HF 2278

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/12/2023 06:42pm

A bill for an act
relating to state government; establishing a budget for the Department of
Agriculture, the Board of Animal Health, the Agricultural Utilization Research
Institute, and the Office of Broadband Development; transferring money to the
border-to-border broadband fund account; making policy and technical changes
to agriculture provisions; modifying fees; creating accounts; requiring reports;
providing civil penalties; appropriating money; amending Minnesota Statutes
2022, sections 17.055, subdivision 1, by adding subdivisions; 17.1016, subdivision
2; 17.116, subdivision 3; 17.133, subdivision 3; 18B.01, subdivision 2b, by adding
a subdivision; 18B.051; 18B.055; 18C.425, subdivision 6; 18H.02, by adding a
subdivision; 18H.03, subdivision 6; 18H.05; 18H.07, by adding subdivisions;
18H.08, subdivision 2; 18H.09; 18H.13, subdivision 3; 18H.15; 18K.04,
subdivisions 1, 2; 18K.06; 25.39, subdivision 1; 28A.08, by adding a subdivision;
28A.082, subdivision 1; 28A.09, by adding a subdivision; 35.02, subdivision 1;
35.05; 41A.12, subdivision 4; 41A.16, subdivisions 1, 2; 41A.17, subdivisions 1,
2; 41A.18, subdivisions 1, 2; 41A.19; 116J.395, subdivision 7; 116J.396,
subdivision 2; 223.16, by adding a subdivision; 223.17, subdivisions 7, 7a; 223.175;
223.19; 232.22, subdivision 5; Laws 2021, First Special Session chapter 3, article
1, section 2, subdivision 5, as amended; Laws 2022, chapter 95, article 2, section
29, subdivision 6; article 4, section 2; proposing coding for new law in Minnesota
Statutes, chapters 17; 18B; 18K; 116J; 223; repealing Minnesota Statutes 2022,
sections 17.055, subdivision 2; 18H.02, subdivisions 21, 22, 23; 18H.07,
subdivisions 2, 3; 18K.05; 18K.09; 35.156, subdivision 2; 41A.16, subdivision 7;
41A.17, subdivision 6; 41A.18, subdivision 6; 41A.21, subdivision 6; 223.17,
subdivisions 4, 8; 232.22, subdivisions 4, 6, 6a, 7.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 90,969,000 new text end

new text begin $ new text end

new text begin 73,029,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 90,570,000 new text end	new text begin 72,630,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

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

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 29,666,000 new text end	new text begin 17,610,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin (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.
new text end

new text begin (b) $250,000 the first year and $250,000 the
second year are for the soil health financial
assistance program. The commissioner may
use up to 6.5 percent of this appropriation for
costs incurred to administer the program. This
is a onetime appropriation. Any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
Appropriations encumbered under contract on
or before June 30, 2025, for soil health
financial assistance grants are available until
June 30, 2027.
new text end

new text begin (c) $2,500,000 the first year is for transfer to
the pollinator research account established
under Minnesota Statutes, section 18B.051.
new text end

new text begin (d) $400,000 the first year and $400,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account established under Minnesota Statutes,
section 18.89, to award grants to local units
of government and Tribal Nations under
Minnesota Statutes, section 18.90.
new text end

new text begin (e) $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 2023. 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.
new text end

new text begin (f) $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 $40,000 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.
new text end

new text begin (g) $5,000,000 the first year is for transfer to
the grain indemnity account established under
Minnesota Statutes, section 223.24.
new text end

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

new text begin (i) $75,000 the first year and $75,000 the
second year are to support a meat processing
liaison position to assist new or existing meat
and poultry processing operations in getting
started, expanding, growing, or transitioning
into new business models.
new text end

new text begin (j) $500,000 the first year and $500,000 the
second year are for grants to organizations in
Minnesota to develop enterprises, supply
chains, and markets for continuous living
cover crops and cropping systems in the early
stages of commercial development. For the
purposes of this paragraph, "continuous living
cover crops and cropping systems" refers to
agroforestry, perennial biomass, perennial
forage, perennial grains, and winter annual
cereal grains and oilseeds that have market
value as harvested or grazed commodities.
The commissioner may use up to 6.5 percent
of this appropriation for costs incurred to
administer the program. This is a onetime
appropriation.
new text end

new text begin (k) $1,126,000 the first year and $562,000 the
second year are to identify and regulate
pesticides containing perfluoroalkyl or
polyfluoroalkyl substances.
new text end

new text begin (l) $100,000 the first year is to regulate
systemic pesticide-treated seed.
new text end

new text begin (m) $65,000 the first year is for transfer to the
commissioner of natural resources for a report
on feral pigs and mink.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 4,365,000 new text end

new text begin 4,365,000 new text end

new text begin (a) $150,000 the first year and $150,000 the
second year are to expand international trade
opportunities and markets for Minnesota
agricultural products. The base for this
appropriation is $75,000 in fiscal year 2026
and $75,000 in fiscal year 2027.
new text end

new text begin (b) $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 established under
Minnesota Statutes, section 17.102.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered under
contract on or before June 30, 2025, for
Minnesota grown grants in this paragraph are
available until June 30, 2027.
new text end

new text begin (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.
new text end

new text begin (d) $200,000 the first year and $200,000 the
second year are to award cooperative grants
under Minnesota Statutes, section 17.1016.
The commissioner may use up to six percent
of the appropriation each year to administer
the grant program.
new text end

new text begin (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.
new text end

new text begin Subd. 4. new text end new text begin Agriculture, Bioenergy, and Bioproduct Advancement new text end

new text begin 34,982,000 new text end

new text begin 33,982,000 new text end

new text begin (a) $11,740,000 the first year and $10,740,000
the second year are for the agriculture
research, education, extension, and technology
transfer program under Minnesota Statutes,
section 41A.14. Except as provided below,
the appropriation each year is for transfer to
the agriculture research, education, extension,
and technology transfer account under
Minnesota Statutes, section 41A.14,
subdivision 3, and the commissioner shall
transfer funds each year to the Board of
Regents of the University of Minnesota for
purposes of Minnesota Statutes, section
41A.14. 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.
new text end

new text begin Of the amount appropriated for the agriculture
research, education, extension, and technology
transfer grant program under Minnesota
Statutes, section 41A.14:
new text end

new text begin (1) $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);
new text end

new text begin (2) up to $1,000,000 the first year and up to
$1,000,000 the second year are for research
on avian influenza, salmonella, and other
turkey-related diseases;
new text end

new text begin (3) $2,250,000 the first year and $2,250,000
the second year are for grants to the Minnesota
Agricultural Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants;
new text end

new text begin (4) $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;
new text end

new text begin (5) $350,000 the first year and $350,000 the
second year are for potato breeding;
new text end

new text begin (6) $690,000 the first year and $690,000 the
second year are 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. The base for the allocation under
this clause is $630,000 in fiscal year 2026 and
thereafter;
new text end

new text begin (7) $1,000,000 the first year is to purchase and
maintain equipment and physical infrastructure
to support breeding, agronomic research, and
food science activities of the Forever Green
Initiative. The allocation in this clause is
onetime; and
new text end

new text begin (8) $500,000 each year is for farm-scale winter
greenhouse research and development
coordinated by University of Minnesota
Extension Regional Sustainable Development
Partnerships. The allocation in this clause is
onetime.
new text end

new text begin (b) The base for the agriculture research,
education, extension, and technology transfer
program is $10,180,000 in fiscal year 2026
and $10,180,000 in fiscal year 2027.
new text end

new text begin (c) $23,242,000 the first year and $23,242,000
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 this 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; assisting value-added agricultural
businesses to begin or expand, to access new
markets, or to diversify, including aquaponics
systems; 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; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed 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.
new text end

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

new text begin (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;
new text end

new text begin (2) $6,750,000 the first year and $6,750,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Of the amount
allocated each year, $1,000,000 is to pay prior
claims that were not fully paid.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2025, and the second
year appropriation is available until June 30,
2026. 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
paragraph. The base under this clause is
$5,750,000 in fiscal year 2026 and thereafter
and does not include funding to pay prior
claims that were not fully paid;
new text end

new text begin (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 the commissioner 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;
new text end

new text begin (4) $100,000 the first year and $100,000 the
second year are for grants to facilitate the
start-up, modernization, or expansion of
copacking facilities, commercial kitchens, and
other key supply chain infrastructure, such as
shared cold-chain capacity. Money
appropriated in this clause may also be used
to assist value-added processors with food
safety and environmental sustainability
guideline planning and third-party certification
services;
new text end

new text begin (5) $1,250,000 the first year and $1,250,000
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, 2026, and may be used for other
purposes under this paragraph. The base under
this clause is $250,000 in fiscal year 2026 and
thereafter;
new text end

new text begin (6) $1,000,000 the first year and $1,000,000
the second year are to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
schools and early childhood education centers,
including, at the commissioner's discretion,
reimbursing schools and early childhood
education centers for purchases from local
farmers;
new text end

new text begin (7) $1,000,000 the first year and $1,000,000
the second year are for urban youth
agricultural education or urban agriculture
community development;
new text end

new text begin (8) $500,000 the first year and $500,000 the
second year are for the good food access
program under Minnesota Statutes, section
17.1017; and
new text end

new text begin (9) $1,000,000 the first year and $1,000,000
the second year are to award and administer
hemp fiber processing equipment grants under
Minnesota Statutes, section 18K.10. The
allocation in this clause is onetime.
new text end

new text begin 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, 2025, for agricultural
growth, research, and innovation grants are
available until June 30, 2028.
new text end

new text begin (d) The base for the agricultural growth,
research, and innovation program is
$16,079,000 in fiscal year 2026 and
$16,079,000 in fiscal year 2027, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.
new text end

new text begin Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 21,557,000 new text end

new text begin 16,673,000 new text end

new text begin (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
must 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.
new text end

new text begin (b) $350,000 the first year and $350,000 the
second year are for grants to the Minnesota
Agricultural Education Leadership Council
for programs of the council under Minnesota
Statutes, chapter 41D.
new text end

new text begin (c) $1,425,000 the first year and $1,425,000
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.
new text end

new text begin (d) $1,950,000 the first year and $1,950,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following:
new text end

new text begin (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;
new text end

new text begin (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 be
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,
processors, and food hubs. Second Harvest
Heartland may use up to 15 percent of each
grant awarded under this clause for
administrative and transportation expenses;
and
new text end

new text begin (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,
producers, and food hubs.
new text end

new text begin Of the amount appropriated under this
paragraph, at least $850,000 each year must
be allocated under clause (1) and at least
$100,000 each year must be used to purchase
eligible items from food hubs that aggregate
food produced by emerging farmers.
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.
new text end

new text begin (e) $100,000 the first year and $100,000 the
second year are for grants to The Good Acre
for the Local Emergency Assistance Farmer
Fund program to compensate emerging
farmers for crops donated to hunger relief
organizations in Minnesota. This is a onetime
appropriation.
new text end

new text begin (f) $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.
new text end

new text begin (g) $400,000 the first year and $400,000 the
second year are to expand the Emerging
Farmer Office. The Emerging Farmer Office
must engage and support emerging farmers
regarding resources and opportunities
available through the Department of
Agriculture and throughout the state. For
purposes of this paragraph, "emerging farmer"
has the meaning given in Minnesota Statutes,
section 17.055, subdivision 1. Of the amount
appropriated each year, $25,000 is for
translation services.
new text end

new text begin (h) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of the amount appropriated each year, $50,000
is for the continuation of the farmland
transition programs and may be used for grants
to farmland access teams to provide technical
assistance to potential beginning farmers.
Farmland access teams must assist existing
farmers and beginning farmers with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.
new text end

new text begin (i) $260,000 the first year and $260,000 the
second year are for 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

new text begin (j) $250,000 the first year and $250,000 the
second year are to award and administer
beginning farmer equipment and infrastructure
grants under Minnesota Statutes, section
17.055.
new text end

new text begin (k) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.
new text end

new text begin (l) $750,000 the first year and $750,000 the
second year are to award and administer down
payment assistance grants under Minnesota
Statutes, section 17.133, to emerging farmers
as defined in Minnesota Statutes, section
17.055, subdivision 1. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance at the end of the first
year does not cancel and is available in the
second year and appropriations encumbered
under contract by June 30, 2025, are available
until June 30, 2027.
new text end

new text begin (m) $50,000 the first 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, 2025.
new text end

new text begin (n) $500,000 the first year and $500,000 the
second year are for meat processing training
and retention incentive grants under section
6. The commissioner may use up to 6.5
percent of this appropriation for costs incurred
to administer the program. This is a onetime
appropriation.
new text end

