1.1 	A bill for an act
1.2 	relating to agriculture; establishing a budget for agriculture; appropriating money 
1.3 	for agriculture, animal health, and agricultural utilization research; making 
1.4 	policy and technical changes to various agricultural related provisions, including 
1.5 	provisions related to pesticide control, plant protection, nursery law, seeds, dairy, 
1.6 	food handlers, food, farmland, farming, and loans; modifying license exclusions 
1.7 	for the direct sale of certain prepared food; establishing the Agriculture Research, 
1.8 	Education, Extension, and Technology Transfer Board; providing incentive 
1.9 	payments; requiring studies; requiring reports; providing a vocational training 
1.10 	pilot program; establishing the farm opportunity loan program; modifying fees 
1.11 	and surcharges; creating accounts; amending Minnesota Statutes 2014, sections 
1.12 	13.643, subdivision 1; 18B.01, subdivisions 28, 29; 18B.05, subdivision 1; 
1.13 	18B.32, subdivision 1; 18B.33, subdivision 1; 18B.34, subdivision 1; 18C.425, 
1.14 	subdivision 6; 18C.70, subdivision 2; 18G.10, subdivisions 3, 4, 5; 18H.02, 
1.15 	subdivision 20, by adding subdivisions; 18H.06, subdivision 2; 18H.07; 
1.16 	18H.17; 21.89, subdivision 2; 21.891, subdivisions 2, 5; 25.341, subdivision 2; 
1.17 	25.39, subdivisions 1, 1a; 28A.03, by adding a subdivision; 32.075; 32.105; 
1.18 	41B.03, subdivision 6, by adding a subdivision; 41B.04, subdivision 17; 
1.19 	41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046, subdivision 5; 
1.20 	41B.047, subdivisions 1, 4; 41B.048, subdivision 6; 41B.049, subdivision 4; 
1.21 	41B.055, subdivision 3; 41B.056, subdivision 2; 41B.06; 135A.52, by adding a 
1.22 	subdivision; 500.24, subdivision 4; Laws 2014, chapter 312, article 12, section 3; 
1.23 	proposing coding for new law in Minnesota Statutes, chapters 18C; 28A; 41A; 
1.24 	41B; repealing Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 
1.25 	9, 10; 116V.03.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	AGRICULTURE APPROPRIATIONS

1.29	Section 1. AGRICULTURE APPROPRIATIONS
 	
1.30 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.31 	agencies and for the purposes specified in this article. The appropriations are from the 
1.32 	general fund, or another named fund, and are available for the fiscal years indicated 
2.1 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.2 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.3 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.4 	year 2017. "The biennium" is fiscal years 2016 and 2017.

2.5				APPROPRIATIONS
	
2.6				Available for the Year
	
2.7				Ending June 30
	
2.8					2016
		2017

2.9	Sec. 2. DEPARTMENT OF AGRICULTURE

2.10	Subdivision 1.Total Appropriation
 	$ 
	36,756,000
	$ 
	37,724,000

2.11	Appropriations by Fund
	
2.12		2016
	2017
	
2.13	General 
	36,178,000 
	37,146,000
	
2.14	Remediation
	388,000
	388,000
	
2.15	Agricultural
	190,000
	190,000
	
2.16 	The amounts that may be spent for each 
2.17 	purpose are specified in the following 
2.18 	subdivisions.

2.19	Subd. 2.Protection Services 
 		16,377,000 
		16,402,000

2.20	Appropriations by Fund
	
2.21		2016
	2017
	
2.22	General 
	15,799,000 
	15,824,000
	
2.23	Agricultural
	190,000
	190,000
	
2.24	Remediation
	388,000
	388,000
	
2.25 	$25,000 the first year and $25,000 the second 
2.26 	year are to develop and maintain cottage 
2.27 	food license exemption outreach and training 
2.28 	materials.
2.29 	$75,000 the second year is for a coordinator 
2.30 	for the correctional facility vocational 
2.31 	training pilot program.
2.32 	$388,000 the first year and $388,000 the 
2.33 	second year are from the remediation fund 
2.34 	for administrative funding for the voluntary 
2.35 	cleanup program.
3.1 	$225,000 the first year and $175,000 
3.2 	the second year are for compensation 
3.3 	for destroyed or crippled animals under 
3.4 	Minnesota Statutes, section 3.737. The first 
3.5 	year appropriation is for claims submitted 
3.6 	during fiscal year 2016 and for all claims 
3.7 	submitted during fiscal year 2014 or 2015 
3.8 	that were not paid by the commissioner due 
3.9 	to a shortage of funding. If the amount in the 
3.10 	first year is insufficient, the amount in the 
3.11 	second year is available in the first year.
3.12 	$125,000 the first year and $125,000 the 
3.13 	second year are for compensation for crop 
3.14 	damage under Minnesota Statutes, section 
3.15 	3.7371. If the amount in the first year is 
3.16 	insufficient, the amount in the second year is 
3.17 	available in the first year. 
3.18 	If the commissioner determines that claims 
3.19 	made under Minnesota Statutes, section 
3.20 	3.737 or 3.7371, are unusually high, amounts 
3.21 	appropriated for either program may be 
3.22 	transferred to the appropriation for the other 
3.23 	program.
3.24 	$70,000 the first year and $70,000 the second 
3.25 	year are for additional cannery inspections.
3.26 	$100,000 the first year and $100,000 the 
3.27 	second year are for increased oversight of 
3.28 	delegated local health boards.
3.29 	$100,000 the first year and $100,000 the 
3.30 	second year are to decrease the turnaround 
3.31 	time for retail food handler plan reviews.
3.32 	$1,024,000 the first year and $1,024,000 the 
3.33 	second year are to streamline the retail food 
3.34 	safety regulatory and licensing experience 
4.1 	for regulated businesses and to decrease the 
4.2 	inspection delinquency rate.
4.3 	$1,350,000 the first year and $1,350,000 the 
4.4 	second year are for additional inspections of 
4.5 	food manufacturers and wholesalers.
4.6 	$150,000 the first year and $150,000 the 
4.7 	second year are for additional funding for 
4.8 	dairy inspection services.
4.9 	$150,000 the first year and $150,000 the 
4.10 	second year are for additional funding for 
4.11 	laboratory services operations.
4.12 	$250,000 the first year and $250,000 
4.13 	the second year are for additional meat 
4.14 	inspection services, including inspections 
4.15 	provided under the correctional facility 
4.16 	vocational training pilot program.
4.17 	Notwithstanding Minnesota Statutes, section 
4.18 	18B.05, $90,000 the first year and $90,000 
4.19 	the second year are from the pesticide 
4.20 	regulatory account in the agricultural fund 
4.21 	for an increase in the operating budget for 
4.22 	the Laboratory Services Division.
4.23 	$100,000 the first year and $100,000 the 
4.24 	second year are from the pesticide regulatory 
4.25 	account in the agricultural fund to update 
4.26 	and modify applicator education and training 
4.27 	materials.

4.28
4.29	Subd. 3.Agricultural Marketing and 
Development
 		3,873,000
		3,873,000
	
4.30 	The commissioner must provide one-stop 
4.31 	access for farmers in need of information or 
4.32 	assistance to obtain or renew licenses, meet 
4.33 	state regulatory requirements, or resolve 
4.34 	disputes with state agencies.
5.1 	The commissioner must provide outreach 
5.2 	to urban farmers regarding the department's 
5.3 	financial and technical assistance programs 
5.4 	and must assist urban farmers in applying for 
5.5 	assistance.
5.6 	$186,000 the first year and $186,000 the 
5.7 	second year are for transfer to the Minnesota 
5.8 	grown account and may be used as grants 
5.9 	for Minnesota grown promotion under 
5.10 	Minnesota Statutes, section 17.102. Grants 
5.11 	may be made for one year. Notwithstanding 
5.12 	Minnesota Statutes, section 16A.28, the 
5.13 	appropriations encumbered under contract 
5.14 	on or before June 30, 2017, for Minnesota 
5.15 	grown grants in this paragraph are available 
5.16 	until June 30, 2019.
5.17 	$634,000 the first year and $634,000 the 
5.18 	second year are for continuation of the dairy 
5.19 	development and profitability enhancement 
5.20 	and dairy business planning grant programs 
5.21 	established under Laws 1997, chapter 
5.22 	216, section 7, subdivision 2, and Laws 
5.23 	2001, First Special Session chapter 2, 
5.24 	section 9, subdivision 2. The commissioner 
5.25 	may allocate the available sums among 
5.26 	permissible activities, including efforts to 
5.27 	improve the quality of milk produced in the 
5.28 	state, in the proportions that the commissioner 
5.29 	deems most beneficial to Minnesota's dairy 
5.30 	farmers. The commissioner must submit 
5.31 	a detailed accomplishment report and 
5.32 	a work plan detailing future plans for, 
5.33 	and anticipated accomplishments from, 
5.34 	expenditures under this program to the 
5.35 	chairs and ranking minority members of the 
5.36 	legislative committees with jurisdiction over 
6.1 	agriculture policy and finance on or before 
6.2 	the start of each fiscal year. If significant 
6.3 	changes are made to the plans in the course 
6.4 	of the year, the commissioner must notify the 
6.5 	chairs and ranking minority members.
6.6 	The commissioner may use funds 
6.7 	appropriated in this subdivision for annual 
6.8 	cost-share payments to resident farmers 
6.9 	or entities that sell, process, or package 
6.10 	agricultural products in this state for the costs 
6.11 	of organic certification. The commissioner 
6.12 	may allocate these funds for assistance for 
6.13 	persons transitioning from conventional to 
6.14 	organic agriculture.

6.15
6.16	Subd. 4.Agriculture, Bioenergy, and 
Bioproduct Advancement 
 		10,880,000 
		11,823,000
	
