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Capital IconMinnesota Legislature

HF 4366

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/08/2022 12:20pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; establishing grant programs; classifying certain data;
dedicating certain revenues; making policy and technical changes to agricultural
and animal health provisions; requiring reports; appropriating money; amending
Minnesota Statutes 2020, sections 13.643, by adding a subdivision; 17.041,
subdivision 1; 17.117, subdivisions 9, 9a, 10, 11, 11a; 17.118, subdivisions 1, 3,
4; 18B.01, by adding subdivisions; 18B.051; 18B.07, by adding a subdivision;
18C.005, by adding subdivisions; 18C.201, by adding a subdivision; 21.81, by
adding a subdivision; 21.86, subdivision 2; 28A.08, by adding a subdivision;
28A.09, by adding a subdivision; 28A.10; 28A.21, subdivision 2; 35.155,
subdivision 10; 41A.16, subdivisions 1, 2; 41A.17, subdivisions 1, 2; 41A.18,
subdivisions 1, 2; 41B.047, subdivision 3; 223.17, subdivisions 4, 6; Minnesota
Statutes 2021 Supplement, sections 41A.19; 41A.21, subdivisions 2, 6; Laws 2021,
First Special Session chapter 3, article 1, sections 2; 4; proposing coding for new
law in Minnesota Statutes, chapters 17; 21.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1.

Laws 2021, First Special Session chapter 3, article 1, section 2, is amended to
read:


Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total Appropriation

$
deleted text begin 59,303,000
deleted text end new text begin 63,803,000
new text end
$
deleted text begin 59,410,000
deleted text end new text begin 107,910,000
new text end
Appropriations by Fund
2022
2023
General
deleted text begin 58,904,000
deleted text end new text begin 63,404,000
new text end
deleted text begin59,011,000
deleted text endnew text begin107,511,000
new text end
Remediation
399,000
399,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Protection Services

Appropriations by Fund
2022
2023
General
19,384,000
deleted text begin 19,610,000
deleted text end new text begin 43,231,000
new text end
Remediation
399,000
399,000

(a) $399,000 the first year and $399,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(b) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2021. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock. If
the commissioner receives federal dollars to
pay claims for destroyed or crippled livestock,
an equivalent amount of this appropriation
may be used to reimburse nonlethal prevention
methods performed by federal wildlife services
staff.

(c) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $10,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims, as well as for costs associated with
training for approved agents. The
commissioner may use up to $20,000 of the
appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage.

If the commissioner determines that claims
made under Minnesota Statutes, section 3.737
or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.

(d) $225,000 the first year and $225,000 the
second year are for additional funding for the
noxious weed and invasive plant program.

new text begin (e) $2,000,000 the second year is for a transfer
to the noxious weed and invasive plant species
assistance account established under
Minnesota Statutes, section 18.89, for grants
to local units of government and Tribal
Nations for noxious weed detection, control,
and management. Of this amount, the
commissioner must award a onetime grant of
$10,000 to each county to assist county
agricultural inspectors in the implementation
and enforcement of the Minnesota Noxious
Weed Law and to educate county residents
regarding agricultural topics, including but
not limited to noxious weeds. This is a onetime
appropriation.
new text end

deleted text begin (e)deleted text endnew text begin (f)new text end $50,000 the first year is for additional
funding for the industrial hemp program for
IT development. This is a onetime
appropriation and is available until June 30,
2023.

deleted text begin (f)deleted text endnew text begin (g)new text end $110,000 the first year and $110,000
the second year are for additional meat and
poultry inspection services. The commissioner
is encouraged to seek inspection waivers,
matching federal dollars, and offer more online
inspections for the purposes under this
paragraph.

deleted text begin (g)deleted text endnew text begin (h)new text end $825,000 the first year and $825,000
the second year are to replace capital
equipment in the Department of Agriculture's
analytical laboratory.

deleted text begin (h)deleted text endnew text begin (i)new text end $274,000 the first year and $550,000
the second year are to maintain the current
level of service delivery.

new text begin (j) $100,000 the second year is to support
laboratory testing for the Minnesota meat and
poultry inspection program. The base for this
appropriation is $50,000 in fiscal year 2024
and thereafter.
new text end

new text begin (k) $6,500,000 the second year is for grants
to the Board of Regents of the University of
Minnesota to fund the Forever Green Initiative
and protect the state's natural resources while
increasing the efficiency, profitability, and
productivity of Minnesota farmers by
incorporating perennial and winter-annual
crops into existing agricultural practices. Of
this amount, up to $5,000,000 is for equipment
and physical infrastructure to support breeding
and agronomic activities necessary to develop
perennial and winter-annual crops. This
appropriation is available until June 30, 2028.
The base for this appropriation is $1,500,000
in fiscal year 2024 and thereafter.
new text end

new text begin (l) $9,000,000 the second year is for grants to
organizations in Minnesota to develop
enterprises, supply chains, and markets for
continuous living cover crops and cropping
systems in the early stage of commercial
development, Kernza perennial grain, winter
camelina, hybrid hazelnuts, and elderberry. A
grant award must not exceed $750,000 per
organization. A multiyear project may receive
grant dollars for up to three years. In
consultation with interested stakeholders, the
commissioner must develop a process to award
grants. At the time of application, the
commissioner must notify applicants of any
grant recipient requirements. The
commissioner must appoint a technical review
panel to review and rank eligible applicants
and give preference to applicants that are
well-positioned to expand the profitable
commercialization of the crops identified in
this paragraph. The technical review panel
must include at least one representative from
the University of Minnesota's Forever Green
Initiative and one representative from the
Agricultural Utilization Research Institute.
The commissioner must consider the
recommendations of the technical review panel
when selecting grant recipients. Beginning
February 1, 2023, and annually thereafter until
February 1, 2029, the commissioner must
submit a report on grant utilization to the
legislative committees with jurisdiction over
agriculture finance and policy. This is a
onetime appropriation and is available until
June 30, 2028.
new text end

new text begin (m) $6,725,000 the second year is for the soil
health financial assistance program. This is a
onetime appropriation and is available until
June 30, 2027.
new text end

new text begin (n) $2,000,000 the second year is for transfer
to the pollinator research account established
under Minnesota Statutes, section 18B.051.
This is a onetime appropriation.
new text end

new text begin (o) $371,000 the second year is to regulate
plastic-coated fertilizer and plastic-coated
pesticide. The base for this appropriation is
$358,000 in fiscal year 2024 and thereafter.
new text end

new text begin (p) $100,000 is to develop and promote
consumer guidance regarding seed treated with
neonicotinoid pesticide under Minnesota
Statutes, section 21.915. This is a onetime
appropriation.
new text end

new text begin (q) $425,000 is to analyze, develop, and plan
a streamlined food safety regulatory program
in Minnesota. This is a onetime appropriation
and is available until June 30, 2025.
new text end

Subd. 3.

Agricultural Marketing and
Development

4,200,000
deleted text begin 4,205,000
deleted text end new text begin 5,465,000
new text end

(a) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Grants may be made
for one year. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations
encumbered under contract on or before June
30, 2023, for Minnesota grown grants in this
paragraph are available until June 30, 2025.

(b) $50,000 the first year is to expand
international marketing opportunities for
farmers and value-added processors, including
in-market representation in Taiwan. This is a
onetime appropriation and is available until
June 30, 2023.

(c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
programs including dairy profitability teams
and dairy business planning grants under
Minnesota Statutes, section 32D.30.

(d) $50,000 the first year and $50,000 the
second year are for additional funding for
mental health outreach and support to farmers
and others in the agricultural community,
including a 24-hour hotline, stigma reduction,
and educational offerings. These are onetime
appropriations.

