1.1 	A bill for an act
1.2 	relating to agriculture; appropriating money for agriculture-related purposes; 
1.3 	making policy and technical changes to agriculture-related provisions; authorizing 
1.4 	a transfer, a working group, and accounts; modifying certificate fees; requiring 
1.5 	reports;amending Minnesota Statutes 2016, sections 3.7371; 17.119, subdivisions 
1.6 	1, 2; 18.79, subdivision 18; 28A.081; 41A.12, subdivision 3; 344.03, subdivision 
1.7 	1; Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, 
1.8 	as amended; proposing coding for new law in Minnesota Statutes, chapters 17; 
1.9 	18B; repealing Minnesota Statutes 2016, section 383C.809.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	AGRICULTURE APPROPRIATIONS

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

1.21				APPROPRIATIONS
	
1.22				Available for the Year
	
1.23				Ending June 30
	
1.24					2018
		2019

1.25	Sec. 2. DEPARTMENT OF AGRICULTURE

2.1	Subdivision 1.Total Appropriation
 	$
	48,056,000
	$
	47,910,000

2.2	Appropriations by Fund
	
2.3		2018
	2019
	
2.4	General
	47,663,000
	47,513,000
	
2.5	Remediation
	393,000
	397,000
	
2.6 	The amounts that may be spent for each 
2.7 	purpose are specified in the following 
2.8 	subdivisions.

2.9	Subd. 2.Protection Services
 		17,471,000
		17,475,000

2.10	Appropriations by Fund
	
2.11		2018
	2019
	
2.12	General
	17,078,000
	17,078,000
	
2.13	Remediation
	393,000
	397,000
	
2.14 	$250,000 the first year and $250,000 the 
2.15 	second year are for transfer to the pollinator 
2.16 	habitat and research account in the agricultural 
2.17 	fund. These are onetime transfers.
2.18 	$300,000 the first year and $300,000 the 
2.19 	second year are for transfer to the noxious 
2.20 	weed and invasive plant species assistance 
2.21 	account in the agricultural fund to award 
2.22 	grants to local units of government under 
2.23 	Minnesota Statutes, section 18.90, with 
2.24 	preference given to local units of government 
2.25 	responding to Palmer amaranth or other weeds 
2.26 	on the eradicate list. These are onetime 
2.27 	transfers.
2.28 	$125,000 the first year and $125,000 the 
2.29 	second year are for the industrial hemp pilot 
2.30 	program under Minnesota Statutes, section 
2.31 	18K.09. These are onetime appropriations.
2.32 	$250,000 the first year and $250,000 the 
2.33 	second year are to expand current capabilities 
2.34 	for rapid detection, identification, containment, 
3.1 	control, and management of high priority plant 
3.2 	pests and pathogens. These are onetime 
3.3 	appropriations.
3.4 	$25,000 the first year and $25,000 the second 
3.5 	year are to develop and maintain cottage food 
3.6 	license exemption outreach and training 
3.7 	materials.
3.8 	$75,000 the first year and $75,000 the second 
3.9 	year are to coordinate the correctional facility 
3.10 	vocational training pilot program and to assist 
3.11 	entities that have explored the feasibility of 
3.12 	establishing a USDA-certified or state "equal 
3.13 	to" food processing facility within 30 miles 
3.14 	of the Northeast Regional Corrections Center.
3.15 	$393,000 the first year and $397,000 the 
3.16 	second year are from the remediation fund for 
3.17 	administrative funding for the voluntary 
3.18 	cleanup program.
3.19 	$175,000 the first year and $175,000 the 
3.20 	second year are for compensation for 
3.21 	destroyed or crippled livestock under 
3.22 	Minnesota Statutes, section 3.737. This 
3.23 	appropriation may be spent to compensate for 
3.24 	livestock that were destroyed or crippled 
3.25 	during fiscal year 2017. If the amount in the 
3.26 	first year is insufficient, the amount in the 
3.27 	second year is available in the first year.
3.28 	$125,000 the first year and $125,000 the 
3.29 	second year are for compensation for crop 
3.30 	damage under Minnesota Statutes, section 
3.31 	3.7371. If the amount in the first year is 
3.32 	insufficient, the amount in the second year is 
3.33 	available in the first year.  The commissioner 
3.34 	may use up to $30,000 of the appropriation 
4.1 	each year to reimburse expenses incurred by 
4.2 	the commissioner or the commissioner's 
4.3 	approved agent to investigate and resolve 
4.4 	claims.
4.5 	If the commissioner determines that claims 
4.6 	made under Minnesota Statutes, section 3.737 
4.7 	or 3.7371, are unusually high, amounts 
4.8 	appropriated for either program may be 
4.9 	transferred to the appropriation for the other 
4.10 	program.
4.11 	$70,000 the first year and $70,000 the second 
4.12 	year are for additional cannery inspections.
4.13 	$100,000 the first year and $100,000 the 
4.14 	second year are for increased oversight of 
4.15 	delegated local health boards.
4.16 	$100,000 the first year and $100,000 the 
4.17 	second year are to decrease the turnaround 
4.18 	time for retail food handler plan reviews.
4.19 	$1,024,000 the first year and $1,024,000 the 
4.20 	second year are to streamline the retail food 
4.21 	safety regulatory and licensing experience for 
4.22 	regulated businesses and to decrease the 
4.23 	inspection delinquency rate.

