1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 15451.2A bill for an act1.3relating to agriculture; extending Food Safety and Defense Task Force; modifying 1.4definition of animals;amending Minnesota Statutes 2016, sections 28A.21, 1.5subdivision 6; 31A.02, subdivision 4.1.6May 20, 20171.7The Honorable Kurt L. Daudt1.8Speaker of the House of Representatives1.9The Honorable Michelle L. Fischbach1.10President of the Senate1.11We, the undersigned conferees for H. F. No. 1545 report that we have agreed upon the 1.12items in dispute and recommend as follows:1.13That the Senate recede from its amendment and that H. F. No. 1545 be further amended 1.14as follows:1.15Delete everything after the enacting clause and insert:1.16"ARTICLE 11.17AGRICULTURE APPROPRIATIONS

1.18Section 1. AGRICULTURE APPROPRIATIONS.

1.19The sums shown in the columns marked "Appropriations" are appropriated to the agencies
         1.20and for the purposes specified in this article. The appropriations are from the general
         fund, 1.21or another named fund, and are available for the fiscal years indicated for each purpose.
         1.22The figures "2018" and "2019" used in this article mean that the appropriations listed
         under 1.23them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
         1.24"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The
         biennium" 1.25is fiscal years 2018 and 2019.

1.26APPROPRIATIONS1.27Available for the Year2.1Ending June 302.220182019

2.3Sec. 2. DEPARTMENT OF AGRICULTURE

2.4Subdivision 1.Total Appropriation$53,096,000$53,148,000

2.5Appropriations by Fund2.6201820192.7General52,703,00052,751,0002.8Remediation393,000397,000

2.9The amounts that may be spent for each 2.10purpose are specified in the following 2.11subdivisions.

2.12Subd. 2.Protection Services17,821,00017,825,000

2.13Appropriations by Fund2.14201820192.15General17,428,00017,428,0002.16Remediation393,000397,000

2.17(a) $25,000 the first year and $25,000 the 2.18second year are to develop and maintain 2.19cottage food license exemption outreach and 2.20training materials.2.21(b) $75,000 the first year and $75,000 the 2.22second year are to coordinate the correctional 2.23facility vocational training program and to 2.24assist entities that have explored the feasibility 2.25of establishing a USDA-certified or state 2.26"equal to" food processing facility within 30 2.27miles of the Northeast Regional Corrections 2.28Center.2.29(c) $125,000 the first year and $125,000 the 2.30second year are for additional funding for the 2.31noxious weed and invasive plant program. 2.32These are onetime appropriations.2.33(d) $250,000 the first year and $250,000 the 2.34second year are for transfer to the pollinator 3.1habitat and research account in the agricultural 3.2fund. These are onetime transfers.3.3(e) $393,000 the first year and $397,000 the 3.4second year are from the remediation fund for 3.5administrative funding for the voluntary 3.6cleanup program.3.7(f) $200,000 the first year and $200,000 the 3.8second year are for the industrial hemp pilot 3.9program under Minnesota Statutes, section 3.1018K.09. These are onetime appropriations.3.11(g) $175,000 the first year and $175,000 the 3.12second year are for compensation for 3.13destroyed or crippled livestock under 3.14Minnesota Statutes, section 3.737. This 3.15appropriation may be spent to compensate for 3.16livestock that were destroyed or crippled 3.17during fiscal year 2017. If the amount in the 3.18first year is insufficient, the amount in the 3.19second year is available in the first year.3.20(h) $155,000 the first year and $155,000 the 3.21second year are for compensation for crop 3.22damage under Minnesota Statutes, section 3.233.7371. If the amount in the first year is 3.24insufficient, the amount in the second year is 3.25available in the first year. The commissioner 3.26may use up to $30,000 of the appropriation 3.27each year to reimburse expenses incurred by 3.28the commissioner or the commissioner's 3.29approved agent to investigate and resolve 3.30claims.3.31If the commissioner determines that claims 3.32made under Minnesota Statutes, section 3.737 3.33or 3.7371, are unusually high, amounts 3.34appropriated for either program may be 4.1transferred to the appropriation for the other 4.2program.4.3(i) $250,000 the first year and $250,000 the 4.4second year are to expand current capabilities 4.5for rapid detection, identification, containment, 4.6control, and management of high priority plant 4.7pests and pathogens. These are onetime 4.8appropriations.4.9(j) $300,000 the first year and $300,000 the 4.10second year are for transfer to the noxious 4.11weed and invasive plant species assistance 4.12account in the agricultural fund to award 4.13grants to local units of government under 4.14Minnesota Statutes, section 18.90, with 4.15preference given to local units of government 4.16responding to Palmer amaranth or other weeds 4.17on the eradicate list. These are onetime 4.18transfers.4.19(k) $120,000 the first year and $120,000 the 4.20second year are for wolf-livestock conflict 4.21prevention grants under article 2, section 89. 4.22The commissioner must submit a report to the 4.23chairs and ranking minority members of the 4.24legislative committees with jurisdiction over 4.25agriculture policy and finance by January 15, 4.262020, on the outcomes of the wolf-livestock 4.27conflict prevention grants and whether 4.28livestock compensation claims were reduced 4.29in the areas that grants were awarded. These 4.30are onetime appropriations.

4.314.32Subd. 3.Agricultural Marketing and Development3,996,0003,996,000

4.33(a) The commissioner must provide outreach 4.34to urban farmers regarding the department's 4.35financial and technical assistance programs 5.1and must assist urban farmers in applying for 5.2assistance.5.3(b) $186,000 the first year and $186,000 the 5.4second year are for transfer to the Minnesota 5.5grown account and may be used as grants for 5.6Minnesota grown promotion under Minnesota 5.7Statutes, section 17.102. Grants may be made 5.8for one year. Notwithstanding Minnesota 5.9Statutes, section 16A.28, the appropriations 5.10encumbered under contract on or before June 5.1130, 2019, for Minnesota grown grants in this 5.12paragraph are available until June 30, 2021.5.13(c) $634,000 the first year and $634,000 the 5.14second year are for continuation of the dairy 5.15development and profitability enhancement 5.16and dairy business planning grant programs 5.17established under Laws 1997, chapter 216, 5.18section 7, subdivision 2, and Laws 2001, First 5.19Special Session chapter 2, section 9, 5.20subdivision 2. The commissioner may allocate 5.21the available sums among permissible 5.22activities, including efforts to improve the 5.23quality of milk produced in the state, in the 5.24proportions that the commissioner deems most 5.25beneficial to Minnesota's dairy farmers. The 5.26commissioner must submit a detailed 5.27accomplishment report and a work plan 5.28detailing future plans for, and anticipated 5.29accomplishments from, expenditures under 5.30this program to the chairs and ranking minority 5.31members of the legislative committees with 5.32jurisdiction over agriculture policy and finance 5.33on or before the start of each fiscal year. If 5.34significant changes are made to the plans in 5.35the course of the year, the commissioner must 6.1notify the chairs and ranking minority 6.2members.6.3(d) The commissioner may use funds 6.4appropriated in this subdivision for annual 6.5cost-share payments to resident farmers or 6.6entities that sell, process, or package 6.7agricultural products in this state for the costs 6.8of organic certification. The commissioner 6.9may allocate these funds for assistance for 6.10persons transitioning from conventional to 6.11organic agriculture.

6.126.13Subd. 4.Agriculture, Bioenergy, and Bioproduct Advancement22,581,00022,636,000

6.14(a) $9,300,000 the first year and $9,300,000 6.15the second year are for transfer to the 6.16agriculture research, education, extension, and 6.17technology transfer account under Minnesota 6.18Statutes, section 41A.14, subdivision 3. Of 6.19these amounts: at least $600,000 the first year 6.20and $600,000 the second year are for the 6.21Minnesota Agricultural Experiment Station's 6.22agriculture rapid response fund under 6.23Minnesota Statutes, section 41A.14, 6.24subdivision 1, clause (2); $2,000,000 the first 6.25year and $2,000,000 the second year are for 6.26grants to the Minnesota Agriculture Education 6.27Leadership Council to enhance agricultural 6.28education with priority given to Farm Business 6.29Management challenge grants; $350,000 the 6.30first year and $350,000 the second year are 6.31for potato breeding; and $450,000 the first 6.32year and $450,000 the second year are for the 6.33cultivated wild rice breeding project at the 6.34North Central Research and Outreach Center 6.35to include a tenure track/research associate 6.36plant breeder. The commissioner shall transfer 7.1the remaining funds in this appropriation each 7.2year to the Board of Regents of the University 7.3of Minnesota for purposes of Minnesota 7.4Statutes, section 41A.14. Of the amount 7.5transferred to the Board of Regents, up to 7.6$1,000,000 each year is for research on avian 7.7influenza, including prevention measures that 7.8can be taken.7.9To the extent practicable, funds expended 7.10under Minnesota Statutes, section 41A.14, 7.11subdivision 1, clauses (1) and (2), must 7.12supplement and not supplant existing sources 7.13and levels of funding. The commissioner may 7.14use up to one percent of this appropriation for 7.15costs incurred to administer the program.7.16(b) $13,256,000 the first year and $13,311,000 7.17the second year are for the agricultural growth, 7.18research, and innovation program in 7.19Minnesota Statutes, section 41A.12. Except 7.20as provided below, the commissioner may 7.21allocate the appropriation each year among 7.22the following areas: facilitating the start-up, 7.23modernization, or expansion of livestock 7.24operations including beginning and 7.25transitioning livestock operations; developing 7.26new markets for Minnesota farmers by 7.27providing more fruits, vegetables, meat, grain, 7.28and dairy for Minnesota school children; 7.29assisting value-added agricultural businesses 7.30to begin or expand, access new markets, or 7.31diversify; providing funding not to exceed 7.32$250,000 each year for urban youth 7.33agricultural education or urban agriculture 7.34community development; providing funding 7.35not to exceed $250,000 each year for the good 8.1food access program under Minnesota 8.2Statutes, section 17.1017; facilitating the 8.3start-up, modernization, or expansion of other 8.4beginning and transitioning farms including 8.5by providing loans under Minnesota Statutes, 8.6section 41B.056; sustainable agriculture 8.7on-farm research and demonstration; 8.8development or expansion of food hubs and 8.9other alternative community-based food 8.10distribution systems; enhancing renewable 8.11energy infrastructure and use; crop research; 8.12Farm Business Management tuition assistance; 8.13good agricultural practices/good handling 8.14practices certification assistance; establishing 8.15and supporting farmer-led water management 8.16councils; and implementing farmer-led water 8.17quality improvement practices. The 8.18commissioner may use up to 6.5 percent of 8.19this appropriation for costs incurred to 8.20administer the program.8.21Of the amount appropriated for the agricultural 8.22growth, research, and innovation program in 8.23Minnesota Statutes, section 41A.12:8.24(1) $1,000,000 the first year and $1,000,000 8.25the second year are for distribution in equal 8.26amounts to each of the state's county fairs to 8.27preserve and promote Minnesota agriculture; 8.28and8.29(2) $1,500,000 the first year and $1,500,000 8.30the second year are for incentive payments 8.31under Minnesota Statutes, sections 41A.16, 8.3241A.17, and 41A.18. Notwithstanding 8.33Minnesota Statutes, section 16A.28, the first 8.34year appropriation is available until June 30, 8.352019, and the second year appropriation is 9.1available until June 30, 2020. If this 9.2appropriation exceeds the total amount for 9.3which all producers are eligible in a fiscal 9.4year, the balance of the appropriation is 9.5available for the agricultural growth, research, 9.6and innovation program.9.7The commissioner may use funds appropriated 9.8under this subdivision to award up to two 9.9value-added agriculture grants per year of up 9.10to $1,000,000 per grant for new or expanding 9.11agricultural production or processing facilities 9.12that provide significant economic impact to 9.13the region. The commissioner may use funds 9.14appropriated under this subdivision for 9.15additional value-added agriculture grants for 9.16awards between $1,000 and $200,000 per 9.17grant.9.18Appropriations in clauses (1) and (2) are 9.19onetime. Any unencumbered balance does not 9.20cancel at the end of the first year and is 9.21available for the second year. Notwithstanding 9.22Minnesota Statutes, section 16A.28, 9.23appropriations encumbered under contract on 9.24or before June 30, 2019, for agricultural 9.25growth, research, and innovation grants are 9.26available until June 30, 2021.9.27The base budget for the agricultural growth, 9.28research, and innovation program is 9.29$14,275,000 for fiscal years 2020 and 2021 9.30and includes funding for incentive payments 9.31under Minnesota Statutes, sections 41A.16, 9.3241A.17, 41A.18, and 41A.20.9.33The commissioner must develop additional 9.34innovative production incentive programs to 10.1be funded by the agricultural growth, research, 10.2and innovation program.10.3The commissioner must consult with the 10.4commissioner of transportation, the 10.5commissioner of administration, and local 10.6units of government to identify parcels of 10.7publicly owned land that are suitable for urban 10.8agriculture.10.9(c) $25,000 the first year and $25,000 the 10.10second year are for grants to the Southern 10.11Minnesota Initiative Foundation to promote 10.12local foods through an annual event that raises 10.13public awareness of local foods and connects 10.14local food producers and processors with 10.15potential buyers.

10.16Subd. 5.Administration and Financial Assistance8,698,0008,691,000

10.17(a) $474,000 the first year and $474,000 the 10.18second year are for payments to county and 10.19district agricultural societies and associations 10.20under Minnesota Statutes, section 38.02, 10.21subdivision 1. Aid payments to county and 10.22district agricultural societies and associations 10.23shall be disbursed no later than July 15 of each 10.24year. These payments are the amount of aid 10.25from the state for an annual fair held in the 10.26previous calendar year.10.27(b) $1,000 the first year and $1,000 the second 10.28year are for grants to the Minnesota State 10.29Poultry Association.10.30(c) $18,000 the first year and $18,000 the 10.31second year are for grants to the Minnesota 10.32Livestock Breeders Association.10.33(d) $47,000 the first year and $47,000 the 10.34second year are for the Northern Crops 11.1Institute. These appropriations may be spent 11.2to purchase equipment.11.3(e) $220,000 the first year and $220,000 the 11.4second year are for farm advocate services.11.5(f) $17,000 the first year and $17,000 the 11.6second year are for grants to the Minnesota 11.7Horticultural Society.11.8(g) $108,000 the first year and $108,000 the 11.9second year are for annual grants to the 11.10Minnesota Turf Seed Council for basic and 11.11applied research on: (1) the improved 11.12production of forage and turf seed related to 11.13new and improved varieties; and (2) native 11.14plants, including plant breeding, nutrient 11.15management, pest management, disease 11.16management, yield, and viability. The grant 11.17recipient may subcontract with a qualified 11.18third party for some or all of the basic or 11.19applied research. Any unencumbered balance 11.20does not cancel at the end of the first year and 11.21is available for the second year. These are 11.22onetime appropriations.11.23(h) $113,000 the first year and $113,000 the 11.24second year are for transfer to the Board of 11.25Trustees of the Minnesota State Colleges and 11.26Universities for statewide mental health 11.27counseling support to farm families and 11.28business operators. South Central College shall 11.29serve as the fiscal agent.11.30(i) $550,000 the first year and $550,000 the 11.31second year are for grants to Second Harvest 11.32Heartland on behalf of Minnesota's six 11.33Feeding America food banks for the purchase 11.34of milk for distribution to Minnesota's food 12.1shelves and other charitable organizations that 12.2are eligible to receive food from the food 12.3banks. Milk purchased under the grants must 12.4be acquired from Minnesota milk processors 12.5and based on low-cost bids. The milk must be 12.6allocated to each Feeding America food bank 12.7serving Minnesota according to the formula 12.8used in the distribution of United States 12.9Department of Agriculture commodities under 12.10The Emergency Food Assistance Program 12.11(TEFAP). Second Harvest Heartland must 12.12submit quarterly reports to the commissioner 12.13on forms prescribed by the commissioner. The 12.14reports must include, but are not limited to, 12.15information on the expenditure of funds, the 12.16amount of milk purchased, and the 12.17organizations to which the milk was 12.18distributed. Second Harvest Heartland may 12.19enter into contracts or agreements with food 12.20banks for shared funding or reimbursement of 12.21the direct purchase of milk. Each food bank 12.22receiving money from this appropriation may 12.23use up to two percent of the grant for 12.24administrative expenses. Any unencumbered 12.25balance does not cancel at the end of the first 12.26year and is available for the second year.12.27(j) $1,100,000 the first year and $1,100,000 12.28the second year are for grants to Second 12.29Harvest Heartland on behalf of the six Feeding 12.30America food banks that serve Minnesota to 12.31compensate agricultural producers and 12.32processors for costs incurred to harvest and 12.33package for transfer surplus fruits, vegetables, 12.34and other agricultural commodities that would 12.35otherwise go unharvested, be discarded, or 12.36sold in a secondary market. Surplus 13.1commodities must be distributed statewide to 13.2food shelves and other charitable organizations 13.3that are eligible to receive food from the food 13.4banks. Surplus food acquired under this 13.5appropriation must be from Minnesota 13.6producers and processors. Second Harvest 13.7Heartland must report in the form prescribed 13.8by the commissioner. Second Harvest 13.9Heartland may use up to 15 percent of each 13.10grant for matching administrative and 13.11transportation expenses. Any unencumbered 13.12balance does not cancel at the end of the first 13.13year and is available for the second year.13.14(k) $150,000 the first year and $150,000 the 13.15second year are for grants to the Center for 13.16Rural Policy and Development.13.17(l) $235,000 the first year and $235,000 the 13.18second year are for grants to the Minnesota 13.19Agricultural Education and Leadership 13.20Council for programs of the council under 13.21Minnesota Statutes, chapter 41D.13.22(m) $600,000 the first year and $600,000 the 13.23second year are for grants to the Board of 13.24Regents of the University of Minnesota to 13.25develop, in consultation with the 13.26commissioner of agriculture and the Board of 13.27Animal Health, a software tool or application 13.28through the Veterinary Diagnostic Laboratory 13.29that empowers veterinarians and producers to 13.30understand the movement of unique pathogen 13.31strains in livestock and poultry production 13.32systems, monitor antibiotic resistance, and 13.33implement effective biosecurity measures that 13.34promote animal health and limit production 13.35losses. These are onetime appropriations.14.1(n) $150,000 the first year is for the tractor 14.2rollover protection pilot program under 14.3Minnesota Statutes, section 17.119. This is a 14.4onetime appropriation and is available until 14.5June 30, 2019.14.6(o) $400,000 the first year is for a grant to the 14.7Board of Trustees of the Minnesota State 14.8Colleges and Universities to expand and 14.9renovate the GROW-IT Center at Metropolitan 14.10State University. This is a onetime 14.11appropriation.14.12By January 15, 2018, the commissioner shall 14.13submit a report to the chairs and ranking 14.14minority members of the legislative 14.15committees with jurisdiction over agricultural 14.16policy and finance with a list of inspections 14.17the department conducts at more frequent 14.18intervals than federal law requires, an 14.19explanation of why the additional inspections 14.20are necessary, and provide recommendations 14.21for eliminating any unnecessary inspections.

14.22Sec. 3. BOARD OF ANIMAL HEALTH$5,420,000$5,456,000

14.2314.24Sec. 4. AGRICULTURAL UTILIZATION RESEARCH INSTITUTE$3,793,000$3,793,000

14.25    Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
         14.26amended by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article
         2, 14.27section 26, is amended to read:

14.2814.29Subd. 4.Agriculture, Bioenergy, and Bioproduct Advancement14,993,00019,010,00018,316,000