new text begin (o) $3,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants to Minnesota dairy farmers
who enroll in coverage under a federal dairy
risk protection program and produced no more
than 25,000,000 pounds of milk in 2022. The
commissioner must award DAIRI grants based
on the amount of milk produced in 2022, up
to 5,000,000 pounds per participating
producer, at a rate determined by the
commissioner within the limits of available
funding. Notwithstanding Minnesota Statutes,
section 16A.28, any unencumbered balance
does not cancel at the end of the first year and
is available the second year and any
unencumbered balance at the end of the second
year is available until June 30, 2026. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin (p) $150,000 the first year and $150,000 the
second year are for technical assistance grants
to certified community development financial
institutions that participate in United States
Department of Agriculture loan or grant
programs for small or emerging farmers,
including but not limited to the Increasing
Land, Capital, and Market Access Program.
For purposes of this paragraph, "emerging
farmer" has the meaning given in Minnesota
Statutes, section 17.055, subdivision 1. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin (q) $1,000,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041.
new text end

new text begin (r) $1,584,000 the first year and $1,000,000
the second year are to support IT
modernization efforts, including laying the
technology foundations necessary to improve
customer licensing and payment interactions
with the department. This is a onetime
appropriation.
new text end

new text begin (s) $150,000 the first year and $150,000 the
second year are to coordinate climate-related
activities and services within the Department
of Agriculture and counterparts in local, state,
and federal agencies and to hire a full-time
climate implementation coordinator. The
climate implementation coordinator must
coordinate efforts seeking federal funding for
Minnesota's agricultural climate adaptation
and mitigation efforts and develop strategic
partnerships with the private sector and
nongovernment organizations.
new text end

new text begin (t) $250,000 the first year is for a grant to the
Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with a report submitted by January 3, 2024,
and a final report submitted by September 1,
2025. The reports must include a list of
equipment purchased, including the cost of
each item.
new text end

new text begin (u) $2,500,000 the first year and $2,500,000
the second year are to maintain the current
level of service delivery. The base for this
appropriation is $3,011,000 in fiscal year 2026
and $3,011,000 in fiscal year 2027.
new text end

new text begin (v) $1,000,000 the first year and $1,000,000
the second year are 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 effort must also protect traditional seeds
brought to Minnesota by immigrant
communities. This appropriation includes
funding for associated extension and outreach
to small and Black, Indigenous, and People of
Color (BIPOC) farmers. This is a onetime
appropriation.
new text end

new text begin (w) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.
new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 6,613,000 new text end

new text begin $ new text end

new text begin 6,779,000 new text end

new text begin (a) $560,000 the first year and $560,000 the
second year are for agricultural emergency
preparedness and response. As part of the
fiscal year 2024 and 2025 reports required
under Minnesota Statutes, section 35.03, the
Board of Animal Health must report the
number of additional staff positions created
under this paragraph, the number of full-time
equivalent staff hired under this paragraph and
their specific expertise and training, and the
specific types of incidents and animal diseases
for which the board is preparing.
new text end

new text begin (b) $6,000 the first year and $6,000 the second
year are for meeting expenses for the
additional board members.
new text end

new text begin (c) $166,000 the first year and $332,000 the
second year are to maintain the current level
of service delivery.
new text end

Sec. 4. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 5,643,000 new text end

new text begin $ new text end

new text begin 4,343,000 new text end

new text begin (a) $300,000 the first year is for equipment
upgrades, equipment replacement, installation
expenses, and laboratory infrastructure at the
Agricultural Utilization Research Institute's
laboratories in the cities of Crookston,
Marshall, and Waseca.
new text end

new text begin (b) $1,000,000 the first year is to replace
analytical and processing equipment and make
corresponding facility upgrades at Agricultural
Utilization Research Institute facilities in the
cities of Marshall and Waseca. This is a
onetime appropriation and is available until
June 30, 2026.
new text end

new text begin (c) $300,000 the first year and $300,000 the
second year are to maintain the current level
of service delivery.
new text end

Sec. 5.

Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 5, as
amended by Laws 2022, chapter 95, article 1, section 1, subdivision 5, is amended to read:

Subd. 5. Administration and Financial Assistance

11,477,000

13,429,000

(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 $260,000 the
second year are for 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. The base for this
appropriation is $260,000 in fiscal year 2024
and later.

(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.
These are onetime appropriations. 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.

(s) $827,000 the second year is to award and
administer grants to:

(1) organizations to provide technical and
culturally appropriate services to emerging
farmers and related businesses;

(2) organizations to help emerging farmers
pay for up to 65 percent of premium expenses
each year up to two years under the federal
micro farm insurance program; and

(3) The Good Acre for the Local Emergency
Assistance Farmer Fund (LEAFF) program to
compensate emerging farmers for crops
donated to hunger relief organizations in
Minnesota.

This is a onetime appropriation and is
available until June 30, 2024.

(t) $750,000 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. The base for this
appropriation is $584,000 in fiscal year 2024
and $0 in fiscal year 2025.

(u) $1,500,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041. This
is a onetime transfer. This transfer is in
addition to the appropriations made in Laws
2022, chapter 47, section 2.

Notwithstanding Minnesota Statutes, section
17.041, the commissioner may use the amount
to be transferred for the purposes identified
under Laws 2022, chapter 47, section 2,
paragraph (b). This paragraph expires on
December 31, 2022.

(v) $250,000 in the second year is for a grant
to the Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with initial reports completed by January 3,
2023, and January 3, 2024, and a final report
by September 1, 2025. The reports must
include a list of equipment purchased,
including the cost of each item. The base for
this appropriation is $250,000 in fiscal year
2024 and $0 in fiscal year 2025.

(w) $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 later.

(x) $750,000 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.

The commissioner shall submit a report on the
utilization of the grants to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over agriculture policy and finance by
February 1, 2024.

(y) $50,000 is added to the base for fiscal year
2024 and $0 for fiscal year 2025 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, 2025.

(z) $500,000 the second year is to award and
administer down payment assistance grants
under Minnesota Statutes, section 17.133. The
base for this appropriation is $750,000 in fiscal
year 2024 and thereafter. new text begin Notwithstanding
Minnesota Statutes, section 16A.28,
appropriations encumbered under contract by
June 30, 2023, are available until June 30,
2025.
new text end

(aa) $350,000 the second year is to provide
grants to secondary career and technical
education programs for the purpose of offering
instruction in meat cutting and butchery. By
January 15, 2023, the commissioner must
report to the chairs and ranking minority
members of the committees with jurisdiction
over agriculture finance and education finance
by listing the grants made under this paragraph
by county and noting the number and amount
of grant requests not fulfilled. The report may
include additional information as determined
by the commissioner, including but not limited
to information regarding the outcomes
produced by these grants. If additional grants
are awarded under this paragraph that were
not covered in the report due by January 15,
2023, the commissioner must submit an
additional report to the chairs and ranking
minority members of the committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2023.
This is a onetime appropriation. Grants may
be used for costs, including but not limited to:

(1) equipment required for a meat cutting
program;

(2) facility renovation to accommodate meat
cutting; and

(3) training faculty to teach the fundamentals
of meat processing.

A grant recipient may be awarded a grant of
up to $70,000 and may use up to ten percent
of the grant for faculty training.

Priority may be given to applicants who are
coordinating with meat cutting and butchery
programs at Minnesota State Colleges and
Universities system and local industry
partners.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin GRANTS FOR MEAT PROCESSING TRAINING AND RETENTION
INCENTIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Partner organizations" include:
new text end

new text begin (1) foundations engaged in economic development;
new text end

new text begin (2) community development financial institutions;
new text end

new text begin (3) federally recognized economic development districts; and
new text end

new text begin (4) community development corporations.
new text end

new text begin (c) "Small- to medium-sized meat and poultry processor" means a meat and poultry
processor licensed by the state of Minnesota or the federal government that has fewer than
150 employees.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of agriculture must provide grants to partner
organizations to assist small- to medium-sized meat and poultry processors with hiring and
training new employees. New employees at eligible meat and poultry processing plants may
receive up to $10,000 in the form of tuition reimbursement for programs at Minnesota State
Colleges and Universities, sign-on bonuses, relocation assistance, retention incentives, child
care stipends, and other related expenses. Employees at any one meat or poultry processor
may not receive more than $50,000 under this paragraph.
new text end

new text begin (b) Up to 20 percent of a grant to a partner organization may be used for direct services
to employees, including but not limited to translation services.
new text end

new text begin (c) Priority must be given to applications from partner organizations working in
partnership with Minnesota State Colleges and Universities.
new text end

ARTICLE 2

AGRICULTURE STATUTORY CHANGES

Section 1.

new text begin [17.033] LICENSE AND PERMIT SURCHARGES.
new text end

new text begin The commissioner may collect license and permit surcharges on all licensing and
permitting transactions conducted by the Department of Agriculture for which a fee is
charged. The surcharge applies to all initial and renewal license and permit applications
and is calculated based on the license or permit base fee. Late penalties or other assessments
are not included in the calculation of the surcharge. The fee is set at five percent beginning
August 1, 2023, with a minimum fee of $5 for each transaction. The surcharge rate must
be reviewed and set annually by the commissioner and may be assessed at a rate of between
three and eight percent of the licensing or permitting fee, with a minimum fee of $5 for each
transaction. The fees collected for this surcharge must be deposited in a dedicated account
in the agricultural fund. Money in the account, including interest, is appropriated to the
commissioner for the information technology improvement activities needed to create
electronic systems for conducting licensing and permitting transactions and to modernize
the department's inspection and customer management systems.
new text end

Sec. 2.

Minnesota Statutes 2022, section 17.055, subdivision 1, is amended to read:

Subdivision 1.

Emerging farmer working group.

To advise the commissioner and
legislature regarding the development and implementation of programs and initiatives that
support emerging farmers in this state, the commissioner must periodically convene a
working group consisting, to the extent possible, of persons who are, and organizations that
represent, farmers or aspiring farmers who are women, veterans, persons with disabilities,
American Indian or Alaskan Natives, members of a community of color, young, deleted text begin and deleted text end new text begin lesbian,
gay, bisexual, transgender, queer, intersex, or asexual (LGBTQIA+), or new text end urban, and any
other emerging farmers as determined by the commissioner. deleted text begin No later than January 15 each
year, the commissioner must update the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over agriculture regarding the working
group's activities and recommendations.
deleted text end

Sec. 3.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Emerging Farmers Office. new text end

new text begin The Emerging Farmers Office exists to support
emerging farmers. For purposes of this subdivision, "emerging farmer" has the meaning
given in subdivision 1. At a minimum, the office must coordinate the emerging farmer
working group under subdivision 1 and the beginning farmer equipment and infrastructure
grant program under subdivision 3.
new text end

Sec. 4.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Beginning farmer equipment and infrastructure grants. new text end

new text begin (a) The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are emerging farmers as defined in
subdivision 1. Grant money may be used for equipment and infrastructure development.
new text end

new text begin (b) The commissioner shall develop competitive eligibility criteria and may allocate
grants on a needs basis.
new text end

new text begin (c) Grant projects may continue for up to two years.
new text end

Sec. 5.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin No later than February 1 each year, the commissioner must submit a
report to the chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over agriculture regarding the emerging farmer working group's activities,
recommendations, and any grants awarded under this section.
new text end

Sec. 6.

Minnesota Statutes 2022, section 17.1016, subdivision 2, is amended to read:

Subd. 2.

Grant program.

(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.

(b) To be eligible for this program, a grantee must:

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

(2) certify that all control deleted text begin and equity in deleted text end new text begin of new text end 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;

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

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

new text begin (5) not allow nonpatron voting rights new text end .

(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, the development
of bid specifications, preliminary blueprints and schematics, and the completion of purchase
agreements and other necessary legal documents.

(d) Grants must be matched dollar-for-dollar with other money or in-kind contributions.

Sec. 7.

Minnesota Statutes 2022, section 17.116, subdivision 3, is amended to read:

Subd. 3.

Awarding of grants.

(a) Applications for grants must be made to the
commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a technical review
panel appointed by the commissioner. The technical review panel shall consist of a soil
scientist, an agronomist, a representative from a postsecondary educational institution, an
agricultural marketing specialist, two resident farmers of the state using sustainable
agriculture methods, two resident farmers of the state using organic agriculture methods,
and a chair from the department.

(c) The technical review panel shall rank applications according to the following criteria:

(1) direct or indirect energy savings or production;

(2) environmental benefit;

(3) farm profitability;

(4) the number of farms able to apply the techniques or the technology proposed;

(5) the effectiveness of the project as a demonstration;

(6) the immediate transferability of the project to farms; and

(7) the ability of the project to accomplish its goals.

(d) The commissioner shall consider the recommendations of the technical review panel
and may award grants for eligible projects. Priority must be given to applicants who are
farmers or groups of farmers.

