HF 1437

as introduced - 89th Legislature (2015 - 2016) Posted on 03/04/2015 11:32am

A bill for an act
relating to state government; appropriating money for agriculture, animal health,
and agricultural utilization research; providing retail food establishment and
food handler license fees; making policy and technical changes to various
agricultural related provisions, including provisions related to pesticide control,
plant protection, nursery law, seeds, food handlers, food, farmland, farming,
and loans; establishing the farm opportunity loan program; modifying fees and
surcharges; creating accounts; amending Minnesota Statutes 2014, sections
13.643, subdivision 1; 18B.01, subdivisions 28, 29; 18B.32, subdivision 1;
18B.33, subdivision 1; 18B.34, subdivision 1; 18C.425, subdivision 6; 18G.10,
subdivisions 3, 4, 5; 18H.02, subdivision 20, by adding subdivisions; 18H.06,
subdivision 2; 18H.07; 21.81, by adding subdivisions; 21.82, subdivisions 2, 4;
21.85, subdivision 2, by adding a subdivision; 21.89, subdivision 2; 21.891,
subdivisions 2, 5; 25.39, subdivision 1; 28A.03, by adding subdivisions;
28A.08, subdivision 1, by adding subdivisions; 28A.082, subdivision 1; 31.39,
subdivision 1; 32.394, subdivisions 8, 8b; 41B.03, subdivision 6, by adding
a subdivision; 41B.04, subdivision 17; 41B.043, subdivision 3; 41B.045,
subdivisions 3, 4; 41B.046, subdivision 5; 41B.047, subdivisions 1, 4; 41B.048,
subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056,
subdivision 2; 41B.06; 500.24, subdivision 4; proposing coding for new law
in Minnesota Statutes, chapters 15; 41B; repealing Minnesota Statutes 2014,
sections 17.115; 28A.08, subdivision 3; 41A.12, subdivision 4.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

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

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2016 new text end		new text begin 2017 new text end

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

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

new text begin $ new text end

new text begin 31,329,000 new text end

new text begin $ new text end

new text begin 31,539,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 29,951,000 new text end	new text begin 30,161,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end
new text begin Agricultural new text end	new text begin 990,000 new text end	new text begin 990,000 new text end

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

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

new text begin 10,733,000 new text end

new text begin 10,733,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 10,155,000 new text end	new text begin 10,155,000 new text end
new text begin Agricultural new text end	new text begin 190,000 new text end	new text begin 190,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin $388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
new text end

new text begin $150,000 the first year and $150,000
the second year are for compensation
for destroyed or crippled animals under
Minnesota Statutes, section 3.737. If the
amount in the first year is insufficient, the
amount in the second year is available in the
first year.
new text end

new text begin $50,000 the first year and $50,000 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.
new text end

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

new text begin $200,000 the first year and $200,000 the
second year are for additional funding for
dairy inspection services.
new text end

new text begin $150,000 the first year and $150,000 the
second year are for additional funding for
laboratory services operations.
new text end

new text begin $250,000 the first year and $250,000
the second year are for additional meat
inspection services.
new text end

new text begin Notwithstanding Minnesota Statutes, section
18B.05, $90,000 the first year and $90,000
the second year are from the pesticide
regulatory account in the agricultural fund
for an increase in the operating budget for
the Laboratory Services Division.
new text end

new text begin $100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials.
new text end

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

new text begin 3,873,000 new text end

new text begin 3,873,000 new text end

new text begin $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2017, for Minnesota
grown grants in this paragraph are available
until June 30, 2019.
new text end

new text begin $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's
dairy farmers. The commissioner must
submit a detailed accomplishment report
and a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agricultural policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.
new text end

new text begin 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 for
persons transitioning from conventional to
organic agriculture.
new text end

new text begin Subd. 4. new text end new text begin Bioenergy and Value-Added Agriculture new text end

new text begin 10,235,000 new text end

new text begin 10,235,000 new text end

new text begin $10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; facilitating
the start-up, modernization, or expansion
of other beginning and transitioning farms;
research on conventional and cover crops;
sustainable agriculture on farm research and
demonstration; and research on bioenergy,
biobased content, or biobased formulated
products and other renewable energy
development.
new text end

new text begin The commissioner may use up to 4.5 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 for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants in this subdivision are available until
June 30, 2019.
new text end

new text begin Funds in this appropriation may be used for
grants under this paragraph. The NextGen
Energy Board, established in Minnesota
Statutes, section 41A.105, shall make
recommendations to the commissioner on
grants for owners of Minnesota facilities
producing bioenergy, biobased content,
or a biobased formulated product; for
organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or for certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The board shall make
a good-faith effort to select projects that have
merit and, when taken together, represent a
variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
provide certification on the technology and
fuel source. Grantees must provide reports at
the request of the commissioner.
new text end

new text begin Notwithstanding Minnesota Statutes, section
41A.12, subdivision 3, of the amount
appropriated in this subdivision, $1,000,000
the first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to preserve and
promote Minnesota agriculture.
new text end

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

new text begin 6,488,000 new text end

new text begin 6,698,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 5,688,000 new text end	new text begin 5,898,000 new text end
new text begin Agricultural new text end	new text begin 800,000 new text end	new text begin 800,000 new text end

new text begin $47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
new text end

new text begin $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

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

new text begin $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
new text end

new text begin $108,000 the first year and $108,000 the
second year are for annual 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 grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
new text end

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of 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 Second Harvest 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 (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. 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 receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
new text end

new text begin $94,000 the first year and $94,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators through farm business
management programs at Central Lakes
College and Ridgewater College.
new text end

new text begin $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
new text end

new text begin Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2017, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.
new text end

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

new text begin $ new text end

new text begin 5,318,000 new text end

new text begin $ new text end

new text begin 5,384,000 new text end

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

new text begin $ new text end

new text begin 3,643,000 new text end

new text begin $ new text end

new text begin 3,643,000 new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:

Subdivision 1.

Department of Agriculture data.

(a) Loan and grant applicant
data. The following data on applicants, collected by the Department of Agriculture in its
sustainable agriculture revolving loan and grant programs under deleted text begin sections 17.115 and deleted text end new text begin section new text end
17.116, are private or nonpublic: nonfarm income; credit history; insurance coverage;
machinery and equipment list; financial information; and credit information requests.

(b) Farm advocate data. The following data supplied by farmer clients to
Minnesota farm advocates and to the Department of Agriculture are private data on
individuals: financial history, including listings of assets and debts, and personal and
emotional status information.