14.30$4,483,000 the first year and $8,500,000 the 14.31second year are for transfer to the agriculture 14.32research, education, extension, and technology 14.33transfer account under Minnesota Statutes, 15.1section 
         41A.14, subdivision 3. The transfer in 15.2this paragraph includes money for plant 15.3breeders at the University of Minnesota for 15.4wild rice, potatoes, and grapes. Of these 15.5amounts, at least $600,000 each year is for the 15.6Minnesota Agricultural Experiment Station's 15.7Agriculture Rapid Response Fund under 15.8Minnesota Statutes, section 
         41A.14, 15.9subdivision 1
         , clause (2). Of the amount 15.10appropriated in this paragraph, $1,000,000 15.11each year is for transfer to the Board of 15.12Regents of the University of Minnesota for 15.13research to determine (1) what is causing avian 15.14influenza, (2) why some fowl are more 15.15susceptible, and (3) prevention measures that 15.16can be taken. Of the amount appropriated in 15.17this paragraph, $2,000,000 each year is for 15.18grants to the Minnesota Agriculture Education 15.19Leadership Council to enhance agricultural 15.20education with priority given to Farm Business 15.21Management challenge grants. The 15.22commissioner shall transfer the remaining 15.23grant funds in this appropriation each year to 15.24the Board of Regents of the University of 15.25Minnesota for purposes of Minnesota Statutes, 15.26section 
         41A.14.15.27To the extent practicable, funds expended 15.28under Minnesota Statutes, section 
         41A.14, 15.29subdivision 1
         , clauses (1) and (2), must 15.30supplement and not supplant existing sources 15.31and levels of funding. The commissioner may 15.32use up to 4.5 percent of this appropriation for 15.33costs incurred to administer the program. Any 15.34unencumbered balance does not cancel at the 15.35end of the first year and is available for the 15.36second year.16.1$10,235,000 the first year and $10,235,00016.2$9,541,000 the second year are for the 16.3agricultural growth, research, and innovation 16.4program in Minnesota Statutes, section 16.541A.12
         . No later than February 1, 2016, and 16.6February 1, 2017, the commissioner must 16.7report to the legislative committees with 16.8jurisdiction over agriculture policy and finance 16.9regarding the commissioner's 16.10accomplishments and anticipated 16.11accomplishments in the following areas: 16.12facilitating the start-up, modernization, or 16.13expansion of livestock operations including 16.14beginning and transitioning livestock 16.15operations; developing new markets for 16.16Minnesota farmers by providing more fruits, 16.17vegetables, meat, grain, and dairy for 16.18Minnesota school children; assisting 16.19value-added agricultural businesses to begin 16.20or expand, access new markets, or diversify 16.21products; developing urban agriculture; 16.22facilitating the start-up, modernization, or 16.23expansion of other beginning and transitioning 16.24farms including loans under Minnesota 16.25Statutes, section 
         41B.056; sustainable 16.26agriculture on farm research and 16.27demonstration; development or expansion of 16.28food hubs and other alternative 16.29community-based food distribution systems; 16.30incentive payments under Minnesota Statutes, 16.31sections 41A.16, 41A.17, and 41A.18; and 16.32research on bioenergy, biobased content, or 16.33biobased formulated products and other 16.34renewable energy development. The 16.35commissioner may use up to 4.5 percent of 16.36this appropriation for costs incurred to 17.1administer the program. Any unencumbered 17.2balance does not cancel at the end of the first 17.3year and is available for the second year. 17.4Notwithstanding Minnesota Statutes, section 17.516A.28
         , the appropriations encumbered under 17.6contract on or before June 30, 2017, for 17.7agricultural growth, research, and innovation 17.8grants are available until June 30, 2019.17.9The commissioner may use funds appropriated 17.10for the agricultural growth, research, and 17.11innovation program as provided in this 17.12paragraph. The commissioner may award 17.13grants to owners of Minnesota facilities 17.14producing bioenergy, biobased content, or a 17.15biobased formulated product; to organizations 17.16that provide for on-station, on-farm field scale 17.17research and outreach to develop and test the 17.18agronomic and economic requirements of 17.19diverse strands of prairie plants and other 17.20perennials for bioenergy systems; or to certain 17.21nongovernmental entities. For the purposes of 17.22this paragraph, "bioenergy" includes 17.23transportation fuels derived from cellulosic 17.24material, as well as the generation of energy 17.25for commercial heat, industrial process heat, 17.26or electrical power from cellulosic materials 17.27via gasification or other processes. Grants are 17.28limited to 50 percent of the cost of research, 17.29technical assistance, or equipment related to 17.30bioenergy, biobased content, or biobased 17.31formulated product production or $500,000, 17.32whichever is less. Grants to nongovernmental 17.33entities for the development of business plans 17.34and structures related to community ownership 17.35of eligible bioenergy facilities together may 17.36not exceed $150,000. The commissioner shall 18.1make a good-faith effort to select projects that 18.2have merit and, when taken together, represent 18.3a variety of bioenergy technologies, biomass 18.4feedstocks, and geographic regions of the 18.5state. Projects must have a qualified engineer 18.6provide certification on the technology and 18.7fuel source. Grantees must provide reports at 18.8the request of the commissioner.18.9Of the amount appropriated for the agricultural 18.10growth, research, and innovation program in 18.11this subdivision, $1,000,000 the first year and 18.12$1,000,000 the second year are for distribution 18.13in equal amounts to each of the state's county 18.14fairs to preserve and promote Minnesota 18.15agriculture.18.16Of the amount appropriated for the agricultural 18.17growth, research, and innovation program in 18.18this subdivision, $500,000 in fiscal year 2016 18.19and $1,500,000 $806,000 in fiscal year 2017 18.20are for incentive payments under Minnesota 18.21Statutes, sections 
         41A.16, 
         41A.17, and 18.2241A.18
         . If the appropriation exceeds the total 18.23amount for which all producers are eligible in 18.24a fiscal year, the balance of the appropriation 18.25is available to the commissioner for the 18.26agricultural growth, research, and innovation 18.27program. Notwithstanding Minnesota Statutes, 18.28section 
         16A.28, the first year appropriation is 18.29available until June 30, 2017, and the second 18.30year appropriation is available until June 30, 18.312018. The commissioner may use up to 4.5 18.32percent of the appropriation for administration 18.33of the incentive payment programs.18.34Of the amount appropriated for the agricultural 18.35growth, research, and innovation program in 19.1this subdivision, $250,000 the first year is for 19.2grants to communities to develop or expand 19.3food hubs and other alternative 19.4community-based food distribution systems. 19.5Of this amount, $50,000 is for the 19.6commissioner to consult with existing food 19.7hubs, alternative community-based food 19.8distribution systems, and University of 19.9Minnesota Extension to identify best practices 19.10for use by other Minnesota communities. No 19.11later than December 15, 2015, the 19.12commissioner must report to the legislative 19.13committees with jurisdiction over agriculture 19.14and health regarding the status of emerging 19.15alternative community-based food distribution 19.16systems in the state along with 19.17recommendations to eliminate any barriers to 19.18success. Any unencumbered balance does not 19.19cancel at the end of the first year and is 19.20available for the second year. This is a onetime 19.21appropriation.19.22$250,000 the first year and $250,000 the 19.23second year are for grants that enable retail 19.24petroleum dispensers to dispense biofuels to 19.25the public in accordance with the biofuel 19.26replacement goals established under 19.27Minnesota Statutes, section 
         239.7911. A retail 19.28petroleum dispenser selling petroleum for use 19.29in spark ignition engines for vehicle model 19.30years after 2000 is eligible for grant money 19.31under this paragraph if the retail petroleum 19.32dispenser has no more than 15 retail petroleum 19.33dispensing sites and each site is located in 19.34Minnesota. The grant money received under 19.35this paragraph must be used for the installation 19.36of appropriate technology that uses fuel 20.1dispensing equipment appropriate for at least 20.2one fuel dispensing site to dispense gasoline 20.3that is blended with 15 percent of 20.4agriculturally derived, denatured ethanol, by 20.5volume, and appropriate technical assistance 20.6related to the installation. A grant award must 20.7not exceed 85 percent of the cost of the 20.8technical assistance and appropriate 20.9technology, including remetering of and 20.10retrofits for retail petroleum dispensers and 20.11replacement of petroleum dispenser projects. 20.12The commissioner may use up to $35,000 of 20.13this appropriation for administrative expenses. 20.14The commissioner shall cooperate with biofuel 20.15stakeholders in the implementation of the grant 20.16program. The commissioner must report to 20.17the legislative committees with jurisdiction 20.18over agriculture policy and finance by 20.19February 1 each year, detailing the number of 20.20grants awarded under this paragraph and the 20.21projected effect of the grant program on 20.22meeting the biofuel replacement goals under 20.23Minnesota Statutes, section 
         239.7911. These 20.24are onetime appropriations.20.25$25,000 the first year and $25,000 the second 20.26year are for grants to the Southern Minnesota 20.27Initiative Foundation to promote local foods 20.28through an annual event that raises public 20.29awareness of local foods and connects local 20.30food producers and processors with potential 20.31buyers.20.32    Sec. 6. APPROPRIATION CANCELLATION.20.33All unspent funds, estimated to be $694,000, appropriated for the agricultural growth,
         20.34research, and innovation program and designated for bioeconomy incentive payments
         under 20.35Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
         amended 21.1by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section
         26, 21.2are canceled to the general fund.21.3EFFECTIVE DATE.This section is effective the day following final enactment.21.4ARTICLE 221.5AGRICULTURAL POLICY21.6    Section 1. Minnesota Statutes 2016, section 3.7371, is amended to read:21.73.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.21.8    Subdivision 1. Authorization. Notwithstanding section 
         3.736, subdivision 3, paragraph 21.9(e), or any other law, a person who owns an agricultural crop or pasture shall be
         compensated 21.10by the commissioner of agriculture for an agricultural crop, or fence surrounding
         the crop 21.11or pasture, that is damaged or destroyed by elk as provided in this section.21.12    Subd. 2. Claim form. The crop or pasture owner must prepare a claim on forms provided 21.13by the commissioner and available at on the county extension agent's office Department of 21.14Agriculture's Web site or by request from the commissioner. The claim form must be filed 21.15with the commissioner.21.16    Subd. 3. Compensation.(a) The crop owner is entitled to the target price or the market 21.17price, whichever is greater, of the damaged or destroyed crop plus adjustments for
         yield 21.18loss determined according to agricultural stabilization and conservation service programs
         21.19for individual farms, adjusted annually, as determined by the commissioner, upon 21.20recommendation of the county extensioncommissioner's approved agent for the owner's 21.21county. Verification of fence damage or destruction by elk may be provided by submitting
         21.22photographs or other evidence and documentation together with a statement from an
         21.23independent witness using forms prescribed by the commissioner. The commissioner,
         upon 21.24recommendation of the commissioner's approved agent, shall determine whether the crop 21.25damage or destruction or damage to or destruction of a fence surrounding a crop or
         pasture 21.26is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed.
         In 21.27any fiscal year, an owner may not be compensated for a damaged or destroyed crop or
         fence 21.28surrounding a crop or pasture that is less than $100 in value and may be compensated
         up 21.29to $20,000, as determined under this section, if normal harvest procedures for the
         area are 21.30followed.21.31    (b) In any fiscal year, the commissioner may provide compensation for claims filed 21.32under this section up to the amount expressly appropriated for this purpose.22.1    Subd. 4. Insurance deduction. Payments authorized by this section must be reduced 22.2by amounts received by the owner as proceeds from an insurance policy covering crop
         22.3losses or damage to or destruction of a fence surrounding a crop or pasture, or from
         any 22.4other source for the same purpose including, but not limited to, a federal program.22.5    Subd. 5. Decision on claims; opening land to hunting. If the commissioner finds that 22.6the crop or pasture owner has shown that the damage or destruction of the owner's crop or 22.7damage to or destruction of a fence surrounding a crop or pasture was caused more
         probably 22.8than not by elk, the commissioner shall pay compensation as provided in this section
         and 22.9the rules of the commissioner. A crop An owner who receives compensation under this 22.10section may, by written permission, permit hunting on the land at the landowner's
         discretion.22.11    Subd. 6. Denial of claim; appeal. (a) If the commissioner denies compensation claimed 22.12by a crop or pasturean owner under this section, the commissioner shall issue a written 22.13decision based upon the available evidence including a statement of the facts upon
         which 22.14the decision is based and the conclusions on the material issues of the claim. A copy
         of the 22.15decision must be mailed to the crop or pasture owner.22.16(b) A decision denying compensation claimed under this section is not subject to the
         22.17contested case review procedures of chapter 14, but a crop or pasture an owner may have 22.18the claim reviewed in a trial de novo in a court in the county where the loss occurred.
         The 22.19decision of the court may be appealed as in other civil cases. Review in court may
         be obtained 22.20by filing a petition for review with the administrator of the court within 60 days
         following 22.21receipt of a decision under this section. Upon the filing of a petition, the administrator
         shall 22.22mail a copy to the commissioner and set a time for hearing within 90 days after the
         filing.22.23    Subd. 7. Rules. The commissioner shall adopt rules and may amend rules to carry out 22.24this section. The commissioner may use the expedited rulemaking process in section
         
