2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to agriculture; providing for associations of 1.3 producers; setting dispute resolution procedures; 1.4 establishing an advisory committee; amending Minnesota 1.5 Statutes 1996, sections 13.99, subdivision 6d; 17.692; 1.6 17.693, subdivisions 1, 2, and 6; 17.694, subdivisions 1.7 1, 2, 3, 6, and 7; 17.696, subdivision 2; 17.697; 1.8 17.698; 17.70, subdivisions 1, 2, and 3; 17.701; 1.9 proposing coding for new law in Minnesota Statutes, 1.10 chapter 17; repealing Minnesota Statutes 1996, section 1.11 17.699. 1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.13 Section 1. Minnesota Statutes 1996, section 13.99, 1.14 subdivision 6d, is amended to read: 1.15 Subd. 6d. [AGRICULTURAL PRODUCER ASSOCIATION AND COMMODITY 1.16 HANDLERS.] Access to data filed with the commissioner of 1.17 agriculture by agricultural producer associations and 1.18 agricultural commodity handlers is governed by section 17.694, 1.19 subdivision 1. 1.20 Sec. 2. Minnesota Statutes 1996, section 17.692, is 1.21 amended to read: 1.22 17.692 [DECLARATION OF POLICY.] 1.23SinceAgricultural products are producedby numerous and1.24often scattered individual producers, the marketing and1.25bargaining position of individual producers will be adversely1.26affected unless they are free to join together voluntarily in1.27cooperative associations or other associations as authorized by1.28law. Membership of a producer in such a cooperative association2.1or other association can only be meaningful if a handler of2.2agricultural products is required to bargain in good faith with2.3an agricultural cooperative association or other association as2.4the representative of the members of such association.2.5Production and marketing of agricultural commodities constitutes2.6a basic and essential industry. Agricultural producers do not2.7now enjoy the opportunity, comparable to that of industrial2.8workers and those in many other forms of enterprise or2.9employment, to organize and bargain effectively. Neither is2.10adequate government provision available to assure that the2.11bargaining process shall be fair both to producers and handlers2.12and in the public interest.in Minnesota by many individual 2.13 farmers, ranchers, and handlers scattered throughout the state. 2.14 The efficient production and marketing of agricultural products 2.15 by farmers, ranchers, and handlers is of vital concern to their 2.16 welfare and to the general economy of Minnesota. The marketing 2.17 and bargaining position of individual farmers, ranchers, and 2.18 handlers will be adversely affected unless they are free to join 2.19 together voluntarily in cooperative organizations as authorized 2.20 by law. Interference with this right is contrary to the public 2.21 interest, adversely affects the free and orderly flow of goods 2.22 in interstate and foreign commerce, and affects the welfare of 2.23 the people of Minnesota. It is, therefore, declared to be the 2.24 policy of this state and the purpose of this chapter to 2.25 establish standards of fair practices required of handlers and 2.26 producers in their dealings in agricultural products and to 2.27 encourage settlement of disputes between handlers and producers 2.28 of agricultural products. 2.29 Sec. 3. Minnesota Statutes 1996, section 17.693, 2.30 subdivision 1, is amended to read: 2.31 Subdivision 1. [SCOPE.] For the purposes of sections 2.32 17.691 to17.70117.703, the terms defined in this section have 2.33 the meanings given them. 2.34 Sec. 4. Minnesota Statutes 1996, section 17.693, 2.35 subdivision 2, is amended to read: 2.36 Subd. 2. [ASSOCIATION; ASSOCIATION OF PRODUCERS.] 3.1 "Association" or "association of producers" means an association 3.2 of producers, or federation of cooperative association of3.3producers engaged in producing, marketing, bargaining, shipping3.4or processing functions of an agricultural commodityof 3.5 agricultural commodities engaged in marketing, bargaining, 3.6 shipping, or processing an agricultural commodity into 3.7 agricultural products on behalf of its members who are producers 3.8 ofsuchthe agricultural commodity, which has been accredited by 3.9 the commissioner. 