1.1 	A bill for an act
1.2 	relating to agriculture; establishing a budget for the Department of Agriculture, 
1.3 	the Board of Animal Health, and the Agricultural Utilization Research Institute; 
1.4 	making policy, technical, and conforming changes to various agriculture-related 
1.5 	provisions including provisions related to pesticides, noxious weeds, nursery law, 
1.6 	inspections, commercial feed, grain, food, and agricultural development; 
1.7 	reorganizing dairy law; establishing and modifying agriculture-related programs; 
1.8 	modifying partition fence law; modifying certain fees; modifying the Farmer-Lender 
1.9 	Mediation Act; requiring reports; appropriating money;amending Minnesota 
1.10 	Statutes 2016, sections 3.7371; 13.6435, subdivision 8; 15.985; 17.119, subdivisions 
1.11 	1, 2; 17.53, subdivisions 2, 8, 13; 17.983, subdivision 1; 17.984, subdivision 1; 
1.12 	18.79, subdivision 18; 18B.01, by adding subdivisions; 18B.065, subdivision 8; 
1.13 	18B.26, subdivision 1; 18B.28, subdivisions 1, 3; 18B.305; 18B.33, subdivision 
1.14 	1; 18B.34, subdivision 1; 18B.36, subdivision 1; 18B.37, subdivision 3; 18C.70, 
1.15 	subdivision 5; 18C.71, subdivision 4; 18H.06, subdivision 2; 18H.07, subdivisions 
1.16 	2, 3; 21.111, subdivisions 2, 3; 21.113; 21.117; 25.32; 25.33, subdivisions 5, 10, 
1.17 	21; 25.341, subdivisions 1, 2; 25.35; 25.371, subdivision 2; 25.38; 25.39, 
1.18 	subdivisions 1, 1a, 2, 3; 25.40, subdivision 2; 25.41, subdivisions 1, 2, 3, 5, 7a; 
1.19 	25.42; 27.04; 28A.03, by adding a subdivision; 28A.05; 28A.081; 28A.085, 
1.20 	subdivision 1; 28A.152, subdivision 2; 28A.21, subdivision 6; 31A.02, subdivision 
1.21 	4; 32C.02, subdivision 2; 32C.06; 34A.01, subdivision 1; 41A.12, subdivision 3; 
1.22 	41A.20, subdivision 2; 41B.03, subdivisions 2, 3; 41B.043, subdivision 5; 41B.045, 
1.23 	subdivision 2; 41C.02, subdivision 12; 116V.01, subdivisions 1, 2, 3, 4, 7, 10, 11, 
1.24 	13, 14; 223.17, subdivision 8; 232.22, subdivision 7; 336.9-601; 344.03, subdivision 
1.25 	1; 550.365, subdivision 1; 559.209, subdivision 1; 582.039, subdivision 1; 583.215; 
1.26 	583.24, subdivision 4, by adding a subdivision; 583.26, subdivisions 2, 3, 3a, 4, 
1.27 	10; 583.27, subdivision 1; Laws 2015, First Special Session chapter 4, article 1, 
1.28 	section 2, subdivision 4, as amended; proposing coding for new law in Minnesota 
1.29 	Statutes, chapter 18B; proposing coding for new law as Minnesota Statutes, chapter 
1.30 	32D; repealing Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, 
1.31 	22a; 18B.285; 25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15; 
1.32 	32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, 12; 32.021; 32.071; 32.072; 32.073; 32.074; 
1.33 	32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105; 32.106; 32.21; 32.212; 
1.34 	32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, 3; 32.392; 32.393; 32.394, 
1.35 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, 12; 32.395; 32.397; 
1.36 	32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, 5; 32.415; 32.416; 32.475; 
1.37 	32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 
1.38 	3, 4, 5, 12, 13, 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 
2.1 	32.72; 32.74; 32.745; 32.75; 32.90; 41A.20, subdivision 6; 41D.01, subdivision 
2.2 	4; 383C.809; 583.22, subdivision 7b.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	AGRICULTURE APPROPRIATIONS

2.6	Section 1. AGRICULTURE APPROPRIATIONS.
 	
2.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.8 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.9 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.10 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.11 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.12 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.13 	is fiscal years 2018 and 2019.

2.14				APPROPRIATIONS
	
2.15				Available for the Year
	
2.16				Ending June 30
	
2.17					2018
		2019

2.18	Sec. 2. DEPARTMENT OF AGRICULTURE

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

2.20	Appropriations by Fund
	
2.21		2018
	2019
	
2.22	General
	52,703,000
	52,751,000
	
2.23	Remediation
	393,000
	397,000
	
2.24 	The amounts that may be spent for each 
2.25 	purpose are specified in the following 
2.26 	subdivisions.

2.27	Subd. 2.Protection Services
 		17,821,000
		17,825,000

2.28	Appropriations by Fund
	
2.29		2018
	2019
	
2.30	General
	17,428,000
	17,428,000
	
2.31	Remediation
	393,000
	397,000
	
2.32 	(a) $25,000 the first year and $25,000 the 
2.33 	second year are to develop and maintain 
3.1 	cottage food license exemption outreach and 
3.2 	training materials.
3.3 	(b) $75,000 the first year and $75,000 the 
3.4 	second year are to coordinate the correctional 
3.5 	facility vocational training program and to 
3.6 	assist entities that have explored the feasibility 
3.7 	of establishing a USDA-certified or state 
3.8 	"equal to" food processing facility within 30 
3.9 	miles of the Northeast Regional Corrections 
3.10 	Center.
3.11 	(c) $125,000 the first year and $125,000 the 
3.12 	second year are for additional funding for the 
3.13 	noxious weed and invasive plant program. 
3.14 	These are onetime appropriations.
3.15 	(d) $250,000 the first year and $250,000 the 
3.16 	second year are for transfer to the pollinator 
3.17 	habitat and research account in the agricultural 
3.18 	fund. These are onetime transfers.
3.19 	(e) $393,000 the first year and $397,000 the 
3.20 	second year are from the remediation fund for 
3.21 	administrative funding for the voluntary 
3.22 	cleanup program.
3.23 	(f) $200,000 the first year and $200,000 the 
3.24 	second year are for the industrial hemp pilot 
3.25 	program under Minnesota Statutes, section 
3.26 	18K.09. These are onetime appropriations.
3.27 	(g) $175,000 the first year and $175,000 the 
3.28 	second year are for compensation for 
3.29 	destroyed or crippled livestock under 
3.30 	Minnesota Statutes, section 3.737. This 
3.31 	appropriation may be spent to compensate for 
3.32 	livestock that were destroyed or crippled 
3.33 	during fiscal year 2017. If the amount in the 
4.1 	first year is insufficient, the amount in the 
4.2 	second year is available in the first year.
4.3 	(h) $155,000 the first year and $155,000 the 
4.4 	second year are for compensation for crop 
4.5 	damage under Minnesota Statutes, section 
4.6 	3.7371. If the amount in the first year is 
4.7 	insufficient, the amount in the second year is 
4.8 	available in the first year. The commissioner 
4.9 	may use up to $30,000 of the appropriation 
4.10 	each year to reimburse expenses incurred by 
4.11 	the commissioner or the commissioner's 
4.12 	approved agent to investigate and resolve 
4.13 	claims.
4.14 	If the commissioner determines that claims 
4.15 	made under Minnesota Statutes, section 3.737 
4.16 	or 3.7371, are unusually high, amounts 
4.17 	appropriated for either program may be 
4.18 	transferred to the appropriation for the other 
4.19 	program.
4.20 	(i) $250,000 the first year and $250,000 the 
4.21 	second year are to expand current capabilities 
4.22 	for rapid detection, identification, containment, 
4.23 	control, and management of high priority plant 
4.24 	pests and pathogens. These are onetime 
4.25 	appropriations.
4.26 	(j) $300,000 the first year and $300,000 the 
4.27 	second year are for transfer to the noxious 
4.28 	weed and invasive plant species assistance 
4.29 	account in the agricultural fund to award 
4.30 	grants to local units of government under 
4.31 	Minnesota Statutes, section 18.90, with 
4.32 	preference given to local units of government 
4.33 	responding to Palmer amaranth or other weeds 
4.34 	on the eradicate list. These are onetime 
4.35 	transfers.
5.1 	(k) $120,000 the first year and $120,000 the 
5.2 	second year are for wolf-livestock conflict 
5.3 	prevention grants under article 2, section 89. 
5.4 	The commissioner must submit a report to the 
5.5 	chairs and ranking minority members of the 
5.6 	legislative committees with jurisdiction over 
5.7 	agriculture policy and finance by January 15, 
5.8 	2020, on the outcomes of the wolf-livestock 
5.9 	conflict prevention grants and whether 
5.10 	livestock compensation claims were reduced 
5.11 	in the areas that grants were awarded. These 
5.12 	are onetime appropriations.

5.13
5.14	Subd. 3.Agricultural Marketing and 
Development
 		3,996,000
		3,996,000
	
5.15 	(a) The commissioner must provide outreach 
5.16 	to urban farmers regarding the department's 
5.17 	financial and technical assistance programs 
5.18 	and must assist urban farmers in applying for 
5.19 	assistance.
5.20 	(b) $186,000 the first year and $186,000 the 
5.21 	second year are for transfer to the Minnesota 
5.22 	grown account and may be used as grants for 
5.23 	Minnesota grown promotion under Minnesota 
5.24 	Statutes, section 17.102. Grants may be made 
5.25 	for one year. Notwithstanding Minnesota 
5.26 	Statutes, section 16A.28, the appropriations 
5.27 	encumbered under contract on or before June 
5.28 	30, 2019, for Minnesota grown grants in this 
5.29 	paragraph are available until June 30, 2021.
5.30 	(c) $634,000 the first year and $634,000 the 
5.31 	second year are for continuation of the dairy 
5.32 	development and profitability enhancement 
5.33 	and dairy business planning grant programs 
5.34 	established under Laws 1997, chapter 216, 
5.35 	section 7, subdivision 2, and Laws 2001, First 
6.1 	Special Session chapter 2, section 9, 
6.2 	subdivision 2. The commissioner may allocate 
6.3 	the available sums among permissible 
6.4 	activities, including efforts to improve the 
6.5 	quality of milk produced in the state, in the 
6.6 	proportions that the commissioner deems most 
6.7 	beneficial to Minnesota's dairy farmers. The 
6.8 	commissioner must submit a detailed 
6.9 	accomplishment report and a work plan 
6.10 	detailing future plans for, and anticipated 
6.11 	accomplishments from, expenditures under 
6.12 	this program to the chairs and ranking minority 
6.13 	members of the legislative committees with 
6.14 	jurisdiction over agriculture policy and finance 
6.15 	on or before the start of each fiscal year. If 
6.16 	significant changes are made to the plans in 
6.17 	the course of the year, the commissioner must 
6.18 	notify the chairs and ranking minority 
6.19 	members.
6.20 	(d) The commissioner may use funds 
6.21 	appropriated in this subdivision for annual 
6.22 	cost-share payments to resident farmers or 
6.23 	entities that sell, process, or package 
6.24 	agricultural products in this state for the costs 
6.25 	of organic certification. The commissioner 
6.26 	may allocate these funds for assistance for 
6.27 	persons transitioning from conventional to 
6.28 	organic agriculture.

6.29
6.30	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
	
6.31 	(a) $9,300,000 the first year and $9,300,000 
6.32 	the second year are for transfer to the 
6.33 	agriculture research, education, extension, and 
6.34 	technology transfer account under Minnesota 
6.35 	Statutes, section 41A.14, subdivision 3. Of 
6.36 	these amounts: at least $600,000 the first year 
7.1 	and $600,000 the second year are for the 
7.2 	Minnesota Agricultural Experiment Station's 
7.3 	agriculture rapid response fund under 
7.4 	Minnesota Statutes, section 41A.14, 
7.5 	subdivision 1, clause (2); $2,000,000 the first 
7.6 	year and $2,000,000 the second year are for 
7.7 	grants to the Minnesota Agriculture Education 
7.8 	Leadership Council to enhance agricultural 
7.9 	education with priority given to Farm Business 
7.10 	Management challenge grants; $350,000 the 
7.11 	first year and $350,000 the second year are 
7.12 	for potato breeding; and $450,000 the first 
7.13 	year and $450,000 the second year are for the 
7.14 	cultivated wild rice breeding project at the 
7.15 	North Central Research and Outreach Center 
7.16 	to include a tenure track/research associate 
7.17 	plant breeder. The commissioner shall transfer 
7.18 	the remaining funds in this appropriation each 
7.19 	year to the Board of Regents of the University 
7.20 	of Minnesota for purposes of Minnesota 
7.21 	Statutes, section 41A.14. Of the amount 
7.22 	transferred to the Board of Regents, up to 
7.23 	$1,000,000 each year is for research on avian 
7.24 	influenza, including prevention measures that 
7.25 	can be taken.
7.26 	To the extent practicable, funds expended 
7.27 	under Minnesota Statutes, section 41A.14, 
7.28 	subdivision 1, clauses (1) and (2), must 
7.29 	supplement and not supplant existing sources 
7.30 	and levels of funding. The commissioner may 
7.31 	use up to one percent of this appropriation for 
7.32 	costs incurred to administer the program.
7.33 	(b) $13,256,000 the first year and $13,311,000 
7.34 	the second year are for the agricultural growth, 
7.35 	research, and innovation program in 
8.1 	Minnesota Statutes, section 41A.12. Except 
8.2 	as provided below, the commissioner may 
8.3 	allocate the appropriation each year among 
8.4 	the following areas: facilitating the start-up, 
8.5 	modernization, or expansion of livestock 
8.6 	operations including beginning and 
8.7 	transitioning livestock operations; developing 
8.8 	new markets for Minnesota farmers by 
8.9 	providing more fruits, vegetables, meat, grain, 
8.10 	and dairy for Minnesota school children; 
8.11 	assisting value-added agricultural businesses 
8.12 	to begin or expand, access new markets, or 
8.13 	diversify; providing funding not to exceed 
8.14 	$250,000 each year for urban youth 
8.15 	agricultural education or urban agriculture 
8.16 	community development; providing funding 
8.17 	not to exceed $250,000 each year for the good 
8.18 	food access program under Minnesota 
8.19 	Statutes, section 17.1017; facilitating the 
8.20 	start-up, modernization, or expansion of other 
8.21 	beginning and transitioning farms including 
8.22 	by providing loans under Minnesota Statutes, 
8.23 	section 41B.056; sustainable agriculture 
8.24 	on-farm research and demonstration; 
8.25 	development or expansion of food hubs and 
8.26 	other alternative community-based food 
8.27 	distribution systems; enhancing renewable 
8.28 	energy infrastructure and use; crop research; 
8.29 	Farm Business Management tuition assistance; 
8.30 	good agricultural practices/good handling 
8.31 	practices certification assistance; establishing 
8.32 	and supporting farmer-led water management 
8.33 	councils; and implementing farmer-led water 
8.34 	quality improvement practices. The 
8.35 	commissioner may use up to 6.5 percent of 
9.1 	this appropriation for costs incurred to 
9.2 	administer the program.
9.3 	Of the amount appropriated for the agricultural 
9.4 	growth, research, and innovation program in 
9.5 	Minnesota Statutes, section 41A.12:
9.6 	(1) $1,000,000 the first year and $1,000,000 
9.7 	the second year are for distribution in equal 
9.8 	amounts to each of the state's county fairs to 
9.9 	preserve and promote Minnesota agriculture; 
9.10 	and
9.11 	(2) $1,500,000 the first year and $1,500,000 
9.12 	the second year are for incentive payments 
9.13 	under Minnesota Statutes, sections 41A.16, 
9.14 	41A.17, and 41A.18. Notwithstanding 
9.15 	Minnesota Statutes, section 16A.28, the first 
9.16 	year appropriation is available until June 30, 
9.17 	2019, and the second year appropriation is 
9.18 	available until June 30, 2020. If this 
9.19 	appropriation exceeds the total amount for 
9.20 	which all producers are eligible in a fiscal 
9.21 	year, the balance of the appropriation is 
9.22 	available for the agricultural growth, research, 
9.23 	and innovation program.
9.24 	The commissioner may use funds appropriated 
9.25 	under this subdivision to award up to two 
9.26 	value-added agriculture grants per year of up 
9.27 	to $1,000,000 per grant for new or expanding 
9.28 	agricultural production or processing facilities 
9.29 	that provide significant economic impact to 
9.30 	the region. The commissioner may use funds 
9.31 	appropriated under this subdivision for 
9.32 	additional value-added agriculture grants for 
9.33 	awards between $1,000 and $200,000 per 
9.34 	grant.
10.1 	Appropriations in clauses (1) and (2) are 
10.2 	onetime. Any unencumbered balance does not 
10.3 	cancel at the end of the first year and is 
10.4 	available for the second year. Notwithstanding 
10.5 	Minnesota Statutes, section 16A.28, 
10.6 	appropriations encumbered under contract on 
10.7 	or before June 30, 2019, for agricultural 
10.8 	growth, research, and innovation grants are 
10.9 	available until June 30, 2021.
10.10 	The base budget for the agricultural growth, 
10.11 	research, and innovation program is 
10.12 	$14,275,000 for fiscal years 2020 and 2021 
10.13 	and includes funding for incentive payments 
10.14 	under Minnesota Statutes, sections 41A.16, 
10.15 	41A.17, 41A.18, and 41A.20.
10.16 	The commissioner must develop additional 
10.17 	innovative production incentive programs to 
10.18 	be funded by the agricultural growth, research, 
10.19 	and innovation program.
10.20 	The commissioner must consult with the 
10.21 	commissioner of transportation, the 
10.22 	commissioner of administration, and local 
10.23 	units of government to identify parcels of 
10.24 	publicly owned land that are suitable for urban 
10.25 	agriculture.
10.26 	(c) $25,000 the first year and $25,000 the 
10.27 	second year are for grants to the Southern 
10.28 	Minnesota Initiative Foundation to promote 
10.29 	local foods through an annual event that raises 
10.30 	public awareness of local foods and connects 
10.31 	local food producers and processors with 
10.32 	potential buyers.

11.1	Subd. 5.Administration and Financial Assistance
 		8,698,000
		8,691,000
	
11.2 	(a) $474,000 the first year and $474,000 the 
11.3 	second year are for payments to county and 
11.4 	district agricultural societies and associations 
11.5 	under Minnesota Statutes, section 38.02, 
11.6 	subdivision 1. Aid payments to county and 
11.7 	district agricultural societies and associations 
11.8 	shall be disbursed no later than July 15 of each 
11.9 	year. These payments are the amount of aid 
11.10 	from the state for an annual fair held in the 
11.11 	previous calendar year.
11.12 	(b) $1,000 the first year and $1,000 the second 
11.13 	year are for grants to the Minnesota State 
11.14 	Poultry Association.
11.15 	(c) $18,000 the first year and $18,000 the 
11.16 	second year are for grants to the Minnesota 
11.17 	Livestock Breeders Association.
11.18 	(d) $47,000 the first year and $47,000 the 
11.19 	second year are for the Northern Crops 
11.20 	Institute. These appropriations may be spent 
11.21 	to purchase equipment.
11.22 	(e) $220,000 the first year and $220,000 the 
11.23 	second year are for farm advocate services.
11.24 	(f) $17,000 the first year and $17,000 the 
11.25 	second year are for grants to the Minnesota 
11.26 	Horticultural Society.
11.27 	(g) $108,000 the first year and $108,000 the 
11.28 	second year are for annual grants to the 
11.29 	Minnesota Turf Seed Council for basic and 
11.30 	applied research on: (1) the improved 
11.31 	production of forage and turf seed related to 
11.32 	new and improved varieties; and (2) native 
11.33 	plants, including plant breeding, nutrient 
11.34 	management, pest management, disease 
12.1 	management, yield, and viability. The grant 
12.2 	recipient may subcontract with a qualified 
12.3 	third party for some or all of the basic or 
12.4 	applied research. Any unencumbered balance 
12.5 	does not cancel at the end of the first year and 
12.6 	is available for the second year. These are 
12.7 	onetime appropriations.
12.8 	(h) $113,000 the first year and $113,000 the 
12.9 	second year are for transfer to the Board of 
12.10 	Trustees of the Minnesota State Colleges and 
12.11 	Universities for statewide mental health 
12.12 	counseling support to farm families and 
12.13 	business operators. South Central College shall 
12.14 	serve as the fiscal agent.
12.15 	(i) $550,000 the first year and $550,000 the 
12.16 	second year are for grants to Second Harvest 
12.17 	Heartland on behalf of Minnesota's six 
12.18 	Feeding America food banks for the purchase 
12.19 	of milk for distribution to Minnesota's food 
12.20 	shelves and other charitable organizations that 
12.21 	are eligible to receive food from the food 
12.22 	banks. Milk purchased under the grants must 
12.23 	be acquired from Minnesota milk processors 
12.24 	and based on low-cost bids. The milk must be 
12.25 	allocated to each Feeding America food bank 
12.26 	serving Minnesota according to the formula 
12.27 	used in the distribution of United States 
12.28 	Department of Agriculture commodities under 
12.29 	The Emergency Food Assistance Program 
12.30 	(TEFAP). Second Harvest Heartland must 
12.31 	submit quarterly reports to the commissioner 
12.32 	on forms prescribed by the commissioner. The 
12.33 	reports must include, but are not limited to, 
12.34 	information on the expenditure of funds, the 
12.35 	amount of milk purchased, and the 
13.1 	organizations to which the milk was 
13.2 	distributed. Second Harvest Heartland may 
13.3 	enter into contracts or agreements with food 
13.4 	banks for shared funding or reimbursement of 
13.5 	the direct purchase of milk. Each food bank 
13.6 	receiving money from this appropriation may 
13.7 	use up to two percent of the grant for 
13.8 	administrative expenses. Any unencumbered 
13.9 	balance does not cancel at the end of the first 
13.10 	year and is available for the second year.
13.11 	(j) $1,100,000 the first year and $1,100,000 
13.12 	the second year are for grants to Second 
13.13 	Harvest Heartland on behalf of the six Feeding 
13.14 	America food banks that serve Minnesota to 
13.15 	compensate agricultural producers and 
13.16 	processors for costs incurred to harvest and 
13.17 	package for transfer surplus fruits, vegetables, 
13.18 	and other agricultural commodities that would 
13.19 	otherwise go unharvested, be discarded, or 
13.20 	sold in a secondary market. Surplus 
13.21 	commodities must be distributed statewide to 
13.22 	food shelves and other charitable organizations 
13.23 	that are eligible to receive food from the food 
13.24 	banks. Surplus food acquired under this 
13.25 	appropriation must be from Minnesota 
13.26 	producers and processors. Second Harvest 
13.27 	Heartland must report in the form prescribed 
13.28 	by the commissioner. Second Harvest 
13.29 	Heartland may use up to 15 percent of each 
13.30 	grant for matching administrative and 
13.31 	transportation expenses. Any unencumbered 
13.32 	balance does not cancel at the end of the first 
13.33 	year and is available for the second year.
14.1 	(k) $150,000 the first year and $150,000 the 
14.2 	second year are for grants to the Center for 
14.3 	Rural Policy and Development.
14.4 	(l) $235,000 the first year and $235,000 the 
14.5 	second year are for grants to the Minnesota 
14.6 	Agricultural Education and Leadership 
14.7 	Council for programs of the council under 
14.8 	Minnesota Statutes, chapter 41D.
14.9 	(m) $600,000 the first year and $600,000 the 
14.10 	second year are for grants to the Board of 
14.11 	Regents of the University of Minnesota to 
14.12 	develop, in consultation with the 
14.13 	commissioner of agriculture and the Board of 
14.14 	Animal Health, a software tool or application 
14.15 	through the Veterinary Diagnostic Laboratory 
14.16 	that empowers veterinarians and producers to 
14.17 	understand the movement of unique pathogen 
14.18 	strains in livestock and poultry production 
14.19 	systems, monitor antibiotic resistance, and 
14.20 	implement effective biosecurity measures that 
14.21 	promote animal health and limit production 
14.22 	losses. These are onetime appropriations.
14.23 	(n) $150,000 the first year is for the tractor 
14.24 	rollover protection pilot program under 
14.25 	Minnesota Statutes, section 17.119. This is a 
14.26 	onetime appropriation and is available until 
14.27 	June 30, 2019.
14.28 	(o) $400,000 the first year is for a grant to the 
14.29 	Board of Trustees of the Minnesota State 
14.30 	Colleges and Universities to expand and 
14.31 	renovate the GROW-IT Center at Metropolitan 
14.32 	State University. This is a onetime 
14.33 	appropriation.
15.1 	By January 15, 2018, the commissioner shall 
15.2 	submit a report to the chairs and ranking 
15.3 	minority members of the legislative 
15.4 	committees with jurisdiction over agricultural 
15.5 	policy and finance with a list of inspections 
15.6 	the department conducts at more frequent 
15.7 	intervals than federal law requires, an 
15.8 	explanation of why the additional inspections 
15.9 	are necessary, and provide recommendations 
15.10 	for eliminating any unnecessary inspections.