4.24
4.25	Subd. 3.Agricultural Marketing and 
Development
 		3,996,000
		3,996,000
	
4.26 	The commissioner must provide outreach to 
4.27 	urban farmers regarding the department's 
4.28 	financial and technical assistance programs 
4.29 	and must assist urban farmers in applying for 
4.30 	assistance.
4.31 	$186,000 the first year and $186,000 the 
4.32 	second year are for transfer to the Minnesota 
4.33 	grown account and may be used as grants for 
4.34 	Minnesota grown promotion under Minnesota 
5.1 	Statutes, section 17.102. Grants may be made 
5.2 	for one year. Notwithstanding Minnesota 
5.3 	Statutes, section 16A.28, the appropriations 
5.4 	encumbered under contract on or before June 
5.5 	30, 2019, for Minnesota grown grants in this 
5.6 	paragraph are available until June 30, 2021.
5.7 	$634,000 the first year and $634,000 the 
5.8 	second year are for continuation of the dairy 
5.9 	development and profitability enhancement 
5.10 	and dairy business planning grant programs 
5.11 	established under Laws 1997, chapter 216, 
5.12 	section 7, subdivision 2, and Laws 2001, First 
5.13 	Special Session chapter 2, section 9, 
5.14 	subdivision 2. The commissioner may allocate 
5.15 	the available sums among permissible 
5.16 	activities, including efforts to improve the 
5.17 	quality of milk produced in the state, in the 
5.18 	proportions that the commissioner deems most 
5.19 	beneficial to Minnesota's dairy farmers. The 
5.20 	commissioner must submit a detailed 
5.21 	accomplishment report and a work plan 
5.22 	detailing future plans for, and anticipated 
5.23 	accomplishments from, expenditures under 
5.24 	this program to the chairs and ranking minority 
5.25 	members of the legislative committees with 
5.26 	jurisdiction over agriculture policy and finance 
5.27 	on or before the start of each fiscal year. If 
5.28 	significant changes are made to the plans in 
5.29 	the course of the year, the commissioner must 
5.30 	notify the chairs and ranking minority 
5.31 	members.
5.32 	The commissioner may use funds appropriated 
5.33 	in this subdivision for annual cost-share 
5.34 	payments to resident farmers or entities that 
5.35 	sell, process, or package agricultural products 
6.1 	in this state for the costs of organic 
6.2 	certification. The commissioner may allocate 
6.3 	these funds for assistance for persons 
6.4 	transitioning from conventional to organic 
6.5 	agriculture.

6.6
6.7	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		18,989,000
		18,989,000
	
6.8 	$9,300,000 the first year and $9,300,000 the 
6.9 	second year are for transfer to the agriculture 
6.10 	research, education, extension, and technology 
6.11 	transfer account under Minnesota Statutes, 
6.12 	section 41A.14, subdivision 3. Of these 
6.13 	amounts: at least $600,000 the first year and 
6.14 	$600,000 the second year are for the 
6.15 	Minnesota Agricultural Experiment Station's 
6.16 	agriculture rapid response fund under 
6.17 	Minnesota Statutes, section 41A.14, 
6.18 	subdivision 1, clause (2); $2,000,000 the first 
6.19 	year and $2,000,000 the second year are for 
6.20 	grants to the Minnesota Agriculture Education 
6.21 	Leadership Council to enhance agricultural 
6.22 	education with priority given to Farm Business 
6.23 	Management challenge grants and grants to 
6.24 	coordinate Farm Business Management and 
6.25 	dairy development, profitability enhancement, 
6.26 	and business planning; up to $350,000 the first 
6.27 	year and up to $350,000 the second year are 
6.28 	for potato breeding; and up to $350,000 the 
6.29 	first year and up to $350,000 the second year 
6.30 	are for the cultivated wild rice breeding project 
6.31 	at the North Central Research and Outreach 
6.32 	Center to include a tenure track/research 
6.33 	associate plant breeder. The commissioner 
6.34 	shall transfer the remaining funds in this 
6.35 	appropriation each year to the Board of 
6.36 	Regents of the University of Minnesota for 
7.1 	purposes of Minnesota Statutes, section 
7.2 	41A.14. Of the amount transferred to the 
7.3 	Board of Regents, up to $1,000,000 the first 
7.4 	year and up to $1,000,000 the second year are 
7.5 	for research to determine:
7.6 	(1) what is causing avian influenza;
7.7 	(2) why some fowl are more susceptible; and
7.8 	(3) prevention measures that can be taken.
7.9 	To the extent practicable, funds expended 
7.10 	under Minnesota Statutes, section 41A.14, 
7.11 	subdivision 1, clauses (1) and (2), must 
7.12 	supplement and not supplant existing sources 
7.13 	and levels of funding. The commissioner may 
7.14 	use up to one percent of this appropriation for 
7.15 	costs incurred to administer the program.
7.16 	$9,664,000 the first year and $9,664,000 the 
7.17 	second year are for the agricultural growth, 
7.18 	research, and innovation program in 
7.19 	Minnesota Statutes, section 41A.12. Except 
7.20 	as provided below, the commissioner may 
7.21 	allocate the appropriation each year among 
7.22 	the following areas: facilitating the start-up, 
7.23 	modernization, or expansion of livestock 
7.24 	operations including beginning and 
7.25 	transitioning livestock operations; developing 
7.26 	new markets for Minnesota farmers by 
7.27 	providing more fruits, vegetables, meat, grain, 
7.28 	and dairy for Minnesota school children; 
7.29 	assisting value-added agricultural businesses 
7.30 	to begin or expand, access new markets, or 
7.31 	diversify; urban youth agricultural education; 
7.32 	urban agriculture community development; 
7.33 	facilitating the start-up, modernization, or 
7.34 	expansion of other beginning and transitioning 
8.1 	farms including by providing loans under 
8.2 	Minnesota Statutes, section 41B.056; 
8.3 	sustainable agriculture on-farm research and 
8.4 	demonstration; development or expansion of 
8.5 	food hubs and other alternative 
8.6 	community-based food distribution systems; 
8.7 	enhancing renewable energy infrastructure 
8.8 	and use; crop research; Farm Business 
8.9 	Management tuition assistance; good 
8.10 	agricultural practices/good handling practices 
8.11 	certification assistance; establishing and 
8.12 	supporting farmer-led water management 
8.13 	councils; and implementing farmer-led water 
8.14 	quality improvement practices. The 
8.15 	commissioner may use up to 4.5 percent of 
8.16 	this appropriation for costs incurred to 
8.17 	administer the program. Any unencumbered 
8.18 	balance does not cancel at the end of the first 
8.19 	year and is available for the second year. 
8.20 	Notwithstanding Minnesota Statutes, section 
8.21 	16A.28, appropriations encumbered under 
8.22 	contract on or before June 30, 2019, for 
8.23 	agricultural growth, research, and innovation 
8.24 	grants are available until June 30, 2022. The 
8.25 	base for fiscal year 2020 is $10,068,000 and 
8.26 	the base for fiscal year 2021 is $10,068,000.
8.27 	Of the amount appropriated for the agricultural 
8.28 	growth, research, and innovation program in 
8.29 	this subdivision, $1,000,000 the first year and 
8.30 	$1,000,000 the second year are for distribution 
8.31 	in equal amounts to each of the state's county 
8.32 	fairs to preserve and promote Minnesota 
8.33 	agriculture.
8.34 	Of the amount appropriated for the agricultural 
8.35 	growth, research, and innovation program in 
9.1 	this subdivision, $1,500,000 the first year and 
9.2 	$1,500,000 the second year are for incentive 
9.3 	payments under Minnesota Statutes, sections 
9.4 	41A.16, 41A.17, and 41A.18. Notwithstanding 
9.5 	Minnesota Statutes, section 16A.28, the first 
9.6 	year appropriation is available until June 30, 
9.7 	2019, and the second year appropriation is 
9.8 	available until June 30, 2020.
9.9 	Of the amount appropriated for the agricultural 
9.10 	growth, research, and innovation program in 
9.11 	this subdivision, $500,000 the first year is for 
9.12 	a grant to the Board of Trustees of the 
9.13 	Minnesota State Colleges and Universities to 
9.14 	renovate the GROW-IT Center at Metropolitan 
9.15 	State University.
9.16 	Of the amount appropriated for the agricultural 
9.17 	growth, research, and innovation program in 
9.18 	this subdivision, up to $500,000 the first year 
9.19 	and up to $500,000 the second year are for 
9.20 	urban youth agricultural education and urban 
9.21 	agriculture community development, in 
9.22 	consultation with urban agriculture 
9.23 	stakeholders.
9.24 	Of the amount appropriated for the agricultural 
9.25 	growth, research, and innovation program in 
9.26 	this subdivision, up to $250,000 the first year 
9.27 	and up to $250,000 the second year are for 
9.28 	transfer to the good food access account in the 
9.29 	agricultural fund for the good food access 
9.30 	program.
9.31 	Of the amount appropriated for the agricultural 
9.32 	growth, research, and innovation program in 
9.33 	this subdivision, up to $40,000 the first year 
9.34 	and up to $40,000 the second year are to 
9.35 	increase compensation for farm advocates and 
10.1 	expand the farm advocates program by 
10.2 	supplementing the base farm advocates 
10.3 	program appropriation in subdivision 5.
10.4 	$25,000 the first year and $25,000 the second 
10.5 	year are for grants to the Southern Minnesota 
10.6 	Initiative Foundation to promote local foods 
10.7 	through an annual event that raises public 
10.8 	awareness of local foods and connects local 
10.9 	food producers and processors with potential 
10.10 	buyers.

