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HF 4285

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/12/2020 03:11pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to agriculture; making policy or technical changes to various
agriculture-related provisions, including provisions related to perishable farm
products, seed law, noxious weed law, hemp, farming, loans, plant shipment, pet
food, food, eggs, grain, and others; classifying certain data; modifying rulemaking
authority; providing veterinarian immunity in certain situations; requiring reports;
requiring recommendations; amending Minnesota Statutes 2018, sections 13.6435,
subdivision 4a; 17.117, subdivisions 4, 5, 16; 18.77, subdivisions 8a, 13, by adding
subdivisions; 18.771; 18.78, subdivisions 1, 3; 18.79, subdivisions 6, 10, 15, 18,
21; 18.82; 18.90; 18.91, subdivision 2; 18G.09; 18K.02, by adding subdivisions;
18K.04, subdivisions 1, 3, by adding subdivisions; 18K.06; 21.72, subdivisions
11, 14, 15, by adding a subdivision; 21.73, subdivision 1; 21.74; 21.75, subdivision
1; 21.81, by adding subdivisions; 21.82, by adding a subdivision; 21.84; 21.85,
subdivisions 2, 15; 21.86, subdivision 2; 21.89, subdivisions 2, 4; 21.891,
subdivision 2; 25.40, subdivisions 1, 2; 27.001; 27.01; 27.03, subdivisions 3, 4;
27.0405, subdivision 1; 27.06; 27.07; 27.08; 27.09; 27.10; 27.11; 27.13; 27.131;
27.133; 27.137, subdivisions 5, 7, 9, 10; 27.138; 27.19, subdivision 1; 28A.03,
subdivision 8; 29.23, subdivision 3; 31A.02, subdivision 10; 31A.10; 31A.15,
subdivision 1; 41B.056, subdivision 4; 41D.01; 41D.02; 41D.03; 41D.04; Minnesota
Statutes 2019 Supplement, sections 223.16, subdivision 4; 223.177, subdivisions
2, 3; Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision
4; proposing coding for new law in Minnesota Statutes, chapters 17; 21; 343;
repealing Minnesota Statutes 2018, sections 13.6435, subdivision 5; 21.81,
subdivision 12; 27.03, subdivision 1; 27.04; 27.041.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

PERISHABLE FARM PRODUCTS

Section 1.

Minnesota Statutes 2018, section 27.001, is amended to read:


27.001 PUBLIC POLICY.

The legislature recognizes that perishable deleted text beginagriculturaldeleted text endnew text begin farmnew text end products are important
sources of revenue to a large number of citizens of this state engaged in producing,
processing, manufacturing, or selling such products and that such products cannot be
repossessed in case of default. It is therefore declared to be the policy of the legislature that
certain financial protection be afforded those who are producers on the farmdeleted text begin; farmer
cooperatives which are not wholesale produce dealers as described in section 27.01,
subdivision 8
; and licensed wholesale produce dealers, including the retail merchant
purchasing produce directly from farmers
deleted text endnew text begin and suppliers of perishable farm productsnew text end. The
provisions of this chapter which relate to perishable agricultural commodities shall be
liberally construed to achieve these ends and shall be administered and enforced with a view
to carrying out the above declaration of policy.new text begin A person who handles perishable farm
products in a manner described under this chapter is required to comply with all applicable
rules adopted by the commissioner.
new text end

Sec. 2.

Minnesota Statutes 2018, section 27.01, is amended to read:


27.01 DEFINITIONS.

Subd. 2.

deleted text beginProducedeleted text endnew text begin Perishable farm productsnew text end.

deleted text begin"Produce"deleted text endnew text begin "Perishable farm products"new text end
means:

(1) deleted text beginperishabledeleted text endnew text begin produce, includingnew text end fresh fruits deleted text beginanddeleted text endnew text begin,new text end vegetablesnew text begin, and mushroomsnew text end;

(2) milk and cream and products manufactured from milk and cream; and

(3) poultry and poultry productsnew text begin, including eggsnew text end.

Subd. 4.

Voluntary extension of credit.

The term "voluntary extension of credit" means
a written agreement between deleted text beginthedeleted text endnew text begin anew text end seller and deleted text beginthe licenseedeleted text endnew text begin a buyernew text end wherein the time of payment
for the purchase price of deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end is extended beyond deleted text beginthedeleted text endnew text begin anew text end due
date.

Subd. 5.

Due date.

new text begin(a) new text end"Due date" means deleted text begintendeleted text endnew text begin 30new text end days from the date of delivery of deleted text beginproducedeleted text endnew text begin
perishable farm products
new text end by deleted text beginthedeleted text endnew text begin anew text end seller to deleted text beginthe licenseedeleted text endnew text begin a buyernew text end if the due date is not specified
in the contract. For purposes of this definition a signed invoice with a due date is a contract.

new text begin (b) new text endIf deleted text beginproduce isdeleted text endnew text begin perishable farm products arenew text end consigned, "due date" means deleted text begintendeleted text endnew text begin 30new text end days
from the date the sale is made by the broker or handler, except as to milk processing plants,
where the due date means 15 days following the monthly day of accounting subsequent to
deliveries following the date fixed by each milk processing plant for that accounting.

Subd. 7.

Commissioner.

"Commissioner" means the commissioner of deleted text beginthe Department
of
deleted text end agriculture.

Subd. 8.

deleted text beginWholesale producedeleted text endnew text begin Farm productsnew text end dealer.

(a) deleted text begin"Wholesale produce dealer"
or "dealer at wholesale"
deleted text endnew text begin "Farm products dealer," "dealer of farm products," or "dealer"new text end
means:

deleted text begin (1) adeleted text endnew text begin anynew text end personnew text begin operating as a retail food handler, wholesale food handler, wholesale
food processor or manufacturer, or food broker
new text end who buys from or contracts with a seller
for production or sale of deleted text beginproduce in wholesale lotsdeleted text endnew text begin perishable farm productsnew text end for resaledeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) a person engaging in the business of a broker or agent, who handles or deals in
produce for a commission or fee;
deleted text end

deleted text begin (3) a truck owner or operator who buys produce in wholesale lots for resale; and
deleted text end

deleted text begin (4) a person engaged in the business of a cannery, food manufacturer, or food processor,
who purchases produce in wholesale lots as a part of that business.
deleted text end

deleted text begin (b) For purposes of paragraph (a), "wholesale lots" means purchases from Minnesota
sellers must total more than $12,000 annually.
deleted text end

deleted text begin (c) "Wholesale produce dealer" or "dealer at wholesale"deleted text endnew text begin (b) "Farm products dealer,"
"dealer of farm products," or "dealer"
new text end does not include:

(1) a truck owner and operator who regularly engages in the business of transporting
freight, including deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end, for a transportation fee only, and who
does not purchase, contract to purchase, or sell produce;

(2) a marketing cooperative association in which substantially all of the voting stock is
held by patrons who patronize the association and in which at least 75 percent of the business
of the association is transacted with member or stockholder patrons;

(3) a person who purchases deleted text beginMinnesota seasonally grown perishable fresh fruits and
vegetables,
deleted text endnew text begin perishable farm productsnew text end and paysnew text begin innew text end cash, including lawful money of the United
States, a cashier's check, a certified check, or a bank draft;new text begin or
new text end

(4) a person who handles and deals in only canned, packaged, or processed deleted text beginproduce or
packaged dairy
deleted text endnew text begin perishable farmnew text end products that are no longer perishable as determined by the
commissioner by ruledeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (5) retail merchants who purchase produce, defined in subdivision 2, directly from
farmers, which in the aggregate does not exceed $500 per month.
deleted text end

Subd. 10.

Seller.

"Seller" means a farmer or deleted text beginwholesale produce dealerdeleted text endnew text begin perishable farm
products supplier
new text end, whether the person is the owner of the deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end
or produces it for another person who holds title to it.

new text begin Subd. 11. new text end

new text begin Person. new text end

new text begin "Person" has the meaning given in section 34A.01, subdivision 10.
new text end

new text begin Subd. 12. new text end

new text begin Miscellaneous terms. new text end

new text begin "Retail food handler," "wholesale food handler,"
"wholesale food processor or manufacturer," and "food broker" have the meanings given
in section 28A.05.
new text end

Sec. 3.

Minnesota Statutes 2018, section 27.03, subdivision 3, is amended to read:


Subd. 3.

Brokers.

(a) A deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer operating as a broker,
upon negotiating the sale ofnew text begin perishablenew text end farm products, deleted text beginshalldeleted text endnew text begin mustnew text end issue to both buyer and
seller a written memorandum of sale before the close of the next business day showingnew text begin thenew text end
price, date of delivery, quality, and other details of the transaction.

(b) The memorandum required in paragraph (a) must have an individual identifying
number printed upon it. Numbers must be organized and printed on the memoranda so that
each memorandum can be identified and accounted for sequentially. Unused or damaged
memoranda must be retained by the broker for accounting purposes.

(c) A deleted text beginwholesale producedeleted text end dealer operating as a broker may not alter the terms of a
transaction specified on the original memorandum of sale required in paragraph (a) without
the consent of both parties to the transaction. Upon making a change, the broker is required
to issue a clearly marked corrected memorandum of sale indicating the date and time when
the adjustment or change was made. The broker shall transmit the corrected memorandum
to both the buyer and seller before the close of the next business day.

Sec. 4.

Minnesota Statutes 2018, section 27.03, subdivision 4, is amended to read:


Subd. 4.

Payments for deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end.

If there is a contract between
a seller and a deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer to buy deleted text beginproducedeleted text endnew text begin perishable farm
products
new text end, the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer must pay for the deleted text beginproduce that isdeleted text endnew text begin
perishable farm products
new text end delivered to the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer at the
time and in the manner specified in the contract with the seller. If the due date is not set by
the contract, the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer deleted text beginshalldeleted text endnew text begin mustnew text end pay for the deleted text beginproduce by
ten
deleted text endnew text begin perishable farm products within 30new text end days after delivery or taking possession of the deleted text beginproducedeleted text endnew text begin
perishable farm products
new text end. A payment received after the due date must include payment of
12 percent annual interest prorated for the number of days past the due date.

Sec. 5.

Minnesota Statutes 2018, section 27.0405, subdivision 1, is amended to read:


Subdivision 1.

Production and review of information.

(a) Upon special order, the
commissioner may require deleted text beginpersons engaged in the business ofdeleted text end anew text begin farm productsnew text end dealer deleted text beginat
wholesale
deleted text end to file at the time and in the manner the commissioner directs, sworn or unsworn
reports or answers in writing to specific questions on any matter which the commissioner
may investigate.

(b) For the purposes of this section, the commissioner or the commissioner's authorized
agents may audit and review any records relating to the financial condition of anynew text begin farm
products
new text end dealer deleted text beginat wholesaledeleted text end and any transactions between the dealer and persons entitled
to the protections of this chapter, if the records are in the possession of or under the case,
custody, or control of the dealer or the dealer's authorized agent.

Sec. 6.

Minnesota Statutes 2018, section 27.06, is amended to read:


27.06 COMPLAINTS TO COMMISSIONER, HEARING; ACTION ON BOND.

A person claiming to be damaged by a breach of the conditions of a deleted text beginbond given by a
licensee
deleted text endnew text begin sales contractnew text end may submit a complaint to the commissioner within 40 days after
the due date. The complaint must be a written statement of the facts constituting the
complaint. After receiving a filed complaint, the commissioner deleted text beginshalldeleted text endnew text begin mustnew text end investigate the
charges made and may have the matter heard as a contested case pursuant to chapter 14 if
an affected party requests a hearing.

Sec. 7.

Minnesota Statutes 2018, section 27.07, is amended to read:


27.07 GRADES ESTABLISHED; INSPECTION.

Subdivision 1.

Commissioner's power.

The commissioner shall have power to establish
grades on all deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end and when deleted text begindeemeddeleted text end necessary shall provide
for inspecting and grading deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end subject to sale at deleted text beginsuchdeleted text end marketing
points within the state as the commissioner may designate.

Subd. 2.

Certificates.

The commissioner shall deleted text beginprovide for the issuing ofdeleted text endnew text begin issuenew text end certificates
of inspection showing the grade, quality, and conditions of deleted text beginthe producedeleted text endnew text begin perishable farm
products
new text end, and may charge and collect a reasonable fee deleted text begintherefor, a schedule thereof to be
adopted and published from time to time. Such certificates
deleted text endnew text begin for the issuance of a certificate
of inspection. A certificate
new text end of inspection deleted text beginshall bedeleted text endnew text begin isnew text end prima facie evidence in all courts of this
state as to the grade, quality, and condition of deleted text beginthe producedeleted text endnew text begin perishable farm productsnew text end at the
time the inspection was made.

Subd. 3.

Application for inspector's services.

Any person who wants deleted text beginproducedeleted text endnew text begin perishable
farm products or a perishable farm products sales transaction
new text end to be inspected may apply to
the commissioner for the service of an inspector and, if it appears to the commissioner that
thenew text begin perishable farm productsnew text end volume deleted text beginof the producedeleted text end is sufficient to justify the request, the
commissioner may grant the service upon terms and conditions fixed by the commissioner
and this section.

Subd. 4.

Deposit agreement.

The commissioner may require an agreement, prior to the
establishment of the inspection service, requiring the user of the inspection service to at all
times have on deposit with the department a sufficient amount of money to pay the estimated
costs of such inspection service for a period of not less than 15 days in advance. When any
such agreement shall terminate by action of either party thereto, the commissioner shall pay
to the depositor any money remaining to the depositor's credit after the deduction of the
costs at the time such agreement terminates.

Subd. 5.

Fees.