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

15.12
15.13	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,793,000
	$
	3,793,000

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

15.17
15.18	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		14,993,000
		19,010,000
18,316,000
	
15.19 	$4,483,000 the first year and $8,500,000 the 
15.20 	second year are for transfer to the agriculture 
15.21 	research, education, extension, and technology 
15.22 	transfer account under Minnesota Statutes, 
15.23 	section 41A.14, subdivision 3. The transfer in 
15.24 	this paragraph includes money for plant 
15.25 	breeders at the University of Minnesota for 
15.26 	wild rice, potatoes, and grapes. Of these 
15.27 	amounts, at least $600,000 each year is for the 
15.28 	Minnesota Agricultural Experiment Station's 
15.29 	Agriculture Rapid Response Fund under 
15.30 	Minnesota Statutes, section 41A.14, 
15.31 	subdivision 1, clause (2). Of the amount 
15.32 	appropriated in this paragraph, $1,000,000 
15.33 	each year is for transfer to the Board of 
15.34 	Regents of the University of Minnesota for 
16.1 	research to determine (1) what is causing avian 
16.2 	influenza, (2) why some fowl are more 
16.3 	susceptible, and (3) prevention measures that 
16.4 	can be taken. Of the amount appropriated in 
16.5 	this paragraph, $2,000,000 each year is for 
16.6 	grants to the Minnesota Agriculture Education 
16.7 	Leadership Council to enhance agricultural 
16.8 	education with priority given to Farm Business 
16.9 	Management challenge grants. The 
16.10 	commissioner shall transfer the remaining 
16.11 	grant funds in this appropriation each year to 
16.12 	the Board of Regents of the University of 
16.13 	Minnesota for purposes of Minnesota Statutes, 
16.14 	section 41A.14.
16.15 	To the extent practicable, funds expended 
16.16 	under Minnesota Statutes, section 41A.14, 
16.17 	subdivision 1, clauses (1) and (2), must 
16.18 	supplement and not supplant existing sources 
16.19 	and levels of funding. The commissioner may 
16.20 	use up to 4.5 percent of this appropriation for 
16.21 	costs incurred to administer the program. Any 
16.22 	unencumbered balance does not cancel at the 
16.23 	end of the first year and is available for the 
16.24 	second year.
16.25 	$10,235,000 the first year and $10,235,000
16.26 	$9,541,000 the second year are for the 
16.27 	agricultural growth, research, and innovation 
16.28 	program in Minnesota Statutes, section 
16.29 	41A.12. No later than February 1, 2016, and 
16.30 	February 1, 2017, the commissioner must 
16.31 	report to the legislative committees with 
16.32 	jurisdiction over agriculture policy and finance 
16.33 	regarding the commissioner's 
16.34 	accomplishments and anticipated 
16.35 	accomplishments in the following areas: 
17.1 	facilitating the start-up, modernization, or 
17.2 	expansion of livestock operations including 
17.3 	beginning and transitioning livestock 
17.4 	operations; developing new markets for 
17.5 	Minnesota farmers by providing more fruits, 
17.6 	vegetables, meat, grain, and dairy for 
17.7 	Minnesota school children; assisting 
17.8 	value-added agricultural businesses to begin 
17.9 	or expand, access new markets, or diversify 
17.10 	products; developing urban agriculture; 
17.11 	facilitating the start-up, modernization, or 
17.12 	expansion of other beginning and transitioning 
17.13 	farms including loans under Minnesota 
17.14 	Statutes, section 41B.056; sustainable 
17.15 	agriculture on farm research and 
17.16 	demonstration; development or expansion of 
17.17 	food hubs and other alternative 
17.18 	community-based food distribution systems; 
17.19 	incentive payments under Minnesota Statutes, 
17.20 	sections 41A.16, 41A.17, and 41A.18; and 
17.21 	research on bioenergy, biobased content, or 
17.22 	biobased formulated products and other 
17.23 	renewable energy development. The 
17.24 	commissioner may use up to 4.5 percent of 
17.25 	this appropriation for costs incurred to 
17.26 	administer the program. Any unencumbered 
17.27 	balance does not cancel at the end of the first 
17.28 	year and is available for the second year. 
17.29 	Notwithstanding Minnesota Statutes, section 
17.30 	16A.28, the appropriations encumbered under 
17.31 	contract on or before June 30, 2017, for 
17.32 	agricultural growth, research, and innovation 
17.33 	grants are available until June 30, 2019.
17.34 	The commissioner may use funds appropriated 
17.35 	for the agricultural growth, research, and 
17.36 	innovation program as provided in this 
18.1 	paragraph. The commissioner may award 
18.2 	grants to owners of Minnesota facilities 
18.3 	producing bioenergy, biobased content, or a 
18.4 	biobased formulated product; to organizations 
18.5 	that provide for on-station, on-farm field scale 
18.6 	research and outreach to develop and test the 
18.7 	agronomic and economic requirements of 
18.8 	diverse strands of prairie plants and other 
18.9 	perennials for bioenergy systems; or to certain 
18.10 	nongovernmental entities. For the purposes of 
18.11 	this paragraph, "bioenergy" includes 
18.12 	transportation fuels derived from cellulosic 
18.13 	material, as well as the generation of energy 
18.14 	for commercial heat, industrial process heat, 
18.15 	or electrical power from cellulosic materials 
18.16 	via gasification or other processes. Grants are 
18.17 	limited to 50 percent of the cost of research, 
18.18 	technical assistance, or equipment related to 
18.19 	bioenergy, biobased content, or biobased 
18.20 	formulated product production or $500,000, 
18.21 	whichever is less. Grants to nongovernmental 
18.22 	entities for the development of business plans 
18.23 	and structures related to community ownership 
18.24 	of eligible bioenergy facilities together may 
18.25 	not exceed $150,000. The commissioner shall 
18.26 	make a good-faith effort to select projects that 
18.27 	have merit and, when taken together, represent 
18.28 	a variety of bioenergy technologies, biomass 
18.29 	feedstocks, and geographic regions of the 
18.30 	state. Projects must have a qualified engineer 
18.31 	provide certification on the technology and 
18.32 	fuel source. Grantees must provide reports at 
18.33 	the request of the commissioner.
18.34 	Of the amount appropriated for the agricultural 
18.35 	growth, research, and innovation program in 
18.36 	this subdivision, $1,000,000 the first year and 
19.1 	$1,000,000 the second year are for distribution 
19.2 	in equal amounts to each of the state's county 
19.3 	fairs to preserve and promote Minnesota 
19.4 	agriculture.
19.5 	Of the amount appropriated for the agricultural 
19.6 	growth, research, and innovation program in 
19.7 	this subdivision, $500,000 in fiscal year 2016 
19.8 	and $1,500,000 $806,000 in fiscal year 2017 
19.9 	are for incentive payments under Minnesota 
19.10 	Statutes, sections 41A.16, 41A.17, and 
19.11 	41A.18. If the appropriation exceeds the total 
19.12 	amount for which all producers are eligible in 
19.13 	a fiscal year, the balance of the appropriation 
19.14 	is available to the commissioner for the 
19.15 	agricultural growth, research, and innovation 
19.16 	program. Notwithstanding Minnesota Statutes, 
19.17 	section 16A.28, the first year appropriation is 
19.18 	available until June 30, 2017, and the second 
19.19 	year appropriation is available until June 30, 
19.20 	2018. The commissioner may use up to 4.5 
19.21 	percent of the appropriation for administration 
19.22 	of the incentive payment programs.
19.23 	Of the amount appropriated for the agricultural 
19.24 	growth, research, and innovation program in 
19.25 	this subdivision, $250,000 the first year is for 
19.26 	grants to communities to develop or expand 
19.27 	food hubs and other alternative 
19.28 	community-based food distribution systems. 
19.29 	Of this amount, $50,000 is for the 
19.30 	commissioner to consult with existing food 
19.31 	hubs, alternative community-based food 
19.32 	distribution systems, and University of 
19.33 	Minnesota Extension to identify best practices 
19.34 	for use by other Minnesota communities. No 
19.35 	later than December 15, 2015, the 
20.1 	commissioner must report to the legislative 
20.2 	committees with jurisdiction over agriculture 
20.3 	and health regarding the status of emerging 
20.4 	alternative community-based food distribution 
20.5 	systems in the state along with 
20.6 	recommendations to eliminate any barriers to 
20.7 	success. Any unencumbered balance does not 
20.8 	cancel at the end of the first year and is 
20.9 	available for the second year. This is a onetime 
20.10 	appropriation.
20.11 	$250,000 the first year and $250,000 the 
20.12 	second year are for grants that enable retail 
20.13 	petroleum dispensers to dispense biofuels to 
20.14 	the public in accordance with the biofuel 
20.15 	replacement goals established under 
20.16 	Minnesota Statutes, section 239.7911. A retail 
20.17 	petroleum dispenser selling petroleum for use 
20.18 	in spark ignition engines for vehicle model 
20.19 	years after 2000 is eligible for grant money 
20.20 	under this paragraph if the retail petroleum 
20.21 	dispenser has no more than 15 retail petroleum 
20.22 	dispensing sites and each site is located in 
20.23 	Minnesota. The grant money received under 
20.24 	this paragraph must be used for the installation 
20.25 	of appropriate technology that uses fuel 
20.26 	dispensing equipment appropriate for at least 
20.27 	one fuel dispensing site to dispense gasoline 
20.28 	that is blended with 15 percent of 
20.29 	agriculturally derived, denatured ethanol, by 
20.30 	volume, and appropriate technical assistance 
20.31 	related to the installation. A grant award must 
20.32 	not exceed 85 percent of the cost of the 
20.33 	technical assistance and appropriate 
20.34 	technology, including remetering of and 
20.35 	retrofits for retail petroleum dispensers and 
20.36 	replacement of petroleum dispenser projects. 
21.1 	The commissioner may use up to $35,000 of 
21.2 	this appropriation for administrative expenses. 
21.3 	The commissioner shall cooperate with biofuel 
21.4 	stakeholders in the implementation of the grant 
21.5 	program. The commissioner must report to 
21.6 	the legislative committees with jurisdiction 
21.7 	over agriculture policy and finance by 
21.8 	February 1 each year, detailing the number of 
21.9 	grants awarded under this paragraph and the 
21.10 	projected effect of the grant program on 
21.11 	meeting the biofuel replacement goals under 
21.12 	Minnesota Statutes, section 239.7911. These 
21.13 	are onetime appropriations.
21.14 	$25,000 the first year and $25,000 the second 
21.15 	year are for grants to the Southern Minnesota 
21.16 	Initiative Foundation to promote local foods 
21.17 	through an annual event that raises public 
21.18 	awareness of local foods and connects local 
21.19 	food producers and processors with potential 
21.20 	buyers.

21.21 	Sec. 6. APPROPRIATION CANCELLATION.
 21.22 	All unspent funds, estimated to be $694,000, appropriated for the agricultural growth, 
21.23 	research, and innovation program and designated for bioeconomy incentive payments under 
21.24 	Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as amended 
21.25 	by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section 26, 
21.26 	are canceled to the general fund.

21.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.28 	ARTICLE 2
21.29 	AGRICULTURAL POLICY

21.30 	Section 1. Minnesota Statutes 2016, section 3.7371, is amended to read:
21.31 	3.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.
22.1 		Subdivision 1.Authorization. Notwithstanding section 3.736, subdivision 3, paragraph 
22.2 	(e), or any other law, a person who owns an agricultural crop or pasture shall be compensated 
22.3 	by the commissioner of agriculture for an agricultural crop, or fence surrounding the crop 
22.4 	or pasture, that is damaged or destroyed by elk as provided in this section.
22.5 		Subd. 2.Claim form. The crop or pasture owner must prepare a claim on forms provided 
22.6 	by the commissioner and available at on the county extension agent's office Department of 
22.7 	Agriculture's Web site or by request from the commissioner. The claim form must be filed 
22.8 	with the commissioner.
22.9 		Subd. 3.Compensation. (a) The crop owner is entitled to the target price or the market 
22.10 	price, whichever is greater, of the damaged or destroyed crop plus adjustments for yield 
22.11 	loss determined according to agricultural stabilization and conservation service programs 
22.12 	for individual farms, adjusted annually, as determined by the commissioner, upon 
22.13 	recommendation of the county extensioncommissioner's approved agent for the owner's 
22.14 	county. Verification of fence damage or destruction by elk may be provided by submitting 
22.15 	photographs or other evidence and documentation together with a statement from an 
22.16 	independent witness using forms prescribed by the commissioner. The commissioner, upon 
22.17 	recommendation of the commissioner's approved agent, shall determine whether the crop 
22.18 	damage or destruction or damage to or destruction of a fence surrounding a crop or pasture 
22.19 	is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed. In 
22.20 	any fiscal year, an owner may not be compensated for a damaged or destroyed crop or fence 
22.21 	surrounding a crop or pasture that is less than $100 in value and may be compensated up 
22.22 	to $20,000, as determined under this section, if normal harvest procedures for the area are 
22.23 	followed.
22.24 	(b) In any fiscal year, the commissioner may provide compensation for claims filed 
22.25 	under this section up to the amount expressly appropriated for this purpose.
22.26 		Subd. 4.Insurance deduction. Payments authorized by this section must be reduced 
22.27 	by amounts received by the owner as proceeds from an insurance policy covering crop 
22.28 	losses or damage to or destruction of a fence surrounding a crop or pasture, or from any 
22.29 	other source for the same purpose including, but not limited to, a federal program.
22.30 		Subd. 5.Decision on claims; opening land to hunting. If the commissioner finds that 
22.31 	the crop or pasture owner has shown that the damage or destruction of the owner's crop or 
22.32 	damage to or destruction of a fence surrounding a crop or pasture was caused more probably 
22.33 	than not by elk, the commissioner shall pay compensation as provided in this section and 
23.1 	the rules of the commissioner. A crop An owner who receives compensation under this 
23.2 	section may, by written permission, permit hunting on the land at the landowner's discretion.
23.3 		Subd. 6.Denial of claim; appeal. (a) If the commissioner denies compensation claimed 
23.4 	by a crop or pasturean owner under this section, the commissioner shall issue a written 
23.5 	decision based upon the available evidence including a statement of the facts upon which 
23.6 	the decision is based and the conclusions on the material issues of the claim. A copy of the 
23.7 	decision must be mailed to the crop or pasture owner.
23.8 	(b) A decision denying compensation claimed under this section is not subject to the 
23.9 	contested case review procedures of chapter 14, but a crop or pasture an owner may have 
23.10 	the claim reviewed in a trial de novo in a court in the county where the loss occurred. The 
23.11 	decision of the court may be appealed as in other civil cases. Review in court may be obtained 
23.12 	by filing a petition for review with the administrator of the court within 60 days following 
23.13 	receipt of a decision under this section. Upon the filing of a petition, the administrator shall 
23.14 	mail a copy to the commissioner and set a time for hearing within 90 days after the filing.
23.15 		Subd. 7.Rules. The commissioner shall adopt rules and may amend rules to carry out 
23.16 	this section. The commissioner may use the expedited rulemaking process in section 14.389
23.17 	to adopt and amend rules authorized in this section. The rules must include:
23.18 	(1) methods of valuation of crops damaged or destroyed;
23.19 	(2) criteria for determination of the cause of the crop damage or destruction;
23.20 	(3) notice requirements by the owner of the damaged or destroyed crop;
23.21 	(4) compensation rates for fence damage or destruction that shall include a minimum 
23.22 	claim of $75.00 per incident and a maximum of must not exceed $1,800 per claimant per 
23.23 	fiscal year; and
23.24 	(5) any other matters determined necessary by the commissioner to carry out this section.
23.25 		Subd. 8.Report. The commissioner must submit a report to the chairs of the house of 
23.26 	representatives and senate committees and divisions with jurisdiction over agriculture and 
23.27 	environment and natural resources by December 15 each year that details the total amount 
23.28 	of damages paid, by elk herd, in the previous two fiscal years.

23.29 	Sec. 2. Minnesota Statutes 2016, section 15.985, is amended to read:
23.30 	15.985 ADVISORY INSPECTIONS.
23.31 	(a) Upon the voluntary request of a person to a state agency for an advisory inspection 
23.32 	for the purpose of complying with state law, the agency must, except as provided in 
24.1 	paragraphs (f) and (g), conduct an advisory inspection. An agency is not required to conduct 
24.2 	an advisory inspection if the agency has a regularly scheduled inspection that would occur 
24.3 	within 90 days after the request for the advisory inspection, or if before an advisory inspection 
24.4 	is requested, the agency has notified the person that it will be conducting an inspection 
24.5 	within 45 days. If an advisory inspection results in findings that potentially could make a 
24.6 	person subject to a fine or other penalty imposed by the agency, the agency must notify the 
24.7 	person in writing of those findings within ten days of the inspection.
24.8 	(1) Except as provided in clause (2), if within 60 days of receiving notice, the person 
24.9 	notifies the agency that it has corrected the situation that made the person potentially subject 
24.10 	to the fine or penalty, and the agency later determines that the situation is corrected, the 
24.11 	agency may not impose a fine or penalty as a result of the findings in the advisory inspection.
24.12 	(2) For violations of chapter 177, if the person notifies the agency within the time period 
24.13 	for remedying violations required under the applicable section of chapter 177 that it has 
24.14 	corrected the situation that made the person potentially subject to the fine or penalty, and 
24.15 	the agency later determines that the situation is corrected, the agency may not impose a fine 
24.16 	or penalty as a result of the finding in the advisory inspection.
24.17 	(3) A person may not request more than one advisory inspection from the same agency 
24.18 	in a calendar year. A person may not request an advisory inspection after an inspection 
24.19 	resulting in a fine or other penalty has been determined and the violator notified of the 
24.20 	amount to be paid, until fines or penalties have been paid or settled.
24.21 	(b) For purposes of this section:
24.22 	(1) "inspection" includes an examination of real or personal property or an audit or other 
24.23 	examination of financial or other documents;
24.24 	(2) "penalty" includes a civil or administrative fine or other financial sanction;
24.25 	(3) "person" includes a real person and businesses, including corporations, partnerships, 
24.26 	limited liability companies, and unincorporated associations; and
24.27 	(4) "state agency" means a department, agency, board, commission, constitutional office, 
24.28 	or other group in the executive branch of state government.
24.29 	(c) If an agency revises, amends, extends, or adds additional violations to a notice, the 
24.30 	person has 60 days from the date of those changes to correct the situation without fine or 
24.31 	penalty. For violations of chapter 177, the person has the time period for remedying violations 
24.32 	under the applicable section of chapter 177 to correct the situation without fine or penalty.
25.1 	(d) An agency conducting an inspection under this section may impose and collect from 
25.2 	the person requesting the inspection a fee equal to the costs incurred by the agency related 
25.3 	to the inspection. Fees under this section shall be considered charges for goods and services 
25.4 	provided for the direct and primary use of a private individual, business, or other entity 
25.5 	under section 16A.1283, paragraph (b), clause (3). Fee revenue collected under this section 
25.6 	must be deposited in an appropriate fund other than the general fund and is appropriated 
25.7 	from that fund to the agency collecting the fee for the purpose of conducting inspections 
25.8 	under this section.
25.9 	(e) Nothing in this section shall prohibit or interfere with an agency offering similar 
25.10 	programs that allow independent audits or inspections, including the environmental 
25.11 	improvement program under chapter 114C. If a person conducts a self-audit under chapter 
25.12 	114C, the terms and conditions of this section do not apply. For advisory inspections 
25.13 	conducted by the Pollution Control Agency, terms and conditions of sections 114C.20 to 
25.14 	114C.28 shall be used instead of those in paragraphs (a) to (c) and (g).
25.15 	(f) If agency staff resources are limited, an agency must give higher priority to the 
25.16 	agency's regular inspections over advisory inspections under this section. Insofar as 
25.17 	conducting advisory inspections reduces an agency's costs, the savings must be reflected 
25.18 	in the charges for advisory inspections. Before hiring additional staff complement for 
25.19 	purposes of this section, an agency must report to the chairs and ranking minority members 
25.20 	of the legislative budget committees with jurisdiction over the agency documenting: (1) the 
25.21 	demand for advisory inspections and why additional staff complement is needed to meet 
25.22 	the demand; and (2) that the revenue generated by advisory inspections will cover the 
25.23 	expenses of the additional staff complement. If a person requests an advisory inspection, 
25.24 	but the agency does not have staff resources necessary to conduct the advisory inspection 
25.25 	before a regular inspection is conducted, and the regular inspection results in findings that 
25.26 	could make a person subject to a fine or penalty, the agency must take into account the 
25.27 	person's request for an advisory inspection and the person's desire to take corrective action 
25.28 	before taking any enforcement action against the person.
25.29 	(g) This section does not apply to:
25.30 	(1) criminal penalties;
25.31 	(2) situations in which implementation of this section is prohibited by federal law or 
25.32 	would result in loss of federal funding or in other federal sanctions or in which 
25.33 	implementation would interfere with multistate agreements, international agreements, or 
25.34 	agreements between state and federal regulatory agencies;
26.1 	(3) conduct constituting fraud;
26.2 	(4) violations in a manner that endangers human life or presents significant risk of major 
26.3 	injury or severe emotional harm to humans;
26.4 	(5) violations that are part of a pattern that has occurred repeatedly and shows willful 
26.5 	intent;
26.6 	(6) violations for which it may be demonstrated that the alternative inspections process 
26.7 	is being used to avoid enforcement;
26.8 	(7) violations that occur within three years of violating an applicable law;
26.9 	(8) the Department of Revenue;
26.10 	(9) the Workers' Compensation Division at the Department of Labor and Industry;
26.11 	(10) violations of vehicle size weight limits under sections 169.80 to 169.88;
26.12 	(11) commercial motor vehicle inspections under section 169.781 and motor carrier 
26.13 	regulations under chapter 221;
26.14 	(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the 
26.15 	division provides free inspections similar to those under this section;
26.16 	(13) (12) state inspections or surveys of hospitals, nursing homes, outpatient surgical 
26.17 	centers, supervised living facilities, board and lodging with special services, home care, 
26.18 	housing with services and assisted living settings, hospice, and supplemental nursing services 
26.19 	agencies;
26.20 	(14) (13) examinations of health maintenance organizations or county-based purchasing 
26.21 	entities regulated under chapter 62D;
26.22 	(15) (14) special transportation services under section 174.30; and
26.23 	(16) (15) entities regulated by the Department of Commerce's Financial Institutions and 
26.24 	Insurance Divisions for purposes of regulatory requirements of those divisions.
26.25 	If an agency determines that this section does not apply due to situations specified in clause 
26.26 	(2), the agency must report the basis for that determination to the chairs and ranking minority 
26.27 	members of the legislative committees with jurisdiction over the agency.
26.28 	(h) An agency may terminate an advisory inspection and proceed as if an inspection 
26.29 	were a regular inspection if, in the process of conducting an advisory inspection, the agency 
26.30 	finds a situation that the agency determines: could lead to criminal penalties; endangers 
26.31 	human life or presents significant risk of major injury or severe emotional harm to humans; 
27.1 	presents a severe and imminent threat to animals, food, feed, crops, commodities, or the 
27.2 	environment; or evidences a pattern of willful violations.

27.3 	Sec. 3. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:
27.4 		Subdivision 1.Grants; eligibility. (a) The commissioner must award cost-share grants 
27.5 	to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible 
27.6 	tractors with eligible rollover protective structures.
27.7 	(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented 
27.8 	cost to purchase, ship, and install an eligible rollover protective structure. The commissioner 
27.9 	must increase the a farmer's grant award amount over the 70 percent grant limitation 
27.10 	requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.
27.11 	(c) Schools are eligible for grants that cover the full amount of a school's documented 
27.12 	cost to purchase, ship, and install an eligible rollover protective structure.
27.13 	(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International 
27.14 	standard J2194 is certified to appropriate national or international rollover protection structure 
27.15 	standards with a seat belt.
27.16 	(c) (e) A tractor is eligible if the tractor was built before 1987.

27.17 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2016.

27.18 	Sec. 4. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:
27.19 		Subd. 2.Promotion; administration. The commissioner may spend up to 20 six percent 
27.20 	of total program dollars each fiscal year to promote and administer the program to Minnesota 
27.21 	farmers and schools.

27.22 	Sec. 5. Minnesota Statutes 2016, section 17.53, subdivision 2, is amended to read:
27.23 		Subd. 2.Agricultural commodity. (a) Except as provided in paragraph (b), "agricultural 
27.24 	commodity" means any agricultural product, including, without limitation, animals and 
27.25 	animal products, grown, raised, produced, or fed within Minnesota for use as food, feed, 
27.26 	seed, or any industrial or chemurgic purpose.
27.27 	(b) For wheat, barley, corn, and cultivated wild rice, "agricultural commodity" means 
27.28 	wheat, barley, corn and cultivated wild rice including, without limitation, wheat, barley, 
27.29 	corn and cultivated wild rice grown or produced within or outside Minnesota, for use as 
27.30 	food, feed, seed, or any industrial or chemurgic purpose.