10.11	Subd. 5.Administration and Financial Assistance
 		7,600,000
		7,450,000
	
10.12 	$150,000 the first year is for the tractor 
10.13 	rollover protection pilot program under 
10.14 	Minnesota Statutes, section 17.119, and is 
10.15 	available until June 30, 2019.
10.16 	$180,000 the first year and $180,000 the 
10.17 	second year are for the farm advocates 
10.18 	program.
10.19 	$474,000 the first year and $474,000 the 
10.20 	second year are for payments to county and 
10.21 	district agricultural societies and associations 
10.22 	under Minnesota Statutes, section 38.02, 
10.23 	subdivision 1. Aid payments to county and 
10.24 	district agricultural societies and associations 
10.25 	shall be disbursed no later than July 15 of each 
10.26 	year. These payments are the amount of aid 
10.27 	from the state for an annual fair held in the 
10.28 	previous calendar year.
10.29 	$1,000 the first year and $1,000 the second 
10.30 	year are for grants to the Minnesota State 
10.31 	Poultry Association.
10.32 	$18,000 the first year and $18,000 the second 
10.33 	year are for grants to the Minnesota Livestock 
10.34 	Breeders Association.
11.1 	$47,000 the first year and $47,000 the second 
11.2 	year are for the Northern Crops Institute. 
11.3 	These appropriations may be spent to purchase 
11.4 	equipment.
11.5 	$17,000 the first year and $17,000 the second 
11.6 	year are for grants to the Minnesota 
11.7 	Horticultural Society.
11.8 	$108,000 the first year and $108,000 the 
11.9 	second year are for annual grants to the 
11.10 	Minnesota Turf Seed Council for basic and 
11.11 	applied research on: (1) the improved 
11.12 	production of forage and turf seed related to 
11.13 	new and improved varieties; and (2) native 
11.14 	plants, including plant breeding, nutrient 
11.15 	management, pest management, disease 
11.16 	management, yield, and viability. The grant 
11.17 	recipient may subcontract with a qualified 
11.18 	third party for some or all of the basic or 
11.19 	applied research. Any unencumbered balance 
11.20 	does not cancel at the end of the first year and 
11.21 	is available for the second year.
11.22 	$113,000 the first year and $113,000 the 
11.23 	second year are for transfer to the Board of 
11.24 	Trustees of the Minnesota State Colleges and 
11.25 	Universities for statewide mental health 
11.26 	counseling support to farm families and 
11.27 	business operators. South Central College shall 
11.28 	serve as the fiscal agent.
11.29 	$550,000 the first year and $550,000 the 
11.30 	second year are for grants to Second Harvest 
11.31 	Heartland on behalf of Minnesota's six 
11.32 	Feeding America food banks for the purchase 
11.33 	of milk for distribution to Minnesota's food 
11.34 	shelves and other charitable organizations that 
11.35 	are eligible to receive food from the food 
12.1 	banks. Milk purchased under the grants must 
12.2 	be acquired from Minnesota milk processors 
12.3 	and based on low-cost bids. The milk must be 
12.4 	allocated to each Feeding America food bank 
12.5 	serving Minnesota according to the formula 
12.6 	used in the distribution of United States 
12.7 	Department of Agriculture commodities under 
12.8 	The Emergency Food Assistance Program 
12.9 	(TEFAP). Second Harvest Heartland must 
12.10 	submit quarterly reports to the commissioner 
12.11 	on forms prescribed by the commissioner. The 
12.12 	reports must include but are not limited to 
12.13 	information on the expenditure of funds, the 
12.14 	amount of milk purchased, and the 
12.15 	organizations to which the milk was 
12.16 	distributed. Second Harvest Heartland may 
12.17 	enter into contracts or agreements with food 
12.18 	banks for shared funding or reimbursement of 
12.19 	the direct purchase of milk. Each food bank 
12.20 	receiving money from this appropriation may 
12.21 	use up to two percent of the grant for 
12.22 	administrative expenses. Any unencumbered 
12.23 	balance does not cancel at the end of the first 
12.24 	year and is available for the second year.
12.25 	$1,100,000 the first year and $1,100,000 the 
12.26 	second year are for grants to Second Harvest 
12.27 	Heartland on behalf of the six Feeding 
12.28 	America food banks that serve Minnesota to 
12.29 	compensate agricultural producers and 
12.30 	processors for costs incurred to harvest and 
12.31 	package for transfer surplus fruits, vegetables, 
12.32 	and other agricultural commodities that would 
12.33 	otherwise go unharvested, be discarded, or 
12.34 	sold in a secondary market. Surplus 
12.35 	commodities must be distributed statewide to 
12.36 	food shelves and other charitable organizations 
13.1 	that are eligible to receive food from the food 
13.2 	banks. Surplus food acquired under this 
13.3 	appropriation must be from Minnesota 
13.4 	producers and processors. Second Harvest 
13.5 	Heartland must report in the form prescribed 
13.6 	by the commissioner. Second Harvest 
13.7 	Heartland may use up to 15 percent of each 
13.8 	grant for matching administrative and 
13.9 	transportation expenses. Any unencumbered 
13.10 	balance does not cancel at the end of the first 
13.11 	year and is available for the second year.
13.12 	$150,000 the first year and $150,000 the 
13.13 	second year are for grants to the Center for 
13.14 	Rural Policy and Development.
13.15 	$235,000 the first year and $235,000 the 
13.16 	second year are for grants to the Minnesota 
13.17 	Agricultural Education and Leadership 
13.18 	Council for programs of the council under 
13.19 	Minnesota Statutes, chapter 41D.
13.20 	$600,000 the first year and $600,000 the 
13.21 	second year are for grants to the Board of 
13.22 	Regents of the University of Minnesota to 
13.23 	develop, in consultation with the 
13.24 	commissioner of agriculture and the Board of 
13.25 	Animal Health, a software tool or application 
13.26 	through the Veterinary Diagnostic Laboratory 
13.27 	that empowers veterinarians and producers to 
13.28 	understand the movement of unique pathogen 
13.29 	strains in livestock and poultry production 
13.30 	systems, monitor antibiotic resistance, and 
13.31 	implement effective biosecurity measures that 
13.32 	promote animal health and limit production 
13.33 	losses. The base for fiscal year 2020 is $0.

13.34	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,443,000
	$
	5,491,000

14.1
14.2	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,643,000
	$
	3,643,000

14.3 	Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as 
14.4 	amended by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, 
14.5 	section 26, is amended to read:

14.6
14.7	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		14,993,000
		19,010,000
18,316,000
	
