1.1 	A bill for an act
1.2 	relating to state government; appropriating money for agriculture and housing 
1.3 	programs; making changes to programs and policy; establishing a shrimp production 
1.4 	incentive program; establishing a wolf-livestock conflict prevention pilot program; 
1.5 	requiring reports;amending Minnesota Statutes 2016, sections 17.119, subdivisions 
1.6 	1, 2; 18.79, subdivision 18; 18B.03, by adding a subdivision; 41A.20, subdivision 
1.7 	2; 462A.2035; proposing coding for new law in Minnesota Statutes, chapter 41A; 
1.8 	repealing Minnesota Statutes 2016, section 41A.20, subdivision 6.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	ARTICLE 1
1.11 	AGRICULTURE AND RURAL DEVELOPMENT

1.12	Section 1. AGRICULTURE APPROPRIATIONS.
 	
1.13 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.14 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.15 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.16 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
1.17 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
1.18 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
1.19 	is fiscal years 2018 and 2019.

1.20				APPROPRIATIONS
	
1.21				Available for the Year
	
1.22				Ending June 30
	
1.23					2018
		2019

1.24	Sec. 2. DEPARTMENT OF AGRICULTURE

1.25	Subdivision 1.Total Appropriation
 	$
	50,720,000
	$
	50,174,000

2.1	Appropriations by Fund
	
2.2		2018
	2019
	
2.3	General
	50,332,000
	49,786,000
	
2.4	Remediation
	388,000
	388,000
	
2.5 	The amounts that may be spent for each 
2.6 	purpose are specified in the following 
2.7 	subdivisions.

2.8	Subd. 2.Protection Services
 		17,041,000
		17,041,000

2.9	Appropriations by Fund
	
2.10		2018
	2019
	
2.11	General
	16,653,000
	16,653,000
	
2.12	Remediation
	388,000
	388,000
	
2.13 	(a) $25,000 the first year and $25,000 the 
2.14 	second year are to develop and maintain 
2.15 	cottage food license exemption outreach and 
2.16 	training materials.
2.17 	(b) $75,000 the first year and $75,000 the 
2.18 	second year are to coordinate the correctional 
2.19 	facility vocational training program.
2.20 	(c) $388,000 the first year and $388,000 the 
2.21 	second year are from the remediation fund for 
2.22 	administrative funding for the voluntary 
2.23 	cleanup program.
2.24 	(d) $175,000 the first year and $175,000 the 
2.25 	second year are for compensation for 
2.26 	destroyed or crippled animals under Minnesota 
2.27 	Statutes, section 3.737. This appropriation 
2.28 	may be spent to compensate for animals that 
2.29 	were destroyed or crippled during fiscal year 
2.30 	2017. If the amount in the first year is 
2.31 	insufficient, the amount in the second year is 
2.32 	available in the first year.
2.33 	(e) $125,000 the first year and $125,000 the 
2.34 	second year are for compensation for crop 
3.1 	damage under Minnesota Statutes, section 
3.2 	3.7371. If the amount in the first year is 
3.3 	insufficient, the amount in the second year is 
3.4 	available in the first year.
3.5 	If the commissioner determines that claims 
3.6 	made under Minnesota Statutes, section 3.737 
3.7 	or 3.7371, are unusually high, amounts 
3.8 	appropriated for either program may be 
3.9 	transferred to the appropriation for the other 
3.10 	program.
3.11 	(f) $300,000 the first year and $300,000 the 
3.12 	second year are for deposit in the noxious 
3.13 	weed and invasive plant species assistance 
3.14 	account established under Minnesota Statutes, 
3.15 	section 18.89, to be used to implement the 
3.16 	noxious weed grant program under Minnesota 
3.17 	Statutes, section 18.90, with preference given 
3.18 	to local units of government responding to 
3.19 	palmer amaranth or other weeds on the 
3.20 	eradicate list. This is a onetime appropriation.
3.21 	(g) $150,000 the first year and $150,000 the 
3.22 	second year are for wolf-livestock conflict 
3.23 	prevention grants under section 11. The 
3.24 	commissioner must submit a report to the 
3.25 	chairs and ranking minority members of the 
3.26 	legislative committees with jurisdiction over 
3.27 	agriculture policy and finance by January 15, 
3.28 	2020, on the outcomes of the wolf-livestock 
3.29 	conflict prevention grants and whether 
3.30 	livestock compensation claims were reduced 
3.31 	in the areas that grants were awarded. This is 
3.32 	a onetime appropriation.

