HF 3763

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 02:13pm

A bill for an act
relating to state government; authorizing supplemental agriculture appropriations;
modifying appropriations; providing broadband appropriation transfer authority;
making policy and technical changes to agriculture provisions; establishing and
modifying agriculture programs; requiring an application for federal broadband
aid; requiring reports; appropriating money; amending Minnesota Statutes 2022,
sections 3.7371, subdivisions 2, 3, by adding subdivisions; 17.133, subdivision 1;
18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28, by adding a
subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5; 18B.33,
subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1; 18B.36,
subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by adding
subdivisions; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221; 18C.70,
subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 2; 18D.301, subdivision
1; 28A.10; 28A.21, subdivision 6; 31.74; 31.94; 32D.30; 41B.039, subdivision 2;
41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 1b; 41B.045,
subdivision 2; 41B.047, subdivision 1; 116J.396, by adding a subdivision; 223.17,
subdivision 6; 232.21, subdivisions 3, 7, 11, 12, 13; Minnesota Statutes 2023
Supplement, sections 17.055, subdivision 3; 17.133, subdivision 3; 17.134, by
adding a subdivision; 18C.421, subdivision 1; 18C.425, subdivision 6; 18K.06;
41A.19; Laws 2023, chapter 43, article 1, sections 2; 4; proposing coding for new
law in Minnesota Statutes, chapters 18B; 18C; repealing Minnesota Statutes 2022,
sections 3.7371, subdivision 7; 34.07; Minnesota Rules, parts 1506.0010;
1506.0015; 1506.0020; 1506.0025; 1506.0030; 1506.0035; 1506.0040.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2023, chapter 43, article 1, section 2, is amended to read:

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1. Total Appropriation

$

deleted text begin 92,025,000 deleted text end new text begin 88,025,000 new text end

$

deleted text begin 72,223,000 deleted text end new text begin 80,518,000 new text end

Appropriations by Fund
	2024	2025
General	deleted text begin 91,626,000 deleted text end new text begin 87,626,000 new text end	deleted text begin 71,824,000 deleted text end new text begin 80,119,000 new text end
Remediation	399,000	399,000

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

Subd. 2. Protection Services

Appropriations by Fund
	2024	2025
General	deleted text begin 32,034,000 deleted text end new text begin 32,034,000 new text end	deleted text begin 18,743,000 deleted text end new text begin 22,438,000 new text end
Remediation	399,000	399,000

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

(b) $625,000 the first year and deleted text begin $625,000 deleted text end new text begin
$925,000 new text end the second year are for the soil
health financial assistance program under
Minnesota Statutes, section 17.134. The
commissioner may award no more than
$50,000 of the appropriation each year to a
single recipient. The commissioner may use
up to 6.5 percent of this appropriation for costs
incurred to administer the program. 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. The base for this
appropriation is $639,000 in fiscal year 2026
and each year thereafter.

(c) $800,000 the first year deleted text begin is deleted text end new text begin and $100,000 the
second year are new text end for transfer to the pollinator
research account established under Minnesota
Statutes, section 18B.051. The base for this
transfer is $100,000 in fiscal year 2026 and
each year thereafter.

(d) $150,000 the first year and $150,000 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 under
Minnesota Statutes, section 18.90, to counties,
municipalities, and other weed management
entities, including Minnesota Tribal
governments as defined in Minnesota Statutes,
section 10.65. This is a onetime appropriation.

(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.

(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.

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

(h) $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.

(i) $2,200,000 the first year and $1,650,000
the second year are additional funding to
maintain the current level of service delivery
for programs under this subdivision. The base
for this appropriation is $1,925,000 for fiscal
year 2026 and each year thereafter.

(j) $250,000 the first year and $250,000 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. By
February 1 each year, the commissioner must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
finance and policy detailing uses of the funds
in this paragraph, including administrative
costs, and the achievements these funds
contributed to. The commissioner may use up
to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation.

(k) $45,000 the first year and $45,000 the
second year are appropriated for
wolf-livestock conflict-prevention grants. The
commissioner may use some of this
appropriation to support nonlethal prevention
work performed by federal wildlife services.
This is a onetime appropriation.

(l) $10,000,000 the first year is for transfer to
the grain indemnity account established in
Minnesota Statutes, section 223.24. This is a
onetime transfer.

(m) $125,000 the first year and $125,000 the
second year are for the PFAS in pesticides
review. This is a onetime appropriation.

(n) $1,941,000 the first year is for transfer to
the food handler license account. This is a
onetime transfer.

new text begin (o) $3,072,000 the second year is for nitrate
home water treatment, including reverse
osmosis, for private drinking-water wells with
nitrate in excess of the maximum contaminant
level of ten milligrams per liter and located in
Dodge, Fillmore, Goodhue, Houston, Mower,
Olmsted, Wabasha, or Winona County. The
commissioner must prioritize households at
or below 300 percent of the federal poverty
guideline and households with infants or
pregnant individuals. The commissioner may
also use this appropriation for education,
outreach, and technical assistance to
homeowners. Notwithstanding Minnesota
Statutes, section 16B.98, subdivision 14, the
commissioner may use up to 6.5 percent of
this appropriation for administrative costs.
This is a onetime appropriation and is
available until June 30, 2027.
new text end

new text begin (p) $223,000 the second year is for transfer to
the commissioner of health for the private well
drinking-water assistance program. This is a
onetime transfer and is available until June
30, 2027.
new text end

Subd. 3. Agricultural Marketing and Development

5,165,000

4,985,000

(a) $150,000 the first year and $150,000 the
second year are to expand international trade
opportunities and markets for Minnesota
agricultural products.

(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 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.

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

(d) 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.

(e) $600,000 the first year and $420,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $490,000 deleted text end new text begin $510,000 new text end for fiscal
year 2026 and each year thereafter.

(f) $100,000 the first year and $100,000 the
second year are for mental health outreach and
support to farmers, ranchers, and others in the
agricultural community and for farm safety
grant and outreach programs under Minnesota
Statutes, section 17.1195. Mental health
outreach and support may include a 24-hour
hotline, stigma reduction, and education.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(g) $100,000 the first year and $100,000 the
second year are to award and administer grants
deleted text begin for infrastructure deleted text end new text begin and other forms of financial
assistance new text end to support EBT, SNAP, SFMNP,
and related programs at farmers markets.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(h) $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 6.5 percent
of the appropriation each year to administer
the grant program. Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year. This
is a onetime appropriation.

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

deleted text begin 37,809,000 deleted text end new text begin 33,809,000 new text end

deleted text begin 33,809,000 deleted text end new text begin 38,109,000 new text end

(a) $10,702,000 the first year and $10,702,000
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.

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

(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);

(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 and disease prevention
measures;

(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;

(4) $450,000 the first year is for the cultivated
wild rice breeding project at the North Central
Research and Outreach Center to include a
tenure track/research associate plant breeder;

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

(6) $802,000 the first year and $802,000 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 $802,000 in fiscal year 2026 and
each year thereafter. By February 1 each year,
the dean of the College of Food, Agricultural
and Natural Resource Sciences must submit
a report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and policy
and higher education detailing uses of the
funds in this paragraph, including
administrative costs, and the achievements
these funds contributed to; and

(7) $350,000 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.

(b) The base for the agriculture research,
education, extension, and technology transfer
program is $10,352,000 in fiscal year 2026
and $10,352,000 in fiscal year 2027.

(c) deleted text begin $27,107,000 deleted text end new text begin $23,107,000 new text end the first year deleted text begin and
$23,107,000 the second year are deleted text end new text begin is new text end for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
deleted text begin each year deleted text end 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, with preference given to hemp fiber
processing equipment; 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.

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

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

(2) $5,750,000 the first year deleted text begin and $5,750,000
the second year are deleted text end new text begin is new text end for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2025 deleted text begin , and the second year appropriation is
available until June 30, 2026 deleted text end . 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 deleted text begin . The base under this clause is
$3,000,000 in fiscal year 2026 and each year
thereafter deleted text end ;

(3) $3,375,000 the first year deleted text begin and $3,375,000
the second year are deleted text end new text begin is new text end 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 deleted text begin .
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter deleted text end ;

(4) $1,250,000 the first year deleted text begin and $1,250,000
the second year are deleted text end new text begin is new text end 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 deleted text begin . The
base under this clause is $250,000 in fiscal
year 2026 and each year thereafter deleted text end ;

(5) $1,150,000 the first year deleted text begin and $1,150,000
the second year are deleted text end new text begin is new text end for providing more
fruits, vegetables, meat, poultry, grain, and
dairy for children in school and early
childhood education deleted text begin centers deleted text end new text begin settings new text end ,
including, at the commissioner's discretion,
providing grants to reimburse schools and
early childhood education deleted text begin centers deleted text end new text begin and child
care providers new text end for purchasing equipment and
agricultural products. new text begin Organizations must
participate in the National School Lunch
Program or the Child and Adult Care Food
Program to be eligible. new text end Of the amount
appropriated, $150,000 deleted text begin each year deleted text end is for a
statewide coordinator of farm-to-institution
strategy and programming. The coordinator
must consult with relevant stakeholders and
provide technical assistance and training for
participating farmers and eligible grant
recipients deleted text begin . The base under this clause is
$1,294,000 in fiscal year 2026 and each year
thereafter deleted text end ;

deleted text begin (6) $4,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. 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 allocation
in this clause is onetime;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end $2,000,000 the first year deleted text begin and
$2,000,000 the second year are deleted text end new text begin is new text end for urban
youth agricultural education or urban
agriculture community development; and

deleted text begin (8) deleted text end new text begin (7) new text end $1,000,000 the first year deleted text begin and
$1,000,000 the second year are deleted text end new text begin is new text end for the good
food access program under Minnesota
Statutes, section 17.1017.