3.10 Sec. 5. Minnesota Statutes 1996, section 17.693, 3.11 subdivision 6, is amended to read: 3.12 Subd. 6. [HANDLER.] "Handler" means a person, other than 3.13 an association, engaged in the business or practice of acquiring 3.14 agricultural commodities from producers or associations for 3.15 processing or sale; grading, packaging, handling, storing, or 3.16 processing agricultural commodities received from producers or 3.17 associations; contracting or negotiating contracts or other 3.18 arrangements with or on behalf of producers or associations with 3.19 respect to the production of any agricultural commodity; or 3.20 acting as an agent or broker for a handler in the performance of 3.21 any function or act specified above. It does not include a 3.22 producer who sells at a retail establishment which the producer 3.23 owns and operates or who sells at a produce market, agricultural 3.24 commodities produced by the producer and agricultural 3.25 commodities produced by another producer subject to value 3.26 limitation established by the commissioner. 3.27 Sec. 6. Minnesota Statutes 1996, section 17.694, 3.28 subdivision 1, is amended to read: 3.29 Subdivision 1. [PROCEDURES.] Any association accredited 3.30 under this section may engage in bargaining as provided for 3.31 under sections 17.691 to17.70117.703. 3.32 (1) An association desiring accreditation shall file with 3.33 the commissioner in the form required by the commissioner. The 3.34 request shall contain properly certified evidence that the 3.35 association meets the standards for accreditation and shall be 3.36 accompanied by a report of the names and addresses of member 4.1 producers, the name of each handler to whom the member producer 4.2 delivered or contracted to deliver the agricultural commodity 4.3 during the previous two calendar yearsand the quantity4.4delivered or acreage grown. A fee to cover the costs of the 4.5 commissioner in processing the request shall be established 4.6 pursuant to chapter 14, and paid by the association when the 4.7 request is filed. 4.8 (2) The commissioner shall notify all handlers named in the 4.9 request for accreditation of an association of producers. The 4.10 notice must be sent to the handlers named in the request by 4.11 first class mail within ten days of the commissioner receiving 4.12 the request for accreditation. The commissioner shall maintain 4.13 records indicating the date of mailing. 4.14(2)(3) The commissioner may require all handlers of an 4.15 agricultural commodity produced in a bargaining unit area as 4.16 individualsor through their trade associationto filewith the4.17boardwithin 30 days followingsucha request, a report, 4.18 properly certified, showing the correct names and addresses of 4.19 all producers of the agricultural commodity who have delivered 4.20 the agricultural commodity to the handler during the two 4.21 calendar years preceding the filing of the reportand the4.22quantities of the agricultural commodity received by the handler4.23from each named producer during those periods. The information4.24contained in the individual reports of handlers filed with the4.25commissioner shall not be made public by the commissioner nor4.26available to any person for private use. 4.27 (4) Data submitted to the commissioner by producer 4.28 associations under clause (1) and by commodity handlers under 4.29 clause (3) are private data on individuals or nonpublic data, as 4.30 defined in section 13.02, subdivision 9 or 12. 4.31 Sec. 7. Minnesota Statutes 1996, section 17.694, 4.32 subdivision 2, is amended to read: 4.33 Subd. 2. [BARGAINING UNIT DETERMINATION.] In determination 4.34 of accreditation, the commissioner shall determinewhetherthe 4.35 appropriate bargainingshall be appropriateunit by plant, 4.36processor, or companybut may define the bargaining unit by 5.1 processor or company if there is a history of identical 5.2 contracts offered to producers on a processor or company-wide 5.3 basis. This determination shall be the unit area for the 5.4 bargaining provisions of sections 17.691 to17.70117.703 as is 5.5 applicable to associations and handlers. In making a 5.6 determination, the commissioner shall define as appropriate 5.7 thelargestbargaining unit area in terms of thequantity of the5.8 agricultural commodity produced, the definition of the 5.9 agricultural commodity, geographic area covered, and number of 5.10 producers included as is consistent with the following criteria: 5.11(a)(1) the community of interest of the producers 5.12 included; 5.13(b)(2) the potential serious conflicts of interests among 5.14 members of the proposed unit; 5.15(c)(3) the effect of exclusions on the capacity of the 5.16 association to effectively bargain for the bargaining unit as 5.17 defined; 5.18(d)(4) the kinds, types, and subtypes of products to be 5.19 classed together as agricultural commodity for which the 5.20 bargaining unit is proposed; 5.21(e)(5) whether the producers eligible for membership in 5.22 the proposed bargaining unit meet the definition of "producer" 5.23 for the agricultural commodity involved; 5.24(f)(6) the wishes of the producers; and 5.25(g)(7) the pattern of past marketing of the commodity. 