(e) The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance to
persons transitioning from conventional to
organic agriculture.

(f) $100,000 the first year and $100,000 the
second year are for the farm safety grant and
outreach programs under Minnesota Statutes,
section 17.1195. new text beginNotwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
new text endThese
are onetime appropriations.

(g) $54,000 the first year and $109,000 the
second year are to maintain the current level
of service delivery.

new text begin (h) $1,250,000 the second year is to create and
implement a program to support farmers
markets and direct marketing producers. Of
this amount, $1,000,000 is for a grant to the
Minnesota Farmers' Market Association for
awards to farmers' markets not exceeding
$5,000 per market location for equipment and
infrastructure. The Minnesota Farmers' Market
Association may use up to 6.5 percent of the
grant awarded under this paragraph for
administrative expenses. This is a onetime
appropriation and is available until June 30,
2024.
new text end

new text begin (i) $10,000 the second year is to provide an
interim report on the Statewide Cooperative
Partnership for Local and Regional Markets,
including recommendations for strengthening
local and regional food systems. No later than
February 1, 2023, the commissioner must
submit the report to the legislative committees
with jurisdiction over agriculture policy and
finance. This is a onetime appropriation.
new text end

Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

25,343,000
deleted text begin 25,357,000
deleted text end new text begin 33,513,000
new text end

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, salmonella, and other turkey-related
diseases. By January 15, 2023, entities
receiving grants for potato breeding and wild
rice breeding are requested to report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and higher education regarding the
use of the grant money and to provide an
update on the status of research and related
accomplishments.

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.

(b) $16,028,000 the first year and deleted text begin$16,028,000deleted text endnew text begin
$24,184,000
new text end the second year are for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate the appropriation
each year among the following areas:
facilitating the start-up, modernization,
improvement, or expansion of livestock
operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$800,000 deleted text begineachdeleted text endnew text begin the firstnew text end year to develop and
enhance farm-to-school markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota children
in school and child care settings including, at
the commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, includingnew text begin plant-based foods andnew text end
aquaponics systems; providing funding not to
exceed $600,000 deleted text begineachdeleted text endnew text begin the firstnew text end year for urban
youth agricultural education or urban
agriculture community development of which
$10,000 deleted text begineach yeardeleted text end is for transfer to the
emerging farmer account under Minnesota
Statutes, section 17.055, subdivision 1a;
providing funding not to exceed $450,000
deleted text begin eachdeleted text endnew text begin the firstnew text end year for the good food access
program under Minnesota Statutes, section
17.1017; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program
under Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;

(2) $4,500,000 the first year and deleted text begin$4,500,000deleted text endnew text begin
$7,500,000
new text end the second year are for incentive
paymentsnew text begin and paying claims not otherwise
paid
new text end under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2023, and the second
year appropriation is available until June 30,
2024. If this appropriation exceeds the total
amount for which all producers are eligible in
a fiscal year, the balance of the appropriation
is available for other purposes under this
paragraphnew text begin. The base appropriation under this
clause is $6,500,000 in fiscal year 2024 and
thereafter
new text end;

(3) $3,000,000 the first year and $3,000,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which it contracts, must submit a report on the
biofuels infrastructure financial assistance
program by January 15 of each year to the
chairs and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture policy and
finance. The annual report must include but
not be limited to a summary of the following
metrics: (i) the number and types of projects
financed; (ii) the amount of dollars leveraged
or matched per project; (iii) the geographic
distribution of financed projects; (iv) any
market expansion associated with upgraded
infrastructure; (v) the demographics of the
areas served; (vi) the costs of the program;
and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $750,000 the first year and deleted text begin$750,000deleted text endnew text begin
$3,750,000
new text end the second year are for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2024, and
may be used for other purposes under this
paragraph. The appropriations under this
clause are onetime; deleted text beginand
deleted text end

(5) $1,400,000 the first year and $1,400,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118. Any unencumbered balance at the end
of the second year does not cancel until June
30, 2024, and may be used for other purposes
under this paragraph. The appropriations under
this clause are onetimedeleted text begin.deleted text endnew text begin;
new text end

new text begin (6) $300,000 the second year is for farm
business management tuition assistance with
priority to specialty crop farmers, urban
farmers, and farmers facing mediation, and
support for new urban and specialty crop
instructor positions, including translation and
outreach. Any unencumbered balance at the
end of the second year does not cancel and is
available until June 30, 2024. The
appropriation under this clause is onetime;
new text end

new text begin (7) $1,600,000 the second year is to develop
and enhance farm-to-school markets for
Minnesota farmers by providing more fruits,
vegetables, meat, grain, and dairy for
Minnesota children in school and child care
settings, including reimbursing schools and
child care providers for purchases from local
farmers;
new text end

new text begin (8) $1,000,000 the second year is for urban
youth agricultural education or urban
agriculture community development. Of this
amount, $10,000 is for transfer to the
emerging farmer account under Minnesota
Statutes, section 17.055, subdivision 1a; and
new text end

new text begin (9) $1,000,000 the second year is for the good
food access program under Minnesota
Statutes, section 17.1017.
new text end

Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and
appropriations encumbered under contract on
or before June 30, 2023, for agricultural
growth, research, and innovation grants are
available until June 30, 2026.

The base amount for the agricultural growth,
research, and innovation program is
deleted text begin $16,053,000deleted text endnew text begin $18,995,000new text end in fiscal year 2024
and deleted text begin$16,053,000deleted text endnew text begin $18,995,000new text end in fiscal year
2025, and includes funding for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.

(c) $15,000 the first year and $29,000 the
second year are to maintain the current level
of service delivery.

Subd. 5.

Administration and Financial
Assistance

deleted text begin 9,977,000
deleted text end new text begin 14,477,000
new text end
deleted text begin 9,839,000
deleted text end new text begin 25,302,000
new text end

(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1
. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.

(b) $387,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $100,000 the first year and
$50,000 the second year are for a pilot
program creating farmland access teams to
provide technical assistance to potential
beginning farmers. The farmland access teams
must assist existing farmers and beginning
farmers on transitioning farm ownership and
operation. Services provided by teams may
include but are not limited to providing
mediation assistance, designing contracts,
financial planning, tax preparation, estate
planning, and housing assistance. Of this
amount for farm transitions, up to $50,000 the
first year may be used to upgrade the
Minnesota FarmLink web application that
connects farmers looking for land with farmers
looking to transition their land.

(c) $47,000 the first year and $47,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. These are onetime appropriations.

(d) $238,000 the first year and deleted text begin$238,000deleted text endnew text begin
$260,000
new text end the second year are for deleted text begintransfer to
the Board of Trustees of the Minnesota State
Colleges and Universities for statewide mental
health counseling support to farm families and
business operators through the Minnesota State
Agricultural Centers of Excellence. South
Central College and Central Lakes College
shall serve as the fiscal agents.
deleted text endnew text begin a pass-through
grant to Region Five Development
Commission to provide, in collaboration with
Farm Business Management, statewide mental
health counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 6.5
percent of the grant awarded under this
paragraph for administration.
new text end

(e) $1,700,000 the first year and $1,700,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following:

(1) to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses;

(2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and

(3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased under the grants must be
acquired from Minnesota processors and
producers.

Of the amount appropriated under this
paragraph, at least $600,000 each year must
be allocated under clause (1). Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available in the second year.
Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.

