SF 1674

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/11/2018 03:48pm

A bill for an act
relating to agriculture; making policy and technical changes to various
agricultural-related provisions; reorganizing dairy law; making conforming changes;
amending Minnesota Statutes 2016, sections 13.6435, subdivision 8; 15.985;
17.119, subdivision 1; 17.53, subdivisions 2, 8, 13; 17.983, subdivision 1; 17.984,
subdivision 1; 18B.01, by adding subdivisions; 18B.03, by adding a subdivision;
18B.26, subdivision 1; 18B.28, subdivisions 1, 3; 18B.305, subdivision 1; 18B.37,
subdivision 3; 18C.70, subdivision 5; 18C.71, subdivision 4; 18H.06, subdivision
2; 18H.07, subdivisions 2, 3; 21.111, subdivisions 2, 3; 21.113; 21.117; 25.32;
25.33, subdivisions 5, 10, 21; 25.341, subdivisions 1, 2; 25.35; 25.371, subdivision
2; 25.38; 25.39, subdivisions 1, 1a, 2, 3; 25.40, subdivision 2; 25.41, subdivisions
1, 2, 3, 5, 7a; 25.42; 25.43; 27.04; 27.041, subdivision 1; 28A.21, subdivision 6;
31A.02, subdivision 4; 32C.02, subdivision 2; 32C.06; 34A.01, subdivision 1;
41B.03, subdivisions 2, 3; 41B.043, subdivision 5; 41B.045, subdivision 2; 41C.02,
subdivision 12; 116V.01, subdivisions 1, 2, 3, 4, 7, 10, 11, 13, 14; 223.17,
subdivision 8; 232.22, subdivision 7; proposing coding for new law as Minnesota
Statutes, chapter 32D; repealing Minnesota Statutes 2016, sections 18B.01,
subdivisions 10a, 10b, 22a; 18B.285; 25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 14, 15; 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, 12; 32.021; 32.071;
32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105;
32.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, 3;
32.392; 32.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11,
12; 32.395; 32.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, 5; 32.415;
32.416; 32.475; 32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55,
subdivisions 1, 2, 3, 4, 5, 12, 13, 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64;
32.645; 32.70; 32.71; 32.72; 32.74; 32.745; 32.75; 32.90; 41D.01, subdivision 4.

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

ARTICLE 1

AGRICULTURAL POLICY

Section 1.

Minnesota Statutes 2016, section 15.985, is amended to read:

15.985 ADVISORY INSPECTIONS.

(a) Upon the voluntary request of a person to a state agency for an advisory inspection
for the purpose of complying with state law, the agency must, except as provided in
paragraphs (f) and (g), conduct an advisory inspection. An agency is not required to conduct
an advisory inspection if the agency has a regularly scheduled inspection that would occur
within 90 days after the request for the advisory inspection, or if before an advisory inspection
is requested, the agency has notified the person that it will be conducting an inspection
within 45 days. If an advisory inspection results in findings that potentially could make a
person subject to a fine or other penalty imposed by the agency, the agency must notify the
person in writing of those findings within ten days of the inspection.

(1) Except as provided in clause (2), if within 60 days of receiving notice, the person
notifies the agency that it has corrected the situation that made the person potentially subject
to the fine or penalty, and the agency later determines that the situation is corrected, the
agency may not impose a fine or penalty as a result of the findings in the advisory inspection.

(2) For violations of chapter 177, if the person notifies the agency within the time period
for remedying violations required under the applicable section of chapter 177 that it has
corrected the situation that made the person potentially subject to the fine or penalty, and
the agency later determines that the situation is corrected, the agency may not impose a fine
or penalty as a result of the finding in the advisory inspection.

(3) A person may not request more than one advisory inspection from the same agency
in a calendar year. A person may not request an advisory inspection after an inspection
resulting in a fine or other penalty has been determined and the violator notified of the
amount to be paid, until fines or penalties have been paid or settled.

(b) For purposes of this section:

(1) "inspection" includes an examination of real or personal property or an audit or other
examination of financial or other documents;

(2) "penalty" includes a civil or administrative fine or other financial sanction;

(3) "person" includes a real person and businesses, including corporations, partnerships,
limited liability companies, and unincorporated associations; and

(4) "state agency" means a department, agency, board, commission, constitutional office,
or other group in the executive branch of state government.

(c) If an agency revises, amends, extends, or adds additional violations to a notice, the
person has 60 days from the date of those changes to correct the situation without fine or
penalty. For violations of chapter 177, the person has the time period for remedying violations
under the applicable section of chapter 177 to correct the situation without fine or penalty.

(d) An agency conducting an inspection under this section may impose and collect from
the person requesting the inspection a fee equal to the costs incurred by the agency related
to the inspection. Fees under this section shall be considered charges for goods and services
provided for the direct and primary use of a private individual, business, or other entity
under section 16A.1283, paragraph (b), clause (3). Fee revenue collected under this section
must be deposited in an appropriate fund other than the general fund and is appropriated
from that fund to the agency collecting the fee for the purpose of conducting inspections
under this section.

(e) Nothing in this section shall prohibit or interfere with an agency offering similar
programs that allow independent audits or inspections, including the environmental
improvement program under chapter 114C. If a person conducts a self-audit under chapter
114C, the terms and conditions of this section do not apply. For advisory inspections
conducted by the Pollution Control Agency, terms and conditions of sections 114C.20 to
114C.28 shall be used instead of those in paragraphs (a) to (c) and (g).

(f) If agency staff resources are limited, an agency must give higher priority to the
agency's regular inspections over advisory inspections under this section. Insofar as
conducting advisory inspections reduces an agency's costs, the savings must be reflected
in the charges for advisory inspections. Before hiring additional staff complement for
purposes of this section, an agency must report to the chairs and ranking minority members
of the legislative budget committees with jurisdiction over the agency documenting: (1) the
demand for advisory inspections and why additional staff complement is needed to meet
the demand; and (2) that the revenue generated by advisory inspections will cover the
expenses of the additional staff complement. If a person requests an advisory inspection,
but the agency does not have staff resources necessary to conduct the advisory inspection
before a regular inspection is conducted, and the regular inspection results in findings that
could make a person subject to a fine or penalty, the agency must take into account the
person's request for an advisory inspection and the person's desire to take corrective action
before taking any enforcement action against the person.

(g) This section does not apply to:

(1) criminal penalties;

(2) situations in which implementation of this section is prohibited by federal law or
would result in loss of federal funding or in other federal sanctions or in which
implementation would interfere with multistate agreements, international agreements, or
agreements between state and federal regulatory agencies;

(3) conduct constituting fraud;

(4) violations in a manner that endangers human life or presents significant risk of major
injury or severe emotional harm to humans;

(5) violations that are part of a pattern that has occurred repeatedly and shows willful
intent;

(6) violations for which it may be demonstrated that the alternative inspections process
is being used to avoid enforcement;

(7) violations that occur within three years of violating an applicable law;

(8) the Department of Revenue;

(9) the Workers' Compensation Division at the Department of Labor and Industry;

(10) violations of vehicle size weight limits under sections 169.80 to 169.88;

(11) commercial motor vehicle inspections under section 169.781 and motor carrier
regulations under chapter 221;

deleted text begin (12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
division provides free inspections similar to those under this section;
deleted text end

deleted text begin (13) deleted text end new text begin (12) new text end state inspections or surveys of hospitals, nursing homes, outpatient surgical
centers, supervised living facilities, board and lodging with special services, home care,
housing with services and assisted living settings, hospice, and supplemental nursing services
agencies;

deleted text begin (14) deleted text end new text begin (13) new text end examinations of health maintenance organizations or county-based purchasing
entities regulated under chapter 62D;

deleted text begin (15) deleted text end new text begin (14) new text end special transportation services under section 174.30; and

deleted text begin (16) deleted text end new text begin (15) new text end entities regulated by the Department of Commerce's Financial Institutions and
Insurance Divisions for purposes of regulatory requirements of those divisions.

If an agency determines that this section does not apply due to situations specified in clause
(2), the agency must report the basis for that determination to the chairs and ranking minority
members of the legislative committees with jurisdiction over the agency.

(h) An agency may terminate an advisory inspection and proceed as if an inspection
were a regular inspection if, in the process of conducting an advisory inspection, the agency
finds a situation that the agency determines: could lead to criminal penalties; endangers
human life or presents significant risk of major injury or severe emotional harm to humans;
presents a severe and imminent threat to animals, food, feed, crops, commodities, or the
environment; or evidences a pattern of willful violations.

Sec. 2.

Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:

Subdivision 1.

Grants; eligibility.

(a) The commissioner must award deleted text begin cost-share deleted text end grants
to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible
tractors with eligible rollover protective structures.

new text begin (b) new text end Grants new text begin for farmers new text end are limited to 70 percent of the farmer's deleted text begin or school's deleted text end documented
cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
must increase deleted text begin the deleted text end new text begin a farmer's new text end grant award amount over the 70 percent grant limitation
requirement if necessary to limit a farmer's deleted text begin or school's deleted text end cost per tractor to no more than $500.

new text begin (c) Schools are eligible for grants that cover the full amount of a school's documented
cost to purchase, ship, and install an eligible rollover protective structure.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end A rollover protective structure is eligible if it deleted text begin meets or exceeds SAE International
deleted text end deleted text begin standard J2194 deleted text end new text begin is certified to appropriate national or international rollover protection structure
standards with a seat belt new text end .

deleted text begin (c) deleted text end new text begin (e) new text end A tractor is eligible if the tractor was built before 1987.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 17.53, subdivision 2, is amended to read:

Subd. 2.

Agricultural commodity.

(a) Except as provided in paragraph (b), "agricultural
commodity" means any agricultural product, including, without limitation, animals and
animal products, grown, raised, produced, or fed within Minnesota for use as food, feed,
seed, or any industrial or chemurgic purpose.

(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "agricultural commodity" means
wheat, barley, and cultivated wild rice including, without limitation, wheat, barley, and
cultivated wild rice grown or produced within or outside Minnesota, for use as food, feed,
seed, or any industrial or chemurgic purpose.

Sec. 4.

Minnesota Statutes 2016, section 17.53, subdivision 8, is amended to read:

Subd. 8.

First purchaser.

(a) Except as provided in paragraph (b), "first purchaser"
means any person that buys agricultural commodities for movement into commercial channels
from the producer; or any lienholder, secured party or pledgee, public or private, or assignee
of said lienholder, secured party or pledgee, who gains title to the agricultural commodity
from the producer as the result of exercising any legal rights by the lienholder, secured
party, pledgee, or assignee thereof, regardless of when the lien, security interest or pledge
was created and regardless of whether the first purchaser is domiciled within the state or
without. "First purchaser" does not mean the Commodity Credit Corporation when a
commodity is used as collateral for a federal nonrecourse loan unless the commissioner
determines otherwise.

(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "first purchaser" means a person
who buys, receives delivery of, or provides storage for the agricultural commodity from a
producer for movement into commercial channels; or a lienholder, secured party, or pledgee,
who gains title to the agricultural commodity from the producers as the result of exercising
any legal rights by the lienholder, secured party, pledgee, or assignee, regardless of when
the lien, security interest, or pledge was created and regardless of whether or not the first
purchaser is domiciled in the state. "First purchaser" does not mean the Commodity Credit
Corporation when the wheat, barley, or cultivated wild rice is used as collateral for a federal
nonrecourse loan unless the commissioner determines otherwise.

Sec. 5.

Minnesota Statutes 2016, section 17.53, subdivision 13, is amended to read:

Subd. 13.

Producer.

(a) Except as provided in paragraph (b), "producer" means any
person who owns or operates an agricultural producing or growing facility for an agricultural
commodity and shares in the profits and risk of loss from such operation, and who grows,
raises, feeds or produces the agricultural commodity in Minnesota during the current or
preceding marketing year.

(b) For wheat, barley, new text begin corn, new text end and cultivated wild rice, "producer" means in addition to
the meaning in paragraph (a) and for the purpose of the payment or the refund of the checkoff
fee paid pursuant to sections 17.51 to 17.69 only, a person who delivers into, stores within,
or makes the first sale of the agricultural commodity in Minnesota.

Sec. 6.

Minnesota Statutes 2016, section 17.983, subdivision 1, is amended to read:

Subdivision 1.

Administrative penalties; citation.

If a person has violated a provision
of chapter 25, 31B, or deleted text begin 32 deleted text end new text begin 32D new text end , the commissioner may issue a written citation to the person
by personal service or by certified mail. The citation must describe the nature of the violation
and the statute or rule alleged to have been violated; state the time for correction, if
applicable; and the amount of any proposed fine. The citation must advise the person to
notify the commissioner in writing within 30 days if the person wishes to appeal the citation.
If the person fails to appeal the citation, the citation is the final order and not subject to
further review.

Sec. 7.

Minnesota Statutes 2016, section 17.984, subdivision 1, is amended to read:

Subdivision 1.

Authority.

To carry out the commissioner's enforcement duties under
chapter deleted text begin 32 deleted text end new text begin 32D new text end , the commissioner may, upon presenting appropriate credentials, during
regular working hours and at other reasonable times, inspect premises subject to the
commissioner's enforcement and licensing authority for reasons related to the commissioner's
enforcement and licensing authority; request information from persons with information
relevant to an inspection; and inspect relevant papers and records, including business records.
The commissioner may issue notices in lieu of citations for minor violations if a notice is
in the public interest.

Sec. 8.

Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 9b. new text end

new text begin Experimental use permit. new text end

new text begin "Experimental use permit" means a permit issued
by the United States Environmental Protection Agency as authorized in Section 5 of the
Federal Insecticide, Fungicide, and Rodenticide Act.
new text end

Sec. 9.

Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 9c. new text end

new text begin Experimental use pesticide product. new text end

new text begin "Experimental use pesticide product"
means any federally registered or unregistered pesticide whose use is authorized by an
experimental use permit issued by the United States Environmental Protection Agency.
new text end

Sec. 10.

Minnesota Statutes 2016, section 18B.03, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Label compliance. new text end

new text begin Unless explicitly required by the FIFRA, the commissioner
must not require an applicator to demonstrate label compliance or need prior to applying a
pesticide.
new text end

Sec. 11.

Minnesota Statutes 2016, section 18B.26, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except as provided in paragraphs (b) to deleted text begin (d) deleted text end new text begin (e) new text end , a person
may not use or distribute a pesticide in this state unless it is registered with the commissioner.
Pesticide registrations expire on December 31 of each year and may be renewed on or before
that date for the following calendar year.

(b) Registration is not required if a pesticide is shipped from one plant or warehouse to
another plant or warehouse operated by the same person and used solely at the plant or
warehouse as an ingredient in the formulation of a pesticide that is registered under this
chapter.

(c) An unregistered pesticide that was previously registered with the commissioner may
be used for a period of two years following the cancellation of the registration of the pesticide,
unless the commissioner determines that the continued use of the pesticide would cause
unreasonable adverse effects on the environment, or with the written permission of the
commissioner. To use the unregistered pesticide at any time after the two-year period, the
pesticide end user must demonstrate to the satisfaction of the commissioner, if requested,
that the pesticide has been continuously registered under a different brand name or by a
different manufacturer and has similar composition, or, the pesticide end user obtains the
written permission of the commissioner.

(d) The commissioner may allow specific pesticide products that are not registered with
the commissioner to be distributed in this state for use in another state.

new text begin (e) A substance or mixture of substances being tested only to determine its potential
efficacy as a pesticide, or to determine its toxicity or other properties, and not requiring the
issuance of an experimental use permit under United States Environmental Protection
Agency criteria specified in federal regulations, is not required to be registered.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end Each pesticide with a unique United States Environmental Protection Agency
pesticide registration number or a unique brand name must be registered with the
commissioner.

deleted text begin (f) deleted text end new text begin (g) new text end It is unlawful for a person to distribute or use a pesticide in the state, or to sell
into the state for use in the state, any pesticide product that has not been registered by the
commissioner and for which the applicable pesticide registration application fee, gross sales
fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and 4.

deleted text begin (g) deleted text end new text begin (h) new text end Every person who sells for use in the state a pesticide product that has been
registered by the commissioner shall pay to the commissioner the applicable registration
application fees, sales fees, and waste pesticide program surcharges. These sales expressly
include all sales made electronically, telephonically, or by any other means that result in a
pesticide product being shipped to or used in the state. There is a rebuttable presumption
that pesticide products that are sold or distributed in or into the state by any person are sold
or distributed for use in the state.

Sec. 12.

Minnesota Statutes 2016, section 18B.28, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

A person may not use or distribute an experimental use
pesticide product in the state until it is registered with the commissioner. Experimental use
pesticide product registrations expire on December 31 of each year and may be renewed
on or before that date. new text begin A substance or mixture of substances being tested only to determine
its potential efficacy as a pesticide, or to determine its toxicity or other properties, and not
requiring the issuance of an experimental use permit under United States Environmental
Protection Agency criteria specified in federal regulations, is not required to be registered.
new text end

Sec. 13.

Minnesota Statutes 2016, section 18B.28, subdivision 3, is amended to read:

Subd. 3.

Application.

A person must file an application for experimental use pesticide
product registration with the commissioner. An application to register an experimental use
pesticide product must include:

(1) the name and address of the applicant;

(2) a deleted text begin federal deleted text end new text begin copy of the United States new text end Environmental Protection Agency deleted text begin approval
document deleted text end new text begin permit new text end ;

(3) new text begin a description of new text end the purpose or objectives of the experimental use deleted text begin product deleted text end ;

(4) deleted text begin an deleted text end new text begin a copy of the experimental use pesticide labeling new text end accepted deleted text begin experimental use
pesticide product label deleted text end new text begin by the United States Environmental Protection Agency new text end ;

(5) the name, address, and telephone number of cooperators or participants in this state;

(6) the amount of material to be shipped or used in this state; and

(7) other information requested by the commissioner.

Sec. 14.

Minnesota Statutes 2016, section 18B.305, subdivision 1, is amended to read:

Subdivision 1.

Education and training.

(a) The commissioner, as the lead agency, shall
develop, implement or approve, and evaluate, in consultation with University of Minnesota
Extension, the Minnesota State Colleges and Universities system, and other educational
institutions, innovative educational and training programs addressing pesticide new text begin and pest
management new text end concerns including:

(1) water quality protection;

(2) endangered species protection;

(3) minimizing pesticide residues in food and water;

(4) worker protection and applicator safety;

(5) chronic toxicity;

(6) integrated pest management and pest resistance;

(7) pesticide disposal;

(8) pesticide drift;

(9) relevant laws including pesticide labels and labeling and state and federal rules and
regulations; and

(10) current science and technology updates.

(b) The commissioner shall appoint educational planning committees which must include
representatives of industry and applicators.

(c) Specific current regulatory concerns must be discussed and, if appropriate,
incorporated into each training session. Relevant changes to pesticide product labels or
labeling or state and federal rules and regulations may be included.

(d) The commissioner may approve programs from private industry, higher education
institutions, and nonprofit organizations that meet minimum requirements for education,
training, and certification.

Sec. 15.

Minnesota Statutes 2016, section 18B.37, subdivision 3, is amended to read:

Subd. 3.

Structural pest control applicators.

(a) A structural pest control applicator
must maintain a record of each structural pest control application conducted by that person
or by the person's employees. The record must include the:

(1) date of structural pest control application;

(2) target pest;

(3) brand name of the pesticide, United States Environmental Protection Agency
registration number, and amount used;

(4) for fumigation, the temperature and exposure time;

(5) time the pesticide application was completed;

(6) name and address of the customer;

(7) name of structural pest control applicator, name of company and address of applicator
or company, and license number of applicator; and

(8) any other information required by the commissioner.

(b) All information for this record requirement must be contained in a document for
each pesticide application. An invoice containing the required information may constitute
the record.

(c) The record must be completed no later than five days after the application of the
pesticide.

(d) Records must be retained for five years after the date of treatment.

(e) A copy of the record must be given to a person who ordered the application that is
present at the site where the structural pest control application is conducted, placed in a
conspicuous location at the site where the structural pest control application is conducted
immediately after the application of the pesticides, or delivered to the person who ordered
an application or the owner of the site. The commissioner must make sample forms available
that meet the requirements of this subdivision.

new text begin (f) A structural applicator must post in a conspicuous place inside a renter's apartment
where a pesticide application has occurred a list of postapplication precautions contained
on the label of the pesticide that was applied in the apartment and any other information
required by the commissioner.
new text end

Sec. 16.

Minnesota Statutes 2016, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires deleted text begin January 8, 2017 deleted text end new text begin June 30, 2020 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 7, 2017.
new text end

Sec. 17.

Minnesota Statutes 2016, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires deleted text begin January 8, 2017 deleted text end new text begin June 30, 2020 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 7, 2017.
new text end

Sec. 18.

Minnesota Statutes 2016, section 18H.06, subdivision 2, is amended to read:

Subd. 2.

Occasional sales.

(a) An individual may offer nursery stock for sale and be
exempt from the requirement to obtain a nursery stock certificate if:

(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;

(2) all nursery stock sold or distributed by the individual is intended for planting in
Minnesota;

(3) all nursery stock purchased or procured for resale or distribution was grown in
Minnesota and has been certified by the commissioner; and

(4) the individual conducts sales or distributions of nursery stock on ten or fewer days
in a calendar year.

new text begin (b) A municipality may offer certified nursery stock for sale and be exempt from the
requirement to obtain a nursery stock certificate if:
new text end

new text begin (1) all nursery stock offered for sale or distributed is intended for planting by residents
of the municipality on public property or public easements within the municipal boundary;
new text end

new text begin (2) all nursery stock purchased or procured for resale or distribution is grown in
Minnesota and has been certified by the commissioner; and
new text end

new text begin (3) the municipality submits to the commissioner before any sale or distribution of
nursery stock a list of all suppliers who provide the municipality with nursery stock.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commissioner may prescribe the conditions of the exempt nursery sales under
this subdivision and may conduct routine inspections of the nursery stock offered for sale.

Sec. 19.

Minnesota Statutes 2016, section 18H.07, subdivision 2, is amended to read:

Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must pay an
annual fee based on the area of all acreage on which nursery stock is grown as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must
be charged for each month, or portion thereof, that the fee is delinquent up to a maximum
of 30 percent for any application for renewal not postmarked new text begin or electronically date stamped new text end
by December 31 of the current year.

(c) A nursery stock grower found operating without a valid nursery stock grower
certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.

Sec. 20.

Minnesota Statutes 2016, section 18H.07, subdivision 3, is amended to read:

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an annual
fee based on the dealer's gross sales of certified nursery stock per location during the most
recent certificate year. A certificate applicant operating for the first time must pay the
minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must
be charged for each month, or portion thereof, that the fee is delinquent up to a maximum
of 30 percent for any application for renewal not postmarked new text begin or electronically date stamped
new text end by December 31 of the current year.

(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate
cannot offer for sale or sell nursery stock until: (1) payment is received by the commissioner
for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed; and (2) a
new certificate is issued to the nursery stock dealer by the commissioner.

Sec. 21.

Minnesota Statutes 2016, section 21.111, subdivision 2, is amended to read:

Subd. 2.

Inspected.

