1.1 	A bill for an act
1.2 	relating to agriculture; housing; establishing a budget for the Department of 
1.3 	Agriculture, the Board of Animal Health, the Agricultural Utilization Research 
1.4 	Institute, and the Housing Finance Agency; continuing the Agricultural Fertilizer 
1.5 	Research and Education Council; continuing a fertilizer fee; modifying a 
1.6 	noncommercial pesticide applicator fee; modifying definitions of hemp and 
1.7 	marijuana; modifying requirements for Cervidae farmers, grain buyers, and grain 
1.8 	warehouse operators; modifying other agricultural statutes; providing lead safe 
1.9 	grant program; requiring reports; appropriating money;amending Minnesota 
1.10 	Statutes 2018, sections 17.118, subdivision 2; 18B.07, subdivision 2; 18B.34, 
1.11 	subdivision 5; 18C.425, subdivision 6; 18C.70, subdivision 5; 18C.71, subdivisions 
1.12 	1, 2, 4; 18C.80, subdivision 2; 18H.14; 18K.02, subdivision 3; 18K.03; 28A.16; 
1.13 	35.155, subdivisions 4, 6, 7, 9, 10, 11, by adding a subdivision; 223.16, subdivisions 
1.14 	1, 2a, 4, by adding subdivisions; 223.17, subdivisions 3, 4, 5, 6; 223.177, 
1.15 	subdivisions 2, 3; 223.19; 232.21, subdivision 7, by adding a subdivision; 232.22, 
1.16 	subdivisions 3, 4; 232.24; Laws 2015, First Special Session chapter 4, article 1, 
1.17 	section 2, subdivision 4, as amended; Laws 2017, chapter 88, article 1, section 2, 
1.18 	subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapters 
1.19 	18D; 223; 462A.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	ARTICLE 1
1.22 	AGRICULTURE

1.23	Section 1. AGRICULTURE APPROPRIATIONS.
 	
1.24 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.25 	and for the purposes specified in this act. The appropriations are from the general fund, or 
1.26 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.27 	figures "2020" and "2021" used in this act mean that the appropriations listed under them 
1.28 	are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The 
2.1 	first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is 
2.2 	fiscal years 2020 and 2021.