4.1
4.2	Subd. 3.Agricultural Marketing and 
Development
 		4,096,000
		3,996,000
	
4.3 	(a) The commissioner must provide outreach 
4.4 	to urban farmers regarding the department's 
4.5 	financial and technical assistance programs 
4.6 	and must assist urban farmers in applying for 
4.7 	assistance.
4.8 	(b) $186,000 the first year and $186,000 the 
4.9 	second year are for transfer to the Minnesota 
4.10 	grown account and may be used as grants for 
4.11 	Minnesota grown promotion under Minnesota 
4.12 	Statutes, section 17.102. Grants may be made 
4.13 	for one year. Notwithstanding Minnesota 
4.14 	Statutes, section 16A.28, the appropriations 
4.15 	encumbered under contract on or before June 
4.16 	30, 2019, for Minnesota grown grants in this 
4.17 	paragraph are available until June 30, 2021.
4.18 	(c) $634,000 the first year and $634,000 the 
4.19 	second year are for continuation of the dairy 
4.20 	development and profitability enhancement 
4.21 	and dairy business planning grant programs 
4.22 	established under Laws 1997, chapter 216, 
4.23 	section 7, subdivision 2, and Laws 2001, First 
4.24 	Special Session chapter 2, section 9, 
4.25 	subdivision 2. The commissioner may allocate 
4.26 	the available sums among permissible 
4.27 	activities, including efforts to improve the 
4.28 	quality of milk produced in the state, in the 
4.29 	proportions that the commissioner deems most 
4.30 	beneficial to Minnesota's dairy farmers. The 
4.31 	commissioner must submit a detailed 
4.32 	accomplishment report and a work plan 
4.33 	detailing future plans for, and anticipated 
4.34 	accomplishments from, expenditures under 
4.35 	this program to the chairs and ranking minority 
5.1 	members of the legislative committees with 
5.2 	jurisdiction over agriculture policy and finance 
5.3 	on or before the start of each fiscal year. If 
5.4 	significant changes are made to the plans in 
5.5 	the course of the year, the commissioner must 
5.6 	notify the chairs and ranking minority 
5.7 	members.
5.8 	(d) $100,000 the first year is for grants to 
5.9 	ethnic minority chambers of commerce to 
5.10 	connect immigrants and new American 
5.11 	citizens to farming opportunities in this state. 
5.12 	This is a onetime appropriation and is 
5.13 	available until June 30, 2019.
5.14 	(e) The commissioner may use funds 
5.15 	appropriated in this subdivision for annual 
5.16 	cost-share payments to resident farmers or 
5.17 	entities that sell, process, or package 
5.18 	agricultural products in this state for the costs 
5.19 	of organic certification. The commissioner 
5.20 	may allocate these funds for assistance for 
5.21 	persons transitioning from conventional to 
5.22 	organic agriculture.

5.23
5.24	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		21,860,000
		21,860,000
	
