1.1 	A bill for an act
1.2 	relating to agriculture; establishing a budget for the Department of Agriculture, 
1.3 	the Board of Animal Health, and the Agricultural Utilization Research Institute;
1.4 	amending Laws 2015, First Special Session chapter 4, article 1, section 2, 
1.5 	subdivision 4, as amended; Laws 2017, chapter 88, article 1, section 2, subdivisions 
1.6 	2, 4.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8	Section 1. AGRICULTURE APPROPRIATIONS.
 	
1.9 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.10 	and for the purposes specified in this act. The appropriations are from the general fund, or 
1.11 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.12 	figures "2020" and "2021" used in this act mean that the appropriations listed under them 
1.13 	are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The 
1.14 	first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is 
1.15 	fiscal years 2020 and 2021.

1.16				APPROPRIATIONS
	
1.17				Available for the Year
	
1.18				Ending June 30
	
1.19					2020
		2021

1.20	Sec. 2. DEPARTMENT OF AGRICULTURE

1.21	Subdivision 1.Total Appropriation
 	$
	56,165,000
	$
	55,760,000

1.22	Appropriations by Fund
	
1.23		2020
	2021
	
1.24	General
	55,766,000
	55,361,000
	
1.25	Remediation
	399,000
	399,000
	
2.1 	The amounts that may be spent for each 
2.2 	purpose are specified in the following 
2.3 	subdivisions.

2.4	Subd. 2.Protection Services

2.5	Appropriations by Fund
	
2.6		2020
	2021
	
2.7	General
	19,985,000
	19,905,000
	
2.8	Remediation
	399,000
	399,000
	
2.9 	(a) $399,000 the first year and $399,000 the 
2.10 	second year are from the remediation fund for 
2.11 	administrative funding for the voluntary 
2.12 	cleanup program.
2.13 	(b) $175,000 the first year and $175,000 the 
2.14 	second year are for compensation for 
2.15 	destroyed or crippled livestock under 
2.16 	Minnesota Statutes, section 3.737. The 
2.17 	appropriation for fiscal year 2020 may be 
2.18 	spent to compensate for livestock that were 
2.19 	destroyed or crippled during fiscal year 2019. 
2.20 	If the amount for fiscal year 2020 is 
2.21 	insufficient, the amount in fiscal year 2021 is 
2.22 	available in fiscal year 2020. The 
2.23 	commissioner may use up to $5,000 each year 
2.24 	to reimburse expenses incurred by university 
2.25 	extension agents to provide fair market values 
2.26 	of destroyed or crippled livestock.
2.27 	(c) $155,000 the first year and $155,000 the 
2.28 	second year are for compensation for crop 
2.29 	damage under Minnesota Statutes, section 
2.30 	3.7371. If the amount in the first year is 
2.31 	insufficient, the amount in the second year is 
2.32 	available in the first year. The commissioner 
2.33 	may use up to $30,000 of the appropriation 
2.34 	each year to reimburse expenses incurred by 
2.35 	the commissioner or the commissioner's 
3.1 	approved agent to investigate and resolve 
3.2 	claims.
3.3 	If the commissioner determines that claims 
3.4 	made under Minnesota Statutes, section 3.737 
3.5 	or 3.7371, are unusually high, amounts 
3.6 	appropriated for either program may be 
3.7 	transferred to the appropriation for the other 
3.8 	program.
3.9 	(d) $1,110,000 the first year and $1,030,000 
3.10 	the second year are to replace capital 
3.11 	equipment in the Department of Agriculture's 
3.12 	analytical laboratory.
3.13 	(e) $625,000 the first year and $300,000 the 
3.14 	second year are for agriculture emergency 
3.15 	preparedness and response. Of this amount, 
3.16 	$325,000 in the first year is for transfer to the 
3.17 	agricultural fund to increase the balance of the 
3.18 	agricultural emergency account. This amount 
3.19 	is a onetime appropriation. The base for fiscal 
3.20 	years 2022 and 2023 is $300,000 and is for 
3.21 	supporting the Department of Agriculture's 
3.22 	emergency preparedness and response 
3.23 	activities.

3.24
3.25	Subd. 3.Agricultural Marketing and 
Development
 		4,096,000
		4,096,000
	