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2020
		2021

2.7	Sec. 2. DEPARTMENT OF AGRICULTURE

2.8	Subdivision 1.Total Appropriation
 	$
	56,154,000
	$
	54,839,000

2.9	Appropriations by Fund
	
2.10		2020
	2021
	
2.11	General
	55,755,000
	54,440,000
	
2.12	Remediation
	399,000
	399,000
	
2.13 	The amounts that may be spent for each 
2.14 	purpose are specified in the following 
2.15 	subdivisions.

2.16	Subd. 2.Protection Services

2.17	Appropriations by Fund
	
2.18		2020
	2021
	
2.19	General
	20,050,000
	19,225,000
	
2.20	Remediation
	399,000
	399,000
	
2.21 	(a) $399,000 the first year and $399,000 the 
2.22 	second year are from the remediation fund for 
2.23 	administrative funding for the voluntary 
2.24 	cleanup program.
2.25 	(b) $250,000 the first year and $250,000 the 
2.26 	second year are for rapid detection, 
2.27 	identification, containment, control, and 
2.28 	management of high-priority plant pests and 
2.29 	pathogens including emerald ash borer.
2.30 	(c) $375,000 the first year and $375,000 the 
2.31 	second year are for transfer to the noxious 
2.32 	weed and invasive plant species assistance 
2.33 	account in the agricultural fund to award 
2.34 	grants to local units of government under 
3.1 	Minnesota Statutes, section 18.90, with 
3.2 	preference given to local units of government 
3.3 	responding to Palmer amaranth or other weeds 
3.4 	on the eradicate list.
3.5 	(d) $525,000 the first year and $525,000 the 
3.6 	second year are additional funding for the 
3.7 	noxious weed and invasive plant program.
3.8 	(e) $300,000 the first year and $300,000 the 
3.9 	second year are for industrial hemp 
3.10 	development.
3.11 	(f) $150,000 the first year and $150,000 the 
3.12 	second year are for additional meat and poultry 
3.13 	inspection services.
3.14 	(g) $650,000 the first year and $150,000 the 
3.15 	second year are to replace capital equipment 
3.16 	in the Department of Agriculture's analytical 
3.17 	laboratory. The base for this appropriation is 
3.18 	$154,000 in fiscal year 2022 and $154,000 in 
3.19 	fiscal year 2023.
3.20 	(h) $300,000 the first year and $300,000 the 
3.21 	second year are for agricultural emergency 
3.22 	preparedness and response.
3.23 	(i) $325,000 the first year is for transfer to the 
3.24 	agricultural emergency account in the 
3.25 	agricultural fund.
3.26 	(j) $175,000 the first year and $175,000 the 
3.27 	second year are for compensation for 
3.28 	destroyed or crippled livestock under 
3.29 	Minnesota Statutes, section 3.737. The first 
3.30 	year appropriation may be spent to compensate 
3.31 	for livestock that were destroyed or crippled 
3.32 	during fiscal year 2019. If the amount in the 
3.33 	first year is insufficient, the amount in the 
3.34 	second year is available in the first year. The 
4.1 	commissioner may use up to $5,000 each year 
4.2 	to reimburse expenses incurred by university 
4.3 	extension educators to provide fair market 
4.4 	values of destroyed or crippled livestock.
4.5 	(k) $155,000 the first year and $155,000 the 
4.6 	second year are for compensation for crop 
4.7 	damage under Minnesota Statutes, section 
4.8 	3.7371. If the amount in the first year is 
4.9 	insufficient, the amount in the second year is 
4.10 	available in the first year. The commissioner 
4.11 	may use up to $30,000 of the appropriation 
4.12 	each year to reimburse expenses incurred by 
4.13 	the commissioner or the commissioner's 
4.14 	approved agent to investigate and resolve 
4.15 	claims.
4.16 	If the commissioner determines that claims 
4.17 	made under Minnesota Statutes, section 3.737 
4.18 	or 3.7371, are unusually high, amounts 
4.19 	appropriated for either program may be 
4.20 	transferred to the appropriation for the other 
4.21 	program.

4.22
4.23	Subd. 3.Agricultural Marketing and 
Development
 		4,121,000
		4,121,000
	