         14.38922.25to adopt and amend rules authorized in this section. The rules must include:22.26(1) methods of valuation of crops damaged or destroyed;22.27(2) criteria for determination of the cause of the crop damage or destruction;22.28(3) notice requirements by the owner of the damaged or destroyed crop;22.29(4) compensation rates for fence damage or destruction that shall include a minimum 22.30claim of $75.00 per incident and a maximum of must not exceed $1,800 per claimant per 22.31fiscal year; and22.32(5) any other matters determined necessary by the commissioner to carry out this section.23.1    Subd. 8. Report. The commissioner must submit a report to the chairs of the house of 23.2representatives and senate committees and divisions with jurisdiction over agriculture
         and 23.3environment and natural resources by December 15 each year that details the total
         amount 23.4of damages paid, by elk herd, in the previous two fiscal years.23.5    Sec. 2. Minnesota Statutes 2016, section 15.985, is amended to read:23.615.985 ADVISORY INSPECTIONS.23.7(a) Upon the voluntary request of a person to a state agency for an advisory inspection
         23.8for the purpose of complying with state law, the agency must, except as provided in
         23.9paragraphs (f) and (g), conduct an advisory inspection. An agency is not required
         to conduct 23.10an advisory inspection if the agency has a regularly scheduled inspection that would
         occur 23.11within 90 days after the request for the advisory inspection, or if before an advisory
         inspection 23.12is requested, the agency has notified the person that it will be conducting an inspection
         23.13within 45 days. If an advisory inspection results in findings that potentially could
         make a 23.14person subject to a fine or other penalty imposed by the agency, the agency must notify
         the 23.15person in writing of those findings within ten days of the inspection.23.16(1) Except as provided in clause (2), if within 60 days of receiving notice, the person
         23.17notifies the agency that it has corrected the situation that made the person potentially
         subject 23.18to the fine or penalty, and the agency later determines that the situation is corrected,
         the 23.19agency may not impose a fine or penalty as a result of the findings in the advisory
         inspection.23.20    (2) For violations of chapter 177, if the person notifies the agency within the time
         period 23.21for remedying violations required under the applicable section of chapter 177 that
         it has 23.22corrected the situation that made the person potentially subject to the fine or penalty,
         and 23.23the agency later determines that the situation is corrected, the agency may not impose
         a fine 23.24or penalty as a result of the finding in the advisory inspection.23.25    (3) A person may not request more than one advisory inspection from the same agency
         23.26in a calendar year. A person may not request an advisory inspection after an inspection
         23.27resulting in a fine or other penalty has been determined and the violator notified
         of the 23.28amount to be paid, until fines or penalties have been paid or settled.23.29(b) For purposes of this section:23.30(1) "inspection" includes an examination of real or personal property or an audit
         or other 23.31examination of financial or other documents;23.32(2) "penalty" includes a civil or administrative fine or other financial sanction;24.1(3) "person" includes a real person and businesses, including corporations, partnerships,
         24.2limited liability companies, and unincorporated associations; and24.3(4) "state agency" means a department, agency, board, commission, constitutional office,
         24.4or other group in the executive branch of state government.24.5(c) If an agency revises, amends, extends, or adds additional violations to a notice,
         the 24.6person has 60 days from the date of those changes to correct the situation without
         fine or 24.7penalty. For violations of chapter 177, the person has the time period for remedying
         violations 24.8under the applicable section of chapter 177 to correct the situation without fine
         or penalty.24.9    (d) An agency conducting an inspection under this section may impose and collect from
         24.10the person requesting the inspection a fee equal to the costs incurred by the agency
         related 24.11to the inspection. Fees under this section shall be considered charges for goods and
         services 24.12provided for the direct and primary use of a private individual, business, or other
         entity 24.13under section 
         16A.1283, paragraph (b), clause (3). Fee revenue collected under this section 24.14must be deposited in an appropriate fund other than the general fund and is appropriated
         24.15from that fund to the agency collecting the fee for the purpose of conducting inspections
         24.16under this section.24.17    (e) Nothing in this section shall prohibit or interfere with an agency offering similar
         24.18programs that allow independent audits or inspections, including the environmental
         24.19improvement program under chapter 114C. If a person conducts a self-audit under chapter
         24.20114C, the terms and conditions of this section do not apply. For advisory inspections
         24.21conducted by the Pollution Control Agency, terms and conditions of sections 
         114C.20 to 24.22114C.28 
         shall be used instead of those in paragraphs (a) to (c) and (g).24.23(f) If agency staff resources are limited, an agency must give higher priority to
         the 24.24agency's regular inspections over advisory inspections under this section. Insofar
         as 24.25conducting advisory inspections reduces an agency's costs, the savings must be reflected
         24.26in the charges for advisory inspections. Before hiring additional staff complement
         for 24.27purposes of this section, an agency must report to the chairs and ranking minority
         members 24.28of the legislative budget committees with jurisdiction over the agency documenting:
         (1) the 24.29demand for advisory inspections and why additional staff complement is needed to meet
         24.30the demand; and (2) that the revenue generated by advisory inspections will cover
         the 24.31expenses of the additional staff complement. If a person requests an advisory inspection,
         24.32but the agency does not have staff resources necessary to conduct the advisory inspection
         24.33before a regular inspection is conducted, and the regular inspection results in findings
         that 24.34could make a person subject to a fine or penalty, the agency must take into account
         the 25.1person's request for an advisory inspection and the person's desire to take corrective
         action 25.2before taking any enforcement action against the person.25.3(g) This section does not apply to:25.4(1) criminal penalties;25.5(2) situations in which implementation of this section is prohibited by federal law
         or 25.6would result in loss of federal funding or in other federal sanctions or in which
         25.7implementation would interfere with multistate agreements, international agreements,
         or 25.8agreements between state and federal regulatory agencies;25.9(3) conduct constituting fraud;25.10(4) violations in a manner that endangers human life or presents significant risk
         of major 25.11injury or severe emotional harm to humans;25.12(5) violations that are part of a pattern that has occurred repeatedly and shows willful
         25.13intent;25.14(6) violations for which it may be demonstrated that the alternative inspections process
         25.15is being used to avoid enforcement;25.16(7) violations that occur within three years of violating an applicable law;25.17(8) the Department of Revenue;25.18(9) the Workers' Compensation Division at the Department of Labor and Industry;25.19(10) violations of vehicle size weight limits under sections 
         169.80 to 
         169.88;25.20(11) commercial motor vehicle inspections under section 
         169.781 and motor carrier 25.21regulations under chapter 221;25.22(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
         25.23division provides free inspections similar to those under this section;25.24(13) (12) state inspections or surveys of hospitals, nursing homes, outpatient surgical 25.25centers, supervised living facilities, board and lodging with special services, home
         care, 25.26housing with services and assisted living settings, hospice, and supplemental nursing
         services 25.27agencies;25.28(14) (13) examinations of health maintenance organizations or county-based purchasing 25.29entities regulated under chapter 62D;25.30(15) (14) special transportation services under section 
         174.30; and26.1(16) (15) entities regulated by the Department of Commerce's Financial Institutions and 26.2Insurance Divisions for purposes of regulatory requirements of those divisions.26.3If an agency determines that this section does not apply due to situations specified
         in clause 26.4(2), the agency must report the basis for that determination to the chairs and ranking
         minority 26.5members of the legislative committees with jurisdiction over the agency.26.6(h) An agency may terminate an advisory inspection and proceed as if an inspection
         26.7were a regular inspection if, in the process of conducting an advisory inspection,
         the agency 26.8finds a situation that the agency determines: could lead to criminal penalties; endangers
         26.9human life or presents significant risk of major injury or severe emotional harm to
         humans; 26.10presents a severe and imminent threat to animals, food, feed, crops, commodities,
         or the 26.11environment; or evidences a pattern of willful violations.26.12    Sec. 3. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:26.13    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share grants 26.14to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit
         eligible 26.15tractors with eligible rollover protective structures.26.16(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented 26.17cost to purchase, ship, and install an eligible rollover protective structure. The
         commissioner 26.18must increase the a farmer's grant award amount over the 70 percent grant limitation 26.19requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.26.20(c) Schools are eligible for grants that cover the full amount of a school's documented
         26.21cost to purchase, ship, and install an eligible rollover protective structure.26.22(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International 26.23standard J2194 is certified to appropriate national or international rollover protection structure
         26.24standards with a seat belt.26.25(c) (e) A tractor is eligible if the tractor was built before 1987.26.26EFFECTIVE DATE.This section is effective retroactively from July 1, 2016.26.27    Sec. 4. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:26.28    Subd. 2. Promotion; administration. The commissioner may spend up to 20 six percent 26.29of total program dollars each fiscal year to promote and administer the program to
         Minnesota 26.30farmers and schools.27.1    Sec. 5. Minnesota Statutes 2016, section 17.53, subdivision 2, is amended to read:27.2    Subd. 2. Agricultural commodity. (a) Except as provided in paragraph (b), "agricultural 27.3commodity" means any agricultural product, including, without limitation, animals
         and 27.4animal products, grown, raised, produced, or fed within Minnesota for use as food,
         feed, 27.5seed, or any industrial or chemurgic purpose.27.6(b) For wheat, barley, corn, and cultivated wild rice, "agricultural commodity" means 27.7wheat, barley, corn and cultivated wild rice including, without limitation, wheat, barley, 27.8corn and cultivated wild rice grown or produced within or outside Minnesota, for use as
         27.9food, feed, seed, or any industrial or chemurgic purpose.27.10    Sec. 6. Minnesota Statutes 2016, section 17.53, subdivision 8, is amended to read:27.11    Subd. 8. First purchaser. (a) Except as provided in paragraph (b), "first purchaser" 27.12means any person that buys agricultural commodities for movement into commercial channels
         27.13from the producer; or any lienholder, secured party or pledgee, public or private,
         or assignee 27.14of said lienholder, secured party or pledgee, who gains title to the agricultural
         commodity 27.15from the producer as the result of exercising any legal rights by the lienholder,
         secured 27.16party, pledgee, or assignee thereof, regardless of when the lien, security interest
         or pledge 27.17was created and regardless of whether the first purchaser is domiciled within the
         state or 27.18without. "First purchaser" does not mean the Commodity Credit Corporation when a 27.19commodity is used as collateral for a federal nonrecourse loan unless the commissioner
         27.20determines otherwise.27.21(b) For wheat, barley, corn, and cultivated wild rice, "first purchaser" means a person 27.22who buys, receives delivery of, or provides storage for the agricultural commodity
         from a 27.23producer for movement into commercial channels; or a lienholder, secured party, or
         pledgee, 27.24who gains title to the agricultural commodity from the producers as the result of
         exercising 27.25any legal rights by the lienholder, secured party, pledgee, or assignee, regardless
         of when 27.26the lien, security interest, or pledge was created and regardless of whether or not
         the first 27.27purchaser is domiciled in the state. "First purchaser" does not mean the Commodity
         Credit 27.28Corporation when the wheat, barley, corn or cultivated wild rice is used as collateral for a 27.29federal nonrecourse loan unless the commissioner determines otherwise.27.30    Sec. 7. Minnesota Statutes 2016, section 17.53, subdivision 13, is amended to read:27.31    Subd. 13. Producer. (a) Except as provided in paragraph (b), "producer" means any 27.32person who owns or operates an agricultural producing or growing facility for an agricultural
         27.33commodity and shares in the profits and risk of loss from such operation, and who
         grows, 28.1raises, feeds or produces the agricultural commodity in Minnesota during the current
         or 28.2preceding marketing year.28.3(b) For wheat, barley, corn, and cultivated wild rice, "producer" means in addition to 28.4the meaning in paragraph (a) and for the purpose of the payment or the refund of the
         checkoff 28.5fee paid pursuant to sections 
         17.51 to 
         17.69 only, a person who delivers into, stores within, 28.6or makes the first sale of the agricultural commodity in Minnesota.28.7    Sec. 8. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:28.8    Subd. 18. Noxious weed education and notification.(a) The commissioner shall 28.9disseminate information and conduct educational campaigns with respect to control
         of 28.10noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
         28.11to eliminate or manage these plants. The commissioner shall call and attend meetings
         and 28.12conferences dealing with the subject of noxious weeds. The commissioner shall maintain
         28.13on the department's Web site noxious weed management information including but not
         28.14limited to the roles and responsibilities of citizens and government entities under
         sections 28.1518.76 
         to 
         18.91 and specific guidance as to whom a person should contact to report a noxious 28.16weed issue.28.17(b) The commissioner shall post notice on the department's Web site and alert appropriate
         28.18media outlets when a weed on the eradicate list is confirmed for the first time in
         a county.28.19    Sec. 9. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 28.20read:28.21    Subd. 9b.Experimental use permit."Experimental use permit" means a permit issued 28.22by the United States Environmental Protection Agency as authorized in Section 5 of
         the 28.23Federal Insecticide, Fungicide, and Rodenticide Act.28.24    Sec. 10. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 28.25read:28.26    Subd. 9c.Experimental use pesticide product."Experimental use pesticide product" 28.27means any federally registered or unregistered pesticide whose use is authorized by
         an 28.28experimental use permit issued by the United States Environmental Protection Agency.28.29    Sec. 11. [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.28.30    Subdivision 1.Account established.A pollinator habitat and research account is 28.31established in the agricultural fund. Money in the account, including interest, is
         appropriated 29.1to the Board of Regents of the University of Minnesota for pollinator research and
         outreach 29.2including, but not limited to, science-based best practices and the identification
         and 29.3establishment of habitat beneficial to pollinators.29.4    Subd. 2.Expiration.This section expires July 1, 2022.29.5    Sec. 12. Minnesota Statutes 2016, section 18B.065, subdivision 8, is amended to read:29.6    Subd. 8. Waste pesticide program surcharge. The commissioner shall annually collect 29.7a waste pesticide program surcharge of $50 on each agricultural waste pesticide product 29.8and $125 on each nonagricultural waste pesticide product registered in the state as part of 29.9a pesticide product registration application under section 
         18B.26, subdivision 3.29.10    Sec. 13. Minnesota Statutes 2016, section 18B.26, subdivision 1, is amended to read:29.11    Subdivision 1. Requirement. (a) Except as provided in paragraphs (b) to (d) (e), a person 29.12may not use or distribute a pesticide in this state unless it is registered with the
         commissioner. 29.13Pesticide registrations expire on December 31 of each year and may be renewed on or
         before 29.14that date for the following calendar year.29.15(b) Registration is not required if a pesticide is shipped from one plant or warehouse
         to 29.16another plant or warehouse operated by the same person and used solely at the plant
         or 29.17warehouse as an ingredient in the formulation of a pesticide that is registered under
         this 29.18chapter.29.19(c) An unregistered pesticide that was previously registered with the commissioner
         may 29.20be used for a period of two years following the cancellation of the registration of
         the pesticide, 29.21unless the commissioner determines that the continued use of the pesticide would cause
         29.22unreasonable adverse effects on the environment, or with the written permission of
         the 29.23commissioner. To use the unregistered pesticide at any time after the two-year period,
         the 29.24pesticide end user must demonstrate to the satisfaction of the commissioner, if requested,
         29.25that the pesticide has been continuously registered under a different brand name or
         by a 29.26different manufacturer and has similar composition, or, the pesticide end user obtains
         the 29.27written permission of the commissioner.29.28(d) The commissioner may allow specific pesticide products that are not registered
         with 29.29the commissioner to be distributed in this state for use in another state.29.30(e) A substance or mixture of substances being tested only to determine its potential
         29.31efficacy as a pesticide, or to determine its toxicity or other properties, and not
         requiring the 30.1issuance of an experimental use permit under United States Environmental Protection
         30.2Agency criteria specified in federal regulations, is not required to be registered.30.3(e) (f) Each pesticide with a unique United States Environmental Protection Agency 30.4pesticide registration number or a unique brand name must be registered with the 30.5commissioner.30.6(f) (g) It is unlawful for a person to distribute or use a pesticide in the state, or to
         sell 30.7into the state for use in the state, any pesticide product that has not been registered
         by the 30.8commissioner and for which the applicable pesticide registration application fee,
         gross sales 30.9fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and
         4.30.10(g) (h) Every person who sells for use in the state a pesticide product that has been 30.11registered by the commissioner shall pay to the commissioner the applicable registration
         30.12application fees, sales fees, and waste pesticide program surcharges. These sales
         expressly 30.13include all sales made electronically, telephonically, or by any other means that
         result in a 30.14pesticide product being shipped to or used in the state. There is a rebuttable presumption
         30.15that pesticide products that are sold or distributed in or into the state by any person
         are sold 30.16or distributed for use in the state.30.17    Sec. 14. Minnesota Statutes 2016, section 18B.28, subdivision 1, is amended to read:30.18    Subdivision 1. Requirement. A person may not use or distribute an experimental use 30.19pesticide product in the state until it is registered with the commissioner. Experimental
         use 30.20pesticide product registrations expire on December 31 of each year and may be renewed
         30.21on or before that date. A substance or mixture of substances being tested only to determine 30.22its potential efficacy as a pesticide, or to determine its toxicity or other properties,
         and not 30.23requiring the issuance of an experimental use permit under United States Environmental
         30.24Protection Agency criteria specified in federal regulations, is not required to be
         registered.30.25    Sec. 15. Minnesota Statutes 2016, section 18B.28, subdivision 3, is amended to read:30.26    Subd. 3. Application. A person must file an application for experimental use pesticide 30.27product registration with the commissioner. An application to register an experimental
         use 30.28pesticide product must include:30.29(1) the name and address of the applicant;30.30(2) a federalcopy of the United States Environmental Protection Agency approval 30.31document permit;30.32(3) a description of the purpose or objectives of the experimental use product;31.1(4) ana copy of the experimental use pesticide labeling accepted experimental use 31.2pesticide product label by the United States Environmental Protection Agency;31.3(5) the name, address, and telephone number of cooperators or participants in this
         state;31.4(6) the amount of material to be shipped or used in this state; and31.5(7) other information requested by the commissioner.31.6    Sec. 16. Minnesota Statutes 2016, section 18B.305, is amended to read:31.718B.305 PESTICIDE EDUCATION AND TRAINING.31.8    Subdivision 1. Education and training. (a) The commissioner, as the lead agency, shall 31.9develop, implement or approve, and evaluate, in consultation with University of Minnesota
         31.10Extension, the Minnesota State Colleges and Universities system, and other educational
         31.11institutions, innovative educational and training programs addressing pesticide concerns
         31.12including:31.13(1) water quality protection;31.14(2) endangered species protection;31.15(3) minimizing pesticide residues in food and water;31.16(4) worker protection and applicator safety;31.17(5) chronic toxicity;31.18(6) integrated pest management and pest resistance;31.19(7) pesticide disposal;31.20(8) pesticide drift;31.21(9) relevant laws including pesticide labels and labeling and state and federal rules
         and 31.22regulations; and31.23(10) current science and technology updates; and31.24(11) thresholds and guidance to reduce the impacts of insecticide on pollinators.31.25(b) The commissioner shall appoint educational planning committees which must include
         31.26representatives of industry and applicators.31.27(c) Specific current regulatory concerns must be discussed and, if appropriate, 31.28incorporated into each training session. Relevant changes to pesticide product labels
         or 31.29labeling or state and federal rules and regulations may be included.32.1(d) The commissioner may approve programs from private industry, higher education
         32.2institutions, and nonprofit organizations that meet minimum requirements for education,
         32.3training, and certification.32.4    Subd. 2. Training manual and examination development. The commissioner, in 32.5consultation with University of Minnesota Extension and other higher education institutions,
         32.6shall continually revise and update pesticide applicator training manuals and examinations.
         32.7The manuals and examinations must be written to meet or exceed the minimum standards
         32.8required by the United States Environmental Protection Agency and pertinent state
         specific 32.9information. Questions in the examinations must be determined by the commissioner
         in 32.10consultation with other responsible agencies. Manuals and examinations must include
         32.11pesticide management practices that discuss prevention of pesticide occurrence in
         32.12groundwater and surface water of the state, and economic thresholds and guidance for 32.13insecticide use.32.14    Sec. 17. Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read:32.15    Subdivision 1. Requirement. (a) A person may not apply a pesticide for hire without a 32.16commercial applicator license for the appropriate use categories or a structural pest
         control 32.17license.32.18    (b) A commercial applicator licensee must have a valid license identification card
         to 32.19purchase a restricted use pesticide or apply pesticides for hire and must display
         it upon 32.20demand by an authorized representative of the commissioner or a law enforcement officer.
         32.21The commissioner shall prescribe the information required on the license identification
         32.22card.32.23(c) A person licensed under this section is considered qualified and is not required
         to 32.24verify, document, or otherwise prove a particular need prior to use, except as required
         by 32.25the federal label.32.26    Sec. 18. Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read:32.27    Subdivision 1. Requirement. (a) Except for a licensed commercial applicator, certified 32.28private applicator, or licensed structural pest control applicator, a person, including
         a 32.29government employee, may not purchase or use a restricted use pesticide in performance
         32.30of official duties without having a noncommercial applicator license for an appropriate
         use 32.31category.33.1    (b) A licensee must have a valid license identification card when applying pesticides
         33.2and must display it upon demand by an authorized representative of the commissioner
         or a 33.3law enforcement officer. The license identification card must contain information
         required 33.4by the commissioner.33.5(c) A person licensed under this section is considered qualified and is not required
         to 33.6verify, document, or otherwise prove a particular need prior to use, except as required
         by 33.7the federal label.33.8    Sec. 19. Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read:33.9    Subdivision 1. Requirement. (a) Except for a licensed commercial or noncommercial 33.10applicator, only a certified private applicator may use a restricted use pesticide
         to produce 33.11an agricultural commodity:33.12(1) as a traditional exchange of services without financial compensation;33.13(2) on a site owned, rented, or managed by the person or the person's employees; or33.14(3) when the private applicator is one of two or fewer employees and the owner or
         33.15operator is a certified private applicator or is licensed as a noncommercial applicator.33.16(b) A person may not purchase a restricted use pesticide without presenting a license
         33.17card, certified private applicator card, or the card number.33.18(c) A person certified under this section is considered qualified and is not required
         to 33.19verify, document, or otherwise prove a particular need prior to use, except as required
         by 33.20the federal label.33.21    Sec. 20. Minnesota Statutes 2016, section 18B.37, subdivision 3, is amended to read:33.22    Subd. 3. Structural pest control applicators. (a) A structural pest control applicator 33.23must maintain a record of each structural pest control application conducted by that
         person 33.24or by the person's employees. The record must include the:33.25(1) date of structural pest control application;33.26(2) target pest;33.27(3) brand name of the pesticide, United States Environmental Protection Agency 33.28registration number, and amount used;33.29(4) for fumigation, the temperature and exposure time;33.30(5) time the pesticide application was completed;34.1(6) name and address of the customer;34.2(7) name of structural pest control applicator, name of company and address of applicator
         34.3or company, and license number of applicator; and34.4(8) any other information required by the commissioner.34.5(b) All information for this record requirement must be contained in a document for
         34.6each pesticide application. An invoice containing the required information may constitute
         34.7the record.34.8(c) The record must be completed no later than five days after the application of
         the 34.9pesticide.34.10(d) Records must be retained for five years after the date of treatment.34.11(e) A copy of the record must be given to a person who ordered the application that
         is 34.12present at the site where the structural pest control application is conducted, placed
         in a 34.13conspicuous location at the site where the structural pest control application is
         conducted 34.14immediately after the application of the pesticides, or delivered to the person who
         ordered 34.15an application or the owner of the site. The commissioner must make sample forms available
         34.16that meet the requirements of this subdivision.34.17(f) A structural applicator must post in a conspicuous place inside a renter's apartment
         34.18where a pesticide application has occurred a list of postapplication precautions contained
         34.19on the label of the pesticide that was applied in the apartment and any other information
         34.20required by the commissioner.34.21    Sec. 21. Minnesota Statutes 2016, section 18C.70, subdivision 5, is amended to read:34.22    Subd. 5. Expiration. This section expires January 8, 2017 June 30, 2020.34.23EFFECTIVE DATE.This section is effective retroactively from January 7, 2017.34.24    Sec. 22. Minnesota Statutes 2016, section 18C.71, subdivision 4, is amended to read:34.25    Subd. 4. Expiration. This section expires January 8, 2017 June 30, 2020.34.26EFFECTIVE DATE.This section is effective retroactively from January 7, 2017.34.27    Sec. 23. Minnesota Statutes 2016, section 18H.06, subdivision 2, is amended to read:34.28    Subd. 2. Occasional sales. (a) An individual may offer nursery stock for sale and be 34.29exempt from the requirement to obtain a nursery stock certificate if:35.1(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;35.2(2) all nursery stock sold or distributed by the individual is intended for planting
         in 35.3Minnesota;35.4(3) all nursery stock purchased or procured for resale or distribution was grown in
         35.5Minnesota and has been certified by the commissioner; and35.6(4) the individual conducts sales or distributions of nursery stock on ten or fewer
         days 35.7in a calendar year.35.8(b) A municipality may offer certified nursery stock for sale and be exempt from the
         35.9requirement to obtain a nursery stock certificate if:35.10(1) all nursery stock offered for sale or distributed is intended for planting by
         residents 35.11of the municipality on public property or public easements within the municipal boundary;35.12(2) all nursery stock purchased or procured for resale or distribution is grown in
         35.13Minnesota and has been certified by the commissioner; and35.14(3) the municipality submits to the commissioner before any sale or distribution of
         35.15nursery stock a list of all suppliers who provide the municipality with nursery stock.35.16(b) (c) The commissioner may prescribe the conditions of the exempt nursery sales under 35.17this subdivision and may conduct routine inspections of the nursery stock offered
         for sale.35.18    Sec. 24. Minnesota Statutes 2016, section 18H.07, subdivision 2, is amended to read:35.19    Subd. 2. Nursery stock grower certificate. (a) A nursery stock grower must pay an 35.20annual fee based on the area of all acreage on which nursery stock is grown as follows:35.21(1) less than one-half acre, $150;35.22(2) from one-half acre to two acres, $200;35.23(3) over two acres up to five acres, $300;35.24(4) over five acres up to ten acres, $350;35.25(5) over ten acres up to 20 acres, $500;35.26(6) over 20 acres up to 40 acres, $650;35.27(7) over 40 acres up to 50 acres, $800;35.28(8) over 50 acres up to 200 acres, $1,100;35.29(9) over 200 acres up to 500 acres, $1,500; and36.1(10) over 500 acres, $1,500 plus $2 for each additional acre.36.2(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee
         due must 36.3be charged for each month, or portion thereof, that the fee is delinquent up to a
         maximum 36.4of 30 percent for any application for renewal not postmarked or electronically date stamped36.5by December 31 of the current year.36.6(c) A nursery stock grower found operating without a valid nursery stock grower 36.7certificate cannot offer for sale or sell nursery stock until: (1) payment is received
         by the 36.8commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate
         fee 36.9owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.36.10    Sec. 25. Minnesota Statutes 2016, section 18H.07, subdivision 3, is amended to read:36.11    Subd. 3. Nursery stock dealer certificate. (a) A nursery stock dealer must pay an annual 36.12fee based on the dealer's gross sales of certified nursery stock per location during
         the most 36.13recent certificate year. A certificate applicant operating for the first time must
         pay the 36.14minimum fee. The fees per sales location are:36.15(1) gross sales up to $5,000, $150;36.16(2) gross sales over $5,000 up to $20,000, $175;36.17(3) gross sales over $20,000 up to $50,000, $300;36.18(4) gross sales over $50,000 up to $75,000, $425;36.19(5) gross sales over $75,000 up to $100,000, $550;36.20(6) gross sales over $100,000 up to $200,000, $675; and36.21(7) gross sales over $200,000, $800.36.22(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee
         due must 36.23be charged for each month, or portion thereof, that the fee is delinquent up to a
         maximum 36.24of 30 percent for any application for renewal not postmarked or electronically date stamped 36.25by December 31 of the current year.36.26(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate
         36.27cannot offer for sale or sell nursery stock until: (1) payment is received by the
         commissioner 36.28for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed;
         and (2) a 36.29new certificate is issued to the nursery stock dealer by the commissioner.37.1    Sec. 26. Minnesota Statutes 2016, section 21.111, subdivision 2, is amended to read:37.2    Subd. 2. Inspected. "Inspected" means that the potato plants are examined in the field 37.3and that the harvested potatoes produced by such the potato plants are examined by or under 37.4the authority of the commissioner. For seed potatoes produced in a lab, inspected means 37.5that the lab's records, including records related to the lab's procedures and protocols,
         as well 37.6as the seed potatoes, have been examined under the authority of the commissioner.37.7    Sec. 27. Minnesota Statutes 2016, section 21.111, subdivision 3, is amended to read:37.8    Subd. 3. Certified. "Certified" means that the potatoes were inspected while growing 37.9in the field and again after being harvested, and were thereafter duly certified by
         or under 37.10the authority of the commissioner, as provided in sections 
         21.111 to 
         21.122, and as provided 37.11by rules adopted and published by the commissioner. For seed potatoes produced in a lab, 37.12certified means that:37.13(1) the seed potato lab facilities and the lab's procedures and protocols have been
         37.14examined under the authority of the commissioner; and37.15(2) the seed potatoes have been inspected after they have been harvested, removed,
         or 37.16released from the lab, and were duly certified by or under the authority of the commissioner,
         37.17as provided in sections 21.111 to 21.122.37.18    Sec. 28. Minnesota Statutes 2016, section 21.113, is amended to read:37.1921.113 CERTIFICATES OF INSPECTION.37.20(a) The commissioner shall cause issue certificates of inspection to be issued only when 37.21seed potatoes have been inspected while growing in the field and again after being
         harvested.37.22(b) For seed potatoes produced in a lab, the commissioner shall issue certificates
         of 37.23inspection only after:37.24(1) the seed potato lab facility and the lab's records have been inspected; and37.25(2) the seed potatoes have been inspected after they have been harvested, removed,
         or 37.26released from the lab.37.27Such (c) Certificates of inspection under this section shall show the varietal purity and 37.28the freedom from disease and physical injury of such potatoes and shall contain such any37.29other information as may be prescribed by rules adopted and published under sections
         
         21.11137.30to 
         21.122.38.1    Sec. 29. Minnesota Statutes 2016, section 21.117, is amended to read:38.221.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS.38.3(a) Any person may make application to the commissioner for inspection or certification
         38.4of seed potatoes growing or to be grown. Upon receiving such application and the required
         38.5fee and such other information as may be required, the commissioner shall cause such
         38.6potatoes to be inspected or certified in accordance with the provisions of sections
         
         21.11138.7to 
         21.122 and the rules adopted and published thereunder.38.8(b) If a grower wishes to withdraw a field or lab after having made application for 38.9inspection and such withdrawal is requested before the field or lab inspection has been 38.10made, the fee paid shall be refunded to said grower.38.11    Sec. 30. Minnesota Statutes 2016, section 25.32, is amended to read:38.1225.32 COMMISSIONER'S DUTIES.38.13The commissioner shall administer sections 
         25.31 to 
         25.43shall be administered by the 38.14commissioner.38.15    Sec. 31. Minnesota Statutes 2016, section 25.33, subdivision 5, is amended to read:38.16    Subd. 5. Commercial feed. "Commercial feed" means materials or combinations of 38.17materials that are distributed or intended to be distributed for use as feed or for
         mixing in 38.18feed, including feed for aquatic animals, unless the materials are specifically exempted.
         38.19Unmixed whole seeds and physically altered entire unmixed seeds, as identified in the 38.20United States grain standards, if the whole or physically altered seeds are not chemically 38.21changed, are not labeled as a feed or for use as feed, or are not adulterated within the meaning 38.22of section 
         25.37, paragraph (a), are exempt. The commissioner by rule may exempt from 38.23this definition, or from specific provisions of sections 
         25.31 to 
         25.43, commodities such as 38.24hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds
         or 38.25substances if those commodities, compounds, or substances are not intermixed with
         other 38.26materials, are not labeled as a feed or for use as feed, and are not adulterated within the 38.27meaning of section 
         25.37, paragraph (a).38.28    Sec. 32. Minnesota Statutes 2016, section 25.33, subdivision 10, is amended to read:38.29    Subd. 10. Manufacture. "Manufacture" means to grind, mix or, blend, or further process, 38.30package, or label a commercial feed for distribution.39.1    Sec. 33. Minnesota Statutes 2016, section 25.33, subdivision 21, is amended to read:39.2    Subd. 21. Commissioner. "Commissioner" means the commissioner of agriculture or 39.3a designated representative the commissioner's agent.39.4    Sec. 34. Minnesota Statutes 2016, section 25.341, subdivision 1, is amended to read:39.5    Subdivision 1. Requirement. Before a person may: (1) manufacture a commercial feed 39.6in the state; (2) distribute a commercial feed in or into the state; or (3) have the
         person's 39.7name appear on the label of a commercial feed as guarantor, the person must have a
         39.8commercial feed license for each guarantor, or manufacturing or distributing facility. A 39.9person who makes only retail sales of commercial feed, guaranteed by another, is not
         required 39.10to obtain a license.39.11    Sec. 35. Minnesota Statutes 2016, section 25.341, subdivision 2, is amended to read:39.12    Subd. 2. Application; fee; term. A person who is required to have a commercial feed 39.13license shall must submit an application on a form provided or approved by the commissioner 39.14accompanied by a an application fee of $75 paid to the commissioner for each location. A 39.15license is not transferable from one person to another, from one ownership to another,
         or 39.16from one location to another. The license year is the calendar year. A license expires
         on 39.17December 31 of the year for which it is issued, except that a license is valid through January 39.1831 of the next year or until the issuance of the renewal license, whichever comes first, if 39.19the licensee has filed a renewal application with the commissionerthat has been received 39.20by the commissioner on or before December 31 of the year for which the current license
         39.21was issued, or postmarked on or before December 31 of the year for which the current 39.22license was issued. Any person who is required to have, but fails to obtain a license
         or a 39.23licensee who fails to comply with license renewal requirements, shall must pay a $100 late 39.24fee in addition to the license fee.39.25    Sec. 36. Minnesota Statutes 2016, section 25.35, is amended to read:39.2625.35 LABELING.39.27(a) A commercial feed, except a customer formula feed, must be accompanied by a label
         39.28bearing the following information:39.29(1) the product name and the brand name, if any, under which the commercial feed is
         39.30distributed;40.1(2) the guaranteed analysis, stated in terms the commissioner requires by rule, to
         advise 40.2the user of the composition of the feed or to support claims made in the labeling.
         The 40.3substances or elements must be determinable by laboratory methods such as the methods
         40.4published by the AOAC International or other generally recognized methods;40.5(3) the common or usual name of each ingredient used in the manufacture of the 40.6commercial feed. The commissioner may by rule permit the use of a collective term
         for a 40.7group of ingredients which perform a similar function, or may exempt commercial feeds
         40.8or any group of commercial feeds from this requirement on finding that an ingredient
         40.9statement is not required in the interest of consumers;40.10(4) the name and principal mailing address of the manufacturer or the person responsible
         40.11for distributing the commercial feed;40.12(5) adequate directions for use for all commercial feeds containing drugs and for
         such 40.13other feeds as the commissioner may require by rule as necessary for their safe and
         effective 40.14use;40.15(6) precautionary statements which the commissioner determines by rule are necessary
         40.16for the safe and effective use of the commercial feed; and40.17(7) a quantity statement.40.18(b) A customer formula feed must be accompanied by a label, invoice, delivery slip,
         or 40.19other shipping document bearing the following information:40.20(1) name and address of the manufacturer;40.21(2) name and address of the purchaser;40.22(3) date of delivery;40.23(4) the product name and either (i) the quantity of each commercial feed and each
         other 40.24ingredient used in the mixture, or (ii) a guaranteed analysis and list of ingredients
         in paragraph 40.25(a), clauses (2) and (3);40.26(5) adequate directions for use for all customer formula feeds containing drugs and
         for 40.27other feeds the commissioner requires by rule as necessary for their safe and effective
         use;40.28(6) precautionary statements the commissioner determines by rule are necessary for
         the 40.29safe and effective use of the customer formula feed;40.30(7) if a product containing a drug is used:40.31(i) the purpose of the medication (claim statement); and41.1(ii) the established name of each active drug ingredient and the level of each drug
         used 41.2in the final mixture expressed in a manner required by the commissioner by rule; and41.3(8) for a customer formula feed for which the formula is developed by someone other
         41.4than the manufacturer, a disclaimer may be included on the label stating "THIS FEED
         IS 41.5A CUSTOMER FORMULA FEED DEVELOPED BY SOMEONE OTHER THAN THE 41.6MANUFACTURER. THE MANUFACTURER DOES NOT CLAIM, REPRESENT, 41.7WARRANT, OR GUARANTEE, AND IS NOT RESPONSIBLE FOR THE NUTRITIONAL 41.8ADEQUACY OF THIS FEED OR THE NUTRITIONAL SUITABILITY OF THIS FEED 41.9FOR ITS INTENDED PURPOSE."; and41.10(9) a quantity statement.41.11(c) The manufacturer of a customer formula feed the formula of which is developed
         by 41.12someone other than the manufacturer is not responsible or liable for the nutritional
         adequacy 41.13or the nutritional suitability of the feed for its intended purpose if: (1) the manufacturer
         does 41.14not make a claim of nutritional adequacy for the customer formula feed and does not
         make 41.15a claim for nutritional suitability of the feed for its intended purpose; and (2)
         the manufacturer 41.16includes the disclaimer in paragraph (b), clause (8). A person other than the manufacturer
         41.17who develops or recommends a formula for a customer formula feed is responsible for
         41.18providing to the manufacturer of the feed the appropriate labeling information and
         for 41.19providing the appropriate use information to the feed manufacturer.41.20    Sec. 37. Minnesota Statutes 2016, section 25.371, subdivision 2, is amended to read:41.21    Subd. 2. Certificate application. (a) A person may apply to the commissioner for a 41.22good manufacturing practices certificate for commercial feed and feed ingredients.
         41.23Application for good manufacturing practices certificates must be made on forms provided
         41.24or approved by the commissioner. The commissioner shall conduct inspections of facilities
         41.25for persons that have applied for or intend to apply for a good manufacturing practices
         41.26certificate for commercial feed and feed ingredients from the commissioner. The 41.27commissioner shall not conduct an inspection under this section subdivision if the applicant 41.28has not paid in full the inspection fee for previous inspections. Certificate issuance
         shall be 41.29based on compliance with subdivisions 3 to 14, or United States Food and Drug 41.30Administration rules regarding preventive controls for animal feed.41.31(b) The commissioner may assess a fee for the inspection, service, and work performed
         41.32in carrying out the issuance of a good manufacturing practices certificate for commercial
         41.33feed and feed ingredients. The inspection fee must be based on mileage and the cost
         of 41.34inspection.42.1    Sec. 38. Minnesota Statutes 2016, section 25.38, is amended to read:42.225.38 PROHIBITED ACTS.42.3The following acts and causing the following acts in Minnesota are prohibited:42.4(1) manufacture or distribution of any commercial feed that is adulterated or misbranded;42.5(2) adulteration or misbranding of any commercial feed;42.6(3) distribution of agricultural commodities such as whole seed, hay, straw, stover,
         silage, 42.7cobs, husks, and hulls, which are adulterated within the meaning of section 
         25.37, paragraph 42.8(a);42.9(4) removal or disposal of a commercial feed in violation of an order under section
         
