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SF 4395

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/15/2020 07:41am

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

Current Version - 2nd Engrossment

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A bill for an act
relating to agriculture; making changes to seed fee permit law; making changes
to perishable farm products provisions; making technical and policy changes;
providing agriculture-related grants; appropriating money; amending Minnesota
Statutes 2018, sections 21.891, subdivision 2; 27.001; 27.01; 27.03, subdivisions
3, 4; 27.0405, subdivision 1; 27.06; 27.07; 27.08; 27.09; 27.10; 27.11; 27.13;
27.131; 27.133; 27.137, subdivisions 5, 7, 9, 10; 27.138; 27.19, subdivision 1;
31.175; Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision
4; proposing coding for new law in Minnesota Statutes, chapter 17; repealing
Minnesota Statutes 2018, sections 13.6435, subdivision 5; 27.03, subdivision 1;
27.04; 27.041.

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

ARTICLE 1

PERISHABLE FARM PRODUCTS

Section 1.

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


Subd. 2.

Seed fee permits.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(5) sunflower, $1.96 per hundredweight;

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

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

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

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

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

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

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

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

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

Sec. 2.

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


27.001 PUBLIC POLICY.

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

Sec. 3.

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


27.01 DEFINITIONS.

Subd. 2.

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

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

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

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

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

Subd. 4.

Voluntary extension of credit.

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

Subd. 5.

Due date.

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

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

Subd. 7.

Commissioner.

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

Subd. 8.

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

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

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

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

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

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

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

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

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

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

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

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

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

Subd. 10.

Seller.

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

new text begin Subd. 11. new text end

new text begin Person. new text end

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

new text begin Subd. 12. new text end

new text begin Miscellaneous terms. new text end

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

Sec. 4.

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


Subd. 3.

Brokers.

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

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

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

Sec. 5.

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


Subd. 4.

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

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

Sec. 6.

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


Subdivision 1.

Production and review of information.

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

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

Sec. 7.

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


27.06 COMPLAINTS TO COMMISSIONER, HEARING; ACTION ON BOND.

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

Sec. 8.

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


27.07 GRADES ESTABLISHED; INSPECTION.

Subdivision 1.

Commissioner's power.

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

Subd. 2.

Certificates.

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

Subd. 3.

Application for inspector's services.

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

Subd. 4.

Deposit agreement.

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

Subd. 5.

Fees.

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

Subd. 6.

Cooperative agreements; fees; account.

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

Sec. 9.

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


27.08 FILING BRAND OR LABEL; PERMIT.

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

Sec. 10.

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


27.09 INSPECTION CERTIFICATE.

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

Sec. 11.

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


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

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

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

Sec. 12.

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


27.11 SHIPMENTS ON CONSIGNMENT.

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

Sec. 13.

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


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

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

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

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

Sec. 14.

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


27.131 MEDIATION AND ARBITRATION.

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

Sec. 15.

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


27.133 PARENT COMPANY LIABILITY.

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

Sec. 16.

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


Subd. 5.

Proceeds.

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

Sec. 17.

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


Subd. 7.

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

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

Sec. 18.

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


Subd. 9.

Trust assets.

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

Sec. 19.

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


Subd. 10.

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

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

Sec. 20.

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


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

Subdivision 1.

Trust establishment and maintenance.

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

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

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

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

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

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

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

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

Subd. 2.

Sellers' rights to trust assets.

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

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

Subd. 3.

Beneficiaries notice.

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

(b) The beneficiaries notice must contain:

(1) the name and address of the seller;

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

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

(4) a description of the trust assets.

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

Subd. 4.

Priority of unpaid sellers' interests in trust assets.

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

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

Subd. 5.

Recovery actions.

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

Subd. 6.

Terminations of beneficiaries notice.

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

Sec. 21.

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


Subdivision 1.

Prohibited acts.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 22.

Minnesota Statutes 2018, section 31.175, is amended to read:


31.175 WATER, PLUMBING, AND SEWAGE.

A person who is required by statutes administered by the Department of Agriculture, or
by rules adopted pursuant to those statutes, to provide a suitable water supply, or plumbing
or sewage disposal system shall not engage in the business of manufacturing, processing,
selling, handling, or storing food at wholesale or retail unless the person's water supply is
satisfactory pursuant to rules adopted by the Department of Health, the person's plumbing
is satisfactory pursuant to rules adopted by the Department of Labor and Industry, and the
person's sewage disposal system satisfies the rules of the Pollution Control Agency.new text begin This
section does not limit the commissioner's ability to issue a food handler's license when an
investigation completed pursuant to section 28A.07 has determined the requirements of this
section are not relevant and the applicant is considered fit to engage in business as described
in the license application.
new text end

Sec. 23. new text beginREPEALER.
new text end

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

ARTICLE 2

AGRICULTURE APPROPRIATIONS

Section 1.

