Minnesota Legislature
HF 1545
Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/20/2017 08:26pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 1545
1.3relating 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, 2017
1.7The Honorable Kurt L. Daudt
1.8Speaker of the House of Representatives
1.9The Honorable Michelle L. Fischbach
1.10President of the Senate
1.11We, 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:
1.19The 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.
2.9The amounts that may be spent for each
2.10purpose are specified in the following
2.11subdivisions.
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.
4.33(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.
6.14(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;
8.28and
8.29(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.
10.17(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.
14.25 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:
14.30$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,
15.1section41A.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, section41A.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,
15.26section41A.14 .
15.27To the extent practicable, funds expended
15.28under Minnesota Statutes, section41A.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$10,235,000
16.2$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, section41B.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,
16.31sections41A.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, sections41A.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,
18.28section16A.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, section239.7911 . 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, section239.7911 . 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.
21.6 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 section3.736, 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. Thecrop or pasture owner must prepare a claim on forms provided
21.13by the commissioner and availableat 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 thecounty extension commissioner'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
22.6thecrop 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
22.12bya crop or pasture an 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 thecrop 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, buta 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 section14.389
22.25to 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 thatshall 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; and
22.32(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; and
24.3(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 section16A.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 sections114C.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 sections169.80 to
169.88 ;
25.20(11) commercial motor vehicle inspections under section169.781 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 ; and
26.1(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 awardcost-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'sor school's documented
26.17cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
26.18must increasethe a farmer's grant award amount over the 70 percent grant limitation
26.19requirement if necessary to limit a farmer'sor 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 to20 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 sections17.51 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 section18B.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) afederal copy of the United States Environmental Protection Agency approval
30.31document permit;
30.32(3) a description of the purpose or objectives of the experimental useproduct;
31.1(4)an a 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; and
31.5(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;and
31.23(10) current science and technology updates; and
31.24(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; or
33.14(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; and
34.4(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 expiresJanuary 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 expiresJanuary 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; and
35.6(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; and
35.14(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; and
36.1(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 stamped
36.5by 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; and
36.21(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 bysuch 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 sections21.111 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; and
37.15(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 shallcause 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; and
37.25(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 andshall contain such any
37.29other information as may be prescribed by rules adopted and published under sections21.111
37.30to21.122 .
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 sections21.111
38.7to21.122 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 sections25.31 to
25.43 shall 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 section25.37 , paragraph (a), are exempt. The commissioner by rule may exempt from
38.23this definition, or from specific provisions of sections25.31 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 section25.37 , 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, mixor, 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
39.13licenseshall must submit an application on a form provided or approved by the commissioner
39.14accompanied bya 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 validthrough 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 applicationwith the commissioner that 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; and
40.17(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); and
41.1(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;and
41.3(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."; and
41.10(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 thissection subdivision if the applicant
41.28has not paid in full the inspection fee for previous inspections. Certificate issuance shall be
41.29based oncompliance 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 section25.37 , paragraph
42.8(a);
42.9(4) removal or disposal of a commercial feed in violation of an order under section25.42 ;
42.10(5) failure or refusal to obtain a commercial feed license under section25.341 or to
42.11provide a small package listing under section
25.39
42.12(6) failure to pay inspection fees, to register a small package under section 25.39, or to
42.13file reports as required by section25.39 .
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; or
42.20(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; or
42.23(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. Suchlocation specific
42.28license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to
42.29commercial feeddistributors 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, alisting of distributor must register each product and submit a current
43.6label for each productmust 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 feeis 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. Thelisting registration under this clause must be
43.25renewed annually on or beforeJuly 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 annuallisting registration before distribution; and
43.28(2) if the annual renewal of thelisting registration is not received or postmarked on or
43.29beforeJuly 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 thelisting 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
44.3sectionshall 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 dueby on or before the 31st of each January
44.6following 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 notmade 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 sectionshall 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 sections25.31 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 sections25.31 to
25.43 , adopts the official
44.33definitions of feed ingredientsor 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; and
45.15(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 noticeshall must be given for each
45.23inspection, but a noticeshall is not be required for each entry made during the period covered
45.24by the inspection. Each inspectionshall be commenced must 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 vehicleshall 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 theofficer 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 theofficer 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 sections25.31 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 guarantorshall
46.13must 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'sauthorized agent has reasonable cause to believe any lot of commercial feed
46.19is being distributed in violation of any of the provisions of sections25.31 to
25.43 or of any
46.20of the prescribed rules under sections25.31 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 feedso 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 withsaid
46.29provisions and sections 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 whichsaid 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 inany 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
47.3ofsaid the commercial feed be ordered by the court without first giving the claimant an
47.4opportunity to apply to the court for release ofsaid the commercial feed or for permission
47.5to process or relabelsaid 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; and
47.20(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; and
47.28(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 section13.02 .