(e) Grants for eligible projects may not exceed $25,000 unless the portion above $25,000
is matched on an equal basis by the applicant's cash deleted text begin or in-kind land use contribution. deleted text end new text begin
contribution or the value of the applicant's in-kind land use, equipment use, or personal
labor. Grant recipients who are not required to provide a match and grant recipients whose
in-kind contributions exceed the amount needed to meet matching requirements may submit
the value of the grant recipients' labor or equipment use as an expense eligible for payment
from grant money. new text end Grant funding of projects may not exceed $50,000 under this section,
but applicants may utilize other funding sources. A portion of each grant must be targeted
for public information activities of the project.

(f) A project may continue for up to three years. Multiyear projects must be reevaluated
by the technical review panel and the commissioner before second or third year funding is
approved. A project is limited to one grant for its funding.

Sec. 8.

Minnesota Statutes 2022, section 17.133, subdivision 3, is amended to read:

Subd. 3.

Report to legislature.

No later than December 1, 2023, and annually thereafter,
the commissioner must provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over agriculture and rural development, in
compliance with sections 3.195 and 3.197, on the farm down payment assistance grants
under this section. The report must include:

(1) background information on beginning farmers in Minnesota and any other information
that the commissioner and authority find relevant to evaluating the effect of the grants on
increasing opportunities for and the number of beginning farmers;

(2) the number and amount of grants;

(3) the geographic distribution of grants by county;

(4) the number of grant recipients who are emerging farmers;

new text begin (5) disaggregated data regarding the gender, race, and ethnicity of grant recipients;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end the number of farmers who cease to own land and are subject to payment of a
penalty, along with the reasons for the land ownership cessation; and

deleted text begin (6) deleted text end new text begin (7) new text end the number and amount of grant applications that exceeded the allocation available
in each year.

Sec. 9.

new text begin [17.134] 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 commissioner must establish and administer a
program to support healthy soil management practices in accordance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Eligible projects. new text end

new text begin The commissioner may award a grant under this section for
any project on agricultural land in Minnesota that will:
new text end

new text begin (1) increase the quantity of organic carbon in soil through practices, including but not
limited to reduced tillage, cover cropping, manure management, precision agriculture, crop
rotations, and changes in grazing management;
new text end

new text begin (2) integrate perennial vegetation into the management of agricultural lands;
new text end

new text begin (3) reduce nitrous oxide and methane emissions through changes to livestock, soil
management, or nutrient optimization;
new text end

new text begin (4) increase the usage of precision agricultural practices;
new text end

new text begin (5) enable the development of site-specific management plans; or
new text end

new text begin (6) enable the purchase of equipment, parts and materials, technology, subscriptions,
technical assistance, seeds, seedlings, or amendments that will further any of the purposes
in clauses (1) to (5).
new text end

new text begin Subd. 3. new text end

new text begin Grant eligibility. new text end

new text begin Any owner or lessee of farmland may apply for a grant under
this section. Local government units, including cities, towns, counties, soil and water
conservation districts, Tribal Nations, and joint powers boards, are also eligible for a grant.
A local government unit that receives a grant for equipment or technology must make those
purchases available for use by the public.
new text end

Sec. 10.

Minnesota Statutes 2022, section 18B.01, subdivision 2b, is amended to read:

Subd. 2b.

Bee owner.

"Bee owner" means a person who owns deleted text begin an apiary deleted text end new text begin a bee colony
or colonies new text end .

Sec. 11.

Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin Bee kill incident. new text end

new text begin "Bee kill incident" means an acute pesticide poisoning of
a bee colony or colonies located within one-half mile of each other at a single time point.
new text end

Sec. 12.

Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 18a. new text end

new text begin Pesticide-treated seed. new text end

new text begin "Pesticide-treated seed" means seed that has a
pesticide directly applied to the seed before planting and is classified by the United States
Environmental Protection Agency as a treated article under Code of Federal Regulations,
title 40, section 152.25(a), and exempt from regulation under the federal Insecticide,
Fungicide, and Rodenticide Act.
new text end

Sec. 13.

Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 30b. new text end

new text begin Systemic pesticide. new text end

new text begin "Systemic pesticide" means a pesticide designed to be
absorbed by plants and translocated throughout plant tissue. Systemic pesticides include:
new text end

new text begin (1) acetamiprid, dinotefuran, clothianidin, thiamethoxam, imidacloprid, nitenpyram,
thiacloprid, fipronil, flupyradifurone, sulfoxaflor, cyantraniliprole, or chlorantraniliprole;
and
new text end

new text begin (2) any other pesticide determined by the commissioner to be a systemic pesticide,
including any chemical belonging to the neonicotinoid or anthranilic diamide class.
new text end

Sec. 14.

Minnesota Statutes 2022, section 18B.03, subdivision 1, is amended to read:

Subdivision 1.

Administration by commissioner.

The commissioner shall administer,
implement, and enforce this chapter and the Department of Agriculture is the lead state
agency for the regulation of pesticides new text begin and pesticide-treated seed new text end . The commissioner has
the sole regulatory authority over the terrestrial application of pesticides, including, but not
limited to, the application of pesticides to agricultural crops, structures, and other nonaquatic
environments. Except as provided in subdivision 3, a state agency other than the Department
of Agriculture shall not regulate or require permits for the terrestrial or nonaquatic application
of pesticides.

Sec. 15.

Minnesota Statutes 2022, section 18B.04, is amended to read:

18B.04 PESTICIDE IMPACT ON ENVIRONMENT.

(a) The commissioner shall:

(1) determine the impact of pesticides new text begin and pesticide-treated seed new text end on the environment,
including the impacts on surface water and groundwater in this state;

(2) develop best management practices involving pesticide new text begin or pesticide-treated seed
new text end distribution, storage, handling, use, and disposal; and

(3) cooperate with and assist other state agencies and local governments to protect public
health, pollinators, and the environment from harmful exposure to pesticides.

(b) The commissioner may assemble a group of experts under section 16C.10, subdivision
2, to consult in the investigation of pollinator deaths or illnesses. The group of experts may
include representatives from local, state, and federal agencies; academia, including the
University of Minnesota; the state pollinator bank; or other professionals as deemed necessary
by the commissioner. The amount necessary for the purposes of this paragraph, not to exceed
$100,000 per fiscal year, is appropriated from the pesticide regulatory account in section
18B.05.

Sec. 16.

Minnesota Statutes 2022, section 18B.051, is amended to read:

18B.051 POLLINATOR RESEARCH ACCOUNT.

Subdivision 1.

Account established.

A pollinator 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 new text begin , new text end including deleted text begin , deleted text end but
not limited to deleted text begin , science-based best practices and the identification and establishment of habitat
beneficial to pollinators. deleted text end new text begin :
new text end

new text begin (1) the identification and establishment of habitat beneficial to pollinators;
new text end

new text begin (2) the development and promotion of science-based best management practices;
new text end

new text begin (3) the development and promotion of practices that can reduce the effects of pesticides
on pollinators;
new text end

new text begin (4) the effects of seed treatments on pollinators; and
new text end

new text begin (5) the development and promotion of integrated pest management, including pest
economic thresholds.
new text end

new text begin The University of Minnesota must select projects in consultation with the Minnesota
Department of Agriculture.
new text end

Subd. 2.

Expiration.

This section expires July 1, deleted text begin 2025 deleted text end new text begin 2027 new text end .

Sec. 17.

new text begin [18B.052] SYSTEMIC PESTICIDE-TREATED SEED.
new text end

new text begin Subdivision 1. new text end

new text begin Systemic pesticide-treated seed program. new text end

new text begin The commissioner must
develop a program for systemic pesticide-treated seed and do the following:
new text end

new text begin (1) develop guidance on appropriate use of systemic pesticide-treated seeds in Minnesota;
new text end

new text begin (2) collaborate with the University of Minnesota and other interested parties to evaluate
national and international research on efficacy of seed treatment rates, scouting techniques,
pest pressures, economic thresholds, and planting or other technology to determine their
applicability to Minnesota-specific conditions;
new text end

new text begin (3) identify the research needs and projects that may be funded to help identify the times
and locations where the use of systemic pesticide-treated seed would be effective in
addressing a pest problem in Minnesota, including but not limited to consideration of
cropping systems, pest pressures, soil types, geographic location, and feasibility of
alternatives to systemic pesticide treatments; and
new text end

new text begin (4) develop science-based best management practices for situations where use of systemic
pesticide-treated seed is appropriate in Minnesota. This shall include a process for public
comment on proposed BMPs.
new text end

new text begin Subd. 2. new text end

new text begin Education and outreach. new text end

new text begin The commissioner shall, in coordination with the
University of Minnesota and other interested parties, develop and disseminate educational
materials on best management practices and other related information for the use of systemic
pesticide-treated seed and alternatives to the use of systemic pesticide-treated seed.
new text end

new text begin Subd. 3. new text end

new text begin Engagement. new text end

new text begin The commissioner may engage with and provide grants to the
University of Minnesota and others in conducting research, demonstration projects, and
developing recommended best management practices for the use of pesticide-treated seed.
new text end

Sec. 18.

new text begin [18B.053] PESTICIDE-TREATED SEED RESEARCH ACCOUNT.
new text end

new text begin A pesticide-treated seed research account is established in the agricultural fund. Money
in the account, including interest, is appropriated to the commissioner to provide grants to
the University of Minnesota or other parties for research related to the use of pesticide-treated
seed and alternatives to the use of pesticide-treated seed. Funding in the account may be
used to:
new text end

new text begin (1) determine situations where the use of pesticide-treated seed is necessary in Minnesota,
including but not limited to consideration of cropping systems, pest pressures, soil types,
geographic location, and feasibility of alternatives to systemic pesticide treatments;
new text end

new text begin (2) evaluate nonchemical pest prevention methods that may be used instead of
pesticide-treated seed;
new text end

new text begin (3) develop science-based best management practices for situations where use of systemic
pesticide-treated seed is appropriate in Minnesota; and
new text end

new text begin (4) develop and conduct demonstration, educational, and promotional activities for best
management practices and other recommended practices related to the use, or minimization
of the use, of pesticide-treated seed.
new text end

Sec. 19.

Minnesota Statutes 2022, section 18B.055, is amended to read:

18B.055 COMPENSATION FOR BEES KILLED BY PESTICIDE;
APPROPRIATION.

Subdivision 1.

Compensation required.

(a) The commissioner must compensate a
deleted text begin person deleted text end new text begin bee owner new text end for an acute pesticide poisoning resulting in the death of bees or loss of
bee colonies owned by the deleted text begin person, provided: deleted text end new text begin bee owner.
new text end

deleted text begin (1) the person who applied the pesticide cannot be determined;
deleted text end

deleted text begin (2) the person who applied the pesticide did so in a manner consistent with the pesticide
product's label or labeling; or
deleted text end

deleted text begin (3) the person who applied the pesticide did so in a manner inconsistent with the pesticide
product's label or labeling.
deleted text end

(b) Except as provided in this section, the bee owner is entitled to the fair market value
of the dead bees and bee colonies losses as determined by the commissioner upon
recommendation by academic experts and bee keepers. deleted text begin In any fiscal year, deleted text end A bee owner must
not be compensated for a claim that is less than $100 or compensated more than deleted text begin $20,000
for all eligible claims. deleted text end new text begin $10,000 for a bee kill incident. A bee owner may only make one
claim for a single bee kill incident.
new text end

new text begin (c) A bee owner must not be compensated more than $20,000 in a fiscal year for bee
kill incidents.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end To be eligible for compensation under this section, the bee owner new text begin and the affected
apiary new text end must be registered new text begin prior to the bee kill incident new text end with a commonly utilized pesticide
registry program, as designated by the commissioner.

deleted text begin Subd. 2. deleted text end

deleted text begin Applicator responsible. deleted text end

deleted text begin In the event a person applies a pesticide in a manner
inconsistent with the pesticide product's label or labeling requirements as approved by the
commissioner and is determined to have caused the acute pesticide poisoning of bees,
resulting in death or loss of a bee colony kept for commercial purposes, then the person so
identified must bear the responsibility of restitution for the value of the bees to the owner.
In these cases the commissioner must not provide compensation as provided in this section.
deleted text end

Subd. 3.

Claim form.

new text begin Within three months of the commissioner making a determination
of whether the death of bees or loss of bee colonies was caused by acute pesticide poisoning,
new text end the bee owner must file a claim on forms provided by the commissioner and available on
the Department of Agriculture's website.

Subd. 4.

Determination.

The commissioner must determine whether the death of the
bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the pesticide
applicator can be determined, and whether the pesticide applicator applied the pesticide
product in a manner consistent with the pesticide product's label or labeling.

Subd. 5.