5.25 	(a) $8,500,000 the first year and $8,500,000 
5.26 	the second year are for transfer to the 
5.27 	agriculture research, education, extension, and 
5.28 	technology transfer account under Minnesota 
5.29 	Statutes, section 41A.14, subdivision 3. Of 
5.30 	these amounts, at least $600,000 each year is 
5.31 	for the Minnesota Agricultural Experiment 
5.32 	Station's Agriculture Rapid Response Fund 
5.33 	under Minnesota Statutes, section 41A.14, 
5.34 	subdivision 1, clause (2). Of the amount 
5.35 	appropriated in this paragraph, for fiscal years 
6.1 	2018 and 2019 only, $1,000,000 each year is 
6.2 	for transfer to the Board of Regents of the 
6.3 	University of Minnesota for research on avian 
6.4 	influenza, including prevention measures that 
6.5 	can be taken. Of the amount appropriated in 
6.6 	this paragraph, $2,000,000 each year is for 
6.7 	grants to the Minnesota Agriculture Education 
6.8 	Leadership Council to enhance agricultural 
6.9 	education with priority given to Farm Business 
6.10 	Management challenge grants. The 
6.11 	commissioner shall transfer the remaining 
6.12 	grant funds in this appropriation each year to 
6.13 	the Board of Regents of the University of 
6.14 	Minnesota for purposes of Minnesota Statutes, 
6.15 	section 41A.14.
6.16 	To the extent practicable, funds expended 
6.17 	under Minnesota Statutes, section 41A.14, 
6.18 	subdivision 1, clauses (1) and (2), must 
6.19 	supplement and not supplant existing sources 
6.20 	and levels of funding. The commissioner may 
6.21 	use up to 4.5 percent of this appropriation for 
6.22 	costs incurred to administer the program. Any 
6.23 	unencumbered balance does not cancel at the 
6.24 	end of the first year and is available for the 
6.25 	second year.
6.26 	(b) $350,000 the first year and $350,000 the 
6.27 	second year are for grants to the Board of 
6.28 	Regents of the University of Minnesota for 
6.29 	potato breeding. This is a onetime 
6.30 	appropriation.
6.31 	(c) $450,000 the first year and $450,000 the 
6.32 	second year are for grants to the Board of 
6.33 	Regents of the University of Minnesota for 
6.34 	the cultivated wild rice breeding project at the 
7.1 	North Central Research and Outreach Center. 
7.2 	This is a onetime appropriation.
7.3 	(d) $12,535,000 the first year and $12,535,000 
7.4 	the second year are for the agricultural growth, 
7.5 	research, and innovation program in 
7.6 	Minnesota Statutes, section 41A.12. Grants 
7.7 	may be awarded in the following areas: 
7.8 	developing new markets for Minnesota 
7.9 	farmers; developing urban agriculture; 
7.10 	beginning or expanding livestock operations; 
7.11 	assisting value-added agricultural businesses 
7.12 	to begin or expand; development or expansion 
7.13 	of food hubs and other community-based food 
7.14 	distribution systems; expanding or improving 
7.15 	biofuels infrastructure at the retail and 
7.16 	distribution level; farm business management 
7.17 	scholarships; and research on bioenergy, 
7.18 	biobased content, or biobased formulated 
7.19 	products.
7.20 	Of the amount appropriated for the agricultural 
7.21 	growth, research, and innovation program in 
7.22 	Minnesota Statutes, section 41A.12:
7.23 	(1) $1,000,000 the first year and $1,000,000 
7.24 	the second year are for distribution in equal 
7.25 	amounts to each of the state's county fairs to 
7.26 	preserve and promote Minnesota agriculture;
7.27 	(2) $1,500,000 the first year and $1,500,000 
7.28 	the second year are for incentive payments 
7.29 	under Minnesota Statutes, sections 41A.16, 
7.30 	41A.17, and 41A.18;
7.31 	(3) $3,000,000 the first year and $3,000,000 
7.32 	the second year are for livestock investment 
7.33 	grants under Minnesota Statutes, section 
7.34 	17.118;
8.1 	(4) $3,000,000 the first year and $3,000,000 
8.2 	the second year are for value-added agriculture 
8.3 	grants;
8.4 	(5) $1,000,000 the first year and $1,000,000 
8.5 	the second year are for grants to install 
8.6 	equipment necessary to store or dispense 
8.7 	biofuels to the public in order to meet the 
8.8 	biofuel requirement goals established under 
8.9 	Minnesota Statutes, section 239.7911; and
8.10 	(6) $350,000 the first year and $350,000 the 
8.11 	second year are for grants to expand 
8.12 	Minnesota agriculture, including 
8.13 	Minnesota-grown hemp, to new markets.
8.14 	For value-added agriculture grants under 
8.15 	clause (4), the commissioner may award up 
8.16 	to two grants of up to $750,000 per grant for 
8.17 	new or expanding livestock product processing 
8.18 	facilities or dairy product processing facilities 
8.19 	that provide significant economic impact to 
8.20 	the region. The remaining value-added 
8.21 	agriculture grants are for awards between 
8.22 	$1,000 and $200,000 per grant. The 
8.23 	appropriations in clauses (3), (4), (5), and (6), 
8.24 	are onetime. If the appropriation for incentive 
8.25 	payments in clause (2) exceeds the total 
8.26 	amount for which all producers are eligible in 
8.27 	a fiscal year, the balance of the appropriation 
8.28 	is available for the agricultural growth, 
8.29 	research, and innovation program. Any 
8.30 	unencumbered balance does not cancel at the 
8.31 	end of the first year and is available for the 
8.32 	second year.
8.33 	Notwithstanding Minnesota Statutes, section 
8.34 	16A.28, the appropriations encumbered under 
8.35 	contract before June 30, 2019, under the 
9.1 	agricultural growth, research, and innovation 
9.2 	program in Minnesota Statutes, section 
9.3 	41A.12. The commissioner may use up to 6.5 
9.4 	percent of this appropriation for costs incurred 
9.5 	to administer the program.
9.6 	The base budget for the agricultural growth, 
9.7 	research, and innovation program for fiscal 
9.8 	year 2020 and later is $14,166,000 each fiscal 
9.9 	year. Of this amount:
9.10 	(1) $1,000,000 each year is for distribution in 
9.11 	equal amounts to each of the state's county 
9.12 	fairs to preserve and promote Minnesota 
9.13 	agriculture;
9.14 	(2) $1,500,000 each year is for incentive 
9.15 	payments under Minnesota Statutes, sections 
9.16 	41A.16, 41A.17, and 41A.18;
9.17 	(3) $3,000,000 each year is for siding 
9.18 	production incentive payments under 
9.19 	Minnesota Statutes, section 41A.20; and
9.20 	(4) $5,000,000 each year is for shrimp 
9.21 	production incentive payments under 
9.22 	Minnesota Statutes, section 41A.21.
9.23 	(e) $25,000 the first year and $25,000 the 
9.24 	second year are for grants to the Southern 
9.25 	Minnesota Initiative Foundation to promote 
9.26 	local foods through an annual event that raises 
9.27 	public awareness of local foods and connects 
9.28 	local food producers and processors with 
9.29 	potential buyers.