3.26 	(a) $186,000 the first year and $186,000 the 
3.27 	second year are for transfer to the Minnesota 
3.28 	grown account and may be used as grants for 
3.29 	Minnesota grown promotion under Minnesota 
3.30 	Statutes, section 17.102. Grants may be made 
3.31 	for one year. Notwithstanding Minnesota 
3.32 	Statutes, section 16A.28, the appropriations 
3.33 	encumbered under contract on or before June 
3.34 	30, 2021, for Minnesota grown grants in this 
3.35 	paragraph are available until June 30, 2023.
4.1 	(b) $634,000 the first year and $634,000 the 
4.2 	second year are for continuation of the dairy 
4.3 	development and profitability enhancement 
4.4 	and dairy business planning grant programs 
4.5 	established under Laws 1997, chapter 216, 
4.6 	section 7, subdivision 2, and Laws 2001, First 
4.7 	Special Session chapter 2, section 9, 
4.8 	subdivision 2. The commissioner may allocate 
4.9 	the available sums among permissible 
4.10 	activities, including efforts to improve the 
4.11 	quality of milk produced in the state, in the 
4.12 	proportions that the commissioner deems most 
4.13 	beneficial to Minnesota's dairy farmers. The 
4.14 	commissioner must submit a detailed 
4.15 	accomplishment report and a work plan 
4.16 	detailing future plans for, and anticipated 
4.17 	accomplishments from, expenditures under 
4.18 	this program to the chairs and ranking minority 
4.19 	members of the legislative committees with 
4.20 	jurisdiction over agriculture policy and finance 
4.21 	on or before the start of each fiscal year. If 
4.22 	significant changes are made to the plans in 
4.23 	the course of the year, the commissioner must 
4.24 	notify the chairs and ranking minority 
4.25 	members.
4.26 	(c) The commissioner may use funds 
4.27 	appropriated in this subdivision for annual 
4.28 	cost-share payments to resident farmers or 
4.29 	entities that sell, process, or package 
4.30 	agricultural products in this state for the costs 
4.31 	of organic certification. The commissioner 
4.32 	may allocate these funds for assistance for 
4.33 	persons transitioning from conventional to 
4.34 	organic agriculture.

5.1
5.2	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		23,600,000
		23,600,000
	
5.3 	(a) $9,300,000 the first year and $9,300,000 
5.4 	the second year are for transfer to the 
5.5 	agriculture research, education, extension, and 
5.6 	technology transfer account under Minnesota 
5.7 	Statutes, section 41A.14, subdivision 3. Of 
5.8 	these amounts: at least $600,000 the first year 
5.9 	and $600,000 the second year are for the 
5.10 	Minnesota Agricultural Experiment Station's 
5.11 	agriculture rapid response fund under 
5.12 	Minnesota Statutes, section 41A.14, 
5.13 	subdivision 1, clause (2); $2,000,000 the first 
5.14 	year and $2,000,000 the second year are for 
5.15 	grants to the Minnesota Agriculture Education 
5.16 	Leadership Council to enhance agricultural 
5.17 	education with priority given to Farm Business 
5.18 	Management challenge grants; $350,000 the 
5.19 	first year and $350,000 the second year are 
5.20 	for potato breeding; and $450,000 the first 
5.21 	year and $450,000 the second year are for the 
5.22 	cultivated wild rice breeding project at the 
5.23 	North Central Research and Outreach Center 
5.24 	to include a tenure track/research associate 
5.25 	plant breeder. The commissioner shall transfer 
5.26 	the remaining funds in this appropriation each 
5.27 	year to the Board of Regents of the University 
5.28 	of Minnesota for purposes of Minnesota 
5.29 	Statutes, section 41A.14. Of the amount 
5.30 	transferred to the Board of Regents, up to 
5.31 	$1,000,000 each year is for research on avian 
5.32 	influenza, including prevention measures that 
5.33 	can be taken.
5.34 	To the extent practicable, money expended 
5.35 	under Minnesota Statutes, section 41A.14, 
5.36 	subdivision 1, clauses (1) and (2), must 
6.1 	supplement and not supplant existing sources 
6.2 	and levels of funding. The commissioner may 
6.3 	use up to one percent of this appropriation for 
6.4 	costs incurred to administer the program.
6.5 	(b) $14,275,000 the first year and $14,275,000 