Sec. 2.

new text begin [15.445] RETAIL FOOD ESTABLISHMENT FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Fees. new text end

new text begin The fees in this section are required for retail food handler
and food and beverage service establishments, licensed under chapters 28A and 157.
Permanent retail food handler and food and beverage service establishments must pay
the applicable fee under subdivision 2, paragraph (a), (b), (c), or (d), and all applicable
fees under subdivision 4. Temporary food establishments and special events must pay the
applicable fee under subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Permanent food establishments. new text end

new text begin (a) The Category 1 establishment
license fee is $210 annually. "Category 1 establishment" means an establishment that
does one or more of the following:
new text end

new text begin (1) sells only prepackaged nonpotentially hazardous foods as defined in Minnesota
Rules, chapter 4626;
new text end

new text begin (2) provides cleaning for eating, drinking, or cooking utensils, when the only food
served is prepared off-site;
new text end

new text begin (3) operates a childcare facility licensed under section 245A.03 and Minnesota
Rules, chapter 9503; or
new text end

new text begin (4) operates as a retail food handler classified in section 28A.05 and has gross annual
sales of $250,000 or less.
new text end

new text begin (b) The Category 2 establishment license fee is $270. "Category 2 establishment"
means an establishment that is not a Category 1 establishment and is either:
new text end

new text begin (1) a food establishment where the method of food preparation meets the definition
of a low-risk establishment in section 157.20; or
new text end

new text begin (2) an elementary or secondary school as defined in section 120A.05.
new text end

new text begin (c) The Category 3 establishment license fee is $460 annually. "Category 3
establishment" means an establishment that is not a Category 1 or 2 establishment and
the method of food preparation meets the definition of a medium-risk establishment in
section 157.20.
new text end

new text begin (d) The Category 4 establishment license fee is $690 annually. "Category 4
establishment" means an establishment that is not a Category 1, 2, or 3 establishment
and is either:
new text end

new text begin (1) a food establishment where the method of food preparation meets the definition
of a high-risk establishment in section 157.20; or
new text end

new text begin (2) an establishment where 500 or more meals per day are prepared at one location
and served at one or more separate locations.
new text end

new text begin Subd. 3. new text end

new text begin Temporary food establishments and special events. new text end

new text begin (a) The special
event food stand license fee is $50 annually. Special event food stand is where food is
prepared or served in conjunction with celebrations, county fairs, or special events from a
special event food stand as defined in section 157.15.
new text end

new text begin (b) The temporary food and beverage service license fee is $210 annually. A
temporary food and beverage service includes food carts, mobile food units, seasonal
temporary food stands, retail food vehicles, portable structures, and seasonal permanent
food stands.
new text end

new text begin Subd. 4. new text end

new text begin Additional applicable fees. new text end

new text begin (a) The individual private sewer or individual
private water license fee is $60 annually. Individual private water is a water supply other
than a community public water supply as covered in Minnesota Rules, chapter 4720.
Individual private sewer is an individual sewage treatment system which uses subsurface
treatment and disposal.
new text end

new text begin (b) The additional food or beverage service license fee is $165 annually. Additional
food or beverage service is a location at a food service establishment, other than the
primary food preparation and service area, used to prepare or serve food or beverages to
the public. Additional food service does not apply to school concession stands.
new text end

new text begin (c) The large retail food handler license fee is .02 percent of gross sales or service
including food service with a maximum fee of $5,000 annually. Large retail food handler
is a fee category added to a license for retail food handlers as classified in section 28A.05
with gross annual sales over $10,000,000.
new text end

new text begin (d) The specialized processing license fee is $400 annually. Specialized processing
is a business that performs one or more specialized processes that require a HACCP as
required in Minnesota Rules, chapter 4626.
new text end

Sec. 3.

Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:

Subd. 28.

Structural pest.

"Structural pest" means deleted text begin a deleted text end new text begin an invertebrate new text end pest deleted text begin , other
than a plant, deleted text end new text begin or commensal rodent new text end in, on, under, or near a structure new text begin such as a residential
or commercial building new text end .

Sec. 4.

Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:

Subd. 29.

Structural pest control.

"Structural pest control" means the control of
any structural pest through the deleted text begin use of a device, a procedure, or deleted text end application of pesticides new text begin or
through other means new text end in or around a building or other structures, including trucks, boxcars,
ships, aircraft, docks, and fumigation vaults deleted text begin , and the business activity related to use of a
device, a procedure, or application of a pesticide deleted text end .

Sec. 5.

Minnesota Statutes 2014, 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; and

(2) as a sole proprietorship, company, partnership, or corporation unless the person
is or employs a licensed master in structural pest control operations.

(b) A structural pest control licensee must have a valid license identification card
deleted text begin when applying deleted text end new text begin to purchase a restricted use pesticide or apply new text end 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.

deleted text begin (c) Notwithstanding the licensing requirements of this subdivision, a person may
control the following nuisance or economically damaging wild animals, by trapping,
without a structural pest control license:
deleted text end

deleted text begin (1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license
or special permit from the commissioner of natural resources; and
deleted text end

deleted text begin (2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.
deleted text end

Sec. 6.

Minnesota Statutes 2014, 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
deleted text begin when applying deleted text end new text begin to purchase a restricted use pesticide or apply new text end 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.

Sec. 7.

Minnesota Statutes 2014, 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 new text begin purchase or new text end 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.

Sec. 8.

Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:

Subd. 6.

Payment of inspection fee.

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

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

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee
of deleted text begin 30 deleted text end new text begin 39 new text end cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a minimum of
$10 on all tonnage reports. Products sold or distributed to manufacturers or exchanged
between them are exempt from the inspection fee imposed by this subdivision if the
products are used exclusively for manufacturing purposes.

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

Sec. 9.

Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:

Subd. 3.

Cooperative agreements.

The commissioner may enter into cooperative
agreements with federal and state agencies for administration of the export certification
program. deleted text begin An exporter of plants or plant products desiring to originate shipments from
Minnesota to a foreign country requiring a phytosanitary certificate or export certificate
must submit an application to the commissioner.
deleted text end

Sec. 10.

Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:

Subd. 4.

Phytosanitary and export certificates.

new text begin An exporter of plants or plant
products desiring to originate shipments from Minnesota to a foreign country requiring
a phytosanitary certificate or export certificate must submit an application to the
commissioner. new text end Application for phytosanitary certificates or export certificates must be
made on forms provided or approved by the commissioner. The commissioner deleted text begin shall deleted text end new text begin may new text end
conduct inspections of plants, plant products, or facilities for persons that have applied for
or intend to apply for a phytosanitary certificate or export certificate from the commissioner.
deleted text begin Inspections must include one or more of the following as requested or required:
deleted text end

deleted text begin (1) an inspection of the plants or plant products intended for export under a
phytosanitary certificate or export certificate;
deleted text end

deleted text begin (2) field inspections of growing plants to determine presence or absence of plant
diseases, if necessary;
deleted text end

deleted text begin (3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
deleted text end

deleted text begin (4) observation and evaluation of procedures and facilities utilized in handling
plants and plant products, if necessary; and
deleted text end

deleted text begin (5) review of United States Department of Agriculture, Federal Grain Inspection
Service Official Export Grain Inspection Certificate logs.
deleted text end

The commissioner may issue a phytosanitary certificate or export certificate if the
plants or plant products satisfactorily meet the requirements of the importing foreign
country and the United States Department of Agriculture requirements. The requirements
of the destination countries must be met by the applicant.

Sec. 11.

Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:

Subd. 5.

Certificate fees.