Payments; denial of compensation.

deleted text begin (a) If the commissioner determines the
bee death or loss of bee colony was caused by an acute pesticide poisoning and either the
pesticide applicator cannot be determined or the pesticide applicator applied the pesticide
product in a manner consistent with the pesticide product's label or labeling, the commissioner
may award compensation from the pesticide regulatory account. If the pesticide applicator
can be determined and the applicator applied the pesticide product in a manner inconsistent
with the product's label or labeling, the commissioner may collect a penalty from the pesticide
applicator sufficient to compensate the bee owner for the fair market value of the dead bees
and bee colonies losses, and must award the money to the bee owner.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end If the commissioner denies compensation claimed by a bee owner under this
section, the commissioner must issue a written decision based upon the available evidence.
The decision must include specification of the facts upon which the decision is based and
the conclusions on the material issues of the claim. The commissioner must mail a copy of
the decision to the bee owner.

deleted text begin (c) deleted text end new text begin (b) new text end A decision to deny compensation claimed under this section is not subject to the
contested case review procedures of chapter 14, but may be reviewed upon a trial de novo
in a court in the county where the loss occurred. The decision of the court may be appealed
as in other civil cases. Review in court may be obtained by filing a petition for review with
the administrator of the court within 60 days following receipt of a decision under this
section. Upon the filing of a petition, the administrator must mail a copy to the commissioner
and set a time for hearing within 90 days of the filing.

Subd. 6.

Deduction from payment.

The commissioner must reduce payments made
under this section by any compensation received by the bee owner for dead bees and bee
colonies losses as proceeds from an insurance policy or from another source.

new text begin Subd. 6a. new text end

new text begin Enhanced penalty factor. new text end

new text begin If the commissioner determines that a bee death
or loss of bee colony was caused by acute pesticide poisoning, is able to determine the
pesticide applicator that was responsible, and determines that the applicator applied the
pesticide in a manner inconsistent with the product's label or labeling, the commissioner
may add the amount that the bee owner received from the bee owner's claim to any penalty
amount assessed by the commissioner under any penalty actions against the pesticide
applicator under section 18D.315 or 18D.325.
new text end

Subd. 7.

Appropriation.

The amount necessary to pay claims under this section, not to
exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory account in
section 18B.05.

Sec. 20.

new text begin [18B.075] PESTICIDE-TREATED SEED.
new text end

new text begin A person may not use, store, handle, distribute, or dispose of seed treated with pesticide
in a manner that:
new text end

new text begin (1) endangers humans, food, livestock, fish, or wildlife; or
new text end

new text begin (2) will cause unreasonable adverse effects on the environment.
new text end

Sec. 21.

new text begin [18B.117] REGISTRATION PROHIBITED.
new text end

new text begin The commissioner must not register under section 18B.26 a pesticide product that contains
a perfluoroalkyl or polyfluoroalkyl substance as an active or inert ingredient.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 22.

Minnesota Statutes 2022, section 18C.425, subdivision 6, is amended to read:

Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in the
state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall
pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee of
deleted text begin 39 deleted text end new text begin 64 new text end cents per ton, and until June 30, 2024, an additional 40 cents per ton, of fertilizer, soil
amendment, and plant amendment sold or distributed in this state, with a minimum of $10
on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. Products sold or distributed to manufacturers or
exchanged between them are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 23.

Minnesota Statutes 2022, section 18H.02, is amended by adding a subdivision to
read:

new text begin Subd. 15a. new text end

new text begin Live plant dealer. new text end

new text begin "Live plant dealer" means an entity who:
new text end

new text begin (1) raises, grows, or propagates nursery stock for sale, outdoors or indoors;
new text end

new text begin (2) acquires and further distributes nursery stock, including through landscaping or
distribution with a tree spade; or
new text end

new text begin (3) operates a business in Minnesota selling nursery stock with or without taking
ownership or handling the nursery stock.
new text end

Sec. 24.

Minnesota Statutes 2022, section 18H.03, subdivision 6, is amended to read:

Subd. 6.

Dissemination of information.

The commissioner may disseminate information
among deleted text begin growers deleted text end new text begin live plant dealers new text end relative to treatment of nursery stock in both prevention
and elimination of attack by plant pests and diseases.

Sec. 25.

Minnesota Statutes 2022, section 18H.05, is amended to read:

18H.05 NURSERY CERTIFICATE REQUIREMENTS.

(a) No person may offer for sale or distribute certified nursery stock as a deleted text begin nursery stock
grower or deleted text end new text begin live plant new text end dealer without first obtaining the appropriate nursery stock certificate
from the commissioner. The commissioner may not issue a certificate to a person who does
not sell certified nursery stock. Certificates are issued solely for these purposes and may
not be used for other purposes.

(b) A certificate issued by the commissioner expires on December 31 of the year it is
issued.

(c) A person required to be certified by this section must apply for a certificate or for
renewal on a form furnished by the commissioner which must contain:

(1) the name and address of the applicant, the number of locations to be operated by the
applicant and their addresses, and the assumed business name of the applicant;

(2) if other than an individual, a statement whether a person is a partnership, corporation,
or other organization;

(3) the type of business to be operated and, if the applicant is an agent, the principals
the applicant represents; and

(4) source or sources of purchased nursery stock.

(d) No person may:

(1) falsely claim to be a certified new text begin live plant new text end dealer deleted text begin , grower, broker, or agent deleted text end ;

(2) make willful false statements when applying for a certificate; or

(3) sell or distribute certified nursery stock to an uncertified deleted text begin nursery stock deleted text end new text begin live plant
new text end dealer who is required to be certified deleted text begin or nursery stock grower deleted text end .

(e) Each application for a certificate must be accompanied by the appropriate certificate
fee under section 18H.07.

(f) Certificates issued by the commissioner must be prominently displayed to the public
in the place of business where certified nursery stock is sold or distributed.

(g) The commissioner may refuse to issue a certificate for cause.

(h) Each deleted text begin grower or deleted text end new text begin live plant new text end dealer is entitled to one sales location under the certificate
deleted text begin of the grower or dealer deleted text end . Each additional sales location maintained by the person requires
the payment of the full certificate fee for each additional sales outlet.

deleted text begin (i) A grower who is also a dealer is certified only as a grower for that specific site.
deleted text end

deleted text begin (j) deleted text end new text begin (i) new text end A certificate is personal to the applicant and may not be transferred. A new
certificate is necessary if the business entity is changed or if the membership of a partnership
is changed, whether or not the business name is changed.

deleted text begin (k) deleted text end new text begin (j) new text end The certificate issued to a new text begin live plant new text end dealer deleted text begin or grower deleted text end applies to the particular
premises named in the certificate. However, if prior approval is obtained from the
commissioner, the place of business may be moved to the other premises or location without
an additional certificate fee.

deleted text begin (l) deleted text end new text begin (k) new text end A collector of nursery stock from the wild is required to obtain a deleted text begin dealer's deleted text end new text begin live
plant dealer new text end certificate from the commissioner and is subject to all the requirements that
apply to the inspection of nursery stock. All collected nursery stock must be labeled as
"collected from the wild."

Sec. 26.

Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin New live plant dealer certificate. new text end

new text begin An entity that was not distributing certified
nursery stock for the past two full calendar years is considered a new applicant for the basis
of fee determination. A new live plant dealer must pay the following fees:
new text end

new text begin (1) $50 fee for a live plant dealer certificate that allows for one retail sales location. A
$50 certificate is required for each additional retail sales location; and
new text end

new text begin (2) a live plant dealer growing nursery stock requires an inspection for certification of
that nursery stock prior to sale of the nursery stock and must be assessed an additional
charge of $100 plus $10 per acre up to 200 acres. Acreage to be certified should be rounded
to the nearest one acre. For the basis of fee determination, "growing nursery stock" means
the purchase of seeds, seedlings, or small plants and the cultivation of the plants in fields
or containers in Minnesota for eventual sale, including cutting, splitting, and propagating
plants.
new text end

Sec. 27.

Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Live plant dealer renewal certificate. new text end

new text begin (a) A renewal certificate is for a live
plant dealer that has had a certificate in at least one of the past two full calendar years. A
live plant dealer must pay an annual fee based on the following criteria:
new text end

new text begin (1) a $50 fee for a live plant dealer certificate that allows for one retail sales location.
A $50 certificate is required for each additional retail sales location;
new text end

new text begin (2) a fee of gross annual purchases of certified nursery stock as noted in the table below
with the intent to resell in the same year. These are plants that are watered and maintained
only for the purposes of keeping the plants alive. Gross annual purchases are calculated for
nursery stock purchases from January 1 through December 31 of the most recent certificate
year according to the following table;
new text end

new text begin Purchases new text end		new text begin Fee new text end
new text begin $0 new text end	new text begin to $3,000 new text end	new text begin $0 new text end
new text begin $3,001 new text end	new text begin to $10,000 new text end	new text begin $50 new text end
new text begin $10,001 new text end	new text begin to $20,000 new text end	new text begin $100 new text end
new text begin $20,001 new text end	new text begin to $50,000 new text end	new text begin $225 new text end
new text begin $50,001 new text end	new text begin to $100,000 new text end	new text begin $425 new text end
new text begin $100,001 new text end	new text begin to $150,000 new text end	new text begin $600 new text end
new text begin $150,001 new text end	new text begin to $200,000 new text end	new text begin $750 new text end
new text begin $200,001 new text end	new text begin to $300,000 new text end	new text begin $975 new text end
new text begin $300,001 new text end	new text begin to $400,000 new text end	new text begin $1,200 new text end
new text begin $400,001 new text end	new text begin to $500,000 new text end	new text begin $1,250 new text end
new text begin $500,001 new text end	new text begin to $600,000 new text end	new text begin $1,350 new text end
new text begin $600,001 new text end	new text begin to $700,000 new text end	new text begin $1,400 new text end
new text begin $700,001 new text end	new text begin to $800,000 new text end	new text begin $1,500 new text end
new text begin $800,001 new text end	new text begin to $900,000 new text end	new text begin $1,600 new text end
new text begin $900,001 new text end	new text begin to $1,000,000 new text end	new text begin $1,700 new text end
new text begin $1,000,001 new text end	new text begin to $2,000,000 new text end	new text begin $1,800 new text end
new text begin $2,000,001 new text end	new text begin to $3,000,000 new text end	new text begin $1,900 new text end
new text begin $3,000,001 or more new text end		new text begin .0005 x annual purchases; and new text end

new text begin (3) a live plant dealer growing nursery stock requires an inspection for certification of
that nursery stock prior to sale and must be assessed an additional charge of $100 plus $10
per acre up to 200 acres. Acreage to be certified should be rounded to the nearest one acre.
For the basis of fee determination, "growing nursery stock" is the purchase of seeds,
seedlings, or small plants and the cultivation of plants in fields or containers in Minnesota
for eventual sale, including cutting, splitting, and propagating plants.
new text end

new text begin (b) In addition to the fees in paragraph (a), a penalty of 25 percent of the fee due may
be charged or a portion thereof, if the fee is delinquent or any application for renewal is not
postmarked or electronically date stamped by December 31 of the current year.
new text end

new text begin (c) A live plant dealer operating without a valid certificate must not offer nursery stock
for sale or sell nursery stock until a certificate is issued to the live plant dealer by the
commissioner and the live plant dealer has paid any applicable fees and penalties in full.
new text end

Sec. 28.

Minnesota Statutes 2022, section 18H.08, subdivision 2, is amended to read:

Subd. 2.

Virus disease-free certification.

The commissioner may provide special
services such as virus disease-free certification and other similar programs. Participation
by deleted text begin nursery stock growers deleted text end new text begin live plant dealers new text end is voluntary. Plants offered for sale as certified
virus-free must be grown according to certain procedures in a manner defined by the
commissioner for the purpose of eliminating viruses and other injurious disease or insect
pests. The commissioner shall collect reasonable fees from participating deleted text begin nursery stock
growers deleted text end new text begin live plant dealers new text end for services and materials that are necessary to conduct this type
of work.

Sec. 29.

Minnesota Statutes 2022, section 18H.09, is amended to read:

18H.09 NURSERY STOCK CERTIFICATION REQUIREMENTS.

(a) All nursery stock growing at sites identified by deleted text begin nursery stock dealers or nursery stock
growers deleted text end new text begin live plant dealers new text end and submitted for inspection must be inspected by the
commissioner within the previous 12 months prior to sale and found apparently free from
quarantine and regulated nonquarantine pests as well as significantly dangerous or potentially
damaging plant pests. The commissioner may waive a site inspection under the following
conditions:

(1) the nursery stock is not going to be sold within 12 months;

(2) the nursery stock will not be moved out of Minnesota; and

(3) the nursery site or stock is not subject to certification requirements associated with
a state or federally regulated or quarantined plant pest.

All nursery stock originating from out of state and offered for sale in Minnesota must
have been inspected by the appropriate state or federal agency during the previous 12 months
and found free from quarantine and regulated nonquarantine pests as well as significantly
dangerous or potentially damaging plant pests. A nursery stock certificate is valid from
January 1 to December 31.