4.24 	(a) $200,000 the first year and $200,000 the 
4.25 	second year are to expand domestic and 
4.26 	international marketing opportunities for 
4.27 	farmers and value-added processors, including 
4.28 	staffing to facilitate farm-to-school sales and 
4.29 	new markets for Minnesota-grown hemp.
4.30 	(b) $75,000 the first year and $75,000 the 
4.31 	second year are for additional community 
4.32 	outreach on farms and rural mental health 
4.33 	services including the 24-hour hotline, service 
4.34 	availability, and mental health forums. Of this 
4.35 	appropriation, $12,000 each year is to provide 
5.1 	professional development training for Farm 
5.2 	Business Management instructors in the 
5.3 	Minnesota State system. The base for this 
5.4 	appropriation is $63,000 in fiscal year 2022 
5.5 	and $63,000 in fiscal year 2023.
5.6 	(c) $186,000 the first year and $186,000 the 
5.7 	second year are for transfer to the Minnesota 
5.8 	grown account and may be used as grants for 
5.9 	Minnesota grown promotion under Minnesota 
5.10 	Statutes, section 17.102. Grants may be made 
5.11 	for one year. Notwithstanding Minnesota 
5.12 	Statutes, section 16A.28, the appropriations 
5.13 	encumbered under contract on or before June 
5.14 	30, 2021, for Minnesota grown grants in this 
5.15 	paragraph are available until June 30, 2023.
5.16 	(d) $634,000 the first year and $634,000 the 
5.17 	second year are for continuation of the dairy 
5.18 	development and profitability enhancement 
5.19 	and dairy business planning grant programs 
5.20 	established under Laws 1997, chapter 216, 
5.21 	section 7, subdivision 2, and Laws 2001, First 
5.22 	Special Session chapter 2, section 9, 
5.23 	subdivision 2. The commissioner may allocate 
5.24 	the available sums among permissible 
5.25 	activities, including efforts to improve the 
5.26 	quality of milk produced in the state, in the 
5.27 	proportions that the commissioner deems most 
5.28 	beneficial to Minnesota's dairy farmers. The 
5.29 	commissioner must submit a detailed 
5.30 	accomplishment report and a work plan 
5.31 	detailing future plans for, and anticipated 
5.32 	accomplishments from, expenditures under 
5.33 	this program to the chairs and ranking minority 
5.34 	members of the legislative committees and 
5.35 	divisions with jurisdiction over agriculture 
6.1 	policy and finance on or before the start of 
6.2 	each fiscal year. If significant changes are 
6.3 	made to the plans in the course of the year, 
6.4 	the commissioner must notify the chairs and 
6.5 	ranking minority members.
6.6 	(e) The commissioner may use funds 
6.7 	appropriated in this subdivision for annual 
6.8 	cost-share payments to resident farmers or 
6.9 	entities that sell, process, or package 
6.10 	agricultural products in this state for the costs 
6.11 	of organic certification. The commissioner 
6.12 	may allocate these funds for assistance to 
6.13 	persons transitioning from conventional to 
6.14 	organic agriculture.

6.15
6.16	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		23,900,000
		23,575,000
	