5.26 Sec. 8. Minnesota Statutes 1996, section 17.694, 5.27 subdivision 3, is amended to read: 5.28 Subd. 3. [STANDARDS.] An association shall be accredited 5.29 only if it complies with the following: 5.30 (a) The association meets the requirements of the 5.31 Capper-Volstead Act, United States Code, title 7, section 291-2. 5.32 (b) The association has submitted a copy of its bylaws 5.33 which provide that: Each member of the association shall have 5.34 one vote in all votes of the membership of the association; that 5.35 officers or directors shall be elected by a majority of the 5.36 members voting or by delegates representing a majority of the 6.1 membership; and that all elections shall be by secret ballot. 6.2 (c) The association would have marketing and bargaining 6.3 contracts for the current or next marketing year with more than 6.4 50 percent of the producers of an agricultural commodity who are 6.5 in the bargaining unit areaand these contracts would cover more6.6than 50 percent of the quantity of that commodity produced by6.7producers in that bargaining unit area. The commissioner may6.8determine the quantity produced by the bargaining unit area6.9using information on production in the prior year, current6.10marketing information, and projections on production during the6.11current marketing year. The commissioner shall exclude from the6.12quantity of the agricultural commodity contracted by producers6.13with producer owned and controlled processing cooperatives and6.14any quantity produced by handlers. An association whose main 6.15 purpose is bargaining but which processes a surplus into a form 6.16 which is not the subject of bargaining is not a processing 6.17 cooperative. The contracts with members shall specify the 6.18 agricultural commodity and that the members have appointed the 6.19 association as their exclusive agent in negotiations with 6.20 handlers for prices and other terms of trade with respect to the 6.21 sale and marketing of the agricultural commodity and obligate 6.22 the members of the association to dispose of their production or 6.23 holdings of the agricultural commodity through or at the 6.24 direction of the association. 6.25 Sec. 9. Minnesota Statutes 1996, section 17.694, 6.26 subdivision 6, is amended to read: 6.27 Subd. 6. [REVOCATION.] The commissioner shall consider 6.28 revocation of accreditation upon any of the following conditions: 6.29 (a) Upon receipt of a request from an accredited 6.30 association for its own disaccreditation. 6.31 (b) Upon receipt of a petition requesting that the 6.32 accredited association be disaccredited and bearing the 6.33 signatures of at least ten percent of the producers of an 6.34 accredited association in the bargaining unit. Within ten days 6.35 following the receipt of a petition bearing the signatures of at 6.36 least ten percent of the producers of an accredited association 7.1 in a bargaining unitthe board shall order, the commissionerto7.2initiateshall order a referendum, to take place at least seven 7.3 days but not more than 20 days after the order, among the 7.4 members of the accredited association and if in the referenduma7.5majority of the producers, producing 50 percent of the commodity7.6 50 percent of association members approve, the association 7.7 accreditation shall be revoked by theboardcommissioner. The 7.8 commissioner shall have representatives of the department 7.9 present at the referendum vote to conduct the referendum and 7.10 take action to prevent unfair practices by the association of 7.11 producers or handlers to obstruct or influence voting. 7.12 Tabulation of the vote is the responsibility of the department. 