1.1                          A bill for an act 
  1.2             relating to agriculture; repealing the commissioner of 
  1.3             agriculture's authority over the inspection, grading, 
  1.4             weighing, sampling, and analysis of grain in the 
  1.5             state; abolishing the grain inspection division of the 
  1.6             department of agriculture; proposing coding for new 
  1.7             law in Minnesota Statutes, chapter 235; repealing 
  1.8             Minnesota Statutes 1994, sections 17B.01; 17B.02; 
  1.9             17B.03; 17B.04; 17B.041; 17B.0451; 17B.048; 17B.05; 
  1.10            17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 
  1.11            17B.14; 17B.15; 17B.16; 17B.17; 17B.18; 17B.20; 
  1.12            17B.21; 17B.22; 17B.23; 17B.24; 17B.25; 17B.26; 
  1.13            17B.27; 17B.28; and 17B.29. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  [235.095] [GRAIN QUALITY; PREMIUMS; DISCOUNTS.] 
  1.16     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  1.17  subdivision apply to this section. 
  1.18     (b) "Discount" means an offer or purchase price for corn, 
  1.19  soybeans, or wheat that is lower than the base or standard price 
  1.20  offered by a buyer at a certain time and at a specified 
  1.21  location.  A discount price represents the lower than normal 
  1.22  value of the grain because of inferior quality as determined by 
  1.23  measurement of grade, dockage, test weight, or other factors. 
  1.24     (c) "Premium" means an offer or a purchase price for corn, 
  1.25  soybeans, or wheat that exceeds the base or standard price 
  1.26  offered by a buyer at a certain time and at a specified 
  1.27  location.  A premium price represents the higher than normal 
  1.28  value of the grain because of superior quality as determined by 
  1.29  measurement of grade, dockage, test weight, or other factors. 
  2.1      Subd. 2.  [CORN; WEIGHT.] A purchaser of corn who provides 
  2.2   a discount for corn that falls below the standard test weight 
  2.3   for corn must offer an equal or greater premium for corn that 
  2.4   has a test weight higher than the standard test weight. 
  2.5      Subd. 3.  [SOYBEANS; WEIGHT.] A purchaser of soybeans who 
  2.6   provides a discount for soybeans that fall below the standard 
  2.7   test weight for soybeans must offer an equal or greater premium 
  2.8   for soybeans that have a test weight higher than the standard 
  2.9   test weight. 
  2.10     Subd. 4.  [WHEAT; WEIGHT.] A purchaser of wheat who 
  2.11  provides a discount for wheat that falls below the standard test 
  2.12  weight for wheat must offer an equal or greater premium for 
  2.13  wheat that has a test weight higher than the standard test 
  2.14  weight. 
  2.15     Subd. 5.  [CORN; FOREIGN MATERIAL.] A purchaser of corn who 
  2.16  provides a discount for corn that falls below the standard for 
  2.17  foreign material for corn must offer an equal or greater premium 
  2.18  for corn that has less foreign material than the standard.  For 
  2.19  corn, foreign material includes broken corn and foreign material.
  2.20     Subd. 6.  [SOYBEANS; FOREIGN MATERIAL.] A purchaser of 
  2.21  soybeans who provides a discount for soybeans that falls below 
  2.22  the standard for foreign material for soybeans must offer an 
  2.23  equal or greater premium for soybeans that have less foreign 
  2.24  material than the standard.  
  2.25     Subd. 7.  [WHEAT; FOREIGN MATERIAL.] A purchaser of wheat 
  2.26  who provides a discount for wheat that falls below the standard 
  2.27  for foreign material for wheat must offer an equal or greater 
  2.28  premium for wheat that has less foreign material than the 
  2.29  standard.  
  2.30     Subd. 8.  [CORN; DAMAGE.] A purchaser of corn who provides 
  2.31  a discount for corn that falls below the standard for total 
  2.32  damaged kernels for corn must offer an equal or greater premium 
  2.33  for corn that has less total damaged kernels than the standard. 
  2.34     Subd. 9.  [SOYBEANS; DAMAGE.] A purchaser of soybeans who 
  2.35  provides a discount for soybeans that falls below the standard 
  2.36  for total damaged kernels for soybeans must offer an equal or 
  3.1   greater premium for soybeans that have less total damaged 
  3.2   kernels than the standard. 
  3.3      Subd. 10.  [WHEAT; DAMAGE.] A purchaser of wheat who 
  3.4   provides a discount for wheat that falls below the standard for 
  3.5   total damaged kernels for wheat must offer an equal or greater 
  3.6   premium for wheat that has less total damaged kernels than the 
  3.7   standard.  