new text begin [17.1195] FARM SAFETY GRANT AND OUTREACH PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Tractor rollover grants. new text end

new text begin (a) The commissioner may award grants to
Minnesota farmers and Minnesota schools that retrofit eligible tractors with eligible rollover
protective structures.
new text end

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

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

new text begin (d) A rollover protective structure is eligible if it is certified to appropriate national or
international rollover protection structure standards with a seat belt.
new text end

new text begin (e) "Eligible tractor" means a tractor that was built before 1987.
new text end

new text begin Subd. 2. new text end

new text begin Grain storage facility safety grants; farm safety outreach. new text end

new text begin (a) The
commissioner may award grants to Minnesota farmers who purchase eligible grain storage
facility safety equipment. Grants are limited to 75 percent of the farmer's documented cost
to purchase, ship, and install grain storage facility safety equipment, or $400 per bin or silo,
whichever is less. A farm entity may not receive more than one grant each fiscal year.
new text end

new text begin (b) Eligible grain storage facility safety equipment includes:
new text end

new text begin (1) fall protection systems;
new text end

new text begin (2) engineering controls to prevent contact with an auger or other moving parts;
new text end

new text begin (3) dust collection systems to minimize explosion hazards;
new text end

new text begin (4) personal protective equipment to increase survivability in the event of a
grain-bin-related emergency;
new text end

new text begin (5) grain silo air quality monitoring equipment; and
new text end

new text begin (6) other grain storage facility safety equipment approved by the commissioner.
new text end

new text begin (c) The commissioner may create a farm safety outreach campaign, including but not
limited to development and distribution of safety educational materials related to grain bins,
silos, and other agricultural confined spaces.
new text end

new text begin Subd. 3. new text end

new text begin Promotion; administration. new text end

new text begin The commissioner may spend up to six percent
of total program dollars each fiscal year to promote and administer the programs to Minnesota
farmers and schools.
new text end

Sec. 2.

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


Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

23,653,000
deleted text begin 23,654,000 deleted text end new text begin
23,554,000
new text end

(a) $9,300,000 the first year and deleted text begin$9,300,000deleted text endnew text begin
$9,200,000
new text end the second year are for transfer to
the agriculture research, education, extension,
and technology transfer account under
Minnesota Statutes, section 41A.14,
subdivision 3
. Of these amounts: at least
$600,000 the first year and $600,000 the
second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);
$2,000,000 the first year and $2,000,000 the
second year are for grants to the Minnesota
Agriculture Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants; $350,000 the first year and
$350,000 the second year are for potato
breeding; and $450,000 the first year and
$450,000 the second year are for the cultivated
wild rice breeding project at the North Central
Research and Outreach Center to include a
tenure track/research associate plant breeder.
The commissioner shall transfer the remaining
funds in this appropriation each year to the
Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14. Of the amount transferred to
the Board of Regents,new text begin $675,000 the second
year is for testing equipment and supplies for
the Veterinary Diagnostic Laboratory, and
new text end up
to $1,000,000 each year is for research on
avian influenzanew text begin, salmonella, and other
turkey-related diseases
new text end.

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.new text begin The
base amount for agriculture research,
education, extension, and technology transfer
for fiscal year 2022 and later is $9,300,000.
new text end

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

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

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

(2) $2,500,000 the first year and $2,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. new text beginPayments for
each quarter of the fiscal year may not exceed
$625,000, unless money is carried forward
from a previous quarter. No entity may receive
more than $2,500,000 in payments in a fiscal
year from one of the programs.
new text endIf this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program. The base amount for
the allocation under this clause is $3,000,000
in fiscal year 2022 and later;

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

(4) up to $5,000,000 the second year is for
innovative soybean processing and research;

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

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

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

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

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

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

Sec. 3. new text beginFARM SAFETY GRANT AND OUTREACH; APPROPRIATION.
new text end

new text begin (a) $100,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of agriculture for farm safety grants and outreach programs under Minnesota Statutes,
section 17.1195. Of this amount, $50,000 is for grain storage facility safety grants, and
$50,000 is for (1) outreach, which may include creating and presenting a grain storage
facility safety curriculum, and (2) awarding grants under paragraph (b). This is a onetime
appropriation.
new text end

new text begin (b) The commissioner of agriculture may award grants to the Board of Regents of the
University of Minnesota or the Board of Trustees of the Minnesota State Colleges and
Universities to design digital applications that allow a user to remotely power off a grain
storage facility via cell phone or electronic device. Any digital applications created as a
result of this grant must be made available to the public at no cost. By January 15, 2021,
the commissioner shall report on the grants issued under this appropriation to the members
of the legislative committees with jurisdiction over agriculture finance and higher education
finance. By February 1, 2022, a recipient of a grant for this purpose is requested to report
to the commissioner of agriculture and the members of the legislative committees with
jurisdiction over agriculture finance and higher education finance regarding the digital
application produced as a result of the grant.
new text end