14.8 	$4,483,000 the first year and $8,500,000 the 
14.9 	second year are for transfer to the agriculture 
14.10 	research, education, extension, and technology 
14.11 	transfer account under Minnesota Statutes, 
14.12 	section 41A.14, subdivision 3. The transfer in 
14.13 	this paragraph includes money for plant 
14.14 	breeders at the University of Minnesota for 
14.15 	wild rice, potatoes, and grapes. Of these 
14.16 	amounts, at least $600,000 each year is for the 
14.17 	Minnesota Agricultural Experiment Station's 
14.18 	Agriculture Rapid Response Fund under 
14.19 	Minnesota Statutes, section 41A.14, 
14.20 	subdivision 1, clause (2). Of the amount 
14.21 	appropriated in this paragraph, $1,000,000 
14.22 	each year is for transfer to the Board of 
14.23 	Regents of the University of Minnesota for 
14.24 	research to determine (1) what is causing avian 
14.25 	influenza, (2) why some fowl are more 
14.26 	susceptible, and (3) prevention measures that 
14.27 	can be taken. Of the amount appropriated in 
14.28 	this paragraph, $2,000,000 each year is for 
14.29 	grants to the Minnesota Agriculture Education 
14.30 	Leadership Council to enhance agricultural 
14.31 	education with priority given to Farm Business 
14.32 	Management challenge grants. The 
14.33 	commissioner shall transfer the remaining 
14.34 	grant funds in this appropriation each year to 
14.35 	the Board of Regents of the University of 
15.1 	Minnesota for purposes of Minnesota Statutes, 
15.2 	section 41A.14.
15.3 	To the extent practicable, funds expended 
15.4 	under Minnesota Statutes, section 41A.14, 
15.5 	subdivision 1, clauses (1) and (2), must 
15.6 	supplement and not supplant existing sources 
15.7 	and levels of funding. The commissioner may 
15.8 	use up to 4.5 percent of this appropriation for 
15.9 	costs incurred to administer the program. Any 
15.10 	unencumbered balance does not cancel at the 
15.11 	end of the first year and is available for the 
15.12 	second year.
15.13 	$10,235,000 the first year and $10,235,000
15.14 	$9,541,000 the second year are for the 
15.15 	agricultural growth, research, and innovation 
15.16 	program in Minnesota Statutes, section 
15.17 	41A.12. No later than February 1, 2016, and 
15.18 	February 1, 2017, the commissioner must 
15.19 	report to the legislative committees with 
15.20 	jurisdiction over agriculture policy and finance 
15.21 	regarding the commissioner's 
15.22 	accomplishments and anticipated 
15.23 	accomplishments in the following areas: 
15.24 	facilitating the start-up, modernization, or 
15.25 	expansion of livestock operations including 
15.26 	beginning and transitioning livestock 
15.27 	operations; developing new markets for 
15.28 	Minnesota farmers by providing more fruits, 
15.29 	vegetables, meat, grain, and dairy for 
15.30 	Minnesota school children; assisting 
15.31 	value-added agricultural businesses to begin 
15.32 	or expand, access new markets, or diversify 
15.33 	products; developing urban agriculture; 
15.34 	facilitating the start-up, modernization, or 
15.35 	expansion of other beginning and transitioning 
16.1 	farms including loans under Minnesota 
16.2 	Statutes, section 41B.056; sustainable 
16.3 	agriculture on farm research and 
16.4 	demonstration; development or expansion of 
16.5 	food hubs and other alternative 
16.6 	community-based food distribution systems; 
16.7 	incentive payments under Minnesota Statutes, 
16.8 	sections 41A.16, 41A.17, and 41A.18; and 
16.9 	research on bioenergy, biobased content, or 
16.10 	biobased formulated products and other 
16.11 	renewable energy development. The 
16.12 	commissioner may use up to 4.5 percent of 
16.13 	this appropriation for costs incurred to 
16.14 	administer the program. Any unencumbered 
16.15 	balance does not cancel at the end of the first 
16.16 	year and is available for the second year. 
16.17 	Notwithstanding Minnesota Statutes, section 
16.18 	16A.28, the appropriations encumbered under 
16.19 	contract on or before June 30, 2017, for 
16.20 	agricultural growth, research, and innovation 
16.21 	grants are available until June 30, 2019.
16.22 	The commissioner may use funds appropriated 
16.23 	for the agricultural growth, research, and 
16.24 	innovation program as provided in this 
16.25 	paragraph. The commissioner may award 
16.26 	grants to owners of Minnesota facilities 
16.27 	producing bioenergy, biobased content, or a 
16.28 	biobased formulated product; to organizations 
16.29 	that provide for on-station, on-farm field scale 
16.30 	research and outreach to develop and test the 
16.31 	agronomic and economic requirements of 
16.32 	diverse strands of prairie plants and other 
16.33 	perennials for bioenergy systems; or to certain 
16.34 	nongovernmental entities. For the purposes of 
16.35 	this paragraph, "bioenergy" includes 
16.36 	transportation fuels derived from cellulosic 
17.1 	material, as well as the generation of energy 
17.2 	for commercial heat, industrial process heat, 
17.3 	or electrical power from cellulosic materials 
17.4 	via gasification or other processes. Grants are 
17.5 	limited to 50 percent of the cost of research, 
17.6 	technical assistance, or equipment related to 
17.7 	bioenergy, biobased content, or biobased 
17.8 	formulated product production or $500,000, 
17.9 	whichever is less. Grants to nongovernmental 