9.30	Subd. 5.Administration and Financial Assistance
 		7,723,000
		7,277,000
	
9.31 	(a) $474,000 the first year and $474,000 the 
9.32 	second year are for payments to county and 
9.33 	district agricultural societies and associations 
9.34 	under Minnesota Statutes, section 38.02, 
10.1 	subdivision 1. Aid payments to county and 
10.2 	district agricultural societies and associations 
10.3 	shall be disbursed no later than July 15 of each 
10.4 	year. These payments are the amount of aid 
10.5 	from the state for an annual fair held in the 
10.6 	previous calendar year.
10.7 	(b) $1,000 the first year and $1,000 the second 
10.8 	year are for grants to the Minnesota State 
10.9 	Poultry Association.
10.10 	(c) $18,000 the first year and $18,000 the 
10.11 	second year are for grants to the Minnesota 
10.12 	Livestock Breeders Association.
10.13 	(d) $47,000 the first year and $47,000 the 
10.14 	second year are for the Northern Crops 
10.15 	Institute. These appropriations may be spent 
10.16 	to purchase equipment.
10.17 	(e) $200,000 the first year and $200,000 the 
10.18 	second year are for farm advocate services.
10.19 	(f) $17,000 the first year and $17,000 the 
10.20 	second year are for grants to the Minnesota 
10.21 	Horticultural Society.
10.22 	(g) $108,000 the first year and $108,000 the 
10.23 	second year are for annual grants to the 
10.24 	Minnesota Turf Seed Council for basic and 
10.25 	applied research on: (1) the improved 
10.26 	production of forage and turf seed related to 
10.27 	new and improved varieties; and (2) native 
10.28 	plants, including plant breeding, nutrient 
10.29 	management, pest management, disease 
10.30 	management, yield, and viability. The grant 
10.31 	recipient may subcontract with a qualified 
10.32 	third party for some or all of the basic or 
10.33 	applied research. Any unencumbered balance 
10.34 	does not cancel at the end of the first year and 
11.1 	is available for the second year. This is a 
11.2 	onetime appropriation.
11.3 	(h) $113,000 the first year and $113,000 the 
11.4 	second year are for transfer to the Board of 
11.5 	Trustees of the Minnesota State Colleges and 
11.6 	Universities for statewide mental health 
11.7 	counseling support to farm families and 
11.8 	business operators. South Central College shall 
11.9 	serve as the fiscal agent.
11.10 	(i) $550,000 the first year and $550,000 the 
11.11 	second year are for grants to Second Harvest 
11.12 	Heartland on behalf of Minnesota's six 
11.13 	Feeding America food banks for the purchase 
11.14 	of milk for distribution to Minnesota's food 
11.15 	shelves and other charitable organizations that 
11.16 	are eligible to receive food from the food 
11.17 	banks. Milk purchased under the grants must 
11.18 	be acquired from Minnesota milk processors 
11.19 	and based on low-cost bids. The milk must be 
11.20 	allocated to each Feeding America food bank 
11.21 	serving Minnesota according to the formula 
11.22 	used in the distribution of United States 
11.23 	Department of Agriculture commodities under 
11.24 	The Emergency Food Assistance Program 
11.25 	(TEFAP). Second Harvest Heartland must 
11.26 	submit quarterly reports to the commissioner 
11.27 	on forms prescribed by the commissioner. The 
11.28 	reports must include, but are not limited to, 
11.29 	information on the expenditure of funds, the 
11.30 	amount of milk purchased, and the 
11.31 	organizations to which the milk was 
11.32 	distributed. Second Harvest Heartland may 
11.33 	enter into contracts or agreements with food 
11.34 	banks for shared funding or reimbursement of 
11.35 	the direct purchase of milk. Each food bank 
12.1 	receiving money from this appropriation may 
12.2 	use up to two percent of the grant for 
12.3 	administrative expenses. Any unencumbered 
12.4 	balance does not cancel at the end of the first 
12.5 	year and is available for the second year.
12.6 	(j) $1,100,000 the first year and $1,100,000 
12.7 	the second year are for grants to Second 
12.8 	Harvest Heartland on behalf of the six Feeding 
12.9 	America food banks that serve Minnesota to 
12.10 	compensate agricultural producers and 
12.11 	processors for costs incurred to harvest and 
12.12 	package for transfer surplus fruits, vegetables, 
12.13 	and other agricultural commodities that would 
12.14 	otherwise go unharvested, be discarded, or 
12.15 	sold in a secondary market. Surplus 
12.16 	commodities must be distributed statewide to 
12.17 	food shelves and other charitable organizations 
12.18 	that are eligible to receive food from the food 
12.19 	banks. Surplus food acquired under this 
12.20 	appropriation must be from Minnesota 
12.21 	producers and processors. Second Harvest 
12.22 	Heartland must report when required by, and 
12.23 	in the form prescribed by, the commissioner. 
12.24 	Second Harvest Heartland may use up to 11 
12.25 	percent of any grant received for 
12.26 	administrative expenses, and up to four percent 
12.27 	of the grant for transportation expenses. Any 
12.28 	unencumbered balance does not cancel at the 
12.29 	end of the first year and is available for the 
12.30 	second year.
12.31 	(k) $150,000 the first year and $150,000 the 
12.32 	second year are for grants to the Center for 
12.33 	Rural Policy and Development.
12.34 	(l) $235,000 the first year and $235,000 the 
12.35 	second year are for grants to the Minnesota 
13.1 	Agricultural Education and Leadership 
13.2 	Council for programs of the council under 
13.3 	Minnesota Statutes, chapter 41D.
13.4 	(m) $600,000 the first year and $600,000 the 
13.5 	second year are for grants to the Board of 
13.6 	Regents of the University of Minnesota to 
13.7 	develop, in consultation with the 
13.8 	commissioner of agriculture and the Board of 
13.9 	Animal Health, a software tool or application 
13.10 	through the Veterinary Diagnostic Laboratory 
13.11 	that empowers veterinarians and producers to 
13.12 	understand the movement of unique pathogen 
13.13 	strains in livestock and poultry production 
13.14 	systems, monitor antibiotic resistance, and 
13.15 	implement effective biosecurity measures that 
13.16 	promote animal health and limit production 
13.17 	losses. This is a onetime appropriation.
13.18 	(n) $150,000 the first year is for tractor 
13.19 	rollover protection grants under Minnesota 
13.20 	Statutes, section 17.119. This is a onetime 
13.21 	appropriation and is available until June 30, 
13.22 	2019.
13.23 	(o) $296,000 the first year is for a grant to the 
13.24 	Board of Regents of the University of 
13.25 	Minnesota to fund the Forever Green 
13.26 	Agriculture initiative to protect the state's 
13.27 	natural resources while increasing the 
13.28 	efficiency, profitability, and productivity of 
13.29 	Minnesota farmers by incorporating perennial 
13.30 	and winter annual crops into existing 
13.31 	agricultural practices. This is a onetime 
13.32 	appropriation and is available until June 30, 
13.33 	2021.
13.34 	By January 15, 2018, the commissioner shall 
13.35 	submit a report to the chairs and ranking 
14.1 	minority members of the legislative 
14.2 	committees with jurisdiction over agricultural 
14.3 	policy and finance with a list of inspections 
14.4 	the department conducts at more frequent 
14.5 	intervals than federal law requires, an 
14.6 	explanation of why the additional inspections 
14.7 	are necessary, and provide recommendations 
14.8 	for eliminating any unnecessary inspections.