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 begin (d) $27,407,000 the second year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
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, with
preference given to hemp fiber processing
equipment; 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 second year is 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) $5,750,000 the second year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2027. 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 $3,000,000 in fiscal year 2026 and
each year thereafter;
new text end

new text begin (3) $3,475,000 the second year is 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 ten 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 money
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.
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter;
new text end

new text begin (4) $1,250,000 the second year is 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, 2027, and
may be used for other purposes under this
paragraph. The base under this clause is
$250,000 in fiscal year 2026 and each year
thereafter;
new text end

new text begin (5) $1,350,000 the second year is for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients. The base under this
clause is $1,294,000 in fiscal year 2026 and
each year thereafter;
new text end

new text begin (6) $4,000,000 the second year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance on June 30, 2026, may
be used for other purposes under this
paragraph. The allocation in this clause is
onetime;
new text end

new text begin (7) $2,000,000 the second year is for urban
youth agricultural education or urban
agriculture community development; and
new text end

new text begin (8) $1,000,000 the second year is for the good
food access program under Minnesota
Statutes, section 17.1017.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the second year and is
available until June 30, 2027. Appropriations
encumbered under contract on or before June
30, 2027, for agricultural growth, research,
and innovation grants are available until June
30, 2030.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The base for the agricultural growth,
research, and innovation program is
deleted text begin $16,294,000 deleted text end new text begin $17,582,000 new text end in fiscal year 2026
and each year thereafter and includes $200,000
each year for cooperative development grants.

Subd. 5. Administration and Financial Assistance

16,618,000

deleted text begin 14,287,000 deleted text end new text begin 14,587,000 new text end

(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
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.

(b) $350,000 the first year and $350,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D. The base for
this appropriation is $250,000 in fiscal year
2026 and each year thereafter.

(c) $2,000 the first year is for a grant 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.

(d) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. This is a
onetime appropriation.

(e) $60,000 the first year and $60,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. This is a onetime appropriation.

(f) $34,000 the first year and $34,000 the
second year are for grants to the Minnesota
State Horticultural Society. This is a onetime
appropriation.

(g) $25,000 the first year and $25,000 the
second year are for grants to the Center for
Rural Policy and Development. This is a
onetime appropriation.

(h) $75,000 the first year and $75,000 the
second year are appropriated from the general
fund to the commissioner of agriculture for
grants to the Minnesota Turf Seed Council for
basic and applied research on: (1) the
improved production of forage and turf seed
related to new and improved varieties; and (2)
native plants, including plant breeding,
nutrient management, pest management,
disease management, yield, and viability. The
Minnesota Turf Seed Council may subcontract
with a qualified third party for some or all of
the basic or applied research. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. The Minnesota Turf Seed Council
must prepare a report outlining the use of the
grant money and related accomplishments. No
later than January 15, 2025, the council must
submit the report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture finance and policy. This is a
onetime appropriation.

(i) $100,000 the first year and $100,000 the
second year are for grants to GreenSeam for
assistance to agriculture-related businesses to
support business retention and development,
business attraction and creation, talent
development and attraction, and regional
branding and promotion. These are onetime
appropriations. No later than December 1,
2024, and December 1, 2025, GreenSeam
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.

(j) $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 purposes:

(1) at least $850,000 each year must be
allocated 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. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available the second year;

(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 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.

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. The base for this appropriation is
$1,700,000 for fiscal year 2026 and each year
thereafter.

(k) $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.

(l) $300,000 the first year and $300,000 the
second year are for grants to The Good Acre
for the Local Emergency Assistance Farmer
Fund (LEAFF) program to compensate
deleted text begin emerging deleted text end farmers new text begin experiencing limited land
access or limited market access new text end for crops
donated to hunger relief organizations in
Minnesota. new text begin For purposes of this paragraph,
"limited land access" and "limited market
access" have the meanings given in Minnesota
Statutes, section 17.133, subdivision 1. new text end This
is a onetime appropriation.

(m) $750,000 the first year and $750,000 the
second year are to expand the Emerging
Farmers Office and provide services to
beginning and emerging farmers to increase
connections between farmers and market
opportunities throughout the state. This
appropriation may be used for grants,
translation services, training programs, or
other purposes in line with the
recommendations of the Emerging Farmer
Working Group established under Minnesota
Statutes, section 17.055, subdivision 1. The
base for this appropriation is $1,000,000 in
fiscal year 2026 and each year thereafter.

(n) $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.

(o) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $50,000 the first year and
$50,000 the second year are 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.

(p) $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.

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

(r) $1,084,000 the first year and $500,000 the
second year are to support IT modernization
efforts, including laying the technology
foundations needed for improving customer
interactions with the department for licensing
and payments. This is a onetime appropriation.

(s) $275,000 the first year is for technical
assistance grants to certified community
development financial institutions that
participate in United States Department of
Agriculture loan or grant programs for small new text begin
farmers new text end or deleted text begin emerging deleted text end farmers new text begin experiencing
limited land access or limited market access new text end ,
including but not limited to the Increasing
Land, Capital, and Market Access Program.
For purposes of this paragraph, deleted text begin "emerging
farmer" has deleted text end new text begin "limited land access" and "limited
market access" have new text end the deleted text begin meaning deleted text end new text begin meanings new text end
given in Minnesota Statutes, deleted text begin section 17.055,
subdivision 1 deleted text end new text begin section 17.133, subdivision 1 new text end .
The commissioner may use up to 6.5 percent
of this appropriation for costs incurred to
administer the program. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. This is a onetime appropriation.

(t) $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.

(u) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.

(v) The base in fiscal years 2026 and 2027 is
$150,000 each year 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.

(w) $1,200,000 the first year and $930,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end in
fiscal year 2026 and deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end
in fiscal year 2027 new text begin and each year thereafter new text end .

(x) $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 December 31,
2024. The reports must include a list of
equipment purchased, including the cost of
each item.

(y) $1,000,000 the first year and $1,000,000
the second year are to award and administer
down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to deleted text begin emerging farmers as defined
in Minnesota Statutes, section 17.055,
subdivision 1 deleted text end new text begin eligible applicants with no more
than $100,000 in annual gross farm product
sales and eligible applicants who are producers
of industrial hemp, cannabis, or one or more
of the following specialty crops as defined by
the United States Department of Agriculture
for purposes of the specialty crop block grant
program: fruits and vegetables, tree nuts, dried
fruits, medicinal plants, culinary herbs and
spices, horticulture crops, floriculture crops,
and nursery crops new text end . 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.

(z) $222,000 the first year and $322,000 the
second year are for meat processing training
and retention incentive grants under section
5. The commissioner may use up to 6.5
percent of this appropriation for costs incurred
to administer the program. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. This is a onetime appropriation.

(aa) $300,000 the first year and $300,000 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 begin (bb) $300,000 the second year is to award and
administer beginning farmer equipment and
infrastructure grants under Minnesota Statutes,
section 17.055. This is a onetime
appropriation.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 2023, chapter 43, article 1, section 4, is amended to read:

Sec. 4. AGRICULTURAL UTILIZATION RESEARCH INSTITUTE

$

deleted text begin 6,143,000 deleted text end new text begin 6,393,000 new text end

$

4,343,000

(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.

(b) $1,500,000 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, Crookston, and Waseca. Of
this amount, up to $500,000 may be used for
renewable natural gas and anaerobic digestion
projects. This is a onetime appropriation and
is available until June 30, 2026.

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

new text begin (d) $250,000 the first year is to support food
businesses. This is a onetime appropriation
and is available until June 30, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

PESTICIDE CONTROL

Section 1.

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

new text begin Subd. 1d. new text end

new text begin Application or use of a pesticide. new text end

new text begin "Application or use of a pesticide" includes:
new text end

new text begin (1) the dispersal of a pesticide on, in, at, or directed toward a target site;
new text end

new text begin (2) preapplication activities that involve the mixing and loading of a restricted use
pesticide; and
new text end

new text begin (3) other restricted use pesticide-related activities, including but not limited to transporting
or storing pesticide containers that have been opened; cleaning equipment; and disposing
of excess pesticides, spray mix, equipment wash waters, pesticide containers, and other
materials that contain pesticide.
new text end

Sec. 2.

Minnesota Statutes 2022, section 18B.26, subdivision 6, is amended to read:

Subd. 6.

Discontinuance new text begin or cancellation new text end of registration.

new text begin (a) new text end To ensure new text begin the new text end complete
withdrawal from distribution or further use of a pesticide, a person who intends to discontinue
a pesticide registration must:

(1) terminate a further distribution within the state and continue to register the pesticide
annually for two successive years; new text begin and
new text end

(2) initiate and complete a total recall of the pesticide from all distribution in the state
within 60 days from the date of notification to the commissioner of intent to discontinue
registration deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) submit to the commissioner evidence adequate to document that no distribution of
the registered pesticide has occurred in the state.
deleted text end

new text begin (b) Upon the request of a registrant, the commissioner may immediately cancel
registration of a pesticide product. The commissioner may immediately cancel registration
of a pesticide product at the commissioner's discretion. When requesting that the
commissioner immediately cancel registration of a pesticide product, a registrant must
provide the commissioner with:
new text end

new text begin (1) a statement that the pesticide product is no longer in distribution; and
new text end

new text begin (2) documentation of pesticide gross sales from the previous year supporting the statement
under clause (1).
new text end

Sec. 3.

