1.1 	A bill for an act
1.2 	relating to state government; appropriating money for agriculture; making policy 
1.3 	and technical changes to various agricultural related provisions, including 
1.4 	provisions related to pesticides, plant protection, fertilizers, nursery law, 
1.5 	seeds, dairy, food handlers, food, farmland, farming, and loans; authorizing 
1.6 	the Industrial Hemp Development Act; modifying license exclusions for the 
1.7 	direct sale of certain prepared food; establishing the agriculture research, 
1.8 	education, extension, and technology transfer grant program; providing incentive 
1.9 	payments; providing a vocational training pilot program; establishing the farm 
1.10 	opportunity loan program; requiring studies and reports; creating accounts; 
1.11 	modifying certain grant, permit, and fee provisions; requiring rulemaking; 
1.12 	providing criminal penalties;amending Minnesota Statutes 2014, sections 
1.13 	3.737, by adding a subdivision; 13.643, subdivision 1; 18B.01, subdivisions 
1.14 	28, 29; 18B.05, subdivision 1; 18B.32, subdivision 1; 18B.33, subdivision 1; 
1.15 	18B.34, subdivision 1; 18C.425, subdivision 6; 18C.70, subdivision 2; 18G.10, 
1.16 	subdivisions 3, 4, 5; 18H.02, subdivision 20, by adding subdivisions; 18H.06, 
1.17 	subdivision 2; 18H.07; 18H.17; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 
1.18 	3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09; 
1.19 	18J.11, subdivision 1, by adding a subdivision; 21.89, subdivision 2; 21.891, 
1.20 	subdivisions 2, 5; 25.341, subdivision 2; 25.39, subdivisions 1, 1a; 32.075; 
1.21 	32.105; 41B.03, subdivision 6, by adding a subdivision; 41B.04, subdivision 17; 
1.22 	41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046, subdivision 5; 
1.23 	41B.047, subdivisions 1, as amended, 3, as amended, 4, as amended; 41B.048, 
1.24 	subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056, 
1.25 	subdivision 2; 41B.06; 135A.52, by adding a subdivision; 375.30, subdivision 2; 
1.26 	500.24, subdivision 4; 583.215; Laws 2014, chapter 312, article 12, section 3; 
1.27 	proposing coding for new law in Minnesota Statutes, chapters 18C; 28A; 41A; 
1.28 	41B; proposing coding for new law as Minnesota Statutes, chapter 18K; repealing 
1.29 	Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9, 10; 116V.03.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	AGRICULTURE APPROPRIATIONS

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

2.8				APPROPRIATIONS
	
2.9				Available for the Year
	
2.10				Ending June 30
	
2.11					2016
		2017

2.12	Sec. 2. DEPARTMENT OF AGRICULTURE

2.13	Subdivision 1.Total Appropriation
 	$   
	41,485,000
	$   
	45,537,000

2.14	Appropriations by Fund
	
2.15		2016
	2017
	
2.16	General 
	40,907,000  
	44,959,000
	
2.17	Remediation
	388,000
	388,000
	
2.18	Agricultural
	190,000
	190,000
	
2.19 	The amounts that may be spent for each 
2.20 	purpose are specified in the following 
2.21 	subdivisions.

2.22	Subd. 2.Protection Services 
 		16,452,000 
		16,402,000

2.23	Appropriations by Fund
	
2.24		2016
	2017
	
2.25	General 
	15,874,000 
	15,824,000
	
2.26	Agricultural
	190,000
	190,000
	
2.27	Remediation
	388,000
	388,000
	
2.28 	$25,000 the first year and $25,000 the second 
2.29 	year are to develop and maintain cottage 
2.30 	food license exemption outreach and training 
2.31 	materials.
2.32 	$75,000 the first year is for the commissioner, 
2.33 	in consultation with the Northeast Regional 
2.34 	Corrections Center and the United Food 
2.35 	and Commercial Workers, to study and 
2.36 	provide recommendations for upgrading the 
3.1 	existing processing facility on the campus of 
3.2 	the Northeast Regional Corrections Center 
3.3 	into a USDA-certified food processing 
3.4 	facility. The commissioner shall report these 
3.5 	recommendations to the chairs of the house 
3.6 	of representatives and senate committees 
3.7 	with jurisdiction over agriculture finance by 
3.8 	March 15, 2016.
3.9 	$75,000 the second year is for a coordinator 
3.10 	for the correctional facility vocational 
3.11 	training pilot program.
3.12 	$388,000 the first year and $388,000 the 
3.13 	second year are from the remediation fund 
3.14 	for administrative funding for the voluntary 
3.15 	cleanup program.
3.16 	$225,000 the first year and $175,000 
3.17 	the second year are for compensation 
3.18 	for destroyed or crippled animals under 
3.19 	Minnesota Statutes, section 3.737. This 
3.20 	appropriation may be spent to compensate 
3.21 	for animals that were destroyed or crippled 
3.22 	during fiscal years 2014 and 2015. If the 
3.23 	amount in the first year is insufficient, the 
3.24 	amount in the second year is available in the 
3.25 	first year.
3.26 	$125,000 the first year and $125,000 the 
3.27 	second year are for compensation for crop 
3.28 	damage under Minnesota Statutes, section 
3.29 	3.7371. If the amount in the first year is 
3.30 	insufficient, the amount in the second year is 
3.31 	available in the first year. 
3.32 	If the commissioner determines that claims 
3.33 	made under Minnesota Statutes, section 
3.34 	3.737 or 3.7371, are unusually high, amounts 
3.35 	appropriated for either program may be 
4.1 	transferred to the appropriation for the other 
4.2 	program.
4.3 	$70,000 the first year and $70,000 the second 
4.4 	year are for additional cannery inspections.
4.5 	$100,000 the first year and $100,000 the 
4.6 	second year are for increased oversight of 
4.7 	delegated local health boards.
4.8 	$100,000 the first year and $100,000 the 
4.9 	second year are to decrease the turnaround 
4.10 	time for retail food handler plan reviews.
4.11 	$1,024,000 the first year and $1,024,000 the 
4.12 	second year are to streamline the retail food 
4.13 	safety regulatory and licensing experience 
4.14 	for regulated businesses and to decrease the 
4.15 	inspection delinquency rate.
4.16 	$1,350,000 the first year and $1,350,000 the 
4.17 	second year are for additional inspections of 
4.18 	food manufacturers and wholesalers.
4.19 	$150,000 the first year and $150,000 the 
4.20 	second year are for additional funding for 
4.21 	dairy inspection services.
4.22 	$150,000 the first year and $150,000 the 
4.23 	second year are for additional funding for 
4.24 	laboratory services operations.
4.25 	$250,000 the first year and $250,000 
4.26 	the second year are for additional meat 
4.27 	inspection services, including inspections 
4.28 	provided under the correctional facility 
4.29 	vocational training pilot program.
4.30 	Notwithstanding Minnesota Statutes, section 
4.31 	18B.05, $90,000 the first year and $90,000 
4.32 	the second year are from the pesticide 
4.33 	regulatory account in the agricultural fund 
5.1 	for an increase in the operating budget for 
5.2 	the Laboratory Services Division.
5.3 	$100,000 the first year and $100,000 the 
5.4 	second year are from the pesticide regulatory 
5.5 	account in the agricultural fund to update 
5.6 	and modify applicator education and training 
5.7 	materials.

5.8
5.9	Subd. 3.Agricultural Marketing and 
Development
 		3,973,000
		3,873,000
	
5.10 	The commissioner may provide one-stop 
5.11 	access for farmers in need of information or 
5.12 	assistance to obtain or renew licenses, meet 
5.13 	state regulatory requirements, or resolve 
5.14 	disputes with state agencies.
5.15 	The commissioner must provide outreach 
5.16 	to urban farmers regarding the department's 
5.17 	financial and technical assistance programs 
5.18 	and must assist urban farmers in applying for 
5.19 	assistance.
5.20 	$100,000 the first year is to (1) enhance the 
5.21 	commissioner's efforts to identify existing 
5.22 	and emerging opportunities for Minnesota's 
5.23 	agricultural producers and processors to 
5.24 	export their products to Cuba, consistent with 
5.25 	federal law, and (2) effectively communicate 
5.26 	these opportunities to the producers and 
5.27 	processors.
5.28 	$186,000 the first year and $186,000 the 
5.29 	second year are for transfer to the Minnesota 
5.30 	grown account and may be used as grants 
5.31 	for Minnesota grown promotion under 
5.32 	Minnesota Statutes, section 17.102. Grants 
5.33 	may be made for one year. Notwithstanding 
5.34 	Minnesota Statutes, section 16A.28, the 
5.35 	appropriations encumbered under contract 
6.1 	on or before June 30, 2017, for Minnesota 
6.2 	grown grants in this paragraph are available 
6.3 	until June 30, 2019.
6.4 	$634,000 the first year and $634,000 the 
6.5 	second year are for continuation of the dairy 
6.6 	development and profitability enhancement 
6.7 	and dairy business planning grant programs 
6.8 	established under Laws 1997, chapter 
6.9 	216, section 7, subdivision 2, and Laws 
6.10 	2001, First Special Session chapter 2, 
6.11 	section 9, subdivision 2. The commissioner 
6.12 	may allocate the available sums among 
6.13 	permissible activities, including efforts to 
6.14 	improve the quality of milk produced in the 
6.15 	state, in the proportions that the commissioner 
6.16 	deems most beneficial to Minnesota's dairy 
6.17 	farmers. The commissioner must submit 
6.18 	a detailed accomplishment report and 
6.19 	a work plan detailing future plans for, 
6.20 	and anticipated accomplishments from, 
6.21 	expenditures under this program to the 
6.22 	chairs and ranking minority members of the 
6.23 	legislative committees with jurisdiction over 
6.24 	agriculture policy and finance on or before 
6.25 	the start of each fiscal year. If significant 
6.26 	changes are made to the plans in the course 
6.27 	of the year, the commissioner must notify the 
6.28 	chairs and ranking minority members.
6.29 	The commissioner may use funds 
6.30 	appropriated in this subdivision for annual 
6.31 	cost-share payments to resident farmers 
6.32 	or entities that sell, process, or package 
6.33 	agricultural products in this state for the costs 
6.34 	of organic certification. The commissioner 
6.35 	may allocate these funds for assistance for 
7.1 	persons transitioning from conventional to 
7.2 	organic agriculture.

7.3
7.4	Subd. 4.Agriculture, Bioenergy, and 
Bioproduct Advancement
 		14,993,000  
		19,010,000
	
7.5 	$4,483,000 the first year and $8,500,000 the 
7.6 	second year are for transfer to the agriculture 
7.7 	research, education, extension, and 
7.8 	technology transfer account under Minnesota 
7.9 	Statutes, section 41A.14, subdivision 3. The 
7.10 	transfer in this paragraph includes money for 
7.11 	plant breeders at the University of Minnesota 
7.12 	for wild rice, potatoes, and grapes. Of these 
7.13 	amounts, at least $600,000 each year is for 
7.14 	agriculture rapid response under Minnesota 
7.15 	Statutes, section 41A.14, subdivision 1, 
7.16 	clause (2). Of the amount appropriated in 
7.17 	this paragraph, $1,000,000 each year is 
7.18 	for transfer to the Board of Regents of the 
7.19 	University of Minnesota for research to 
7.20 	determine (1) what is causing avian influenza, 
7.21 	(2) why some fowl are more susceptible, 
7.22 	and (3) prevention measures that can be 
7.23 	taken. Of the amount appropriated in this 
7.24 	paragraph, $2,000,000 each year is for grants 
7.25 	to the Minnesota Agriculture Education 
7.26 	Leadership Council to enhance agricultural 
7.27 	education with priority given to Farm 
7.28 	Business Management challenge grants.
7.29 	To the extent practicable, funds expended 
7.30 	under Minnesota Statutes, section 41A.14, 
7.31 	subdivision 1, clauses (1) and (2), must 
7.32 	supplement and not supplant existing sources 
7.33 	and levels of funding. The commissioner may 
7.34 	use up to 4.5 percent of this appropriation for 
7.35 	costs incurred to administer the program.
8.1 	$10,235,000 the first year and $10,235,000 
8.2 	the second year are for the agricultural 
8.3 	growth, research, and innovation program 
8.4 	in Minnesota Statutes, section 41A.12. No 
8.5 	later than February 1, 2016, and February 
8.6 	1, 2017, the commissioner must report to 
8.7 	the legislative committees with jurisdiction 
8.8 	over agriculture policy and finance regarding 
8.9 	the commissioner's accomplishments 
8.10 	and anticipated accomplishments in 
8.11 	the following areas: facilitating the 
8.12 	start-up, modernization, or expansion of 
8.13 	livestock operations including beginning 
8.14 	and transitioning livestock operations; 
8.15 	developing new markets for Minnesota 
8.16 	farmers by providing more fruits, vegetables, 
8.17 	meat, grain, and dairy for Minnesota school 
8.18 	children; assisting value-added agricultural 
8.19 	businesses to begin or expand, access new 
8.20 	markets, or diversify products; developing 
8.21 	urban agriculture; facilitating the start-up, 
8.22 	modernization, or expansion of other 
8.23 	beginning and transitioning farms including 
8.24 	loans under Minnesota Statutes, section 
8.25 	41B.056; sustainable agriculture on farm 
8.26 	research and demonstration; development or 
8.27 	expansion of food hubs and other alternative 
8.28 	community-based food distribution systems; 
8.29 	and research on bioenergy, biobased content, 
8.30 	or biobased formulated products and other 
8.31 	renewable energy development. The 
8.32 	commissioner may use up to 4.5 percent 
8.33 	of this appropriation for costs incurred to 
8.34 	administer the program. Any unencumbered 
8.35 	balance does not cancel at the end of the first 
8.36 	year and is available for the second year. 
9.1 	Notwithstanding Minnesota Statutes, section 
9.2 	16A.28, the appropriations encumbered 
9.3 	under contract on or before June 30, 2017, for 
9.4 	agricultural growth, research, and innovation 
9.5 	grants are available until June 30, 2019.
9.6 	The commissioner may use funds 
9.7 	appropriated for the agricultural growth, 
9.8 	research, and innovation program as provided 
9.9 	in this paragraph. The commissioner may 
9.10 	award grants to owners of Minnesota 
9.11 	facilities producing bioenergy, biobased 
9.12 	content, or a biobased formulated product; 
9.13 	to organizations that provide for on-station, 
9.14 	on-farm field scale research and outreach to 
9.15 	develop and test the agronomic and economic 
9.16 	requirements of diverse strands of prairie 
9.17 	plants and other perennials for bioenergy 
9.18 	systems; or to certain nongovernmental 
9.19 	entities. For the purposes of this paragraph, 
9.20 	"bioenergy" includes transportation fuels 
9.21 	derived from cellulosic material, as well as 
9.22 	the generation of energy for commercial heat, 
9.23 	industrial process heat, or electrical power 
9.24 	from cellulosic materials via gasification or 
9.25 	other processes. Grants are limited to 50 
9.26 	percent of the cost of research, technical 
9.27 	assistance, or equipment related to bioenergy, 
9.28 	biobased content, or biobased formulated 
9.29 	product production or $500,000, whichever 
9.30 	is less. Grants to nongovernmental entities 
9.31 	for the development of business plans and 
9.32 	structures related to community ownership 
9.33 	of eligible bioenergy facilities together may 
9.34 	not exceed $150,000. The commissioner 
9.35 	shall make a good-faith effort to select 
9.36 	projects that have merit and, when taken 
10.1 	together, represent a variety of bioenergy 
10.2 	technologies, biomass feedstocks, and 
10.3 	geographic regions of the state. Projects 
10.4 	must have a qualified engineer provide 
10.5 	certification on the technology and fuel 
10.6 	source. Grantees must provide reports at the 
10.7 	request of the commissioner.
10.8 	Of the amount appropriated for the 
10.9 	agricultural growth, research, and innovation 
10.10 	program in this subdivision, $1,000,000 the 
10.11 	first year and $1,000,000 the second year 
10.12 	are for distribution in equal amounts to each 
10.13 	of the state's county fairs to preserve and 
10.14 	promote Minnesota agriculture.
10.15 	Of the amount appropriated for the 
10.16 	agricultural growth, research, and innovation 
10.17 	program in this subdivision, $500,000 in 
10.18 	fiscal year 2016 and $1,500,000 in fiscal 
10.19 	year 2017 are for incentive payments 
10.20 	under Minnesota Statutes, sections 41A.16, 
10.21 	41A.17, and 41A.18. If the appropriation 
10.22 	exceeds the total amount for which all 
10.23 	producers are eligible in a fiscal year, the 
10.24 	balance of the appropriation is available 
10.25 	to the commissioner for the agricultural 
10.26 	growth, research, and innovation program. 
10.27 	Notwithstanding Minnesota Statutes, 
10.28 	section 16A.28, the first year appropriation 
10.29 	is available until June 30, 2017, and the 
10.30 	second year appropriation is available until 
10.31 	June 30, 2018. The commissioner may use 
10.32 	up to 4.5 percent of the appropriation for 
10.33 	administration of the incentive payment 
10.34 	programs.
11.1 	Of the amount appropriated for the 
11.2 	agricultural growth, research, and innovation 
11.3 	program in this subdivision, $250,000 the first 
11.4 	year is for grants to communities to develop 
11.5 	or expand food hubs and other alternative 
11.6 	community-based food distribution 
11.7 	systems. Of this amount, $50,000 is for 
11.8 	the commissioner to consult with existing 
11.9 	food hubs, alternative community-based 
11.10 	food distribution systems, and University 
11.11 	of Minnesota Extension to identify best 
11.12 	practices for use by other Minnesota 
11.13 	communities. No later than December 15, 
11.14 	2015, the commissioner must report to the 
11.15 	legislative committees with jurisdiction over 
11.16 	agriculture and health regarding the status of 
11.17 	emerging alternative community-based food 
11.18 	distribution systems in the state along with 
11.19 	recommendations to eliminate any barriers to 
11.20 	success. This is a onetime appropriation.
11.21 	$250,000 the first year and $250,000 the 
11.22 	second year are for grants that enable 
11.23 	retail petroleum dispensers to dispense 
11.24 	biofuels to the public in accordance with the 
11.25 	biofuel replacement goals established under 
11.26 	Minnesota Statutes, section 239.7911. A 
11.27 	retail petroleum dispenser selling petroleum 
11.28 	for use in spark ignition engines for vehicle 
11.29 	model years after 2000 is eligible for grant 
11.30 	money under this paragraph if the retail 
11.31 	petroleum dispenser has no more than 15 
11.32 	retail petroleum dispensing sites and each 
11.33 	site is located in Minnesota. The grant 
11.34 	money received under this paragraph must 
11.35 	be used for the installation of appropriate 
11.36 	technology that uses fuel dispensing 
12.1 	equipment appropriate for at least one fuel 
12.2 	dispensing site to dispense gasoline that is 
12.3 	blended with 15 percent of agriculturally 
12.4 	derived, denatured ethanol, by volume, and 
12.5 	appropriate technical assistance related to 
12.6 	the installation. A grant award must not 
12.7 	exceed 85 percent of the cost of the technical 
12.8 	assistance and appropriate technology, 
12.9 	including remetering of and retrofits for 
12.10 	retail petroleum dispensers and replacement 
12.11 	of petroleum dispenser projects. The 
12.12 	commissioner may use up to $35,000 of this 
12.13 	appropriation for administrative expenses. 
12.14 	The commissioner shall cooperate with 
12.15 	biofuel stakeholders in the implementation 
12.16 	of the grant program. The commissioner 
12.17 	must report to the legislative committees 
12.18 	with jurisdiction over agriculture policy and 
12.19 	finance by February 1 each year, detailing 
12.20 	the number of grants awarded under this 
12.21 	paragraph and the projected effect of the grant 
12.22 	program on meeting the biofuel replacement 
12.23 	goals under Minnesota Statutes, section 
12.24 	239.7911. These are onetime appropriations.
12.25 	$25,000 the first year and $25,000 the second 
12.26 	year are for grants to the Southern Minnesota 
12.27 	Initiative Foundation to promote local foods 
12.28 	through an annual event that raises public 
12.29 	awareness of local foods and connects local 
12.30 	food producers and processors with potential 
12.31 	buyers.