(f) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

(g) $1,437,000 the first year and $1,437,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117. The base for appropriations under this
paragraph in fiscal year 2024 and thereafter
is $1,425,000. The commissioner must
examine how the department could use up to
one-third of the amount transferred to the
agricultural and environmental revolving loan
account under this paragraph to award grants
to rural landowners to replace septic systems
that inadequately protect groundwater. No
later than February 1, 2022, the commissioner
must report to the legislative committees with
jurisdiction over agriculture finance and
environment finance on the results of the
examination required under this paragraph.
The commissioner's report may include other
funding sources for septic system replacement
that are available to rural landowners.

(h) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development. These are
onetime appropriations.

(i) $150,000 the first year is to provide grants
to Central Lakes College for the purposes of
designing, building, and offering credentials
in the area of meat cutting and butchery that
align with industry needs as advised by local
industry advisory councils. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year. The commissioner may only
award a grant under this paragraph if the grant
is matched by a like amount from another
funding source. The commissioner must seek
matching dollars from Minnesota State
Colleges and Universities or other entities.
The appropriation is onetime and is available
until June 30, 2024. Any money remaining on
June 30, 2024, must be transferred to the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12, and is available until June 30, 2025.
Grants may be used for costs including but
not limited to:

(1) facility renovation to accommodate meat
cutting;

(2) curriculum design and approval from the
Higher Learning Commission;

(3) program operational start-up costs;

(4) equipment required for a meat cutting
program; and

(5) meat handling start-up costs in regard to
meat access and market channel building.

No later than January 15, 2023, Central Lakes
College must submit a report outlining the use
of grant money to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture and higher education.

(j) $2,000 the first year is for grants to the
Minnesota State Poultry Association. This is
a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(k) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
State Horticultural Society. These are onetime
appropriations.

(l) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. These are
onetime appropriations.

(m) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.

(n) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.

(o) $75,000 the first year and $75,000 the
second year are for grants to Greater Mankato
Growth, Inc., for assistance to
agriculture-related businesses to promote jobs,
innovation, and synergy development. These
are onetime appropriations.

(p) $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research. The Minnesota Turf Seed Council
may subcontract with a qualified third party
for some or all of the basic or applied research.
No later than January 15, 2023, the Minnesota
Turf Seed Council must submit a report
outlining the use of the grant money and
related accomplishments to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture.
deleted text begin These are onetime appropriations.deleted text end Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(q) $150,000 the first year and $150,000 the
second year are to establish an emerging
farmer office and hire a full-time emerging
farmer outreach coordinator. The emerging
farmer outreach coordinator must engage and
support emerging farmers regarding resources
and opportunities available throughout the
Department of Agriculture and the state. For
purposes of this paragraph, "emerging farmer"
has the meaning provided in Minnesota
Statutes, section 17.055, subdivision 1. Of the
amount appropriated each year, $25,000 is for
translation services for farmers and cottage
food producers.

(r) $222,000 the first year and $286,000 the
second year are to maintain the current level
of service delivery.

new text begin (s) $2,600,000 the second year is for grants to
organizations to:
new text end

new text begin (1) provide technical and culturally appropriate
services to emerging farmers and related
businesses; and
new text end

new text begin (2) help emerging farmers pay for up to two
years of coverage under the federal micro farm
insurance program.
new text end

new text begin The commissioner may use up to 6.5 percent
of this appropriation for administrative costs.
This is a onetime appropriation and is
available until June 30, 2024.
new text end

new text begin (t) $2,000,000 the second year is to support
the IT modernization efforts, including laying
the technology foundations needed for
improving customer interactions with the
department for licensing and payments. This
is a onetime appropriation and is available
until June 30, 2025.
new text end

new text begin (u) $4,500,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041, for
emergency preparedness and response
activities. Of this amount, up to $1,500,000 is
for the University of Minnesota Veterinary
Diagnostic Laboratory. This is a onetime
appropriation.
new text end

new text begin (v) $3,000,000 the second year is for grants
to Second Harvest Heartland for hunger relief.
Of this amount, $500,000 is for The Good
Acre's Local Emergency Assistance Farmer
Fund (LEAFF) program. The base for this
appropriation is $1,350,000 in fiscal year 2024
and $1,300,000 in fiscal year 2025, of which
$250,000 each year is for the LEAFF program.
new text end

new text begin (w) $500,000 the second year is for transfer
to the Board of Trustees of the Minnesota
State Colleges and Universities to support
livestock processing technical education at
Central Lakes College and Ridgewater
College. Money may be used for the purposes
included in paragraph (i) and for student
financial assistance and outreach to
prospective students and employers. The
commissioner may only transfer money under
this paragraph if the transferred amount is
matched by a like amount from another
funding source. This is a onetime
appropriation and is available until June 30,
2024.
new text end

new text begin (x) $141,000 the second year is for additional
funding to administer the beginning farmer
tax credit. The base for this appropriation is
$56,000 in fiscal year 2024 and $0 in fiscal
year 2025.
new text end

new text begin (y) $1,500,000 the second year is for a grant
to the Ag Innovation Campus to continue
construction of a soybean processing and
research facility. This is a onetime
appropriation.
new text end

new text begin (z) $100,000 the second year is to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2024. This is a onetime
appropriation and is available until June 30,
2024.
new text end

new text begin (aa) $3,000,000 the second year is to award
and administer down payment assistance
grants under Minnesota Statutes, section
17.133. The base for this appropriation is
$1,000,000 in fiscal year 2024 and thereafter.
new text end

new text begin (bb) $1,000,000 the second year is for transfer
to the Board of Regents of the University of
Minnesota to evaluate, propagate, and
maintain the genetic diversity of oilseeds,
grains, grasses, legumes, and other plants
including flax, timothy, barley, rye, triticale,
alfalfa, orchard grass, clover, and other species
and varieties that were in commercial
distribution and use in Minnesota before 1970,
excluding wild rice. This appropriation
includes funding for associated extension and
outreach to small and BIPOC farmers. This is
a onetime appropriation.
new text end

new text begin (cc) $100,000 the second year is for grants
and other forms of financial assistance to meat
and poultry processors with no more than 50
full-time equivalent employees to reimburse
costs incurred to attend courses or trainings
or receive technical assistance during fiscal
year 2023 that support the processors'
development of sanitation standard operating
procedures, hazard analysis critical control
point plans, or business plans. This is a
onetime appropriation.
new text end

new text begin (dd) $500,000 the second year is for grants to
secondary career and technical education
programs for the purpose of offering
instruction in meat cutting and butchery. This
is a onetime appropriation and is available
until June 30, 2025. Grant-eligible costs
include but are not limited to:
new text end

new text begin (1) equipment required for a meat cutting
program;
new text end

new text begin (2) facility renovation to accommodate meat
cutting; and
new text end

new text begin (3) training faculty to teach the fundamentals
of meat processing.
new text end

new text begin The commissioner may issue grants of up to
$100,000 under this paragraph, of which up
to ten percent may be used for faculty training.
The commissioner may prioritize applicants
that coordinate with meat cutting and butchery
programs at the Minnesota State Colleges and
Universities system and local industry
partners.
new text end

new text begin (ee) $1,000,000 the second year is for a grant
or other form of financial assistance to the city
of South St. Paul to provide financial
assistance to any business engaged in the meat
processing industry and currently conducting
operations in a building or buildings
constructed on or before January 1, 1947, and
located east of Concord Street, north of Grand
Avenue, and south of Hardman Avenue in
South St. Paul. Costs eligible for financial
assistance include any one or combination of
the following costs incurred by the city of
South St. Paul or a qualified business: site
acquisition costs or costs associated with the
exchange or transfer of real estate; relocation
costs; predesign; design; sewer, water, and
stormwater infrastructure; site preparation;
engineering; and construction costs. This is a
onetime appropriation and is available until
June 30, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Laws 2021, First Special Session chapter 3, article 1, section 4, is amended to read:


Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE

$
deleted text begin 4,543,000
deleted text end new text begin 4,743,000
new text end
$
deleted text begin 4,043,000
deleted text end new text begin 7,243,000
new text end

(a) $150,000 the first year and $150,000 the
second year are for a meat scientist.