6.17 	$3,550,000 the first year and $4,100,000 the 
6.18 	second year are for transfer to the agriculture 
6.19 	research, education, extension, and 
6.20 	technology transfer fund under Minnesota 
6.21 	Statutes, section 41A.14, subdivision 3. 
6.22 	The commissioner may use a portion of 
6.23 	the appropriation each year only for direct 
6.24 	expenses incurred by the commissioner to 
6.25 	provide administrative services and to act 
6.26 	as the fiscal agent for the board as required 
6.27 	under Minnesota Statutes, section 41A.14, 
6.28 	subdivision 1, paragraph (c). 
6.29 	To the extent practicable, funds expended 
6.30 	under Minnesota Statutes, section 41A.14, 
6.31 	subdivision 2, clauses (1) and (2), must 
6.32 	supplement and not supplant existing sources 
6.33 	and levels of funding. The board may award 
6.34 	grants to the University of Minnesota to 
6.35 	support the Forever Green Initiative.
7.1 	$550,000 is appropriated in fiscal year 2015 
7.2 	to the commissioner of agriculture for the 
7.3 	costs of avian influenza emergency response 
7.4 	activities not covered by federal funding. 
7.5 	The appropriation under this paragraph is 
7.6 	available the day following final enactment. 
7.7 	This is a onetime appropriation and is 
7.8 	available until June 30, 2016.
7.9 	$500,000 in fiscal year 2016 and $1,500,000 
7.10 	in fiscal year 2017 are for incentive payments 
7.11 	under Minnesota Statutes, sections 41A.16, 
7.12 	41A.17, and 41A.18. If the appropriation 
7.13 	exceeds the total amount for which all 
7.14 	producers are eligible in a fiscal year, the 
7.15 	balance of the appropriation is available 
7.16 	to the commissioner for the agricultural 
7.17 	growth, research, and innovation program 
7.18 	under Minnesota Statutes, section 41A.12. 
7.19 	These appropriations do not cancel and are 
7.20 	available until spent. The commissioner may 
7.21 	use up to 4.5 percent of the appropriation 
7.22 	for administration of the incentive payment 
7.23 	programs.
7.24 	$6,280,000 the first year and $6,223,000 
7.25 	the second year are for the agricultural 
7.26 	growth, research, and innovation program 
7.27 	in Minnesota Statutes, section 41A.12. No 
7.28 	later than February 1, 2016, and February 
7.29 	1, 2017, the commissioner must report to 
7.30 	the legislative committees with jurisdiction 
7.31 	over agriculture policy and finance regarding 
7.32 	the commissioner's accomplishments 
7.33 	and anticipated accomplishments in 
7.34 	the following areas: facilitating the 
7.35 	start-up, modernization, or expansion of 
7.36 	livestock operations including beginning 
8.1 	and transitioning livestock operations; 
8.2 	developing new markets for Minnesota 
8.3 	farmers by providing more fruits, vegetables, 
8.4 	meat, grain, and dairy for Minnesota school 
8.5 	children; assisting value-added agricultural 
8.6 	businesses to begin or expand, access new 
8.7 	markets, or diversify products; facilitating 
8.8 	the start-up, modernization, or expansion 
8.9 	of other beginning and transitioning 
8.10 	farms; sustainable agriculture on farm 
8.11 	research and demonstration; development or 
8.12 	expansion of food hubs and other alternative 
8.13 	community-based food distribution systems; 
8.14 	and research on bioenergy, biobased content, 
8.15 	or biobased formulated products and other 
8.16 	renewable energy development. The 
8.17 	commissioner may use up to 4.5 percent 
8.18 	of this appropriation for costs incurred to 
8.19 	administer the program. Any unencumbered 
8.20 	balance does not cancel at the end of the first 
8.21 	year and is available for the second year. 
8.22 	Notwithstanding Minnesota Statutes, section 
8.23 	16A.28, the appropriations encumbered 
8.24 	under contract on or before June 30, 2017, for 
8.25 	agricultural growth, research, and innovation 
8.26 	grants are available until June 30, 2019.
8.27 	The commissioner may use funds 
8.28 	appropriated for the agricultural growth, 
8.29 	research, and innovation program as provided 
8.30 	in this paragraph. The commissioner may 
8.31 	award grants to owners of Minnesota 
8.32 	facilities producing bioenergy, biobased 
8.33 	content, or a biobased formulated product; 
8.34 	to organizations that provide for on-station, 
8.35 	on-farm field scale research and outreach to 
8.36 	develop and test the agronomic and economic 
9.1 	requirements of diverse strands of prairie 
9.2 	plants and other perennials for bioenergy 
9.3 	systems; or to certain nongovernmental 
9.4 	entities. For the purposes of this paragraph, 
9.5 	"bioenergy" includes transportation fuels 
9.6 	derived from cellulosic material, as well as 
9.7 	the generation of energy for commercial heat, 
9.8 	industrial process heat, or electrical power 
9.9 	from cellulosic materials via gasification or 
9.10 	other processes. Grants are limited to 50 
9.11 	percent of the cost of research, technical 
9.12 	assistance, or equipment related to bioenergy, 
9.13 	biobased content, or biobased formulated 
9.14 	product production or $500,000, whichever 
9.15 	is less. Grants to nongovernmental entities 
9.16 	for the development of business plans and 
9.17 	structures related to community ownership 
9.18 	of eligible bioenergy facilities together may 
9.19 	not exceed $150,000. The commissioner 
9.20 	shall make a good-faith effort to select 
9.21 	projects that have merit and, when taken 
9.22 	together, represent a variety of bioenergy 
9.23 	technologies, biomass feedstocks, and 
9.24 	geographic regions of the state. Projects 
9.25 	must have a qualified engineer provide 
9.26 	certification on the technology and fuel 
9.27 	source. Grantees must provide reports at the 
9.28 	request of the commissioner.
9.29 	Of the amount appropriated for the 
9.30 	agricultural growth, research, and innovation 
9.31 	program in this subdivision, $1,000,000 the 
9.32 	first year and $1,000,000 the second year 
9.33 	are for distribution in equal amounts to each 
9.34 	of the state's county fairs to preserve and 
9.35 	promote Minnesota agriculture.
10.1 	Of the amount appropriated for the 
10.2 	agricultural growth, research, and innovation 
10.3 	program in this subdivision, $250,000 the 
10.4 	first year and $250,000 the second year 
10.5 	are for grants that enable retail petroleum 
10.6 	dispensers to dispense biofuels to the public 
10.7 	in accordance with the biofuel replacement 
10.8 	goals established under Minnesota Statutes, 
10.9 	section 239.7911. A retail petroleum 
10.10 	dispenser selling petroleum for use in spark 
10.11 	ignition engines for vehicle model years after 
10.12 	2000 is eligible for grant money under this 
10.13 	paragraph if the retail petroleum dispenser 
10.14 	has no more than 15 retail petroleum 
10.15 	dispensing sites and each site is located 
10.16 	in Minnesota. The grant money received 
10.17 	under this paragraph must be used for the 
10.18 	installation of appropriate technology that 
10.19 	uses fuel dispensing equipment appropriate 
10.20 	for at least one fuel dispensing site to 
10.21 	dispense gasoline that is blended with 15 
10.22 	percent of agriculturally derived, denatured 
10.23 	ethanol, by volume, and appropriate technical 
10.24 	assistance related to the installation. A grant 
10.25 	award must not exceed 85 percent of the cost 
10.26 	of the technical assistance and appropriate 
10.27 	technology, including remetering of and 
10.28 	retrofits for retail petroleum dispensers and 
10.29 	replacement of petroleum dispenser projects. 
10.30 	The commissioner may use up to $35,000 
10.31 	of this appropriation for administrative 
10.32 	expenses. The commissioner shall cooperate 
10.33 	with the Minnesota Biofuels Association in 
10.34 	the implementation of the grant program. The 
10.35 	commissioner must report to the legislative 
10.36 	committees with jurisdiction over agriculture 
11.1 	policy and finance by February 1 each year, 
11.2 	detailing the number of grants awarded under 
11.3 	this paragraph and the projected effect of 
11.4 	the grant program on meeting the biofuel 
11.5 	replacement goals under Minnesota Statutes, 
11.6 	section 239.7911.
11.7 	Of the amount appropriated for the 
11.8 	agricultural growth, research, and innovation 
11.9 	program in this subdivision, $25,000 the first 
11.10 	year is for the livestock industry study.
11.11 	Of the amount appropriated for the 
11.12 	agricultural growth, research, and innovation 
11.13 	program in this subdivision, $50,000 the first 
11.14 	year is for the imported bait fish feasibility 
11.15 	study.
11.16 	Of the amount appropriated for the 
11.17 	agricultural growth, research, and innovation 
11.18 	program in this subdivision, $25,000 the first 
11.19 	year and $25,000 the second year are for 
11.20 	grants to the Southern Minnesota Initiative 
11.21 	Foundation to promote local foods through an 
11.22 	annual event that raises public awareness of 
11.23 	local foods and connects local food producers 
11.24 	and processors with potential buyers.

11.25
11.26	Subd. 5.Administration and Financial 
Assistance
 		5,626,000
		5,626,000
	
11.27 	$75,000 the first year and $75,000 the second 
11.28 	year are for grants to the Center for Rural 
11.29 	Policy and Development.
11.30 	The base for the farm-to-foodshelf program 
11.31 	in fiscal years 2018 and 2019 is $1,100,000 
11.32 	each year.
11.33 	$47,000 the first year and $47,000 the second 
11.34 	year are for the Northern Crops Institute. 
12.1 	These appropriations may be spent to 
12.2 	purchase equipment.
12.3 	$18,000 the first year and $18,000 the 
12.4 	second year are for grants to the Minnesota 
12.5 	Livestock Breeders Association.
12.6 	$235,000 the first year and $235,000 the 
12.7 	second year are for grants to the Minnesota 
12.8 	Agricultural Education and Leadership 
12.9 	Council for programs of the council under 
12.10 	Minnesota Statutes, chapter 41D.
12.11 	$474,000 the first year and $474,000 the 
12.12 	second year are for payments to county and 
12.13 	district agricultural societies and associations 
12.14 	under Minnesota Statutes, section 38.02, 
12.15 	subdivision 1. Aid payments to county and 
12.16 	district agricultural societies and associations 
12.17 	shall be disbursed no later than July 15 of 
12.18 	each year. These payments are the amount of 
12.19 	aid from the state for an annual fair held in 
12.20 	the previous calendar year.
12.21 	$1,000 the first year and $1,000 the second 
12.22 	year are for grants to the Minnesota State 
12.23 	Poultry Association.
12.24 	$108,000 the first year and $108,000 the 
12.25 	second year are for annual grants to the 
12.26 	Minnesota Turf Seed Council for basic 
12.27 	and applied research on: (1) the improved 
12.28 	production of forage and turf seed related to 
12.29 	new and improved varieties; and (2) native 
12.30 	plants, including plant breeding, nutrient 
12.31 	management, pest management, disease 
12.32 	management, yield, and viability. The grant 
12.33 	recipient may subcontract with a qualified 
12.34 	third party for some or all of the basic or 
12.35 	applied research.
13.1 	$550,000 the first year and $550,000 the 
13.2 	second year are for grants to Second Harvest 
13.3 	Heartland on behalf of Minnesota's six 
13.4 	Second Harvest food banks for the purchase 
13.5 	of milk for distribution to Minnesota's food 
13.6 	shelves and other charitable organizations 
13.7 	that are eligible to receive food from the food 
13.8 	banks. Milk purchased under the grants must 
13.9 	be acquired from Minnesota milk processors 
13.10 	and based on low-cost bids. The milk must be 
13.11 	allocated to each Second Harvest food bank 
13.12 	serving Minnesota according to the formula 
13.13 	used in the distribution of United States 
13.14 	Department of Agriculture commodities 
13.15 	under The Emergency Food Assistance 
13.16 	Program (TEFAP). Second Harvest 
13.17 	Heartland must submit quarterly reports 
13.18 	to the commissioner on forms prescribed 
13.19 	by the commissioner. The reports must 
13.20 	include, but are not limited to, information 
13.21 	on the expenditure of funds, the amount 
13.22 	of milk purchased, and the organizations 
13.23 	to which the milk was distributed. Second 
13.24 	Harvest Heartland may enter into contracts 
13.25 	or agreements with food banks for shared 
13.26 	funding or reimbursement of the direct 
13.27 	purchase of milk. Each food bank receiving 
13.28 	money from this appropriation may use up to 
13.29 	two percent of the grant for administrative 
13.30 	expenses.
13.31 	$113,000 the first year and $113,000 the 
13.32 	second year are for transfer to the Board of 
13.33 	Trustees of the Minnesota State Colleges 
13.34 	and Universities for statewide mental health 
13.35 	counseling support to farm families and 
14.1 	business operators. South Central College 
14.2 	shall serve as the fiscal agent.
14.3 	$17,000 the first year and $17,000 the 
14.4 	second year are for grants to the Minnesota 
14.5 	Horticultural Society.

14.6	Sec. 3. BOARD OF ANIMAL HEALTH
 	$ 
	5,918,000
	$ 
	5,984,000
	
14.7 	$600,000 the first year and $600,000 the 
14.8 	second year are for rapid response to poultry 
14.9 	and livestock disease, including but not 
14.10 	limited to H5N2 avian flu.

14.11
14.12	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	2,643,000
	$
	2,643,000

14.13
14.14	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
 	$
	300,000
	$
	300,000
	
14.15 	$300,000 the first year and $300,000 the 
14.16 	second year are for the Invasive Terrestrial 
14.17 	Plants and Pests Center for rapid response to 
14.18 	plant diseases and pests.

14.19 	ARTICLE 2
14.20 	AGRICULTURE POLICY

14.21 	Section 1. Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
14.22 		Subdivision 1.Department of Agriculture data. (a) Loan and grant applicant 
14.23 	data. The following data on applicants, collected by the Department of Agriculture in its 
14.24 	sustainable agriculture revolving loan and grant programsprogram under sections 17.115 
14.25 	and section17.116, are private or nonpublic: nonfarm income; credit history; insurance 
14.26 	coverage; machinery and equipment list; financial information; and credit information 
14.27 	requests.
14.28 	(b) Farm advocate data. The following data supplied by farmer clients to 
14.29 	Minnesota farm advocates and to the Department of Agriculture are private data on 
14.30 	individuals: financial history, including listings of assets and debts, and personal and 
14.31 	emotional status information.

15.1 	Sec. 2. Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
15.2 		Subd. 28.Structural pest. "Structural pest" means a an invertebrate pest, other 
15.3 	than a plant, or commensal rodent in, on, under, or near a structure such as a residential 
15.4 	or commercial building.

15.5 	Sec. 3. Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
15.6 		Subd. 29.Structural pest control. "Structural pest control" means the control of 
15.7 	any structural pest through the use of a device, a procedure, or application of pesticides or 
15.8 	through other means in or around a building or other structures, including trucks, boxcars, 
15.9 	ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a 
15.10 	device, a procedure, or application of a pesticide.

15.11 	Sec. 4. Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:
15.12 		Subdivision 1.Establishment. A pesticide regulatory account is established in the 
15.13 	agricultural fund. Fees, assessments, and penalties collected under this chapter must 
15.14 	be deposited in the agricultural fund and credited to the pesticide regulatory account. 
15.15 	Money in the account, including interest, is appropriated to the commissioner for the 
15.16 	administration and enforcement of this chapter and up to $20,000 per fiscal year may also 
15.17 	be used by the commissioner for purposes of section 18H.14, paragraph (e).