12.32
12.33	Subd. 5.Administration and Financial 
Assistance
 		6,067,000
		6,252,000
	
12.34 	$150,000 the first year and $150,000 the 
12.35 	second year are for grants to the Center for 
12.36 	Rural Policy and Development.
13.1 	The base for the farm-to-foodshelf program 
13.2 	in fiscal years 2018 and 2019 is $1,100,000 
13.3 	each year.
13.4 	$25,000 the first year is for the livestock 
13.5 	industry study.
13.6 	$47,000 the first year and $47,000 the second 
13.7 	year are for the Northern Crops Institute. 
13.8 	These appropriations may be spent to 
13.9 	purchase equipment.
13.10 	$18,000 the first year and $18,000 the 
13.11 	second year are for grants to the Minnesota 
13.12 	Livestock Breeders Association.
13.13 	$235,000 the first year and $235,000 the 
13.14 	second year are for grants to the Minnesota 
13.15 	Agricultural Education and Leadership 
13.16 	Council for programs of the council under 
13.17 	Minnesota Statutes, chapter 41D.
13.18 	$474,000 the first year and $474,000 the 
13.19 	second year are for payments to county and 
13.20 	district agricultural societies and associations 
13.21 	under Minnesota Statutes, section 38.02, 
13.22 	subdivision 1. Aid payments to county and 
13.23 	district agricultural societies and associations 
13.24 	shall be disbursed no later than July 15 of 
13.25 	each year. These payments are the amount of 
13.26 	aid from the state for an annual fair held in 
13.27 	the previous calendar year.
13.28 	$1,000 the first year and $1,000 the second 
13.29 	year are for grants to the Minnesota State 
13.30 	Poultry Association.
13.31 	$108,000 the first year and $108,000 the 
13.32 	second year are for annual grants to the 
13.33 	Minnesota Turf Seed Council for basic 
13.34 	and applied research on: (1) the improved 
14.1 	production of forage and turf seed related to 
14.2 	new and improved varieties; and (2) native 
14.3 	plants, including plant breeding, nutrient 
14.4 	management, pest management, disease 
14.5 	management, yield, and viability. The grant 
14.6 	recipient may subcontract with a qualified 
14.7 	third party for some or all of the basic or 
14.8 	applied research.
14.9 	$550,000 the first year and $550,000 the 
14.10 	second year are for grants to Second Harvest 
14.11 	Heartland on behalf of Minnesota's six 
14.12 	Second Harvest food banks for the purchase 
14.13 	of milk for distribution to Minnesota's food 
14.14 	shelves and other charitable organizations 
14.15 	that are eligible to receive food from the food 
14.16 	banks. Milk purchased under the grants must 
14.17 	be acquired from Minnesota milk processors 
14.18 	and based on low-cost bids. The milk must be 
14.19 	allocated to each Second Harvest food bank 
14.20 	serving Minnesota according to the formula 
14.21 	used in the distribution of United States 
14.22 	Department of Agriculture commodities 
14.23 	under The Emergency Food Assistance 
14.24 	Program (TEFAP). Second Harvest 
14.25 	Heartland must submit quarterly reports 
14.26 	to the commissioner on forms prescribed 
14.27 	by the commissioner. The reports must 
14.28 	include, but are not limited to, information 
14.29 	on the expenditure of funds, the amount 
14.30 	of milk purchased, and the organizations 
14.31 	to which the milk was distributed. Second 
14.32 	Harvest Heartland may enter into contracts 
14.33 	or agreements with food banks for shared 
14.34 	funding or reimbursement of the direct 
14.35 	purchase of milk. Each food bank receiving 
14.36 	money from this appropriation may use up to 
15.1 	two percent of the grant for administrative 
15.2 	expenses.
15.3 	$113,000 the first year and $113,000 the 
15.4 	second year are for transfer to the Board of 
15.5 	Trustees of the Minnesota State Colleges 
15.6 	and Universities for statewide mental health 
15.7 	counseling support to farm families and 
15.8 	business operators. South Central College 
15.9 	shall serve as the fiscal agent.
15.10 	$17,000 the first year and $17,000 the 
15.11 	second year are for grants to the Minnesota 
15.12 	Horticultural Society.

15.13	Sec. 3. BOARD OF ANIMAL HEALTH
 	$  
	5,318,000
	$  
	5,384,000

15.14
15.15	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$ 
	3,643,000
	$ 
	3,643,000

15.16 	Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS 
15.17 	AND TRANSFERS.
 15.18 	(a) $3,619,000 is appropriated from the general fund in fiscal year 2016 to the 
15.19 	commissioner of agriculture for avian influenza emergency response activities. The 
15.20 	commissioner may use money appropriated under this paragraph to purchase necessary 
15.21 	euthanasia and composting equipment and to reimburse costs incurred by local units of 
15.22 	government directly related to avian influenza emergency response activities that are not 
15.23 	eligible for federal reimbursement. This appropriation is available the day following final 
15.24 	enactment until June 30, 2017.
15.25 	(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the 
15.26 	Board of Animal Health for avian influenza emergency response activities. The Board 
15.27 	may use money appropriated under this paragraph to purchase necessary euthanasia and 
15.28 	composting equipment. This appropriation is available the day following final enactment 
15.29 	until June 30, 2017.
15.30 	(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the 
15.31 	commissioner of health for avian influenza emergency response activities. This 
15.32 	appropriation is available the day following final enactment until June 30, 2017.
16.1 	(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the 
16.2 	commissioner of natural resources for sampling wild animals to detect and monitor the 
16.3 	avian influenza virus. This appropriation may also be used to conduct serology sampling, 
16.4 	in consultation with the Board of Animal Health and the University of Minnesota Pomeroy 
16.5 	Chair in Avian Health, from birds within a control zone and outside of a control zone. 
16.6 	This appropriation is available the day following final enactment until June 30, 2017.
16.7 	(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the 
16.8 	commissioner of public safety to operate the State Emergency Operation Center in 
16.9 	coordination with the statewide avian influenza response activities. Appropriations 
16.10 	under this paragraph may also be used to support a staff person at the state's agricultural 
16.11 	incident command post in Willmar. This appropriation is available the day following final 
16.12 	enactment until June 30, 2017.
16.13 	(f) The commissioner of management and budget may transfer unexpended balances 
16.14 	from the appropriations in this section to any state agency for operating expenses related 
16.15 	to avian influenza emergency response activities. The commissioner of management and 
16.16 	budget must report each transfer to the chairs and ranking minority members of the senate 
16.17 	Committee on Finance and the house of representatives Committee on Ways and Means.
16.18 	(g) In addition to the transfers required under Laws 2015, chapter 65, article 1, 
16.19 	section 17, no later than September 30, 2015, the commissioner of management and 
16.20 	budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general 
16.21 	fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221, 
16.22 	subdivision 6. This amount is available for avian influenza emergency response activities 
16.23 	as provided in Laws 2015, chapter 65, article 1, section 18.

16.24 	Sec. 6. RURAL FINANCE AUTHORITY; APPROPRIATION.
 16.25 	$10,000,000 is appropriated in fiscal year 2016 from the general fund to the 
16.26 	commissioner of agriculture for transfer to the rural finance authority revolving loan 
16.27 	account under Minnesota Statutes, section 41B.06, for the purposes of disaster recovery 
16.28 	loans under Minnesota Statutes, section 41B.047. This appropriation is available the day 
16.29 	following final enactment until June 30, 2017.

16.30 	Sec. 7. AVIAN INFLUENZA; FEDERAL FUNDS APPROPRIATION AND 
16.31 	REPORTING.
 16.32 	All federal money received in fiscal years 2015 through 2017 by the Board of Animal 
16.33 	Health or the commissioner of agriculture, health, natural resources, or public safety to 
16.34 	address avian influenza is appropriated in the fiscal year when it is received. Before 
17.1 	spending federal funds appropriated in this section, the commissioner of management and 
17.2 	budget shall report the anticipated federal funds appropriated under this section and their 
17.3 	intended purpose to the Legislative Advisory Commission, consistent with the urgent 
17.4 	federal funds request procedure under Minnesota Statutes, section 3.3005, subdivision 
17.5 	4. By January 15, 2018, the commissioner of management and budget shall report the 
17.6 	actual federal funds received and appropriated under this section and their actual use 
17.7 	to the Legislative Advisory Commission.

17.8 	Sec. 8. EFFECTIVE DATE.
 17.9 	Sections 5 to 7 are effective the day following final enactment.

17.10 	ARTICLE 2
17.11 	AGRICULTURE POLICY

17.12 	Section 1. Minnesota Statutes 2014, section 3.737, is amended by adding a subdivision 
17.13 	to read:
17.14 		Subd. 6.Federal reimbursement. The commissioner must pursue federal 
17.15 	reimbursement for any compensation payment issued under this section while:
17.16 	(1) the United States Fish and Wildlife Service lists the Minnesota population of gray 
17.17 	wolves as endangered and threatened wildlife under the federal Endangered Species Act; or
17.18 	(2) the federal government otherwise prohibits livestock producers from protecting 
17.19 	their livestock from wolf depredation.

17.20 	Sec. 2. Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
17.21 		Subdivision 1.Department of Agriculture data. (a) Loan and grant applicant 
17.22 	data. The following data on applicants, collected by the Department of Agriculture in its 
17.23 	sustainable agriculture revolving loan and grant programsprogram under sections 17.115 
17.24 	and section17.116, are private or nonpublic: nonfarm income; credit history; insurance 
17.25 	coverage; machinery and equipment list; financial information; and credit information 
17.26 	requests.
17.27 	(b) Farm advocate data. The following data supplied by farmer clients to 
17.28 	Minnesota farm advocates and to the Department of Agriculture are private data on 
17.29 	individuals: financial history, including listings of assets and debts, and personal and 
17.30 	emotional status information.

17.31 	Sec. 3. Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
18.1 		Subd. 28.Structural pest. "Structural pest" means a an invertebrate pest, other 
18.2 	than a plant, or commensal rodent in, on, under, or near a structure such as a residential 
18.3 	or commercial building.

18.4 	Sec. 4. Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
18.5 		Subd. 29.Structural pest control. "Structural pest control" means the control of 
18.6 	any structural pest through the use of a device, a procedure, or application of pesticides or 
18.7 	through other means in or around a building or other structures, including trucks, boxcars, 
18.8 	ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a 
18.9 	device, a procedure, or application of a pesticide.

18.10 	Sec. 5. Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:
18.11 		Subdivision 1.Establishment. A pesticide regulatory account is established in the 
18.12 	agricultural fund. Fees, assessments, and penalties collected under this chapter must 
18.13 	be deposited in the agricultural fund and credited to the pesticide regulatory account. 
18.14 	Money in the account, including interest, is appropriated to the commissioner for the 
18.15 	administration and enforcement of this chapter and up to $20,000 per fiscal year may also 
18.16 	be used by the commissioner for purposes of section 18H.14, paragraph (e).