7.13 The department may adopt rules governing any referendum for 7.14 repeal of accreditation. A request for a revocation of 7.15 accreditation may occur only during the first three months of a 7.16 marketing year. 7.17 Sec. 10. Minnesota Statutes 1996, section 17.694, 7.18 subdivision 7, is amended to read: 7.19 Subd. 7. [REPRESENTATION.] The accredited association 7.20 shall represent all member producers who are in the bargaining 7.21 unit area and it shall act as exclusive sales agents for 7.22 the members of the accredited association in the bargaining unit 7.23 area in negotiations with handlers. The association may not 7.24 assess, bargain for, or claim to represent those producers who 7.25 choose not to be represented by the association or choose not to 7.26 have a bargaining committee bargain for them. 7.27 Sec. 11. Minnesota Statutes 1996, section 17.696, 7.28 subdivision 2, is amended to read: 7.29 Subd. 2. [UNFAIR PRACTICES.] An association shall not 7.30 engage nor permit an employee or agent to engage in the 7.31 following practices, defined as unfair practices: 7.32(a) To(1) coerce a producer in the exercise of the right 7.33 to join and belong to or to refrain from joining or belonging to 7.34 an association or refuse to deal with a producer because of the 7.35 exercise of the right to join and belong to or refrain from 7.36 joining an association; 8.1 (2) enter into a contract which discriminates against a 8.2 producer represented by that association.; 8.3(b) To(3) act in a manner contrary to the bylaws of the 8.4 association.; 8.5(c) To(4) coerce or intimidate a handler to breach, 8.6 cancel, or terminate an agreement or marketing contract with an 8.7 association or a contract with a producer.; 8.8(d) To(5) make or circulate unsubstantiated reports about 8.9 the finances, management, or activities of other associations or 8.10 handlers.; or 8.11(e) To(6) conspire, combine, agree, or arrange with 8.12 another person to do or aid or abet the doing of any practice 8.13 which is in violation of sections 17.691 to17.70117.703. 8.14 Sec. 12. Minnesota Statutes 1996, section 17.697, is 8.15 amended to read: 8.16 17.697 [BARGAINING DEFINED; NOTICE OF COMMENCEMENT OF8.17NEGOTIATIONS; MEDIATION PROCEDUREINFORMATIONAL EXCHANGES; 8.18 DISPUTE RESOLUTION.] 8.19 Subdivision 1. [DEFINITION.] As used in sections 17.691 to 8.2017.70117.703,"bargaining""informational exchange" means the 8.21 mutual obligation of a handler and an association or their 8.22 designated representatives to meet atreasonable times and8.23confer and negotiate in good faith. Negotiations may include8.24all terms relative to trading between handlers and producers of8.25the agricultural commodity such asa mutually agreed upon time 8.26 in conformance with sections 17.691 to 17.703 and confer and 8.27 provide information about their expectations for the upcoming 8.28 marketing year. The informational exchange must be a serious, 8.29 fair, and reasonable attempt to reach agreement by acknowledging 8.30 or refuting with reason points brought up by either party with 8.31 respect to the terms and conditions of a contract relative to 8.32 trading between handlers and producers of the agricultural 8.33 commodity. The topics may include, but are not limited to, the 8.34 following: 8.35(a)(1) prices and terms of sale; 8.36(b)(2) quality specifications; 9.1(c)(3) quantity to be marketed by acreage or weight; 9.2(d)(4) transactions involving products and services 9.3 utilized by one party and provided by the other party; and 9.4(e)(5) check off procedures pursuant to assessments levied 9.5 by the association, not to exceed one-half of one percent of the9.6gross value of the producers annual production contract are9.7collected by handlers from proceeds to producers within the9.8bargaining unit and paid to the associationwhereby a portion of 9.9 the producers' annual production payments under a contract are 9.10 collected by handlers from producers within the bargaining unit 9.11 and paid to the association on some other arrangement. 9.12 Subd. 2. [FIRST TWO MEETINGS.]The association shall9.13notify the commissioner of the commencement of negotiations.The 9.14 handler and an association of producers or their designated 9.15 representatives shall meet at least two times for informational 9.16 exchanges prior to 60 days before the beginning of the marketing 9.17 year. Neither party, however, is required to disclose 9.18 proprietary business or financial records or information. Both 9.19 parties shall inform the department in writing of the time of 9.20 both informational exchanges at least ten days prior to the 9.21 first meeting. Verification of completion of training in 9.22 negotiation, as described in section 17.702, must be included 9.23 with the notification sent to the commissioner. 