Minnesota Statutes 2022, section 18B.28, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Advisory panel. new text end

new text begin Before approving the issuance of an experimental use pesticide
product registration under this section, the commissioner must convene and consider the
advice of a panel of outside scientific and health experts. The panel must include but is not
limited to representatives of the Department of Health, the Department of Natural Resources,
the Pollution Control Agency, and the University of Minnesota.
new text end

Sec. 4.

new text begin [18B.283] EXPERT ADVICE REQUIRED FOR EMERGENCY
EXEMPTIONS.
new text end

new text begin Within 30 days of submitting an emergency registration exemption application under
section 18 of FIFRA, the commissioner must convene and consider the advice of a panel
of outside scientific and health experts. The panel must include but is not limited to
representatives of the Department of Health, the Department of Natural Resources, the
Pollution Control Agency, and the University of Minnesota.
new text end

Sec. 5.

Minnesota Statutes 2022, section 18B.305, subdivision 2, is amended to read:

Subd. 2.

Training manual and examination development.

The commissioner, in
consultation with University of Minnesota Extension and other higher education institutions,
shall continually revise and update pesticide applicator training manuals and examinations.
The manuals and examinations must be written to meet or exceed the minimum new text begin competency
new text end standards required by the United States Environmental Protection Agency and pertinent
state specific information. new text begin Pesticide applicator training manuals and examinations must
meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for training manuals and examinations must be published on the
Department of Agriculture website. new text end Questions in the examinations must be determined by
the commissioner in consultation with other responsible agencies. Manuals and examinations
must include pesticide management practices that discuss prevention of pesticide occurrence
in groundwater and surface water of the state, and economic thresholds and guidance for
insecticide use.

Sec. 6.

Minnesota Statutes 2022, section 18B.32, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not engage in structural pest control
applications:

(1) for hire without a structural pest control license; deleted text begin and
deleted text end

(2) as a sole proprietorship, company, partnership, or corporation unless the person is
or employs a licensed master in structural pest control operations deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) unless the person is 18 years of age or older.
new text end

(b) A structural pest control licensee must have a valid license identification card to
purchase a restricted use pesticide or apply pesticides for hire and must display it upon
demand by an authorized representative of the commissioner or a law enforcement officer.
The license identification card must contain information required by the commissioner.

Sec. 7.

Minnesota Statutes 2022, section 18B.32, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) A person must apply to the commissioner for a structural pest
control license on forms and in the manner required by the commissioner. The commissioner
shall require the applicant to pass a written, closed-book, monitored examination or oral
examination, or both deleted text begin , and may also require a practical demonstration regarding structural
pest control deleted text end . The commissioner shall establish the examination procedure, including the
phases and contents of the examination.

(b) The commissioner may license a person as a master under a structural pest control
license if the person has the necessary qualifications through knowledge and experience to
properly plan, determine, and supervise the selection and application of pesticides in structural
pest control. To demonstrate the qualifications and become licensed as a master under a
structural pest control license, a person must:

(1) pass a closed-book test administered by the commissioner;

(2) have direct experience as a licensed journeyman under a structural pest control license
for at least two years by this state or a state with equivalent certification requirements or as
a full-time licensed master in another state with equivalent certification requirements; and

(3) show practical knowledge and field experience under clause (2) in the actual selection
and application of pesticides under varying conditions.

(c) The commissioner may license a person as a journeyman under a structural pest
control license if the person:

(1) has the necessary qualifications in the practical selection and application of pesticides;

(2) has passed a closed-book examination given by the commissioner; and

(3) is engaged as an employee of or is working under the direction of a person licensed
as a master under a structural pest control license.

(d) The commissioner may license a person as a fumigator under a structural pest control
license if the person:

(1) has knowledge of the practical selection and application of fumigants;

(2) has passed a closed-book examination given by the commissioner; and

(3) is licensed by the commissioner as a master or journeyman under a structural pest
control license.

Sec. 8.

Minnesota Statutes 2022, section 18B.32, subdivision 4, is amended to read:

Subd. 4.

Renewal.

(a) new text begin An applicator may apply to renew new text end a structural pest control
applicator license deleted text begin may be renewed deleted text end on or before the expiration of an existing license subject
to reexamination, attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the
commissioner, or other requirements imposed by the commissioner to provide the applicator
with information regarding changing technology and to help assure a continuing level of
competency and ability to use pesticides safely and properly. new text begin A recertification workshop
must meet or exceed the competency standards in Code of Federal Regulations, title 40,
part 171. Competency standards for a recertification workshop must be published on the
Department of Agriculture website. If the commissioner requires an applicator to attend a
recertification workshop and the applicator fails to attend the workshop, the commissioner
may require the applicator to pass a reexamination. new text end The commissioner may require an
additional demonstration of applicator qualification if the applicator has had a license
suspended or revoked or has otherwise had a history of violations of this chapter.

(b) If deleted text begin a person deleted text end new text begin an applicator new text end fails to renew a structural pest control license within three
months of its expiration, the deleted text begin person deleted text end new text begin applicator new text end must obtain a structural pest control license
subject to the requirements, procedures, and fees required for an initial license.

Sec. 9.

Minnesota Statutes 2022, section 18B.32, subdivision 5, is amended to read:

Subd. 5.

Financial responsibility.

(a) deleted text begin A structural pest control license may not be issued
unless the applicant furnishes proof of financial responsibility. deleted text end The new text begin commissioner may
suspend or revoke a structural pest control license if an applicator fails to provide proof of
financial responsibility upon the commissioner's request. new text end Financial responsibility may be
demonstrated by:

(1) proof of net assets equal to or greater than $50,000; or

(2) a performance bond or insurance of a kind and in an amount determined by the
commissioner.

(b) The bond or insurance must cover a period of time at least equal to the term of the
deleted text begin applicant's deleted text end new text begin applicator's new text end license. The commissioner must immediately suspend the license
of deleted text begin a person deleted text end new text begin an applicator new text end who fails to maintain the required bond or insurance. The
performance bond or insurance policy must contain a provision requiring the insurance or
bonding company to notify the commissioner by ten days before the effective date of
cancellation, termination, or any other change of the bond or insurance. If there is recovery
against the bond or insurance, additional coverage must be secured new text begin by the applicator new text end to
maintain financial responsibility equal to the original amount required.

(c) An employee of a licensed person is not required to maintain an insurance policy or
bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under the provisions of this
section must be accompanied by proof of satisfaction of judgments previously rendered.

Sec. 10.

Minnesota Statutes 2022, section 18B.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire without a
commercial applicator license for the appropriate use categories or a structural pest control
license.

(b) A commercial applicator licensee must have a valid license identification card to
purchase a restricted use pesticide or apply pesticides for hire and must display it upon
demand by an authorized representative of the commissioner or a law enforcement officer.
The commissioner shall prescribe the information required on the license identification
card.

(c) A person licensed under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

(d) A person who uses a general-use sanitizer or disinfectant for hire in response to
COVID-19 is exempt from the commercial applicator license requirements under this section.

new text begin (e) A person licensed under this section must be 18 years of age or older.
new text end

Sec. 11.

Minnesota Statutes 2022, section 18B.33, subdivision 5, is amended to read:

Subd. 5.

Renewal application.

(a) deleted text begin A person deleted text end new text begin An applicator new text end must apply to the
commissioner to renew a commercial applicator license. The commissioner may renew a
commercial applicator license accompanied by the application fee, subject to reexamination,
attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the commissioner, or other
requirements imposed by the commissioner to provide the applicator with information
regarding changing technology and to help assure a continuing level of competence and
ability to use pesticides safely and properly. deleted text begin The applicant deleted text end new text begin Upon the receipt of an applicator's
renewal application, the commissioner may require the applicator to attend a recertification
workshop. Depending on the application category, the commissioner may require an
applicator to complete a recertification workshop once per year, once every two years, or
once every three years. If the commissioner requires an applicator to attend a recertification
workshop and the applicator fails to attend the workshop, the commissioner may require
the applicator to pass a reexamination. A recertification workshop must meet or exceed the
competency standards in Code of Federal Regulations, title 40, part 171. Competency
standards for a recertification workshop must be published on the Department of Agriculture
website. An applicator new text end may renew a commercial applicator license within 12 months after
expiration of the license without having to meet initial testing requirements. The
commissioner may require new text begin an new text end additional demonstration of applicator qualification if deleted text begin a person deleted text end new text begin
the applicator new text end has had a license suspended or revoked or has had a history of violations of
this chapter.

(b) An deleted text begin applicant deleted text end new text begin applicator new text end that meets renewal requirements by reexamination instead
of attending deleted text begin workshops deleted text end new text begin a recertification workshop new text end must pay the equivalent workshop fee
for the reexamination as determined by the commissioner.

Sec. 12.

Minnesota Statutes 2022, section 18B.33, subdivision 6, is amended to read:

Subd. 6.

Financial responsibility.

(a) deleted text begin A commercial applicator license may not be issued
unless the applicant furnishes proof of financial responsibility. deleted text end The new text begin commissioner may
suspend or revoke an applicator's commercial applicator license if the applicator fails to
provide proof of financial responsibility upon the commissioner's request. new text end Financial
responsibility may be demonstrated by: (1) proof of net assets equal to or greater than
$50,000; or (2) by a performance bond or insurance of the kind and in an amount determined
by the commissioner.

(b) The bond or insurance must cover a period of time at least equal to the term of the
deleted text begin applicant's deleted text end new text begin applicator's new text end license. The commissioner must immediately suspend the license
of deleted text begin a person deleted text end new text begin an applicator new text end who fails to maintain the required bond or insurance. The
performance bond or insurance policy must contain a provision requiring the insurance or
bonding company to notify the commissioner by ten days before the effective date of
cancellation, termination, or any other change of the bond or insurance. If there is recovery
against the bond or insurance, additional coverage must be secured new text begin by the applicator new text end to
maintain financial responsibility equal to the original amount required.

