Subd. 1. Policy; processors; wholesalers; retailers.

1. (a) It is the intent of the legislature to accomplish partial deregulation of milk marketing with a minimum negative impact on small-volume retailers.
2. (b) A processor or wholesaler may not sell or offer for sale selected class I or class II dairy products at a price lower than the processor's or wholesaler's basic cost.
3. (c) A retailer may not sell or offer for sale selected class I or class II dairy products at a retail price lower than (1) 105 percent of the retailer's basic cost until June 30, 1994; and (2) the retailer's basic cost beginning July 1, 1994, and thereafter. A retailer may not use any method or device in the sale or offer for sale of a selected dairy product that results in a violation of this section.

Subd. 2. Exceptions.

The minimum processor, wholesaler, and retailer prices of subdivision 1 do not apply:

1. (1) to a sale complying with section 325D.06;
2. (2) to a retailer giving away selected class I and class II dairy products for free if the customer is not required to make a purchase; or
3. (3) to a processor, wholesaler, or retailer giving away selected class I and class II dairy products for free or at a reduced cost to a bona fide charity.