HF 3558

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/11/2020 09:24am

A bill for an act
relating to agriculture; encouraging advanced grant payments to certain persons;
establishing an emerging farmers working group; doubling the maximum loan
amount under the pilot agricultural microloan program; modifying Noxious Weed
Advisory Committee membership; defining processing for purposes of hemp law;
modifying hemp rulemaking authority; making changes to seed law; amending
Minnesota Statutes 2018, sections 17.03, by adding a subdivision; 18.91,
subdivision 2; 18K.02, by adding a subdivision; 18K.06; 21.75, subdivision 1;
21.85, subdivision 15; 41B.056, subdivision 4; proposing coding for new law in
Minnesota Statutes, chapters 17; 21.

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

Section 1.

Minnesota Statutes 2018, section 17.03, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Advance grant payments encouraged. new text end

new text begin Notwithstanding section 16A.41,
subdivision 1, the commissioner is encouraged to advance up to 50 percent of a grant award
to a person who demonstrates to the commissioner's satisfaction that the person:
new text end

new text begin (1) is new to farming or has farmed for less than ten consecutive years;
new text end

new text begin (2) is a member of a protected group as defined in section 43A.02, subdivision 33, or a
qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph (b); or
new text end

new text begin (3) has served in the armed forces and first obtained veteran status during the last ten
years.
new text end

Sec. 2.

new text begin [17.055] EMERGING FARMERS.
new text end

new text begin Subdivision 1. new text end

new text begin Emerging farmers working group. new text end

new text begin 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, or urban,
or any other emerging farmers as determined by the commissioner. 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.
new text end

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin This section expires August 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2018, section 18.91, subdivision 2, is amended to read:

Subd. 2.

Membership.

The commissioner shall appoint members, which shall include
representatives from the following:

(1) new text begin the Department of new text end Horticultural Science deleted text begin , agronomy, and forestry deleted text end at the University
of Minnesota;

new text begin (2) the Department of Agronomy at the University of Minnesota;
new text end

new text begin (3) the Department of Forest Resources at the University of Minnesota;
new text end

deleted text begin (2) deleted text end new text begin (4) new text end the nursery and landscape industry in Minnesota;

deleted text begin (3) deleted text end new text begin (5) new text end the seed industry in Minnesota;

deleted text begin (4) deleted text end new text begin (6) new text end the Department of Agriculture;

deleted text begin (5) deleted text end new text begin (7) new text end the Department of Natural Resources;

deleted text begin (6) deleted text end new text begin (8) new text end a conservation organization;

deleted text begin (7) deleted text end new text begin (9) new text end an environmental organization;

deleted text begin (8) deleted text end new text begin (10) new text end at least two farm organizations;

deleted text begin (9) deleted text end new text begin (11) new text end the county agricultural inspectors;

deleted text begin (10) deleted text end new text begin (12) new text end city deleted text begin , township, and county deleted text end governments;

new text begin (13) township governments;
new text end

new text begin (14) county governments;
new text end

deleted text begin (11) deleted text end new text begin (15) new text end the Department of Transportation;

deleted text begin (12) deleted text end new text begin (16) new text end the University of Minnesota Extension;

deleted text begin (13) deleted text end new text begin (17) new text end the timber and forestry industry in Minnesota;

deleted text begin (14) deleted text end new text begin (18) new text end the Board of Water and Soil Resources;

deleted text begin (15) deleted text end new text begin (19) new text end soil and water conservation districts;

deleted text begin (16) deleted text end new text begin (20) the new text end Minnesota Association of County Land Commissioners; and

deleted text begin (17) deleted text end new text begin (21) other new text end members as needed.

Sec. 4.

Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Processing. new text end

new text begin "Processing" means rendering by refinement hemp plants or hemp
plant parts from their natural or original state after harvest. Processing includes but is not
limited to decortication, devitalization, chopping, crushing, extraction, and packaging.
Processing does not include typical farm operations such as sorting, grading, baling, and
harvesting.
new text end

Sec. 5.

Minnesota Statutes 2018, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, new text begin processing,
new text end and licensing of industrial hemp. new text begin Notwithstanding section 14.125, the commissioner's
authority to adopt these rules expires June 30, 2022.
new text end

(b) Rules adopted under paragraph (a) must include, but not be limited to, 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. 6.

Minnesota Statutes 2018, section 21.75, subdivision 1, is amended to read:

Subdivision 1.