15.18 	Sec. 5. Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
15.19 		Subdivision 1.Requirement. (a) A person may not engage in structural pest 
15.20 	control applications:
15.21 	(1) for hire without a structural pest control license; and
15.22 	(2) as a sole proprietorship, company, partnership, or corporation unless the person 
15.23 	is or employs a licensed master in structural pest control operations.
15.24 	(b) A structural pest control licensee must have a valid license identification card 
15.25 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
15.26 	display it upon demand by an authorized representative of the commissioner or a law 
15.27 	enforcement officer. The license identification card must contain information required by 
15.28 	the commissioner.
15.29 	(c) Notwithstanding the licensing requirements of this subdivision, a person may 
15.30 	control the following nuisance or economically damaging wild animals, by trapping, 
15.31 	without a structural pest control license:
15.32 	(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license 
15.33 	or special permit from the commissioner of natural resources; and
16.1 	(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

16.2 	Sec. 6. Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
16.3 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
16.4 	without a commercial applicator license for the appropriate use categories or a structural 
16.5 	pest control license.
16.6 	(b) A commercial applicator licensee must have a valid license identification card 
16.7 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
16.8 	display it upon demand by an authorized representative of the commissioner or a law 
16.9 	enforcement officer. The commissioner shall prescribe the information required on the 
16.10 	license identification card.

16.11 	Sec. 7. Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
16.12 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
16.13 	certified private applicator, or licensed structural pest control applicator, a person, 
16.14 	including a government employee, may not purchase or use a restricted use pesticide in 
16.15 	performance of official duties without having a noncommercial applicator license for an 
16.16 	appropriate use category.
16.17 	(b) A licensee must have a valid license identification card when applying pesticides 
16.18 	and must display it upon demand by an authorized representative of the commissioner 
16.19 	or a law enforcement officer. The license identification card must contain information 
16.20 	required by the commissioner.

16.21 	Sec. 8. Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:
16.22 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in 
16.23 	the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411
16.24 	shall pay the inspection fee to the commissioner.
16.25 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
16.26 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
16.27 	exempted under section 18C.421, subdivision 1, paragraph (b).
16.28 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
16.29 	amendments, or plant amendments sold and used in this state must pay an inspection fee 
16.30 	of 30 39 cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer, 
16.31 	soil amendment, and plant amendment sold or distributed in this state, with a minimum 
16.32 	of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner 
16.33 	must deposit all revenue from the additional 40 cent per ton fee in the agricultural 
17.1 	fertilizer research and education account in section 18C.80. Products sold or distributed to 
17.2 	manufacturers or exchanged between them are exempt from the inspection fee imposed by 
17.3 	this subdivision if the products are used exclusively for manufacturing purposes.
17.4 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
17.5 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
17.6 	of three years.

17.7 	Sec. 9. Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:
17.8 		Subd. 2.Powers and duties. The council must review applications and select 
17.9 	projects to receive agricultural fertilizer research and education program grants, as 
17.10 	authorized in section 18C.71. The council must establish a program to provide grants to 
17.11 	research, education, and technology transfer projects related to agricultural fertilizer, soil 
17.12 	amendments, and plant amendments. For the purpose of this section, "fertilizer" includes 
17.13 	soil amendments and plant amendments, but does not include vegetable or animal manures 
17.14 	that are not manipulated. The commissioner is responsible for all fiscal and administrative 
17.15 	duties in the first year and may use up to eight percent of program revenue to offset costs 
17.16 	incurred. No later than October 1, 2007, the commissioner must provide the council with 
17.17 	an estimate of the annual costs the commissioner would incur in administering the program.

17.18 	Sec. 10. [18C.80] AGRICULTURAL FERTILIZER RESEARCH AND 
17.19 	EDUCATION ACCOUNT.
17.20 		Subdivision 1.Account; appropriation. An agricultural fertilizer research 
17.21 	and education account is established in the agricultural fund. Money in the account, 
17.22 	including interest earned, is appropriated to the commissioner for grants determined by the 
17.23 	Minnesota Agricultural Fertilizer Research and Education Council under section 18C.71. 
17.24 	The commissioner may use up to $80,000 each fiscal year for direct costs incurred to 
17.25 	provide fiscal and administrative support to the council as required under section 18C.70, 
17.26 	subdivision 2. The commissioner may also recover associated indirect costs from the 
17.27 	account as required under section 16A.127.
17.28 		Subd. 2.Expiration. This section expires June 30, 2020.

17.29 	Sec. 11. Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
17.30 		Subd. 3.Cooperative agreements. The commissioner may enter into cooperative 
17.31 	agreements with federal and state agencies for administration of the export certification 
17.32 	program. An exporter of plants or plant products desiring to originate shipments from 
18.1 	Minnesota to a foreign country requiring a phytosanitary certificate or export certificate 
18.2 	must submit an application to the commissioner.

18.3 	Sec. 12. Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
18.4 		Subd. 4.Phytosanitary and export certificates. An exporter of plants or plant 
18.5 	products desiring to originate shipments from Minnesota to a foreign country requiring 
18.6 	a phytosanitary certificate or export certificate must submit an application to the 
18.7 	commissioner. Application for phytosanitary certificates or export certificates must be 
18.8 	made on forms provided or approved by the commissioner. The commissioner shall may 
18.9 	conduct inspections of plants, plant products, or facilities for persons that have applied for 
18.10 	or intend to apply for a phytosanitary certificate or export certificate from the commissioner. 
18.11 	Inspections must include one or more of the following as requested or required:
18.12 	(1) an inspection of the plants or plant products intended for export under a 
18.13 	phytosanitary certificate or export certificate;
18.14 	(2) field inspections of growing plants to determine presence or absence of plant 
18.15 	diseases, if necessary;
18.16 	(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
18.17 	(4) observation and evaluation of procedures and facilities utilized in handling 
18.18 	plants and plant products, if necessary; and
18.19 	(5) review of United States Department of Agriculture, Federal Grain Inspection 
18.20 	Service Official Export Grain Inspection Certificate logs.
18.21 	The commissioner may issue a phytosanitary certificate or export certificate if the 
18.22 	plants or plant products satisfactorily meet the requirements of the importing foreign 
18.23 	country and the United States Department of Agriculture requirements. The requirements 
18.24 	of the destination countries must be met by the applicant.

18.25 	Sec. 13. Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:
18.26 		Subd. 5.Certificate fees. (a) The commissioner shall assess the fees in paragraphs 
18.27 	(b) to (f) fees sufficient to recover all costs for the inspection, service, and work performed 
18.28 	in carrying out the issuance of a phytosanitary certificate or export certificate. The 
18.29 	inspection fee must be based on mileage and inspection time.
18.30 	(b) Mileage charge: current United States Internal Revenue Service mileage rate.
18.31 	(c) Inspection time: $50 per hour minimum or fee necessary to cover department 
18.32 	costs. Inspection time includes the driving time to and from the location in addition to 
18.33 	the time spent conducting the inspection.
19.1 	(d) (b) If laboratory analysis or other technical analysis is required to issue a 
19.2 	certificate, the commissioner must set and collect the fee to recover this additional cost.
19.3 	(e) (c) The certificate fee for product value greater than $250: is $75 or a fee amount, 
19.4 	not to exceed $300, that is sufficient to recover all processing costs for each phytosanitary 
19.5 	or export certificate issued for any single shipment valued at more than $250 in addition to 
19.6 	any mileage or inspection time charges that are assessed.
19.7 	(f) Certificate fee for product value less than $250: $25 for each phytosanitary or 
19.8 	export certificate issued for any single shipment valued at less than $250 in addition to 
19.9 	any mileage or inspection time charges that are assessed.
19.10 	(g) (d) For services provided for in subdivision 7 that are goods and services 
19.11 	provided for the direct and primary use of a private individual, business, or other entity, 
19.12 	the commissioner must set and collect the fees to cover the cost of the services provided.

19.13 	Sec. 14. Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
19.14 		Subd. 20.Nursery stock. "Nursery stock" means a plant intended for planting or 
19.15 	propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts, 
19.16 	cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all 
19.17 	viable parts of these plants. Nursery stock does not include:
19.18 	(1) field and forage crops or sod;
19.19 	(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;
19.20 	(3) vegetable plants, bulbs, or tubers;
19.21 	(4) cut flowers, unless stems or other portions are intended for propagation;
19.22 	(5) annuals; or
19.23 	(6) Christmas trees.

19.24 	Sec. 15. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
19.25 	to read:
19.26 		Subd. 32a.Sod. "Sod" means the upper portion of soil that contains the roots of 
19.27 	grasses and the living grass plants.

19.28 	Sec. 16. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
19.29 	to read:
19.30 		Subd. 35.Tropical plant. "Tropical plant" means a plant that has a United States 
19.31 	Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual 
19.32 	minimum hardiness temperature of -9 degrees Fahrenheit.

20.1 	Sec. 17. Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
20.2 		Subd. 2.Occasional sales. (a) An individual may offer nursery stock for sale and be 
20.3 	exempt from the requirement to obtain a nursery stock dealer certificate if:
20.4 	(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
20.5 	(2) all nursery stock sold or distributed by the individual is intended for planting 
20.6 	in Minnesota;
20.7 	(3) all nursery stock purchased or procured for resale or distribution was grown in 
20.8 	Minnesota and has been certified by the commissioner; and
20.9 	(4) the individual conducts sales or distributions of nursery stock on ten or fewer 
20.10 	days in a calendar year.
20.11 	(b) The commissioner may prescribe the conditions of the exempt nursery sales under 
20.12 	this subdivision and may conduct routine inspections of the nursery stock offered for sale.

20.13 	Sec. 18. Minnesota Statutes 2014, section 18H.07, is amended to read:
20.14 	18H.07 FEE SCHEDULE.
20.15 		Subdivision 1.Establishment of fees. The commissioner shall establish fees 
20.16 	sufficient to allow for the administration and enforcement of this chapter and rules adopted 
20.17 	under this chapter, including the portion of general support costs and statewide indirect 
20.18 	costs of the agency attributable to that function, with a reserve sufficient for up to six 
20.19 	months. The commissioner shall review the fee schedule annually in consultation with 
20.20 	the Minnesota Nursery and Landscape Advisory Committee. For the certificate year 
20.21 	beginning January 1, 2006, the fees are as described in this section.
20.22 		Subd. 2.Nursery stock grower certificate. (a) A nursery stock grower must 
20.23 	pay an annual fee based on the area of all acreage on which nursery stock is grown for 
20.24 	certification as follows:
20.25 	(1) less than one-half acre, $150;
20.26 	(2) from one-half acre to two acres, $200;
20.27 	(3) over two acres up to five acres, $300;
20.28 	(4) over five acres up to ten acres, $350;
20.29 	(5) over ten acres up to 20 acres, $500;
20.30 	(6) over 20 acres up to 40 acres, $650;
20.31 	(7) over 40 acres up to 50 acres, $800;
20.32 	(8) over 50 acres up to 200 acres, $1,100;
20.33 	(9) over 200 acres up to 500 acres, $1,500; and
20.34 	(10) over 500 acres, $1,500 plus $2 for each additional acre.
21.1 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due 
21.2 	must be charged for each month, or portion thereof, that the fee is delinquent up to a 
21.3 	maximum of 30 percent for any application for renewal not postmarked by December 31 
21.4 	of the current year.
21.5 	(c) A nursery stock grower found operating without a valid nursery stock grower 
21.6 	certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 
21.7 	commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 
21.8 	owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.
21.9 		Subd. 3.Nursery stock dealer certificate. (a) A nursery stock dealer must pay an 
21.10 	annual fee based on the dealer's gross sales of certified nursery stock per location during 
21.11 	the most recent certificate year. A certificate applicant operating for the first time must pay 
21.12 	the minimum fee. The fees per sales location are:
21.13 	(1) gross sales up to $5,000, $150;
21.14 	(2) gross sales over $5,000 up to $20,000, $175;
21.15 	(3) gross sales over $20,000 up to $50,000, $300;
21.16 	(4) gross sales over $50,000 up to $75,000, $425;
21.17 	(5) gross sales over $75,000 up to $100,000, $550;
21.18 	(6) gross sales over $100,000 up to $200,000, $675; and
21.19 	(7) gross sales over $200,000, $800.
21.20 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due 
21.21 	must be charged for each month, or portion thereof, that the fee is delinquent up to a 
21.22 	maximum of 30 percent for any application for renewal not postmarked by December 31 
21.23 	of the current year.
21.24 	(c) A nursery stock dealer found operating without a valid nursery stock dealer 
21.25 	certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 
21.26 	commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 
21.27 	owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.
21.28 		Subd. 4.Reinspection; additional or optional inspection fees. If a reinspection is 
21.29 	required or an additional inspection is needed or requested a fee must be assessed based 
21.30 	on mileage and inspection time as follows:
21.31 	(1) mileage must be charged at the current United States Internal Revenue Service 
21.32 	reimbursement rate; and
21.33 	(2) inspection time must be charged at the rate of $50 per hour a rate sufficient to 
21.34 	recover all inspection costs, including the driving time to and from the location in addition 
21.35 	to the time spent conducting the inspection.