(a) The commissioner shall assess deleted text begin the fees in paragraphs
(b) to (f) deleted text end new text begin fees sufficient to recover all costs new text end for the inspection, service, and work performed
in carrying out the issuance of a phytosanitary certificate or export certificate. deleted text begin The
inspection fee must be based on mileage and inspection time.
deleted text end

deleted text begin (b) Mileage charge: current United States Internal Revenue Service mileage rate.
deleted text end

deleted text begin (c) Inspection time: $50 per hour minimum or fee necessary to cover department
costs. Inspection time includes the driving time to and from the location in addition to
the time spent conducting the inspection.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end If laboratory analysis or other technical analysis is required to issue a
certificate, the commissioner must set and collect the fee to recover this additional cost.

deleted text begin (e) deleted text end new text begin (c) The new text end certificate fee deleted text begin for product value greater than $250: deleted text end new text begin is new text end $75 new text begin or a fee amount,
not to exceed $300, that is sufficient to recover all processing costs new text end for each phytosanitary
or export certificate issued deleted text begin for any single shipment valued at more than $250 deleted text end in addition to
any mileage or inspection time charges that are assessed.

deleted text begin (f) Certificate fee for product value less than $250: $25 for each phytosanitary or
export certificate issued for any single shipment valued at less than $250 in addition to
any mileage or inspection time charges that are assessed.
deleted text end

deleted text begin (g) deleted text end new text begin (d) new text end For services provided for in subdivision 7 that are goods and services
provided for the direct and primary use of a private individual, business, or other entity,
the commissioner must set and collect the fees to cover the cost of the services provided.

Sec. 12.

Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:

Subd. 20.

Nursery stock.

"Nursery stock" means a plant intended for planting or
propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts,
cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all
viable parts of these plants. Nursery stock does not include:

(1) field and forage crops new text begin or sod new text end ;

(2) deleted text begin the deleted text end seeds deleted text begin of grasses, cereal grains, vegetable crops, and flowers deleted text end ;

(3) vegetable plants, bulbs, or tubers;

(4) cut flowers, unless stems or other portions are intended for propagation;

(5) annuals; or

(6) Christmas trees.

Sec. 13.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:

new text begin Subd. 32a. new text end

new text begin Sod. new text end

new text begin "Sod" means the upper portion of soil that contains the roots of
grasses and the living grass plants.
new text end

Sec. 14.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:

new text begin Subd. 35. new text end

new text begin Tropical plant. new text end

new text begin "Tropical plant" means a plant that has a United States
Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual
minimum hardiness temperature of -9 degrees Fahrenheit.
new text end

Sec. 15.

Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:

Subd. 2.

Occasional sales.

(a) An individual may offer nursery stock for sale and be
exempt from the requirement to obtain a nursery stock deleted text begin dealer deleted text end certificate if:

(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;

(2) all nursery stock sold or distributed by the individual is intended for planting
in Minnesota;

(3) all nursery stock purchased or procured for resale or distribution was grown in
Minnesota and has been certified by the commissioner; and

(4) conducts sales or distributions of nursery stock on ten or fewer days in a calendar
year.

(b) The commissioner may prescribe the conditions of the exempt nursery sales under
this subdivision and may conduct routine inspections of the nursery stock offered for sale.

Sec. 16.

Minnesota Statutes 2014, section 18H.07, is amended to read:

18H.07 FEE SCHEDULE.

Subdivision 1.

Establishment of fees.

The commissioner shall establish fees
sufficient to allow for the administration and enforcement of this chapter and rules adopted
under this chapter, including the portion of general support costs and statewide indirect
costs of the agency attributable to that function, with a reserve sufficient for up to six
months. The commissioner shall review the fee schedule annually in consultation with
the Minnesota Nursery and Landscape Advisory Committee. For the certificate year
beginning January 1, 2006, the fees are as described in this section.

Subd. 2.

Nursery stock grower certificate.

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

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

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

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

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

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

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

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

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

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

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

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

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

Subd. 3.

Nursery stock dealer certificate.

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

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

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

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

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

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

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

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

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

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

Subd. 4.

Reinspection; additional or optional inspection fees.

If a reinspection is
required or an additional inspection is needed or requested a fee must be assessed based
on mileage and inspection time as follows:

(1) mileage must be charged at the current United States Internal Revenue Service
reimbursement rate; and

(2) inspection time must be charged at deleted text begin the rate of $50 per hour, deleted text end new text begin a rate sufficient to
recover all inspection costs new text end including the driving time to and from the location in addition
to the time spent conducting the inspection.

Sec. 17.

Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Address. new text end

new text begin "Address" means the complete primary mailing address of the
labeler or the person or firm selling seed. A complete address includes the street address,
post office box, or rural route, and city, state, and zip code or postal code.
new text end

Sec. 18.

Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision
to read:

new text begin Subd. 27a. new text end

new text begin Total viable. new text end

new text begin "Total viable" means the sum of the germination
percentage, plus hard seeds, dormant seeds, or both.
new text end

Sec. 19.

Minnesota Statutes 2014, section 21.82, subdivision 2, is amended to read:

Subd. 2.

Content.

For agricultural, vegetable, flower, or wildflower seeds offered
for sale as agricultural seed, except as otherwise provided in subdivisions 4, 5, and 6, the
label must contain:

(a) The name of the kind or kind and variety for each seed component in excess
of five percent of the whole and the percentage by weight of each in order of its
predominance. The commissioner shall by rule designate the kinds that are required to be
labeled as to variety. If the variety of those kinds generally labeled as to variety is not
stated and it is not required to be stated, the label shall show the name of the kind and the
words: "Variety not stated." The heading "pure seed" must be indicated on the seed label
in close association with other required label information.

(1) The percentage that is hybrid shall be at least 95 percent of the percentage of pure
seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
If two or more kinds or varieties are present in excess of five percent and are named on
the label, each that is hybrid shall be designated as hybrid on the label. Any one kind or
kind and variety that has pure seed which is less than 95 percent but more than 75 percent
hybrid seed as a result of incompletely controlled pollination in a cross shall be labeled to
show the percentage of pure seed that is hybrid seed or a statement such as "contains from
75 percent to 95 percent hybrid seed." No one kind or variety of seed shall be labeled as
hybrid if the pure seed contains less than 75 percent hybrid seed. The word hybrid shall be
shown on the label in conjunction with the kind.

(2) Blends shall be listed on the label using the term "blend" in conjunction with
the kind.

(3) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."

(b) Lot number or other lot identification.

(c) Origin, if known, or that the origin is unknown.

(d) Percentage by weight of all weed seeds present. This percentage may not exceed
one percent. The heading "weed seed" must be indicated on the seed label in close
association with other required label information.

(e) Name and rate of occurrence per pound of each kind of restricted noxious weed
seeds present. They must be listed under the heading "noxious weed seeds" in close
association with other required label information.

(f) Percentage by weight of seeds other than those kinds and varieties required
to be named on the label. They must be listed under the heading "other crop" in close
association with other required label information.

(g) Percentage by weight of inert matter. The heading "inert matter" must be
indicated on the seed label in close association with other required label information.

(h) Net weight of contents, to appear on either the container or the label.

(i) For each named kind or variety of seed:

(1) percentage of germination, exclusive of hard or dormant seed or both;

(2) percentage of hard or dormant seed or both, if present; and

(3) the calendar month and year the percentages were determined by test or the
statement "sell by (month and year)" which may not be more than 12 months from the
date of test, exclusive of the month of test.

The headings for "germination" and "hard seed or dormant seed" percentages must be
stated separately on the seed label. A separate percentage derived from combining these
percentages may also be stated on the seed label deleted text begin , but the heading for this percentage must
be "total germination and hard seed or dormant seed when applicable." They must not be
stated as "total live seed," "total germination," or in any other unauthorized manner. deleted text end new text begin as
"total viable."
new text end

(j) Name and address of the person who labeled the seed or who sells the seed within
this state, or a code number which has been registered with the commissioner.