28.1 	Sec. 6. Minnesota Statutes 2016, section 17.53, subdivision 8, is amended to read:
28.2 		Subd. 8.First purchaser. (a) Except as provided in paragraph (b), "first purchaser" 
28.3 	means any person that buys agricultural commodities for movement into commercial channels 
28.4 	from the producer; or any lienholder, secured party or pledgee, public or private, or assignee 
28.5 	of said lienholder, secured party or pledgee, who gains title to the agricultural commodity 
28.6 	from the producer as the result of exercising any legal rights by the lienholder, secured 
28.7 	party, pledgee, or assignee thereof, regardless of when the lien, security interest or pledge 
28.8 	was created and regardless of whether the first purchaser is domiciled within the state or 
28.9 	without. "First purchaser" does not mean the Commodity Credit Corporation when a 
28.10 	commodity is used as collateral for a federal nonrecourse loan unless the commissioner 
28.11 	determines otherwise.
28.12 	(b) For wheat, barley, corn, and cultivated wild rice, "first purchaser" means a person 
28.13 	who buys, receives delivery of, or provides storage for the agricultural commodity from a 
28.14 	producer for movement into commercial channels; or a lienholder, secured party, or pledgee, 
28.15 	who gains title to the agricultural commodity from the producers as the result of exercising 
28.16 	any legal rights by the lienholder, secured party, pledgee, or assignee, regardless of when 
28.17 	the lien, security interest, or pledge was created and regardless of whether or not the first 
28.18 	purchaser is domiciled in the state. "First purchaser" does not mean the Commodity Credit 
28.19 	Corporation when the wheat, barley, corn or cultivated wild rice is used as collateral for a 
28.20 	federal nonrecourse loan unless the commissioner determines otherwise.

28.21 	Sec. 7. Minnesota Statutes 2016, section 17.53, subdivision 13, is amended to read:
28.22 		Subd. 13.Producer. (a) Except as provided in paragraph (b), "producer" means any 
28.23 	person who owns or operates an agricultural producing or growing facility for an agricultural 
28.24 	commodity and shares in the profits and risk of loss from such operation, and who grows, 
28.25 	raises, feeds or produces the agricultural commodity in Minnesota during the current or 
28.26 	preceding marketing year.
28.27 	(b) For wheat, barley, corn, and cultivated wild rice, "producer" means in addition to 
28.28 	the meaning in paragraph (a) and for the purpose of the payment or the refund of the checkoff 
28.29 	fee paid pursuant to sections 17.51 to 17.69 only, a person who delivers into, stores within, 
28.30 	or makes the first sale of the agricultural commodity in Minnesota.

28.31 	Sec. 8. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:
28.32 		Subd. 18.Noxious weed education and notification. (a) The commissioner shall 
28.33 	disseminate information and conduct educational campaigns with respect to control of 
29.1 	noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts 
29.2 	to eliminate or manage these plants. The commissioner shall call and attend meetings and 
29.3 	conferences dealing with the subject of noxious weeds. The commissioner shall maintain 
29.4 	on the department's Web site noxious weed management information including but not 
29.5 	limited to the roles and responsibilities of citizens and government entities under sections 
29.6 	18.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious 
29.7 	weed issue.
29.8 	(b) The commissioner shall post notice on the department's Web site and alert appropriate 
29.9 	media outlets when a weed on the eradicate list is confirmed for the first time in a county.

29.10 	Sec. 9. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 
29.11 	read:
29.12 		Subd. 9b.Experimental use permit. "Experimental use permit" means a permit issued 
29.13 	by the United States Environmental Protection Agency as authorized in Section 5 of the 
29.14 	Federal Insecticide, Fungicide, and Rodenticide Act.

29.15 	Sec. 10. Minnesota Statutes 2016, section 18B.01, is amended by adding a subdivision to 
29.16 	read:
29.17 		Subd. 9c.Experimental use pesticide product. "Experimental use pesticide product" 
29.18 	means any federally registered or unregistered pesticide whose use is authorized by an 
29.19 	experimental use permit issued by the United States Environmental Protection Agency.

29.20 	Sec. 11. [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.
29.21 		Subdivision 1.Account established. A pollinator habitat and research account is 
29.22 	established in the agricultural fund. Money in the account, including interest, is appropriated 
29.23 	to the Board of Regents of the University of Minnesota for pollinator research and outreach 
29.24 	including, but not limited to, science-based best practices and the identification and 
29.25 	establishment of habitat beneficial to pollinators.
29.26 		Subd. 2.Expiration. This section expires July 1, 2022.

29.27 	Sec. 12. Minnesota Statutes 2016, section 18B.065, subdivision 8, is amended to read:
29.28 		Subd. 8.Waste pesticide program surcharge. The commissioner shall annually collect 
29.29 	a waste pesticide program surcharge of $50 on each agricultural waste pesticide product 
29.30 	and $125 on each nonagricultural waste pesticide product registered in the state as part of 
29.31 	a pesticide product registration application under section 18B.26, subdivision 3.

30.1 	Sec. 13. Minnesota Statutes 2016, section 18B.26, subdivision 1, is amended to read:
30.2 		Subdivision 1.Requirement. (a) Except as provided in paragraphs (b) to (d) (e), a person 
30.3 	may not use or distribute a pesticide in this state unless it is registered with the commissioner. 
30.4 	Pesticide registrations expire on December 31 of each year and may be renewed on or before 
30.5 	that date for the following calendar year.
30.6 	(b) Registration is not required if a pesticide is shipped from one plant or warehouse to 
30.7 	another plant or warehouse operated by the same person and used solely at the plant or 
30.8 	warehouse as an ingredient in the formulation of a pesticide that is registered under this 
30.9 	chapter.
30.10 	(c) An unregistered pesticide that was previously registered with the commissioner may 
30.11 	be used for a period of two years following the cancellation of the registration of the pesticide, 
30.12 	unless the commissioner determines that the continued use of the pesticide would cause 
30.13 	unreasonable adverse effects on the environment, or with the written permission of the 
30.14 	commissioner. To use the unregistered pesticide at any time after the two-year period, the 
30.15 	pesticide end user must demonstrate to the satisfaction of the commissioner, if requested, 
30.16 	that the pesticide has been continuously registered under a different brand name or by a 
30.17 	different manufacturer and has similar composition, or, the pesticide end user obtains the 
30.18 	written permission of the commissioner.
30.19 	(d) The commissioner may allow specific pesticide products that are not registered with 
30.20 	the commissioner to be distributed in this state for use in another state.
30.21 	(e) A substance or mixture of substances being tested only to determine its potential 
30.22 	efficacy as a pesticide, or to determine its toxicity or other properties, and not requiring the 
30.23 	issuance of an experimental use permit under United States Environmental Protection 
30.24 	Agency criteria specified in federal regulations, is not required to be registered.
30.25 	(e) (f) Each pesticide with a unique United States Environmental Protection Agency 
30.26 	pesticide registration number or a unique brand name must be registered with the 
30.27 	commissioner.
30.28 	(f) (g) It is unlawful for a person to distribute or use a pesticide in the state, or to sell 
30.29 	into the state for use in the state, any pesticide product that has not been registered by the 
30.30 	commissioner and for which the applicable pesticide registration application fee, gross sales 
30.31 	fee, or waste pesticide program surcharge is not paid pursuant to subdivisions 3 and 4.
30.32 	(g) (h) Every person who sells for use in the state a pesticide product that has been 
30.33 	registered by the commissioner shall pay to the commissioner the applicable registration 
31.1 	application fees, sales fees, and waste pesticide program surcharges. These sales expressly 
31.2 	include all sales made electronically, telephonically, or by any other means that result in a 
31.3 	pesticide product being shipped to or used in the state. There is a rebuttable presumption 
31.4 	that pesticide products that are sold or distributed in or into the state by any person are sold 
31.5 	or distributed for use in the state.

31.6 	Sec. 14. Minnesota Statutes 2016, section 18B.28, subdivision 1, is amended to read:
31.7 		Subdivision 1.Requirement. A person may not use or distribute an experimental use 
31.8 	pesticide product in the state until it is registered with the commissioner. Experimental use 
31.9 	pesticide product registrations expire on December 31 of each year and may be renewed 
31.10 	on or before that date. A substance or mixture of substances being tested only to determine 
31.11 	its potential efficacy as a pesticide, or to determine its toxicity or other properties, and not 
31.12 	requiring the issuance of an experimental use permit under United States Environmental 
31.13 	Protection Agency criteria specified in federal regulations, is not required to be registered.

31.14 	Sec. 15. Minnesota Statutes 2016, section 18B.28, subdivision 3, is amended to read:
31.15 		Subd. 3.Application. A person must file an application for experimental use pesticide 
31.16 	product registration with the commissioner. An application to register an experimental use 
31.17 	pesticide product must include:
31.18 	(1) the name and address of the applicant;
31.19 	(2) a federalcopy of the United States Environmental Protection Agency approval 
31.20 	document permit;
31.21 	(3) a description of the purpose or objectives of the experimental use product;
31.22 	(4) ana copy of the experimental use pesticide labeling accepted experimental use 
31.23 	pesticide product label by the United States Environmental Protection Agency;
31.24 	(5) the name, address, and telephone number of cooperators or participants in this state;
31.25 	(6) the amount of material to be shipped or used in this state; and
31.26 	(7) other information requested by the commissioner.

31.27 	Sec. 16. Minnesota Statutes 2016, section 18B.305, is amended to read:
31.28 	18B.305 PESTICIDE EDUCATION AND TRAINING.
31.29 		Subdivision 1.Education and training. (a) The commissioner, as the lead agency, shall 
31.30 	develop, implement or approve, and evaluate, in consultation with University of Minnesota 
32.1 	Extension, the Minnesota State Colleges and Universities system, and other educational 
32.2 	institutions, innovative educational and training programs addressing pesticide concerns 
32.3 	including:
32.4 	(1) water quality protection;
32.5 	(2) endangered species protection;
32.6 	(3) minimizing pesticide residues in food and water;
32.7 	(4) worker protection and applicator safety;
32.8 	(5) chronic toxicity;
32.9 	(6) integrated pest management and pest resistance;
32.10 	(7) pesticide disposal;
32.11 	(8) pesticide drift;
32.12 	(9) relevant laws including pesticide labels and labeling and state and federal rules and 
32.13 	regulations; and
32.14 	(10) current science and technology updates; and
32.15 	(11) thresholds and guidance to reduce the impacts of insecticide on pollinators.
32.16 	(b) The commissioner shall appoint educational planning committees which must include 
32.17 	representatives of industry and applicators.
32.18 	(c) Specific current regulatory concerns must be discussed and, if appropriate, 
32.19 	incorporated into each training session. Relevant changes to pesticide product labels or 
32.20 	labeling or state and federal rules and regulations may be included.
32.21 	(d) The commissioner may approve programs from private industry, higher education 
32.22 	institutions, and nonprofit organizations that meet minimum requirements for education, 
32.23 	training, and certification.
32.24 		Subd. 2.Training manual and examination development. The commissioner, in 
32.25 	consultation with University of Minnesota Extension and other higher education institutions, 
32.26 	shall continually revise and update pesticide applicator training manuals and examinations. 
32.27 	The manuals and examinations must be written to meet or exceed the minimum standards 
32.28 	required by the United States Environmental Protection Agency and pertinent state specific 
32.29 	information. Questions in the examinations must be determined by the commissioner in 
32.30 	consultation with other responsible agencies. Manuals and examinations must include 
32.31 	pesticide management practices that discuss prevention of pesticide occurrence in 
33.1 	groundwater and surface water of the state, and economic thresholds and guidance for 
33.2 	insecticide use.

33.3 	Sec. 17. Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read:
33.4 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire without a 
33.5 	commercial applicator license for the appropriate use categories or a structural pest control 
33.6 	license.
33.7 	(b) A commercial applicator licensee must have a valid license identification card to 
33.8 	purchase a restricted use pesticide or apply pesticides for hire and must display it upon 
33.9 	demand by an authorized representative of the commissioner or a law enforcement officer. 
33.10 	The commissioner shall prescribe the information required on the license identification 
33.11 	card.
33.12 	(c) A person licensed under this section is considered qualified and is not required to 
33.13 	verify, document, or otherwise prove a particular need prior to use, except as required by 
33.14 	the federal label.

33.15 	Sec. 18. Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read:
33.16 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, certified 
33.17 	private applicator, or licensed structural pest control applicator, a person, including a 
33.18 	government employee, may not purchase or use a restricted use pesticide in performance 
33.19 	of official duties without having a noncommercial applicator license for an appropriate use 
33.20 	category.
33.21 	(b) A licensee must have a valid license identification card when applying pesticides 
33.22 	and must display it upon demand by an authorized representative of the commissioner or a 
33.23 	law enforcement officer. The license identification card must contain information required 
33.24 	by the commissioner.
33.25 	(c) A person licensed under this section is considered qualified and is not required to 
33.26 	verify, document, or otherwise prove a particular need prior to use, except as required by 
33.27 	the federal label.

33.28 	Sec. 19. Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read:
33.29 		Subdivision 1.Requirement. (a) Except for a licensed commercial or noncommercial 
33.30 	applicator, only a certified private applicator may use a restricted use pesticide to produce 
33.31 	an agricultural commodity:
34.1 	(1) as a traditional exchange of services without financial compensation;
34.2 	(2) on a site owned, rented, or managed by the person or the person's employees; or
34.3 	(3) when the private applicator is one of two or fewer employees and the owner or 
34.4 	operator is a certified private applicator or is licensed as a noncommercial applicator.
34.5 	(b) A person may not purchase a restricted use pesticide without presenting a license 
34.6 	card, certified private applicator card, or the card number.
34.7 	(c) A person certified under this section is considered qualified and is not required to 
34.8 	verify, document, or otherwise prove a particular need prior to use, except as required by 
34.9 	the federal label.

34.10 	Sec. 20. Minnesota Statutes 2016, section 18B.37, subdivision 3, is amended to read:
34.11 		Subd. 3.Structural pest control applicators. (a) A structural pest control applicator 
34.12 	must maintain a record of each structural pest control application conducted by that person 
34.13 	or by the person's employees. The record must include the:
34.14 	(1) date of structural pest control application;
34.15 	(2) target pest;
34.16 	(3) brand name of the pesticide, United States Environmental Protection Agency 
34.17 	registration number, and amount used;
34.18 	(4) for fumigation, the temperature and exposure time;
34.19 	(5) time the pesticide application was completed;
34.20 	(6) name and address of the customer;
34.21 	(7) name of structural pest control applicator, name of company and address of applicator 
34.22 	or company, and license number of applicator; and
34.23 	(8) any other information required by the commissioner.
34.24 	(b) All information for this record requirement must be contained in a document for 
34.25 	each pesticide application. An invoice containing the required information may constitute 
34.26 	the record.
34.27 	(c) The record must be completed no later than five days after the application of the 
34.28 	pesticide.
34.29 	(d) Records must be retained for five years after the date of treatment.
35.1 	(e) A copy of the record must be given to a person who ordered the application that is 
35.2 	present at the site where the structural pest control application is conducted, placed in a 
35.3 	conspicuous location at the site where the structural pest control application is conducted 
35.4 	immediately after the application of the pesticides, or delivered to the person who ordered 
35.5 	an application or the owner of the site. The commissioner must make sample forms available 
35.6 	that meet the requirements of this subdivision.
35.7 	(f) A structural applicator must post in a conspicuous place inside a renter's apartment 
35.8 	where a pesticide application has occurred a list of postapplication precautions contained 
35.9 	on the label of the pesticide that was applied in the apartment and any other information 
35.10 	required by the commissioner.

35.11 	Sec. 21. Minnesota Statutes 2016, section 18C.70, subdivision 5, is amended to read:
35.12 		Subd. 5.Expiration. This section expires January 8, 2017 June 30, 2020.

35.13 	EFFECTIVE DATE. This section is effective retroactively from January 7, 2017.

35.14 	Sec. 22. Minnesota Statutes 2016, section 18C.71, subdivision 4, is amended to read:
35.15 		Subd. 4.Expiration. This section expires January 8, 2017 June 30, 2020.

35.16 	EFFECTIVE DATE. This section is effective retroactively from January 7, 2017.

35.17 	Sec. 23. Minnesota Statutes 2016, section 18H.06, subdivision 2, is amended to read:
35.18 		Subd. 2.Occasional sales. (a) An individual may offer nursery stock for sale and be 
35.19 	exempt from the requirement to obtain a nursery stock certificate if:
35.20 	(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
35.21 	(2) all nursery stock sold or distributed by the individual is intended for planting in 
35.22 	Minnesota;
35.23 	(3) all nursery stock purchased or procured for resale or distribution was grown in 
35.24 	Minnesota and has been certified by the commissioner; and
35.25 	(4) the individual conducts sales or distributions of nursery stock on ten or fewer days 
35.26 	in a calendar year.
35.27 	(b) A municipality may offer certified nursery stock for sale and be exempt from the 
35.28 	requirement to obtain a nursery stock certificate if:
35.29 	(1) all nursery stock offered for sale or distributed is intended for planting by residents 
35.30 	of the municipality on public property or public easements within the municipal boundary;
36.1 	(2) all nursery stock purchased or procured for resale or distribution is grown in 
36.2 	Minnesota and has been certified by the commissioner; and
36.3 	(3) the municipality submits to the commissioner before any sale or distribution of 
36.4 	nursery stock a list of all suppliers who provide the municipality with nursery stock.
36.5 	(b) (c) The commissioner may prescribe the conditions of the exempt nursery sales under 
36.6 	this subdivision and may conduct routine inspections of the nursery stock offered for sale.

36.7 	Sec. 24. Minnesota Statutes 2016, section 18H.07, subdivision 2, is amended to read:
36.8 		Subd. 2.Nursery stock grower certificate. (a) A nursery stock grower must pay an 
36.9 	annual fee based on the area of all acreage on which nursery stock is grown as follows:
36.10 	(1) less than one-half acre, $150;
36.11 	(2) from one-half acre to two acres, $200;
36.12 	(3) over two acres up to five acres, $300;
36.13 	(4) over five acres up to ten acres, $350;
36.14 	(5) over ten acres up to 20 acres, $500;
36.15 	(6) over 20 acres up to 40 acres, $650;
36.16 	(7) over 40 acres up to 50 acres, $800;
36.17 	(8) over 50 acres up to 200 acres, $1,100;
36.18 	(9) over 200 acres up to 500 acres, $1,500; and
36.19 	(10) over 500 acres, $1,500 plus $2 for each additional acre.
36.20 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must 
36.21 	be charged for each month, or portion thereof, that the fee is delinquent up to a maximum 
36.22 	of 30 percent for any application for renewal not postmarked or electronically date stamped
36.23 	by December 31 of the current year.
36.24 	(c) A nursery stock grower found operating without a valid nursery stock grower 
36.25 	certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 
36.26 	commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 
36.27 	owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.

37.1 	Sec. 25. Minnesota Statutes 2016, section 18H.07, subdivision 3, is amended to read:
37.2 		Subd. 3.Nursery stock dealer certificate. (a) A nursery stock dealer must pay an annual 
37.3 	fee based on the dealer's gross sales of certified nursery stock per location during the most 
37.4 	recent certificate year. A certificate applicant operating for the first time must pay the 
37.5 	minimum fee. The fees per sales location are:
37.6 	(1) gross sales up to $5,000, $150;
37.7 	(2) gross sales over $5,000 up to $20,000, $175;
37.8 	(3) gross sales over $20,000 up to $50,000, $300;
37.9 	(4) gross sales over $50,000 up to $75,000, $425;
37.10 	(5) gross sales over $75,000 up to $100,000, $550;
37.11 	(6) gross sales over $100,000 up to $200,000, $675; and
37.12 	(7) gross sales over $200,000, $800.
37.13 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must 
37.14 	be charged for each month, or portion thereof, that the fee is delinquent up to a maximum 
37.15 	of 30 percent for any application for renewal not postmarked or electronically date stamped 
37.16 	by December 31 of the current year.
37.17 	(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate 
37.18 	cannot offer for sale or sell nursery stock until: (1) payment is received by the commissioner 
37.19 	for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed; and (2) a 
37.20 	new certificate is issued to the nursery stock dealer by the commissioner.

37.21 	Sec. 26. Minnesota Statutes 2016, section 21.111, subdivision 2, is amended to read:
37.22 		Subd. 2.Inspected. "Inspected" means that the potato plants are examined in the field 
37.23 	and that the harvested potatoes produced by such the potato plants are examined by or under 
37.24 	the authority of the commissioner. For seed potatoes produced in a lab, inspected means 
37.25 	that the lab's records, including records related to the lab's procedures and protocols, as well 
37.26 	as the seed potatoes, have been examined under the authority of the commissioner.

37.27 	Sec. 27. Minnesota Statutes 2016, section 21.111, subdivision 3, is amended to read:
37.28 		Subd. 3.Certified. "Certified" means that the potatoes were inspected while growing 
37.29 	in the field and again after being harvested, and were thereafter duly certified by or under 
37.30 	the authority of the commissioner, as provided in sections 21.111 to 21.122, and as provided 
38.1 	by rules adopted and published by the commissioner. For seed potatoes produced in a lab, 
38.2 	certified means that:
38.3 	(1) the seed potato lab facilities and the lab's procedures and protocols have been 
38.4 	examined under the authority of the commissioner; and
38.5 	(2) the seed potatoes have been inspected after they have been harvested, removed, or 
38.6 	released from the lab, and were duly certified by or under the authority of the commissioner, 
38.7 	as provided in sections 21.111 to 21.122.

38.8 	Sec. 28. Minnesota Statutes 2016, section 21.113, is amended to read:
38.9 	21.113 CERTIFICATES OF INSPECTION.
38.10 	(a) The commissioner shall cause issue certificates of inspection to be issued only when 
38.11 	seed potatoes have been inspected while growing in the field and again after being harvested.
38.12 	(b) For seed potatoes produced in a lab, the commissioner shall issue certificates of 
38.13 	inspection only after:
38.14 	(1) the seed potato lab facility and the lab's records have been inspected; and
38.15 	(2) the seed potatoes have been inspected after they have been harvested, removed, or 
38.16 	released from the lab.
38.17 	Such (c) Certificates of inspection under this section shall show the varietal purity and 
38.18 	the freedom from disease and physical injury of such potatoes and shall contain such any
38.19 	other information as may be prescribed by rules adopted and published under sections 21.111
38.20 	to 21.122.

38.21 	Sec. 29. Minnesota Statutes 2016, section 21.117, is amended to read:
38.22 	21.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS.
38.23 	(a) Any person may make application to the commissioner for inspection or certification 
38.24 	of seed potatoes growing or to be grown. Upon receiving such application and the required 
38.25 	fee and such other information as may be required, the commissioner shall cause such 
38.26 	potatoes to be inspected or certified in accordance with the provisions of sections 21.111
38.27 	to 21.122 and the rules adopted and published thereunder.
38.28 	(b) If a grower wishes to withdraw a field or lab after having made application for 
38.29 	inspection and such withdrawal is requested before the field or lab inspection has been 
38.30 	made, the fee paid shall be refunded to said grower.

39.1 	Sec. 30. Minnesota Statutes 2016, section 25.32, is amended to read:
39.2 	25.32 COMMISSIONER'S DUTIES.
39.3 	The commissioner shall administer sections 25.31 to 25.43shall be administered by the 
39.4 	commissioner.

39.5 	Sec. 31. Minnesota Statutes 2016, section 25.33, subdivision 5, is amended to read:
39.6 		Subd. 5.Commercial feed. "Commercial feed" means materials or combinations of 
39.7 	materials that are distributed or intended to be distributed for use as feed or for mixing in 
39.8 	feed, including feed for aquatic animals, unless the materials are specifically exempted. 
39.9 	Unmixed whole seeds and physically altered entire unmixed seeds, as identified in the 
39.10 	United States grain standards, if the whole or physically altered seeds are not chemically 
39.11 	changed, are not labeled as a feed or for use as feed, or are not adulterated within the meaning 
39.12 	of section 25.37, paragraph (a), are exempt. The commissioner by rule may exempt from 
39.13 	this definition, or from specific provisions of sections 25.31 to 25.43, commodities such as 
39.14 	hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or 
39.15 	substances if those commodities, compounds, or substances are not intermixed with other 
39.16 	materials, are not labeled as a feed or for use as feed, and are not adulterated within the 
39.17 	meaning of section 25.37, paragraph (a).

39.18 	Sec. 32. Minnesota Statutes 2016, section 25.33, subdivision 10, is amended to read:
39.19 		Subd. 10.Manufacture. "Manufacture" means to grind, mix or, blend, or further process, 
39.20 	package, or label a commercial feed for distribution.

39.21 	Sec. 33. Minnesota Statutes 2016, section 25.33, subdivision 21, is amended to read:
39.22 		Subd. 21.Commissioner. "Commissioner" means the commissioner of agriculture or 
39.23 	a designated representative the commissioner's agent.