6.6 	the second year are for the agricultural growth, 
6.7 	research, and innovation program in 
6.8 	Minnesota Statutes, section 41A.12. Except 
6.9 	as provided below, the commissioner may 
6.10 	allocate the appropriation each year among 
6.11 	the following areas: facilitating the start-up, 
6.12 	modernization, or expansion of livestock 
6.13 	operations including beginning and 
6.14 	transitioning livestock operations; developing 
6.15 	new markets for Minnesota farmers by 
6.16 	providing more fruits, vegetables, meat, grain, 
6.17 	and dairy for Minnesota school children; 
6.18 	assisting value-added agricultural businesses 
6.19 	to begin or expand, access new markets, or 
6.20 	diversify; providing funding not to exceed 
6.21 	$250,000 each year for urban youth 
6.22 	agricultural education or urban agriculture 
6.23 	community development; providing funding 
6.24 	not to exceed $250,000 each year for the good 
6.25 	food access program under Minnesota 
6.26 	Statutes, section 17.1017; facilitating the 
6.27 	start-up, modernization, or expansion of other 
6.28 	beginning and transitioning farms including 
6.29 	by providing loans under Minnesota Statutes, 
6.30 	section 41B.056; sustainable agriculture 
6.31 	on-farm research and demonstration; 
6.32 	development or expansion of food hubs and 
6.33 	other alternative community-based food 
6.34 	distribution systems; enhancing renewable 
6.35 	energy infrastructure and use; crop research; 
6.36 	Farm Business Management tuition assistance; 
7.1 	and good agricultural practices/good handling 
7.2 	practices certification assistance. The 
7.3 	commissioner may use up to 6.5 percent of 
7.4 	this appropriation for costs incurred to 
7.5 	administer the program.
7.6 	Of the amount appropriated for the agricultural 
7.7 	growth, research, and innovation program in 
7.8 	Minnesota Statutes, section 41A.12:
7.9 	(1) $1,000,000 the first year and $1,000,000 
7.10 	the second year are for distribution in equal 
7.11 	amounts to each of the state's county fairs to 
7.12 	preserve and promote Minnesota agriculture; 
7.13 	and
7.14 	(2) $1,500,000 the first year and $1,500,000 
7.15 	the second year are for incentive payments 
7.16 	under Minnesota Statutes, sections 41A.16, 
7.17 	41A.17, and 41A.18. Notwithstanding 
7.18 	Minnesota Statutes, section 16A.28, the first 
7.19 	year appropriation is available until June 30, 
7.20 	2021, and the second year appropriation is 
7.21 	available until June 30, 2022. If this 
7.22 	appropriation exceeds the total amount for 
7.23 	which all producers are eligible in a fiscal 
7.24 	year, the balance of the appropriation is 
7.25 	available for the agricultural growth, research, 
7.26 	and innovation program.
7.27 	The commissioner may use up to $2,000,000 
7.28 	per year of the funds appropriated under this 
7.29 	subdivision to award value-added agriculture 
7.30 	grants of between $200,000 and $1,000,000 
7.31 	per grant for new or expanding agricultural 
7.32 	production or processing facilities that provide 
7.33 	significant economic impact to the region.
8.1 	Appropriations in clauses (1) and (2) are 
8.2 	onetime. Any unencumbered balance does not 
8.3 	cancel at the end of the first year and is 
8.4 	available for the second year. Notwithstanding 
8.5 	Minnesota Statutes, section 16A.28, 
8.6 	appropriations encumbered under contract on 
8.7 	or before June 30, 2021, for agricultural 
8.8 	growth, research, and innovation grants are 
8.9 	available until June 30, 2024.
8.10 	The base budget for the agricultural growth, 
8.11 	research, and innovation program is 
8.12 	$14,275,000 for fiscal years 2022 and 2023 
8.13 	and includes funding for incentive payments 
8.14 	under Minnesota Statutes, sections 41A.16, 
8.15 	41A.17, 41A.18, and 41A.20.
8.16 	$25,000 the first year and $25,000 the second 
8.17 	year are for grants to the Southern Minnesota 
8.18 	Initiative Foundation to promote local foods 
8.19 	through an annual event that raises public 
8.20 	awareness of local foods and connects local 
8.21 	food producers and processors with potential 
8.22 	buyers.

