standard unless its label bears, in such manner and form as such rules specify,
45.15a statement that it falls below such standard, or (2) a food for which a standard or standards
45.16of fill of container have been prescribed by rule as provided by sections 31.10 and 31.102,
45.17and it falls below the standard of fill of container applicable thereto unless its label bears, in
45.18such manner and form as such rules specify, a statement that it falls below such standard;
45.19(i) If it is not subject to the provisions of clause (g), unless it bears labeling clearly
45.20giving (1) the common or usual name of the food, if any there be, and (2) in case it
45.21is fabricated from two or more ingredients, the common or usual name of each such
45.22ingredient; except that spices, flavorings, and colorings, other than those sold as such,
45.23may be designated as spices, flavorings, and colorings, without naming each; provided,
45.24that to the extent that compliance with the requirements of this subclause is impractical
45.25or results in deception or unfair competition, exemptions shall be established by rules
45.26promulgated by the commissioner;
45.27(j) If it purports to be or is represented for special dietary uses, unless its label
45.28bears such information concerning its vitamin, mineral, and other dietary properties as
45.29the commissioner determines to be, and by rules prescribes as, necessary in order to fully
45.30inform purchasers as to its value for such uses;
45.31(k) If it bears or contains any artificial flavoring, artificial coloring, or chemical
45.32preservative, unless it bears labeling stating that fact; provided, that to the extent that
45.33compliance with the requirements of this clause is impracticable, exemptions shall be
45.34established by rules promulgated by the commissioner. The provisions of this clause and
45.35clauses (g) and (i) with respect to artificial coloring do not apply to butter, cheese or ice
46.1cream. The provisions with respect to chemical preservatives do not apply to a pesticide
46.2chemical when used in or on a raw agricultural commodity which is the product of the soil;
46.3(l) If it is a raw agricultural commodity which is the product of the soil, bearing or
46.4containing a pesticide chemical applied after harvest, unless the shipping container of such
46.5commodity bears labeling which declares the presence of such chemical in or on such
46.6commodity and the common or usual name and the function of such chemical; provided,
46.7however, that no such declaration shall be required while such commodity, having been
46.8removed from the shipping container, is being held or displayed for sale at retail out of
46.9such container in accordance with the custom of the trade;
46.10(m) If it is a product intended as an ingredient of another food and when used
46.11according to the directions of the purveyor will result in the final food product being
46.12adulterated or misbranded;
46.13(n) If it is a color additive unless its packaging and labeling are in conformity with
46.14such packaging and labeling requirements applicable to such color additive prescribed
46.15under the provisions of the federal act.

46.16    Sec. 15. Minnesota Statutes 2010, section 31A.02, subdivision 13, is amended to read:
46.17    Subd. 13. Adulterated. "Adulterated" means a carcass, part of a carcass, meat,
46.18poultry, poultry food product, or meat food product under one or more of the following
46.19circumstances: an item is covered by section 34A.02.
46.20(a) if it bears or contains a poisonous or harmful substance which may render
46.21it injurious to health; but if the substance is not an added substance, the article is not
46.22adulterated if the quantity of the substance in or on the article does not ordinarily make it
46.23injurious to health;
46.24(b) if it bears or contains, by administration of a substance to the live animal or
46.25otherwise, an added poisonous or harmful substance, other than (1) a pesticide chemical in
46.26or on a raw agricultural commodity; (2) a food additive; or (3) a color additive, which
46.27may, in the judgment of the commissioner, make the article unfit for human food;
46.28(c) if it is, in whole or in part, a raw agricultural commodity that bears or contains a
46.29pesticide chemical which is unsafe within the meaning of section 408 of the Federal
46.30Food, Drug, and Cosmetic Act;
46.31(d) if it bears or contains a food additive which is unsafe within the meaning of
46.32section 409 of the Federal Food, Drug, and Cosmetic Act;
46.33(e) if it bears or contains a color additive which is unsafe within the meaning of
46.34section 706 of the Federal Food, Drug, and Cosmetic Act;
47.1(f) if it contains a filthy, putrid, or decomposed substance or is for any other reason
47.2unfit for human food;
47.3(g) if it has been prepared, packed, or held under unsanitary conditions so that it may
47.4be contaminated with filth or harmful to health;
47.5(h) if it is wholly or partly the product of an animal which has died otherwise than
47.6by slaughter;
47.7(i) if its container is wholly or partly composed of a poisonous or harmful substance
47.8which may make the contents harmful to health;
47.9(j) if it has been intentionally subjected to radiation, unless the use of the radiation
47.10conformed with a regulation or exemption in effect under section 409 of the Federal
47.11Food, Drug, and Cosmetic Act;
47.12(k) if a valuable constituent has been wholly or partly omitted or removed from it;
47.13if a substance has been wholly or partly substituted for it; if damage or inferiority has
47.14been concealed; or if a substance has been added to it or mixed or packed with it so as
47.15to increase its bulk or weight, reduce its quality or strength, or make it appear better
47.16or of greater value than it is; or
47.17(l) if it is margarine containing animal fat and any of the raw material used in it
47.18wholly or partly consisted of a filthy, putrid, or decomposed substance.