18.17 	Sec. 6. Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
18.18 		Subdivision 1.Requirement. (a) A person may not engage in structural pest 
18.19 	control applications:
18.20 	(1) for hire without a structural pest control license; and
18.21 	(2) as a sole proprietorship, company, partnership, or corporation unless the person 
18.22 	is or employs a licensed master in structural pest control operations.
18.23 	(b) A structural pest control licensee must have a valid license identification card 
18.24 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
18.25 	display it upon demand by an authorized representative of the commissioner or a law 
18.26 	enforcement officer. The license identification card must contain information required by 
18.27 	the commissioner.
18.28 	(c) Notwithstanding the licensing requirements of this subdivision, a person may 
18.29 	control the following nuisance or economically damaging wild animals, by trapping, 
18.30 	without a structural pest control license:
18.31 	(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license 
18.32 	or special permit from the commissioner of natural resources; and
18.33 	(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

19.1 	Sec. 7. Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
19.2 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
19.3 	without a commercial applicator license for the appropriate use categories or a structural 
19.4 	pest control license.
19.5 	(b) A commercial applicator licensee must have a valid license identification card 
19.6 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
19.7 	display it upon demand by an authorized representative of the commissioner or a law 
19.8 	enforcement officer. The commissioner shall prescribe the information required on the 
19.9 	license identification card.

19.10 	Sec. 8. Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
19.11 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
19.12 	certified private applicator, or licensed structural pest control applicator, a person, 
19.13 	including a government employee, may not purchase or use a restricted use pesticide in 
19.14 	performance of official duties without having a noncommercial applicator license for an 
19.15 	appropriate use category.
19.16 	(b) A licensee must have a valid license identification card when applying pesticides 
19.17 	and must display it upon demand by an authorized representative of the commissioner 
19.18 	or a law enforcement officer. The license identification card must contain information 
19.19 	required by the commissioner.

19.20 	Sec. 9. Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:
19.21 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in 
19.22 	the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411
19.23 	shall pay the inspection fee to the commissioner.
19.24 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
19.25 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
19.26 	exempted under section 18C.421, subdivision 1, paragraph (b).
19.27 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
19.28 	amendments, or plant amendments sold and used in this state must pay an inspection fee 
19.29 	of 30 39 cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer, 
19.30 	soil amendment, and plant amendment sold or distributed in this state, with a minimum 
19.31 	of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner 
19.32 	must deposit all revenue from the additional 40 cent per ton fee in the agricultural 
19.33 	fertilizer research and education account in section 18C.80. Products sold or distributed to 
20.1 	manufacturers or exchanged between them are exempt from the inspection fee imposed by 
20.2 	this subdivision if the products are used exclusively for manufacturing purposes.
20.3 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
20.4 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
20.5 	of three years.

20.6 	Sec. 10. Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:
20.7 		Subd. 2.Powers and duties. The council must review applications and select 
20.8 	projects to receive agricultural fertilizer research and education program grants, as 
20.9 	authorized in section 18C.71. The council must establish a program to provide grants to 
20.10 	research, education, and technology transfer projects related to agricultural fertilizer, soil 
20.11 	amendments, and plant amendments. For the purpose of this section, "fertilizer" includes 
20.12 	soil amendments and plant amendments, but does not include vegetable or animal manures 
20.13 	that are not manipulated. The commissioner is responsible for all fiscal and administrative 
20.14 	duties in the first year and may use up to eight percent of program revenue to offset costs 
20.15 	incurred. No later than October 1, 2007, the commissioner must provide the council with 
20.16 	an estimate of the annual costs the commissioner would incur in administering the program.

20.17 	Sec. 11. [18C.80] AGRICULTURAL FERTILIZER RESEARCH AND 
20.18 	EDUCATION ACCOUNT.
20.19 		Subdivision 1.Account; appropriation. An agricultural fertilizer research 
20.20 	and education account is established in the agricultural fund. Money in the account, 
20.21 	including interest earned, is appropriated to the commissioner for grants determined by the 
20.22 	Minnesota Agricultural Fertilizer Research and Education Council under section 18C.71. 
20.23 	The commissioner may use up to $80,000 each fiscal year for direct costs incurred to 
20.24 	provide fiscal and administrative support to the council as required under section 18C.70, 
20.25 	subdivision 2. The commissioner may also recover associated indirect costs from the 
20.26 	account as required under section 16A.127.
20.27 		Subd. 2.Expiration. This section expires June 30, 2020.

20.28 	Sec. 12. Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
20.29 		Subd. 3.Cooperative agreements. The commissioner may enter into cooperative 
20.30 	agreements with federal and state agencies for administration of the export certification 
20.31 	program. An exporter of plants or plant products desiring to originate shipments from 
20.32 	Minnesota to a foreign country requiring a phytosanitary certificate or export certificate 
20.33 	must submit an application to the commissioner.

21.1 	Sec. 13. Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
21.2 		Subd. 4.Phytosanitary and export certificates. An exporter of plants or plant 
21.3 	products desiring to originate shipments from Minnesota to a foreign country requiring 
21.4 	a phytosanitary certificate or export certificate must submit an application to the 
21.5 	commissioner. Application for phytosanitary certificates or export certificates must be 
21.6 	made on forms provided or approved by the commissioner. The commissioner shall may 
21.7 	conduct inspections of plants, plant products, or facilities for persons that have applied for 
21.8 	or intend to apply for a phytosanitary certificate or export certificate from the commissioner. 
21.9 	Inspections must include one or more of the following as requested or required:
21.10 	(1) an inspection of the plants or plant products intended for export under a 
21.11 	phytosanitary certificate or export certificate;
21.12 	(2) field inspections of growing plants to determine presence or absence of plant 
21.13 	diseases, if necessary;
21.14 	(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
21.15 	(4) observation and evaluation of procedures and facilities utilized in handling 
21.16 	plants and plant products, if necessary; and
21.17 	(5) review of United States Department of Agriculture, Federal Grain Inspection 
21.18 	Service Official Export Grain Inspection Certificate logs.
21.19 	The commissioner may issue a phytosanitary certificate or export certificate if the 
21.20 	plants or plant products satisfactorily meet the requirements of the importing foreign 
21.21 	country and the United States Department of Agriculture requirements. The requirements 
21.22 	of the destination countries must be met by the applicant.

21.23 	Sec. 14. Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:
21.24 		Subd. 5.Certificate fees. (a) The commissioner shall assess the fees in paragraphs 
21.25 	(b) to (f) fees sufficient to recover all costs for the inspection, service, and work performed 
21.26 	in carrying out the issuance of a phytosanitary certificate or export certificate. The 
21.27 	inspection fee must be based on mileage and inspection time.
21.28 	(b) Mileage charge: current United States Internal Revenue Service mileage rate.
21.29 	(c) Inspection time: $50 per hour minimum or fee necessary to cover department 
21.30 	costs. Inspection time includes the driving time to and from the location in addition to 
21.31 	the time spent conducting the inspection.
21.32 	(d) (b) If laboratory analysis or other technical analysis is required to issue a 
21.33 	certificate, the commissioner must set and collect the fee to recover this additional cost.
21.34 	(e) (c) The certificate fee for product value greater than $250: is $75 or a fee amount, 
21.35 	not to exceed $300, that is sufficient to recover all processing costs for each phytosanitary 
22.1 	or export certificate issued for any single shipment valued at more than $250 in addition to 
22.2 	any mileage or inspection time charges that are assessed.
22.3 	(f) Certificate fee for product value less than $250: $25 for each phytosanitary or 
22.4 	export certificate issued for any single shipment valued at less than $250 in addition to 
22.5 	any mileage or inspection time charges that are assessed.
22.6 	(g) (d) For services provided for in subdivision 7 that are goods and services 
22.7 	provided for the direct and primary use of a private individual, business, or other entity, 
22.8 	the commissioner must set and collect the fees to cover the cost of the services provided.

22.9 	Sec. 15. Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
22.10 		Subd. 20.Nursery stock. "Nursery stock" means a plant intended for planting or 
22.11 	propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts, 
22.12 	cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all 
22.13 	viable parts of these plants. Nursery stock does not include:
22.14 	(1) field and forage crops or sod;
22.15 	(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;
22.16 	(3) vegetable plants, bulbs, or tubers;
22.17 	(4) cut flowers, unless stems or other portions are intended for propagation;
22.18 	(5) annuals; or
22.19 	(6) Christmas trees.

22.20 	Sec. 16. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
22.21 	to read:
22.22 		Subd. 32a.Sod. "Sod" means the upper portion of soil that contains the roots of 
22.23 	grasses and the living grass plants.

22.24 	Sec. 17. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
22.25 	to read:
22.26 		Subd. 35.Tropical plant. "Tropical plant" means a plant that has a United States 
22.27 	Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual 
22.28 	minimum hardiness temperature of -9 degrees Fahrenheit.

22.29 	Sec. 18. Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
22.30 		Subd. 2.Occasional sales. (a) An individual may offer nursery stock for sale and be 
22.31 	exempt from the requirement to obtain a nursery stock dealer certificate if:
22.32 	(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
23.1 	(2) all nursery stock sold or distributed by the individual is intended for planting 
23.2 	in Minnesota;
23.3 	(3) all nursery stock purchased or procured for resale or distribution was grown in 
23.4 	Minnesota and has been certified by the commissioner; and
23.5 	(4) the individual conducts sales or distributions of nursery stock on ten or fewer 
23.6 	days in a calendar year.
23.7 	(b) The commissioner may prescribe the conditions of the exempt nursery sales under 
23.8 	this subdivision and may conduct routine inspections of the nursery stock offered for sale.

23.9 	Sec. 19. Minnesota Statutes 2014, section 18H.07, is amended to read:
23.10 	18H.07 FEE SCHEDULE.
23.11 		Subdivision 1.Establishment of fees. The commissioner shall establish fees 
23.12 	sufficient to allow for the administration and enforcement of this chapter and rules adopted 
23.13 	under this chapter, including the portion of general support costs and statewide indirect 
23.14 	costs of the agency attributable to that function, with a reserve sufficient for up to six 
23.15 	months. The commissioner shall review the fee schedule annually in consultation with 
23.16 	the Minnesota Nursery and Landscape Advisory Committee. For the certificate year 
23.17 	beginning January 1, 2006, the fees are as described in this section.
23.18 		Subd. 2.Nursery stock grower certificate. (a) A nursery stock grower must 
23.19 	pay an annual fee based on the area of all acreage on which nursery stock is grown for 
23.20 	certification as follows:
23.21 	(1) less than one-half acre, $150;
23.22 	(2) from one-half acre to two acres, $200;
23.23 	(3) over two acres up to five acres, $300;
23.24 	(4) over five acres up to ten acres, $350;
23.25 	(5) over ten acres up to 20 acres, $500;
23.26 	(6) over 20 acres up to 40 acres, $650;
23.27 	(7) over 40 acres up to 50 acres, $800;
23.28 	(8) over 50 acres up to 200 acres, $1,100;
23.29 	(9) over 200 acres up to 500 acres, $1,500; and
23.30 	(10) over 500 acres, $1,500 plus $2 for each additional acre.
23.31 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due 
23.32 	must be charged for each month, or portion thereof, that the fee is delinquent up to a 
23.33 	maximum of 30 percent for any application for renewal not postmarked by December 31 
23.34 	of the current year.
24.1 	(c) A nursery stock grower found operating without a valid nursery stock grower 
24.2 	certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 
24.3 	commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 
24.4 	owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.
24.5 		Subd. 3.Nursery stock dealer certificate. (a) A nursery stock dealer must pay an 
24.6 	annual fee based on the dealer's gross sales of certified nursery stock per location during 
24.7 	the most recent certificate year. A certificate applicant operating for the first time must pay 
24.8 	the minimum fee. The fees per sales location are:
24.9 	(1) gross sales up to $5,000, $150;
24.10 	(2) gross sales over $5,000 up to $20,000, $175;
24.11 	(3) gross sales over $20,000 up to $50,000, $300;
24.12 	(4) gross sales over $50,000 up to $75,000, $425;
24.13 	(5) gross sales over $75,000 up to $100,000, $550;
24.14 	(6) gross sales over $100,000 up to $200,000, $675; and
24.15 	(7) gross sales over $200,000, $800.
24.16 	(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due 
24.17 	must be charged for each month, or portion thereof, that the fee is delinquent up to a 
24.18 	maximum of 30 percent for any application for renewal not postmarked by December 31 
24.19 	of the current year.
24.20 	(c) A nursery stock dealer found operating without a valid nursery stock dealer 
24.21 	certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the 
24.22 	commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee 
24.23 	owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.
24.24 		Subd. 4.Reinspection; additional or optional inspection fees. If a reinspection is 
24.25 	required or an additional inspection is needed or requested a fee must be assessed based 
24.26 	on mileage and inspection time as follows:
24.27 	(1) mileage must be charged at the current United States Internal Revenue Service 
24.28 	reimbursement rate; and
24.29 	(2) inspection time must be charged at the rate of $50 per hour a rate sufficient to 
24.30 	recover all inspection costs, including the driving time to and from the location in addition 
24.31 	to the time spent conducting the inspection.

24.32 	Sec. 20. Minnesota Statutes 2014, section 18H.17, is amended to read:
24.33 	18H.17 NURSERY AND PHYTOSANITARY ACCOUNT.
24.34 	A nursery and phytosanitary account is established in the state treasury. The fees 
24.35 	and penalties collected under this chapter and interest attributable to money in the account 
25.1 	must be deposited in the state treasury and credited to the nursery and phytosanitary 
25.2 	account in the agricultural fund. Money in the account, including interest earned, is 
25.3 	annually appropriated to the commissioner for the administration and enforcement for 
25.4 	this chapter. The commissioner may spend no more than $20,000 from the account each 
25.5 	fiscal year for purposes of section 18H.14, paragraph (e).

25.6 	Sec. 21. Minnesota Statutes 2014, section 18J.01, is amended to read:
25.7 	18J.01 DEFINITIONS.
25.8 	(a) The definitions in sections 18G.02, 18H.02, 18K.02, 27.01, 223.16, 231.01, 
25.9 	and 232.21 apply to this chapter.
25.10 	(b) For purposes of this chapter, "associated rules" means rules adopted under this 
25.11 	chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections 21.80 to 21.92.

25.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.13 	Sec. 22. Minnesota Statutes 2014, section 18J.02, is amended to read:
25.14 	18J.02 DUTIES OF COMMISSIONER.
25.15 	The commissioner shall administer and enforce this chapter, chapters 18G, 18H, 
25.16 	18K, 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

25.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.18 	Sec. 23. Minnesota Statutes 2014, section 18J.03, is amended to read:
25.19 	18J.03 CIVIL LIABILITY.
25.20 	A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, 
25.21 	or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or 
25.22 	associated rules by the person's employee or agent.

25.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.24 	Sec. 24. Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:
25.25 		Subdivision 1.Access and entry. The commissioner, upon presentation of official 
25.26 	department credentials, must be granted immediate access at reasonable times to sites 
25.27 	where a person manufactures, distributes, uses, handles, disposes of, stores, or transports 
25.28 	seeds, plants, grain, household goods, general merchandise, produce, or other living or 
25.29 	nonliving products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231, 
25.30 	or 232; sections 21.80 to 21.92; or associated rules.

26.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.2 	Sec. 25. Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:
26.3 		Subd. 2.Purpose of entry. (a) The commissioner may enter sites for:
26.4 	(1) inspection of inventory and equipment for the manufacture, storage, handling, 
26.5 	distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27, 
26.6 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.7 	(2) sampling of sites, seeds, plants, products, grain, household goods, general 
26.8 	merchandise, produce, or other living or nonliving objects that are manufactured, stored, 
26.9 	distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H, 
26.10 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.11 	(3) inspection of records related to the manufacture, distribution, storage, handling, 
26.12 	or disposal of seeds, plants, products, grain, household goods, general merchandise, 
26.13 	produce, or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27, 
26.14 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.15 	(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
26.16 	sections 21.80 to 21.92; or associated rules; or
26.17 	(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or 
26.18 	232; sections 21.80 to 21.92; or associated rules.
26.19 	(b) The commissioner may enter any public or private premises during or after 
26.20 	regular business hours without notice of inspection when a suspected violation of chapter 
26.21 	18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may 
26.22 	threaten public health or the environment.

