1.1                          A bill for an act 
  1.2             relating to agriculture; providing for expiration of 
  1.3             the dairy producers board; changing certain fees; 
  1.4             changing water inspection requirement; updating 
  1.5             certain applicable milk standards; relaxing certain 
  1.6             weight restrictions on milk vehicles; appropriating 
  1.7             money; amending Minnesota Statutes 1996, sections 
  1.8             17.76, by adding a subdivision; 32.394, subdivisions 
  1.9             8, 8b, and 11; 32.415; and 169.87, by adding a 
  1.10            subdivision. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 17.76, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 4.  [EXPIRATION.] The dairy producers board expires 
  1.15  on June 30, 2001. 
  1.16     Sec. 2.  Minnesota Statutes 1996, section 32.394, 
  1.17  subdivision 8, is amended to read: 
  1.18     Subd. 8.  [GRADE A INSPECTION FEES.] A processor or 
  1.19  marketing organization of milk, milk products, sheep milk, or 
  1.20  goat milk who wishes to market Grade A milk or use the Grade A 
  1.21  label must apply for Grade A inspection service from the 
  1.22  commissioner.  A pasteurization plant requesting Grade A 
  1.23  inspection service must hold a Grade A permit and pay an annual 
  1.24  inspection fee of no more than $500.  For Grade A farm 
  1.25  inspection service, the fee must be no more than ~~$50~~ $25 per 
  1.26  farm, paid annually by the processor or by the marketing 
  1.27  organization on behalf of its patrons.  For a farm requiring a 
  1.28  reinspection in addition to the required biannual inspections, 
  2.1   an additional fee of no more than $25 per reinspection must be 
  2.2   paid by the processor or by the marketing organization on behalf 
  2.3   of its patrons.  The Grade A farm inspection fee must not exceed 
  2.4   the lesser of (1) ~~40~~ 20 percent of the department's actual 
  2.5   average cost per farm inspection or reinspection; or (2) the 
  2.6   dollar limits set in this subdivision.  No fee increase may be 
  2.7   implemented until after the commissioner has held three or more 
  2.8   public hearings.  
  2.9      Sec. 3.  Minnesota Statutes 1996, section 32.394, 
  2.10  subdivision 8b, is amended to read: 
  2.11     Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] A 
  2.12  processor or marketing organization of milk, milk products, 
  2.13  sheep milk, or goat milk who wishes to market other than Grade A 
  2.14  milk must apply for a manufacturing grade farm certification 
  2.15  inspection from the commissioner.  A manufacturing plant that 
  2.16  pasteurizes milk or milk by-products must pay an annual fee 
  2.17  based on the number of pasteurization units.  This fee must not 
  2.18  exceed $140 per unit.  The fee for farm certification inspection 
  2.19  must not be more than ~~$25~~ $10 per farm to be paid annually by 
  2.20  the processor or by the marketing organization on behalf of its 
  2.21  patrons.  For a farm requiring more than the one inspection for 
  2.22  certification, a reinspection fee of no more than $25 must be 
  2.23  paid by the processor or by the marketing organization on behalf 
  2.24  of its patrons.  The fee must be set by the commissioner in an 
  2.25  amount necessary to cover ~~40~~ 20 percent of the department's 
  2.26  actual cost of providing the annual inspection but must not 
  2.27  exceed the limits in this subdivision.  No fee increase may be 
  2.28  implemented until after the commissioner has held three or more 
  2.29  public hearings.  
  2.30     Sec. 4.  Minnesota Statutes 1996, section 32.394, 
  2.31  subdivision 11, is amended to read: 
  2.32     Subd. 11.  [WAIVER OF RULES; WATER WELL DISTANCE 
  2.33  REQUIREMENT.] A dairy farmer who wishes to be permitted to 
  2.34  produce grade A milk may not be denied the grade A permit solely 
  2.35  because of provisions in rules adopted by the commissioner of 
  2.36  health requiring a minimum distance between a water well and a 
  3.1   dairy barn.  To be eligible for a grade A permit, the following 
  3.2   conditions must be met: 
  3.3      (1) the water well must have been in place prior to January 
  3.4   1, 1974; 
  3.5      (2) the water well must comply with all rules of the 
  3.6   commissioner of health other than the minimum distance 
  3.7   requirement; and 
  3.8      (3) water from the well must be tested at least once every 
  3.9   six months in compliance with guidelines established by the 
  3.10  commissioner of agriculture unless the water from the well meets 
  3.11  water quality requirements for three consecutive years, in which 
  3.12  case the water must be tested only once every 12 months until 
  3.13  the water fails to meet water quality requirements during one of 
  3.14  the tests. 
  3.15     Sec. 5.  Minnesota Statutes 1996, section 32.415, is 
  3.16  amended to read: 
  3.17     32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
  3.18     (a) The commissioner may adopt rules to provide uniform 
  3.19  quality standards, and producers of milk used for manufacturing 
  3.20  purposes shall conform to the standards contained in Subparts B, 
  3.21  C, D, E, and F of the United States Department of Agriculture 
  3.22  Consumer and Marketing Service Recommended Requirements for Milk 
  3.23  for Manufacturing Purposes and its Production and Processing, 
  3.24  Vol. 37 Federal Register, No. 68, Part II, April 7, 1972, as 
  3.25  revised through March 1, ~~1996~~ 1997, except that the commissioner 
  3.26  shall develop methods by which producers can comply with the 
  3.27  standards without violation of religious beliefs.  