47.19    Sec. 16. Minnesota Statutes 2010, section 31A.02, subdivision 14, is amended to read:
47.20    Subd. 14. Misbranded. "Misbranded" means a carcass, part of a carcass, meat,
47.21poultry, poultry food product, or meat food product under one or more of the following
47.22circumstances: an item is covered by section 34A.03.
47.23(a) if its labeling is false or misleading;
47.24(b) if it is offered for sale under the name of another food;
47.25(c) if it is an imitation of another food, unless its label bears, in type of uniform
47.26size and prominence, the word "imitation" followed immediately by the name of the
47.27food imitated;
47.28(d) if its container is made, formed, or filled so as to be misleading;
47.29(e) if its package or other container does not have a label showing (1) the name and
47.30place of business of the manufacturer, packer, or distributor; and (2) an accurate statement
47.31of the quantity of the contents in terms of weight, measure, or numerical count subject
47.32to reasonable variations permitted and exemptions for small packages established in
47.33rules of the commissioner;
47.34(f) if a word, statement, or other information required by or under authority of this
47.35chapter to appear on the label or other labeling is not prominently and conspicuously
48.1placed on the label or labeling in terms that make it likely to be read and understood by the
48.2ordinary individual under customary conditions of purchase and use;
48.3(g) if it is represented as a food for which a definition and standard of identity or
48.4composition has been prescribed by rules of the commissioner under section 31A.07,
48.5unless (1) it conforms to the definition and standard, and (2) its label bears the name of the
48.6food specified in the definition and standard and, if required by the rules, the common
48.7names of optional ingredients, other than spices, flavoring, and coloring, present in the
48.8food;
48.9(h) if it is represented as a food for which a standard of fill of container has been
48.10prescribed by rules of the commissioner under section 31A.07, and it falls below the
48.11applicable standard of fill of container, unless its label bears, in the manner and form the
48.12rules specify, a statement that it falls below the standard;
48.13(i) if it is not subject to paragraph (g), unless its label bears (1) the usual name of
48.14the food, if there is one, and (2) in case it is fabricated from two or more ingredients,
48.15the common or usual name of each ingredient; except that spices, flavorings, and
48.16colorings may, when authorized by the commissioner, be designated as spices, flavorings,
48.17and colorings without naming each. To the extent that compliance with clause (2) is
48.18impracticable, or results in deception or unfair competition, the commissioner shall
48.19establish exemptions by rule;
48.20(j) if it purports to be or is represented for special dietary uses, unless its label bears
48.21the information concerning its vitamin, mineral, and other dietary properties that the
48.22commissioner, after consultation with the Secretary of Agriculture of the United States,
48.23determines by rule to be necessary to inform purchasers of its value for special dietary uses;
48.24(k) if it bears or contains any artificial flavoring, artificial coloring, or chemical
48.25preservative, unless it bears labeling stating that fact;
48.26(l) if it fails to bear, directly or on its container, as the commissioner by rule
48.27prescribes, the inspection legend and other information the commissioner may require by
48.28rule to assure that it will not have false or misleading labeling and that the public will be
48.29told how to keep the article wholesome.

48.30    Sec. 17. Minnesota Statutes 2010, section 31A.02, subdivision 15, is amended to read:
48.31    Subd. 15. Label. "Label" means a display of written, printed, or graphic matter on
48.32an article's immediate container, not including package liners has the meaning given
48.33in section 34A.01, subdivision 6.

48.34    Sec. 18. Minnesota Statutes 2010, section 31A.02, subdivision 16, is amended to read:
49.1    Subd. 16. Labeling. "Labeling" means labels and other written, printed, or graphic
49.2matter (1) on an article or its containers or wrappers, or (2) accompanying an article has
49.3the meaning given in section 34A.01, subdivision 7.

49.4    Sec. 19. Minnesota Statutes 2010, section 31A.23, is amended to read:
49.531A.23 DETENTION OF ANIMALS OR PRODUCTS.
49.6This section applies to a carcass, part of a carcass, meat, or meat food product of an
49.7animal, a product exempted from the definition of a meat food product, or a dead, dying,
49.8disabled, or diseased animal. If an authorized representative of the commissioner finds
49.9such an article or animal on premises where it is held for purposes of, during, or after
49.10distribution in intrastate commerce, and there is reason to believe that it is adulterated or
49.11misbranded and is usable as human food, or that it has not been inspected, in violation of
49.12sections 31A.01 to 31A.16, the Federal Meat Inspection Act, or the Federal Food, Drug,
49.13and Cosmetic Act, or that the article or animal has been or is intended to be distributed in
49.14violation of a provision of those laws, it may be detained by the representative for up to
49.1520 days pending action under section 31A.24 34A.11, subdivision 2, or notification of
49.16federal authorities having jurisdiction over the article or animal. It must not be moved
49.17by a person, firm, or corporation from the place at which it is located when detained,
49.18until released by the representative. The representative may require all official marks to
49.19be removed from the article or animal before it is released unless the commissioner is
49.20satisfied that the article or animal is eligible to retain the official marks.

49.21    Sec. 20. Minnesota Statutes 2010, section 32.01, subdivision 11, is amended to read:
49.22    Subd. 11. Adulterated. "Adulterated" has the meaning given it in section 31.01,
49.23subdivision 19 , and acts amendatory thereof means an item is covered by section 34A.02.

49.24    Sec. 21. Minnesota Statutes 2010, section 32.01, subdivision 12, is amended to read:
49.25    Subd. 12. Misbranded. "Misbranded" or "misbranding" has the meaning given
49.26in section 31.01, subdivision 5, and acts amendatory thereof means an item is covered
49.27by section 34A.03.