         25.42;42.10(5) failure or refusal to obtain a commercial feed license under section 
         25.341or to 42.11provide a small package listing under section 25.39; or42.12(6) failure to pay inspection fees, to register a small package under section 25.39, or to 42.13file reports as required by section 
         25.39.42.14    Sec. 39. Minnesota Statutes 2016, section 25.39, subdivision 1, is amended to read:42.15    Subdivision 1. Amount of fee. (a) An inspection fee at the rate of 16 cents per ton must 42.16be paid to the commissioner on commercial feeds distributed in this state by the person
         who 42.17first distributes the commercial feed, except that:42.18(1) no fee need be paid on:42.19(i) a commercial feed if the payment has been made by a previous distributor; or42.20(ii) any feed ingredient in a customer formula feeds if the inspection fee is paid on the 42.21commercial feeds which are used as ingredients feed that has been directly furnished by the 42.22customer; or42.23(2) a Minnesota feed distributor who can substantiate that greater than 50 percent of
         the 42.24distribution of commercial feed is to purchasers outside the state may purchase commercial
         42.25feeds without payment of the inspection fee under a tonnage fee exemption permit issued
         42.26by the commissioner no fee need be paid on a first distribution if made to a qualified buyer 42.27who, with approval from the commissioner, is responsible for the fee. Such location specific42.28license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to 42.29commercial feed distributors licensees who distribute feed or feed ingredients outside the 42.30state, and who submit a $100 nonrefundable application fee and comply with rules adopted 42.31by the commissioner relative to record keeping, tonnage of commercial feed distributed
         in 43.1Minnesota, total of all commercial feed tonnage distributed, and all other information
         which 43.2the commissioner may require so as to ensure that proper inspection fee payment has
         been 43.3made.43.4(b) In the case of pet food or specialty pet food distributed in the state only in packages 43.5of ten pounds or less, a listing of distributor must register each product and submit a current 43.6label for each product must be submitted annually on forms provided by the commissioner 43.7and, accompanied by an annual application fee of $100 for each product in lieu of the 43.8inspection fee. This annual fee is due by July 1 must be received by the commissioner on 43.9or before June 30 or postmarked on or before June 30. The inspection fee required by 43.10paragraph (a) applies to pet food or specialty pet food distributed in packages exceeding 43.11ten pounds.43.12(c) In the case of specialty pet food distributed in the state only in packages of
         ten pounds 43.13or less, a listing of each product and a current label for each product must be submitted
         43.14annually on forms provided by the commissioner and accompanied by an annual fee of
         43.15$100 for each product in lieu of the inspection fee. This annual fee is due by July
         1. The 43.16inspection fee required by paragraph (a) applies to specialty pet food distributed
         in packages 43.17exceeding ten pounds.43.18(d) (c) The minimum inspection fee is $75 per annual reporting period.43.19    Sec. 40. Minnesota Statutes 2016, section 25.39, subdivision 1a, is amended to read:43.20    Subd. 1a. Containers of ten pounds or less. A distributor who is subject to the annual 43.21fee specified in subdivision 1, paragraph (b) or (c), shall must do the following:43.22(1) before beginning distribution, file register with the commissioner a listing of the pet 43.23and specialty pet foods to be distributed in the state only in containers of ten pounds
         or less, 43.24on forms provided by the commissioner. The listing registration under this clause must be 43.25renewed annually on or before July 1 June 30 and is the basis for the payment of the annual 43.26fee. New products added during the year must be submitted to the commissioner as a
         43.27supplement to the annual listing registration before distribution; and43.28(2) if the annual renewal of the listing registration is not received or postmarked on or 43.29before July 1 June 30 or if an unlisted unregistered product is distributed, pay a late filing 43.30fee of $100 per product in addition to the normal charge for the listing registration. The late 43.31filing fee under this clause is in addition to any other penalty under this chapter.44.1    Sec. 41. Minnesota Statutes 2016, section 25.39, subdivision 2, is amended to read:44.2    Subd. 2. Annual statement. A person who is liable for the payment of a fee under this 44.3section shall must file with the commissioner on forms furnished by the commissioner an 44.4annual statement setting forth the number of net tons of commercial feeds distributed
         in 44.5this state during the calendar year. The report is due by on or before the 31st of each January44.6following the year of distribution. The inspection fee at the rate specified in subdivision 1 44.7must accompany the statement. For each tonnage report not filed with the commissioner or 44.8payment of inspection fees not made on time received by the commissioner on or before 44.9January 31 or postmarked on or before January 31, a penalty of ten percent of the amount 44.10due, with a minimum penalty of $10, must be assessed against the license holder, and
         the 44.11amount of fees due, plus penalty, is a debt and may be recovered in a civil action
         against 44.12the license holder. The assessment of this penalty does not prevent the department
         from 44.13taking other actions as provided in this chapter.44.14    Sec. 42. Minnesota Statutes 2016, section 25.39, subdivision 3, is amended to read:44.15    Subd. 3. Records. Each person required to pay an inspection fee or to report in accordance 44.16with this section shall must keep records, as determined by the commissioner, accurately 44.17detailing the tonnage of commercial feed distributed in this state. Records upon which
         the 44.18tonnage is based must be maintained for six years and made available to the commissioner
         44.19for inspection, copying, and audit. A person who is located outside of this state
         must maintain 44.20and make available records required by this section in this state or pay all costs
         incurred in 44.21auditing of the records at another location. Unless required for the enforcement of
         this 44.22chapter, the information in the records required by this subdivision is private or
         nonpublic.44.23    Sec. 43. Minnesota Statutes 2016, section 25.40, subdivision 2, is amended to read:44.24    Subd. 2. Notice; public comment. Before the issuance, amendment, or repeal of any 44.25rule authorized by sections 
         25.31 to 
         25.43, the commissioner shall publish the proposed 44.26rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated
         to 44.27give interested parties, including all current license holders, adequate notice and
         shall afford 44.28all interested persons an opportunity to present their views orally or in writing,
         within a 44.29reasonable period of time. After consideration of all views presented by interested
         persons, 44.30the commissioner shall take appropriate action to issue the proposed rule or to amend
         or 44.31repeal an existing rule. The provisions of this subdivision notwithstanding, if the
         44.32commissioner, pursuant to the authority of sections 
         25.31 to 
         25.43, adopts the official 44.33definitions of feed ingredients or and official feed terms as adopted by the Association of 45.1American Feed Control Officials, any amendment or modification adopted by the association
         45.2shall be is adopted automatically under sections 
         25.31 to 
         25.43 without regard to the 45.3publication of the notice required by this subdivision unless the commissioner, by
         order 45.4specifically determines that the amendment or modification shall not be adopted.45.5    Sec. 44. Minnesota Statutes 2016, section 25.41, subdivision 1, is amended to read:45.6    Subdivision 1. Authorization; limitation. For the purpose of enforcement of sections 45.725.31
          to 
         25.43, and associated rules, in order to determine whether the provisions have been 45.8complied with, including whether or not any operations may be subject to such provisions,
         45.9officers or employees duly designated by the commissioner or the commissioner's agent, 45.10upon presenting appropriate credentials, and a written notice to the owner, operator,
         or agent 45.11in charge, are authorized:45.12(1) to enter, during normal business hours, any factory, warehouse, or establishment
         45.13within the state in which commercial feeds are manufactured, processed, packed, or
         held 45.14for distribution, or to enter any vehicle being used to transport or hold such feeds;
         and45.15(2) to inspect at reasonable times, within reasonable limits, and in a reasonable
         manner, 45.16such factory, warehouse, establishment or vehicle and all pertinent equipment, finished
         and 45.17unfinished materials, containers, and labeling therein. The inspection may include
         the 45.18verification of records and production and control procedures related to the manufacture,
         45.19distribution, storage, handling, or disposal of commercial feed as may be necessary
         to 45.20determine compliance with this chapter.45.21    Sec. 45. Minnesota Statutes 2016, section 25.41, subdivision 2, is amended to read:45.22    Subd. 2. Notification; promptness. A separate notice shall must be given for each 45.23inspection, but a notice shall is not be required for each entry made during the period covered 45.24by the inspection. Each inspection shall be commencedmust begin and be completed with 45.25reasonable promptness. Upon completion of the inspection, the owner, operator, or
         agent 45.26in charge of the facility or vehicle shall must be so notified.45.27    Sec. 46. Minnesota Statutes 2016, section 25.41, subdivision 3, is amended to read:45.28    Subd. 3. Receipt for samples. If the officer or employee commissioner or the 45.29commissioner's agent making such inspection of a factory, warehouse, or other establishment 45.30has obtained a sample in the course of the inspection, upon completion of the inspection
         45.31and prior to leaving the premises the officer or employee commissioner or the commissioner's 46.1agent shall give to the owner, operator, or agent in charge a receipt describing the samples
         46.2obtained.46.3    Sec. 47. Minnesota Statutes 2016, section 25.41, subdivision 5, is amended to read:46.4    Subd. 5. Entry of premises. For the purpose of the enforcement of sections 
         25.31 to 46.525.43
         , the commissioner or the commissioner's duly designated agent is authorized to enter 46.6upon any public or private premises including any vehicle of transport during regular
         business 46.7hours to have access to, and to obtain samples, and to examine and copy records relating 46.8to distribution of commercial feeds.46.9    Sec. 48. Minnesota Statutes 2016, section 25.41, subdivision 7a, is amended to read:46.10    Subd. 7a. Manufacturer's report of investigation. If the inspection and analysis of an 46.11official sample indicates that a commercial feed has been adulterated or misbranded,
         the 46.12person whose name appears on the label of the indicated commercial feed as guarantor
         shall46.13must provide a manufacturer's report of investigation to the commissioner within 30 days
         46.14following the receipt of the official analysis.46.15    Sec. 49. Minnesota Statutes 2016, section 25.42, is amended to read:46.1625.42 DETAINED COMMERCIAL FEEDS.46.17    Subdivision 1. Withdrawal from distribution order. When the commissioner or the 46.18commissioner's authorized agent has reasonable cause to believe any lot of commercial feed 46.19is being distributed in violation of any of the provisions of sections 
         25.31 to 
         25.43 or of any 46.20of the prescribed rules under sections 
         25.31 to 
         25.43, the commissioner or the commissioner's 46.21agent may issue and enforce a written or printed "withdrawal from distribution" order,
         46.22warning the distributor not to dispose of the lot of commercial feed in any manner
         until 46.23written permission is given by the commissioner or the court. The commissioner shall
         release 46.24the lot of withdrawn commercial feed so withdrawn when said provisions and sections 25.31 46.25to 25.43 and associated rules have been complied with. If compliance is not obtained within 46.2630 days, the commissioner may begin, or upon request of the distributor or license
         holder 46.27shall begin, proceedings for condemnation.46.28    Subd. 2. Seizure; disposition. Any lot of commercial feed not in compliance with said 46.29provisions andsections 25.31 to 25.43 and associated rules shall be is subject to seizure on 46.30complaint of the commissioner to the district court of the county in which said the commercial 46.31feed is located. In the event the court finds the commercial feed to be in violation
         of sections 46.3225.31
          to 
         25.43 and orders the condemnation of said the commercial feed, it shall the 47.1commercial feed must be disposed of in any a manner consistent with the quality of the 47.2commercial feed and the laws of the state; provided, that in no instance, shall the
         disposition 47.3of said the commercial feed be ordered by the court without first giving the claimant an 47.4opportunity to apply to the court for release of said the commercial feed or for permission 47.5to process or relabel said the commercial feed to bring it into compliance with sections 47.625.31
          to 
         25.43.47.7    Sec. 50. Minnesota Statutes 2016, section 27.04, is amended to read:47.827.04 APPLICATION FOR LICENSE.47.9    Subdivision 1. Issuance. The commissioner shall issue a wholesale produce dealer's 47.10license to engage in the business of a dealer at wholesale to persons submitting an
         application, 47.11paying the prescribed fee, and complying with the conditions in this section.47.12    Subd. 2. Application contents. (a) The application must be in writing, accompanied by 47.13the prescribed fee, and state:47.14(1) the place or places where the applicant intends to carry on the business for which
         47.15the license is desired;47.16(2) the estimated amount of business to be done monthly;47.17(3) the amount of business done during the preceding year, if any;47.18(4) the full names of the persons constituting the firm for a partnership, and for
         a 47.19corporation the names of the officers of the corporation and where incorporated; and47.20(5) a financial statement showing the value and character of the assets and the amount
         47.21of liabilities of the applicant;47.22(6) the income and expenses for the most recent year;47.23(7) the names and addresses of all shareholders who own at least five percent of a
         47.24corporate applicant's shares of stock;47.25(8) whether the applicant or any of its officers, partners, or agents have been involved
         47.26in any litigation relating to the business of a wholesale produce dealer in the previous
         five 47.27years; and47.28(9) (5) any other information relevant to the conduct of its business as a wholesale 47.29produce dealer in the previous five years, as the commissioner may require.47.30(b) If a contract is used in a transaction, a copy of the contract must also be filed
         with 47.31the commissioner.48.1(c) Financial data required of an applicant under this section is classified as private
         data 48.2with regard to data on individuals and as nonpublic data with regard to data not on
         individuals 48.3under section 
         13.02.48.4    Subd. 3. Filing. Applications shall be filed annually.48.5    Sec. 51. Minnesota Statutes 2016, section 28A.03, is amended by adding a subdivision to 48.6read:48.7    Subd. 11.Regularly engaged."Regularly engaged" means any person who operates a 48.8food business over a period of time at uniform, consistent intervals.48.9    Sec. 52. Minnesota Statutes 2016, section 28A.081, is amended to read:48.1028A.081 CERTIFICATE FEES.48.11    Subdivision 1.Fee. A fee of $75 $125 for each certificate shall be charged to all food 48.12establishments that request certificates any person who requests a certificate issued by the 48.13Minnesota Department of Agriculture to facilitate the movement of Minnesota processed
         48.14and manufactured foods destined for export from the state of Minnesota. Certificates
         include, 48.15but are not limited to, a certificate of free sale, certificate of export, certificate
         of sanitation, 48.16sanitary certificate, certificate of origin and/or free sale, certificate of health
         and/or free 48.17sale, sanitation, and purity, certificate of free trade, certificate of free sale,
         sanitation, purity, 48.18and origin, certificate of health, sanitation, purity, and free sale, and letter of
         plant 48.19certification.48.20The commissioner shall bill a food establishment the requesting person within seven 48.21days after issuing a certificate to the establishment person. The operator of the food 48.22establishment requesting person must submit payment for a certificate within ten days of 48.23the billing date. If a certificate fee payment is not received within 15 days of the
         billing 48.24date, the commissioner may not issue any future certificates to the requesting person until 48.25previous fees due are paid in full. Fees paid under this section must be deposited in the food 48.26certificate account established under subdivision 2 or another account in the agricultural
         48.27fund if the expenses for the certificate will be paid from that other account.48.28    Subd. 2.Food certificate account; appropriation.A food certificate account is 48.29established in the agricultural fund. Money in the account, including interest, is
         appropriated 48.30to the commissioner for expenses relating to certifying Minnesota processed and 48.31manufactured foods under chapters 28 to 34A or rules adopted under one of those chapters.49.1    Sec. 53. Minnesota Statutes 2016, section 28A.152, subdivision 2, is amended to read:49.2    Subd. 2. Direct sales to consumers. (a) An individual qualifying for an exemption under 49.3subdivision 1 may sell the exempt food:49.4(1) directly to the ultimate consumer at a community event or farmers' market;49.5(2) at a community event or farmers' market; or49.6(3) (2) directly from the individual's home to the ultimate consumer, to the extent allowed 49.7by local ordinance.; or49.8(3) through donation to a community event with the purpose of fund-raising for an
         49.9individual, or fund-raising for an educational, charitable, or religious organization.49.10(b) If an exempt food product will be delivered to the ultimate consumer upon sale
         of 49.11the food product, the individual who prepared the food product must be the person
         who 49.12delivers the food product to the ultimate consumer.49.13(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
         49.14sold outside of Minnesota.49.15(d) Food products exempt under subdivision 1 may be sold over the Internet but must
         49.16be delivered directly to the ultimate consumer by the individual who prepared the
         food 49.17product. The statement "These products are homemade and not subject to state inspection."
         49.18must be displayed on the Web site that offers the exempt foods for purchase.49.19    Sec. 54. Minnesota Statutes 2016, section 28A.21, subdivision 6, is amended to read:49.20    Subd. 6. Expiration.  This section expires June 30, 2017 2027.49.21    Sec. 55. Minnesota Statutes 2016, section 31A.02, subdivision 4, is amended to read:49.22    Subd. 4. Animals. "Animals" means cattle, swine, sheep, goats, poultry, farmed Cervidae, 49.23as defined in section 
         35.153, subdivision 3, llamas, as defined in section 
         17.455, subdivision 49.242
         , Ratitae, as defined in section 
         17.453, subdivision 3, horses, equines, and other large 49.25domesticated animals.49.26    Sec. 56. Minnesota Statutes 2016, section 32C.02, subdivision 2, is amended to read:49.27    Subd. 2. Facility design; development and operation. The authority may enter into 49.28management contracts, lease agreements, or both, with a Minnesota nonprofit corporation
         49.29to design, develop, and operate a facility to further the purposes of this chapter
         at the site 49.30determined by the board and on the terms that the board finds desirable. The board
         must 50.1identify and acquire a site that will accommodate, where practicable, the following facilities 50.2and activities:50.3(1) housing for bred and lactating animals;50.4(2) milking parlor;50.5(3) automatic milking systems;50.6(4) cross-ventilated and natural-ventilated housing;50.7(5) transition cow housing;50.8(6) special needs and hospital housing;50.9(7) classrooms and a conference room;50.10(8) dairy processing facility with retail;50.11(9) visitors' center;50.12(10) student housing;50.13(11) laboratory facilities;50.14(12) space to accommodate installation of an anaerobic digester system to research
         50.15energy production from feedstock produced on site or from off-site sources; and50.16(13) space for feed storage to allow for research capabilities at the facility.50.17Notwithstanding the provisions of section 
         32C.01, subdivision 7, relating to conflict of 50.18interest, a director or officer of the authority who is also a director, officer,
         or member of 50.19a nonprofit corporation with which the authority enters into management contracts
         or lease 50.20agreements may participate in and vote on the decision of the board as to the terms
         and 50.21conditions of management contracts or lease agreements between the Minnesota nonprofit
         50.22corporation and the authority.50.23    Sec. 57. Minnesota Statutes 2016, section 32C.06, is amended to read:50.2432C.06 EXPIRATION.50.25If by August 1, 2017 2020, the authority board has not identified and acquired a site for 50.26a facility, as provided in section 
         32C.02, subdivision 2, sections 
         32C.01 to 
         32C.05 and this 50.27section are repealed on that date. The Department of Agriculture shall notify the
         revisor of 50.28statutes if the repealer under this section becomes effective.51.1    Sec. 58. Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:51.2    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking 51.3minority members of the house of representatives and senate committees with jurisdiction
         51.4over agriculture finance, must allocate available appropriated funds among eligible uses as 51.5provided by law, develop competitive eligibility criteria, and award funds on a needs basis. 51.6By February 1 each year, the commissioner shall report to the legislature on the allocation 51.7among eligible uses and any financial assistance provided  the outcomes achieved under 51.8this section.51.9    Sec. 59. Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:51.10    Subd. 2. Eligibility. (a) A facility eligible for payment under this section must source 51.11at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
         or less from 51.12the state border, raw materials may be sourced from within a 100-mile radius. Raw
         materials 51.13must be from forest resources. The facility must be located in Minnesota, must begin
         51.14production at a specific location by June 30, 2025, and must not begin operating before
         July 51.151, 2017 2019. Eligible facilities include existing companies and facilities that are adding 51.16siding production capacity, or retrofitting existing capacity, as well as new companies
         and 51.17facilities. Eligible siding production facilities must produce at least 200,000,000
         siding 51.18square feet on a 3/8 inch nominal basis of siding each year.51.19(b) No payments shall be made for siding production that occurs after June 30, 2035,
         51.20for those eligible producers under paragraph (a).51.21(c) An eligible producer of siding shall not transfer the producer's eligibility for
         payments 51.22under this section to a facility at a different location.51.23(d) A producer that ceases production for any reason is ineligible to receive payments
         51.24under this section until the producer resumes production.51.25    Sec. 60. Minnesota Statutes 2016, section 41B.03, subdivision 2, is amended to read:51.26    Subd. 2. Eligibility for restructured loan. In addition to the eligibility requirements 51.27of subdivision 1, a prospective borrower for a restructured loan must:51.28(1) have received at least 50 percent of average annual gross income from farming
         for 51.29the past three years or, for homesteaded property, received at least 40 percent of
         average 51.30gross income from farming in the past three years, and farming must be the principal
         51.31occupation of the borrower;52.1(2) have projected annual expenses, including operating expenses, family living, and
         52.2interest expenses after the restructuring, that do not exceed 95 percent of the borrower's
         52.3projected annual income considering prior production history and projected prices
         for farm 52.4production, except that the authority may reduce the 95 percent requirement if it
         finds that 52.5other significant factors in the loan application support the making of the loan;52.6(3) demonstrate substantial difficulty in meeting projected annual expenses without
         52.7restructuring the loan; and52.8(4) have a total net worth, including assets and liabilities of the borrower's spouse
         and 52.9dependents, of less than $660,000 in 2004 $1,700,000 in 2017 and an amount in subsequent 52.10years which is adjusted for inflation by multiplying that amount by the cumulative
         inflation 52.11rate as determined by the United States All-Items Consumer Price Index.52.12    Sec. 61. Minnesota Statutes 2016, section 41B.03, subdivision 3, is amended to read:52.13    Subd. 3. Eligibility for beginning farmer loans. (a) In addition to the requirements 52.14under subdivision 1, a prospective borrower for a beginning farm loan in which the
         authority 52.15holds an interest, must:52.16(1) have sufficient education, training, or experience in the type of farming for
         which 52.17the loan is desired;52.18(2) have a total net worth, including assets and liabilities of the borrower's spouse