Sec. 20.

Minnesota Statutes 2014, section 21.82, subdivision 4, is amended to read:

Subd. 4.

Hybrid seed corn.

For hybrid seed corn purposes a label must contain:

(1) a statement indicating the number of seeds in the container may be listed along
with or in lieu of the net weight of contents; and

(2) for each variety of hybrid seed field corn, the day classification as determined
by the originator or owner. The day classification must approximate the number of days
of growing season necessary from emergence of the corn plant above ground to relative
maturity and must deleted text begin conform to the day classification established by the director of deleted text end new text begin be
within three days of maturity ratings determined in comparative trials by new text end the Minnesota
agricultural experiment station deleted text begin for the appropriate zone deleted text end .

Sec. 21.

Minnesota Statutes 2014, section 21.85, subdivision 2, is amended to read:

Subd. 2.

Seed laboratory.

new text begin (a) new text end The commissioner shall establish and maintain a seed
laboratory for seed testing, employing necessary agents and assistants to administer and
enforce sections 21.80 to 21.92, who shall be governed by chapter 43A.

new text begin (b) The laboratory procedures for testing official seed samples are the procedures
set forth in the Rules for Testing Seeds that is published annually by the Association of
Official Seed Analysts. If a laboratory procedure rule does not exist for a particular type
of seed, then laboratory procedures from other recognized seed testing sources may be
used, including procedures under the Code of Federal Regulations, title 7, part 201, or
the International Rules for Testing Seeds.
new text end

Sec. 22.

Minnesota Statutes 2014, section 21.85, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Prohibited and restricted seeds. new text end

new text begin The commissioner shall determine
species that are considered prohibited weed seeds and restricted noxious weed seeds and
the allowable rate of occurrence of restricted noxious weed seeds.
new text end

Sec. 23.

Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:

Subd. 2.

Permits; issuance and revocation.

The commissioner shall issue a permit
to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold
for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92.
The categories of permits are as follows:

(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each
calendar year, an annual permit issued for a fee established in section 21.891, subdivision
2, paragraph (b);

(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for
use in home gardens or household plantings, new text begin and initial labelers who sell native grasses
and wildflower seed in commercial or agricultural quantities, new text end an annual permit issued for
a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross
sales from the previous year; and

(3) for initial labelers who sell more than 50,000 pounds of agricultural seed
each calendar year, a permanent permit issued for a fee established in section 21.891,
subdivision 2, paragraph (d).

In addition, the person shall furnish to the commissioner an itemized statement of all
seeds sold in Minnesota for the periods established by the commissioner. This statement
shall be delivered, along with the payment of the fee, based upon the amount and type
of seed sold, to the commissioner no later than 30 days after the end of each reporting
period. Any person holding a permit shall show as part of the analysis labels or invoices
on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the
commissioner requires. The commissioner may revoke any permit in the event of failure
to comply with applicable laws and rules.

Sec. 24.

Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:

Subd. 2.

Seed fee permits.

(a) An initial labeler who wishes to sell seed in
Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in
this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to
the commissioner to obtain a permit. The application must contain the name and address of
the applicant, the application date, and the name and title of the applicant's contact person.

(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
(1), must be accompanied by an application fee of deleted text begin $50 deleted text end new text begin $75 new text end .

(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
(2), must be accompanied by an application fee based on the level of annual gross sales
as follows:

(1) for gross sales of $0 to $25,000, the annual permit fee is deleted text begin $50 deleted text end new text begin $75 new text end ;

(2) for gross sales of $25,001 to $50,000, the annual permit fee is deleted text begin $100 deleted text end new text begin $150 new text end ;

(3) for gross sales of $50,001 to $100,000, the annual permit fee is deleted text begin $200 deleted text end new text begin $300 new text end ;

(4) for gross sales of $100,001 to $250,000, the annual permit fee is deleted text begin $500 deleted text end new text begin $750 new text end ;

(5) for gross sales of $250,001 to $500,000, the annual permit fee is deleted text begin $1,000 deleted text end new text begin $1,500 new text end ;
and

(6) for gross sales of $500,001 deleted text begin and above deleted text end new text begin to $1,000,000 new text end , the annual permit fee is
deleted text begin $2,000 deleted text end new text begin $3,000; and
new text end

new text begin (7) for gross sales of $1,000,0001 and above, the annual permit fee is $4,500 new text end .

(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
(3), must be accompanied by an application fee of deleted text begin $50 deleted text end new text begin $75 new text end . Initial labelers holding seed
fee permits covered under this paragraph need not apply for a new permit or pay the
application fee. Under this permit category, the fees for the following kinds of agricultural
seed sold either in bulk or containers are:

(1) oats, wheat, and barley, deleted text begin 6.3 deleted text end new text begin 9 new text end cents per hundredweight;

(2) rye, field beans, soybeans, buckwheat, and flax, deleted text begin 8.4 deleted text end new text begin 12 new text end cents per hundredweight;

(3) field corn, deleted text begin 29.4 deleted text end new text begin 17 new text end cents per deleted text begin hundredweight deleted text end new text begin 80,000 seed unit new text end ;

(4) forage, lawn and turf grasses, and legumes, deleted text begin 49 deleted text end new text begin 69 new text end cents per hundredweight;

(5) sunflower, deleted text begin $1.40 deleted text end new text begin $1.96 new text end per hundredweight;

(6) sugar beet, deleted text begin $3.29 deleted text end new text begin 12 cents new text end per deleted text begin hundredweight deleted text end new text begin 100,000 seed unit new text end ; deleted text begin and
deleted text end

new text begin (7) soybeans, 7.5 cents per 140,000 seed unit; and
new text end

deleted text begin (7) deleted text end new text begin (8) new text end for any agricultural seed not listed in clauses (1) to deleted text begin (6) deleted text end new text begin (7) new text end , the fee for the crop
most closely resembling it in normal planting rate applies.

(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is
shipped into Minnesota by a person other than the initial labeler, the responsibility for the
seed fees are transferred to the shipper. An application for a transfer of this responsibility
must be made to the commissioner. Upon approval by the commissioner of the transfer,
the shipper is responsible for payment of the seed permit fees.

(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or
as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the
words "Minnesota seed permit fees" must be used.

(g) All seed fee permit holders must file semiannual reports with the commissioner,
even if no seed was sold during the reporting period. Each semiannual report must be
submitted within 30 days of the end of each reporting period. The reporting periods are
October 1 to March 31 and April 1 to September 30 of each year or July 1 to December
31 and January 1 to June 30 of each year. Permit holders may change their reporting
periods with the approval of the commissioner.

(h) The holder of a seed fee permit must pay fees on all seed for which the permit
holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold
during the reporting period.

(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed
fee within 30 days after the end of each reporting period, the commissioner shall assess a
penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever
is greater, but no more than $500 for each late semiannual report. A $15 penalty must be
charged when the semiannual report is late, even if no fee is due for the reporting period.
Seed fee permits may be revoked for failure to comply with the applicable provisions of
this paragraph or the Minnesota seed law.

Sec. 25.

Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:

Subd. 5.

Brand name registration fee.

The fee is deleted text begin $25 deleted text end new text begin $50 new text end for each variety
registered for sale by brand name.

Sec. 26.

Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of deleted text begin 16 deleted text end new text begin 26 new text end cents per
ton must be paid to the commissioner on commercial feeds distributed in this state by deleted text begin the deleted text end new text begin
a new text end person deleted text begin who first distributes the commercial feed, deleted text end new text begin licensed under section 25.341 who
distributes a commercial feed to a person not required to be licensed, new text end except that deleted text begin :
deleted text end

deleted text begin (1) deleted text end no fee need be paid on:

deleted text begin (i) deleted text end new text begin (1) new text end a commercial feed if the payment has been made by a previous distributor; or

deleted text begin (ii) deleted text end new text begin (2) new text end customer formula feeds if the inspection fee is paid on the commercial feeds
which are used as ingredients deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) a Minnesota feed distributor who can substantiate that greater than 50 percent
of the distribution of commercial feed is to purchasers outside the state may purchase
commercial feeds without payment of the inspection fee under a tonnage fee exemption
permit issued by the commissioner. Such location specific permits shall be issued on a
calendar year basis to commercial feed distributors who submit a $100 nonrefundable
application fee and comply with rules adopted by the commissioner relative to record
keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial
feed tonnage distributed, and all other information which the commissioner may require
so as to ensure that proper inspection fee payment has been made.
deleted text end

(b) In the case of pet food distributed in the state only in packages of ten pounds
or less, a listing of each product and a current label for each product must be submitted
annually on forms provided by the commissioner and accompanied by an annual fee
of $50 for each product in lieu of the inspection fee. This annual fee is due by July 1.
The inspection fee required by paragraph (a) applies to pet food distributed in packages
exceeding ten pounds.

(c) In the case of specialty pet food distributed in the state only in packages of
ten pounds or less, a listing of each product and a current label for each product must
be submitted annually on forms provided by the commissioner and accompanied by an
annual fee of $25 for each product in lieu of the inspection fee. This annual fee is due
by July 1. The inspection fee required by paragraph (a) applies to specialty pet food
distributed in packages exceeding ten pounds.

(d) The minimum inspection fee is deleted text begin $10 deleted text end new text begin $100 new text end per annual reporting period.

Sec. 27.

Minnesota Statutes 2014, section 28A.03, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin HACCP plan. new text end

new text begin "Hazard analysis critical control point (HACCP) plan"
means a written document that delineates the formal procedures for following the HACCP
principles developed by the National Advisory Committee on Microbiological Criteria
for Foods.
new text end

Sec. 28.

Minnesota Statutes 2014, section 28A.03, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Statewide education and evaluation fee. new text end

new text begin "Statewide education and
evaluation fee" means a fee to fund statewide retail food program development activities,
including training for inspection staff, technical assistance, maintenance of a statewide
integrated food safety and security information system, and other related statewide
activities that support the retail food program activities.
new text end

Sec. 29.

Minnesota Statutes 2014, section 28A.08, subdivision 1, is amended to read:

Subdivision 1.

General.

License fees, penalties for late renewal of licenses, and
penalties for not obtaining a license before conducting business in food handling that are set
in this section apply to the sections named except as provided under section 28A.09. Except
as specified herein, bonds and assessments based on number of units operated or volume
handled or processed which are provided for in said laws shall not be affected, nor shall any
penalties for late payment of said assessments, nor shall inspection fees, be affected by this
chapter. The penalties may be waived by the commissioner. Fees for all new licenses must
be based on the anticipated future gross annual food sales. If a firm is found to be operating
for multiple years without paying license fees, the state may collect the appropriate fees
and penalties for each year of operation. new text begin Food handlers must pay the highest applicable
fee under subdivisions 4 to 9, and must pay all applicable fees under subdivision 10.
new text end

Sec. 30.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Retail food handler license fees. new text end

new text begin Retail food handler license fees are set
forth under section 15.445.
new text end

Sec. 31.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Wholesale food handler. new text end

new text begin (a) Wholesale food handler license fees are
set forth under this subdivision.
new text end

new text begin (b) The Category 1 license fee is $250. "Category 1" means a fee category as a
wholesale food handler as classified in section 28A.05 that has gross annual sales of
$250,000 or less.
new text end

new text begin (c) The Category 2 license fee is $500. "Category 2" means a fee category as a
wholesale food handler as classified in section 28A.05 that is not a Category 1 and where
food sales are limited to frozen storage or ambient, shelf-stable storage.
new text end

new text begin (d) The Category 3 license fee is $1,000. "Category 3" means a fee category as
a wholesale food handler as classified in section 28A.05 that is not Category 1 or 2
and where food sales include refrigerated storage or the distribution of perishable food
products as defined in section 34A.01.
new text end

new text begin (e) The Category 4 license fee is $1,500. "Category 4" means a fee category as a
wholesale food handler as classified in section 28A.05 that is not Category 1, 2, or 3 and
where food sales include one or more of the following:
new text end

new text begin (1) potentially hazardous foods that are considered ready-to-eat or are considered
specialized processes as defined and required by Code of Federal Regulations, title 21,
parts 113, 114, 120, and 123;
new text end

new text begin (2) high-risk production such as canning low-acid foods, acidifying foods, vacuum
packaging, salvaging, smoking for preservation, or curing; or
new text end

new text begin (3) potentially hazardous food frequently implicated in foodborne illnesses.
new text end

Sec. 32.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Wholesale food processor or manufacturer. new text end

new text begin (a) Wholesale food
processor or manufacturer license fees are set forth under this subdivision.
new text end

new text begin (b) The Category 1 license fee is $250. "Category 1" means a fee category as a
wholesale food processor or manufacturer as classified in section 28A.05 that has gross
annual sales of $250,000 or less.
new text end

new text begin (c) The Category 2 license fee is $600. "Category 2" means a fee category as a
wholesale food processor or manufacturer as classified in section 28A.05 that is not a
Category 1 and where food sales are limited to food that is not ready-to-eat or potentially
hazardous.
new text end

new text begin (d) The Category 3 license fee is $1,200. "Category 3" means a fee category
as a wholesale food processor or manufacturer as classified in section 28A.05 that is
not Category 1 or 2 and where food sales include foods that are either ready-to-eat or
potentially hazardous, but not both.
new text end

new text begin (e) The Category 4 license fee is $2,000. "Category 4" means a fee category as
a wholesale food processor or manufacturer as classified in section 28A.05 that is not
Category 1, 2, or 3 and where food sales include one or more of the following:
new text end

new text begin (1) potentially hazardous foods that are considered ready-to-eat or are considered
specialized processes as defined and required by Code of Federal Regulations, title 21,
parts 113, 114, 120, and 123;
new text end

new text begin (2) high-risk production such as canning low-acid foods, acidifying foods, vacuum
packaging, salvaging, smoking for preservation, or curing; or
new text end

new text begin (3) potentially hazardous food frequently implicated in foodborne illnesses.
new text end

new text begin (f) The fee for a wholesale food processor or manufacturer operating only at the
Minnesota State Fair is $125.
new text end

new text begin (g) The fee for a wholesale food manufacturer that has the permission of the
commissioner to use the name Minnesota Farmstead cheese is $30.
new text end

new text begin (h) The fee for a wholesale food manufacturer processing less than 700,000 pounds
of raw milk per year is $30.
new text end