22.1 	Sec. 19. Minnesota Statutes 2014, section 18H.17, is amended to read:
22.2 	18H.17 NURSERY AND PHYTOSANITARY ACCOUNT.
22.3 	A nursery and phytosanitary account is established in the state treasury. The fees 
22.4 	and penalties collected under this chapter and interest attributable to money in the account 
22.5 	must be deposited in the state treasury and credited to the nursery and phytosanitary 
22.6 	account in the agricultural fund. Money in the account, including interest earned, is 
22.7 	annually appropriated to the commissioner for the administration and enforcement for 
22.8 	this chapter. The commissioner may spend no more than $20,000 from the account each 
22.9 	fiscal year for purposes of section 18H.14, paragraph (e).

22.10 	Sec. 20. Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
22.11 		Subd. 2.Permits; issuance and revocation. The commissioner shall issue a permit 
22.12 	to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold 
22.13 	for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92. 
22.14 	The categories of permits are as follows:
22.15 	(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each 
22.16 	calendar year, an annual permit issued for a fee established in section 21.891, subdivision 
22.17 	2, paragraph (b);
22.18 	(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for 
22.19 	use in home gardens or household plantings, and initial labelers who sell native grasses 
22.20 	and wildflower seed in commercial or agricultural quantities, an annual permit issued for 
22.21 	a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross 
22.22 	sales from the previous year; and
22.23 	(3) for initial labelers who sell more than 50,000 pounds of agricultural seed 
22.24 	each calendar year, a permanent permit issued for a fee established in section 21.891, 
22.25 	subdivision 2, paragraph (d).
22.26 	In addition, the person shall furnish to the commissioner an itemized statement of all 
22.27 	seeds sold in Minnesota for the periods established by the commissioner. This statement 
22.28 	shall be delivered, along with the payment of the fee, based upon the amount and type 
22.29 	of seed sold, to the commissioner no later than 30 days after the end of each reporting 
22.30 	period. Any person holding a permit shall show as part of the analysis labels or invoices 
22.31 	on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the 
22.32 	commissioner requires. The commissioner may revoke any permit in the event of failure 
22.33 	to comply with applicable laws and rules.

22.34 	Sec. 21. Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:
23.1 		Subd. 2.Seed fee permits. (a) An initial labeler who wishes to sell seed in 
23.2 	Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in 
23.3 	this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to 
23.4 	the commissioner to obtain a permit. The application must contain the name and address of 
23.5 	the applicant, the application date, and the name and title of the applicant's contact person.
23.6 	(b) The application for a seed permit covered by section 21.89, subdivision 2, clause 
23.7 	(1), must be accompanied by an application fee of $50 $75.
23.8 	(c) The application for a seed permit covered by section 21.89, subdivision 2, clause 
23.9 	(2), must be accompanied by an application fee based on the level of annual gross sales 
23.10 	as follows:
23.11 	(1) for gross sales of $0 to $25,000, the annual permit fee is $50 $75;
23.12 	(2) for gross sales of $25,001 to $50,000, the annual permit fee is $100 $150;
23.13 	(3) for gross sales of $50,001 to $100,000, the annual permit fee is $200 $300;
23.14 	(4) for gross sales of $100,001 to $250,000, the annual permit fee is $500 $750;
23.15 	(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,000 $1,500; 
23.16 	and
23.17 	(6) for gross sales of $500,001 and above to $1,000,000, the annual permit fee is 
23.18 	$2,000 $3,000; and
23.19 	(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.
23.20 	(d) The application for a seed permit covered by section 21.89, subdivision 2, clause 
23.21 	(3), must be accompanied by an application fee of $50 $75. Initial labelers holding seed 
23.22 	fee permits covered under this paragraph need not apply for a new permit or pay the 
23.23 	application fee. Under this permit category, the fees for the following kinds of agricultural 
23.24 	seed sold either in bulk or containers are:
23.25 	(1) oats, wheat, and barley, 6.3 9 cents per hundredweight;
23.26 	(2) rye, field beans, soybeans, buckwheat, and flax, 8.4 12 cents per hundredweight;
23.27 	(3) field corn, 29.4 17 cents per hundredweight 80,000 seed unit;
23.28 	(4) forage, lawn and turf grasses, and legumes, 49 69 cents per hundredweight;
23.29 	(5) sunflower, $1.40 $1.96 per hundredweight;
23.30 	(6) sugar beet, $3.29 12 cents per hundredweight 100,000 seed unit; and
23.31 	(7) soybeans, 7.5 cents per 140,000 seed unit; and
23.32 	(7) (8) for any agricultural seed not listed in clauses (1) to (6) (7), the fee for the crop 
23.33 	most closely resembling it in normal planting rate applies.
23.34 	(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is 
23.35 	shipped into Minnesota by a person other than the initial labeler, the responsibility for the 
23.36 	seed fees are transferred to the shipper. An application for a transfer of this responsibility 
24.1 	must be made to the commissioner. Upon approval by the commissioner of the transfer, 
24.2 	the shipper is responsible for payment of the seed permit fees.
24.3 	(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or 
24.4 	as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the 
24.5 	words "Minnesota seed permit fees" must be used.
24.6 	(g) All seed fee permit holders must file semiannual reports with the commissioner, 
24.7 	even if no seed was sold during the reporting period. Each semiannual report must be 
24.8 	submitted within 30 days of the end of each reporting period. The reporting periods are 
24.9 	October 1 to March 31 and April 1 to September 30 of each year or July 1 to December 
24.10 	31 and January 1 to June 30 of each year. Permit holders may change their reporting 
24.11 	periods with the approval of the commissioner.
24.12 	(h) The holder of a seed fee permit must pay fees on all seed for which the permit 
24.13 	holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold 
24.14 	during the reporting period.
24.15 	(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed 
24.16 	fee within 30 days after the end of each reporting period, the commissioner shall assess a 
24.17 	penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever 
24.18 	is greater, but no more than $500 for each late semiannual report. A $15 penalty must be 
24.19 	charged when the semiannual report is late, even if no fee is due for the reporting period. 
24.20 	Seed fee permits may be revoked for failure to comply with the applicable provisions of 
24.21 	this paragraph or the Minnesota seed law.

24.22 	Sec. 22. Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:
24.23 		Subd. 5.Brand name registration fee. The fee is $25 $50 for each variety 
24.24 	registered for sale by brand name.

24.25 	Sec. 23. Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:
24.26 		Subd. 2.Application; fee; term. A person who is required to have a commercial 
24.27 	feed license shall submit an application on a form provided or approved by the 
24.28 	commissioner accompanied by a fee of $25$75 paid to the commissioner for each 
24.29 	location. A license is not transferable from one person to another, from one ownership to 
24.30 	another, or from one location to another. The license year is the calendar year. A license 
24.31 	expires on December 31 of the year for which it is issued, except that a license is valid 
24.32 	through January 31 of the next year or until the issuance of the renewal license, whichever 
24.33 	comes first, if the licensee has filed a renewal application with the commissioner on or 
24.34 	before December 31 of the year for which the current license was issued. Any person who 
25.1 	is required to have, but fails to obtain a license or a licensee who fails to comply with 
25.2 	license renewal requirements, shall pay a $50 $100 late fee in addition to the license fee.

25.3 	Sec. 24. Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:
25.4 		Subdivision 1.Amount of fee. (a) An inspection fee at the rate of 16 cents per ton 
25.5 	must be paid to the commissioner on commercial feeds distributed in this state by the 
25.6 	person who first distributes the commercial feed, except that:
25.7 	(1) no fee need be paid on:
25.8 	(i) a commercial feed if the payment has been made by a previous distributor; or
25.9 	(ii) customer formula feeds if the inspection fee is paid on the commercial feeds 
25.10 	which are used as ingredients; or
25.11 	(2) a Minnesota feed distributor who can substantiate that greater than 50 percent 
25.12 	of the distribution of commercial feed is to purchasers outside the state may purchase 
25.13 	commercial feeds without payment of the inspection fee under a tonnage fee exemption 
25.14 	permit issued by the commissioner. Such location specific permits shall be issued on a 
25.15 	calendar year basis to commercial feed distributors who submit a $100 nonrefundable 
25.16 	application fee and comply with rules adopted by the commissioner relative to record 
25.17 	keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial 
25.18 	feed tonnage distributed, and all other information which the commissioner may require 
25.19 	so as to ensure that proper inspection fee payment has been made.
25.20 	(b) In the case of pet food distributed in the state only in packages of ten pounds 
25.21 	or less, a listing of each product and a current label for each product must be submitted 
25.22 	annually on forms provided by the commissioner and accompanied by an annual fee of 
25.23 	$50 $100 for each product in lieu of the inspection fee. This annual fee is due by July 1. 
25.24 	The inspection fee required by paragraph (a) applies to pet food distributed in packages 
25.25 	exceeding ten pounds.
25.26 	(c) In the case of specialty pet food distributed in the state only in packages of 
25.27 	ten pounds or less, a listing of each product and a current label for each product must 
25.28 	be submitted annually on forms provided by the commissioner and accompanied by an 
25.29 	annual fee of $25$100 for each product in lieu of the inspection fee. This annual fee is 
25.30 	due by July 1. The inspection fee required by paragraph (a) applies to specialty pet food 
25.31 	distributed in packages exceeding ten pounds.
25.32 	(d) The minimum inspection fee is $10$75 per annual reporting period.

25.33 	Sec. 25. Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:
26.1 		Subd. 1a.Containers of ten pounds or less. A distributor who is subject to the 
26.2 	annual fee specified in subdivision 1, paragraph (b) or (c), shall do the following:
26.3 	(1) before beginning distribution, file with the commissioner a listing of pet and 
26.4 	specialty pet foods to be distributed in the state only in containers of ten pounds or less, 
26.5 	on forms provided by the commissioner. The listing under this clause must be renewed 
26.6 	annually before July 1 and is the basis for the payment of the annual fee. New products 
26.7 	added during the year must be submitted to the commissioner as a supplement to the 
26.8 	annual listing before distribution; and
26.9 	(2) if the annual renewal of the listing is not received before July 1 or if an unlisted 
26.10 	product is distributed, pay a late filing fee of $10 $100 per product in addition to the 
26.11 	normal charge for the listing. The late filing fee under this clause is in addition to any 
26.12 	other penalty under this chapter.

26.13 	Sec. 26. Minnesota Statutes 2014, section 28A.03, is amended by adding a subdivision 
26.14 	to read:
26.15 		Subd. 11.HACCP plan. "Hazard analysis critical control point plan" or "HACCP 
26.16 	plan" means a written document that delineates the formal procedures for following the 
26.17 	HACCP principles developed by the National Advisory Committee on Microbiological 
26.18 	Criteria for Foods.

26.19 	Sec. 27. [28A.152] COTTAGE FOODS EXEMPTION.
26.20 		Subdivision 1.Licensing provisions applicability. (a) The licensing provisions of 
26.21 	sections 28A.01 to 28A.16 do not apply to the following:
26.22 	(1) an individual who prepares and sells food that is not potentially hazardous food, 
26.23 	as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements 
26.24 	are met:
26.25 	(i) the prepared food offered for sale under this clause is labeled to accurately reflect 
26.26 	the name and address of the individual preparing and selling the food, the date on which 
26.27 	the food was prepared, and the ingredients and any possible allergens; and 
26.28 	(ii) the individual displays at the point of sale a clearly legible sign or placard stating: 
26.29 	"These products are homemade and not subject to state inspection."; and
26.30 	(2) an individual who prepares and sells home-processed and home-canned food 
26.31 	products if the following requirements are met:
26.32 	(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 
26.33 	4.6 or lower;
26.34 	(ii) the products are home-processed and home-canned in Minnesota;
27.1 	(iii) the individual displays at the point of sale a clearly legible sign or placard 
27.2 	stating: "These canned goods are homemade and not subject to state inspection."; and
27.3 	(iv) each container of the product sold or offered for sale under this clause is 
27.4 	accurately labeled to provide the name and address of the individual who processed 
27.5 	and canned the goods, the date on which the goods were processed and canned, and 
27.6 	ingredients and any possible allergens.
27.7 	(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is 
27.8 	also exempt from the provisions of sections 31.31 and 31.392.
27.9 		Subd. 2.Direct sales to consumers. (a) An individual qualifying for an exemption 
27.10 	under subdivision 1 may sell the exempt food:
27.11 	(1) directly to the ultimate consumer;
27.12 	(2) at a community event or farmers' market; or
27.13 	(3) directly from the individual's home to the consumer, to the extent allowed by 
27.14 	local ordinance.
27.15 	(b) If an exempt food product will be delivered to the ultimate consumer upon sale 
27.16 	of the food product, the individual who prepared the food product must be the person who 
27.17 	delivers the food product to the ultimate consumer.
27.18 	(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be 
27.19 	sold outside of Minnesota.
27.20 	(d) Food products exempt under subdivision 1 may be sold over the Internet but 
27.21 	must be delivered directly to the ultimate consumer by the individual who prepared the 
27.22 	food product. The statement "These products are homemade and not subject to state 
27.23 	inspection." must be displayed on the Web site that offers the exempt foods for purchase. 
27.24 		Subd. 3.Limitation on sales. An individual selling exempt foods under this section 
27.25 	is limited to total sales with gross receipts of $18,000 or less in a calendar year. 
27.26 		Subd. 4.Registration. Except as provided in subdivision 8, an individual who 
27.27 	prepares and sells exempt food under subdivision 1 must register annually with the 
27.28 	commissioner. The annual registration fee is $50.
27.29 		Subd. 5.Training. Except as provided in subdivision 8, an individual who prepares 
27.30 	and sells exempt food under subdivision 1 must complete a safe food handling training 
27.31 	course that is approved by the commissioner. The training shall not exceed eight hours and 
27.32 	must be completed every three years while the individual is registered under subdivision 4.
27.33 		Subd. 6.Local ordinances. This section does not preempt the application of any 
27.34 	business licensing requirement or sanitation, public health, or zoning ordinance of a 
27.35 	political subdivision.
28.1 		Subd. 7.Account established. A cottage foods account is created as a separate 
28.2 	account in the agricultural fund in the state treasury for depositing money received by the 
28.3 	commissioner under this section. Money in the account, including interest, is appropriated 
28.4 	to the commissioner for purposes of this section.
28.5 		Subd. 8.Sales of less than $5,000. Subdivisions 4 and 5 do not apply to an individual 
28.6 	with gross receipts of less than $5,000 in a calendar year from the sale of exempt food.