8.23
8.24	Subd. 5.Administration and Financial 
Assistance
 		8,085,000
		7,760,000
	
8.25 	(a) $474,000 the first year and $474,000 the 
8.26 	second year are for payments to county and 
8.27 	district agricultural societies and associations 
8.28 	under Minnesota Statutes, section 38.02, 
8.29 	subdivision 1. Aid payments to county and 
8.30 	district agricultural societies and associations 
8.31 	shall be disbursed no later than July 15 of each 
8.32 	year. These payments are the amount of aid 
8.33 	from the state for an annual fair held in the 
8.34 	previous calendar year.
9.1 	(b) $1,000 the first year and $1,000 the second 
9.2 	year are for grants to the Minnesota State 
9.3 	Poultry Association.
9.4 	(c) $18,000 the first year and $18,000 the 
9.5 	second year are for grants to the Minnesota 
9.6 	Livestock Breeders Association.
9.7 	(d) $47,000 the first year and $47,000 the 
9.8 	second year are for the Northern Crops 
9.9 	Institute. These appropriations may be spent 
9.10 	to purchase equipment.
9.11 	(e) $267,000 the first year and $267,000 the 
9.12 	second year are for farm advocate services.
9.13 	(f) $17,000 the first year and $17,000 the 
9.14 	second year are for grants to the Minnesota 
9.15 	Horticultural Society.
9.16 	(g) $228,000 the first year and $228,000 the 
9.17 	second year are for transfer to the Board of 
9.18 	Trustees of the Minnesota State Colleges and 
9.19 	Universities for statewide mental health 
9.20 	counseling support to farm families and 
9.21 	business operators. South Central College shall 
9.22 	serve as the fiscal agent.
9.23 	(h) $550,000 the first year and $550,000 the 
9.24 	second year are for grants to Second Harvest 
9.25 	Heartland on behalf of Minnesota's six 
9.26 	Feeding America food banks for the purchase 
9.27 	of milk for distribution to Minnesota's food 
9.28 	shelves and other charitable organizations that 
9.29 	are eligible to receive food from the food 
9.30 	banks. Milk purchased under the grants must 
9.31 	be acquired from Minnesota milk processors 
9.32 	and based on low-cost bids. The milk must be 
9.33 	allocated to each Feeding America food bank 
9.34 	serving Minnesota according to the formula 
10.1 	used in the distribution of United States 
10.2 	Department of Agriculture commodities under 
10.3 	The Emergency Food Assistance Program 
10.4 	(TEFAP). Second Harvest Heartland must 
10.5 	submit quarterly reports to the commissioner 
10.6 	on forms prescribed by the commissioner. The 
10.7 	reports must include, but are not limited to, 
10.8 	information on the expenditure of funds, the 
10.9 	amount of milk purchased, and the 
10.10 	organizations to which the milk was 
10.11 	distributed. Second Harvest Heartland may 
10.12 	enter into contracts or agreements with food 
10.13 	banks for shared funding or reimbursement of 
10.14 	the direct purchase of milk. Each food bank 
10.15 	receiving money from this appropriation may 
10.16 	use up to two percent of the grant for 
10.17 	administrative expenses. Any unencumbered 
10.18 	balance does not cancel at the end of the first 
10.19 	year and is available for the second year.
10.20 	(i) $1,100,000 the first year and $1,100,000 
10.21 	the second year are for grants to Second 
10.22 	Harvest Heartland on behalf of the six Feeding 
10.23 	America food banks that serve Minnesota to 
10.24 	compensate agricultural producers and 
10.25 	processors for costs incurred to harvest and 
10.26 	package for transfer surplus fruits, vegetables, 
10.27 	and other agricultural commodities that would 
10.28 	otherwise go unharvested, be discarded, or 
10.29 	sold in a secondary market. Surplus 
10.30 	commodities must be distributed statewide to 
10.31 	food shelves and other charitable organizations 
10.32 	that are eligible to receive food from the food 
10.33 	banks. Surplus food acquired under this 
10.34 	appropriation must be from Minnesota 
10.35 	producers and processors. Second Harvest 
10.36 	Heartland must report in the form prescribed 
11.1 	by the commissioner. Second Harvest 
11.2 	Heartland may use up to 15 percent of each 
11.3 	grant for matching administrative and 
11.4 	transportation expenses. Any unencumbered 
11.5 	balance does not cancel at the end of the first 
11.6 	year and is available for the second year.
11.7 	(j) $150,000 the first year and $150,000 the 
11.8 	second year are for grants to the Center for 
11.9 	Rural Policy and Development.
11.10 	(k) $235,000 the first year and $235,000 the 
11.11 	second year are for grants to the Minnesota 
11.12 	Agricultural Education and Leadership 
11.13 	Council for programs of the council under 
11.14 	Minnesota Statutes, chapter 41D.

11.15	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,935,000
	$
	6,256,000

11.16
11.17	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,897,000
	$
	3,900,000

11.18 	Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as 
11.19 	amended by Laws 2016, chapter 184, section 11, Laws 2016, chapter 189, article 2, section 
11.20 	26, and Laws 2017, chapter 88, article 1, section 5, is amended to read:

11.21
11.22	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		14,993,000
		18,316,000
	