(b) Nursery stock must be accessible to the commissioner for inspection during regular
business hours. Weeds or other growth that hinder a proper inspection are grounds to suspend
or withhold a certificate or require a reinspection.

(c) Inspection reports issued to deleted text begin growers deleted text end new text begin live plant dealers new text end must contain a list of the plant
pests found at the time of inspection. Withdrawal-from-distribution orders are considered
part of the inspection reports. A withdrawal-from-distribution order must contain a list of
plants withdrawn from distribution and the location of the plants.

(d) The commissioner may post signs to delineate sections withdrawn from distribution.
These signs must remain in place until the commissioner removes them or grants written
permission to the grower to remove the signs.

(e) Inspection reports issued to new text begin live plant new text end dealers must outline the violations involved
and corrective actions to be taken including withdrawal-from-distribution orders which
would specify nursery stock that could not be distributed from a certain area.

(f) Optional inspections of plants may be conducted by the commissioner upon request
by any persons desiring an inspection. A fee as provided in section 18H.07 must be charged
for such an inspection.

Sec. 30.

Minnesota Statutes 2022, section 18H.13, subdivision 3, is amended to read:

Subd. 3.

Reciprocal agreements.

The commissioner may cooperate with and enter into
reciprocal agreements with other states regarding licensing and movement of nursery stock.
Reciprocal agreements with other states do not prevent the commissioner from prohibiting
the distribution in Minnesota of any nursery stock that fails to meet minimum criteria for
nursery stock of Minnesota certified deleted text begin growers, dealers, or both deleted text end new text begin live plant dealers new text end . An official
directory of certified nurseries and related nursery industry businesses from other states is
acceptable in lieu of individual nursery certificates.

Sec. 31.

Minnesota Statutes 2022, section 18H.15, is amended to read:

18H.15 VIOLATIONS.

(a) A person who offers to distribute nursery stock that is uncertified, uninspected, or
falsely labeled or advertised possesses an illegal regulated commodity that is considered
infested or infected with harmful plant pests and subject to regulatory action and control.
If the commissioner determines that the provisions of this section have been violated, the
commissioner may order the destruction of all of the plants unless the person:

(1) provides proper phytosanitary preclearance, phytosanitary certification, or nursery
stock certification;

(2) agrees to have the plants, plant materials, or nursery stock returned to the consignor;
and

(3) provides proper documentation, certification, or compliance to support advertising
claims.

(b) The plant owner is liable for all costs associated with a withdrawal-from-distribution
order or the quarantine, treatment, or destruction of plants. The commissioner is not liable
for actual or incidental costs incurred by a person due to the commissioner's actions. The
commissioner must be reimbursed by the owner of the plants for the actual expenses incurred
in carrying out a withdrawal-from-distribution order or the quarantine, treatment, or
destruction of any plants.

(c) It is unlawful for a person to:

(1) misrepresent, falsify, or knowingly distribute, sell, advertise, or display damaged,
mislabeled, misrepresented, infested, or infected nursery stock;

(2) fail to obtain a nursery certificate as required by the commissioner;

(3) fail to renew a nursery certificate, but continue business operations;

(4) fail to display a nursery certificate;

(5) misrepresent or falsify a nursery certificate;

(6) refuse to submit to a nursery inspection;

(7) fail to provide the cooperation necessary to conduct a successful nursery inspection;

(8) offer for sale uncertified plants, plant materials, or nursery stock;

(9) possess an illegal regulated commodity;

(10) violate or disobey a commissioner's order;

(11) violate a quarantine issued by the commissioner;

(12) fail to obtain phytosanitary certification for plant material or nursery stock brought
into Minnesota;

(13) deface, mutilate, or destroy a nursery stock certificate, phytosanitary certificate, or
phytosanitary preclearance certificate, or other commissioner mark, permit, or certificate;

(14) fail to notify the commissioner of an uncertified shipment of plants, plant materials,
or nursery stock;

(15) transport uncertified plants, plant materials, or nursery stock in Minnesota; or

(16) sell nursery stock to an uncertified deleted text begin nursery stock deleted text end new text begin live plant new text end dealer who is required
to be certified.

Sec. 32.

Minnesota Statutes 2022, section 18K.04, subdivision 1, is amended to read:

Subdivision 1.

Requirement; issuance; presumption.

(a) A person must obtain a license
from the commissioner before (1) growing industrial hemp deleted text begin for commercial or research
purposes deleted text end , deleted text begin and deleted text end (2) deleted text begin before deleted text end processing industrial hemp deleted text begin for commercial purposes deleted text end new text begin , or (3)
researching industrial hemp new text end .

(b) To obtain a license under paragraph (a), a person must apply to the commissioner
in the form prescribed by the commissioner and must pay the annual registration and
inspection fee established by the commissioner in accordance with section 16A.1285,
subdivision 2.

(c) For a license to grow industrial hemp deleted text begin for commercial or research purposes deleted text end , the license
application must include the name and address of the applicant and the legal description of
the land area or areas where industrial hemp will be grown by the applicant and any other
information required under Code of Federal Regulations, title 7, part 990.

(d) For a license to process industrial hemp deleted text begin for commercial purposes deleted text end , the license
application must include the name and address of the applicant, the legal description of the
processing location, and any other information required by the commissioner.

(e) A licensee is responsible for compliance with the license requirements irrespective
of the acts or omissions of an authorized representative acting on behalf of the licensee.

(f) When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid until
December 31 of the year of application.

(g) A person licensed under paragraph (a) to grow industrial hemp is presumed to be
growing industrial hemp for commercial or research purposes.

Sec. 33.

Minnesota Statutes 2022, section 18K.04, subdivision 2, is amended to read:

Subd. 2.

Background check; data classification.

The commissioner must require each
first-time applicant for a license to submit to a background investigation conducted by the
Bureau of Criminal Apprehension as a condition of licensure. new text begin Any first-time authorized
representatives designated by the applicant must also submit to a background investigation.
new text end As part of the background investigation, the Bureau of Criminal Apprehension must conduct
criminal history checks of Minnesota records and is authorized to exchange fingerprints
with the United States Department of Justice, Federal Bureau of Investigation for the purpose
of a criminal background check of the national files. The cost of the investigation must be
paid by the applicant. Criminal history records provided to the commissioner under this
section must be treated as private data on individuals, as defined in section 13.02, subdivision
12.

Sec. 34.

Minnesota Statutes 2022, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, processing,
and licensing of industrial hemp. deleted text begin Notwithstanding section 14.125, the commissioner's
authority to adopt these rules expires June 30, 2022. deleted text end new text begin Notwithstanding the two-year limitation
for exempt rules under section 14.388, subdivision 1, Minnesota Rules, chapter 1565,
published in the State Register on August 16, 2021, is effective until August 16, 2025, or
until permanent rules implementing chapter 18K are adopted, whichever occurs first.
new text end

(b) Rules adopted under paragraph (a) must include deleted text begin , deleted text end but not be limited to deleted text begin , deleted text end provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

Sec. 35.

new text begin [18K.10] HEMP FIBER PROCESSING EQUIPMENT GRANTS.
new text end

new text begin The commissioner must award grants to licensed processors that increase the state's
capacity to process industrial hemp fiber. Grants are limited to no more than $200,000 of
processing equipment and reasonable equipment installation costs per processing location.
A licensed processor must match the grant with other funding equal to at least 25 percent
of the grant amount.
new text end

Sec. 36.

Minnesota Statutes 2022, section 25.39, subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of 16 cents per ton must
be paid to the commissioner on commercial feeds distributed in this state by the person who
first distributes the commercial feed, except that:

(1) no fee need be paid on any feed ingredient in a customer formula feed that has been
directly furnished by the customer; or

(2) no fee need be paid on a first distribution if made to a qualified buyer who, with
approval from the commissioner, is responsible for the fee. Such license-specific
tonnage-fee-exemption permits shall be issued on a calendar year basis to commercial feed
licensees who distribute feed or feed ingredients outside the state, and who submit a $100
nonrefundable application fee and comply with rules adopted by the commissioner relative
to record keeping, tonnage of commercial feed distributed in Minnesota, total of all
commercial feed tonnage distributed, and all other information which the commissioner
may require so as to ensure that proper inspection fee payment has been made.

(b) In the case of pet food or specialty pet food distributed in the state only in packages
of ten pounds or less, a distributor must register each product deleted text begin and submit a current label for
each product deleted text end annually on forms provided by the commissioner, accompanied by an annual
application fee of $100 for each product in lieu of the inspection fee new text begin , and within five business
days, submit a current label for each product upon the request of the commissioner new text end . This
annual fee must be received by the commissioner on or before June 30 or postmarked on
or before June 30. The inspection fee required by paragraph (a) applies to pet food or
specialty pet food distributed in packages exceeding ten pounds.

(c) The minimum inspection fee is $75 per annual reporting period.

Sec. 37.

Minnesota Statutes 2022, 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. Fees paid under subdivision 3 must be deposited 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. 38.

Minnesota Statutes 2022, section 28A.082, subdivision 1, is amended to read:

Subdivision 1.

Fees; application.

new text begin (a) new text end The fees for review of food handler facility floor
plans under the Minnesota Food Code are based upon the square footage of the structure
being newly constructed, remodeled, or converted. The fees for the review shall be:

	square footage		review fee
	0 - deleted text begin 4,999 deleted text end new text begin 999 new text end .	$	200.00
	new text begin 1,000 - 4,999 new text end .	new text begin $ new text end	new text begin 400.00 new text end
	5,000 - 24,999 .	$	deleted text begin 275.00 deleted text end new text begin 800.00 new text end
	25,000 plus .	$	deleted text begin 425.00 deleted text end new text begin 1,000.00 new text end

new text begin (b) new text end The applicant must submit the required fee, review application, plans, equipment
specifications, materials lists, and other required information on forms supplied by the
department at least 30 days prior to commencement of construction, remodeling, or
conversion. The commissioner may waive this fee after determining that the facility's
principal mode of business is not the sale of food and that the facility sells only prepackaged
foods.

new text begin (c) The fee for a remodel of a licensed food establishment by the license holder is based
on the total square footage in paragraph (a) of the remodeled food preparation, service,
display, and storage areas only. This paragraph does not apply to a retail food handler who
is applying for a new license that includes the conversion of an existing building or structure
that was previously licensed as a food establishment.
new text end

Sec. 39.

Minnesota Statutes 2022, 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. Fees paid under subdivision 1
must be deposited 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. 40.

Minnesota Statutes 2022, section 35.02, subdivision 1, is amended to read:

Subdivision 1.

Members; officers.

The board has deleted text begin six deleted text end new text begin 11 new text end members appointed by the
governor with deleted text begin the advice and consent of the senate, four of whom are producers of livestock
in the state and at least one of the four livestock producers is also a member of a federally
recognized Tribe located in Minnesota, and two of whom are practicing veterinarians licensed
in Minnesota deleted text end new text begin two at-large members, one member who is a member of a federally recognized
Tribe located in Minnesota, and eight regional members, with no two regional members
residing in the same congressional district. To the extent practicable, the governor's
appointments must achieve gender balance among the board membership. Members must
be knowledgeable in animal agriculture, animal health, or pets and companion animals,
with at least two members who represent the public and are not employed in agriculture,
veterinary medicine, the pet industry, or a related field new text end . The commissioners of agriculture,
natural resources, and health, the dean of the College of Veterinary Medicine, and the
director of the Veterinary Diagnostic Laboratory of the University of Minnesota deleted text begin may deleted text end new text begin shall new text end
serve as consultants to the board without vote. Appointments to fill unexpired terms must
be made from the classes to which the retiring members belong. The board shall elect a
president and a vice-president from among its members deleted text begin and deleted text end new text begin . The governor shall appoint new text end a
veterinarian licensed in Minnesota who is not a member to be deleted text begin its deleted text end new text begin the board's new text end executive
director for a term of one year and until a successor qualifies. The board shall set the duties
of the director.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, and applies to appointments
that occur on or after that date.
new text end

Sec. 41.

Minnesota Statutes 2022, section 35.05, is amended to read:

35.05 AUTHORITY OF STATE BOARD.

(a) The state board may quarantine or kill any domestic animal infected with, or which
has been exposed to, a contagious or infectious dangerous disease if it is necessary to protect
the health of the domestic animals of the state.

(b) The board may regulate or prohibit the arrival in and departure from the state of
infected or exposed animals and, in case of violation of any rule or prohibition, may detain
any animal at its owner's expense. The board may regulate or prohibit the importation of
domestic animals which, in its opinion, may injure the health of Minnesota livestock.

(c) When the governor declares an emergency under section 35.0661, the board, through
its executive director, may assume control of such resources within the University of
Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the disease
outbreak. The director of the laboratory and other laboratory personnel must cooperate fully
in performing necessary functions related to the outbreak or threatened outbreak.