6.17 	(a) $9,300,000 the first year and $9,300,000 
6.18 	the second year are for transfer to the 
6.19 	agriculture research, education, extension, and 
6.20 	technology transfer account under Minnesota 
6.21 	Statutes, section 41A.14, subdivision 3. Of 
6.22 	these amounts: at least $600,000 the first year 
6.23 	and $600,000 the second year are for the 
6.24 	Minnesota Agricultural Experiment Station's 
6.25 	agriculture rapid response fund under 
6.26 	Minnesota Statutes, section 41A.14, 
6.27 	subdivision 1, clause (2); $2,000,000 the first 
6.28 	year and $2,000,000 the second year are for 
6.29 	grants to the Minnesota Agriculture Education 
6.30 	Leadership Council to enhance agricultural 
6.31 	education with priority given to Farm Business 
6.32 	Management challenge grants; $350,000 the 
6.33 	first year and $350,000 the second year are 
6.34 	for potato breeding; and $450,000 the first 
6.35 	year and $450,000 the second year are for the 
7.1 	cultivated wild rice breeding project at the 
7.2 	North Central Research and Outreach Center 
7.3 	to include a tenure track/research associate 
7.4 	plant breeder. The commissioner shall transfer 
7.5 	the remaining funds in this appropriation each 
7.6 	year to the Board of Regents of the University 
7.7 	of Minnesota for purposes of Minnesota 
7.8 	Statutes, section 41A.14. Of the amount 
7.9 	transferred to the Board of Regents, up to 
7.10 	$2,500,000 each year is for research on avian 
7.11 	influenza, African swine fever, and chronic 
7.12 	wasting disease.
7.13 	To the extent practicable, money expended 
7.14 	under Minnesota Statutes, section 41A.14, 
7.15 	subdivision 1, clauses (1) and (2), must 
7.16 	supplement and not supplant existing sources 
7.17 	and levels of funding. The commissioner may 
7.18 	use up to one percent of this appropriation for 
7.19 	costs incurred to administer the program.
7.20 	(b) $14,275,000 the first year and $14,275,000 
7.21 	the second year are for the agricultural growth, 
7.22 	research, and innovation program in 
7.23 	Minnesota Statutes, section 41A.12. Except 
7.24 	as provided below, the commissioner may 
7.25 	allocate the appropriation each year among 
7.26 	the following areas: facilitating the start-up, 
7.27 	modernization, improvement, or expansion of 
7.28 	livestock operations including beginning and 
7.29 	transitioning livestock operations; providing 
7.30 	funding not to exceed $450,000 each year to 
7.31 	develop and enhance farm-to-school markets 
7.32 	for Minnesota farmers by providing more 
7.33 	fruits, vegetables, meat, grain, and dairy for 
7.34 	Minnesota children in school and child care 
7.35 	settings including by reimbursing schools for 
8.1 	purchases from local farmers; assisting 
8.2 	value-added agricultural businesses to begin 
8.3 	or expand, access new markets, or diversify; 
8.4 	providing funding not to exceed $350,000 
8.5 	each year for urban youth agricultural 
8.6 	education or urban agriculture community 
8.7 	development; providing funding not to exceed 
8.8 	$350,000 each year for the good food access 
8.9 	program under Minnesota Statutes, section 
8.10 	17.1017; facilitating the start-up, 
8.11 	modernization, or expansion of other 
8.12 	beginning and transitioning farms including 
8.13 	by providing loans under Minnesota Statutes, 
8.14 	section 41B.056; sustainable agriculture 
8.15 	on-farm research and demonstration; 
8.16 	development or expansion of food hubs and 
8.17 	other alternative community-based food 
8.18 	distribution systems; enhancing renewable 
8.19 	energy infrastructure and use; crop research; 
8.20 	Farm Business Management tuition assistance; 
8.21 	and good agricultural practices/good handling 
8.22 	practices certification assistance. The 
8.23 	commissioner may use up to 6.5 percent of 
8.24 	this appropriation for costs incurred to 
8.25 	administer the program.
8.26 	Of the amount appropriated for the agricultural 
8.27 	growth, research, and innovation program in 