Fees for inspection shall be determined by the commissioner and shall
be reviewed and adjusted every six months. In determining the fees to be charged, the
commissioner shall take into consideration fees charged in other states offering similar
inspection services to the end that the fees charged will provide a competitive marketing
position for Minnesota deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end.

Subd. 6.

Cooperative agreements; fees; account.

The commissioner may collect fees
as provided for in cooperative agreements between the commissioner and the United States
Department of Agriculture for the inspection of deleted text beginfresh fruits, vegetables, and otherdeleted text endnew text begin perishable
farm
new text end products. The fees and interest attributable to money in the account must be deposited
in the agricultural fund and credited to a fruit and vegetables inspection account. Money in
the account, including interest earned, is appropriated to the commissioner to administer
the cooperative agreements.

Sec. 8.

Minnesota Statutes 2018, section 27.08, is amended to read:


27.08 FILING BRAND OR LABEL; PERMIT.

Any person producing, manufacturing, or handlingdeleted text begin,deleted text endnew text begin perishable farm productsnew text end in this
statedeleted text begin, any of the products mentioned in section 27.01deleted text end, except cheese and butter, and preparing,
packing, and offering deleted text beginthe samedeleted text endnew text begin perishable farm productsnew text end for sale, may file with the
commissioner a brand or labeldeleted text begin, anddeleted text endnew text begin.new text end The applicant may place upon this brand or label deleted text beginsuchdeleted text endnew text begin
a
new text end descriptive or locative matternew text begin,new text end as deleted text beginshall bedeleted text end approved by the commissioner. The commissioner
may issue to deleted text beginsuchdeleted text endnew text begin annew text end applicant for brands and labels a permit to use the same, subject to
deleted text begin suchdeleted text endnew text begin thenew text end rules and restrictions as to quality of product so branded as the commissioner may
determine. The brand or label shall be recorded in the office of the commissioner and any
person who shall, without authority of the commissioner, brand and label therewith products
or commodities of a quality below the standard permitted under the brand or label, shall be
subject to the penal provisions of section 27.19.

Sec. 9.

Minnesota Statutes 2018, section 27.09, is amended to read:


27.09 INSPECTION CERTIFICATE.

When deleted text beginproduce isdeleted text endnew text begin perishable farm products arenew text end ready for sale, or deleted text beginis on itsdeleted text endnew text begin are on thenew text end way
to market, the owner deleted text beginthereofdeleted text end, deleted text beginor thedeleted text end conveyor, deleted text beginor thedeleted text end prospective buyer, or any other deleted text begininterested
party,
deleted text endnew text begin person with an interest in the perishable farm productsnew text end may deleted text begincall for and shall be
entitled to
deleted text end new text beginrequest an new text endinspection of deleted text beginsuch produce and to an inspection certificate, as provided
for in
deleted text end new text beginthe perishable farm products under new text endsection 27.07.

Sec. 10.

Minnesota Statutes 2018, section 27.10, is amended to read:


27.10 deleted text beginPRODUCE EXAMINED, WHENdeleted text endnew text begin PERISHABLE FARM PRODUCTS
EXAMINATION
new text end.

new text begin (a) new text endWhen deleted text beginproduce isdeleted text endnew text begin perishable farm products arenew text end shipped to or received by anew text begin farm
products
new text end dealer deleted text beginat wholesaledeleted text end for handling, purchase, or sale in this state deleted text beginat any market point
therein giving inspection service, as provided for in section 27.07
deleted text end, and thenew text begin farm productsnew text end
dealer deleted text beginat wholesaledeleted text end finds the deleted text beginsamedeleted text endnew text begin perishable farm productsnew text end to be in a spoiled, damaged,
unmarketable, or unsatisfactory condition, deleted text beginunless both parties shall waive inspection before
sale or other disposition thereof,
deleted text end the dealer deleted text beginshall cause the same to bedeleted text endnew text begin must have the
perishable farm products
new text end examined by an inspector assigned by the commissioner for that
purposedeleted text begin, anddeleted text endnew text begin.new text end The inspector deleted text beginshalldeleted text endnew text begin mustnew text end execute and deliver a certificate to the deleted text beginapplicant
thereof
deleted text endnew text begin farm products dealernew text end stating the day, the time and place of the inspection, and the
condition of the produce and mail or deliver a copy of the certificate to the shipper deleted text beginthereofdeleted text endnew text begin
of the perishable farm products
new text end.

new text begin (b) This section does not apply when the parties to the perishable farm products sales
contract waive the inspection requirement.
new text end

Sec. 11.

Minnesota Statutes 2018, section 27.11, is amended to read:


27.11 SHIPMENTS ON CONSIGNMENT.

When anynew text begin farm productsnew text end dealer deleted text beginat wholesaledeleted text end to whom deleted text beginproduce hasdeleted text endnew text begin perishable farm
products have
new text end been shipped or consigned for sale on a commission basis or on consignment
or under any circumstances deleted text beginwhereindeleted text endnew text begin wherenew text end the title to the deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end
remains with the shipper, deleted text beginhas received the same,deleted text end the dealer deleted text beginshalldeleted text endnew text begin mustnew text end, within a reasonable
time deleted text beginthereafter, make a writtendeleted text endnew text begin,new text end report to the shipperdeleted text begin, which report shall includedeleted text end the exact
time of arrival,new text begin andnew text end the quantity, quality, and price per unit of the deleted text beginproduce and at the same
time shall
deleted text endnew text begin perishable farm products. The dealer mustnew text end pay the shipper the net amount duenew text begin at
the time the report required under this section is made
new text end.

Sec. 12.

Minnesota Statutes 2018, section 27.13, is amended to read:


27.13 INVESTIGATION OF COMPLAINTSdeleted text begin; SUSPENSION OR REVOCATION
OF LICENSE
deleted text end.

new text begin (a) new text endThe commissioner is authorized tonew text begin: (1)new text end receive complaints against any deleted text beginpersonsdeleted text endnew text begin personnew text end
dealing in, shipping, transporting, storing, or selling deleted text beginproduce, and shall have authority todeleted text endnew text begin
perishable farm products; (2)
new text end make any and all necessary investigations relative to the
handling of, or storing, shipping, or dealing in deleted text beginproduce at wholesale and shall, at all times,
have access to
deleted text endnew text begin perishable farm products; and (3) enter with reasonable noticenew text end all buildings,
yards, warehouses, storage and transportation facilities in which deleted text beginany produce isdeleted text endnew text begin perishable
farm products are
new text end kept, stored, handled or transacted. deleted text beginFor the purpose of enforcing the
provisions of sections 27.01 to 27.14 and 27.19, the commissioner shall have the authority,
upon complaint being filed for any alleged violation of the provisions thereof, or the rules
issued thereunder, or upon information furnished by an inspector of the Department of
Agriculture, to suspend while violation continues or revoke any license issued by the
commissioner upon ten days notice to the licensee and an opportunity to be heard. Where
the public interest requires it the commissioner may suspend a license after such notice
pending hearing and decision.
deleted text end

new text begin (b)new text end The commissioner deleted text beginshall have, and is hereby granted, full authority todeleted text endnew text begin may: (1)new text end issue
subpoenas requiring the attendance of witnesses before the commissioner, with books,
papers, and other documents, articles, or instrumentsdeleted text begin, and todeleted text endnew text begin; (2)new text end compel the disclosure by
such witnesses of all facts known to them relative to deleted text beginthedeleted text endnew text begin anew text end matter under investigationdeleted text begin, and
shall have full authority to
deleted text endnew text begin; and (3)new text end administer oaths and deleted text begintodeleted text end take testimonydeleted text begin; anddeleted text endnew text begin.
new text end

new text begin (c)new text end The commissioner deleted text beginshall thereafter give thedeleted text endnew text begin must provide anew text end complainant a written
report of the investigationnew text begin conducted under this sectionnew text end. deleted text beginSuch report shall bedeleted text endnew text begin The report isnew text end
prima facie evidence of the matters deleted text beginthereindeleted text end containednew text begin in the reportnew text end. deleted text beginAll parties disobeying
the orders or subpoenas of the commissioner shall be
deleted text endnew text begin A party violating a commissioner's
order or subpoena is
new text end guilty of contempt as in proceedings in district courts of the state and
may be punished in like manner.

Sec. 13.

Minnesota Statutes 2018, section 27.131, is amended to read:


27.131 MEDIATION AND ARBITRATION.

A contract for deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end between a buyer and a seller must
contain language providing for resolution of contract disputes by either mediation or
arbitration. If there is a contract dispute, either party may make a written request to the
deleted text begin departmentdeleted text endnew text begin commissionernew text end for mediation or arbitration, as specified in the contract to facilitate
resolution of the dispute.

Sec. 14.

Minnesota Statutes 2018, section 27.133, is amended to read:


27.133 PARENT COMPANY LIABILITY.

If a deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer is a subsidiary of another corporation,
partnership, or association, the parent corporation, partnership, or association is liable to a
seller for the amount of any unpaid claim or contract performance claim if the deleted text beginwholesale
produce
deleted text endnew text begin farm productsnew text end dealer fails to pay or perform according to the terms of the contract
and this chapter.

Sec. 15.

Minnesota Statutes 2018, section 27.137, subdivision 5, is amended to read:


Subd. 5.

Proceeds.

"Proceeds" means whatever is received upon the sale, exchange,
collection, or transfer of deleted text beginproduce, products of produce, or proceeds from the produce or
products of produce
deleted text endnew text begin perishable farm products or manufactured farm productsnew text end.

Sec. 16.

Minnesota Statutes 2018, section 27.137, subdivision 7, is amended to read:


Subd. 7.

deleted text beginProducts of producedeleted text endnew text begin Manufactured farm productsnew text end.

deleted text begin"Products of produce"deleted text endnew text begin
"Manufactured farm products"
new text end means products derived from deleted text beginproducedeleted text endnew text begin perishable farm
products
new text end through manufacturing, processing, or packaging.

Sec. 17.

Minnesota Statutes 2018, section 27.137, subdivision 9, is amended to read:


Subd. 9.

Trust assets.

"Trust assets" means deleted text beginproduce, products of produce, and proceeds
from the produce or products of produce
deleted text endnew text begin perishable farm products or manufactured farm
products and proceeds from the perishable or manufactured farm products
new text end.

Sec. 18.

Minnesota Statutes 2018, section 27.137, subdivision 10, is amended to read:


Subd. 10.

deleted text beginWholesale producedeleted text endnew text begin Farm productsnew text end dealer.

"deleted text beginWholesale producedeleted text endnew text begin Farm
products
new text end dealer" has the meaning given in section 27.01, subdivision 8deleted text begin, and includes the
person whether or not the person is licensed
deleted text end.

Sec. 19.

Minnesota Statutes 2018, section 27.138, is amended to read:


27.138 deleted text beginWHOLESALE PRODUCEdeleted text endnew text begin FARM PRODUCTSnew text end DEALERS' TRUST.

Subdivision 1.

Trust establishment and maintenance.

(a) deleted text beginThe produce and products
of produce of a wholesale produce dealer
deleted text endnew text begin A farm products dealer's perishable farm products
and manufactured farm products
new text end and proceedsnew text begin related to the sale of a farm products dealer's
perishable farm products or manufactured farm products
new text end are held in trust for the benefit of
unpaid sellers.

(b) The trust assets are to be maintained as a nonsegregated floating trust. Commingling
of the trust assets is contemplated.

(c) The deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer must maintain the trust assets in a
manner that makes the trust assets freely available to satisfy the amounts owed to unpaid
sellers and may not divert trust assets in a manner that impairs the ability of unpaid sellers
to recover amounts due.

(d) A deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer must maintain the trust assets in trust until
payment has been made in full to unpaid sellers. Payment is not made if a seller receives a
payment instrument that is dishonored.

(e) A deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer holds trust assets in trust for the seller,
except that the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer may transfer title to trust assets if
the proceeds of the transfer are maintained as trust assets. Until a seller is paid, a deleted text beginwholesale
produce
deleted text endnew text begin farm productsnew text end dealer deleted text begindoesdeleted text endnew text begin mustnew text end not transfer title to trust assets:

(1) in a transaction made to another deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer;

(2) in a transaction intended to impair the ability of unpaid sellers to recover amounts
due; or

(3) for which the value is inadequate to satisfy filed beneficiaries notices.

Subd. 2.

Sellers' rights to trust assets.

(a) An unpaid seller may recover trust assets for
the net amount unpaid after the due date after allowing deductions of contemplated expenses
or advances made in connection with the transaction. An amount is considered unpaid if a
seller receives a payment instrument that is dishonored.

(b) An unpaid seller may recover trust assets after filing a beneficiaries notice with the
deleted text begin wholesale producedeleted text endnew text begin farm productsnew text end dealer to whom the deleted text beginproduce wasdeleted text endnew text begin perishable farm products
were
new text end transferred and the commissioner, and after filing in the central filing system under
section 336.9-501 as if the trust were a security interest in the trust assets by 40 days after
the due date for the payment to the seller or 40 days after a payment instrument to the seller
for the deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end is dishonored, whichever is later.

Subd. 3.

Beneficiaries notice.

(a) A beneficiaries notice must be in writing and in a
form prescribed by the commissioner.

(b) The beneficiaries notice must contain:

(1) the name and address of the seller;

(2) the name and address of the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer maintaining
the trust assets;

(3) the deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end, amount of deleted text beginproducedeleted text endnew text begin productnew text end, amount to be paid
the seller, and the due date of transactions that are unpaid or, if appropriate, the date a
payment instrument was dishonored; and

(4) a description of the trust assets.