(b) $500,000 the first year is for grants to
organizations to acquire, host, and operate a
mobile slaughter unit. The mobile unit must
coordinate with Minnesota state two-year
colleges that have meat cutting programs to
accommodate training as it relates to animal
slaughter. The mobile unit may coordinate
with livestock producers who desire to provide
value-added meat products by utilizing the
mobile slaughter unit. The mobile unit may
be used for research, training outside of the
two-year colleges, and other activities that
align with industry needs. The Agricultural
Utilization Research Institute may only award
a grant under this paragraph if the grant
amount is matched by a like amount from
another funding source. The Agricultural
Utilization Research Institute must seek
matching dollars from Minnesota State
Colleges and Universities or other entities for
purposes of this paragraph. The appropriation
under this paragraph is onetime and is
available until June 30, 2024. Any money
remaining on June 30, 2024, must be
transferred to the commissioner of agriculture
for the agricultural growth, research, and
innovation program under Minnesota Statutes,
section 41A.12, and is available until June 30,
2025. By January 15, 2023, the institute must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture regarding the
status of the project, including the status of
the use of any state or matching dollars to
complete the project.

new text begin (c) $2,000,000 the second year is to acquire
property, construct, and equip offices and
research laboratories and related infrastructure
at the Agricultural Utilization Research
Institute's Crookston and Waseca facilities.
This is a onetime appropriation.
new text end

new text begin (d) $1,000,000 the second year is for
equipment upgrades, equipment replacement,
installation expenses, and laboratory
infrastructure at the Agricultural Utilization
Research Institute's laboratories in Crookston,
Marshall, and Waseca. This is a onetime
appropriation and is available until June 30,
2026.
new text end

new text begin (e) $200,000 each year is to maintain the
current level of service delivery.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

Minnesota Statutes 2020, section 13.643, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Mental or behavioral health data. new text end

new text begin (a) The following data collected and
maintained by the Department of Agriculture, Minnesota State Colleges and Universities,
and any other pass-through recipients about any individual who seeks assistance with a
mental or behavioral health issue or who contacts the Minnesota Farm and Rural Helpline
are private or nonpublic:
new text end

new text begin (1) data that identify the individual; and
new text end

new text begin (2) data provided by the individual identifying another person.
new text end

new text begin (b) The Department of Agriculture, Minnesota State Colleges and Universities, and any
other pass-through recipients may release data collected under this subdivision to appropriate
parties in connection with an emergency if knowledge of the data is necessary to protect
the health or safety of any person.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 17.041, subdivision 1, is amended to read:


Subdivision 1.

Establishment; appropriation.

An agricultural emergency account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner for emergency new text beginpreparedness and new text endresponse activities for agricultural
emergencies affecting producers of livestock, poultry, crops, or other agricultural products.
Eligible uses include agency costs directly attributed to new text beginpreparing for and new text endresponding to
agricultural emergencies and purchasing necessary equipment and reimbursing costs incurred
by local units of government that are not eligible for reimbursement from other sources.

Sec. 3.

new text begin [17.1016] COOPERATIVE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "agricultural commodity" and "agricultural product processing facility" have the
meanings given in section 17.101, subdivision 5; and
new text end

new text begin (2) "agricultural service" means an action made under the direction of a farmer that
provides value to another entity. Agricultural service includes grazing to manage vegetation.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner may establish and implement a grant
program to help farmers finance new cooperatives that organize for purposes of operating
an agricultural product processing facility or marketing an agricultural product or agricultural
service.
new text end

new text begin (b) To be eligible for this program, a grantee must:
new text end

new text begin (1) be a cooperative organized under chapter 308A;
new text end

new text begin (2) certify that all control and equity in the cooperative is from farmers, family farm
partnerships, family farm limited liability companies, or family farm corporations as defined
in section 500.24, subdivision 2, who are actively engaged in agricultural commodity
production;
new text end

new text begin (3) be operated primarily to process agricultural commodities or market agricultural
products or services produced in Minnesota; and
new text end

new text begin (4) receive agricultural commodities produced primarily by shareholders or members
of the cooperative.
new text end

new text begin (c) The commissioner may receive applications and make grants up to $50,000 to eligible
grantees for feasibility, marketing analysis, assistance with organizational development,
financing and managing new cooperatives, product development, development of business
and marketing plans, and predesign of facilities including site analysis, development of bid
specifications, preliminary blueprints and schematics, and completion of purchase agreements
and other necessary legal documents.
new text end

Sec. 4.

Minnesota Statutes 2020, section 17.117, subdivision 9, is amended to read:


Subd. 9.

Allocation rescission.

(a) Continued availability of allocations granted to a
local government unit is contingent upon the commissioner's approval of the local
government unit's annual report. The commissioner shall review this annual report to ensure
that the past and future uses of the funds are consistent with the comprehensive water
management plan, other local planning documents, the requirements of the funding source,
and compliance to program requirements. If the commissioner concludes the past or intended
uses of the money are not consistent with these requirements, the commissioner shall rescind
all or part of the allocation awarded to a local government unit.

(b) The commissioner may rescind funds allocated to the local government unit that are
not designated to committed projects or disbursed within one year from the date of the
allocation agreement.

(c) deleted text beginAn additional year to use the undisbursed portion of an allocation may be granted
by the commissioner under extenuating circumstances
deleted text endnew text begin The commissioner may rescind
uncommitted allocations
new text end.

Sec. 5.

Minnesota Statutes 2020, section 17.117, subdivision 9a, is amended to read:


Subd. 9a.

Authority and responsibilities of local government units.

(a) A local
government unit that enters into an allocation agreement with the commissioner:

(1) is responsible for the local administration and implementation of the program in
accordance with this section;

(2) may submit applications for allocations to the commissioner;

(3) shall identify, develop, determine eligibility, define and approve projects, designate
maximum loan amounts for projects, and certify completion of projects implemented under
this program. In areas where no local government unit has applied for funds under this
program, the commissioner may appoint a local government unit to review and certify
projects or the commissioner may assume the authority and responsibility of the local
government unit;

(4) shall certify as eligible only projects that are within its geographic jurisdiction or
within the geographic area identified in its local comprehensive water management plans
or other local planning documents;

(5) may require withholding by the local lender of all or a portion of the loan to the
borrower until satisfactory completion of all required components of a certified project;

deleted text begin (6) must identify which account is used to finance an approved project if the local
government unit has allocations from multiple accounts in the agricultural and environmental
revolving accounts;
deleted text end

deleted text begin (7)deleted text endnew text begin (6)new text end shall report to the commissioner annually the past and intended uses of allocations
awarded; and

deleted text begin (8)deleted text endnew text begin (7)new text end may request additional funds in excess of their allocation when funds are available
in the agricultural and environmental revolving accounts, as long as all other allocation
awards to the local government unit have been used or committed.

(b) If a local government unit withdraws from participation in this program, the local
government unit, or the commissioner in accordance with the priorities established under
subdivision 6a, may designate another local government unit that is eligible under subdivision
6 as the new local government unit responsible for local administration of this program.
This designated local government unit may accept responsibility and administration of
allocations awarded to the former responsible local government unit.

Sec. 6.