8.28 	Minnesota Statutes, section 41A.12:
8.29 	(1) $1,000,000 the first year and $1,000,000 
8.30 	the second year are for distribution in equal 
8.31 	amounts to each of the state's county fairs to 
8.32 	preserve and promote Minnesota agriculture; 
8.33 	and
8.34 	(2) $1,500,000 the first year and $1,500,000 
8.35 	the second year are for incentive payments 
9.1 	under Minnesota Statutes, sections 41A.16, 
9.2 	41A.17, and 41A.18. Notwithstanding 
9.3 	Minnesota Statutes, section 16A.28, the first 
9.4 	year appropriation is available until June 30, 
9.5 	2021, and the second year appropriation is 
9.6 	available until June 30, 2022. If this 
9.7 	appropriation exceeds the total amount for 
9.8 	which all producers are eligible in a fiscal 
9.9 	year, the balance of the appropriation is 
9.10 	available for the agricultural growth, research, 
9.11 	and innovation program.
9.12 	The commissioner may use up to $2,000,000 
9.13 	per year of the funds appropriated under this 
9.14 	subdivision to award value-added agriculture 
9.15 	grants of between $200,000 and $1,000,000 
9.16 	per grant for new or expanding agricultural 
9.17 	production, aquaponics, or processing facilities 
9.18 	that provide significant economic impact to 
9.19 	the region.
9.20 	Notwithstanding Minnesota Statutes, section 
9.21 	16A.28, any unencumbered balance does not 
9.22 	cancel at the end of the first year and is 
9.23 	available for the second year and 
9.24 	appropriations encumbered under contract on 
9.25 	or before June 30, 2021, for agricultural 
9.26 	growth, research, and innovation grants are 
9.27 	available until June 30, 2024.
9.28 	(c) $325,000 the first year is for grants to 
9.29 	motor fuel wholesalers and retail motor fueling 
9.30 	station operators to install the equipment 
9.31 	necessary to store or dispense biofuels to the 
9.32 	public to meet the biofuel requirement goals 
9.33 	established under Minnesota Statutes, section 
9.34 	239.7911. Motor fuel wholesalers are eligible 
9.35 	for grant money under this paragraph for up 
10.1 	to two storage sites if each site is located in 
10.2 	Minnesota and stores, or uses tank systems to 
10.3 	blend, motor fuel comprised of at least 15 
10.4 	percent agriculturally derived, denatured 
10.5 	ethanol by volume. A retail motor fueling 
10.6 	station operator is eligible for grant money 
10.7 	under this paragraph for up to and including 
10.8 	15 retail motor fuel dispensing sites if each 
10.9 	site is located in Minnesota and the grant 
10.10 	money under this paragraph is used to modify 
10.11 	or install storage and dispensing components 
10.12 	that dispense gasoline blended with at least 
10.13 	15 percent of agriculturally derived, denatured 
10.14 	ethanol by volume for use in spark ignition 
10.15 	engines. A grant award under this paragraph 
10.16 	must not exceed 90 percent of the cost of the 
10.17 	installation project. The commissioner must 
10.18 	coordinate with stakeholders to establish grant 
10.19 	criteria and distribute grants in a manner to 
10.20 	more fully attain the requirements in 
10.21 	Minnesota Statutes, section 239.7911. Of this 
10.22 	appropriation, up to $50,000 is for grants to 
10.23 	create greater awareness among motorists of 
10.24 	the availability of motor fuel comprised of 15 
10.25 	percent agriculturally derived, denatured 
10.26 	ethanol by volume for use in spark ignition 
10.27 	engines. Notwithstanding Minnesota Statutes, 
10.28 	section 16A.28, the appropriation in this 
10.29 	paragraph is available until June 30, 2023. The 
10.30 	commissioner must report to the legislative 
10.31 	committees and divisions with jurisdiction 
10.32 	over agriculture policy and finance by 
10.33 	February 1 of each year in which funds are 
10.34 	available, detailing the number of grants 
10.35 	awarded and the projected effect of the grant 
10.36 	program on meeting the biofuel replacement 
11.1 	goals under Minnesota Statutes, section 
11.2 	239.7911.