(c) The filing officer deleted text beginshalldeleted text endnew text begin mustnew text end enter on the initial financing statement filed pursuant
to this section the time of day and date of filing. The filing officer deleted text beginshalldeleted text endnew text begin mustnew text end accept filings,
amendments, and terminations of an initial financing statement filed pursuant to this section
and charge the same filing fees as provided in section 336.9-525. An initial financing
statement filed pursuant to this section is void and may be removed from the filing system
18 months after the date of filing. The beneficiaries notice may be physically destroyed 30
months after the date of filing.

Subd. 4.

Priority of unpaid sellers' interests in trust assets.

(a) The unpaid seller's
interest in trust assets is paramount to all other liens, security interests, and encumbrances
in the trust assets. An unpaid seller who recovers trust assets recovers them free of any liens,
security interests, or encumbrances.

(b) If the trust assets are inadequate to pay unpaid sellers the amount due, the unpaid
sellers shall share proportionately in the trust assets.

Subd. 5.

Recovery actions.

An action to recover trust assets may be brought in district
court in a county where trust assets are located after the beneficiaries notice is filed. The
beneficiaries notice may be amended, except the amount due, by leave of the court in
furtherance of justice. An action to recover trust assets is barred if it is not brought by 18
months after the date the beneficiaries notice is filed.

Subd. 6.

Terminations of beneficiaries notice.

A seller must terminate a beneficiaries
notice by ten days after the amount due for the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer is
paid. The commissioner may terminate a beneficiaries notice upon request and demonstration
by the deleted text beginwholesale producedeleted text endnew text begin farm productsnew text end dealer that the amounts due under the beneficiaries
notice have been paid.

Sec. 20.

Minnesota Statutes 2018, section 27.19, subdivision 1, is amended to read:


Subdivision 1.

Prohibited acts.

(a) A person subject to the provisions of this section
and sections 27.01 to 27.14 deleted text beginmaydeleted text endnew text begin mustnew text end not:

deleted text begin (1) operate or advertise to operate as a dealer at wholesale without a license;
deleted text end

deleted text begin (2)deleted text endnew text begin (1)new text end make any false statement or report as to the grade, condition, markings, quality,
or quantity of produce, as defined in section 27.069, received or delivered, or act in any
manner to deceive a consignor or purchaser;

deleted text begin (3)deleted text endnew text begin (2)new text end refuse to accept a shipment contracted for by the person, unless the refusal is
based upon the showing of a state inspection certificate secured with reasonable promptness
after the receipt of the shipment showing that the kind and quality of produce, as defined
in section 27.069, is other than that purchased or ordered by the person;

deleted text begin (4)deleted text endnew text begin (3)new text end fail to account or make a settlement for deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end within
the required time;

deleted text begin (5)deleted text endnew text begin (4)new text end violate or fail to comply with the terms or conditions of a contract entered into
by the person for the purchase, production, or sale of deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end;

deleted text begin (6)deleted text endnew text begin (5)new text end purchase for a person's own account any produce received on consignment, either
directly or indirectly, without the consent of the consignor;

deleted text begin (7)deleted text endnew text begin (6)new text end issue a false or misleading market quotation, or cancel a quotation during the
period advertised by the person;

deleted text begin (8)deleted text endnew text begin (7)new text end increase the sales charges on deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end shipped to the
person by means of "dummy" or fictitious sales;

deleted text begin (9)deleted text endnew text begin (8)new text end receive decorative forest products and the products of farms and waters from
foreign states or countries for sale or resale, either within or outside of the state, and give
the purchaser the impression, through any method of advertising or description, that the
deleted text begin produce isdeleted text endnew text begin perishable farm products arenew text end of Minnesota origin;

deleted text begin (10) fail to notify in writing all suppliers of produce of the protection afforded to suppliers
by the person's licensee bond, including: availability of a bond, notice requirements, and
any other conditions of the bond;
deleted text end

deleted text begin (11) make a false statement to the commissioner on an application for license or bond
or in response to written questions from the commissioner regarding the license or bond;
deleted text end

deleted text begin (12)deleted text endnew text begin (9)new text end commit to pay and not pay in full for all deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end
committed for. A processor may not pay an amount less than the full contract price if the
crop produced is satisfactory for processing and is not harvested for reasons within the
processor's control. If the processor sets the date for planting, then bunching, unusual yields,
and a processor's inability or unwillingness to harvest must be considered to be within the
processor's control. Under this clause growers must be compensated for passed acreage at
the same rate for grade and yield as they would have received had the crop been harvested
in a timely manner minus any contractual provision for green manure or feed value. Both
parties are excused from payment or performance for crop conditions that are beyond the
control of the parties; or

deleted text begin (13)deleted text endnew text begin (10)new text end discriminate between different sections, localities, communities, or cities, or
between persons in the same community, by purchasing deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end
from farmers of the same grade, quality, and kind, at different prices, except that price
differentials are allowed if directly related to the costs of transportation, shipping, and
handling of the deleted text beginproducedeleted text endnew text begin perishable farm productsnew text end and a person is allowed to meet the prices
of a competitor in good faith, in the same locality for the same grade, quality, and kind of
deleted text begin producedeleted text endnew text begin perishable farm productsnew text end. A showing of different prices by the commissioner is
prima facie evidence of discrimination.

new text begin (b) Any person violating any provision of this chapter, or any rule adopted under this
chapter, is guilty of a misdemeanor.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end A separate violation occurs with respect to each different person involved, each
purchase or transaction involved, and each false statement.

new text begin (d) Any prosecuting officer to whom the commissioner reports a violation of this chapter,
or a violation of any rule adopted under this chapter, must bring appropriate proceedings
in a proper court without delay for the enforcement of the penalties under this chapter.
new text end

Sec. 21. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 13.6435, subdivision 5; 27.03, subdivision 1; 27.04;
and 27.041,
new text end new text begin are repealed.
new text end

ARTICLE 2

SEED LAW

Section 1.

Minnesota Statutes 2018, section 21.72, subdivision 11, is amended to read:


Subd. 11.

Screenings.

"Screenings" means chaff, florets, immaturenew text begin or brokennew text end seed, weed
seeds, inert matter, and other foreign material removed in any way from any seeds or grains
in any kind of cleaning and processing, or obtained from any other source.

Sec. 2.

Minnesota Statutes 2018, section 21.72, subdivision 14, is amended to read:


Subd. 14.

Noxious weed seeds.

"Noxious weed seeds" includes restrictednew text begin and prohibitednew text end
noxious weed seeds as defined in deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 15new text begin and 16new text end.

Sec. 3.

Minnesota Statutes 2018, section 21.72, subdivision 15, is amended to read:


Subd. 15.

Restricted weed seeds.

"Restricted weed seeds" are those weed seeds deleted text beginwhich,
if present in weed-seed infested agricultural seeds and grains, or screenings, shall not be
present singly or collectively in excess of the rate of 90 per pound. Restricted weed seeds
are seeds of buckhorn plantain (Plantago lanceolata), dodder (Cuscuta spp.), Frenchweed
(Thlaspi arvense), hoary alyssum (Berteroa incana), horse nettle (Solanum carolinense),
wild mustard (Brassica ssp.), quack grass (Agropyron repens), Canada thistle (Cirsium
arvense), field bindweed (Convolvulus arvensis), leafy spurge (Euphorbia esula), perennial
peppergrass (Cardaria draba), perennial sow thistle (Sonchus arvensis), and Russian
knapweed (Centaurea repens)
deleted text endnew text begin placed on the list provided under section 21.85, subdivision
15
new text end.

Sec. 4.

Minnesota Statutes 2018, section 21.72, is amended by adding a subdivision to
read:


new text begin Subd. 16. new text end

new text begin Prohibited noxious weed seeds. new text end

new text begin "Prohibited noxious weed seeds" are those
weed seeds placed on the list provided under section 21.85, subdivision 15.
new text end

Sec. 5.

Minnesota Statutes 2018, section 21.73, subdivision 1, is amended to read:


Subdivision 1.

Infested feed grain; screenings.

It is unlawful for any person to feed or
to sell, offer for sale, or expose for sale, or transport, to the consumer, for feeding purposes,
any weed-seed infested agricultural seeds and grains, or screeningsnew text begin, ifnew text end:

(1) deleted text begincontainingdeleted text end restricted new text beginnoxious new text endweed seedsnew text begin are present singly or collectivelynew text end in excess
of the deleted text beginlegal limitdeleted text endnew text begin rate of 90 per poundnew text end;

(2) deleted text begincontainingdeleted text endnew text begin prohibited noxious weed seeds are present; or
new text end

new text begin (3) they containnew text end more than ten percent total weed seeds by weight.

Sec. 6.

Minnesota Statutes 2018, section 21.74, is amended to read:


21.74 EXCEPTIONS.

The provisions of section 21.73 shall not apply to:

(1) Agricultural seeds and grains, or screenings, not intended for feeding purposes;

(2) Weed-seed infested agricultural seeds and grains, or screenings, being transported
upon any public highway to or from a cleaning or processing establishment for cleaning or
processing, which same are carried or transported in such vehicles or containers as will
prevent the leaking or scattering thereof;

(3) Weed-seed infested agricultural seeds and grains, or screenings, which have first
been devitalized by grinding, heating, chemical treatment, or any other suitable method;

(4) The sale of weed-seed infested agricultural seeds and grains, or screenings, to each
other by jobbers, manufacturers, or processors who mix or grind concentrated commercial
feeding stuff for sale; provided that the restrictions applying to clause (2), are complied
with;

(5) The sale of weed-seed infested agricultural seeds and grains, or screenings, by any
vendor to a consumer, provided that the restrictions set forth in clauses (2) and (3) are
complied with. However, where the vendor is not equipped to devitalize weed seeds, the
vendor may sell weed-seed infested agricultural seeds, grains, or screenings only to a
consumer who holds a permit issued by the commissioner for such a purchase. The
commissioner shall issue such a permit annually to a consumer only if the consumer has
the necessary facilities for devitalization, as determined by the commissioner, or has access
to such facilities. The consumer shall devitalize such weed-seed infested agricultural seeds,
grains, or screenings. The commissioner may revoke a permit after due notice and a hearing
if the consumer does not comply with the provisions of this clause. The provisions of this
clause shall not apply to the sale at a farm auction of a vendors agricultural seeds or grains
for feeding or processing purposes. "Farm auction" for the purpose of this clause means the
final sale at auction of the personal property of the farmer to the highest bidder. However,
if such agricultural seeds and grains are sold under variety names, and in such manner and
at such prices as to indicate that it is intended to use the seeds and grains for seeding purposes,
the seeds and grains are then subject to all laws relating to cleaning, testing, and labeling
of agricultural seed as set forth in the agricultural seed laws and the agricultural weed laws
of the state of Minnesota and such rules as have been promulgated by the commissioner of
agriculture thereunder; and

(6) Weed-seed infested agricultural seed and grains or screenings, produced by the farmer
and fed on the farmer's own farm, provided it does not contain restrictednew text begin or prohibited
noxious
new text end weed seeds in excess of the legal limit.

Sec. 7.

Minnesota Statutes 2018, section 21.75, subdivision 1, is amended to read:


Subdivision 1.

Enforcement; rulemaking.

deleted text beginThe duty of enforcing sections 21.71 to
21.78 and carrying out the provisions and requirements thereof is vested in the commissioner
of agriculture. The commissioner, personally or through agents, shall
deleted text endnew text begin The commissioner
must enforce sections 21.71 to 21.78. The commissioner must
new text end:

(1) sample, inspect, make analysis of, and test weed-seed infested agricultural seeds and
grains, or screenings, transported, sold, or offered, or exposed for sale within this state for
any purpose, at such time and place, and to such extent as the commissioner may deem
necessary to determine whether such weed-seed infested agricultural seeds and grain, or
screenings, is in compliance with the provisions of sections 21.71 to 21.78, and to notify
promptly the person who transported, sold, offered, or exposed the weed-seed infested
agricultural seeds and grains, or screenings, for sale of any violation;new text begin and
new text end

(2) prescribe and, after public hearing following due public notice, adopt such rules as
may be necessary to secure the efficient enforcement of sections 21.71 to 21.78. deleted text beginSuch rules
are to be adopted in accordance with the law; and
deleted text end

deleted text begin (3) Prescribe and, after public hearing following due public notice, establish, add to, or
subtract therefrom by rules a restricted noxious weed-seed list.
deleted text end

Sec. 8.

Minnesota Statutes 2018, section 21.81, is amended by adding a subdivision to
read:


new text begin Subd. 14a. new text end

new text begin Labeler. new text end

new text begin "Labeler" means the person whose complete name and address
appears on the label of agricultural, vegetable, flower, tree, shrub, or any other seed for sale
within this state, or the person identified by the code designation on the label as authorized
by Code of Federal Regulations, title 7, section 201.23.
new text end

Sec. 9.

Minnesota Statutes 2018, section 21.81, is amended by adding a subdivision to
read:


new text begin Subd. 21a. new text end

new text begin Recommended Uniform State Seed Law. new text end

new text begin "Recommended Uniform State
Seed Law" refers to the Association of American Seed Control Officials guidelines for seed
law.
new text end

Sec. 10.

Minnesota Statutes 2018, section 21.82, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Hemp seed. new text end

new text begin To comply with the hemp requirements in chapter 18K, a hemp
seed labeler must test the hemp parent plants used to produce the hemp seed at the appropriate
developmental stage and obtain a certificate of analysis showing that the hemp seed was
produced from hemp parent plants with less than 0.3 percent total delta-9
tetrahydrocannabinol concentration.
new text end

Sec. 11.