Minnesota Statutes 2020, section 17.117, subdivision 10, is amended to read:


Subd. 10.

Authority and responsibilities of local lenders.

(a) Local lenders may enter
into lender agreements with the commissioner.

(b) Local lenders may enter into loan agreements with borrowers to finance eligible
projects under this section.

deleted text begin (c) The local lender shall notify the local government unit of the loan amount issued to
the borrower after the closing of each loan.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end Local lenders with local revolving loan accounts created before July 1, 2001,
may continue to retain and use those accounts in accordance with their lending agreements
for the full term of those agreements.

deleted text begin (e)deleted text endnew text begin (d)new text end Local lenders, including local government units designating themselves as the
local lender, may enter into participation agreements with other lenders.

deleted text begin (f)deleted text endnew text begin (e)new text end Local lenders may enter into contracts with other lenders for the limited purposes
of loan review, processing and servicing, or to enter into loan agreements with borrowers
to finance projects under this section. Other lenders entering into contracts with local lenders
under this section must meet the definition of local lender in subdivision 4, must comply
with all provisions of the lender agreement and this section, and must guarantee repayment
of the loan funds to the local lender.

deleted text begin (g)deleted text endnew text begin (f)new text end When required by the local government unit, a local lender must withhold all or
a portion of the loan disbursement for a project until notified by the local government unit
that the project has been satisfactorily completed.

deleted text begin (h)deleted text endnew text begin (g)new text end The local lender is responsible for repaying all funds provided by the commissioner
to the local lender.

deleted text begin (i)deleted text endnew text begin (h)new text end The local lender is responsible for collecting repayments from borrowers. If a
borrower defaults on a loan issued by the local lender, it is the responsibility of the local
lender to obtain repayment from the borrower. Default on the part of borrowers shall have
no effect on the local lender's responsibility to repay its obligations to the commissioner
whether or not the local lender fully recovers defaulted amounts from borrowers.

deleted text begin (j)deleted text endnew text begin (i)new text end The local lender shall provide sufficient collateral or protection to the commissioner
for the funds provided to the local lender. The commissioner must approve the collateral
or protection provided.

Sec. 7.

Minnesota Statutes 2020, section 17.117, subdivision 11, is amended to read:


Subd. 11.

Loans issued to borrower.

(a) Local lenders may issue loans only for projects
that are approved and certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other local planning documents,
are in compliance with accepted practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or other applicable guidelines.

(b) The local lender may use any additional criteria considered necessary to determine
the eligibility of borrowers for loans.

(c) Local lenders shall set the terms and conditions of loans to borrowers, except thatdeleted text begin:
deleted text end

deleted text begin (1) no loan to a borrower may exceed $200,000; and
deleted text end

deleted text begin (2)deleted text end no borrower shall, at any time, have multiple loans from this program with a total
outstanding loan balance of more than $200,000.

(d) The maximum term length for projects in this paragraph is ten years.

(e) Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of the local lender;

(2) be in accordance with published fee schedules issued by the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of loans offered by the local
lender.

(f) The interest rate assessed to an outstanding loan balance by the local lender must not
exceed three percent per year.

Sec. 8.

Minnesota Statutes 2020, section 17.117, subdivision 11a, is amended to read:


Subd. 11a.

Eligible projects.

(a) All projects that remediate or mitigate adverse
environmental impacts are eligible if the project is eligible under an allocation agreement.

(b) A manure management project is eligible if the project remediates or mitigates
impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules,
chapter 7020, and otherwise meets the requirements of this section.

(c) A drinking water project is eligible if the project:

(1) remediates deleted text beginthedeleted text endnew text begin or mitigates the inadequate flow,new text end adverse environmental impacts or
presence of contaminants in deleted text beginprivate welldeleted text endnew text begin privately ownednew text end waternew text begin supplies that are used for
drinking water by people or livestock, privately owned water service lines, or privately
owned plumbing and fixtures
new text end;

(2) implements best management practicesnew text begin that are intendednew text end to achieve drinking water
standardsnew text begin or adequate flownew text end; and

(3) otherwise meets the requirements of this section.

Sec. 9.

Minnesota Statutes 2020, section 17.118, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

The commissioner may award a livestock investment
grant to a person who raises livestock in this state equal to ten percent of the first deleted text begin$500,000deleted text endnew text begin
$250,000
new text end of qualifying expenditures, provided the person makes qualifying expenditures
of at least $4,000. The commissioner may award multiple livestock investment grants to a
person over the life of the program deleted text beginas long as the cumulative amount does not exceed
$50,000
deleted text end.

Sec. 10.

Minnesota Statutes 2020, section 17.118, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

deleted text begin(a)deleted text end To be eligible for a livestock investment grant, a person must:

(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
subdivision 2, that is eligible to own farmland and operate a farm in this state under section
500.24;

(2) be the principal operator of the farm;

(3) hold a feedlot registration, if required; and

(4) apply to the commissioner on forms prescribed by the commissioner including a
statement of the qualifying expenditures made during the qualifying period along with any
proof or other documentation the commissioner may require.

deleted text begin (b) The $50,000 maximum grant applies at the entity level for partnerships, S
corporations, C corporations, trusts, and estates as well as at the individual level. In the case
of married individuals, the grant is limited to $50,000 for a married couple.
deleted text end

Sec. 11.

Minnesota Statutes 2020, section 17.118, subdivision 4, is amended to read:


Subd. 4.

Process.

The commissioner, in consultation with the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over
agriculture finance, shall develop competitive eligibility criteria and may allocate grants on
a needs basis. deleted text beginThe commissioner shall place any eligible unfunded applications on a waiting
list and, notwithstanding subdivision 2, paragraph (d), give them consideration during the
next fiscal year in which program funding is available.
deleted text end The commissioner shall notify in
writing any applicant who applies for a grant and is ineligible under the provisions of this
section as well as any applicant whose application is received or reviewed after the fiscal
year funding limit has been reached.

Sec. 12.

new text begin [17.133] FARM DOWN PAYMENT ASSISTANCE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible farmer" means an individual who at the time that the grant is awarded:
new text end

new text begin (1) is a resident of Minnesota who intends to acquire farmland located within the state
and provide the majority of the day-to-day physical labor and management of the farm;
new text end

new text begin (2) grosses no more than $250,000 per year from the sale of farm products; and
new text end

new text begin (3) has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland.
new text end

new text begin (c) "Farm down payment" means an initial, partial payment required by a lender or seller
to purchase farmland.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The commissioner must award farm down payment assistance grants
of up to $15,000 per eligible farmer. An eligible farmer must match the grant with at least
an equivalent amount of other funding. An eligible farmer must commit to own and farm
the land purchased with assistance provided under this section for at least five years. For
each year that a grant recipient does not own and farm the land during the five-year period,
the grant recipient must pay a penalty to the commissioner equal to 20 percent of the grant
amount.
new text end

Sec. 13.

new text begin [17.994] SOIL HEALTH FINANCIAL ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The soil health financial assistance program is established
to promote soil health practices that mitigate climate change impacts, improve water quality,
and provide related public benefits.
new text end

new text begin Subd. 2. new text end

new text begin Financial assistance. new text end

new text begin (a) The commissioner may provide financial assistance
to local governments, private sector providers, or farmers to cover the costs of specialized
equipment and technology necessary to implement and sustain soil health practices, including
equipment technology purchases or subscriptions, services to landowners, and other
equipment purchases or financial assistance that the commissioner considers appropriate
to promote healthy soil.
new text end

new text begin (b) The commissioner must establish costs eligible for financial assistance under this
section.
new text end

new text begin (c) The commissioner must prioritize or weigh program implementation elements based
on considerations including:
new text end

new text begin (1) support for soil health principles;
new text end

new text begin (2) supporting participants or participation in the Minnesota agricultural water quality
certification program established under Minnesota Statutes, sections 17.9891 to 17.993;
new text end

new text begin (3) reducing or avoiding greenhouse gas emissions; and
new text end

new text begin (4) other beneficial public or private programs or initiatives to achieve program results.
new text end

Sec. 14.