Sec. 33.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Certain wholesale food processors. new text end

new text begin (a) For purposes of this subdivision,
"wholesale food processor" means a wholesale food processor of meat or poultry products
that is solely under the supervision of the United States Department of Agriculture. The
wholesale food processor fees are set forth in this subdivision.
new text end

new text begin (b) For a wholesale food processor with:
new text end

new text begin (1) gross sales or service of less than $250,000 for the immediately previous license
or fiscal year, the fee is $250;
new text end

new text begin (2) $250,001 to $5,000,000 gross sales or service for the immediately previous
license or fiscal year, the fee is $435;
new text end

new text begin (3) $5,000,001 to $10,000,000 gross sales or service for the immediately previous
license or fiscal year, the fee is $680;
new text end

new text begin (4) $10,000,001 to $25,000,000 gross sales or service for the immediately previous
license or fiscal year, the fee is $1,335;
new text end

new text begin (5) $25,000,001 to $100,000,000 gross sales or service for the immediately previous
license or fiscal year, the fee is $1,685; or
new text end

new text begin (6) $100,000,0001 or more gross sales or service for the immediately previous
license or fiscal year, the fee is $1,860.
new text end

Sec. 34.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Food broker. new text end

new text begin The license fee for a food broker or wholesaler food handler
that does not take physical possession of food is $250.
new text end

Sec. 35.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Milk marketing organization. new text end

new text begin The license fee for or a milk marketing
organization without facilities for processing or manufacturing that purchases milk from
milk producers for delivery to a licensed wholesale food processor or manufacturer is $50.
new text end

Sec. 36.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Additional applicable fees. new text end

new text begin (a) The license fee for an individual private
sewer or individual private water is $60. "Individual private water" means a fee category
with a water supply other than a community public water supply as defined in Minnesota
Rules, chapter 4720. "Individual private sewer" means a fee category with an individual
sewage treatment system that uses subsurface treatment and disposal.
new text end

new text begin (b) "Large wholesale food handler establishment" means a fee category added to
a license based on gross annual sales over $10,000,000 for wholesale food handlers as
classified in section 28A.05. The fee for a large wholesale food handler establishment shall
equal 0.02 percent of gross sales or service, including food, with a maximum fee of $7,500.
new text end

new text begin (c) "Large wholesale food processor or manufacturer establishment" means a fee
category added to a license based on gross annual sales over $10,000,000 for wholesale
food processors or manufacturers as classified in section 28A.05. The fee for a large
wholesale food processor or manufacturer establishment shall equal 0.02 percent of
gross sales or service, including food, with a maximum fee of $10,000. Wholesale food
processors or manufacturers paying license fees under section 28A.08, subdivision 7,
are exempt from this fee.
new text end

Sec. 37.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Statewide education and evaluation fee. new text end

new text begin Every person, individual, firm,
or corporation that operates as a retail food handler, retail mobile food handler, seasonal
temporary or permanent food stand, special event food stand, mobile food unit, or food
cart in Minnesota must submit to the commissioner a $15 annual statewide education
and evaluation fee for each licensed activity. The fee for establishments licensed by
the Department of Agriculture is required at the same time the licensure fee is due. For
establishments licensed by local governments, the fee shall be collected by the local
board of health as described in section 28A.075 and paid to the commissioner by July
1 of each year.
new text end

Sec. 38.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Penalties. new text end

new text begin The penalty for the late renewal of licenses or for not obtaining
a license before conducting business in food handling is 50 percent of the total license fee
and additional applicable fees as required under subdivisions 4 to 10.
new text end

Sec. 39.

Minnesota Statutes 2014, section 28A.08, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

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

new text begin A food handler license
fee account is created in the agricultural fund. Fees and penalties paid under this section
must be deposited in the food handler license fee account. Money in the account,
including interest accrued, is appropriated to the commissioner for the costs of the food
handler inspection program.
new text end

Sec. 40.

Minnesota Statutes 2014, section 28A.082, subdivision 1, is amended to read:

Subdivision 1.

Fees; application.

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

	square footage		review fee
	0 - 4,999 .	$	deleted text begin 200.00 deleted text end new text begin 600.00 new text end
	5,000 - 24,999 .	$	deleted text begin 275.00 deleted text end new text begin 825.00 new text end
	25,000 plus .	$	deleted text begin 425.00 deleted text end new text begin 1,275.00 new text end

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

Sec. 41.

Minnesota Statutes 2014, section 31.39, subdivision 1, is amended to read:

Subdivision 1.

Assessments.

The commissioner is hereby authorized and directed to
collect from each commercial cannery an assessment for inspection and services furnished,
and for maintaining a bacteriological laboratory and employing such bacteriologists
and trained and qualified sanitarians as the commissioner may deem necessary. The
assessment to be made on each commercial cannery, for each and every packing season,
shall not exceed one-half cent per case on all foods packed, canned, or preserved therein,
nor shall the assessment in any one calendar year to any one cannery exceed deleted text begin $6,000 deleted text end new text begin
$12,000 new text end , and the minimum assessment to any cannery in any one calendar year shall be
$100. The commissioner shall provide appropriate deductions from assessments for the
net weight of meat, chicken, or turkey ingredients which have been inspected and passed
for wholesomeness by the United States Department of Agriculture. The commissioner
may, when the commissioner deems it advisable, graduate and reduce the assessment to
such sum as is required to furnish the inspection and laboratory services rendered. The
amount of the assessment shall be due and payable on or before December 31, of each
year, and if not paid on or before February 15 following, shall bear interest after that date
at the rate of seven percent per annum, and a penalty of ten percent on the amount of the
assessment shall also be added and collected.

Sec. 42.

Minnesota Statutes 2014, section 32.394, subdivision 8, is amended to read:

Subd. 8.

Grade A inspection fees.

A processor or marketing organization of milk,
milk products, sheep milk, or goat milk who wishes to market Grade A milk or use the
Grade A label must apply for Grade A inspection service from the commissioner. A
pasteurization plant requesting Grade A inspection service must hold a Grade A permit
and pay an annual inspection fee of no more than $500. For Grade A farm inspection
service, the fee must be no more than deleted text begin $50 deleted text end new text begin $150 new text end per farm, paid annually by the processor
or by the marketing organization on behalf of its patrons. For a farm requiring a
reinspection in addition to the required biannual inspections, an additional fee must be
paid by the processor or by the marketing organization on behalf of its patrons. The fee
for reinspection of a farm with fewer than 100 cows is $60 per reinspection. The fee for
reinspection of a farm with 100 or more cows is $150 per reinspection.

Sec. 43.

Minnesota Statutes 2014, section 32.394, subdivision 8b, is amended to read:

Subd. 8b.

Manufacturing grade farm certification.

A processor or marketing
organization of milk, milk products, sheep milk, or goat milk who wishes to market other
than Grade A milk must apply for a manufacturing grade farm certification inspection
from the commissioner. A manufacturing plant that pasteurizes milk or milk by-products
must pay an annual fee based on the number of pasteurization units. This fee must not
exceed $140 per unit. The fee for farm certification inspection must not be more than deleted text begin $25 deleted text end new text begin
$75 new text end per farm to be paid annually by the processor or by the marketing organization on
behalf of its patrons. For a farm requiring more than the one inspection for certification, a
reinspection fee of $45 must be paid by the processor or by the marketing organization
on behalf of its patrons.

Sec. 44.

Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:

Subd. 6.

Application fee.

