1.1                          A bill for an act 
  1.2             relating to agriculture; providing for collection of a 
  1.3             milk handling assessment and distribution of the 
  1.4             proceeds; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 32. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [32.91] [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] The definitions in this section 
  1.9   apply to sections 32.91 to 32.93. 
  1.10     Subd. 2.  [ASSESSMENT PERIOD.] "Assessment period" means 
  1.11  the period beginning on the Sunday closest to the first day of 
  1.12  the month and continuing through the Saturday prior to the 
  1.13  Sunday closest to the first day of the subsequent month. 
  1.14     Subd. 3.  [BASIC PRICE.] "Basic price" means the price for 
  1.15  class I milk, as announced each month, that is applicable in the 
  1.16  federal milk marketing order that includes Minnesota. 
  1.17     Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
  1.18  commissioner of agriculture. 
  1.19     Subd. 5.  [HANDLER.] "Handler," with respect to a 
  1.20  particular container of packaged milk, means the wholesale 
  1.21  handler or, if none, the retail handler. 
  1.22     Subd. 6.  [MILK.] "Milk" has the meaning given to "selected 
  1.23  class I dairy products" in section 32.70. 
  1.24     Subd. 7.  [PACKAGED MILK.] "Packaged milk" means milk that 
  1.25  has been processed and placed in containers for ultimate sale to 
  2.1   consumers. 
  2.2      Subd. 8.  [PERSON.] "Person" means an individual, 
  2.3   partnership, firm, corporation, association, or other unit and 
  2.4   the state and all political subdivisions or agencies of the 
  2.5   state. 
  2.6      Subd. 9.  [RETAIL HANDLER.] "Retail handler" means a person 
  2.7   who makes "sales at retail" as that term is defined in section 
  2.8   32.70. 
  2.9      Subd. 10.  [WHOLESALE HANDLER.] "Wholesale handler" has the 
  2.10  meaning given to "wholesaler" in section 32.70. 
  2.11     Sec. 2.  [32.92] [MILK HANDLING ASSESSMENT.] 
  2.12     Subdivision 1.  [ASSESSMENT.] An assessment is imposed at 
  2.13  the rate established in subdivision 2 on the handling in this 
  2.14  state of packaged milk for sale in this state.  With respect to 
  2.15  the handling in this state of a particular container of packaged 
  2.16  milk for sale in this state, the assessment must be paid by the 
  2.17  wholesale handler or, if there is no wholesale handler with 
  2.18  respect to that container of packaged milk, by the retail 
  2.19  handler.  There is no assessment on the handling in this state 
  2.20  of packaged milk for sale in containers that are less than one 
  2.21  quart or 20 or more quarts in volume, or packaged milk that is 
  2.22  sold to an institution that is owned and operated by the state 
  2.23  or federal government. 
  2.24     Subd. 2.  [RATE.] The rate of the assessment levied under 
  2.25  this section is established for each assessment period on the 
  2.26  basis of the basic price of milk in effect on the Sunday 
  2.27  following the first Sunday of the assessment period in 
  2.28  accordance with the following chart: 
  2.29               Basic Price                    Rate of Milk
  2.30                                              Handling Assessment
  2.31       $16.50 per hundredweight and above     0 cents per quart
  2.32       $16.00 to $16.49 per hundredweight     1 cent per quart
  2.33       $15.50 to $15.99 per hundredweight     2 cents per quart
  2.34       $15.00 to $15.49 per hundredweight     3 cents per quart
  2.35       $14.50 to $14.99 per hundredweight     4 cents per quart
  2.36       $14.00 to $14.49 per hundredweight     5 cents per quart
  3.1        below $14.00 per hundredweight         6 cents per quart
  3.2      For any container other than a quart, the assessment is 
  3.3   computed on a quart-equivalent basis. 
  3.4      Subd. 3.  [CALCULATION OF ASSESSMENT.] Handlers shall pay 
  3.5   the assessment for each assessment period on all milk subject to 
  3.6   the assessment sold during the assessment period.  In 
  3.7   calculating the amount of packaged milk handled for sale in this 
  3.8   state each assessment period, the handler shall deduct any 
  3.9   packaged milk returned to the handler during that assessment 
  3.10  period. 
  3.11     Subd. 4.  [ASSESSMENT AS ADDITIONAL.] Any assessment 
  3.12  imposed and collected under this section is in addition to any 
  3.13  taxes or other assessments imposed or collected under any other 
  3.14  law of the state. 
  3.15     Subd. 5.  [RECORDS, REPORTS, AND ADMINISTRATION.] Every 
  3.16  handler subject to the assessment imposed under subdivision 1 
  3.17  shall register with the commissioner within five business days 
  3.18  of becoming subject to the assessment and annually thereafter on 
  3.19  forms provided by the commissioner.  The list of registered 
  3.20  handlers is available to the public.  By the 25th day of each 
  3.21  calendar month, every handler subject to the assessment imposed 
  3.22  under subdivision 1 shall report to the commissioner the 
  3.23  quantity of packaged milk handled in this state for sale in this 
  3.24  state during the preceding assessment period, the quantity of 
  3.25  packaged milk handled that was subject to the milk handling 
  3.26  assessment, and any other information the department of 
  3.27  agriculture determines necessary or useful in the administration 
  3.28  of this chapter and enforcement of the milk handling assessment. 
  3.29     Subd. 6.  [DUE DATES.] Handlers shall pay to the 
  3.30  commissioner the assessment due for the preceding assessment 
  3.31  period not later than the 25th day of each calendar month and 
  3.32  submit any information required by the department on the forms 
  3.33  provided. 
  3.34     Subd. 7.  [MILK HANDLER ASSESSMENT ACCOUNT.] The 
  3.35  commissioner shall immediately pay all funds received from the 
  3.36  milk handling assessment to the state treasury to be deposited 
  4.1   in the milk handler assessment account, which is hereby created. 
  4.2      Sec. 3.  [32.93] [ASSESSMENT DISTRIBUTION; EQUALIZATION 
  4.3   POOL.] 
  4.4      Money in the milk handler assessment account is 
  4.5   appropriated to the commissioner to pool and redistribute 
  4.6   payments at a uniform rate to Minnesota Grade A and B milk 
  4.7   producers.  The commissioner may make payments to a responsible 
  4.8   person who, in turn, must pay Grade A and B milk producers at 
  4.9   the uniform distribution rate. 
  4.10     Sec. 4.  [APPROPRIATION.] 
  4.11     $....... is appropriated from the general fund to the 
  4.12  commissioner of agriculture for fiscal year 1999 to administer 
  4.13  sections 2 and 3.