39.24 	Sec. 34. Minnesota Statutes 2016, section 25.341, subdivision 1, is amended to read:
39.25 		Subdivision 1.Requirement. Before a person may: (1) manufacture a commercial feed 
39.26 	in the state; (2) distribute a commercial feed in or into the state; or (3) have the person's 
39.27 	name appear on the label of a commercial feed as guarantor, the person must have a 
39.28 	commercial feed license for each guarantor, or manufacturing or distributing facility. A 
39.29 	person who makes only retail sales of commercial feed, guaranteed by another, is not required 
39.30 	to obtain a license.

40.1 	Sec. 35. Minnesota Statutes 2016, section 25.341, subdivision 2, is amended to read:
40.2 		Subd. 2.Application; fee; term. A person who is required to have a commercial feed 
40.3 	license shall must submit an application on a form provided or approved by the commissioner 
40.4 	accompanied by a an application fee of $75 paid to the commissioner for each location. A 
40.5 	license is not transferable from one person to another, from one ownership to another, or 
40.6 	from one location to another. The license year is the calendar year. A license expires on 
40.7 	December 31 of the year for which it is issued, except that a license is valid through January 
40.8 	31 of the next year or until the issuance of the renewal license, whichever comes first, if 
40.9 	the licensee has filed a renewal application with the commissionerthat has been received 
40.10 	by the commissioner on or before December 31 of the year for which the current license 
40.11 	was issued, or postmarked on or before December 31 of the year for which the current 
40.12 	license was issued. Any person who is required to have, but fails to obtain a license or a 
40.13 	licensee who fails to comply with license renewal requirements, shall must pay a $100 late 
40.14 	fee in addition to the license fee.

40.15 	Sec. 36. Minnesota Statutes 2016, section 25.35, is amended to read:
40.16 	25.35 LABELING.
40.17 	(a) A commercial feed, except a customer formula feed, must be accompanied by a label 
40.18 	bearing the following information:
40.19 	(1) the product name and the brand name, if any, under which the commercial feed is 
40.20 	distributed;
40.21 	(2) the guaranteed analysis, stated in terms the commissioner requires by rule, to advise 
40.22 	the user of the composition of the feed or to support claims made in the labeling. The 
40.23 	substances or elements must be determinable by laboratory methods such as the methods 
40.24 	published by the AOAC International or other generally recognized methods;
40.25 	(3) the common or usual name of each ingredient used in the manufacture of the 
40.26 	commercial feed. The commissioner may by rule permit the use of a collective term for a 
40.27 	group of ingredients which perform a similar function, or may exempt commercial feeds 
40.28 	or any group of commercial feeds from this requirement on finding that an ingredient 
40.29 	statement is not required in the interest of consumers;
40.30 	(4) the name and principal mailing address of the manufacturer or the person responsible 
40.31 	for distributing the commercial feed;
41.1 	(5) adequate directions for use for all commercial feeds containing drugs and for such 
41.2 	other feeds as the commissioner may require by rule as necessary for their safe and effective 
41.3 	use;
41.4 	(6) precautionary statements which the commissioner determines by rule are necessary 
41.5 	for the safe and effective use of the commercial feed; and
41.6 	(7) a quantity statement.
41.7 	(b) A customer formula feed must be accompanied by a label, invoice, delivery slip, or 
41.8 	other shipping document bearing the following information:
41.9 	(1) name and address of the manufacturer;
41.10 	(2) name and address of the purchaser;
41.11 	(3) date of delivery;
41.12 	(4) the product name and either (i) the quantity of each commercial feed and each other 
41.13 	ingredient used in the mixture, or (ii) a guaranteed analysis and list of ingredients in paragraph 
41.14 	(a), clauses (2) and (3);
41.15 	(5) adequate directions for use for all customer formula feeds containing drugs and for 
41.16 	other feeds the commissioner requires by rule as necessary for their safe and effective use;
41.17 	(6) precautionary statements the commissioner determines by rule are necessary for the 
41.18 	safe and effective use of the customer formula feed;
41.19 	(7) if a product containing a drug is used:
41.20 	(i) the purpose of the medication (claim statement); and
41.21 	(ii) the established name of each active drug ingredient and the level of each drug used 
41.22 	in the final mixture expressed in a manner required by the commissioner by rule; and
41.23 	(8) for a customer formula feed for which the formula is developed by someone other 
41.24 	than the manufacturer, a disclaimer may be included on the label stating "THIS FEED IS 
41.25 	A CUSTOMER FORMULA FEED DEVELOPED BY SOMEONE OTHER THAN THE 
41.26 	MANUFACTURER. THE MANUFACTURER DOES NOT CLAIM, REPRESENT, 
41.27 	WARRANT, OR GUARANTEE, AND IS NOT RESPONSIBLE FOR THE NUTRITIONAL 
41.28 	ADEQUACY OF THIS FEED OR THE NUTRITIONAL SUITABILITY OF THIS FEED 
41.29 	FOR ITS INTENDED PURPOSE."; and
41.30 	(9) a quantity statement.
42.1 	(c) The manufacturer of a customer formula feed the formula of which is developed by 
42.2 	someone other than the manufacturer is not responsible or liable for the nutritional adequacy 
42.3 	or the nutritional suitability of the feed for its intended purpose if: (1) the manufacturer does 
42.4 	not make a claim of nutritional adequacy for the customer formula feed and does not make 
42.5 	a claim for nutritional suitability of the feed for its intended purpose; and (2) the manufacturer 
42.6 	includes the disclaimer in paragraph (b), clause (8). A person other than the manufacturer 
42.7 	who develops or recommends a formula for a customer formula feed is responsible for 
42.8 	providing to the manufacturer of the feed the appropriate labeling information and for 
42.9 	providing the appropriate use information to the feed manufacturer.

42.10 	Sec. 37. Minnesota Statutes 2016, section 25.371, subdivision 2, is amended to read:
42.11 		Subd. 2.Certificate application. (a) A person may apply to the commissioner for a 
42.12 	good manufacturing practices certificate for commercial feed and feed ingredients. 
42.13 	Application for good manufacturing practices certificates must be made on forms provided 
42.14 	or approved by the commissioner. The commissioner shall conduct inspections of facilities 
42.15 	for persons that have applied for or intend to apply for a good manufacturing practices 
42.16 	certificate for commercial feed and feed ingredients from the commissioner. The 
42.17 	commissioner shall not conduct an inspection under this section subdivision if the applicant 
42.18 	has not paid in full the inspection fee for previous inspections. Certificate issuance shall be 
42.19 	based on compliance with subdivisions 3 to 14, or United States Food and Drug 
42.20 	Administration rules regarding preventive controls for animal feed.
42.21 	(b) The commissioner may assess a fee for the inspection, service, and work performed 
42.22 	in carrying out the issuance of a good manufacturing practices certificate for commercial 
42.23 	feed and feed ingredients. The inspection fee must be based on mileage and the cost of 
42.24 	inspection.

42.25 	Sec. 38. Minnesota Statutes 2016, section 25.38, is amended to read:
42.26 	25.38 PROHIBITED ACTS.
42.27 	The following acts and causing the following acts in Minnesota are prohibited:
42.28 	(1) manufacture or distribution of any commercial feed that is adulterated or misbranded;
42.29 	(2) adulteration or misbranding of any commercial feed;
42.30 	(3) distribution of agricultural commodities such as whole seed, hay, straw, stover, silage, 
42.31 	cobs, husks, and hulls, which are adulterated within the meaning of section 25.37, paragraph 
42.32 	(a);
43.1 	(4) removal or disposal of a commercial feed in violation of an order under section 25.42;
43.2 	(5) failure or refusal to obtain a commercial feed license under section 25.341or to 
43.3 	provide a small package listing under section 25.39; or
43.4 	(6) failure to pay inspection fees, to register a small package under section 25.39, or to 
43.5 	file reports as required by section 25.39.

43.6 	Sec. 39. Minnesota Statutes 2016, section 25.39, subdivision 1, is amended to read:
43.7 		Subdivision 1.Amount of fee. (a) An inspection fee at the rate of 16 cents per ton must 
43.8 	be paid to the commissioner on commercial feeds distributed in this state by the person who 
43.9 	first distributes the commercial feed, except that:
43.10 	(1) no fee need be paid on:
43.11 	(i) a commercial feed if the payment has been made by a previous distributor; or
43.12 	(ii) any feed ingredient in a customer formula feeds if the inspection fee is paid on the 
43.13 	commercial feeds which are used as ingredients feed that has been directly furnished by the 
43.14 	customer; or
43.15 	(2) a Minnesota feed distributor who can substantiate that greater than 50 percent of the 
43.16 	distribution of commercial feed is to purchasers outside the state may purchase commercial 
43.17 	feeds without payment of the inspection fee under a tonnage fee exemption permit issued 
43.18 	by the commissioner no fee need be paid on a first distribution if made to a qualified buyer 
43.19 	who, with approval from the commissioner, is responsible for the fee. Such location specific
43.20 	license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to 
43.21 	commercial feed distributors licensees who distribute feed or feed ingredients outside the 
43.22 	state, and who submit a $100 nonrefundable application fee and comply with rules adopted 
43.23 	by the commissioner relative to record keeping, tonnage of commercial feed distributed in 
43.24 	Minnesota, total of all commercial feed tonnage distributed, and all other information which 
43.25 	the commissioner may require so as to ensure that proper inspection fee payment has been 
43.26 	made.
43.27 	(b) In the case of pet food or specialty pet food distributed in the state only in packages 
43.28 	of ten pounds or less, a listing of distributor must register each product and submit a current 
43.29 	label for each product must be submitted annually on forms provided by the commissioner 
43.30 	and, accompanied by an annual application fee of $100 for each product in lieu of the 
43.31 	inspection fee. This annual fee is due by July 1 must be received by the commissioner on 
43.32 	or before June 30 or postmarked on or before June 30. The inspection fee required by 
44.1 	paragraph (a) applies to pet food or specialty pet food distributed in packages exceeding 
44.2 	ten pounds.
44.3 	(c) In the case of specialty pet food distributed in the state only in packages of ten pounds 
44.4 	or less, a listing of each product and a current label for each product must be submitted 
44.5 	annually on forms provided by the commissioner and accompanied by an annual fee of 
44.6 	$100 for each product in lieu of the inspection fee. This annual fee is due by July 1. The 
44.7 	inspection fee required by paragraph (a) applies to specialty pet food distributed in packages 
44.8 	exceeding ten pounds.
44.9 	(d) (c) The minimum inspection fee is $75 per annual reporting period.

44.10 	Sec. 40. Minnesota Statutes 2016, section 25.39, subdivision 1a, is amended to read:
44.11 		Subd. 1a.Containers of ten pounds or less. A distributor who is subject to the annual 
44.12 	fee specified in subdivision 1, paragraph (b) or (c), shall must do the following:
44.13 	(1) before beginning distribution, file register with the commissioner a listing of the pet 
44.14 	and specialty pet foods to be distributed in the state only in containers of ten pounds or less, 
44.15 	on forms provided by the commissioner. The listing registration under this clause must be 
44.16 	renewed annually on or before July 1 June 30 and is the basis for the payment of the annual 
44.17 	fee. New products added during the year must be submitted to the commissioner as a 
44.18 	supplement to the annual listing registration before distribution; and
44.19 	(2) if the annual renewal of the listing registration is not received or postmarked on or 
44.20 	before July 1 June 30 or if an unlisted unregistered product is distributed, pay a late filing 
44.21 	fee of $100 per product in addition to the normal charge for the listing registration. The late 
44.22 	filing fee under this clause is in addition to any other penalty under this chapter.

44.23 	Sec. 41. Minnesota Statutes 2016, section 25.39, subdivision 2, is amended to read:
44.24 		Subd. 2.Annual statement. A person who is liable for the payment of a fee under this 
44.25 	section shall must file with the commissioner on forms furnished by the commissioner an 
44.26 	annual statement setting forth the number of net tons of commercial feeds distributed in 
44.27 	this state during the calendar year. The report is due by on or before the 31st of each January
44.28 	following the year of distribution. The inspection fee at the rate specified in subdivision 1 
44.29 	must accompany the statement. For each tonnage report not filed with the commissioner or 
44.30 	payment of inspection fees not made on time received by the commissioner on or before 
44.31 	January 31 or postmarked on or before January 31, a penalty of ten percent of the amount 
44.32 	due, with a minimum penalty of $10, must be assessed against the license holder, and the 
45.1 	amount of fees due, plus penalty, is a debt and may be recovered in a civil action against 
45.2 	the license holder. The assessment of this penalty does not prevent the department from 
45.3 	taking other actions as provided in this chapter.

45.4 	Sec. 42. Minnesota Statutes 2016, section 25.39, subdivision 3, is amended to read:
45.5 		Subd. 3.Records. Each person required to pay an inspection fee or to report in accordance 
45.6 	with this section shall must keep records, as determined by the commissioner, accurately 
45.7 	detailing the tonnage of commercial feed distributed in this state. Records upon which the 
45.8 	tonnage is based must be maintained for six years and made available to the commissioner 
45.9 	for inspection, copying, and audit. A person who is located outside of this state must maintain 
45.10 	and make available records required by this section in this state or pay all costs incurred in 
45.11 	auditing of the records at another location. Unless required for the enforcement of this 
45.12 	chapter, the information in the records required by this subdivision is private or nonpublic.

45.13 	Sec. 43. Minnesota Statutes 2016, section 25.40, subdivision 2, is amended to read:
45.14 		Subd. 2.Notice; public comment. Before the issuance, amendment, or repeal of any 
45.15 	rule authorized by sections 25.31 to 25.43, the commissioner shall publish the proposed 
45.16 	rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated to 
45.17 	give interested parties, including all current license holders, adequate notice and shall afford 
45.18 	all interested persons an opportunity to present their views orally or in writing, within a 
45.19 	reasonable period of time. After consideration of all views presented by interested persons, 
45.20 	the commissioner shall take appropriate action to issue the proposed rule or to amend or 
45.21 	repeal an existing rule. The provisions of this subdivision notwithstanding, if the 
45.22 	commissioner, pursuant to the authority of sections 25.31 to 25.43, adopts the official 
45.23 	definitions of feed ingredients or and official feed terms as adopted by the Association of 
45.24 	American Feed Control Officials, any amendment or modification adopted by the association 
45.25 	shall be is adopted automatically under sections 25.31 to 25.43 without regard to the 
45.26 	publication of the notice required by this subdivision unless the commissioner, by order 
45.27 	specifically determines that the amendment or modification shall not be adopted.

45.28 	Sec. 44. Minnesota Statutes 2016, section 25.41, subdivision 1, is amended to read:
45.29 		Subdivision 1.Authorization; limitation. For the purpose of enforcement of sections 
45.30 	25.31 to 25.43, and associated rules, in order to determine whether the provisions have been 
45.31 	complied with, including whether or not any operations may be subject to such provisions, 
45.32 	officers or employees duly designated by the commissioner or the commissioner's agent, 
46.1 	upon presenting appropriate credentials, and a written notice to the owner, operator, or agent 
46.2 	in charge, are authorized:
46.3 	(1) to enter, during normal business hours, any factory, warehouse, or establishment 
46.4 	within the state in which commercial feeds are manufactured, processed, packed, or held 
46.5 	for distribution, or to enter any vehicle being used to transport or hold such feeds; and
46.6 	(2) to inspect at reasonable times, within reasonable limits, and in a reasonable manner, 
46.7 	such factory, warehouse, establishment or vehicle and all pertinent equipment, finished and 
46.8 	unfinished materials, containers, and labeling therein. The inspection may include the 
46.9 	verification of records and production and control procedures related to the manufacture, 
46.10 	distribution, storage, handling, or disposal of commercial feed as may be necessary to 
46.11 	determine compliance with this chapter.

46.12 	Sec. 45. Minnesota Statutes 2016, section 25.41, subdivision 2, is amended to read:
46.13 		Subd. 2.Notification; promptness. A separate notice shall must be given for each 
46.14 	inspection, but a notice shall is not be required for each entry made during the period covered 
46.15 	by the inspection. Each inspection shall be commencedmust begin and be completed with 
46.16 	reasonable promptness. Upon completion of the inspection, the owner, operator, or agent 
46.17 	in charge of the facility or vehicle shall must be so notified.

46.18 	Sec. 46. Minnesota Statutes 2016, section 25.41, subdivision 3, is amended to read:
46.19 		Subd. 3.Receipt for samples. If the officer or employee commissioner or the 
46.20 	commissioner's agent making such inspection of a factory, warehouse, or other establishment 
46.21 	has obtained a sample in the course of the inspection, upon completion of the inspection 
46.22 	and prior to leaving the premises the officer or employee commissioner or the commissioner's 
46.23 	agent shall give to the owner, operator, or agent in charge a receipt describing the samples 
46.24 	obtained.

46.25 	Sec. 47. Minnesota Statutes 2016, section 25.41, subdivision 5, is amended to read:
46.26 		Subd. 5.Entry of premises. For the purpose of the enforcement of sections 25.31 to 
46.27 	25.43, the commissioner or the commissioner's duly designated agent is authorized to enter 
46.28 	upon any public or private premises including any vehicle of transport during regular business 
46.29 	hours to have access to, and to obtain samples, and to examine and copy records relating 
46.30 	to distribution of commercial feeds.

47.1 	Sec. 48. Minnesota Statutes 2016, section 25.41, subdivision 7a, is amended to read:
47.2 		Subd. 7a.Manufacturer's report of investigation. If the inspection and analysis of an 
47.3 	official sample indicates that a commercial feed has been adulterated or misbranded, the 
47.4 	person whose name appears on the label of the indicated commercial feed as guarantor shall
47.5 	must provide a manufacturer's report of investigation to the commissioner within 30 days 
47.6 	following the receipt of the official analysis.

47.7 	Sec. 49. Minnesota Statutes 2016, section 25.42, is amended to read:
47.8 	25.42 DETAINED COMMERCIAL FEEDS.
47.9 		Subdivision 1.Withdrawal from distribution order. When the commissioner or the 
47.10 	commissioner's authorized agent has reasonable cause to believe any lot of commercial feed 
47.11 	is being distributed in violation of any of the provisions of sections 25.31 to 25.43 or of any 
47.12 	of the prescribed rules under sections 25.31 to 25.43, the commissioner or the commissioner's 
47.13 	agent may issue and enforce a written or printed "withdrawal from distribution" order, 
47.14 	warning the distributor not to dispose of the lot of commercial feed in any manner until 
47.15 	written permission is given by the commissioner or the court. The commissioner shall release 
47.16 	the lot of withdrawn commercial feed so withdrawn when said provisions and sections 25.31 
47.17 	to 25.43 and associated rules have been complied with. If compliance is not obtained within 
47.18 	30 days, the commissioner may begin, or upon request of the distributor or license holder 
47.19 	shall begin, proceedings for condemnation.
47.20 		Subd. 2.Seizure; disposition. Any lot of commercial feed not in compliance with said 
47.21 	provisions andsections 25.31 to 25.43 and associated rules shall be is subject to seizure on 
47.22 	complaint of the commissioner to the district court of the county in which said the commercial 
47.23 	feed is located. In the event the court finds the commercial feed to be in violation of sections 
47.24 	25.31 to 25.43 and orders the condemnation of said the commercial feed, it shall the 
47.25 	commercial feed must be disposed of in any a manner consistent with the quality of the 
47.26 	commercial feed and the laws of the state; provided, that in no instance, shall the disposition 
47.27 	of said the commercial feed be ordered by the court without first giving the claimant an 
47.28 	opportunity to apply to the court for release of said the commercial feed or for permission 
47.29 	to process or relabel said the commercial feed to bring it into compliance with sections 
47.30 	25.31 to 25.43.

47.31 	Sec. 50. Minnesota Statutes 2016, section 27.04, is amended to read:
47.32 	27.04 APPLICATION FOR LICENSE.
48.1 		Subdivision 1.Issuance. The commissioner shall issue a wholesale produce dealer's 
48.2 	license to engage in the business of a dealer at wholesale to persons submitting an application, 
48.3 	paying the prescribed fee, and complying with the conditions in this section.
48.4 		Subd. 2.Application contents. (a) The application must be in writing, accompanied by 
48.5 	the prescribed fee, and state:
48.6 	(1) the place or places where the applicant intends to carry on the business for which 
48.7 	the license is desired;
48.8 	(2) the estimated amount of business to be done monthly;
48.9 	(3) the amount of business done during the preceding year, if any;
48.10 	(4) the full names of the persons constituting the firm for a partnership, and for a 
48.11 	corporation the names of the officers of the corporation and where incorporated; and
48.12 	(5) a financial statement showing the value and character of the assets and the amount 
48.13 	of liabilities of the applicant;
48.14 	(6) the income and expenses for the most recent year;
48.15 	(7) the names and addresses of all shareholders who own at least five percent of a 
48.16 	corporate applicant's shares of stock;
48.17 	(8) whether the applicant or any of its officers, partners, or agents have been involved 
48.18 	in any litigation relating to the business of a wholesale produce dealer in the previous five 
48.19 	years; and
48.20 	(9) (5) any other information relevant to the conduct of its business as a wholesale 
48.21 	produce dealer in the previous five years, as the commissioner may require.
48.22 	(b) If a contract is used in a transaction, a copy of the contract must also be filed with 
48.23 	the commissioner.
48.24 	(c) Financial data required of an applicant under this section is classified as private data 
48.25 	with regard to data on individuals and as nonpublic data with regard to data not on individuals 
48.26 	under section 13.02.
48.27 		Subd. 3.Filing. Applications shall be filed annually.

48.28 	Sec. 51. Minnesota Statutes 2016, section 28A.03, is amended by adding a subdivision to 
48.29 	read:
48.30 		Subd. 11.Regularly engaged. "Regularly engaged" means any person who operates a 
48.31 	food business over a period of time at uniform, consistent intervals.

49.1 	Sec. 52. Minnesota Statutes 2016, section 28A.081, is amended to read:
49.2 	28A.081 CERTIFICATE FEES.
49.3 		Subdivision 1.Fee. A fee of $75 $125 for each certificate shall be charged to all food 
49.4 	establishments that request certificates any person who requests a certificate issued by the 
49.5 	Minnesota Department of Agriculture to facilitate the movement of Minnesota processed 
49.6 	and manufactured foods destined for export from the state of Minnesota. Certificates include, 
49.7 	but are not limited to, a certificate of free sale, certificate of export, certificate of sanitation, 
49.8 	sanitary certificate, certificate of origin and/or free sale, certificate of health and/or free 
49.9 	sale, sanitation, and purity, certificate of free trade, certificate of free sale, sanitation, purity, 
49.10 	and origin, certificate of health, sanitation, purity, and free sale, and letter of plant 
49.11 	certification.
49.12 	The commissioner shall bill a food establishment the requesting person within seven 
49.13 	days after issuing a certificate to the establishment person. The operator of the food 
49.14 	establishment requesting person must submit payment for a certificate within ten days of 
49.15 	the billing date. If a certificate fee payment is not received within 15 days of the billing 
49.16 	date, the commissioner may not issue any future certificates to the requesting person until 
49.17 	previous fees due are paid in full. Fees paid under this section must be deposited in the food 
49.18 	certificate account established under subdivision 2 or another account in the agricultural 
49.19 	fund if the expenses for the certificate will be paid from that other account.
49.20 		Subd. 2.Food certificate account; appropriation. A food certificate account is 
49.21 	established in the agricultural fund. Money in the account, including interest, is appropriated 
49.22 	to the commissioner for expenses relating to certifying Minnesota processed and 
49.23 	manufactured foods under chapters 28 to 34A or rules adopted under one of those chapters.

49.24 	Sec. 53. Minnesota Statutes 2016, section 28A.152, subdivision 2, is amended to read:
49.25 		Subd. 2.Direct sales to consumers. (a) An individual qualifying for an exemption under 
49.26 	subdivision 1 may sell the exempt food:
49.27 	(1) directly to the ultimate consumer at a community event or farmers' market;
49.28 	(2) at a community event or farmers' market; or
49.29 	(3) (2) directly from the individual's home to the ultimate consumer, to the extent allowed 
49.30 	by local ordinance.; or
49.31 	(3) through donation to a community event with the purpose of fund-raising for an 
49.32 	individual, or fund-raising for an educational, charitable, or religious organization.
50.1 	(b) If an exempt food product will be delivered to the ultimate consumer upon sale of 
50.2 	the food product, the individual who prepared the food product must be the person who 
50.3 	delivers the food product to the ultimate consumer.
50.4 	(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be 
50.5 	sold outside of Minnesota.
50.6 	(d) Food products exempt under subdivision 1 may be sold over the Internet but must 
50.7 	be delivered directly to the ultimate consumer by the individual who prepared the food 
50.8 	product. The statement "These products are homemade and not subject to state inspection." 
50.9 	must be displayed on the Web site that offers the exempt foods for purchase.

50.10 	Sec. 54. Minnesota Statutes 2016, section 28A.21, subdivision 6, is amended to read:
50.11 		Subd. 6.Expiration.  This section expires June 30, 2017 2027.