(c) An employee of a licensed deleted text begin person deleted text end new text begin applicator new text end is not required to maintain an insurance
policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under the provisions of this
section must be accompanied by proof of satisfaction of judgments previously rendered.

Sec. 13.

Minnesota Statutes 2022, section 18B.34, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator, certified
private applicator, or licensed structural pest control applicator, a person, including a
government employee, may not purchase or use a restricted use pesticide in performance
of official duties without having a noncommercial applicator license for an appropriate use
category.

(b) A licensee must have a valid license identification card when applying pesticides
and must display it upon demand by an authorized representative of the commissioner or a
law enforcement officer. The license identification card must contain information required
by the commissioner.

(c) A person licensed under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

new text begin (d) A person licensed under this section must be 18 years of age or older.
new text end

Sec. 14.

Minnesota Statutes 2022, section 18B.34, subdivision 4, is amended to read:

Subd. 4.

Renewal.

(a) deleted text begin A person deleted text end new text begin An applicator new text end must apply to the commissioner to renew
a noncommercial applicator license. The commissioner may renew a license subject to
reexamination, attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the
commissioner, or other requirements imposed by the commissioner to provide the applicator
with information regarding changing technology and to help assure a continuing level of
competence and ability to use pesticides safely and properly. new text begin Upon the receipt of an
applicator's renewal application, the commissioner may require the applicator to attend a
recertification workshop. Depending on the application category, the commissioner may
require an applicator to complete a recertification workshop once per year, once every two
years, or once every three years. If the commissioner requires an applicator to attend a
recertification workshop and the applicator fails to attend the workshop, the commissioner
may require the applicator to pass a reexamination. A recertification workshop must meet
or exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for a recertification workshop must be published on the Department
of Agriculture website. new text end The commissioner may require an additional demonstration of
applicator qualification if the applicator has had a license suspended or revoked or has
otherwise had a history of violations of this chapter.

(b) An deleted text begin applicant deleted text end new text begin applicator new text end that meets renewal requirements by reexamination instead
of attending deleted text begin workshops deleted text end new text begin a recertification workshop new text end must pay the equivalent workshop fee
for the reexamination as determined by the commissioner.

(c) An deleted text begin applicant deleted text end new text begin applicator new text end has 12 months to renew the license after expiration without
having to meet initial testing requirements.

Sec. 15.

Minnesota Statutes 2022, section 18B.35, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

(a) The commissioner may establish categories of
structural pest control, commercial applicator, and noncommercial applicator licenses deleted text begin for
administering and enforcing this chapter. deleted text end new text begin and private applicator certification consistent with
federal requirements in Code of Federal Regulations, title 40, parts 171.101 and 171.105,
including but not limited to the federal categories that are applicable to Minnesota.
Application categories must meet or exceed the competency standards in Code of Federal
Regulations, title 40, part 171. Competency standards for application categories must be
published on the Department of Agriculture website. new text end The categories may include pest control
operators and ornamental, agricultural, aquatic, forest, and right-of-way pesticide applicators.
Separate subclassifications of categories may be specified as to ground, aerial, or manual
methods to apply pesticides or to the use of pesticides to control insects, plant diseases,
rodents, or weeds.

(b) Each category is subject to separate testing procedures and requirements.

Sec. 16.

Minnesota Statutes 2022, section 18B.36, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial or noncommercial
applicator, only a certified private applicator may use a restricted use pesticide to produce
an agricultural commodity:

(1) as a traditional exchange of services without financial compensation;

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer employees and the owner or
operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A person may not purchase a restricted use pesticide without presenting a license
card, certified private applicator card, or the card number.

(c) A person certified under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

new text begin (d) A person certified under this section must be 18 years of age or older.
new text end

Sec. 17.

Minnesota Statutes 2022, section 18B.36, subdivision 2, is amended to read:

Subd. 2.

Certification.

(a) The commissioner shall prescribe certification requirements
and provide training that meets or exceeds United States Environmental Protection Agency
standards to certify private applicators and provide information relating to changing
technology to help ensure a continuing level of competency and ability to use pesticides
properly and safely. new text begin Private applicator certification requirements and training must meet or
exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for private applicator certification and training must be published
on the Department of Agriculture website. new text end The training may be done through cooperation
with other government agencies and must be a minimum of three hours in duration.

(b) A person must apply to the commissioner for certification as a private applicator.
After completing the certification requirements, which must include deleted text begin an deleted text end new text begin a proctored new text end
examination as determined by the commissioner, an applicant must be certified as a private
applicator to use restricted use pesticides. The certification shall expire March 1 of the third
calendar year after the initial year of certification.

(c) The commissioner shall issue a private applicator card to a private applicator.

Sec. 18.

Minnesota Statutes 2022, section 18B.37, subdivision 2, is amended to read:

Subd. 2.

Commercial and noncommercial applicators.

(a) A commercial or
noncommercial applicator deleted text begin , deleted text end or the applicator's authorized agent deleted text begin , deleted text end must maintain a record of
pesticides used on each site. Noncommercial applicators must keep records of restricted
use pesticides. The record must include the:

(1) date of the pesticide use;

(2) time the pesticide application was completed;

(3) brand name of the pesticide, the United States Environmental Protection Agency
registration number, and rate used;

(4) number of units treated;

(5) temperature, wind speed, and wind direction;

(6) location of the site where the pesticide was applied;

(7) name and address of the customer;

(8) name of applicator, name of company, license number of applicator, and address of
applicator company; and

(9) any other information required by the commissioner.

(b) Portions of records not relevant to a specific type of application may be omitted upon
approval from the commissioner.

(c) All information for this record requirement must be contained in a document for each
pesticide application, except a map may be attached to identify treated areas. An invoice
containing the required information may constitute the required record. The commissioner
shall make sample forms available to meet the requirements of this paragraph.

(d) The record must be completed no later than five days after the application of the
pesticide.

(e) A commercial applicator must give a copy of the record to the customer.

(f) Records must be retained by the applicator, company, or authorized agent for five
years after the date of treatment.

new text begin (g) A record of a commercial or noncommercial applicator must meet or exceed the
requirements in Code of Federal Regulations, title 40, part 171.
new text end

Sec. 19.

Minnesota Statutes 2022, section 18B.37, subdivision 3, is amended to read:

Subd. 3.

Structural pest control applicators.

(a) A structural pest control applicator
must maintain a record of each structural pest control application conducted by that person
or by the person's employees. The record must include the:

(1) date of structural pest control application;

(2) target pest;

(3) brand name of the pesticide, United States Environmental Protection Agency
registration number, and amount used;

(4) for fumigation, the temperature and exposure time;

(5) time the pesticide application was completed;

(6) name and address of the customer;

(7) name of structural pest control applicator, name of company and address of applicator
or company, and license number of applicator; and

(8) any other information required by the commissioner.

(b) All information for this record requirement must be contained in a document for
each pesticide application. An invoice containing the required information may constitute
the record.

(c) The record must be completed no later than five days after the application of the
pesticide.

(d) Records must be retained for five years after the date of treatment.

(e) A copy of the record must be given to a person who ordered the application that is
present at the site where the structural pest control application is conducted, placed in a
conspicuous location at the site where the structural pest control application is conducted
immediately after the application of the pesticides, or delivered to the person who ordered
an application or the owner of the site. The commissioner must make sample forms available
that meet the requirements of this subdivision.

(f) A structural applicator must post in a conspicuous place inside a renter's apartment
where a pesticide application has occurred a list of postapplication precautions contained
on the label of the pesticide that was applied in the apartment and any other information
required by the commissioner.

new text begin (g) A record of a structural applicator must meet or exceed the requirements in Code of
Federal Regulations, title 40, part 171.
new text end

Sec. 20. new text begin COMMERCIAL APPLICATOR LICENSE EXAMINATION LANGUAGE
REQUIREMENTS.
new text end

new text begin By January 1, 2025, the commissioner of agriculture must ensure that examinations for
a commercial applicator license under Minnesota Statutes, section 18B.33, are available in
Spanish and that applicants are informed that the examinations can be taken in Spanish.
The commissioner must use money appropriated from the pesticide regulatory account
under Minnesota Statutes, section 18B.05, for this purpose.
new text end

ARTICLE 3

OTHER AGRICULTURE STATUTORY CHANGES

Section 1.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

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

new text begin (b) "Approved agent" means a person authorized by the Department of Agriculture to
determine if crop or fence damage was caused by elk and to assign a monetary value to the
crop or fence damage.
new text end

new text begin (c) "Commissioner" means the commissioner of agriculture or the commissioner's
authorized representative.
new text end

new text begin (d) "Estimated value" means the current value of crops or fencing as determined by an
approved agent.
new text end

new text begin (e) "Owner" means an individual, firm, corporation, copartnership, or association with
an interest in crops or fencing damaged by elk.
new text end

Sec. 2.

Minnesota Statutes 2022, section 3.7371, subdivision 2, is amended to read:

Subd. 2.