11.23 	$4,483,000 the first year and $8,500,000 the 
11.24 	second year are for transfer to the agriculture 
11.25 	research, education, extension, and technology 
11.26 	transfer account under Minnesota Statutes, 
11.27 	section 41A.14, subdivision 3. The transfer in 
11.28 	this paragraph includes money for plant 
11.29 	breeders at the University of Minnesota for 
11.30 	wild rice, potatoes, and grapes. Of these 
11.31 	amounts, at least $600,000 each year is for the 
11.32 	Minnesota Agricultural Experiment Station's 
11.33 	Agriculture Rapid Response Fund under 
11.34 	Minnesota Statutes, section 41A.14, 
12.1 	subdivision 1, clause (2). Of the amount 
12.2 	appropriated in this paragraph, $1,000,000 
12.3 	each year is for transfer to the Board of 
12.4 	Regents of the University of Minnesota for 
12.5 	research to determine (1) what is causing avian 
12.6 	influenza, (2) why some fowl are more 
12.7 	susceptible, and (3) prevention measures that 
12.8 	can be taken. Of the amount appropriated in 
12.9 	this paragraph, $2,000,000 each year is for 
12.10 	grants to the Minnesota Agriculture Education 
12.11 	Leadership Council to enhance agricultural 
12.12 	education with priority given to Farm Business 
12.13 	Management challenge grants. The 
12.14 	commissioner shall transfer the remaining 
12.15 	grant funds in this appropriation each year to 
12.16 	the Board of Regents of the University of 
12.17 	Minnesota for purposes of Minnesota Statutes, 
12.18 	section 41A.14.
12.19 	To the extent practicable, funds expended 
12.20 	under Minnesota Statutes, section 41A.14, 
12.21 	subdivision 1, clauses (1) and (2), must 
12.22 	supplement and not supplant existing sources 
12.23 	and levels of funding. The commissioner may 
12.24 	use up to 4.5 percent of this appropriation for 
12.25 	costs incurred to administer the program. Any 
12.26 	unencumbered balance does not cancel at the 
12.27 	end of the first year and is available for the 
12.28 	second year.
12.29 	$10,235,000 the first year and $9,541,000 the 
12.30 	second year are for the agricultural growth, 
12.31 	research, and innovation program in 
12.32 	Minnesota Statutes, section 41A.12. No later 
12.33 	than February 1, 2016, and February 1, 2017, 
12.34 	the commissioner must report to the legislative 
12.35 	committees with jurisdiction over agriculture 
13.1 	policy and finance regarding the 
13.2 	commissioner's accomplishments and 
13.3 	anticipated accomplishments in the following 
13.4 	areas: facilitating the start-up, modernization, 
13.5 	or expansion of livestock operations including 
13.6 	beginning and transitioning livestock 
13.7 	operations; developing new markets for 
13.8 	Minnesota farmers by providing more fruits, 
13.9 	vegetables, meat, grain, and dairy for 
13.10 	Minnesota school children; assisting 
13.11 	value-added agricultural businesses to begin 
13.12 	or expand, access new markets, or diversify 
13.13 	products; developing urban agriculture; 
13.14 	facilitating the start-up, modernization, or 
13.15 	expansion of other beginning and transitioning 
13.16 	farms including loans under Minnesota 
13.17 	Statutes, section 41B.056; sustainable 
13.18 	agriculture on farm research and 
13.19 	demonstration; development or expansion of 
13.20 	food hubs and other alternative 
13.21 	community-based food distribution systems; 
13.22 	incentive payments under Minnesota Statutes, 
13.23 	sections 41A.16, 41A.17, and 41A.18; and 
13.24 	research on bioenergy, biobased content, or 
13.25 	biobased formulated products and other 
13.26 	renewable energy development. The 
13.27 	commissioner may use up to 4.5 percent of 
13.28 	this appropriation for costs incurred to 
13.29 	administer the program. Any unencumbered 
13.30 	balance does not cancel at the end of the first 
13.31 	year and is available for the second year. 
13.32 	Notwithstanding Minnesota Statutes, section 
13.33 	16A.28, the appropriations encumbered under 
13.34 	contract on or before June 30, 2017, for 
13.35 	agricultural growth, research, and innovation 
13.36 	grants are available until June 30, 2019 2020.
14.1 	The commissioner may use funds appropriated 
14.2 	for the agricultural growth, research, and 
14.3 	innovation program as provided in this 
14.4 	paragraph. The commissioner may award 
14.5 	grants to owners of Minnesota facilities 
14.6 	producing bioenergy, biobased content, or a 
14.7 	biobased formulated product; to organizations 
14.8 	that provide for on-station, on-farm field scale 
14.9 	research and outreach to develop and test the 
14.10 	agronomic and economic requirements of 
14.11 	diverse strands of prairie plants and other 
14.12 	perennials for bioenergy systems; or to certain 
14.13 	nongovernmental entities. For the purposes of 
14.14 	this paragraph, "bioenergy" includes 
14.15 	transportation fuels derived from cellulosic 
14.16 	material, as well as the generation of energy 
14.17 	for commercial heat, industrial process heat, 
14.18 	or electrical power from cellulosic materials 
14.19 	via gasification or other processes. Grants are 
14.20 	limited to 50 percent of the cost of research, 
14.21 	technical assistance, or equipment related to 
14.22 	bioenergy, biobased content, or biobased 
14.23 	formulated product production or $500,000, 
14.24 	whichever is less. Grants to nongovernmental 
