1.1                          A bill for an act 
  1.2             relating to agriculture; establishing the Minnesota 
  1.3             dairy producers board; appropriating money; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 17. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [LEGISLATIVE FINDINGS; POLICY STATEMENT.] 
  1.7      The legislature finds that dairy producers in Minnesota 
  1.8   have for many years received less than a fair return on their 
  1.9   investment in livestock, equipment, and management skills.  One 
  1.10  of the causes for this inequitable return is a lack of 
  1.11  information on the part of producers about forces in the dairy 
  1.12  marketplace that influence the farm gate price for raw milk.  
  1.13  The legislature further finds that dairy producers are willing 
  1.14  and able to cooperate with each other through a respected, 
  1.15  statewide, legislatively authorized communication organization 
  1.16  to improve the flow of economic and marketing knowledge.  The 
  1.17  Minnesota dairy producers board established in section 2 is 
  1.18  intended to work within the dairy industry to set and maintain a 
  1.19  raw milk price that will provide a fair return on the dairy 
  1.20  farmers' investment. 
  1.21     Sec. 2.  [17.76] [MINNESOTA DAIRY PRODUCERS BOARD.] 
  1.22     Subdivision 1.  [ESTABLISHMENT; COMPOSITION; OFFICERS.] (a) 
  1.23  The Minnesota dairy producers board consists of 11 members 
  1.24  appointed by the commissioner of agriculture as follows: 
  1.25     (1) Eight of the members must be individuals who daily 
  2.1   manage and operate a dairy farm owned by the person.  Of these 
  2.2   eight members, the commissioner must include persons who 
  2.3   represent associations of dairy producers.  The majority of 
  2.4   members appointed under this clause must be persons from areas 
  2.5   of the state with the greatest dairy production. 
  2.6      (2) Three members must represent food consumer groups. 
  2.7      (b) The board shall elect from among its members a chair 
  2.8   and other appropriate officers. 
  2.9      (c) Members serve one-year terms, beginning January 1 of 
  2.10  each year. 
  2.11     (d) Members do not receive per diem, but must be reimbursed 
  2.12  for expenses according to section 15.059. 
  2.13     Subd. 2.  [DUTIES.] (a) The board shall monitor economic 
  2.14  aspects of the dairy production, processing, and marketing 
  2.15  process including: 
  2.16     (1) the movement of milk by processors; 
  2.17     (2) price setting at the Green Bay, Wisconsin, cheese 
  2.18  exchange; 
  2.19     (3) processor pricing schemes; 
  2.20     (4) producer checkoffs and the use of checkoff funds; 
  2.21     (5) federal and state pricing policy; and 
  2.22     (6) other activities that affect the farm gate price of raw 
  2.23  milk.  
  2.24     (b) The board shall regularly educate producers, 
  2.25  processors, consumers, and policymakers about the reasons for 
  2.26  inadequate raw milk prices. 
  2.27     (c) The board shall conduct quarterly surveys of dairy 
  2.28  producers to identify problems created by milk prices that do 
  2.29  not provide a fair return on the investment of producers.  The 
  2.30  board must compile the information from these surveys and 
  2.31  recommend solutions to producers.  
  2.32     (d) The board shall determine dairy production costs in 
  2.33  each county through periodic surveys and from local 
  2.34  organizations of producers. 
  2.35     (e) The board shall serve as an advocate for dairy 
  2.36  producers in assuring that members of cooperatives are awarded 
  3.1   protections similar to the rights of members of cooperative 
  3.2   electric associations under section 216B.027. 
  3.3      Subd. 3.  [MEETINGS; FREQUENCY; LOCATION.] The board shall 
  3.4   meet in regular session at a central Minnesota location.  
  3.5   Special meetings of the board may be called by the board chair.  
  3.6      Subd. 4.  [STAFFING.] The board shall employ an executive 
  3.7   director and other appropriate staff as determined by the board. 
  3.8      Subd. 5.  [SUNSET.] This section is repealed December 31, 
  3.9   1999. 
  3.10     Sec. 3.  [APPROPRIATION.] 
  3.11     $100,000 is appropriated from the general fund to the 
  3.12  commissioner of agriculture for purposes of the Minnesota dairy 
  3.13  producers board established in Minnesota Statutes, section 
  3.14  17.76.  This appropriation remains available until June 30, 1997.