"Inspected" means that the potato plants are examined in the field
and that the harvested potatoes produced by deleted text begin such deleted text end new text begin the potato new text end plants are examined by or under
the authority of the commissioner. new text begin For seed potatoes produced in a lab, inspected means
that the lab's records, including records related to the lab's procedures and protocols, as well
as the seed potatoes, have been examined under the authority of the commissioner.
new text end

Sec. 22.

Minnesota Statutes 2016, section 21.111, subdivision 3, is amended to read:

Subd. 3.

Certified.

"Certified" means that the potatoes were inspected while growing
in the field and again after being harvested, and were thereafter duly certified by or under
the authority of the commissioner, as provided in sections 21.111 to 21.122, and as provided
by rules adopted and published by the commissioner. new text begin For seed potatoes produced in a lab,
certified means that:
new text end

new text begin (1) the seed potato lab facilities and the lab's procedures and protocols have been
examined under the authority of the commissioner; and
new text end

new text begin (2) the seed potatoes have been inspected after they have been harvested, removed, or
released from the lab, and were duly certified by or under the authority of the commissioner,
as provided in sections 21.111 to 21.122.
new text end

Sec. 23.

Minnesota Statutes 2016, section 21.113, is amended to read:

21.113 CERTIFICATES OF INSPECTION.

new text begin (a) new text end The commissioner shall deleted text begin cause deleted text end new text begin issue new text end certificates of inspection deleted text begin to be issued deleted text end only when
seed potatoes have been inspected while growing in the field and again after being harvested.

new text begin (b) For seed potatoes produced in a lab, the commissioner shall issue certificates of
inspection only after:
new text end

new text begin (1) the seed potato lab facility and the lab's records have been inspected; and
new text end

new text begin (2) the seed potatoes have been inspected after they have been harvested, removed, or
released from the lab.
new text end

deleted text begin Such deleted text end new text begin (c) new text end Certificates new text begin of inspection under this section new text end shall show the varietal purity and
the freedom from disease and physical injury of such potatoes and deleted text begin shall contain such deleted text end new text begin any new text end
other information as may be prescribed by rules adopted and published under sections 21.111
to 21.122.

Sec. 24.

Minnesota Statutes 2016, section 21.117, is amended to read:

21.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS.

new text begin (a) new text end Any person may make application to the commissioner for inspection or certification
of seed potatoes growing or to be grown. Upon receiving such application and the required
fee and such other information as may be required, the commissioner shall cause such
potatoes to be inspected or certified in accordance with the provisions of sections 21.111
to 21.122 and the rules adopted and published thereunder.

new text begin (b) new text end If a grower wishes to withdraw a field new text begin or lab new text end after having made application for
inspection and such withdrawal is requested before the field new text begin or lab new text end inspection has been
made, the fee paid shall be refunded to said grower.

Sec. 25.

Minnesota Statutes 2016, section 25.32, is amended to read:

25.32 COMMISSIONER'S DUTIES.

new text begin The commissioner shall administer new text end sections 25.31 to 25.43 deleted text begin shall be administered by the
commissioner deleted text end .

Sec. 26.

Minnesota Statutes 2016, section 25.33, subdivision 5, is amended to read:

Subd. 5.

Commercial feed.

"Commercial feed" means materials or combinations of
materials that are distributed or intended to be distributed for use as feed or for mixing in
feed, including feed for aquatic animals, unless the materials are specifically exempted.
Unmixed whole seeds and physically altered entire unmixed seeds new text begin , as identified in the
United States grain standards new text end , if the whole or physically altered seeds are not chemically
changed new text begin , are not labeled as a feed or for use as feed, new text end or are not adulterated within the meaning
of section 25.37, paragraph (a), are exempt. The commissioner by rule may exempt from
this definition, or from specific provisions of sections 25.31 to 25.43, commodities such as
hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or
substances if those commodities, compounds, or substances are not intermixed with other
materials new text begin , are not labeled as a feed or for use as feed new text end , and are not adulterated within the
meaning of section 25.37, paragraph (a).

Sec. 27.

Minnesota Statutes 2016, section 25.33, subdivision 10, is amended to read:

Subd. 10.

Manufacture.

"Manufacture" means to grind, mix deleted text begin or deleted text end new text begin , new text end blend, deleted text begin or further deleted text end process new text begin ,
package, or label new text end a commercial feed for distribution.

Sec. 28.

Minnesota Statutes 2016, section 25.33, subdivision 21, is amended to read:

Subd. 21.

Commissioner.

"Commissioner" means the commissioner of agriculture or
deleted text begin a designated representative deleted text end new text begin the commissioner's agent new text end .

Sec. 29.

Minnesota Statutes 2016, section 25.341, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Before a person may: (1) manufacture a commercial feed
in the state; (2) distribute a commercial feed in or into the state; or (3) have the person's
name appear on the label of a commercial feed as guarantor, the person must have a
commercial feed license for each new text begin guarantor, or new text end manufacturing or distributing facility. A
person who makes only retail sales of commercial feed, guaranteed by another, is not required
to obtain a license.

Sec. 30.

Minnesota Statutes 2016, section 25.341, subdivision 2, is amended to read:

Subd. 2.

Application; fee; term.

A person who is required to have a commercial feed
license deleted text begin shall deleted text end new text begin must new text end submit an application on a form provided or approved by the commissioner
accompanied by deleted text begin a deleted text end new text begin an application new text end fee of $75 paid to the commissioner for each location. A
license is not transferable from one person to another, from one ownership to another, or
from one location to another. The license year is the calendar year. A license expires on
December 31 of the year for which it is issued, except that a license is valid deleted text begin through January
31 of the next year or deleted text end until the issuance of the renewal license deleted text begin , whichever comes first, deleted text end if
the licensee has filed a renewal application deleted text begin with the commissioner deleted text end new text begin that has been received
by the commissioner on or before December 31 of the year for which the current license
was issued, or postmarked new text end on or before December 31 of the year for which the current
license was issued. Any person who is required to have, but fails to obtain a license or a
licensee who fails to comply with license renewal requirements, deleted text begin shall deleted text end new text begin must new text end pay a $100 late
fee in addition to the license fee.

Sec. 31.

Minnesota Statutes 2016, section 25.35, is amended to read:

25.35 LABELING.

(a) A commercial feed, except a customer formula feed, must be accompanied by a label
bearing the following information:

(1) the product name and the brand name, if any, under which the commercial feed is
distributed;

(2) the guaranteed analysis, stated in terms the commissioner requires by rule, to advise
the user of the composition of the feed or to support claims made in the labeling. The
substances or elements must be determinable by laboratory methods such as the methods
published by the AOAC International or other generally recognized methods;

(3) the common or usual name of each ingredient used in the manufacture of the
commercial feed. The commissioner may by rule permit the use of a collective term for a
group of ingredients which perform a similar function, or may exempt commercial feeds
or any group of commercial feeds from this requirement on finding that an ingredient
statement is not required in the interest of consumers;

(4) the name and principal mailing address of the manufacturer or the person responsible
for distributing the commercial feed;

(5) adequate directions for use for all commercial feeds containing drugs and for such
other feeds as the commissioner may require by rule as necessary for their safe and effective
use;

(6) precautionary statements which the commissioner determines by rule are necessary
for the safe and effective use of the commercial feed; and

(7) a quantity statement.

(b) A customer formula feed must be accompanied by a label, invoice, delivery slip, or
other shipping document bearing the following information:

(1) name and address of the manufacturer;

(2) name and address of the purchaser;

(3) date of delivery;

(4) the product name and either (i) the quantity of each commercial feed and each other
ingredient used in the mixture, or (ii) a guaranteed analysis and list of ingredients in paragraph
(a), clauses (2) and (3);

(5) adequate directions for use for all customer formula feeds containing drugs and for
other feeds the commissioner requires by rule as necessary for their safe and effective use;

(6) precautionary statements the commissioner determines by rule are necessary for the
safe and effective use of the customer formula feed;

(7) if a product containing a drug is used:

(i) the purpose of the medication (claim statement); and

(ii) the established name of each active drug ingredient and the level of each drug used
in the final mixture expressed in a manner required by the commissioner by rule; deleted text begin and
deleted text end

(8) for a customer formula feed for which the formula is developed by someone other
than the manufacturer, a disclaimer may be included on the label stating "THIS FEED IS
A CUSTOMER FORMULA FEED DEVELOPED BY SOMEONE OTHER THAN THE
MANUFACTURER. THE MANUFACTURER DOES NOT CLAIM, REPRESENT,
WARRANT, OR GUARANTEE, AND IS NOT RESPONSIBLE FOR THE NUTRITIONAL
ADEQUACY OF THIS FEED OR THE NUTRITIONAL SUITABILITY OF THIS FEED
FOR ITS INTENDED PURPOSE." new text begin ; and
new text end

new text begin (9) a quantity statement.
new text end

(c) The manufacturer of a customer formula feed the formula of which is developed by
someone other than the manufacturer is not responsible or liable for the nutritional adequacy
or the nutritional suitability of the feed for its intended purpose if: (1) the manufacturer does
not make a claim of nutritional adequacy for the customer formula feed and does not make
a claim for nutritional suitability of the feed for its intended purpose; and (2) the manufacturer
includes the disclaimer in paragraph (b), clause (8). A person other than the manufacturer
who develops or recommends a formula for a customer formula feed is responsible for
providing to the manufacturer of the feed the appropriate labeling information and for
providing the appropriate use information to the feed manufacturer.

Sec. 32.

Minnesota Statutes 2016, section 25.371, subdivision 2, is amended to read:

Subd. 2.

Certificate application.

(a) A person may apply to the commissioner for a
good manufacturing practices certificate for commercial feed and feed ingredients.
Application for good manufacturing practices certificates must be made on forms provided
or approved by the commissioner. The commissioner shall conduct inspections of facilities
for persons that have applied for or intend to apply for a good manufacturing practices
certificate for commercial feed and feed ingredients from the commissioner. The
commissioner shall not conduct an inspection under this deleted text begin section deleted text end new text begin subdivision new text end if the applicant
has not paid in full the inspection fee for previous inspections. Certificate issuance shall be
based on deleted text begin compliance with subdivisions 3 to 14, or deleted text end United States Food and Drug
Administration rules regarding preventive controls for animal feed.

(b) The commissioner may assess a fee for the inspection, service, and work performed
in carrying out the issuance of a good manufacturing practices certificate for commercial
feed and feed ingredients. The inspection fee must be based on mileage and the cost of
inspection.

Sec. 33.

Minnesota Statutes 2016, section 25.38, is amended to read:

25.38 PROHIBITED ACTS.

The following acts and causing the following acts in Minnesota are prohibited:

(1) manufacture or distribution of any commercial feed that is adulterated or misbranded;

(2) adulteration or misbranding of any commercial feed;

(3) distribution of agricultural commodities such as whole seed, hay, straw, stover, silage,
cobs, husks, and hulls, which are adulterated within the meaning of section 25.37, paragraph
(a);

(4) removal or disposal of a commercial feed in violation of an order under section 25.42;

(5) failure or refusal to obtain a commercial feed license under section 25.341 deleted text begin or to
provide a small package listing under section 25.39 deleted text end ; or

(6) failure to pay inspection fees new text begin , to register a small package under section 25.39, new text end or new text begin to
new text end file reports as required by section 25.39.

Sec. 34.

Minnesota Statutes 2016, section 25.39, subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of 16 cents per ton must
be paid to the commissioner on commercial feeds distributed in this state by the person who
first distributes the commercial feed, except that:

(1) no fee need be paid on deleted text begin :
deleted text end

deleted text begin (i) a commercial feed if the payment has been made by a previous distributor; or
deleted text end

deleted text begin (ii) deleted text end new text begin any feed ingredient in a new text end customer formula deleted text begin feeds if the inspection fee is paid on the
commercial feeds which are used as ingredients deleted text end new text begin feed that has been directly furnished by the
customer new text end ; or

(2) deleted text begin a Minnesota feed distributor who can substantiate that greater than 50 percent of the
distribution of commercial feed is to purchasers outside the state may purchase commercial
feeds without payment of the inspection fee under a tonnage fee exemption permit issued
by the commissioner deleted text end new text begin no fee need be paid on a first distribution if made to a qualified buyer
who, with approval from the commissioner, is responsible for the fee new text end . Such deleted text begin location specific deleted text end
new text begin license-specific tonnage-fee-exemption new text end permits shall be issued on a calendar year basis to
commercial feed deleted text begin distributors deleted text end new text begin licensees new text end who new text begin distribute feed or feed ingredients outside the
state, and who new text end submit a $100 nonrefundable application fee and comply with rules adopted
by the commissioner relative to record keeping, tonnage of commercial feed distributed in
Minnesota, total of all commercial feed tonnage distributed, and all other information which
the commissioner may require so as to ensure that proper inspection fee payment has been
made.

(b) In the case of pet food new text begin or specialty pet food new text end distributed in the state only in packages
of ten pounds or less, a deleted text begin listing of deleted text end new text begin distributor must register new text end each product and new text begin submit new text end a current
label for each product deleted text begin must be submitted deleted text end annually on forms provided by the commissioner
deleted text begin and deleted text end new text begin , new text end accompanied by an annual new text begin application new text end fee of $100 for each product in lieu of the
inspection fee. This annual fee deleted text begin is due by July 1 deleted text end new text begin must be received by the commissioner on
or before June 30 or postmarked on or before June 30 new text end . The inspection fee required by
paragraph (a) applies to pet food new text begin or specialty pet food new text end distributed in packages exceeding
ten pounds.

deleted text begin (c) In the case of specialty pet food distributed in the state only in packages of ten pounds
or less, a listing of each product and a current label for each product must be submitted
annually on forms provided by the commissioner and accompanied by an annual fee of
$100 for each product in lieu of the inspection fee. This annual fee is due by July 1. The
inspection fee required by paragraph (a) applies to specialty pet food distributed in packages
exceeding ten pounds.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end The minimum inspection fee is $75 per annual reporting period.

Sec. 35.

Minnesota Statutes 2016, section 25.39, subdivision 1a, is amended to read:

Subd. 1a.

Containers of ten pounds or less.

A distributor who is subject to the annual
fee specified in subdivision 1, paragraph (b) deleted text begin or (c) deleted text end , deleted text begin shall deleted text end new text begin must new text end do the following:

(1) before beginning distribution, deleted text begin file deleted text end new text begin register new text end with the commissioner deleted text begin a listing of deleted text end new text begin the new text end pet
and specialty pet foods to be distributed in the state only in containers of ten pounds or less,
on forms provided by the commissioner. The deleted text begin listing deleted text end new text begin registration new text end under this clause must be
renewed annually new text begin on or new text end before deleted text begin July 1 deleted text end new text begin June 30 new text end and is the basis for the payment of the annual
fee. New products added during the year must be submitted to the commissioner as a
supplement to the annual deleted text begin listing deleted text end new text begin registration new text end before distribution; and

(2) if the annual renewal of the deleted text begin listing deleted text end new text begin registration new text end is not received new text begin or postmarked on or
new text end before deleted text begin July 1 deleted text end new text begin June 30 new text end or if an deleted text begin unlisted deleted text end new text begin unregistered new text end product is distributed, pay a late filing
fee of $100 per product in addition to the normal charge for the deleted text begin listing deleted text end new text begin registration new text end . The late
filing fee under this clause is in addition to any other penalty under this chapter.

Sec. 36.

Minnesota Statutes 2016, section 25.39, subdivision 2, is amended to read:

Subd. 2.

Annual statement.

A person who is liable for the payment of a fee under this
section deleted text begin shall deleted text end new text begin must new text end file with the commissioner on forms furnished by the commissioner an
annual statement setting forth the number of net tons of commercial feeds distributed in
this state during the calendar year. The report is due deleted text begin by deleted text end new text begin on or before new text end the 31st of each January new text begin
following the year of distribution new text end . The inspection fee at the rate specified in subdivision 1
must accompany the statement. For each tonnage report not filed new text begin with the commissioner new text end or
payment of inspection fees not deleted text begin made on time deleted text end new text begin received by the commissioner on or before
January 31 or postmarked on or before January 31 new text end , a penalty of ten percent of the amount
due, with a minimum penalty of $10, must be assessed against the license holder, and the
amount of fees due, plus penalty, is a debt and may be recovered in a civil action against
the license holder. The assessment of this penalty does not prevent the department from
taking other actions as provided in this chapter.

Sec. 37.

Minnesota Statutes 2016, section 25.39, subdivision 3, is amended to read:

Subd. 3.

Records.

Each person required to pay an inspection fee or to report in accordance
with this section deleted text begin shall deleted text end new text begin must new text end keep records, as determined by the commissioner, accurately
detailing the tonnage of commercial feed distributed in this state. Records upon which the
tonnage is based must be maintained for six years and made available to the commissioner
for inspection, copying, and audit. A person who is located outside of this state must maintain
and make available records required by this section in this state or pay all costs incurred in
auditing of the records at another location. Unless required for the enforcement of this
chapter, the information in the records required by this subdivision is private or nonpublic.

Sec. 38.

Minnesota Statutes 2016, 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 the official
definitions of feed ingredients deleted text begin or deleted text end new text begin and new text end official feed terms as adopted by the Association of
American Feed Control Officials, any amendment or modification adopted by the association
deleted text begin shall be deleted text end new text begin is new text end 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. 39.

Minnesota Statutes 2016, section 25.41, subdivision 1, is amended to read:

Subdivision 1.

Authorization; limitation.

For the purpose of enforcement of sections
25.31 to 25.43, and associated rules, in order to determine whether the provisions have been
complied with, including whether or not any operations may be subject to such provisions,
officers or employees duly designated by the commissioner new text begin or the commissioner's agent new text end ,
upon presenting appropriate credentials, and a written notice to the owner, operator, or agent
in charge, are authorized:

(1) to enter, during normal business hours, any factory, warehouse, or establishment
within the state in which commercial feeds are manufactured, processed, packed, or held
for distribution, or to enter any vehicle being used to transport or hold such feeds; and

(2) to inspect at reasonable times, within reasonable limits, and in a reasonable manner,
such factory, warehouse, establishment or vehicle and all pertinent equipment, finished and
unfinished materials, containers, and labeling therein. The inspection may include the
verification of records and production and control procedures related to the manufacture,
distribution, storage, handling, or disposal of commercial feed as may be necessary to
determine compliance with this chapter.

Sec. 40.

Minnesota Statutes 2016, section 25.41, subdivision 2, is amended to read:

Subd. 2.

Notification; promptness.

A separate notice deleted text begin shall deleted text end new text begin must new text end be given for each
inspection, but a notice deleted text begin shall deleted text end new text begin is new text end not deleted text begin be deleted text end required for each entry made during the period covered
by the inspection. Each inspection deleted text begin shall be commenced deleted text end new text begin must begin new text end and new text begin be new text end completed with
reasonable promptness. Upon completion of the inspection, the owner, operator, or agent
in charge of the facility or vehicle deleted text begin shall deleted text end new text begin must new text end be deleted text begin so deleted text end notified.

Sec. 41.

Minnesota Statutes 2016, section 25.41, subdivision 3, is amended to read:

Subd. 3.

Receipt for samples.

If the deleted text begin officer or employee deleted text end new text begin commissioner or the
commissioner's agent new text end making such inspection of a factory, warehouse, or other establishment
has obtained a sample in the course of the inspection, upon completion of the inspection
and prior to leaving the premises the deleted text begin officer or employee deleted text end new text begin commissioner or the commissioner's
agent new text end shall give to the owner, operator, or agent in charge a receipt describing the samples
obtained.

Sec. 42.

Minnesota Statutes 2016, section 25.41, subdivision 5, is amended to read:

Subd. 5.

Entry of premises.

For the purpose of the enforcement of sections 25.31 to
25.43, the commissioner or the commissioner's deleted text begin duly designated deleted text end agent is authorized to enter
upon any public or private premises including any vehicle of transport during regular business
hours to have access to, and to obtain samples, and to examine new text begin and copy new text end records relating
to distribution of commercial feeds.

Sec. 43.

Minnesota Statutes 2016, section 25.41, subdivision 7a, is amended to read:

Subd. 7a.

Manufacturer's report of investigation.

If the inspection and analysis of an
official sample indicates that a commercial feed has been adulterated or misbranded, the
person whose name appears on the label of the indicated commercial feed as guarantor deleted text begin shall deleted text end new text begin
must new text end provide a manufacturer's report of investigation to the commissioner within 30 days
following the receipt of the official analysis.

Sec. 44.

Minnesota Statutes 2016, section 25.42, is amended to read:

25.42 DETAINED COMMERCIAL FEEDS.

Subdivision 1.

Withdrawal from distribution order.

When the commissioner or the
commissioner's deleted text begin authorized deleted text end agent has reasonable cause to believe any lot of commercial feed
is being distributed in violation of any of the provisions of sections 25.31 to 25.43 or of any
of the prescribed rules under sections 25.31 to 25.43, the commissioner or new text begin the commissioner's
new text end agent may issue and enforce a written or printed "withdrawal from distribution" order,
warning the distributor not to dispose of the lot of commercial feed in any manner until
written permission is given by the commissioner or the court. The commissioner shall release
the lot of new text begin withdrawn new text end commercial feed deleted text begin so withdrawn deleted text end when deleted text begin said provisions and deleted text end new text begin sections 25.31
to 25.43 and associated new text end rules have been complied with. If compliance is not obtained within
30 days, the commissioner may begin, or upon request of the distributor or license holder
shall begin, proceedings for condemnation.

Subd. 2.

Seizure; disposition.

Any lot of commercial feed not in compliance with deleted text begin said
provisions and deleted text end new text begin sections 25.31 to 25.43 and associated new text end rules deleted text begin shall be deleted text end new text begin is new text end subject to seizure on
complaint of the commissioner to the district court of the county in which deleted text begin said deleted text end new text begin the new text end commercial
feed is located. In the event the court finds the commercial feed to be in violation of sections
25.31 to 25.43 and orders the condemnation of deleted text begin said deleted text end new text begin the new text end commercial feed, deleted text begin it shall deleted text end new text begin the
commercial feed must new text end be disposed of in deleted text begin any deleted text end new text begin a new text end manner consistent with the quality of the
commercial feed and the laws of the state; provided, that in no instance, shall the disposition
of deleted text begin said deleted text end new text begin the new text end commercial feed be ordered by the court without first giving the claimant an
opportunity to apply to the court for release of deleted text begin said deleted text end new text begin the new text end commercial feed or for permission
to process or relabel deleted text begin said deleted text end new text begin the new text end commercial feed to bring it into compliance with sections
25.31 to 25.43.

Sec. 45.

Minnesota Statutes 2016, section 25.43, is amended to read:

25.43 PENALTIES.

Subdivision 1.

Misdemeanor.

Any person convicted of violating any of the provisions
of sections 25.31 to 25.43 or who deleted text begin shall impede, hinder deleted text end new text begin impedes, hinders new text end , or otherwise deleted text begin prevent deleted text end new text begin
prevents new text end , or deleted text begin attempt deleted text end new text begin attempts new text end to prevent, deleted text begin said deleted text end new text begin the new text end commissioner or deleted text begin duly authorized deleted text end new text begin the
commissioner's new text end agent in performance of a duty in connection with the provisions of sections
25.31 to 25.43 deleted text begin , shall be deleted text end new text begin is new text end guilty of a misdemeanor.