14.25 	entities for the development of business plans 
14.26 	and structures related to community ownership 
14.27 	of eligible bioenergy facilities together may 
14.28 	not exceed $150,000. The commissioner shall 
14.29 	make a good-faith effort to select projects that 
14.30 	have merit and, when taken together, represent 
14.31 	a variety of bioenergy technologies, biomass 
14.32 	feedstocks, and geographic regions of the 
14.33 	state. Projects must have a qualified engineer 
14.34 	provide certification on the technology and 
14.35 	fuel source. Grantees must provide reports at 
14.36 	the request of the commissioner.
15.1 	Of the amount appropriated for the agricultural 
15.2 	growth, research, and innovation program in 
15.3 	this subdivision, $1,000,000 the first year and 
15.4 	$1,000,000 the second year are for distribution 
15.5 	in equal amounts to each of the state's county 
15.6 	fairs to preserve and promote Minnesota 
15.7 	agriculture.
15.8 	Of the amount appropriated for the agricultural 
15.9 	growth, research, and innovation program in 
15.10 	this subdivision, $500,000 in fiscal year 2016 
15.11 	and $806,000 in fiscal year 2017 are for 
15.12 	incentive payments under Minnesota Statutes, 
15.13 	sections 41A.16, 41A.17, and 41A.18. If the 
15.14 	appropriation exceeds the total amount for 
15.15 	which all producers are eligible in a fiscal 
15.16 	year, the balance of the appropriation is 
15.17 	available to the commissioner for the 
15.18 	agricultural growth, research, and innovation 
15.19 	program. Notwithstanding Minnesota Statutes, 
15.20 	section 16A.28, the first year appropriation is 
15.21 	available until June 30, 2017, and the second 
15.22 	year appropriation is available until June 30, 
15.23 	2018. The commissioner may use up to 4.5 
15.24 	percent of the appropriation for administration 
15.25 	of the incentive payment programs.
15.26 	Of the amount appropriated for the agricultural 
15.27 	growth, research, and innovation program in 
15.28 	this subdivision, $250,000 the first year is for 
15.29 	grants to communities to develop or expand 
15.30 	food hubs and other alternative 
15.31 	community-based food distribution systems. 
15.32 	Of this amount, $50,000 is for the 
15.33 	commissioner to consult with existing food 
15.34 	hubs, alternative community-based food 
15.35 	distribution systems, and University of 
16.1 	Minnesota Extension to identify best practices 
16.2 	for use by other Minnesota communities. No 
16.3 	later than December 15, 2015, the 
16.4 	commissioner must report to the legislative 
16.5 	committees with jurisdiction over agriculture 
16.6 	and health regarding the status of emerging 
16.7 	alternative community-based food distribution 
16.8 	systems in the state along with 
16.9 	recommendations to eliminate any barriers to 
16.10 	success. Any unencumbered balance does not 
16.11 	cancel at the end of the first year and is 
16.12 	available for the second year. This is a onetime 
16.13 	appropriation.
16.14 	$250,000 the first year and $250,000 the 
16.15 	second year are for grants that enable retail 
16.16 	petroleum dispensers to dispense biofuels to 
16.17 	the public in accordance with the biofuel 
16.18 	replacement goals established under 
16.19 	Minnesota Statutes, section 239.7911. A retail 
16.20 	petroleum dispenser selling petroleum for use 
16.21 	in spark ignition engines for vehicle model 
16.22 	years after 2000 is eligible for grant money 
16.23 	under this paragraph if the retail petroleum 
16.24 	dispenser has no more than 15 retail petroleum 
16.25 	dispensing sites and each site is located in 
16.26 	Minnesota. The grant money received under 
16.27 	this paragraph must be used for the installation 
16.28 	of appropriate technology that uses fuel 
16.29 	dispensing equipment appropriate for at least 
16.30 	one fuel dispensing site to dispense gasoline 
16.31 	that is blended with 15 percent of 
16.32 	agriculturally derived, denatured ethanol, by 
16.33 	volume, and appropriate technical assistance 
16.34 	related to the installation. A grant award must 
16.35 	not exceed 85 percent of the cost of the 
16.36 	technical assistance and appropriate 
17.1 	technology, including remetering of and 
17.2 	retrofits for retail petroleum dispensers and 
17.3 	replacement of petroleum dispenser projects. 
17.4 	The commissioner may use up to $35,000 of 
17.5 	this appropriation for administrative expenses. 
17.6 	The commissioner shall cooperate with biofuel 
17.7 	stakeholders in the implementation of the grant 
17.8 	program. The commissioner must report to 
17.9 	the legislative committees with jurisdiction 
17.10 	over agriculture policy and finance by 
17.11 	February 1 each year, detailing the number of 
17.12 	grants awarded under this paragraph and the 
17.13 	projected effect of the grant program on 
17.14 	meeting the biofuel replacement goals under 
17.15 	Minnesota Statutes, section 239.7911. These 
17.16 	are onetime appropriations.
17.17 	$25,000 the first year and $25,000 the second 
17.18 	year are for grants to the Southern Minnesota 
17.19 	Initiative Foundation to promote local foods 
17.20 	through an annual event that raises public 
17.21 	awareness of local foods and connects local 
17.22 	food producers and processors with potential 
17.23 	buyers.