(d) The board may test or require tests of any bovine or cervidae in the state when the
board deems it necessary to achieve or maintain bovine tuberculosis accredited free state
or zone status under the regulations and laws administered by the United States Department
of Agriculture.

(e) Notwithstanding section 3.3005, subdivision 2, the board may apply for, receive,
and disburse federal money made available to the state for animal disease response. All
federal money received by the board for this purpose must be deposited in the state treasury
and deleted text begin , except as provided in section 35.156, subdivision 2, deleted text end is appropriated to the board for
the purposes for which it was received. By January 15 each year, the board must report to
the senate Committee on Finance, the house of representatives Committee on Ways and
Means, and the legislative committees with jurisdiction over the board's operating budget
regarding the amount of federal money received and spent in the previous fiscal year under
this paragraph and the board's use of these funds.

Sec. 42.

Minnesota Statutes 2022, section 41A.12, subdivision 4, is amended to read:

Subd. 4.

Sunset.

This section expires on June 30, deleted text begin 2025 deleted text end new text begin 2035 new text end .

Sec. 43.

Minnesota Statutes 2022, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility deleted text begin for participants on or before April 1, 2023 deleted text end .

(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 on or before deleted text begin April 1 deleted text end new text begin June
30 new text end , 2023, 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).

(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 March 31, 2023.
new text end

Sec. 44.

Minnesota Statutes 2022, 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, and the commissioner must pay, the difference between a 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. 45.

Minnesota Statutes 2022, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility deleted text begin for participants on or before April 1, 2023 deleted text end .

(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 on or before deleted text begin April 1 deleted text end new text begin June
30 new text end , 2023, 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).

(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 March 31, 2023.
new text end

Sec. 46.

Minnesota Statutes 2022, 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, and the
commissioner must pay, the difference between a 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. 47.

Minnesota Statutes 2022, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility deleted text begin for participants on or before April 1, 2023 deleted text end .

(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 on or before deleted text begin April 1 deleted text end new text begin June 30 new text end , 2023, 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).

(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 March 31, 2023.
new text end

Sec. 48.

Minnesota Statutes 2022, 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, and the commissioner must pay, the difference between a 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. 49.

Minnesota Statutes 2022, 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 begin policy and finance new text end and agriculture policy and finance. The
report shall include information on production and incentive expenditures under the
programs deleted text begin . deleted text end new 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 public 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. 50.

Minnesota Statutes 2022, section 223.16, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Failure. new text end

new text begin "Failure" means a determination by the commissioner that a grain
buyer or public grain warehouse operator has failed to pay for delivered grain, breached a
contract, breached more than one contract, or failed to redeliver stored grain to a producer.
new text end

Sec. 51.

Minnesota Statutes 2022, section 223.17, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Action on a bond deleted text end new text begin Breach of contract new text end .

A producer claiming to be damaged
by a breach of a contract for the purchase of grain by a deleted text begin licensed deleted text end grain buyer may file a
written claim with the commissioner. The claim must state the facts constituting the claim.
deleted text begin The claim must be filed with the commissioner within 180 days of the breach of the contract. deleted text end
If a claim is valid, the commissioner may immediately suspend the license, in which case
the licensee shall surrender the license to the commissioner. Within 15 days the licensee
may request an administrative hearing subject to chapter 14 to determine whether the license
should be revoked. If no request is made within 15 days, the commissioner shall revoke the
license.

Sec. 52.

Minnesota Statutes 2022, section 223.17, subdivision 7a, is amended to read:

Subd. 7a.

Bond requirements deleted text begin ; claims deleted text end .

For entities licensed under this chapter and
chapter 232, the bond requirements and deleted text begin claims deleted text end new text begin actions new text end against the bond are governed under
section deleted text begin 232.22, subdivision 6a deleted text end new text begin 223.24, subdivision 13 new text end .

Sec. 53.

Minnesota Statutes 2022, section 223.175, is amended to read:

223.175 WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS;
FORM.

A written confirmation required under section 223.177, subdivision 2, and a written
voluntary extension of credit contract must include those items prescribed by the
commissioner by rule. A contract shall include a statement of the legal and financial
responsibilities of grain buyers and sellers established in this chapter. A contract shall also
include the following statement in not less than ten point, all capital type, framed in a box
with space provided for the seller's signature: "THIS CONTRACT CONSTITUTES A
VOLUNTARY EXTENSION OF CREDIT. THIS CONTRACT deleted text begin IS NOT COVERED BY
ANY GRAIN BUYER'S BOND deleted text end new text begin MAY NOT BE COVERED COMPLETELY BY THE
GRAIN INDEMNITY ACCOUNT new text end ." If a written contract is provided at the time the grain
is delivered to the grain buyer, the seller shall sign the contract in the space provided beneath
the statement. A transaction that does not meet the provisions of a voluntary extension of
credit, including the issuance and signing of a voluntary extension of credit contract, is a
cash sale.

Sec. 54.

Minnesota Statutes 2022, section 223.19, is amended to read:

223.19 RULES.

The commissioner may make rules pursuant to chapter 14 to carry out the provisions of
sections 223.15 to deleted text begin 223.23 deleted text end new text begin 223.24 new text end .

Sec. 55.

new text begin [223.24] GRAIN INDEMNITY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The grain indemnity account is established under the
direction and control of the commissioner of agriculture. The grain indemnity account shall
consist of grain indemnity premiums, money from any other source, and interest.
new text end

new text begin Subd. 2. new text end

new text begin Account; appropriation. new text end

new text begin (a) A grain indemnity account is established in the
agricultural fund. Money in the grain indemnity account, including interest, is appropriated
to the commissioner to pay valid claims and to administer this section.
new text end

new text begin (b) The commissioner shall direct payments from the grain indemnity account only for
the following purposes:
new text end

new text begin (1) the payment of valid claims;
new text end

new text begin (2) the payment of grain indemnity premium refunds;
new text end

new text begin (3) the payment of administrative expenses under paragraph (c);
new text end

new text begin (4) the payment of legal fees and legal expenses under subdivision 7; or
new text end

new text begin (5) the payment of a trustee appointed under subdivision 6.
new text end

new text begin (c) The commissioner shall allocate money from the grain indemnity account to a separate
administrative expenses account to pay or reimburse the agency for grain indemnity account
expenses. Administrative expenses under this paragraph include the actual cost of processing
payments and refunds, enforcement, record keeping, ordinary management and investment
fees connected with the operation of the grain indemnity account, and legal expenses.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A producer is eligible to receive a grain indemnity payment from
the commissioner if the producer sold grain to a grain buyer as defined in this chapter or
stored grain with a public grain warehouse operator under chapter 232 and the producer is
damaged by the grain buyer's or public grain warehouse operator's failure to pay for or
redeliver grain.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) A producer asserting eligibility under subdivision 3 must file
a completed claim with the commissioner. The producer must state the facts constituting
the claim and all other information required by the commissioner.
new text end

new text begin (b) Upon receiving a claim, the commissioner must promptly determine the validity of
the claim and notify the claimant of the commissioner's determination.
new text end

new text begin (c) An aggrieved party may appeal the commissioner's determination by requesting,
within 15 days, that the commissioner initiate a contested case proceeding under chapter
14.
new text end

new text begin Subd. 5. new text end

new text begin Payment limitation. new text end

new text begin (a) For each failure as defined by section 223.16,
subdivision 3c, the commissioner must pay the eligible producer:
new text end

new text begin (1) the amount equal to the value of the grain sold on cash sale, grain assigned to
warehouse receipt, or grain assigned to open storage less than 180 days from the deposit;
new text end

new text begin (2) the amount equal to the value of grain sold up to $300,000, or the lesser of $750,000
or 75 percent of the amount owed to the seller for a contract in excess of $300,000 for a
deferred or delayed payment contract for which a price has been established when the
contract originated within 120 days of the breach of contract;
new text end

new text begin (3) the lesser of $750,000 or 75 percent of the amount owed to the seller for a voluntary
extension of credit contract for which no price has been established when the contract
originated within 180 days of the breach of contract;
new text end

new text begin (4) the lesser of $500,000 or 50 percent for an open storage assignment or a voluntary
extension of credit contract when the open storage assignment or contract originated between
181 days and 18 months from the failure; or
new text end

new text begin (5) the lesser of $250,000 or 25 percent for an open storage assignment or a voluntary
extension of credit contract when the open storage assignment or contract originated between
19 months and 36 months from the failure.
new text end

new text begin (b) Claims filed more than 36 months from the failure are not eligible for payment.
new text end

new text begin (c) For the purposes of this subdivision, multiple breaches of contract with a single entity
constitute one failure.
new text end

new text begin (d) If a grain buyer holds both a Minnesota grain buyer license, as defined in chapter
223, and a license with the United States Department of Agriculture (USDA) under the
United States Warehouse Act, a seller may only file a claim with the grain indemnity account
if the seller sold grain as a cash sale or under a voluntary extension of credit contract. The
commissioner must deny any claims for stored grain from a seller that holds both a Minnesota
grain buyer license and a license with the USDA under the United States Warehouse Act.
new text end

new text begin (e) If valid claims exceed the amount of money available in the grain indemnity account,
the commissioner must pay claims to producers in the order that the claims were received.
When additional money becomes available, the commissioner must resume issuing grain
indemnity payments to each eligible producer until each producer receives the maximum
amount payable under paragraph (a).
new text end

new text begin (f) If the grain indemnity account balance is insufficient to pay refunds under subdivision
11 and valid claims exist, once money is deposited into the grain indemnity account, the
commissioner must issue pending refunds for grain indemnity premium payments before
issuing payments to claimants.
new text end

new text begin Subd. 6. new text end

new text begin Court order. new text end

new text begin (a) The commissioner may apply to a district court for an order
appointing a trustee or receiver to manage and supervise the operations of a grain buyer or
public grain warehouse operator in default. The commissioner may participate in any
resulting court proceeding as an interested party.
new text end

new text begin (b) The commissioner may recover the cost of the appointed trustee using money
appropriated under subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Debt obligation; subrogated claim. new text end

new text begin (a) Money paid by the commissioner to
satisfy a valid claim constitutes a debt obligation of the grain buyer or public grain warehouse
operator in default. The commissioner may take action against the grain buyer or public
grain warehouse operator to recover the amount of any claim payment plus reasonable costs,
attorney fees, and interest computed at the rate provided in section 270C.40. The
commissioner must deposit any amount recovered under this subdivision in the grain
indemnity account.
new text end

new text begin (b) As a condition of payment from the commissioner, a producer must subrogate the
producer's interest in a voluntary extension of credit contract to the commissioner in an
amount equal to any claim payment or payments that the producer received under this
section.
new text end

new text begin (c) The commissioner may recover any debt to the grain indemnity account from a
member of the board or management who acted negligently or fraudulently.
new text end

new text begin Subd. 8. new text end

new text begin Grain indemnity premiums. new text end

new text begin (a) Except as provided in subdivision 10,
producers of grain must be charged a grain indemnity premium as determined and published
by the commissioner not to exceed 0.2 percent of the price on all marketed grain that is sold
to a grain buyer as defined in chapter 223.
new text end

new text begin (b) The grain indemnity premiums required under this section are in addition to any
other fees or assessments required by law.
new text end

new text begin Subd. 9. new text end

new text begin Collection and submission of grain indemnity premiums. new text end

new text begin (a) Each producer
must pay to the commissioner a grain indemnity premium of not more than 0.2 percent of
the net proceeds from all grain sold by the producer to a grain buyer purchasing grain in
Minnesota. When grain is sold to a grain buyer, the grain buyer must deduct the grain
indemnity premium from the proceeds of the sale and pay the grain indemnity premium to
the commissioner on behalf of the producer.
new text end

new text begin (b) When purchasing grain from a producer, a grain buyer must deduct the grain
indemnity premium described in paragraph (a) from the proceeds of the sale and notify the
producer of the amount of the deduction in writing. The grain buyer must forward the grain
indemnity premium to the commissioner for a deposit into the grain indemnity account on
behalf of the producer as described in this subdivision.
new text end

new text begin (c) A grain buyer must clearly indicate the grain indemnity premiums collected under
paragraph (b) in the grain buyer's books and records. A grain buyer must retain books and
records containing the grain indemnity premiums for at least three years. A grain buyer
must make the grain buyer's books and records available for inspection by the commissioner
during regular business hours. The department must take steps reasonably necessary to
verify the accuracy of the grain indemnity premiums as recorded in the grain buyer's books
and records. Any record or portion thereof seized or copied by the commissioner is private
or nonpublic data as provided in section 13.02, except that the commissioner may disclose
this data to aid in the law enforcement process.
new text end