26.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.24 	Sec. 26. Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:
26.25 		Subd. 3.Notice of inspection samples and analyses. (a) The commissioner shall 
26.26 	provide the owner, operator, or agent in charge with a receipt describing any samples 
26.27 	obtained. If requested, the commissioner shall split any samples obtained and provide 
26.28 	them to the owner, operator, or agent in charge. If an analysis is made of the samples, 
26.29 	a copy of the results of the analysis must be furnished to the owner, operator, or agent 
26.30 	in charge within 30 days after an analysis has been performed. If an analysis is not 
26.31 	performed, the commissioner must notify the owner, operator, or agent in charge within 30 
26.32 	days of the decision not to perform the analysis.
26.33 	(b) The sampling and analysis must be done according to methods provided for 
26.34 	under applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 
27.1 	21.80 to 21.92; or associated rules. In cases not covered by those sections and methods 
27.2 	or in cases where methods are available in which improved applicability has been 
27.3 	demonstrated the commissioner may adopt appropriate methods from other sources.

27.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.5 	Sec. 27. Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:
27.6 		Subd. 4.Inspection requests by others. (a) A person who believes that a violation 
27.7 	of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
27.8 	rules has occurred may request an inspection by giving notice to the commissioner of the 
27.9 	violation. The notice must be in writing, state with reasonable particularity the grounds 
27.10 	for the notice, and be signed by the person making the request.
27.11 	(b) If after receiving a notice of violation the commissioner reasonably believes that 
27.12 	a violation has occurred, the commissioner shall make a special inspection in accordance 
27.13 	with the provisions of this section as soon as practicable, to determine if a violation has 
27.14 	occurred.
27.15 	(c) An inspection conducted pursuant to a notice under this subdivision may cover 
27.16 	an entire site and is not limited to the portion of the site specified in the notice. If the 
27.17 	commissioner determines that reasonable grounds to believe that a violation occurred 
27.18 	do not exist, the commissioner must notify the person making the request in writing of 
27.19 	the determination.

27.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.21 	Sec. 28. Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:
27.22 		Subdivision 1.Enforcement required. (a) A violation of chapter 18G, 18H, 18K, 27, 
27.23 	223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.
27.24 	(b) Upon the request of the commissioner, county attorneys, sheriffs, and other 
27.25 	officers having authority in the enforcement of the general criminal laws must take action 
27.26 	to the extent of their authority necessary or proper for the enforcement of chapter 18G, 
27.27 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid 
27.28 	orders, standards, stipulations, and agreements of the commissioner.

27.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.30 	Sec. 29. Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:
27.31 		Subd. 2.Commissioner's discretion. If minor violations of chapter 18G, 18H, 
27.32 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the 
28.1 	commissioner believes the public interest will be best served by a suitable notice of 
28.2 	warning in writing, this section does not require the commissioner to:
28.3 	(1) report the violation for prosecution;
28.4 	(2) institute seizure proceedings; or
28.5 	(3) issue a withdrawal from distribution, stop-sale, or other order.

28.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.7 	Sec. 30. Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:
28.8 		Subd. 6.Agent for service of process. All persons licensed, permitted, registered, 
28.9 	or certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or 
28.10 	associated rules must appoint the commissioner as the agent upon whom all legal process 
28.11 	may be served and service upon the commissioner is deemed to be service on the licensee, 
28.12 	permittee, registrant, or certified person.

28.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.14 	Sec. 31. Minnesota Statutes 2014, section 18J.06, is amended to read:
28.15 	18J.06 FALSE STATEMENT OR RECORD.
28.16 	A person must not knowingly make or offer a false statement, record, or other 
28.17 	information as part of:
28.18 	(1) an application for registration, license, certification, or permit under chapter 18G, 
28.19 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
28.20 	(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
28.21 	sections 21.80 to 21.92; or associated rules; or
28.22 	(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
28.23 	sections 21.80 to 21.92; or associated rules.

28.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.25 	Sec. 32. Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:
28.26 		Subd. 3.Cancellation of registration, permit, license, certification. The 
28.27 	commissioner may cancel or revoke a registration, permit, license, or certification 
28.28 	provided for under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; 
28.29 	or associated rules or refuse to register, permit, license, or certify under provisions of 
28.30 	chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules 
28.31 	if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive 
29.1 	practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, 18K, 27, 
29.2 	223, 231, or 232; sections 21.80 to 21.92; or associated rules.

29.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.4 	Sec. 33. Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:
29.5 		Subd. 4.Service of order or notice. (a) If a person is not available for service of an 
29.6 	order, the commissioner may attach the order to the facility, site, seed or seed container, 
29.7 	plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223, 
29.8 	231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian, 
29.9 	other responsible party, or registrant.
29.10 	(b) The seed, seed container, plant, or other living or nonliving object regulated 
29.11 	under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
29.12 	rules may not be sold, used, tampered with, or removed until released under conditions 
29.13 	specified by the commissioner, by an administrative law judge, or by a court.

29.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.15 	Sec. 34. Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:
29.16 		Subd. 5.Unsatisfied judgments. (a) An applicant for a license, permit, registration, 
29.17 	or certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 
29.18 	232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against 
29.19 	the applicant for damages arising from a violation of those statutes or rules to remain 
29.20 	unsatisfied for a period of more than 30 days.
29.21 	(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this 
29.22 	chapter results in automatic suspension of the license, permit, registration, or certification.

29.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.24 	Sec. 35. Minnesota Statutes 2014, section 18J.09, is amended to read:
29.25 	18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
29.26 	Penalties, cost reimbursements, fees, and other money collected under this chapter 
29.27 	must be deposited into the state treasury and credited to the appropriate nursery and 
29.28 	phytosanitary, industrial hemp, or seed account.

29.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.30 	Sec. 36. Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:
30.1 		Subdivision 1.General violation. Except as provided in subdivisions 2 and, 3, and 
30.2 	4, a person is guilty of a misdemeanor if the person violates this chapter or an order, 
30.3 	standard, stipulation, agreement, or schedule of compliance of the commissioner.

30.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.5 	Sec. 37. Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision 
30.6 	to read:
30.7 		Subd. 4.Controlled substance offenses. Prosecution under this section does not 
30.8 	preclude prosecution under chapter 152.

30.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.10 	Sec. 38. [18K.01] SHORT TITLE.
30.11 	This chapter may be referred to as the "Industrial Hemp Development Act."

30.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.13 	Sec. 39. [18K.02] DEFINITIONS.
30.14 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
30.15 		Subd. 2.Commissioner. "Commissioner" means the commissioner of agriculture.
30.16 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. 
30.17 	and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol 
30.18 	concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not 
30.19 	marijuana as defined in section 152.01, subdivision 9.
30.20 		Subd. 4.Marijuana. "Marijuana" has the meaning given in section 152.01, 
30.21 	subdivision 9.

30.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.23 	Sec. 40. [18K.03] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
30.24 	Industrial hemp is an agricultural crop in this state. A person may possess, transport, 
30.25 	process, sell, or buy industrial hemp that is grown pursuant to this chapter.

30.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.27 	Sec. 41. [18K.04] LICENSING.
30.28 		Subdivision 1.Requirement; issuance; presumption. (a) A person must obtain a 
30.29 	license from the commissioner before growing industrial hemp for commercial purposes. 
31.1 	A person must apply to the commissioner in the form prescribed by the commissioner and 
31.2 	must pay the annual registration and inspection fee established by the commissioner in 
31.3 	accordance with section 16A.1285, subdivision 2. The license application must include 
31.4 	the name and address of the applicant and the legal description of the land area or areas 
31.5 	where industrial hemp will be grown by the applicant.
31.6 	(b) When an applicant has paid the fee and completed the application process to the 
31.7 	satisfaction of the commissioner, the commissioner must issue a license which is valid 
31.8 	until December 31 of the year of application.
31.9 	(c) A person licensed under this section is presumed to be growing industrial hemp 
31.10 	for commercial purposes.
31.11 		Subd. 2.Background check; data classification. The commissioner must require 
31.12 	each first-time applicant for a license to submit to a background investigation conducted 
31.13 	by the Bureau of Criminal Apprehension as a condition of licensure. As part of the 
31.14 	background investigation, the Bureau of Criminal Apprehension must conduct criminal 
31.15 	history checks of Minnesota records and is authorized to exchange fingerprints with the 
31.16 	United States Department of Justice, Federal Bureau of Investigation for the purpose of a 
31.17 	criminal background check of the national files. The cost of the investigation must be paid 
31.18 	by the applicant. Criminal history records provided to the commissioner under this section 
31.19 	must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
31.20 		Subd. 3.Federal requirements. The applicant must demonstrate to the satisfaction 
31.21 	of the commissioner that the applicant has complied with all applicable federal 
31.22 	requirements pertaining to the production, distribution, and sale of industrial hemp.

31.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.24 	Sec. 42. [18K.05] ANNUAL REPORT; SALES NOTIFICATION.
31.25 	(a) Annually, a licensee must file with the commissioner:
31.26 	(1) documentation demonstrating to the commissioner's satisfaction that the seeds 
31.27 	planted by the licensee are of a type and variety that contain no more than three-tenths of 
31.28 	one percent delta-9 tetrahydrocannabinol; and
31.29 	(2) a copy of any contract to grow industrial hemp.
31.30 	(b) Within 30 days, a licensee must notify the commissioner of each sale or 
31.31 	distribution of industrial hemp grown by the licensee including, but not limited to, the 
31.32 	name and address of the person receiving the industrial hemp and the amount of industrial 
31.33 	hemp sold or distributed.

31.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.1 	Sec. 43. [18K.06] RULEMAKING.
32.2 	(a) The commissioner shall adopt rules governing the production, testing, and 
32.3 	licensing of industrial hemp.
32.4 	(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions 
32.5 	governing:
32.6 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
32.7 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
32.8 	(3) the use of background checks results required under section 18K.04 to approve 
32.9 	or deny a license application; and
32.10 	(4) any other provision or procedure necessary to carry out the purposes of this 
32.11 	chapter.
32.12 	(c) Rules issued under this section must be consistent with federal law regarding 
32.13 	the production, distribution, and sale of industrial hemp.

32.14 	EFFECTIVE DATE. This section is effective the day after the federal government 
32.15 	authorizes the commercial production of industrial hemp in this country.

32.16 	Sec. 44. [18K.07] FEES.
32.17 	Fees collected under this chapter must be credited to the industrial hemp account, 
32.18 	which is hereby established in the agricultural fund in the state treasury. Interest earned 
32.19 	in the account accrues to the account. Funds in the industrial hemp account are annually 
32.20 	appropriated to the commissioner to implement and enforce this chapter.

32.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.22 	Sec. 45. [18K.08] DEFENSE FOR POSSESSION OF MARIJUANA. 
32.23 	It is an affirmative defense to a prosecution for the possession of marijuana under 
32.24 	chapter 152 if:
32.25 	(1) the defendant possesses industrial hemp grown pursuant to this chapter; or
32.26 	(2) the defendant has a valid controlled substance registration from the United States 
32.27 	Department of Justice, Drug Enforcement Administration, if required under federal law.

32.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.29 	Sec. 46. [18K.09] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
32.30 		Subdivision 1.Authorized activity. The commissioner may grow or cultivate 
32.31 	industrial hemp pursuant to a pilot program administered by the commissioner to study 
32.32 	the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1) 
33.1 	authorize institutions of higher education to grow or cultivate industrial hemp as part 
33.2 	of the commissioner's pilot program or as is necessary to perform other agricultural, 
33.3 	renewable energy, or academic research; and (2) contract with public or private entities for 
33.4 	testing or other activities authorized under this subdivision. Authorized activity under this 
33.5 	section may include collecting seed from wild hemp sources.
33.6 		Subd. 2.Site registration. Before growing or cultivating industrial hemp pursuant 
33.7 	to this section, each site must be registered with and certified by the commissioner. A 
33.8 	person must register each site annually in the form prescribed by the commissioner and 
33.9 	must pay the annual registration and certification fee established by the commissioner in 
33.10 	accordance with section 16A.1285, subdivision 2.
33.11 		Subd. 3.Rulemaking. The commissioner may adopt rules that govern the pilot 
33.12 	program pursuant to this section and Public Law 113-79.

33.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.14 	Sec. 47. Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
33.15 		Subd. 2.Permits; issuance and revocation. The commissioner shall issue a permit 
33.16 	to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold 
33.17 	for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92. 
33.18 	The categories of permits are as follows:
33.19 	(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each 
33.20 	calendar year, an annual permit issued for a fee established in section 21.891, subdivision 
33.21 	2, paragraph (b);
33.22 	(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for 
33.23 	use in home gardens or household plantings, and initial labelers who sell native grasses 
33.24 	and wildflower seed in commercial or agricultural quantities, an annual permit issued for 
33.25 	a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross 
33.26 	sales from the previous year; and
33.27 	(3) for initial labelers who sell more than 50,000 pounds of agricultural seed 
33.28 	each calendar year, a permanent permit issued for a fee established in section 21.891, 
33.29 	subdivision 2, paragraph (d).
33.30 	In addition, the person shall furnish to the commissioner an itemized statement of all 
33.31 	seeds sold in Minnesota for the periods established by the commissioner. This statement 
33.32 	shall be delivered, along with the payment of the fee, based upon the amount and type 
33.33 	of seed sold, to the commissioner no later than 30 days after the end of each reporting 
33.34 	period. Any person holding a permit shall show as part of the analysis labels or invoices 
33.35 	on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the 
34.1 	commissioner requires. The commissioner may revoke any permit in the event of failure 
34.2 	to comply with applicable laws and rules.