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

14.10
14.11	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,793,000
	$
	3,793,000

14.12 	Sec. 5. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:
14.13 		Subdivision 1.Grants; eligibility. (a) The commissioner must award cost-share grants 
14.14 	to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible 
14.15 	tractors with eligible rollover protective structures.
14.16 	(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented 
14.17 	cost to purchase, ship, and install an eligible rollover protective structure. The commissioner 
14.18 	must increase the a farmer's grant award amount over the 70 percent grant limitation 
14.19 	requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.
14.20 	(c) Schools are eligible for grants that cover the full amount of a school's documented 
14.21 	cost to purchase, ship, and install an eligible rollover protective structure.
14.22 	(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International 
14.23 	standard J2194 is certified to appropriate national or international rollover protection structure 
14.24 	standards with a seat belt.
14.25 	(c) (e) A tractor is eligible if the tractor was built before 1987.

14.26 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2016.

14.27 	Sec. 6. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:
14.28 		Subd. 2.Promotion; administration. The commissioner may spend up to 20 six percent 
14.29 	of total program dollars each fiscal year to promote and administer the program to Minnesota 
14.30 	farmers and schools.

15.1 	Sec. 7. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:
15.2 		Subd. 18.Noxious weed education and notification. (a) The commissioner shall 
15.3 	disseminate information and conduct educational campaigns with respect to control of 
15.4 	noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts 
15.5 	to eliminate or manage these plants. The commissioner shall call and attend meetings and 
15.6 	conferences dealing with the subject of noxious weeds. The commissioner shall maintain 
15.7 	on the department's Web site noxious weed management information including but not 
15.8 	limited to the roles and responsibilities of citizens and government entities under sections 
15.9 	18.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious 
15.10 	weed issue.
15.11 	(b) The commissioner shall post notice on the commissioner's Web site and in appropriate 
15.12 	agricultural media when a weed on the eradicate list is confirmed for the first time in a 
15.13 	county. The commissioner shall work with stakeholders, including the Board of Water and 
15.14 	Soil Resources, the commissioner of natural resources, soil and water conservation districts, 
15.15 	University of Minnesota Extension, county agricultural inspectors, and local weed inspectors 
15.16 	to eradicate the weed in Minnesota.

15.17 	Sec. 8. Minnesota Statutes 2016, section 18B.03, is amended by adding a subdivision to 
15.18 	read:
15.19 		Subd. 5.Label compliance. Unless explicitly required by the FIFRA, the commissioner 
15.20 	must not require an applicator to demonstrate label compliance or need prior to applying a 
15.21 	pesticide.

15.22 	Sec. 9. Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:
15.23 		Subd. 2.Eligibility. (a) A facility eligible for payment under this section must source 
15.24 	at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from 
15.25 	the state border, raw materials may be sourced from within a 100-mile radius. Raw materials 
15.26 	must be from forest resources. The facility must be located in Minnesota, must begin 
15.27 	production at a specific location by June 30, 2025, and must not begin operating before July 
15.28 	1, 2017 2019. Eligible facilities include existing companies and facilities that are adding 
15.29 	siding production capacity, or retrofitting existing capacity, as well as new companies and 
15.30 	facilities. Eligible siding production facilities must produce at least 200,000,000 siding 
15.31 	square feet on a 3/8 inch nominal basis of siding each year.
15.32 	(b) No payments shall be made for siding production that occurs after June 30, 2035, 
15.33 	for those eligible producers under paragraph (a).
16.1 	(c) An eligible producer of siding shall not transfer the producer's eligibility for payments 
16.2 	under this section to a facility at a different location.
16.3 	(d) A producer that ceases production for any reason is ineligible to receive payments 
16.4 	under this section until the producer resumes production.