new text begin (d) A grain buyer must submit grain indemnity premiums collected under paragraph (a)
to the commissioner for the purpose of financing or contributing to the financing of the
grain indemnity account by:
new text end

new text begin (1) January 31 for grain indemnity premiums collected during the months of July, August,
September, October, November, and December; and
new text end

new text begin (2) July 31 for grain indemnity premiums collected during the months of January,
February, March, April, May, and June.
new text end

new text begin Subd. 10. new text end

new text begin Amount in grain indemnity account; basis for suspension and
reinstatement of grain indemnity premium collection. new text end

new text begin (a) The grain indemnity premiums
required under subdivision 8 must be collected until the grain indemnity account contains
more than $15,000,000, as of June 30 of any given year.
new text end

new text begin (b) Except as provided in paragraph (c), after the grain indemnity account reaches
$15,000,000, the commissioner must not require the collection of additional grain indemnity
premiums until the amount in the grain indemnity account drops below $9,000,000. In a
year when the commissioner determines that the grain indemnity account is at or below
$9,000,000, the commissioner may reinstate the collection described in this section.
new text end

new text begin (c) The commissioner shall announce the intention to collect the premiums described
in this section by May 1 with collection to begin July 1 until the grain indemnity account
contains at least $15,000,000. The commissioner must notify the public of the commissioner's
intent to reinstate collection of additional grain indemnity premiums through publication
in the State Register and by notifying each licensee of the licensee's obligation to collect
premiums.
new text end

new text begin Subd. 11. new text end

new text begin Grain indemnity refund; opt out. new text end

new text begin (a) Subject to subdivision 9, a producer
that has paid a grain indemnity premium may receive a refund of that premium from the
grain indemnity account by submitting a written demand for a refund to the commissioner,
delivered personally or by first-class mail within 12 months after the producer paid the grain
indemnity premium.
new text end

new text begin (b) A producer must submit a demand for a refund of a grain indemnity premium under
paragraph (a) on a demand for refund form developed by the commissioner. The
commissioner must make the form available to a licensee, producer, or member of the public
upon request.
new text end

new text begin (c) If a producer is entitled to a refund of a grain indemnity premium under this section,
the commissioner must pay the refund within 90 days of receiving the demand for a refund.
If the grain indemnity account balance is insufficient to pay refunds under this subdivision
and valid claims exist, once money is deposited into the grain indemnity account, the
commissioner must issue pending refunds for grain indemnity premium payments before
issuing payments to claimants.
new text end

new text begin (d) If the commissioner announces grain indemnity premiums as required under
subdivision 10 by June 30, the commissioner must send a notice to each producer who
requested a refund of a grain indemnity premium during the previous three fiscal years. The
notice must inform the producer of the deadline for and method of submitting a demand for
a refund to the commissioner under paragraphs (a) and (b) and the method for reentering
the grain indemnity program under paragraph (e).
new text end

new text begin (e) A producer that receives a refund of a grain indemnity premium under paragraph (a)
is not entitled to participate in the grain indemnity program or to receive any payment under
this section unless the producer reenters the grain indemnity program by meeting all of the
following conditions:
new text end

new text begin (1) the producer must submit a request for reentry into the grain indemnity program to
the commissioner. The producer must submit the request on the form required by the
commissioner and must deliver the request to the commissioner;
new text end

new text begin (2) the producer's request is approved by the commissioner; and
new text end

new text begin (3) the producer must pay into the grain indemnity account all grain indemnity premiums
that were refunded to the producer and interest on the refunds as determined by the
commissioner.
new text end

new text begin (f) A producer that reenters the grain indemnity program under paragraph (e) is eligible
to be reimbursed for claims under the grain indemnity program for any breach of contract
that occurs at least 120 days after reentry.
new text end

new text begin (g) A producer is not eligible for a refund of a grain indemnity premium under this
section if the producer has received payment from the grain indemnity account for a valid
claim within the preceding 36 months.
new text end

new text begin Subd. 12. new text end

new text begin Penalties; enforcement action; costs and expenses. new text end

new text begin (a) In addition to any
other penalty or remedy provided by law, a person who knowingly or intentionally commits
any of the following is subject to civil penalties under section 18J.10:
new text end

new text begin (1) refusing or failing to collect any grain indemnity premiums as required under this
section;
new text end

new text begin (2) refusing or failing to pay to the commissioner any grain indemnity premiums collected
under this section;
new text end

new text begin (3) making a false statement, representation, or certification, or knowingly failing to
make a required statement, representation, or certification in a record, report, or other
document required under this section or filed with the commissioner; or
new text end

new text begin (4) resisting, preventing, impeding, or interfering with the commissioner in the
performance of the commissioner's duties under this section.
new text end

new text begin (b) In addition to the civil penalty described in paragraph (a), the commissioner in an
enforcement action for a violation described in paragraph (a), clause (1) or (2), must order
the grain buyer to pay into the grain indemnity account any grain indemnity premiums
collected by the grain buyer that the grain buyer owes to the grain indemnity account and
may order the grain buyer to pay interest on the amount that the grain buyer owes to the
grain indemnity account.
new text end

new text begin Subd. 13. new text end

new text begin Grain bonds; new license holders. new text end

new text begin (a) Except as provided in paragraph (b),
before the commissioner issues a grain buyer or public grain warehouse operator license,
a person who has not been licensed to buy grain or operate a public grain warehouse in the
previous licensing period must file with the commissioner a grain bond in a penal sum of
$100,000. A grain bond must remain in effect for the first three years of the license.
new text end

new text begin (b) 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 $1,000,000 or less.
new text end

new text begin (c) The commissioner may require a supplemental bond in an amount prescribed by the
commissioner based on the financial statements required in section 223.17, subdivision 6.
new text end

new text begin (d) A grain bond must be on a form provided by the commissioner.
new text end

new text begin (e) A grain bond required under paragraphs (a) and (c) must provide for the payment of
any loss caused by the grain buyer's failure to pay upon the owner's demand, including loss
caused by the grain buyer's failure to pay within the time required. The grain bond must be
conditioned upon the grain buyer being duly licensed. A grain bond required under paragraphs
(a) and (c) that is obtained by a public grain warehouse operator must be conditioned that
the public grain warehouse operator issuing a grain warehouse receipt is liable to the depositor
for the delivery of the kind, grade, and net quantity of grain called for by the receipt. A
grain bond must be conditioned upon the operator being duly licensed. For those entities
licensed under this chapter, the entire grain bond must be available to any claims against
the grain bond filed under this chapter.
new text end

new text begin (f) A grain bond must not be cumulative from one licensing period to the next. The
maximum liability of the grain bond must be the grain bond's face value for the licensing
period.
new text end

new text begin (g) A grain bond must be continuous until canceled. To cancel a grain bond, a surety
must provide 90 days' written notice of the grain bond's termination date to the licensee and
the commissioner.
new text end

new text begin (h) Upon the commissioner's determination that a claim is valid, the surety for any claims
against the grain bond must make payments to the grain indemnity account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 56.

Minnesota Statutes 2022, section 232.22, subdivision 5, is amended to read:

Subd. 5.

Statement of grain in storage; reports.

deleted text begin (a) All public grain warehouse operators
must by February 15 of each year file with the commissioner on a form approved by the
commissioner a report showing the annual average liability of all grain outstanding on grain
warehouse receipts, open storage, and grain stored for feed processing that occurred during
the preceding calendar year. This report shall be used for the purpose of establishing the
penal sum of the bond.
deleted text end

deleted text begin (b) Warehouse operators that are at a maximum bond and want to continue at maximum
bond do not need to file this report.
deleted text end

deleted text begin (c) It is a violation of this chapter for any public grain warehouse operator to fail to file
the report required in paragraph (a).
deleted text end

deleted text begin (d) deleted text end new text begin (a) new text end Every public grain warehouse operator shall keep in a place of safety complete
and accurate records and accounts relating to any grain warehouse operated. The records
shall reflect each commodity received and shipped daily, the balance remaining in the grain
warehouse at the close of each business day, a listing of all unissued grain warehouse receipts
in the operator's possession, a record of all grain warehouse receipts issued which remain
outstanding and a record of all grain warehouse receipts which have been returned for
cancellation. Copies of grain warehouse receipts or other documents evidencing ownership
of grain by a depositor, or other liability of the grain warehouse operator, shall be retained
as long as the liability exists but must be kept for a minimum of three years.

deleted text begin (e) deleted text end new text begin (b) new text end Every public grain warehouse operator must maintain in the grain warehouse at
all times grain of proper grade and sufficient quantity to meet delivery obligations on all
outstanding grain warehouse receipts.

Sec. 57.

Laws 2022, chapter 95, article 2, section 29, subdivision 6, is amended to read:

Subd. 6.

Expiration.

This section expires deleted text begin June 30 deleted text end new text begin December 31 new text end , 2024.

Sec. 58. new text begin REPORT REQUIRED; FERAL PIGS AND MINK.
new text end

new text begin By February 15, 2024, the commissioner of natural resources, in cooperation with the
Board of Animal Health and the commissioners of agriculture and health, must submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture and environment and natural resources that:
new text end

new text begin (1) identifies the responsibilities of the Board of Animal Health and the commissioners
of natural resources, health, and agriculture in managing feral pigs and mink;
new text end

new text begin (2) recommends any clarifications or modifications to the responsibilities identified in
clause (1); and
new text end

new text begin (3) includes policy recommendations for managing feral pigs and mink to further prevent
negative impacts on the environment and human health.
new text end

Sec. 59. new text begin REPORT REQUIRED; GRAIN ADVISORY GROUP.
new text end

new text begin The commissioner of agriculture must convene members of the Grain Advisory Group
and develop recommendations regarding bonding requirements for licensed grain buyers
and public grain warehouse operators to better protect farmers who sell and store grain in
this state. No later than February 1, 2024, the commissioner must report recommendations
to the legislative committees with jurisdiction over agriculture. Participating stakeholders
must be given an opportunity to include written testimony in the commissioner's report.
new text end

Sec. 60. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Grain buyers and warehouses. new text end

new text begin Minnesota Statutes 2022, sections
223.17, subdivisions 4 and 8; and 232.22, subdivisions 4, 6, 6a, and 7, new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Bioincentive programs. new text end

new text begin Minnesota Statutes 2022, sections 41A.16, subdivision
7; 41A.17, subdivision 6; 41A.18, subdivision 6; and 41A.21, subdivision 6, new text end new text begin are repealed.
new text end

new text begin Subd. 3. new text end

new text begin Plants, nurseries, and hemp. new text end

new text begin Minnesota Statutes 2022, sections 18H.02,
subdivisions 21, 22, and 23; 18H.07, subdivisions 2 and 3; 18K.05; and 18K.09, new text end new text begin are repealed.
new text end

new text begin Subd. 4. new text end

new text begin Emerging farmers. new text end

new text begin Minnesota Statutes 2022, section 17.055, subdivision 2, new text end new text begin
is repealed.
new text end

new text begin Subd. 5. new text end

new text begin Federal funds. new text end

new text begin Minnesota Statutes 2022, section 35.156, subdivision 2, new text end new text begin is
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, except subdivision 1 is
effective July 1, 2024.
new text end

ARTICLE 3

BROADBAND

Section 1. new text begin BROADBAND DEVELOPMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 73,350,000 new text end

new text begin $ new text end

new text begin 50,350,000 new text end

new text begin (a) $350,000 each year is for the Office of
Broadband Development.
new text end

new text begin (b) $75,000,000 the first year and $50,000,000
the second year are for transfer to the
border-to-border broadband fund account
established in Minnesota Statutes, section
116J.396. Of the amount transferred each year,
$20,000,000 is for lower population density
program grants under Minnesota Statutes,
section 116J.3952. This is a onetime
appropriation.
new text end

Sec. 3.

Minnesota Statutes 2022, section 116J.395, subdivision 7, is amended to read:

Subd. 7.

Limitation.

(a) No grant awarded under this section may fund more than 50
percent of the total cost of a project.

(b) Grants awarded to a single project under this section must not exceed deleted text begin $5,000,000 deleted text end new text begin
$10,000,000 new text end .

Sec. 4.

new text begin [116J.3952] LOWER POPULATION DENSITY GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A lower population density grant program is established
in the Department of Employment and Economic Development. The purpose of the lower
population density grant program is to provide broadband service to unserved and
underserved areas of the state where a 50 percent match formula is not adequate to make a
business case for the extension of broadband facilities.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin Grants awarded under this section may fund up to 75 percent of the
total cost of a project and must otherwise adhere to section 116J.395, subdivisions 1 to 6
and subdivision 7, paragraph (b).
new text end

Sec. 5.

Minnesota Statutes 2022, section 116J.396, subdivision 2, is amended to read:

Subd. 2.

Expenditures.