Subd. 2.

Minor violations.

Nothing in sections 25.31 to 25.43 shall be construed as
requiring the commissioner or the commissioner's deleted text begin representative deleted text end new text begin agent new text end to: (1) report for
prosecution, or (2) institute seizure proceedings, or (3) issue a withdrawal from distribution
order, as a result of minor violations of sections 25.31 to 25.43, or when the commissioner
or deleted text begin representative deleted text end new text begin the commissioner's agent new text end believes the public interest will best be served
by suitable notice of warning in writing.

Subd. 3.

County attorney duties.

Each county attorney to whom any violation is reported
deleted text begin shall deleted text end new text begin must new text end cause appropriate proceedings to be instituted and prosecuted in the district court
or other court of competent jurisdiction without delay. Before the commissioner reports a
violation for such prosecution, an opportunity deleted text begin shall deleted text end new text begin must new text end be given the distributor to present
views to the commissioner.

Subd. 4.

Injunction.

The commissioner may apply to the district court for a temporary
or permanent injunction restraining any person from violating or continuing to violate any
of the provisions of sections 25.31 to 25.43 or any new text begin associated new text end rule deleted text begin promulgated under the
act deleted text end notwithstanding the existence of other remedies at law.

Subd. 5.

new text begin Notice of new text end appeal.

new text begin (a) new text end Any person adversely affected by an act, order, new text begin citation,
new text end or ruling made pursuant to the provisions of sections 25.31 to 25.43 deleted text begin may seek judicial review
in accordance with chapter 14. deleted text end new text begin has 30 days from receipt of the citation or order to notify
the commissioner in writing that the person intends to contest the citation or order through
a hearing. The hearing request must identify the order or citation being contested and state
the grounds for contesting it.
new text end

new text begin (b) If the person fails to notify the commissioner that the person intends to contest the
citation or order, the citation or order is final and not subject to further judicial or
administrative review.
new text end

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin If a person notifies the commissioner that the person
intends to contest a citation or order issued under this chapter, the Office of Administrative
Hearings shall conduct a hearing according to the applicable provisions of chapter 14 for
hearings in contested cases and final decisions are subject to judicial review as provided in
chapter 14.
new text end

Sec. 46.

Minnesota Statutes 2016, section 27.04, is amended to read:

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; new text begin and
new text end

deleted text begin (5) a financial statement showing the value and character of the assets and the amount
of liabilities of the applicant;
deleted text end

deleted text begin (6) the income and expenses for the most recent year;
deleted text end

deleted text begin (7) the names and addresses of all shareholders who own at least five percent of a
corporate applicant's shares of stock;
deleted text end

deleted text begin (8) whether the applicant or any of its officers, partners, or agents have been involved
in any litigation relating to the business of a wholesale produce dealer in the previous five
years; and
deleted text end

deleted text begin (9) deleted text end new text begin (5) new text end 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.

Sec. 47.

Minnesota Statutes 2016, section 27.041, subdivision 1, is amended to read:

Subdivision 1.

Bonds.

(a) deleted text begin 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. deleted text end new text begin Before a wholesale produce dealer's license is
issued, the applicant for the license must file with the commissioner a bond in a penal sum
prescribed by the commissioner but not less than the following amounts:
new text end

new text begin (1) $5,000 for wholesale produce dealers whose monthly purchases are $35,000 or less;
new text end

new text begin (2) $10,000 for wholesale produce dealers whose monthly purchases are more than
$35,000 but not more than $75,000;
new text end

new text begin (3) $15,000 for wholesale produce dealers whose monthly purchases are more than
$75,000 but not more than $100,000;
new text end

new text begin (4) $25,000 for wholesale produce dealers whose monthly purchases are more than
$100,000 but not more than $250,000;
new text end

new text begin (5) $50,000 for wholesale produce dealers whose monthly purchases are more than
$250,000 but not more than $500,000;
new text end

new text begin (6) $100,000 for wholesale produce dealers whose monthly purchases are more than
$500,000 but not more than $750,000;
new text end

new text begin (7) $175,000 for wholesale produce dealers whose monthly purchases are more than
$750,000 but not more than $1,000,000;
new text end

new text begin (8) $250,000 for wholesale produce dealers whose monthly purchases are more than
$1,000,000 but not more than $2,500,000;
new text end

new text begin (9) $500,000 for wholesale produce dealers whose monthly purchases are more than
$2,500,000 but not more than $10,000,000;
new text end

new text begin (10) $750,000 for wholesale produce dealers whose monthly purchases are more than
$10,000,000 but not more than $25,000,000; and
new text end

new text begin (11) $1,000,000 for wholesale produce dealers whose gross annual purchases exceed
$25,000,000.
new text end

new text begin (b) A wholesale produce dealer who has filed a bond with the commissioner before July
1, 2016, is not required to increase the amount of the bond to comply with this section until
July 1, 2017. The commissioner may postpone an increase in the amount of the bond until
July 1, 2018, if a licensee demonstrates that the increase will impose undue financial hardship
on the licensee, and that producers will not be harmed as a result of the postponement. The
commissioner may impose other restrictions on a licensee whose bond increase has been
postponed. The amount of the bond shall be based on the amount purchased or contracted
for from Minnesota farmers and other Minnesota dealers for produce during the previous
12 months.
new text end

new text begin (c) A first-time applicant for a wholesale produce dealer's license shall file a $10,000
bond with the commissioner. This bond shall remain in effect for the first year of the license.
Thereafter, the licensee shall comply with the applicable bonding requirements in paragraph
(a), clauses (1) to (11).
new text end

new text begin (d) In lieu of the bond required by this subdivision, the applicant may deposit with the
commissioner of management and budget cash; a certified check; a cashier's check; a postal,
bank, or express money order; assignable bonds or notes of the United States; an assignment
of a bank savings account or investment certificate; or an irrevocable bank letter of credit
as defined in section 336.5-102, in the same amount as would be required for a bond.
new text end

new text begin (e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
60 days' written notice of the bond's termination date to the licensee and the commissioner.
new text end

new text begin (f) new text end 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.

deleted text begin (b) deleted text end new text begin (g) new text end 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.

new text begin (h) Wholesale produce dealers who are retail merchants shall be required to file a bond
under paragraph (a) based on the dollar amount of produce purchased directly from farmers.
new text end

Sec. 48.

Minnesota Statutes 2016, section 28A.21, subdivision 6, is amended to read:

Subd. 6.

Expiration.

This section expires June 30, deleted text begin 2017 deleted text end new text begin 2027 new text end .

Sec. 49.

Minnesota Statutes 2016, section 31A.02, subdivision 4, is amended to read:

Subd. 4.

Animals.

"Animals" means cattle, swine, sheep, goats, poultry, 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, horses, equines, and other deleted text begin large
deleted text end domesticated animals.

Sec. 50.

Minnesota Statutes 2016, section 32C.02, subdivision 2, is amended to read:

Subd. 2.

Facility design; development and operation.

The authority may enter into
management contracts, lease agreements, or both, with a Minnesota nonprofit corporation
to design, develop, and operate a facility to further the purposes of this chapter at the site
determined by the board and on the terms that the board finds desirable. The board must
identify deleted text begin and acquire deleted text end a site that will accommodate new text begin , where practicable, new text end the following facilities
and activities:

(1) housing for bred and lactating animals;

(2) milking parlor;

(3) automatic milking systems;

(4) cross-ventilated and natural-ventilated housing;

(5) transition cow housing;

(6) special needs and hospital housing;

(7) classrooms and a conference room;

(8) dairy processing facility with retail;

(9) visitors' center;

(10) student housing;

(11) laboratory facilities;

(12) space to accommodate installation of an anaerobic digester system to research
energy production from feedstock produced on site or from off-site sources; and

(13) space for feed storage to allow for research capabilities at the facility.

Notwithstanding the provisions of section 32C.01, subdivision 7, relating to conflict of
interest, a director or officer of the authority who is also a director, officer, or member of
a nonprofit corporation with which the authority enters into management contracts or lease
agreements may participate in and vote on the decision of the board as to the terms and
conditions of management contracts or lease agreements between the Minnesota nonprofit
corporation and the authority.

Sec. 51.

Minnesota Statutes 2016, section 32C.06, is amended to read:

32C.06 EXPIRATION.

If by August 1, deleted text begin 2017 deleted text end new text begin 2020 new text end , the authority board has not identified deleted text begin and acquired deleted text end a site for
a facility, as provided in section 32C.02, subdivision 2, sections 32C.01 to 32C.05 and this
section are repealed on that date. The Department of Agriculture shall notify the revisor of
statutes if the repealer under this section becomes effective.

Sec. 52.

Minnesota Statutes 2016, section 34A.01, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The definitions in this section and chapters 28, 28A, 29,
30, 31, 31A, deleted text begin 32 deleted text end new text begin 32D new text end , and 34 apply to this chapter. The definitions in this section apply to
chapter deleted text begin 32 deleted text end new text begin 32D new text end .

Sec. 53.

Minnesota Statutes 2016, section 41B.03, subdivision 2, is amended to read:

Subd. 2.

Eligibility for restructured loan.

In addition to the eligibility requirements
of subdivision 1, a prospective borrower for a restructured loan must:

(1) have received at least 50 percent of average annual gross income from farming for
the past three years or, for homesteaded property, received at least 40 percent of average
gross income from farming in the past three years, and farming must be the principal
occupation of the borrower;

(2) have projected annual expenses, including operating expenses, family living, and
interest expenses after the restructuring, that do not exceed 95 percent of the borrower's
projected annual income considering prior production history and projected prices for farm
production, except that the authority may reduce the 95 percent requirement if it finds that
other significant factors in the loan application support the making of the loan;

(3) demonstrate substantial difficulty in meeting projected annual expenses without
restructuring the loan; and

(4) have a total net worth, including assets and liabilities of the borrower's spouse and
dependents, of less than deleted text begin $660,000 in 2004 deleted text end new text begin $1,700,000 in 2017 new text end and an amount in subsequent
years which is adjusted for inflation by multiplying that amount by the cumulative inflation
rate as determined by the United States All-Items Consumer Price Index.

Sec. 54.

Minnesota Statutes 2016, section 41B.03, subdivision 3, is amended to read:

Subd. 3.

Eligibility for beginning farmer loans.

(a) In addition to the requirements
under subdivision 1, a prospective borrower for a beginning farm loan in which the authority
holds an interest, must:

(1) have sufficient education, training, or experience in the type of farming for which
the loan is desired;

(2) have a total net worth, including assets and liabilities of the borrower's spouse and
dependents, of less than deleted text begin $350,000 in 2004 deleted text end new text begin $800,000 in 2017 new text end and an amount in subsequent
years which is adjusted for inflation by multiplying that amount by the cumulative inflation
rate as determined by the United States All-Items Consumer Price Index;

(3) demonstrate a need for the loan;

(4) demonstrate an ability to repay the loan;

(5) certify that the agricultural land to be purchased will be used by the borrower for
agricultural purposes;

(6) certify that farming will be the principal occupation of the borrower;

(7) agree to participate in a farm management program approved by the commissioner
of agriculture for at least the first three years of the loan, if an approved program is available
within 45 miles from the borrower's residence. The commissioner may waive this requirement
for any of the programs administered by the authority if the participant requests a waiver
and has either a four-year degree in an agricultural program or certification as an adult farm
management instructor; and

(8) agree to file an approved soil and water conservation plan with the Natural Resources
Conservation Service office in the county where the land is located.

(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower is
subject to penalty as determined by the authority.

Sec. 55.

Minnesota Statutes 2016, section 41B.043, subdivision 5, is amended to read:

Subd. 5.

Total net worth limit.

A prospective borrower for an agricultural improvement
loan in which the authority holds an interest must have a total net worth, including assets
and liabilities of the borrower's spouse and dependents, of less than deleted text begin $350,000 in 2004 deleted text end new text begin
$800,000 in 2017 new text end and an amount in subsequent years which is adjusted for inflation by
multiplying that amount by the cumulative inflation rate as determined by the United States
All-Items Consumer Price Index.

Sec. 56.

Minnesota Statutes 2016, section 41B.045, subdivision 2, is amended to read:

Subd. 2.

Loan participation.

The authority may participate in a livestock expansion
loan with an eligible lender to a livestock farmer who meets the requirements of section
41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in a livestock
operation. A prospective borrower must have a total net worth, including assets and liabilities
of the borrower's spouse and dependents, of less than deleted text begin $660,000 in 2004 deleted text end new text begin $1,700,000 in 2017 new text end
and an amount in subsequent years which is adjusted for inflation by multiplying that amount
by the cumulative inflation rate as determined by the United States All-Items Consumer
Price Index.

Participation is limited to 45 percent of the principal amount of the loan or $525,000,
whichever is less. The interest rates and repayment terms of the authority's participation
interest may be different from the interest rates and repayment terms of the lender's retained
portion of the loan.

Sec. 57.

Minnesota Statutes 2016, section 41C.02, subdivision 12, is amended to read:

Subd. 12.

Low or moderate net worth.

"Low or moderate net worth" means:

(1) for an individual, an aggregate net worth of the individual and the individual's spouse
and minor children of less than deleted text begin $350,000 in 2004 deleted text end new text begin $800,000 in 2017 new text end and an amount in
subsequent years which is adjusted for inflation by multiplying that amount by the cumulative
inflation rate as determined by the United States All-Items Consumer Price Index; or

(2) for a partnership, an aggregate net worth of all partners, including each partner's net
capital in the partnership, and each partner's spouse and minor children of less than twice
the amount set for an individual in clause (1). However, the aggregate net worth of each
partner and that partner's spouse and minor children may not exceed the amount set for an
individual in clause (1).

Sec. 58.

Minnesota Statutes 2016, section 116V.01, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The Agricultural Utilization Research Institute is
established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue Code
of 1986, as amended. The Agricultural Utilization Research Institute shall conduct onsite
and applied research, promote the establishment of new products and product uses and the
expansion of existing markets for the state's agricultural commodities and products, including
direct financial and technical assistance for deleted text begin Minnesota deleted text end entrepreneurs. The institute must
establish or maintain facilities and work with private and public entities to leverage the
resources available to achieve maximum results for Minnesota agriculture.

Sec. 59.

Minnesota Statutes 2016, section 116V.01, subdivision 2, is amended to read:

Subd. 2.

Board of directors.

The board of directors of the Agricultural Utilization
Research Institute is comprised of:

(1) the chairs of the senate and the house of representatives standing committees with
jurisdiction over agriculture finance or the chair's designee;

(2) two representatives of statewide farm organizations;

(3) two representatives of agribusiness; deleted text begin and
deleted text end

(4) three representatives of the commodity promotion councils new text begin ; and
new text end

new text begin (5) two at-large representatives new text end .

Sec. 60.

Minnesota Statutes 2016, section 116V.01, subdivision 3, is amended to read:

Subd. 3.

Duties.

(a) The Agricultural Utilization Research Institute shall:

(1) identify development opportunities for agricultural products;

(2) implement a program that identifies techniques to meet those opportunities;

(3) monitor and coordinate research among the public and private organizations and
individuals specifically addressing procedures to transfer new technology to businesses,
farmers, and individuals;

(4) deleted text begin provide research grants to public and private educational institutions and other
organizations that are undertaking basic and applied research to promote the development
of emerging agricultural industries;
deleted text end

deleted text begin (5) deleted text end assist organizations and individuals with market analysis and product marketing
implementations;

deleted text begin (6) deleted text end new text begin (5) new text end to the extent possible earn and receive revenue from contracts, patents, licenses,
royalties, grants, fees-for-service, and memberships;

deleted text begin (7) deleted text end new text begin (6) new text end work with the Department of Agriculture, the United States Department of
Agriculture, the Department of Employment and Economic Development, and other agencies
to maximize marketing opportunities locally, nationally, and internationally; and

deleted text begin (8) deleted text end new text begin (7) new text end leverage available funds from federal, state, and private sources to develop new
markets and value added opportunities for Minnesota agricultural products.

(b) The Agricultural Utilization Research Institute board of directors shall have the sole
approval authority for establishing agricultural utilization research priorities, requests for
proposals to meet those priorities, awarding of grants, hiring and direction of personnel,
and other expenditures of funds consistent with the adopted and approved mission and goals
of the Agricultural Utilization Research Institute. The actions and expenditures of the
Agricultural Utilization Research Institute are subject to audit. The institute shall annually
report by February 1 to the senate and house of representatives standing committees with
jurisdiction over agricultural policy and funding. The report must list projects initiated,
progress on projects, and financial information relating to expenditures, income from other
sources, and other information to allow the committees to evaluate the effectiveness of the
institute's activities.

(c) The Agricultural Utilization Research Institute shall convene a Renewable Energy
Roundtable, the purpose of which shall be to further the state's leadership on bioenergy
issues.

(i) The Renewable Energy Roundtable shall consist of one representative appointed by
the commissioner of the Minnesota Department of Agriculture, one appointed by the
commissioner of the Minnesota Department of Commerce, one appointed by the chancellor
of the Minnesota State Colleges and Universities, and one appointed by the president of the
University of Minnesota. The appointees must have expertise relevant to bioenergy.

(ii) The board shall oversee the activities and shall provide staff to assist the Renewable
Energy Roundtable.

(iii) The Renewable Energy Roundtable will engage professionals and experts from
private, government, academic, and nonprofit entities across the state to identify bioenergy
opportunities and collaborate with a broad group of interested parties to identify future
alternative courses of action the state can take to sustain a long-term competitive position
in renewable energy through the year 2025. The Renewable Energy Roundtable will consult,
advise, and review projects and initiatives funded by the state as directed by the
administration and the legislature.

Sec. 61.

Minnesota Statutes 2016, section 116V.01, subdivision 4, is amended to read:

Subd. 4.

Staff.

The board of directors shall hire deleted text begin staff deleted text end new text begin an executive director new text end for the
Agricultural Utilization Research Institute. Persons employed by the Agricultural Utilization
Research Institute are not state employees and may participate in state retirement, deferred
compensation, insurance, or other plans that apply to state employees generally and are
subject to regulation by the state Campaign Finance and Public Disclosure Board.

Sec. 62.

Minnesota Statutes 2016, section 116V.01, subdivision 7, is amended to read:

Subd. 7.

Bylaws.

The board of directors shall adopt bylaws necessary for the conduct
of the business of the institute consistent with this section. The corporation must publish
bylaws and amendments to the bylaws deleted text begin in the State Register deleted text end new text begin on the board's Web site new text end .

Sec. 63.

Minnesota Statutes 2016, section 116V.01, subdivision 10, is amended to read:

Subd. 10.

Meetings.

The board of directors shall meet at least twice each year and may
hold additional meetings upon giving notice in accordance with the bylaws of the institute.
Board meetings are subject to chapter 13D, except section 13D.01, subdivision 6, as it
pertains to financial information, business plans, income and expense projections, customer
lists, market and feasibility studies, and trade secret information as defined by section 13.37,
subdivision 1, paragraph (b). new text begin For the purposes of section 13D.015, the board of directors is
a state board.
new text end

Sec. 64.

Minnesota Statutes 2016, section 116V.01, subdivision 11, is amended to read:

Subd. 11.

Conflict of interest.

A director, employee, or officer of the institute may not
deleted text begin participate in deleted text end new text begin advocate for new text end or vote on a decision of the board relating to an organization in
which the director new text begin , employee, or officer new text end has either a direct or indirect financial interest.

Sec. 65.

Minnesota Statutes 2016, section 116V.01, subdivision 13, is amended to read:

Subd. 13.

Funds.

The institute may accept and use gifts, grants, or contributions from
any source. Unless otherwise restricted by the terms of a gift or bequest, the board may sell,
exchange, or otherwise dispose of and invest or reinvest the money, securities, or other
property given or bequested to it. The principal of these funds, the income from them, and
all other revenues received by it from any nonstate source deleted text begin must be placed in the depositories
the board determines and is deleted text end new text begin are new text end subject to expenditure for the board's purposes. new text begin Receipts
and new text end expenditures of more than deleted text begin $25,000 deleted text end new text begin $50,000 new text end must be approved by the deleted text begin full deleted text end board.

Sec. 66.

Minnesota Statutes 2016, section 116V.01, subdivision 14, is amended to read:

Subd. 14.

Accounts; audits.

The institute may establish funds and accounts that it finds
convenient. The board shall provide for and pay the cost of an deleted text begin independent annual deleted text end audit of
its official books and records by the legislative auditor subject to sections 3.971 and 3.972.
new text begin In addition, the board shall provide and pay for the cost of an annual financial audit of its
official books and records by an independent audit firm. new text end A copy of deleted text begin this deleted text end new text begin the annual financial new text end
audit shall be filed with the deleted text begin secretary of state deleted text end new text begin Office of the Attorney General, Charities
Division new text end .

For purposes of this section, "institute" means the Agricultural Utilization Research
Institute established under this section and "board of directors" means the board of directors
of the Agricultural Utilization Research Institute.

Sec. 67.

Minnesota Statutes 2016, section 223.17, subdivision 8, is amended to read:

Subd. 8.

Bond disbursement.

(a) The bond required under subdivision 4 shall provide
for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand,
the purchase price of grain sold to the grain buyer in the manner provided by subdivision
5, including loss caused by failure to pay within the time required. The bond shall be
conditioned upon the grain buyer being duly licensed as provided herein.

(b) The commissioner shall promptly determine the validity of all claims filed and notify
the claimants of the determination. An aggrieved party may appeal the commissioner's
determination by requesting, within 15 days, that the commissioner initiate a contested case
proceeding. In the absence of such a request, or following the issuance of a final order in a
contested case, the surety company shall issue payment promptly to those claimants entitled
to payment. The commissioner may apply to the district court for an order appointing a
trustee or receiver to manage and supervise the operations of the grain buyer in default. The
commissioner may participate in any resulting court proceeding as an interested party.

(c) If a grain buyer has become liable to more than one producer by reason of breaches
of the conditions of the bond and the amount of the bond is insufficient to pay the entire
liability to all producers entitled to the protection of the bond, the proceeds of the bond shall
be apportioned among the bona fide claimants.

(d) The bond shall not be cumulative from one licensing period to the next. The maximum
liability of the bond shall be its face value for the licensing period.

new text begin (e) The bond disbursement shall occur 200 days from the date the commissioner publishes
a public notice of a claim. At the end of this time period, the commissioner shall initiate
bond payments on all valid claims received by the commissioner.
new text end

Sec. 68.

Minnesota Statutes 2016, section 232.22, subdivision 7, is amended to read:

Subd. 7.

Bond disbursement.

(a) The bond of a public grain warehouse operator must
be conditioned that the public grain warehouse operator issuing a grain warehouse receipt
is liable to the depositor for the delivery of the kind, grade and net quantity of grain called
for by the receipt.

(b) Upon notification of default, the commissioner shall determine the validity of all
claims and notify all parties having filed claims. Any aggrieved party may appeal the
commissioner's determination by requesting, within 15 days, that the commissioner initiate
a contested case proceeding. In the absence of such a request, or following the issuance of
a final order in a contested case, the surety company shall issue payment to those claimants
entitled to payment. If the commissioner determines it is necessary, the commissioner may
apply to the district court for an order appointing a trustee or receiver to manage and supervise
the operations of the grain warehouse operator in default. The commissioner may participate
in any resulting court proceeding as an interested party.

