Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 563-S.F.No. 2072 
                  An act relating to commerce; agriculture; adding 
                  labeling requirements for salvaged food; adding 
                  licensing and permit requirements for salvaged food 
                  distributors; adding record keeping requirements; 
                  requiring salvaged food served for compensation to be 
                  identified; providing for labeling of Canadian wild 
                  rice; appropriating money; amending Minnesota Statutes 
                  1992, sections 30.49, subdivision 2; and 31.495, 
                  subdivisions 1, 2, and 5, and by adding subdivisions. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 30.49, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NATURAL LAKE OR RIVER WILD RICE.] (a) (i) A 
        package containing only 100 percent natural lake or river wild 
        rice that is offered for sale at wholesale or retail sale in 
        this state must be plainly and conspicuously labeled as "100 
        percent naturally grown, lake and river wild rice" in letters of 
        a size and form prescribed by the commissioner.  A package of 
        wild rice labeled "100 percent naturally grown, lake and river 
        wild rice" must also contain the license number issued under 
        section 84.152 of the last licensed dealer, if any, who handled 
        the wild rice. 
           (ii) A package containing only 100 percent natural lake or 
        river wild rice that contains a portion of wild rice grown in 
        Canada and offered for wholesale or retail sale in Minnesota 
        must be plainly and conspicuously labeled as "Canadian" wild 
        rice in letters of a size and form prescribed by the 
        commissioner. 
           (b) A package that does not contain 100 percent natural 
        lake or river wild rice may not contain a label authorized under 
        paragraph (a). 
           (c) A package containing a portion of 100 percent naturally 
        grown lake and river wild rice that is harvested by use of 
        mechanical harvesting devices and that is offered for sale at 
        wholesale or retail in this state must be plainly and 
        conspicuously labeled as "machine harvested" in letters of a 
        size and form prescribed by the commissioner.  In addition, the 
        letters "machine harvested" must be placed near the product's 
        identity on the label.  Packages containing 100 percent 
        hand-harvested wild rice may be labeled as "hand harvested." 
           Sec. 2.  Minnesota Statutes 1992, section 31.495, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATIONS.] For the purposes of this 
        section sections 31.495 and 31.496, the terms defined in this 
        subdivision have the meanings given them: 
           (a) "Distressed food" means any food, the label of which 
        has been lost, defaced, or obliterated, or food which has been 
        subjected to possible damage due to accident, fire, flood, 
        adverse weather, or to any other similar cause; or food which is 
        suspected of having been rendered unsafe or unsuitable for food 
        use.  
           (b) "Reconditionable or salvageable food" is distressed 
        food which it is possible to reclaim for food, feed, or seed use 
        as determined by examination by the commissioner or the 
        commissioner's representatives.  
           (c) "Reconditioned or salvaged food" is reconditionable or 
        salvageable food which has been reconditioned or salvaged under 
        supervision of the commissioner so as to comply with the 
        standards established under this section.  
           (d) "Reconditioning" or "salvaging" is the act of cleaning, 
        culling, sorting, scouring, labeling, relabeling, or in any way 
        treating "distressed food" so that it may be deemed to be 
        "reconditioned" or "salvaged food" and therefore is acceptable 
        for sale or use as human food, animal feed, or seed as provided 
        therefor by the commissioner.  
           (e) "Salvage food processor" is a person who holds a 
        license under section 28A.04 to operate as a salvage food 
        processor and who receives supervision of the salvaging 
        operations from the commissioner.  
           (f) "Labeling" means any legend or descriptive matter or 
        design appearing upon an article of food or its container, and 
        includes circulars, pamphlets and the like, which are packed and 
        go with the article to the purchaser, and placards which may be 
        allowed to be used to describe the food.  
           (g) "Salvage food distributor" means a person who engages 
        in the business of selling, distributing, or otherwise 
        trafficking at wholesale in any distressed or salvaged food. 
           Sec. 3.  Minnesota Statutes 1992, section 31.495, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LICENSING; PERMIT.] (a) It is unlawful for any 
        person either to claim to be a salvage food processor, or to 
        engage in the activities of reconditioning or salvaging 
        distressed food, or both, without a license issued under section 
        28A.04 authorizing that person to operate as a salvage food 
        processor, which license may not be issued absent compliance 
        with all the provisions of this section and all rules 
        promulgated under this section.  
           (b) Before issuing a license, the commissioner shall 
        determine that the applicant's salvage establishment meets at 
        least the minimum requirements adopted by rule for such an 
        establishment which shall include but not be limited to adequacy 
        of buildings, location, water supply, waste disposal, equipment, 
        hand washing and toilet facilities, and sanitation practices, as 
        the same relate to the protection of the public health and 
        welfare.  