50.12 	Sec. 55. Minnesota Statutes 2016, section 31A.02, subdivision 4, is amended to read:
50.13 		Subd. 4.Animals. "Animals" means cattle, swine, sheep, goats, poultry, farmed Cervidae, 
50.14 	as defined in section 35.153, subdivision 3, llamas, as defined in section 17.455, subdivision 
50.15 	2, Ratitae, as defined in section 17.453, subdivision 3, horses, equines, and other large 
50.16 	domesticated animals.

50.17 	Sec. 56. Minnesota Statutes 2016, section 32C.02, subdivision 2, is amended to read:
50.18 		Subd. 2.Facility design; development and operation. The authority may enter into 
50.19 	management contracts, lease agreements, or both, with a Minnesota nonprofit corporation 
50.20 	to design, develop, and operate a facility to further the purposes of this chapter at the site 
50.21 	determined by the board and on the terms that the board finds desirable. The board must 
50.22 	identify and acquire a site that will accommodate, where practicable, the following facilities 
50.23 	and activities:
50.24 	(1) housing for bred and lactating animals;
50.25 	(2) milking parlor;
50.26 	(3) automatic milking systems;
50.27 	(4) cross-ventilated and natural-ventilated housing;
50.28 	(5) transition cow housing;
50.29 	(6) special needs and hospital housing;
50.30 	(7) classrooms and a conference room;
51.1 	(8) dairy processing facility with retail;
51.2 	(9) visitors' center;
51.3 	(10) student housing;
51.4 	(11) laboratory facilities;
51.5 	(12) space to accommodate installation of an anaerobic digester system to research 
51.6 	energy production from feedstock produced on site or from off-site sources; and
51.7 	(13) space for feed storage to allow for research capabilities at the facility.
51.8 	Notwithstanding the provisions of section 32C.01, subdivision 7, relating to conflict of 
51.9 	interest, a director or officer of the authority who is also a director, officer, or member of 
51.10 	a nonprofit corporation with which the authority enters into management contracts or lease 
51.11 	agreements may participate in and vote on the decision of the board as to the terms and 
51.12 	conditions of management contracts or lease agreements between the Minnesota nonprofit 
51.13 	corporation and the authority.

51.14 	Sec. 57. Minnesota Statutes 2016, section 32C.06, is amended to read:
51.15 	32C.06 EXPIRATION.
51.16 	If by August 1, 2017 2020, the authority board has not identified and acquired a site for 
51.17 	a facility, as provided in section 32C.02, subdivision 2, sections 32C.01 to 32C.05 and this 
51.18 	section are repealed on that date. The Department of Agriculture shall notify the revisor of 
51.19 	statutes if the repealer under this section becomes effective.

51.20 	Sec. 58. Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:
51.21 		Subd. 3.Oversight. The commissioner, in consultation with the chairs and ranking 
51.22 	minority members of the house of representatives and senate committees with jurisdiction 
51.23 	over agriculture finance, must allocate available appropriated funds among eligible uses as 
51.24 	provided by law, develop competitive eligibility criteria, and award funds on a needs basis. 
51.25 	By February 1 each year, the commissioner shall report to the legislature on the allocation 
51.26 	among eligible uses and any financial assistance provided  the outcomes achieved under 
51.27 	this section.

51.28 	Sec. 59. Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:
51.29 		Subd. 2.Eligibility. (a) A facility eligible for payment under this section must source 
51.30 	at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from 
52.1 	the state border, raw materials may be sourced from within a 100-mile radius. Raw materials 
52.2 	must be from forest resources. The facility must be located in Minnesota, must begin 
52.3 	production at a specific location by June 30, 2025, and must not begin operating before July 
52.4 	1, 2017 2019. Eligible facilities include existing companies and facilities that are adding 
52.5 	siding production capacity, or retrofitting existing capacity, as well as new companies and 
52.6 	facilities. Eligible siding production facilities must produce at least 200,000,000 siding 
52.7 	square feet on a 3/8 inch nominal basis of siding each year.
52.8 	(b) No payments shall be made for siding production that occurs after June 30, 2035, 
52.9 	for those eligible producers under paragraph (a).
52.10 	(c) An eligible producer of siding shall not transfer the producer's eligibility for payments 
52.11 	under this section to a facility at a different location.
52.12 	(d) A producer that ceases production for any reason is ineligible to receive payments 
52.13 	under this section until the producer resumes production.

52.14 	Sec. 60. Minnesota Statutes 2016, section 41B.03, subdivision 2, is amended to read:
52.15 		Subd. 2.Eligibility for restructured loan. In addition to the eligibility requirements 
52.16 	of subdivision 1, a prospective borrower for a restructured loan must:
52.17 	(1) have received at least 50 percent of average annual gross income from farming for 
52.18 	the past three years or, for homesteaded property, received at least 40 percent of average 
52.19 	gross income from farming in the past three years, and farming must be the principal 
52.20 	occupation of the borrower;
52.21 	(2) have projected annual expenses, including operating expenses, family living, and 
52.22 	interest expenses after the restructuring, that do not exceed 95 percent of the borrower's 
52.23 	projected annual income considering prior production history and projected prices for farm 
52.24 	production, except that the authority may reduce the 95 percent requirement if it finds that 
52.25 	other significant factors in the loan application support the making of the loan;
52.26 	(3) demonstrate substantial difficulty in meeting projected annual expenses without 
52.27 	restructuring the loan; and
52.28 	(4) have a total net worth, including assets and liabilities of the borrower's spouse and 
52.29 	dependents, of less than $660,000 in 2004 $1,700,000 in 2017 and an amount in subsequent 
52.30 	years which is adjusted for inflation by multiplying that amount by the cumulative inflation 
52.31 	rate as determined by the United States All-Items Consumer Price Index.

53.1 	Sec. 61. Minnesota Statutes 2016, section 41B.03, subdivision 3, is amended to read:
53.2 		Subd. 3.Eligibility for beginning farmer loans. (a) In addition to the requirements 
53.3 	under subdivision 1, a prospective borrower for a beginning farm loan in which the authority 
53.4 	holds an interest, must:
53.5 	(1) have sufficient education, training, or experience in the type of farming for which 
53.6 	the loan is desired;
53.7 	(2) have a total net worth, including assets and liabilities of the borrower's spouse and 
53.8 	dependents, of less than $350,000 in 2004 $800,000 in 2017 and an amount in subsequent 
53.9 	years which is adjusted for inflation by multiplying that amount by the cumulative inflation 
53.10 	rate as determined by the United States All-Items Consumer Price Index;
53.11 	(3) demonstrate a need for the loan;
53.12 	(4) demonstrate an ability to repay the loan;
53.13 	(5) certify that the agricultural land to be purchased will be used by the borrower for 
53.14 	agricultural purposes;
53.15 	(6) certify that farming will be the principal occupation of the borrower;
53.16 	(7) agree to participate in a farm management program approved by the commissioner 
53.17 	of agriculture for at least the first three years of the loan, if an approved program is available 
53.18 	within 45 miles from the borrower's residence. The commissioner may waive this requirement 
53.19 	for any of the programs administered by the authority if the participant requests a waiver 
53.20 	and has either a four-year degree in an agricultural program or certification as an adult farm 
53.21 	management instructor; and
53.22 	(8) agree to file an approved soil and water conservation plan with the Natural Resources 
53.23 	Conservation Service office in the county where the land is located.
53.24 	(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower is 
53.25 	subject to penalty as determined by the authority.

53.26 	Sec. 62. Minnesota Statutes 2016, section 41B.043, subdivision 5, is amended to read:
53.27 		Subd. 5.Total net worth limit. A prospective borrower for an agricultural improvement 
53.28 	loan in which the authority holds an interest must have a total net worth, including assets 
53.29 	and liabilities of the borrower's spouse and dependents, of less than $350,000 in 2004
53.30 	$800,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 
53.31 	multiplying that amount by the cumulative inflation rate as determined by the United States 
53.32 	All-Items Consumer Price Index.

54.1 	Sec. 63. Minnesota Statutes 2016, section 41B.045, subdivision 2, is amended to read:
54.2 		Subd. 2.Loan participation. The authority may participate in a livestock expansion 
54.3 	loan with an eligible lender to a livestock farmer who meets the requirements of section 
54.4 	41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in a livestock 
54.5 	operation. A prospective borrower must have a total net worth, including assets and liabilities 
54.6 	of the borrower's spouse and dependents, of less than $660,000 in 2004 $1,700,000 in 2017
54.7 	and an amount in subsequent years which is adjusted for inflation by multiplying that amount 
54.8 	by the cumulative inflation rate as determined by the United States All-Items Consumer 
54.9 	Price Index.
54.10 	Participation is limited to 45 percent of the principal amount of the loan or $525,000, 
54.11 	whichever is less. The interest rates and repayment terms of the authority's participation 
54.12 	interest may be different from the interest rates and repayment terms of the lender's retained 
54.13 	portion of the loan.

54.14 	Sec. 64. Minnesota Statutes 2016, section 41C.02, subdivision 12, is amended to read:
54.15 		Subd. 12.Low or moderate net worth. "Low or moderate net worth" means:
54.16 	(1) for an individual, an aggregate net worth of the individual and the individual's spouse 
54.17 	and minor children of less than $350,000 in 2004 $800,000 in 2017 and an amount in 
54.18 	subsequent years which is adjusted for inflation by multiplying that amount by the cumulative 
54.19 	inflation rate as determined by the United States All-Items Consumer Price Index; or
54.20 	(2) for a partnership, an aggregate net worth of all partners, including each partner's net 
54.21 	capital in the partnership, and each partner's spouse and minor children of less than twice 
54.22 	the amount set for an individual in clause (1). However, the aggregate net worth of each 
54.23 	partner and that partner's spouse and minor children may not exceed the amount set for an 
54.24 	individual in clause (1).

54.25 	Sec. 65. Minnesota Statutes 2016, section 116V.01, subdivision 1, is amended to read:
54.26 		Subdivision 1.Establishment. The Agricultural Utilization Research Institute is 
54.27 	established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue Code 
54.28 	of 1986, as amended. The Agricultural Utilization Research Institute shall conduct onsite 
54.29 	and applied research, promote the establishment of new products and product uses and the 
54.30 	expansion of existing markets for the state's agricultural commodities and products, including 
54.31 	direct financial and technical assistance for Minnesota entrepreneurs in Minnesota and 
54.32 	bordering states. The institute must establish or maintain facilities and work with private 
55.1 	and public entities to leverage the resources available to achieve maximum results for 
55.2 	Minnesota agriculture.

55.3 	Sec. 66. Minnesota Statutes 2016, section 116V.01, subdivision 2, is amended to read:
55.4 		Subd. 2.Board of directors. The board of directors of the Agricultural Utilization 
55.5 	Research Institute is comprised of:
55.6 	(1) the chairs of the senate and the house of representatives standing committees with 
55.7 	jurisdiction over agriculture finance or the chair's designee;
55.8 	(2) two representatives of statewide farm organizations;
55.9 	(3) two representatives of agribusiness; and
55.10 	(4) three representatives of the commodity promotion councils; and
55.11 	(5) two at-large representatives.

55.12 	Sec. 67. Minnesota Statutes 2016, section 116V.01, subdivision 3, is amended to read:
55.13 		Subd. 3.Duties. (a) The Agricultural Utilization Research Institute shall:
55.14 	(1) identify development opportunities for agricultural products;
55.15 	(2) implement a program that identifies techniques to meet those opportunities;
55.16 	(3) monitor and coordinate research among the public and private organizations and 
55.17 	individuals specifically addressing procedures to transfer new technology to businesses, 
55.18 	farmers, and individuals;
55.19 	(4) provide research grants to public and private educational institutions and other 
55.20 	organizations that are undertaking basic and applied research to promote the development 
55.21 	of emerging agricultural industries;
55.22 	(5) assist organizations and individuals with market analysis and product marketing 
55.23 	implementations;
55.24 	(6) (5) to the extent possible earn and receive revenue from contracts, patents, licenses, 
55.25 	royalties, grants, fees-for-service, and memberships;
55.26 	(7) (6) work with the Department of Agriculture, the United States Department of 
55.27 	Agriculture, the Department of Employment and Economic Development, and other agencies 
55.28 	to maximize marketing opportunities locally, nationally, and internationally; and
56.1 	(8) (7) leverage available funds from federal, state, and private sources to develop new 
56.2 	markets and value added opportunities for Minnesota agricultural products.
56.3 	(b) The Agricultural Utilization Research Institute board of directors shall have the sole 
56.4 	approval authority for establishing agricultural utilization research priorities, requests for 
56.5 	proposals to meet those priorities, awarding of grants, hiring and direction of personnel, 
56.6 	and other expenditures of funds consistent with the adopted and approved mission and goals 
56.7 	of the Agricultural Utilization Research Institute. The actions and expenditures of the 
56.8 	Agricultural Utilization Research Institute are subject to audit. The institute shall annually 
56.9 	report by February 1 to the senate and house of representatives standing committees with 
56.10 	jurisdiction over agricultural policy and funding. The report must list projects initiated, 
56.11 	progress on projects, and financial information relating to expenditures, income from other 
56.12 	sources, and other information to allow the committees to evaluate the effectiveness of the 
56.13 	institute's activities.
56.14 	(c) The Agricultural Utilization Research Institute shall convene a Renewable Energy 
56.15 	Roundtable, the purpose of which shall be to further the state's leadership on bioenergy 
56.16 	issues.
56.17 	(i) The Renewable Energy Roundtable shall consist of one representative appointed by 
56.18 	the commissioner of the Minnesota Department of Agriculture, one appointed by the 
56.19 	commissioner of the Minnesota Department of Commerce, one appointed by the chancellor 
56.20 	of the Minnesota State Colleges and Universities, and one appointed by the president of the 
56.21 	University of Minnesota. The appointees must have expertise relevant to bioenergy.
56.22 	(ii) The board shall oversee the activities and shall provide staff to assist the Renewable 
56.23 	Energy Roundtable.
56.24 	(iii) The Renewable Energy Roundtable will engage professionals and experts from 
56.25 	private, government, academic, and nonprofit entities across the state to identify bioenergy 
56.26 	opportunities and collaborate with a broad group of interested parties to identify future 
56.27 	alternative courses of action the state can take to sustain a long-term competitive position 
56.28 	in renewable energy through the year 2025. The Renewable Energy Roundtable will consult, 
56.29 	advise, and review projects and initiatives funded by the state as directed by the 
56.30 	administration and the legislature.

56.31 	Sec. 68. Minnesota Statutes 2016, section 116V.01, subdivision 4, is amended to read:
56.32 		Subd. 4.Staff. The board of directors shall hire staff an executive director for the 
56.33 	Agricultural Utilization Research Institute. Persons employed by the Agricultural Utilization 
57.1 	Research Institute are not state employees and may participate in state retirement, deferred 
57.2 	compensation, insurance, or other plans that apply to state employees generally and are 
57.3 	subject to regulation by the state Campaign Finance and Public Disclosure Board.

57.4 	Sec. 69. Minnesota Statutes 2016, section 116V.01, subdivision 7, is amended to read:
57.5 		Subd. 7.Bylaws. The board of directors shall adopt bylaws necessary for the conduct 
57.6 	of the business of the institute consistent with this section. The corporation must publish 
57.7 	bylaws and amendments to the bylaws in the State Register on the board's Web site.

57.8 	Sec. 70. Minnesota Statutes 2016, section 116V.01, subdivision 10, is amended to read:
57.9 		Subd. 10.Meetings. The board of directors shall meet at least twice each year and may 
57.10 	hold additional meetings upon giving notice in accordance with the bylaws of the institute. 
57.11 	Board meetings are subject to chapter 13D, except section 13D.01, subdivision 6, as it 
57.12 	pertains to financial information, business plans, income and expense projections, customer 
57.13 	lists, market and feasibility studies, and trade secret information as defined by section 13.37, 
57.14 	subdivision 1, paragraph (b). For the purposes of section 13D.015, the board of directors is 
57.15 	a state board.

57.16 	Sec. 71. Minnesota Statutes 2016, section 116V.01, subdivision 11, is amended to read:
57.17 		Subd. 11.Conflict of interest. A director, employee, or officer of the institute may not 
57.18 	participate in advocate for or vote on a decision of the board relating to an organization in 
57.19 	which the director, employee, or officer has either a direct or indirect financial interest.

57.20 	Sec. 72. Minnesota Statutes 2016, section 116V.01, subdivision 13, is amended to read:
57.21 		Subd. 13.Funds. The institute may accept and use gifts, grants, or contributions from 
57.22 	any source. Unless otherwise restricted by the terms of a gift or bequest, the board may sell, 
57.23 	exchange, or otherwise dispose of and invest or reinvest the money, securities, or other 
57.24 	property given or bequested to it. The principal of these funds, the income from them, and 
57.25 	all other revenues received by it from any nonstate source must be placed in the depositories 
57.26 	the board determines and is are subject to expenditure for the board's purposes. Receipts 
57.27 	and expenditures of more than $25,000 $50,000 must be approved by the full board.

57.28 	Sec. 73. Minnesota Statutes 2016, section 116V.01, subdivision 14, is amended to read:
57.29 		Subd. 14.Accounts; audits. The institute may establish funds and accounts that it finds 
57.30 	convenient. The board shall provide for and pay the cost of an independent annual audit of 
58.1 	its official books and records by the legislative auditor subject to sections 3.971 and 3.972. 
58.2 	In addition, the board shall provide and pay for the cost of an annual financial audit of its 
58.3 	official books and records by a CPA firm licensed under chapter 326A. A copy of this the 
58.4 	annual financial audit shall be filed with the secretary of state Office of the Attorney General, 
58.5 	Charities Division.
58.6 	For purposes of this section, "institute" means the Agricultural Utilization Research 
58.7 	Institute established under this section and "board of directors" means the board of directors 
58.8 	of the Agricultural Utilization Research Institute.

58.9 	Sec. 74. Minnesota Statutes 2016, section 223.17, subdivision 8, is amended to read:
58.10 		Subd. 8.Bond disbursement. (a) The bond required under subdivision 4 shall provide 
58.11 	for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand, 
58.12 	the purchase price of grain sold to the grain buyer in the manner provided by subdivision 
58.13 	5, including loss caused by failure to pay within the time required. The bond shall be 
58.14 	conditioned upon the grain buyer being duly licensed as provided herein.
58.15 	(b) The commissioner shall promptly determine the validity of all claims filed and notify 
58.16 	the claimants of the determination. An aggrieved party may appeal the commissioner's 
58.17 	determination by requesting, within 15 days, that the commissioner initiate a contested case 
58.18 	proceeding. In the absence of such a request, or following the issuance of a final order in a 
58.19 	contested case, the surety company shall issue payment promptly to those claimants entitled 
58.20 	to payment. The commissioner may apply to the district court for an order appointing a 
58.21 	trustee or receiver to manage and supervise the operations of the grain buyer in default. The 
58.22 	commissioner may participate in any resulting court proceeding as an interested party.
58.23 	(c) If a grain buyer has become liable to more than one producer by reason of breaches 
58.24 	of the conditions of the bond and the amount of the bond is insufficient to pay the entire 
58.25 	liability to all producers entitled to the protection of the bond, the proceeds of the bond shall 
58.26 	be apportioned among the bona fide claimants.
58.27 	(d) The bond shall not be cumulative from one licensing period to the next. The maximum 
58.28 	liability of the bond shall be its face value for the licensing period.
58.29 	(e) The bond disbursement shall occur 200 days from the date the commissioner publishes 
58.30 	a public notice of a claim. At the end of this time period, the commissioner shall initiate 
58.31 	bond payments on all valid claims received by the commissioner.

59.1 	Sec. 75. Minnesota Statutes 2016, section 232.22, subdivision 7, is amended to read:
59.2 		Subd. 7.Bond disbursement. (a) The bond of a public grain warehouse operator must 
59.3 	be conditioned that the public grain warehouse operator issuing a grain warehouse receipt 
59.4 	is liable to the depositor for the delivery of the kind, grade and net quantity of grain called 
59.5 	for by the receipt.
59.6 	(b) Upon notification of default, the commissioner shall determine the validity of all 
59.7 	claims and notify all parties having filed claims. Any aggrieved party may appeal the 
59.8 	commissioner's determination by requesting, within 15 days, that the commissioner initiate 
59.9 	a contested case proceeding. In the absence of such a request, or following the issuance of 
59.10 	a final order in a contested case, the surety company shall issue payment to those claimants 
59.11 	entitled to payment. If the commissioner determines it is necessary, the commissioner may 
59.12 	apply to the district court for an order appointing a trustee or receiver to manage and supervise 
59.13 	the operations of the grain warehouse operator in default. The commissioner may participate 
59.14 	in any resulting court proceeding as an interested party.
59.15 	(c) For the purpose of determining the amount of bond disbursement against all valid 
59.16 	claims under a condition one bond, all grain owned or stored in the public grain warehouse 
59.17 	shall be sold and the combined proceeds deposited in a special fund. Payment shall be made 
59.18 	from the special fund satisfying the valid claims of grain warehouse receipt holders.
59.19 	(d) If a public grain warehouse operator has become liable to more than one depositor 
59.20 	or producer by reason of breaches of the conditions of the bond and the amount of the bond 
59.21 	is insufficient to pay, beyond the proceeds of the special fund, the entire liability to all valid 
59.22 	claimants, the proceeds of the bond and special fund shall be apportioned among the valid 
59.23 	claimants on a pro rata basis.
59.24 	(e) A bond is not cumulative from one licensing period to the next. The maximum 
59.25 	liability of the bond shall be its face value for the licensing period.
59.26 	(f) The bond disbursement shall occur 200 days from the date the commissioner publishes 
59.27 	a public notice of a claim. At the end of this time period, the commissioner shall initiate 
59.28 	bond payments on all valid claims received by the department.

59.29 	Sec. 76. Minnesota Statutes 2016, section 336.9-601, is amended to read:
59.30 	336.9-601 RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT; 
59.31 	CONSIGNOR OR BUYER OF ACCOUNTS, CHATTEL PAPER, PAYMENT 
59.32 	INTANGIBLES, OR PROMISSORY NOTES.
60.1 	(a) Rights of secured party after default. After default, a secured party has the rights 
60.2 	provided in this part and, except as otherwise provided in section 336.9-602, those provided 
60.3 	by agreement of the parties. A secured party:
60.4 	(1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security 
60.5 	interest, or agricultural lien by any available judicial procedure; and
60.6 	(2) if the collateral is documents, may proceed either as to the documents or as to the 
60.7 	goods they cover.
60.8 	(b) Rights and duties of secured party in possession or control. A secured party in 
60.9 	possession of collateral or control of collateral under section 336.7-106, 336.9-104, 
60.10 	336.9-105, 336.9-106, or 336.9-107 has the rights and duties provided in section 336.9-207.
60.11 	(c) Rights cumulative; simultaneous exercise. The rights under subsections (a) and 
60.12 	(b) are cumulative and may be exercised simultaneously.
60.13 	(d) Rights of debtor and obligor. Except as otherwise provided in subsection (g) and 
60.14 	section 336.9-605, after default, a debtor and an obligor have the rights provided in this part 
60.15 	and by agreement of the parties.
60.16 	(e) Lien of levy after judgment. If a secured party has reduced its claim to judgment, 
60.17 	the lien of any levy that may be made upon the collateral by virtue of an execution based 
60.18 	upon the judgment relates back to the earliest of:
60.19 	(1) the date of perfection of the security interest or agricultural lien in the collateral;
60.20 	(2) the date of filing a financing statement covering the collateral; or
60.21 	(3) any date specified in a statute under which the agricultural lien was created.
60.22 	(f) Execution sale. A sale pursuant to an execution is a foreclosure of the security interest 
60.23 	or agricultural lien by judicial procedure within the meaning of this section. A secured party 
60.24 	may purchase at the sale and thereafter hold the collateral free of any other requirements 
60.25 	of this article.
60.26 	(g) Consignor or buyer of certain rights to payment. Except as otherwise provided 
60.27 	in section 336.9-607(c), this part imposes no duties upon a secured party that is a consignor 
60.28 	or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
60.29 	(h) Security interest in collateral that is agricultural property; enforcement. A 
60.30 	person may not begin to enforce a security interest in collateral that is agricultural property 
60.31 	subject to sections 583.20 to 583.32 that has secured a debt of more than $5,000 the amount 
60.32 	provided in section 583.24, subdivision 5, unless: a mediation notice under subsection (i) 
61.1 	is served on the debtor after a condition of default has occurred in the security agreement 
61.2 	and a copy served on the director of the agricultural extension service; and the debtor and 
61.3 	creditor have completed mediation under sections 583.20 to 583.32; or as otherwise allowed 
61.4 	under sections 583.20 to 583.32.
61.5 	(i) Mediation notice. A mediation notice under subsection (h) must contain the following 
61.6 	notice with the blanks properly filled in.
61.7 	"TO: ...(Name of Debtor)...
61.8 	YOU HAVE DEFAULTED ON THE ...(Debt in Default)... SECURED BY 
61.9 	AGRICULTURAL PROPERTY DESCRIBED AS ...(Reasonable Description of Agricultural 
61.10 	Property Collateral). THE AMOUNT OF THE OUTSTANDING DEBT IS ...(Amount of 
61.11 	Debt)...
61.12 	AS A SECURED PARTY, ...(Name of Secured Party)... INTENDS TO ENFORCE 
61.13 	THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL PROPERTY 
61.14 	DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR OBTAINING A 
61.15 	COURT JUDGMENT AGAINST THE PROPERTY.
61.16 	YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. 
61.17 	IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE 
61.18 	MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT 
61.19 	WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY 
61.20 	ENFORCES THE DEBT.
61.21 	IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
61.22 	AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
61.23 	MEETING AND A FINANCIAL ANALYST TO HELP YOU TO PREPARE FINANCIAL 
61.24 	INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION, IT WILL BE 
61.25 	TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND OPERATION 
61.26 	RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS SOON AS 
61.27 	POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT AN AGREEMENT FOR 
61.28 	HANDLING FUTURE FINANCIAL RELATIONS.
61.29 	TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A 
61.30 	MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU 
61.31 	RECEIVE THIS NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE AT 
61.32 	ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE.
61.33 	FROM: ...(Name and Address of Secured Party)..."