The authority may impose a reasonable nonrefundable
application fee for each application submitted for a beginning farmer loan or a
seller-sponsored loan. The application fee is initially $50. The authority may review the
fee annually and make adjustments as necessary. The fee must be deposited in the state
treasury and credited to deleted text begin an account in the special revenue fund. Money in the account is
appropriated to the commissioner for administrative expenses of the beginning farmer
and seller-sponsored loan programs deleted text end new text begin the Rural Finance Authority administrative account
established in subdivision 7 new text end .

Sec. 45.

Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Rural Finance Authority administrative account. new text end

new text begin There is established
in the special revenue fund a Rural Finance Authority administrative account. Money in
the account, including interest, is appropriated to the commissioner for the administrative
expenses of the loan programs administered by the Rural Finance Authority.
new text end

Sec. 46.

Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:

Subd. 17.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application and an origination fee for each loan
issued under the loan restructuring program. The origination fee is 1.5 percent of the
authority's participation interest in the loan and the application fee is $50. The authority
may review the fees annually and make adjustments as necessary. The fees must be
deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in the account is appropriated to the commissioner for administrative expenses
of the loan restructuring program deleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03 new text end .

Sec. 47.

Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:

Subd. 3.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application submitted for a participation issued
under the agricultural improvement loan program. The application fee is initially $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the agricultural improvement loan program deleted text end new text begin the Rural Finance Authority administrative
account established in section 41B.03 new text end .

Sec. 48.

Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:

Subd. 3.

Specifications.

deleted text begin No loan may be made to refinance an existing debt. deleted text end Each
loan participation must be secured by a mortgage on real property and such other security
as the authority may require.

Sec. 49.

Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:

Subd. 4.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an
origination fee for each loan issued under the livestock expansion loan program. The
origination fee initially shall be set at 1.5 percent and the application fee at $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the livestock expansion loan program deleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03 new text end .

Sec. 50.

Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:

Subd. 5.

Loans.

(a) The authority may participate in a stock loan with an eligible
lender to a farmer who is eligible under subdivision 4. Participation is limited to 45
percent of the principal amount of the loan or $40,000, whichever is less. The interest
rates and repayment terms of the authority's participation interest may differ from the
interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed 50 percent of the lender's interest rate.

(b) No more than 95 percent of the purchase price of the stock may be financed
under this program.

(c) Security for stock loans must be the stock purchased, a personal note executed by
the borrower, and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for each
application for a stock loan. The authority may review the fee annually and make
adjustments as necessary. The application fee is initially $50. Application fees received
by the authority must be deposited in the deleted text begin revolving loan account established in section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

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

(f) The authority may not grant stock loans in a cumulative amount exceeding
$2,000,000 for the financing of stock purchases in any one cooperative.

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

Sec. 51.

Minnesota Statutes 2014, 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, when damaged by high winds,
hail, tornado, or flood; deleted text begin or
deleted text end

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

new text begin (3) restore farmland.
new text end

Sec. 52.

Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may participate in a disaster recovery loan with
an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
to 45 percent of the principal amount of the loan or $50,000, whichever is less. The
interest rates and repayment terms of the authority's participation interest may differ from
the interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed four percent.

(b) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(c) Security for the disaster recovery loans must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for a
disaster recovery loan. The authority may review the fee annually and make adjustments
as necessary. The application fee is initially $50. Application fees received by the
authority must be deposited in the deleted text begin revolving loan account established under section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

(e) Disaster recovery loans under this program will be made using money in the
revolving loan account established under section 41B.06.

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

Sec. 53.

Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:

Subd. 6.

Loans.

(a) The authority may disburse loans through a fiscal agent to
farmers and agricultural landowners who are eligible under subdivision 5. The total
accumulative loan principal must not exceed $75,000 per loan.

(b) The fiscal agent may impose a loan origination fee in the amount of one percent
of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
the time of loan closing.

(c) The loan may be disbursed over a period not to exceed 12 years.

(d) A borrower may receive loans, depending on the availability of funds, for planted
areas up to 160 acres for up to:

(1) the total amount necessary for establishment of the crop;

(2) the total amount of maintenance costs, including weed control, during the first
three years; and

(3) 70 percent of the estimated value of one year's growth of the crop for years
four through 12.

(e) Security for the loan must be the crop, a personal note executed by the borrower, an
interest in the land upon which the crop is growing, and whatever other security is required
by the fiscal agent or the authority. All recording fees must be paid by the borrower.

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

(g) The authority may impose a reasonable, nonrefundable application fee for each
application for a loan under this program. The application fee is initially $50. Application
fees received by the authority must be deposited in the deleted text begin revolving loan account established
under section 41B.06 deleted text end new text begin Rural Finance Authority administrative account established in
section 41B.03 new text end .

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

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

(j) The interest payable on loans made by the authority for the agroforestry loan
program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the
revenue bonds, and may be established at a higher rate necessary to pay costs associated
with the issuance of the revenue bonds and a proportionate share of the cost of administering
the program. The interest payable on loans for the agroforestry loan program funded from
sources other than revenue bond proceeds must be at a rate determined by the authority.

(k) Loan principal balance outstanding plus all assessed interest must be repaid
within 120 days of harvest, but no later than 15 years from planting.

Sec. 54.

Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may make a direct loan or participate in a loan
with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms
of the authority's participation interest may differ from repayment terms of the lender's
retained portion of the loan. Loans made under this section must be no-interest loans.

(b) Application for a direct loan or a loan participation must be made on forms
prescribed by the authority.

(c) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(d) Security for the loans must be a personal note executed by the borrower and
whatever other security is required by the eligible lender or the authority.

(e) No loan proceeds may be used to refinance a debt existing prior to application.

(f) The authority may impose a reasonable nonrefundable application fee for
each application for a direct loan or a loan participation. The authority may review the
application fees annually and make adjustments as necessary. The application fee is
initially set at $100 for a loan under subdivision 1. The fees received by the authority must
be deposited in the deleted text begin revolving loan account established in section 41B.06 deleted text end new text begin Rural Finance
Authority administrative account established in section 41B.03 new text end .

Sec. 55.

Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:

Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan
equal to 90 percent of the purchased equipment value with an eligible lender to a farmer
who is eligible under subdivision 2. Participation is limited to 45 percent of the principal
amount of the loan or $40,000, whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must
not exceed three percent. The authority may review the interest annually and make
adjustments as necessary.

(b) Standards for loan amortization must be set by the Rural Finance Authority
and must not exceed ten years.

(c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) Refinancing of existing debt is not an eligible purpose.

(e) The authority may impose a reasonable, nonrefundable application fee for
a livestock equipment loan. The authority may review the fee annually and make
adjustments as necessary. The initial application fee is $50. Application fees received
by the authority must be deposited in the deleted text begin revolving loan account established in section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

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

Sec. 56.

Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Intermediary" means any lending institution or other organization of a for-profit
or nonprofit nature that is in good standing with the state of Minnesota that has the
appropriate business structure and trained personnel suitable to providing efficient
disbursement of loan funds and the servicing and collection of loans.

(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
and other horticultural products, that are intensively cultivated.

(d) "Eligible livestock" means deleted text begin poultry that has been allowed access to the outside,
sheep, or goats deleted text end new text begin beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
ratitae, bison, sheep, horses, and llamas new text end .