49.28    Sec. 22. [34A.01] DEFINITIONS.
49.29    Subdivision 1. Applicability. The definitions in this section and chapters 28, 28A,
49.3029, 30, 31, 31A, 32, and 34 apply to this chapter. The definitions in this section apply
49.31to chapter 32.
49.32    Subd. 2. Commissioner. "Commissioner" means the commissioner of agriculture.
50.1    Subd. 3. Federal act. "Federal act" means the federal Food, Drug, and Cosmetic
50.2Act, as amended, United States Code, title 21, sections 301 et seq.
50.3    Subd. 4. Food. "Food" means every ingredient used for, entering into the
50.4consumption of, or used or intended for use in the preparation of food, drink, confectionery,
50.5or condiment for humans or other animals, whether simple, mixed, or compound; and
50.6articles used as components of these ingredients.
50.7    Subd. 5. Frozen food. "Frozen food" is food that is processed and preserved by
50.8freezing and which is intended to be sold in the frozen state.
50.9    Subd. 6. Label. "Label" means a display of written, printed, or graphic matter
50.10upon or affixed to the container of any food, and includes a like display, if required by
50.11law or rule, on the outside container or wrapper, if there is one, of the retail package
50.12of the food, not including package liners.
50.13    Subd. 7. Labeling. "Labeling" means labels and other written, printed, or graphic
50.14matter:
50.15(1) on food or its containers or wrappers;
50.16(2) accompanying or supporting food; or
50.17(3) a placard in, on, or adjacent to the food.
50.18    Subd. 8. Nonperishable food. "Nonperishable food" is food with a shelf life of
50.19more than 90 days and that is not perishable food, readily perishable food, or frozen food.
50.20    Subd. 9. Perishable food. "Perishable food" means food including, but not limited
50.21to, fresh fruits, fresh vegetables, and other products that need protection from extremes of
50.22temperatures in order to avoid decomposition by microbial growth or otherwise.
50.23    Subd. 10. Person. "Person" means any individual, firm, partnership, cooperative,
50.24society, joint stock association, association, company, or corporation and includes any
50.25officer, employee, agent, trustee, receiver, assignee, or other similar business entity or
50.26representative of one of those entities.
50.27    Subd. 11. Readily perishable food. "Readily perishable food" is food or a food
50.28ingredient consisting in whole or in part of milk, milk products, eggs, meat, fish, poultry,
50.29or other food or food ingredient that is capable of supporting growth of infectious or
50.30toxigenic microorganisms. Readily perishable food requires time and temperature control
50.31to limit pathogenic microorganism growth or toxin formation.
50.32    Subd. 12. Sell; sale. "Sell" and "sale" mean keeping, offering, or exposing for sale,
50.33use, transporting, transferring, negotiating, soliciting, or exchanging food; having in
50.34possession with intent to sell, use, transport, negotiate, solicit, or exchange food; storing,
50.35manufacturing, producing, processing, packing, and holding of food for sale; dispensing or
51.1giving food; or supplying or applying food in the conduct of any food operation or carrying
51.2food in aid of traffic in food whether done or permitted in person or through others.

51.3    Sec. 23. [34A.012] EXCLUSIONS.
51.4The following items are not perishable food, readily perishable food, or frozen food:
51.5(1) packaged pickles;
51.6(2) jellies, jams, and condiments in sealed containers;
51.7(3) bakery products such as bread, rolls, buns, donuts, fruit-filled pies, and pastries;
51.8(4) dehydrated packaged food;
51.9(5) dry or packaged food with a water activity that precludes development of
51.10microorganisms; and
51.11(6) food in unopened hermetically sealed containers that is commercially processed
51.12to achieve and maintain commercial sterility under conditions of nonrefrigerated storage
51.13and distribution.