34.3 	Sec. 48. Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:
34.4 		Subd. 2.Seed fee permits. (a) An initial labeler who wishes to sell seed in 
34.5 	Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in 
34.6 	this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to 
34.7 	the commissioner to obtain a permit. The application must contain the name and address of 
34.8 	the applicant, the application date, and the name and title of the applicant's contact person.
34.9 	(b) The application for a seed permit covered by section 21.89, subdivision 2, clause 
34.10 	(1), must be accompanied by an application fee of $50 $75.
34.11 	(c) The application for a seed permit covered by section 21.89, subdivision 2, clause 
34.12 	(2), must be accompanied by an application fee based on the level of annual gross sales 
34.13 	as follows:
34.14 	(1) for gross sales of $0 to $25,000, the annual permit fee is $50 $75;
34.15 	(2) for gross sales of $25,001 to $50,000, the annual permit fee is $100 $150;
34.16 	(3) for gross sales of $50,001 to $100,000, the annual permit fee is $200 $300;
34.17 	(4) for gross sales of $100,001 to $250,000, the annual permit fee is $500 $750;
34.18 	(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,000 $1,500; 
34.19 	and
34.20 	(6) for gross sales of $500,001 and above to $1,000,000, the annual permit fee is 
34.21 	$2,000 $3,000; and
34.22 	(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.
34.23 	(d) The application for a seed permit covered by section 21.89, subdivision 2, clause 
34.24 	(3), must be accompanied by an application fee of $50 $75. Initial labelers holding seed 
34.25 	fee permits covered under this paragraph need not apply for a new permit or pay the 
34.26 	application fee. Under this permit category, the fees for the following kinds of agricultural 
34.27 	seed sold either in bulk or containers are:
34.28 	(1) oats, wheat, and barley, 6.3 9 cents per hundredweight;
34.29 	(2) rye, field beans, soybeans, buckwheat, and flax, 8.4 12 cents per hundredweight;
34.30 	(3) field corn, 29.4 17 cents per hundredweight 80,000 seed unit;
34.31 	(4) forage, lawn and turf grasses, and legumes, 49 69 cents per hundredweight;
34.32 	(5) sunflower, $1.40 $1.96 per hundredweight;
34.33 	(6) sugar beet, $3.29 12 cents per hundredweight 100,000 seed unit; and
34.34 	(7) soybeans, 7.5 cents per 140,000 seed unit; and
35.1 	(7) (8) for any agricultural seed not listed in clauses (1) to (6) (7), the fee for the crop 
35.2 	most closely resembling it in normal planting rate applies.
35.3 	(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is 
35.4 	shipped into Minnesota by a person other than the initial labeler, the responsibility for the 
35.5 	seed fees are transferred to the shipper. An application for a transfer of this responsibility 
35.6 	must be made to the commissioner. Upon approval by the commissioner of the transfer, 
35.7 	the shipper is responsible for payment of the seed permit fees.
35.8 	(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or 
35.9 	as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the 
35.10 	words "Minnesota seed permit fees" must be used.
35.11 	(g) All seed fee permit holders must file semiannual reports with the commissioner, 
35.12 	even if no seed was sold during the reporting period. Each semiannual report must be 
35.13 	submitted within 30 days of the end of each reporting period. The reporting periods are 
35.14 	October 1 to March 31 and April 1 to September 30 of each year or July 1 to December 
35.15 	31 and January 1 to June 30 of each year. Permit holders may change their reporting 
35.16 	periods with the approval of the commissioner.
35.17 	(h) The holder of a seed fee permit must pay fees on all seed for which the permit 
35.18 	holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold 
35.19 	during the reporting period.
35.20 	(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed 
35.21 	fee within 30 days after the end of each reporting period, the commissioner shall assess a 
35.22 	penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever 
35.23 	is greater, but no more than $500 for each late semiannual report. A $15 penalty must be 
35.24 	charged when the semiannual report is late, even if no fee is due for the reporting period. 
35.25 	Seed fee permits may be revoked for failure to comply with the applicable provisions of 
35.26 	this paragraph or the Minnesota seed law.

35.27 	Sec. 49. Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:
35.28 		Subd. 5.Brand name registration fee. The fee is $25 $50 for each variety 
35.29 	registered for sale by brand name.

35.30 	Sec. 50. Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:
35.31 		Subd. 2.Application; fee; term. A person who is required to have a commercial 
35.32 	feed license shall submit an application on a form provided or approved by the 
35.33 	commissioner accompanied by a fee of $25$75 paid to the commissioner for each 
35.34 	location. A license is not transferable from one person to another, from one ownership to 
36.1 	another, or from one location to another. The license year is the calendar year. A license 
36.2 	expires on December 31 of the year for which it is issued, except that a license is valid 
36.3 	through January 31 of the next year or until the issuance of the renewal license, whichever 
36.4 	comes first, if the licensee has filed a renewal application with the commissioner on or 
36.5 	before December 31 of the year for which the current license was issued. Any person who 
36.6 	is required to have, but fails to obtain a license or a licensee who fails to comply with 
36.7 	license renewal requirements, shall pay a $50 $100 late fee in addition to the license fee.

36.8 	Sec. 51. Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:
36.9 		Subdivision 1.Amount of fee. (a) An inspection fee at the rate of 16 cents per ton 
36.10 	must be paid to the commissioner on commercial feeds distributed in this state by the 
36.11 	person who first distributes the commercial feed, except that:
36.12 	(1) no fee need be paid on:
36.13 	(i) a commercial feed if the payment has been made by a previous distributor; or
36.14 	(ii) customer formula feeds if the inspection fee is paid on the commercial feeds 
36.15 	which are used as ingredients; or
36.16 	(2) a Minnesota feed distributor who can substantiate that greater than 50 percent 
36.17 	of the distribution of commercial feed is to purchasers outside the state may purchase 
36.18 	commercial feeds without payment of the inspection fee under a tonnage fee exemption 
36.19 	permit issued by the commissioner. Such location specific permits shall be issued on a 
36.20 	calendar year basis to commercial feed distributors who submit a $100 nonrefundable 
36.21 	application fee and comply with rules adopted by the commissioner relative to record 
36.22 	keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial 
36.23 	feed tonnage distributed, and all other information which the commissioner may require 
36.24 	so as to ensure that proper inspection fee payment has been made.
36.25 	(b) In the case of pet food distributed in the state only in packages of ten pounds 
36.26 	or less, a listing of each product and a current label for each product must be submitted 
36.27 	annually on forms provided by the commissioner and accompanied by an annual fee of 
36.28 	$50 $100 for each product in lieu of the inspection fee. This annual fee is due by July 1. 
36.29 	The inspection fee required by paragraph (a) applies to pet food distributed in packages 
36.30 	exceeding ten pounds.
36.31 	(c) In the case of specialty pet food distributed in the state only in packages of 
36.32 	ten pounds or less, a listing of each product and a current label for each product must 
36.33 	be submitted annually on forms provided by the commissioner and accompanied by an 
36.34 	annual fee of $25$100 for each product in lieu of the inspection fee. This annual fee is 
37.1 	due by July 1. The inspection fee required by paragraph (a) applies to specialty pet food 
37.2 	distributed in packages exceeding ten pounds.
37.3 	(d) The minimum inspection fee is $10$75 per annual reporting period.

37.4 	Sec. 52. Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:
37.5 		Subd. 1a.Containers of ten pounds or less. A distributor who is subject to the 
37.6 	annual fee specified in subdivision 1, paragraph (b) or (c), shall do the following:
37.7 	(1) before beginning distribution, file with the commissioner a listing of pet and 
37.8 	specialty pet foods to be distributed in the state only in containers of ten pounds or less, 
37.9 	on forms provided by the commissioner. The listing under this clause must be renewed 
37.10 	annually before July 1 and is the basis for the payment of the annual fee. New products 
37.11 	added during the year must be submitted to the commissioner as a supplement to the 
37.12 	annual listing before distribution; and
37.13 	(2) if the annual renewal of the listing is not received before July 1 or if an unlisted 
37.14 	product is distributed, pay a late filing fee of $10 $100 per product in addition to the 
37.15 	normal charge for the listing. The late filing fee under this clause is in addition to any 
37.16 	other penalty under this chapter.

37.17 	Sec. 53. [28A.152] COTTAGE FOODS EXEMPTION.
37.18 		Subdivision 1.Licensing provisions applicability. (a) The licensing provisions of 
37.19 	sections 28A.01 to 28A.16 do not apply to the following:
37.20 	(1) an individual who prepares and sells food that is not potentially hazardous food, 
37.21 	as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements 
37.22 	are met:
37.23 	(i) the prepared food offered for sale under this clause is labeled to accurately reflect 
37.24 	the name and address of the individual preparing and selling the food, the date on which 
37.25 	the food was prepared, and the ingredients and any possible allergens; and 
37.26 	(ii) the individual displays at the point of sale a clearly legible sign or placard stating: 
37.27 	"These products are homemade and not subject to state inspection."; and
37.28 	(2) an individual who prepares and sells home-processed and home-canned food 
37.29 	products if the following requirements are met:
37.30 	(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 
37.31 	4.6 or lower;
37.32 	(ii) the products are home-processed and home-canned in Minnesota;
37.33 	(iii) the individual displays at the point of sale a clearly legible sign or placard 
37.34 	stating: "These canned goods are homemade and not subject to state inspection."; and
38.1 	(iv) each container of the product sold or offered for sale under this clause is 
38.2 	accurately labeled to provide the name and address of the individual who processed 
38.3 	and canned the goods, the date on which the goods were processed and canned, and 
38.4 	ingredients and any possible allergens.
38.5 	(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is 
38.6 	also exempt from the provisions of sections 31.31 and 31.392.
38.7 		Subd. 2.Direct sales to consumers. (a) An individual qualifying for an exemption 
38.8 	under subdivision 1 may sell the exempt food:
38.9 	(1) directly to the ultimate consumer;
38.10 	(2) at a community event or farmers' market; or
38.11 	(3) directly from the individual's home to the consumer, to the extent allowed by 
38.12 	local ordinance.
38.13 	(b) If an exempt food product will be delivered to the ultimate consumer upon sale 
38.14 	of the food product, the individual who prepared the food product must be the person who 
38.15 	delivers the food product to the ultimate consumer.
38.16 	(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be 
38.17 	sold outside of Minnesota.
38.18 	(d) Food products exempt under subdivision 1 may be sold over the Internet but 
38.19 	must be delivered directly to the ultimate consumer by the individual who prepared the 
38.20 	food product. The statement "These products are homemade and not subject to state 
38.21 	inspection." must be displayed on the Web site that offers the exempt foods for purchase. 
38.22 		Subd. 3.Limitation on sales. An individual selling exempt foods under this section 
38.23 	is limited to total sales with gross receipts of $18,000 or less in a calendar year. 
38.24 		Subd. 4.Registration. An individual who prepares and sells exempt food under 
38.25 	subdivision 1 must register annually with the commissioner. The annual registration fee is 
38.26 	$50. An individual with $5,000 or less in annual gross receipts from the sale of exempt 
38.27 	food under this section is not required to pay the registration fee.
38.28 		Subd. 5.Training. (a) An individual with gross receipts between $5,000 and 
38.29 	$18,000 in a calendar year from the sale of exempt food under this section must complete a 
38.30 	safe food handling training course that is approved by the commissioner before registering 
38.31 	under subdivision 4. The training shall not exceed eight hours and must be completed 
38.32 	every three years while the individual is registered under subdivision 4.
38.33 	(b) An individual with gross receipts of less than $5,000 in a calendar year from 
38.34 	the sale of exempt food under this section must satisfactorily complete an online course 
38.35 	and exam as approved by the commissioner before registering under subdivision 4. The 
39.1 	commissioner shall offer the online course and exam under this paragraph at no cost to 
39.2 	the individual.
39.3 		Subd. 6.Local ordinances. This section does not preempt the application of any 
39.4 	business licensing requirement or sanitation, public health, or zoning ordinance of a 
39.5 	political subdivision.
39.6 		Subd. 7.Account established. A cottage foods account is created as a separate 
39.7 	account in the agricultural fund in the state treasury for depositing money received by the 
39.8 	commissioner under this section. Money in the account, including interest, is appropriated 
39.9 	to the commissioner for purposes of this section.

39.10 	Sec. 54. Minnesota Statutes 2014, section 32.075, is amended to read:
39.11 	32.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.
39.12 	EveryAn initial license issued by the commissioner shall be for a period ending 
39.13 	expires on the following December 31st day of December next following, and shallis not 
39.14 	be transferable. A renewal license is valid for two years and expires on December 31 of 
39.15 	the second year. The fee for each suchan initial or renewal license shall be $50 and each 
39.16 	renewal thereof shall be $25 and is $60. The fee shall be paid to the commissioner before 
39.17 	any the commissioner issues an initial or renewal license or renewal thereof is issued. If a 
39.18 	license renewal is not applied for on or before January 1 of each year, a penalty of $10 $30 
39.19 	shall be imposed. A person who does not renew a license within one year following its 
39.20 	December 31 expiration date, except those persons who do not renew such license while 
39.21 	engaged in active military service, shall be required to prove competency and qualification 
39.22 	pursuant to section 32.073, before a license is issued. The commissioner may require any 
39.23 	other person who renews a license to prove competency and qualification in the same 
39.24 	manner. All license fees and penalties received by the commissioner shall be paid into the 
39.25 	state treasury deposited in the dairy services account in the agricultural fund.

39.26 	Sec. 55. Minnesota Statutes 2014, section 32.105, is amended to read:
39.27 	32.105 MILK PROCUREMENT FEE.
39.28 	Each dairy plant operator within the state must pay to the commissioner on or before 
39.29 	the 18th of each month a fee of .71 1.1 cents per hundredweight of milk purchased the 
39.30 	previous month. If a milk producer within the state ships milk out of the state for sale, the 
39.31 	producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.
39.32 	Producers who ship milk out of state or processors must submit monthly reports as 
39.33 	to milk purchases along with the appropriate procurement fee to the commissioner. The 
39.34 	commissioner may have access to all relevant purchase or sale records as necessary to 
40.1 	verify compliance with this section and may require the producer or purchaser to produce 
40.2 	records as necessary to determine compliance.
40.3 	The fees collected under this section must be deposited in the dairy services account 
40.4 	in the agricultural fund. Money in the account, including interest earned, is appropriated 
40.5 	to the commissioner to administer this chapter.

40.6 	Sec. 56. [41A.14] AGRICULTURE RESEARCH, EDUCATION, EXTENSION, 
40.7 	AND TECHNOLOGY TRANSFER GRANT PROGRAM.
40.8 		Subdivision 1.Duties; grants. The agriculture research, education, extension, and 
40.9 	technology transfer grant program is created. The purpose of the grant program is to 
40.10 	provide investments that will most efficiently achieve long-term agricultural productivity 
40.11 	increases through improved infrastructure, vision, and accountability. The scope and 
40.12 	intent of the grants, to the extent possible, shall provide for a long-term base funding 
40.13 	that allows the research grantee to continue the functions of the research, education, and 
40.14 	extension efforts to a practical conclusion. Priority for grants shall be given to human 
40.15 	infrastructure. The commissioner shall provide grants for:
40.16 	(1) agricultural research and technology transfer needs and recipients including 
40.17 	agricultural research and extension at the University of Minnesota, research and outreach 
40.18 	centers, the College of Food, Agricultural and Natural Resource Sciences, the Minnesota 
40.19 	Agricultural Experiment Station, University of Minnesota Extension Service, the 
40.20 	University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory, 
40.21 	the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and 
40.22 	Education Council;
40.23 	(2) agriculture rapid response for plant and animal diseases and pests; and
40.24 	(3) agricultural education including but not limited to the Minnesota Agriculture 
40.25 	Education Leadership Council, farm business management, mentoring programs, graduate 
40.26 	debt forgiveness, and high school programs.
40.27 		Subd. 2.Advisory panel. In awarding grants under this section, the commissioner 
40.28 	must consult with an advisory panel consisting of the following stakeholders:
40.29 	(1) a representative of the College of Food, Agricultural and Natural Resource 
40.30 	Sciences at the University of Minnesota;
40.31 	(2) a representative of the Minnesota State Colleges and Universities system;
40.32 	(3) a representative of the Minnesota Farm Bureau;
40.33 	(4) a representative of the Minnesota Farmers Union;
40.34 	(5) a person representing agriculture industry statewide;
41.1 	(6) a representative of each of the state commodity councils organized under section 
41.2 	17.54 and the Minnesota Pork Board;
41.3 	(7) a person representing an association of primary manufacturers of forest products;
41.4 	(8) a person representing organic or sustainable agriculture; and
41.5 	(9) a person representing statewide environment and natural resource conservation 
41.6 	organizations.
41.7 		Subd. 3.Account. An agriculture research, education, extension, and technology 
41.8 	transfer account is created in the agricultural fund in the state treasury. The account 
41.9 	consists of money received in the form of gifts, grants, reimbursement, or appropriations 
41.10 	from any source for any of the purposes provided in subdivision 1, and any interest or 
41.11 	earnings of the account. Money in the account is appropriated to the commissioner of 
41.12 	agriculture for the purposes under subdivision 1.