Minnesota Statutes 2018, section 21.84, is amended to read:


21.84 RECORDS.

deleted text begin Each person whose name appears on the label of agricultural, vegetable, flower,
wildflower, tree, or shrub seeds subject to section 21.82 or 21.83 shall
deleted text endnew text begin (a) A labeler mustnew text end
keepnew text begin (1)new text end for three years complete records of eachnew text begin seednew text end lot deleted text beginof agricultural, vegetable, flower,
wildflower, tree, or shrub seed
deleted text end sold in this statenew text begin,new text end and deleted text beginshall keepdeleted text endnew text begin (2)new text end for one year a file sample
of eachnew text begin seednew text end lot deleted text beginof seeddeleted text end after disposition of the lot.

new text begin (b) The labeler must retain the following information as part of the complete record for
each seed lot sold:
new text end

new text begin (1) the lot number or other lot identification;
new text end

new text begin (2) a copy of the genuine grower's or tree seed collector's declaration, or a similar
document containing the same information;
new text end

new text begin (3) copies of invoices showing the sale of each seed lot, including the name of the person
the seed was sold to, the amount sold, the date of sale, the name of the kind or the kind and
variety of the seed, and the lot number;
new text end

new text begin (4) a copy of the label that was attached to or accompanied the seed lot;
new text end

new text begin (5) a copy of the field and final certification documents, if applicable;
new text end

new text begin (6) a copy of each testing report of the seed for labeling purposes; and
new text end

new text begin (7) a file sample of the seed lot which is representative of the seed lot and of sufficient
size to constitute an official sample in accordance with section 201.43 of the Federal Seed
Act regulations.
new text end

Sec. 12.

Minnesota Statutes 2018, section 21.85, subdivision 2, is amended to read:


Subd. 2.

Seed laboratory.

(a) The commissioner deleted text beginshalldeleted text endnew text begin mustnew text end establish and maintain a
seed laboratory for seed testing, employing necessary agents and assistants to administer
and enforce sections 21.80 to 21.92, who shall be governed by chapter 43A.

(b) The laboratory procedures for testing official seed samples are the procedures set
forth in the Rules for Testing Seeds that is published annually by the Association of Official
Seed Analysts. If a laboratory procedure rule does not exist for a particular type of seed,
then laboratory procedures from other recognized seed testing sources may be used, including
procedures under the Code of Federal Regulations, title 7, part 201, or the International
Rules for Testing Seeds.

new text begin (c) The commissioner must apply the following tolerances when comparing the label
claims made for required label categories, minimum standards not specifically required to
be labeled, or other label claims that can be verified by laboratory analysis:
new text end

new text begin (1) tolerances for pure seed, weed seed, other crop seed, and inert matter according to
Code of Federal Regulations, title 7, section 201.60, including additional tolerances for
chaffy seeds and mixtures containing chaffy seeds;
new text end

new text begin (2) tolerances for the presence of prohibited noxious weed seeds and rate of occurrence
of restricted weed seeds according to Code of Federal Regulations, title 7, section 201.65;
new text end

new text begin (3) tolerances for germination, hard seed, dormant seed, total viable seed, and pure live
seed percentages of kinds of seeds required to be labeled as agricultural seed according to
Code of Federal Regulations, title 7, section 201.63; and
new text end

new text begin (4) minimum germination standards:
new text end

new text begin (i) for vegetable seed germination, in accordance with section 21.82, subdivision 7,
paragraph (a), and the germination standards for vegetable seeds prepared for use by home
gardeners in Code of Federal Regulations, title 7, section 201.31; and
new text end

new text begin (ii) for flower seed germination, in accordance with section 21.82, subdivision 8,
paragraph (a), and the germination standards for flower seeds prepared for use by home
gardeners as listed in the Recommended Uniform State Seed Law.
new text end

Sec. 13.

Minnesota Statutes 2018, section 21.85, subdivision 15, is amended to read:


Subd. 15.

Prohibited and restricted seeds.

The commissioner deleted text beginshalldeleted text endnew text begin, in consultation
with the Seed Program Advisory Committee, must
new text end determine species that are considered
prohibited weed seeds and restricted noxious weed seeds and the allowable rate of occurrence
of restricted noxious weed seedsdeleted text begin.deleted text endnew text begin subject to sections 21.80 to 21.92. The commissioner must
prepare, publish, and revise at least once every three years, a list of prohibited and restricted
noxious weed seeds. The commissioner must distribute the list to the public and may request
the help of the United States Department of Agriculture's published All-States Noxious
Weed Seed List or any other organization that the commissioner considers appropriate to
assist in the distribution. The commissioner may, in consultation with the Seed Program
Advisory Committee, accept and consider noxious weed seed designation petitions from
Minnesota citizens or Minnesota organizations or associations including the Noxious Weed
Advisory Committee.
new text end

Sec. 14.

new text begin [21.851] ADVISORY COMMITTEE; MEMBERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner must consult with the Seed Program Advisory
Committee to advise the commissioner concerning responsibilities under the seed regulatory
program. The committee must evaluate species for invasiveness, difficulty of control, cost
of control, benefits, and amount of injury caused by each species. For each species evaluated,
the committee must recommend to the commissioner whether a species should be listed as
a prohibited noxious weed seed or restricted noxious weed seed or not be listed. Species
designated as prohibited or restricted noxious weed seeds must be reevaluated every three
years for a recommendation on whether or not the designated species need to remain on the
noxious weed seed lists. The committee must also advise the commissioner on the
implementation of the Minnesota Seed Law. Members of the committee are not entitled to
reimbursement of expenses nor payment of per diem. Members serve two-year terms with
subsequent reappointment by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commissioner must appoint members to include
representatives from:
new text end

new text begin (1) the College of Food, Agricultural and Natural Resource Sciences or Extension at the
University of Minnesota;
new text end

new text begin (2) Minnesota Crop Improvement;
new text end

new text begin (3) the seed industry in Minnesota, a minimum of six members with representation from
multinational, national, regional, and Minnesota seed companies;
new text end

new text begin (4) the grain industry in Minnesota;
new text end

new text begin (5) farmers in Minnesota;
new text end

new text begin (6) other state and federal agencies with an interest in seed; and
new text end

new text begin (7) other members as needed.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin The committee must select a chair from its membership. Meetings
of the committee may be called by or at the direction of the commissioner or the chair.
new text end

Sec. 15.

Minnesota Statutes 2018, section 21.86, subdivision 2, is amended to read:


Subd. 2.

Miscellaneous violations.

No person may:

(a) detach, alter, deface, or destroy any label required in sections 21.82 and 21.83, alter
or substitute seed in a manner that may defeat the purposes of sections 21.82 and 21.83, or
alter or falsify any seed tests, laboratory reports, records, or other documents to create a
misleading impression as to kind, variety, history, quality, or origin of the seed;

(b) hinder or obstruct in any way any authorized person in the performance of duties
under sections 21.80 to 21.92;

(c) fail to comply with a "stop sale" order or to move or otherwise handle or dispose of
any lot of seed held under a stop sale order or attached tags, except with express permission
of the enforcing officer for the purpose specified;

(d) use the word "type" in any labeling in connection with the name of any agricultural
seed variety;

(e) use the word "trace" as a substitute for any statement which is required; deleted text beginor
deleted text end

(f) plant any agricultural seed which the person knows contains weed seeds or noxious
weed seeds in excess of the limits for that seeddeleted text begin.deleted text endnew text begin; or
new text end

new text begin (g) advertise or sell seed containing patented, protected, or proprietary varieties used
without permission of the patent or certificate holder of the intellectual property associated
with the variety of seed.
new text end

Sec. 16.

Minnesota Statutes 2018, section 21.89, subdivision 2, is amended to read:


Subd. 2.

Permits; issuance and revocation.

The commissioner shall issue a permit to
the deleted text begininitialdeleted text end labeler of agricultural, vegetable, flower, and wildflower seeds which are sold
for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92.
new text begin Permit fees are determined based on the first sale in the state. Any sale after the first sale
does not increase the permit fee.
new text endThe categories of permits are as follows:

(1) for deleted text begininitialdeleted text end labelers who sell 50,000 pounds or less of agriculturalnew text begin, native grasses, or
wildflower
new text end seed each calendar year, an annual permit issued for a fee established in section
21.891, subdivision 2, paragraph (b);

(2) for deleted text begininitialdeleted text end labelers who sell vegetable, flower, and wildflower seed packed for use
in home gardens or household plantings, deleted text beginand initial labelers who sell native grasses and
wildflower seed in commercial or agricultural quantities,
deleted text end an annual permit issued for a fee
established in section 21.891, subdivision 2, paragraph (c), based upon the gross sales from
the previous year; and

(3) for deleted text begininitialdeleted text end labelers who sell more than 50,000 pounds of agriculturalnew text begin, native grasses,
or wildflower
new text end seed each calendar year, a permanent permit issued for a fee established in
section 21.891, subdivision 2, paragraph (d).

In addition, the person shall furnish to the commissioner an itemized statement of all
seeds sold in Minnesota for the periods established by the commissioner. This statement
shall be delivered, along with the payment of the fee, based upon the amount and type of
seed sold, to the commissioner no later than 30 days after the end of each reporting period.
Any person holding a permit shall show as part of the analysis labels or invoices on all
agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the
commissioner requires. The commissioner may revoke any permit in the event of failure to
comply with applicable laws and rules.

Sec. 17.

Minnesota Statutes 2018, section 21.89, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

deleted text beginAn initialdeleted text endnew text begin Anew text end labeler who sells for use in Minnesota agricultural,
vegetable, or flower seeds must have a seed fee permit unless the agricultural, vegetable,
or flower seeds are of the breeder or foundation seed classes of varieties developed by
publicly financed research agencies intended for the purpose of increasing the quantity of
seed available.

Sec. 18.

Minnesota Statutes 2018, section 21.891, subdivision 2, is amended to read:


Subd. 2.

Seed fee permits.

(a) deleted text beginAn initialdeleted text endnew text begin Anew text end labeler who wishes to sell seed in Minnesota
must comply with section 21.89, subdivisions 1 and 2, and the procedures in this subdivision.
Each deleted text begininitialdeleted text end labeler who wishes to sell seed in Minnesota must apply to the commissioner
to obtain a permit. The application must contain the name and address of the applicant, the
application date, and the name and title of the applicant's contact person.new text begin Permit fees are
based on the initial sale of seed in Minnesota.
new text end

(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
(1), must be accompanied by an application fee of $75.

(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
(2), must be accompanied by an application fee based on the level of annual gross sales as
follows:

(1) for gross sales of $0 to $25,000, the annual permit fee is $75;

(2) for gross sales of $25,001 to $50,000, the annual permit fee is $150;

(3) for gross sales of $50,001 to $100,000, the annual permit fee is $300;

(4) for gross sales of $100,001 to $250,000, the annual permit fee is $750;

(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,500;

(6) for gross sales of $500,001 to $1,000,000, the annual permit fee is $3,000; and

(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.

(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
(3), must be accompanied by an application fee of $75. deleted text beginInitialdeleted text end Labelers holding seed fee
permits covered under this paragraph need not apply for a new permit or pay the application
fee. Under this permit category, the fees for the following kinds of agricultural seed sold
either in bulk or containers are:

(1) oats, wheat, and barley, 9 cents per hundredweight;

(2) rye, field beans, buckwheat, and flax, 12 cents per hundredweight;

(3) field corn, 17 cents per 80,000 seed unit;

(4) forage,new text begin hemp,new text end lawn and turf grasses, and legumes, 69 cents per hundredweight;

(5) sunflower, $1.96 per hundredweight;

(6) sugar beet, 12 cents per 100,000 seed unit;

(7) soybeans, 7.5 cents per 140,000 seed unit; deleted text beginand
deleted text end

(8) for any agricultural seed not listed in clauses (1) to (7), the fee for the crop most
closely resembling it in normal planting rate appliesdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (9) for native grasses and wildflower seed, $1 per hundredweight.
new text end

(e) If, for reasons beyond the control and knowledge of the deleted text begininitialdeleted text end labeler, seed is shipped
into Minnesota by a person other than the deleted text begininitialdeleted text end labeler, the responsibility for the seed fees
are transferred to the shipper. An application for a transfer of this responsibility must be
made to the commissioner. Upon approval by the commissioner of the transfer, the shipper
is responsible for payment of the seed permit fees.

(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or as
a line item cost on each invoice for seed sold. To identify the fee on an invoice, the words
"Minnesota seed permit fees" must be used.

(g) All seed fee permit holders must file semiannual reports with the commissioner,
even if no seed was sold during the reporting period. Each semiannual report must be
submitted within 30 days of the end of each reporting period. The reporting periods are
October 1 to March 31 and April 1 to September 30 of each year or July 1 to December 31
and January 1 to June 30 of each year. Permit holders may change their reporting periods
with the approval of the commissioner.

(h) The holder of a seed fee permit must pay fees on all seed for which the permit holder
is the deleted text begininitialdeleted text end labeler and which are covered by sections 21.80 to 21.92 and sold during the
reporting period.

(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed fee
within 30 days after the end of each reporting period, the commissioner shall assess a penalty
of $100 or eight percent, calculated on an annual basis, of the fee due, whichever is greater,
but no more than $500 for each late semiannual report. A $15 penalty must be charged when
the semiannual report is late, even if no fee is due for the reporting period. Seed fee permits
may be revoked for failure to comply with the applicable provisions of this paragraph or
the Minnesota seed law.

Sec. 19. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 21.81, subdivision 12, new text end new text begin is repealed.
new text end

ARTICLE 3

NOXIOUS WEEDS

Section 1.

Minnesota Statutes 2018, section 18.77, subdivision 8a, is amended to read:


Subd. 8a.

Noxious weed management plan.

"Noxious weed management plan" means
controlling or eradicating noxious weeds in the manner designated in a management plan
developed for the deleted text beginarea or sitedeleted text endnew text begin locationnew text end where the infestations are found using specific
strategies or methods that are to be used singly or in combination to achieve control or
eradication.

Sec. 2.