16.5 	Sec. 10. [41A.21] SHRIMP PRODUCTION INCENTIVE.
16.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
16.7 	subdivision have the meanings given them.
16.8 	(b) "Commissioner" means the commissioner of agriculture.
16.9 	(c) "Feed" means pelletized material produced from agricultural sources.
16.10 		Subd. 2.Eligibility. (a) A facility eligible for payment under this section must acquire 
16.11 	at least 80 percent of feed from Minnesota. The facility must be located in Minnesota, must 
16.12 	begin production at a specific location by June 30, 2025, and must not begin production 
16.13 	before July 1, 2019. Eligible facilities include existing companies and facilities that are 
16.14 	adding shrimp production capacity, or retrofitting existing capacity, as well as new companies 
16.15 	and facilities. Eligible shrimp production facilities must produce at least 25,000 pounds of 
16.16 	shrimp each quarter.
16.17 	(b) No payments shall be made for shrimp production that occurs after June 30, 2030, 
16.18 	for those eligible producers under paragraph (a).
16.19 	(c) An eligible producer of shrimp shall not transfer the producer's eligibility for payments 
16.20 	under this section to a facility at a different location.
16.21 	(d) A producer that ceases production for any reason is ineligible to receive payments 
16.22 	under this section until the producer resumes production.
16.23 		Subd. 3.Payment amounts; limits. (a) The commissioner shall make payments to 
16.24 	eligible producers of shrimp. The amount of the payment for each eligible producer's 
16.25 	quarterly production is 69 cents per pound of shrimp produced at a specific location for five 
16.26 	years after the start of production.
16.27 	(b) Total payments under this section to an eligible shrimp producer in a quarter may 
16.28 	not exceed the amount necessary for 2,000,000 pounds of shrimp produced. Total payments 
16.29 	under this section to all eligible shrimp producers in a quarter may not exceed $1,250,000. 
16.30 	If the total amount for which all shrimp producers are eligible in a quarter exceeds the 
16.31 	amount available for payments, the commissioner shall award payments on a pro rata basis 
16.32 	within the limits of available funding.
17.1 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
17.2 	one shrimp facility is considered a single eligible producer.
17.3 		Subd. 4.Claims. (a) By the last day of October, January, April, and July, each eligible 
17.4 	shrimp producer shall file a claim for payment for shrimp production during the preceding 
17.5 	three calendar months. An eligible shrimp producer that files a claim under this subdivision 
17.6 	shall include a statement of the eligible producer's total pounds of shrimp produced during 
17.7 	the quarter covered by the claim. For each claim and statement of total pounds of shrimp 
17.8 	filed under this subdivision, the pounds of shrimp produced must be examined by a certified 
17.9 	public accounting firm with a valid permit to practice under chapter 326A, in accordance 
17.10 	with Statements on Standards for Attestation Engagements established by the American 
17.11 	Institute of Certified Public Accountants.
17.12 	(b) The commissioner must issue payments by November 15, February 15, May 15, and 
17.13 	August 15. A separate payment must be made for each claim filed.
17.14 		Subd. 5.Report. By January 15 each year, the commissioner shall report on the program 
17.15 	under this section to the legislative committees with jurisdiction over agricultural policy 
17.16 	and finance. The report shall include information on production and incentive expenditures 
17.17 	under the program.

17.18 	Sec. 11. WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.
 17.19 	(a) The commissioner of agriculture may award grants to livestock producers to prevent 
17.20 	wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to apply for 
17.21 	reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner 
17.22 	may establish a cap on the amount a recipient may receive annually.
17.23 	(b) To be eligible for the grant under this section, a livestock producer must raise livestock 
17.24 	within Minnesota's wolf range or on property determined by the commissioner to be affected 
17.25 	by wolf-livestock conflicts.
17.26 	(c) Eligible wolf-livestock conflict prevention activities include, but are not limited to:
17.27 	(1) the purchase of guard animals;
17.28 	(2) veterinary costs for guard animals;
17.29 	(3) the installation of wolf barriers; wolf barriers may include pens, fladry, and fencing;
17.30 	(4) the installation of wolf-deterring lights and alarms; and
17.31 	(5) calving or lambing shelters.
18.1 	(d) Eligible grant recipients must:
18.2 	(1) make a good-faith effort to avoid wolf-livestock conflicts;
18.3 	(2) make a good-faith effort to care for guard animals paid for under this section;
18.4 	(3) retain proper documentation of expenses;
18.5 	(4) report annually to the commissioner on the effectiveness of the nonlethal methods 
18.6 	employed; and
18.7 	(5) allow follow-up evaluation and monitoring by the commissioner.
18.8 	(e) Grant recipients shall continue to be eligible for depredation payments under 
18.9 	Minnesota Statutes, section 3.737.

18.10 	Sec. 12.  REPEALER.
 18.11 	Minnesota Statutes 2016, section 41A.20, subdivision 6, is repealed.

18.12 	ARTICLE 2
18.13 	HOUSING

18.14	Section 1. HOUSING APPROPRIATIONS.
 	
18.15 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
18.16 	and for the purposes specified in this article. The appropriations are from the general fund, 
18.17 	or another named fund, and are available for the fiscal years indicated for each purpose. 
18.18 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
18.19 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
18.20 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
18.21 	is fiscal years 2018 and 2019.

18.22				APPROPRIATIONS
	
18.23				Available for the Year
	
18.24				Ending June 30
	
18.25					2018
		2019

18.26	Sec. 2. HOUSING FINANCE AGENCY

18.27	Subdivision 1.Total Appropriation
 	$
	50,798,000
	$
	50,798,000
	
18.28 	The amounts that may be spent for each 
18.29 	purpose are specified in the following 
18.30 	subdivisions.
19.1 	Unless otherwise specified, this appropriation 
19.2 	is for transfer to the housing development fund 
19.3 	for the programs specified in this section. 
19.4 	Except as otherwise indicated, this transfer is 
19.5 	part of the agency's permanent budget base.