(c) For the purpose of determining the amount of bond disbursement against all valid
claims under a condition one bond, all grain owned or stored in the public grain warehouse
shall be sold and the combined proceeds deposited in a special fund. Payment shall be made
from the special fund satisfying the valid claims of grain warehouse receipt holders.

(d) If a public grain warehouse operator has become liable to more than one depositor
or producer by reason of breaches of the conditions of the bond and the amount of the bond
is insufficient to pay, beyond the proceeds of the special fund, the entire liability to all valid
claimants, the proceeds of the bond and special fund shall be apportioned among the valid
claimants on a pro rata basis.

(e) A bond is not cumulative from one licensing period to the next. The maximum
liability of the bond shall be its face value for the licensing period.

new text begin (f) The bond disbursement shall occur 200 days from the date the commissioner publishes
a public notice of a claim. At the end of this time period, the commissioner shall initiate
bond payments on all valid claims received by the department.
new text end

Sec. 69. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision
9a, to Minnesota Statutes, section 18B.01, subdivision 9d, and correct any cross-references
related to the renumbering.
new text end

Sec. 70. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, and 22a; 18B.285;
25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15; and 41D.01, subdivision
4, new text end new text begin are repealed.
new text end

ARTICLE 2

DAIRY LAW REORGANIZATION

Section 1.

Minnesota Statutes 2016, section 13.6435, subdivision 8, is amended to read:

Subd. 8.

Dairy products.

Financial and production information obtained by the
commissioner of agriculture to administer chapter deleted text begin 32 deleted text end new text begin 32D new text end are classified under section deleted text begin 32.71,
subdivision 2 deleted text end new text begin 32D.25, subdivision 2 new text end .

Sec. 2.

new text begin [32D.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Adulterated. new text end

new text begin "Adulterated" means an item is covered by section 34A.02.
new text end

new text begin Subd. 3. new text end

new text begin Cheese. new text end

new text begin "Cheese" includes all varieties of cheese, cheese spreads, cheese foods,
cheese compounds, or processed cheese made or manufactured in whole or in part from
milk.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture.
new text end

new text begin Subd. 5. new text end

new text begin Dairy farm. new text end

new text begin "Dairy farm" means a place or premises where one or more lactating
animals, including cows, goats, sheep, water buffalo, camels, or other hoofed mammals,
are kept, and from which all or a portion of the milk produced at the place or premises is
delivered, sold, or offered for sale.
new text end

new text begin Subd. 6. new text end

new text begin Dairy plant. new text end

new text begin "Dairy plant" means any place where a dairy product is
manufactured, processed, or handled and includes milk-receiving stations, creameries,
cheese factories, condenseries, milk plants, transfer stations, and marketing organizations
that purchase milk and cream directly from producers for resale and other establishments,
as those terms are used in this chapter and chapters 17, 27, and 31; but does not include any
place where dairy products are not processed but sold at whole or retail only.
new text end

new text begin Subd. 7. new text end

new text begin Dairy product. new text end

new text begin "Dairy product" means milk as defined by Code of Federal
Regulations, title 21, cream, any product or by-product of either, or any commodity among
the principal constituents or ingredients of which is one or a combination of two or more
of them, as determined by standards, grades, or rules adopted by the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Fluid milk products. new text end

new text begin "Fluid milk products" means yogurt, cream, sour cream,
half and half, reconstituted half and half, concentrated milk, concentrated milk products,
skim milk, nonfat milk, chocolate flavored milk, chocolate flavored dairy drink, chocolate
flavored reconstituted milk, chocolate flavored reconstituted dairy drink, buttermilk, cultured
buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted
cream, reconstituted skim milk, homogenized milk, and any other fluid milk product made
by the addition of any substance to milk or to any of the fluid milk products enumerated
under this subdivision or by rule adopted by the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Goat milk. new text end

new text begin "Goat milk" means a whole, fresh, clean lacteal secretion free from
colostrum, obtained by the complete milking of one or more healthy goats.
new text end

new text begin Subd. 10. new text end

new text begin Milk. new text end

new text begin "Milk" means the normal lacteal secretion, practically free of colostrum,
obtained by the milking of one or more healthy hoofed mammals. Hoofed mammals include
but are not limited to cattle, water buffalo, sheep, goats, yaks, and camels.
new text end

new text begin Subd. 11. new text end

new text begin Milk for manufacturing purposes. new text end

new text begin "Milk for manufacturing purposes" means
milk produced for processing and manufacturing into products for human consumption but
not subject to Grade A or comparable requirements.
new text end

new text begin Subd. 12. new text end

new text begin Milk-receiving station. new text end

new text begin "Milk-receiving station" means a dairy plant where
raw milk for pasteurization or for manufacture is received, handled, or prepared for
processing or for resale as unpasteurized milk or fluid milk products.
new text end

new text begin Subd. 13. new text end

new text begin Minnesota farmstead cheese. new text end

new text begin "Minnesota farmstead cheese" means cheese
manufactured in Minnesota on the same farm that the milk used in its manufacturing is
produced.
new text end

new text begin Subd. 14. new text end

new text begin Misbranded or misbranding. new text end

new text begin "Misbranded" or "misbranding" means an item
is covered by section 34A.03.
new text end

new text begin Subd. 15. new text end

new text begin Pasteurization or pasteurized. new text end

new text begin (a) "Pasteurization," "pasteurized," and similar
terms mean:
new text end

new text begin (1) the process of heating every particle of milk or dairy product in properly operated
equipment approved by the commissioner to a temperature of at least 145 degrees Fahrenheit
and holding the temperature for at least 30 minutes;
new text end

new text begin (2) the process of heating every particle of milk or dairy product in properly operated
equipment approved by the commissioner to a temperature of at least 161 degrees Fahrenheit
and holding the temperature for at least 15 seconds; or
new text end

new text begin (3) the process of heating every particle of milk or dairy product in properly operated
equipment approved by the commissioner to the temperatures and holding for the times as
the commissioner may prescribe by rule, containing standards more stringent than those
imposed by this subdivision.
new text end

new text begin (b) Nothing in this subdivision shall be construed as excluding any other process that
has been demonstrated to be equally efficient and is approved by the commissioner.
new text end

new text begin Subd. 16. new text end

new text begin Recombinant bovine growth hormone or rBGH. new text end

new text begin "Recombinant bovine
growth hormone" or "rBGH" means a growth hormone intended for use in bovine animals
that has been produced through recombinant DNA techniques, described alternately as
recombinant bovine somatotropin or rBST.
new text end

Sec. 3.

new text begin [32D.02] INSPECTION AUTHORITY AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Enforcement. new text end

new text begin The commissioner is charged with the enforcement of this
chapter.
new text end

new text begin Subd. 2. new text end

new text begin Power and authority. new text end

new text begin For the purpose of enforcing this chapter, the
commissioner and the commissioner's assistants, agents, and employees have the power
and authority granted under sections 31.02 to 31.171.
new text end

new text begin Subd. 3. new text end

new text begin Inspection of dairies. new text end

new text begin At times the commissioner determines proper, the
commissioner shall inspect all places where dairy products are made, stored, or served as
food for purchase, and all places where hoofed mammals are kept by persons engaged in
the sale of milk, and shall require the correction of all unsanitary conditions and practices.
new text end

new text begin Subd. 4. new text end

new text begin Refusal of inspection. new text end

new text begin A refusal or physical threat that prevents the completion
of an inspection or neglect to obey a lawful direction of the commissioner or the
commissioner's agent given while carrying out this section may result in the suspension of
the offender's permit or certification or other enforcement as deemed appropriate by the
commissioner. The offender is required to meet with a representative of the offender's plant
or marketing organization and a representative of the commissioner within 48 hours of
receiving notice, excluding holidays or weekends, or the suspension or enforcement action
shall take effect. A producer may request a hearing before the commissioner or the
commissioner's agent if a serious concern exists relative to the retention of the offender's
permit or certification to sell milk.
new text end

new text begin Subd. 5. new text end

new text begin Inspection service. new text end

new text begin To ensure compliance with the laws and rules governing
the production, handling, processing, and sale of milk and dairy products, the commissioner
is authorized, through a duly trained and qualified milk inspector, to inspect milk and milk
products and the premises and plants where milk and milk products are produced, handled,
and processed. Inspection services must acquaint the processor and producers with the
requirements for a Grade A or manufacturing grade milk supply for preliminary inspection
to determine if a processor has brought the processor's farms and plants to the state of
compliance that qualifies the processor's products for the Grade A or manufacturing grade
label, and for continuous inspection to ensure that a farm or plant and all products from a
farm or plant are in compliance with this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Field service. new text end

new text begin Grade A or manufacturing grade processors shall provide a
continuous field service to assist producers who sell their milk to the processor's plant to
attain and maintain compliance with this chapter. A person who performs field service must
first obtain a permit from the commissioner. A person desiring to secure a permit must apply
on a form provided by the commissioner, and before a permit is issued the commissioner
shall determine that the applicant is competent and qualified to perform field service. The
permit is not transferable to another person and may be revoked for due cause after the
holder of the permit has been given the opportunity for a hearing. The permit holder must
be given a notice in writing of the time and place of the hearing at least seven days before
the date of the hearing.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement standards. new text end

new text begin The standards in this chapter and rules adopted under
this chapter by the commissioner shall be the only standards for use in Minnesota. No
municipality or other subdivision of state government shall provide, by ordinance, more
stringent or comprehensive standards than are contained in this chapter and rules adopted
by the commissioner under this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Rules. new text end

new text begin (a) The commissioner shall by rule adopt identity, production, and
processing standards for both Grade A and manufacturing grade milk and dairy products.
new text end

new text begin (b) In the exercise of the authority to establish requirements for Grade A milk and milk
products, the commissioner adopts definitions, standards of identity, and requirements for
production and processing contained in the most current version of the Grade A Pasteurized
Milk Ordinance, and its associated documents, of the United States Department of Health
and Human Services in a manner provided for and not in conflict with law.
new text end

new text begin (c) Producers of milk, other than Grade A, shall conform to the standards contained in
subparts B, C, D, E, and F of the United States Department of Agriculture Agricultural
Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and
its Production and Processing, except that the commissioner shall develop methods by which
producers are able to comply with the standards without violation of religious beliefs.
new text end

new text begin Subd. 9. new text end

new text begin Certified industry inspection. new text end

new text begin Industry personnel may be certified to perform
any inspection, to the extent allowed by federal law and provided that performance of the
inspections is consistent with rules adopted in subdivision 8.
new text end

new text begin Subd. 10. new text end

new text begin Fees; dairy services account. new text end

new text begin (a) All fees and penalties collected under this
chapter shall be deposited into the dairy services account in the agricultural fund and used
for the purposes of administering this chapter.
new text end

new text begin (b) Unless otherwise noted, all fees are payable by a processor or marketing organization
and are invoiced on July 1 of each year for Grade A and January 1 of each year for
manufacturing grade, and if not paid within 30 days of the due date, inspection service may
be discontinued. If a farm discontinues the production of milk within six months of the
billing date, a request for a refund based on inspection services not received may be made
by the processor or by the marketing organization on behalf of its patrons. This request must
be made in writing by June 30 for manufacturing grade or by December 31 for Grade A.
Upon approval by the commissioner, refunds must be made to the processor or marketing
organization.
new text end

Sec. 4.

new text begin [32D.03] BULK MILK HAULER AND SAMPLER LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License requirement. new text end

new text begin A person collecting milk from a dairy farm and
transporting the milk by bulk pickup and not in individual containers from farm to plant
must obtain a bulk milk hauler and sampler license.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin A person desiring to secure a bulk milk hauler and sampler license
must apply on a form provided by the commissioner. Before the license is issued, the
commissioner shall determine that the applicant is competent and qualified.
new text end

new text begin Subd. 3. new text end

new text begin Term of license; transferability. new text end

new text begin An initial bulk milk hauler and sampler
license issued by the commissioner expires on the following December 31 and is not
transferable. A renewal bulk milk hauler and sampler license is not transferable, is valid for
two years, and expires on December 31 of the second year.
new text end

new text begin Subd. 4. new text end

new text begin Fees and penalties. new text end

new text begin The fee for an initial or renewal bulk milk hauler and
sampler license is $60. The fee shall be paid to the commissioner before the commissioner
issues an initial or renewal bulk milk hauler and sampler license. If a bulk milk hauler and
sampler license renewal is not applied for on or before January 1, a fee of $30 shall be
imposed. A person who does not renew a bulk milk hauler and sampler license within one
year following its December 31 expiration date, except those persons who do not renew the
bulk milk hauler and sampler license while engaged in active military service, shall be
required to prove competency and qualification pursuant to section 32D.07 before a bulk
milk hauler and sampler license is issued. The commissioner may require any other person
who renews a bulk milk hauler and sampler license to prove competency and qualification
in the same manner.
new text end

new text begin Subd. 5. new text end

new text begin Suspension or cancellation. new text end

new text begin The commissioner is empowered to conduct
enforcement action, suspend, or cancel any bulk milk hauler and sampler license pursuant
to section 34A.06.
new text end

Sec. 5.

new text begin [32D.04] MILK TANK TRUCKS.
new text end

new text begin All farm bulk milk pickup tankers, milk transports, and tankers used to transport milk
products must be inspected and obtain a permit issued by the commissioner at least once
every 12 months. The owner or operator must pay a $25 permit fee per tanker to the
commissioner. The commissioner may appoint a person the commissioner deems qualified
to make inspections.
new text end

Sec. 6.

new text begin [32D.05] GRADE A DAIRY FARM PERMITTING; WATER WELL
DISTANCE REQUIREMENT.
new text end

new text begin (a) No milk producer may sell or distribute milk from a dairy farm as Grade A milk
without a valid Grade A dairy farm permit issued by the commissioner.
new text end

new text begin (b) A dairy farmer who wishes to be permitted to produce Grade A milk may not be
denied the Grade A permit solely because of provisions in rules adopted by the commissioner
requiring a minimum distance between a water well and dairy farm. To be eligible for a
Grade A permit, the following conditions must be met:
new text end

new text begin (1) the water well must have been in place prior to January 1, 1974;
new text end

new text begin (2) the water well must comply with all other rules applicable to the well, other than the
distance requirement; and
new text end

new text begin (3) water from the well must be tested at least once every 12 months. More frequent
testing may be required in compliance with guidelines established by the commissioner if
water test results fail to meet water quality requirements.
new text end

Sec. 7.

new text begin [32D.06] GRADE A DAIRY FARM INSPECTION; FEES.
new text end

new text begin (a) As provided in section 32D.02, subdivision 4, the commissioner shall provide
inspection service to any milk producer who wishes to market Grade A milk and is in
compliance with the requirement for the production of Grade A milk. Grade A inspections
shall be completed at least once every six months.
new text end

new text begin (b) The fee for inspections must be no more than $50 per farm, paid annually by the
processor or by the marketing organization on behalf of its patrons.
new text end

new text begin (c) For a farm requiring a reinspection in addition to the required biannual inspections,
an additional fee must be paid by the processor or by the marketing organization on behalf
of its patrons. The fee for reinspection of a farm with fewer than 100 hoofed milk-producing
animals is $60 per reinspection. The fee for reinspection of a farm with 100 or more hoofed
milk-producing animals is $150 per reinspection.
new text end

Sec. 8.

new text begin [32D.07] MANUFACTURING GRADE DAIRY FARM CERTIFICATION.
new text end

new text begin A producer who wishes to sell milk for manufacturing purposes must obtain from the
commissioner an annual Grade B farm certification.
new text end

Sec. 9.

new text begin [32D.08] MANUFACTURING GRADE DAIRY FARM INSPECTION; FEES.
new text end

new text begin (a) A producer selling milk for manufacturing purposes must be inspected at least once
every 12 months.
new text end

new text begin (b) The fee for the certification inspection must not be more than $25 per producer, to
be paid annually by the processor or the marketing organization on behalf of its patrons.
new text end

new text begin (c) For a producer requiring more than one inspection for certification, a reinspection
fee of $45 must be paid by the processor or by the marketing organization on behalf of its
patrons.
new text end

Sec. 10.

new text begin [32D.09] DAIRY PLANT LICENSING AND PERMITTING.
new text end

new text begin Subdivision 1. new text end

new text begin Licensing. new text end

new text begin A dairy plant must obtain a license as required under section
28A.04.
new text end

new text begin Subd. 2. new text end

new text begin Permitting. new text end

new text begin No person shall operate a dairy plant in this state unless the dairy
plant, equipment, and water supply and plumbing system have been first approved by the
commissioner and a permit issued to operate the same. A permit may be revoked by the
commissioner for due cause pursuant to section 34A.06.
new text end

new text begin Subd. 3. new text end

new text begin Approval. new text end

new text begin At the time of filing the application for a permit, the applicant shall
submit to the commissioner duplicate floor plans of the plant that show the placement of
equipment, the source of water supply and method of distribution, a detailed pasteurization
flow chart, and the location of the plumbing system, including the disposal of wastes. New
construction or alteration of an existing dairy plant shall be made only with the approval of
the commissioner and duplicate plans for the construction or alteration shall be submitted
to the commissioner for approval. The fee for approval services is $45 per hour of department
staff time spent in the approval process.
new text end

new text begin Subd. 4. new text end

new text begin Farmstead cheese. new text end

new text begin (a) The commissioner or the commissioner's designee shall
issue an additional permit to a dairy plant that desires to use the name "Minnesota farmstead
cheese" upon application made by the dairy plant for use of the name, provided the cheese
meets the definition in section 32D.01, subdivision 13.
new text end

new text begin (b) No cheese or packaged cheese that is sold, offered or exposed for sale, or held in
possession with intent to sell at either retail or wholesale in this state may be labeled or
described as "Minnesota farmstead cheese" unless it meets the criteria in section 32D.01,
subdivision 13, and the manufacturer has obtained the designated permit.
new text end

Sec. 11.

new text begin [32D.10] INSPECTIONS.
new text end

new text begin (a) Inspections of Grade A plants must be completed at least once every three months.
A pasteurization plant requesting Grade A inspection must pay an annual inspection fee of
no more than $500.
new text end

new text begin (b) Inspections of manufacturing plants that process milk or milk products other than
Grade A must be completed at least once every six months. A manufacturing plant that
pasteurizes milk or milk by-products must pay an annual fee based on the number of
pasteurization units. The fee must not exceed $140 per unit.
new text end

Sec. 12.

new text begin [32D.11] PROCUREMENT FEE.
new text end

new text begin A dairy plant operator in this state must pay to the commissioner on or before the 18th
of each month a fee of 1.1 cents per hundredweight of milk purchased the previous month.
If a milk producer in this state ships milk out of the state for sale, the producer must pay
the fee to the commissioner unless the purchaser voluntarily pays the fee. Producers who
ship milk out of state and processors must submit to the commissioner monthly reports
related to milk purchases along with the appropriate procurement fee. The commissioner
shall have access to all relevant purchase or sale records as necessary to verify compliance
with this section and may require the producer or purchaser to produce records as necessary
to determine compliance.
new text end

Sec. 13.

new text begin [32D.12] SELECTED PRODUCTS FEE.
new text end

new text begin (a) A manufacturer must pay to the commissioner a fee for fluid milk processed and
milk used in the manufacture of fluid milk products sold for retail sale in Minnesota in an
amount not less than five cents and not more than nine cents per hundredweight as set by
the commissioner's order. No change within any 12-month period may be in excess of one
cent per hundredweight.
new text end

new text begin (b) A processor must report quantities of milk processed under paragraph (a) on forms
provided by the commissioner. Processor fees must be paid monthly. The commissioner
may require the production of records as necessary to determine compliance with this
paragraph.
new text end

new text begin (c) The commissioner may create within the department a dairy consulting program to
provide assistance to dairy producers who are experiencing problems meeting the sanitation
and quality requirements of the dairy laws and rules. The commissioner may use money
appropriated from the dairy services account to pay for the program authorized in this
paragraph.
new text end

Sec. 14.

new text begin [32D.13] MILK QUALITY STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Visible adulteration or odors. new text end

new text begin Milk shall not be visibly adulterated, or
have any objectionable odor, or be abnormal in appearance or consistency.
new text end

new text begin Subd. 2. new text end

new text begin Grade A raw milk. new text end

new text begin (a) The bacterial count of Grade A raw milk from producers
must not exceed 100,000 bacteria per milliliter prior to commingling with other producer
milk.
new text end

new text begin (b) After commingling with other producer milk, the bacteria count must not exceed
300,000 per milliliter prior to pasteurization.
new text end

new text begin Subd. 3. new text end

new text begin Grade A pasteurized milk and fluid milk products. new text end

new text begin (a) The bacterial count
of Grade A pasteurized milk and fluid milk products, at any time after pasteurization until
delivery, must not exceed 20,000 bacteria per milliliter.
new text end

new text begin (b) The coliform count of Grade A pasteurized milk and fluid milk products must not
exceed ten bacteria per milliliter except that bulk tank transport shipments must not exceed
100 per milliliter.
new text end

new text begin Subd. 4. new text end

new text begin Raw milk, other than Grade A. new text end

new text begin The bacterial count of raw milk from producers
must not exceed 500,000 bacteria per milliliter prior to commingling with other producer
milk.
new text end

new text begin Subd. 5. new text end

new text begin Pasteurized milk, other than Grade A. new text end

new text begin The bacterial count of pasteurized
milk other than Grade A pasteurized milk, at any time after pasteurization until delivery,
must not exceed 20,000 bacteria per milliliter.
new text end

new text begin Subd. 6. new text end

new text begin Exceptions. new text end

new text begin Bacterial count standards do not apply to sour cream, cultured
buttermilk, and other cultured fluid milk products.
new text end

new text begin Subd. 7. new text end

new text begin Rules and standards. new text end

new text begin The commissioner may prescribe standards and rules
adopted in accordance with law more stringent than those imposed by this section.
new text end

new text begin Subd. 8. new text end

new text begin Somatic cell count. new text end

new text begin (a) The somatic cell count, as determined by a direct
microscopic somatic cell count or an electronic somatic cell count, must not exceed 750,000
cells per milliliter for Grade A raw milk and raw milk other than Grade A. Notwithstanding
any federal standard, the somatic cell count of goat milk must not exceed 1,500,000 cells
per milliliter.
new text end

new text begin (b) The commissioner may prescribe standards and rules adopted in accordance with
law more stringent than those imposed by this subdivision.
new text end

new text begin Subd. 9. new text end

new text begin Temperature. new text end

new text begin If milk is received or collected from a dairy farm more than two
hours after the most recent milking, the temperature of the milk shall not exceed 45 degrees
Fahrenheit (7 degrees Celsius). If the milk consists of a blend of milk from two or more
milkings, and the milk is received or collected less than two hours after the most recent
milking, the blend temperature shall not exceed 50 degrees Fahrenheit (10 degrees Celsius).
new text end

new text begin Subd. 10. new text end

new text begin Industry enforcement. new text end

new text begin A dairy plant is not required to reject milk shipments
in response to a violation of subdivisions 2 to 9 unless the commissioner suspends or revokes
the dairy plant permit or milk producer's Grade A permit or manufacturing grade certification.
new text end

Sec. 15.