28.7 	Sec. 28. Minnesota Statutes 2014, section 32.075, is amended to read:
28.8 	32.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.
28.9 	EveryAn initial license issued by the commissioner shall be for a period ending 
28.10 	expires on the following December 31st day of December next following, and shallis not 
28.11 	be transferable. A renewal license is valid for two years and expires on December 31 of 
28.12 	the second year. The fee for each suchan initial or renewal license shall be $50 and each 
28.13 	renewal thereof shall be $25 and is $60. The fee shall be paid to the commissioner before 
28.14 	any the commissioner issues an initial or renewal license or renewal thereof is issued. If a 
28.15 	license renewal is not applied for on or before January 1 of each year, a penalty of $10 $30 
28.16 	shall be imposed. A person who does not renew a license within one year following its 
28.17 	December 31 expiration date, except those persons who do not renew such license while 
28.18 	engaged in active military service, shall be required to prove competency and qualification 
28.19 	pursuant to section 32.073, before a license is issued. The commissioner may require any 
28.20 	other person who renews a license to prove competency and qualification in the same 
28.21 	manner. All license fees and penalties received by the commissioner shall be paid into the 
28.22 	state treasury deposited in the dairy services account in the agricultural fund.

28.23 	Sec. 29. Minnesota Statutes 2014, section 32.105, is amended to read:
28.24 	32.105 MILK PROCUREMENT FEE.
28.25 	Each dairy plant operator within the state must pay to the commissioner on or before 
28.26 	the 18th of each month a fee of .71 1.1 cents per hundredweight of milk purchased the 
28.27 	previous month. If a milk producer within the state ships milk out of the state for sale, the 
28.28 	producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.
28.29 	Producers who ship milk out of state or processors must submit monthly reports as 
28.30 	to milk purchases along with the appropriate procurement fee to the commissioner. The 
28.31 	commissioner may have access to all relevant purchase or sale records as necessary to 
28.32 	verify compliance with this section and may require the producer or purchaser to produce 
28.33 	records as necessary to determine compliance.
29.1 	The fees collected under this section must be deposited in the dairy services account 
29.2 	in the agricultural fund. Money in the account, including interest earned, is appropriated 
29.3 	to the commissioner to administer this chapter.

29.4 	Sec. 30. [41A.14] AGRICULTURE RESEARCH, EDUCATION, EXTENSION, 
29.5 	AND TECHNOLOGY TRANSFER BOARD.
29.6 		Subdivision 1.Creation. (a) The Agriculture Research, Education, Extension, and 
29.7 	Technology Transfer Board is created and consists of the following members:
29.8 	(1) the commissioner of agriculture;
29.9 	(2) the dean of the College of Food, Agricultural and Natural Resource Sciences 
29.10 	at the University of Minnesota;
29.11 	(3) a person representing the Minnesota State Colleges and Universities system, 
29.12 	appointed by the chancellor;
29.13 	(4) a representative of the Minnesota Farm Bureau and a representative of the 
29.14 	Minnesota Farmers Union;
29.15 	(5) a person representing agriculture industry statewide; 
29.16 	(6) a representative of each of the state commodity councils organized under section 
29.17 	17.54 and the Minnesota Pork Board;
29.18 	(7) a person representing an association of primary manufacturers of forest products;
29.19 	(8) a person representing organic or sustainable agriculture; and
29.20 	(9) a person representing statewide environment and natural resource conservation 
29.21 	organizations.
29.22 	The commissioner and the dean shall be cochairs. The commissioner, the dean, and the 
29.23 	representative of the Minnesota State Colleges and Universities system are nonvoting 
29.24 	members of the board.
29.25 	(b) Members under paragraph (a), clauses (8) and (9), shall be appointed by the 
29.26 	commissioner. The commissioner shall not provide daily or expense compensation for 
29.27 	board members.
29.28 	(c) The commissioner shall provide administrative services for the board and act 
29.29 	as its fiscal agent.
29.30 	(d) For each board meeting, the commissioner shall provide advanced notice and a 
29.31 	copy of the meeting minutes to the chairs and ranking minority members of the house of 
29.32 	representatives and senate committees with jurisdiction over agriculture finance.
29.33 		Subd. 2.Duties; grants. The board shall provide for investments that will most 
29.34 	efficiently achieve long-term agricultural productivity increases through improved 
30.1 	infrastructure, vision, and accountability. Priority shall be given to human infrastructure. 
30.2 	The board shall provide grants for:
30.3 	(1) agricultural research and technology transfer needs and recipients including 
30.4 	agricultural research and extension at the University of Minnesota, research and outreach 
30.5 	centers; the College of Food, Agricultural and Natural Resource Sciences; the Minnesota 
30.6 	Agricultural Experiment Station; University of Minnesota Extension; the University of 
30.7 	Minnesota Veterinary School; the Veterinary Diagnostic Laboratory; the Stakman-Borlaug 
30.8 	Center; and the Minnesota Agricultural Fertilizer Research and Education Council;
30.9 	(2) agriculture rapid response for plant and animal diseases and pests; and
30.10 	(3) agricultural education including, but not limited to, challenge grants awarded by 
30.11 	the Minnesota Agriculture Education Leadership Council, farm business management, 
30.12 	mentoring programs, graduate debt forgiveness, and high school programs.
30.13 		Subd. 3.Fund. An agriculture research, education, extension, and technology 
30.14 	transfer fund is created in the state treasury. The fund consists of money received in the 
30.15 	form of gifts, grants, reimbursement, or appropriations from any source for any of the 
30.16 	purposes provided in subdivision 2, and any interest or earnings of the fund. Money in 
30.17 	the fund is appropriated to the commissioner of agriculture for the purposes listed under 
30.18 	subdivision 2.

30.19 	Sec. 31. [41A.15] DEFINITIONS.
30.20 		Subdivision 1.Scope. For the purposes of sections 41A.15 to 41A.19, the terms 
30.21 	defined in this section have the meanings given them.
30.22 		Subd. 2.Advanced biofuel. "Advanced biofuel" has the meaning given in section 
30.23 	239.051, subdivision 1a.
30.24 		Subd. 3.Biomass thermal production. "Biomass thermal production" means the 
30.25 	generation of energy for commercial heat or industrial process heat from a cellulosic 
30.26 	material or other material composed of forestry or agricultural feedstocks for a new or 
30.27 	expanding capacity facility or a facility that is displacing existing use of fossil fuel after 
30.28 	the effective date of this section.
30.29 		Subd. 4.Cellulosic biomass. "Cellulosic biomass" means material primarily made 
30.30 	up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.
30.31 		Subd. 5.Cellulosic sugar. "Cellulosic sugar" means sugar derived from cellulosic 
30.32 	biomass from agricultural or forestry resources.
30.33 		Subd. 6.Commissioner. "Commissioner" means the commissioner of agriculture.
30.34 		Subd. 7.Cover crops. "Cover crops" means grasses, legumes, forbs, or other 
30.35 	herbaceous plants that are known to be noninvasive and not listed as a noxious weed in 
31.1 	Minnesota and that are either interseeded into living cash crops or planted on agricultural 
31.2 	fields during fallow periods for seasonal cover and conservation purposes.
31.3 		Subd. 8.MMbtu. "MMbtu" means 1,000,000 British thermal units.
31.4 		Subd. 9.Perennial crops. "Perennial crops" means agriculturally produced plants 
31.5 	that are known to be noninvasive and not listed as a noxious weed in Minnesota and that 
31.6 	have a life cycle of at least three years at the location where the plants are being cultivated. 
31.7 	Biomass from alfalfa produced in a two-year rotation shall be considered a perennial crop.
31.8 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with 
31.9 	biobased content as defined in section 41A.105, subdivision 1a.

31.10 	Sec. 32. [41A.16] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
31.11 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
31.12 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
31.13 	less from the state border, raw materials may be sourced from within a 100-mile radius. 
31.14 	Raw materials must be from agricultural or forestry sources or from solid waste. The 
31.15 	facility must be located in Minnesota, must begin production at a specific location by June 
31.16 	30, 2025, and must not begin operating above 95,000 MMbtu of annual biofuel production 
31.17 	before July 1, 2015. Eligible facilities include existing companies and facilities that are 
31.18 	adding advanced biofuel production capacity, or retrofitting existing capacity, as well as 
31.19 	new companies and facilities. Production of conventional corn ethanol and conventional 
31.20 	biodiesel is not eligible. Eligible advanced biofuel facilities must produce at least 95,000 
31.21 	MMbtu a year.
31.22 	(b) No payments shall be made for advanced biofuel production that occurs after 
31.23 	June 30, 2035, for those eligible biofuel producers under paragraph (a).
31.24 	(c) An eligible producer of advanced biofuel shall not transfer the producer's 
31.25 	eligibility for payments under this section to an advanced biofuel facility at a different 
31.26 	location.
31.27 	(d) A producer that ceases production for any reason is ineligible to receive 
31.28 	payments under this section until the producer resumes production.
31.29 	(e) Renewable chemical production for which payment has been received under 
31.30 	section 41A.17, and biomass thermal production for which payment has been received 
31.31 	under section 41A.18, are not eligible for payment under this section.
31.32 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments 
31.33 	to eligible producers of advanced biofuel. The amount of the payment for each eligible 
31.34 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
32.1 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or 
32.2 	starch at a specific location for ten years after the start of production. 
32.3 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year 
32.4 	may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total 
32.5 	payments under this section to all eligible biofuel producers in a fiscal year may not 
32.6 	exceed the amount necessary for 17,100,000 MMbtu of biofuel production.
32.7 	(c) For purposes of this section, an entity that holds a controlling interest in more 
32.8 	than one advanced biofuel facility is considered a single eligible producer.
32.9 		Subd. 3.Perennial and cover crops required. To be eligible for payment under 
32.10 	this section, a producer that produces advanced biofuel from agricultural cellulosic 
32.11 	biomass other than corn kernel fiber or biogas must derive at least the following portions 
32.12 	of the producer's total eligible MMbtus from perennial crop or cover crop biomass:
32.13 	(1) ten percent during the first two years of eligible production;
32.14 	(2) 30 percent during the third and fourth years of eligible production; and
32.15 	(3) 50 percent during the fifth through tenth years of eligible production.
32.16 		Subd. 4.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
32.17 	biomass must be produced using Minnesota state biomass harvesting guidelines or the 
32.18 	equivalent. All biomass from brushlands must be produced using Minnesota brushland 
32.19 	harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic 
32.20 	biomass that comes from land parcels greater than 160 acres must be certified by the Forest 
32.21 	Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System. 
32.22 	Uncertified land from parcels of 160 acres or less and federal land must be harvested by 
32.23 	a logger who has completed training for biomass harvesting from the Minnesota logger 
32.24 	education program or the equivalent and have a forest stewardship plan.
32.25 		Subd. 5.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
32.26 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
32.27 	plan for approval by the commissioner prior to applying for payments under this section. 
32.28 	The commissioner shall make the plan publicly available. The plan must:
32.29 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
32.30 	produced and managed in a way that preserves soil quality, does not increase soil and 
32.31 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
32.32 	on wildlife habitat, and reduces greenhouse gas emissions;
32.33 	(2) include the producer's approach to verifying that biomass suppliers are following 
32.34 	the plan;
33.1 	(3) discuss how new technologies and practices that are not yet commercially viable 
33.2 	may be encouraged and adopted during the life of the facility, and how the producer will 
33.3 	encourage continuous improvement during the life of the project; 
33.4 	(4) include specific numeric goals and timelines for making progress;
33.5 	(5) require agronomic practices that result in a positive Natural Resources 
33.6 	Conservation Service Soil Conditioning Index score for acres from which biomass from 
33.7 	corn stover will be harvested; and
33.8 	(6) include biennial soil sampling to verify maintained or increased levels of soil 
33.9 	organic matter.
33.10 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
33.11 	payments under this section shall submit an annual report on the producer's responsible 
33.12 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
33.13 	include data on progress made by the producer in meeting specific goals laid out in the 
33.14 	plan. The commissioner shall make the report publicly available. The commissioner shall 
33.15 	perform an annual review of submitted reports and may make a determination that the 
33.16 	producer is not following the plan based on the reports submitted.  The commissioner 
33.17 	may take appropriate steps, including reducing or ceasing payments, until the producer 
33.18 	is in compliance with the plan.
33.19 		Subd. 6.Claims. (a) By the last day of October, January, April, and July, each 
33.20 	eligible biofuel producer shall file a claim for payment for advanced biofuel production 
33.21 	during the preceding three calendar months. An eligible biofuel producer that files a claim 
33.22 	under this subdivision shall include a statement of the eligible biofuel producer's total 
33.23 	advanced biofuel production in Minnesota during the quarter covered by the claim. For 
33.24 	each claim and statement of total advanced biofuel production filed under this subdivision, 
33.25 	the volume of advanced biofuel production must be examined by an independent certified 
33.26 	public accountant licensed under chapter 326A, in accordance with Statements on 
33.27 	Standards for Attestation Engagements established by the American Institute of Certified 
33.28 	Public Accountants.
33.29 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
33.30 	and August 15. A separate payment must be made for each claim filed.