Minnesota Statutes 2018, section 18.77, subdivision 13, is amended to read:


Subd. 13.

deleted text beginWeed management areadeleted text endnew text begin Noxious weed management sitenew text end.

deleted text begin"Weed
management area"
deleted text endnew text begin "Noxious weed management site"new text end means a designated area where special
or unique noxious weed control or eradication strategies or methods are used according to
a specific management plan developed for each management area established.

Sec. 3.

Minnesota Statutes 2018, section 18.77, is amended by adding a subdivision to
read:


new text begin Subd. 14. new text end

new text begin Cooperative weed management areas or CWMAs. new text end

new text begin "Cooperative weed
management areas" or "CWMAs" means partnership organizations formed with the goal
of managing invasive plants across jurisdictional and land ownership boundaries through
collective planning and sharing of knowledge and resources.
new text end

Sec. 4.

Minnesota Statutes 2018, section 18.77, is amended by adding a subdivision to
read:


new text begin Subd. 15. new text end

new text begin Biological control of plants. new text end

new text begin "Biological control of plants" means the reduction
of noxious weed or invasive plant populations through the use of natural enemies such as
parasitoids, predators, pathogens, antagonists, or competitors to suppress noxious weed or
invasive plant populations.
new text end

Sec. 5.

Minnesota Statutes 2018, section 18.77, is amended by adding a subdivision to
read:


new text begin Subd. 16. new text end

new text begin Appropriate disposal site. new text end

new text begin "Appropriate disposal site" means a facility that
lawfully destroys noxious weeds and noxious weed propagating parts.
new text end

Sec. 6.

Minnesota Statutes 2018, section 18.77, is amended by adding a subdivision to
read:


new text begin Subd. 17. new text end

new text begin Invasive plant. new text end

new text begin "Invasive plant" means a nonnative species whose introduction
and establishment causes, or may cause, economic or environmental harm or harm to human
health.
new text end

Sec. 7.

Minnesota Statutes 2018, section 18.771, is amended to read:


18.771 NOXIOUS WEED CATEGORIES.

(a) For purposes of designation under section 18.79, subdivision 13, noxious weed
category means each of the following categoriesdeleted text begin.deleted text endnew text begin:
new text end

new text begin (1) the prohibited-eradicate noxious weeds category;
new text end

new text begin (2) the prohibited-control noxious weeds category;
new text end

new text begin (3) the restricted noxious weeds category;
new text end

new text begin (4) the specially regulated plants category; and
new text end

new text begin (5) the county noxious weeds category.
new text end

(b) deleted text begin"Prohibiteddeleted text endnew text begin The "prohibited-eradicatenew text end noxious weeds"new text begin categorynew text end includes noxious
weeds that must be deleted text begincontrolled ordeleted text end eradicated on all lands within the state. Transportation of
deleted text begin a prohibited noxious weed's propagating parts is restricted by permitdeleted text endnew text begin the propagating parts
of prohibited-eradicate noxious weeds is prohibited
new text end except as allowed deleted text beginbydeleted text endnew text begin undernew text end section
18.82. deleted text beginProhibiteddeleted text endnew text begin Prohibited-eradicatenew text end noxious weeds may not be sold or propagated in
Minnesota. deleted text beginThere are two regulatory listings for prohibited noxious weeds in Minnesota:deleted text endnew text begin
Noxious weeds that are designated as prohibited-eradicate noxious weeds and placed on
the prohibited-eradicate noxious weeds list are plants that are not currently known to be
present in Minnesota or are not widely established in the state. All prohibited-eradicate
noxious weeds must be eradicated.
new text end

deleted text begin (1) the noxious weed eradicate list is established. Prohibited noxious weeds placed on
the noxious weed eradicate list are plants that are not currently known to be present in
Minnesota or are not widely established. These species must be eradicated; and
deleted text end

deleted text begin (2) the noxious weed control list is established. Prohibited noxious weeds placed on the
noxious weed control list are plants that are already established throughout Minnesota or
regions of the state. Species on this list must at least be controlled.
deleted text end

new text begin (c) The "prohibited-control noxious weeds" category includes noxious weeds that must
be controlled on all lands within the state. Transportation of the propagating parts of
prohibited-control noxious weeds is prohibited except as allowed under section 18.82.
Prohibited-control noxious weeds may not be propagated or sold in Minnesota. Noxious
weeds that are designated as prohibited-control noxious weeds and placed on the
prohibited-control noxious weeds list are plants that are already established throughout the
state or regions of the state. At minimum, these species must be controlled in a way that
prevents spread of these species by seed or vegetative means.
new text end

deleted text begin (c)deleted text endnew text begin (d) Thenew text end "restricted noxious weeds"new text begin categorynew text end includes noxious weedsnew text begin and their
propagating parts
new text end thatnew text begin may not be imported, sold, or transported in the state, except as
allowed by permit under section 18.82. Noxious weeds that are designated as restricted and
placed on the restricted list may be plants that
new text end are widely distributed in Minnesotadeleted text begin, but for
which the only feasible means of control is to prevent their spread by prohibiting the
importation, sale, and transportation of their propagating parts in the state, except as allowed
by section 18.82
deleted text endnew text begin and for which a requirement of eradication or control would not be feasible
on a statewide basis using existing practices
new text end.

deleted text begin (d)deleted text endnew text begin (e) Thenew text end "specially regulated plants"new text begin categorynew text end includes noxious weeds that may be
native species ornew text begin nonnative species thatnew text end have demonstrated economic value, but also have
the potential to cause harm in noncontrolled environments. Plants designated as specially
regulated have been determined to pose ecological, economical, or human or animal health
concerns. Species-specific management plans or rules that define the use and management
requirements for these plants must be developed by the commissioner of agriculture for
each plant designated as specially regulated. The commissioner must also take measures to
minimize the potential for harm caused by these plants.

deleted text begin (e)deleted text endnew text begin (f) Thenew text end "county noxious weeds"new text begin categorynew text end includes noxious weeds that are designated
by individual county boards to be enforced as prohibited noxious weeds within the county's
jurisdiction and must be approved by the commissioner of agriculture, in consultation with
the Noxious Weed Advisory Committee. Each county board must submit newly proposed
county noxious weeds to the commissioner of agriculture for review. Approved county
noxious weeds shall also be posted with the county's general weed notice prior to May 15
each year. Counties are solely responsible for developing county noxious weed lists and
their enforcement.

Sec. 8.

Minnesota Statutes 2018, section 18.78, subdivision 1, is amended to read:


Subdivision 1.

Generally.

A person owning land, a person occupying land, or a person
responsible for the maintenance of public land deleted text beginshall control or eradicatedeleted text endnew text begin must managenew text end all
noxious weedsnew text begin, according to the noxious weed categories under section 18.771,new text end on the land
at a time and in a manner ordered by an inspector or county-designated employee.

Sec. 9.

Minnesota Statutes 2018, section 18.78, subdivision 3, is amended to read:


Subd. 3.

deleted text beginWeed control agreementdeleted text endnew text begin Noxious weed management plannew text end.

The
commissioner, municipality, or county agricultural inspector or county-designated employee
may enter into deleted text begina weed controldeleted text endnew text begin annew text end agreement with a landowner ornew text begin noxiousnew text end weed management
deleted text begin areadeleted text endnew text begin sitenew text end group to establish a mutually agreed-upon noxious weed management plan for up
to three years duration, whereby a noxious weed problem will be controlled without additional
enforcement action. If a property owner fails to comply with the noxious weed management
plan, an individual notice may be served.

Sec. 10.

Minnesota Statutes 2018, section 18.79, subdivision 6, is amended to read:


Subd. 6.

Training for control or eradication of noxious weeds.

The commissioner
shall conduct initial training considered necessary for inspectors and county-designated
employees in the enforcement of the Minnesota Noxious Weed Law. The deleted text begindirectordeleted text endnew text begin deannew text end of
University of Minnesota Extension may conduct educational programs for the general public
that will aid compliance with the Minnesota Noxious Weed Law. Upon request, the
commissioner may provide information and other technical assistance to the county
agricultural inspector or county-designated employee to aid in the performance of
responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

Sec. 11.

Minnesota Statutes 2018, section 18.79, subdivision 10, is amended to read:


Subd. 10.

Prosecution.

On finding that a person has violated sections 18.76 to 18.91,
the deleted text begincounty agriculturaldeleted text end inspector or county-designated employee may start court proceedings
in the locality in which the violation occurred. The county attorney may prosecute actions
under sections 18.76 to 18.91 within the county attorney's jurisdiction.

Sec. 12.

Minnesota Statutes 2018, section 18.79, subdivision 15, is amended to read:


Subd. 15.

Noxious weed management.

The commissioner, in consultation with the
Noxious Weed Advisory Committee, shall develop management strategies and criteria for
each noxious weed categorynew text begin listed in section 18.771 and each individually listed speciesnew text end.

Sec. 13.

Minnesota Statutes 2018, section 18.79, subdivision 18, is amended to read:


Subd. 18.

Noxious weed education and notification.

(a) The commissioner shall
disseminate information and conduct educational campaigns with respect to control of
noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
to eliminate or manage these plants. The commissioner shall call and attend meetings and
conferences dealing with the subject of noxious weeds. The commissioner shall maintain
on the department's website noxious weed management information including but not limited
to the roles and responsibilities of citizens and government entities under sections 18.76 to
18.91 and specific guidance as to whom a person should contact to report a noxious weed
issue.

(b) The commissioner shall post notice on the department's website deleted text beginand alertdeleted text endnew text begin when a
weed on the eradicate list is confirmed for the first time in a county. The commissioner may
notify
new text end appropriate media outlets when a weed on the eradicate list is confirmed for the first
time in a county.

Sec. 14.

Minnesota Statutes 2018, section 18.79, subdivision 21, is amended to read:


Subd. 21.

new text begin Noxious new text endweed management deleted text beginareadeleted text endnew text begin sitenew text end.

The commissioner, in consultation
with the Noxious Weed Advisory Committee, may establish anew text begin noxiousnew text end weed management
deleted text begin areadeleted text endnew text begin sitenew text end to include a part of one or more counties or all of one or more counties of this state
and shall include all the land within the boundaries of the area established.new text begin Noxiousnew text end weed
management plans developed for anew text begin noxiousnew text end weed management deleted text beginareadeleted text endnew text begin sitenew text end must be reviewed
and approved by the commissioner deleted text beginanddeleted text endnew text begin in consultation withnew text end the Noxious Weed Advisory
Committee.new text begin Noxiousnew text end weed management deleted text beginareasdeleted text endnew text begin sitesnew text end may seek funding under section 18.90.

Sec. 15.

Minnesota Statutes 2018, section 18.82, is amended to read:


18.82 TRANSPORTATION OF NOXIOUS WEED PROPAGATING PARTS deleted text beginIN
INFESTED MATERIAL OR EQUIPMENT
deleted text end.

Subdivision 1.

Permits.

new text begin Transporting noxious weed propagating parts without a permit
is prohibited,
new text endexcept as provided in section 21.74deleted text begin,deleted text endnew text begin.new text end If a person wants to transportnew text begin noxious
weed propagating parts
new text end along a public deleted text beginhighwaydeleted text endnew text begin roadway, includingnew text end materials or equipment
containing the propagating parts ofnew text begin noxiousnew text end weeds deleted text begindesignated as noxious by the
commissioner
deleted text end, the person must secure a written permit for transportation deleted text beginof the material or
equipment
deleted text end from an inspector or county-designated employee. Inspectors or county-designated
employees may issue permits to persons residing or operating within their jurisdiction. A
permit is not required for the transport of noxious weeds for the purpose of destroying
propagating parts at deleted text begina Department of Agriculture-approveddeleted text endnew text begin an appropriatenew text end disposal site.
Anyone transporting noxious weed propagating parts for the purpose of disposal at an
deleted text begin approveddeleted text endnew text begin appropriate disposalnew text end site shall ensure that all materials are contained in a manner
that prevents escape during transportnew text begin and complies with section 115A.931. A person must
obtain a permit before possessing noxious weeds with propagating parts for research,
education and outreach, or other reasons approved by the commissioner
new text end.

Subd. 2.

Conditions of permit issuance.

The following conditions must be met before
a permit under subdivision 1 may be issued:

(1) any material or equipment containing noxious weed propagating parts that is about
to be transported along a public deleted text beginhighwaydeleted text endnew text begin roadwaynew text end must be in a container that is sufficiently
tight and closed or otherwise covered to prevent the blowing or scattering of the material
along the highway or on other lands or water; deleted text beginand
deleted text end

(2) the destination for unloading and the use of the material or equipment containing
noxious weed propagating parts must be stated on the permit along with the method that
will be used to destroy the viability of the propagating parts and thereby prevent deleted text begintheirdeleted text endnew text begin the
material
new text end being dumped or scattered upon land or waterdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (3) the applicant for a permit for possession of noxious weed propagating parts must
agree to follow the guidelines listed on the permit by the inspector.
new text end

Subd. 3.

Duration of permit; revocation.

A permit under subdivision 1 is valid for up
to one year after the date it is issued unless otherwise specified by the inspector or
county-designated employee issuing the permit. The permit may be revoked if an inspector
or county-designated employee determines that the applicant has not complied with this
section.

Sec. 16.