41.13 	Sec. 57. [41A.15] DEFINITIONS.
41.14 		Subdivision 1.Scope. For the purposes of sections 41A.15 to 41A.18, the terms 
41.15 	defined in this section have the meanings given them.
41.16 		Subd. 2.Advanced biofuel. "Advanced biofuel" has the meaning given in section 
41.17 	239.051, subdivision 1a.
41.18 		Subd. 3.Biomass thermal production. "Biomass thermal production" means the 
41.19 	generation of energy for commercial heat or industrial process heat from a cellulosic 
41.20 	material or other material composed of forestry or agricultural feedstocks for a new or 
41.21 	expanding capacity facility or a facility that is displacing existing use of fossil fuel after 
41.22 	the effective date of this section.
41.23 		Subd. 4.Cellulosic biomass. "Cellulosic biomass" means material primarily made 
41.24 	up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.
41.25 		Subd. 5.Cellulosic sugar. "Cellulosic sugar" means sugar derived from cellulosic 
41.26 	biomass from agricultural or forestry resources.
41.27 		Subd. 6.Commissioner. "Commissioner" means the commissioner of agriculture.
41.28 		Subd. 7.Cover crops. "Cover crops" means grasses, legumes, forbs, or other 
41.29 	herbaceous plants that are known to be noninvasive and not listed as a noxious weed in 
41.30 	Minnesota and that are either interseeded into living cash crops or planted on agricultural 
41.31 	fields during fallow periods for seasonal cover and conservation purposes.
41.32 		Subd. 8.MMbtu. "MMbtu" means 1,000,000 British thermal units.
41.33 		Subd. 9.Perennial crops. "Perennial crops" means agriculturally produced plants 
41.34 	that are known to be noninvasive and not listed as a noxious weed in Minnesota and that 
42.1 	have a life cycle of at least three years at the location where the plants are being cultivated. 
42.2 	Biomass from alfalfa produced in a two-year rotation shall be considered a perennial crop.
42.3 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with 
42.4 	biobased content as defined in section 41A.105, subdivision 1a.

42.5 	Sec. 58. [41A.16] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
42.6 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
42.7 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
42.8 	less from the state border, raw materials may be sourced from within a 100-mile radius. 
42.9 	Raw materials must be from agricultural or forestry sources or from solid waste. The 
42.10 	facility must be located in Minnesota, must begin production at a specific location by June 
42.11 	30, 2025, and must not begin operating above 95,000 MMbtu of annual biofuel production 
42.12 	before July 1, 2015. Eligible facilities include existing companies and facilities that are 
42.13 	adding advanced biofuel production capacity, or retrofitting existing capacity, as well as 
42.14 	new companies and facilities. Production of conventional corn ethanol and conventional 
42.15 	biodiesel is not eligible. Eligible advanced biofuel facilities must produce at least 95,000 
42.16 	MMbtu a year.
42.17 	(b) No payments shall be made for advanced biofuel production that occurs after 
42.18 	June 30, 2035, for those eligible biofuel producers under paragraph (a).
42.19 	(c) An eligible producer of advanced biofuel shall not transfer the producer's 
42.20 	eligibility for payments under this section to an advanced biofuel facility at a different 
42.21 	location.
42.22 	(d) A producer that ceases production for any reason is ineligible to receive 
42.23 	payments under this section until the producer resumes production.
42.24 	(e) Renewable chemical production for which payment has been received under 
42.25 	section 41A.17, and biomass thermal production for which payment has been received 
42.26 	under section 41A.18, are not eligible for payment under this section.
42.27 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments 
42.28 	to eligible producers of advanced biofuel. The amount of the payment for each eligible 
42.29 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
42.30 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or 
42.31 	starch at a specific location for ten years after the start of production. 
42.32 	(b) Total payments under this section to an eligible biofuel producer in a fiscal 
42.33 	year may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. 
42.34 	Total payments under this section to all eligible biofuel producers in a fiscal year may 
42.35 	not exceed the amount necessary for 17,100,000 MMbtu of biofuel production. The 
43.1 	commissioner shall award payments on a first-come, first-served basis within the limits of 
43.2 	available funding.
43.3 	(c) For purposes of this section, an entity that holds a controlling interest in more 
43.4 	than one advanced biofuel facility is considered a single eligible producer.
43.5 		Subd. 3.Perennial and cover crops required. To be eligible for payment under 
43.6 	this section, a producer that produces advanced biofuel from agricultural cellulosic 
43.7 	biomass other than corn kernel fiber or biogas must derive at least the following portions 
43.8 	of the producer's total eligible MMbtus from perennial crop or cover crop biomass:
43.9 	(1) ten percent during the first two years of eligible production;
43.10 	(2) 30 percent during the third and fourth years of eligible production; and
43.11 	(3) 50 percent during the fifth through tenth years of eligible production.
43.12 		Subd. 4.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
43.13 	biomass must be produced using Minnesota state biomass harvesting guidelines or the 
43.14 	equivalent. All biomass from brushlands must be produced using Minnesota brushland 
43.15 	harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic 
43.16 	biomass that comes from land parcels greater than 160 acres must be certified by the Forest 
43.17 	Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System. 
43.18 	Uncertified land from parcels of 160 acres or less and federal land must be harvested by 
43.19 	a logger who has completed training for biomass harvesting from the Minnesota logger 
43.20 	education program or the equivalent and have a forest stewardship plan.
43.21 		Subd. 5.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
43.22 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
43.23 	plan for approval by the commissioner prior to applying for payments under this section. 
43.24 	The commissioner shall make the plan publicly available. The plan must:
43.25 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
43.26 	produced and managed in a way that preserves soil quality, does not increase soil and 
43.27 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
43.28 	on wildlife habitat, and reduces greenhouse gas emissions;
43.29 	(2) include the producer's approach to verifying that biomass suppliers are following 
43.30 	the plan;
43.31 	(3) discuss how new technologies and practices that are not yet commercially viable 
43.32 	may be encouraged and adopted during the life of the facility, and how the producer will 
43.33 	encourage continuous improvement during the life of the project; 
43.34 	(4) include specific numeric goals and timelines for making progress;
44.1 	(5) require agronomic practices that result in a positive Natural Resources 
44.2 	Conservation Service Soil Conditioning Index score for acres from which biomass from 
44.3 	corn stover will be harvested; and
44.4 	(6) include biennial soil sampling to verify maintained or increased levels of soil 
44.5 	organic matter.
44.6 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
44.7 	payments under this section shall submit an annual report on the producer's responsible 
44.8 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
44.9 	include data on progress made by the producer in meeting specific goals laid out in the 
44.10 	plan. The commissioner shall make the report publicly available. The commissioner shall 
44.11 	perform an annual review of submitted reports and may make a determination that the 
44.12 	producer is not following the plan based on the reports submitted.  The commissioner 
44.13 	may take appropriate steps, including reducing or ceasing payments, until the producer 
44.14 	is in compliance with the plan.
44.15 		Subd. 6.Claims. (a) By the last day of October, January, April, and July, each eligible 
44.16 	biofuel producer shall file a claim for payment for advanced biofuel production during the 
44.17 	preceding three calendar months. An eligible biofuel producer that files a claim under 
44.18 	this subdivision shall include a statement of the eligible biofuel producer's total advanced 
44.19 	biofuel production in Minnesota during the quarter covered by the claim. For each claim 
44.20 	and statement of total advanced biofuel production filed under this subdivision, the volume 
44.21 	of advanced biofuel production must be examined by a CPA firm with a valid permit to 
44.22 	practice under chapter 326A, in accordance with Statements on Standards for Attestation 
44.23 	Engagements established by the American Institute of Certified Public Accountants.
44.24 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
44.25 	and August 15. A separate payment must be made for each claim filed.

44.26 	Sec. 59. [41A.17] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
44.27 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program 
44.28 	must source at least 80 percent biobased content, as defined in section 41A.105, 
44.29 	subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the 
44.30 	state border, biobased content must be sourced from within a 100-mile radius. Biobased 
44.31 	content must be from agricultural or forestry sources or from solid waste. The facility 
44.32 	must be located in Minnesota, must begin production at a specific location by June 30, 
44.33 	2025, and must not begin production of 3,000,000 pounds of chemicals annually before 
44.34 	January 1, 2015. Eligible facilities include existing companies and facilities that are 
44.35 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
45.1 	facilities. Eligible renewable chemical facilities must produce at least 3,000,000 pounds 
45.2 	per year. Renewable chemicals produced through processes that are fully commercial 
45.3 	before January 1, 2000, are not eligible.
45.4 	(b) No payments shall be made for renewable chemical production that occurs after 
45.5 	June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
45.6 	(c) An eligible producer of renewable chemicals shall not transfer the producer's 
45.7 	eligibility for payments under this section to a renewable chemical facility at a different 
45.8 	location.
45.9 	(d) A producer that ceases production for any reason is ineligible to receive 
45.10 	payments under this section until the producer resumes production.
45.11 	(e) Advanced biofuel production for which payment has been received under section 
45.12 	41A.16, and biomass thermal production for which payment has been received under 
45.13 	section 41A.18, are not eligible for payment under this section.
45.14 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make 
45.15 	payments to eligible producers of renewable chemicals located in the state. The amount of 
45.16 	the payment for each producer's annual production is $0.03 per pound of sugar-derived 
45.17 	renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of 
45.18 	cellulosic-derived renewable chemical produced at a specific location for ten years after 
45.19 	the start of production. 
45.20 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
45.21 	biomass is eligible for a 20 percent bonus payment for each MMbtu produced from 
45.22 	agricultural biomass that is derived from perennial crop or cover crop biomass.
45.23 	(c) Total payments under this section to an eligible renewable chemical producer in 
45.24 	a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
45.25 	chemical production. Total payments under this section to all eligible renewable chemical 
45.26 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
45.27 	renewable chemical production. The commissioner shall award payments on a first-come, 
45.28 	first-served basis within the limits of available funding.
45.29 	(d) For purposes of this section, an entity that holds a controlling interest in more 
45.30 	than one renewable chemical production facility is considered a single eligible producer.
45.31 		Subd. 3.Cellulosic biomass requirements. All forestry-derived cellulosic biomass 
45.32 	must be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
45.33 	All cellulosic biomass from brushlands must be produced using Minnesota brushland 
45.34 	harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic 
45.35 	biomass that comes from land parcels greater than 160 acres must be certified by the Forest 
45.36 	Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System. 
46.1 	Uncertified land from parcels of 160 acres or less and federal land must be harvested by 
46.2 	a logger who has completed training for biomass harvesting from the Minnesota logger 
46.3 	education program or the equivalent and have a forest stewardship plan.
46.4 		Subd. 4.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
46.5 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
46.6 	plan to the commissioner prior to applying for payments under this section. The plan must:
46.7 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
46.8 	produced and managed in a way that preserves soil quality, does not increase soil and 
46.9 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
46.10 	on wildlife habitat, and reduces greenhouse gas emissions;
46.11 	(2) include the producer's approach to verifying that biomass suppliers are following 
46.12 	the plan;
46.13 	(3) discuss how new technologies and practices that are not yet commercially viable 
46.14 	may be encouraged and adopted during the life of the facility, and how the producer will 
46.15 	encourage continuous improvement during the life of the project; and
46.16 	(4) include specific numeric goals and timelines for making progress.
46.17 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
46.18 	payments under this section shall submit an annual report on the producer's responsible 
46.19 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
46.20 	include data on progress made by the producer in meeting specific goals laid out in the 
46.21 	plan. The commissioner shall make the report publicly available. The commissioner shall 
46.22 	perform an annual review of submitted reports and may make a determination that the 
46.23 	producer is not following the plan based on the reports submitted. The commissioner 
46.24 	may take appropriate steps, including reducing or ceasing payments, until the producer 
46.25 	is in compliance with the plan.
46.26 		Subd. 5.Claims. (a) By the last day of October, January, April, and July, each 
46.27 	eligible renewable chemical producer shall file a claim for payment for renewable 
46.28 	chemical production during the preceding three calendar months. An eligible renewable 
46.29 	chemical producer that files a claim under this subdivision shall include a statement of 
46.30 	the eligible producer's total renewable chemical production in Minnesota during the 
46.31 	quarter covered by the claim. For each claim and statement of total renewable chemical 
46.32 	production filed under this paragraph, the volume of renewable chemical production 
46.33 	must be examined by a CPA firm with a valid permit to practice under chapter 326A, in 
46.34 	accordance with Statements on Standards for Attestation Engagements established by the 
46.35 	American Institute of Certified Public Accountants.
47.1 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
47.2 	and August 15. A separate payment must be made for each claim filed. 

47.3 	Sec. 60. [41A.18] BIOMASS THERMAL PRODUCTION INCENTIVE.
47.4 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
47.5 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
47.6 	less from the state border, raw materials should be sourced from within a 100-mile radius. 
47.7 	Raw materials must be from agricultural or forestry sources. The facility must be located 
47.8 	in Minnesota, must have begun production at a specific location by June 30, 2025, and 
47.9 	must not begin before July 1, 2015. Eligible facilities include existing companies and 
47.10 	facilities that are adding production capacity, or retrofitting existing capacity, as well as 
47.11 	new companies and facilities. Eligible biomass thermal production facilities must produce 
47.12 	at least 1,000 MMbtu per year.
47.13 	(b) No payments shall be made for biomass thermal production that occurs after June 
47.14 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
47.15 	(c) An eligible producer of biomass thermal production shall not transfer the 
47.16 	producer's eligibility for payments under this section to a biomass thermal production 
47.17 	facility at a different location.
47.18 	(d) A producer that ceases production for any reason is ineligible to receive 
47.19 	payments under this section until the producer resumes production.
47.20 	(e) Biofuel production for which payment has been received under section 41A.16, 
47.21 	and renewable chemical production for which payment has been received under section 
47.22 	41A.17, are not eligible for payment under this section.
47.23 		Subd. 2.Payment amounts; bonus; limits; blending. (a) The commissioner shall 
47.24 	make payments to eligible producers of biomass thermal located in the state. The amount 
47.25 	of the payment for each producer's annual production is $5.00 per MMbtu of biomass 
47.26 	thermal production produced at a specific location for ten years after the start of production.
47.27 	(b) An eligible facility producing biomass thermal using agricultural cellulosic 
47.28 	biomass is eligible for a 20 percent bonus payment for each MMbtu produced from 
47.29 	agricultural biomass that is derived from perennial crop or cover crop biomass.
47.30 	(c) Total payments under this section to an eligible thermal producer in a fiscal 
47.31 	year may not exceed the amount necessary for 30,000 MMbtu of thermal production. 
47.32 	Total payments under this section to all eligible thermal producers in a fiscal year may 
47.33 	not exceed the amount necessary for 150,000 MMbtu of total thermal production. The 
47.34 	commissioner shall award payments on a first-come, first-served basis within the limits of 
47.35 	available funding.
48.1 	(d) An eligible facility may blend a cellulosic feedstock with other fuels in the 
48.2 	biomass thermal production facility, but only the percentage attributable to cellulosic 
48.3 	material is eligible to receive payment.
48.4 	(e) For purposes of this section, an entity that holds a controlling interest in more 
48.5 	than one biomass thermal production facility is considered a single eligible producer. 
48.6 		Subd. 3.Cellulosic biomass requirements. All forestry-derived cellulosic biomass 
48.7 	must be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
48.8 	All biomass from brushland must be produced using Minnesota brushland harvesting 
48.9 	biomass guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from 
48.10 	land parcels greater than 160 acres must be certified by the Forest Stewardship Council, 
48.11 	the Sustainable Forestry Initiative, or American Tree Farm. Uncertified land from parcels 
48.12 	of 160 acres or less and federal land must be harvested by a logger who has completed 
48.13 	training for biomass harvesting from the Minnesota logger education program or the 
48.14 	equivalent and have a forest stewardship plan. 
48.15 		Subd. 4.Agricultural cellulosic biomass sourcing plan. (a) An eligible producer 
48.16 	who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing 
48.17 	plan to the commissioner prior to applying for payments under this section. The plan must:
48.18 	(1) provide a detailed explanation of how agricultural cellulosic biomass will be 
48.19 	produced and managed in a way that preserves soil quality, does not increase soil and 
48.20 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
48.21 	on wildlife habitat, and reduces greenhouse gas emissions;
48.22 	(2) include the producer's approach to verifying that biomass suppliers are following 
48.23 	the plan;
48.24 	(3) discuss how new technologies and practices that are not yet commercially viable 
48.25 	may be encouraged and adopted during the life of the facility, and how the producer will 
48.26 	encourage continuous improvement during the life of the project; and
48.27 	(4) include specific numeric goals and timelines for making progress.
48.28 	(b) An eligible producer who utilizes agricultural cellulosic biomass and receives 
48.29 	payments under this section shall submit an annual report on the producer's responsible 
48.30 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
48.31 	include data on progress made by the producer in meeting specific goals laid out in the 
48.32 	plan. The commissioner shall make the report publicly available. The commissioner shall 
48.33 	perform an annual review of submitted reports and may make a determination that the 
48.34 	producer is not following the plan based on the reports submitted. The commissioner 
48.35 	may take appropriate steps, including reducing or ceasing payments, until the producer 
48.36 	is in compliance with the plan.
49.1 		Subd. 5.Claims. (a) By the last day of October, January, April, and July, each 
49.2 	producer shall file a claim for payment for biomass thermal production during the 
49.3 	preceding three calendar months. A producer that files a claim under this subdivision shall 
49.4 	include a statement of the producer's total biomass thermal production in Minnesota 
49.5 	during the quarter covered by the claim. For each claim and statement of total biomass 
49.6 	thermal production filed under this paragraph, the volume of biomass thermal production 
49.7 	must be examined by a CPA firm with a valid permit to practice under chapter 326A, in 
49.8 	accordance with Statements on Standards for Attestation Engagements established by the 
49.9 	American Institute of Certified Public Accountants.
49.10 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
49.11 	and August 15. A separate payment shall be made for each claim filed.