Claim form new text begin and reporting new text end .

new text begin (a) new text end The owner must prepare a claim on forms
provided by the commissioner and available on the Department of deleted text begin Agriculture's deleted text end new text begin Agriculture new text end
website or by request from the commissioner. deleted text begin The claim form must be filed with the
commissioner.
deleted text end

new text begin (b) After discovering crop or fence damage suspected to be caused by elk, an owner
must promptly notify an approved agent of the damage. To submit a claim for crop or fence
damage caused by elk, an owner must complete the required portions of the claim form
provided by the commissioner. An owner who has submitted a claim must provide an
approved agent with all information required to investigate the crop or fence damage.
new text end

Sec. 3.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Investigation and crop valuation. new text end

new text begin (a) Upon receiving notification of crop or
fence damage suspected to be caused by elk, an approved agent must promptly investigate
the damage in a timely manner. An approved agent must make written findings on the claim
form regarding whether the crop or fence was destroyed or damaged by elk. The approved
agent's findings must be based on physical and circumstantial evidence, including:
new text end

new text begin (1) the condition of the crop or fence;
new text end

new text begin (2) the presence of elk tracks;
new text end

new text begin (3) the geographic area of the state where the crop or fence damage occurred;
new text end

new text begin (4) any sightings of elk in the area; and
new text end

new text begin (5) any other circumstances that the approved agent considers to be relevant.
new text end

new text begin (b) The absence of affirmative evidence may be grounds for denial of a claim.
new text end

new text begin (c) On a claim form, an approved agent must make written findings of the extent of crop
or fence damage and, if applicable, the amount of crop destroyed.
new text end

new text begin (d) For damage to standing crops, an owner may choose to have the approved agent use
the method in clause (1) or (2) to complete the claim form and determine the amount of
crop loss:
new text end

new text begin (1) to submit a claim form to the commissioner at the time that the suspected elk damage
is discovered, the approved agent must record on the claim form: (i) the field's potential
yield per acre; (ii) the field's average yield per acre that is expected on the damaged acres;
(iii) the estimated value of the crop; and (iv) the total amount of loss. Upon completing the
claim form, the approved agent must submit the form to the commissioner; or
new text end

new text begin (2) to submit a claim form to the commissioner at the time that the crop is harvested,
the approved agent must record on the claim form at the time of the investigation: (i) the
percent of crop loss from damage; (ii) the actual yield of the damaged field when the crop
is harvested; (iii) the estimated value of the crop; and (iv) the total amount of loss. Upon
completing the claim form, the approved agent must submit the form to the commissioner.
new text end

new text begin (e) For damage to stored crops, an approved agent must record on the claim form: (1)
the type and volume of destroyed stored crops; (2) the estimated value of the crop; and (3)
the total amount of loss.
new text end

new text begin (f) For damage to fencing, an approved agent must record on the claim form: (1) the
type of materials damaged; (2) the linear feet of the damage; (3) the value of the materials
per unit according to National Resource Conservation Service specifications; and (4) the
calculated total damage to the fence.
new text end

Sec. 4.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Claim form. new text end

new text begin A completed claim form must be signed by the owner and an
approved agent. An approved agent must submit the claim form to the commissioner for
the commissioner's review and payment. The commissioner must return an incomplete claim
form to the approved agent. When returning an incomplete claim form to an approved agent,
the commissioner must indicate which information is missing from the claim form.
new text end

Sec. 5.

Minnesota Statutes 2022, section 3.7371, subdivision 3, is amended to read:

Subd. 3.

Compensation.

(a) deleted text begin The crop deleted text end new text begin An new text end owner is entitled to the deleted text begin target price or the
market price, whichever is greater, deleted text end new text begin estimated value new text end of the damaged or destroyed crop deleted text begin plus
adjustments for yield loss determined according to agricultural stabilization and conservation
service programs for individual farms, adjusted annually, as determined by the commissioner,
upon recommendation of the commissioner's approved agent for the owner's county deleted text end new text begin or
fence new text end . Verification of new text begin crop or new text end fence damage deleted text begin or destruction deleted text end by elk may be provided by
submitting photographs or other evidence and documentation deleted text begin together with a statement
from an independent witness deleted text end using forms prescribed by the commissioner. The commissioner,
upon recommendation of the commissioner's approved agent, shall determine whether the
crop damage or destruction or damage to or destruction of a fence surrounding a crop or
pasture is caused by elk and, if so, the amount of the crop or fence that is damaged or
destroyed. In any fiscal year, an owner may not be compensated for a damaged or destroyed
crop or fence surrounding a crop or pasture that is less than $100 in value and may be
compensated up to $20,000, as determined under this section deleted text begin , if normal harvest procedures
for the area are followed deleted text end . new text begin An owner may not be compensated more than $1,800 per fiscal
year for damage to fencing surrounding a crop or pasture.
new text end

(b) In any fiscal year, the commissioner may provide compensation for claims filed
under this section up to the amount expressly appropriated for this purpose.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended
to read:

Subd. 3.

Beginning farmer equipment and infrastructure grants.

(a) The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are deleted text begin emerging farmers deleted text end new text begin experiencing
limited land access or limited market access new text end as new text begin those terms are new text end defined in new text begin section 17.133,
new text end subdivision 1. Grant money may be used for equipment and infrastructure development.

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

(c) Grant projects may continue for up to two years.

Sec. 7.

Minnesota Statutes 2022, section 17.133, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

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

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

new text begin (4) is not, and whose spouse is not, related by blood or marriage to an owner of the
farmland that the individual intends to acquire new text end .

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

new text begin (d) "Incubator farm" means a farm where:
new text end

new text begin (1) individuals are given temporary, exclusive, and affordable access to small parcels
of land, infrastructure, and often training, for the purpose of honing skills and launching a
farm business; and
new text end

new text begin (2) a majority of the individuals farming the small parcels of land grow industrial hemp,
cannabis, or one or more of the following specialty crops as defined by the United States
Department of Agriculture for purposes of the specialty crop block grant program: fruits
and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture
crops, floriculture crops, and nursery crops.
new text end

new text begin (e) "Limited land access" means farming land that the individual does not own when:
new text end

new text begin (1) the individual or the individual's child rents or leases the land, with the term of each
rental or lease agreement not exceeding three years in duration, from a person who is not
related to the individual or the individual's spouse by blood or marriage; or
new text end

new text begin (2) the individual rents the land from an incubator farm.
new text end

new text begin (f) "Limited market access" means the majority of the individual's annual farm product
sales are direct sales to the consumer.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, 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) the number of grant recipients who were experiencing limited land access or limited
market access when the grant was awarded;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end disaggregated data regarding the gender, race, and ethnicity of grant recipients;

deleted text begin (6) deleted text end new text begin (7) 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 (7) deleted text end new text begin (8) new text end the number and amount of grant applications that exceeded the allocation available
in each year.

Sec. 9.

Minnesota Statutes 2023 Supplement, section 17.134, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Grant requirements. new text end

new text begin In addition to the applicable grants management
requirements under sections 16B.97 to 16B.991, as a condition of receiving a soil health
financial assistance grant under this section, an owner or lessee of farmland must commit
to:
new text end

new text begin (1) if not certified under sections 17.9891 to 17.993, achieve certification no later than
24 months after the grant agreement is fully executed;
new text end

new text begin (2) not lease or rent the equipment to another for economic gain; and
new text end

new text begin (3) if selling the equipment, sell the equipment for no more than the owner's or lessee's
documented share of the total purchase price.
new text end

Sec. 10.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Beneficial substance. new text end

new text begin "Beneficial substance" means any substance or
compound other than a primary, secondary, and micro plant nutrient that can be demonstrated
by scientific research to be beneficial to one or more species of plants, soil, or media.
new text end

Sec. 11.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Diammonium phosphate. new text end

new text begin "Diammonium phosphate" or "DAP" means a
fertilizer containing 18 percent total nitrogen and 46 percent available phosphate.
new text end

Sec. 12.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 11a. new text end

new text begin Finished sewage sludge product. new text end

new text begin "Finished sewage sludge product" means
a fertilizer product consisting in whole or in part of sewage sludge that is disinfected by
means of composting, pasteurization, wet air oxidation, heat treatment, or other means and
sold to the public.
new text end

Sec. 13.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 18b. new text end

new text begin Liquid 28. new text end

new text begin "Liquid 28" means a liquid nitrogen solution containing 28 percent
total nitrogen.
new text end

Sec. 14.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 18c. new text end

new text begin Liquid 32. new text end

new text begin "Liquid 32" means a liquid nitrogen solution containing 32 percent
total nitrogen.
new text end

Sec. 15.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 19b. new text end

new text begin Monoammonium phosphate. new text end

new text begin "Monoammonium phosphate" or "MAP"
means a fertilizer containing ten to 11 percent total nitrogen and 48 to 55 percent available
phosphate.
new text end

Sec. 16.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 20a. new text end

new text begin Nitrogen fertilizer. new text end

new text begin "Nitrogen fertilizer" means any fertilizer, soil amendment,
or plant amendment totally or partially comprised of nitrogen, including but not limited to
anhydrous ammonia, urea, liquid 28, liquid 32, DAP, and MAP.
new text end

Sec. 17.

Minnesota Statutes 2022, section 18C.005, subdivision 33, is amended to read:

Subd. 33.

Soil amendment.

"Soil amendment" means a substance intended to improve
the structural, physical, new text begin chemical, biochemical, new text end or biological characteristics of the soil or
modify organic matter at or near the soil surface, except fertilizers, agricultural liming
materials, pesticides, and other materials exempted by the commissioner's rules.

Sec. 18.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 37a. new text end

new text begin Urea. new text end

new text begin "Urea" means a white crystalline solid containing 46 percent nitrogen.
new text end

Sec. 19.

Minnesota Statutes 2022, section 18C.115, subdivision 2, is amended to read:

Subd. 2.

Adoption of national standards.

Applicable national standards contained in
the deleted text begin 1996 official publication, number 49, deleted text end new text begin most recently published version of the official
publication new text end of the Association of American Plant Food Control Officials including the rules
and regulations, statements of uniform interpretation and policy, and the official fertilizer
terms and definitions, and not otherwise adopted by the commissioner, may be adopted as
fertilizer rules of this state.

Sec. 20.

Minnesota Statutes 2022, section 18C.215, subdivision 1, is amended to read:

Subdivision 1.

Packaged fertilizers.