new text begin [32D.14] OFFICIAL PRODUCER SAMPLES.
new text end

new text begin (a) An official producer sample for each producer must be analyzed for bacteria, somatic
cell count, temperature, and antibiotic residues at least once per month in four out of every
six months. Official producer samples must be collected and analyzed without providing
the producer with prior notification of the sampling date.
new text end

new text begin (b) Official producer sample results must be inclusive of all animals from which milk
is collected and sold on the day of sampling.
new text end

new text begin (c) Official producer sample results must be collected by a licensed sampler.
new text end

Sec. 16.

new text begin [32D.15] MONTHLY REPORTING.
new text end

new text begin (a) In at least four out of every six months, the dairy plant that procures milk from the
producer must report to the commissioner at least one representative test result for bacteria,
somatic cell count, temperature, and antibiotic residues. The result shall be reported within
seven days after the laboratory obtains the test results.
new text end

new text begin (b) A laboratory that performs the tests required under this section for a dairy plant may
report the test results for the dairy plant.
new text end

new text begin (c) A dairy plant or laboratory shall report test results under this section in an electronic
form approved by the department or using an approved alternative.
new text end

Sec. 17.

new text begin [32D.16] ENFORCEMENT.
new text end

new text begin The commissioner shall suspend a producer's permit or certification if three of the last
five official producer samples exceed the applicable standard. The commissioner shall
provide warning of a pending suspension when two of the last four producer samples exceed
the applicable standard.
new text end

Sec. 18.

new text begin [32D.17] LABORATORY CERTIFICATION.
new text end

new text begin (a) A laboratory and its methods are required to be approved or certified prior to testing
Grade A milk samples. The results of approved or certified laboratories may be used by
official regulatory agencies in enforcement of requirements for milk and milk products. The
approval or certification remains valid unless suspended or revoked by the commissioner
for failure to comply with the requirements of this chapter.
new text end

new text begin (b) Certified or approved laboratories must receive a permit from the commissioner.
The permit remains valid without renewal unless suspended or revoked by the commissioner
for failure to comply with the requirements of this chapter.
new text end

new text begin (c) Satisfactory analytical procedures and results for split samples, the nature, number,
and frequency of which shall be in accordance with rules established by the commissioner,
shall be required of a certified laboratory for retention of its certification and permit.
new text end

new text begin (d) An application for initial certification or biennial recertification, or for recertification
following suspension or revocation of a permit, shall be accompanied by an annual fee
based on the number of analyses approved and the number of specific tests for which they
are approved. The fee must not be less than $150 nor more than $200 for each analysis
approved and not less than $35 nor more than $50 for each test approved. The commissioner
may annually adjust assessments within the limits established by this subdivision to meet
the cost recovery of the services required by this section.
new text end

Sec. 19.

new text begin [32D.18] MILK BOUGHT BY WEIGHT; TESTING METHODS.
new text end

new text begin Subdivision 1. new text end

new text begin Milk fat, protein, and solids not fat bases of payment; tests. new text end

new text begin (a) Milk
must be purchased from producers using a formula based on one or more of the following:
new text end

new text begin (1) payment of a standard rate with uniform differentials for milk testing above or below
3.5 percent milk fat;
new text end

new text begin (2) payment of a standard rate for the pounds of milk fat contained in the milk;
new text end

new text begin (3) payment of a standard rate for the pounds of protein contained in the milk;
new text end

new text begin (4) payment of a standard rate for the pounds of nonfat solids contained in the milk; or
new text end

new text begin (5) payment of standard rates based on other attributes of value in the milk.
new text end

new text begin (b) In addition, an adjustment may be made on the basis of milk quality and other
premiums. Testing procedures for determining the percentages of milk fat, protein, and
nonfat solids must comply with the methods approved by the Association of Analytical
Chemists or be as adopted by rule.
new text end

new text begin Subd. 2. new text end

new text begin Apparatus to conform to specifications. new text end

new text begin Glassware, test bottles, pipettes, acid
measures, chemicals, scales, and other apparatus used in the operation of these tests shall
conform to the specifications for the particular test method.
new text end

new text begin Subd. 3. new text end

new text begin Penalties for violations. new text end

new text begin A person who:
new text end

new text begin (1) employs any test other than those tests authorized by rule adopted by the
commissioner, or any methods other than the standard official methods for determining the
milk fat content of milk or cream;
new text end

new text begin (2) incorrectly samples milk or cream purchased or sold;
new text end

new text begin (3) incorrectly weighs milk or cream purchased or sold;
new text end

new text begin (4) incorrectly grades milk or cream purchased or sold;
new text end

new text begin (5) makes a false entry of the weight, test result, or grade of any milk or cream purchased
or sold;
new text end

new text begin (6) incorrectly samples, weighs, tests, or records or reports weights or tests of skim milk
or buttermilk purchased or sold;
new text end

new text begin (7) underreads the tests;
new text end

new text begin (8) falsifies the reading of the tests;
new text end

new text begin (9) manipulates the reading of the tests; or
new text end

new text begin (10) falsely states, certifies, or uses in the purchase or sale of milk or cream a misreading
of such tests, whether the tests or actual reading have been made by the person or by any
other person,
new text end

new text begin is guilty of a misdemeanor.
new text end

Sec. 20.

new text begin [32D.19] ADULTERATED DAIRY PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purchase and sale prohibition. new text end

new text begin A person may not sell or knowingly
buy adulterated dairy products.
new text end

new text begin Subd. 2. new text end

new text begin Manufacture of food for human consumption from adulterated milk or
cream prohibited. new text end

new text begin An article of food for human consumption may not be manufactured
from adulterated milk or cream, except as provided in the Federal Food, Drug, and Cosmetic
Act, United States Code, title 21, section 301 et seq., and related federal regulations.
new text end

new text begin Subd. 3. new text end

new text begin Adulterated milk. new text end

new text begin For purposes of this section, milk is adulterated if it:
new text end

new text begin (1) is drawn in a filthy or unsanitary place;
new text end

new text begin (2) is drawn from unhealthy or diseased animals;
new text end

new text begin (3) contains water in excess of that normally found in milk;
new text end

new text begin (4) contains a substance that is not a normal constituent of the milk except as allowed
in this chapter; or
new text end

new text begin (5) contains drug residues or other chemical or biological substances in amounts above
the tolerances or safe levels established by rule.
new text end

new text begin Subd. 4. new text end

new text begin Drug residues. new text end

new text begin (a) Before processing milk, all bulk milk pickup tankers must
be tested for the presence of beta lactam drug residues and for other residues as determined
necessary by the commissioner. Milk received from a producer in other than a bulk milk
pickup tanker is also subject to this section.
new text end

new text begin (b) Bulk milk tankers that confirm positive for beta lactam drug residues or other residues
must follow up with producer sample testing of all producers contained on the positive load.
new text end

new text begin (c) Individual producer samples must be tested for the presence of beta lactam drug
residues at least once a month for four out of every six-month period. Results of these tests
must be reported to the commissioner as official producer sample results using established
electronic reporting procedures.
new text end

new text begin (d) Drug residue testing methods must be those approved by the Food and Drug
Administration (FDA) and the National Conference of Interstate Milk Shipments or listed
in the FDA's current version of M-a-85.
new text end

new text begin (e) All drug residue samples testing positive must be reported to the commissioner or
the commissioner's designee within 24 hours. The report must include how and where the
milk was disposed of, and the volume, the responsible producer, and the possible cause of
the violative residue. All milk sample residue results must be recorded and retained for six
months by the receiving plant for examination by the commissioner or the commissioner's
designee.
new text end

new text begin Subd. 5. new text end

new text begin Penalties. new text end

new text begin (a) The permit or certification of a milk producer identified as having
a positive drug residue is immediately suspended. The producer must not ship milk while
the permit or certification is suspended.
new text end

new text begin (b) The producer's permit or certification may be reinstated after being sampled by the
commissioner or the commissioner's designee and testing negative on the sample.
new text end

new text begin (c) A milk producer may not change plants within 30 days, without permission of the
commissioner, after receiving notification from the commissioner of a residue violation.
new text end

new text begin (d) The producer that is identified with the drug residue violation is responsible for the
value of all milk on any load that tests positive for drug residues and any costs associated
with its disposal. Payment shall be made to the purchaser of the milk.
new text end

new text begin (e) For the first and second violation within a 12-month period, the dairy producer must,
within 30 days of the date of the residue:
new text end

new text begin (1) meet with the dairy inspector to review potential causes of the adulteration; and
new text end

new text begin (2) complete the designated drug residue prevention educational program with a licensed
veterinarian and submit the signed certificate to the commissioner.
new text end

new text begin (f) Failure to comply with the requirements for the first and second violation listed in
paragraph (e) may result in suspension of the producer's permit or certification until the
conditions in paragraph (e) are met.
new text end

new text begin (g) For the third or subsequent violation within a 12-month period, the commissioner
may initiate proceedings for further enforcement action, that may include a penalty of up
to a 30-day permit or certification suspension. In lieu of a suspension, the producer may be
assessed an administrative penalty of up to $1,000 or the value of milk sold during the
intended suspension period.
new text end

new text begin Subd. 6. new text end

new text begin Other forms of adulteration. new text end

new text begin A milk producer who violates subdivision 3 is
subject to any of the following penalties:
new text end

new text begin (1) the permit or certification of a milk producer identified as having adulterated milk
is immediately suspended. The producer may not ship milk while the permit or certification
is suspended;
new text end

new text begin (2) the producer that is identified with the adulterated milk violation is responsible for
the value of all milk on any load that is contaminated by the adulterant and any costs
associated with its disposal. Payment shall be made to the purchaser of the milk;
new text end

new text begin (3) the producer's permit or certification may be reinstated after the commissioner receives
adequate verification that the milk is no longer adulterated; and
new text end

new text begin (4) the commissioner may, after evaluation of the severity and repetitive nature of the
adulteration, initiate additional enforcement action in the form of permit or certification
suspension for up to 30 days or in lieu of suspension, an administrative penalty of up to
$1,000, or the value of the milk sold during the intended suspension period for each violation.
new text end

new text begin Subd. 7. new text end

new text begin Civil penalty. new text end

new text begin A person other than a milk producer who causes milk to be
adulterated is subject to a civil penalty of up to $1,000.
new text end

new text begin Subd. 8. new text end

new text begin Appeals. new text end

new text begin A dairy producer may appeal an adulteration violation by sending
written notice to the commissioner within ten days of receipt of the notice of a violation.
The appeal must contain a description of why the producer wishes to appeal the violation.
new text end

Sec. 21.

new text begin [32D.20] LIMITATION ON SALE.
new text end

new text begin Subdivision 1. new text end

new text begin Pasteurization. new text end

new text begin No milk or fluid milk products shall be sold, offered or
exposed for sale, or held in possession for sale for the purpose of human consumption in
fluid form in this state unless the milk or fluid milk product has been pasteurized and cooled,
as defined in section 32D.01, subdivision 15, provided that this section shall not apply to
milk, cream, or skim milk occasionally secured or purchased for personal use by a consumer
at the place or farm where the milk is produced.
new text end

new text begin Subd. 2. new text end

new text begin Labels. new text end

new text begin (a) Pasteurized milk or fluid milk products offered or exposed for sale
or held in possession for sale shall be labeled or otherwise designated as pasteurized milk
or pasteurized fluid milk products, and in the case of fluid milk products the label shall also
state the name of the specific product.
new text end

new text begin (b) Milk and dairy products must be labeled with the plant number where the product
was produced, or if produced in a state where official plant numbers are not assigned, the
name of the manufacturer and the address of the plant where it was manufactured.
new text end

Sec. 22.

new text begin [32D.21] COOLING AFTER PASTEURIZATION.
new text end

new text begin Immediately following pasteurization, all milk and fluid milk products shall be cooled
in properly operated equipment approved by the commissioner to a temperature of 45 degrees
Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered;
provided, however, that if the milk or fluid milk product is to be cultured immediately after
pasteurization, then cooling may be delayed until after the culturing process is completed;
provided further that the commissioner may prescribe by rule standards more stringent than
those imposed by this section.
new text end

Sec. 23.

new text begin [32D.22] MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS.
new text end

new text begin No person, firm, or corporation shall manufacture, transport, sell, offer, or expose for
sale or have in possession with intent to sell at retail to a consumer any cheese that has not
been (1) manufactured from milk or milk products that have been pasteurized; (2) subjected
to a heat treatment equivalent to pasteurization during the process of manufacturing or
processing; or (3) subjected to an aging process where it has been kept for at least 60 days
after manufacture at a temperature no lower than 35 degrees Fahrenheit.
new text end

Sec. 24.

new text begin [32D.23] RECOMBINANT BOVINE GROWTH HORMONE LABELING.
new text end

new text begin Subdivision 1. new text end

new text begin Labeling. new text end

new text begin Products offered for wholesale or retail sale in this state that
contain milk, cream, or any product or by-product of milk or cream that have been processed
and handled pursuant to this section may be labeled with an rBGH statement that is not
false or misleading and in accordance with the federal labeling standards. Products offered
for wholesale or retail sale in this state need not contain any further label information relative
to the use of rBGH in milk production.
new text end

new text begin Subd. 2. new text end

new text begin Affidavit; records. new text end

new text begin (a) A dairy plant purchasing milk or cream to be used in
products labeled with rBGH claims pursuant to subdivision 1 must provide an affidavit
from each producer that states that all cows used in the producer's dairy operations have
not and will not be treated with rBGH, without advanced written notice of at least 30 days.
new text end

new text begin (b) The affidavit must be signed by the producer or authorized representative. Affidavits
must be kept on file for not less than two years after receiving written notice that rBGH use
status will change.
new text end

new text begin (c) If a plant chooses to process and handle only milk or milk products sourced from
cows who have not been treated with rBGH, the plant, as an alternative to providing
individual producer affidavits, may provide one affidavit to certify that the plant has
procedures in place to verify that all producers are not using rBGH. A copy of the written
procedure that describes this verification process must also be provided with the plant
affidavit.
new text end

new text begin (d) All affidavits and corresponding records must be available for inspection by the
commissioner.
new text end

new text begin (e) Dairy plants supplying milk or cream to a processor or manufacturer of a product to
be labeled pursuant to subdivision 1, for use in that product, shall supply a certification to
that processor or manufacturer stating that producers of the supplied milk or cream have
executed and delivered affidavits pursuant to this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Separation of nontreated cows and milk. new text end

new text begin Milk or cream from
non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant
to subdivision 1 must be kept fully separate from any other milk or cream through all stages
of storage, transportation, and processing until the milk or resulting dairy products are in
final packaged form in a properly labeled container. Records of the separation must be kept
by the dairy plant and product processor or manufacturer at all stages and made available
to the commissioner for inspection.
new text end

Sec. 25.

new text begin [32D.24] DAIRY TRADE PRACTICES; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to sections 32D.24 to
32D.28.
new text end

new text begin Subd. 2. new text end

new text begin Basic cost. new text end

new text begin (a) "Basic cost," for a processor, means the actual cost of the raw
milk plus 75 percent of the actual processing and handling costs for a selected class I or
class II dairy product.
new text end

new text begin (b) Basic cost, for a wholesaler, means the actual cost of the selected class I or class II
dairy product purchased from the processor or another wholesaler.
new text end

new text begin (c) Basic cost, for a retailer, means the actual cost of the selected class I or class II dairy
product purchased from a processor or wholesaler.
new text end

new text begin Subd. 3. new text end

new text begin Bona fide charity. new text end

new text begin "Bona fide charity" means a corporation, trust, fund, or
foundation organized and operated exclusively for religious, charitable, scientific, literary,
or educational purposes.
new text end

new text begin Subd. 4. new text end

new text begin Processor. new text end

new text begin "Processor" means a person engaged in manufacturing or processing
selected class I or class II dairy products in the person's own plant for sale in Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Producer. new text end

new text begin "Producer" means a person who operates a dairy herd or herds in
Minnesota producing milk or cream commercially and whose milk or cream is sold to, or
received or handled by, a distributor or processor. Producer does not include an incorporated
or unincorporated association of producers.
new text end

new text begin Subd. 6. new text end

new text begin Responsible person. new text end

new text begin "Responsible person" means the business entity that
makes payment to an individual Grade A or Grade B milk producer.
new text end

new text begin Subd. 7. new text end

new text begin Selected class I dairy products. new text end

new text begin "Selected class I dairy products" means milk
for human consumption in fluid form and all other class I dairy products as defined by the
Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40,
or successor orders.
new text end

new text begin Subd. 8. new text end

new text begin Selected class II dairy products. new text end

new text begin "Selected class II dairy products" means
milk for human consumption processed into fluid cream, eggnog, yogurt, and all other class
II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal
Regulations, title 7, part 1030.40, or successor orders.
new text end

new text begin Subd. 9. new text end

new text begin Sell at retail; sale at retail; retail sales. new text end

new text begin "Sell at retail," "sale at retail," or
"retail sales" means a retail sale or offer for retail sale of a selected class I or class II dairy
product for ultimate consumption or use.
new text end

new text begin Subd. 10. new text end

new text begin Sell at wholesale; sale at wholesale; wholesale sales. new text end

new text begin "Sell at wholesale,"
"sale at wholesale," or "wholesale sales" means sale or offer for sale of a selected class I
dairy product for purposes of resale or further processing or manufacturing but does not
include a producer selling or delivering milk to a processor.
new text end

new text begin Subd. 11. new text end

new text begin Wholesaler. new text end

new text begin "Wholesaler" means a person including a distributor in the
business of making sales of selected class I or class II dairy products at wholesale in
Minnesota. In the case of a person making sales at both retail and wholesale, wholesaler
applies only to the sales at wholesale.
new text end

Sec. 26.

new text begin [32D.25] DUTIES AND POWERS OF COMMISSIONER; DATA PRIVACY.
new text end

new text begin Subdivision 1. new text end

new text begin Duties; rules. new text end

new text begin The commissioner shall adopt rules to implement and
administer sections 32D.24 to 32D.28.
new text end

new text begin Subd. 2. new text end

new text begin Data privacy. new text end

new text begin Financial and production information received by the
commissioner on processors, wholesalers, or retailers, including but not limited to financial
statements, fee reports, price schedules, cost documentation, books, papers, records, or other
documentation for the purpose of administration and enforcement of this chapter is classified
private data or nonpublic data pursuant to chapter 13. The classification shall not limit the
use of the information in the preparation, institution, or conduct of a legal proceeding by
the commissioner in enforcing this chapter.
new text end

Sec. 27.

new text begin [32D.26] SALES BELOW COST PROHIBITED; EXCEPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Policy; processors; wholesalers; retailers. new text end

new text begin (a) It is the intent of the
legislature to accomplish partial deregulation of milk marketing with a minimum negative
impact on small-volume retailers.
new text end

new text begin (b) A processor or wholesaler may not sell or offer for sale selected class I or class II
dairy products at a price lower than the processor's or wholesaler's basic cost.
new text end

new text begin (c) A retailer may not sell or offer for sale selected class I or class II dairy products at
a retail price lower than (1) 105 percent of the retailer's basic cost until June 30, 1994; and
(2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may not use
any method or device in the sale or offer for sale of a selected dairy product that results in
a violation of this section.
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text begin The minimum processor, wholesaler, and retailer prices of
subdivision 1 do not apply:
new text end

new text begin (1) to a sale complying with section 325D.06;
new text end

new text begin (2) to a retailer giving away selected class I and class II dairy products for free if the
customer is not required to make a purchase; or
new text end

new text begin (3) to a processor, wholesaler, or retailer giving away selected class I and class II dairy
products for free or at a reduced cost to a bona fide charity.
new text end

Sec. 28.

new text begin [32D.27] REDRESS FOR INJURY OR THREATENED INJURY.
new text end

new text begin A person injured by a violation of sections 32D.24 to 32D.28 may commence a legal
action based on the violation in a court of competent jurisdiction and may recover economic
damages and the costs of the action, including reasonable attorney fees. A person injured
or who is threatened with injury or loss by reason of violation of sections 32D.24 to 32D.28
may commence a legal action based on the violation and obtain injunctive relief in a court
of competent jurisdiction against persons involved in a violation or threatened violation of
sections 32D.24 to 32D.28 to prevent and restrain violations or threatened violations of
sections 32D.24 to 32D.28 without alleging or proving actual damages or that an adequate
remedy at law does not exist, so that injunctive relief can be obtained promptly and without
awaiting evidence of injury or actual damage. The injunctive relief does not abridge and is
not in lieu of any other civil remedy provided in sections 32D.24 to 32D.28.
new text end

Sec. 29.

new text begin [32D.28] ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT.
new text end

new text begin The provisions of section 32D.26 are suspended during the month of June each year in
honor of "Dairy Month."
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, and 12; 32.021;
32.071; 32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105;
32.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, and 3; 32.392;
32.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, and 12; 32.395;
32.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, and 5; 32.415; 32.416; 32.475;
32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3, 4, 5, 12,
13, and 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72; 32.74;
32.745; 32.75; and 32.90, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S1674-1

18B.01 DEFINITIONS.

Subd. 10a.

Genetic engineering.

"Genetic engineering" means the modification of the genetic composition of an organism using molecular techniques. This does not include selective breeding, hybridization, or nondirected mutagenesis.

Subd. 10b.

Genetically engineered pesticide.

"Genetically engineered pesticide" means an organism that has been modified through the use of genetic engineering, intended to prevent, destroy, repel, or mitigate a pest, and an organism that has been modified through the use of genetic engineering, intended for use as a plant regulator, defoliant, or desiccant.

Subd. 22a.

Release.

"Release" means the placement or use of a genetically engineered organism outside a contained laboratory, greenhouse, building, structure, or other similar facility or under other conditions not specifically determined by the commissioner to be adequately contained.

18B.285 EXPERIMENTAL GENETICALLY ENGINEERED PESTICIDE PRODUCT REGISTRATION.

Subdivision 1.

Requirement.

(a) A person may not use, distribute, or conduct release experiments with a genetically engineered pesticide in any amount in the state until it is registered under this section or section 18B.26. Use, distribution, or release of a genetically engineered pesticide must be registered under this section until the commissioner determines by rule or order that the genetically engineered pesticide may be subject to section 18B.26. Experimental genetically engineered pesticide product registrations expire on December 31 of each year and may be renewed on or before that date.

(b) After reviewing a completed application, the commissioner may issue an experimental genetically engineered pesticide product registration if the commissioner determines that the applicant has adequately demonstrated that the proposed release does not have the potential for unreasonable adverse effects on the environment. The commissioner may prescribe terms and conditions, including, but not limited to, the period for the experimental genetically engineered pesticide product registration, the amount or number of genetically engineered pesticide product to be used, monitoring activities, department inspection schedules, reporting of experiment results, and experiment termination procedures. A person may not violate terms or conditions of a registration issued under this section. After an experimental genetically engineered pesticide product registration is issued, the commissioner may revoke or change the registration at any time if the commissioner finds that its terms or conditions are being violated or are inadequate to avoid unreasonable adverse effects on the environment.

(c) The commissioner may deny issuance of an experimental genetically engineered pesticide product registration if the commissioner determines that the use to be made of the pesticide under the proposed terms and conditions may cause unreasonable adverse effects on the environment.

Subd. 2.

Application.