9.24 Subd. 3. [CONTINUING NEGOTIATIONS.](a) If no agreement is9.25reached at the expiration of ten days after service of such9.26notice to the commissioner, the association may, at any time9.27thereafter, petition the commissioner to assume supervision over9.28the dispute, except as provided for by clause (e).9.29(b) The commissioner shall then set a time and place for9.30conference with the parties to present facts representing each9.31party's case and hearing arguments. The commissioner shall take9.32such steps, in accordance with rules promulgated under sections9.3317.691 to 17.701, as the commissioner deems expedient to affect9.34a voluntary, amicable and expeditious adjustment and settlement9.35of the differences between the handler and the association.9.36(c) At any time prior to 15 days before the first day of10.1the marketing year in dispute, if an agreement on the issues in10.2dispute between the association and the handler has not been10.3reached, the handler may elect not to purchase, directly or10.4indirectly, any quantity of the agriculture commodity produced10.5by the association during that marketing year; or, the affected10.6producers may elect not to sell, directly or indirectly, any10.7quantity of the agricultural commodity produced by the10.8association during that marketing year; or, the affected10.9producers may elect not to sell, directly or indirectly, any10.10quantity of the agricultural commodity to the handler during10.11that marketing year.10.12(d) If either party makes an election, the other party is10.13not under an obligation to continue bargaining with the party so10.14electing for terms during the marketing period in dispute. Both10.15parties may, however, engage immediately in bargaining for the10.16following marketing year.10.17(e) If the petition requesting the commissioner to assume10.18supervision over a dispute is presented 15 days or less before10.19the marketing year in dispute, then the commissioner shall10.20exercise discretionary authority, according to rules promulgated10.21under sections 17.691 to 17.701, in determining which disputes10.22are arbitrable before the start of the marketing year in dispute.10.23 After the conclusion of the second informational exchange and no 10.24 agreement is reached, negotiations may continue between the 10.25 parties at mutually agreed upon times. Mediation may be 10.26 requested in accordance with this section by any party. 10.27 Subd. 4. [AGREEMENT NOT REQUIRED.] The parties may reach 10.28 agreement for a contract during the informational exchanges. 10.29 However, the obligation to meet for informational exchanges does 10.30 not require either party to agree to a proposal, to make a 10.31 concession, or to enter into a contract. 10.32 Subd. 5. [IF NO AGREEMENT IS REACHED.] If an agreement is 10.33 not reached during the informational exchanges, negotiations 10.34 must be considered to continue and either party may request 10.35 mediation as provided in this section. Negotiations may 10.36 continue without mediation and an agreement may be reached 11.1 without the use of mediation. Negotiations must be a serious, 11.2 fair, and reasonable attempt to reach agreement by acknowledging 11.3 or refuting with reason points brought up by either party with 11.4 respect to the terms and conditions of a contract relative to 11.5 trading between handlers and producers of the agricultural 11.6 commodity. A request for mediation requires both parties to the 11.7 negotiation to complete the mediation process described in this 11.8 section, but does not obligate either party to agree to a 11.9 proposal, to make a concession, or to enter into a contract. 11.10 However, the parties are required to perform according to any 11.11 agreement reached at the conclusion of the mediation process. 11.12 Subd. 6. [MEDIATION REQUEST.] An association of producers 11.13 or a handler may request mediation only within ten days after 11.14 the second informational exchange meeting. Written notice 11.15 requesting mediation must be mailed to the commissioner and 11.16 postmarked within ten days of the second informational exchange, 11.17 with a copy to the nonrequesting party, and the notice for 11.18 mediation must contain the last offer made by the party 11.19 requesting mediation. Within three days after receiving the 11.20 request for mediation, the commissioner shall require the 11.21 nonrequesting party to provide reasons for rejecting the last 11.22 offer made by the requesting party and