(a) A person may not sell or distribute specialty
fertilizer in bags or other containers in this state unless a label is placed on or affixed to the
bag or container stating in a clear, legible, and conspicuous form the following information:

(1) the net weight new text begin and volume, if applicable new text end ;

(2) the brand and grade, except the grade is not required if primary nutrients are not
claimed;

(3) the guaranteed analysis;

(4) the name and address of the guarantor;

(5) directions for use, except directions for use are not required for custom blend specialty
fertilizers; and

(6) a derivatives statement.

(b) A person may not sell or distribute fertilizer for agricultural purposes in bags or other
containers in this state unless a label is placed on or affixed to the bag or container stating
in a clear, legible, and conspicuous form the information listed in paragraph (a), clauses (1)
to (4), except:

(1) the grade is not required if primary nutrients are not claimed; and

(2) the grade on the label is optional if the fertilizer is used only for agricultural purposes
and the guaranteed analysis statement is shown in the complete form as in section 18C.211.

(c) The labeled information must appear:

(1) on the front or back side of the container;

(2) on the upper one-third of the side of the container;

(3) on the upper end of the container; or

(4) printed on a tag affixed to the upper end of the container.

(d) If a person sells a custom blend specialty fertilizer in bags or other containers, the
information required in paragraph (a) must either be affixed to the bag or container as
required in paragraph (c) or be furnished to the customer on an invoice or delivery ticket
in written or printed form.

Sec. 21.

Minnesota Statutes 2022, section 18C.221, is amended to read:

18C.221 FERTILIZER PLANT FOOD CONTENT.

(a) Products that are deficient in plant food content are subject to this subdivision.

(b) An analysis must show that a fertilizer is deficient:

(1) in one or more of its guaranteed primary plant nutrients beyond the investigational
allowances and compensations as established by regulation; or

(2) if the overall index value of the fertilizer is shown below the level established by
rule.

(c) A deficiency in an official sample of mixed fertilizer resulting from nonuniformity
is not distinguishable from a deficiency due to actual plant nutrient shortage and is properly
subject to official action.

(d) For the purpose of determining the commercial index value to be applied, the
commissioner shall determine at least annually the values per unit of nitrogen, available
deleted text begin phosphoric acid deleted text end new text begin phosphate new text end , and soluble potash in fertilizers in this state.

(e) If a fertilizer in the possession of the consumer is found by the commissioner to be
short in weight, the registrant or licensee of the fertilizer must submit a penalty payment of
two times the value of the actual shortage to the consumer within 30 days after official
notice from the commissioner.

Sec. 22.

Minnesota Statutes 2023 Supplement, section 18C.421, subdivision 1, is amended
to read:

Subdivision 1.

Annual tonnage report.

(a) Each registrant under section 18C.411 and
licensee under section 18C.415 shall file an annual tonnage report for the previous year
ending June 30 with the commissioner, on forms provided or approved by the commissioner,
new text begin utilizing uniform fertilizer tonnage reporting system codes and new text end stating the number of net
tons of each brand or grade of fertilizer, soil amendment, or plant amendment distributed
in this state or the number of net tons and grade of each raw fertilizer material distributed
in this state during the reporting period.

(b) A tonnage report is not required to be submitted and an inspection fee under section
18C.425, subdivision 6, is not required to be paid to the commissioner by a licensee who
distributes fertilizer solely by custom application.

(c) The annual tonnage report must be submitted to the commissioner on or before July
31 of each year.

(d) The inspection fee under section 18C.425, subdivision 6, must accompany the
statement.

new text begin (e) The commissioner must produce an annual fertilizer sales report and post this report
on the commissioner's website.
new text end

Sec. 23.

Minnesota Statutes 2023 Supplement, 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 the inspection fee
set under paragraph (e) deleted text begin , deleted text end and deleted text begin until June 30, 2024, deleted text end an additional 40 cents per ton deleted text begin , deleted text end 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, new text begin until June 30, 2025, new text end 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 new text begin ; and after June 30,
2025, the commissioner must deposit all revenue from the additional 40 cents per ton fee
in the private well drinking-water assistance account established in section 18C.90 new text end . 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.

(e) By commissioner's order, the commissioner must set the inspection fee at no less
than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a
public meeting before increasing the fee by more than five cents per ton.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2026 new text end .

Sec. 25.

Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2026 new text end .

Sec. 26.

Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:

Subd. 2.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2026 new text end .

Sec. 27.

new text begin [18C.90] PRIVATE WELL DRINKING-WATER ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Account; appropriation. new text end

new text begin A private well drinking-water assistance account
is established in the agricultural fund. Money in the account, including interest earned, is
appropriated to the commissioner for aid payments to community health boards under
subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Aid payments. new text end

new text begin (a) At least annually, the commissioner must make aid payments
to community health boards established under chapter 145A for purposes of assisting eligible
residents under subdivision 3.
new text end

new text begin (b) The commissioner must award proportional aid payments to eligible community
health boards based on each board's share of total private drinking-water wells in the state
with documented nitrate in excess of ten milligrams per liter, as determined by the
commissioner in consultation with the commissioners of health and the Pollution Control
Agency.
new text end

new text begin Subd. 3. new text end

new text begin Provision of safe drinking water. new text end

new text begin (a) For purposes of this section, "safe
drinking water" means water required for drinking, cooking, and maintaining oral hygiene
that has a nitrate level of no more than ten milligrams per liter.
new text end

new text begin (b) Community health boards must use aid payments received under subdivision 2 to
assist residents in obtaining safe drinking water when the documented level of nitrate in the
resident's private drinking-water well is more than ten milligrams per liter, with priority
given to pregnant women and children under the age of one.
new text end

new text begin (c) Community health boards must assist eligible residents in obtaining safe drinking
water through one or more of the following methods:
new text end

new text begin (1) convenient bottled water distribution or delivery;
new text end

new text begin (2) reverse osmosis treatment unit acquisition, installation, and maintenance;
new text end

new text begin (3) connection to a public water system; or
new text end

new text begin (4) another method, as determined by the commissioner of health, that provides eligible
residents with a sufficient quantity of safe drinking water.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin No later than January 15 each year, the commissioner must report
outcomes achieved under this section and any corresponding recommendations to the chairs
and ranking minority members of the legislative committees with jurisdiction over agriculture
and health.
new text end

Sec. 28.

Minnesota Statutes 2022, section 18D.301, subdivision 1, is amended to read:

Subdivision 1.

Enforcement required.

(a) The commissioner shall enforce this chapter
and chapters 18B, 18C, and 18F.

(b) Violations of chapter 18B, 18C, or 18F or rules adopted under chapter 18B, 18C, or
18F new text begin , or section 103H.275, subdivision 2, new text end are a violation of this chapter.

(c) Upon the request of the commissioner, county attorneys, sheriffs, and other officers
having authority in the enforcement of the general criminal laws shall take action to the
extent of their authority necessary or proper for the enforcement of this chapter or special
orders, standards, stipulations, and agreements of the commissioner.

Sec. 29.

Minnesota Statutes 2023 Supplement, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner deleted text begin shall adopt rules governing the production, testing, processing,
and licensing of industrial hemp. 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 deleted text end new text begin may adopt or amend rules
governing the production, testing, processing, and licensing of industrial hemp using the
procedure in section 14.386, paragraph (a). Section 14.386, paragraph (b), does not apply
to rules adopted or amended under this section 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. 30.

Minnesota Statutes 2022, section 28A.10, is amended to read:

28A.10 POSTING OF LICENSE; RULES.

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

Sec. 31.

Minnesota Statutes 2022, section 28A.21, subdivision 6, is amended to read:

Subd. 6.

Expiration.

This section expires June 30, deleted text begin 2027 deleted text end new text begin 2037 new text end .

Sec. 32.

Minnesota Statutes 2022, section 31.74, is amended to read:

31.74 deleted text begin SALE OF IMITATION deleted text end HONEY.

Subdivision 1.

Honey defined.

As used in this section "honey" means the nectar and
saccharine exudation of plants, gathered, modified and stored in the comb by honey bees,
which is levorotatory, contains not more than 25 percent of water, not more than 25/100
percent of ash, and not more than eight percent sucrose.

Subd. 2.

Prohibited sale.

Notwithstanding any law or rule to the contrary, it is unlawful
for any person to sell or offer for sale any product which is in semblance of honey and which
is labeled, advertised, or otherwise represented to be honey, if it is not honey. The word
"imitation" shall not be used in the name of a product which is in semblance of honey
whether or not it contains any honey. The label for a product which is not in semblance of
honey and which contains honey may include the word "honey" in the name of the product
and the relative position of the word "honey" in the product name, and in the list of
ingredients, when required, shall be determined by its prominence as an ingredient in the
product.

new text begin Subd. 4. new text end

new text begin Food consisting of honey and another sweetener. new text end

new text begin Consistent with the federal
act, the federal regulations incorporated under section 31.101, subdivision 7, and the
prohibition against misbranding in sections 31.02 and 34A.03, the label for a food in
semblance of honey and consisting of honey and another sweetener must include but is not
limited to the following elements:
new text end

new text begin (1) a statement of identity that accurately identifies or describes the nature of the food
or its characterizing properties or ingredients; and
new text end

new text begin (2) the common or usual name of each ingredient in the ingredient statement, in
descending order of predominance by weight.
new text end

Sec. 33.