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 billa food establishment the requesting person within seven
48.21days after issuing a certificate to theestablishment 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; or
49.6(3) (2) directly from the individual's home to the ultimate consumer, to the extent allowed
49.7by local ordinance.; or
49.8(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 section35.153, 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
50.1identifyand 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; and
50.16(13) space for feed storage to allow for research capabilities at the facility.
50.17Notwithstanding the provisions of section32C.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 section32C.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 legislatureon 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; and
52.8(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; and
53.1(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 2004
53.9$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 2017
53.18and 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; or
54.1(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 forMinnesota 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;and
54.23(4) three representatives of the commodity promotion councils; and
54.24(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; and
55.14(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 hirestaff 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 bylawsin 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 section13D.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 section13.37,
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 sourcemust 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 anindependent annual audit of
57.16its official books and records by the legislative auditor subject to sections3.971 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 ofthis the
57.19annual financial audit shall be filed with thesecretary 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 section336.9-602 , 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; and
59.20 (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 section336.7-106 ,
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
59.28section336.9-605 , 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; or
60.3 (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 section336.9-607 (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 sections583.20 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 sections583.20 to
583.32 ; or as otherwise allowed
60.18under sections583.20 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 sections583.20 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 sections583.20 to
583.32 ; or (2) as otherwise
62.10allowed under sections583.20 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 section559.21 to purchase agricultural property subject to sections
583.20 to
583.32
62.16for 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 sections583.20
62.26to583.32 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 sections583.20 to
583.32 ; or (2) as otherwise
62.30allowed under sections583.20 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.
63.3Sections336.9-601 , 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 section583.26, 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;or
63.21(5) for which there is a lien for rental value of farm machinery under section514.661 .;
63.22or
63.23(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 section583.24, 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 section559.21 , 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 preparedfor
65.7prior 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 process
65.23including 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 request
65.31and 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; and
66.20(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;
67.7and
67.8(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 sections583.20 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; and
67.22(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 section583.26, 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; and
69.16(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; and
69.23(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.
70.13 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 chapter32 32D are classified under section
32.71,
70.16subdivision 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, or32 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
70.28chapter32 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 section28A.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 section28.01,
71.22subdivision 3 , salvage food processors as defined in section
31.495, subdivision 1 , and dairy
71.23plants as defined in section32.01 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,32
71.3132D, 33, or 34, or rules adopted under one of those chapters; or
72.1(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; or
73.30(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; and
77.23(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; or
83.9(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; or
84.1(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; or
84.18(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; and
85.23(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; and
86.11(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; or
90.22(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
91.10chapter32 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:
91.22relating 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."
1.3relating 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, 2017
1.7The Honorable Kurt L. Daudt
1.8Speaker of the House of Representatives
1.9The Honorable Michelle L. Fischbach
1.10President of the Senate
1.11We, 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:
| 1.18 |
Section 1. AGRICULTURE APPROPRIATIONS. |
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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.
| 1.26 |
APPROPRIATIONS |
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| 1.27 |
Available for the Year |
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| 2.1 |
Ending June 30 |
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| 2.2 |
2018 |
2019 |
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| 2.3 |
Sec. 2. DEPARTMENT OF AGRICULTURE |
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| 2.4 |
Subdivision 1.Total Appropriation |
$ |
53,096,000 |
$ |
53,148,000 |
||
| 2.5 |
Appropriations by Fund |
||
| 2.6 |
2018 |
2019 |
|
| 2.7 |
General |
52,703,000 |
52,751,000 |
| 2.8 |
Remediation |
393,000 |
397,000 |
2.10purpose are specified in the following
2.11subdivisions.