Sec. 4. new text beginAPPROPRIATIONS; RESPONSE TO COVID-19 CRISIS.
new text end

new text begin Subdivision 1. new text end

new text begin Farm loan origination fee grants. new text end

new text begin (a) $175,000 in fiscal year 2020 is
appropriated from the general fund to the commissioner of agriculture for grants to eligible
farmers who have been approved for farm debt restructuring loans guaranteed by the United
States Department of Agriculture (USDA), Farm Service Agency or issued under a loan
program administered by the Rural Finance Authority. The commissioner must award an
eligible farmer a grant in an amount equal to 50 percent of the loan origination fee amount
required for the farmer to obtain the USDA, Farm Service Agency guaranteed loan or Rural
Finance Authority program loan.
new text end

new text begin (b) For purposes of this section, "eligible farmer" means an individual who regularly
participates in physical labor or operations management in the individual's farming operation
and files "Schedule F" as part of the person's annual Form 1040 filing with the United States
Internal Revenue Service or a family farm organized under Minnesota Statutes, section
500.24, if the individual or family farm:
new text end

new text begin (1) has a total net worth of less than $800,000 in calendar year 2020; and
new text end

new text begin (2) is either in mediation proceedings under Minnesota Statutes, chapter 583, or has
received a mediation notice under Minnesota Statutes, section 583.26, subdivision 1,
paragraph (a).
new text end

new text begin (c) The commissioner must give first priority to grant applicants who are currently in
mediation under Minnesota Statutes, chapter 583, and must give second priority to grant
applicants who have received a mediation notice under Minnesota Statutes, section 583.26,
subdivision 1, paragraph (a).
new text end

new text begin (d) The amount appropriated under this subdivision is onetime.
new text end

new text begin (e) The commissioner may use up to ten percent of the amount appropriated under this
section to administer the grant program.
new text end

new text begin Subd. 2. new text end

new text begin Farm advocate services. new text end

new text begin $60,000 in fiscal year 2021 is appropriated from the
general fund to the commissioner of agriculture for additional farm advocate services in
response to the COVID-19 crisis. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Retail food handler safety. new text end

new text begin (a) $125,000 in fiscal year 2020 is appropriated
from the general fund to the commissioner of agriculture for grants to retail food handlers,
as described in Minnesota Statutes, section 28A.05, paragraph (a). The commissioner may
award grants for recipients to execute requirements, guidance, and recommendations related
to the infectious disease known as COVID-19 provided by the Centers for Disease Control
and Prevention and the Minnesota Department of Health, and to develop safety procedures,
update and retrofit retail locations, purchase personal protective equipment for employees,
and educate the public on the need to follow safety procedures. This is a onetime
appropriation and is available until June 30, 2021.
new text end

new text begin (b) Grants under this subdivision equal $500 for stores that qualify as retail food handlers.
The commissioner must not award a business with multiple eligible locations more than
$2,000 in total grants. Applicants must provide information to the commissioner on how
grant money will be used to ensure safety of Minnesotans from COVID-19.
new text end

new text begin Subd. 4. new text end

new text begin Expanded meat and poultry processing grants. new text end

new text begin $200,000 in fiscal year 2020
is appropriated from the general fund to the commissioner of agriculture for grants to
independently owned or employee-owned meat and poultry processors that may also operate
as a retail seller, to expand their processing operations to help make up the loss of processing
animals as a result of the temporary closing or operation reductions of other processing
facilities due to the COVID-19 crisis.
new text end

new text begin Subd. 5. new text end

new text begin Rural mental health services and outreach. new text end

new text begin $40,000 in fiscal year 2021 is
appropriated from the general fund to the commissioner of agriculture for additional
community outreach on farms and rural mental health services, including suicide prevention
training, mental health awareness training for farm and rural adolescents, and mental health
forums in response to the COVID-19 crisis.
new text end

new text begin Subd. 6. new text end

new text begin Eligible expenditure from the coronavirus relief fund. new text end

new text begin (a) If the commissioner
determines that an appropriation in this section is an eligible expenditure from the coronavirus
relief fund, the amount of the expenditure is appropriated from the coronavirus relief fund
and the corresponding amount is canceled from the general fund.
new text end

new text begin (b) No money in this section may be spent until the commissioner of management and
budget determines that the appropriations in this section are an eligible use of the coronavirus
relief fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S4395-2

13.6435 AGRICULTURAL DATA CODED ELSEWHERE.

Subd. 5.

Wholesale produce dealers.

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

27.03 DEALER REGULATION.

Subdivision 1.

License.

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

27.04 APPLICATION FOR LICENSE.

Subdivision 1.

Issuance.

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

Subd. 2.

Application contents.

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

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

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

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

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

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

(6) the income and expenses for the most recent year;

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

(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

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

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

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

Subd. 3.

Filing.

Applications shall be filed annually.

27.041 BONDS; LICENSES.

Subdivision 1.

Bonds.

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

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

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

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

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

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

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

(1) transacted within this state; or

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

Subd. 1a.

Additional bonds.

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

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

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

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

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

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

Subd. 2.

Licenses.

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

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

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

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

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

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

Subd. 3.

Account; appropriation.

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