11.3
11.4	Subd. 5.Administration and Financial 
Assistance
 		7,684,000
		7,519,000
	
11.5 	(a) $25,000 the first year and $25,000 the 
11.6 	second year are for grants to the Southern 
11.7 	Minnesota Initiative Foundation to promote 
11.8 	local foods through an annual event that raises 
11.9 	public awareness of local foods and connects 
11.10 	local food producers and processors with 
11.11 	potential buyers.
11.12 	(b) $75,000 the first year is for a grant to 
11.13 	Greater Mankato Growth, Inc. for assistance 
11.14 	to agricultural-related businesses to promote 
11.15 	jobs, innovation, and synergy development.
11.16 	(c) $25,000 the first year and $25,000 the 
11.17 	second year are for grants to a nonprofit 
11.18 	organization to provide a legal assistance 
11.19 	hotline for farmers. These are onetime 
11.20 	appropriations.
11.21 	(d) $474,000 the first year and $474,000 the 
11.22 	second year are for payments to county and 
11.23 	district agricultural societies and associations 
11.24 	under Minnesota Statutes, section 38.02, 
11.25 	subdivision 1. Aid payments to county and 
11.26 	district agricultural societies and associations 
11.27 	shall be disbursed no later than July 15 of each 
11.28 	year. These payments are the amount of aid 
11.29 	from the state for an annual fair held in the 
11.30 	previous calendar year.
11.31 	(e) $1,000 the first year and $1,000 the second 
11.32 	year are for grants to the Minnesota State 
11.33 	Poultry Association.
12.1 	(f) $18,000 the first year and $18,000 the 
12.2 	second year are for grants to the Minnesota 
12.3 	Livestock Breeders Association.
12.4 	(g) $47,000 the first year and $47,000 the 
12.5 	second year are for the Northern Crops 
12.6 	Institute. These appropriations may be spent 
12.7 	to purchase equipment.
12.8 	(h) $267,000 the first year and $267,000 the 
12.9 	second year are for farm advocate services.
12.10 	(i) $17,000 the first year and $17,000 the 
12.11 	second year are for grants to the Minnesota 
12.12 	Horticultural Society.
12.13 	(j) $250,000 the first year and $250,000 the 
12.14 	second year are for transfer to the Board of 
12.15 	Trustees of the Minnesota State Colleges and 
12.16 	Universities for statewide mental health 
12.17 	counseling support to farm families and 
12.18 	business operators through the Minnesota State 
12.19 	Agricultural Centers of Excellence. South 
12.20 	Central College and Central Lakes College 
12.21 	shall serve as the fiscal agents.
12.22 	(k) $1,700,000 the first year and $1,700,000 
12.23 	the second year are for grants to Second 
12.24 	Harvest Heartland on behalf of Minnesota's 
12.25 	six Feeding America food banks for the 
12.26 	following:
12.27 	(1) to purchase milk for distribution to 
12.28 	Minnesota's food shelves and other charitable 
12.29 	organizations that are eligible to receive food 
12.30 	from the food banks. Milk purchased under 
12.31 	the grants must be acquired from Minnesota 
12.32 	milk processors and based on low-cost bids. 
12.33 	The milk must be allocated to each Feeding 
12.34 	America food bank serving Minnesota 
13.1 	according to the formula used in the 
13.2 	distribution of United States Department of 
13.3 	Agriculture commodities under The 
13.4 	Emergency Food Assistance Program. Second 
13.5 	Harvest Heartland may enter into contracts or 
13.6 	agreements with food banks for shared funding 
13.7 	or reimbursement of the direct purchase of 
13.8 	milk. Each food bank that receives funding 
13.9 	under this clause may use up to two percent 
13.10 	for administrative expenses; and
13.11 	(2) to compensate agricultural producers and 
13.12 	processors for costs incurred to harvest and 
13.13 	package for transfer surplus fruits, vegetables, 
13.14 	and other agricultural commodities that would 
13.15 	otherwise go unharvested, be discarded, or 
13.16 	sold in a secondary market. Surplus 
13.17 	commodities must be distributed statewide to 
13.18 	food shelves and other charitable organizations 
13.19 	that are eligible to receive food from the food 
13.20 	banks. Surplus food acquired under this clause 
13.21 	must be from Minnesota producers and 
13.22 	processors. Second Harvest Heartland may 
13.23 	use up to 15 percent of each grant awarded 
13.24 	under this clause to match administrative and 
13.25 	transportation expenses.
13.26 	Of the amount appropriated under this 
13.27 	paragraph, at least $600,000 each year must 
13.28 	be allocated under clause (1). Notwithstanding 
13.29 	Minnesota Statutes, section 16A.28, any 
13.30 	unencumbered balance the first year does not 
13.31 	cancel and is available in the second year. 
13.32 	Second Harvest Heartland must submit 
13.33 	quarterly reports to the commissioner in the 
13.34 	form prescribed by the commissioner. The 
13.35 	reports must include but are not limited to 
14.1 	information on the expenditure of funds, the 
14.2 	amount of milk or other commodities 
14.3 	purchased, and the organizations to which this 
14.4 	food was distributed. The base for this 
14.5 	appropriation is $1,650,000 in fiscal year 2022 
14.6 	and $1,650,000 in fiscal year 2023.
14.7 	(l) $200,000 the first year and $150,000 the 
14.8 	second year are for grants to the Center for 
14.9 	Rural Policy and Development. $50,000 the 
14.10 	first year is for the study required under 
14.11 	section 24 and notwithstanding Minnesota 
14.12 	Statutes, section 16A.28, is available until June 
14.13 	30, 2021.
14.14 	(m) $275,000 the first year and $235,000 the 
14.15 	second year are for grants to the Minnesota 
14.16 	Agricultural Education and Leadership 
14.17 	Council for programs of the council under 
14.18 	Minnesota Statutes, chapter 41D. Of the first 
14.19 	year appropriation, $40,000 is to facilitate 
14.20 	development of a farm transitions curriculum. 
14.21 	Notwithstanding Minnesota Statutes, section 
14.22 	16A.28, the first year appropriation is 
14.23 	available until June 30, 2021.