33.31 	Sec. 33. [41A.17] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
33.32 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program 
33.33 	must source at least 80 percent biobased content, as defined in section 41A.105, 
33.34 	subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the 
33.35 	state border, biobased content must be sourced from within a 100-mile radius. Biobased 
34.1 	content must be from agricultural or forestry sources or from solid waste. The facility 
34.2 	must be located in Minnesota, must begin production at a specific location by June 30, 
34.3 	2025, and must not begin production of 3,000,000 pounds of chemicals annually before 
34.4 	January 1, 2015. Eligible facilities include existing companies and facilities that are 
34.5 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
34.6 	facilities. Eligible renewable chemical facilities must produce at least 3,000,000 pounds 
34.7 	per year. Renewable chemicals produced through processes that are fully commercial 
34.8 	before January 1, 2000, are not eligible.
34.9 	(b) No payments shall be made for renewable chemical production that occurs after 
34.10 	June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
34.11 	(c) An eligible producer of renewable chemicals shall not transfer the producer's 
34.12 	eligibility for payments under this section to a renewable chemical facility at a different 
34.13 	location.
34.14 	(d) A producer that ceases production for any reason is ineligible to receive 
34.15 	payments under this section until the producer resumes production.
34.16 	(e) Advanced biofuel production for which payment has been received under section 
34.17 	41A.16, and biomass thermal production for which payment has been received under 
34.18 	section 41A.18, are not eligible for payment under this section.
34.19 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make 
34.20 	payments to eligible producers of renewable chemicals located in the state. The amount of 
34.21 	the payment for each producer's annual production is $0.03 per pound of sugar-derived 
34.22 	renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of 
34.23 	cellulosic-derived renewable chemical produced at a specific location for ten years after 
34.24 	the start of production. 
34.25 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
34.26 	biomass is eligible for a 20 percent bonus payment for each MMbtu produced from 
34.27 	agricultural biomass that is derived from perennial crop or cover crop biomass.
34.28 	(c) Total payments under this section to an eligible renewable chemical producer in 
34.29 	a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
34.30 	chemical production. Total payments under this section to all eligible renewable chemical 
34.31 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
34.32 	renewable chemical production.
34.33 	(d) For purposes of this section, an entity that holds a controlling interest in more 
34.34 	than one renewable chemical production facility is considered a single eligible producer.
34.35 		Subd. 3.Cellulosic biomass requirements. All forestry-derived cellulosic biomass 
34.36 	must be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
35.1 	All cellulosic biomass from brushlands must be produced using Minnesota brushland 
35.2 	harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic 
35.3 	biomass that comes from land parcels greater than 160 acres must be certified by the Forest 
35.4 	Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System. 
35.5 	Uncertified land from parcels of 160 acres or less and federal land must be harvested by 
35.6 	a logger who has completed training for biomass harvesting from the Minnesota logger 
35.7 	education program or the equivalent and have a forest stewardship plan.
35.8 		Subd. 4.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
35.9 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
35.10 	plan to the commissioner prior to applying for payments under this section. The plan must:
35.11 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
35.12 	produced and managed in a way that preserves soil quality, does not increase soil and 
35.13 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
35.14 	on wildlife habitat, and reduces greenhouse gas emissions;
35.15 	(2) include the producer's approach to verifying that biomass suppliers are following 
35.16 	the plan;
35.17 	(3) discuss how new technologies and practices that are not yet commercially viable 
35.18 	may be encouraged and adopted during the life of the facility, and how the producer will 
35.19 	encourage continuous improvement during the life of the project; and
35.20 	(4) include specific numeric goals and timelines for making progress.
35.21 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
35.22 	payments under this section shall submit an annual report on the producer's responsible 
35.23 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
35.24 	include data on progress made by the producer in meeting specific goals laid out in the 
35.25 	plan. The commissioner shall make the report publicly available. The commissioner shall 
35.26 	perform an annual review of submitted reports and may make a determination that the 
35.27 	producer is not following the plan based on the reports submitted. The commissioner 
35.28 	may take appropriate steps, including reducing or ceasing payments, until the producer 
35.29 	is in compliance with the plan.
35.30 		Subd. 5.Claims. (a) By the last day of October, January, April, and July, each 
35.31 	eligible renewable chemical producer shall file a claim for payment for renewable 
35.32 	chemical production during the preceding three calendar months. An eligible renewable 
35.33 	chemical producer that files a claim under this subdivision shall include a statement of 
35.34 	the eligible producer's total renewable chemical production in Minnesota during the 
35.35 	quarter covered by the claim. For each claim and statement of total renewable chemical 
35.36 	production filed under this paragraph, the volume of renewable chemical production must 
36.1 	be examined by an independent certified public accountant licensed under chapter 326A, 
36.2 	in accordance with Statements on Standards for Attestation Engagements established by 
36.3 	the American Institute of Certified Public Accountants.
36.4 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
36.5 	and August 15. A separate payment must be made for each claim filed. 

36.6 	Sec. 34. [41A.18] BIOMASS THERMAL PRODUCTION INCENTIVE.
36.7 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
36.8 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
36.9 	less from the state border, raw materials should be sourced from within a 100-mile radius. 
36.10 	Raw materials must be from agricultural or forestry sources. The facility must be located 
36.11 	in Minnesota, must have begun production at a specific location by June 30, 2025, and 
36.12 	must not begin before July 1, 2015. Eligible facilities include existing companies and 
36.13 	facilities that are adding production capacity, or retrofitting existing capacity, as well as 
36.14 	new companies and facilities. Eligible biomass thermal production facilities must produce 
36.15 	at least 1,000 MMbtu per year.
36.16 	(b) No payments shall be made for biomass thermal production that occurs after June 
36.17 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
36.18 	(c) An eligible producer of biomass thermal production shall not transfer the 
36.19 	producer's eligibility for payments under this section to a biomass thermal production 
36.20 	facility at a different location.
36.21 	(d) A producer that ceases production for any reason is ineligible to receive 
36.22 	payments under this section until the producer resumes production.
36.23 	(e) Biofuel production for which payment has been received under section 41A.16, 
36.24 	and renewable chemical production for which payment has been received under section 
36.25 	41A.17, are not eligible for payment under this section.
36.26 		Subd. 2.Payment amounts; bonus; limits; blending. (a) The commissioner shall 
36.27 	make payments to eligible producers of biomass thermal located in the state. The amount 
36.28 	of the payment for each producer's annual production is $5.00 per MMbtu of biomass 
36.29 	thermal production produced at a specific location for ten years after the start of production.
36.30 	(b) An eligible facility producing biomass thermal using agricultural cellulosic 
36.31 	biomass is eligible for a 20 percent bonus payment for each MMbtu produced from 
36.32 	agricultural biomass that is derived from perennial crop or cover crop biomass.
36.33 	(c) Total payments under this section to an eligible thermal producer in a fiscal year 
36.34 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
37.1 	payments under this section to all eligible thermal producers in a fiscal year may not 
37.2 	exceed the amount necessary for 150,000 MMbtu of total thermal production.
37.3 	(d) An eligible facility may blend a cellulosic feedstock with other fuels in the 
37.4 	biomass thermal production facility, but only the percentage attributable to cellulosic 
37.5 	material is eligible to receive payment.
37.6 	(e) For purposes of this section, an entity that holds a controlling interest in more 
37.7 	than one biomass thermal production facility is considered a single eligible producer. 
37.8 		Subd. 3.Cellulosic biomass requirements. All forestry-derived cellulosic biomass 
37.9 	must be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
37.10 	All biomass from brushland must be produced using Minnesota brushland harvesting 
37.11 	biomass guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from 
37.12 	land parcels greater than 160 acres must be certified by the Forest Stewardship Council, 
37.13 	the Sustainable Forestry Initiative, or American Tree Farm. Uncertified land from parcels 
37.14 	of 160 acres or less and federal land must be harvested by a logger who has completed 
37.15 	training for biomass harvesting from the Minnesota logger education program or the 
37.16 	equivalent and have a forest stewardship plan. 
37.17 		Subd. 4.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
37.18 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
37.19 	plan to the commissioner prior to applying for payments under this section. The plan must:
37.20 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
37.21 	produced and managed in a way that preserves soil quality, does not increase soil and 
37.22 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
37.23 	on wildlife habitat, and reduces greenhouse gas emissions;
37.24 	(2) include the producer's approach to verifying that biomass suppliers are following 
37.25 	the plan;
37.26 	(3) discuss how new technologies and practices that are not yet commercially viable 
37.27 	may be encouraged and adopted during the life of the facility, and how the producer will 
37.28 	encourage continuous improvement during the life of the project; and
37.29 	(4) include specific numeric goals and timelines for making progress.
37.30 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
37.31 	payments under this section shall submit an annual report on the producer's responsible 
37.32 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
37.33 	include data on progress made by the producer in meeting specific goals laid out in the 
37.34 	plan. The commissioner shall make the report publicly available. The commissioner shall 
37.35 	perform an annual review of submitted reports and may make a determination that the 
37.36 	producer is not following the plan based on the reports submitted. The commissioner 
38.1 	may take appropriate steps, including reducing or ceasing payments, until the producer 
38.2 	is in compliance with the plan.
38.3 		Subd. 5.Claims. (a) By the last day of October, January, April, and July, each 
38.4 	producer shall file a claim for payment for biomass thermal production during the 
38.5 	preceding three calendar months. A producer that files a claim under this subdivision shall 
38.6 	include a statement of the producer's total biomass thermal production in Minnesota during 
38.7 	the quarter covered by the claim. For each claim and statement of total biomass thermal 
38.8 	production filed under this paragraph, the volume of biomass thermal production must 
38.9 	be examined by an independent certified public accountant licensed under chapter 326A, 
38.10 	in accordance with Statements on Standards for Attestation Engagements established by 
38.11 	the American Institute of Certified Public Accountants.
38.12 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
38.13 	and August 15. A separate payment shall be made for each claim filed.

38.14 	Sec. 35. [41A.19] REPORT; INCENTIVE PROGRAMS.
38.15 	By January 15 each year, the commissioner shall report on the incentive programs 
38.16 	under sections 41A.16, 41A.17, and 41A.18 to the legislative committees with jurisdiction 
38.17 	over environment and agriculture policy and finance. The report shall include information 
38.18 	on production and incentive expenditures under the programs.

38.19 	Sec. 36. Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
38.20 		Subd. 6.Application fee. The authority may impose a reasonable nonrefundable 
38.21 	application fee for each application submitted for a beginning farmer loan or a 
38.22 	seller-sponsored loan. The application fee is initially $50. The authority may review the 
38.23 	fee annually and make adjustments as necessary. The fee must be deposited in the state 
38.24 	treasury and credited to an account in the special revenue fund. Money in the account is 
38.25 	appropriated to the commissioner for administrative expenses of the beginning farmer 
38.26 	and seller-sponsored loan programs the Rural Finance Authority administrative account 
38.27 	established in subdivision 7.

38.28 	Sec. 37. Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision 
38.29 	to read:
38.30 		Subd. 7.Rural Finance Authority administrative account. There is established 
38.31 	in the agricultural fund a Rural Finance Authority administrative account. Money in the 
38.32 	account, including interest, is appropriated to the commissioner of agriculture for the 
38.33 	administrative expenses of the loan programs administered by the Rural Finance Authority.