Sec. 57.

new text begin [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of agriculture shall establish a
farm opportunity loan program to provide loans that enable farmers to:
new text end

new text begin (1) add value to crops or livestock produced in Minnesota;
new text end

new text begin (2) adopt best management practices that emphasize sufficiency and self-sufficiency;
new text end

new text begin (3) reduce or improve management of agricultural inputs resulting in environmental
improvements; or
new text end

new text begin (4) increase production of on-farm energy.
new text end

new text begin Subd. 2. new text end

new text begin Loan criteria. new text end

new text begin (a) The farm opportunity loan program shall provide loans
for purchase of new or used equipment and installation of equipment for projects that
make environmental improvements and enhance farm profitability. The loan program
shall also be used to add value to crops or livestock produced in Minnesota by, but not
limited to, initiating or expanding livestock product processing; purchasing equipment to
initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers'
processing and aggregating capacity facilitating entry into farm-to-institution and other
markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or
other operating expenses.
new text end

new text begin (b) The authority may impose a reasonable, nonrefundable application fee for a farm
opportunity loan. The authority may review the fee annually and make adjustments as
necessary. The initial application fee is $50. Application fees received by the authority
must be deposited in the Rural Finance Authority administrative account established
in section 41B.03.
new text end

new text begin (c) Loans may only be made to Minnesota residents engaged in farming. Standards
for loan amortization must be set by the Rural Finance Authority and must not exceed
ten years.
new text end

new text begin (d) The borrower must show the ability to repay the loan.
new text end

new text begin (e) Refinancing of existing debt is not an eligible expense.
new text end

new text begin (f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.
new text end

new text begin Subd. 3. new text end

new text begin Loan participation. new text end

new text begin The authority may participate in a farm opportunity
loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a
group of farmers on joint projects who are eligible under subdivision 2, paragraph (c),
and who are actively engaged in farming. Participation is limited to 45 percent of the
principal amount of the loan or $45,000 per individual, whichever is less. For loans to a
group made up of four or more individuals, participation is limited to 45 percent of the
principal amount of the loan or $180,000, whichever is less. The interest rate on the
loans must not exceed six percent.
new text end

Sec. 58.

Minnesota Statutes 2014, section 41B.06, is amended to read:

41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

There is established in the rural finance administration fund a Rural Finance
Authority revolving loan account that is eligible to receive appropriations and the transfer
of loan funds from other programs. All repayments of financial assistance granted from
this account, including principal and interest, must be deposited into this account. Interest
earned on money in the account accrues to the account, and the money in the account is
appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority
livestock equipment, methane digester, disaster recovery, value-added agricultural
product, agroforestry, deleted text begin and deleted text end agricultural microloan new text begin , and farm opportunity new text end loan programs,
including costs incurred by the authority to establish and administer the programs.

Sec. 59.

Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:

Subd. 4.

Reports.

(a) The chief executive officer of every pension or investment
fund, corporation, limited partnership, limited liability company, or entity that is seeking
to qualify for an exemption from the commissioner, and the trustee of a family farm trust
that holds any interest in agricultural land or land used for the breeding, feeding, pasturing,
growing, or raising of livestock, dairy or poultry, or products thereof, or land used for
the production of agricultural crops or fruit or other horticultural products, other than a
bona fide encumbrance taken for purposes of security, or which is engaged in farming
or proposing to commence farming in this state after May 20, 1973, shall file with the
commissioner a report containing the following information and documents:

(1) the name of the pension or investment fund, corporation, limited partnership, or
limited liability company and its place of incorporation, certification, or registration;

(2) the address of the pension or investment plan headquarters or of the registered
office of the corporation in this state, the name and address of its registered agent in this state
and, in the case of a foreign corporation, limited partnership, or limited liability company,
the address of its principal office in its place of incorporation, certification, or registration;

(3) the acreage and location listed by quarter-quarter section, township, and county
of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry
in this state owned or leased by the pension or investment fund, limited partnership,
corporation, or limited liability company;

(4) the names and addresses of the officers, administrators, directors, or trustees of
the pension or investment fund, or of the officers, shareholders owning more than ten
percent of the stock, including the percent of stock owned by each such shareholder, the
members of the board of directors of the corporation, and the members of the limited
liability company, and the general and limited partners and the percentage of interest in
the partnership by each partner;

(5) the farm products which the pension or investment fund, limited partnership,
corporation, or limited liability company produces or intends to produce on its agricultural
land;

(6) with the first report, a copy of the title to the property where the farming operations
are or will occur indicating the particular exception claimed under subdivision 3; and

(7) with the first or second report, a copy of the conservation plan proposed by the
soil and water conservation district, and with subsequent reports a statement of whether
the conservation plan was implemented.

The report of a corporation, trust, limited liability company, or partnership seeking
to qualify hereunder as a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm partnership, an authorized farm
partnership, a family farm limited liability company, an authorized farm limited liability
company, or a family farm trust or under an exemption from the commissioner shall
contain the following additional information: the number of shares, partnership interests,
or governance and financial rights owned by persons or current beneficiaries of a family
farm trust residing on the farm or actively engaged in farming, or their relatives within
the third degree of kindred according to the rules of the civil law or their spouses; the
name, address, and number of shares owned by each shareholder, partnership interests
owned by each partner or governance and financial rights owned by each member, and a
statement as to percentage of gross receipts of the corporation derived from rent, royalties,
dividends, interest, and annuities. No pension or investment fund, limited partnership,
corporation, or limited liability company shall commence farming in this state until the
commissioner has inspected the report and certified that its proposed operations comply
with the provisions of this section.

(b) Every pension or investment fund, limited partnership, trust, corporation, or
limited liability company as described in paragraph (a) shall, prior to April 15 of each
year, file with the commissioner a report containing the information required in paragraph
(a), based on its operations in the preceding calendar year and its status at the end of the
year. A pension or investment fund, limited partnership, corporation, or limited liability
company that does not file the report by April 15 must pay a $500 civil penalty. The
penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.

(c) The commissioner may, for good cause shown, issue a written waiver or
reduction of the civil penalty for failure to make a timely filing of the annual report
required by this subdivision. The waiver or reduction is final and conclusive with respect
to the civil penalty, and may not be reopened or modified by an officer, employee, or
agent of the state, except upon a showing of fraud or malfeasance or misrepresentation
of a material fact. The report required under paragraph (b) must be completed prior to a
reduction or waiver under this paragraph. The commissioner may enter into an agreement
under this paragraph only once for each corporation or partnership.

new text begin (d) All reports required by paragraph (a) shall include a filing fee of $15. The fee
must be deposited in the state treasury and credited to an account in the special revenue
fund. Money in the account, including interest, is appropriated to the commissioner for
the administrative expenses of this section.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Failure to file a required report or the willful filing of false information is a
gross misdemeanor.

Sec. 60. new text begin BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
new text end

new text begin The balances in the accounts created under sections 41B.03, subdivision 6; 41B.04,
subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision 4, are transferred to
the Rural Finance Authority administrative account established under section 41B.03,
subdivision 7, and the original accounts are abolished.
new text end

new text begin The balance in the account created under section 17.115 is transferred to the Rural
Finance Authority revolving loan account established under section 41B.06, and the
original account is abolished.
new text end

Sec. 61. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 17.115; 28A.08, subdivision 3; and 41A.12,
subdivision 4, new text end new text begin are repealed.
new text end