19.6	Subd. 2.Challenge Program
 		13,525,000
		13,525,000
	
19.7 	(a) $12,925,000 the first year and $12,925,000 
19.8 	the second year are for the economic 
19.9 	development and housing challenge program 
19.10 	under Minnesota Statutes, section 462A.33. 
19.11 	Of this amount, $1,208,000 each year shall be 
19.12 	made available during the first 11 months of 
19.13 	the fiscal year exclusively for housing projects 
19.14 	for American Indians. Any funds not 
19.15 	committed to housing projects for American 
19.16 	Indians in the first 11 months of the fiscal year 
19.17 	shall be available for any eligible activity 
19.18 	under Minnesota Statutes, section 462A.33.
19.19 	The appropriation may be used to finance the 
19.20 	construction or replacement of real property 
19.21 	that is located in Melrose affected by the fire 
19.22 	on September 8, 2016.
19.23 	(b)(1) $600,000 each year is for housing in 
19.24 	communities and regions that have: low 
19.25 	housing vacancy rates; cooperatively 
19.26 	developed a plan that identifies current and 
19.27 	future housing needs; evidence of anticipated 
19.28 	job expansion; are located outside the 
19.29 	metropolitan area as defined in Minnesota 
19.30 	Statutes, section 473.121, subdivision 2; and 
19.31 	have a significant portion of area employees 
19.32 	who commute more than 30 miles between 
19.33 	their residence and their employment;
19.34 	(2) among comparable housing proposals, 
19.35 	preference must be given to proposals that: 
20.1 	include a meaningful contribution from area 
20.2 	employers that reduces the need for deferred 
20.3 	loan or grant funds from state resources; or 
20.4 	provide housing opportunities for an expanded 
20.5 	range of household incomes within a 
20.6 	community or that provide housing 
20.7 	opportunities for a wide range of incomes 
20.8 	within the development; and
20.9 	(3) Notwithstanding Minnesota Statutes, 
20.10 	section 462A.33, subdivision 5, or other law 
20.11 	to the contrary, this appropriation is not 
20.12 	subject to income limitations for occupants.

20.13	Subd. 3.Housing Trust Fund
 		11,646,000
		11,646,000
	
20.14 	This appropriation is for deposit in the housing 
20.15 	trust fund account created under Minnesota 
20.16 	Statutes, section 462A.201, and may be used 
20.17 	for the purposes provided in that section.

20.18	Subd. 4.Rental Assistance for Mentally Ill
 		4,088,000
		4,088,000
	
20.19 	This appropriation is for the rental housing 
20.20 	assistance program for persons with a mental 
20.21 	illness or families with an adult member with 
20.22 	a mental illness under Minnesota Statutes, 
20.23 	section 462A.2097. Among comparable 
20.24 	proposals, the agency shall prioritize those 
20.25 	proposals that target, in part, eligible persons 
20.26 	who desire to move to more integrated, 
20.27 	community-based settings.

20.28	Subd. 5.Family Homeless Prevention
 		8,519,000
		8,519,000
	
20.29 	This appropriation is for the family homeless 
20.30 	prevention and assistance programs under 
20.31 	Minnesota Statutes, section 462A.204.

20.32	Subd. 6.Home Ownership Assistance Fund
 		885,000
		885,000
	
20.33 	This appropriation is for the home ownership 
20.34 	assistance program under Minnesota Statutes, 
21.1 	section 462A.21, subdivision 8. The base 
21.2 	amount for fiscal year 2020 and later is 
21.3 	$1,385,000 each fiscal year.

21.4	Subd. 7.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
21.5 	(a) This appropriation is for the affordable 
21.6 	rental investment fund program under 
21.7 	Minnesota Statutes, section 462A.21, 
21.8 	subdivision 8b, to finance the acquisition, 
21.9 	rehabilitation, and debt restructuring of 
21.10 	federally assisted rental property and for 
21.11 	making equity take-out loans under Minnesota 
21.12 	Statutes, section 462A.05, subdivision 39.
21.13 	(b) The owner of federally assisted rental 
21.14 	property must agree to participate in the 
21.15 	applicable federally assisted housing program 
21.16 	and to extend any existing low-income 
21.17 	affordability restrictions on the housing for 
21.18 	the maximum term permitted. The owner must 
21.19 	also enter into an agreement that gives local 
21.20 	units of government, housing and 
21.21 	redevelopment authorities, and nonprofit 
21.22 	housing organizations the right of first refusal 
21.23 	if the rental property is offered for sale. 
21.24 	Priority must be given among comparable 
21.25 	federally assisted rental properties to 
21.26 	properties with the longest remaining term 
21.27 	under an agreement for federal assistance. 
21.28 	Priority must also be given among comparable 
21.29 	rental housing developments to developments 
21.30 	that are or will be owned by local government 
21.31 	units, a housing and redevelopment authority, 
21.32 	or a nonprofit housing organization.
21.33 	(c) The appropriation also may be used to 
21.34 	finance the acquisition, rehabilitation, and debt 
21.35 	restructuring of existing supportive housing 
22.1 	properties. For purposes of this paragraph, 
22.2 	"supportive housing" means affordable rental 
22.3 	housing with links to services necessary for 
22.4 	individuals, youth, and families with children 
22.5 	to maintain housing stability.