         and 52.19dependents, of less than $350,000 in 2004 $800,000 in 2017 and an amount in subsequent 52.20years which is adjusted for inflation by multiplying that amount by the cumulative
         inflation 52.21rate as determined by the United States All-Items Consumer Price Index;52.22(3) demonstrate a need for the loan;52.23(4) demonstrate an ability to repay the loan;52.24(5) certify that the agricultural land to be purchased will be used by the borrower
         for 52.25agricultural purposes;52.26(6) certify that farming will be the principal occupation of the borrower;52.27(7) agree to participate in a farm management program approved by the commissioner
         52.28of agriculture for at least the first three years of the loan, if an approved program
         is available 52.29within 45 miles from the borrower's residence. The commissioner may waive this requirement
         52.30for any of the programs administered by the authority if the participant requests
         a waiver 52.31and has either a four-year degree in an agricultural program or certification as an
         adult farm 52.32management instructor; and53.1(8) agree to file an approved soil and water conservation plan with the Natural Resources
         53.2Conservation Service office in the county where the land is located.53.3(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower
         is 53.4subject to penalty as determined by the authority.53.5    Sec. 62. Minnesota Statutes 2016, section 41B.043, subdivision 5, is amended to read:53.6    Subd. 5. Total net worth limit. A prospective borrower for an agricultural improvement 53.7loan in which the authority holds an interest must have a total net worth, including
         assets 53.8and liabilities of the borrower's spouse and dependents, of less than $350,000 in 200453.9$800,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 53.10multiplying that amount by the cumulative inflation rate as determined by the United
         States 53.11All-Items Consumer Price Index.53.12    Sec. 63. Minnesota Statutes 2016, section 41B.045, subdivision 2, is amended to read:53.13    Subd. 2. Loan participation. The authority may participate in a livestock expansion 53.14loan with an eligible lender to a livestock farmer who meets the requirements of section
         53.1541B.03, subdivision 1
         , clauses (1) and (2), and who are actively engaged in a livestock 53.16operation. A prospective borrower must have a total net worth, including assets and
         liabilities 53.17of the borrower's spouse and dependents, of less than $660,000 in 2004 $1,700,000 in 201753.18and an amount in subsequent years which is adjusted for inflation by multiplying that
         amount 53.19by the cumulative inflation rate as determined by the United States All-Items Consumer
         53.20Price Index.53.21Participation is limited to 45 percent of the principal amount of the loan or $525,000,
         53.22whichever is less. The interest rates and repayment terms of the authority's participation
         53.23interest may be different from the interest rates and repayment terms of the lender's
         retained 53.24portion of the loan.53.25    Sec. 64. Minnesota Statutes 2016, section 41C.02, subdivision 12, is amended to read:53.26    Subd. 12. Low or moderate net worth. "Low or moderate net worth" means:53.27(1) for an individual, an aggregate net worth of the individual and the individual's
         spouse 53.28and minor children of less than $350,000 in 2004 $800,000 in 2017 and an amount in 53.29subsequent years which is adjusted for inflation by multiplying that amount by the
         cumulative 53.30inflation rate as determined by the United States All-Items Consumer Price Index;
         or54.1(2) for a partnership, an aggregate net worth of all partners, including each partner's
         net 54.2capital in the partnership, and each partner's spouse and minor children of less than
         twice 54.3the amount set for an individual in clause (1). However, the aggregate net worth of
         each 54.4partner and that partner's spouse and minor children may not exceed the amount set
         for an 54.5individual in clause (1).54.6    Sec. 65. Minnesota Statutes 2016, section 116V.01, subdivision 1, is amended to read:54.7    Subdivision 1. Establishment. The Agricultural Utilization Research Institute is 54.8established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue
         Code 54.9of 1986, as amended. The Agricultural Utilization Research Institute shall conduct
         onsite 54.10and applied research, promote the establishment of new products and product uses and
         the 54.11expansion of existing markets for the state's agricultural commodities and products,
         including 54.12direct financial and technical assistance for Minnesota entrepreneurs in Minnesota and 54.13bordering states. The institute must establish or maintain facilities and work with private 54.14and public entities to leverage the resources available to achieve maximum results
         for 54.15Minnesota agriculture.54.16    Sec. 66. Minnesota Statutes 2016, section 116V.01, subdivision 2, is amended to read:54.17    Subd. 2. Board of directors. The board of directors of the Agricultural Utilization 54.18Research Institute is comprised of:54.19(1) the chairs of the senate and the house of representatives standing committees
         with 54.20jurisdiction over agriculture finance or the chair's designee;54.21(2) two representatives of statewide farm organizations;54.22(3) two representatives of agribusiness; and54.23(4) three representatives of the commodity promotion councils; and54.24(5) two at-large representatives.54.25    Sec. 67. Minnesota Statutes 2016, section 116V.01, subdivision 3, is amended to read:54.26    Subd. 3. Duties. (a) The Agricultural Utilization Research Institute shall:54.27    (1) identify development opportunities for agricultural products;54.28    (2) implement a program that identifies techniques to meet those opportunities;55.1    (3) monitor and coordinate research among the public and private organizations and
         55.2individuals specifically addressing procedures to transfer new technology to businesses,
         55.3farmers, and individuals;55.4    (4) provide research grants to public and private educational institutions and other 55.5organizations that are undertaking basic and applied research to promote the development
         55.6of emerging agricultural industries;55.7    (5) assist organizations and individuals with market analysis and product marketing 55.8implementations;55.9    (6) (5) to the extent possible earn and receive revenue from contracts, patents, licenses,
         55.10royalties, grants, fees-for-service, and memberships;55.11    (7) (6) work with the Department of Agriculture, the United States Department of 55.12Agriculture, the Department of Employment and Economic Development, and other agencies
         55.13to maximize marketing opportunities locally, nationally, and internationally; and55.14    (8) (7) leverage available funds from federal, state, and private sources to develop new
         55.15markets and value added opportunities for Minnesota agricultural products.55.16    (b) The Agricultural Utilization Research Institute board of directors shall have
         the sole 55.17approval authority for establishing agricultural utilization research priorities,
         requests for 55.18proposals to meet those priorities, awarding of grants, hiring and direction of personnel,
         55.19and other expenditures of funds consistent with the adopted and approved mission and
         goals 55.20of the Agricultural Utilization Research Institute. The actions and expenditures of
         the 55.21Agricultural Utilization Research Institute are subject to audit. The institute shall
         annually 55.22report by February 1 to the senate and house of representatives standing committees
         with 55.23jurisdiction over agricultural policy and funding. The report must list projects initiated,
         55.24progress on projects, and financial information relating to expenditures, income from
         other 55.25sources, and other information to allow the committees to evaluate the effectiveness
         of the 55.26institute's activities.55.27    (c) The Agricultural Utilization Research Institute shall convene a Renewable Energy
         55.28Roundtable, the purpose of which shall be to further the state's leadership on bioenergy
         55.29issues.55.30    (i) The Renewable Energy Roundtable shall consist of one representative appointed
         by 55.31the commissioner of the Minnesota Department of Agriculture, one appointed by the
         55.32commissioner of the Minnesota Department of Commerce, one appointed by the chancellor
         56.1of the Minnesota State Colleges and Universities, and one appointed by the president
         of the 56.2University of Minnesota. The appointees must have expertise relevant to bioenergy.56.3    (ii) The board shall oversee the activities and shall provide staff to assist the
         Renewable 56.4Energy Roundtable.56.5    (iii) The Renewable Energy Roundtable will engage professionals and experts from 56.6private, government, academic, and nonprofit entities across the state to identify
         bioenergy 56.7opportunities and collaborate with a broad group of interested parties to identify
         future 56.8alternative courses of action the state can take to sustain a long-term competitive
         position 56.9in renewable energy through the year 2025. The Renewable Energy Roundtable will consult,
         56.10advise, and review projects and initiatives funded by the state as directed by the
         56.11administration and the legislature.56.12    Sec. 68. Minnesota Statutes 2016, section 116V.01, subdivision 4, is amended to read:56.13    Subd. 4. Staff. The board of directors shall hire staff an executive director for the 56.14Agricultural Utilization Research Institute. Persons employed by the Agricultural
         Utilization 56.15Research Institute are not state employees and may participate in state retirement,
         deferred 56.16compensation, insurance, or other plans that apply to state employees generally and
         are 56.17subject to regulation by the state Campaign Finance and Public Disclosure Board.56.18    Sec. 69. Minnesota Statutes 2016, section 116V.01, subdivision 7, is amended to read:56.19    Subd. 7. Bylaws. The board of directors shall adopt bylaws necessary for the conduct 56.20of the business of the institute consistent with this section. The corporation must
         publish 56.21bylaws and amendments to the bylaws in the State Register on the board's Web site.56.22    Sec. 70. Minnesota Statutes 2016, section 116V.01, subdivision 10, is amended to read:56.23    Subd. 10. Meetings. The board of directors shall meet at least twice each year and may 56.24hold additional meetings upon giving notice in accordance with the bylaws of the institute.
         56.25Board meetings are subject to chapter 13D, except section 
         13D.01, subdivision 6, as it 56.26pertains to financial information, business plans, income and expense projections,
         customer 56.27lists, market and feasibility studies, and trade secret information as defined by
         section 
         13.37, 56.28subdivision 1
         , paragraph (b). For the purposes of section 13D.015, the board of directors is 56.29a state board.57.1    Sec. 71. Minnesota Statutes 2016, section 116V.01, subdivision 11, is amended to read:57.2    Subd. 11. Conflict of interest. A director, employee, or officer of the institute may not 57.3participate in advocate for or vote on a decision of the board relating to an organization in 57.4which the director, employee, or officer has either a direct or indirect financial interest.57.5    Sec. 72. Minnesota Statutes 2016, section 116V.01, subdivision 13, is amended to read:57.6    Subd. 13. Funds. The institute may accept and use gifts, grants, or contributions from 57.7any source. Unless otherwise restricted by the terms of a gift or bequest, the board
         may sell, 57.8exchange, or otherwise dispose of and invest or reinvest the money, securities, or
         other 57.9property given or bequested to it. The principal of these funds, the income from them,
         and 57.10all other revenues received by it from any nonstate source must be placed in the depositories 57.11the board determines and is are subject to expenditure for the board's purposes. Receipts 57.12and expenditures of more than $25,000 $50,000 must be approved by the full board.57.13    Sec. 73. Minnesota Statutes 2016, section 116V.01, subdivision 14, is amended to read:57.14    Subd. 14. Accounts; audits. The institute may establish funds and accounts that it finds 57.15convenient. The board shall provide for and pay the cost of an independent annual audit of 57.16its official books and records by the legislative auditor subject to sections 
         3.971 and 
         3.972. 57.17In addition, the board shall provide and pay for the cost of an annual financial audit
         of its 57.18official books and records by a CPA firm licensed under chapter 326A. A copy of this the 57.19annual financial audit shall be filed with the secretary of state Office of the Attorney General, 57.20Charities Division.57.21For purposes of this section, "institute" means the Agricultural Utilization Research
         57.22Institute established under this section and "board of directors" means the board
         of directors 57.23of the Agricultural Utilization Research Institute.57.24    Sec. 74. Minnesota Statutes 2016, section 223.17, subdivision 8, is amended to read:57.25    Subd. 8. Bond disbursement. (a) The bond required under subdivision 4 shall provide 57.26for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand,
         57.27the purchase price of grain sold to the grain buyer in the manner provided by subdivision
         57.285, including loss caused by failure to pay within the time required. The bond shall
         be 57.29conditioned upon the grain buyer being duly licensed as provided herein.57.30(b) The commissioner shall promptly determine the validity of all claims filed and
         notify 57.31the claimants of the determination. An aggrieved party may appeal the commissioner's
         57.32determination by requesting, within 15 days, that the commissioner initiate a contested
         case 58.1proceeding. In the absence of such a request, or following the issuance of a final
         order in a 58.2contested case, the surety company shall issue payment promptly to those claimants
         entitled 58.3to payment. The commissioner may apply to the district court for an order appointing
         a 58.4trustee or receiver to manage and supervise the operations of the grain buyer in default.
         The 58.5commissioner may participate in any resulting court proceeding as an interested party.58.6(c) If a grain buyer has become liable to more than one producer by reason of breaches
         58.7of the conditions of the bond and the amount of the bond is insufficient to pay the
         entire 58.8liability to all producers entitled to the protection of the bond, the proceeds of
         the bond shall 58.9be apportioned among the bona fide claimants.58.10(d) The bond shall not be cumulative from one licensing period to the next. The maximum
         58.11liability of the bond shall be its face value for the licensing period.58.12(e) The bond disbursement shall occur 200 days from the date the commissioner publishes
         58.13a public notice of a claim. At the end of this time period, the commissioner shall
         initiate 58.14bond payments on all valid claims received by the commissioner.58.15    Sec. 75. Minnesota Statutes 2016, section 232.22, subdivision 7, is amended to read:58.16    Subd. 7. Bond disbursement. (a) The bond of a public grain warehouse operator must 58.17be conditioned that the public grain warehouse operator issuing a grain warehouse
         receipt 58.18is liable to the depositor for the delivery of the kind, grade and net quantity of
         grain called 58.19for by the receipt.58.20(b) Upon notification of default, the commissioner shall determine the validity of
         all 58.21claims and notify all parties having filed claims. Any aggrieved party may appeal
         the 58.22commissioner's determination by requesting, within 15 days, that the commissioner
         initiate 58.23a contested case proceeding. In the absence of such a request, or following the issuance
         of 58.24a final order in a contested case, the surety company shall issue payment to those
         claimants 58.25entitled to payment. If the commissioner determines it is necessary, the commissioner
         may 58.26apply to the district court for an order appointing a trustee or receiver to manage
         and supervise 58.27the operations of the grain warehouse operator in default. The commissioner may participate
         58.28in any resulting court proceeding as an interested party.58.29(c) For the purpose of determining the amount of bond disbursement against all valid
         58.30claims under a condition one bond, all grain owned or stored in the public grain warehouse
         58.31shall be sold and the combined proceeds deposited in a special fund. Payment shall
         be made 58.32from the special fund satisfying the valid claims of grain warehouse receipt holders.59.1(d) If a public grain warehouse operator has become liable to more than one depositor
         59.2or producer by reason of breaches of the conditions of the bond and the amount of
         the bond 59.3is insufficient to pay, beyond the proceeds of the special fund, the entire liability
         to all valid 59.4claimants, the proceeds of the bond and special fund shall be apportioned among the
         valid 59.5claimants on a pro rata basis.59.6(e) A bond is not cumulative from one licensing period to the next. The maximum 59.7liability of the bond shall be its face value for the licensing period.59.8(f) The bond disbursement shall occur 200 days from the date the commissioner publishes
         59.9a public notice of a claim. At the end of this time period, the commissioner shall
         initiate 59.10bond payments on all valid claims received by the department.59.11    Sec. 76. Minnesota Statutes 2016, section 336.9-601, is amended to read:59.12336.9-601 RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT; 59.13CONSIGNOR OR BUYER OF ACCOUNTS, CHATTEL PAPER, PAYMENT 59.14INTANGIBLES, OR PROMISSORY NOTES.59.15    (a) Rights of secured party after default. After default, a secured party has the rights 59.16provided in this part and, except as otherwise provided in section 
         336.9-602, those provided 59.17by agreement of the parties. A secured party:59.18    (1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security
         59.19interest, or agricultural lien by any available judicial procedure; and59.20    (2) if the collateral is documents, may proceed either as to the documents or as to
         the 59.21goods they cover.59.22    (b) Rights and duties of secured party in possession or control. A secured party in 59.23possession of collateral or control of collateral under section 
         336.7-106, 
         336.9-104, 59.24336.9-105
         , 
         336.9-106, or 
         336.9-107 has the rights and duties provided in section 
         336.9-207.59.25    (c) Rights cumulative; simultaneous exercise. The rights under subsections (a) and 59.26(b) are cumulative and may be exercised simultaneously.59.27    (d) Rights of debtor and obligor. Except as otherwise provided in subsection (g) and 59.28section 
         336.9-605, after default, a debtor and an obligor have the rights provided in this part 59.29and by agreement of the parties.59.30    (e) Lien of levy after judgment. If a secured party has reduced its claim to judgment, 59.31the lien of any levy that may be made upon the collateral by virtue of an execution
         based 59.32upon the judgment relates back to the earliest of:60.1    (1) the date of perfection of the security interest or agricultural lien in the collateral;60.2    (2) the date of filing a financing statement covering the collateral; or60.3    (3) any date specified in a statute under which the agricultural lien was created.60.4    (f) Execution sale. A sale pursuant to an execution is a foreclosure of the security interest 60.5or agricultural lien by judicial procedure within the meaning of this section. A secured
         party 60.6may purchase at the sale and thereafter hold the collateral free of any other requirements
         60.7of this article.60.8    (g) Consignor or buyer of certain rights to payment. Except as otherwise provided 60.9in section 
         336.9-607(c), this part imposes no duties upon a secured party that is a consignor 60.10or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.60.11    (h) Security interest in collateral that is agricultural property; enforcement. A 60.12person may not begin to enforce a security interest in collateral that is agricultural
         property 60.13subject to sections 
         583.20 to 
         583.32 that has secured a debt of more than $5,000 the amount 60.14provided in section 583.24, subdivision 5, unless: a mediation notice under subsection (i) 60.15is served on the debtor after a condition of default has occurred in the security
         agreement 60.16and a copy served on the director of the agricultural extension service; and the debtor
         and 60.17creditor have completed mediation under sections 
         583.20 to 
         583.32; or as otherwise allowed 60.18under sections 
         583.20 to 
         583.32.60.19    (i) Mediation notice. A mediation notice under subsection (h) must contain the following 60.20notice with the blanks properly filled in.60.21    "TO: ...(Name of Debtor)...60.22    YOU HAVE DEFAULTED ON THE ...(Debt in Default)... SECURED BY 60.23AGRICULTURAL PROPERTY DESCRIBED AS ...(Reasonable Description of Agricultural 60.24Property Collateral). THE AMOUNT OF THE OUTSTANDING DEBT IS ...(Amount of 60.25Debt)...60.26    AS A SECURED PARTY, ...(Name of Secured Party)... INTENDS TO ENFORCE 60.27THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL PROPERTY 60.28DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR OBTAINING A 60.29COURT JUDGMENT AGAINST THE PROPERTY.60.30    YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. 60.31IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE 60.32MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT 61.1WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY 61.2ENFORCES THE DEBT.61.3    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 61.4AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 61.5MEETING AND A FINANCIAL ANALYST TO HELP YOU TO PREPARE FINANCIAL 61.6INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION, IT WILL BE 61.7TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND OPERATION 61.8RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS SOON AS 61.9POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT AN AGREEMENT FOR 61.10HANDLING FUTURE FINANCIAL RELATIONS.61.11    TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A 61.12MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU 61.13RECEIVE THIS NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE AT 61.14ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE.61.15    FROM: ...(Name and Address of Secured Party)..."61.16EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 61.17subject to the Farmer-Lender Mediation Act that is initiated on or after that date.61.18    Sec. 77. Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:61.19    Subdivision 1. Adjoining owners.If all or a part of adjoining Minnesota land is improved 61.20and used,(a) Except as provided in paragraph (b), if two adjoining lands are both used in 61.21whole or in part to produce or maintain livestock for agricultural or commercial purposes
         61.22and one or both of the owners of the land desires the land to be partly or totally
         fenced, the 61.23land owners or occupants shall build and maintain a partition fence between their
         lands in 61.24equal shares.61.25(b) The requirement in this section and the procedures in this chapter apply to the 61.26Department of Natural Resources when it owns land adjoining privately owned land subject
         61.27to this section and chapter and the landowner desires the land permanently fenced
         for the 61.28purpose of restraining livestock.61.29(c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine,
         poultry, 61.30goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas,
         and 61.31llamas.62.1EFFECTIVE DATE.This section is effective the day following final enactment and 62.2applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on
         or after that 62.3date.62.4    Sec. 78. Minnesota Statutes 2016, section 550.365, subdivision 1, is amended to read:62.5    Subdivision 1. Requirement. A person may not attach, execute on, levy on, or seize 62.6agricultural property subject to sections 
         583.20 to 
         583.32 that has secured a debt of more 62.7than $5,000 the amount provided in section 583.24, subdivision 5, unless: (1) a mediation 62.8notice is served on the judgment debtor and a copy served on the director and the
         debtor 62.9and creditor have completed mediation under sections 
         583.20 to 
         583.32; or (2) as otherwise 62.10allowed under sections 
         583.20 to 
         583.32.62.11EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 62.12subject to the Farmer-Lender Mediation Act that is initiated on or after that date.62.13    Sec. 79. Minnesota Statutes 2016, section 559.209, subdivision 1, is amended to read:62.14    Subdivision 1. Requirement. A person may not begin to terminate a contract for deed 62.15under section 
         559.21 to purchase agricultural property subject to sections 
         583.20 to 
         583.3262.16for a remaining balance on the contract of more than $5,000 the amount provided in section 62.17583.24, subdivision 5, unless: (1) a mediation notice is served on the contract for deed 62.18purchaser after a default has occurred under the contract and a copy served on the
         director 62.19and the contract for deed vendor and purchaser have completed mediation under sections
         62.20583.20
          to 
         583.32; or (2) as otherwise allowed under sections 
         583.20 to 
         583.32.62.21EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 62.22subject to the Farmer-Lender Mediation Act that is initiated on or after that date.62.23    Sec. 80. Minnesota Statutes 2016, section 582.039, subdivision 1, is amended to read:62.24    Subdivision 1. Requirement. A person may not begin a proceeding under this chapter 62.25or chapter 580 to foreclose a mortgage on agricultural property subject to sections
         