17.10 	entities for the development of business plans 
17.11 	and structures related to community ownership 
17.12 	of eligible bioenergy facilities together may 
17.13 	not exceed $150,000. The commissioner shall 
17.14 	make a good-faith effort to select projects that 
17.15 	have merit and, when taken together, represent 
17.16 	a variety of bioenergy technologies, biomass 
17.17 	feedstocks, and geographic regions of the 
17.18 	state. Projects must have a qualified engineer 
17.19 	provide certification on the technology and 
17.20 	fuel source. Grantees must provide reports at 
17.21 	the request of the commissioner.
17.22 	Of the amount appropriated for the agricultural 
17.23 	growth, research, and innovation program in 
17.24 	this subdivision, $1,000,000 the first year and 
17.25 	$1,000,000 the second year are for distribution 
17.26 	in equal amounts to each of the state's county 
17.27 	fairs to preserve and promote Minnesota 
17.28 	agriculture.
17.29 	Of the amount appropriated for the agricultural 
17.30 	growth, research, and innovation program in 
17.31 	this subdivision, $500,000 in fiscal year 2016 
17.32 	and $1,500,000 $806,000 in fiscal year 2017 
17.33 	are for incentive payments under Minnesota 
17.34 	Statutes, sections 41A.16, 41A.17, and 
17.35 	41A.18. If the appropriation exceeds the total 
18.1 	amount for which all producers are eligible in 
18.2 	a fiscal year, the balance of the appropriation 
18.3 	is available to the commissioner for the 
18.4 	agricultural growth, research, and innovation 
18.5 	program. Notwithstanding Minnesota Statutes, 
18.6 	section 16A.28, the first year appropriation is 
18.7 	available until June 30, 2017, and the second 
18.8 	year appropriation is available until June 30, 
18.9 	2018. The commissioner may use up to 4.5 
18.10 	percent of the appropriation for administration 
18.11 	of the incentive payment programs.
18.12 	Of the amount appropriated for the agricultural 
18.13 	growth, research, and innovation program in 
18.14 	this subdivision, $250,000 the first year is for 
18.15 	grants to communities to develop or expand 
18.16 	food hubs and other alternative 
18.17 	community-based food distribution systems. 
18.18 	Of this amount, $50,000 is for the 
18.19 	commissioner to consult with existing food 
18.20 	hubs, alternative community-based food 
18.21 	distribution systems, and University of 
18.22 	Minnesota Extension to identify best practices 
18.23 	for use by other Minnesota communities. No 
18.24 	later than December 15, 2015, the 
18.25 	commissioner must report to the legislative 
18.26 	committees with jurisdiction over agriculture 
18.27 	and health regarding the status of emerging 
18.28 	alternative community-based food distribution 
18.29 	systems in the state along with 
18.30 	recommendations to eliminate any barriers to 
18.31 	success. Any unencumbered balance does not 
18.32 	cancel at the end of the first year and is 
18.33 	available for the second year. This is a onetime 
18.34 	appropriation.
19.1 	$250,000 the first year and $250,000 the 
19.2 	second year are for grants that enable retail 
19.3 	petroleum dispensers to dispense biofuels to 
19.4 	the public in accordance with the biofuel 
19.5 	replacement goals established under 
19.6 	Minnesota Statutes, section 239.7911. A retail 
19.7 	petroleum dispenser selling petroleum for use 
19.8 	in spark ignition engines for vehicle model 
19.9 	years after 2000 is eligible for grant money 
19.10 	under this paragraph if the retail petroleum 
19.11 	dispenser has no more than 15 retail petroleum 
19.12 	dispensing sites and each site is located in 
19.13 	Minnesota. The grant money received under 
19.14 	this paragraph must be used for the installation 
19.15 	of appropriate technology that uses fuel 
19.16 	dispensing equipment appropriate for at least 
19.17 	one fuel dispensing site to dispense gasoline 
19.18 	that is blended with 15 percent of 
19.19 	agriculturally derived, denatured ethanol, by 
19.20 	volume, and appropriate technical assistance 
19.21 	related to the installation. A grant award must 
19.22 	not exceed 85 percent of the cost of the 
19.23 	technical assistance and appropriate 
19.24 	technology, including remetering of and 
19.25 	retrofits for retail petroleum dispensers and 
19.26 	replacement of petroleum dispenser projects. 
19.27 	The commissioner may use up to $35,000 of 
19.28 	this appropriation for administrative expenses. 
19.29 	The commissioner shall cooperate with biofuel 
19.30 	stakeholders in the implementation of the grant 
19.31 	program. The commissioner must report to 
19.32 	the legislative committees with jurisdiction 
19.33 	over agriculture policy and finance by 
19.34 	February 1 each year, detailing the number of 
19.35 	grants awarded under this paragraph and the 
19.36 	projected effect of the grant program on 
20.1 	meeting the biofuel replacement goals under 
20.2 	Minnesota Statutes, section 239.7911. These 
20.3 	are onetime appropriations.
20.4 	$25,000 the first year and $25,000 the second 
20.5 	year are for grants to the Southern Minnesota 
20.6 	Initiative Foundation to promote local foods 
20.7 	through an annual event that raises public 
20.8 	awareness of local foods and connects local 
20.9 	food producers and processors with potential 
20.10 	buyers.