Enforcement; rulemaking.

deleted text begin The duty of enforcing sections 21.71 to
21.78 and carrying out the provisions and requirements thereof is vested in the commissioner
of agriculture. The commissioner, personally or through agents, shall deleted text end new text begin The commissioner
must enforce sections 21.71 to 21.78. The commissioner must new text end :

(1) sample, inspect, make analysis of, and test weed-seed infested agricultural seeds and
grains, or screenings, transported, sold, or offered, or exposed for sale within this state for
any purpose, at such time and place, and to such extent as the commissioner may deem
necessary to determine whether such weed-seed infested agricultural seeds and grain, or
screenings, is in compliance with the provisions of sections 21.71 to 21.78, and to notify
promptly the person who transported, sold, offered, or exposed the weed-seed infested
agricultural seeds and grains, or screenings, for sale of any violation; new text begin and
new text end

(2) prescribe and, after public hearing following due public notice, adopt such rules as
may be necessary to secure the efficient enforcement of sections 21.71 to 21.78. deleted text begin Such rules
are to be adopted in accordance with the law; and
deleted text end

deleted text begin (3) Prescribe and, after public hearing following due public notice, establish, add to, or
subtract therefrom by rules a restricted noxious weed-seed list.
deleted text end

Sec. 7.

Minnesota Statutes 2018, section 21.85, subdivision 15, is amended to read:

Subd. 15.

Prohibited and restricted seeds.

new text begin (a) new text end The commissioner deleted text begin shall deleted text end new text begin , in consultation
with the Seed Program Advisory Committee, must new text end determine species that are considered
prohibited weed seeds and restricted noxious weed seeds and the allowable rate of occurrence
of restricted noxious weed seeds deleted text begin . deleted text end new text begin subject to sections 21.80 to 21.92. The commissioner must
prepare, publish, and revise at least once every three years, a list of prohibited and restricted
noxious weed seeds. The commissioner must distribute the list to the public and may request
the help of the United States Department of Agriculture's published All-States Noxious
Weed Seed List or any other organization that the commissioner considers appropriate to
assist in the distribution. The commissioner may, in consultation with the Seed Program
Advisory Committee, accept and consider noxious weed seed designation petitions from
Minnesota citizens or Minnesota organizations or associations including the Noxious Weed
Advisory Committee.
new text end

new text begin (b) Restricted weed seeds, if present in weed-seed infested agricultural seeds and grains,
or screenings, must not be present singly or collectively in excess of the rate of 90 per pound.
new text end

new text begin (c) Prohibited noxious weed seeds must not be present in weed-seed infested agricultural
seeds and grains, or screenings.
new text end

Sec. 8.

new text begin [21.851] ADVISORY COMMITTEE; MEMBERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner must consult with the Seed Program Advisory
Committee to advise the commissioner concerning responsibilities under the seed regulatory
program. The committee must evaluate species for invasiveness, difficulty of control, cost
of control, benefits, and amount of injury caused by each species. For each species evaluated,
the committee must recommend to the commissioner whether a species should be listed as
a prohibited noxious weed seed or restricted noxious weed seed or not be listed. Species
designated as prohibited or restricted noxious weed seeds must be reevaluated every three
years for a recommendation on whether or not the designated species need to remain on the
noxious weed seed lists. The committee must also advise the commissioner on the
implementation of the Minnesota Seed Law. Members of the committee are not entitled to
reimbursement of expenses nor payment of per diem. Members serve two-year terms with
subsequent reappointment by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commissioner must appoint members to include
representatives from:
new text end

new text begin (1) the College of Food, Agricultural and Natural Resource Sciences or Extension at the
University of Minnesota;
new text end

new text begin (2) Minnesota Crop Improvement;
new text end

new text begin (3) the seed industry in Minnesota, a minimum of six members with representation from
multinational, national, regional, and Minnesota seed companies;
new text end

new text begin (4) the grain industry in Minnesota;
new text end

new text begin (5) farmers in Minnesota;
new text end

new text begin (6) other state and federal agencies with an interest in seed; and
new text end

new text begin (7) other members as needed.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin The committee must select a chair from its membership. Meetings
of the committee may be called by or at the direction of the commissioner or the chair.
new text end

Sec. 9.

Minnesota Statutes 2018, section 41B.056, subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may disburse loans through an intermediary to farmers
who are eligible under subdivision 3. The total accumulative loan principal must not exceed
deleted text begin $10,000 deleted text end new text begin $20,000 new text end per loan.

(b) Refinancing an existing debt is not an eligible purpose.

(c) The loan may be disbursed over a period not to exceed six years.

(d) A borrower may receive loans, depending on the availability of funds, up to 70
percent of the estimated value of the crop or livestock.

(e) Security for the loan must be a personal note executed by the borrower and any other
security required by the intermediary or the authority.

(f) The authority may prescribe forms and establish an application process for applicants
to apply for a loan.

(g) The interest payable on loans for the pilot agricultural microloan program must be
at a rate determined by the authority.

(h) Loans under this program will be made using money in the revolving loan account
established under section 41B.06.

(i) Repayments of financial assistance under this section, including principal and interest,
must be deposited into the revolving loan account established under section 41B.06.