         583.2062.26to 
         583.32 that has a secured debt of more than $5,000 the amount provided in section 583.24, 62.27subdivision 5, unless: (1) a mediation notice is served on the mortgagor after a default has 62.28occurred in the mortgage and a copy is served on the director and the mortgagor and
         62.29mortgagee have completed mediation under sections 
         583.20 to 
         583.32; or (2) as otherwise 62.30allowed under sections 
         583.20 to 
         583.32.62.31EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 62.32subject to the Farmer-Lender Mediation Act that is initiated on or after that date.63.1    Sec. 81. Minnesota Statutes 2016, section 583.215, is amended to read:63.2583.215 EXPIRATION.63.3Sections 
         336.9-601, subsections (h) and (i); 
         550.365; 
         559.209; 
         582.039; and 
         583.20 to 63.4583.32
         , expire June 30, 2018 2022.63.5    Sec. 82. Minnesota Statutes 2016, section 583.24, subdivision 4, is amended to read:63.6    Subd. 4. Debts. The Farmer-Lender Mediation Act does not apply to a debt:63.7(1) for which a proof of claim form has been filed in bankruptcy by a creditor or
         that 63.8was listed as a scheduled debt, of a debtor who has filed a petition in bankruptcy
         after July 63.91, 1987, under United States Code, title 11, chapter 7, 11, 12, or 13;63.10(2) if the debt was in default when the creditor received a mediation proceeding notice
         63.11under the Farmer-Lender Mediation Act and the creditor filed a claim form, the debt
         was 63.12mediated during the mediation period under section 
         583.26, subdivision 8, and (i) the 63.13mediation was unresolved; or (ii) a mediation agreement with respect to that debt
         was signed;63.14(3) for which the creditor has served a mediation notice, the debtor has failed to
         make 63.15a timely request for mediation, and within 60 days after the debtor failed to make
         a timely 63.16request the creditor began a proceeding to enforce the debt against the agricultural
         property 63.17of the debtor;63.18(4) for which a creditor has received a mediation proceeding notice and the creditor
         and 63.19debtor have restructured the debt and have signed a separate mediation agreement with
         63.20respect to that debt; or63.21(5) for which there is a lien for rental value of farm machinery under section 
         514.661.; 63.22or63.23(6) that is a new line of credit, loan, or other debt extended by a creditor to the
         debtor 63.24as a result of a mediation conducted pursuant to the Farmer-Lender Mediation Act.
         However, 63.25this new debt becomes subject to the Farmer-Lender Mediation Act two years after the
         63.26mediation from which the new debt originated ends, as evidenced by the date on the
         63.27termination statement issued by the mediator under section 583.26, subdivision 10.63.28EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 63.29subject to the Farmer-Lender Mediation Act that is initiated on or after that date.64.1    Sec. 83. Minnesota Statutes 2016, section 583.24, is amended by adding a subdivision to 64.2read:64.3    Subd. 5.Minimum eligible debt amount.The minimum eligible debt amount is $15,000. 64.4In 2022 and every five years thereafter, the commissioner of agriculture, in consultation
         64.5with the director, must report to the legislative committees with jurisdiction over
         agriculture 64.6policy what the minimum eligible debt amount under this subdivision would be if adjusted
         64.7using the United States Department of Agriculture's Index of the Cost of Production.64.8EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 64.9subject to the Farmer-Lender Mediation Act that is initiated on or after that date.64.10    Sec. 84. Minnesota Statutes 2016, section 583.26, subdivision 2, is amended to read:64.11    Subd. 2. Mediation request. (a) A debtor must file a mediation request form with the 64.12director by 14 days after receiving a mediation notice. The debtor must state all
         known 64.13creditors with debts secured for agricultural property and must authorize the director to 64.14obtain the debtor's credit report from one or more credit reporting agencies. The mediation 64.15request form must include an instruction that the debtor must state all known creditors
         with 64.16debts secured by agricultural property and unsecured creditors that are necessary
         for the 64.17farm operation of the debtor. It is the debtor's discretion as to which unsecured
         creditors 64.18are necessary for the farm operation but the mediation request form must notify the debtor 64.19that omission of a significant unsecured creditor could result in a bad-faith determination
         64.20pursuant to section 583.27, subdivisions 1, paragraph (a), clause (2), and 2. The mediation 64.21request must state the date that the notice was served on the debtor. The director
         shall make 64.22mediation request forms available in the county recorder's and county extension office
         of 64.23each county.64.24(b) Except as provided in section 
         583.24, subdivision 4, paragraph (a), clause (3), a 64.25debtor who fails to file a timely mediation request waives the right to mediation
         for that 64.26debt under the Farmer-Lender Mediation Act. The director shall notify the creditor
         who 64.27served the mediation notice stating that the creditor may proceed against the agricultural
         64.28property because the debtor has failed to file a mediation request.64.29(c) If a debtor has not received a mediation notice and is subject to a proceeding
         of a 64.30creditor enforcing a debt against agricultural property under chapter 580 or 581 or
         sections 64.31336.9-601
          to 
         336.9-628, terminating a contract for deed to purchase agricultural property 64.32under section 
         559.21, or garnishing, levying on, executing on, seizing, or attaching 64.33agricultural property, the debtor may file a mediation request with the director.
         The mediation 64.34request form must indicate that the debtor has not received a mediation notice.65.1EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 65.2subject to the Farmer-Lender Mediation Act that is initiated on or after that date.65.3    Sec. 85. Minnesota Statutes 2016, section 583.26, subdivision 3, is amended to read:65.4    Subd. 3. Financial analyst and farm advocate. (a) Within three business days after 65.5receiving a mediation request, the director shall provide a financial analyst to meet
         with the 65.6debtor and assure that all information relative to the finances of the debtor is prepared for65.7prior to the initial mediation meeting. The financial analyst must review and, if necessary,
         65.8prepare the debtor's financial records before the initial mediation meeting.65.9(b) After receiving the mediation notice, the director shall provide the debtor with
         a list 65.10of farm advocates that may be available without charge to assist the debtor and the
         financial 65.11analyst.65.12EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 65.13subject to the Farmer-Lender Mediation Act that is initiated on or after that date.65.14    Sec. 86. Minnesota Statutes 2016, section 583.26, subdivision 3a, is amended to read:65.15    Subd. 3a. Orientation session. The director shall schedule an orientation session to be 65.16held at least five days before the first mediation meeting. The debtor, the financial
         analyst, 65.17and a mediator shall participate in the orientation session. The mediator at the session
         need 65.18not be the one assigned to the mediation proceeding under subdivision 4. Creditors
         65.19participating in the mediation may participate in the orientation session. At the
         orientation 65.20session, the financial analyst shall review the debtor's financial and inventory records
         to 65.21determine if they are adequate for the mediation and inform the debtor of any inadequacies,
         65.22and the mediator shall inform the debtor of the requirements of the mediation process65.23including but not limited to the requirement to participate in good faith by addressing,
         prior 65.24to the initial mediation meeting, any inadequacies identified by the financial analyst.65.25EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 65.26subject to the Farmer-Lender Mediation Act that is initiated on or after that date.65.27    Sec. 87. Minnesota Statutes 2016, section 583.26, subdivision 4, is amended to read:65.28    Subd. 4. Mediation proceeding notice. (a) By ten days after receiving a mediation 65.29request, the director shall send: (1) a mediation proceeding notice to the debtor;
         (2) a 65.30mediation proceeding notice to all creditors listed by the debtor in the mediation
         request65.31and any additional secured creditors identified by the director from the credit report
         obtained 66.1with the debtor's permission under subdivision 2; and (3) a claim form to all secured creditors 66.2stated by the debtor or identified by the director.66.3(b) The mediation proceeding notice must state:66.4(1) the name and address of the debtor;66.5(2) that the debtor has requested mediation under the Farmer-Lender Mediation Act;66.6(3) the time and place for the orientation session;66.7(4) the time and place for the initial mediation meeting;66.8(5) a list of the names of three mediators that may be assigned to the proceeding,
         along 66.9with background information on those mediators including biographical information,
         a 66.10summary of previous mediation experience, and the number of agreements signed by parties
         66.11to previous mediation;66.12(6) that the debtor and the initiating creditor may each request the director to exclude
         66.13one mediator by notifying the director within three days after receiving the notice;66.14(7) that in lieu of having a mediator assigned by the director, the debtor and any
         one or 66.15more of the creditors may agree to select and pay for a professional mediator that
         is approved 66.16by the director;66.17(8) that the Farmer-Lender Mediation Act prohibits the creditor from beginning or
         66.18continuing a proceeding to enforce the debt against agricultural property for 90 days
         after 66.19the debtor files a mediation request with the director unless otherwise allowed; and66.20(9) that the creditor must provide the debtor by the initial mediation meeting with
         copies 66.21of notes and contracts for debts subject to the Farmer-Lender Mediation Act and provide
         a 66.22statement of interest rates on the debts, delinquent payments, unpaid principal and
         interest 66.23balances, the creditor's value of the collateral, and debt restructuring programs
         available by 66.24the creditor.66.25(c) An initial mediation meeting must be held within 20 days of the notice.66.26(d) The initiating creditor and the debtor may each request the director to exclude
         one 66.27mediator from the list by sending the director a notice to exclude the mediator within
         three 66.28days after receiving the mediation proceeding notice.66.29(e) In lieu of the director assigning a mediator, the debtor and any one or more of
         the 66.30creditors may agree to select and pay for a professional mediator for the mediation
         66.31proceeding. The director must approve the professional mediator before the professional
         67.1mediator may be assigned to the mediation proceeding. The professional mediator may
         not 67.2be approved unless the professional mediator prepares and signs an affidavit:67.3(1) disclosing any biases, relationships, or previous associations with the debtor
         or 67.4creditors subject to the mediation proceedings;67.5(2) stating certifications, training, or qualifications as a professional mediator;67.6(3) disclosing fees to be charged or a rate schedule of fees for the mediation proceeding;
         67.7and67.8(4) affirming to uphold the Farmer-Lender Mediation Act and faithfully discharge the
         67.9duties of a mediator.67.10(f) After receiving a mediation proceeding notice, a secured creditor must return
         a claim 67.11form if the debt is not subject to the Farmer-Lender Mediation Act and specify why
         the debt 67.12is not subject to sections 
         583.20 to 
         583.32.67.13EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 67.14subject to the Farmer-Lender Mediation Act that is initiated on or after that date.67.15    Sec. 88. Minnesota Statutes 2016, section 583.26, subdivision 10, is amended to read:67.16    Subd. 10. End of mediation. (a) The mediator shall sign and serve to the parties and 67.17the director a termination statement by the end of the time period specified in subdivision
         67.185.67.19(b) The mediator shall prepare a termination statement that:67.20(1) acknowledges that mediation has ended and specifies the date on which the mediation 67.21ended; and67.22(2) describes or references agreements, if any, reached between a creditor and the debtor, 67.23if any,including any new line of credit, loan, or other debt issued by a creditor to the
         debtor 67.24as a result of the mediation; and agreements, if any, reached among creditors, if any.67.25(c) Mediation agreements may be included as part of the termination statement.67.26EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 67.27subject to the Farmer-Lender Mediation Act that is initiated on or after that date.67.28    Sec. 89. Minnesota Statutes 2016, section 583.27, subdivision 1, is amended to read:67.29    Subdivision 1. Obligation of good faith. (a) The parties must engage in mediation in 67.30good faith. Prior to the initial mediation meeting, the director must notify all parties in 68.1writing of their obligation to participate in good faith, the consequences of failing
         to 68.2participate in good faith, and that not participating in good faith includes: (1) a failure on a 68.3regular or continuing basis to attend and participate in mediation sessions without
         cause; 68.4(2) failure to provide full information no later than the initial mediation meeting regarding 68.5the financial obligations of the parties and other creditors including the obligation
         of a 68.6creditor to provide information under section 
         583.26, subdivision 5, paragraph (d); (3) 68.7failure of the creditor to designate a representative to participate in the mediation
         with 68.8authority to make binding commitments within one business day to fully settle, compromise,
         68.9or otherwise mediate the matter; (4) lack of a written statement of debt restructuring
         68.10alternatives and a statement of reasons why alternatives are unacceptable to one of
         the 68.11parties; (5) failure of a creditor to release funds from the sale of farm products
         to the debtor 68.12for necessary living and farm operating expenses; or (6) other similar behavior which
         68.13evidences lack of good faith by the party. A failure to agree to reduce, restructure,
         refinance, 68.14or forgive debt does not, in itself, evidence lack of good faith by the creditor.68.15(b) The amount that the creditor is required to release for necessary living expenses
         68.16under this section is limited to $1,600 $3,600 per month less the debtor's off-farm income.68.17In 2022 and every five years thereafter, the commissioner of agriculture, in consultation
         68.18with the director, must report to the legislative committees with jurisdiction over
         agriculture 68.19policy what the monetary limit under this paragraph would be if adjusted using the
         United 68.20States All-Items Consumer Price Index.68.21(c) If the debtor and creditor do not agree on the amount of necessary living expenses
         68.22to be released, the debtor or creditor may petition conciliation court in the county
         of the 68.23debtor's residence to make a determination of the amount to be released. The conciliation
         68.24court must make the determination within ten days after receiving the petition.68.25(d) If the debtor and creditors do not agree on the amount of necessary operating
         expenses 68.26or necessary living and operating expenses to be released, the debtor or a creditor
         requested 68.27to release necessary living or operating expenses may petition the district court
         of the debtor's 68.28residence to make a determination of the amount to be released. The court shall hear
         and 68.29make a determination of the amount of living and operating expenses to be released
         within 68.30ten days after receiving the petition. The court shall also add or subtract up to
         ten days to 68.31the time when the creditor can begin to enforce a proceeding to collect the debt against
         68.32agricultural property of the debtor and assess costs, including any attorney fees,
         among the 68.33parties to the court proceeding. The court shall equitably adjust the time to begin
         a creditor's 68.34proceeding and the assessment of costs based on the parties' good faith claim to the
         amount 68.35of living and operating expenses to be released.69.1EFFECTIVE DATE.This section is effective August 1, 2017, and applies to debt 69.2subject to the Farmer-Lender Mediation Act that is initiated on or after that date.69.3    Sec. 90. WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.69.4(a) The commissioner of agriculture may award grants to livestock producers to prevent
         69.5wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to
         apply for 69.6reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner
         69.7may establish a cap on the amount a recipient may receive annually.69.8(b) To be eligible for the grant under this section, a livestock producer must raise
         livestock 69.9within Minnesota's wolf range or on property determined by the commissioner to be
         affected 69.10by wolf-livestock conflicts.69.11(c) Eligible wolf-livestock conflict prevention activities include, but are not limited
         to:69.12(1) the purchase of guard animals;69.13(2) veterinary costs for guard animals;69.14(3) the installation of wolf barriers; wolf barriers may include pens, fladry, and
         fencing;69.15(4) the installation of wolf-deterring lights and alarms; and69.16(5) calving or lambing shelters.69.17(d) Eligible grant recipients must:69.18(1) make a good-faith effort to avoid wolf-livestock conflicts;69.19(2) make a good-faith effort to care for guard animals paid for under this section;69.20(3) retain proper documentation of expenses;69.21(4) report annually to the commissioner on the effectiveness of the nonlethal methods
         69.22employed; and69.23(5) allow follow-up evaluation and monitoring by the commissioner.69.24(e) Grant recipients shall continue to be eligible for depredation payments under
         69.25Minnesota Statutes, section 3.737.69.26    Sec. 91. BASE BUDGET REPORT REQUIRED.69.27No later than October 15, 2018, the commissioner of agriculture must submit a report
         69.28detailing the agency's base budget, including any prior appropriation riders, to the
         chairs 70.1and ranking minority members of the legislative committees with jurisdiction over
         agriculture 70.2finance.70.3    Sec. 92. REVISOR'S INSTRUCTION.70.4The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision
         70.59a, to Minnesota Statutes, section 18B.01, subdivision 9d, and correct any cross-references
         70.6related to the renumbering.70.7    Sec. 93. REPEALER.70.8Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, and 22a; 18B.285;
         70.925.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15; 41A.20, subdivision
         6; 70.1041D.01, subdivision 4; 383C.809; and 583.22, subdivision 7b, are repealed.70.11ARTICLE 370.12DAIRY LAW REORGANIZATION70.13    Section 1. Minnesota Statutes 2016, section 13.6435, subdivision 8, is amended to read:70.14    Subd. 8. Dairy products. Financial and production information obtained by the 70.15commissioner of agriculture to administer chapter 32 32D are classified under section 
         32.71, 70.16subdivision 2 32D.25, subdivision 2.70.17    Sec. 2. Minnesota Statutes 2016, section 17.983, subdivision 1, is amended to read:70.18    Subdivision 1. Administrative penalties; citation. If a person has violated a provision 70.19of chapter 25, 31B, or 32 32D, the commissioner may issue a written citation to the person 70.20by personal service or by certified mail. The citation must describe the nature of
         the violation 70.21and the statute or rule alleged to have been violated; state the time for correction,
         if 70.22applicable; and the amount of any proposed fine. The citation must advise the person
         to 70.23notify the commissioner in writing within 30 days if the person wishes to appeal the
         citation. 70.24If the person fails to appeal the citation, the citation is the final order and not
         subject to 70.25further review.70.26    Sec. 3. Minnesota Statutes 2016, section 17.984, subdivision 1, is amended to read:70.27    Subdivision 1. Authority. To carry out the commissioner's enforcement duties under 70.28chapter 32 32D, the commissioner may, upon presenting appropriate credentials, during 70.29regular working hours and at other reasonable times, inspect premises subject to the
         70.30commissioner's enforcement and licensing authority for reasons related to the commissioner's
         71.1enforcement and licensing authority; request information from persons with information
         71.2relevant to an inspection; and inspect relevant papers and records, including business
         records. 71.3The commissioner may issue notices in lieu of citations for minor violations if a
         notice is 71.4in the public interest.71.5    Sec. 4. Minnesota Statutes 2016, section 28A.05, is amended to read:71.628A.05 CLASSIFICATION.71.7    All persons required to have a license under section 
         28A.04 shall be classified into one 71.8of the following classes of food handlers, according to their principal mode of business.71.9    (a) Retail food handlers are persons who sell or process and sell food directly to
         the 71.10ultimate consumer or who custom process meat or poultry. The term includes a person
         who 71.11sells food directly to the ultimate consumer through the use of vending machines,
         and a 71.12person who sells food for consumption on site or off site if the sale is conducted
         on the 71.13premises that are part of a grocery or convenience store operation.71.14    (b) Wholesale food handlers are persons who sell to others for resale. A person who
         71.15handles food in job lots (jobbers) is included in this classification.71.16    (c) Wholesale food processors or manufacturers are persons who process or manufacture
         71.17raw materials and other food ingredients into food items, or who reprocess food items,
         or 71.18who package food for sale to others for resale, or who commercially slaughter animals
         or 71.19poultry. Included herein are persons who can, extract, ferment, distill, pickle, bake,
         freeze, 71.20dry, smoke, grind, mix, stuff, pack, bottle, recondition, or otherwise treat or preserve
         food 71.21for sale to others for resale, cold storage warehouse operators as defined in section
         