51.14    Sec. 24. [34A.02] ADULTERATION.
51.15Food is adulterated if:
51.16(1) it bears or contains any poisonous or deleterious substance which may render
51.17it injurious to health; but if the substance is not an added substance, the item is not
51.18adulterated under this clause if the quantity of the substance in the item does not ordinarily
51.19render it injurious to health;
51.20(2) it bears or contains any added poisonous, deleterious, or nonnutritive substance,
51.21other than one which is a pesticide in or on a raw agricultural commodity; a food additive;
51.22or a color additive, that is unsafe within the meaning of section 31.122 or section 406
51.23of the federal act;
51.24(3) it bears or contains, by administration of a substance to the live animal or
51.25otherwise, an added poisonous or harmful substance, other than a pesticide in or on a raw
51.26agricultural commodity, a food additive, or a color additive, that may, in the judgment of
51.27the commissioner, make the article unfit for human food;
51.28(4) it is unsafe or bears or contains any food additive that is unsafe within the
51.29meaning of section 31.122 or section 409 of the federal act;
51.30(5) it is or bears or contains any color additive that is unsafe within the meaning of
51.31section 31.122 or section 706 of the federal act;
51.32(6) it is a raw agricultural commodity and it bears or contains a pesticide that is
51.33unsafe within the meaning of section 31.122 or section 408 of the federal act;
52.1(7) it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
52.2decomposed substance, or if it is otherwise unfit for food;
52.3(8) it has been produced, prepared, packed, or held under unsanitary conditions
52.4whereby it may have become contaminated with filth, or whereby it may have been
52.5rendered diseased, unwholesome, or injurious to health;
52.6(9) it is in whole or in part the product of a diseased animal or of an animal which
52.7has died otherwise than by slaughter that is unsafe within the meaning of section 402(a)(1)
52.8or (2) of the federal act, or of an animal that has been fed upon the uncooked offal from a
52.9slaughterhouse;
52.10(10) its container is wholly or partly composed of any poisonous or deleterious
52.11substance that may render the contents injurious to health;
52.12(11) it has been intentionally subjected to radiation, unless the use of the radiation
52.13was in conformity with a rule, regulation, or exemption in effect pursuant to section
52.1431.122 or section 409 of the federal act;
52.15(12) any valuable constituent has been in whole or in part omitted or abstracted
52.16therefrom; if any substance has been substituted wholly or in part therefor; or if damage or
52.17inferiority has been concealed in any manner;
52.18(13) any substance has been added to it or mixed or packed with it so as to increase
52.19its bulk or weight, reduce its quality or strength, or make it appear better or of greater
52.20value than it is;
52.21(14) its composition or quality falls below or differs from that which it is purported
52.22or is represented to possess by its labeling; or
52.23(15) it is confectionery and:
52.24(i) has partially or completely imbedded therein any nonnutritive object; provided,
52.25that this clause does not apply in the case of any nonnutritive object if in the judgment
52.26of the commissioner, as provided by rules, the object is of practical functional value to
52.27the confectionery product and would not render the product injurious or hazardous to
52.28human or animal health; or
52.29(ii) bears or contains any nonnutritive substance; provided that this item does not
52.30apply to a confection containing alcohol as defined in section 31.76, or a safe nonnutritive
52.31substance which is in or on confectionery by reason of its use for some practical functional
52.32purpose in the manufacture, packaging, or storing of the confectionery if the use of the
52.33substance does not promote deception of the consumer or otherwise result in adulteration
52.34or misbranding in violation of this chapter, and provided further that the commissioner
52.35may, for the purpose of avoiding or resolving uncertainty as to the application of this
52.36clause, issue rules allowing or prohibiting the use of particular nonnutritive substances.

53.1    Sec. 25. [34A.03] MISBRANDING.
53.2(a) Food is misbranded if:
53.3(1) its labeling is false or misleading in any particular, or its labeling, whether on
53.4the item itself, its container, or its package, fails to conform with the requirements of
53.5this chapter;
53.6(2) it is offered for sale or distributed under the name of another food;
53.7(3) it is an imitation of another food for which a definition and standard of identity
53.8have been prescribed by rules as provided by sections 31.10 and 31.102; or if it is an
53.9imitation of another food that is not subject to clause (5), unless in either case its label
53.10bears in type of uniform size and prominence the word "imitation" and immediately
53.11thereafter the name of the food imitated;
53.12(4) its container is so made, formed, or filled as to be misleading;
53.13(5) it purports to be or is represented as a food for which a definition and standard
53.14of identity have been prescribed by rules as provided by sections 31.10, 31.102, and
53.1531A.07, unless it conforms to that definition and standard, and its label bears the name
53.16of the food specified in the definition and standard, and insofar as may be required by
53.17the rules, the common names of optional ingredients, other than spices, flavoring, and
53.18coloring, present in the food;
53.19(6) it purports to be or is represented as:
53.20(i) a food for which a standard of quality has been prescribed by rules as provided by
53.21sections 31.10 and 31.102, and its quality falls below that standard unless its label bears in
53.22a manner and form the rules specify, a statement that it falls below the standard; or
53.23(ii) a food for which a standard or standards of fill of container have been prescribed
53.24by rule as provided by sections 31.10, 31.102, and 31A.07, and it falls below the standard
53.25of fill of container applicable thereto unless its label bears, in a manner and form the rules
53.26specify, a statement that it falls below the standard;
53.27(7) it is not subject to clause (5), unless it bears labeling clearly giving the common
53.28or usual name of the food, if there is one, and in case it is fabricated from two or more
53.29ingredients, the common or usual name of each ingredient, except that spices, flavorings,
53.30and colorings, other than those sold as such, may be designated as spices, flavorings, and
53.31colorings, without naming each; provided, that to the extent that compliance with the
53.32requirements of this clause is impractical or results in deception or unfair competition,
53.33exemptions must be established by rules promulgated by the commissioner;
53.34(8) it purports to be or is represented for special dietary uses, unless its label
53.35bears information concerning its vitamin, mineral, and other dietary properties as the
54.1commissioner determines to be, and by rules prescribed as, necessary in order to fully
54.2inform purchasers as to its value for those uses;
54.3(9) it bears or contains any artificial flavoring, artificial coloring, or chemical
54.4preservative, unless it bears labeling stating that fact; provided that, to the extent that
54.5compliance with the requirements of this clause is impracticable, exemptions must be
54.6established by rules promulgated by the commissioner. The provisions of this clause and
54.7clauses (5) and (7) with respect to artificial coloring do not apply to butter, cheese, or ice
54.8cream. The provisions with respect to chemical preservatives do not apply to a pesticide
54.9when used in or on a raw agricultural commodity which is the product of the soil;
54.10(10) it is a product intended as an ingredient of another food and when used
54.11according to the directions of the purveyor will result in the final food product being
54.12adulterated or misbranded;
54.13(11) it is a color additive unless its packaging and labeling are in conformity with
54.14such packaging and labeling requirements applicable to the color additive prescribed
54.15under the provisions of the federal act;
54.16(12) it is food subject to section 31.101, subdivision 10, or chapter 31A, that fails to
54.17bear, directly or on its container, as the commissioner by rule prescribes, the inspection
54.18legend and other information the commissioner may require by rule to ensure that it
54.19will not have false or misleading labeling, and that the public will be told how to keep
54.20the article wholesome; or
54.21(13) its labeling would deceive or mislead the purchaser with respect to its
54.22composition or suitability.
54.23(b) Food is also misbranded if it is a raw agricultural commodity which is the
54.24product of the soil, bearing or containing a pesticide applied after harvest, unless the
54.25shipping container of that commodity bears labeling which declares the presence of the
54.26chemical in or on the commodity and the common or usual name and the function of the
54.27chemical. No such declaration is required while the commodity, having been removed
54.28from the shipping container, is being held or displayed for sale at retail out of the container
54.29in accordance with the custom of the trade.