  3.8      Subd. 11.  [EFFECTIVE DATE.] Subdivision 2, 3, 4, 5, 6, 7, 
  3.9   8, 9, or 10 is effective 30 days after at least three states 
  3.10  representing 30 percent or more of the national production of 
  3.11  the grain covered by the subdivision according to the current 
  3.12  United States Department of Agriculture crop production summary 
  3.13  requires that a premium be paid for the grain based on the 
  3.14  factors provided in the subdivision.  Subdivision 2, 3, 4, 5, 6, 
  3.15  7, 8, 9, or 10 applies to purchasers of grain in this state 30 
  3.16  days after the commissioner publishes notice in the State 
  3.17  Register that the subdivision is effective.  The commissioner 
  3.18  must notify affected licensed purchasers of grain that 
  3.19  subdivision 2, 3, 4, 5, 6, 7, 8, 9, or 10 is effective by ten 
  3.20  days after notice is published in the State Register.  
  3.21     Sec. 2.  [235.096] [LOADS MAY BE AVERAGED.] 
  3.22     Subdivision 1.  [LOADS AVERAGED BY MUTUAL AGREEMENT.] A 
  3.23  purchaser and a seller of grain may, by mutual agreement, 
  3.24  average the measurements from multiple loads of acceptable 
  3.25  quality grain with respect to those factors used to determine 
  3.26  price. 
  3.27     Subd. 2.  [NOTICE TO BE POSTED.] A business licensed to buy 
  3.28  or receive grain must post the following notice in a conspicuous 
  3.29  place.  The notice must be at least 8-1/2 by 11 inches in size 
  3.30  with letters at least one-half inch in size stating:  "UNDER 
  3.31  MINNESOTA STATUTES, SECTION 235.096, A PURCHASER AND A SELLER OF 
  3.32  GRAIN MAY, BY MUTUAL AGREEMENT, AVERAGE THE MEASUREMENTS FROM 
  3.33  MULTIPLE LOADS OF ACCEPTABLE QUALITY GRAIN WITH RESPECT TO THOSE 
  3.34  FACTORS USED TO DETERMINE PRICE."  The commissioner shall 
  3.35  provide copies of the notice to each business licensed to buy or 
  3.36  receive grain. 
  4.1      Sec. 3.  [235.097] [FUMIGATING GRAIN TO CHANGE COLOR; 
  4.2   PENALTY.] 
  4.3      Any person who sells or offers for sale or for shipment and 
  4.4   sale any barley or other grain, which has been subjected to 
  4.5   fumigation, or other treatment by sulphur or other material, or 
  4.6   to any other chemical process, affecting the color of the grain, 
  4.7   shall be punished by a fine of not more than $3,000 or by 
  4.8   imprisonment for not more than one year or both, and is liable 
  4.9   to a person injured for treble damages.  Barley and oats may be 
  4.10  purified by fumigation, or treatment with sulphur, under 
  4.11  restrictions and rules the commissioner prescribes for that 
  4.12  purpose, and when so purified may be sold and marketed as 
  4.13  "purified barley" or "purified oats," and not otherwise. 
  4.14     Sec. 4.  [COMMISSIONER ACTION.] 
  4.15     The commissioner of agriculture shall take all action 
  4.16  necessary to abolish the grain inspection division of the 
  4.17  department of agriculture consistent with the provisions of this 
  4.18  act.  This action shall include notification to the 
  4.19  administrator of the Federal Grain Inspection Service of 
  4.20  cancellation of designation as an official agency and 
  4.21  cancellation of delegation to perform inspections at export port 
  4.22  locations under the United States Grain Standards Act.  The 
  4.23  commissioner shall cooperate with the agency designated by the 
  4.24  Federal Grain Inspection Service to assume its duties during the 
  4.25  transition period. 
  4.26     Sec. 5.  [REPEALER.] 
  4.27     Minnesota Statutes 1994, sections 17B.01; 17B.02; 17B.03; 
  4.28  17B.04; 17B.041; 17B.0451; 17B.048; 17B.05; 17B.06; 17B.07; 
  4.29  17B.10; 17B.11; 17B.12; 17B.13; 17B.14; 17B.15; 17B.16; 17B.17; 
  4.30  17B.18; 17B.20; 17B.21; 17B.22; 17B.23; 17B.24; 17B.25; 17B.26; 
  4.31  17B.27; 17B.28; and 17B.29, are repealed. 
  4.32     Sec. 6.  [EFFECTIVE DATE.] 
  4.33     Sections 1 to 3 and 5 are effective January 1, 1996.  
  4.34  Section 4 is effective the day following final enactment.