Minnesota Statutes 2020, section 18B.01, is amended by adding a subdivision to
read:


new text begin Subd. 20b. new text end

new text begin Plastic. new text end

new text begin "Plastic" means an organic or petroleum derivative synthetic or a
semisynthetic organic solid that is moldable, and to which additives or other substances
may have been added. Plastic does not mean natural polymers that have not been chemically
modified.
new text end

Sec. 15.

Minnesota Statutes 2020, section 18B.01, is amended by adding a subdivision to
read:


new text begin Subd. 20c. new text end

new text begin Plastic-coated pesticide. new text end

new text begin "Plastic-coated pesticide" means a pesticide coated
with or microencapsulated by plastic.
new text end

Sec. 16.

Minnesota Statutes 2020, section 18B.051, is amended to read:


18B.051 POLLINATOR deleted text beginHABITAT ANDdeleted text end RESEARCH ACCOUNT.

Subdivision 1.

Account established.

A pollinator deleted text beginhabitat anddeleted text end research account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the Board of Regents of the University of Minnesota for pollinator research and outreach
including, but not limited todeleted text begin,deleted text endnew text begin:
new text end

new text begin (1) pesticide, parasite, and climate disruption impacts;
new text end

new text begin (2)new text end science-based best practicesnew text begin;new text end and

new text begin (3)new text end the identification and establishment of habitat beneficial to pollinators.

Subd. 2.

Expiration.

This section expires July 1, deleted text begin2022deleted text endnew text begin 2025new text end.

Sec. 17.

Minnesota Statutes 2020, section 18B.07, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Plastic-coated pesticide prohibited. new text end

new text begin A person may not sell, offer for sale, use,
or apply a plastic-coated pesticide.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, for nonagricultural
pesticide, and January 1, 2026, for agricultural pesticide.
new text end

Sec. 18.

Minnesota Statutes 2020, section 18C.005, is amended by adding a subdivision
to read:


new text begin Subd. 26a. new text end

new text begin Plastic. new text end

new text begin "Plastic" has the meaning given in section 18B.01, subdivision 20b.
new text end

Sec. 19.

Minnesota Statutes 2020, section 18C.005, is amended by adding a subdivision
to read:


new text begin Subd. 26b. new text end

new text begin Plastic-coated fertilizer. new text end

new text begin "Plastic-coated fertilizer" means a fertilizer coated
with or microencapsulated by plastic.
new text end

Sec. 20.

Minnesota Statutes 2020, section 18C.201, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Plastic-coated fertilizer prohibited. new text end

new text begin A person may not sell, offer for sale, use,
or apply a plastic-coated fertilizer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, for nonagricultural
fertilizer, and January 1, 2026, for agricultural fertilizer.
new text end

Sec. 21.

Minnesota Statutes 2020, section 21.81, is amended by adding a subdivision to
read:


new text begin Subd. 5a. new text end

new text begin Coated agricultural seed. new text end

new text begin "Coated agricultural seed" means any seed unit
covered with a coating material.
new text end

Sec. 22.

Minnesota Statutes 2020, section 21.86, subdivision 2, is amended to read:


Subd. 2.

Miscellaneous violations.

No person may:

(a) detach, alter, deface, or destroy any label required in sections 21.82 and 21.83, alter
or substitute seed in a manner that may defeat the purposes of sections 21.82 and 21.83, or
alter or falsify any seed tests, laboratory reports, records, or other documents to create a
misleading impression as to kind, variety, history, quality, or origin of the seed;

(b) hinder or obstruct in any way any authorized person in the performance of duties
under sections 21.80 to 21.92;

(c) fail to comply with a "stop sale" order or to move or otherwise handle or dispose of
any lot of seed held under a stop sale order or attached tags, except with express permission
of the enforcing officer for the purpose specified;

(d) use the word "type" in any labeling in connection with the name of any agricultural
seed variety;

(e) use the word "trace" as a substitute for any statement which is required;

(f) plant any agricultural seed which the person knows contains weed seeds or noxious
weed seeds in excess of the limits for that seed; deleted text beginor
deleted text end

(g) advertise or sell seed containing patented, protected, or proprietary varieties used
without permission of the patent or certificate holder of the intellectual property associated
with the variety of seeddeleted text begin.deleted text endnew text begin; or
new text end

new text begin (h) use or sell as food, feed, oil, or ethanol feedstock any seed treated with neonicotinoid
pesticide.
new text end

Sec. 23.

new text begin [21.915] PESTICIDE TREATED SEED USE AND DISPOSAL; CONSUMER
GUIDANCE REQUIRED.
new text end

new text begin (a) The commissioner, in consultation with the commissioner of the Pollution Control
Agency, must develop and maintain consumer guidance regarding the proper use and disposal
of seed treated with neonicotinoid pesticide.
new text end

new text begin (b) A person selling seed treated with neonicotinoid pesticide at retail must post in a
conspicuous location the guidance developed by the commissioner under paragraph (a).
new text end

Sec. 24.

Minnesota Statutes 2020, section 28A.08, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Food handler license account; appropriation. new text end

new text begin A food handler license account
is established in the agricultural fund. The commissioner must deposit fees and penalties
paid under subdivision 3 in this account. Money in the account, including interest, is
appropriated to the commissioner for expenses relating to licensing and inspecting food
handlers under chapters 28 to 34A or rules adopted under one of those chapters.
new text end

Sec. 25.

Minnesota Statutes 2020, section 28A.09, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Vending machine inspection account; appropriation. new text end

new text begin A vending machine
inspection account is established in the agricultural fund. The commissioner must deposit
fees paid under subdivision 1 in this account. Money in the account, including interest, is
appropriated to the commissioner for expenses relating to identifying and inspecting food
vending machines under chapters 28 to 34A or rules adopted under one of those chapters.
new text end

Sec. 26.

Minnesota Statutes 2020, section 28A.10, is amended to read:


28A.10 POSTING OF LICENSE; RULES.

All such licenses shall be issued for a period of one year and shall be posted or displayed
in a conspicuous place at the place of business so licensed. Except as provided in sectionsnew text begin
28A.08, subdivision 4; 28A.09, subdivision 3;
new text end 29.22, subdivision 4new text begin;new text end and 31.39, all such
license fees and penalties collected by the commissioner shall be deposited into the state
treasury and credited to the general fund. The commissioner may adopt such rules in
conformity with law as the commissioner deems necessary to effectively and efficiently
carry out the provisions of sections 28A.01 to 28A.16.

Sec. 27.

Minnesota Statutes 2020, section 28A.21, subdivision 2, is amended to read:


Subd. 2.

Membership.