54.30    Sec. 26. [34A.04] ENFORCEMENT.
54.31    Subdivision 1. Enforcement required. (a) The commissioner shall enforce this
54.32chapter and chapters 28, 28A, 29, 30, 31, 31A, and 34. To carry out the enforcement duties
54.33under these chapters, the commissioner may, upon presenting appropriate credentials,
54.34during regular working hours and at other reasonable times, inspect premises subject
54.35to the commissioner's enforcement and licensing authority; require information from
55.1persons with information relevant to an inspection; and inspect and copy relevant papers
55.2and records, including business records.
55.3(b) The commissioner may administer oaths, take and cause to be taken depositions
55.4of witnesses, and issue subpoenas, and may petition the district court in the county in which
55.5the premises is located to compel compliance with subpoenas or to permit an inspection.
55.6(c) Violations of chapters 28, 28A, 29, 30, 31, 31A, and 34, or rules adopted under
55.7chapters 28, 28A, 29, 30, 31, 31A, and 34 are a violation of this chapter.
55.8(d) Upon the request of the commissioner, county attorneys, sheriffs, and other
55.9officers having authority in the enforcement of the general criminal laws shall take action
55.10to the extent of their authority necessary or proper for the enforcement of this chapter or
55.11standards, stipulations, and agreements of the commissioner.
55.12    Subd. 2. Commissioner's discretion. If minor violations of this chapter occur or
55.13the commissioner believes the public interest will be best served by a suitable notice of
55.14warning in writing, this chapter does not require the commissioner to take any additional
55.15action.
55.16    Subd. 3. Civil actions. Civil judicial enforcement actions may be brought by the
55.17attorney general in the name of the state on behalf of the commissioner. A county attorney
55.18may bring a civil judicial enforcement action upon the request of the commissioner and
55.19agreement by the attorney general.
55.20    Subd. 4. Injunction. The commissioner may apply to a court with jurisdiction for a
55.21temporary or permanent injunction to prevent, restrain, or enjoin violations of provisions
55.22of this chapter.
55.23    Subd. 5. Criminal actions. Each county attorney or city attorney to whom the
55.24commissioner reports any violation of this chapter shall consider instituting appropriate
55.25proceedings in the proper courts and prosecuting them in the manner required by law. If
55.26the county or city attorney refuses to prosecute, the attorney general, on request of the
55.27commissioner, may prosecute.

55.28    Sec. 27. [34A.05] FALSE STATEMENT OR RECORD.
55.29A person must not knowingly make or offer a false statement, record, or other
55.30information as part of:
55.31(1) an application for registration, listing, license, certification, or permit subject
55.32to this chapter;
55.33(2) records or reports required subject to this chapter; or
55.34(3) an investigation of a violation of this chapter.

56.1    Sec. 28. [34A.06] ADMINISTRATIVE ACTIONS.
56.2    Subdivision 1. Administrative enforcement. (a) The commissioner may enforce
56.3this chapter by written warning, administrative meeting, cease and desist, forced sale,
56.4detain, embargo, condemnation, citation, corrective action order, seizure, agreement,
56.5withdrawal from distribution, or administrative penalty if the commissioner determines
56.6that the remedy is in the public interest.
56.7(b) For facilities required to submit a plan review under rules of the commissioner of
56.8agriculture, the commissioner may withdraw by written order the approval of a facility or
56.9equipment if:
56.10(1) hazards to human life exist; or
56.11(2) there is satisfactory evidence that the person to whom the approval was issued
56.12has used fraudulent or deceptive practices to evade or attempt to evade provisions of
56.13this chapter.
56.14(c) Any action under this subdivision may be appealed pursuant to section 34A.08.
56.15    Subd. 2. License revocation, suspension, and refusal. (a) The commissioner
56.16may revoke, suspend, limit, modify, or refuse to grant or renew a registration, listing,
56.17permit, license, or certification if a person violates or has violated this chapter within
56.18the last three years.
56.19(b) The commissioner may revoke, suspend, limit, modify, or refuse to grant or
56.20renew a registration, listing, permit, license, or certification to a person from another state
56.21if that person has had a registration, permit, license, or certification denied, revoked,
56.22or suspended by another state for an offense reasonably related to the requirements,
56.23qualifications, or duties of a registration, permit, license, or certification issued under
56.24this chapter.
56.25(c) The commissioner may revoke, suspend, limit, modify, or refuse to grant or
56.26renew a registration, listing, permit, license, or certification to a person after receiving
56.27satisfactory evidence that the registrant, permittee, licensee, or certificate holder has used
56.28fraudulent and deceptive practices in the evasion or attempted evasion of this chapter.
56.29(d) A registration, listing, permit, license, or certification may not be revoked or
56.30suspended until the registrant, permittee, licensee, or certificate holder has been given
56.31opportunity for a hearing by the commissioner. After receiving notice of revocation or
56.32suspension, a registrant, permittee, licensee, registrant, or certificate holder has ten days to
56.33request a hearing, or another time period mutually agreed to by both parties. If no request is
56.34made within ten days or other agreed-upon time, the registration, listing, permit, license, or
56.35certification is revoked or suspended. In the case of a refusal to grant a registration, listing,
56.36permit, license, or certification, the registrant, permittee, licensee, registrant, or certificate
57.1holder has ten days from notice of refusal to request a hearing. Upon receiving a request
57.2for hearing, the department shall proceed pursuant to section 34A.08, subdivision 2.