A person must file an application for experimental genetically engineered pesticide product registration with the commissioner. An application to register an experimental genetically engineered pesticide product must include:

(1) the name and address of the applicant;

(2) any United States Environmental Protection Agency regulatory application or approval document required under federal law or rule;

(3) the purpose or objectives of the product;

(4) an experimental genetically engineered pesticide product use label;

(5) the name, address, and telephone number of cooperators or participants in this state;

(6) the amount of material to be shipped or used in this state; and

(7) other information requested by the commissioner.

Subd. 3.

Application fee.

An application for registration of an experimental genetically engineered pesticide product must be accompanied by a nonrefundable application fee of $125.

25.371 GOOD MANUFACTURING PRACTICES CERTIFICATE FOR COMMERCIAL FEED AND FEED INGREDIENTS.

Subdivision 1.

Definition of words and terms.

In addition to the definitions in section 25.33, for the purpose of this section, the terms defined in this subdivision have the meanings given them.

(a) "Adulteration" means the presence of any poisonous or deleterious substance at a level that may render feed or feed ingredients injurious to human or animal health, as provided in section 25.37, paragraph (a).

(b) "Establishment" includes, but is not limited to, buildings, structures, facilities, equipment, and conveyances that receive, store, manufacture, process, package, label, transport, or distribute feed or feed ingredients.

(c) "Pest" means any objectionable animal, including, but not limited to, bats, birds, rodents, insects, and insect larvae.

Subd. 3.

Personnel.

(a) Persons working in direct contact with feed and feed ingredients must conform to good hygienic practices to minimize the risk of adulteration.

(b) Persons who receive, store, manufacture, process, package, label, sample, transport, or distribute feed or feed ingredients must be trained for the persons' areas of responsibility.

Subd. 4.

Establishments.

(a) Establishments must be of a size, construction, and design to facilitate routine maintenance and cleaning.

(b) The grounds of establishments must be maintained in a condition that minimizes pest infestation of feed or feed ingredients.

Subd. 5.

Maintenance and housekeeping.

(a) Establishments must be kept in sufficient repair and condition to minimize the risk of adulteration.

(b) Establishments must be cleaned in a manner and at a frequency that minimizes the risk of adulteration.

(c) Establishments must implement procedures that are effective in minimizing pest infestation of feed or feed ingredients.

(d) Substances not approved for use in feed or feed ingredients must be received, stored, and used in a manner that minimizes the risk of adulteration, and in accordance with applicable laws and regulations. These substances must be physically separated from work areas and equipment used for the production or storage of feed and feed ingredients.

Subd. 6.

Equipment.

(a) All equipment, including scales, metering devices, and mixers must be of a suitable size, design, construction, precision, and accuracy for the equipment's intended purpose, and to minimize the risk of adulteration.

(b) All equipment, including scales, metering devices, and mixers must be designed to facilitate inspection and cleaning, and must be properly maintained and operated to minimize the risk of adulteration.

(c) All equipment must be constructed and maintained so as to minimize the risk of lubricants and coolants becoming adulterants in feed or feed ingredients.

(d) All scales and metering devices must be tested for accuracy upon installation and at least annually thereafter.

(e) All mixers must be tested to demonstrate the capability of the equipment to produce a homogeneous mix upon installation and periodically thereafter to ensure proper function. Mixers must be operated utilizing procedures that provide for proper mixing and proper mixing times as demonstrated by testing.

(f) Records sufficient to document the testing of equipment identified in paragraphs (d) and (e) must be maintained until a subsequent test is conducted or for one year from the date of the test, whichever is longer.

Subd. 7.

Receiving and storage for further manufacture.

Specifications and procedures effective in minimizing the risk of adulteration must be established and implemented to govern the acceptance, rejection, and storage of inbound feed or feed ingredients intended for further manufacturing of feed or feed ingredients. The procedures must include the following:

(1) feed or feed ingredients must be visually inspected during receiving to confirm identity and check required labeling;

(2) feed or feed ingredients to be used in the further manufacture of feed or feed ingredients must be stored in a manner that maintains the identity and minimizes the risk of adulteration;

(3) cleanout procedures must be established and implemented for equipment, conveyances, and storage structures or containers that are effective in minimizing the risk of adulteration of feed or feed ingredients;

(4) inventory practices, including inventory rotation, must be established and implemented for feed or feed ingredients to minimize the risk of adulteration; and

(5) records must be maintained identifying the immediate previous source, quantity, type or name, and date received for each feed or feed ingredient for at least one year from the date of disposition.

Subd. 8.

Manufacturing.

(a) A feed or feed ingredient that is considered adulterated must not be used in the manufacture of feed or feed ingredients unless made safe for the feed or feed ingredient's intended use.

(b) Procedures effective in minimizing the risk of adulteration and ensuring safety and identity must be established and implemented for the manufacture of feed or feed ingredients. The procedures must include the following:

(1) a description of the manufacturing operation, which may include, but is not limited to, feed or feed ingredient formulation, mixing, and production practices;

(2) measures effective in minimizing manufacturing errors that may result in adulteration of feed or feed ingredients. The measures must include, but are not limited to:

(i) cleanout practices, which may include sequencing, flushing, or other methods; and

(ii) measures to minimize the inclusion of physical adulterants, including metal, in feed or feed ingredients.

(c) Records sufficient to document the production history of the feed or feed ingredient manufactured in the establishment must be maintained for at least one year from the date of disposition.

Subd. 9.

Packaging.

(a) Packaged feed or feed ingredients must be packaged in a manner that maintains identity and minimizes the risk of adulteration.

(b) Bags and totes used as packaging for feed or feed ingredients must not be reused unless cleaned using effective and documented cleanout procedures.

(c) Records sufficient to document these cleanout procedures must be maintained for at least one year from the date of disposition.

Subd. 10.

Labeling.

(a) A label or other unique identifier must be affixed to, or accompany feed or feed ingredients to maintain identity and facilitate safe and effective use.

(b) Labels must be stored, handled, and used in a manner that minimizes errors.

(c) Obsolete labels must be discarded promptly.

Subd. 11.

Storage of finished feed or feed ingredients.

(a) Finished feed or feed ingredients must be stored in a manner that minimizes the risk of adulteration. The bin, bulk tank, or other location where feed or feed ingredients are stored must be clearly identified.

(b) Inventory practices, including inventory rotation, must be established and implemented for feed or feed ingredients to minimize the risk of adulteration.

Subd. 12.

Inspection, sampling, and testing of incoming and finished feed or feed ingredients for adulterants.

(a) Finished feed or feed ingredients must be visually inspected for the presence of visible adulterants and verification of identity.

(b) When sampling and testing of feed or feed ingredients is performed by the establishment to monitor for adulteration, test results must be reviewed by trained personnel. Test results that indicate feed or feed ingredients are adulterated must be investigated by the establishment. Investigations may include, but are not limited to, review of:

(1) ingredient specifications used in the development of the formula;

(2) formula;

(3) production records; and

(4) sampling and testing methods.

(c) Records must be kept for at least one year after the investigation and review of test results for adulterants, and of any corrective action or actions taken when adulterants are detected. Records must not be used as the sole basis for official enforcement actions or penalties by the commissioner.

Subd. 13.

Transportation of feed or feed ingredients.

Feed or feed ingredients must be transported utilizing methods that minimize the risk of adulterations, including, but not limited to, the following:

(1) conveyances used to transport feed or feed ingredients must be inspected for cleanliness and structural integrity prior to loading;

(2) feed, feed ingredients, or other materials or substances that may pose a risk of adulterating feed or feed ingredients must not be loaded onto the same conveyance unless measures are taken to minimize risk; and

(3) records must be maintained for each feed or feed ingredient identifying the immediate subsequent recipient, quantity, type or name, unique identifier if available, and date shipped for at least one year from the date of disposition.

Subd. 14.

Voluntary recall; withdrawal.

(a) Sufficient records and other information concerning the identity and disposition of feed or feed ingredients must be maintained for at least one year from the date of disposition to permit the rapid and effective recall from the marketplace or withdrawal from feeding if a feed or feed ingredient is found to be adulterated.

(b) Voluntary recalls of feed or feed ingredients should be guided by procedures outlined by the United States Food and Drug Administration in the Code of Federal Regulations, title 21, section 7.

Subd. 15.

Expiration.

Subdivisions 1 and 3 to 14 expire upon the United States Food and Drug Administration's adoption of rules regarding preventative controls for animal feed.

32.01 DEFINITIONS.

Subdivision 1.

Terms.

Unless the language or context clearly indicates that a different meaning is intended, the words defined in this section, shall for the purposes of this chapter, have the meanings given to them.

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of agriculture.

Subd. 6.

Dairy plant.

"Dairy plant" means any place where a dairy product is manufactured, processed, or handled and includes milk-receiving stations, creameries, cheese factories, condenseries, milk plants, transfer stations, cream stations, marketing organizations not operating dairy plants, but purchasing milk and cream directly from producers for resale, and other establishments, as those terms are used in this chapter and chapters 17, 27, 31, and 33; but does not include a dairy farm or an establishment where no dairy products are processed, but dairy products are sold at wholesale or retail only.

Subd. 8.

Overrun.

"Overrun" is the difference between the weight of any given amount of pure butterfat and the weight of the butter manufactured therefrom; and this difference, ascertained in any case, divided by the given amount of pure butterfat in such case and multiplied by 100, is the "percentage of overrun" in the manufacture of butter.

Subd. 9.

Milk-receiving station.

"Milk-receiving station" means any dairy plant where raw milk for pasteurization or for manufacture is received, handled, or prepared for processing or for resale as unpasteurized milk or fluid milk products.

Subd. 10.

Dairy product.

"Dairy product" means milk as defined by Code of Federal Regulations, title 21, cream, any product or by-product of either, or any commodity among the principal constituents or ingredients of which is one or a combination of two or more of them, as determined by standards, grades, or rules duly adopted by the commissioner.

Subd. 11.

Adulterated.

"Adulterated" means an item is covered by section 34A.02.

Subd. 12.

Misbranded.

"Misbranded" or "misbranding" means an item is covered by section 34A.03.

32.021 DUTIES AND POWERS OF COMMISSIONER.

Subdivision 1.

Enforcement.

The commissioner shall be charged with the enforcement of the provisions of this chapter.

Subd. 2.

Power and authority.

For the purpose of enforcing the provisions of chapter 32 and amendatory acts the commissioner and the commissioner's assistants, agents, and employees, shall have the power and authority granted under the provisions of sections 31.02 to 31.171.

32.071 MILK AND CREAM BUYER AND TESTER, LICENSE.

No person shall operate a milk or cream testing apparatus for the purpose of determining the percentage of butterfat in milk or cream, and no person shall grade milk or cream either by apparatus or by an organoleptic method for the purpose of purchasing the same either personally or for others without first securing a license from the commissioner as hereinafter provided.

32.072 APPLICATION FOR LICENSE.

Any person desiring to secure such license shall make application therefor on forms to be prepared and provided by the commissioner, and before a license is issued the commissioner shall determine that the applicant is competent and qualified to use such testing apparatus and to make accurate tests with them, and to make accurate organoleptic tests. No person who is not a resident of the United States shall be licensed under the provisions of sections 32.071 to 32.078.

32.073 LICENSES; EXAMINATIONS, QUALIFICATIONS.

A grading and testing license shall be issued by the commissioner to a person making application therefor, after the commissioner has determined that the applicant is competent and qualified to grade and test milk and cream, and that the applicant understands and is familiar with the provisions of sections 32.01 to 32.486. Any conviction for violating sections 32.01 to 32.486 or the standards, grades, and rules adopted by the commissioner shall be taken into consideration in determining whether or not the applicant is competent and qualified.

32.074 LICENSED DAIRY PLANT; LICENSED PERSON TO GRADE AND TEST.

Every milk and cream buyer shall maintain at each licensed dairy plant where milk and cream is purchased, a licensed person to grade and test milk and cream. Any person gathering cream or milk and transporting it by bulk pickup and not in individual containers from farm to plant shall have a license to grade and sample such milk and cream.

32.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.

An initial license issued by the commissioner expires on the following December 31st and is not transferable. A renewal license is valid for two years and expires on December 31 of the second year. The fee for an initial or renewal license is $60. The fee shall be paid to the commissioner before the commissioner issues an initial or renewal license. If a license renewal is not applied for on or before January 1 of each year, a penalty of $30 shall be imposed. A person who does not renew a license within one year following its December 31 expiration date, except those persons who do not renew such license while engaged in active military service, shall be required to prove competency and qualification pursuant to section 32.073, before a license is issued. The commissioner may require any other person who renews a license to prove competency and qualification in the same manner. All license fees and penalties received by the commissioner shall be deposited in the dairy services account in the agricultural fund.

32.076 OFFENSES.

The grading or testing of each lot of milk and cream by an unlicensed person shall constitute a separate offense.

32.078 SUSPENSION OR CANCELLATION.

The commissioner is empowered to suspend or cancel any license issued pursuant to the provisions of sections 32.071 to 32.076 after a hearing upon written notice containing the grounds therefor, which notice shall be served personally upon the licensee or the licensee's agent at least five days prior to such hearing.

32.10 LICENSES; SUSPENSION, REVOCATION.

When any person licensed under sections 28A.04 and 32.10 shall have been convicted of a violation of any provision of any law of this state relating to the manufacture or sale of butter or cheese or other dairy products, or the operation of dairy plants, or other establishments in which dairy products or goat milk, as defined in section 32.391, subdivision 1, are manufactured, processed, or handled, or for transportation, or of any provision of any rule of the commissioner made and promulgated under the provisions of law or there has been a continued course of conduct by such licensee or any agent, representative or employee of such licensee which deceives or defrauds producers or consumers, the license (1) may be suspended for the time stated in order of suspension, (2) may be revoked or canceled by the commissioner, or (3) upon application for a renewal license, the commissioner may refuse to issue the same, upon ten days' written notice with opportunity to be heard. The commissioner shall promulgate procedural rules governing the notice, hearing, evidence, findings, order, and record to be kept in such hearings, in the manner provided by law. Upon conviction of a second or any subsequent offense, the commissioner may revoke and cancel such license with or without notice of hearing, in the commissioner's discretion, and in such case the commissioner shall not issue another license for the operation of such plant or establishment for a term of one year from the date of such cancellation or revocation.

32.102 PROSECUTIONS.

It shall be the duty of every prosecuting officer to whom the commissioner shall report any violation of sections 28A.04 and 32.10 to cause appropriate proceedings to be instituted and to be prosecuted in the proper courts, without delay, for the enforcement as in such cases therein provided. All fines imposed and paid thereunder shall be paid into the state treasury.

32.103 INSPECTION OF DAIRIES.

(a) At times the commissioner determines proper, the commissioner shall cause to be inspected all places where dairy products are made, stored, or served as food for pay, and all places where cows are kept by persons engaged in the sale of milk, and shall require the correction of all insanitary conditions and practices found. During routine inspections or as necessary, the commissioner shall inspect for:

(1) evidence of use of rBGH in violation of section 32.75, by producers providing affidavits of nontreatment under that section; and

(2) mercury manometers in violation of section 116.92.

(b) A refusal or physical threat that prevents the completion of an inspection or neglect to obey a lawful direction of the commissioner or the commissioner's agent given while carrying out this section may result in the suspension of the offender's permit or certification. The offender is required to meet with a representative of the offender's plant or marketing organization and a representative of the commissioner within 48 hours excluding holidays or weekends or the suspension will take effect. A producer may request a hearing before the commissioner or the commissioner's agent if a serious concern exists relative to the retention of the offender's permit or certification to sell milk.

32.105 MILK PROCUREMENT FEE.

Each dairy plant operator within the state must pay to the commissioner on or before the 18th of each month a fee of 1.1 cents per hundredweight of milk purchased the previous month. If a milk producer within the state ships milk out of the state for sale, the producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.

Producers who ship milk out of state or processors must submit monthly reports as to milk purchases along with the appropriate procurement fee to the commissioner. The commissioner may have access to all relevant purchase or sale records as necessary to verify compliance with this section and may require the producer or purchaser to produce records as necessary to determine compliance.

The fees collected under this section must be deposited in the dairy services account in the agricultural fund. Money in the account, including interest earned, is appropriated to the commissioner to administer this chapter.

32.106 MULTIUSE DAIRY PRODUCT CONTAINERS.

Subdivision 1.

Cleaning.

Before being reused, dairy product containers which may be used more than once shall be cleaned in accordance with rules promulgated in the manner provided by law by the commissioner, except, that in no instance shall such rules serve to eliminate any producers product from the market, whose present method of production, bears no evidence of endangering the health of the consumers. All rules heretofore adopted by the commissioner relating to the cleaning of dairy product containers which are in effect at the time Laws 1961, chapter 147, article 4, section 1 takes effect and which are not in conflict with this section, shall remain in effect until amended, modified, or repealed by the commissioner.

Subd. 2.

Return.

Every person, receiving any dairy product in containers which may be used more than once and which are to be returned to the sender or seller shall cause such containers to be promptly emptied, thoroughly cleansed as required by rules promulgated by the commissioner, and immediately returned.

32.21 ADULTERATED DAIRY PRODUCTS.

Subdivision 1.

Purchase and sale prohibition.

A person may not sell or knowingly buy adulterated dairy products.

Subd. 2.

Manufacture of food for human consumption from adulterated milk or cream prohibited.

An article of food for human consumption may not be manufactured from adulterated milk or cream, except as provided in section 32.22 or the Federal Food, Drug, and Cosmetic Act, United States Code, title 21, section 301 et seq., and related federal regulations.

Prior to processing milk, all bulk milk pickup tankers must be tested for the presence of beta lactum drug residues and for other residues as determined necessary by the commissioner. Test methods must be those approved by the Association of Analytical Chemists (AOAC) or under the AOAC C2 program. Bulk milk tankers testing positive must be reported to the commissioner or the commissioner's agent within 24 hours. This report must include how and where the milk was disposed of, the volume, the responsible producer, and the possible cause of the violative residue. All milk sample residue results must be recorded and retained for examination by the commissioner or the commissioner's agent for six months by the receiving plant. Milk received from a producer in other than a bulk milk pickup tanker is also subject to this section.

Subd. 3.

Adulterated milk.

For purposes of this section and section 32.22, milk is adulterated if it:

(1) is drawn in a filthy or unsanitary place;

(2) is drawn from unhealthy or diseased cows;

(3) is drawn from cows that are fed garbage or an unwholesome animal or vegetable substance;

(4) is drawn from cows within 15 days before calving, or five days after calving;

(5) contains water in excess of that normally found in milk;

(6) contains a substance that is not a normal constituent of the milk except as allowed in this chapter; or

(7) contains drug residues or other chemical or biological substances in amounts above the tolerances or safe levels established by rule or under section 32.415.

Subd. 4.

Penalties.

(a) A person, other than a milk producer, who violates this section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.

(b) A milk producer may not change milk plants within 30 days, without permission of the commissioner, after receiving notification from the commissioner under paragraph (c) or (d) that the milk producer has violated this section.

(c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is subject to clauses (1) to (3) of this paragraph.

(1) Upon notification of the first violation in a 12-month period, the producer must meet with the qualified dairy sanitarian to initiate corrective action within 30 days.

(2) Upon the second violation within a 12-month period, the producer is subject to a civil penalty of $300. The commissioner shall notify the producer by certified mail stating the penalty is payable in 30 days, the consequences of failure to pay the penalty, and the consequences of future violations.

(3) Upon the third violation within a 12-month period, the producer is subject to an additional civil penalty of $300 and possible revocation of the producer's permit or certification. The commissioner shall notify the producer by certified mail that all civil penalties owed must be paid within 30 days and that the commissioner is initiating administrative procedures to revoke the producer's permit or certification to sell milk for at least 30 days.

(d) The producer's shipment of milk must be immediately suspended if the producer is identified as an individual source of milk containing residues causing a bulk load of milk to test positive in violation of subdivision 3, clause (6) or (7). The Grade A or manufacturing grade permit must be converted to temporary status for not more than 30 days and shipment may resume only after subsequent milk has been sampled by the commissioner or the commissioner's agent and found to contain no residues above established tolerances or safe levels.

The Grade A or manufacturing grade permit may be restored if the producer completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, displays the signed certificate in the milkhouse, and sends verification to the commissioner within the 30-day temporary permit status period. If the producer does not comply within the temporary permit status period, the Grade A or manufacturing grade permit must be suspended. A milk producer whose milk supply is in violation of subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to clauses (1) to (3) of this paragraph.

(1) For the first violation in a 12-month period, the penalty is the value of all milk on the contaminated load plus any costs associated with the disposition of the contaminated load. Future pickups are prohibited until subsequent testing reveals the milk is free of drug residue. A farm inspection must be completed by a qualified dairy sanitarian and the producer to determine the cause of the residue and actions required to prevent future violations.

(2) For the second violation in a 12-month period, the penalty is the value of all milk on the contaminated load plus any costs associated with the disposition of the contaminated load. Future pickups are prohibited until subsequent testing reveals the milk is free of drug residue. A farm inspection must be completed by a qualified dairy sanitarian to determine the cause of the residue and actions required to prevent future violations.

(3) For the third or subsequent violation in a 12-month period, the penalty is the value of all milk on the contaminated load plus any costs associated with the disposition of the contaminated load. Future pickups are prohibited until subsequent testing reveals the milk is free of drug residue. The commissioner or the commissioner's agent shall also notify the producer by certified mail that the commissioner is initiating administrative procedures to revoke the producer's permit or certification to sell milk for a minimum of 30 days.

(4) If a bulk load of milk tests negative for residues and there is a positive producer sample on the load, no civil penalties may be assessed to the producer. The plant must report the positive result within 24 hours and reject further milk shipments from that producer until the producer's milk tests negative. A farm inspection must be completed by a qualified dairy sanitarian to determine the cause of the residue and actions required to prevent future violations. The department shall suspend the producer's permit and count the violation on the producer's record. The Grade A or manufacturing grade permit must be converted to temporary status for not more than 30 days during which time the producer must review the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, display the signed certificate in the milkhouse, and send verification to the commissioner. If these conditions are met, the Grade A or manufacturing grade permit must be reinstated. If the producer does not comply within the temporary permit status period, the Grade A or manufacturing grade permit must be suspended.

(e) A milk producer that has been certified as completing the "Milk and Dairy Beef Residue Prevention Protocol" within 12 months of the first violation of subdivision 3, clause (7), need only review the cause of the violation with a field service representative within three days to maintain Grade A or manufacturing grade permit and shipping status if all other requirements of this section are met.

(f) Civil penalties collected under this section must be deposited in the milk inspection services account established in this chapter.

32.212 MILK HOUSES FOR BULK TANKS.

Any producer using a bulk tank for cooling and storage of milk to be used for manufacturing purposes shall have an enclosed milk room which shall conform to the standards provided by this section. The floor shall be constructed of concrete or other impervious material, maintained in good repair, and graded to provide proper drainage. The walls and ceilings of the room shall be sealed and constructed of smooth easily cleaned material. All windows shall be screened and doors shall be self-closing. It shall be well ventilated and must meet the following requirements:

(1) The bulk tank shall not be located over a drain or under a ventilator.

(2) The hose port shall be located in an exterior wall and fitted with a tight self-closing door.