Money in the account may be used only:

(1) for grant awards made under sections 116J.395 deleted text begin and deleted text end new text begin to new text end deleted text begin 116J.3951 deleted text end new text begin 116J.3952 new text end , including
costs incurred by the Department of Employment and Economic Development to administer
that section;

(2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development; or

(3) to contract for the collection of broadband deployment data from providers and the
creation of maps showing the availability of broadband service.

Sec. 6.

Laws 2022, chapter 95, article 4, section 2, is amended to read:

Sec. 2. LOWER POPULATION DENSITY PILOT PROGRAM.

(a) The commissioner of employment and economic development must establish a pilot
program to provide broadband service to unserved and underserved areas, as defined in
Minnesota Statutes, section 116J.394, of the state where a 50 percent match formula is not
adequate to make a business case for the extension of broadband facilities. Grants awarded
under this section shall adhere to all other requirements of Minnesota Statutes, section
116J.395, subdivisions 1 to 6, and may fund up to 75 percent of the total cost of a project,
notwithstanding Minnesota Statutes section 116J.395, subdivision 7. Grants awarded to a
single project under this section may not exceed $10,000,000.

(b) The commissioner of employment and economic development may use up to
$30,000,000 from the appropriations in sections 3 and 4 for the lower population density
pilot program under paragraph (a).

(c) No later than December 31, 2023, the Office of Broadband Development must submit
a report to the chairs and ranking minority members of the senate and house of representatives
committees with primary jurisdiction over broadband policy and finance analyzing the
impacts of this section on the number and amounts of grants awarded under Minnesota
Statutes, section 116J.395.

new text begin (d) This section expires December 31, 2026.
new text end

APPENDIX

Repealed Minnesota Statutes: H2278-1

17.055 EMERGING FARMERS.

Subd. 2.

Expiration.

This section expires August 1, 2025.

18H.02 DEFINITIONS.

Subd. 21.

Nursery stock broker.

"Nursery stock broker" means a nursery stock dealer engaged in the business of selling or reselling certified nursery stock as a business transaction without taking ownership or handling the nursery stock.

Subd. 22.

Nursery stock dealer.

"Nursery stock dealer" means a person involved in the acquisition and further distribution of certified nursery stock; the utilization of certified nursery stock for landscaping or purchase of certified nursery stock for other persons; or the distribution of certified nursery stock with a mechanical digger, commonly known as a tree spade, or by any other means. A person who purchases more than half of the certified nursery stock offered for sale at a sales location during the current certificate year is considered a nursery stock dealer rather than a nursery stock grower for the purposes of determining a proper fee schedule. Nursery stock brokers, landscapers, and tree spade operators are considered nursery stock dealers for purposes of determining proper certification.

Subd. 23.

Nursery stock grower.

"Nursery stock grower" includes, but is not limited to, a person who raises, grows, or propagates nursery stock, outdoors or indoors. A person who grows more than half of the certified nursery stock offered for sale at a sales location during the current certificate year is considered a nursery stock grower for the purpose of determining a proper fee schedule.

18H.07 FEE SCHEDULE.

Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must pay an annual fee based on the area of all acreage on which nursery stock is grown as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must be charged for each month, or portion thereof, that the fee is delinquent up to a maximum of 30 percent for any application for renewal not postmarked or electronically date stamped by December 31 of the current year.

(c) A nursery stock grower found operating without a valid nursery stock grower certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an annual fee based on the dealer's gross sales of certified nursery stock per location during the most recent certificate year. A certificate applicant operating for the first time must pay the minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due must be charged for each month, or portion thereof, that the fee is delinquent up to a maximum of 30 percent for any application for renewal not postmarked or electronically date stamped by December 31 of the current year.

(c) A nursery stock dealer found operating without a valid nursery stock dealer certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.

18K.05 ANNUAL REPORT; SALES NOTIFICATION.

(a) Annually, a licensee must file with the commissioner:

(1) documentation demonstrating to the commissioner's satisfaction that the seeds planted by the licensee are of a type and variety that contain no more than three-tenths of one percent delta-9 tetrahydrocannabinol; and

(2) a copy of any contract to grow industrial hemp.

(b) Within 30 days, a licensee must notify the commissioner of each sale or distribution of industrial hemp grown by the licensee including, but not limited to, the name and address of the person receiving the industrial hemp and the amount of industrial hemp sold or distributed.

18K.09 PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.

Subdivision 1.

Authorized activity.

The commissioner may grow or cultivate industrial hemp pursuant to a pilot program administered by the commissioner to study the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1) authorize institutions of higher education to grow or cultivate industrial hemp as part of the commissioner's pilot program or as is necessary to perform other agricultural, renewable energy, or academic research; and (2) contract with public or private entities for testing or other activities authorized under this subdivision. Authorized activity under this section may include collecting seed from wild hemp sources.

Subd. 2.

Site registration.

Before growing or cultivating industrial hemp pursuant to this section, each site must be registered with and certified by the commissioner. A person must register each site annually in the form prescribed by the commissioner and must pay the annual registration and certification fee established by the commissioner in accordance with section 16A.1285, subdivision 2.

Subd. 3.

Rulemaking.

The commissioner may adopt rules that govern the pilot program pursuant to this section and Public Law 113-79.

35.156 CHRONIC WASTING DISEASE.

Subd. 2.

Federal fund account.

Money granted to the state by the federal government for purposes of chronic wasting disease must be credited to a separate account in the federal fund and is annually appropriated to the commissioner of agriculture for the purposes for which the federal grant was made according to section 17.03.

41A.16 ADVANCED BIOFUEL PRODUCTION INCENTIVE.

Subd. 7.

Eligibility for participants after April 1, 2023.

(a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials may be sourced from within a 100-mile radius. Raw materials must be from agricultural or forestry sources or from solid waste. The facility must be located in Minnesota, must begin production at a specific location after April 1, 2023, and before June 30, 2025, and must not begin operating above 23,750 MMbtu of quarterly 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 23,750 MMbtu of 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).

(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.

41A.17 RENEWABLE CHEMICAL PRODUCTION INCENTIVE.

Subd. 6.

Eligibility for participants after April 1, 2023.

(a) A facility eligible for payment under this program must source at least 80 percent biobased content from Minnesota. For the purposes of this subdivision, "biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866. If a facility is sited 50 miles or less from the state border, biobased content must be sourced from within a 100-mile radius. Biobased content must be from agricultural or forestry sources or from solid waste. The facility must be located in Minnesota, must begin production at a specific location after April 1, 2023, and before June 30, 2025, and must not begin production of 750,000 pounds or more 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 750,000 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).

(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.

41A.18 BIOMASS THERMAL PRODUCTION INCENTIVE.

Subd. 6.

Eligibility for participants after April 1, 2023.

(a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials should be sourced from within a 100-mile radius. Raw materials must be from agricultural or forestry sources. The facility must be located in Minnesota, must have begun production at a specific location after April 1, 2023, and before June 30, 2025, 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).

(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.

41A.21 ORIENTED STRAND BOARD PRODUCTION INCENTIVE.

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.

223.17 LICENSES; BONDING; CLAIMS; DISBURSEMENTS.

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 $1,000,000 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.

Subd. 8.

Bond disbursement.

(a) The bond required under subdivision 4 shall provide for payment of loss caused by the grain buyer's failure to pay, upon the owner's demand, the purchase price of grain sold to the grain buyer in the manner provided by subdivision 5, including loss caused by failure to pay within the time required. The bond shall be conditioned upon the grain buyer being duly licensed as provided herein.

(b) The commissioner shall promptly determine the validity of all claims filed and notify the claimants of the determination. An aggrieved party may appeal the commissioner's determination by requesting, within 15 days, that the commissioner initiate a contested case proceeding. In the absence of such a request, or following the issuance of a final order in a contested case, the surety company shall issue payment promptly to those claimants entitled to payment. The commissioner may apply to the district court for an order appointing a trustee or receiver to manage and supervise the operations of the grain buyer in default. The commissioner may participate in any resulting court proceeding as an interested party.

(c) If a grain buyer has become liable to more than one producer by reason of breaches of the conditions of the bond and the amount of the bond is insufficient to pay the entire liability to all producers entitled to the protection of the bond, the proceeds of the bond shall be apportioned among the bona fide claimants.

(d) The bond shall not be cumulative from one licensing period to the next. The maximum liability of the bond shall be its face value for the licensing period.

(e) The bond disbursement shall occur 200 days from the date the commissioner publishes a public notice of a claim. At the end of this time period, the commissioner shall initiate bond payments on all valid claims received by the commissioner.

232.22 LICENSES, BONDING CLAIMS, DISBURSEMENTS.

Subd. 4.

Bonding.

(a) Before a license is issued, except as provided under paragraph (c), the applicant for a public grain warehouse operator's license shall file with the commissioner a bond in a penal sum prescribed by the commissioner based on the annual average storage liability as stated on the statement of grain in storage report or on the gross annual grain purchase report, whichever is greater, and applying the following amounts:

(1) $10,000 for storages with annual average storage liability of more than $0 but not more than $25,000;

(2) $20,000 for storages with annual average storage liability of more than $25,001 but not more than $50,000;

(3) $30,000 for storages with annual average storage liability of more than $50,001 but not more than $75,000;

(4) $50,000 for storages with annual average storage liability of more than $75,001 but not more than $100,000;

(5) $75,000 for storages with annual average storage liability of more than $100,001 but not more than $200,000;

(6) $125,000 for storages with annual average storage liability of more than $200,001 but not more than $300,000;

(7) $175,000 for storages with annual average storage liability of more than $300,001 but not more than $400,000;

(8) $225,000 for storages with annual average storage liability of more than $400,001 but not more than $500,000;

(9) $275,000 for storages with annual average storage liability of more than $500,001 but not more than $600,000;

(10) $325,000 for storages with annual average storage liability of more than $600,001 but not more than $700,000;

(11) $375,000 for storages with annual average storage liability of more than $700,001 but not more than $800,000;

(12) $425,000 for storages with annual average storage liability of more than $800,001 but not more than $900,000;

(13) $475,000 for storages with annual average storage liability of more than $900,001 but not more than $1,000,000; and

(14) $500,000 for storages with annual average storage liability of more than $1,000,000.

(b) 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.

(c) 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.

Subd. 6.

Bond claims.

A person claiming to be damaged by a breach of the conditions of a bond of a licensed public grain warehouse operator may file a written claim with the commissioner stating the facts constituting the claim. The claim must be filed with the commissioner within 180 days of the breach of the conditions of the bond. If the commissioner has reason to believe that a claim is valid, the commissioner may immediately suspend the license of the public grain warehouse operator and the licensee must surrender the license to the commissioner. Within 15 days the licensee may request an administrative hearing subject to chapter 14 to determine whether the license should be revoked. If no request is made within 15 days the commissioner shall revoke the license.

Subd. 6a.

Bond determinations.

If a public grain warehouse operator is licensed under both this chapter and chapter 223, the warehouse shall have its bond determined by its gross annual grain purchase amount or its annual average grain storage value, whichever is greater. For those entities licensed under this chapter and chapter 223, the entire bond shall be available to any claims against the bond for claims filed under this chapter and chapter 223.

Subd. 7.

Bond disbursement.

(a) The bond of a public grain warehouse operator must be conditioned that the public grain warehouse operator issuing a grain warehouse receipt is liable to the depositor for the delivery of the kind, grade and net quantity of grain called for by the receipt.

(b) Upon notification of default, the commissioner shall determine the validity of all claims and notify all parties having filed claims. Any aggrieved party may appeal the commissioner's determination by requesting, within 15 days, that the commissioner initiate a contested case proceeding. In the absence of such a request, or following the issuance of a final order in a contested case, the surety company shall issue payment to those claimants entitled to payment. If the commissioner determines it is necessary, the commissioner may apply to the district court for an order appointing a trustee or receiver to manage and supervise the operations of the grain warehouse operator in default. The commissioner may participate in any resulting court proceeding as an interested party.

(c) For the purpose of determining the amount of bond disbursement against all valid claims under a condition one bond, all grain owned or stored in the public grain warehouse shall be sold and the combined proceeds deposited in a special fund. Payment shall be made from the special fund satisfying the valid claims of grain warehouse receipt holders.

(d) If a public grain warehouse operator has become liable to more than one depositor or producer by reason of breaches of the conditions of the bond and the amount of the bond is insufficient to pay, beyond the proceeds of the special fund, the entire liability to all valid claimants, the proceeds of the bond and special fund shall be apportioned among the valid claimants on a pro rata basis.

(e) A bond is not cumulative from one licensing period to the next. The maximum liability of the bond shall be its face value for the licensing period.

(f) The bond disbursement shall occur 200 days from the date the commissioner publishes a public notice of a claim. At the end of this time period, the commissioner shall initiate bond payments on all valid claims received by the department.