32D.31 MILK MARKETING LICENSE; PERMIT.

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Subdivision 1. License requirement and eligibility.

A current milk marketing license is required for any milk marketer who procures more than 700,000 pounds of milk annually from Minnesota farms. Before a milk marketing license is issued, the commissioner must determine that the applicant meets the relevant licensing requirements.

Subd. 2. Application.

An applicant for a milk marketing license must apply on a form provided by the commissioner. An applicant must also submit:

(1)a report of the total milk payroll obligations that the applicant incurred during the applicant's last completed fiscal year. If the applicant has not yet operated as a milk marketer in Minnesota, the applicant shall estimate the total milk payroll obligations that the applicant will incur during the applicant's first complete fiscal year;

(2)a report of any milk payroll obligations to dairy producers that were unpaid during the applicant's last completed fiscal year and the payroll amount; and

(3)the total amount of hundredweights procured, collected, or marketed from Minnesota milk producers during the applicant's last completed fiscal year.

Subd. 3. Term of license; transferability.

A milk marketing license issued by the commissioner expires on December 31 of each year, must be renewed annually, and is not transferable.

Subd. 4. Fees and penalties.

(a)The fee for a milk marketing license is:

(1)$100 for an initial license; and

(2)$250 annually for a license renewal.

(b)The fee must be paid to the commissioner before the commissioner issues an initial or renewal license. If a person has not applied for a milk marketing license renewal before January 1, a late fee of $100 must be imposed. After January 1, 2026, any person who requires a milk marketing license and conducts activities subject to licensing within 365 days prior to obtaining a milk marketing license must pay a penalty of $250 to receive the person's initial license.

Subd. 5. License requirements.

An applicant for a milk marketing license must:

(1)complete monthly procurement payments under section 32D.11 , if applicable;

(2)provide, upon request of the commissioner, a list of dairy producers from whom the applicant collects milk;

(3)provide dairy field service as described in section 32D.02, subdivision 6 ;

(4)submit associated farm inspection fees as required under sections 32D.06 and 32D.08 ;

(5)provide, upon the request of the commissioner, a financial statement to demonstrate that sufficient financial resources are available to satisfy payroll obligations for milk that is procured or collected from Minnesota dairy producers; and

(6)satisfy all contractual payments and agreements made with any Minnesota dairy producer that maintains a permit or certification as required under section 32D.05 or 32D.07 . A person's failure to pay dairy producers in accordance with contracts may result in the revocation or suspension of the person's milk marketing license.

Subd. 6. Permit requirement.

(a)A person conducting the following activities must hold a valid milk marketing permit:

(1)any activities subject to a milk marketing license; or

(2)if the person is a Minnesota milk producer, marketing milk on the producer's own behalf.

(b)An applicant must apply for a milk marketing permit on a form provided by the commissioner. A milk marketing permit must be issued to an applicant in conjunction with the initial license issued and must contain a milk marketing permit number. An applicant for a milk marketing permit must not be required to pay a fee to the commissioner when applying. A milk marketing permit is valid if the holder of the permit maintains a current milk marketing license or continues to market the permit holder's own milk, with no renewals required.