20.11 	Sec. 6. BASE BUDGET REPORT REQUIRED.
 20.12 	No later than October 15, 2018, the commissioner of agriculture must submit a report 
20.13 	detailing the agency's base budget, including any prior appropriation riders, to the chairs 
20.14 	and ranking minority members of the legislative committees with jurisdiction over agriculture 
20.15 	finance.

20.16 	Sec. 7. TRANSFER REQUIRED.
 20.17 	Of the amount appropriated from the general fund for transfer to the agricultural 
20.18 	emergency account in Laws 2016, chapter 189, article 2, section 2, the commissioner of 
20.19 	management and budget must transfer $450,000 back to the general fund on July 1, 2017. 
20.20 	This is a onetime transfer.

20.21 	Sec. 8. APPROPRIATION CANCELLATION.
 20.22 	All unspent funds, estimated to be $694,000, appropriated for the agricultural growth, 
20.23 	research, and innovation program and designated for bioeconomy incentive payments under 
20.24 	Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as amended 
20.25 	by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section 26, 
20.26 	are canceled to the general fund.

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

20.28 	ARTICLE 2
20.29 	AGRICULTURAL POLICY

20.30 	Section 1. Minnesota Statutes 2016, section 3.7371, is amended to read:
21.1 	3.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.
21.2 		Subdivision 1.Authorization. Notwithstanding section 3.736, subdivision 3, paragraph 
21.3 	(e), or any other law, a person who owns an agricultural crop or pasture shall be compensated 
21.4 	by the commissioner of agriculture for an agricultural crop, or fence surrounding the crop 
21.5 	or pasture, that is damaged or destroyed by elk as provided in this section.
21.6 		Subd. 2.Claim form. The crop or pasture owner must prepare a claim on forms provided 
21.7 	by the commissioner and available at on the county extension agent's office Department of 
21.8 	Agriculture's Web site or by request from the commissioner. The claim form must be filed 
21.9 	with the commissioner.
21.10 		Subd. 3.Compensation. (a) The crop owner is entitled to the target price or the market 
21.11 	price, whichever is greater, of the damaged or destroyed crop plus adjustments for yield 
21.12 	loss determined according to agricultural stabilization and conservation service programs 
21.13 	for individual farms, adjusted annually, as determined by the commissioner, upon 
21.14 	recommendation of the county extensioncommissioner's approved agent for the owner's 
21.15 	county. Verification of fence damage or destruction by elk may be provided by submitting 
21.16 	photographs or other evidence and documentation together with a statement from an 
21.17 	independent witness using forms prescribed by the commissioner. The commissioner, upon 
21.18 	recommendation of the commissioner's approved agent, shall determine whether the crop 
21.19 	damage or destruction or damage to or destruction of a fence surrounding a crop or pasture 
21.20 	is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed. In 
21.21 	any fiscal year, an owner may not be compensated for a damaged or destroyed crop or fence 
21.22 	surrounding a crop or pasture that is less than $100 in value and may be compensated up 
21.23 	to $20,000, as determined under this section, if normal harvest procedures for the area are 
21.24 	followed.
21.25 	(b) In any fiscal year, the commissioner may provide compensation for claims filed 
21.26 	under this section up to the amount expressly appropriated for this purpose.
21.27 		Subd. 4.Insurance deduction. Payments authorized by this section must be reduced 
21.28 	by amounts received by the owner as proceeds from an insurance policy covering crop 
21.29 	losses or damage to or destruction of a fence surrounding a crop or pasture, or from any 
21.30 	other source for the same purpose including, but not limited to, a federal program.
21.31 		Subd. 5.Decision on claims; opening land to hunting. If the commissioner finds that 
21.32 	the crop or pasture owner has shown that the damage or destruction of the owner's crop or 
21.33 	damage to or destruction of a fence surrounding a crop or pasture was caused more probably 
21.34 	than not by elk, the commissioner shall pay compensation as provided in this section and 
22.1 	the rules of the commissioner. A crop An owner who receives compensation under this 
22.2 	section may, by written permission, permit hunting on the land at the landowner's discretion.
22.3 		Subd. 6.Denial of claim; appeal. (a) If the commissioner denies compensation claimed 
22.4 	by a crop or pasturean owner under this section, the commissioner shall issue a written 
22.5 	decision based upon the available evidence including a statement of the facts upon which 
22.6 	the decision is based and the conclusions on the material issues of the claim. A copy of the 
22.7 	decision must be mailed to the crop or pasture owner.
22.8 	(b) A decision denying compensation claimed under this section is not subject to the 
22.9 	contested case review procedures of chapter 14, but a crop or pasture an owner may have 
22.10 	the claim reviewed in a trial de novo in a court in the county where the loss occurred. The 
22.11 	decision of the court may be appealed as in other civil cases. Review in court may be obtained 
22.12 	by filing a petition for review with the administrator of the court within 60 days following 
22.13 	receipt of a decision under this section. Upon the filing of a petition, the administrator shall 
22.14 	mail a copy to the commissioner and set a time for hearing within 90 days after the filing.
22.15 		Subd. 7.Rules. The commissioner shall adopt rules and may amend rules to carry out 
22.16 	this section. The commissioner may use the expedited rulemaking process in section 14.389
22.17 	to adopt and amend rules authorized in this section. The rules must include:
22.18 	(1) methods of valuation of crops damaged or destroyed;
22.19 	(2) criteria for determination of the cause of the crop damage or destruction;
22.20 	(3) notice requirements by the owner of the damaged or destroyed crop;
22.21 	(4) compensation rates for fence damage or destruction that shall include a minimum 
22.22 	claim of $75.00 per incident and a maximum of must not exceed $1,800 per claimant per 
22.23 	fiscal year; and
22.24 	(5) any other matters determined necessary by the commissioner to carry out this section.
22.25 		Subd. 8.Report. The commissioner must submit a report to the chairs of the house of 
22.26 	representatives and senate committees and divisions with jurisdiction over agriculture and 
22.27 	environment and natural resources by December 15 each year that details the total amount 
22.28 	of damages paid, by elk herd, in the previous two fiscal years.