49.12 	Sec. 61. [41A.19] REPORT; INCENTIVE PROGRAMS.
49.13 	By January 15 each year, the commissioner shall report on the incentive programs 
49.14 	under sections 41A.16, 41A.17, and 41A.18 to the legislative committees with jurisdiction 
49.15 	over environment and agriculture policy and finance. The report shall include information 
49.16 	on production and incentive expenditures under the programs.

49.17 	Sec. 62. Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
49.18 		Subd. 6.Application fee. The authority may impose a reasonable nonrefundable 
49.19 	application fee for each application submitted for a beginning farmer loan or a 
49.20 	seller-sponsored loan. The application fee is initially $50. The authority may review the 
49.21 	fee annually and make adjustments as necessary. The fee must be deposited in the state 
49.22 	treasury and credited to an account in the special revenue fund. Money in the account is 
49.23 	appropriated to the commissioner for administrative expenses of the beginning farmer 
49.24 	and seller-sponsored loan programs the Rural Finance Authority administrative account 
49.25 	established in subdivision 7.

49.26 	Sec. 63. Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision 
49.27 	to read:
49.28 		Subd. 7.Rural Finance Authority administrative account. There is established 
49.29 	in the agricultural fund a Rural Finance Authority administrative account. Money in the 
49.30 	account, including interest, is appropriated to the commissioner of agriculture for the 
49.31 	administrative expenses of the loan programs administered by the Rural Finance Authority.

49.32 	Sec. 64. Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
50.1 		Subd. 17.Application and origination fee. The authority may impose a reasonable 
50.2 	nonrefundable application fee for each application and an origination fee for each loan 
50.3 	issued under the loan restructuring program. The origination fee is 1.5 percent of the 
50.4 	authority's participation interest in the loan and the application fee is $50. The authority 
50.5 	may review the fees annually and make adjustments as necessary. The fees must be 
50.6 	deposited in the state treasury and credited to an account in the special revenue fund. 
50.7 	Money in the account is appropriated to the commissioner for administrative expenses 
50.8 	of the loan restructuring program the Rural Finance Authority administrative account 
50.9 	established in section 41B.03.

50.10 	Sec. 65. Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
50.11 		Subd. 3.Application and origination fee. The authority may impose a reasonable 
50.12 	nonrefundable application fee for each application submitted for a participation issued 
50.13 	under the agricultural improvement loan program. The application fee is initially $50. The 
50.14 	authority may review the fees annually and make adjustments as necessary. The fees must 
50.15 	be deposited in the state treasury and credited to an account in the special revenue fund. 
50.16 	Money in this account is appropriated to the commissioner for administrative expenses of 
50.17 	the agricultural improvement loan program the Rural Finance Authority administrative 
50.18 	account established in section 41B.03.

50.19 	Sec. 66. Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
50.20 		Subd. 3.Specifications. No loan may be made to refinance an existing debt. Each 
50.21 	loan participation must be secured by a mortgage on real property and such other security 
50.22 	as the authority may require.

50.23 	Sec. 67. Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
50.24 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
50.25 	nonrefundable application fee for each application for a loan participation and an 
50.26 	origination fee for each loan issued under the livestock expansion loan program. The 
50.27 	origination fee initially shall be set at 1.5 percent and the application fee at $50. The 
50.28 	authority may review the fees annually and make adjustments as necessary. The fees must 
50.29 	be deposited in the state treasury and credited to an account in the special revenue fund. 
50.30 	Money in this account is appropriated to the commissioner for administrative expenses of 
50.31 	the livestock expansion loan program the Rural Finance Authority administrative account 
50.32 	established in section 41B.03.

51.1 	Sec. 68. Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
51.2 		Subd. 5.Loans. (a) The authority may participate in a stock loan with an eligible 
51.3 	lender to a farmer who is eligible under subdivision 4. Participation is limited to 45 
51.4 	percent of the principal amount of the loan or $40,000, whichever is less. The interest 
51.5 	rates and repayment terms of the authority's participation interest may differ from the 
51.6 	interest rates and repayment terms of the lender's retained portion of the loan, but the 
51.7 	authority's interest rate must not exceed 50 percent of the lender's interest rate.
51.8 	(b) No more than 95 percent of the purchase price of the stock may be financed 
51.9 	under this program.
51.10 	(c) Security for stock loans must be the stock purchased, a personal note executed by 
51.11 	the borrower, and whatever other security is required by the eligible lender or the authority.
51.12 	(d) The authority may impose a reasonable nonrefundable application fee for each 
51.13 	application for a stock loan. The authority may review the fee annually and make 
51.14 	adjustments as necessary. The application fee is initially $50. Application fees received 
51.15 	by the authority must be deposited in the revolving loan account established in section 
51.16 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
51.17 	(e) Stock loans under this program will be made using money in the revolving 
51.18 	loan account established in section 41B.06.
51.19 	(f) The authority may not grant stock loans in a cumulative amount exceeding 
51.20 	$2,000,000 for the financing of stock purchases in any one cooperative.
51.21 	(g) Repayments of financial assistance under this section, including principal and 
51.22 	interest, must be deposited into the revolving loan account established in section 41B.06.

51.23 	Sec. 69. Minnesota Statutes 2014, section 41B.047, subdivision 1, as amended by 
51.24 	Laws 2015, chapter 44, section 27, is amended to read:
51.25 		Subdivision 1.Establishment. The authority shall establish and implement a 
51.26 	disaster recovery loan program to help farmers:
51.27 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
51.28 	as replace seed, other crop inputs, feed, and livestock, when damaged by high winds, 
51.29 	hail, tornado, or flood;
51.30 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
51.31 	systems and practices when drought is the cause of the purchase;
51.32 	(3) restore farmland; or
51.33 	(4) replace flocks, make building improvements, or obtain an operating line of credit 
51.34 	if the loss or damage cover the loss of revenue when the replacement, improvements, or 
52.1 	loss of revenue is due to the confirmed presence of the highly pathogenic avian influenza 
52.2 	in a commercial poultry or game flock located in Minnesota.

52.3 	Sec. 70. Minnesota Statutes 2014, section 41B.047, subdivision 3, as amended by 
52.4 	Laws 2015, chapter 44, section 28, is amended to read:
52.5 		Subd. 3.Eligibility. To be eligible for this program, a borrower must:
52.6 	(1) meet the requirements of section 41B.03, subdivision 1;
52.7 	(2) certify that the damage or loss was (i) sustained within a county that was the 
52.8 	subject of (i) a state or federal disaster declaration or (ii) a peacetime emergency declaration 
52.9 	made by the governor under section 12.31 due to the confirmed presence of the highly 
52.10 	pathogenic avian influenza in a commercial poultry or game flock located in Minnesota;
52.11 	(3) demonstrate an ability to repay the loan; and
52.12 	(4) for loans under subdivision 1, clauses (1) to (3), have a total net worth, including 
52.13 	assets and liabilities of the borrower's spouse and dependents, of less than $660,000 in 
52.14 	2004 and an amount in subsequent years which is adjusted for inflation by multiplying that 
52.15 	amount by the cumulative inflation rate as determined by the Consumer Price Index; and
52.16 	(5) (4) have received at least 50 percent of average annual gross income from 
52.17 	farming for the past three years.

52.18 	Sec. 71. Minnesota Statutes 2014, section 41B.047, subdivision 4, as amended by 
52.19 	Laws 2015, chapter 44, section 29, is amended to read:
52.20 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
52.21 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
52.22 	to 45 percent of the principal amount of the loan or $200,000, whichever is less. The 
52.23 	interest rates and repayment terms of the authority's participation interest may differ from 
52.24 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
52.25 	authority's interest rate must not exceed four percent.
52.26 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
52.27 	not to exceed ten years.
52.28 	(c) Security for the disaster recovery loans must be a personal note executed by the 
52.29 	borrower and whatever other security is required by the eligible lender or the authority.
52.30 	(d) The authority may impose a reasonable nonrefundable application fee for a 
52.31 	disaster recovery loan. The authority may review the fee annually and make adjustments 
52.32 	as necessary. The application fee is initially $50. Application fees received by the 
52.33 	authority must be deposited in the revolving loan account established under section 
52.34 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
53.1 	(e) Disaster recovery loans under this program will be made using money in the 
53.2 	revolving loan account established under section 41B.06.
53.3 	(f) Repayments of financial assistance under this section, including principal and 
53.4 	interest, must be deposited into the revolving loan account established under section 
53.5 	41B.06.

53.6 	Sec. 72. Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
53.7 		Subd. 6.Loans. (a) The authority may disburse loans through a fiscal agent to 
53.8 	farmers and agricultural landowners who are eligible under subdivision 5. The total 
53.9 	accumulative loan principal must not exceed $75,000 per loan.
53.10 	(b) The fiscal agent may impose a loan origination fee in the amount of one percent 
53.11 	of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at 
53.12 	the time of loan closing.
53.13 	(c) The loan may be disbursed over a period not to exceed 12 years.
53.14 	(d) A borrower may receive loans, depending on the availability of funds, for planted 
53.15 	areas up to 160 acres for up to:
53.16 	(1) the total amount necessary for establishment of the crop;
53.17 	(2) the total amount of maintenance costs, including weed control, during the first 
53.18 	three years; and
53.19 	(3) 70 percent of the estimated value of one year's growth of the crop for years 
53.20 	four through 12.
53.21 	(e) Security for the loan must be the crop, a personal note executed by the borrower, an 
53.22 	interest in the land upon which the crop is growing, and whatever other security is required 
53.23 	by the fiscal agent or the authority. All recording fees must be paid by the borrower.
53.24 	(f) The authority may prescribe forms and establish an application process for 
53.25 	applicants to apply for a loan.
53.26 	(g) The authority may impose a reasonable, nonrefundable application fee for each 
53.27 	application for a loan under this program. The application fee is initially $50. Application 
53.28 	fees received by the authority must be deposited in the revolving loan account established 
53.29 	under section 41B.06 Rural Finance Authority administrative account established in 
53.30 	section 41B.03.
53.31 	(h) Loans under the program must be made using money in the revolving loan 
53.32 	account established under section 41B.06.
53.33 	(i) All repayments of financial assistance granted under this section, including 
53.34 	principal and interest, must be deposited into the revolving loan account established 
53.35 	under section 41B.06.
54.1 	(j) The interest payable on loans made by the authority for the agroforestry loan 
54.2 	program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the 
54.3 	revenue bonds, and may be established at a higher rate necessary to pay costs associated 
54.4 	with the issuance of the revenue bonds and a proportionate share of the cost of administering 
54.5 	the program. The interest payable on loans for the agroforestry loan program funded from 
54.6 	sources other than revenue bond proceeds must be at a rate determined by the authority.
54.7 	(k) Loan principal balance outstanding plus all assessed interest must be repaid 
54.8 	within 120 days of harvest, but no later than 15 years from planting.

54.9 	Sec. 73. Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
54.10 		Subd. 4.Loans. (a) The authority may make a direct loan or participate in a loan 
54.11 	with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms 
54.12 	of the authority's participation interest may differ from repayment terms of the lender's 
54.13 	retained portion of the loan. Loans made under this section must be no-interest loans.
54.14 	(b) Application for a direct loan or a loan participation must be made on forms 
54.15 	prescribed by the authority.
54.16 	(c) Standards for loan amortization shall be set by the Rural Finance Authority 
54.17 	not to exceed ten years.
54.18 	(d) Security for the loans must be a personal note executed by the borrower and 
54.19 	whatever other security is required by the eligible lender or the authority.
54.20 	(e) No loan proceeds may be used to refinance a debt existing prior to application.
54.21 	(f) The authority may impose a reasonable nonrefundable application fee for 
54.22 	each application for a direct loan or a loan participation. The authority may review the 
54.23 	application fees annually and make adjustments as necessary. The application fee is 
54.24 	initially set at $100 for a loan under subdivision 1. The fees received by the authority must 
54.25 	be deposited in the revolving loan account established in section 41B.06 Rural Finance 
54.26 	Authority administrative account established in section 41B.03.

54.27 	Sec. 74. Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
54.28 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
54.29 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
54.30 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
54.31 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
54.32 	of the authority's participation interest may differ from the interest rates and repayment 
54.33 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
55.1 	not exceed three percent. The authority may review the interest annually and make 
55.2 	adjustments as necessary.
55.3 	(b) Standards for loan amortization must be set by the Rural Finance Authority 
55.4 	and must not exceed ten years.
55.5 	(c) Security for a livestock equipment loan must be a personal note executed by the 
55.6 	borrower and whatever other security is required by the eligible lender or the authority.
55.7 	(d) Refinancing of existing debt is not an eligible purpose.
55.8 	(e) The authority may impose a reasonable, nonrefundable application fee for 
55.9 	a livestock equipment loan. The authority may review the fee annually and make 
55.10 	adjustments as necessary. The initial application fee is $50. Application fees received 
55.11 	by the authority must be deposited in the revolving loan account established in section 
55.12 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
55.13 	(f) Loans under this program must be made using money in the revolving loan 
55.14 	account established in section 41B.06.

55.15 	Sec. 75. Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
55.16 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
55.17 	(b) "Intermediary" means any lending institution or other organization of a for-profit 
55.18 	or nonprofit nature that is in good standing with the state of Minnesota that has the 
55.19 	appropriate business structure and trained personnel suitable to providing efficient 
55.20 	disbursement of loan funds and the servicing and collection of loans.
55.21 	(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials, 
55.22 	and other horticultural products, that are intensively cultivated.
55.23 	(d) "Eligible livestock" means poultry that has been allowed access to the outside, 
55.24 	sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae, 
55.25 	ratitae, bison, sheep, horses, and llamas.