17.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.25 	Sec. 6. Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

17.26	Subd. 2.Protection Services
 		17,821,000
		17,825,000

17.27	Appropriations by Fund
	
17.28		2018
	2019
	
17.29	General
	17,428,000
	17,428,000
	
17.30	Remediation
	393,000
	397,000
	
17.31 	(a) $25,000 the first year and $25,000 the 
17.32 	second year are to develop and maintain 
17.33 	cottage food license exemption outreach and 
17.34 	training materials.
18.1 	(b) $75,000 the first year and $75,000 the 
18.2 	second year are to coordinate the correctional 
18.3 	facility vocational training program and to 
18.4 	assist entities that have explored the feasibility 
18.5 	of establishing a USDA-certified or state 
18.6 	"equal to" food processing facility within 30 
18.7 	miles of the Northeast Regional Corrections 
18.8 	Center.
18.9 	(c) $125,000 the first year and $125,000 the 
18.10 	second year are for additional funding for the 
18.11 	noxious weed and invasive plant program. 
18.12 	These are onetime appropriations.
18.13 	(d) $250,000 the first year and $250,000 the 
18.14 	second year are for transfer to the pollinator 
18.15 	habitat and research account in the agricultural 
18.16 	fund. These are onetime transfers.
18.17 	(e) $393,000 the first year and $397,000 the 
18.18 	second year are from the remediation fund for 
18.19 	administrative funding for the voluntary 
18.20 	cleanup program.
18.21 	(f) $200,000 the first year and $200,000 the 
18.22 	second year are for the industrial hemp pilot 
18.23 	program under Minnesota Statutes, section 
18.24 	18K.09. These are onetime appropriations.
18.25 	(g) $175,000 the first year and $175,000 the 
18.26 	second year are for compensation for 
18.27 	destroyed or crippled livestock under 
18.28 	Minnesota Statutes, section 3.737. This 
18.29 	appropriation may be spent to compensate for 
18.30 	livestock that were destroyed or crippled 
18.31 	during fiscal year 2017. If the amount in the 
18.32 	first year is insufficient, the amount in the 
18.33 	second year is available in the first year. The 
18.34 	commissioner may use up to $5,000 of this 
19.1 	appropriation the second year to reimburse 
19.2 	expenses incurred by university extension 
19.3 	agents to provide fair market values of 
19.4 	destroyed or crippled livestock.
19.5 	(h) $155,000 the first year and $155,000 the 
19.6 	second year are for compensation for crop 
19.7 	damage under Minnesota Statutes, section 
19.8 	3.7371. If the amount in the first year is 
19.9 	insufficient, the amount in the second year is 
19.10 	available in the first year. The commissioner 
19.11 	may use up to $30,000 of the appropriation 
19.12 	each year to reimburse expenses incurred by 
19.13 	the commissioner or the commissioner's 
19.14 	approved agent to investigate and resolve 
19.15 	claims.
19.16 	If the commissioner determines that claims 
19.17 	made under Minnesota Statutes, section 3.737
19.18 	or 3.7371, are unusually high, amounts 
19.19 	appropriated for either program may be 
19.20 	transferred to the appropriation for the other 
19.21 	program.
19.22 	(i) $250,000 the first year and $250,000 the 
19.23 	second year are to expand current capabilities 
19.24 	for rapid detection, identification, containment, 
19.25 	control, and management of high priority plant 
19.26 	pests and pathogens. These are onetime 
19.27 	appropriations.
19.28 	(j) $300,000 the first year and $300,000 the 
19.29 	second year are for transfer to the noxious 
19.30 	weed and invasive plant species assistance 
19.31 	account in the agricultural fund to award 
19.32 	grants to local units of government under 
19.33 	Minnesota Statutes, section 18.90, with 
19.34 	preference given to local units of government 
19.35 	responding to Palmer amaranth or other weeds 
20.1 	on the eradicate list. These are onetime 
20.2 	transfers.
20.3 	(k) $120,000 the first year and $120,000 the 
20.4 	second year are for wolf-livestock conflict 
20.5 	prevention grants under article 2, section 89. 
20.6 	The commissioner must submit a report to the 
20.7 	chairs and ranking minority members of the 
20.8 	legislative committees with jurisdiction over 
20.9 	agriculture policy and finance by January 15, 
20.10 	2020, on the outcomes of the wolf-livestock 
20.11 	conflict prevention grants and whether 
20.12 	livestock compensation claims were reduced 
20.13 	in the areas that grants were awarded. These 
20.14 	are onetime appropriations.

20.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.16 	Sec. 7. Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