14.24	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,757,000
	$
	6,077,000
	
14.25 	(a) $30,000 the first year and $350,000 the 
14.26 	second year are to improve oversight of 
14.27 	farmed Cervidae.
14.28 	(b) $250,000 the first year and $250,000 the 
14.29 	second year are for agricultural emergency 
14.30 	preparedness and response.
14.31 	(c) $6,000 the first year and $6,000 the second 
14.32 	year are from the Cervidae inspection account 
14.33 	in the special revenue fund to develop 
14.34 	electronic forms to better track farmed 
15.1 	Cervidae movement and record keeping. These 
15.2 	are onetime appropriations.

15.3
15.4	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,897,000
	$
	3,900,000
	
15.5 	$104,000 the first year and $107,000 the 
15.6 	second year are to maintain the current level 
15.7 	of service delivery.

15.8 	Sec. 5. Minnesota Statutes 2018, section 17.118, subdivision 2, is amended to read:
15.9 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
15.10 	subdivision have the meanings given them.
15.11 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
15.12 	Cervidae, Ratitae, bison, sheep, horses, and llamas.
15.13 	(c) "Qualifying expenditures" means the amount spent for:
15.14 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
15.15 	production of livestock or livestock products;
15.16 	(2) the development of pasture for use by livestock including, but not limited to, the 
15.17 	acquisition, development, or improvement of:
15.18 	(i) lanes used by livestock that connect pastures to a central location;
15.19 	(ii) watering systems for livestock on pasture including water lines, booster pumps, and 
15.20 	well installations;
15.21 	(iii) livestock stream crossing stabilization; and
15.22 	(iv) fences; or
15.23 	(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste 
15.24 	management including, but not limited to, the following:
15.25 	(i) freestall barns;
15.26 	(ii) watering facilities;
15.27 	(iii) feed storage and handling equipment;
15.28 	(iv) milking parlors;
15.29 	(v) robotic equipment;
15.30 	(vi) scales;
16.1 	(vii) milk storage and cooling facilities;
16.2 	(viii) bulk tanks;
16.3 	(ix) computer hardware and software and associated equipment used to monitor the 
16.4 	productivity and feeding of livestock;
16.5 	(x) manure pumping and storage facilities;
16.6 	(xi) swine farrowing facilities;
16.7 	(xii) swine and cattle finishing barns;
16.8 	(xiii) calving facilities;
16.9 	(xiv) digesters;
16.10 	(xv) equipment used to produce energy;
16.11 	(xvi) on-farm processing facilities equipment;
16.12 	(xvii) fences, including but not limited to farmed Cervidae perimeter fences required 
16.13 	under section 35.155, subdivision 4; and
16.14 	(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
16.15 	Except for qualifying pasture development expenditures under clause (2), qualifying 
16.16 	expenditures only include amounts that are allowed to be capitalized and deducted under 
16.17 	either section 167 or 179 of the Internal Revenue Code in computing federal taxable income. 
16.18 	Qualifying expenditures do not include an amount paid to refinance existing debt.