62.1 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
62.2 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

62.3 	Sec. 77. Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:
62.4 		Subdivision 1.Adjoining owners. If all or a part of adjoining Minnesota land is improved 
62.5 	and used,(a) Except as provided in paragraph (b), if two adjoining lands are both used in 
62.6 	whole or in part to produce or maintain livestock for agricultural or commercial purposes 
62.7 	and one or both of the owners of the land desires the land to be partly or totally fenced, the 
62.8 	land owners or occupants shall build and maintain a partition fence between their lands in 
62.9 	equal shares.
62.10 	(b) The requirement in this section and the procedures in this chapter apply to the 
62.11 	Department of Natural Resources when it owns land adjoining privately owned land subject 
62.12 	to this section and chapter and the landowner desires the land permanently fenced for the 
62.13 	purpose of restraining livestock.
62.14 	(c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine, poultry, 
62.15 	goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas, and 
62.16 	llamas.

62.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
62.18 	applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on or after that 
62.19 	date.

62.20 	Sec. 78. Minnesota Statutes 2016, section 550.365, subdivision 1, is amended to read:
62.21 		Subdivision 1.Requirement. A person may not attach, execute on, levy on, or seize 
62.22 	agricultural property subject to sections 583.20 to 583.32 that has secured a debt of more 
62.23 	than $5,000 the amount provided in section 583.24, subdivision 5, unless: (1) a mediation 
62.24 	notice is served on the judgment debtor and a copy served on the director and the debtor 
62.25 	and creditor have completed mediation under sections 583.20 to 583.32; or (2) as otherwise 
62.26 	allowed under sections 583.20 to 583.32.

62.27 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
62.28 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

62.29 	Sec. 79. Minnesota Statutes 2016, section 559.209, subdivision 1, is amended to read:
62.30 		Subdivision 1.Requirement. A person may not begin to terminate a contract for deed 
62.31 	under section 559.21 to purchase agricultural property subject to sections 583.20 to 583.32
63.1 	for a remaining balance on the contract of more than $5,000 the amount provided in section 
63.2 	583.24, subdivision 5, unless: (1) a mediation notice is served on the contract for deed 
63.3 	purchaser after a default has occurred under the contract and a copy served on the director 
63.4 	and the contract for deed vendor and purchaser have completed mediation under sections 
63.5 	583.20 to 583.32; or (2) as otherwise allowed under sections 583.20 to 583.32.

63.6 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
63.7 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

63.8 	Sec. 80. Minnesota Statutes 2016, section 582.039, subdivision 1, is amended to read:
63.9 		Subdivision 1.Requirement. A person may not begin a proceeding under this chapter 
63.10 	or chapter 580 to foreclose a mortgage on agricultural property subject to sections 583.20
63.11 	to 583.32 that has a secured debt of more than $5,000 the amount provided in section 583.24, 
63.12 	subdivision 5, unless: (1) a mediation notice is served on the mortgagor after a default has 
63.13 	occurred in the mortgage and a copy is served on the director and the mortgagor and 
63.14 	mortgagee have completed mediation under sections 583.20 to 583.32; or (2) as otherwise 
63.15 	allowed under sections 583.20 to 583.32.

63.16 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
63.17 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

63.18 	Sec. 81. Minnesota Statutes 2016, section 583.215, is amended to read:
63.19 	583.215 EXPIRATION.
63.20 	Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 to 
63.21 	583.32, expire June 30, 2018 2022.

63.22 	Sec. 82. Minnesota Statutes 2016, section 583.24, subdivision 4, is amended to read:
63.23 		Subd. 4.Debts. The Farmer-Lender Mediation Act does not apply to a debt:
63.24 	(1) for which a proof of claim form has been filed in bankruptcy by a creditor or that 
63.25 	was listed as a scheduled debt, of a debtor who has filed a petition in bankruptcy after July 
63.26 	1, 1987, under United States Code, title 11, chapter 7, 11, 12, or 13;
63.27 	(2) if the debt was in default when the creditor received a mediation proceeding notice 
63.28 	under the Farmer-Lender Mediation Act and the creditor filed a claim form, the debt was 
63.29 	mediated during the mediation period under section 583.26, subdivision 8, and (i) the 
63.30 	mediation was unresolved; or (ii) a mediation agreement with respect to that debt was signed;
64.1 	(3) for which the creditor has served a mediation notice, the debtor has failed to make 
64.2 	a timely request for mediation, and within 60 days after the debtor failed to make a timely 
64.3 	request the creditor began a proceeding to enforce the debt against the agricultural property 
64.4 	of the debtor;
64.5 	(4) for which a creditor has received a mediation proceeding notice and the creditor and 
64.6 	debtor have restructured the debt and have signed a separate mediation agreement with 
64.7 	respect to that debt; or
64.8 	(5) for which there is a lien for rental value of farm machinery under section 514.661.; 
64.9 	or
64.10 	(6) that is a new line of credit, loan, or other debt extended by a creditor to the debtor 
64.11 	as a result of a mediation conducted pursuant to the Farmer-Lender Mediation Act. However, 
64.12 	this new debt becomes subject to the Farmer-Lender Mediation Act two years after the 
64.13 	mediation from which the new debt originated ends, as evidenced by the date on the 
64.14 	termination statement issued by the mediator under section 583.26, subdivision 10.

64.15 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
64.16 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

64.17 	Sec. 83. Minnesota Statutes 2016, section 583.24, is amended by adding a subdivision to 
64.18 	read:
64.19 		Subd. 5.Minimum eligible debt amount. The minimum eligible debt amount is $15,000. 
64.20 	In 2022 and every five years thereafter, the commissioner of agriculture, in consultation 
64.21 	with the director, must report to the legislative committees with jurisdiction over agriculture 
64.22 	policy what the minimum eligible debt amount under this subdivision would be if adjusted 
64.23 	using the United States Department of Agriculture's Index of the Cost of Production.

64.24 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
64.25 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

64.26 	Sec. 84. Minnesota Statutes 2016, section 583.26, subdivision 2, is amended to read:
64.27 		Subd. 2.Mediation request. (a) A debtor must file a mediation request form with the 
64.28 	director by 14 days after receiving a mediation notice. The debtor must state all known 
64.29 	creditors with debts secured for agricultural property and must authorize the director to 
64.30 	obtain the debtor's credit report from one or more credit reporting agencies. The mediation 
64.31 	request form must include an instruction that the debtor must state all known creditors with 
64.32 	debts secured by agricultural property and unsecured creditors that are necessary for the 
65.1 	farm operation of the debtor. It is the debtor's discretion as to which unsecured creditors 
65.2 	are necessary for the farm operation but the mediation request form must notify the debtor 
65.3 	that omission of a significant unsecured creditor could result in a bad-faith determination 
65.4 	pursuant to section 583.27, subdivisions 1, paragraph (a), clause (2), and 2. The mediation 
65.5 	request must state the date that the notice was served on the debtor. The director shall make 
65.6 	mediation request forms available in the county recorder's and county extension office of 
65.7 	each county.
65.8 	(b) Except as provided in section 583.24, subdivision 4, paragraph (a), clause (3), a 
65.9 	debtor who fails to file a timely mediation request waives the right to mediation for that 
65.10 	debt under the Farmer-Lender Mediation Act. The director shall notify the creditor who 
65.11 	served the mediation notice stating that the creditor may proceed against the agricultural 
65.12 	property because the debtor has failed to file a mediation request.
65.13 	(c) If a debtor has not received a mediation notice and is subject to a proceeding of a 
65.14 	creditor enforcing a debt against agricultural property under chapter 580 or 581 or sections 
65.15 	336.9-601 to 336.9-628, terminating a contract for deed to purchase agricultural property 
65.16 	under section 559.21, or garnishing, levying on, executing on, seizing, or attaching 
65.17 	agricultural property, the debtor may file a mediation request with the director. The mediation 
65.18 	request form must indicate that the debtor has not received a mediation notice.

65.19 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
65.20 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

65.21 	Sec. 85. Minnesota Statutes 2016, section 583.26, subdivision 3, is amended to read:
65.22 		Subd. 3.Financial analyst and farm advocate. (a) Within three business days after 
65.23 	receiving a mediation request, the director shall provide a financial analyst to meet with the 
65.24 	debtor and assure that all information relative to the finances of the debtor is prepared for
65.25 	prior to the initial mediation meeting. The financial analyst must review and, if necessary, 
65.26 	prepare the debtor's financial records before the initial mediation meeting.
65.27 	(b) After receiving the mediation notice, the director shall provide the debtor with a list 
65.28 	of farm advocates that may be available without charge to assist the debtor and the financial 
65.29 	analyst.

65.30 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
65.31 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

66.1 	Sec. 86. Minnesota Statutes 2016, section 583.26, subdivision 3a, is amended to read:
66.2 		Subd. 3a.Orientation session. The director shall schedule an orientation session to be 
66.3 	held at least five days before the first mediation meeting. The debtor, the financial analyst, 
66.4 	and a mediator shall participate in the orientation session. The mediator at the session need 
66.5 	not be the one assigned to the mediation proceeding under subdivision 4. Creditors 
66.6 	participating in the mediation may participate in the orientation session. At the orientation 
66.7 	session, the financial analyst shall review the debtor's financial and inventory records to 
66.8 	determine if they are adequate for the mediation and inform the debtor of any inadequacies, 
66.9 	and the mediator shall inform the debtor of the requirements of the mediation process
66.10 	including but not limited to the requirement to participate in good faith by addressing, prior 
66.11 	to the initial mediation meeting, any inadequacies identified by the financial analyst.

66.12 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
66.13 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

66.14 	Sec. 87. Minnesota Statutes 2016, section 583.26, subdivision 4, is amended to read:
66.15 		Subd. 4.Mediation proceeding notice. (a) By ten days after receiving a mediation 
66.16 	request, the director shall send: (1) a mediation proceeding notice to the debtor; (2) a 
66.17 	mediation proceeding notice to all creditors listed by the debtor in the mediation request
66.18 	and any additional secured creditors identified by the director from the credit report obtained 
66.19 	with the debtor's permission under subdivision 2; and (3) a claim form to all secured creditors 
66.20 	stated by the debtor or identified by the director.
66.21 	(b) The mediation proceeding notice must state:
66.22 	(1) the name and address of the debtor;
66.23 	(2) that the debtor has requested mediation under the Farmer-Lender Mediation Act;
66.24 	(3) the time and place for the orientation session;
66.25 	(4) the time and place for the initial mediation meeting;
66.26 	(5) a list of the names of three mediators that may be assigned to the proceeding, along 
66.27 	with background information on those mediators including biographical information, a 
66.28 	summary of previous mediation experience, and the number of agreements signed by parties 
66.29 	to previous mediation;
66.30 	(6) that the debtor and the initiating creditor may each request the director to exclude 
66.31 	one mediator by notifying the director within three days after receiving the notice;
67.1 	(7) that in lieu of having a mediator assigned by the director, the debtor and any one or 
67.2 	more of the creditors may agree to select and pay for a professional mediator that is approved 
67.3 	by the director;
67.4 	(8) that the Farmer-Lender Mediation Act prohibits the creditor from beginning or 
67.5 	continuing a proceeding to enforce the debt against agricultural property for 90 days after 
67.6 	the debtor files a mediation request with the director unless otherwise allowed; and
67.7 	(9) that the creditor must provide the debtor by the initial mediation meeting with copies 
67.8 	of notes and contracts for debts subject to the Farmer-Lender Mediation Act and provide a 
67.9 	statement of interest rates on the debts, delinquent payments, unpaid principal and interest 
67.10 	balances, the creditor's value of the collateral, and debt restructuring programs available by 
67.11 	the creditor.
67.12 	(c) An initial mediation meeting must be held within 20 days of the notice.
67.13 	(d) The initiating creditor and the debtor may each request the director to exclude one 
67.14 	mediator from the list by sending the director a notice to exclude the mediator within three 
67.15 	days after receiving the mediation proceeding notice.
67.16 	(e) In lieu of the director assigning a mediator, the debtor and any one or more of the 
67.17 	creditors may agree to select and pay for a professional mediator for the mediation 
67.18 	proceeding. The director must approve the professional mediator before the professional 
67.19 	mediator may be assigned to the mediation proceeding. The professional mediator may not 
67.20 	be approved unless the professional mediator prepares and signs an affidavit:
67.21 	(1) disclosing any biases, relationships, or previous associations with the debtor or 
67.22 	creditors subject to the mediation proceedings;
67.23 	(2) stating certifications, training, or qualifications as a professional mediator;
67.24 	(3) disclosing fees to be charged or a rate schedule of fees for the mediation proceeding; 
67.25 	and
67.26 	(4) affirming to uphold the Farmer-Lender Mediation Act and faithfully discharge the 
67.27 	duties of a mediator.
67.28 	(f) After receiving a mediation proceeding notice, a secured creditor must return a claim 
67.29 	form if the debt is not subject to the Farmer-Lender Mediation Act and specify why the debt 
67.30 	is not subject to sections 583.20 to 583.32.

67.31 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
67.32 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

68.1 	Sec. 88. Minnesota Statutes 2016, section 583.26, subdivision 10, is amended to read:
68.2 		Subd. 10.End of mediation. (a) The mediator shall sign and serve to the parties and 
68.3 	the director a termination statement by the end of the time period specified in subdivision 
68.4 	5.
68.5 	(b) The mediator shall prepare a termination statement that:
68.6 	(1) acknowledges that mediation has ended and specifies the date on which the mediation 
68.7 	ended; and
68.8 	(2) describes or references agreements, if any, reached between a creditor and the debtor, 
68.9 	if any,including any new line of credit, loan, or other debt issued by a creditor to the debtor 
68.10 	as a result of the mediation; and agreements, if any, reached among creditors, if any.
68.11 	(c) Mediation agreements may be included as part of the termination statement.

68.12 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
68.13 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

68.14 	Sec. 89. Minnesota Statutes 2016, section 583.27, subdivision 1, is amended to read:
68.15 		Subdivision 1.Obligation of good faith. (a) The parties must engage in mediation in 
68.16 	good faith. Prior to the initial mediation meeting, the director must notify all parties in 
68.17 	writing of their obligation to participate in good faith, the consequences of failing to 
68.18 	participate in good faith, and that not participating in good faith includes: (1) a failure on a 
68.19 	regular or continuing basis to attend and participate in mediation sessions without cause; 
68.20 	(2) failure to provide full information no later than the initial mediation meeting regarding 
68.21 	the financial obligations of the parties and other creditors including the obligation of a 
68.22 	creditor to provide information under section 583.26, subdivision 5, paragraph (d); (3) 
68.23 	failure of the creditor to designate a representative to participate in the mediation with 
68.24 	authority to make binding commitments within one business day to fully settle, compromise, 
68.25 	or otherwise mediate the matter; (4) lack of a written statement of debt restructuring 
68.26 	alternatives and a statement of reasons why alternatives are unacceptable to one of the 
68.27 	parties; (5) failure of a creditor to release funds from the sale of farm products to the debtor 
68.28 	for necessary living and farm operating expenses; or (6) other similar behavior which 
68.29 	evidences lack of good faith by the party. A failure to agree to reduce, restructure, refinance, 
68.30 	or forgive debt does not, in itself, evidence lack of good faith by the creditor.
68.31 	(b) The amount that the creditor is required to release for necessary living expenses 
68.32 	under this section is limited to $1,600 $3,600 per month less the debtor's off-farm income.
68.33 	In 2022 and every five years thereafter, the commissioner of agriculture, in consultation 
69.1 	with the director, must report to the legislative committees with jurisdiction over agriculture 
69.2 	policy what the monetary limit under this paragraph would be if adjusted using the United 
69.3 	States All-Items Consumer Price Index.
69.4 	(c) If the debtor and creditor do not agree on the amount of necessary living expenses 
69.5 	to be released, the debtor or creditor may petition conciliation court in the county of the 
69.6 	debtor's residence to make a determination of the amount to be released. The conciliation 
69.7 	court must make the determination within ten days after receiving the petition.
69.8 	(d) If the debtor and creditors do not agree on the amount of necessary operating expenses 
69.9 	or necessary living and operating expenses to be released, the debtor or a creditor requested 
69.10 	to release necessary living or operating expenses may petition the district court of the debtor's 
69.11 	residence to make a determination of the amount to be released. The court shall hear and 
69.12 	make a determination of the amount of living and operating expenses to be released within 
69.13 	ten days after receiving the petition. The court shall also add or subtract up to ten days to 
69.14 	the time when the creditor can begin to enforce a proceeding to collect the debt against 
69.15 	agricultural property of the debtor and assess costs, including any attorney fees, among the 
69.16 	parties to the court proceeding. The court shall equitably adjust the time to begin a creditor's 
69.17 	proceeding and the assessment of costs based on the parties' good faith claim to the amount 
69.18 	of living and operating expenses to be released.

69.19 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to debt 
69.20 	subject to the Farmer-Lender Mediation Act that is initiated on or after that date.

69.21 	Sec. 90. WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.
 69.22 	(a) The commissioner of agriculture may award grants to livestock producers to prevent 
69.23 	wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to apply for 
69.24 	reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner 
69.25 	may establish a cap on the amount a recipient may receive annually.
69.26 	(b) To be eligible for the grant under this section, a livestock producer must raise livestock 
69.27 	within Minnesota's wolf range or on property determined by the commissioner to be affected 
69.28 	by wolf-livestock conflicts.
69.29 	(c) Eligible wolf-livestock conflict prevention activities include, but are not limited to:
69.30 	(1) the purchase of guard animals;
69.31 	(2) veterinary costs for guard animals;
69.32 	(3) the installation of wolf barriers; wolf barriers may include pens, fladry, and fencing;
70.1 	(4) the installation of wolf-deterring lights and alarms; and
70.2 	(5) calving or lambing shelters.
70.3 	(d) Eligible grant recipients must:
70.4 	(1) make a good-faith effort to avoid wolf-livestock conflicts;
70.5 	(2) make a good-faith effort to care for guard animals paid for under this section;
70.6 	(3) retain proper documentation of expenses;
70.7 	(4) report annually to the commissioner on the effectiveness of the nonlethal methods 
70.8 	employed; and
70.9 	(5) allow follow-up evaluation and monitoring by the commissioner.
70.10 	(e) Grant recipients shall continue to be eligible for depredation payments under 
70.11 	Minnesota Statutes, section 3.737.

70.12 	Sec. 91. BASE BUDGET REPORT REQUIRED.
 70.13 	No later than October 15, 2018, the commissioner of agriculture must submit a report 
70.14 	detailing the agency's base budget, including any prior appropriation riders, to the chairs 
70.15 	and ranking minority members of the legislative committees with jurisdiction over agriculture 
70.16 	finance.

70.17 	Sec. 92. REVISOR'S INSTRUCTION.
 70.18 	The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision 
70.19 	9a, to Minnesota Statutes, section 18B.01, subdivision 9d, and correct any cross-references 
70.20 	related to the renumbering.

70.21 	Sec. 93. REPEALER.
 70.22 	Minnesota Statutes 2016, sections 18B.01, subdivisions 10a, 10b, and 22a; 18B.285; 
70.23 	25.371, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15; 41A.20, subdivision 6; 
70.24 	41D.01, subdivision 4; 383C.809; and 583.22, subdivision 7b, are repealed.

70.25 	ARTICLE 3
70.26 	DAIRY LAW REORGANIZATION

70.27 	Section 1. Minnesota Statutes 2016, section 13.6435, subdivision 8, is amended to read:
71.1 		Subd. 8.Dairy products. Financial and production information obtained by the 
71.2 	commissioner of agriculture to administer chapter 32 32D are classified under section 32.71, 
71.3 	subdivision 2 32D.25, subdivision 2.

71.4 	Sec. 2. Minnesota Statutes 2016, section 17.983, subdivision 1, is amended to read:
71.5 		Subdivision 1.Administrative penalties; citation. If a person has violated a provision 
71.6 	of chapter 25, 31B, or 32 32D, the commissioner may issue a written citation to the person 
71.7 	by personal service or by certified mail. The citation must describe the nature of the violation 
71.8 	and the statute or rule alleged to have been violated; state the time for correction, if 
71.9 	applicable; and the amount of any proposed fine. The citation must advise the person to 
71.10 	notify the commissioner in writing within 30 days if the person wishes to appeal the citation. 
71.11 	If the person fails to appeal the citation, the citation is the final order and not subject to 
71.12 	further review.

71.13 	Sec. 3. Minnesota Statutes 2016, section 17.984, subdivision 1, is amended to read:
71.14 		Subdivision 1.Authority. To carry out the commissioner's enforcement duties under 
71.15 	chapter 32 32D, the commissioner may, upon presenting appropriate credentials, during 
71.16 	regular working hours and at other reasonable times, inspect premises subject to the 
71.17 	commissioner's enforcement and licensing authority for reasons related to the commissioner's 
71.18 	enforcement and licensing authority; request information from persons with information 
71.19 	relevant to an inspection; and inspect relevant papers and records, including business records. 
71.20 	The commissioner may issue notices in lieu of citations for minor violations if a notice is 
71.21 	in the public interest.

71.22 	Sec. 4. Minnesota Statutes 2016, section 28A.05, is amended to read:
71.23 	28A.05 CLASSIFICATION.
71.24 	All persons required to have a license under section 28A.04 shall be classified into one 
71.25 	of the following classes of food handlers, according to their principal mode of business.
71.26 	(a) Retail food handlers are persons who sell or process and sell food directly to the 
71.27 	ultimate consumer or who custom process meat or poultry. The term includes a person who 
71.28 	sells food directly to the ultimate consumer through the use of vending machines, and a 
71.29 	person who sells food for consumption on site or off site if the sale is conducted on the 
71.30 	premises that are part of a grocery or convenience store operation.
71.31 	(b) Wholesale food handlers are persons who sell to others for resale. A person who 
71.32 	handles food in job lots (jobbers) is included in this classification.
72.1 	(c) Wholesale food processors or manufacturers are persons who process or manufacture 
72.2 	raw materials and other food ingredients into food items, or who reprocess food items, or 
72.3 	who package food for sale to others for resale, or who commercially slaughter animals or 
72.4 	poultry. Included herein are persons who can, extract, ferment, distill, pickle, bake, freeze, 
72.5 	dry, smoke, grind, mix, stuff, pack, bottle, recondition, or otherwise treat or preserve food 
72.6 	for sale to others for resale, cold storage warehouse operators as defined in section 28.01, 
72.7 	subdivision 3, salvage food processors as defined in section 31.495, subdivision 1, and dairy 
72.8 	plants as defined in section 32.01 32D.01, subdivision 6.
72.9 	(d) A food broker is a person who buys and sells food and who negotiates between a 
72.10 	buyer and a seller of food, but who at no time has custody of the food being bought and 
72.11 	sold.

72.12 	Sec. 5. Minnesota Statutes 2016, section 28A.085, subdivision 1, is amended to read:
72.13 		Subdivision 1.Violations; prohibited acts. The commissioner may charge a reinspection 
72.14 	fee for each reinspection of a food handler that:
72.15 	(1) is found with a major violation of requirements in chapter 28, 29, 30, 31, 31A, 32
72.16 	32D, 33, or 34, or rules adopted under one of those chapters; or
72.17 	(2) fails to correct equipment and facility deficiencies as required in rules adopted under 
72.18 	chapter 28, 29, 30, 31, 31A, 32 32D, or 34.
72.19 	The first reinspection of a firm with gross food sales under $1,000,000 must be assessed 
72.20 	at $150. The fee for a firm with gross food sales over $1,000,000 is $200. The fee for a 
72.21 	subsequent reinspection of a firm for the same violation is 50 percent of their current license 
72.22 	fee or $300, whichever is greater. The establishment must be issued written notice of 
72.23 	violations with a reasonable date for compliance listed on the notice. An initial inspection 
72.24 	relating to a complaint is not a reinspection.