  3.28     (b) The commissioner shall perform or contract for the 
  3.29  performance of the inspections necessary to implement this 
  3.30  section or shall certify dairy industry personnel to perform the 
  3.31  inspections.  
  3.32     (c) The commissioner and other employees of the department 
  3.33  shall make every reasonable effort to assist producers in 
  3.34  achieving the milk quality standards at minimum cost and to use 
  3.35  the experience and expertise of the University of Minnesota and 
  3.36  the agricultural extension service to assist producers in 
  4.1   achieving the milk quality standards in the most cost-effective 
  4.2   manner.  
  4.3      (d) The commissioner shall consult with producers, 
  4.4   processors, and others involved in the dairy industry in order 
  4.5   to prepare for the implementation of this section including 
  4.6   development of informational and educational materials, 
  4.7   meetings, and other methods of informing producers about the 
  4.8   implementation of standards under this section. 
  4.9      Sec. 6.  Minnesota Statutes 1996, section 169.87, is 
  4.10  amended by adding a subdivision to read: 
  4.11     Subd. 4.  [VEHICLES TRANSPORTING MILK.] A weight 
  4.12  restriction imposed under subdivision 1 by a local authority, or 
  4.13  imposed under subdivision 2, does not apply to a vehicle 
  4.14  transporting milk from the point of production to the point of 
  4.15  first processing, if at the time the weight restriction is 
  4.16  exceeded the vehicle is carrying milk loaded at only one point 
  4.17  of production. 
  4.18     Sec. 7.  [INFECTED HERD IDENTIFICATION; REPORT.] 
  4.19     The Minnesota board of animal health must design and 
  4.20  implement a program to identify domestic bovine herds in the 
  4.21  state that show evidence of para-tuberculosis ("Johne's 
  4.22  disease") infection. 
  4.23     Not later than October 1, 1998, the executive director of 
  4.24  the board of animal health shall report to the legislature the 
  4.25  board's findings and recommendations concerning 
  4.26  para-tuberculosis infection in the state and measures that 
  4.27  should be implemented to control spread of the disease. 
  4.28     Sec. 8.  [APPROPRIATIONS.] 
  4.29     Subdivision 1.  [DAIRY DIAGNOSTIC TEAMS.] $1,000,000 is 
  4.30  appropriated in fiscal year 1998 and $1,000,000 is appropriated 
  4.31  in fiscal year 1999 from the general fund to the commissioner of 
  4.32  agriculture for grants to extend a one-on-one educational 
  4.33  delivery team system to provide appropriate new technologies 
  4.34  applicable to small and medium sized dairy farms to enhance the 
  4.35  financial success and long-term sustainability of dairy farms in 
  4.36  the state.  Activities of the dairy diagnostic teams must be 
  5.1   spread throughout the dairy producing regions of the state.  The 
  5.2   teams must consist of farm business management instructors, 
  5.3   dairy extension specialists, and dairy industry partners to 
  5.4   deliver the informational and technological services.  Not later 
  5.5   than February 1, 1998, the commissioner shall provide an interim 
  5.6   report to the standing committees of the Minnesota senate and 
  5.7   house of representatives that deal with agricultural policy 
  5.8   issues and funding on activities and accomplishments of the 
  5.9   dairy diagnostic teams.  The commissioner shall provide a 
  5.10  follow-up report to the committees on February 1, 1999. 
  5.11     Subd. 2.  [MILK MARKETING REFORM LITIGATION.] $50,000 is 
  5.12  appropriated in fiscal year 1998 and $50,000 is appropriated in 
  5.13  fiscal year 1999 from the general fund to the commissioner of 
  5.14  agriculture for funding litigation to accomplish reform of the 
  5.15  federal milk market order system and for legal actions opposing 
  5.16  the Northeast Dairy Compact. 
  5.17     Subd. 3.  [ADDITIONAL STRAY VOLTAGE STUDY.] $100,000 is 
  5.18  appropriated from the general fund to the public utilities 
  5.19  commission for costs related to the duties of the commission and 
  5.20  the team of science advisors established under Laws 1994, 
  5.21  chapter 53, as amended.  This appropriation remains available 
  5.22  until June 30, 1999. 
  5.23     Subd. 4.  [DAIRY PRODUCERS BOARD.] $100,000 is appropriated 
  5.24  in fiscal year 1998 and $100,000 is appropriated in fiscal year 
  5.25  1999 from the general fund to the commissioner of agriculture 
  5.26  for activities of the dairy producers board under Minnesota 
  5.27  Statutes, section 17.76. 
  5.28     Subd. 5.  [DAIRY FARM INSPECTION PROGRAM.] $1,300,000 is 
  5.29  appropriated in fiscal year 1998 and $1,300,000 is appropriated 
  5.30  in fiscal year 1999 from the general fund to the commissioner of 
  5.31  agriculture for the grade A and manufacturing grade inspection 
  5.32  programs under Minnesota Statutes, section 32.394. 
  5.33     Subd. 6.  [INFECTED HERD IDENTIFICATION PROGRAM AND 
  5.34  REPORT.] $45,000 is appropriated from the general fund to the 
  5.35  executive director of the board of animal health for the 
  5.36  infected herd identification program and report in section 7.  
  6.1   Any amount of this appropriation that remains unencumbered on 
  6.2   October 1, 1998, reverts to the general fund. 
  6.3      Sec. 9.  [EFFECTIVE DATE.] 
  6.4      Section 6 is effective the day following final enactment.