22.29 	Sec. 2. [17.112] FARM SAFETY WORKING GROUP.
22.30 		Subdivision 1.Establishment. The Farm Safety Working Group is established to advise 
22.31 	the commissioner and the legislature on farm safety issues and to perform the other duties 
22.32 	specified in this section.
23.1 		Subd. 2.Membership; appointments; compensation. (a) The Farm Safety Working 
23.2 	Group consists of:
23.3 	(1) the commissioner of agriculture or the commissioner's designee, who must serve as 
23.4 	the chair;
23.5 	(2) the commissioner of health or the commissioner's designee;
23.6 	(3) the commissioner of labor and industry or the commissioner's designee;
23.7 	(4) a representative of the Minnesota State Colleges and Universities;
23.8 	(5) a representative of University of Minnesota Extension;
23.9 	(6) a representative of the University of Minnesota's Upper Midwest Agricultural Safety 
23.10 	and Health Center;
23.11 	(7) a representative of the Minnesota Farm Bureau;
23.12 	(8) a representative of the Minnesota Farmers Union;
23.13 	(9) a representative of the Minnesota Safety Council;
23.14 	(10) a representative of the Minnesota-South Dakota Equipment Dealers Association;
23.15 	(11) a representative of the Minnesota Agriculture Education Leadership Council;
23.16 	(12) a representative of the Minnesota Council on Latino Affairs;
23.17 	(13) a representative of the Latino Economic Development Center; and
23.18 	(14) three citizen members appointed by the commissioner.
23.19 	(b) Members in paragraph (a), clauses (4) to (13), must be appointed by the specified 
23.20 	organization and serve at the pleasure of the organization. Members appointed by the 
23.21 	commissioner serve two-year terms.
23.22 	(c) Members must serve without compensation.
23.23 		Subd. 3.Meetings; staff. The commissioner must convene meetings as appropriate and 
23.24 	provide staff to support the working group.
23.25 		Subd. 4.Duties. The working group must serve as a forum to discuss farm safety issues 
23.26 	and organize a collective effort to improve farm safety in this state. The working group also 
23.27 	must:
23.28 	(1) coordinate the work and resources of member organizations;
23.29 	(2) monitor the impact of farm safety initiatives in Minnesota;
24.1 	(3) explore the feasibility and desirability of creating a farm safety certification program 
24.2 	to recognize farmers who participate in safety programs and meet safety standards, and 
24.3 	identify appropriate financial incentives for participating farmers; and
24.4 	(4) increase farmer awareness of the state's workplace safety consultation program.
24.5 		Subd. 5.Expiration. This section expires June 30, 2021.

24.6 	Sec. 3. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:
24.7 		Subdivision 1.Grants; eligibility. (a) The commissioner must award cost-share grants 
24.8 	to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible 
24.9 	tractors with eligible rollover protective structures.
24.10 	(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented 
24.11 	cost to purchase, ship, and install an eligible rollover protective structure. The commissioner 
24.12 	must increase the a farmer's grant award amount over the 70 percent grant limitation 
24.13 	requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.
24.14 	(c) Schools are eligible for grants that cover the full amount of a school's documented 
24.15 	cost to purchase, ship, and install an eligible rollover protective structure.
24.16 	(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International 
24.17 	standard J2194 is certified to appropriate national or international rollover protection structure 
24.18 	standards with a seat belt.
24.19 	(c) (e) A tractor is eligible if the tractor was built before 1987.