72.25 	Sec. 6. [32D.01] DEFINITIONS.
72.26 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
72.27 		Subd. 2.Adulterated. "Adulterated" means an item is covered by section 34A.02.
72.28 		Subd. 3.Cheese. "Cheese" includes all varieties of cheese, cheese spreads, cheese foods, 
72.29 	cheese compounds, or processed cheese made or manufactured in whole or in part from 
72.30 	milk.
72.31 		Subd. 4.Commissioner. "Commissioner" means the commissioner of agriculture.
73.1 		Subd. 5.Dairy farm. "Dairy farm" means a place or premises where one or more lactating 
73.2 	animals, including cows, goats, sheep, water buffalo, camels, or other hoofed mammals, 
73.3 	are kept, and from which all or a portion of the milk produced at the place or premises is 
73.4 	delivered, sold, or offered for sale.
73.5 		Subd. 6.Dairy plant. "Dairy plant" means any place where a dairy product is 
73.6 	manufactured, processed, or handled and includes milk-receiving stations, creameries, 
73.7 	cheese factories, condenseries, milk plants, transfer stations, and marketing organizations 
73.8 	that purchase milk and cream directly from producers for resale and other establishments, 
73.9 	as those terms are used in this chapter and chapters 17, 27, and 31; but does not include any 
73.10 	place where dairy products are not processed but sold at whole or retail only.
73.11 		Subd. 7.Dairy product. "Dairy product" means milk as defined by Code of Federal 
73.12 	Regulations, title 21, cream, any product or by-product of either, or any commodity among 
73.13 	the principal constituents or ingredients of which is one or a combination of two or more 
73.14 	of them, as determined by standards, grades, or rules adopted by the commissioner.
73.15 		Subd. 8.Fluid milk products. "Fluid milk products" means yogurt, cream, sour cream, 
73.16 	half and half, reconstituted half and half, concentrated milk, concentrated milk products, 
73.17 	skim milk, nonfat milk, chocolate flavored milk, chocolate flavored dairy drink, chocolate 
73.18 	flavored reconstituted milk, chocolate flavored reconstituted dairy drink, buttermilk, cultured 
73.19 	buttermilk, cultured milk, vitamin D milk, reconstituted or recombined milk, reconstituted 
73.20 	cream, reconstituted skim milk, homogenized milk, and any other fluid milk product made 
73.21 	by the addition of any substance to milk or to any of the fluid milk products enumerated 
73.22 	under this subdivision or by rule adopted by the commissioner.
73.23 		Subd. 9.Goat milk. "Goat milk" means a whole, fresh, clean lacteal secretion free from 
73.24 	colostrum, obtained by the complete milking of one or more healthy goats.
73.25 		Subd. 10.Milk. "Milk" means the normal lacteal secretion, practically free of colostrum, 
73.26 	obtained by the milking of one or more healthy hoofed mammals. Hoofed mammals include 
73.27 	but are not limited to cattle, water buffalo, sheep, goats, yaks, and camels.
73.28 		Subd. 11.Milk for manufacturing purposes. "Milk for manufacturing purposes" means 
73.29 	milk produced for processing and manufacturing into products for human consumption but 
73.30 	not subject to Grade A or comparable requirements.
73.31 		Subd. 12.Milk-receiving station. "Milk-receiving station" means a dairy plant where 
73.32 	raw milk for pasteurization or for manufacture is received, handled, or prepared for 
73.33 	processing or for resale as unpasteurized milk or fluid milk products.
74.1 		Subd. 13.Minnesota farmstead cheese. "Minnesota farmstead cheese" means cheese 
74.2 	manufactured in Minnesota on the same farm that the milk used in its manufacturing is 
74.3 	produced.
74.4 		Subd. 14.Misbranded or misbranding. "Misbranded" or "misbranding" means an item 
74.5 	is covered by section 34A.03.
74.6 		Subd. 15.Pasteurization or pasteurized. (a) "Pasteurization," "pasteurized," and similar 
74.7 	terms mean:
74.8 	(1) the process of heating every particle of milk or dairy product in properly operated 
74.9 	equipment approved by the commissioner to a temperature of at least 145 degrees Fahrenheit 
74.10 	and holding the temperature for at least 30 minutes;
74.11 	(2) the process of heating every particle of milk or dairy product in properly operated 
74.12 	equipment approved by the commissioner to a temperature of at least 161 degrees Fahrenheit 
74.13 	and holding the temperature for at least 15 seconds; or
74.14 	(3) the process of heating every particle of milk or dairy product in properly operated 
74.15 	equipment approved by the commissioner to the temperatures and holding for the times as 
74.16 	the commissioner may prescribe by rule, containing standards more stringent than those 
74.17 	imposed by this subdivision.
74.18 	(b) Nothing in this subdivision shall be construed as excluding any other process that 
74.19 	has been demonstrated to be equally efficient and is approved by the commissioner.
74.20 		Subd. 16.Recombinant bovine growth hormone or rBGH. "Recombinant bovine 
74.21 	growth hormone" or "rBGH" means a growth hormone intended for use in bovine animals 
74.22 	that has been produced through recombinant DNA techniques, described alternately as 
74.23 	recombinant bovine somatotropin or rBST.

74.24 	Sec. 7. [32D.02] INSPECTION AUTHORITY AND DUTIES.
74.25 		Subdivision 1.Enforcement. The commissioner is charged with the enforcement of this 
74.26 	chapter.
74.27 		Subd. 2.Power and authority. For the purpose of enforcing this chapter, the 
74.28 	commissioner and the commissioner's assistants, agents, and employees have the power 
74.29 	and authority granted under sections 31.02 to 31.171.
74.30 		Subd. 3.Inspection of dairies. At times the commissioner determines proper, the 
74.31 	commissioner shall inspect all places where dairy products are made, stored, or served as 
75.1 	food for purchase, and all places where hoofed mammals are kept by persons engaged in 
75.2 	the sale of milk, and shall require the correction of all unsanitary conditions and practices.
75.3 		Subd. 4.Refusal of inspection. A refusal or physical threat that prevents the completion 
75.4 	of an inspection or neglect to obey a lawful direction of the commissioner or the 
75.5 	commissioner's agent given while carrying out this section may result in the suspension of 
75.6 	the offender's permit or certification or other enforcement as deemed appropriate by the 
75.7 	commissioner. The offender is required to meet with a representative of the offender's plant 
75.8 	or marketing organization and a representative of the commissioner within 48 hours of 
75.9 	receiving notice, excluding holidays or weekends, or the suspension or enforcement action 
75.10 	shall take effect. A producer may request a hearing before the commissioner or the 
75.11 	commissioner's agent if a serious concern exists relative to the retention of the offender's 
75.12 	permit or certification to sell milk.
75.13 		Subd. 5.Inspection service. To ensure compliance with the laws and rules governing 
75.14 	the production, handling, processing, and sale of milk and dairy products, the commissioner 
75.15 	is authorized, through a duly trained and qualified milk inspector, to inspect milk and milk 
75.16 	products and the premises and plants where milk and milk products are produced, handled, 
75.17 	and processed. Inspection services must acquaint the processor and producers with the 
75.18 	requirements for a Grade A or manufacturing grade milk supply for preliminary inspection 
75.19 	to determine if a processor has brought the processor's farms and plants to the state of 
75.20 	compliance that qualifies the processor's products for the Grade A or manufacturing grade 
75.21 	label, and for continuous inspection to ensure that a farm or plant and all products from a 
75.22 	farm or plant are in compliance with this chapter.
75.23 		Subd. 6.Field service. Grade A or manufacturing grade processors shall provide a 
75.24 	continuous field service to assist producers who sell their milk to the processor's plant to 
75.25 	attain and maintain compliance with this chapter. A person who performs field service must 
75.26 	first obtain a permit from the commissioner. A person desiring to secure a permit must apply 
75.27 	on a form provided by the commissioner, and before a permit is issued the commissioner 
75.28 	shall determine that the applicant is competent and qualified to perform field service. The 
75.29 	permit is not transferable to another person and may be revoked for due cause after the 
75.30 	holder of the permit has been given the opportunity for a hearing. The permit holder must 
75.31 	be given a notice in writing of the time and place of the hearing at least seven days before 
75.32 	the date of the hearing.
75.33 		Subd. 7.Enforcement standards. The standards in this chapter and rules adopted under 
75.34 	this chapter by the commissioner shall be the only standards for use in Minnesota. No 
75.35 	municipality or other subdivision of state government shall provide, by ordinance, more 
76.1 	stringent or comprehensive standards than are contained in this chapter and rules adopted 
76.2 	by the commissioner under this chapter.
76.3 		Subd. 8.Rules. (a) The commissioner shall by rule adopt identity, production, and 
76.4 	processing standards for both Grade A and manufacturing grade milk and dairy products.
76.5 	(b) In the exercise of the authority to establish requirements for Grade A milk and milk 
76.6 	products, the commissioner adopts definitions, standards of identity, and requirements for 
76.7 	production and processing contained in the most current version of the Grade A Pasteurized 
76.8 	Milk Ordinance, and its associated documents, of the United States Department of Health 
76.9 	and Human Services in a manner provided for and not in conflict with law.
76.10 	(c) Producers of milk, other than Grade A, shall conform to the standards contained in 
76.11 	subparts B, C, D, E, and F of the United States Department of Agriculture Agricultural 
76.12 	Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and 
76.13 	its Production and Processing, except that the commissioner shall develop methods by which 
76.14 	producers are able to comply with the standards without violation of religious beliefs.
76.15 		Subd. 9.Certified industry inspection. Industry personnel may be certified to perform 
76.16 	any inspection, to the extent allowed by federal law and provided that performance of the 
76.17 	inspections is consistent with rules adopted in subdivision 8.
76.18 		Subd. 10.Fees; dairy services account; appropriation. (a) All fees and penalties 
76.19 	collected under this chapter must be deposited in the dairy services account in the agricultural 
76.20 	fund. Money in the account, including interest, is appropriated to the commissioner for 
76.21 	purposes of administering this chapter.
76.22 	(b) Unless otherwise noted, all fees are payable by a processor or marketing organization 
76.23 	and are invoiced on July 1 of each year for Grade A and January 1 of each year for 
76.24 	manufacturing grade, and if not paid within 30 days of the due date, inspection service may 
76.25 	be discontinued. If a farm discontinues the production of milk within six months of the 
76.26 	billing date, a request for a refund based on inspection services not received may be made 
76.27 	by the processor or by the marketing organization on behalf of its patrons. This request must 
76.28 	be made in writing by June 30 for manufacturing grade or by December 31 for Grade A. 
76.29 	Upon approval by the commissioner, refunds must be made to the processor or marketing 
76.30 	organization.

77.1 	Sec. 8. [32D.03] BULK MILK HAULER AND SAMPLER LICENSE.
77.2 		Subdivision 1.License requirement. A person collecting milk from a dairy farm and 
77.3 	transporting the milk by bulk pickup and not in individual containers from farm to plant 
77.4 	must obtain a bulk milk hauler and sampler license.
77.5 		Subd. 2.Application. A person desiring to secure a bulk milk hauler and sampler license 
77.6 	must apply on a form provided by the commissioner. Before the license is issued, the 
77.7 	commissioner shall determine that the applicant is competent and qualified.
77.8 		Subd. 3.Term of license; transferability. An initial bulk milk hauler and sampler 
77.9 	license issued by the commissioner expires on the following December 31 and is not 
77.10 	transferable. A renewal bulk milk hauler and sampler license is not transferable, is valid for 
77.11 	two years, and expires on December 31 of the second year.
77.12 		Subd. 4.Fees and penalties. The fee for an initial or renewal bulk milk hauler and 
77.13 	sampler license is $60. The fee shall be paid to the commissioner before the commissioner 
77.14 	issues an initial or renewal bulk milk hauler and sampler license. If a bulk milk hauler and 
77.15 	sampler license renewal is not applied for on or before January 1, a fee of $30 shall be 
77.16 	imposed. A person who does not renew a bulk milk hauler and sampler license within one 
77.17 	year following its December 31 expiration date, except those persons who do not renew the 
77.18 	bulk milk hauler and sampler license while engaged in active military service, shall be 
77.19 	required to prove competency and qualification under subdivision 2 before a bulk milk 
77.20 	hauler and sampler license is issued. The commissioner may require any other person who 
77.21 	renews a bulk milk hauler and sampler license to prove competency and qualification in 
77.22 	the same manner.
77.23 		Subd. 5.Suspension or cancellation. The commissioner is empowered to conduct 
77.24 	enforcement action, suspend, or cancel any bulk milk hauler and sampler license pursuant 
77.25 	to section 34A.06.

77.26 	Sec. 9. [32D.04] MILK TANK TRUCKS.
77.27 	All farm bulk milk pickup tankers, milk transports, and tankers used to transport milk 
77.28 	products must be inspected and obtain a permit issued by the commissioner at least once 
77.29 	every 12 months. The owner or operator must pay a $25 permit fee per tanker to the 
77.30 	commissioner. The commissioner may appoint a person the commissioner deems qualified 
77.31 	to make inspections.

78.1 	Sec. 10. [32D.05] GRADE A DAIRY FARM PERMITTING; WATER WELL 
78.2 	DISTANCE REQUIREMENT.
78.3 	(a) No milk producer may sell or distribute milk from a dairy farm as Grade A milk 
78.4 	without a valid Grade A dairy farm permit issued by the commissioner.
78.5 	(b) A dairy farmer who wishes to be permitted to produce Grade A milk may not be 
78.6 	denied the Grade A permit solely because of provisions in rules adopted by the commissioner 
78.7 	requiring a minimum distance between a water well and dairy farm. To be eligible for a 
78.8 	Grade A permit, the following conditions must be met:
78.9 	(1) the water well must have been in place prior to January 1, 1974;
78.10 	(2) the water well must comply with all other rules applicable to the well, other than the 
78.11 	distance requirement; and
78.12 	(3) water from the well must be tested at least once every 12 months. More frequent 
78.13 	testing may be required in compliance with guidelines established by the commissioner if 
78.14 	water test results fail to meet water quality requirements.

78.15 	Sec. 11. [32D.06] GRADE A DAIRY FARM INSPECTION; FEES.
78.16 	(a) As provided in section 32D.02, the commissioner shall provide inspection service 
78.17 	to any milk producer who wishes to market Grade A milk and is in compliance with the 
78.18 	requirement for the production of Grade A milk. Grade A inspections shall be completed 
78.19 	at least once every six months.
78.20 	(b) The fee for inspections must be no more than $50 per farm, paid annually by the 
78.21 	processor or by the marketing organization on behalf of its patrons.
78.22 	(c) For a farm requiring a reinspection in addition to the required biannual inspections, 
78.23 	an additional fee must be paid by the processor or by the marketing organization on behalf 
78.24 	of its patrons. The fee for reinspection of a farm with fewer than 100 hoofed milk-producing 
78.25 	animals is $60 per reinspection. The fee for reinspection of a farm with 100 or more hoofed 
78.26 	milk-producing animals is $150 per reinspection.

78.27 	Sec. 12. [32D.07] MANUFACTURING GRADE DAIRY FARM CERTIFICATION.
78.28 	A producer who wishes to sell milk for manufacturing purposes must obtain from the 
78.29 	commissioner an annual Grade B farm certification.

79.1 	Sec. 13. [32D.08] MANUFACTURING GRADE DAIRY FARM INSPECTION; 
79.2 	FEES.
79.3 	(a) A producer selling milk for manufacturing purposes must be inspected at least once 
79.4 	every 12 months.
79.5 	(b) The fee for the certification inspection must not be more than $25 per producer, to 
79.6 	be paid annually by the processor or the marketing organization on behalf of its patrons.
79.7 	(c) For a producer requiring more than one inspection for certification, a reinspection 
79.8 	fee of $45 must be paid by the processor or by the marketing organization on behalf of its 
79.9 	patrons.

79.10 	Sec. 14. [32D.09] DAIRY PLANT LICENSING AND PERMITTING.
79.11 		Subdivision 1.Licensing. A dairy plant must obtain a license as required under section 
79.12 	28A.04.
79.13 		Subd. 2.Permitting. No person shall operate a dairy plant in this state unless the dairy 
79.14 	plant, equipment, and water supply and plumbing system have been first approved by the 
79.15 	commissioner and a permit issued to operate the same. A permit may be revoked by the 
79.16 	commissioner for due cause pursuant to section 34A.06.
79.17 		Subd. 3.Approval. At the time of filing the application for a permit, the applicant shall 
79.18 	submit to the commissioner duplicate floor plans of the plant that show the placement of 
79.19 	equipment, the source of water supply and method of distribution, a detailed pasteurization 
79.20 	flow chart, and the location of the plumbing system, including the disposal of wastes. New 
79.21 	construction or alteration of an existing dairy plant shall be made only with the approval of 
79.22 	the commissioner and duplicate plans for the construction or alteration shall be submitted 
79.23 	to the commissioner for approval. The fee for approval services is $45 per hour of department 
79.24 	staff time spent in the approval process.
79.25 		Subd. 4.Farmstead cheese. (a) The commissioner or the commissioner's designee shall 
79.26 	issue an additional permit to a dairy plant that desires to use the name "Minnesota farmstead 
79.27 	cheese" upon application made by the dairy plant for use of the name, provided the cheese 
79.28 	meets the definition in section 32D.01, subdivision 13.
79.29 	(b) No cheese or packaged cheese that is sold, offered or exposed for sale, or held in 
79.30 	possession with intent to sell at either retail or wholesale in this state may be labeled or 
79.31 	described as "Minnesota farmstead cheese" unless it meets the criteria in section 32D.01, 
79.32 	subdivision 13, and the manufacturer has obtained the designated permit.

80.1 	Sec. 15. [32D.10] INSPECTIONS.
80.2 	(a) Inspections of Grade A plants must be completed at least once every three months. 
80.3 	A pasteurization plant requesting Grade A inspection must pay an annual inspection fee of 
80.4 	no more than $500.
80.5 	(b) Inspections of manufacturing plants that process milk or milk products other than 
80.6 	Grade A must be completed at least once every six months. A manufacturing plant that 
80.7 	pasteurizes milk or milk by-products must pay an annual fee based on the number of 
80.8 	pasteurization units. The fee must not exceed $140 per unit.

80.9 	Sec. 16. [32D.11] PROCUREMENT FEE.
80.10 	A dairy plant operator in this state must pay to the commissioner on or before the 18th 
80.11 	of each month a fee of 1.1 cents per hundredweight of milk purchased the previous month. 
80.12 	If a milk producer in this state ships milk out of the state for sale, the producer must pay 
80.13 	the fee to the commissioner unless the purchaser voluntarily pays the fee. Producers who 
80.14 	ship milk out of state and processors must submit to the commissioner monthly reports 
80.15 	related to milk purchases along with the appropriate procurement fee. The commissioner 
80.16 	shall have access to all relevant purchase or sale records as necessary to verify compliance 
80.17 	with this section and may require the producer or purchaser to produce records as necessary 
80.18 	to determine compliance.

80.19 	Sec. 17. [32D.12] SELECTED PRODUCTS FEE.
80.20 	(a) A manufacturer must pay to the commissioner a fee for fluid milk processed and 
80.21 	milk used in the manufacture of fluid milk products sold for retail sale in Minnesota in an 
80.22 	amount not less than five cents and not more than nine cents per hundredweight as set by 
80.23 	the commissioner's order. No change within any 12-month period may be in excess of one 
80.24 	cent per hundredweight.
80.25 	(b) A processor must report quantities of milk processed under paragraph (a) on forms 
80.26 	provided by the commissioner. Processor fees must be paid monthly. The commissioner 
80.27 	may require the production of records as necessary to determine compliance with this 
80.28 	paragraph.
80.29 	(c) The commissioner may create within the department a dairy consulting program to 
80.30 	provide assistance to dairy producers who are experiencing problems meeting the sanitation 
80.31 	and quality requirements of the dairy laws and rules. The commissioner may use money 
81.1 	appropriated from the dairy services account to pay for the program authorized in this 
81.2 	paragraph.

81.3 	Sec. 18. [32D.13] MILK QUALITY STANDARDS.
81.4 		Subdivision 1.Visible adulteration or odors. Milk shall not be visibly adulterated, or 
81.5 	have any objectionable odor, or be abnormal in appearance or consistency.
81.6 		Subd. 2.Grade A raw milk. (a) The bacterial count of Grade A raw milk from producers 
81.7 	must not exceed 100,000 bacteria per milliliter prior to commingling with other producer 
81.8 	milk.
81.9 	(b) After commingling with other producer milk, the bacteria count must not exceed 
81.10 	300,000 per milliliter prior to pasteurization.
81.11 		Subd. 3.Grade A pasteurized milk and fluid milk products. (a) The bacterial count 
81.12 	of Grade A pasteurized milk and fluid milk products, at any time after pasteurization until 
81.13 	delivery, must not exceed 20,000 bacteria per milliliter.
81.14 	(b) The coliform count of Grade A pasteurized milk and fluid milk products must not 
81.15 	exceed ten bacteria per milliliter except that bulk tank transport shipments must not exceed 
81.16 	100 per milliliter.
81.17 		Subd. 4.Raw milk, other than Grade A. The bacterial count of raw milk other than 
81.18 	Grade A from producers must not exceed 500,000 bacteria per milliliter prior to commingling 
81.19 	with other producer milk.
81.20 		Subd. 5.Pasteurized milk, other than Grade A. The bacterial count of pasteurized 
81.21 	milk other than Grade A pasteurized milk, at any time after pasteurization until delivery, 
81.22 	must not exceed 20,000 bacteria per milliliter.
81.23 		Subd. 6.Exceptions. Bacterial count standards do not apply to sour cream, cultured 
81.24 	buttermilk, and other cultured fluid milk products.
81.25 		Subd. 7.Rules and standards. The commissioner may prescribe standards and rules 
81.26 	adopted in accordance with law more stringent than those imposed by this section.
81.27 		Subd. 8.Somatic cell count. (a) The somatic cell count, as determined by a direct 
81.28 	microscopic somatic cell count or an electronic somatic cell count, must not exceed 750,000 
81.29 	cells per milliliter for Grade A raw milk and raw milk other than Grade A. Notwithstanding 
81.30 	any federal standard, the somatic cell count of goat milk must not exceed 1,500,000 cells 
81.31 	per milliliter.
82.1 	(b) The commissioner may prescribe standards and rules adopted in accordance with 
82.2 	law more stringent than those imposed by this subdivision.
82.3 		Subd. 9.Temperature. If milk is received or collected from a dairy farm more than two 
82.4 	hours after the most recent milking, the temperature of the milk shall not exceed 45 degrees 
82.5 	Fahrenheit (7 degrees Celsius). If the milk consists of a blend of milk from two or more 
82.6 	milkings, and the milk is received or collected less than two hours after the most recent 
82.7 	milking, the blend temperature shall not exceed 50 degrees Fahrenheit (10 degrees Celsius).
82.8 		Subd. 10.Industry enforcement. A dairy plant is not required to reject milk shipments 
82.9 	in response to a violation of subdivisions 2 to 9 unless the commissioner suspends or revokes 
82.10 	the dairy plant permit or milk producer's Grade A permit or manufacturing grade certification.

82.11 	Sec. 19. [32D.14] OFFICIAL PRODUCER SAMPLES.
82.12 	(a) An official producer sample for each producer must be analyzed for bacteria, somatic 
82.13 	cell count, temperature, and antibiotic residues at least once per month in four out of every 
82.14 	six months. Official producer samples must be collected and analyzed without providing 
82.15 	the producer with prior notification of the sampling date.
82.16 	(b) Official producer sample results must be inclusive of all animals from which milk 
82.17 	is collected and sold on the day of sampling.
82.18 	(c) Official producer sample results must be collected by a licensed sampler.

82.19 	Sec. 20. [32D.15] MONTHLY REPORTING.
82.20 	(a) In at least four out of every six months, the dairy plant that procures milk from the 
82.21 	producer must report to the commissioner at least one representative test result for bacteria, 
82.22 	somatic cell count, temperature, and antibiotic residues. The result shall be reported within 
82.23 	seven days after the laboratory obtains the test results.
82.24 	(b) A laboratory that performs the tests required under this section for a dairy plant may 
82.25 	report the test results for the dairy plant.
82.26 	(c) A dairy plant or laboratory shall report test results under this section in an electronic 
82.27 	form approved by the department or using an approved alternative.

82.28 	Sec. 21. [32D.16] ENFORCEMENT.
82.29 	The commissioner shall suspend a producer's permit or certification if three of the last 
82.30 	five official producer samples exceed the applicable standard. The commissioner shall 
83.1 	provide warning of a pending suspension when two of the last four producer samples exceed 
83.2 	the applicable standard.