20.17
20.18	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
	
20.19 	(a) $9,300,000 the first year and $9,300,000 
20.20 	the second year are for transfer to the 
20.21 	agriculture research, education, extension, and 
20.22 	technology transfer account under Minnesota 
20.23 	Statutes, section 41A.14, subdivision 3. Of 
20.24 	these amounts: at least $600,000 the first year 
20.25 	and $600,000 the second year are for the 
20.26 	Minnesota Agricultural Experiment Station's 
20.27 	agriculture rapid response fund under 
20.28 	Minnesota Statutes, section 41A.14, 
20.29 	subdivision 1, clause (2); $2,000,000 the first 
20.30 	year and $2,000,000 the second year are for 
20.31 	grants to the Minnesota Agriculture Education 
20.32 	Leadership Council to enhance agricultural 
20.33 	education with priority given to Farm Business 
20.34 	Management challenge grants; $350,000 the 
21.1 	first year and $350,000 the second year are 
21.2 	for potato breeding; and $450,000 the first 
21.3 	year and $450,000 the second year are for the 
21.4 	cultivated wild rice breeding project at the 
21.5 	North Central Research and Outreach Center 
21.6 	to include a tenure track/research associate 
21.7 	plant breeder. The commissioner shall transfer 
21.8 	the remaining funds in this appropriation each 
21.9 	year to the Board of Regents of the University 
21.10 	of Minnesota for purposes of Minnesota 
21.11 	Statutes, section 41A.14. Of the amount 
21.12 	transferred to the Board of Regents, up to 
21.13 	$1,000,000 each year is for research on avian 
21.14 	influenza, including prevention measures that 
21.15 	can be taken.
21.16 	To the extent practicable, funds expended 
21.17 	under Minnesota Statutes, section 41A.14, 
21.18 	subdivision 1, clauses (1) and (2), must 
21.19 	supplement and not supplant existing sources 
21.20 	and levels of funding. The commissioner may 
21.21 	use up to one percent of this appropriation for 
21.22 	costs incurred to administer the program.
21.23 	(b) $13,256,000 the first year and $13,311,000 
21.24 	the second year are for the agricultural growth, 
21.25 	research, and innovation program in 
21.26 	Minnesota Statutes, section 41A.12. Except 
21.27 	as provided below, the commissioner may 
21.28 	allocate the appropriation each year among 
21.29 	the following areas: facilitating the start-up, 
21.30 	modernization, or expansion of livestock 
21.31 	operations including beginning and 
21.32 	transitioning livestock operations; developing 
21.33 	new markets for Minnesota farmers by 
21.34 	providing more fruits, vegetables, meat, grain, 
21.35 	and dairy for Minnesota school children; 
22.1 	assisting value-added agricultural businesses 
22.2 	to begin or expand, access new markets, or 
22.3 	diversify; providing funding not to exceed 
22.4 	$250,000 each year for urban youth 
22.5 	agricultural education or urban agriculture 
22.6 	community development; providing funding 
22.7 	not to exceed $250,000 each year for the good 
22.8 	food access program under Minnesota 
22.9 	Statutes, section 17.1017; facilitating the 
22.10 	start-up, modernization, or expansion of other 
22.11 	beginning and transitioning farms including 
22.12 	by providing loans under Minnesota Statutes, 
22.13 	section 41B.056; sustainable agriculture 
22.14 	on-farm research and demonstration; 
22.15 	development or expansion of food hubs and 
22.16 	other alternative community-based food 
22.17 	distribution systems; enhancing renewable 
22.18 	energy infrastructure and use; crop research; 
22.19 	Farm Business Management tuition assistance; 
22.20 	good agricultural practices/good handling 
22.21 	practices certification assistance; establishing 
22.22 	and supporting farmer-led water management 
22.23 	councils; and implementing farmer-led water 
22.24 	quality improvement practices. The 
22.25 	commissioner may use up to 6.5 percent of 
22.26 	this appropriation for costs incurred to 
22.27 	administer the program.
22.28 	Of the amount appropriated for the agricultural 
22.29 	growth, research, and innovation program in 
22.30 	Minnesota Statutes, section 41A.12:
22.31 	(1) $1,000,000 the first year and $1,000,000 
22.32 	the second year are for distribution in equal 
22.33 	amounts to each of the state's county fairs to 
22.34 	preserve and promote Minnesota agriculture; 
22.35 	and
23.1 	(2) $1,500,000 the first year and $1,500,000 
23.2 	the second year are for incentive payments 
23.3 	under Minnesota Statutes, sections 41A.16, 
23.4 	41A.17, and 41A.18. Notwithstanding 
23.5 	Minnesota Statutes, section 16A.28, the first 
23.6 	year appropriation is available until June 30, 
23.7 	2019, and the second year appropriation is 
23.8 	available until June 30, 2020. If this 
23.9 	appropriation exceeds the total amount for 
23.10 	which all producers are eligible in a fiscal 
23.11 	year, the balance of the appropriation is 
23.12 	available for the agricultural growth, research, 
23.13 	and innovation program.
23.14 	The commissioner may use funds appropriated 
23.15 	under this subdivision to award up to two 
23.16 	value-added agriculture grants per year of up 
23.17 	to $1,000,000 per grant for new or expanding 
23.18 	agricultural production or processing facilities 
23.19 	that provide significant economic impact to 
23.20 	the region. The commissioner may use funds 
23.21 	appropriated under this subdivision for 
23.22 	additional value-added agriculture grants for 
23.23 	awards between $1,000 and $200,000 per 
23.24 	grant.
23.25 	Appropriations in clauses (1) and (2) are 
23.26 	onetime. Any unencumbered balance does not 
23.27 	cancel at the end of the first year and is 
23.28 	available for the second year. Notwithstanding 
23.29 	Minnesota Statutes, section 16A.28, 
23.30 	appropriations encumbered under contract on 
23.31 	or before June 30, 2019, for agricultural 
23.32 	growth, research, and innovation grants are 
23.33 	available until June 30, 2021 2022.
23.34 	The base budget for the agricultural growth, 
23.35 	research, and innovation program is 
24.1 	$14,275,000 for fiscal years 2020 and 2021 
24.2 	and includes funding for incentive payments 
24.3 	under Minnesota Statutes, sections 41A.16, 
24.4 	41A.17, 41A.18, and 41A.20.
24.5 	The commissioner must develop additional 
24.6 	innovative production incentive programs to 
24.7 	be funded by the agricultural growth, research, 
24.8 	and innovation program.
24.9 	The commissioner must consult with the 
24.10 	commissioner of transportation, the 
24.11 	commissioner of administration, and local 
24.12 	units of government to identify parcels of 
24.13 	publicly owned land that are suitable for urban 
24.14 	agriculture.
24.15 	(c) $25,000 the first year and $25,000 the 
24.16 	second year are for grants to the Southern 
24.17 	Minnesota Initiative Foundation to promote 
24.18 	local foods through an annual event that raises 
24.19 	public awareness of local foods and connects 
24.20 	local food producers and processors with 
24.21 	potential buyers.

24.22 	EFFECTIVE DATE. This section is effective the day following final enactment.