revisions to the last 11.23 offer that might be required to reach an agreement. The 11.24 nonrequesting party will have five days from the date of the 11.25 postmark to provide a response to the commissioner and also 11.26 provide a copy of the response to the requesting party. The 11.27 commissioner shall request the American Arbitration Association 11.28 or a comparable dispute resolution organization to make 11.29 available a list of at least three qualified mediators, but not 11.30 more than six, for the parties to select one individual to 11.31 mediate the dispute. Qualified mediators are those who have met 11.32 the training requirements of Rule 114.12 of the Minnesota 11.33 General Rules of Practice for the District Courts, are familiar 11.34 with sections 17.691 to 17.703, and have served as mediator in 11.35 at least three other commercial disputes or have commensurate 11.36 experience. The handler and the association may agree on a 12.1 mediator or, failing agreement, the commissioner may select the 12.2 mediator from the list provided by allowing each party to strike 12.3 one mediator and choosing one from the remaining names on the 12.4 list. 12.5 Subd. 7. [MEDIATION RULES.] The American Arbitration 12.6 Association mediation rules must be followed during the 12.7 mediation process. If there is a conflict between those rules 12.8 and this statute, the statute prevails. Any information shared 12.9 in the mediation process or offers to settle are to be 12.10 considered confidential and must not be used against either 12.11 party in any other proceeding, court action, or dispute 12.12 resolution process unless otherwise discoverable from outside of 12.13 the mediation process. 12.14 Subd. 8. [DURATION OF MEDIATION.] The mediation process 12.15 must conclude not more than 20 days after the mediator has been 12.16 selected and notified by the department. If the mediator feels 12.17 that additional time may result in an agreement between the 12.18 parties, the mediator may extend the mediation process for an 12.19 additional five days. However, the mediation must conclude, 12.20 under any circumstance, no later than 15 days prior to the start 12.21 of the marketing year, unless the parties agree to a different 12.22 date, but no later than the first day of the marketing year. 12.23 Subd. 9. [MEDIATION COSTS.] All costs for retaining a 12.24 mediator and proceedings during the mediation process must be 12.25 shared equally by both parties. 12.26 Subd. 10. [SUBPOENAS.] The commissioner has the subpoena 12.27 authority to compel participation in the mediation process for 12.28 either party after the informational exchanges. 12.29 Subd. 11. [ENFORCEABILITY.] Any final written agreement 12.30 reached during the mediation procedure is enforceable under the 12.31 law and in the courts of this state. The parties are not 12.32 required to reach an agreement, but they are required to proceed 12.33 through the mediation process as outlined in this section. 12.34 Subd. 12. [BINDING ARBITRATION.] If an agreement is not 12.35 reached during the mediation process, and upon written consent 12.36 by both parties, binding arbitration as set forth in this 13.1 chapter may be used to create a contract or resolve the dispute. 13.2 Subd. 13. [NOTIFICATION.] The parties shall each notify 13.3 the commissioner after the end of the mediation period, if an 13.4 agreement has not been reached, of their desire to use binding 13.5 arbitration to settle the dispute. An arbitrator must be 13.6 selected as provided in subdivision 18. The notification must 13.7 include its final offer in which it shall identify all matters 13.8 as to which the parties agree with contractual language setting 13.9 forth these agreements and all matters as to which the parties 13.10 do not agree with contractual language setting forth the party's 13.11 final offer for resolution of those disagreements. 