39.1 	Sec. 38. Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
39.2 		Subd. 17.Application and origination fee. The authority may impose a reasonable 
39.3 	nonrefundable application fee for each application and an origination fee for each loan 
39.4 	issued under the loan restructuring program. The origination fee is 1.5 percent of the 
39.5 	authority's participation interest in the loan and the application fee is $50. The authority 
39.6 	may review the fees annually and make adjustments as necessary. The fees must be 
39.7 	deposited in the state treasury and credited to an account in the special revenue fund. 
39.8 	Money in the account is appropriated to the commissioner for administrative expenses 
39.9 	of the loan restructuring program the Rural Finance Authority administrative account 
39.10 	established in section 41B.03.

39.11 	Sec. 39. Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
39.12 		Subd. 3.Application and origination fee. The authority may impose a reasonable 
39.13 	nonrefundable application fee for each application submitted for a participation issued 
39.14 	under the agricultural improvement loan program. The application fee is initially $50. The 
39.15 	authority may review the fees annually and make adjustments as necessary. The fees must 
39.16 	be deposited in the state treasury and credited to an account in the special revenue fund. 
39.17 	Money in this account is appropriated to the commissioner for administrative expenses of 
39.18 	the agricultural improvement loan program the Rural Finance Authority administrative 
39.19 	account established in section 41B.03.

39.20 	Sec. 40. Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
39.21 		Subd. 3.Specifications. No loan may be made to refinance an existing debt. Each 
39.22 	loan participation must be secured by a mortgage on real property and such other security 
39.23 	as the authority may require.

39.24 	Sec. 41. Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
39.25 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
39.26 	nonrefundable application fee for each application for a loan participation and an 
39.27 	origination fee for each loan issued under the livestock expansion loan program. The 
39.28 	origination fee initially shall be set at 1.5 percent and the application fee at $50. The 
39.29 	authority may review the fees annually and make adjustments as necessary. The fees must 
39.30 	be deposited in the state treasury and credited to an account in the special revenue fund. 
39.31 	Money in this account is appropriated to the commissioner for administrative expenses of 
39.32 	the livestock expansion loan program the Rural Finance Authority administrative account 
39.33 	established in section 41B.03.

40.1 	Sec. 42. Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
40.2 		Subd. 5.Loans. (a) The authority may participate in a stock loan with an eligible 
40.3 	lender to a farmer who is eligible under subdivision 4. Participation is limited to 45 
40.4 	percent of the principal amount of the loan or $40,000, whichever is less. The interest 
40.5 	rates and repayment terms of the authority's participation interest may differ from the 
40.6 	interest rates and repayment terms of the lender's retained portion of the loan, but the 
40.7 	authority's interest rate must not exceed 50 percent of the lender's interest rate.
40.8 	(b) No more than 95 percent of the purchase price of the stock may be financed 
40.9 	under this program.
40.10 	(c) Security for stock loans must be the stock purchased, a personal note executed by 
40.11 	the borrower, and whatever other security is required by the eligible lender or the authority.
40.12 	(d) The authority may impose a reasonable nonrefundable application fee for each 
40.13 	application for a stock loan. The authority may review the fee annually and make 
40.14 	adjustments as necessary. The application fee is initially $50. Application fees received 
40.15 	by the authority must be deposited in the revolving loan account established in section 
40.16 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
40.17 	(e) Stock loans under this program will be made using money in the revolving 
40.18 	loan account established in section 41B.06.
40.19 	(f) The authority may not grant stock loans in a cumulative amount exceeding 
40.20 	$2,000,000 for the financing of stock purchases in any one cooperative.
40.21 	(g) Repayments of financial assistance under this section, including principal and 
40.22 	interest, must be deposited into the revolving loan account established in section 41B.06.

40.23 	Sec. 43. Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:
40.24 		Subdivision 1.Establishment. The authority shall establish and implement a 
40.25 	disaster recovery loan program to help farmers:
40.26 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
40.27 	as replace seed, other crop inputs, feed, and livestock, when damaged by high winds, 
40.28 	hail, tornado, or flood; or
40.29 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
40.30 	systems and practices when drought is the cause of the purchase.; or
40.31 	(3) restore farmland.

40.32 	Sec. 44. Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:
40.33 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
40.34 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
41.1 	to 45 percent of the principal amount of the loan or $50,000, whichever is less. The 
41.2 	interest rates and repayment terms of the authority's participation interest may differ from 
41.3 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
41.4 	authority's interest rate must not exceed four percent.
41.5 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
41.6 	not to exceed ten years.
41.7 	(c) Security for the disaster recovery loans must be a personal note executed by the 
41.8 	borrower and whatever other security is required by the eligible lender or the authority.
41.9 	(d) The authority may impose a reasonable nonrefundable application fee for a 
41.10 	disaster recovery loan. The authority may review the fee annually and make adjustments 
41.11 	as necessary. The application fee is initially $50. Application fees received by the 
41.12 	authority must be deposited in the revolving loan account established under section 
41.13 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
41.14 	(e) Disaster recovery loans under this program will be made using money in the 
41.15 	revolving loan account established under section 41B.06.
41.16 	(f) Repayments of financial assistance under this section, including principal and 
41.17 	interest, must be deposited into the revolving loan account established under section 
41.18 	41B.06.

41.19 	Sec. 45. Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
41.20 		Subd. 6.Loans. (a) The authority may disburse loans through a fiscal agent to 
41.21 	farmers and agricultural landowners who are eligible under subdivision 5. The total 
41.22 	accumulative loan principal must not exceed $75,000 per loan.
41.23 	(b) The fiscal agent may impose a loan origination fee in the amount of one percent 
41.24 	of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at 
41.25 	the time of loan closing.
41.26 	(c) The loan may be disbursed over a period not to exceed 12 years.
41.27 	(d) A borrower may receive loans, depending on the availability of funds, for planted 
41.28 	areas up to 160 acres for up to:
41.29 	(1) the total amount necessary for establishment of the crop;
41.30 	(2) the total amount of maintenance costs, including weed control, during the first 
41.31 	three years; and
41.32 	(3) 70 percent of the estimated value of one year's growth of the crop for years 
41.33 	four through 12.
42.1 	(e) Security for the loan must be the crop, a personal note executed by the borrower, an 
42.2 	interest in the land upon which the crop is growing, and whatever other security is required 
42.3 	by the fiscal agent or the authority. All recording fees must be paid by the borrower.
42.4 	(f) The authority may prescribe forms and establish an application process for 
42.5 	applicants to apply for a loan.
42.6 	(g) The authority may impose a reasonable, nonrefundable application fee for each 
42.7 	application for a loan under this program. The application fee is initially $50. Application 
42.8 	fees received by the authority must be deposited in the revolving loan account established 
42.9 	under section 41B.06 Rural Finance Authority administrative account established in 
42.10 	section 41B.03.
42.11 	(h) Loans under the program must be made using money in the revolving loan 
42.12 	account established under section 41B.06.
42.13 	(i) All repayments of financial assistance granted under this section, including 
42.14 	principal and interest, must be deposited into the revolving loan account established 
42.15 	under section 41B.06.
42.16 	(j) The interest payable on loans made by the authority for the agroforestry loan 
42.17 	program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the 
42.18 	revenue bonds, and may be established at a higher rate necessary to pay costs associated 
42.19 	with the issuance of the revenue bonds and a proportionate share of the cost of administering 
42.20 	the program. The interest payable on loans for the agroforestry loan program funded from 
42.21 	sources other than revenue bond proceeds must be at a rate determined by the authority.
42.22 	(k) Loan principal balance outstanding plus all assessed interest must be repaid 
42.23 	within 120 days of harvest, but no later than 15 years from planting.

42.24 	Sec. 46. Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
42.25 		Subd. 4.Loans. (a) The authority may make a direct loan or participate in a loan 
42.26 	with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms 
42.27 	of the authority's participation interest may differ from repayment terms of the lender's 
42.28 	retained portion of the loan. Loans made under this section must be no-interest loans.
42.29 	(b) Application for a direct loan or a loan participation must be made on forms 
42.30 	prescribed by the authority.
42.31 	(c) Standards for loan amortization shall be set by the Rural Finance Authority 
42.32 	not to exceed ten years.
42.33 	(d) Security for the loans must be a personal note executed by the borrower and 
42.34 	whatever other security is required by the eligible lender or the authority.
42.35 	(e) No loan proceeds may be used to refinance a debt existing prior to application.
43.1 	(f) The authority may impose a reasonable nonrefundable application fee for 
43.2 	each application for a direct loan or a loan participation. The authority may review the 
43.3 	application fees annually and make adjustments as necessary. The application fee is 
43.4 	initially set at $100 for a loan under subdivision 1. The fees received by the authority must 
43.5 	be deposited in the revolving loan account established in section 41B.06 Rural Finance 
43.6 	Authority administrative account established in section 41B.03.

43.7 	Sec. 47. Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
43.8 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
43.9 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
43.10 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
43.11 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
43.12 	of the authority's participation interest may differ from the interest rates and repayment 
43.13 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
43.14 	not exceed three percent. The authority may review the interest annually and make 
43.15 	adjustments as necessary.
43.16 	(b) Standards for loan amortization must be set by the Rural Finance Authority 
43.17 	and must not exceed ten years.
43.18 	(c) Security for a livestock equipment loan must be a personal note executed by the 
43.19 	borrower and whatever other security is required by the eligible lender or the authority.
43.20 	(d) Refinancing of existing debt is not an eligible purpose.
43.21 	(e) The authority may impose a reasonable, nonrefundable application fee for 
43.22 	a livestock equipment loan. The authority may review the fee annually and make 
43.23 	adjustments as necessary. The initial application fee is $50. Application fees received 
43.24 	by the authority must be deposited in the revolving loan account established in section 
43.25 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
43.26 	(f) Loans under this program must be made using money in the revolving loan 
43.27 	account established in section 41B.06.

43.28 	Sec. 48. Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
43.29 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
43.30 	(b) "Intermediary" means any lending institution or other organization of a for-profit 
43.31 	or nonprofit nature that is in good standing with the state of Minnesota that has the 
43.32 	appropriate business structure and trained personnel suitable to providing efficient 
43.33 	disbursement of loan funds and the servicing and collection of loans.
44.1 	(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials, 
44.2 	and other horticultural products, that are intensively cultivated.
44.3 	(d) "Eligible livestock" means poultry that has been allowed access to the outside, 
44.4 	sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae, 
44.5 	ratitae, bison, sheep, horses, and llamas.

44.6 	Sec. 49. [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
44.7 		Subdivision 1.Establishment. The authority shall establish a farm opportunity loan 
44.8 	program to provide loans that enable farmers to:
44.9 	(1) add value to crops or livestock produced in Minnesota;
44.10 	(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
44.11 	(3) reduce or improve management of agricultural inputs resulting in environmental 
44.12 	improvements; or
44.13 	(4) increase production of on-farm energy.
44.14 		Subd. 2.Loan criteria. (a) The farm opportunity loan program shall provide loans 
44.15 	for purchase of new or used equipment and installation of equipment for projects that 
44.16 	make environmental improvements and enhance farm profitability. The loan program 
44.17 	shall also be used to add value to crops or livestock produced in Minnesota by, but not 
44.18 	limited to, initiating or expanding livestock product processing; purchasing equipment to 
44.19 	initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers' 
44.20 	processing and aggregating capacity facilitating entry into farm-to-institution and other 
44.21 	markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or 
44.22 	other operating expenses.
44.23 	(b) The authority may impose a reasonable, nonrefundable application fee for a farm 
44.24 	opportunity loan. The authority may review the fee annually and make adjustments as 
44.25 	necessary. The initial application fee is $50. Application fees received by the authority 
44.26 	must be deposited in the Rural Finance Authority administrative account established 
44.27 	in section 41B.03.
44.28 	(c) Loans may only be made to Minnesota residents engaged in farming. Standards 
44.29 	for loan amortization must be set by the Rural Finance Authority and must not exceed 
44.30 	ten years.
44.31 	(d) The borrower must show the ability to repay the loan.
44.32 	(e) Refinancing of existing debt is not an eligible expense.
44.33 	(f) Loans under this program must be made using money in the revolving loan 
44.34 	account established in section 41B.06.
45.1 		Subd. 3.Loan participation. The authority may participate in a farm opportunity 
45.2 	loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a 
45.3 	group of farmers on joint projects who are eligible under subdivision 2, paragraph (c), 
45.4 	and who are actively engaged in farming. Participation is limited to 45 percent of the 
45.5 	principal amount of the loan or $45,000 per individual, whichever is less. For loans to a 
45.6 	group made up of four or more individuals, participation is limited to 45 percent of the 
45.7 	principal amount of the loan or $180,000, whichever is less. The interest rate on the 
45.8 	loans must not exceed six percent.