         28.01, 71.22subdivision 3
         , salvage food processors as defined in section 
         31.495, subdivision 1, and dairy 71.23plants as defined in section 32.01 32D.01, subdivision 6.71.24    (d) A food broker is a person who buys and sells food and who negotiates between a
         71.25buyer and a seller of food, but who at no time has custody of the food being bought
         and 71.26sold.71.27    Sec. 5. Minnesota Statutes 2016, section 28A.085, subdivision 1, is amended to read:71.28    Subdivision 1. Violations; prohibited acts. The commissioner may charge a reinspection 71.29fee for each reinspection of a food handler that:71.30(1) is found with a major violation of requirements in chapter 28, 29, 30, 31, 31A,
         3271.3132D, 33, or 34, or rules adopted under one of those chapters; or72.1(2) fails to correct equipment and facility deficiencies as required in rules adopted
         under 72.2chapter 28, 29, 30, 31, 31A, 32 32D, or 34.72.3The first reinspection of a firm with gross food sales under $1,000,000 must be assessed
         72.4at $150. The fee for a firm with gross food sales over $1,000,000 is $200. The fee
         for a 72.5subsequent reinspection of a firm for the same violation is 50 percent of their current
         license 72.6fee or $300, whichever is greater. The establishment must be issued written notice
         of 72.7violations with a reasonable date for compliance listed on the notice. An initial
         inspection 72.8relating to a complaint is not a reinspection.72.9    Sec. 6. [32D.01] DEFINITIONS.72.10    Subdivision 1.Scope.The definitions in this section apply to this chapter.72.11    Subd. 2.Adulterated."Adulterated" means an item is covered by section 34A.02.72.12    Subd. 3.Cheese."Cheese" includes all varieties of cheese, cheese spreads, cheese foods, 72.13cheese compounds, or processed cheese made or manufactured in whole or in part from
         72.14milk.72.15    Subd. 4.Commissioner."Commissioner" means the commissioner of agriculture.72.16    Subd. 5.Dairy farm."Dairy farm" means a place or premises where one or more lactating 72.17animals, including cows, goats, sheep, water buffalo, camels, or other hoofed mammals,
         72.18are kept, and from which all or a portion of the milk produced at the place or premises
         is 72.19delivered, sold, or offered for sale.72.20    Subd. 6.Dairy plant."Dairy plant" means any place where a dairy product is 72.21manufactured, processed, or handled and includes milk-receiving stations, creameries,
         72.22cheese factories, condenseries, milk plants, transfer stations, and marketing organizations
         72.23that purchase milk and cream directly from producers for resale and other establishments,
         72.24as those terms are used in this chapter and chapters 17, 27, and 31; but does not
         include any 72.25place where dairy products are not processed but sold at whole or retail only.72.26    Subd. 7.Dairy product."Dairy product" means milk as defined by Code of Federal 72.27Regulations, title 21, cream, any product or by-product of either, or any commodity
         among 72.28the principal constituents or ingredients of which is one or a combination of two
         or more 72.29of them, as determined by standards, grades, or rules adopted by the commissioner.72.30    Subd. 8.Fluid milk products."Fluid milk products" means yogurt, cream, sour cream, 72.31half and half, reconstituted half and half, concentrated milk, concentrated milk products,
         72.32skim milk, nonfat milk, chocolate flavored milk, chocolate flavored dairy drink, chocolate
         73.1flavored reconstituted milk, chocolate flavored reconstituted dairy drink, buttermilk,
         cultured 73.2buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted
         73.3cream, reconstituted skim milk, homogenized milk, and any other fluid milk product
         made 73.4by the addition of any substance to milk or to any of the fluid milk products enumerated
         73.5under this subdivision or by rule adopted by the commissioner.73.6    Subd. 9.Goat milk."Goat milk" means a whole, fresh, clean lacteal secretion free from 73.7colostrum, obtained by the complete milking of one or more healthy goats.73.8    Subd. 10.Milk."Milk" means the normal lacteal secretion, practically free of colostrum, 73.9obtained by the milking of one or more healthy hoofed mammals. Hoofed mammals include
         73.10but are not limited to cattle, water buffalo, sheep, goats, yaks, and camels.73.11    Subd. 11.Milk for manufacturing purposes."Milk for manufacturing purposes" means 73.12milk produced for processing and manufacturing into products for human consumption
         but 73.13not subject to Grade A or comparable requirements.73.14    Subd. 12.Milk-receiving station."Milk-receiving station" means a dairy plant where 73.15raw milk for pasteurization or for manufacture is received, handled, or prepared for
         73.16processing or for resale as unpasteurized milk or fluid milk products.73.17    Subd. 13.Minnesota farmstead cheese."Minnesota farmstead cheese" means cheese 73.18manufactured in Minnesota on the same farm that the milk used in its manufacturing
         is 73.19produced.73.20    Subd. 14.Misbranded or misbranding."Misbranded" or "misbranding" means an item 73.21is covered by section 34A.03.73.22    Subd. 15.Pasteurization or pasteurized.(a) "Pasteurization," "pasteurized," and similar 73.23terms mean:73.24(1) the process of heating every particle of milk or dairy product in properly operated
         73.25equipment approved by the commissioner to a temperature of at least 145 degrees Fahrenheit
         73.26and holding the temperature for at least 30 minutes;73.27(2) the process of heating every particle of milk or dairy product in properly operated
         73.28equipment approved by the commissioner to a temperature of at least 161 degrees Fahrenheit
         73.29and holding the temperature for at least 15 seconds; or73.30(3) the process of heating every particle of milk or dairy product in properly operated
         73.31equipment approved by the commissioner to the temperatures and holding for the times
         as 73.32the commissioner may prescribe by rule, containing standards more stringent than those
         73.33imposed by this subdivision.74.1(b) Nothing in this subdivision shall be construed as excluding any other process
         that 74.2has been demonstrated to be equally efficient and is approved by the commissioner.74.3    Subd. 16.Recombinant bovine growth hormone or rBGH."Recombinant bovine 74.4growth hormone" or "rBGH" means a growth hormone intended for use in bovine animals
         74.5that has been produced through recombinant DNA techniques, described alternately as
         74.6recombinant bovine somatotropin or rBST.74.7    Sec. 7. [32D.02] INSPECTION AUTHORITY AND DUTIES.74.8    Subdivision 1.Enforcement.The commissioner is charged with the enforcement of this 74.9chapter.74.10    Subd. 2.Power and authority.For the purpose of enforcing this chapter, the 74.11commissioner and the commissioner's assistants, agents, and employees have the power
         74.12and authority granted under sections 31.02 to 31.171.74.13    Subd. 3.Inspection of dairies.At times the commissioner determines proper, the 74.14commissioner shall inspect all places where dairy products are made, stored, or served
         as 74.15food for purchase, and all places where hoofed mammals are kept by persons engaged
         in 74.16the sale of milk, and shall require the correction of all unsanitary conditions and
         practices.74.17    Subd. 4.Refusal of inspection.A refusal or physical threat that prevents the completion 74.18of an inspection or neglect to obey a lawful direction of the commissioner or the
         74.19commissioner's agent given while carrying out this section may result in the suspension
         of 74.20the offender's permit or certification or other enforcement as deemed appropriate
         by the 74.21commissioner. The offender is required to meet with a representative of the offender's
         plant 74.22or marketing organization and a representative of the commissioner within 48 hours
         of 74.23receiving notice, excluding holidays or weekends, or the suspension or enforcement
         action 74.24shall take effect. A producer may request a hearing before the commissioner or the
         74.25commissioner's agent if a serious concern exists relative to the retention of the
         offender's 74.26permit or certification to sell milk.74.27    Subd. 5.Inspection service.To ensure compliance with the laws and rules governing 74.28the production, handling, processing, and sale of milk and dairy products, the commissioner
         74.29is authorized, through a duly trained and qualified milk inspector, to inspect milk
         and milk 74.30products and the premises and plants where milk and milk products are produced, handled,
         74.31and processed. Inspection services must acquaint the processor and producers with
         the 74.32requirements for a Grade A or manufacturing grade milk supply for preliminary inspection
         74.33to determine if a processor has brought the processor's farms and plants to the state
         of 75.1compliance that qualifies the processor's products for the Grade A or manufacturing
         grade 75.2label, and for continuous inspection to ensure that a farm or plant and all products
         from a 75.3farm or plant are in compliance with this chapter.75.4    Subd. 6.Field service.Grade A or manufacturing grade processors shall provide a 75.5continuous field service to assist producers who sell their milk to the processor's
         plant to 75.6attain and maintain compliance with this chapter. A person who performs field service
         must 75.7first obtain a permit from the commissioner. A person desiring to secure a permit
         must apply 75.8on a form provided by the commissioner, and before a permit is issued the commissioner
         75.9shall determine that the applicant is competent and qualified to perform field service.
         The 75.10permit is not transferable to another person and may be revoked for due cause after
         the 75.11holder of the permit has been given the opportunity for a hearing. The permit holder
         must 75.12be given a notice in writing of the time and place of the hearing at least seven days
         before 75.13the date of the hearing.75.14    Subd. 7.Enforcement standards.The standards in this chapter and rules adopted under 75.15this chapter by the commissioner shall be the only standards for use in Minnesota.
         No 75.16municipality or other subdivision of state government shall provide, by ordinance,
         more 75.17stringent or comprehensive standards than are contained in this chapter and rules
         adopted 75.18by the commissioner under this chapter.75.19    Subd. 8.Rules.(a) The commissioner shall by rule adopt identity, production, and 75.20processing standards for both Grade A and manufacturing grade milk and dairy products.75.21(b) In the exercise of the authority to establish requirements for Grade A milk and
         milk 75.22products, the commissioner adopts definitions, standards of identity, and requirements
         for 75.23production and processing contained in the most current version of the Grade A Pasteurized
         75.24Milk Ordinance, and its associated documents, of the United States Department of Health
         75.25and Human Services in a manner provided for and not in conflict with law.75.26(c) Producers of milk, other than Grade A, shall conform to the standards contained
         in 75.27subparts B, C, D, E, and F of the United States Department of Agriculture Agricultural
         75.28Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and
         75.29its Production and Processing, except that the commissioner shall develop methods
         by which 75.30producers are able to comply with the standards without violation of religious beliefs.75.31    Subd. 9.Certified industry inspection.Industry personnel may be certified to perform 75.32any inspection, to the extent allowed by federal law and provided that performance
         of the 75.33inspections is consistent with rules adopted in subdivision 8.76.1    Subd. 10.Fees; dairy services account; appropriation.(a) All fees and penalties 76.2collected under this chapter must be deposited in the dairy services account in the
         agricultural 76.3fund. Money in the account, including interest, is appropriated to the commissioner
         for 76.4purposes of administering this chapter.76.5(b) Unless otherwise noted, all fees are payable by a processor or marketing organization
         76.6and are invoiced on July 1 of each year for Grade A and January 1 of each year for
         76.7manufacturing grade, and if not paid within 30 days of the due date, inspection service
         may 76.8be discontinued. If a farm discontinues the production of milk within six months of
         the 76.9billing date, a request for a refund based on inspection services not received may
         be made 76.10by the processor or by the marketing organization on behalf of its patrons. This request
         must 76.11be made in writing by June 30 for manufacturing grade or by December 31 for Grade
         A. 76.12Upon approval by the commissioner, refunds must be made to the processor or marketing
         76.13organization.76.14    Sec. 8. [32D.03] BULK MILK HAULER AND SAMPLER LICENSE.76.15    Subdivision 1.License requirement.A person collecting milk from a dairy farm and 76.16transporting the milk by bulk pickup and not in individual containers from farm to
         plant 76.17must obtain a bulk milk hauler and sampler license.76.18    Subd. 2.Application.A person desiring to secure a bulk milk hauler and sampler license 76.19must apply on a form provided by the commissioner. Before the license is issued, the
         76.20commissioner shall determine that the applicant is competent and qualified.76.21    Subd. 3.Term of license; transferability.An initial bulk milk hauler and sampler 76.22license issued by the commissioner expires on the following December 31 and is not
         76.23transferable. A renewal bulk milk hauler and sampler license is not transferable,
         is valid for 76.24two years, and expires on December 31 of the second year.76.25    Subd. 4.Fees and penalties.The fee for an initial or renewal bulk milk hauler and 76.26sampler license is $60. The fee shall be paid to the commissioner before the commissioner
         76.27issues an initial or renewal bulk milk hauler and sampler license. If a bulk milk
         hauler and 76.28sampler license renewal is not applied for on or before January 1, a fee of $30 shall
         be 76.29imposed. A person who does not renew a bulk milk hauler and sampler license within
         one 76.30year following its December 31 expiration date, except those persons who do not renew
         the 76.31bulk milk hauler and sampler license while engaged in active military service, shall
         be 76.32required to prove competency and qualification under subdivision 2 before a bulk milk
         76.33hauler and sampler license is issued. The commissioner may require any other person
         who 77.1renews a bulk milk hauler and sampler license to prove competency and qualification
         in 77.2the same manner.77.3    Subd. 5.Suspension or cancellation.The commissioner is empowered to conduct 77.4enforcement action, suspend, or cancel any bulk milk hauler and sampler license pursuant
         77.5to section 34A.06.77.6    Sec. 9. [32D.04] MILK TANK TRUCKS.77.7All farm bulk milk pickup tankers, milk transports, and tankers used to transport
         milk 77.8products must be inspected and obtain a permit issued by the commissioner at least
         once 77.9every 12 months. The owner or operator must pay a $25 permit fee per tanker to the
         77.10commissioner. The commissioner may appoint a person the commissioner deems qualified
         77.11to make inspections.77.12    Sec. 10. [32D.05] GRADE A DAIRY FARM PERMITTING; WATER WELL 77.13DISTANCE REQUIREMENT.77.14(a) No milk producer may sell or distribute milk from a dairy farm as Grade A milk
         77.15without a valid Grade A dairy farm permit issued by the commissioner.77.16(b) A dairy farmer who wishes to be permitted to produce Grade A milk may not be 77.17denied the Grade A permit solely because of provisions in rules adopted by the commissioner
         77.18requiring a minimum distance between a water well and dairy farm. To be eligible for
         a 77.19Grade A permit, the following conditions must be met:77.20(1) the water well must have been in place prior to January 1, 1974;77.21(2) the water well must comply with all other rules applicable to the well, other
         than the 77.22distance requirement; and77.23(3) water from the well must be tested at least once every 12 months. More frequent
         77.24testing may be required in compliance with guidelines established by the commissioner
         if 77.25water test results fail to meet water quality requirements.77.26    Sec. 11. [32D.06] GRADE A DAIRY FARM INSPECTION; FEES.77.27(a) As provided in section 32D.02, the commissioner shall provide inspection service
         77.28to any milk producer who wishes to market Grade A milk and is in compliance with the
         77.29requirement for the production of Grade A milk. Grade A inspections shall be completed
         77.30at least once every six months.78.1(b) The fee for inspections must be no more than $50 per farm, paid annually by the
         78.2processor or by the marketing organization on behalf of its patrons.78.3(c) For a farm requiring a reinspection in addition to the required biannual inspections,
         78.4an additional fee must be paid by the processor or by the marketing organization on
         behalf 78.5of its patrons. The fee for reinspection of a farm with fewer than 100 hoofed milk-producing
         78.6animals is $60 per reinspection. The fee for reinspection of a farm with 100 or more
         hoofed 78.7milk-producing animals is $150 per reinspection.78.8    Sec. 12. [32D.07] MANUFACTURING GRADE DAIRY FARM CERTIFICATION.78.9A producer who wishes to sell milk for manufacturing purposes must obtain from the
         78.10commissioner an annual Grade B farm certification.78.11    Sec. 13. [32D.08] MANUFACTURING GRADE DAIRY FARM INSPECTION; 78.12FEES.78.13(a) A producer selling milk for manufacturing purposes must be inspected at least
         once 78.14every 12 months.78.15(b) The fee for the certification inspection must not be more than $25 per producer,
         to 78.16be paid annually by the processor or the marketing organization on behalf of its patrons.78.17(c) For a producer requiring more than one inspection for certification, a reinspection
         78.18fee of $45 must be paid by the processor or by the marketing organization on behalf
         of its 78.19patrons.78.20    Sec. 14. [32D.09] DAIRY PLANT LICENSING AND PERMITTING.78.21    Subdivision 1.Licensing.A dairy plant must obtain a license as required under section 78.2228A.04.78.23    Subd. 2.Permitting.No person shall operate a dairy plant in this state unless the dairy 78.24plant, equipment, and water supply and plumbing system have been first approved by
         the 78.25commissioner and a permit issued to operate the same. A permit may be revoked by the
         78.26commissioner for due cause pursuant to section 34A.06.78.27    Subd. 3.Approval.At the time of filing the application for a permit, the applicant shall 78.28submit to the commissioner duplicate floor plans of the plant that show the placement
         of 78.29equipment, the source of water supply and method of distribution, a detailed pasteurization
         78.30flow chart, and the location of the plumbing system, including the disposal of wastes.
         New 78.31construction or alteration of an existing dairy plant shall be made only with the
         approval of 79.1the commissioner and duplicate plans for the construction or alteration shall be submitted
         79.2to the commissioner for approval. The fee for approval services is $45 per hour of
         department 79.3staff time spent in the approval process.79.4    Subd. 4.Farmstead cheese.(a) The commissioner or the commissioner's designee shall 79.5issue an additional permit to a dairy plant that desires to use the name "Minnesota
         farmstead 79.6cheese" upon application made by the dairy plant for use of the name, provided the
         cheese 79.7meets the definition in section 32D.01, subdivision 13.79.8(b) No cheese or packaged cheese that is sold, offered or exposed for sale, or held
         in 79.9possession with intent to sell at either retail or wholesale in this state may be
         labeled or 79.10described as "Minnesota farmstead cheese" unless it meets the criteria in section
         32D.01, 79.11subdivision 13, and the manufacturer has obtained the designated permit.79.12    Sec. 15. [32D.10] INSPECTIONS.79.13(a) Inspections of Grade A plants must be completed at least once every three months.
         79.14A pasteurization plant requesting Grade A inspection must pay an annual inspection
         fee of 79.15no more than $500.79.16(b) Inspections of manufacturing plants that process milk or milk products other than
         79.17Grade A must be completed at least once every six months. A manufacturing plant that
         79.18pasteurizes milk or milk by-products must pay an annual fee based on the number of
         79.19pasteurization units. The fee must not exceed $140 per unit.79.20    Sec. 16. [32D.11] PROCUREMENT FEE.79.21A dairy plant operator in this state must pay to the commissioner on or before the
         18th 79.22of each month a fee of 1.1 cents per hundredweight of milk purchased the previous
         month. 79.23If a milk producer in this state ships milk out of the state for sale, the producer
         must pay 79.24the fee to the commissioner unless the purchaser voluntarily pays the fee. Producers
         who 79.25ship milk out of state and processors must submit to the commissioner monthly reports
         79.26related to milk purchases along with the appropriate procurement fee. The commissioner
         79.27shall have access to all relevant purchase or sale records as necessary to verify
         compliance 79.28with this section and may require the producer or purchaser to produce records as
         necessary 79.29to determine compliance.79.30    Sec. 17. [32D.12] SELECTED PRODUCTS FEE.79.31(a) A manufacturer must pay to the commissioner a fee for fluid milk processed and
         79.32milk used in the manufacture of fluid milk products sold for retail sale in Minnesota
         in an 80.1amount not less than five cents and not more than nine cents per hundredweight as
         set by 80.2the commissioner's order. No change within any 12-month period may be in excess of
         one 80.3cent per hundredweight.80.4(b) A processor must report quantities of milk processed under paragraph (a) on forms
         80.5provided by the commissioner. Processor fees must be paid monthly. The commissioner
         80.6may require the production of records as necessary to determine compliance with this
         80.7paragraph.80.8(c) The commissioner may create within the department a dairy consulting program to
         80.9provide assistance to dairy producers who are experiencing problems meeting the sanitation
         80.10and quality requirements of the dairy laws and rules. The commissioner may use money
         80.11appropriated from the dairy services account to pay for the program authorized in
         this 80.12paragraph.80.13    Sec. 18. [32D.13] MILK QUALITY STANDARDS.80.14    Subdivision 1.Visible adulteration or odors.Milk shall not be visibly adulterated, or 80.15have any objectionable odor, or be abnormal in appearance or consistency.80.16    Subd. 2.Grade A raw milk.(a) The bacterial count of Grade A raw milk from producers 80.17must not exceed 100,000 bacteria per milliliter prior to commingling with other producer
         80.18milk.80.19(b) After commingling with other producer milk, the bacteria count must not exceed
         80.20300,000 per milliliter prior to pasteurization.80.21    Subd. 3.Grade A pasteurized milk and fluid milk products.(a) The bacterial count 80.22of Grade A pasteurized milk and fluid milk products, at any time after pasteurization
         until 80.23delivery, must not exceed 20,000 bacteria per milliliter.80.24(b) The coliform count of Grade A pasteurized milk and fluid milk products must not
         80.25exceed ten bacteria per milliliter except that bulk tank transport shipments must
         not exceed 80.26100 per milliliter.80.27    Subd. 4.Raw milk, other than Grade A.The bacterial count of raw milk other than 80.28Grade A from producers must not exceed 500,000 bacteria per milliliter prior to commingling
         80.29with other producer milk.80.30    Subd. 5.Pasteurized milk, other than Grade A.The bacterial count of pasteurized 80.31milk other than Grade A pasteurized milk, at any time after pasteurization until delivery,
         80.32must not exceed 20,000 bacteria per milliliter.81.1    Subd. 6.Exceptions.Bacterial count standards do not apply to sour cream, cultured 81.2buttermilk, and other cultured fluid milk products.81.3    Subd. 7.Rules and standards.The commissioner may prescribe standards and rules 81.4adopted in accordance with law more stringent than those imposed by this section.81.5    Subd. 8.Somatic cell count.(a) The somatic cell count, as determined by a direct 81.6microscopic somatic cell count or an electronic somatic cell count, must not exceed
         750,000 81.7cells per milliliter for Grade A raw milk and raw milk other than Grade A. Notwithstanding
         81.8any federal standard, the somatic cell count of goat milk must not exceed 1,500,000
         cells 81.9per milliliter.81.10(b) The commissioner may prescribe standards and rules adopted in accordance with
         81.11law more stringent than those imposed by this subdivision.81.12    Subd. 9.Temperature.If milk is received or collected from a dairy farm more than two 81.13hours after the most recent milking, the temperature of the milk shall not exceed
         45 degrees 81.14Fahrenheit (7 degrees Celsius). If the milk consists of a blend of milk from two or
         more 81.15milkings, and the milk is received or collected less than two hours after the most
         recent 81.16milking, the blend temperature shall not exceed 50 degrees Fahrenheit (10 degrees
         Celsius).81.17    Subd. 10.Industry enforcement.A dairy plant is not required to reject milk shipments 81.18in response to a violation of subdivisions 2 to 9 unless the commissioner suspends
         or revokes 81.19the dairy plant permit or milk producer's Grade A permit or manufacturing grade certification.81.20    Sec. 19. [32D.14] OFFICIAL PRODUCER SAMPLES.81.21(a) An official producer sample for each producer must be analyzed for bacteria, somatic
         81.22cell count, temperature, and antibiotic residues at least once per month in four out
         of every 81.23six months. Official producer samples must be collected and analyzed without providing
         81.24the producer with prior notification of the sampling date.81.25(b) Official producer sample results must be inclusive of all animals from which milk
         81.26is collected and sold on the day of sampling.81.27(c) Official producer sample results must be collected by a licensed sampler.81.28    Sec. 20. [32D.15] MONTHLY REPORTING.81.29(a) In at least four out of every six months, the dairy plant that procures milk from
         the 81.30producer must report to the commissioner at least one representative test result for
         bacteria, 82.1somatic cell count, temperature, and antibiotic residues. The result shall be reported
         within 82.2seven days after the laboratory obtains the test results.82.3(b) A laboratory that performs the tests required under this section for a dairy plant
         may 82.4report the test results for the dairy plant.82.5(c) A dairy plant or laboratory shall report test results under this section in an
         electronic 82.6form approved by the department or using an approved alternative.82.7    Sec. 21. [32D.16] ENFORCEMENT.82.8The commissioner shall suspend a producer's permit or certification if three of the