Minnesota Statutes 2018, section 18.90, is amended to read:


18.90 GRANT PROGRAM.

(a) From funds available in the noxious weed and invasive plant species assistance
account established in section 18.89, the commissioner shall administer a grant program to
assist counties and municipalities and other weed management entities in the cost of
implementing and maintaining noxious weed control programs and in addressing special
weed control problems. The commissioner shall receive applications by counties,
municipalities,new text begin noxiousnew text end weed management deleted text beginareasdeleted text endnew text begin sitesnew text end, and weed management entities for
assistance under this section and, in consultation with the Noxious Weed Advisory
Committee, award grants for any of the following eligible purposes:

(1) to conduct applied research to solve locally significant weed management problems;

(2) to demonstrate innovative control methods or land management practices which have
the potential to reduce landowner costs to control noxious weeds or improve the effectiveness
of noxious weed control;

(3) to encourage the ongoing support ofnew text begin noxiousnew text end weed management deleted text beginareasdeleted text endnew text begin sitesnew text end;

(4) to respond to introductions or infestations of invasive plants that threaten or potentially
threaten the productivity of cropland and rangeland over a wide area;

(5) to respond to introductions or infestations of invasive plant species that threaten or
potentially threaten the productivity of biodiversity of wildlife and fishery habitats on public
and private lands;

(6) to respond to special weed control problems involving weeds not included in the list
of noxious weeds published and distributed by the commissioner;

(7) to conduct monitoring or surveillance activities to detect, map, or determine the
distribution of invasive plant species and to determine susceptible locations for the
introduction or spread of invasive plant species; and

(8) to conduct educational activities.

(b) The commissioner shall select and prioritize applications for assistance under this
section based on the following considerations:

(1) the seriousness of the noxious weed or invasive plant problem or potential problem
addressed by the project;

(2) the ability of the project to provide timely intervention to save current and future
costs of control and eradication;

(3) the likelihood that the project will prevent or resolve the problem or increase
knowledge about resolving similar problems in the future;

(4) the extent to which the project will leverage federal funds and other nonstate funds;

(5) the extent to which the applicant has made progress in addressing noxious weed or
invasive plant problems;

(6) the extent to which the project will provide a comprehensive approach to the control
or eradication of noxious weeds;

(7) the extent to which the project will reduce the total population or area of infestation
of a noxious weed;

(8) the extent to which the project uses the principles of integrated vegetation management
and sound science; and

(9) other factors that the commissioner determines to be relevant.

(c) Nothing in this section may be construed to relieve a person of the duty or
responsibility to control the spread of noxious weeds on lands owned and controlled by the
person.

Sec. 17.

Minnesota Statutes 2018, section 18.91, subdivision 2, is amended to read:


Subd. 2.

Membership.

The commissioner shall appoint members, which shall include
representatives from the following:

(1)new text begin the Department ofnew text end Horticultural Sciencedeleted text begin, agronomy, and forestrydeleted text end at the University
of Minnesota;

new text begin (2) the Department of Agronomy at the University of Minnesota;
new text end

new text begin (3) the Department of Forest Resources at the University of Minnesota;
new text end

deleted text begin (2)deleted text endnew text begin (4)new text end the nursery and landscape industry in Minnesota;

deleted text begin (3)deleted text endnew text begin (5)new text end the seed industry in Minnesota;

deleted text begin (4)deleted text endnew text begin (6)new text end the Department of Agriculture;

deleted text begin (5)deleted text endnew text begin (7)new text end the Department of Natural Resources;

deleted text begin (6)deleted text endnew text begin (8)new text end a conservation organization;

deleted text begin (7)deleted text endnew text begin (9)new text end an environmental organization;

deleted text begin (8)deleted text endnew text begin (10)new text end at least two farm organizations;

deleted text begin (9)deleted text endnew text begin (11)new text end the county agricultural inspectors;

deleted text begin (10)deleted text endnew text begin (12)new text end citydeleted text begin, township, and countydeleted text end governments;

new text begin (13) township governments;
new text end

new text begin (14) county governments;
new text end

deleted text begin (11)deleted text endnew text begin (15)new text end the Department of Transportation;

deleted text begin (12)deleted text endnew text begin (16)new text end the University of Minnesota Extension;

deleted text begin (13)deleted text endnew text begin (17)new text end the timber and forestry industry in Minnesota;

deleted text begin (14)deleted text endnew text begin (18)new text end the Board of Water and Soil Resources;

deleted text begin (15)deleted text endnew text begin (19)new text end soil and water conservation districts;

deleted text begin (16)deleted text endnew text begin (20) thenew text end Minnesota Association of County Land Commissioners; and

deleted text begin (17)deleted text endnew text begin (21) othernew text end members as needed.

ARTICLE 4

MISCELLANEOUS PROVISIONS

Section 1.

Minnesota Statutes 2018, section 13.6435, subdivision 4a, is amended to read:


Subd. 4a.

Industrial hemp deleted text beginbackground checkdeleted text endnew text begin licensingnew text end data.

deleted text beginCriminal history recordsdeleted text endnew text begin
Certain data
new text end provided to the commissioner by a deleted text beginfirst-timedeleted text endnew text begin licensee ornew text end applicant for a license
to grownew text begin or processnew text end industrial hemp deleted text beginfor commercial purposes aredeleted text endnew text begin isnew text end classified under section
18K.04deleted text begin, subdivision 2deleted text end.

Sec. 2.

new text begin [17.055] EMERGING FARMERS.
new text end

new text begin Subdivision 1. new text end

new text begin Emerging farmer working group. new text end

new text begin To advise the commissioner and
legislature regarding the development and implementation of programs and initiatives that
support emerging farmers in this state, the commissioner must periodically convene a
working group consisting, to the extent possible, of persons who are, and organizations that
represent, farmers or aspiring farmers who are women, veterans, persons with disabilities,
American Indian or Alaskan Natives, members of a community of color, young, and urban,
and any other emerging farmers as determined by the commissioner. No later than January
15 each year, the commissioner must update the chairs and ranking minority members of
the legislative committees and divisions with jurisdiction over agriculture regarding the
working group's activities and recommendations.
new text end

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin This section expires August 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2018, section 17.117, subdivision 4, is amended to read:


Subd. 4.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the program.

(c) "Agriculture supply business" means a person, partnership, joint venture, corporation,
limited liability company, association, firm, public service company, or cooperative that
provides materials, equipment, or services to farmers or agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this program
that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711, subdivision
3
, and 103H.151, subdivision 2. Best management practices also means other practices,
techniques, and measures that have been demonstrated to the satisfaction of the
commissioner: (1) to prevent or reduce adverse environmental impacts by using the most
effective and practicable means of achieving environmental goals; or (2) to achieve drinking
water quality standards under chapter 103H or under Code of Federal Regulations, title 40,
parts 141 and 143, as amended.

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee
of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at a
future datedeleted text begin:
deleted text end

deleted text begin (1)deleted text end that has been approved deleted text beginand certifieddeleted text end by the local government unitdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) for which a local lender has obligated itself to offer a loan.
deleted text end

(j) "Comprehensive water management plan" means a state-approved and locally adopted
plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or
103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or materials
already provided as a result of implementing an approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly participates
in physical labor or operations management of farming and files a Schedule F as part of
filing United States Internal Revenue Service Form 1040 or indicates farming as the primary
business activity under Schedule C, K, or S, or any other applicable report to the United
States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district, or an
organization formed for the joint exercise of powers under section 471.59 with the authority
to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n)deleted text begin,deleted text endnew text begin; a local
unit of government with taxing or special assessment authority, such as a watershed district,
a drainage authority, or a township;
new text end a state or federally chartered bankdeleted text begin,deleted text endnew text begin;new text end a savings associationdeleted text begin,deleted text endnew text begin;new text end
a state or federal credit uniondeleted text begin,deleted text endnew text begin;new text end Agribank and its affiliated organizationsdeleted text begin,deleted text endnew text begin;new text end or a nonprofit
economic development organization or other financial lending institution approved by the
commissioner.

(p) "Local revolving loan account" means the account held by a local government unit
and a local lender into which principal repayments from borrowers are deposited and new
loans are issued in accordance with the requirements of the program and lender agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program in this
section.

(s) "Project" means one or more components or activities located within Minnesota that
are required by the local government unit to be implemented for satisfactory completion of
an eligible best management practice.

(t) "Rural landowner" means the owner of record of Minnesota real estate located in an
area determined by the local government unit to be rural after consideration of local land
use patterns, zoning regulations, jurisdictional boundaries, local community definitions,
historical uses, and other pertinent local factors.

(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d),
except as expressly limited in this section.

Sec. 4.

Minnesota Statutes 2018, section 17.117, subdivision 5, is amended to read:


Subd. 5.

Uses of funds.

new text begin (a) new text endUse of funds under this section must be in compliance with
the rules and regulations of the funding source or appropriation. Use of funds from the
Public Facilities Authority must comply with the federal Water Pollution Control Act,
section 446A.07, and eligible activities listed in the intended use plan authorized in section
446A.07, subdivision 4.

new text begin (b) In the event of a conflict between this section and a law appropriating money for
this program, the law appropriating money for this program governs.
new text end

Sec. 5.

Minnesota Statutes 2018, section 17.117, subdivision 16, is amended to read:


Subd. 16.

Liens against property.

(a) The amount of loans and accruing interest made
by deleted text begincountiesdeleted text endnew text begin a county, home rule charter city, statutory city, or townnew text end acting asnew text begin anew text end local deleted text beginlendersdeleted text endnew text begin
lender
new text end under this section is a lien against the real property for which the improvement was
made and must be assessed against the property or properties benefited unless the amount
is prepaid.new text begin The lien is a special assessment under chapter 429 and repayments may be
collected as a special assessment as provided for in section 429.101 or by charter.
new text end An amount
loaned under the program and its accruing interest assessed against the property is a priority
lien only against subsequent liens.

(b) The countynew text begin, home rule charter city, statutory city, or townnew text end may bill amounts due on
the loan on the tax statement for the property. Enforcement of the lien created by this
subdivision must, at the county'snew text begin, home rule charter city's, statutory city's, or town'snew text end option,
be in the manner set forth in chapter 580 or 581. When the amount due and all interest has
been paid, the countynew text begin, home rule charter city, statutory city, or townnew text end shall file a satisfaction
of the lien created under this subdivision.

(c) A countynew text begin, home rule charter city, statutory city, or townnew text end may also secure amounts
due on a loan under this section by taking a purchase money security interest in equipment
in accordance with chapter 336, article 9, and may enforce the purchase money security
interest in accordance with chapters 336, article 9, and 565.

Sec. 6.

Minnesota Statutes 2018, section 18G.09, is amended to read:


18G.09 SHIPMENT OF PLANT PESTS AND BIOLOGICAL CONTROL AGENTS.

deleted text begin Shipment, introduction into, or release in Minnesota of (1) a plant pest, noxious weed,
or other organism that may directly or indirectly affect Minnesota's plant life as a harmful
or dangerous pest, parasite, or predator of other organisms, or (2) an arthropod, is prohibited,
except under permit issued by the commissioner.
deleted text end

deleted text begin Nodeleted text endnew text begin (a) Anew text end person may new text beginnot new text endsell, offer for sale, move, convey, transport, deliver, ship, or
offer for shipment any plant pest,new text begin noxious weed,new text end or biological control agent without a permit
from the United States Department of Agriculture, Animal and Plant Health Inspection
Service or its state equivalent. A permit may be issued only after the commissioner
determines that the proposed shipment or use will not create a hazard to the agricultural,
forest, or horticultural interests of this state or the state's general environmental quality. For
interstate movement, the permit must be affixed conspicuously to the exterior of each
shipping container, box, package, or appliance; accompany each shipping container, box,
package, or appliance; or comply with other directions of the commissioner. deleted text beginThis section
does not apply to intrastate shipments of federal or state-approved biological control agents
used in this state for control of plant pests.
deleted text end Shipping containers must be escape-proof and
the commissioner shall specify labeling and shipping protocols.

new text begin (b) This section does not apply to:
new text end

new text begin (1) intrastate shipments of federal- or state-approved biological control agents used in
this state for control of plant pests; and
new text end

new text begin (2) interstate shipments of organisms that the United States Department of Agriculture
has specifically identified as not needing a permit for movement.
new text end

Sec. 7.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual who submits an application for
a license as required under this chapter. If the applicant is an entity, applicant means the
owner or most responsible individual in charge of the entity.
new text end

Sec. 8.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Authorized representative. new text end

new text begin "Authorized representative" means any individual
authorized by the licensee to make changes to the license and share data on behalf of the
licensee.
new text end

Sec. 9.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Entity. new text end

new text begin "Entity" means a corporation, joint stock company, association, limited
partnership, limited liability partnership, limited liability company, irrevocable trust, estate,
charitable organization, or other similar organization, including any such organization
participating in hemp production as a partner in a general partnership, a participant in a joint
venture, or a participant in a similar organization.
new text end

Sec. 10.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Processing. new text end

new text begin "Processing" means rendering by refinement hemp plants or hemp
plant parts from their natural or original state after harvest. Processing includes but is not
limited to decortication, devitalization, chopping, crushing, extraction, and packaging.
Processing does not include typical farm operations such as sorting, grading, baling, and
harvesting.
new text end

Sec. 11.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Processing location. new text end

new text begin "Processing location" means any area, building, plant, or
facility registered with and approved by the commissioner in which a licensee converts raw
hemp into a marketable product.
new text end

Sec. 12.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:


new text begin Subd. 7. new text end

new text begin Processor. new text end

new text begin "Processor" means a person or business that converts raw hemp
into a product.
new text end

Sec. 13.

Minnesota Statutes 2018, section 18K.04, subdivision 1, is amended to read:


Subdivision 1.

Requirement; issuance; presumption.