22.6	Subd. 8.Housing Rehabilitation
 		5,915,000
		5,915,000
	
22.7 	This appropriation is for the housing 
22.8 	rehabilitation program under Minnesota 
22.9 	Statutes, section 462A.05, subdivision 14. Of 
22.10 	this amount, $2,772,000 each year is for the 
22.11 	rehabilitation of owner-occupied housing and 
22.12 	$3,143,000 each year is for the rehabilitation 
22.13 	of eligible rental housing. In administering a 
22.14 	rehabilitation program for rental housing, the 
22.15 	agency may apply the processes and priorities 
22.16 	adopted for administration of the economic 
22.17 	development and housing challenge program 
22.18 	under Minnesota Statutes, section 462A.33.

22.19
22.20	Subd. 9.Manufactured Home Park 
Infrastructure Grants
 		500,000
		500,000
	
22.21 	This appropriation is for manufactured home 
22.22 	park infrastructure grants under Minnesota 
22.23 	Statutes, section 462A.2035, subdivision 1b.  
22.24 	This is a onetime appropriation and is 
22.25 	available until June 30, 2021.

22.26
22.27	Subd. 10.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
22.28 	This appropriation is for the homeownership 
22.29 	education, counseling, and training program 
22.30 	under Minnesota Statutes, section 462A.209. 
22.31 	Build Wealth MN shall be eligible for a grant 
22.32 	under this subdivision.

22.33	Subd. 11.Capacity-Building Grants
 		645,000
		645,000
	
22.34 	This appropriation is for nonprofit 
22.35 	capacity-building grants under Minnesota 
23.1 	Statutes, section 462A.21, subdivision 3b. Of 
23.2 	this amount, $125,000 each year is for support 
23.3 	of the Homeless Management Information 
23.4 	System (HMIS).

23.5 	Sec. 3. Minnesota Statutes 2016, section 462A.2035, is amended to read:
23.6 	462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.
23.7 		Subdivision 1.Establishment. The agency shall establish a manufactured home park 
23.8 	redevelopment program for the purpose of making manufactured home park redevelopment 
23.9 	grants or loans to cities, counties, or community action programs, nonprofit organizations, 
23.10 	and cooperatives created under chapter 308A or 308B.
23.11 		Subd. 1a.Individual assistance grants. Cities, counties, and community action programs
23.12 	Eligible recipients may use individual assistance grants and loans under this program to:
23.13 	(1) provide current residents of manufactured home parks with buy-out assistance not 
23.14 	to exceed $4,000 per home with preference given to older manufactured homes; and
23.15 	(2) provide down-payment assistance for the purchase of new and preowned manufactured 
23.16 	homes that comply with the current version of the State Building Code in effect at the time 
23.17 	of the sale, not to exceed $10,000 per home; and.
23.18 	(3) make improvements in manufactured home parks as requested by the grant recipient.
23.19 		Subd. 1b.Park infrastructure grants. Eligible recipients may use park infrastructure 
23.20 	grants under this program for:
23.21 	(1) improvements in manufactured home parks; and
23.22 	(2) infrastructure, including storm shelters and community facilities.
23.23 		Subd. 2.Eligibility requirements. For individual assistance grants under subdivision 
23.24 	1a, households assisted under this section must have an annual household income at or 
23.25 	below 80 percent of the area median household income. Cities, counties, or community 
23.26 	action programs receiving funds under the program must give preference to households at 
23.27 	or below 50 percent of the area median household income. Participation in the program is 
23.28 	voluntary and no park resident shall be required to participate.
23.29 		Subd. 3.Statewide program. The agency shall attempt to make grants and loans in 
23.30 	approximately equal amounts to applicants outside and within the metropolitan area. Grants 
23.31 	and loans under this section shall be provided in a manner consistent with the agency's 
23.32 	policies and purposes in section 462A.02.
24.1 		Subd. 4.Infrastructure repair and replacement fund. Each recipient receiving a grant 
24.2 	under subdivision 1b shall provide from year-to-year, on a cumulative basis, for adequate 
24.3 	reserve funds to cover the repair and replacement of the private infrastructure systems 
24.4 	serving the community.

24.5 	Sec. 4. MINNESOTA HOUSING FINANCE AGENCY REPORT.
 24.6 	By February 1, 2018, and February 1, 2019, the Housing Finance Agency shall provide 
24.7 	to the chairs and ranking minority members of the house of representatives and senate 
24.8 	committees with jurisdiction over the agency:
24.9 	(1) a draft and final version of its affordable housing plan before and after it has been 
24.10 	submitted to the agency board for consideration; and
24.11 	(2) a report on the actual and anticipated funds available within the Housing Affordability 
24.12 	Fund, or Pool 3, and the actual and anticipated uses of those funds.

APPENDIX 

Repealed Minnesota Statutes: S0780-1 

41A.20 SIDING PRODUCTION INCENTIVE.Subd. 6.Appropriation. 
A sum sufficient to make the payments required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the general fund to the commissioner.