         last 82.9five official producer samples exceed the applicable standard. The commissioner shall
         82.10provide warning of a pending suspension when two of the last four producer samples
         exceed 82.11the applicable standard.82.12    Sec. 22. [32D.17] LABORATORY CERTIFICATION.82.13(a) A laboratory and its methods are required to be approved or certified prior to
         testing 82.14Grade A milk samples. The results of approved or certified laboratories may be used
         by 82.15official regulatory agencies in enforcement of requirements for milk and milk products.
         The 82.16approval or certification remains valid unless suspended or revoked by the commissioner
         82.17for failure to comply with the requirements of this chapter.82.18(b) Certified or approved laboratories must receive a permit from the commissioner.
         82.19The permit remains valid without renewal unless suspended or revoked by the commissioner
         82.20for failure to comply with the requirements of this chapter.82.21(c) Satisfactory analytical procedures and results for split samples, the nature,
         number, 82.22and frequency of which shall be in accordance with rules established by the commissioner,
         82.23shall be required of a certified laboratory for retention of its certification and
         permit.82.24(d) An application for initial certification or biennial recertification, or for recertification
         82.25following suspension or revocation of a permit, shall be accompanied by an annual
         fee 82.26based on the number of analyses approved and the number of specific tests for which
         they 82.27are approved. The fee must not be less than $150 nor more than $200 for each analysis
         82.28approved and not less than $35 nor more than $50 for each test approved. The commissioner
         82.29may annually adjust assessments within the limits established by this subdivision
         to meet 82.30the cost recovery of the services required by this section.83.1    Sec. 23. [32D.18] MILK BOUGHT BY WEIGHT; TESTING METHODS.83.2    Subdivision 1.Milk fat, protein, and solids not fat bases of payment; tests.(a) Milk 83.3must be purchased from producers using a formula based on one or more of the following:83.4(1) payment of a standard rate with uniform differentials for milk testing above or
         below 83.53.5 percent milk fat;83.6(2) payment of a standard rate for the pounds of milk fat contained in the milk;83.7(3) payment of a standard rate for the pounds of protein contained in the milk;83.8(4) payment of a standard rate for the pounds of nonfat solids contained in the milk;
         or83.9(5) payment of standard rates based on other attributes of value in the milk.83.10(b) In addition, an adjustment may be made on the basis of milk quality and other
         83.11premiums. Testing procedures for determining the percentages of milk fat, protein,
         and 83.12nonfat solids must comply with the methods approved by the Association of Analytical
         83.13Chemists or be as adopted by rule.83.14    Subd. 2.Apparatus to conform to specifications.Glassware, test bottles, pipettes, acid 83.15measures, chemicals, scales, and other apparatus used in the operation of these tests
         shall 83.16conform to the specifications for the particular test method.83.17    Subd. 3.Penalties for violations.A person who:83.18(1) employs any test other than those tests authorized by rule adopted by the 83.19commissioner, or any methods other than the standard official methods for determining
         the 83.20milk fat content of milk or cream;83.21(2) incorrectly samples milk or cream purchased or sold;83.22(3) incorrectly weighs milk or cream purchased or sold;83.23(4) incorrectly grades milk or cream purchased or sold;83.24(5) makes a false entry of the weight, test result, or grade of any milk or cream
         purchased 83.25or sold;83.26(6) incorrectly samples, weighs, tests, or records or reports weights or tests of
         skim milk 83.27or buttermilk purchased or sold;83.28(7) underreads the tests;83.29(8) falsifies the reading of the tests;83.30(9) manipulates the reading of the tests; or84.1(10) falsely states, certifies, or uses in the purchase or sale of milk or cream a
         misreading 84.2of such tests, whether the tests or actual reading have been made by the person or
         by any 84.3other person,84.4is guilty of a misdemeanor.84.5    Sec. 24. [32D.19] ADULTERATED DAIRY PRODUCTS.84.6    Subdivision 1.Purchase and sale prohibition.A person may not sell or knowingly 84.7buy adulterated dairy products.84.8    Subd. 2.Manufacture of food for human consumption from adulterated milk or 84.9cream prohibited.An article of food for human consumption may not be manufactured 84.10from adulterated milk or cream, except as provided in the Federal Food, Drug, and
         Cosmetic 84.11Act, United States Code, title 21, section 301 et seq., and related federal regulations.84.12    Subd. 3.Adulterated milk.For purposes of this section, milk is adulterated if it:84.13(1) is drawn in a filthy or unsanitary place;84.14(2) is drawn from unhealthy or diseased animals;84.15(3) contains water in excess of that normally found in milk;84.16(4) contains a substance that is not a normal constituent of the milk except as allowed
         84.17in this chapter; or84.18(5) contains drug residues or other chemical or biological substances in amounts above
         84.19the tolerances or safe levels established by rule.84.20    Subd. 4.Drug residues.(a) Before processing milk, all bulk milk pickup tankers must 84.21be tested for the presence of beta lactam drug residues and for other residues as
         determined 84.22necessary by the commissioner. Milk received from a producer in other than a bulk
         milk 84.23pickup tanker is also subject to this section.84.24(b) Bulk milk tankers that confirm positive for beta lactam drug residues or other
         residues 84.25must follow up with producer sample testing of all producers contained on the positive
         load.84.26(c) Individual producer samples must be tested for the presence of beta lactam drug
         84.27residues at least once a month for four out of every six-month period. Results of
         these tests 84.28must be reported to the commissioner as official producer sample results using established
         84.29electronic reporting procedures.85.1(d) Drug residue testing methods must be those approved by the Food and Drug 85.2Administration (FDA) and the National Conference of Interstate Milk Shipments or listed
         85.3in the FDA's current version of M-a-85.85.4(e) All drug residue samples testing positive must be reported to the commissioner
         or 85.5the commissioner's designee within 24 hours. The report must include how and where
         the 85.6milk was disposed of, and the volume, the responsible producer, and the possible cause
         of 85.7the violative residue. All milk sample residue results must be recorded and retained
         for six 85.8months by the receiving plant for examination by the commissioner or the commissioner's
         85.9designee.85.10    Subd. 5.Penalties.(a) The permit or certification of a milk producer identified as having 85.11a positive drug residue is immediately suspended. The producer must not ship milk
         while 85.12the permit or certification is suspended.85.13(b) The producer's permit or certification may be reinstated after being sampled by
         the 85.14commissioner or the commissioner's designee and testing negative on the sample.85.15(c) A milk producer may not change plants within 30 days, without permission of the
         85.16commissioner, after receiving notification from the commissioner of a residue violation.85.17(d) The producer that is identified with the drug residue violation is responsible
         for the 85.18value of all milk on any load that tests positive for drug residues and any costs
         associated 85.19with its disposal. Payment shall be made to the purchaser of the milk.85.20(e) For the first and second violation within a 12-month period, the dairy producer
         must, 85.21within 30 days of the date of the residue:85.22(1) meet with the dairy inspector to review potential causes of the adulteration;
         and85.23(2) complete the designated drug residue prevention educational program with a licensed
         85.24veterinarian and submit the signed certificate to the commissioner.85.25(f) Failure to comply with the requirements for the first and second violation listed
         in 85.26paragraph (e) may result in suspension of the producer's permit or certification until
         the 85.27conditions in paragraph (e) are met.85.28(g) For the third or subsequent violation within a 12-month period, the commissioner
         85.29may initiate proceedings for further enforcement action, that may include a penalty
         of up 85.30to a 30-day permit or certification suspension. In lieu of a suspension, the producer
         may be 85.31assessed an administrative penalty of up to $1,000 or the value of milk sold during
         the 85.32intended suspension period.86.1    Subd. 6.Other forms of adulteration.A milk producer who violates subdivision 3 is 86.2subject to any of the following penalties:86.3(1) the permit or certification of a milk producer identified as having adulterated
         milk 86.4is immediately suspended. The producer may not ship milk while the permit or certification
         86.5is suspended;86.6(2) the producer that is identified with the adulterated milk violation is responsible
         for 86.7the value of all milk on any load that is contaminated by the adulterant and any costs
         86.8associated with its disposal. Payment shall be made to the purchaser of the milk;86.9(3) the producer's permit or certification may be reinstated after the commissioner
         receives 86.10adequate verification that the milk is no longer adulterated; and86.11(4) the commissioner may, after evaluation of the severity and repetitive nature of
         the 86.12adulteration, initiate additional enforcement action in the form of permit or certification
         86.13suspension for up to 30 days or in lieu of suspension, an administrative penalty of
         up to 86.14$1,000, or the value of the milk sold during the intended suspension period for each
         violation.86.15    Subd. 7.Civil penalty.A person other than a milk producer who causes milk to be 86.16adulterated is subject to a civil penalty of up to $1,000.86.17    Subd. 8.Appeals.A dairy producer may appeal an adulteration violation by sending 86.18written notice to the commissioner within ten days of receipt of the notice of a violation.
         86.19The appeal must contain a description of why the producer wishes to appeal the violation.86.20    Sec. 25. [32D.20] LIMITATION ON SALE.86.21    Subdivision 1.Pasteurization.No milk or fluid milk products shall be sold, offered or 86.22exposed for sale, or held in possession for sale for the purpose of human consumption
         in 86.23fluid form in this state unless the milk or fluid milk product has been pasteurized,
         as defined 86.24in section 32D.01, subdivision 15, and cooled,  provided that this section shall not
         apply to 86.25milk, cream, or skim milk occasionally secured or purchased for personal use by a
         consumer 86.26at the place or farm where the milk is produced.86.27    Subd. 2.Labels.(a) Pasteurized milk or fluid milk products offered or exposed for sale 86.28or held in possession for sale shall be labeled or otherwise designated as pasteurized
         milk 86.29or pasteurized fluid milk products, and in the case of fluid milk products the label
         shall also 86.30state the name of the specific product.87.1(b) Milk and dairy products must be labeled with the plant number where the product
         87.2was produced, or if produced in a state where official plant numbers are not assigned,
         the 87.3name of the manufacturer and the address of the plant where it was manufactured.87.4    Sec. 26. [32D.21] COOLING AFTER PASTEURIZATION.87.5Immediately following pasteurization, all milk and fluid milk products shall be cooled
         87.6in properly operated equipment approved by the commissioner to a temperature of 45
         degrees 87.7Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered;
         87.8provided, however, that if the milk or fluid milk product is to be cultured immediately
         after 87.9pasteurization, then cooling may be delayed until after the culturing process is completed;
         87.10provided further that the commissioner may prescribe by rule standards more stringent
         than 87.11those imposed by this section.87.12    Sec. 27. [32D.22] MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS.87.13No person, firm, or corporation shall manufacture, transport, sell, offer, or expose
         for 87.14sale or have in possession with intent to sell at retail to a consumer any cheese
         that has not 87.15been (1) manufactured from milk or milk products that have been pasteurized; (2) subjected
         87.16to a heat treatment equivalent to pasteurization during the process of manufacturing
         or 87.17processing; or (3) subjected to an aging process where it has been kept for at least
         60 days 87.18after manufacture at a temperature no lower than 35 degrees Fahrenheit.87.19    Sec. 28. [32D.23] RECOMBINANT BOVINE GROWTH HORMONE LABELING.87.20    Subdivision 1.Labeling.Products offered for wholesale or retail sale in this state that 87.21contain milk, cream, or any product or by-product of milk or cream that have been
         processed 87.22and handled pursuant to this section may be labeled with an rBGH statement that is
         not 87.23false or misleading and in accordance with the federal labeling standards. Products
         offered 87.24for wholesale or retail sale in this state need not contain any further label information
         relative 87.25to the use of rBGH in milk production.87.26    Subd. 2.Affidavit; records.(a) A dairy plant purchasing milk or cream to be used in 87.27products labeled with rBGH claims pursuant to subdivision 1 must provide an affidavit
         87.28from each producer that states that all cows used in the producer's dairy operations
         have 87.29not and will not be treated with rBGH, without advanced written notice of at least
         30 days.87.30(b) The affidavit must be signed by the producer or authorized representative. Affidavits
         87.31must be kept on file for not less than two years after receiving written notice that
         rBGH use 87.32status will change.88.1(c) If a plant chooses to process and handle only milk or milk products sourced from
         88.2cows who have not been treated with rBGH, the plant, as an alternative to providing
         88.3individual producer affidavits, may provide one affidavit to certify that the plant
         has 88.4procedures in place to verify that all producers are not using rBGH. A copy of the
         written 88.5procedure that describes this verification process must also be provided with the
         plant 88.6affidavit.88.7(d) All affidavits and corresponding records must be available for inspection by the
         88.8commissioner.88.9(e) Dairy plants supplying milk or cream to a processor or manufacturer of a product
         to 88.10be labeled pursuant to subdivision 1, for use in that product, shall supply a certification
         to 88.11that processor or manufacturer stating that producers of the supplied milk or cream
         have 88.12executed and delivered affidavits pursuant to this subdivision.88.13    Subd. 3.Separation of nontreated cows and milk.Milk or cream from 88.14non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant
         88.15to subdivision 1 must be kept fully separate from any other milk or cream through
         all stages 88.16of storage, transportation, and processing until the milk or resulting dairy products
         are in 88.17final packaged form in a properly labeled container. Records of the separation must
         be kept 88.18by the dairy plant and product processor or manufacturer at all stages and made available
         88.19to the commissioner for inspection.88.20    Sec. 29. [32D.24] DAIRY TRADE PRACTICES; DEFINITIONS.88.21    Subdivision 1.Application.The definitions in this section apply to sections 32D.24 to 88.2232D.28.88.23    Subd. 2.Basic cost.(a) "Basic cost," for a processor, means the actual cost of the raw 88.24milk plus 75 percent of the actual processing and handling costs for a selected class
         I or 88.25class II dairy product.88.26(b) Basic cost, for a wholesaler, means the actual cost of the selected class I or
         class II 88.27dairy product purchased from the processor or another wholesaler.88.28(c) Basic cost, for a retailer, means the actual cost of the selected class I or class
         II dairy 88.29product purchased from a processor or wholesaler.88.30    Subd. 3.Bona fide charity."Bona fide charity" means a corporation, trust, fund, or 88.31foundation organized and operated exclusively for religious, charitable, scientific,
         literary, 88.32or educational purposes.89.1    Subd. 4.Processor."Processor" means a person engaged in manufacturing or processing 89.2selected class I or class II dairy products in the person's own plant for sale in
         Minnesota.89.3    Subd. 5.Producer."Producer" means a person who operates a dairy herd or herds in 89.4Minnesota producing milk or cream commercially and whose milk or cream is sold to,
         or 89.5received or handled by, a distributor or processor. Producer does not include an incorporated
         89.6or unincorporated association of producers.89.7    Subd. 6.Responsible person."Responsible person" means the business entity that 89.8makes payment to an individual Grade A or Grade B milk producer.89.9    Subd. 7.Selected class I dairy products."Selected class I dairy products" means milk 89.10for human consumption in fluid form and all other class I dairy products as defined
         by the 89.11Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40,
         89.12or successor orders.89.13    Subd. 8.Selected class II dairy products."Selected class II dairy products" means 89.14milk for human consumption processed into fluid cream, eggnog, yogurt, and all other
         class 89.15II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal
         89.16Regulations, title 7, part 1030.40, or successor orders.89.17    Subd. 9.Sell at retail; sale at retail; retail sales."Sell at retail," "sale at retail," or 89.18"retail sales" means a retail sale or offer for retail sale of a selected class I
         or class II dairy 89.19product for ultimate consumption or use.89.20    Subd. 10.Sell at wholesale; sale at wholesale; wholesale sales."Sell at wholesale," 89.21"sale at wholesale," or "wholesale sales" means sale or offer for sale of a selected
         class I 89.22dairy product for purposes of resale or further processing or manufacturing but does
         not 89.23include a producer selling or delivering milk to a processor.89.24    Subd. 11.Wholesaler."Wholesaler" means a person including a distributor in the 89.25business of making sales of selected class I or class II dairy products at wholesale
         in 89.26Minnesota. In the case of a person making sales at both retail and wholesale, wholesaler
         89.27applies only to the sales at wholesale.89.28    Sec. 30. [32D.25] DUTIES AND POWERS OF COMMISSIONER; DATA PRIVACY.89.29    Subdivision 1.Duties; rules.The commissioner shall adopt rules to implement and 89.30administer sections 32D.24 to 32D.28.89.31    Subd. 2.Data privacy.Financial and production information received by the 89.32commissioner on processors, wholesalers, or retailers, including but not limited to
         financial 90.1statements, fee reports, price schedules, cost documentation, books, papers, records,
         or other 90.2documentation for the purpose of administration and enforcement of this chapter is
         classified 90.3private data or nonpublic data pursuant to chapter 13. The classification shall not
         limit the 90.4use of the information in the preparation, institution, or conduct of a legal proceeding
         by 90.5the commissioner in enforcing this chapter.90.6    Sec. 31. [32D.26] SALES BELOW COST PROHIBITED; EXCEPTIONS.90.7    Subdivision 1.Policy; processors; wholesalers; retailers.(a) It is the intent of the 90.8legislature to accomplish partial deregulation of milk marketing with a minimum negative
         90.9impact on small-volume retailers.90.10(b) A processor or wholesaler may not sell or offer for sale selected class I or class
         II 90.11dairy products at a price lower than the processor's or wholesaler's basic cost.90.12(c) A retailer may not sell or offer for sale selected class I or class II dairy products
         at 90.13a retail price lower than (1) 105 percent of the retailer's basic cost until June
         30, 1994; and 90.14(2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may
         not use 90.15any method or device in the sale or offer for sale of a selected dairy product that
         results in 90.16a violation of this section.90.17    Subd. 2.Exceptions.The minimum processor, wholesaler, and retailer prices of 90.18subdivision 1 do not apply:90.19(1) to a sale complying with section 325D.06;90.20(2) to a retailer giving away selected class I and class II dairy products for free
         if the 90.21customer is not required to make a purchase; or90.22(3) to a processor, wholesaler, or retailer giving away selected class I and class
         II dairy 90.23products for free or at a reduced cost to a bona fide charity.90.24    Sec. 32. [32D.27] REDRESS FOR INJURY OR THREATENED INJURY.90.25A person injured by a violation of sections 32D.24 to 32D.28 may commence a legal
         90.26action based on the violation in a court of competent jurisdiction and may recover
         economic 90.27damages and the costs of the action, including reasonable attorney fees. A person
         injured 90.28or who is threatened with injury or loss by reason of violation of sections 32D.24
         to 32D.28 90.29may commence a legal action based on the violation and obtain injunctive relief in
         a court 90.30of competent jurisdiction against persons involved in a violation or threatened violation
         of 90.31sections 32D.24 to 32D.28 to prevent and restrain violations or threatened violations
         of 90.32sections 32D.24 to 32D.28 without alleging or proving actual damages or that an adequate
         91.1remedy at law does not exist, so that injunctive relief can be obtained promptly and
         without 91.2awaiting evidence of injury or actual damage. The injunctive relief does not abridge
         and is 91.3not in lieu of any other civil remedy provided in sections 32D.24 to 32D.28.91.4    Sec. 33. [32D.28] ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT.91.5The provisions of section 32D.26 are suspended during the month of June each year
         in 91.6honor of "Dairy Month."91.7    Sec. 34. Minnesota Statutes 2016, section 34A.01, subdivision 1, is amended to read:91.8    Subdivision 1. Applicability. The definitions in this section and chapters 28, 28A, 29, 91.930, 31, 31A, 32 32D, and 34 apply to this chapter. The definitions in this section apply to 91.10chapter 32 32D.91.11    Sec. 35. REPEALER.91.12Minnesota Statutes 2016, sections 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, and 12;
         32.021; 91.1332.071; 32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105;
         91.1432.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, and
         3; 32.392; 91.1532.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, and
         12; 32.395; 91.1632.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, and 5; 32.415; 32.416;
         32.475; 91.1732.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3,
         4, 5, 12, 91.1813, and 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72;
         32.74; 91.1932.745; 32.75; and 32.90, are repealed."91.20Delete the title and insert:91.21"A bill for an act91.22relating to agriculture; establishing a budget for the Department of Agriculture,
         91.23the Board of Animal Health, and the Agricultural Utilization Research Institute; 91.24making policy, technical, and conforming changes to various agriculture-related 91.25provisions including provisions related to pesticides, noxious weeds, nursery law,
         91.26inspections, commercial feed, grain, food, and agricultural development; 91.27reorganizing dairy law; establishing and modifying agriculture-related programs; 91.28modifying partition fence law; modifying certain fees; modifying the Farmer-Lender
         91.29Mediation Act; requiring reports; appropriating money;amending Minnesota 91.30Statutes 2016, sections 3.7371; 13.6435, subdivision 8; 15.985; 17.119, subdivisions
         91.311, 2; 17.53, subdivisions 2, 8, 13; 17.983, subdivision 1; 17.984, subdivision 1;
         91.3218.79, subdivision 18; 18B.01, by adding subdivisions; 18B.065, subdivision 8; 91.3318B.26, subdivision 1; 18B.28, subdivisions 1, 3; 18B.305; 18B.33, subdivision 91.341; 18B.34, subdivision 1; 18B.36, subdivision 1; 18B.37, subdivision 3; 18C.70, 91.35subdivision 5; 18C.71, subdivision 4; 18H.06, subdivision 2; 18H.07, subdivisions
         91.362, 3; 21.111, subdivisions 2, 3; 21.113; 21.117; 25.32; 25.33, subdivisions 5, 10,
         91.3721; 25.341, subdivisions 1, 2; 25.35; 25.371, subdivision 2; 25.38; 25.39, 91.38subdivisions 1, 1a, 2, 3; 25.40, subdivision 2; 25.41, subdivisions 1, 2, 3, 5, 7a;
         91.3925.42; 27.04; 28A.03, by adding a subdivision; 28A.05; 28A.081; 28A.085, 92.1subdivision 1; 28A.152, subdivision 2; 28A.21, subdivision 6; 31A.02, subdivision
         92.24; 32C.02, subdivision 2; 32C.06; 34A.01, subdivision 1; 41A.12, subdivision 3; 92.341A.20, subdivision 2; 41B.03, subdivisions 2, 3; 41B.043, subdivision 5; 41B.045,
         92.4subdivision 2; 41C.02, subdivision 12; 116V.01, subdivisions 1, 2, 3, 4, 7, 10, 11,
         92.513, 14; 223.17, subdivision 8; 232.22, subdivision 7; 336.9-601; 344.03, subdivision
         92.61; 550.365, subdivision 1; 559.209, subdivision 1; 582.039, subdivision 1; 583.215;
         92.7583.24, subdivision 4, by adding a subdivision; 583.26, subdivisions 2, 3, 3a, 4,
         92.810; 583.27, subdivision 1; Laws 2015, First Special Session chapter 4, article 1,
         92.9section 2, subdivision 4, as amended; proposing coding for new law in Minnesota 92.10Statutes, chapter 18B; proposing coding for new law as Minnesota Statutes, chapter
         92.1132D; repealing Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, 92.1222a; 18B.285; 25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15;
         92.1332.01, subdivisions 1, 2, 6, 8, 9, 10, 11, 12; 32.021; 32.071; 32.072; 32.073; 32.074;
         92.1432.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105; 32.106; 32.21; 32.212; 92.1532.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, 3; 32.392; 32.393; 32.394,
         92.16subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, 12; 32.395; 32.397;
         92.1732.398, subdivision 1; 32.401, subdivisions 1, 2, 3, 5; 32.415; 32.416; 32.475; 92.1832.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 92.193, 4, 5, 12, 13, 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71;
         92.2032.72; 32.74; 32.745; 32.75; 32.90; 41A.20, subdivision 6; 41D.01, subdivision 92.214; 383C.809; 583.22, subdivision 7b."

93.1We request the adoption of this report and repassage of the bill.93.2House Conferees:93.3
                     							.....
                     						
                     							.....
                     						93.4Rod HamiltonPaul Anderson93.5
                     							.....
                     						
                     							.....
                     						93.6Jeff BackerDale Lueck93.7
                     							.....
                     						93.8Jeanne Poppe93.9Senate Conferees:93.10
                     							.....
                     						
                     							.....
                     						93.11Torrey N. WestromBill Weber93.12
                     							.....
                     						
                     							.....
                     						93.13Michael P. GogginAndrew Lang93.14
                     							.....
                     						93.15Kent Eken