57.3    Sec. 29. [34A.07] ADMINISTRATIVE PENALTIES.
57.4    Subdivision 1. Assessment. (a) In determining the amount of the administrative
57.5penalty, the commissioner shall consider the economic gain received by the person
57.6allowing or committing the violation, the gravity of the violation in terms of actual or
57.7potential damage to human or animal health and the environment, the willfulness of the
57.8violation, number of violations, history of past violations, and other factors justice may
57.9require, if the additional factors are specifically identified in the inspection report. For a
57.10violation after an initial violation, the commissioner shall also consider the similarity of
57.11the most recent previous violation and the violation to be penalized, the time elapsed since
57.12the last violation, the number of previous violations, and the response of the person to the
57.13most recent previous violation identified.
57.14(b) The commissioner may issue an administrative citation assessing an
57.15administrative penalty of up to $1,500 for each violation of this chapter. Each day a
57.16violation continues is a separate violation. The citation must describe the nature of the
57.17violation, the statute or rule alleged to have been violated, the time for correction, if
57.18applicable, and the amount of any proposed fine. The citation must advise the person to
57.19notify the commissioner in writing within 20 days, or another time period mutually agreed
57.20to by the commissioner and the person subject to the citation, if the person wishes to
57.21appeal the citation and that if the person fails to appeal the citation, the citation is the
57.22final order and not subject to further review.
57.23(c) An administrative penalty may be assessed if the person subject to a written order
57.24does not comply with the order in the time provided in the order.
57.25    Subd. 2. Collection of penalty. (a) If a person subject to an administrative penalty
57.26fails to pay the penalty, which must be part of a final citation by the commissioner, by 30
57.27days after the final order is issued, the commissioner may commence a civil action for
57.28double the assessed penalty plus attorney fees and costs.
57.29(b) An administrative penalty may be recovered in a civil action in the name of the
57.30state brought in the district court of the county where the violation is alleged to have
57.31occurred or the district court where the commissioner has an office.

57.32    Sec. 30. [34A.08] APPEAL OF ADMINISTRATIVE ACTION OR PENALTY.
57.33    Subdivision 1. Notice of appeal. (a) After service of a citation under section 34A.07
57.34or order under section 34A.06, subdivision 1, a person has 20 days from receipt of the
58.1citation or order, or another time period mutually agreed to by the commissioner and the
58.2person subject to the citation or order, to notify the commissioner in writing that the
58.3person intends to contest the citation or order through a hearing. The hearing request
58.4must specifically identify the order or citation being contested and state the grounds for
58.5contesting it.
58.6(b) If the person fails to notify the commissioner that the person intends to contest
58.7the citation or order, the citation or order is final and not subject to further judicial or
58.8administrative review.
58.9    Subd. 2. Administrative review. If a person notifies the commissioner that
58.10the person intends to contest a citation or order issued under this chapter, the Office
58.11of Administrative Hearings shall conduct a hearing in accordance with the applicable
58.12provisions of chapter 14 for hearings in contested cases.

58.13    Sec. 31. [34A.09] CIVIL PENALTIES.
58.14    Subdivision 1. General penalty. A person who violates this chapter or an order,
58.15standard, stipulation, agreement, citation, or schedule of compliance of the commissioner
58.16or impedes, hinders, or otherwise prevents or attempts to prevent performance of a duty
58.17by the commissioner in connection with this chapter is subject to a civil penalty of up to
58.18$7,500 per day of violation as determined by the court.
58.19    Subd. 2. Actions to compel performance. In an action to compel performance of
58.20an order of the commissioner to enforce this chapter, the court must require a defendant
58.21adjudged responsible to perform the acts within the person's power that are reasonably
58.22necessary to accomplish the purposes of the order.
58.23    Subd. 3. Recovery of penalties by civil action. The civil penalties and payments
58.24provided for in this section may be recovered by a civil action brought by the county
58.25attorney or the attorney general in the name of the state.

58.26    Sec. 32. [34A.10] CRIMINAL PENALTIES.
58.27    Subdivision 1. General violation. Except as provided in subdivisions 2 and 3, a
58.28person is guilty of a misdemeanor if the person violates this chapter or an order, standard,
58.29citation, stipulation, agreement, or schedule of compliance of the commissioner, or
58.30impedes, hinders, or otherwise prevents, or attempts to prevent the commissioner or a
58.31duly authorized agent in performance of a duty in connection with this chapter. Unless
58.32otherwise specified in this chapter, each separate violation is a separate offense, except
58.33that in the case of a violation through continuing failure or neglect to obey this chapter,
58.34each day the failure or neglect continues is a separate offense.
59.1    Subd. 2. Violation endangering humans or animals. A person is guilty of a
59.2gross misdemeanor if the person violates this chapter or an order, standard, stipulation,
59.3agreement, or schedule of compliance of the commissioner and the violation endangers
59.4humans or animals.
59.5    Subd. 3. Violation with knowledge. A person is guilty of a gross misdemeanor if
59.6the person knowingly violates this chapter or an order, standard, stipulation, agreement, or
59.7schedule of compliance of the commissioner.