(3) Each milk room shall have an adequate supply of water readily accessible with facilities for heating the water, to insure the cleaning and sanitizing of the bulk tank, utensils and equipment and the keeping of the milk room clean.

(4) No lights shall be placed directly over the bulk tank.

(5) The bulk tank shall be properly located in the milk room for easy access to all areas for cleaning and servicing.

(6) The milkhouse shall be used only for storage of milk, milk utensils, and supplies incidental to the production of milk.

(7) This section is effective for all bulk tanks for milk produced for manufacturing purposes.

(8) No milk processor shall buy milk from any producer of milk using a bulk tank to be used for manufacturing purposes unless such producer has complied with the provisions of this section.

(9) After July 1, 1965, no person shall install a bulk tank except in a milk room or milkhouse which complies with the provisions of this section.

(10) The enforcement of this section shall be administered by the Minnesota Department of Agriculture.

(11) Any person violating any provisions of this section shall be punished by a fine of not more than $50.

32.22 SKIMMED MILK.

Notwithstanding the provisions of section 32.21, milk from which the cream has been removed, if such milk is otherwise wholesome and unadulterated, may be sold as such to makers of skimmed milk cheese, and by licensed dealers; but in the latter case only from vessels legibly marked "skimmed milk" in plain, common black letters upon a light colored background, each letter being at least one inch high and one-half inch wide, and these words being placed on the top or side of such vessel. These requirements shall not apply to skimmed or separated milk delivered to any patron of a creamery who furnishes milk thereto, but all skimmed milk from creameries and all whey from cheese factories so delivered to patrons shall first be pasteurized at a minimum temperature of 145 degrees Fahrenheit for not less than 30 minutes, or at a minimum temperature of 180 degrees Fahrenheit for continuous flow pasteurization.

32.25 MILK, CREAM, SKIM MILK, AND BUTTERMILK BOUGHT BY WEIGHT; TESTING METHODS.

Subdivision 1.

Milk fat, protein, and solids not fat bases of payment; tests.

Milk must be purchased from producers using a formula based on one or more of the following:

(1) payment of a standard rate with uniform differentials for milk testing above or below 3.5 percent milk fat;

(2) payment of a standard rate for the pounds of milk fat contained in the milk;

(3) payment of a standard rate for the pounds of protein contained in the milk;

(4) payment of a standard rate for the pounds of solids not fat contained in the milk; or

(5) payment of standard rates based on other attributes of value in the milk.

In addition, an adjustment may be made on the basis of milk quality and other premiums.

Testing procedures for determining the percentages of milk fat, protein, and solids not fat must comply with the Association of Analytical Chemists approved methods or be as adopted by rule.

Subd. 2.

Apparatus to conform to specifications.

All glassware, test bottles, pipettes, acid measures, chemicals, scales, and other apparatus used in the operation of these tests shall conform to the specifications set forth for the particular test method.

Subd. 3.

Penalties for violations.

Any person

(1) who shall employ any test other than those tests authorized by rule promulgated by the commissioner, or any methods other than the standard official methods for determining the milk fat content of milk or cream, or

(2) who shall incorrectly sample milk or cream purchased or sold, or

(3) who shall incorrectly weigh milk or cream purchased or sold, or

(4) who shall incorrectly grade milk or cream purchased or sold, or

(5) who shall make a false entry of the weight, or test result, or grade of any milk or cream purchased or sold, or

(6) who shall incorrectly sample, weigh, test, or record or report weights or tests of skim milk or buttermilk purchased or sold, or

(7) who shall underread the tests, or

(8) who shall falsify the reading of the tests, or

(9) who shall manipulate the reading of the tests, or

(10) who shall falsely state, certify, or use in the purchase or sale of milk or cream a misreading of such tests, whether the tests or actual reading shall have been made by such person or by any other person, shall be guilty of a misdemeanor.

32.391 DEFINITIONS.

Subdivision 1.

Application.

The definitions in this section apply to this chapter.

Subd. 1d.

Milk solids-not-fat.

"Milk solids-not-fat" is the portion of a milk product that is not water and is not fat as determined by procedures outlined in Standard Methods For The Examination Of Dairy Products (current edition).

Subd. 1e.

Fluid milk products.

"Fluid milk products" means cream, sour cream, half and half, reconstituted half and half, concentrated milk, concentrated milk products, skim milk, nonfat milk, chocolate flavored milk, chocolate flavored drink, chocolate flavored reconstituted milk, chocolate flavored reconstituted drink, buttermilk, cultured buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted cream, reconstituted skim milk, homogenized milk, and any other fluid milk product made by the addition of any substance to milk or to any of the above enumerated fluid milk products, when the same is declared to be a fluid milk product by rule promulgated by the commissioner.

Subd. 1f.

Goat milk.

"Goat milk" is a whole, fresh, clean lacteal secretion free from colostrum, obtained by the complete milking of one or more healthy goats.

Subd. 1g.

Sheep milk.

"Sheep milk" is a whole, fresh, clean lacteal secretion free from colostrum, obtained by the complete milking of one or more healthy sheep.

Subd. 2.

Pasteurization.

(a) The terms "pasteurization," "pasteurized," and similar terms mean:

(1) the process of heating every particle of milk, fluid milk products, goat milk, or sheep milk, in properly operated equipment approved by the commissioner, to a temperature of at least 145 degrees Fahrenheit and holding the temperature for at least 30 minutes;

(2) the process of heating every particle of milk, fluid milk products, goat milk, or sheep milk, in properly operated equipment approved by the commissioner, to a temperature of at least 161 degrees Fahrenheit and holding the temperature for at least 15 seconds; or

(3) the process of heating every particle of milk, fluid milk products, goat milk, or sheep milk, in properly operated equipment approved by the commissioner, to the temperatures and holding for the times as the commissioner may prescribe by rule adopted in accordance with law containing standards more stringent than those imposed by this subdivision.

(b) Nothing contained in this definition shall be construed as excluding any other process which has been demonstrated to be equally efficient and is approved by the commissioner.

Subd. 3.

Cooling after pasteurization.

Immediately following pasteurization, all milk, fluid milk products, goat milk, and sheep milk shall be cooled, in properly operated equipment approved by the commissioner, to a temperature of 45 degrees Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered; provided, however, that if the milk, fluid milk products, goat milk, or sheep milk is to be cultured immediately after pasteurization, then such cooling may be delayed until after the culturing process is completed; provided further that the commissioner may prescribe by rule adopted in accordance with law standards more stringent than those imposed by this subdivision.

32.392 APPROVAL OF DAIRY PLANTS.

No person shall operate a dairy plant in this state unless the dairy plant, and the equipment, water supply and plumbing system connected therewith shall have been first approved by the commissioner and a permit issued to operate the same. At the time of filing the application for a permit, the applicant shall submit to the commissioner duplicate floor plans of such plant which shall show the placement of equipment, the source of water supply and method of distribution, and the location of the plumbing system, including the disposal of wastes. All new construction or alteration of any existing dairy plants shall be made only with the approval of the commissioner and duplicate plans for such construction or alteration shall be submitted to the commissioner for approval. Any permit may be revoked by the commissioner for due cause after the holder of the permit has been given the opportunity for a hearing, in which case the holder of the permit shall be notified in writing, at least seven days prior to the date of such hearing, of the time and place of such hearing.

The fee for approval services is $45 per hour of department staff time spent in the approval process. The fees must be deposited in the dairy services account in the agricultural fund. Money in the account, including interest earned, is appropriated to the commissioner to administer this chapter.

32.393 LIMITATION ON SALE.

Subdivision 1.

Pasteurization.

No milk, fluid milk products, goat milk, or sheep milk shall be sold, advertised, offered or exposed for sale or held in possession for sale for the purpose of human consumption in fluid form in this state unless the same has been pasteurized and cooled, as defined in section 32.391; provided, that this section shall not apply to milk, cream, skim milk, goat milk, or sheep milk occasionally secured or purchased for personal use by any consumer at the place or farm where the milk is produced.

Subd. 2.

Labels.

All pasteurized milk, fluid milk products, goat milk, or sheep milk sold, offered or exposed for sale or held in possession for sale shall be labeled or otherwise designated as pasteurized milk, pasteurized fluid milk products, pasteurized goat milk, or pasteurized sheep milk, and in case of pasteurized fluid milk products the label shall also state the name of the specific product.

32.394 GRADE A PASTEURIZED MILK.

Subdivision 1.

Grade A pasteurized bacteria counts.

Grade A pasteurized milk, fluid milk products and goat milk are Grade A raw milk, fluid milk products and goat milk for pasteurization which have been pasteurized, cooled and prepared for distribution in a dairy plant approved by the commissioner, the bacterial count of which at no time after pasteurization and until delivery exceeds 20,000 bacteria per milliliter. The coliform count must not exceed ten per milliliter except that bulk tank transport shipments must not exceed 100 per milliliter. The standard plate count standard shall be omitted in the case of sour cream, cultured buttermilk, other cultured fluid milk products and cultured goat milk; provided further that the commissioner may prescribe standards and rules adopted in accordance with law more stringent than those imposed by this subdivision.

Subd. 2.

Grade A raw bacteria counts.

Grade A raw milk or goat milk for pasteurization purposes is raw milk or goat milk which complies with all the requirements for its production, the bacterial count of which does not exceed 100,000 bacteria per milliliter prior to commingling with other producer milk at which time the bacteria count must not exceed 300,000 per milliliter prior to pasteurization. The commissioner may prescribe standards and rules adopted in accordance with law more stringent than those imposed by this subdivision.

Subd. 3.

Exemption.

Nothing in this section shall be construed to mean compulsory grading of pasteurized milk, pasteurized fluid milk products, pasteurized goat milk, raw milk for pasteurization, or raw goat milk for pasteurization; such grade shall apply only to pasteurized milk, pasteurized fluid milk products, pasteurized goat milk, raw milk for pasteurization, or raw goat milk for pasteurization on which the grade is declared on the label.

Subd. 4.

Rules.

The commissioner shall by rule adopt identity, production, and processing standards for milk, milk products, and goat milk which are intended to bear the Grade A label.

In the exercise of the authority to establish requirements for Grade A milk, milk products, and goat milk, the commissioner adopts definitions, standards of identity, and requirements for production and processing contained in the "Grade A Pasteurized Milk Ordinance" of the United States Department of Health and Human Services, in a manner provided for and not in conflict with law.

Subd. 5.

Sales as Grade A milk.

No person shall sell, offer or expose for sale, any milk, milk products or goat milk labeled Grade A, unless the milk, milk products or goat milk have been produced and processed in accordance with the requirements of Minnesota law and rule. Any processor desiring to use the Grade A label on milk, milk products or goat milk shall make application for a permit to the commissioner on a form prescribed and furnished by the commissioner. The permit shall be issued by the commissioner when the commissioner has determined that the applicant has complied with the requirements of Minnesota law and rule. Permits shall not be transferable with respect to person or location. A permit may be suspended by the commissioner upon failure by the holder of the permit to comply with any of the terms of Minnesota law and rule or for interference with inspection, and may be revoked by the commissioner for due cause after the holder of the permit has been given the opportunity for a hearing, in which case the holder of the permit shall be given a notice in writing of the time and place of such hearing at least seven days before the date of such hearing.

Subd. 6.

Inspection service.

To assure compliance with the laws and rules governing the production, handling, processing, and sale of Grade A milk, Grade A milk products and Grade A goat milk, the commissioner is hereby authorized to provide a service to be performed by trained and duly qualified milk sanitarians, for the inspection of such milk, milk products and goat milk, and of the premises and plants where such milk, milk products and goat milk are produced, handled and processed. Such service shall be for acquainting the processor and producers with the requirements for a Grade A milk supply, for preliminary inspection to determine if a processor has brought the processor's farms and plant to the state of compliance which will qualify the processor's products for the Grade A label, and for continuous inspection to assure that any farms and plants so accepted and all products therefrom so labeled shall remain in compliance. Said Grade A processor shall provide a continuous field service to assist the producers, who sell their milk to the processor's plant, to attain and to maintain compliance with Grade A requirements. Any person who performs such field service for such Grade A processor first shall obtain a permit therefor from the commissioner. Any person desiring to secure such permit shall make application therefor on a form provided by the commissioner, and before a permit is issued the commissioner shall determine that the applicant is competent and qualified to perform such field service. Said permit shall not be transferable and may be revoked for due cause after the holder of the permit has been given the opportunity for a hearing in which case the holder of the permit shall be given a notice in writing of the time and place of such hearing at least seven days before the date of such hearing.

Subd. 7.

Availability.

The aforesaid state service shall be available to all processors who wish to use the Grade A label on their milk, milk products and goat milk and who have not available to them substantially equivalent service, imposed with equal effectiveness by a city within the state.

Subd. 8.

Grade A inspection fees.

A processor or marketing organization of milk, milk products, sheep milk, or goat milk who wishes to market Grade A milk or use the Grade A label must apply for Grade A inspection service from the commissioner. A pasteurization plant requesting Grade A inspection service must hold a Grade A permit and pay an annual inspection fee of no more than $500. For Grade A farm inspection service, the fee must be no more than $50 per farm, paid annually by the processor or by the marketing organization on behalf of its patrons. For a farm requiring a reinspection in addition to the required biannual inspections, an additional fee must be paid by the processor or by the marketing organization on behalf of its patrons. The fee for reinspection of a farm with fewer than 100 cows is $60 per reinspection. The fee for reinspection of a farm with 100 or more cows is $150 per reinspection.

Subd. 8a.

Laboratory certification.

A laboratory, before conducting a test the results of which are to be used in the enforcement of requirements for distribution of milk, milk products or goat milk under the Grade A label, must be certified as meeting the requirements for laboratory approval that are established by rule of the commissioner, and must receive a permit from the commissioner. The permit shall remain valid without renewal unless suspended or revoked by the commissioner for failure to comply with the requirements. Satisfactory analytical procedures and results for split samples, the nature, number and frequency of which shall be in accordance with rules established by the commissioner, shall be required of a certified laboratory for retention of its certification and permit.

An application for initial certification or biennial recertification, or for recertification following suspension or revocation of a permit shall be accompanied by an annual fee based on the number of analysts approved and the number of specific tests for which they are approved. The fee is not less than $150 or more than $200 for each analyst approved and not less than $35 or more than $50 for each test approved. The commissioner may annually adjust assessments within the limits established by this subdivision to meet the cost recovery of the services required by this subdivision.

Subd. 8b.

Manufacturing grade farm certification.

A processor or marketing organization of milk, milk products, sheep milk, or goat milk who wishes to market other than Grade A milk must apply for a manufacturing grade farm certification inspection from the commissioner. A manufacturing plant that pasteurizes milk or milk by-products must pay an annual fee based on the number of pasteurization units. This fee must not exceed $140 per unit. The fee for farm certification inspection must not be more than $25 per farm to be paid annually by the processor or by the marketing organization on behalf of its patrons. For a farm requiring more than the one inspection for certification, a reinspection fee of $45 must be paid by the processor or by the marketing organization on behalf of its patrons.

Subd. 8c.

Grade A or manufacturing grade raw milk.

Grade A or manufacturing grade raw milk must not have been stored longer than 72 hours when it is picked up at the farm by the receiving plant. The commissioner or an agent of the commissioner may waive the 72-hour time limit in a case of hardship, emergency, or natural disaster. On farms permitted or certified for bulk tank storage, the milk may only be picked up from approved bulk milk tanks in proper working order.

Subd. 8d.

Processor assessment.

(a) A manufacturer shall pay to the commissioner a fee for fluid milk processed and milk used in the manufacture of fluid milk products sold for retail sale in Minnesota in an amount not less than five cents and not more than nine cents per hundredweight as set by the commissioner's order except that beginning July 1, 2003, the fee is set at seven cents per hundredweight and thereafter no change within any 12-month period may be in excess of one cent per hundredweight.

(b) Processors must report quantities of milk processed under paragraph (a) on forms provided by the commissioner. Processor fees must be paid monthly. The commissioner may require the production of records as necessary to determine compliance with this subdivision.

(c) The commissioner may create within the department a dairy consulting program to provide assistance to dairy producers who are experiencing problems meeting the sanitation and quality requirements of the dairy laws and rules.

The commissioner may use money appropriated from the dairy services account created in subdivision 9 to pay for the program authorized in this paragraph.

Subd. 8e.

Farm bulk milk pickup tankers.

Farm bulk milk pickup tankers, milk transports, and tankers used to transport milk products must be inspected and obtain a permit issued by the commissioner annually by July 1. The owner or operator must pay a $25 permit fee per tanker to the commissioner. The commissioner may appoint such persons as the commissioner deems qualified to make inspections.

Subd. 9.

Payments; refunds; disposition.

Fees are payable by a processor or marketing organization by July 1 of each year for Grade A, and by January 1 of each year for manufacturing grade, and if not paid within 30 days of the due date, the service must be discontinued, and permission to market manufacturing grade or Grade A milk or milk products or use the Grade A label must be withdrawn. A processor may terminate payment and service without loss of the Grade A label if written notice of that intention is given prior to the due date of the payment of an assessment and if the continuous inspection of the plant is assumed by a city whose milk control ordinance is substantially equivalent to Minnesota law and rule and is enforced with equal effectiveness. If a farm discontinues the production of milk within six months of the billing date, a request for a refund based on inspection services not received may be made by the processor or by the marketing organization on behalf of its patrons. This request must be made in writing by July 1 for manufacturing grade, or by December 31 for Grade A, and on approval by the commissioner refunds must be made to the processor or marketing organization.

The fees for services performed by the activities of this section must be deposited in the agricultural fund and constitute a separate account to be known as the dairy services account, which is hereby created. Money in the account, including interest earned, is appropriated to the commissioner to administer this chapter.

Subd. 11.

Waiver of rules; water well distance requirement.

A dairy farmer who wishes to be permitted to produce grade A milk may not be denied the grade A permit solely because of provisions in rules adopted by the commissioner of health requiring a minimum distance between a water well and a dairy barn. To be eligible for a grade A permit, the following conditions must be met:

(1) the water well must have been in place prior to January 1, 1974;

(2) the water well must comply with all rules of the commissioner of health other than the minimum distance requirement; and

(3) water from the well must be tested at least once every six months in compliance with guidelines established by the commissioner of agriculture unless the water from the well meets water quality requirements for three consecutive years, in which case the water must be tested only once every 12 months until the water fails to meet water quality requirements during one of the tests.

Subd. 12.

Water testing guidelines.

The commissioner of agriculture, in consultation with the commissioner of health, shall establish guidelines for the testing required under section 32.394, subdivision 11, clause (3).

32.395 MILK OTHER THAN GRADE A.

Subdivision 1.

Pasteurized milk, fluid milk products and goat milk, other than Grade A.

Pasteurized milk, fluid milk products and goat milk, other than Grade A, are raw milk, fluid milk products and goat milk for pasteurization which have been pasteurized, cooled and prepared for distribution in a plant approved by the commissioner, the bacterial count of which at no time after pasteurization and until delivery, exceeds 50,000 bacteria per milliliter, standard plate count, as determined by averaging the logarithms of the results of the last four consecutive tests of samples taken on separate days, except that such average may be over 50,000 bacteria per milliliter if the last individual result is 50,000 bacteria per milliliter or lower, and not more than one of the last four coliform counts of which shall exceed ten per milliliter unless the last individual result is ten per milliliter or lower; provided that the standard plate count standard shall be omitted in the case of sour cream, cultured buttermilk, other cultured fluid milk products and cultured goat milk.

Subd. 2.

Raw milk or raw goat milk for pasteurization purposes, other than Grade A.

Raw milk or raw goat milk for pasteurization purposes, other than Grade A, is raw milk or raw goat milk which complies with all the requirements for its production, the bacterial count of which does not exceed 500,000 bacteria per milliliter, standard plate count or direct microscopic clump count, as determined by averaging the logarithms of the results of the last four consecutive tests of samples taken on separate days, except that such average may be over 500,000 bacteria per milliliter if the last individual result is 500,000 bacteria per milliliter or lower.

Subd. 3.

Rules.

The commissioner is authorized to promulgate by rule production and processing standards for pasteurized milk, pasteurized fluid milk products, pasteurized goat milk, raw milk for pasteurization and raw goat milk for pasteurization.

Subd. 4.

Other methods.

The commissioner may authorize, in respect to raw milk or raw goat milk for pasteurization purposes, any other method or methods of determining bacterial count.

32.397 ENFORCEMENT STANDARDS.

The standards set forth in sections 32.391 to 32.398 and rules adopted thereunder by the commissioner shall be the only such standards for use in the state of Minnesota. No municipality or other subdivision of state government shall provide, by ordinance more stringent or comprehensive standards than are contained in sections 32.391 to 32.398 and rules adopted thereunder by the commissioner.

32.398 ENFORCEMENT AND VIOLATIONS.

Subdivision 1.

Enforcement.

The commissioner shall enforce the provisions of sections 32.391 to 32.398.

32.401 MILK AND CREAM FOR MANUFACTURING.

Subdivision 1.

Standards, grades, and price differentials.

In order to protect the public health and welfare, to promote the interests of the dairy industry in Minnesota, and to secure uniformity, the commissioner of agriculture may adopt standards, grades and price differentials between various grades of milk and cream for milk and cream purchased for manufacturing purposes. Before adopting any standards, grades, or price differentials for milk and cream, the commissioner shall hold a public hearing thereon, as provided by law. Until such standards, grades and price differentials are made and filed, the standards, grades, and price differential heretofore made by the commissioner remain in effect except as otherwise prescribed by law.

Subd. 2.

Statement of purchases furnished to seller.

All milk or cream purchased for manufacturing purposes shall be purchased on the basis of the standards, grades, and price differentials between grades so adopted. Every purchaser of milk or cream for manufacturing purposes shall, at time of payment therefor, furnish the person from whom purchased a statement showing the date of grading, the grade, and the price paid therefor. The statement may be included on the check delivered by the purchaser to the seller in payment of the milk or cream.

Subd. 3.

Enforcement.

The commissioner of agriculture shall enforce the provisions of this section.

Subd. 5.

Application.

This section shall not apply to any action now pending in any of the courts of this state, or to any cause of action arising, or violation which occurred, prior to April 18, 1955.

32.415 MILK FOR MANUFACTURING; QUALITY STANDARDS.

(a) The commissioner may adopt rules to provide uniform quality standards, and producers of milk used for manufacturing purposes shall conform to the standards contained in Subparts B, C, D, E, and F of the United States Department of Agriculture Consumer and Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and its Production and Processing, except that the commissioner shall develop methods by which producers can comply with the standards without violation of religious beliefs.

(b) The commissioner shall perform or contract for the performance of the inspections necessary to implement this section or shall certify dairy industry personnel to perform the inspections.

(c) The commissioner and other employees of the department shall make every reasonable effort to assist producers in achieving the milk quality standards at minimum cost and to use the experience and expertise of the University of Minnesota and the Agricultural Extension Service to assist producers in achieving the milk quality standards in the most cost-effective manner.

(d) The commissioner shall consult with producers, processors, and others involved in the dairy industry in order to prepare for the implementation of this section including development of informational and educational materials, meetings, and other methods of informing producers about the implementation of standards under this section.

32.416 SOMATIC CELL COUNT, GOAT MILK.

Notwithstanding any federal standard incorporated by reference in this chapter, the maximum allowable somatic cell count for raw goat milk is 1,500,000 cells per milliliter.

