1.1 	A bill for an act
1.2 	relating to commerce; adopting the Country of Origin
1.3 	Labeling Act; prescribing penalties; proposing coding
1.4 	for new law as Minnesota Statutes, chapter 31C.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. SHORT TITLE.
 1.7 	Sections 1 to 5 may be cited as the "Country of Origin
1.8 	Labeling Act." 

1.9 	Sec. 2. [31C.01] DEFINITIONS.
1.10 	For the purposes of sections 31C.01 to 31C.05, the
1.11 	following terms have the meanings given them:
1.12 	(1) "department" means the Department of Agriculture;
1.13 	(2) "label" has the meaning given in section 31.01;
1.14 	(3) "labeling" has the meaning given in section 31.01;
1.15 	(4) "package" has the meaning given in section 31.01; and 
1.16 	(5) "person" means an individual, partnership, corporation,
1.17 	company, society, or association.

1.18 	Sec. 3. [31C.02] LABELING.
1.19 	(a) All producers, growers, and shippers of beef, pork,
1.20 	poultry, or lamb in this state are permitted to label each
1.21 	individual portion, piece, or package of beef, pork, poultry, or
1.22 	lamb in a conspicuous place as legibly, indelibly, and
1.23 	permanently as the nature of the commodity will permit, in a
1.24 	manner that indicates to an ultimate purchaser that the product
1.25 	was produced in Minnesota.
2.1 	(b) Muscle cuts and ground beef, pork, poultry, or lamb,
2.2 	including any package that contains any blending of foreign and
2.3 	domestic product, that is produced in any country other than the
2.4 	United States and offered for retail sale in Minnesota must be
2.5 	labeled with a placard in a manner that indicates to an ultimate
2.6 	purchaser the country of origin.
2.7 	(c) If one of the products enumerated in paragraph (b) is
2.8 	unlabeled and the retail vendor is unable to determine its
2.9 	country of origin, the product must be labeled with a placard as
2.10 	"country of origin unknown." 
2.11 	(d) All retail vendors engaged in the business of selling
2.12 	products that are labeled or identified as to country of origin
2.13 	are prohibited from willfully or knowingly removing the labels
2.14 	or identifying marks.
2.15 	(e) A label is not required for prepared foods for
2.16 	immediate sale or ready to eat.

2.17 	Sec. 4. [31C.03] PENALTIES.
2.18 	(a) A person engaged in the business of retail vending of
2.19 	muscle cuts and ground beef, pork, poultry, or lamb who
2.20 	knowingly or purposely offers those products for sale without
2.21 	ensuring that the products are clearly labeled as to the country
2.22 	of origin, as provided in section 31C.02, paragraph (b), is
2.23 	subject to the following penalties:
2.24 	(1) for a first offense, a vendor shall be fined an amount
2.25 	not to exceed $100;
2.26 	(2) for a second offense, a vendor shall be fined an amount
2.27 	not to exceed $250; and 
2.28 	(3) for a third or subsequent offense, a vendor shall be
2.29 	fined an amount not to exceed $500.
2.30 	(b) A person engaged in the business of retail vending of
2.31 	beef, pork, poultry, or lamb who knowingly removes any labels or
2.32 	identifying marks from beef, pork, poultry, or lamb that is
2.33 	labeled as to the country of origin is guilty of a misdemeanor
2.34 	and upon conviction shall be fined an amount not to exceed $500
2.35 	or be imprisoned in the county jail for a term not to exceed six
2.36 	months, or both.

3.1 	Sec. 5. [31C.04] RULEMAKING.
3.2 	(a) The department may develop, adopt, and administer rules
3.3 	for the efficient enforcement of sections 31C.01 to 31C.05.  The
3.4 	rules adopted by the department may include but are not limited
3.5 	to:
3.6 	(1) statements that delineate the difference between
3.7 	imported and unimported raw agricultural commodities for the
3.8 	purpose of sections 31C.01 to 31C.05;
3.9 	(2) the preferred labeling or placarding method for each
3.10 	commodity type identified in sections 31C.01 to 31C.05; and 
3.11 	(3) other rules that the department considers necessary to
3.12 	enforce sections 31C.01 to 31C.05.
3.13 	(b) The rules adopted to implement sections 31C.01 to
3.14 	31C.04 may not unduly restrict a person from conducting business.

3.15 	Sec. 6. [31C.05] CONTINGENT VOIDNESS.
3.16 	Upon the funding and full implementation of federal
3.17 	mandatory country of origin labeling, adopted as part of the
3.18 	2002 federal farm bill, sections 1; 2, clauses (1), (3), (5),
3.19 	and (6); 3, paragraphs (b) to (e); 4; and 5 are void.

3.20 	Sec. 7. EFFECTIVE DATES.
 3.21 	(a) Except as provided in paragraph (b), this act is
3.22 	effective October 1, 2006.
3.23 	(b) Section 3, paragraph (a), and this section are
3.24 	effective upon final enactment.