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

24.21 	Sec. 4. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:
24.22 		Subd. 2.Promotion; administration. The commissioner may spend up to 20 six percent 
24.23 	of total program dollars each fiscal year to promote and administer the program to Minnesota 
24.24 	farmers and schools.

24.25 	Sec. 5. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:
24.26 		Subd. 18.Noxious weed education and notification. (a) The commissioner shall 
24.27 	disseminate information and conduct educational campaigns with respect to control of 
24.28 	noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts 
24.29 	to eliminate or manage these plants. The commissioner shall call and attend meetings and 
24.30 	conferences dealing with the subject of noxious weeds. The commissioner shall maintain 
25.1 	on the department's Web site noxious weed management information including but not 
25.2 	limited to the roles and responsibilities of citizens and government entities under sections 
25.3 	18.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious 
25.4 	weed issue.
25.5 	(b) The commissioner shall post notice on the Department of Agriculture's Web site and 
25.6 	alert appropriate media outlets when a weed on the eradicate list is confirmed for the first 
25.7 	time in a county.

25.8 	Sec. 6. [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.
25.9 	A pollinator habitat and research account is established in the agricultural fund. Money 
25.10 	in the account, including interest, is appropriated to the Board of Regents of the University 
25.11 	of Minnesota for pollinator research and outreach including, but not limited to, science-based 
25.12 	best practices and the identification and establishment of habitat beneficial to pollinators.

25.13 	Sec. 7. Minnesota Statutes 2016, section 28A.081, is amended to read:
25.14 	28A.081 CERTIFICATE FEES.
25.15 		Subdivision 1.Fee. A fee of $75 $125 for each certificate shall be charged to all food 
25.16 	establishments that request certificates any person who requests a certificate issued by the 
25.17 	Minnesota Department of Agriculture to facilitate the movement of Minnesota processed 
25.18 	and manufactured foods destined for export from the state of Minnesota. Certificates include, 
25.19 	but are not limited to, a certificate of free sale, certificate of export, certificate of sanitation, 
25.20 	sanitary certificate, certificate of origin and/or free sale, certificate of health and/or free 
25.21 	sale, sanitation, and purity, certificate of free trade, certificate of free sale, sanitation, purity, 
25.22 	and origin, certificate of health, sanitation, purity, and free sale, and letter of plant 
25.23 	certification.
25.24 	The commissioner shall bill a food establishment the requesting person within seven 
25.25 	days after issuing a certificate to the establishment person. The operator of the food 
25.26 	establishment requesting person must submit payment for a certificate within ten days of 
25.27 	the billing date. If a certificate fee payment is not received within 15 days of the billing 
25.28 	date, the commissioner may not issue any future certificates to the requesting person until 
25.29 	previous fees due are paid in full. Fees paid under this section must be deposited in the food 
25.30 	certificate account established under subdivision 2 or another account in the agricultural 
25.31 	fund if the expenses for the certificate will be paid from that other account.
26.1 		Subd. 2.Food certificate account; appropriation. A food certificate account is 
26.2 	established in the agricultural fund. Money in the account, including interest, is appropriated 
26.3 	to the commissioner for expenses relating to certifying Minnesota processed and 
26.4 	manufactured foods under chapters 28 to 34A or rules adopted under one of those chapters.

26.5 	Sec. 8. Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:
26.6 		Subd. 3.Oversight. The commissioner, in consultation with the chairs and ranking 
26.7 	minority members of the house of representatives and senate committees with jurisdiction 
26.8 	over agriculture finance, must allocate available appropriated funds among eligible uses as 
26.9 	provided by law, develop competitive eligibility criteria, and award funds on a needs basis. 
26.10 	By February 1 each year, the commissioner shall report to the legislature on the allocation 
26.11 	among eligible uses and any financial assistance provided  the outcomes achieved under 
26.12 	this section.

26.13 	Sec. 9. Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:
26.14 		Subdivision 1.Adjoining owners. If all or a part of adjoining Minnesota land is improved 
26.15 	and used,(a) Except as provided in paragraph (b), if two adjoining lands are both used in 
26.16 	whole or in part to produce or maintain livestock for agricultural or commercial purposes 
26.17 	and one or both of the owners of the land desires the land to be partly or totally fenced, the 
26.18 	land owners or occupants shall build and maintain a partition fence between their lands in 
26.19 	equal shares.
26.20 	(b) The requirement in this section and the procedures in this chapter apply to the 
26.21 	Department of Natural Resources when it owns land adjoining privately owned land subject 
26.22 	to this section and chapter and the landowner desires the land permanently fenced for the 
26.23 	purpose of restraining livestock.
26.24 	(c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine, poultry, 
26.25 	goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas, and 
26.26 	llamas.

26.27 	EFFECTIVE DATE. This section is effective the day following final enactment and 
26.28 	applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on or after that 
26.29 	date.

26.30 	Sec. 10.  REPEALER.
 26.31 	Minnesota Statutes 2016, section 383C.809, is repealed.

APPENDIX 

Repealed Minnesota Statutes: UES0780-1 

383C.809 ST. LOUIS COUNTY; PARTITION FENCE CONTROVERSIES.
Notwithstanding chapter 344, when an owner or occupant of land in St. Louis County applies to the fence viewers for settlement of a partition fence controversy under chapter 344, the fence viewers shall not require an owner or occupant who can establish to the fence viewers that the establishing owner or occupant has no need for a fence to pay any share of the cost of construction or maintenance of the fence. If an owner or occupant is exempt from payment of any of the costs of a partition fence because the owner or occupant does not need the fence, but that owner's or occupant's circumstances change to include the need for a partition fence within seven years of completion of the partition fence, either owner or occupant may request the fence viewers to perform a reevaluation and reassignment of shares of the cost of construction and maintenance in accordance with section 344.06. If the landowners or occupants disagree about the need for a fence, it is a controversy under that section. A decision by the fence viewers of a controversy relating to a partition fence may include an assignment of shares of the cost of construction, repair, or maintenance of a partition fence in accordance with the need and benefit of each party. Except as provided in this section, all other controversies relating to partition fences shall conform to chapter 344.