(a) A person must obtain a license
from the commissioner beforenew text begin (1)new text end growing industrial hemp for commercialnew text begin or researchnew text end
purposesnew text begin, and (2) before processing industrial hemp for commercial purposesnew text end.

new text begin (b) To obtain a license under paragraph (a),new text end a person must apply to the commissioner
in the form prescribed by the commissioner and must pay the annual registration and
inspection fee established by the commissioner in accordance with section 16A.1285,
subdivision 2
.

new text begin (c) For a license to grow industrial hemp for commercial or research purposes,new text end the license
application must include the name and address of the applicant and the legal description of
the land area or areas where industrial hemp will be grown by the applicantnew text begin and any other
information required under Code of Federal Regulations, title 7, part 990
new text end.

new text begin (d) For a license to process industrial hemp for commercial purposes, the license
application must include the name and address of the applicant, the legal description of the
processing location, and any other information required by the commissioner.
new text end

new text begin (e) A licensee is responsible for compliance with the license requirements irrespective
of the acts or omissions of an authorized representative acting on behalf of the licensee.
new text end

deleted text begin (b)deleted text endnew text begin (f)new text end When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid until
December 31 of the year of application.

deleted text begin (c)deleted text endnew text begin (g)new text end A person licensed under deleted text beginthis sectiondeleted text endnew text begin paragraph (a) to grow industrial hempnew text end is
presumed to be growing industrial hemp for commercialnew text begin or researchnew text end purposes.

Sec. 14.

Minnesota Statutes 2018, section 18K.04, subdivision 3, is amended to read:


Subd. 3.

Federal requirements.

The applicant must demonstrate to the satisfaction of
the commissioner that the applicant has complied with all applicable federal requirements
pertaining to the new text beginprocessing, new text endproduction, distribution, and sale of industrial hemp.

Sec. 15.

Minnesota Statutes 2018, section 18K.04, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Industrial hemp licensing data classification. new text end

new text begin (a) In addition to data classified
pursuant to section 13.41, the following data collected, created, or maintained by the
commissioner under this chapter is classified as private data, as defined in section 13.02,
subdivision 12, or nonpublic data, as defined in section 13.02, subdivision 9:
new text end

new text begin (1) nondesignated addresses provided by licensees and applicants; and
new text end

new text begin (2) data that identify the specific locations where licensees and applicants grow or
process, or will grow or process, industrial hemp, including but not limited to legal
descriptions, street addresses, geospatial locations, maps, and property boundaries and
dimensions.
new text end

new text begin (b) The commissioner may disclose data classified as private data or nonpublic data
under this subdivision if the commissioner determines that there is a substantive threat to
human health or safety or to the environment, or to aid in the law enforcement process.
new text end

Sec. 16.

Minnesota Statutes 2018, section 18K.04, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Industrial hemp licensing data security and auditing. new text end

new text begin (a) The commissioner
must establish written procedures to ensure that only individuals authorized by law may
access the private data and nonpublic data identified in subdivision 4. An authorized
individual's ability to enter, update, or access data must correspond to the official duties or
training level of the individual and to the statutory authorization granting access for that
purpose. All queries and responses, including the specific purpose for which data is requested
and, if applicable, disclosed, and all actions in which data are entered, updated, accessed,
shared, or disseminated, must be recorded in the data audit trail. Data contained in the audit
trail are public to the extent the data are not otherwise classified by law.
new text end

new text begin (b) The commissioner must immediately and permanently revoke the authorization of
any individual who willfully entered, updated, accessed, shared, or disseminated data in
violation of state or federal law. If an individual willfully gained access to data without
authorization by law, the commissioner must forward the matter to the appropriate
prosecuting authority for prosecution.
new text end

new text begin (c) By January 15 of each odd-numbered year, the commissioner must provide a copy
of the data audit trail required under paragraph (a) to the commissioner of administration;
the chairs and ranking members of the legislative committees and divisions with jurisdiction
over agriculture policy and finance, public safety, and data practices; and the Legislative
Commission on Data Practices and Personal Data Privacy or its successor commission.
new text end

Sec. 17.

Minnesota Statutes 2018, section 18K.06, is amended to read:


18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, new text beginprocessing,
new text end and licensing of industrial hemp.new text begin Notwithstanding section 14.125, the commissioner's
authority to adopt these rules expires June 30, 2022.
new text end

(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

Sec. 18.

Minnesota Statutes 2018, section 25.40, subdivision 1, is amended to read:


Subdivision 1.

Adoption.

new text begin(a) new text endThe commissioner may adopt rules for commercial feeds,
pet foods, and specialty pet foods as are authorized in sections 25.31 to 25.43 and other
reasonable rules as may be necessary for the efficient enforcement of sections 25.31 to
25.43. In the interest of uniformity the commissioner shall by rule adopt, unless the
commissioner determines that they are inconsistent with the provisions of sections 25.31
to 25.43 or are not appropriate to conditions which exist in this state, the official definitions
of feed ingredients and official feed terms adopted by the Association of American Feed
Control Officials and published in the official publication of that organization.

new text begin (b) The Model Pet and Specialty Pet Food Regulation, as adopted by the Association of
American Feed Control Officials, is adopted as the pet food and specialty pet food rules in
this state.
new text end

Sec. 19.

Minnesota Statutes 2018, section 25.40, subdivision 2, is amended to read:


Subd. 2.

Notice; public comment.

Before the issuance, amendment, or repeal of any
rule authorized by sections 25.31 to 25.43, the commissioner shall publish the proposed
rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated to
give interested parties, including all current license holders, adequate notice and shall afford
all interested persons an opportunity to present their views orally or in writing, within a
reasonable period of time. After consideration of all views presented by interested persons,
the commissioner shall take appropriate action to issue the proposed rule or to amend or
repeal an existing rule. The provisions of this subdivision notwithstanding, if the
commissioner, pursuant to the authority of sections 25.31 to 25.43, adopts thenew text begin Model Pet
and Specialty Pet Food Regulation,
new text end official definitions of feed ingredientsnew text begin,new text end and official feed
terms as adopted by the Association of American Feed Control Officials, any amendment
or modification adopted by the association is adopted automatically under sections 25.31
to 25.43 without regard to the publication of the notice required by this subdivision unless
the commissioner, by order specifically determines that the amendment or modification
shall not be adopted.

Sec. 20.

Minnesota Statutes 2018, section 28A.03, subdivision 8, is amended to read:


Subd. 8.

Custom processor.

"Custom processor" means a person who deleted text beginslaughters animals
or processes noninspected meat for the owner of the animals, and returns the meat products
derived from the slaughter or processing to the owner. "Custom processor" does not include
a person who slaughters animals or poultry or processes meat for the owner of the animals
or poultry on the farm or premises of the owner of the animals, meat, or poultry. For the
purpose of this clause, "animals" or "meat" do not include poultry or game animals or meat
derived therefrom
deleted text endnew text begin conducts activities as defined in section 31A.02, subdivision 5new text end.

Sec. 21.

Minnesota Statutes 2018, section 29.23, subdivision 3, is amended to read:


Subd. 3.

Egg temperature.

Eggs must be held at a temperature not to exceed 45 degrees
Fahrenheit (7 degrees Celsius) after being received by the egg handler except for cleaning,
sanitizing, grading, and further processing when they must immediately be placed under
refrigeration that is maintained at 45 degrees Fahrenheit (7 degrees Celsius) or below. Eggs
offered for sale by a retail food handler must be held at a temperature not to exceed deleted text begin41deleted text endnew text begin 45new text end
degrees Fahrenheit (7 degrees Celsius). deleted text beginEquipment in use prior to August 1, 1991, is not
subject to this requirement.
deleted text end Shell eggs that have been frozen must not be offered for sale
except as approved by the commissioner.

Sec. 22.

Minnesota Statutes 2018, section 31A.02, subdivision 10, is amended to read:


Subd. 10.

Meat food product; poultry food product.

"Meat food product" or "poultry
food product" means a product usable as human food and made wholly or in part from meat
or poultry or a portion of the carcass of cattle, sheep, swine, poultry,new text begin wild game or fowl,new text end
farmed Cervidae, as defined in section 35.153, subdivision 3, llamas, as defined in section
17.455, subdivision 2, Ratitae, as defined in section 17.453, subdivision 3, or goats. "Meat
food product" or "poultry food product" does not include products which contain meat,
poultry, or other portions of the carcasses of cattle, sheep, swine,new text begin wild game or fowl,new text end farmed
Cervidae, llamas, Ratitae, or goats only in a relatively small proportion or that historically
have not been considered by consumers as products of the meat food industry, and which
are exempted from definition as a meat food product or poultry food product by the
commissioner under the conditions the commissioner prescribes to assure that the meat or
other portions of carcasses contained in the products are not adulterated and that the products
are not represented as meat food products or poultry food products.

"Meat food product," as applied to products of equines, has a meaning comparable to
that for cattle, sheep, swine,new text begin wild game or fowl,new text end farmed Cervidae, llamas, Ratitae, and goats.

Sec. 23.

Minnesota Statutes 2018, section 31A.10, is amended to read:


31A.10 PROHIBITIONS.

No person may, with respect to an animal, carcass, part of a carcass, poultry, poultry
food product, meat, or meat food product:

(1) slaughter an animal or prepare an article that is usable as human food, at any
establishment preparing articles solely for intrastate commerce, except in compliance with
this chapter;

(2) sell, transport, offer for sale or transportation, or receive for transportation, in intrastate
commerce (i) articles which are usable as human food and are adulterated or misbranded
at the time of sale, transportation, offer for sale or transportation, or receipt for transportation;
or (ii) articles required to be inspected under sections 31A.01 to 31A.16 that have not been
inspected and passed;

(3) do something to an article that is usable as human food while the article is being
transported in intrastate commerce or held for sale after transportation, which is intended
to cause or has the effect of causing the article to be adulterated or misbranded; or

(4) sell, offer for sale, or possess with intent to sell meat derived from custom processingnew text begin,
except wild game and fowl products may be donated under sections 17.035; 97A.505,
subdivision 5; 97A.510; and 97B.303
new text end.

Sec. 24.

Minnesota Statutes 2018, section 31A.15, subdivision 1, is amended to read:


Subdivision 1.

Inspection.

The provisions of sections 31A.01 to 31A.16 requiring
inspection of the slaughter of animals and the preparation of the carcasses, parts of carcasses,
meat, poultry, poultry food products, and meat food products at establishments conducting
slaughter and preparation do not apply:

(1) to the processing by a person of the person's own animals and the owner's preparation
and transportation in intrastate commerce of the carcasses, parts of carcasses, meat, poultry,
poultry food products, and meat food products of those animals exclusively for use by the
owner and members of the owner's household, nonpaying guests, and employees; or

(2) to the custom processing by a person of deleted text begincattle, sheep, swine, poultry, or goatsdeleted text endnew text begin animals,
wild game, or fowl
new text end delivered by the owner for processing, and the preparation or
transportation in intrastate commerce of the carcasses, parts of carcasses, meat, poultry,
poultry food products, and meat food products of animals, exclusively for use in the
household of the owner by the owner and members of the owner's household, nonpaying
guests, and employees. Meat from custom processing deleted text beginof cattle, sheep, swine, poultry, or
goats
deleted text end must be identified and handled as required by the commissioner, during all phases of
processing, chilling, cooling, freezing, preparation, storage, and transportation. The custom
processor may not engage in the business of buying or selling carcasses, parts of carcasses,
meat, poultry, poultry food products, or meat food products of animals usable as human
food unless the carcasses, parts of carcasses, meat, poultry, poultry food products, or meat
food products have been inspected and passed and are identified as inspected and passed
by the Minnesota Department of Agriculture or the United States Department of Agriculture.

Sec. 25.

Minnesota Statutes 2018, section 41B.056, subdivision 4, is amended to read:


Subd. 4.

Loans.

(a) The authority may disburse loans through an intermediary to farmers
who are eligible under subdivision 3. The total accumulative loan principal must not exceed
deleted text begin $10,000deleted text endnew text begin $20,000new text end per loan.

(b) Refinancing an existing debt is not an eligible purpose.

(c) The loan may be disbursed over a period not to exceed six years.

(d) A borrower may receive loans, depending on the availability of funds, up to 70
percent of the estimated value of the crop or livestock.

(e) Security for the loan must be a personal note executed by the borrower and any other
security required by the intermediary or the authority.

(f) The authority may prescribe forms and establish an application process for applicants
to apply for a loan.

(g) The interest payable on loans for the pilot agricultural microloan program must be
at a rate determined by the authority.

(h) Loans under this program will be made using money in the revolving loan account
established under section 41B.06.

(i) Repayments of financial assistance under this section, including principal and interest,
must be deposited into the revolving loan account established under section 41B.06.

Sec. 26.

Minnesota Statutes 2018, section 41D.01, is amended to read:


41D.01 MINNESOTA deleted text beginAGRICULTUREdeleted text endnew text begin AGRICULTURALnew text end EDUCATION
LEADERSHIP COUNCIL.

Subdivision 1.

Establishment; membership.