83.3 	Sec. 22. [32D.17] LABORATORY CERTIFICATION.
83.4 	(a) A laboratory and its methods are required to be approved or certified prior to testing 
83.5 	Grade A milk samples. The results of approved or certified laboratories may be used by 
83.6 	official regulatory agencies in enforcement of requirements for milk and milk products. The 
83.7 	approval or certification remains valid unless suspended or revoked by the commissioner 
83.8 	for failure to comply with the requirements of this chapter.
83.9 	(b) Certified or approved laboratories must receive a permit from the commissioner. 
83.10 	The permit remains valid without renewal unless suspended or revoked by the commissioner 
83.11 	for failure to comply with the requirements of this chapter.
83.12 	(c) Satisfactory analytical procedures and results for split samples, the nature, number, 
83.13 	and frequency of which shall be in accordance with rules established by the commissioner, 
83.14 	shall be required of a certified laboratory for retention of its certification and permit.
83.15 	(d) An application for initial certification or biennial recertification, or for recertification 
83.16 	following suspension or revocation of a permit, shall be accompanied by an annual fee 
83.17 	based on the number of analyses approved and the number of specific tests for which they 
83.18 	are approved. The fee must not be less than $150 nor more than $200 for each analysis 
83.19 	approved and not less than $35 nor more than $50 for each test approved. The commissioner 
83.20 	may annually adjust assessments within the limits established by this subdivision to meet 
83.21 	the cost recovery of the services required by this section.

83.22 	Sec. 23. [32D.18] MILK BOUGHT BY WEIGHT; TESTING METHODS.
83.23 		Subdivision 1.Milk fat, protein, and solids not fat bases of payment; tests. (a) Milk 
83.24 	must be purchased from producers using a formula based on one or more of the following:
83.25 	(1) payment of a standard rate with uniform differentials for milk testing above or below 
83.26 	3.5 percent milk fat;
83.27 	(2) payment of a standard rate for the pounds of milk fat contained in the milk;
83.28 	(3) payment of a standard rate for the pounds of protein contained in the milk;
83.29 	(4) payment of a standard rate for the pounds of nonfat solids contained in the milk; or
83.30 	(5) payment of standard rates based on other attributes of value in the milk.
84.1 	(b) In addition, an adjustment may be made on the basis of milk quality and other 
84.2 	premiums. Testing procedures for determining the percentages of milk fat, protein, and 
84.3 	nonfat solids must comply with the methods approved by the Association of Analytical 
84.4 	Chemists or be as adopted by rule.
84.5 		Subd. 2.Apparatus to conform to specifications. Glassware, test bottles, pipettes, acid 
84.6 	measures, chemicals, scales, and other apparatus used in the operation of these tests shall 
84.7 	conform to the specifications for the particular test method.
84.8 		Subd. 3.Penalties for violations. A person who:
84.9 	(1) employs any test other than those tests authorized by rule adopted by the 
84.10 	commissioner, or any methods other than the standard official methods for determining the 
84.11 	milk fat content of milk or cream;
84.12 	(2) incorrectly samples milk or cream purchased or sold;
84.13 	(3) incorrectly weighs milk or cream purchased or sold;
84.14 	(4) incorrectly grades milk or cream purchased or sold;
84.15 	(5) makes a false entry of the weight, test result, or grade of any milk or cream purchased 
84.16 	or sold;
84.17 	(6) incorrectly samples, weighs, tests, or records or reports weights or tests of skim milk 
84.18 	or buttermilk purchased or sold;
84.19 	(7) underreads the tests;
84.20 	(8) falsifies the reading of the tests;
84.21 	(9) manipulates the reading of the tests; or
84.22 	(10) falsely states, certifies, or uses in the purchase or sale of milk or cream a misreading 
84.23 	of such tests, whether the tests or actual reading have been made by the person or by any 
84.24 	other person,
84.25 	is guilty of a misdemeanor.

84.26 	Sec. 24. [32D.19] ADULTERATED DAIRY PRODUCTS.
84.27 		Subdivision 1.Purchase and sale prohibition. A person may not sell or knowingly 
84.28 	buy adulterated dairy products.
84.29 		Subd. 2.Manufacture of food for human consumption from adulterated milk or 
84.30 	cream prohibited. An article of food for human consumption may not be manufactured 
85.1 	from adulterated milk or cream, except as provided in the Federal Food, Drug, and Cosmetic 
85.2 	Act, United States Code, title 21, section 301 et seq., and related federal regulations.
85.3 		Subd. 3.Adulterated milk. For purposes of this section, milk is adulterated if it:
85.4 	(1) is drawn in a filthy or unsanitary place;
85.5 	(2) is drawn from unhealthy or diseased animals;
85.6 	(3) contains water in excess of that normally found in milk;
85.7 	(4) contains a substance that is not a normal constituent of the milk except as allowed 
85.8 	in this chapter; or
85.9 	(5) contains drug residues or other chemical or biological substances in amounts above 
85.10 	the tolerances or safe levels established by rule.
85.11 		Subd. 4.Drug residues. (a) Before processing milk, all bulk milk pickup tankers must 
85.12 	be tested for the presence of beta lactam drug residues and for other residues as determined 
85.13 	necessary by the commissioner. Milk received from a producer in other than a bulk milk 
85.14 	pickup tanker is also subject to this section.
85.15 	(b) Bulk milk tankers that confirm positive for beta lactam drug residues or other residues 
85.16 	must follow up with producer sample testing of all producers contained on the positive load.
85.17 	(c) Individual producer samples must be tested for the presence of beta lactam drug 
85.18 	residues at least once a month for four out of every six-month period. Results of these tests 
85.19 	must be reported to the commissioner as official producer sample results using established 
85.20 	electronic reporting procedures.
85.21 	(d) Drug residue testing methods must be those approved by the Food and Drug 
85.22 	Administration (FDA) and the National Conference of Interstate Milk Shipments or listed 
85.23 	in the FDA's current version of M-a-85.
85.24 	(e) All drug residue samples testing positive must be reported to the commissioner or 
85.25 	the commissioner's designee within 24 hours. The report must include how and where the 
85.26 	milk was disposed of, and the volume, the responsible producer, and the possible cause of 
85.27 	the violative residue. All milk sample residue results must be recorded and retained for six 
85.28 	months by the receiving plant for examination by the commissioner or the commissioner's 
85.29 	designee.
85.30 		Subd. 5.Penalties. (a) The permit or certification of a milk producer identified as having 
85.31 	a positive drug residue is immediately suspended. The producer must not ship milk while 
85.32 	the permit or certification is suspended.
86.1 	(b) The producer's permit or certification may be reinstated after being sampled by the 
86.2 	commissioner or the commissioner's designee and testing negative on the sample.
86.3 	(c) A milk producer may not change plants within 30 days, without permission of the 
86.4 	commissioner, after receiving notification from the commissioner of a residue violation.
86.5 	(d) The producer that is identified with the drug residue violation is responsible for the 
86.6 	value of all milk on any load that tests positive for drug residues and any costs associated 
86.7 	with its disposal. Payment shall be made to the purchaser of the milk.
86.8 	(e) For the first and second violation within a 12-month period, the dairy producer must, 
86.9 	within 30 days of the date of the residue:
86.10 	(1) meet with the dairy inspector to review potential causes of the adulteration; and
86.11 	(2) complete the designated drug residue prevention educational program with a licensed 
86.12 	veterinarian and submit the signed certificate to the commissioner.
86.13 	(f) Failure to comply with the requirements for the first and second violation listed in 
86.14 	paragraph (e) may result in suspension of the producer's permit or certification until the 
86.15 	conditions in paragraph (e) are met.
86.16 	(g) For the third or subsequent violation within a 12-month period, the commissioner 
86.17 	may initiate proceedings for further enforcement action, that may include a penalty of up 
86.18 	to a 30-day permit or certification suspension. In lieu of a suspension, the producer may be 
86.19 	assessed an administrative penalty of up to $1,000 or the value of milk sold during the 
86.20 	intended suspension period.
86.21 		Subd. 6.Other forms of adulteration. A milk producer who violates subdivision 3 is 
86.22 	subject to any of the following penalties:
86.23 	(1) the permit or certification of a milk producer identified as having adulterated milk 
86.24 	is immediately suspended. The producer may not ship milk while the permit or certification 
86.25 	is suspended;
86.26 	(2) the producer that is identified with the adulterated milk violation is responsible for 
86.27 	the value of all milk on any load that is contaminated by the adulterant and any costs 
86.28 	associated with its disposal. Payment shall be made to the purchaser of the milk;
86.29 	(3) the producer's permit or certification may be reinstated after the commissioner receives 
86.30 	adequate verification that the milk is no longer adulterated; and
86.31 	(4) the commissioner may, after evaluation of the severity and repetitive nature of the 
86.32 	adulteration, initiate additional enforcement action in the form of permit or certification 
87.1 	suspension for up to 30 days or in lieu of suspension, an administrative penalty of up to 
87.2 	$1,000, or the value of the milk sold during the intended suspension period for each violation.
87.3 		Subd. 7.Civil penalty. A person other than a milk producer who causes milk to be 
87.4 	adulterated is subject to a civil penalty of up to $1,000.
87.5 		Subd. 8.Appeals. A dairy producer may appeal an adulteration violation by sending 
87.6 	written notice to the commissioner within ten days of receipt of the notice of a violation. 
87.7 	The appeal must contain a description of why the producer wishes to appeal the violation.

87.8 	Sec. 25. [32D.20] LIMITATION ON SALE.
87.9 		Subdivision 1.Pasteurization. No milk or fluid milk products shall be sold, offered or 
87.10 	exposed for sale, or held in possession for sale for the purpose of human consumption in 
87.11 	fluid form in this state unless the milk or fluid milk product has been pasteurized, as defined 
87.12 	in section 32D.01, subdivision 15, and cooled,  provided that this section shall not apply to 
87.13 	milk, cream, or skim milk occasionally secured or purchased for personal use by a consumer 
87.14 	at the place or farm where the milk is produced.
87.15 		Subd. 2.Labels. (a) Pasteurized milk or fluid milk products offered or exposed for sale 
87.16 	or held in possession for sale shall be labeled or otherwise designated as pasteurized milk 
87.17 	or pasteurized fluid milk products, and in the case of fluid milk products the label shall also 
87.18 	state the name of the specific product.
87.19 	(b) Milk and dairy products must be labeled with the plant number where the product 
87.20 	was produced, or if produced in a state where official plant numbers are not assigned, the 
87.21 	name of the manufacturer and the address of the plant where it was manufactured.

87.22 	Sec. 26. [32D.21] COOLING AFTER PASTEURIZATION.
87.23 	Immediately following pasteurization, all milk and fluid milk products shall be cooled 
87.24 	in properly operated equipment approved by the commissioner to a temperature of 45 degrees 
87.25 	Fahrenheit or lower, and maintained at 45 degrees Fahrenheit or lower until delivered; 
87.26 	provided, however, that if the milk or fluid milk product is to be cultured immediately after 
87.27 	pasteurization, then cooling may be delayed until after the culturing process is completed; 
87.28 	provided further that the commissioner may prescribe by rule standards more stringent than 
87.29 	those imposed by this section.

88.1 	Sec. 27. [32D.22] MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS.
88.2 	No person, firm, or corporation shall manufacture, transport, sell, offer, or expose for 
88.3 	sale or have in possession with intent to sell at retail to a consumer any cheese that has not 
88.4 	been (1) manufactured from milk or milk products that have been pasteurized; (2) subjected 
88.5 	to a heat treatment equivalent to pasteurization during the process of manufacturing or 
88.6 	processing; or (3) subjected to an aging process where it has been kept for at least 60 days 
88.7 	after manufacture at a temperature no lower than 35 degrees Fahrenheit.

88.8 	Sec. 28. [32D.23] RECOMBINANT BOVINE GROWTH HORMONE LABELING.
88.9 		Subdivision 1.Labeling. Products offered for wholesale or retail sale in this state that 
88.10 	contain milk, cream, or any product or by-product of milk or cream that have been processed 
88.11 	and handled pursuant to this section may be labeled with an rBGH statement that is not 
88.12 	false or misleading and in accordance with the federal labeling standards. Products offered 
88.13 	for wholesale or retail sale in this state need not contain any further label information relative 
88.14 	to the use of rBGH in milk production.
88.15 		Subd. 2.Affidavit; records. (a) A dairy plant purchasing milk or cream to be used in 
88.16 	products labeled with rBGH claims pursuant to subdivision 1 must provide an affidavit 
88.17 	from each producer that states that all cows used in the producer's dairy operations have 
88.18 	not and will not be treated with rBGH, without advanced written notice of at least 30 days.
88.19 	(b) The affidavit must be signed by the producer or authorized representative. Affidavits 
88.20 	must be kept on file for not less than two years after receiving written notice that rBGH use 
88.21 	status will change.
88.22 	(c) If a plant chooses to process and handle only milk or milk products sourced from 
88.23 	cows who have not been treated with rBGH, the plant, as an alternative to providing 
88.24 	individual producer affidavits, may provide one affidavit to certify that the plant has 
88.25 	procedures in place to verify that all producers are not using rBGH. A copy of the written 
88.26 	procedure that describes this verification process must also be provided with the plant 
88.27 	affidavit.
88.28 	(d) All affidavits and corresponding records must be available for inspection by the 
88.29 	commissioner.
88.30 	(e) Dairy plants supplying milk or cream to a processor or manufacturer of a product to 
88.31 	be labeled pursuant to subdivision 1, for use in that product, shall supply a certification to 
88.32 	that processor or manufacturer stating that producers of the supplied milk or cream have 
88.33 	executed and delivered affidavits pursuant to this subdivision.
89.1 		Subd. 3.Separation of nontreated cows and milk. Milk or cream from 
89.2 	non-rBGH-treated cows used in manufacturing or processing of products labeled pursuant 
89.3 	to subdivision 1 must be kept fully separate from any other milk or cream through all stages 
89.4 	of storage, transportation, and processing until the milk or resulting dairy products are in 
89.5 	final packaged form in a properly labeled container. Records of the separation must be kept 
89.6 	by the dairy plant and product processor or manufacturer at all stages and made available 
89.7 	to the commissioner for inspection.

89.8 	Sec. 29. [32D.24] DAIRY TRADE PRACTICES; DEFINITIONS.
89.9 		Subdivision 1.Application. The definitions in this section apply to sections 32D.24 to 
89.10 	32D.28.
89.11 		Subd. 2.Basic cost. (a) "Basic cost," for a processor, means the actual cost of the raw 
89.12 	milk plus 75 percent of the actual processing and handling costs for a selected class I or 
89.13 	class II dairy product.
89.14 	(b) Basic cost, for a wholesaler, means the actual cost of the selected class I or class II 
89.15 	dairy product purchased from the processor or another wholesaler.
89.16 	(c) Basic cost, for a retailer, means the actual cost of the selected class I or class II dairy 
89.17 	product purchased from a processor or wholesaler.
89.18 		Subd. 3.Bona fide charity. "Bona fide charity" means a corporation, trust, fund, or 
89.19 	foundation organized and operated exclusively for religious, charitable, scientific, literary, 
89.20 	or educational purposes.
89.21 		Subd. 4.Processor. "Processor" means a person engaged in manufacturing or processing 
89.22 	selected class I or class II dairy products in the person's own plant for sale in Minnesota.
89.23 		Subd. 5.Producer. "Producer" means a person who operates a dairy herd or herds in 
89.24 	Minnesota producing milk or cream commercially and whose milk or cream is sold to, or 
89.25 	received or handled by, a distributor or processor. Producer does not include an incorporated 
89.26 	or unincorporated association of producers.
89.27 		Subd. 6.Responsible person. "Responsible person" means the business entity that 
89.28 	makes payment to an individual Grade A or Grade B milk producer.
89.29 		Subd. 7.Selected class I dairy products. "Selected class I dairy products" means milk 
89.30 	for human consumption in fluid form and all other class I dairy products as defined by the 
89.31 	Upper Midwest Milk Marketing Order, Code of Federal Regulations, title 7, part 1030.40, 
89.32 	or successor orders.
90.1 		Subd. 8.Selected class II dairy products. "Selected class II dairy products" means 
90.2 	milk for human consumption processed into fluid cream, eggnog, yogurt, and all other class 
90.3 	II dairy products as defined by the Upper Midwest Milk Marketing Order, Code of Federal 
90.4 	Regulations, title 7, part 1030.40, or successor orders.
90.5 		Subd. 9.Sell at retail; sale at retail; retail sales. "Sell at retail," "sale at retail," or 
90.6 	"retail sales" means a retail sale or offer for retail sale of a selected class I or class II dairy 
90.7 	product for ultimate consumption or use.
90.8 		Subd. 10.Sell at wholesale; sale at wholesale; wholesale sales. "Sell at wholesale," 
90.9 	"sale at wholesale," or "wholesale sales" means sale or offer for sale of a selected class I 
90.10 	dairy product for purposes of resale or further processing or manufacturing but does not 
90.11 	include a producer selling or delivering milk to a processor.
90.12 		Subd. 11.Wholesaler. "Wholesaler" means a person including a distributor in the 
90.13 	business of making sales of selected class I or class II dairy products at wholesale in 
90.14 	Minnesota. In the case of a person making sales at both retail and wholesale, wholesaler 
90.15 	applies only to the sales at wholesale.

90.16 	Sec. 30. [32D.25] DUTIES AND POWERS OF COMMISSIONER; DATA PRIVACY.
90.17 		Subdivision 1.Duties; rules. The commissioner shall adopt rules to implement and 
90.18 	administer sections 32D.24 to 32D.28.
90.19 		Subd. 2.Data privacy. Financial and production information received by the 
90.20 	commissioner on processors, wholesalers, or retailers, including but not limited to financial 
90.21 	statements, fee reports, price schedules, cost documentation, books, papers, records, or other 
90.22 	documentation for the purpose of administration and enforcement of this chapter is classified 
90.23 	private data or nonpublic data pursuant to chapter 13. The classification shall not limit the 
90.24 	use of the information in the preparation, institution, or conduct of a legal proceeding by 
90.25 	the commissioner in enforcing this chapter.

90.26 	Sec. 31. [32D.26] SALES BELOW COST PROHIBITED; EXCEPTIONS.
90.27 		Subdivision 1.Policy; processors; wholesalers; retailers. (a) It is the intent of the 
90.28 	legislature to accomplish partial deregulation of milk marketing with a minimum negative 
90.29 	impact on small-volume retailers.
90.30 	(b) A processor or wholesaler may not sell or offer for sale selected class I or class II 
90.31 	dairy products at a price lower than the processor's or wholesaler's basic cost.
91.1 	(c) A retailer may not sell or offer for sale selected class I or class II dairy products at 
91.2 	a retail price lower than (1) 105 percent of the retailer's basic cost until June 30, 1994; and 
91.3 	(2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may not use 
91.4 	any method or device in the sale or offer for sale of a selected dairy product that results in 
91.5 	a violation of this section.
91.6 		Subd. 2.Exceptions. The minimum processor, wholesaler, and retailer prices of 
91.7 	subdivision 1 do not apply:
91.8 	(1) to a sale complying with section 325D.06;
91.9 	(2) to a retailer giving away selected class I and class II dairy products for free if the 
91.10 	customer is not required to make a purchase; or
91.11 	(3) to a processor, wholesaler, or retailer giving away selected class I and class II dairy 
91.12 	products for free or at a reduced cost to a bona fide charity.

91.13 	Sec. 32. [32D.27] REDRESS FOR INJURY OR THREATENED INJURY.
91.14 	A person injured by a violation of sections 32D.24 to 32D.28 may commence a legal 
91.15 	action based on the violation in a court of competent jurisdiction and may recover economic 
91.16 	damages and the costs of the action, including reasonable attorney fees. A person injured 
91.17 	or who is threatened with injury or loss by reason of violation of sections 32D.24 to 32D.28 
91.18 	may commence a legal action based on the violation and obtain injunctive relief in a court 
91.19 	of competent jurisdiction against persons involved in a violation or threatened violation of 
91.20 	sections 32D.24 to 32D.28 to prevent and restrain violations or threatened violations of 
91.21 	sections 32D.24 to 32D.28 without alleging or proving actual damages or that an adequate 
91.22 	remedy at law does not exist, so that injunctive relief can be obtained promptly and without 
91.23 	awaiting evidence of injury or actual damage. The injunctive relief does not abridge and is 
91.24 	not in lieu of any other civil remedy provided in sections 32D.24 to 32D.28.

91.25 	Sec. 33. [32D.28] ANNUAL SUSPENSION OF DAIRY TRADE PRACTICES ACT.
91.26 	The provisions of section 32D.26 are suspended during the month of June each year in 
91.27 	honor of "Dairy Month."

91.28 	Sec. 34. Minnesota Statutes 2016, section 34A.01, subdivision 1, is amended to read:
91.29 		Subdivision 1.Applicability. The definitions in this section and chapters 28, 28A, 29, 
91.30 	30, 31, 31A, 32 32D, and 34 apply to this chapter. The definitions in this section apply to 
91.31 	chapter 32 32D.

92.1 	Sec. 35. REPEALER.
 92.2 	Minnesota Statutes 2016, sections 32.01, subdivisions 1, 2, 6, 8, 9, 10, 11, and 12; 32.021; 
92.3 	32.071; 32.072; 32.073; 32.074; 32.075; 32.076; 32.078; 32.10; 32.102; 32.103; 32.105; 
92.4 	32.106; 32.21; 32.212; 32.22; 32.25; 32.391, subdivisions 1, 1d, 1e, 1f, 1g, 2, and 3; 32.392; 
92.5 	32.393; 32.394, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 8a, 8b, 8c, 8d, 8e, 9, 11, and 12; 32.395; 
92.6 	32.397; 32.398, subdivision 1; 32.401, subdivisions 1, 2, 3, and 5; 32.415; 32.416; 32.475; 
92.7 	32.481, subdivision 1; 32.482; 32.483; 32.484; 32.486; 32.55, subdivisions 1, 2, 3, 4, 5, 12, 
92.8 	13, and 14; 32.555; 32.56; 32.61; 32.62; 32.63; 32.64; 32.645; 32.70; 32.71; 32.72; 32.74; 
92.9 	32.745; 32.75; and 32.90, are repealed.

APPENDIX 

Repealed Minnesota Statutes: HF1545-1 

18B.01 DEFINITIONS.No active language found for: 18B.01.10aNo active language found for: 18B.01.10bNo active language found for: 18B.01.22aNo active language found for: 18B.28525.371 GOOD MANUFACTURING PRACTICES CERTIFICATE FOR COMMERCIAL FEED AND FEED INGREDIENTS.No active language found for: 25.371.1No active language found for: 25.371.3No active language found for: 25.371.4No active language found for: 25.371.5No active language found for: 25.371.6No active language found for: 25.371.7No active language found for: 25.371.8No active language found for: 25.371.9No active language found for: 25.371.10No active language found for: 25.371.11No active language found for: 25.371.12No active language found for: 25.371.13No active language found for: 25.371.14No active language found for: 25.371.15No active language found for: 32.01.1No active language found for: 32.01.2No active language found for: 32.01.6No active language found for: 32.01.8No active language found for: 32.01.9No active language found for: 32.01.10No active language found for: 32.01.11No active language found for: 32.01.12No active language found for: 32.021No active language found for: 32.071No active language found for: 32.072No active language found for: 32.073No active language found for: 32.074No active language found for: 32.075No active language found for: 32.076No active language found for: 32.078No active language found for: 32.10No active language found for: 32.102No active language found for: 32.103No active language found for: 32.105No active language found for: 32.106No active language found for: 32.21No active language found for: 32.212No active language found for: 32.22No active language found for: 32.25No active language found for: 32.391.1No active language found for: 32.391.1dNo active language found for: 32.391.1eNo active language found for: 32.391.1fNo active language found for: 32.391.1gNo active language found for: 32.391.2No active language found for: 32.391.3No active language found for: 32.392No active language found for: 32.393No active language found for: 32.394.1No active language found for: 32.394.2No active language found for: 32.394.3No active language found for: 32.394.4No active language found for: 32.394.5No active language found for: 32.394.6No active language found for: 32.394.7No active language found for: 32.394.8No active language found for: 32.394.8aNo active language found for: 32.394.8bNo active language found for: 32.394.8cNo active language found for: 32.394.8dNo active language found for: 32.394.8eNo active language found for: 32.394.9No active language found for: 32.394.11No active language found for: 32.394.12No active language found for: 32.395No active language found for: 32.397No active language found for: 32.398.1No active language found for: 32.401.1No active language found for: 32.401.2No active language found for: 32.401.3No active language found for: 32.401.5No active language found for: 32.415No active language found for: 32.416No active language found for: 32.475No active language found for: 32.481.1No active language found for: 32.482No active language found for: 32.483No active language found for: 32.484No active language found for: 32.486No active language found for: 32.55.1No active language found for: 32.55.2No active language found for: 32.55.3No active language found for: 32.55.4No active language found for: 32.55.5No active language found for: 32.55.12No active language found for: 32.55.13No active language found for: 32.55.14No active language found for: 32.555No active language found for: 32.56No active language found for: 32.61No active language found for: 32.62No active language found for: 32.63No active language found for: 32.64No active language found for: 32.645No active language found for: 32.70No active language found for: 32.71No active language found for: 32.72No active language found for: 32.74No active language found for: 32.745No active language found for: 32.75No active language found for: 32.9041A.20 SIDING PRODUCTION INCENTIVE.No active language found for: 41A.20.641D.01 MINNESOTA AGRICULTURE EDUCATION LEADERSHIP COUNCIL.No active language found for: 41D.01.4No active language found for: 383C.809583.22 DEFINITIONS.No active language found for: 583.22.7b