45.9 	Sec. 50. Minnesota Statutes 2014, section 41B.06, is amended to read:
45.10 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
45.11 	There is established in the rural finance administration fund a Rural Finance 
45.12 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
45.13 	of loan funds from other programs. All repayments of financial assistance granted from 
45.14 	this account, including principal and interest, must be deposited into this account. Interest 
45.15 	earned on money in the account accrues to the account, and the money in the account is 
45.16 	appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority 
45.17 	livestock equipment, methane digester, disaster recovery, value-added agricultural 
45.18 	product, agroforestry, and agricultural microloan, and farm opportunity loan programs, 
45.19 	including costs incurred by the authority to establish and administer the programs.

45.20 	Sec. 51. Minnesota Statutes 2014, section 135A.52, is amended by adding a 
45.21 	subdivision to read:
45.22 		Subd. 6.Farm business management. Minnesota State Colleges and Universities 
45.23 	campuses that offer farm business management may specify space availability in the 
45.24 	delivery of farm business management courses.

45.25 	Sec. 52. Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:
45.26 		Subd. 4.Reports. (a) The chief executive officer of every pension or investment 
45.27 	fund, corporation, limited partnership, limited liability company, or entity that is seeking 
45.28 	to qualify for an exemption from the commissioner, and the trustee of a family farm trust 
45.29 	that holds any interest in agricultural land or land used for the breeding, feeding, pasturing, 
45.30 	growing, or raising of livestock, dairy or poultry, or products thereof, or land used for 
45.31 	the production of agricultural crops or fruit or other horticultural products, other than a 
45.32 	bona fide encumbrance taken for purposes of security, or which is engaged in farming 
46.1 	or proposing to commence farming in this state after May 20, 1973, shall file with the 
46.2 	commissioner a report containing the following information and documents:
46.3 	(1) the name of the pension or investment fund, corporation, limited partnership, or 
46.4 	limited liability company and its place of incorporation, certification, or registration;
46.5 	(2) the address of the pension or investment plan headquarters or of the registered 
46.6 	office of the corporation in this state, the name and address of its registered agent in this state 
46.7 	and, in the case of a foreign corporation, limited partnership, or limited liability company, 
46.8 	the address of its principal office in its place of incorporation, certification, or registration;
46.9 	(3) the acreage and location listed by quarter-quarter section, township, and county 
46.10 	of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry 
46.11 	in this state owned or leased by the pension or investment fund, limited partnership, 
46.12 	corporation, or limited liability company;
46.13 	(4) the names and addresses of the officers, administrators, directors, or trustees of 
46.14 	the pension or investment fund, or of the officers, shareholders owning more than ten 
46.15 	percent of the stock, including the percent of stock owned by each such shareholder, the 
46.16 	members of the board of directors of the corporation, and the members of the limited 
46.17 	liability company, and the general and limited partners and the percentage of interest in 
46.18 	the partnership by each partner;
46.19 	(5) the farm products which the pension or investment fund, limited partnership, 
46.20 	corporation, or limited liability company produces or intends to produce on its agricultural 
46.21 	land;
46.22 	(6) with the first report, a copy of the title to the property where the farming operations 
46.23 	are or will occur indicating the particular exception claimed under subdivision 3; and
46.24 	(7) with the first or second report, a copy of the conservation plan proposed by the 
46.25 	soil and water conservation district, and with subsequent reports a statement of whether 
46.26 	the conservation plan was implemented.
46.27 	The report of a corporation, trust, limited liability company, or partnership seeking 
46.28 	to qualify hereunder as a family farm corporation, an authorized farm corporation, an 
46.29 	authorized livestock farm corporation, a family farm partnership, an authorized farm 
46.30 	partnership, a family farm limited liability company, an authorized farm limited liability 
46.31 	company, or a family farm trust or under an exemption from the commissioner shall 
46.32 	contain the following additional information: the number of shares, partnership interests, 
46.33 	or governance and financial rights owned by persons or current beneficiaries of a family 
46.34 	farm trust residing on the farm or actively engaged in farming, or their relatives within 
46.35 	the third degree of kindred according to the rules of the civil law or their spouses; the 
46.36 	name, address, and number of shares owned by each shareholder, partnership interests 
47.1 	owned by each partner or governance and financial rights owned by each member, and a 
47.2 	statement as to percentage of gross receipts of the corporation derived from rent, royalties, 
47.3 	dividends, interest, and annuities. No pension or investment fund, limited partnership, 
47.4 	corporation, or limited liability company shall commence farming in this state until the 
47.5 	commissioner has inspected the report and certified that its proposed operations comply 
47.6 	with the provisions of this section.
47.7 	(b) Every pension or investment fund, limited partnership, trust, corporation, or 
47.8 	limited liability company as described in paragraph (a) shall, prior to April 15 of each 
47.9 	year, file with the commissioner a report containing the information required in paragraph 
47.10 	(a), based on its operations in the preceding calendar year and its status at the end of the 
47.11 	year. A pension or investment fund, limited partnership, corporation, or limited liability 
47.12 	company that does not file the report by April 15 must pay a $500 civil penalty. The 
47.13 	penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.
47.14 	(c) The commissioner may, for good cause shown, issue a written waiver or 
47.15 	reduction of the civil penalty for failure to make a timely filing of the annual report 
47.16 	required by this subdivision. The waiver or reduction is final and conclusive with respect 
47.17 	to the civil penalty, and may not be reopened or modified by an officer, employee, or 
47.18 	agent of the state, except upon a showing of fraud or malfeasance or misrepresentation 
47.19 	of a material fact. The report required under paragraph (b) must be completed prior to a 
47.20 	reduction or waiver under this paragraph. The commissioner may enter into an agreement 
47.21 	under this paragraph only once for each corporation or partnership.
47.22 	(d) All reports required by paragraph (a) shall include a filing fee of $15. The fee 
47.23 	must be deposited in the state treasury and credited to an account in the agricultural fund. 
47.24 	Money in the account, including interest, is appropriated to the commissioner for the 
47.25 	administrative expenses of this section.
47.26 	(d) (e) Failure to file a required report or the willful filing of false information is a 
47.27 	gross misdemeanor.

47.28 	Sec. 53. Laws 2014, chapter 312, article 12, section 3, is amended to read:

47.29	Sec. 3. AGRICULTURE.
 	$
	-0-
	$
	2,750,000
	
47.30 	$2,000,000 in 2015 is for a grant to Second 
47.31 	Harvest Heartland on behalf of the six 
47.32 	Feeding America food banks that serve 
47.33 	Minnesota to compensate agricultural 
47.34 	producers and processors for costs incurred 
47.35 	to harvest and package for transfer surplus 
48.1 	fruits, vegetables, or other agricultural 
48.2 	commodities that would otherwise go 
48.3 	unharvested or, be discarded, or be sold in 
48.4 	a secondary market. Surplus commodities 
48.5 	must be distributed statewide to food 
48.6 	shelves and other charitable organizations 
48.7 	that are eligible to receive food from the 
48.8 	food banks. Surplus food acquired under 
48.9 	this appropriation must be from Minnesota 
48.10 	producers and processors. Second Harvest 
48.11 	Heartland must report when required by, and 
48.12 	in the form prescribed by, the commissioner. 
48.13 	For fiscal year 2015, Second Harvest 
48.14 	Heartland may use up to 11 percent of any 
48.15 	grant received for administrative expenses 
48.16 	and up to four percent of the grant for 
48.17 	transportation expenses. For fiscal years 
48.18 	2016 and 2017, Second Harvest Heartland 
48.19 	may use up to five percent of any grant 
48.20 	received for administrative expenses. This 
48.21 	is a onetime appropriation and is available 
48.22 	until June 30, 2017.
48.23 	The commissioner shall examine how other 
48.24 	states are implementing the industrial hemp 
48.25 	research authority provided in Public Law 
48.26 	113-79 and gauge the interest of Minnesota 
48.27 	higher education institutions. No later 
48.28 	than January 15, 2015, the commissioner 
48.29 	must report the information and items for 
48.30 	legislative consideration to the legislative 
48.31 	committees with jurisdiction over agriculture 
48.32 	policy and finance.
48.33 	$350,000 in 2015 is for an increase in retail 
48.34 	food handler inspections.
49.1 	$200,000 in 2015 is added to the 
49.2 	appropriation in Laws 2013, chapter 114, 
49.3 	article 1, section 3, subdivision 4, for 
49.4 	distribution to the state's county fairs. This is 
49.5 	a onetime appropriation.
49.6 	$200,000 in 2015 is for a grant as determined 
49.7 	by the commissioner to a public higher 
49.8 	education institution to research porcine 
49.9 	epidemic diarrhea virus. This is a onetime 
49.10 	appropriation and is available until June 30, 
49.11 	2017.

49.12 	Sec. 54. LIVESTOCK INDUSTRY STUDY.
 49.13 	The commissioner of agriculture must identify causes of the relative growth or 
49.14 	decline in the number of head of poultry and livestock produced in Minnesota, Iowa, 
49.15 	North Dakota, South Dakota, Wisconsin, and Nebraska over the last ten years, including 
49.16 	but not limited to the impact of nuisance conditions and lawsuits filed against poultry or 
49.17 	livestock farms. No later than February 1, 2016, the commissioner must report findings 
49.18 	by poultry and livestock sector and provide recommendations on how to strengthen and 
49.19 	expand Minnesota animal agriculture to the legislative committees with jurisdiction over 
49.20 	agriculture policy and finance.

49.21 	Sec. 55. FEASIBILITY STUDY; IMPORTING BAIT FISH FOR RESALE.
 49.22 	The commissioner of agriculture shall conduct a study to assess the feasibility of a 
49.23 	Minnesota company with a valid importation permit under Minnesota Statutes, section 
49.24 	97C.515, procuring health-certified, farm-raised bait fish from an out-of-state facility and 
49.25 	transporting the fish directly to a Minnesota facility for the purpose of resale. The work 
49.26 	group also must study how to increase Minnesota production of the bait fish species that 
49.27 	would otherwise be imported from producers in other states. The commissioner shall 
49.28 	appoint a work group of seven individuals to conduct the study, including representatives 
49.29 	of the Departments of Agriculture and Natural Resources, Explore Minnesota, and private 
49.30 	aquaculture, a University of Minnesota aquatic invasive species specialist, a Minnesota 
49.31 	aquaculture extension agent, and a United States Fish and Wildlife aquatic invasive 
49.32 	species specialist. The work group shall report the study to the legislative policy and 
49.33 	finance committees and divisions with jurisdiction over agriculture, environment, and 
49.34 	natural resources by February 1, 2016.

50.1 	Sec. 56. CORRECTIONAL FACILITY VOCATIONAL TRAINING PILOT 
50.2 	PROGRAM.
50.3 		Subdivision 1.Pilot program. The commissioner of agriculture must coordinate 
50.4 	a pilot program operated by the Northeast Regional Corrections Center to train inmates 
50.5 	for careers as meat cutters upon release. The commissioner must facilitate program 
50.6 	development and ensure that the program prepares inmates to meet applicable food safety 
50.7 	and licensure requirements.
50.8 		Subd. 2.Program development. In facilitating development of the pilot program, 
50.9 	the commissioner must consult with the commissioner of employment and economic 
50.10 	development and a representative of each of the following organizations:
50.11 	(1) Northeast Regional Corrections Center; and
50.12 	(2) United Food and Commercial Workers.
50.13 		Subd. 3.Report required. No later than February 1, 2017, the commissioner must 
50.14 	report on the progress and outcomes of the program to the legislative committees with 
50.15 	jurisdiction over agriculture, economic development, higher education, and public safety.
50.16 		Subd. 4.Expiration. This section expires on June 30, 2017.

50.17 	Sec. 57. URBAN AGRICULTURE DEVELOPMENT PROPOSAL.
 50.18 	The commissioner of agriculture must convene interested stakeholders and develop 
50.19 	a proposal to effectively and efficiently promote urban agriculture in Minnesota cities. 
50.20 	For purposes of this section, "urban agriculture" means producing agricultural plants, 
50.21 	poultry, or livestock on public or private property within city limits. No later than January 
50.22 	15, 2016, the commissioner must report to the legislative committees with jurisdiction 
50.23 	over agriculture policy and finance and submit proposed legislation that includes a new 
50.24 	definition of urban agriculture if the commissioner and stakeholders determine that a 
50.25 	different definition more accurately defines urban agriculture.

50.26 	Sec. 58. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
 50.27 	The balances in the accounts created under Minnesota Statutes, sections 41B.03, 
50.28 	subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision 
50.29 	4, are transferred to the Rural Finance Authority administrative account established under 
50.30 	Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
50.31 	The balance in the account created under Minnesota Statutes, section 17.115, 
50.32 	is transferred to the Rural Finance Authority revolving loan account established under 
50.33 	Minnesota Statutes, section 41B.06, and the original account is abolished.

51.1 	Sec. 59.  REPEALER.
 51.2 	Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and 
51.3 	116V.03, are repealed.