(a) The Food Safety and Defense Task Force consists of:

(1) the commissioner of agriculture or the commissioner's designee;

(2) the commissioner of health or the commissioner's designee;

(3) a representative of the United States Food and Drug Administration;

(4) a representative of the United States Department of Agriculture;

(5) a representative of the Agricultural Utilization Research Institute;

(6) one member of the Minnesota Grocers Association;

(7) one member from the University of Minnesota knowledgeable in food and food
safety issues; and

(8) deleted text beginninedeleted text endnew text begin tennew text end members appointed by the governor who are interested in food and food
safety, of whom:

(i) two persons are health or food professionals;

(ii) one person represents a statewide general farm organization;

(iii) one person represents a local food inspection agency;

(iv) one person represents a food-oriented consumer group; deleted text beginand
deleted text end

(v) one person represents a Minnesota-based manufacturer of microbial detection
equipment and remediation productsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (vi) one person is knowledgeable in cybersecurity.
new text end

(b) Members shall serve without compensation. Members appointed by the governor
shall serve four-year terms.

Sec. 28.

Minnesota Statutes 2020, section 35.155, subdivision 10, is amended to read:


Subd. 10.

Mandatory registration.

(a) A person may not possess live Cervidae in
Minnesota unless the person is registered with the Board of Animal Health and meets all
the requirements for farmed Cervidae under this section. Cervidae possessed in violation
of this subdivision may be seized and destroyed by the commissioner of natural resources.

(b) A person whose registration is revoked by the board is ineligible for future registration
under this section unless the board determines that the person has undertaken measures that
make future escapes extremely unlikely.

new text begin (c) The board must not approve a new registration under this subdivision for farmed
white-tailed deer. This paragraph does not prohibit a person holding a valid registration to
possess farmed white-tailed deer from selling or transferring the person's registration to a
family member who resides in this state and is related to the person within the third degree
of kindred according to the rules of civil law. A registration to possess farmed white-tailed
deer may be sold or transferred only once under this paragraph. Before the board approves
a sale or transfer under this paragraph, the board must verify that the farmed white-tailed
deer herd is free from chronic wasting disease and the person or eligible family member
must pay a onetime transfer fee of $500 to the board.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Minnesota Statutes 2020, section 41A.16, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used to produce an advanced
biofuel, except that, if a facility is sited 50 miles or less from the state border, biomass used
to produce an advanced biofuel may be sourced from outside of Minnesota, but only if at
least 80 percent of the biomass is sourced from within a 100-mile radius of the facility or
from within Minnesota. The facility must be located in Minnesota, must begin production
at a specific location by deleted text beginJune 30, 2025deleted text endnew text begin December 31, 2022new text end, and must not begin operating
above 23,750 MMbtu of quarterly advanced biofuel production before July 1, 2015. Eligible
facilities include existing companies and facilities that are adding advanced biofuel
production capacity, or retrofitting existing capacity, as well as new companies and facilities.
Production of conventional corn ethanol and conventional biodiesel is not eligible. Eligible
advanced biofuel facilities must produce at least 1,500 MMbtu of advanced biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a)new text begin, provided that an eligible
producer may continue to receive payments equal to the difference between the claims for
payment filed under subdivision 6 and the pro rata amount received as of June 30, 2035,
until the full amounts of the original claims are paid
new text end.

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 30.

Minnesota Statutes 2020, section 41A.16, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments to
eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar,
starch, oil, or animal fat at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible biofuel producer in a fiscal year may
not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments
under this section to all eligible biofuel producers in a fiscal year may not exceed the amount
necessary for 17,100,000 MMbtu of biofuel production. If the total amount for which all
producers are eligible in a quarter exceeds the amount available for payments, the
commissioner shall make the payments on a pro rata basis.new text begin An eligible producer may reapply
for payment of the difference between the claim for payment filed under subdivision 6 and
the pro rata amount received:
new text end

new text begin (1) until the full amount of the original claim is paid; and
new text end

new text begin (2) subject to available money appropriated for the express purpose of paying claims
not otherwise paid.
new text end

(c) For purposes of this section, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 31.

Minnesota Statutes 2020, section 41A.17, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used to produce a renewable
chemical, except that, if a facility is sited 50 miles or less from the state border, biomass
used to produce a renewable chemical may be sourced from outside of Minnesota, but only
if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility
or from within Minnesota. The facility must be located in Minnesota, must begin production
at a specific location by deleted text beginJune 30, 2025deleted text endnew text begin December 31, 2022new text end, and must not begin production
of 250,000 pounds of chemicals quarterly before January 1, 2015. Eligible facilities include
existing companies and facilities that are adding production capacity, or retrofitting existing
capacity, as well as new companies and facilities. Eligible renewable chemical facilities
must produce at least 250,000 pounds of renewable chemicals quarterly. Renewable
chemicals produced through processes that are fully commercial before January 1, 2000,
are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after June
30, 2035, for those eligible renewable chemical producers under paragraph (a)new text begin, provided
that an eligible producer may continue to receive payments equal to the difference between
the claims for payment filed under subdivision 5 and the pro rata amount received as of
June 30, 2035, until the full amounts of the original claims are paid
new text end.

(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility
for payments under this section to a renewable chemical facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 32.

Minnesota Statutes 2020, section 41A.17, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make payments
to eligible producers of renewable chemicals located in the state. The amount of the payment
for each producer's annual production is $0.03 per pound of sugar-derived renewable
chemical, $0.03 per pound of cellulosic sugar, starch, oil, or animal fat, and $0.06 per pound
of cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in a
fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. If the total amount for which all producers are eligible in
a quarter exceeds the amount available for payments, the commissioner shall make the
payments on a pro rata basis.new text begin An eligible producer may reapply for payment of the difference
between the claim for payment filed under subdivision 5 and the pro rata amount received:
new text end

new text begin (1) until the full amount of the original claim is paid; and
new text end

new text begin (2) subject to available money appropriated for the express purpose of paying claims
not otherwise paid.
new text end

(d) An eligible facility may blend renewable chemicals with other chemicals that are
not renewable chemicals, but only the percentage attributable to renewable chemicals in
the blended product is eligible to receive payment.

(e) For purposes of this section, an entity that holds a controlling interest in more than
one renewable chemical production facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 33.

Minnesota Statutes 2020, section 41A.18, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent of the biomass used for biomass thermal
production, except that, if a facility is sited 50 miles or less from the state border, biomass
used for biomass thermal production may be sourced from outside of Minnesota, but only
if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility,
or from within Minnesota. Biomass must be from agricultural or forestry sources. The
facility must be located in Minnesota, must have begun production at a specific location by
deleted text begin June 30, 2025deleted text endnew text begin December 31, 2022new text end, and must not begin before July 1, 2015. Eligible facilities
include existing companies and facilities that are adding production capacity, or retrofitting
existing capacity, as well as new companies and facilities. Eligible biomass thermal
production facilities must produce at least 250 MMbtu of biomass thermal quarterly.

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a)new text begin, provided that
an eligible producer may continue to receive payments equal to the difference between the
claims for payment filed under subdivision 5 and the pro rata amount received as of June
30, 2035, until the full amounts of the original claims are paid
new text end.

(c) An eligible producer of biomass thermal production shall not transfer the producer's
eligibility for payments under this section to a biomass thermal production facility at a
different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 34.

Minnesota Statutes 2020, section 41A.18, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; bonus; limits; blending.

(a) The commissioner shall make
payments to eligible producers of biomass thermal located in the state. The amount of the
payment for each producer's annual production is $5.00 per MMbtu of biomass thermal
production produced at a specific location for ten years after the start of production.

(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass
is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible thermal producer in a fiscal year
may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total
payments under this section to all eligible thermal producers in a fiscal year may not exceed
the amount necessary for 150,000 MMbtu of total thermal production. If the total amount
for which all producers are eligible in a quarter exceeds the amount available for payments,
the commissioner shall make the payments on a pro rata basis.new text begin An eligible producer may
reapply for payment of the difference between the claim for payment filed under subdivision
5 and the pro rata amount received:
new text end

new text begin (1) until the full amount of the original claim is paid; and
new text end

new text begin (2) subject to available money appropriated for the express purpose of paying claims
not otherwise paid.
new text end

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass
thermal production facility, but only the percentage attributable to biomass meeting the
cellulosic forestry biomass requirements or agricultural cellulosic biomass sourcing plan is
eligible to receive payment.