59.8    Sec. 33. [34A.11] EMBARGO, SEIZURE, AND CONDEMNATION.
59.9    Subdivision 1. Tag, notice, or withdrawal from distribution. If the commissioner
59.10finds probable cause to believe that any food, animal, or consumer commodity is being
59.11distributed in violation of this chapter or rules under this chapter, or is adulterated or so
59.12misbranded as to be dangerous or fraudulent, the commissioner shall affix to the food,
59.13animal, or consumer commodity a tag, withdrawal from distribution order, or other
59.14appropriate marking giving notice that the food, animal, or consumer commodity is, or is
59.15suspected of being, adulterated, misbranded, or distributed in violation of this chapter,
59.16and has been detained or embargoed, and warning all persons not to remove or dispose
59.17of the food, animal, or consumer commodity by sale or otherwise until permission for
59.18removal or disposal is given by the commissioner or the court. It is unlawful for a person
59.19to remove or dispose of a detained or embargoed food, animal, or consumer commodity by
59.20sale or otherwise without the commissioner's or a court's permission and each transaction
59.21is a separate violation of this subdivision.
59.22    Subd. 2. Seizure. A carcass; part of a carcass; meat or meat food product of an
59.23animal; or dead, dying, disabled, or diseased animal that is being transported in intrastate
59.24commerce, or is held for sale in this state after transportation in intrastate commerce, may
59.25be proceeded against, seized, and condemned if:
59.26(1) it is or has been prepared, sold, transported, or otherwise distributed, offered, or
59.27received for distribution in violation of this chapter;
59.28(2) it is usable as human food and is adulterated or misbranded; or
59.29(3) it is in any other way in violation of this chapter.
59.30The commissioner may act against the article or animal at any time on a complaint
59.31in the district court of the judicial district where the article or animal is found.
59.32    Subd. 3. Action for condemnation. If food or an article or animal, detained or
59.33embargoed under subdivision 1 has been found by the commissioner to be adulterated
59.34or misbranded or in violation of this chapter, the commissioner shall petition the district
59.35court in the county in which the food or animal is detained or embargoed for an order and
60.1decree for the condemnation of the food or animal. The commissioner shall release the
60.2food or animal when this chapter and rules adopted under this chapter have been complied
60.3with or the food or animal is found to be not adulterated or misbranded.
60.4    Subd. 4. Remedies. If the court finds that a detained or embargoed food or animal
60.5is adulterated, misbranded, or in violation of this chapter or rules adopted under this
60.6chapter, the following remedies are available:
60.7(1) after entering a decree, the food or animal may be destroyed at the expense of
60.8the claimant under the supervision of the commissioner, and all court costs, fees, storage,
60.9and other proper expenses, must be assessed against the claimant of the food or animal or
60.10the claimant's agent; and
60.11(2) if adulteration or misbranding can be corrected by proper labeling or processing
60.12of the food or animal, the court, after entry of the decree and after costs, fees, and expenses
60.13have been paid and a good and sufficient bond, conditioned that the food or animal must
60.14be properly labeled or processed, has been executed, may by order direct that the food or
60.15animal be delivered to the claimant for proper labeling or processing under the supervision
60.16of the commissioner. The expense of the supervision must be paid by the claimant. The
60.17food or animal must be returned to the claimant and the bond must be discharged on the
60.18representation to the court by the commissioner that the food or animal is no longer in
60.19violation and that the expenses for the supervision have been paid.
60.20    Subd. 5. Duties of commissioner. If the commissioner finds in any room, building,
60.21vehicle of transportation, or other structure any meat, seafood, poultry, vegetable, fruit, or
60.22other perishable articles of food that are unsound, or contain any filthy, decomposed, or
60.23putrid substance, or that may be poisonous or deleterious to health or otherwise unsafe, the
60.24commissioner shall condemn or destroy the item or in any other manner render the item as
60.25unsalable as human food, and no one has any cause of action against the commissioner
60.26on account of the commissioner's action.
60.27    Subd. 6. Emergency response. If the governor declares an emergency order under
60.28section 12.31 and if the commissioner finds or has probable cause to believe that livestock,
60.29food, or a consumer commodity within a specific area is likely to be adulterated because
60.30of the emergency or so misbranded as to be dangerous or fraudulent, or is in violation of
60.31section 31.131, subdivision 1, the commissioner may embargo a geographic area that is
60.32included in the declared emergency. The commissioner shall provide notice to the public
60.33and to those with custody of the product in as thorough a manner as is practicable under
60.34the emergency circumstances.