           (c) It is unlawful for any person either to claim to be a 
        salvaged food distributor or to engage in the activities of 
        selling, distributing, or otherwise trafficking in any 
        distressed or salvaged food, or both, at wholesale, without a 
        license issued under section 28A.04 authorizing that person to 
        operate as a salvage food distributor, which license may not be 
        issued absent compliance with all the provisions of this section 
        and all rules adopted under this section. 
           Sec. 4.  Minnesota Statutes 1992, section 31.495, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [LABELING REQUIREMENTS.] (a) Any container of 
        food with the label or mandatory information missing that cannot 
        be identified and relabeled correctly must not be sold.  When 
        original labels are missing or illegible, relabeling or 
        overlabeling is required. 
           (b) All salvaged food, except as described in paragraph 
        (e), shall be identified to indicate that the food has been 
        salvaged by clearly marking the term "salvaged food" on all 
        invoices, bills of lading, shipping invoices, receipts, and 
        inventory records. 
           (c) All persons selling salvaged food, at retail, except as 
        described in paragraph (e), shall notify the consumer that the 
        food is salvaged either by (1) labeling each retail package or 
        container "salvaged" or "reconditioned" or (2) posting a 
        conspicuous placard at the retail display location stating 
        "salvaged food" or "reconditioned food."  Placards must be 
        readable, using letters of not less than 1-1/2 inch type.  
        Placards shall also state "This item has been reconditioned and 
        has been determined wholesome for human consumption under 
        applicable state requirements by (name of food seller)." 
           (d) All salvaged food in containers must be provided with 
        labels that comply with the requirements contained in chapters 
        29, 30, 31, 31A, 32, 33, and 34.  If original labels are removed 
        from containers that are to be resold or redistributed, the 
        replacement labels must show as the distributor the name and 
        address of the salvage food processor and the date of 
        reconditioning for sale or distribution. 
           (e) Paragraphs (b) and (c) do not apply to food products 
        damaged in the normal course of handling and transportation, 
        where the food is intact in its original container and has not 
        been subject to fire, chemical spills, temperature abuse in 
        perishable food products, immersion in water, or other similar 
        risk of contamination. 
           (f) The commissioner, in consultation with the commissioner 
        of health, may adopt rules providing for the identification and 
        labeling of food products pursuant to this subdivision. 
           Sec. 5.  Minnesota Statutes 1992, section 31.495, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [RECORD KEEPING REQUIREMENTS.] A written record 
        or receipt of distressed, salvageable, and salvaged food must be 
        kept by the salvage food processor and distributor for 
        inspection by the commissioner during business hours.  The 
        records must include the name of the product, the source of the 
        distressed food, the date received, the type of damage, the 
        salvage process conducted, and the purchaser of the salvaged 
        food.  These records must be kept on the premises of the salvage 
        food processor and distributor for a period of one year 
        following the completion of transactions involving the food. 
           Sec. 6.  Minnesota Statutes 1992, section 31.495, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXCEPTIONS.] This section does The provisions of 
        sections 31.495 and 31.496 do not apply to:  (a) any food 
        manufacturer, distributor, retailer, or processor who in the 
        normal course of the business of manufacturing, 
        processing, retailing, or distributing of food engages in the 
        activities of reconditioning and salvaging distressed food 
        manufactured, distributed or processed by or for that person and 
        not purchased by that person solely for the purpose of 
        reconditioning, salvaging, and sale; or (b) Any person who 
        reassembles or disposes of undamaged food which is from lots in 
        which food or packaging materials or containers are damaged in 
        the normal course of commerce or while in that person's 
        possession and which is not purchased by that person solely for 
        the purpose of reconditioning, salvaging, and sale, or any 
        common carrier or agent of the common carrier who disposes of or 
        otherwise transfers undamaged or distressed food to a person 
        exempt under this section or to a salvage food processor who 
        holds a valid license under this section; or (c) Any person who 
        stores, handles or processes grain or oil seeds in the normal 
        course of business except when such person purchases for the 
        purpose of reconditioning, salvaging, and sale as human food 
        grain or oil seeds contaminated by bird, rodent or animal 
        excreta or by chemicals poisonous, injurious or detrimental to 
        human life or health. 
           Sec. 7.  [COMMISSIONER'S STUDY.] 
           The commissioner, in consultation with the commissioner of 
        health and affected industry, shall study the need for further 
        regulation of the purchase, reconditioning, and sale of salvaged 
        food from food service establishments and retailers within the 
        state and those received in interstate commerce.  The 
        commissioner shall report to the legislature by January 15, 
        1996, on the results of the study. 
           Sec. 8.  [APPROPRIATION.] 
           $35,000 is appropriated from the general fund to the 
        commissioner of agriculture for salvage food regulation as 
        provided for by this act. 
           Presented to the governor May 2, 1994 
           Signed by the governor May 4, 1994, 3:08 p.m.