(e) When a facility is eligible due to adding production capacity or retrofitting existing
capacity, the entire amount of biomass meeting the cellulosic forestry biomass requirements
or agricultural cellulosic biomass sourcing plan is assumed to have been used for the biomass
thermal production from the added or retrofitted production capacity.

(f) For purposes of this section, an entity that holds a controlling interest in more than
one biomass thermal production facility is considered a single eligible producer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to claims filed after January 1, 2020.
new text end

Sec. 35.

Minnesota Statutes 2021 Supplement, section 41A.19, is amended to read:


41A.19 REPORT; INCENTIVE PROGRAMS.

By January 15 each year, the commissioner shall report on the incentive programs under
sections 41A.16, 41A.17, 41A.18, 41A.20, and 41A.21 to the legislative committees with
jurisdiction over environment new text beginpolicy and finance new text endand agriculture policy and finance. The
report shall include information on production and incentive expenditures under the
programsdeleted text begin.deleted text endnew text begin, as well as the following information that the commissioner must require of each
producer who receives a payment during the reporting period:
new text end

new text begin (1) the producer's business structure;
new text end

new text begin (2) the name and address of the producer's parent company, if any;
new text end

new text begin (3) a cumulative list of all financial assistance received from all grantors for the project;
new text end

new text begin (4) goals for the number of jobs created and progress in achieving these goals, which
may include separate goals for the number of part-time or full-time jobs, or, in cases where
job loss is specific and demonstrable, goals for the number of jobs retained;
new text end

new text begin (5) equity hiring goals and progress in achieving these goals;
new text end

new text begin (6) wage goals and progress in achieving these goals for all jobs created or maintained
by the producer;
new text end

new text begin (7) board member and executive compensation;
new text end

new text begin (8) evidence of compliance with environmental permits;
new text end

new text begin (9) the producer's intended and actual use of payments received from the commissioner;
and
new text end

new text begin (10) if applicable, the latest financial audit opinion statement produced by a certified
public accountant in accordance with standards established by the American Institute of
Certified Public Accountants.
new text end

Sec. 36.

Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 2, is amended
to read:


Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must source
at least 80 percent of its forest resources raw materials from Minnesota. The facility must
be located in Minnesota; must begin construction activities by December 31, 2022, for a
specific location; must deleted text beginbegin productiondeleted text endnew text begin have produced at least one OSB square foot on a
3/8-inch nominal basis
new text end at a specific location by June 30, 2025; and must not begin operating
before January 1, 2022. Eligible facilities must be new OSB construction sites with total
capital investment in excess of $250,000,000. Eligible OSB production facilities must
produce at least deleted text begin200,000,000deleted text endnew text begin 50,000,000new text end OSB square feet on a 3/8-inch nominal basis of
OSB each deleted text beginyeardeleted text endnew text begin quarternew text end. At least one product produced at the facility should be a wood-based
wall or roof structural sheathing panel that has an integrated, cellulose-based paper overlay
that serves as a water resistive barrier.

(b) No payments shall be made for OSB production that occurs after June 30, 2036, for
those eligible producers under paragraph (a).

(c) An eligible producer of OSB shall not transfer the producer's eligibility for payments
under this section to a facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

Sec. 37.

Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 6, is amended
to read:


Subd. 6.

Appropriation.

(a) In fiscal year 2025, a sum sufficient to make the payments
required by this section, not to exceed $1,500,000, is appropriated from the general fund to
the commissioner. This is a onetime appropriation.

(b) From fiscal year 2026 through fiscal year 2034, a sum sufficient to make the payments
required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated
from the general fund to the commissioner.

new text begin (c) The commissioner may use up to 6.5 percent of this appropriation for costs incurred
to administer the program.
new text end

Sec. 38.

Minnesota Statutes 2020, section 41B.047, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was (i) sustained within a county that was the subject
of a state or federal disaster declaration; (ii) due to the confirmed presence of a highly
contagious animal disease in Minnesota; (iii) due to an infectious human disease for which
the governor has declared a peacetime emergency; or (iv) due to an emergency as determined
by the authority;

(3) demonstrate an ability to repay the loan; and

(4) have received at least deleted text begin50deleted text endnew text begin 20new text end percent of deleted text beginaveragedeleted text end annual gross income from farming
deleted text begin fordeleted text endnew text begin innew text end the past deleted text beginthree yearsdeleted text endnew text begin yearnew text end.

Sec. 39.

Minnesota Statutes 2020, section 223.17, subdivision 4, is amended to read:


Subd. 4.

Bond.

(a) Except as provided in paragraphs (c) to (e), before a grain buyer's
license is issued, the applicant for the license must file with the commissioner a bond in a
penal sum prescribed by the commissioner but not less than the following amounts:

(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;

(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but
not more than $750,000;

(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but
not more than $1,500,000;

(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000
but not more than $3,000,000;

(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000
but not more than $6,000,000;

(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000
but not more than $12,000,000;

(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000
but not more than $24,000,000; and

(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.

(b) The amount of the bond shall be based on the most recent gross annual grain purchase
report of the grain buyer.

(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
the licensee shall comply with the applicable bonding requirements contained in paragraph
(a), clauses (1) to (8).

(d) In lieu of the bond required by this subdivision the applicant may deposit with the
commissioner of management and budget an irrevocable bank letter of credit as defined in
section 336.5-102, in the same amount as would be required for a bond.

(e) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are deleted text begin$100,000deleted text endnew text begin $250,000new text end or less.

(f) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

Sec. 40.

Minnesota Statutes 2020, section 223.17, subdivision 6, is amended to read:


Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared in accordance with generally accepted accounting principles. The annual financial
statement required under this subdivision must also:

(1) include, but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of changes in financial position; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyer;

(2) be accompanied by a compilation report of the financial statement that is prepared
by a grain commission firm or a management firm approved by the commissioner or by an
independent public accountant, in accordance with standards established by the American
Institute of Certified Public Accountants;

(3) be accompanied by a certification by the chief executive officer or the chief executive
officer's designee of the licensee, and where applicable, all members of the governing board
of directors under penalty of perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in the statement;

(4) for grain buyers purchasing under deleted text begin$5,000,000deleted text endnew text begin $7,500,000new text end of grain annually, be
reviewed by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants, and must show that the financial
statements are free from material misstatementsnew text begin. The grain buyer must post the review
required under this clause on a website maintained by the buyer and available to the public
new text end;
and

(5) for grain buyers purchasing deleted text begin$5,000,000deleted text endnew text begin $7,500,000new text end or more of grain annually, be
audited by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants and must include an opinion statement
from the certified public accountant.new text begin The grain buyer must post the audit report and opinion
statement required under this clause on a website maintained by the buyer and available to
the public.
new text end

(b) Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. All
financial statements filed with the commissioner are private or nonpublic data as provided
in section 13.02.

(c) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are deleted text begin$100,000deleted text endnew text begin $250,000new text end or less.

(d) The commissioner shall annually provide information on a person's fiduciary duties
to each licensee. To the extent practicable, the commissioner must direct each licensee to
provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).

Sec. 41. new text beginREVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes must renumber the subdivisions in Minnesota Statutes, section
18B.01, so the defined terms are in alphabetical order and adjust any cross-references
accordingly.
new text end