| 2.12 |
Subd. 2.Protection Services |
17,821,000 |
17,825,000 |
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| 2.13 |
Appropriations by Fund |
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| 2.14 |
2018 |
2019 |
|
| 2.15 |
General |
17,428,000 |
17,428,000 |
| 2.16 |
Remediation |
393,000 |
397,000 |
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.
| 4.31 4.32 |
Subd. 3.Agricultural Marketing and Development |
3,996,000 |
3,996,000 |
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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.
| 6.12 6.13 |
Subd. 4.Agriculture, Bioenergy, and Bioproduct Advancement |
22,581,000 |
22,636,000 |
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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;
8.28and
8.29(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.
| 10.16 |
Subd. 5.Administration and Financial Assistance |
8,698,000 |
8,691,000 |
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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.
| 14.22 |
Sec. 3. BOARD OF ANIMAL HEALTH |
$ |
5,420,000 |
$ |
5,456,000 |
||
| 14.23 14.24 |
Sec. 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:
| 14.28 14.29 |
Subd. 4.Agriculture, Bioenergy, and Bioproduct Advancement |
14,993,000 |
18,316,000 |
||||
14.31second year are for transfer to the agriculture
14.32research, education, extension, and technology
14.33transfer account under Minnesota Statutes,
15.1section
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
15.9subdivision 1
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
15.27To the extent practicable, funds expended
15.28under Minnesota Statutes, section
15.29subdivision 1
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
16.2$9,541,000 the second year are for the
16.3agricultural growth, research, and innovation
16.4program in Minnesota Statutes, section
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
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
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
17.6contract 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
18.20are for incentive payments under Minnesota
18.21Statutes, sections
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
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
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
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.
21.6 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
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
21.13by the commissioner and available
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
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
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.
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
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
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
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
22.25to 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
22.30
22.31fiscal year; and
22.32(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; and
24.3(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
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
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
25.20(11) commercial motor vehicle inspections under section
25.21regulations under chapter 221;
25.22
25.23
25.24
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
25.29entities regulated under chapter 62D;
25.30
26.1
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
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
26.17cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
26.18must increase
26.19requirement if necessary to limit a farmer's
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
26.23
26.24standards with a seat belt.
26.25
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
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
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
28.16weed 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
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
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
30.4pesticide registration number or a unique brand name must be registered with the
30.5commissioner.
30.6
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
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
30.31
30.32(3) a description of the purpose or objectives of the experimental use
31.1(4)
31.2
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; and
31.5(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;
31.23(10) current science and technology updates; and
31.24(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; or
33.14(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; and
34.4(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
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
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; and
35.6(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; and
35.14(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
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; and
36.1(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 stamped
36.5by 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; and
36.21(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
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
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; and
37.15(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
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; and
37.25(2) the seed potatoes have been inspected after they have been harvested, removed, or
37.26released from the lab.