Minnesota Statutes 2022, section 31.94, is amended to read:

31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine information
and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota and other research and education institutions
to demonstrate the on-farm applicability of organic agriculture practices to conditions in
this state;

(3) direct the programs of the department so as to work toward the promotion of organic
agriculture in this state;

(4) inform agencies about state or federal programs that support organic agriculture
practices; and

(5) work closely with producers, producer organizations, the University of Minnesota,
and other appropriate agencies and organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner, in
conjunction with the task force created in paragraph (c), shall report on the status of organic
agriculture in Minnesota to the legislative policy and finance committees and divisions with
jurisdiction over agriculture. The report must include available data on organic acreage and
production, available data on the sales or market performance of organic products, and
recommendations regarding programs, policies, and research efforts that will benefit
Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
sector. The task force must consist of the following residents of the state:

(1) three organic farmers;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural Experiment
Station; the dean and director of University of Minnesota Extension and the dean of the
College of Food, Agricultural and Natural Resource Sciences, shall appoint members to
serve three-year terms.

Compensation and removal of members are governed by section 15.059, subdivision 6.
The task force must meet at least twice each year and expires on June 30, deleted text begin 2024 deleted text end new text begin 2034 new text end .

(d) For the purposes of expanding, improving, and developing production and marketing
of the organic products of Minnesota agriculture, the commissioner may receive funds from
state and federal sources and spend them, including through grants or contracts, to assist
producers and processors to achieve certification, to conduct education or marketing
activities, to enter into research and development partnerships, or to address production or
marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production and
handling operations including those exempt from organic certification according to Code
of Federal Regulations, title 7, section 205.101, and accredited certification agencies
operating within the state.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2022, section 32D.30, is amended to read:

32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.

Subdivision 1.

Program.

The commissioner must implement a dairy development and
profitability enhancement program consisting of new text begin a new text end dairy profitability enhancement deleted text begin teams
and deleted text end new text begin program, new text end dairy business planning grants new text begin , and other services to support the dairy industry new text end .

Subd. 2.

Dairy profitability enhancement deleted text begin teams deleted text end new text begin program new text end .

(a) new text begin The new text end dairy profitability
enhancement deleted text begin teams deleted text end new text begin program new text end must provide deleted text begin one-on-one deleted text end information and technical assistance
to dairy farms of all sizes to enhance their financial success and long-term sustainability.
deleted text begin Teams deleted text end new text begin The program new text end must assist dairy producers in all dairy-producing regions of the state
deleted text begin and deleted text end new text begin . Assistance to producers from the program new text end may deleted text begin consist of deleted text end new text begin be provided individually, as
a team, or through other methods by new text end farm business management instructors, dairy extension
specialists, and other dairy industry partners. deleted text begin Teams deleted text end new text begin The program new text end may engage in activities
deleted text begin including deleted text end new text begin such as new text end comprehensive financial analysis, risk management education, enhanced
milk marketing tools and technologies, deleted text begin and deleted text end facilitating or improving production systems new text begin , new text end
including rotational grazing and other sustainable agriculture methods new text begin , and value-added
opportunities new text end .

(b) The commissioner must make grants to regional or statewide organizations qualified
to manage the various components of the deleted text begin teams deleted text end new text begin program and serve as program administrators new text end .
Each regional or statewide organization must designate a coordinator responsible for
overseeing the program and submitting periodic reports to the commissioner regarding
aggregate changes in producer financial stability, productivity, product quality, animal
health, environmental protection, and other performance measures attributable to the program.
The organizations must submit this information in a format that maintains the confidentiality
of individual dairy producers.

Subd. 3.

Dairy business planning grants.

The commissioner may award dairy business
planning grants of up to $5,000 per producer new text begin or dairy processor new text end to deleted text begin develop comprehensive
business plans deleted text end new text begin use technical assistance services for evaluating operations, transitional
changes, expansions, improvements, and other business modifications new text end . Producers new text begin and
processors new text end must not use dairy business planning grants for capital improvements.

Subd. 4.

Funding allocation.

Except as specified in law, the commissioner may allocate
dairy development and profitability enhancement program dollars deleted text begin among deleted text end new text begin for new text end the permissible
uses specified in this section new text begin and other needs to support the dairy industry new text end , including efforts
to improve the quality of milk produced in the state, in the proportions that the commissioner
deems most beneficial to the state's dairy farmers.

Subd. 5.

Reporting.

No later than July 1 each year, the commissioner must submit a
detailed accomplishment report and work plan detailing future plans for, and the actual and
anticipated accomplishments from, expenditures under this section to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture policy and finance. If the commissioner significantly modifies a submitted work
plan during the fiscal year, the commissioner must notify the chairs and ranking minority
members.

Sec. 35.

Minnesota Statutes 2023 Supplement, section 41A.19, is amended to read:

41A.19 REPORT; INCENTIVE PROGRAMS.

By January 15 each year, the commissioner shall report on the incentive new text begin and tax credit
new text end programs under sections 41A.16, 41A.17, 41A.18, deleted text begin and deleted text end 41A.20 new text begin , and 41A.30 new text end 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 deleted text begin and deleted text end new text begin , blending, new text end incentive
expenditures new text begin , and tax credit certificates awarded new text end 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 or blender who receives
a payment or a tax credit certificate during the reporting period:
new text end

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

new text begin (2) the name and address of the producer's or blender'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 or blender;
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 or blender's intended and actual use of payments from, or tax credits
approved by, the commissioner; and
new text end

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

Sec. 36.

Minnesota Statutes 2022, section 41B.039, subdivision 2, is amended to read:

Subd. 2.

State participation.

The state may participate in a new real estate loan with
an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount
of the loan or deleted text begin $400,000 deleted text end new text begin $500,000 new text end , whichever is less. The interest rates and repayment terms
of the authority's participation interest may be different than the interest rates and repayment
terms of the lender's retained portion of the loan.

Sec. 37.

Minnesota Statutes 2022, section 41B.04, subdivision 8, is amended to read:

Subd. 8.

State participation.

With respect to loans that are eligible for restructuring
under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall
enter into a participation agreement or other financial arrangement whereby it shall participate
in a restructured loan to the extent of 45 percent of the primary principal or deleted text begin $525,000 deleted text end new text begin
$625,000 new text end , whichever is less. The authority's portion of the loan must be protected during
the authority's participation by the first mortgage held by the eligible lender to the extent
of its participation in the loan.

Sec. 38.

Minnesota Statutes 2022, section 41B.042, subdivision 4, is amended to read:

Subd. 4.

Participation limit; interest.

The authority may participate in new
seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or
deleted text begin $400,000 deleted text end new text begin $500,000 new text end , whichever is less. The interest rates and repayment terms of the
authority's participation interest may be different than the interest rates and repayment terms
of the seller's retained portion of the loan.

Sec. 39.

Minnesota Statutes 2022, section 41B.043, subdivision 1b, is amended to read:

Subd. 1b.

Loan participation.

The authority may participate in an agricultural
improvement loan with an eligible lender to a farmer who meets the requirements of section
41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming.
Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $400,000 deleted text end new text begin
$500,000 new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different than the interest rates and repayment terms of the
lender's retained portion of the loan.

Sec. 40.

Minnesota Statutes 2022, section 41B.045, subdivision 2, is amended to read:

Subd. 2.

Loan participation.

The authority may participate in a livestock expansion
and modernization loan with an eligible lender to a livestock farmer who meets the
requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively
engaged in a livestock operation. A prospective borrower must have a total net worth,
including assets and liabilities of the borrower's spouse and dependents, of less than
$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by
multiplying that amount by the cumulative inflation rate as determined by the United States
All-Items Consumer Price Index.

Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $525,000 deleted text end new text begin
$625,000 new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different from the interest rates and repayment terms of the
lender's retained portion of the loan.

Sec. 41.

Minnesota Statutes 2022, section 41B.047, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement a disaster
recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well as
replace seed, other crop inputs, feed, and livestock;

(2) purchase watering systems, irrigation systems, deleted text begin and deleted text end other drought mitigation systems
and practices new text begin , and feed new text end when drought is the cause of the purchase;

(3) restore farmland;

(4) replace flocks or livestock, make building improvements, or cover the loss of revenue
when the replacement, improvements, or loss of revenue is due to the confirmed presence
of a highly contagious animal disease in a commercial poultry or game flock, or a commercial
livestock operation, located in Minnesota; or

(5) cover the loss of revenue when the revenue loss is due to an infectious human disease
for which the governor has declared a peacetime emergency under section 12.31.

Sec. 42.

Minnesota Statutes 2022, section 223.17, subdivision 6, is amended to read:

Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared new text begin by a third-party independent accountant or certified public accountant new text end in accordance
with deleted text begin generally accepted accounting principles deleted text end new text begin national or international accounting standards new text end .
The annual financial statement required under this subdivision must also:

(1) include deleted text begin , deleted text end but not be limited to the following:

(i) a balance sheet;

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

(iii) a statement of retained earnings;

(iv) a statement of deleted text begin changes in financial position deleted text end new text begin cash flow new text end ; and

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

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

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

deleted text begin (4) for grain buyers purchasing under $7,500,000 of grain annually, be reviewed by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants, and must show that the financial statements are free from
material misstatements; and
deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end for grain buyers purchasing $7,500,000 or more of grain annually, be audited new text begin or
reviewed new text end by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants deleted text begin and deleted text end new text begin or similar international standards.
An audit new text end must include an opinion statement from the certified public accountant deleted text begin . deleted text end new text begin performing
the audit; and
new text end

new text begin (4) for grain buyers purchasing $20,000,000 or more of grain annually, be audited by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants or similar international standards. The audit must include
an opinion statement from the certified public accountant performing the audit.
new text end

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

(c) A grain buyer who purchases grain immediately upon delivery solely with cash deleted text begin ; a
certified check; a cashier's check; or a postal, bank, or express money order deleted text end new text begin , as defined in
section 223.16, subdivision 2a, paragraph (b), new text end is exempt from this subdivision if the grain
buyer's gross annual purchases are $1,000,000 or less.

new text begin (d) For an entity that qualifies for the exemption in paragraph (c), the commissioner
retains the right to require the entity to provide the commissioner with financial reporting
based on inspections, any report of nonpayment, or other documentation related to violations
of this chapter, chapter 232, or Minnesota Rules, chapter 1562.
new text end

new text begin (e) To ensure compliance with this chapter, the commissioner must annually review
financial statements submitted under paragraph (a).
new text end

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

new text begin (g) The commissioner may require an entity to provide additional financial statements
or financial reporting, including audited financial statements.
new text end

Sec. 43.