(a) The Minnesota deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end
Education Leadership Council is established. The council is composed of deleted text begin17deleted text endnew text begin 16new text end members
as follows:

(1) deleted text beginthe chair of the University of Minnesota agricultural education programdeleted text endnew text begin a
representative of an agricultural education program at a higher education institution that
prepares agriculture teachers for licensure
new text end;

(2) a representative of the commissioner of education;

(3) a representative of the Minnesota State Colleges and Universities recommended by
the chancellor;

(4) the president and the president-elect of the Minnesota Association of deleted text beginAgriculturedeleted text endnew text begin
Agricultural
new text end Educators;

(5) a representative of the deleted text beginFuture Farmers of Americadeleted text endnew text begin Minnesota FFAnew text end Foundation;

(6) a representative of the commissioner of agriculture;

(7) the dean of the College of deleted text beginAgriculture,deleted text end Food, new text beginAgricultural new text endand deleted text beginEnvironmentaldeleted text endnew text begin Natural
Resource
new text end Sciences at the University of Minnesota;

deleted text begin (8) a representative of the Minnesota Private Colleges Council;
deleted text end

deleted text begin (9)deleted text endnew text begin (8)new text end two members representing deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education and agriculture
business appointed by the governor;

deleted text begin (10)deleted text endnew text begin (9)new text end the chair new text beginand ranking minority member new text endof deleted text beginthedeleted text endnew text begin anew text end senate deleted text beginCommittee on Agriculture,
General Legislation and Veterans Affairs
deleted text endnew text begin committee with jurisdiction over agriculturenew text end;

deleted text begin (11)deleted text endnew text begin (10)new text end the chair new text beginand ranking minority member new text endof deleted text beginthedeleted text endnew text begin anew text end house of representatives
deleted text begin Committee on Agriculturedeleted text endnew text begin committee with jurisdiction over agriculturenew text end;

deleted text begin (12) the ranking minority member of the senate Committee on Agriculture, General
Legislation and Veterans Affairs, and
deleted text end new text begin(11) new text enda member of deleted text beginthedeleted text endnew text begin anew text end senate deleted text beginEducation Committeedeleted text endnew text begin
committee with jurisdiction over education
new text end designated by the Subcommittee on Committees
of the Committee on Rules and Administration; and

deleted text begin (13) the ranking minority member of the house of representatives Agriculture Committee,
and
deleted text end new text begin(12) new text enda member of deleted text beginthedeleted text endnew text begin anew text end house of representatives deleted text beginEducation Committeedeleted text end new text begincommittee with
jurisdiction over education
new text enddesignated by the speaker.

(b) An ex officio member of the council under paragraph (a), clause deleted text begin(1),deleted text end (4), (7), deleted text begin(10)deleted text endnew text begin
(9)
new text end, deleted text begin(11)deleted text endnew text begin (10)new text end, deleted text begin(12)deleted text endnew text begin (11)new text end, or deleted text begin(13)deleted text endnew text begin (12)new text end, may designate a permanent or temporary replacement
member representing the same constituency.

Subd. 2.

Powers and duties.

Specific powers and duties of the council are to:

(1) develop recommendations to the legislature and the governor and provide review
for deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education programs in Minnesota;

(2) establish a grant program to foster and encourage the development of secondary and
postsecondary deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education programs;

(3) coordinate and articulate Minnesota's deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education policy across
all programs and institutions;

(4) identify the critical needs for deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end educators;

(5) serve as a link between the agribusiness sector and the deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end
education system to communicate mutual concerns, needs, and projections;

(6) establish and maintain an increased awareness of deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education
and its continued need to all citizens of Minnesota;

(7) operate the Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education created in
section 41D.03;

(8) gain broad public support for deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education in Minnesota; and

(9) report annually on its activities to the deleted text beginsenate Agriculture and Rural Development
Committee and the house of representatives Agriculture Committee
deleted text endnew text begin legislative committees
with jurisdiction over agriculture policy
new text end.

Subd. 3.

Council officers; terms and compensation of appointees; staff.

(a) The deleted text beginchairdeleted text endnew text begin
chairs
new text end of the deleted text beginsenate Agriculture, General Legislation and Veterans Affairs Committee and
the chair of the house of representatives Agriculture Committee
deleted text endnew text begin legislative committees with
jurisdiction over agriculture policy
new text end, or their designees, are the cochairs of the council.

(b) The council's membership terms, compensation, filling of vacancies, and removal
of members are as provided in section 15.0575.

(c) The council may employ an executive director and any other staff to carry out its
functions.

Sec. 27.

Minnesota Statutes 2018, section 41D.02, is amended to read:


41D.02 deleted text beginAGRICULTUREdeleted text endnew text begin AGRICULTURALnew text end EDUCATION GRANT PROGRAM.

Subdivision 1.

Establishment.

The Minnesota deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education
Leadership Council shall establish a program to provide grants under subdivisions 2 and 3
to educational institutions and other appropriate entities for secondary and postsecondary
deleted text begin agriculturedeleted text endnew text begin agriculturalnew text end education programs.

Subd. 2.

Elementary and secondary agricultural education.

The council may provide
grants for:

(1) planning and establishment costs for elementary and secondary deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end
education programs;

(2) new instructional and communication technologies; and

(3) curriculum updates.

Subd. 3.

Postsecondary education.

The council may provide grants for:

(1) new instructional and communication technologies; and

(2) special project funding, including programming, in-service training, and support
staff.

Sec. 28.

Minnesota Statutes 2018, section 41D.03, is amended to read:


41D.03 MINNESOTA CENTER FOR deleted text beginAGRICULTUREdeleted text endnew text begin AGRICULTURALnew text end
EDUCATION.

Subdivision 1.

Governance.

The Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education
is governed by the Minnesota deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education Leadership Council.

Subd. 2.

Powers and duties of council.

(a) The council has the powers necessary for
the care, management, and control of the Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end
Education and all its real and personal property. The powers shall include, but are not limited
to, those listed in this subdivision.

(b) The council may employ necessary employees, and contract for other services to
ensure the efficient operation of the Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education.

(c) The council may receive and award grants. The council may establish a charitable
foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for educational
purposes and hold, manage, invest, and dispose of them and the proceeds and income of
them according to the terms and conditions of the gift, grant, bequest, or devise and its
acceptance. The council shall adopt internal procedures to administer and monitor aids and
grants.

(d) The council may establish or coordinate evening, continuing education, and summer
programs for teachers and pupils.

(e) The council may determine the location for the Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin
Agricultural
new text end Education and any additional facilities related to the center, including the
authority to lease a temporary facility.

(f) The council may enter into contracts with other public and private agencies and
institutions for building maintenance services if it determines that these services could be
provided more efficiently and less expensively by a contractor than by the council itself.
The council may also enter into contracts with public or private agencies and institutions,
school districts or combinations of school districts, or educational cooperative service units
to provide supplemental educational instruction and services.

Subd. 3.

Center account.

There is established in the state treasury a center for deleted text beginagriculturedeleted text endnew text begin
agricultural
new text end education account in the special revenue fund. All money collected by the
council, including rental income, shall be deposited in the account. Money in the account,
including interest earned, is appropriated to the council for the operation of its services and
programs.

Subd. 4.

Employees.

The employees hired under this subdivision and any other necessary
employees hired by the council shall be employees of the University of Minnesota.

Subd. 5.

Policies.

The council may adopt administrative policies about the operation of
the center.

Subd. 6.

Public postsecondary institutions; providing space.

Public postsecondary
institutions shall provide space for the Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end
Education at a reasonable cost to the center to the extent that space is available at the public
postsecondary institutions.

Subd. 7.

Purchasing instructional items.

Technical educational equipment may be
procured for programs of the Minnesota Center for deleted text beginAgriculturedeleted text endnew text begin Agriculturalnew text end Education by
the council either by brand designation or in accordance with standards and specifications
the council may adopt, notwithstanding chapter 16C.

Sec. 29.

Minnesota Statutes 2018, section 41D.04, is amended to read:


41D.04 RESOURCE, MAGNET, AND OUTREACH PROGRAMS.

Subdivision 1.

Resource and outreach.

The center shall offer resource and outreach
programs and services statewide aimed at the enhancement of deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end
education opportunities for pupils in elementary and secondary school.

Subd. 2.

Center responsibilities.

The center shall:

(1) provide information and technical services to agriculture teachers, professional
agriculture organizations, school districts, and the Department of Education;

(2) gather and conduct research in deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education;

(3) design and promote deleted text beginagriculturedeleted text endnew text begin agriculturalnew text end education opportunities for all Minnesota
pupils in elementary and secondary schools; and

(4) serve as liaison for the Department of Education to national organizations for
deleted text begin agriculturedeleted text endnew text begin agriculturalnew text end education.

Sec. 30.

Minnesota Statutes 2019 Supplement, section 223.16, subdivision 4, is amended
to read:


Subd. 4.

Grain.

"Grain" means deleted text beginany cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture,
dry edible beans, or other agricultural crops designated by the commissioner by rule
deleted text endnew text begin all
products commonly referred to as grain, including wheat, corn, oats, barley, rye, rice,
soybeans, emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed,
rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, and other products
ordinarily stored in grain warehouses
new text end.

Sec. 31.

Minnesota Statutes 2019 Supplement, section 223.177, subdivision 2, is amended
to read:


Subd. 2.

Oral contracts.

Any grain buyer entering into a voluntary extension of credit
contract orally or by phone shall give or mail to the seller a written confirmation conforming
to the requirements of section 223.175 within deleted text begintendeleted text endnew text begin 30new text end days of entering the voluntary extension
of credit contract. Written confirmation of oral contracts must meet the requirements of
subdivision 3.

Sec. 32.

Minnesota Statutes 2019 Supplement, section 223.177, subdivision 3, is amended
to read:


Subd. 3.

Contracts reduced to writing.

A voluntary extension of credit contract must
be reduced to writing by the grain buyer, mailed or given to the seller, and signed by both
buyer and seller within deleted text begintendeleted text endnew text begin 30new text end days of the date of delivery of the grain. The form of the
contract shall comply with the requirements of section 223.175. A grain buyer may use an
electronic version of a voluntary extension of credit contract that contains the same
information as a written document and that conforms to the requirements of this chapter to
which a seller has applied an electronic signature in place of a written document. There
must not at any time be an electronic and paper voluntary extension of credit contract
representing the same lot of grain.

Sec. 33.

new text begin [343.215] VETERINARIAN IMMUNITY.
new text end

new text begin A licensed veterinarian acting in good faith and in the normal course of business is
immune from civil and criminal liability in any action arising in connection with the report
of a suspected incident of animal cruelty.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020, and applies to actions
committed on or after that date.
new text end

Sec. 34.

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


Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

23,653,000
23,654,000

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza.

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.

(b) $14,353,000 the first year and $14,354,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, improvement, or expansion of
livestock operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$400,000 each year to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
school and child care settings including, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $300,000
each year for urban youth agricultural
education or urban agriculture community
development; providing funding not to exceed
$300,000 each year for the good food access
program under Minnesota Statutes, section
17.1017; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices/good handling
practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;

(2) $2,500,000 the first year and $2,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program. The base amount for
the allocation under this clause is $3,000,000
in fiscal year 2022 and later;

(3) up to $5,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants to Minnesota dairy farmers
who enroll for five years of coverage under
the federal dairy margin coverage program
and produced no more than 16,000,000 pounds
of milk in 2018. The commissioner must
award DAIRI grants based on participating
producers' amount of 2018 milk, up to
5,000,000 pounds per participating producer,
at a rate determined by the commissioner
within the limits of available funding;

(4) up to $5,000,000 the second year is for new text beginannew text end
innovative soybean processing and researchnew text begin
facility at the Ag Innovation Campus
new text end;

(5) $75,000 the first year is for a grant to
Greater Mankato Growth, Inc. for assistance
to agricultural-related businesses to promote
jobs, innovation, and synergy development;
and

(6) $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research.

The amounts in clauses (3) to (6) are onetime.

Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year and
appropriations encumbered under contract on
or before June 30, 2021, for agricultural
growth, research, and innovation grants are
available until June 30, 2024.

The base amount for the agricultural growth,
research, and innovation program is
$14,693,000 in fiscal year 2022 and
$14,693,000 in fiscal year 2023, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.

The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify at least ten
parcels of publicly owned land that are suitable
for urban agriculture.

Sec. 35. new text beginFARM SAFETY RECOMMENDATIONS.
new text end

new text begin The commissioner of agriculture, in consultation with the Farm Safety Advisory
Committee, must develop recommendations regarding how best to provide financial and
technical workplace safety assistance to Minnesota farmers. No later than January 15, 2021,
the commissioner of agriculture must report to the legislative committees and divisions with
jurisdiction over agriculture.
new text end

Sec. 36. new text beginBIOFUELS REPORT.
new text end

new text begin The commissioner of agriculture must prepare a report outlining Minnesota's ability to
meet the petroleum replacement goal in Minnesota Statutes, section 239.7911, and utilize
biofuels to achieve the greenhouse gas reductions under Minnesota Statutes, chapter 216H.
No later than January 15, 2021, the commissioner of agriculture must submit the report to
the chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over agriculture policy and finance. The report must:
new text end

new text begin (1) recommend specific policies that would utilize biofuels to accelerate achievement
of the petroleum replacement goal and the greenhouse gas reduction goals;
new text end

new text begin (2) identify the biofuels infrastructure required to achieve the petroleum replacement
goal; and
new text end

new text begin (3) recommend cost-effective incentives necessary to expedite the use of greater biofuel
blends in this state, including but not limited to incentives for retailers to install equipment
necessary to dispense renewable liquid fuels to the public.
new text end

APPENDIX

Repealed Minnesota Statutes: H4285-2

13.6435 AGRICULTURAL DATA CODED ELSEWHERE.

Subd. 5.

Wholesale produce dealers.

Financial data submitted by a license applicant are classified under section 27.04, subdivision 2.

21.81 DEFINITIONS.

Subd. 12.

Initial labeler.

"Initial labeler" means a person who is the first to label for sale within this state an agricultural, vegetable, flower, tree, or shrub seed.

27.03 DEALER REGULATION.

Subdivision 1.

License.

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

27.04 APPLICATION FOR LICENSE.

Subdivision 1.

Issuance.

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

Subd. 2.

Application contents.

(a) The application must be in writing, accompanied by the prescribed fee, and state:

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

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

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

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

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

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

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

Subd. 3.

Filing.

Applications shall be filed annually.

27.041 BONDS; LICENSES.

Subdivision 1.

Bonds.

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

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

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

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

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

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

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

(1) transacted within this state; or

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

Subd. 1a.

Additional bonds.

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

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

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

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

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

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

Subd. 2.

Licenses.

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

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

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

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

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

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

Subd. 3.

Account; appropriation.

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