37.27
37.28the freedom from disease and physical injury of such potatoes and
37.29other information as may be prescribed by rules adopted and published under sections
37.30to
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
38.7to
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
38.14
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
38.23this definition, or from specific provisions of sections
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
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
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
39.3
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
39.14accompanied by
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
39.18
39.19the licensee has filed a renewal application
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,
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; and
40.17(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); and
41.1(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;
41.3(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."; and
41.10(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
41.28has not paid in full the inspection fee for previous inspections. Certificate issuance shall be
41.29based on
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
42.8(a);
42.9(4) removal or disposal of a commercial feed in violation of an order under section
42.10(5) failure or refusal to obtain a commercial feed license under section
42.11
42.12(6) failure to pay inspection fees, to register a small package under section 25.39, or to
42.13file reports as required by section
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
42.20
42.21
42.22customer; or
42.23(2)
42.24
42.25
42.26
42.27who, with approval from the commissioner, is responsible for the fee. Such
42.28license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to
42.29commercial feed
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
43.6label for each product
43.7
43.8inspection fee. This annual fee
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
43.13
43.14
43.15
43.16
43.17
43.18
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)
43.22(1) before beginning distribution,
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
43.25renewed annually on or before
43.26fee. New products added during the year must be submitted to the commissioner as a
43.27supplement to the annual
43.28(2) if the annual renewal of the
43.29before
43.30fee of $100 per product in addition to the normal charge for the
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
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
44.6following 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
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
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
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
44.33definitions of feed ingredients
45.1American Feed Control Officials, any amendment or modification adopted by the association
45.2
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
45.8complied 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; and
45.15(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
45.23inspection, but a notice
45.24by the inspection. Each inspection
45.25reasonable promptness. Upon completion of the inspection, the owner, operator, or agent
45.26in charge of the facility or vehicle
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
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
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
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
46.13must 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
46.19is being distributed in violation of any of the provisions of sections
46.20of the prescribed rules under sections
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
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
46.29
46.30complaint of the commissioner to the district court of the county in which
46.31feed is located. In the event the court finds the commercial feed to be in violation of sections
47.1commercial feed must be disposed of in
47.2commercial feed and the laws of the state; provided, that in no instance, shall the disposition
47.3of
47.4opportunity to apply to the court for release of
47.5to process or relabel
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; and
47.20
47.21
47.22
47.23
47.24
47.25
47.26
47.27
47.28
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
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
48.12
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
48.21days after issuing a certificate to the
48.22
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
49.6
49.7by local ordinance
49.8(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,
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
49.242
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
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; and
50.16(13) space for feed storage to allow for research capabilities at the facility.
50.17Notwithstanding the provisions of section
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,
50.26a facility, as provided in section
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
51.3
51.4
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
51.7
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,
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; and
52.8(4) have a total net worth, including assets and liabilities of the borrower's spouse and
52.9dependents, of less than
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
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; and
53.1(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
53.9$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
53.16operation. A prospective borrower must have a total net worth, including assets and liabilities
53.17of the borrower's spouse and dependents, of less than
53.18and 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
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; or
54.1(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
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;
54.23(4) three representatives of the commodity promotion councils; and
54.24(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)
55.5
55.6
55.7
55.8implementations;
55.9
55.10royalties, grants, fees-for-service, and memberships;
55.11
55.12Agriculture, the Department of Employment and Economic Development, and other agencies
55.13to maximize marketing opportunities locally, nationally, and internationally; and
55.14
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
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
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
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
56.28subdivision 1
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
57.3
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
57.11
57.12and expenditures of more than
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
57.16its official books and records by the legislative auditor subject to sections
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
57.19annual financial audit shall be filed with the
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
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; and
59.20 (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
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
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; or
60.3 (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
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
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
60.18under sections
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.
61.20
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
62.7than
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
62.10allowed under sections
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
62.16for a remaining balance on the contract of more than
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
62.21EFFECTIVE 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
62.26to
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
62.30allowed under sections
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
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
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;
63.21(5) for which there is a lien for rental value of farm machinery under section
63.22or
63.23(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
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
64.32under section
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
65.7prior 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 process
65.23including 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 request
65.31and 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; and
66.20(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;
67.7and
67.8(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
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; and
67.22(2) describes or references agreements, if any, reached between a creditor and the debtor
67.23
67.24as a result of the mediation; and agreements, if any, reached among creditors
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
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
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; and
69.16(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; and
69.23(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.
70.13 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
70.16
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
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
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
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
71.22subdivision 3
71.23plants as defined in section
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,
71.3132D, 33, or 34, or rules adopted under one of those chapters; or
72.1(2) fails to correct equipment and facility deficiencies as required in rules adopted under
72.2chapter 28, 29, 30, 31, 31A,
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; or
73.30(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; and
77.23(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; or
83.9(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; or
84.1(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; or
84.18(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; and
85.23(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; and
86.11(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; or
90.22(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,
91.10chapter
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:
91.22relating 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."