60.35    Sec. 34. [34A.12] POWERS OF THE COMMISSIONER.
61.1    Subdivision 1. Gathering information. The commissioner may, for the purposes
61.2of this chapter:
61.3(1) gather and compile information concerning and investigate the organization,
61.4business, conduct, practices, and management of a person in intrastate commerce and
61.5the person's relation to other persons; and
61.6(2) require, by general or special orders, a person, persons, or a class of persons
61.7engaged in intrastate commerce to file with the commissioner, in the form the
61.8commissioner prescribes, annual and special reports or answers in writing to specific
61.9questions, giving the commissioner the information the commissioner requires about the
61.10organization, business, conduct, practices, management, and relation to other persons, of
61.11the person filing the reports or answers. The reports and answers must be made under
61.12oath, or otherwise, as the commissioner prescribes, and filed with the commissioner within
61.13a reasonable time the commissioner prescribes, unless additional time is granted by the
61.14commissioner.
61.15    Subd. 2. Examination of documents for evidence. (a) For purposes of this
61.16chapter, the commissioner must at all reasonable times be allowed to examine and
61.17copy documentary evidence of a person being investigated or proceeded against. The
61.18commissioner may subpoena witnesses and require the production of documentary
61.19evidence of a person relating to any matter under investigation. The commissioner
61.20may sign subpoenas, administer oaths and affirmations, examine witnesses, and receive
61.21evidence.
61.22(b) Attendance of witnesses and the production of documentary evidence may
61.23be required at a designated hearing place. In case of disobedience to a subpoena, the
61.24commissioner may invoke the aid of the district court to require the attendance and
61.25testimony of witnesses and the production of documentary evidence.
61.26(c) The district court, in case of refusal to obey a subpoena issued to a person, may
61.27issue an order requiring the person to appear before the commissioner or to produce
61.28documentary evidence if ordered, or to give evidence touching the matter in question.
61.29Failure to obey the order of the court may be punishable by the court as a contempt.
61.30(d) Upon the application of the attorney general at the request of the commissioner,
61.31the district court may order a person to comply with this chapter or an order of the
61.32commissioner made under this chapter.
61.33(e) The commissioner may order testimony to be taken by deposition in a proceeding
61.34or investigation pending under this chapter at any state of the proceeding or investigation.
61.35Depositions may be taken before a person designated by the commissioner and having
61.36power to administer oaths. The testimony must be reduced to writing by the person taking
62.1the deposition or under the person's direction and must then be signed by the witness. A
62.2person may be compelled to appear and depose and to produce documentary evidence
62.3in the same manner as witnesses may be compelled to appear and testify and produce
62.4documentary evidence before the commissioner.
62.5(f) Witnesses summoned before the commissioner may be paid the same fees and
62.6mileage that are paid witnesses in the district courts. Witnesses whose depositions are
62.7taken and the persons taking them may be entitled to the fees that are paid for those
62.8services in the district court.
62.9(g) A person is not excused from attending and testifying or from producing books,
62.10papers, schedules of charges, contracts, agreements, or other documentary evidence
62.11before the commissioner or in obedience to the subpoena of the commissioner whether
62.12the subpoena is signed or issued by the commissioner or the commissioner's agent, or in
62.13any cause or proceeding, criminal or otherwise, based upon or growing out of an alleged
62.14violation of this chapter because the testimony or evidence, documentary or otherwise,
62.15required of the person may tend to incriminate the person or subject the person to a
62.16penalty or forfeiture. No person may be prosecuted or subjected to a penalty or forfeiture
62.17on account of a matter concerning which the person is compelled, after having claimed
62.18a privilege against self-incrimination, to testify or produce evidence, documentary or
62.19otherwise, except that a witness is not exempt from prosecution and punishment for
62.20perjury committed in testifying.
62.21    Subd. 3. Penalties related to testimony and records. (a) A person who neglects
62.22or refuses to attend and testify, to answer a lawful inquiry, or to produce documentary
62.23evidence, if it is in the person's power to do so in obedience to the subpoena or lawful
62.24requirement of the commissioner, is guilty of a misdemeanor.
62.25(b) A person who willfully:
62.26(1) makes or causes to be made a false entry or statement of fact in a report required
62.27under this chapter;
62.28(2) makes or causes to be made a false entry in an account, record, or memorandum
62.29kept by a person subject to this chapter;
62.30(3) neglects or fails to make or to cause to be made full and correct entries in the
62.31accounts, records, or memoranda, of all facts and transactions relating to the person's
62.32business;
62.33(4) leaves the jurisdiction of this state;
62.34(5) mutilates, alters, or by any other means falsifies documentary evidence of a
62.35person subject to this chapter; or
63.1(6) refuses to submit to the commissioner, for inspection and copying, any
63.2documentary evidence of a person subject to this chapter in the person's possession or
63.3control, is guilty of a misdemeanor.
63.4(c) A person required by this chapter to file an annual or special report who fails to
63.5do so within the time fixed by the commissioner for filing the report and continues the
63.6failure for 30 days after notice of failure to file, is guilty of a misdemeanor.
63.7(d) An officer or employee of this state who makes public information obtained by
63.8the commissioner without the commissioner's authority, unless directed by a court, is
63.9guilty of a misdemeanor.

63.10    Sec. 35. REPEALER.
63.11(a) Minnesota Statutes 2010, sections 28.15; 28A.12; 28A.13; 29.28; 31.031;
63.1231.041; 31.05; 31.14; 31.393; 31.58; 31.592; 31.621, subdivision 5; 31.631, subdivision
63.134; 31.633, subdivision 2; 31.681; 31.74, subdivision 3; 31.91; 31A.24; 31A.26; and
63.1434.113, are repealed.
63.15(b) Minnesota Rules, parts 1540.0010, subpart 26; 1550.0930, subparts 3, 4, 5, 6,
63.16and 7; 1550.1040, subparts 3, 4, 5, and 6; and 1550.1260, subparts 6 and 7, are repealed.