13.12 Subd. 14. [PROCESS.] For all matters submitted to 13.13 arbitration, the arbitrator may choose between the final offers 13.14 of the parties or fashion a different solution between, but not 13.15 exceeding, the final offers of the parties. If the parties 13.16 reach an agreement on the matters under arbitration before the 13.17 arbitrator issues a decision, they may submit a joint final 13.18 offer that the arbitrator shall accept and render as the 13.19 decision. The arbitrator may hold hearings and administer 13.20 oaths, examine witnesses and documents, take testimony and 13.21 receive evidence, and issue subpoenas to compel the attendance 13.22 of witnesses and the production of records. A person who fails 13.23 to obey the subpoena of an arbitrator may be punished for 13.24 contempt of court on application by the arbitrator to the 13.25 district court for the county in which the failure occurs. The 13.26 arbitrator may use other information in addition to that 13.27 provided by or elicited from the parties. The arbitrator shall 13.28 issue a decision within ten days of he commencement of 13.29 arbitration and that decision is binding on the parties. If the 13.30 parties reach an agreement on the matters in the arbitrator's 13.31 decision prior to signing the contract, they may submit a joint 13.32 final offer to the arbitrator. The arbitrator shall rescind the 13.33 previous decision and accept and render the joint final offer as 13.34 the decision. 13.35 Subd. 15. [CONTRACT.] Within five days after the 13.36 arbitrator's decision, the handler shall prepare a contract that 14.1 must include all terms agreed to by the parties in bargaining or 14.2 awarded in arbitration and shall present the contract to the 14.3 association of producers who must accept the terms of the 14.4 contract within five days of its presentation. 14.5 Subd. 16. [LIST OF ARBITRATORS.] The commissioner, in 14.6 consultation with the American Arbitration Association or 14.7 comparable dispute resolution organization, shall establish a 14.8 list of arbitrators who are qualified by education, training, 14.9 and experience to carry out the responsibilities of an 14.10 arbitrator under this section. 14.11 Subd. 17. [COSTS OF ARBITRATION.] All costs of arbitration 14.12 must be borne equally by the parties. The arbitrator shall 14.13 submit a statement of charges and expenses to the parties and to 14.14 the commissioner. Each party shall pay the arbitrator directly. 14.15 Subd. 18. [SELECTION OF ARBITRATOR.] The arbitrator must 14.16 be selected by the commissioner. The commissioner shall submit 14.17 a list composed of the names of three persons knowledgeable in 14.18 the marketing of the agricultural commodity from which the 14.19 arbitrator must be chosen. Qualified arbitrators are those who 14.20 have met the training requirements of Rule 114.12 of the 14.21 Minnesota General Rules of Practice for the District Courts, are 14.22 familiar with sections 17.691 to 17.703, and have served as an 14.23 arbitrator in at least three other commercial disputes or have 14.24 commensurate experience. The selection must be made by the 14.25 association representative and the handler representative, each 14.26 striking one name from the list. If two names remain, the 14.27 commissioner shall decide which one is the arbitrator. 14.28 Sec. 13. Minnesota Statutes 1996, section 17.698, is 14.29 amended to read: 14.30 17.698 [BASIS FOR MEDIATION AND BARGAINING DECISIONS14.31 FACTORS TO BE CONSIDERED IN MEDIATION AND ARBITRATION.] 14.32 All decisions of mediation andbargainingarbitration which 14.33 result from section 17.697shall be based uponmust consider the 14.34 following factors: 14.35(a)(1) prices or projected prices for the agricultural 14.36 commodity paid by the competing handlers in the market area or 15.1 competing market areas.worldwide; 15.2(b)(2) amount of the commodity produced or projections of 15.3 production in the production area or competing marketing areas.15.4 worldwide; 15.5(c)(3) relationship between the quantity produced and the 15.6 quantity handled by the handler.; 15.7(d)(4) the producers cost of production including the cost 15.8 which would be involved in paying farm labor a fair wage rate 15.9 and providing them with adequate housing.; 15.10(e)(5) the efficiency of farm operations of similar size 15.11 and the projected prices of alternative agricultural commodities 15.12 grown in the market area; 15.13 (6) the cost of production of similar sized handlers; 15.14 (7) the average consumer prices for goods and services, 15.15 commonly known as the cost of living.; 15.16(f)(8) the component of the agricultural commodity that 15.17 makes up the producer's income; 15.18 (9) the impact of the award on the competitive position of 15.19 the handler in the marketing area or competing areas.worldwide; 15.20(g)(10) the impact of the award on the competitive 15.21 position of the agricultural commodity in relationship to 15.22 competing commodities.; 15.23(h)(11) a fair return on investment.; 15.24(i)(12) kind, quality, or grade of the commodity 15.25 involved.; 15.26(j)(13) stipulation of the parties.; and 15.27(k) such(14) other factors which are normally or 15.28 traditionally taken into consideration in determining prices, 15.29 quality, quantity, and the costs of other services involved. 