32.475 BUTTER, GRADING AND LABELING.

Subdivision 1.

Definitions.

As used in this section, score or grade means the grading of butter by its examination for flavor and aroma, body and texture, color, and salt, and by the use of other tests or procedures approved by the commissioner of agriculture, for ascertaining the quality of butter in whole or in part.

Subd. 2.

Minnesota grades.

It is unlawful to sell, offer or expose for sale, or have in possession with intent to sell any butter at retail unless it has been graded and labeled with such grades as follows:

(a) Grade, Minnesota, AA -- U.S. Grade AA

(b) Grade, Minnesota, A -- U.S. Grade A

(c) Grade, Minnesota, B -- U.S. Grade B

(d) Grade, Minnesota, undergrade -- all butter below Minnesota B.

For the purposes of this section "sale at retail" shall include all sales to a restaurant or eating establishment that serves butter to its patrons or that uses butter in the preparation of any food which is served to its patrons.

Subd. 3.

United States grades.

United States AA, A and B grades, or as such grades may be amended or as they may be administered by the United States Department of Agriculture, shall be accepted in lieu of the corresponding Minnesota AA, A and B grades, but all United States grades below B shall, for the purpose of this section, correspond to Minnesota undergrade.

Subd. 4.

Methods and procedures, promulgation by commissioner of agriculture.

Methods and procedures to be used for ascertaining quality, grades, grading, labeling, and for arbitrating disputes with respect to grades may be promulgated by the commissioner of agriculture.

Subd. 5.

Foreign butter.

Butter from outside of the state of Minnesota sold within this state shall comply with the state grade and labeling standards provided in this section; and, unless marked with United States AA, A, and B grades, shall indicate the grade in a manner equivalent to the requirements for butter manufactured and sold within this state.

Subd. 6.

Advertisement for retail sale, indication of grade.

Any advertisement of butter offered for sale at retail to the public at a given price shall plainly and conspicuously indicate the grade of such butter.

Subd. 7.

Penalty.

Any person violating any provision of this section shall be guilty of a misdemeanor.

32.481 CHEESE.

Subdivision 1.

Definition.

"Cheese" as used in sections 32.481 to 32.484 includes all varieties of cheese, cheese spreads, cheese foods, cheese compounds, or processed cheese, made or manufactured in whole or in part from cow's, goat's, or sheep's milk.

32.482 MANUFACTURE OF CHEESE, REQUIREMENTS IN PROCESS.

No person, firm, or corporation shall manufacture, transport, sell, offer, or expose for sale or have in possession with intent to sell, at retail to a consumer any cheese which has not been (1) manufactured from milk or milk products which have been pasteurized in accordance with sections 32.391 and 32.392, (2) subjected to a heat treatment equivalent to pasteurization during the process of manufacture or processing, or (3) subjected to an aging process whereby it has been kept for at least 60 days after manufacture at a temperature not lower than 35 degrees Fahrenheit. Any cheese which has been made from unpasteurized milk and which has been repackaged, handled or processed in any manner so as to obliterate or destroy its date of manufacture shall be labeled to show the true date of manufacture or in lieu thereof bear a statement that such cheese is more than 60 days of age.

32.483 STATEMENT BY MANUFACTURER.

Each cheese or packaged cheese sold, offered, or exposed for sale or held in possession with intent to sell at either retail or wholesale, within this state, shall have affixed thereto by the manufacturer a statement clearly setting forth:

(1) the factory number where manufactured, or in states where official factory numbers are not assigned, the name of the manufacturer and address of the plant where manufactured; provided, however, that in case of process cheese, cheese spreads, cheese foods and cheese compounds, the name and address of the jobber or distributor may be substituted for the name of the manufacturer and address of the plant where manufactured;

(2) the name of the variety or the distinctive name of the product and the word "Pasteurized" if made from pasteurized milk;

(3) the name of the variety or the distinctive name of the product and the date of manufacture if made from unpasteurized milk; and

(4) the name of the variety or the distinctive name of the product and the word "Pasteurized" if made from milk which is pasteurized in the curd form during the making process.

When a cheese is repackaged or divided into wholesale cuts, the distributor shall affix to each package or cut a label containing the information required in clause (2) or (3), which appears on the original cheese, together with the name and address of the distributor. When selling cheese to the consumer, that portion to which the label is affixed shall be sold last.

32.484 ENFORCEMENT.

The commissioner of agriculture shall be charged with the enforcement of sections 32.481 to 32.483 and shall have authority to promulgate in the manner provided by law all such rules as are necessary to the enforcement thereof.

32.486 CULTURED DAIRY FOOD; FARMSTEAD CHEESE.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Cultured dairy food" means a dairy product other than a grade A cultured dairy product.

(c) "Minnesota farmstead cheese" means cheese manufactured within the state of Minnesota on the same farm on which the milk is produced that is used in the manufacture.

Subd. 1a.

Processing requirements.

(a) Milk used to manufacture Minnesota farmstead cheese may not be more than 48 hours old when used.

(b) Before requiring pasteurization, the commissioner shall provide a plan at least 60 days before the next inspection to the manufacturer to assist the manufacturer in meeting the processing and facility requirements. The commissioner may require pasteurization if test samples demonstrate cheese and cultured dairy foods are not free of pathogens. The commissioner must inspect facilities at least four times each year.

Subd. 2.

Use of name restricted.

No cheese or packaged cheese that is sold, offered, or exposed for sale or held in possession with intent to sell at either retail or wholesale within this state may be labeled or described as "Minnesota farmstead cheese" unless it meets the criteria set forth in subdivision 1, and the manufacturer has obtained a written permit to use the name from the commissioner of agriculture, or the commissioner's designate.

Subd. 3.

Permit.

The commissioner or the commissioner's designate shall issue a permit authorizing the use of the name "Minnesota farmstead cheese" upon application made therefor on forms furnished by the commissioner, if the commissioner or the commissioner's designate is satisfied that the cheese manufactured by the applicant meets the requirements prescribed by subdivision 1. The commissioner or the commissioner's designated agents shall inspect the farm at reasonable times to insure compliance with subdivision 1. The permit may be suspended or revoked by the commissioner if the commissioner finds that the permittee is not in compliance with subdivision 1.

32.55 DEFINITIONS; FROZEN DAIRY FOODS.

Subdivision 1.

Terms.

For the purposes of subdivisions 2 to 13 and sections 32.56 to 32.645, and acts amendatory thereof, the terms defined in subdivisions 2 to 13, and acts amendatory thereof, have the meanings given them.

Subd. 2.

Frozen food.

"Frozen foods" means ice cream, frozen custard, French ice cream, French custard ice cream, ice milk, fruit sherbets, water ices, frozen malted milk, frozen milk shakes, frozen malts, frozen yogurt, frozen low-fat yogurt, frozen nonfat yogurt, reduced-fat ice cream, low-fat ice cream, nonfat ice cream, or any frozen food for which the commissioner has established a standard of identity, but shall not include frozen vegetables, fruits, meats, poultry, or bakery products.

Subd. 3.

Milk products.

"Milk products" means pure, clean, and wholesome cream, dried cream, plastic cream -- sometimes known as concentrated milk fat, butter, butter oil, milk, concentrated milk, evaporated milk, sweetened condensed milk, superheated condensed milk, dried milk, skim milk, concentrated skim milk, evaporated skim milk, condensed skim milk, superheated condensed skim milk, sweetened condensed skim milk, sweetened condensed part-skim milk, nonfat dry milk, sweet cream buttermilk, condensed sweet cream buttermilk, dried sweet cream buttermilk, whey, concentrated whey, and dry whey, and shall include any of the foregoing products from which lactose has been wholly or partially removed.

Subd. 4.

Mix, ice cream mix.

"Mix" means the unfrozen combination of all ingredients of a frozen food with or without fruit, fruit juices, candy, nut meats, flavoring, or coloring. "Ice cream mix" means the mix from which ice cream is frozen, made from a combination of milk products and such other ingredients in such quantities as are consistent with such ingredients and quantities in definitions and standards established by the commissioner. Ice cream mix in concentrated or condensed form shall contain such relative amounts of ingredients that, when diluted according to directions, it shall comply with the definition of ice cream mix.

Subd. 5.

Mix base; ice cream mix base.

"Mix base" means mix powder or dry base and is the product resulting from the removal of water from mix and contains not more than five percent of moisture.

"Ice cream mix base" means ice cream powder or dry ice cream mix and is the product resulting from the removal of water from ice cream mix and contains not more than five percent of moisture.

Subd. 12.

Imitation ice cream.

"Imitation ice cream" means any frozen substance, mixture or compound regardless of the name under which it is represented, which is made in imitation or semblance of ice cream, or is prepared or frozen as ice cream is customarily prepared or frozen and which is not a frozen food as provided for in this section.

Subd. 13.

Manufacture.

"Manufacture" means processing or freezing, or both.

Subd. 14.

Frozen yogurt; frozen low-fat yogurt; frozen nonfat yogurt.

"Frozen yogurt," "frozen low-fat yogurt," or "frozen nonfat yogurt" means a frozen dairy food made from a mix containing safe and suitable ingredients including, but not limited to, milk products. All or a part of the milk products must be cultured with a characterizing live bacterial culture that contains the lactic acid producing bacteria Lactobacillus bulgaricus and Streptococus thermopilus and may contain other lactic acid producing bacteria.

32.555 COMPLIANCE WITH FEDERAL REGULATIONS.

(a) Frozen yogurt, frozen low-fat yogurt, and frozen nonfat yogurt must comply with Code of Federal Regulations, title 21, and sections 32.55 to 32.90.

(b) Reduced-fat ice cream, low-fat ice cream, and nonfat ice cream must comply with the frozen dessert provisions in Code of Federal Regulations, title 21, part 135.

32.56 MANUFACTURERS OF FROZEN FOODS TO OBTAIN LICENSE.

No person shall manufacture frozen foods, mix, ice cream mix, mix base, or ice cream mix base for resale, without first having obtained a license therefor from the Department of Agriculture, which is charged with the duty and power of administering and enforcing the provisions of sections 32.56 to 32.64. The commissioner shall establish standards in the manner provided in section 31.10, and acts amendatory thereof, for frozen foods for which no Minnesota standards exist. In the exercise of the authority to establish standards for frozen foods, the commissioner shall adopt definitions and standards of identity established pursuant to the Federal Food, Drug and Cosmetic Act insofar as said definitions and standards do not conflict with law. Nothing in sections 32.56 to 32.64 shall apply to educational institutions or to charitable, fraternal or religious organizations not regularly engaged in the manufacture of frozen foods, mix, ice cream mix, mix base, or ice cream mix base or to private homes manufacturing for their own use.

32.61 LICENSES; REVOCATION, SUSPENSION.

The Department of Agriculture shall have the power to suspend or revoke any license or certificate of registration thus granted, for failure to comply with the provisions of sections 32.56 to 32.64, or rules made thereunder.

32.62 CONTAINERS, LABELS.

Subdivision 1.

Contents of labels.

All cans or containers used in the sale or distribution of mix, ice cream mix, mix base, or ice cream mix base shall bear a label attached to the same giving the following information:

(1) Name of product;

(2) Percentage of milk fat contained in product;

(3) Percentage of total solids in products;

(4) Statement of net contents; and

(5) Name and address of manufacturer or distributor.

Every package of frozen foods packed by the manufacturer shall bear a label. The label shall give the name of the product, the name and address of the manufacturer or distributor, a statement of the net contents, and such other information as the commissioner may require pursuant to section 31.12, and acts amendatory thereof. When the name and address of the distributor is given on the label of mix, ice cream mix, mix base, ice cream mix base or frozen foods, the name and address of the manufacturer also shall be given or in lieu of the name and address of the manufacturer an identification number or code assigned by the commissioner of agriculture may be used to represent such manufacturer.

Subd. 2.

Frozen foods, restrictions.

(1) No person shall sell, advertise or expose for sale, or offer for sale a frozen food, or mix, or mix base therefor, unless it conforms to a standard of identity prescribed by the commissioner in accordance with law.

(2) When ice milk is sold, offered or exposed for sale in a package form, there shall be conspicuously printed thereon in ink upon a contrasting background, in type not less than 24-point Gothic capitals, the words "ice milk." When ice milk is served to a consumer, the owner, operator or manager of such retail establishment shall have signs conspicuously posted on the inside of such retail establishment with lettering large enough to be distinctly seen and read containing the words "ice milk sold here." Such signs shall remain posted so long as ice milk is sold or offered for sale to consumers.

(3) No person shall sell, advertise or offer or expose for sale any imitation ice cream.

(4) No person shall sell, offer for sale or advertise for sale any frozen food or mix, or mix base therefor, if the brand name of the frozen food, or mix, or mix base or label upon it, or the advertising accompanying it, shall give a false indication of origin, character, composition, name of manufacturer, or is otherwise false or misleading in any particular.

32.63 PLANTS KEPT SANITARY.

Any plant or establishment for the manufacture of frozen foods, mix, ice cream mix, mix base, or ice cream mix base operated under the provisions of sections 32.56 to 32.64 shall be so located, constructed, and equipped that it may be kept in a clean and sanitary condition, in accordance with the rules promulgated by the commissioner in the manner provided by law.

32.64 PASTEURIZATION.

Subdivision 1.

Requirement; definition.

All mix or ice cream mix shall be pasteurized. Pasteurization is hereby defined as the process of heating every particle of mix or ice cream mix in properly operated equipment approved by the commissioner to such temperatures and holding for such times as have been recognized by the United States Public Health Service and which have been adopted by the commissioner in accordance with law. Nothing contained in this definition shall be construed as excluding any other process which has been demonstrated to be equally efficient and is approved by the commissioner.

Subd. 2.

Cooling.

Immediately after pasteurization such mix or ice cream mix shall be cooled in properly operated equipment approved by the commissioner to such temperature as the commissioner shall prescribe by rule and held at or below that temperature until frozen.

Subd. 3.

Record chart.

A recording thermometer record chart, properly dated, of each batch of mix or ice cream mix pasteurized for use in the manufacture of frozen foods, mix base, or ice cream mix base, shall be available at the plant of pasteurization at all reasonable times, for inspection by the Department of Agriculture.

Subd. 4.

Bacterial count tests.

At no time after pasteurization shall frozen foods, mix, ice cream mix, reconstituted mix base, or reconstituted ice cream mix base have a bacterial count or a coliform count exceeding standards set forth in rules adopted by the commissioner in accordance with law. Such tests shall be made of a representative sample of frozen foods, mix, ice cream mix, mix base, reconstituted mix base, ice cream mix base, or reconstituted ice cream mix base taken from an unbroken package in the possession of the manufacturer, but in the event that no unbroken package is available when sample is requested, then it shall be taken from a broken package in the possession of the manufacturer.

32.645 PENALTIES.

Subdivision 1.

Gross misdemeanor; license revocation.

Any person licensed under the provisions of sections 28A.04, 28A.14, and 32.56 who knowingly violates, or who directs or knowingly permits any officer, agent, or employee to violate, section 32.62, subdivision 2, clause (1) or (3), is guilty of a gross misdemeanor. For each subsequent offense, in addition to any fine or imprisonment imposed under this subdivision, upon conviction thereof, the commissioner of agriculture shall revoke or withhold issuing to such offender any license required under the provisions of sections 28A.04, 28A.14, and 32.56.

Subd. 2.

Lesser penalties.

Any person violating section 32.62, subdivision 2, clause (2) or (4), for each first offense is guilty of a petty misdemeanor and for each subsequent offense, is guilty of a misdemeanor.

32.70 DEFINITIONS.

Subdivision 1.

Application.

The definitions in this section apply to sections 32.70 to 32.74.

Subd. 2.

Basic cost.

(a) "Basic cost" for a processor means the actual cost of the raw milk plus 75 percent of the actual processing and handling costs for a selected class I or class II dairy product.

(b) "Basic cost" for a wholesaler means the actual cost of the selected class I or class II dairy product purchased from the processor or another wholesaler.

(c) "Basic cost" for a retailer means the actual cost of the selected class I or class II dairy product purchased from a processor or wholesaler.

Subd. 3.

Bona fide charity.

"Bona fide charity" means a corporation, trust, fund, or foundation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes.

Subd. 4.

Processor.

"Processor" means a person engaged in manufacturing or processing selected class I or class II dairy products in the person's own plant for sale in Minnesota.

Subd. 5.

Producer.

"Producer" means a person who operates a dairy herd or herds in Minnesota producing milk or cream commercially and whose milk or cream is sold to, or received or handled by, a distributor or processor. "Producer" does not include an incorporated or unincorporated association of producers.

Subd. 6.

Responsible person.

"Responsible person" means the business entity that makes payment to an individual Grade A or Grade B milk producer.

Subd. 7.

Selected class I dairy products.

"Selected class I dairy products" means milk for human consumption in fluid form and all other class I dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40, or successor orders.

Subd. 8.

Selected class II dairy products.

"Selected class II dairy products" means milk for human consumption processed into fluid cream, eggnog, yogurt, and all other class II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40, or successor orders.

Subd. 9.

Sell at retail; sale at retail; retail sales.

"Sell at retail," "sale at retail," and "retail sales" mean a retail sale or offer for retail sale of a selected class I or class II dairy product for ultimate consumption or use.

Subd. 10.

Sell at wholesale; sale at wholesale; wholesale sales.

"Sell at wholesale," "sale at wholesale," and "wholesale sales" mean sale or offer for sale of a selected class I dairy product for purposes of resale or further processing or manufacturing, but does not include a producer selling or delivering milk to a processor.

Subd. 11.

Wholesaler.

"Wholesaler" means a person including a distributor in the business of making sales of selected class I or class II dairy products, at wholesale in Minnesota. In the case of a person making sales at both retail and wholesale, "wholesaler" applies only to the sales at wholesale.

32.71 DUTIES AND POWERS OF THE COMMISSIONER; DATA PRIVACY.

Subdivision 1.

Duties; rules.

The commissioner shall adopt rules to implement and administer sections 32.70 to 32.74 as necessary.

Subd. 2.

Data privacy.

Financial and production information received by the commissioner on processors, wholesalers, or retailers including, but not limited to, financial statements, fee reports, price schedules, cost documentation, books, papers, records, or other documentation for the purpose of administration and enforcement of this chapter shall be classified private data or nonpublic data pursuant to chapter 13. That classification shall not limit the use of the information in the preparation, institution, or conduct of a legal proceeding by the commissioner in enforcing this chapter.

32.72 SALES BELOW COST PROHIBITED; EXCEPTIONS.

Subdivision 1.

Policy; processors; wholesalers; retailers.

(a) It is the intent of the legislature to accomplish partial deregulation of milk marketing with a minimum negative impact upon small volume retailers.

(b) A processor or wholesaler may not sell or offer for sale selected class I or class II dairy products at a price lower than the processor's or wholesaler's basic cost.

(c) A retailer may not sell or offer for sale selected class I or class II dairy products at a retail price lower than (1) 105 percent of the retailer's basic cost until June 30, 1994; and (2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may not use any method or device in the sale or offer for sale of a selected dairy product that results in a violation of this section.

Subd. 2.

Exceptions.

The minimum processor, wholesaler, and retailer prices of subdivision 1 do not apply:

(i) to a sale complying with section 325D.06, clauses (1) to (4);

(ii) to a retailer giving away selected class I and class II dairy products free if the customer is not required to make a purchase; or

(iii) to a processor, wholesaler, or retailer giving away selected class I and class II dairy products free or at a reduced cost to a bona fide charity.

32.74 REDRESS FOR INJURY OR THREATENED INJURY.

A person injured by a violation of sections 32.70 to 32.74 may commence a legal action based on the violation in a court of competent jurisdiction and may recover economic damages and the costs of the action, including reasonable attorneys' fees. A person injured or who is threatened with injury or loss by reason of violation of sections 32.70 to 32.74 may commence a legal action based on the violation and obtain injunctive relief in a court of competent jurisdiction against persons involved in a violation or threatened violation of sections 32.70 to 32.74 to prevent and restrain violations or threatened violations of sections 32.70 to 32.74 without alleging or proving actual damages or that an adequate remedy at law does not exist, so that injunctive relief can be obtained promptly and without awaiting evidence of injury or actual damage. This injunctive relief does not abridge and is not in lieu of any other civil remedy provided in sections 32.70 to 32.74.

32.745 ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT.

The provisions of section 32.72 are suspended during the months of June, July, and August 1997, and for the month of June each year thereafter in honor of "Dairy Month."

32.75 RECOMBINANT BOVINE GROWTH HORMONE LABELING.

Subdivision 1.

Definition.

For purposes of this section and sections 32.103, 151.01, and 151.15, "recombinant bovine growth hormone" or "rBGH" means a growth hormone, intended for use in bovine animals, that has been produced through recombinant DNA techniques, described alternately as recombinant bovine somatotropin, or rBST.

Subd. 2.

Labeling.

(a) Products offered for wholesale or retail sale in this state which contain milk, cream, or any product or by-product of milk or cream, which have been processed and handled pursuant to the requirements of this section, may be labeled: "Milk in this product is from cows not treated with rBGH." Labeling of dairy products under this section which are offered for sale within this state may also include an indication that the milk used is "farmer certified rBGH-free." Products offered for wholesale or retail sale in this state need not contain any further label information relative to the use of rBGH in milk production.

(b) The label described in paragraph (a) may appear on the principal display panel, as defined in section 31.01, subdivision 22, of a packaged product, be conspicuously attached to the container of a bulk product, or appear in any advertisement, as defined in section 31.01, subdivision 26, for a product, including media advertising, or displays or placards posted in retail stores.

Subd. 3.

Affidavit; records.

(a) A dairy plant purchasing milk or cream to be used in products labeled pursuant to subdivision 2 shall require an affidavit approved by the commissioner from producers supplying such milk. This affidavit must be signed by the producer or authorized representative and state that all cows used in the producer's dairy operations have not and will not be treated with rBGH, without advanced written notice of at least 30 days to the dairy plant.

(b) Dairy plants shall keep original affidavits on file for a period of not less than two years after receiving written notice from the producer of anticipated rBGH use, as provided in paragraph (a). These affidavits and corresponding records must be made available for inspection by the commissioner. Dairy plants supplying milk or cream to a processor or manufacturer of a product to be labeled pursuant to subdivision 2, for use in that product, shall supply a certification to that processor or manufacturer stating that producers of the supplied milk or cream have executed and delivered affidavits pursuant to paragraph (a).

Subd. 4.

Separation of nontreated cows and milk.

All milk or cream from non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant to subdivision 2, or milk or cream supplied by a producer under an affidavit pursuant to subdivision 3, must be kept fully separate from any other milk or cream through all stages of storage, transportation, and processing until the milk or resulting dairy products are in final packaged form in a properly labeled container. Records of the separation must be kept by the dairy plant and product processor or manufacturer at all stages and made available to the commissioner for inspection.

32.90 PENALTY.

Any person, firm, corporation, association or copartnership violating any of the provisions of this chapter or any amendatory act for which no specific penalty is provided shall be guilty of a misdemeanor.

41D.01 MINNESOTA AGRICULTURE EDUCATION LEADERSHIP COUNCIL.

Subd. 4.

Expiration.

This section expires on June 30, 2018.