Minnesota Statutes 2022, section 232.21, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of agriculture new text begin or the
commissioner's designee new text end .

Sec. 44.

Minnesota Statutes 2022, section 232.21, subdivision 7, is amended to read:

Subd. 7.

Grain.

"Grain" means any deleted text begin cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture,
dry edible beans, or agricultural crops designated by the commissioner by rule deleted text end new text begin product
commonly referred to as grain, including wheat, corn, oats, barley, rye, rice, soybeans,
emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, crambe, sesame seed, and other products ordinarily stored
in grain warehouses new text end .

Sec. 45.

Minnesota Statutes 2022, section 232.21, subdivision 11, is amended to read:

Subd. 11.

Producer.

"Producer" means a person who deleted text begin owns or manages a grain producing
or growing operation and holds or shares the responsibility for marketing that grain produced deleted text end new text begin
grows grain on land owned or leased by the person new text end .

Sec. 46.

Minnesota Statutes 2022, section 232.21, subdivision 12, is amended to read:

Subd. 12.

Public grain warehouse operator.

"Public grain warehouse operator" means new text begin :
(1) new text end a person deleted text begin licensed to operate deleted text end new text begin operating new text end a grain warehouse in which grain belonging to
persons other than the grain warehouse operator is accepted for storage or purchase deleted text begin , or deleted text end new text begin ; (2)
a person new text end who offers grain storage or grain warehouse facilities to the public for hire new text begin ; new text end or new text begin (3)
new text end a feed-processing plant that receives and stores grain, the equivalent of which deleted text begin , deleted text end it processes
and returns to the grain's owner in amounts, at intervals, and with added ingredients that
are mutually agreeable to the grain's owner and the person operating the plant.

Sec. 47.

Minnesota Statutes 2022, section 232.21, subdivision 13, is amended to read:

Subd. 13.

Scale ticket.

"Scale ticket" means a memorandum deleted text begin showing the weight, grade
and kind of grain which is deleted text end issued by a grain new text begin elevator or new text end warehouse operator to a depositor
at the time the grain is delivered.

Sec. 48. new text begin CREDIT MARKET REPORT REQUIRED.
new text end

new text begin The commissioner of agriculture must convene a stakeholder working group to explore
the state establishing a market for carbon credits, ecosystem services credits, or other credits
generated by farmers who implement clean water, climate-smart, and soil-healthy farming
practices. To the extent practicable, the stakeholder working group must include but is not
limited to farmers; representatives of agricultural organizations; experts in geoscience,
carbon storage, greenhouse gas modeling, and agricultural economics; industry
representatives with experience in carbon markets and supply chain sustainability; and
representatives of environmental organizations with expertise in carbon sequestration and
agriculture. No later than February 1, 2025, the commissioner must report recommendations
to the legislative committees with jurisdiction over agriculture. The commissioner must
provide participating stakeholders an opportunity to include written testimony in the
commissioner's report.
new text end

Sec. 49. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 3.7371, subdivision 7; and 34.07, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030;
1506.0035; and 1506.0040, new text end new text begin are repealed.
new text end

ARTICLE 4

BROADBAND

Section 1.

Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Transfer. new text end

new text begin The commissioner may transfer up to $5,000,000 of a fiscal year
appropriation between the border-to-border broadband program, low density population
broadband program, and the broadband line extension program to meet demand.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.
new text end

new text begin (a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of Commerce requesting State Digital
Equity Capacity Grant Funding made available under Public Law 117-58, the Infrastructure
Investment and Jobs Act.
new text end

new text begin (b) The amount awarded to Minnesota pursuant to the application submitted under
paragraph (a) is appropriated to the commissioner of employment and economic development
for purposes of the commissioner's Minnesota Digital Opportunity Plan.
new text end

APPENDIX

Repealed Minnesota Statutes: H3763-1

3.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.

Subd. 7.

Rules.

The commissioner shall adopt rules and may amend rules to carry out this section. The commissioner may use the expedited rulemaking process in section 14.389 to adopt and amend rules authorized in this section. The rules must include:

(1) methods of valuation of crops damaged or destroyed;

(2) criteria for determination of the cause of the crop damage or destruction;

(3) notice requirements by the owner of the damaged or destroyed crop;

(4) compensation rates for fence damage or destruction that must not exceed $1,800 per claimant per fiscal year; and

(5) any other matters determined necessary by the commissioner to carry out this section.

34.07 BEVERAGE INSPECTION ACCOUNT; APPROPRIATION.

A beverage inspection account is created in the agricultural fund. All fees and fines collected under this chapter shall be credited to the beverage inspection account. Money in the account is appropriated to the commissioner for inspection and supervision under this chapter.

Repealed Minnesota Rule: H3763-1

1506.0010 AUTHORITY.

Parts 1506.0010 to 1506.0040 are prescribed under Minnesota Statutes, section 3.7371, by the commissioner of agriculture to implement procedures to compensate agricultural crop owners for crops that are damaged or destroyed by elk. The procedures in parts 1506.0010 to 1506.0040 are in addition to those in Minnesota Statutes, section 3.7371.

1506.0015 DEFINITIONS.

Subpart 1.

Applicability.

The definitions in this part apply to parts 1506.0010 to 1506.0040.

Subp. 2.

Claim form.

"Claim form" means a form provided by the commissioner, to be completed by the crop owner and the county extension agent or federal crop adjuster, containing information upon which payment for a loss must be based.

Subp. 3.

Commissioner.

"Commissioner" means the commissioner of agriculture or the commissioner's authorized agent.

Subp. 4.

Crop owner.

"Crop owner" means an individual, firm, corporation, copartnership, or association with an interest in crops damaged or destroyed by elk.

Subp. 5.

County extension agent.

"County extension agent" means the University of Minnesota Agricultural Extension Service's county extension agent for the county in which the crop owner resides.

Subp. 6.

Federal crop adjuster.

"Federal crop adjuster" means a crop insurance adjuster having a contract with the Federal Crop Insurance Corporation.

Subp. 7.

Market price.

"Market price" means the commodity price published daily by the Minneapolis Grain Exchange in the daily record of prices and receipts.

Subp. 8.

Target price.

"Target price" means the federal commodity price available from the Agricultural Stabilization and Conservation Service office.

1506.0020 REPORTING.

The crop owner shall notify either the federal crop adjuster or the county extension agent of suspected crop loss or damage within 24 hours of the discovery of a loss. The crop owner shall also complete the appropriate part of the claim form which must be available at the county extension office. The crop owner shall provide all information required to investigate the loss or damage to the federal crop adjuster or the county extension agent. A telephone call or personal contact constitutes notification.

1506.0025 INVESTIGATION AND CROP VALUATION.

Subpart 1.

Whether damaged by elk.

The federal crop adjuster or the county extension agent shall investigate the loss in a timely manner and shall make a finding in writing on the appropriate part of the claim form regarding whether the crop was destroyed or damaged by elk. The finding must be based on physical and circumstantial evidence including:

A.

the condition of the crop;

B.

elk tracks;

C.

the area of the state where the loss occurred;

D.

sightings of elk in the area; and

E.

any other circumstances considered pertinent by the federal crop adjuster or the county extension agent.

The absence of affirmative evidence may be grounds for denial of a claim.

Subp. 2.

Extent of damage.

The federal crop adjuster or the county extension agent shall make a written finding on the claim form of the extent of damage or the amount of crop destroyed. The crop owner may choose to have the federal crop adjuster or county extension agent use the method in item A or B to complete the claim form and determine the amount of crop loss.

A.

To submit the claim form at the time the suspected elk damage is discovered, the federal crop adjuster or county extension agent must determine the potential yield, per acre, for the field and record this information on the form in the column labeled "normal yield" and the average yield, per acre, expected from the damaged acres and record this information on the form in the column labeled "average yield expected from damaged acres."

B.

To submit the claim form at the time the crop is harvested:

(1)

the crop owner shall report the loss to the federal crop adjuster or county extension agent within 24 hours of discovery, and the loss must be investigated by the federal crop adjuster or county extension agent in a timely manner;

(2)

the crop owner and federal crop adjuster or county extension agent shall complete the claim form at the time of the investigation, entering the percent of crop loss from damage in the column labeled "normal yield" and leaving the column labeled "average yield expected from damaged acres" blank; and

(3)

when the crop is harvested the federal crop adjuster or county extension agent shall enter the actual yield of the damaged field in the column labeled "average yield expected from damaged acres," enter the date in the same column, and submit the form to the commissioner.

1506.0030 COMPLETION AND SIGNING OF CLAIM FORM.

A completed claim form must be signed by the owner and county extension agent or the federal crop adjuster and submitted by the crop owner to the commissioner for review and payment. The commissioner shall return an incomplete claim form to the crop owner, indicating the information necessary for proper completion.

1506.0035 INSURANCE COVERAGE.

If insurance coverage exists on the crop, the commissioner shall withhold payment under parts 1506.0010 to 1506.0040 until the insurance claim has been paid and evidence of payment has been submitted to the commissioner, at which time that insurance payment must be deducted from the determined value. Payment must not be made for claims of less than $100 per claim or more than $20,000 in a calendar year.

1506.0040 PAYMENT.

After procedures in parts 1506.0020 to 1506.0035 are completed, the commissioner shall make payment to the crop owners.