15.30 Sec. 14. Minnesota Statutes 1996, section 17.70, 15.31 subdivision 1, is amended to read: 15.32 Subdivision 1. For the purpose of sections 17.691 to 15.3317.70117.703, the commissioner may receive complaints with 15.34 respect to violations or threatened violations. The 15.35 commissioner may make all necessary investigations, examinations 15.36 or inspections of any violation or threatened violation 16.1 specified in the sworn complaint filed with the commissioner. 16.2 If, upon such investigation, the commissioner considers that 16.3 there is reasonable cause to believe that the person charged has 16.4 committed a practice in violation of sections 17.691 to17.70116.5 17.703, the commissioner shall issue and cause to be served a 16.6 complaint upon the person. The complaint shall summon the 16.7 person to a hearing before the commissioner at the time and 16.8 place fixed. 16.9 Sec. 15. Minnesota Statutes 1996, section 17.70, 16.10 subdivision 2, is amended to read: 16.11 Subd. 2. If the commissioner determines that the person 16.12 complained of has committed a practice in violation of sections 16.13 17.691 to17.70117.703, the commissioner shall state findings 16.14 of fact and shall issue and cause to be served on the person an 16.15 order to cease the violation and shall order further affirmative 16.16 action as will effectuate the policies of sections 17.691 16.17 to17.70117.703. 16.18 Sec. 16. Minnesota Statutes 1996, section 17.70, 16.19 subdivision 3, is amended to read: 16.20 Subd. 3. If the commissioner is of the opinion that the 16.21 person complained of has not committed a practice in violation 16.22 of sections 17.691 to17.70117.703, the commissioner shall make 16.23 findings of fact and issue an order dismissing the complaint. 16.24 Sec. 17. Minnesota Statutes 1996, section 17.701, is 16.25 amended to read: 16.26 17.701 [RULES.] 16.27 The commissioner may promulgate rules necessary for the 16.28 administration of sections 17.691 to17.70117.703 in accordance 16.29 with sections 17.691 to17.70117.703 and chapter 14. 16.30 Sec. 18. [17.702] [NEGOTIATION CLASSES REQUIRED.] 16.31 Upon accreditation of an association of producers, at least 16.32 two members of bargaining teams from both the association and 16.33 the handler named in the application must attend instructional 16.34 classes covering negotiation, mediation, arbitration, and 16.35 facilitation approved by the commissioner. The instruction 16.36 period must be at least three hours. The informational 17.1 exchanges may not commence unless certificates of completion are 17.2 on file with the commissioner. After an association has been 17.3 accredited for a period exceeding one year, the association and 17.4 the handler must have at least one member of their bargaining 17.5 team in informational exchanges or negotiations complete 17.6 training in the previous year of at least three hours in 17.7 negotiation, mediation, arbitration, and facilitation, as 17.8 described in this section, before the dates for informational 17.9 exchanges are determined. Verification of training must 17.10 accompany the notification to the commissioner that 17.11 informational exchanges are scheduled. 17.12 Sec. 19. [17.703] [ADVISORY COMMITTEE.] 17.13 The commissioner shall establish an agricultural marketing 17.14 and bargaining advisory committee to monitor and review the 17.15 implementation and effectiveness of sections 17.691 to 17.703. 17.16 The commissioner shall appoint three producer representatives 17.17 and three handler representatives to the committee. The 17.18 commissioner or the commissioner's representative shall chair 17.19 the committee. The committee shall meet at least once within 17.20 two years of establishment. Additional meetings shall be held 17.21 upon request by the commissioner. The committee shall issue a 17.22 status report to the commissioner on the implementation of 17.23 sections 17.691 to 17.703. The appointment, membership terms, 17.24 compensation, and removal of committee members are governed by 17.25 section 15.059. The committee expires on June 30, 2002. 17.26 Sec. 20. [REPEALER.] 17.27 Minnesota Statutes 1996, section 17.699, is repealed.