55.26 	Sec. 76. [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
55.27 		Subdivision 1.Establishment. The authority shall establish a farm opportunity loan 
55.28 	program to provide loans that enable farmers to:
55.29 	(1) add value to crops or livestock produced in Minnesota;
55.30 	(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
55.31 	(3) reduce or improve management of agricultural inputs resulting in environmental 
55.32 	improvements; or
55.33 	(4) increase production of on-farm energy.
56.1 		Subd. 2.Loan criteria. (a) The farm opportunity loan program shall provide loans 
56.2 	for purchase of new or used equipment and installation of equipment for projects that 
56.3 	make environmental improvements and enhance farm profitability. The loan program 
56.4 	shall also be used to add value to crops or livestock produced in Minnesota by, but not 
56.5 	limited to, initiating or expanding livestock product processing; purchasing equipment to 
56.6 	initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers' 
56.7 	processing and aggregating capacity facilitating entry into farm-to-institution and other 
56.8 	markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or 
56.9 	other operating expenses.
56.10 	(b) The authority may impose a reasonable, nonrefundable application fee for a farm 
56.11 	opportunity loan. The authority may review the fee annually and make adjustments as 
56.12 	necessary. The initial application fee is $50. Application fees received by the authority 
56.13 	must be deposited in the Rural Finance Authority administrative account established 
56.14 	in section 41B.03.
56.15 	(c) Loans may only be made to Minnesota residents engaged in farming. Standards 
56.16 	for loan amortization must be set by the Rural Finance Authority and must not exceed 
56.17 	ten years.
56.18 	(d) The borrower must show the ability to repay the loan.
56.19 	(e) Refinancing of existing debt is not an eligible expense.
56.20 	(f) Loans under this program must be made using money in the revolving loan 
56.21 	account established in section 41B.06.
56.22 		Subd. 3.Loan participation. The authority may participate in a farm opportunity 
56.23 	loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a 
56.24 	group of farmers on joint projects who are eligible under subdivision 2, paragraph (c), 
56.25 	and who are actively engaged in farming. Participation is limited to 45 percent of the 
56.26 	principal amount of the loan or $45,000 per individual, whichever is less. For loans to a 
56.27 	group made up of four or more individuals, participation is limited to 45 percent of the 
56.28 	principal amount of the loan or $180,000, whichever is less. The interest rate on the 
56.29 	loans must not exceed six percent.

56.30 	Sec. 77. Minnesota Statutes 2014, section 41B.06, is amended to read:
56.31 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
56.32 	There is established in the rural finance administration fund a Rural Finance 
56.33 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
56.34 	of loan funds from other programs. All repayments of financial assistance granted from 
56.35 	this account, including principal and interest, must be deposited into this account. Interest 
57.1 	earned on money in the account accrues to the account, and the money in the account is 
57.2 	appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority 
57.3 	livestock equipment, methane digester, disaster recovery, value-added agricultural 
57.4 	product, agroforestry, and agricultural microloan, and farm opportunity loan programs, 
57.5 	including costs incurred by the authority to establish and administer the programs.

57.6 	Sec. 78. Minnesota Statutes 2014, section 135A.52, is amended by adding a 
57.7 	subdivision to read:
57.8 		Subd. 6.Farm business management. Minnesota State Colleges and Universities 
57.9 	campuses that offer farm business management may specify space availability in the 
57.10 	delivery of farm business management courses.

57.11 	Sec. 79. Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:
57.12 		Subd. 2.Wild hemp. A county board, by resolution, may appropriate and spend 
57.13 	money as necessary to spray and otherwise eradicate wild hemp, commonly known as 
57.14 	marijuana, on private property within the county. The county board may authorize the 
57.15 	use of county equipment, personnel and supplies and materials to spray or otherwise 
57.16 	eradicate wild hemp on private property, and may pro rate the expenses involved between 
57.17 	the county and owner or occupant of the property. Industrial hemp grown by a person 
57.18 	licensed under chapter 18K is not wild hemp.

57.19 	Sec. 80. Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:
57.20 		Subd. 4.Reports. (a) The chief executive officer of every pension or investment 
57.21 	fund, corporation, limited partnership, limited liability company, or entity that is seeking 
57.22 	to qualify for an exemption from the commissioner, and the trustee of a family farm trust 
57.23 	that holds any interest in agricultural land or land used for the breeding, feeding, pasturing, 
57.24 	growing, or raising of livestock, dairy or poultry, or products thereof, or land used for 
57.25 	the production of agricultural crops or fruit or other horticultural products, other than a 
57.26 	bona fide encumbrance taken for purposes of security, or which is engaged in farming 
57.27 	or proposing to commence farming in this state after May 20, 1973, shall file with the 
57.28 	commissioner a report containing the following information and documents:
57.29 	(1) the name of the pension or investment fund, corporation, limited partnership, or 
57.30 	limited liability company and its place of incorporation, certification, or registration;
57.31 	(2) the address of the pension or investment plan headquarters or of the registered 
57.32 	office of the corporation in this state, the name and address of its registered agent in this state 
58.1 	and, in the case of a foreign corporation, limited partnership, or limited liability company, 
58.2 	the address of its principal office in its place of incorporation, certification, or registration;
58.3 	(3) the acreage and location listed by quarter-quarter section, township, and county 
58.4 	of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry 
58.5 	in this state owned or leased by the pension or investment fund, limited partnership, 
58.6 	corporation, or limited liability company;
58.7 	(4) the names and addresses of the officers, administrators, directors, or trustees of 
58.8 	the pension or investment fund, or of the officers, shareholders owning more than ten 
58.9 	percent of the stock, including the percent of stock owned by each such shareholder, the 
58.10 	members of the board of directors of the corporation, and the members of the limited 
58.11 	liability company, and the general and limited partners and the percentage of interest in 
58.12 	the partnership by each partner;
58.13 	(5) the farm products which the pension or investment fund, limited partnership, 
58.14 	corporation, or limited liability company produces or intends to produce on its agricultural 
58.15 	land;
58.16 	(6) with the first report, a copy of the title to the property where the farming operations 
58.17 	are or will occur indicating the particular exception claimed under subdivision 3; and
58.18 	(7) with the first or second report, a copy of the conservation plan proposed by the 
58.19 	soil and water conservation district, and with subsequent reports a statement of whether 
58.20 	the conservation plan was implemented.
58.21 	The report of a corporation, trust, limited liability company, or partnership seeking 
58.22 	to qualify hereunder as a family farm corporation, an authorized farm corporation, an 
58.23 	authorized livestock farm corporation, a family farm partnership, an authorized farm 
58.24 	partnership, a family farm limited liability company, an authorized farm limited liability 
58.25 	company, or a family farm trust or under an exemption from the commissioner shall 
58.26 	contain the following additional information: the number of shares, partnership interests, 
58.27 	or governance and financial rights owned by persons or current beneficiaries of a family 
58.28 	farm trust residing on the farm or actively engaged in farming, or their relatives within 
58.29 	the third degree of kindred according to the rules of the civil law or their spouses; the 
58.30 	name, address, and number of shares owned by each shareholder, partnership interests 
58.31 	owned by each partner or governance and financial rights owned by each member, and a 
58.32 	statement as to percentage of gross receipts of the corporation derived from rent, royalties, 
58.33 	dividends, interest, and annuities. No pension or investment fund, limited partnership, 
58.34 	corporation, or limited liability company shall commence farming in this state until the 
58.35 	commissioner has inspected the report and certified that its proposed operations comply 
58.36 	with the provisions of this section.
59.1 	(b) Every pension or investment fund, limited partnership, trust, corporation, or 
59.2 	limited liability company as described in paragraph (a) shall, prior to April 15 of each 
59.3 	year, file with the commissioner a report containing the information required in paragraph 
59.4 	(a), based on its operations in the preceding calendar year and its status at the end of the 
59.5 	year. A pension or investment fund, limited partnership, corporation, or limited liability 
59.6 	company that does not file the report by April 15 must pay a $500 civil penalty. The 
59.7 	penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.
59.8 	(c) The commissioner may, for good cause shown, issue a written waiver or 
59.9 	reduction of the civil penalty for failure to make a timely filing of the annual report 
59.10 	required by this subdivision. The waiver or reduction is final and conclusive with respect 
59.11 	to the civil penalty, and may not be reopened or modified by an officer, employee, or 
59.12 	agent of the state, except upon a showing of fraud or malfeasance or misrepresentation 
59.13 	of a material fact. The report required under paragraph (b) must be completed prior to a 
59.14 	reduction or waiver under this paragraph. The commissioner may enter into an agreement 
59.15 	under this paragraph only once for each corporation or partnership.
59.16 	(d) A report required under paragraph (a) or (b) must be submitted with a filing fee 
59.17 	of $15. The fee must be deposited in the state treasury and credited to an account in 
59.18 	the agricultural fund. Money in the account, including interest, is appropriated to the 
59.19 	commissioner for the administrative expenses of this section.
59.20 	(d) (e) Failure to file a required report or the willful filing of false information is a 
59.21 	gross misdemeanor.

59.22 	Sec. 81. Minnesota Statutes 2014, section 583.215, is amended to read:
59.23 	583.215 EXPIRATION. 
59.24 	Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 
59.25 	to 583.32, expire June 30, 2016 2017.

59.26 	EFFECTIVE DATE. This section is effective May 23, 2016, if the legislature does 
59.27 	not meet in regular session in calendar year 2016 before May 23, 2016. If the legislature 
59.28 	meets in regular session in calendar year 2016 before May 23, 2016, this section is void.

59.29 	Sec. 82. Laws 2014, chapter 312, article 12, section 3, is amended to read:

59.30	Sec. 3. AGRICULTURE.
 	$
	-0-
	$
	2,750,000
	
59.31 	$2,000,000 in 2015 is for a grant to Second 
59.32 	Harvest Heartland on behalf of the six 
59.33 	Feeding America food banks that serve 
60.1 	Minnesota to compensate agricultural 
60.2 	producers and processors for costs incurred 
60.3 	to harvest and package for transfer surplus 
60.4 	fruits, vegetables, or other agricultural 
60.5 	commodities that would otherwise go 
60.6 	unharvested or, be discarded, or be sold in 
60.7 	a secondary market. Surplus commodities 
60.8 	must be distributed statewide to food 
60.9 	shelves and other charitable organizations 
60.10 	that are eligible to receive food from the 
60.11 	food banks. Surplus food acquired under 
60.12 	this appropriation must be from Minnesota 
60.13 	producers and processors. Second Harvest 
60.14 	Heartland must report when required by, and 
60.15 	in the form prescribed by, the commissioner. 
60.16 	For fiscal year 2015, Second Harvest 
60.17 	Heartland may use up to 11 percent of any 
60.18 	grant received for administrative expenses 
60.19 	and up to four percent of the grant for 
60.20 	transportation expenses. For fiscal years 
60.21 	2016 and 2017, Second Harvest Heartland 
60.22 	may use up to five percent of any grant 
60.23 	received for administrative expenses. This 
60.24 	is a onetime appropriation and is available 
60.25 	until June 30, 2017.
60.26 	The commissioner shall examine how other 
60.27 	states are implementing the industrial hemp 
60.28 	research authority provided in Public Law 
60.29 	113-79 and gauge the interest of Minnesota 
60.30 	higher education institutions. No later 
60.31 	than January 15, 2015, the commissioner 
60.32 	must report the information and items for 
60.33 	legislative consideration to the legislative 
60.34 	committees with jurisdiction over agriculture 
60.35 	policy and finance.
61.1 	$350,000 in 2015 is for an increase in retail 
61.2 	food handler inspections.
61.3 	$200,000 in 2015 is added to the 
61.4 	appropriation in Laws 2013, chapter 114, 
61.5 	article 1, section 3, subdivision 4, for 
61.6 	distribution to the state's county fairs. This is 
61.7 	a onetime appropriation.
61.8 	$200,000 in 2015 is for a grant as determined 
61.9 	by the commissioner to a public higher 
61.10 	education institution to research porcine 
61.11 	epidemic diarrhea virus. This is a onetime 
61.12 	appropriation and is available until June 30, 
61.13 	2017.

61.14 	Sec. 83. LIVESTOCK INDUSTRY STUDY.
 61.15 	The commissioner of agriculture must identify causes of the relative growth or 
61.16 	decline in the number of head of poultry and livestock produced in Minnesota, Iowa, 
61.17 	North Dakota, South Dakota, Wisconsin, and Nebraska over the last ten years, including 
61.18 	but not limited to the impact of nuisance conditions and lawsuits filed against poultry or 
61.19 	livestock farms. No later than February 1, 2016, the commissioner must report findings 
61.20 	by poultry and livestock sector and provide recommendations on how to strengthen and 
61.21 	expand Minnesota animal agriculture to the legislative committees with jurisdiction over 
61.22 	agriculture policy and finance.

61.23 	Sec. 84. CORRECTIONAL FACILITY VOCATIONAL TRAINING PILOT 
61.24 	PROGRAM.
61.25 		Subdivision 1.Pilot program. The commissioner of agriculture must coordinate 
61.26 	a pilot program operated by the Northeast Regional Corrections Center to train inmates 
61.27 	for careers as meat cutters upon release. The commissioner must facilitate program 
61.28 	development and ensure that the program prepares inmates to meet applicable food safety 
61.29 	and licensure requirements.
61.30 		Subd. 2.Program development. In facilitating development of the pilot program, 
61.31 	the commissioner must consult with the commissioner of employment and economic 
61.32 	development and a representative of each of the following organizations:
61.33 	(1) Northeast Regional Corrections Center; and
61.34 	(2) United Food and Commercial Workers.
62.1 		Subd. 3.Report required. No later than February 1, 2017, the commissioner must 
62.2 	report on the progress and outcomes of the program to the legislative committees with 
62.3 	jurisdiction over agriculture, economic development, higher education, and public safety.
62.4 		Subd. 4.Expiration. This section expires on June 30, 2017.

62.5 	Sec. 85. URBAN AGRICULTURE DEVELOPMENT PROPOSAL.
 62.6 	The commissioner of agriculture must convene interested stakeholders and develop 
62.7 	a proposal to effectively and efficiently promote urban agriculture in Minnesota cities. 
62.8 	For purposes of this section, "urban agriculture" means producing agricultural plants, 
62.9 	poultry, or livestock on public or private property within city limits. No later than January 
62.10 	15, 2016, the commissioner must report to the legislative committees with jurisdiction 
62.11 	over agriculture policy and finance and submit proposed legislation that includes a new 
62.12 	definition of urban agriculture if the commissioner and stakeholders determine that a 
62.13 	different definition more accurately defines urban agriculture.

62.14 	Sec. 86. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
 62.15 	The balances in the accounts created under Minnesota Statutes, sections 41B.03, 
62.16 	subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision 
62.17 	4, are transferred to the Rural Finance Authority administrative account established under 
62.18 	Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
62.19 	The balance in the account created under Minnesota Statutes, section 17.115, 
62.20 	is transferred to the Rural Finance Authority revolving loan account established under 
62.21 	Minnesota Statutes, section 41B.06, and the original account is abolished.

62.22 	Sec. 87.  REPEALER.
 62.23 	Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and 
62.24 	116V.03, are repealed.

62.25 	Sec. 88. EFFECTIVE DATE.
 62.26 	(a) Sections 62 to 77 and section 86 are effective the day following final enactment.
62.27 	(b) Laws 2015, chapter 44, sections 22 to 26 and section 29, are effective the day 
62.28 	following final enactment.