1.1                          A bill for an act 
  1.2             relating to agriculture; changing certain dairy 
  1.3             inspection fees; amending Minnesota Statutes 1996, 
  1.4             section 32.394, subdivisions 8, 8a, 8b, and 8d. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 32.394, 
  1.7   subdivision 8, is amended to read: 
  1.8      Subd. 8.  [GRADE A INSPECTION FEES.] A processor or 
  1.9   marketing organization of milk, milk products, sheep milk, or 
  1.10  goat milk who wishes to market Grade A milk or use the Grade A 
  1.11  label must apply for Grade A inspection service from the 
  1.12  commissioner.  A pasteurization plant requesting Grade A 
  1.13  inspection service must hold a Grade A permit and pay an annual 
  1.14  inspection fee of no more than $500 which includes the 
  1.15  inspection of one pasteurization unit.  For each additional unit 
  1.16  the annual fee is $140.  For Grade A farm inspection service~~,~~ 
  1.17  the fee ~~must be no more than $50 per farm,~~ paid annually by the 
  1.18  processor or by the marketing organization on behalf of its 
  1.19  patrons must be according to the following schedule of herd 
  1.20  size:  1-29 cows $50, 30-49 cows $60, 50-99 cows $70, 100-199 
  1.21  cows $80, and 200 or more cows $90.  For a farm requiring a 
  1.22  reinspection in addition to the required biannual inspections, 
  1.23  an additional fee of no more than ~~$25~~ $45 per reinspection must 
  1.24  be paid by the processor or by the marketing organization on 
  1.25  behalf of its patrons.  ~~The Grade A farm inspection fee must not~~ 
  2.1   ~~exceed the lesser of (1) 40 percent of the department's actual~~ 
  2.2   ~~average cost per farm inspection or reinspection; or (2) the~~ 
  2.3   ~~dollar limits set in this subdivision.  No fee increase may be~~ 
  2.4   ~~implemented until after the commissioner has held three or more~~ 
  2.5   ~~public hearings.~~  
  2.6      Sec. 2.  Minnesota Statutes 1996, section 32.394, 
  2.7   subdivision 8a, is amended to read: 
  2.8      Subd. 8a.  [LABORATORY CERTIFICATION.] A laboratory, before 
  2.9   conducting a test the results of which are to be used in the 
  2.10  enforcement of requirements for distribution of milk, milk 
  2.11  products, sheep milk, or goat milk under the Grade A label, must 
  2.12  be certified as meeting the requirements for laboratory approval 
  2.13  that are established by rule of the commissioner, and must 
  2.14  receive a permit from the commissioner.  The annual permit shall 
  2.15  remain valid ~~without renewal~~ unless suspended or revoked by the 
  2.16  commissioner for failure to comply with the requirements.  
  2.17  Satisfactory analytical procedures and results for split 
  2.18  samples, the nature, number and frequency of which shall be in 
  2.19  accordance with rules established by the commissioner, shall be 
  2.20  required of a certified laboratory for retention of its 
  2.21  certification and permit. 
  2.22     ~~An application for initial~~ The annual fee for laboratory 
  2.23  certification or for recertification following suspension or 
  2.24  revocation of a permit shall be ~~accompanied by a~~ based on the 
  2.25  number of criteria the laboratory is certified to perform.  The 
  2.26  annual fee ~~of~~ for each criterion must be not less than 
  2.27  ~~$100~~ $80 nor more than ~~$350~~ $120.  The fee for each set of split 
  2.28  samples ~~shall~~ must be not less than $25 nor more than ~~$75~~ $125.  
  2.29  The commissioner may annually adjust assessments within the 
  2.30  limits established by this subdivision to meet the cost of the 
  2.31  services required by this subdivision. 
  2.32     ~~A certified laboratory of record on June 5, 1975 shall be~~ 
  2.33  ~~issued a permit without having to pay the initial certification~~ 
  2.34  ~~fee.~~ 
  2.35     Sec. 3.  Minnesota Statutes 1996, section 32.394, 
  2.36  subdivision 8b, is amended to read: 
  3.1      Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] A 
  3.2   processor or marketing organization of milk, milk products, 
  3.3   sheep milk, or goat milk who wishes to market other than Grade A 
  3.4   milk must apply for a manufacturing grade farm certification 
  3.5   inspection from the commissioner.  A manufacturing plant that 
  3.6   pasteurizes milk or milk by-products must pay an annual fee 
  3.7   ~~based on the number of pasteurization units.  This fee must not~~ 
  3.8   ~~exceed $140 per unit~~ of not more than $250 which includes the 
  3.9   inspection of one pasteurization unit.  For each additional unit 
  3.10  the annual fee is $140.  The fee for farm certification 
  3.11  inspection must ~~not be more than $25 per farm~~ be according to 
  3.12  the following schedule of herd size:  1-29 cows $25, 30-49 cows 
  3.13  $30, 50-99 cows $35, 100-199 cows $40, 200 or more cows $45.  
  3.14  These fees are to be paid annually by the processor or by the 
  3.15  marketing organization on behalf of its patrons.  For a farm 
  3.16  requiring more than the one inspection for certification, a 
  3.17  reinspection fee of no more than ~~$25~~ $45 must be paid by the 
  3.18  processor or by the marketing organization on behalf of its 
  3.19  patrons.  ~~The fee must be set by the commissioner in an amount~~ 
  3.20  ~~necessary to cover 40 percent of the department's actual cost of~~ 
  3.21  ~~providing the annual inspection but must not exceed the limits~~ 
  3.22  ~~in this subdivision.  No fee increase may be implemented until~~ 
  3.23  ~~after the commissioner has held three or more public hearings.~~  
  3.24     Sec. 4.  Minnesota Statutes 1996, section 32.394, 
  3.25  subdivision 8d, is amended to read: 
  3.26     Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
  3.27  pay to the commissioner a fee for fluid milk processed ~~and~~, milk 
  3.28  used in the manufacture of fluid milk products, frozen dairy 
  3.29  desserts, and mix sold for retail sale in Minnesota.  ~~Beginning~~ 
  3.30  ~~May 1, 1993,~~ The fee for fluid milk and milk products is not 
  3.31  less than six cents per hundredweight and not more than nine 
  3.32  cents per hundredweight.  The fee for frozen dairy desserts and 
  3.33  mix is not less than three-tenths of one cent per gallon or more 
  3.34  than one cent per gallon.  If the commissioner determines that a 
  3.35  different fee, ~~not less than five cents and not more than nine~~ 
  3.36  ~~cents per hundredweight,~~ when combined with general fund 
  4.1   appropriations and fees charged under sections 31.39 and 32.394, 
  4.2   subdivision 8, is needed to provide adequate funding for the 
  4.3   Grades A and B inspection programs and the administration and 
  4.4   enforcement of ~~Laws 1993, chapter 65~~ sections 32.70 to 32.74, 
  4.5   the commissioner may, by rule, change the fee on processors 
  4.6   within the range provided within this subdivision. 
  4.7      (b) Processors must report quantities of milk processed 
  4.8   under paragraph (a) on forms provided by the commissioner.  
  4.9   Processor fees must be paid monthly.  The commissioner may 
  4.10  require the production of records as necessary to determine 
  4.11  compliance with this subdivision. 
  4.12     (c) The commissioner may create within the department a 
  4.13  dairy consulting program to provide assistance to dairy 
  4.14  producers who are experiencing problems meeting the sanitation 
  4.15  and quality requirements of the dairy laws and rules. 
  4.16     The commissioner may use money appropriated from the dairy 
  4.17  services account created in subdivision 9 to pay for the program 
  4.18  authorized in this paragraph.