16.19 	Sec. 6. Minnesota Statutes 2018, section 18B.07, subdivision 2, is amended to read:
16.20 		Subd. 2.Prohibited pesticide use. (a) A person may not use, store, handle, distribute, 
16.21 	or dispose of a pesticide, rinsate, pesticide container, or pesticide application equipment in 
16.22 	a manner:
16.23 	(1) that is inconsistent with a label or labeling as defined by FIFRA;
16.24 	(2) that endangers humans, damages agricultural products, food, livestock, fish, or 
16.25 	wildlife; or
16.26 	(3) that will cause unreasonable adverse effects on the environment.
16.27 	(b) A person may not direct a pesticide onto property beyond the boundaries of the target 
16.28 	site. A person may not apply a pesticide resulting in damage to adjacent property. A person 
16.29 	who applies a pesticide resulting in damage to adjacent property that is part of the state 
17.1 	outdoor recreation system is subject to enhanced monetary penalties as provided in section 
17.2 	18D.40.
17.3 	(c) A person may not directly apply a pesticide on a human by overspray or target site 
17.4 	spray, except when:
17.5 	(1) the pesticide is intended for use on a human;
17.6 	(2) the pesticide application is for mosquito control operations;
17.7 	(3) the pesticide application is for control of gypsy moth, forest tent caterpillar, or other 
17.8 	pest species, as determined by the commissioner, and the pesticide used is a biological 
17.9 	agent; or
17.10 	(4) the pesticide application is for a public health risk, as determined by the commissioner 
17.11 	of health, and the commissioner of health, in consultation with the commissioner of 
17.12 	agriculture, determines that the application is warranted based on the commissioner's 
17.13 	balancing of the public health risk with the risk that the pesticide application poses to the 
17.14 	health of the general population, with special attention to the health of children.
17.15 	(d) For pesticide applications under paragraph (c), clause (2), the following conditions 
17.16 	apply:
17.17 	(1) no practicable and effective alternative method of control exists;
17.18 	(2) the pesticide is among the least toxic available for control of the target pest; and
17.19 	(3) notification to residents in the area to be treated is provided at least 24 hours before 
17.20 	application through direct notification, posting daily on the treating organization's website, 
17.21 	if any, and by sending a broadcast e-mail to those persons who request notification of such, 
17.22 	of those areas to be treated by adult mosquito control techniques during the next calendar 
17.23 	day. For control operations related to human disease, notice under this paragraph may be 
17.24 	given less than 24 hours in advance.
17.25 	(e) For pesticide applications under paragraph (c), clauses (3) and (4), the following 
17.26 	conditions apply:
17.27 	(1) no practicable and effective alternative method of control exists;
17.28 	(2) the pesticide is among the least toxic available for control of the target pest; and
17.29 	(3) notification of residents in the area to be treated is provided by direct notification 
17.30 	and through publication in a newspaper of general circulation within the affected area.
18.1 	(f) For purposes of this subdivision, "direct notification" may include mailings, public 
18.2 	meetings, posted placards, neighborhood newsletters, or other means of contact designed 
18.3 	to reach as many residents as possible. Public meetings held to meet this requirement for 
18.4 	adult mosquito control, under paragraph (d), must be held within each city or town where 
18.5 	the pesticide treatments are to be made, at a time and location that is convenient for residents 
18.6 	of the area where the treatments will occur.
18.7 	(g) A person may not apply a pesticide in a manner so as to expose a worker in an 
18.8 	immediately adjacent, open field.
18.9 	(h) Notwithstanding that the application is done in a manner consistent with the label 
18.10 	or labeling, it is a violation of this chapter to directly apply a pesticide to a site where an 
18.11 	application has not been: (1) requested, ordered, contracted for, or permitted; or (2) performed 
18.12 	pursuant to paragraph (c), clause (2), (3), or (4).

18.13 	Sec. 7. Minnesota Statutes 2018, section 18B.34, subdivision 5, is amended to read:
18.14 		Subd. 5.Fees. (a) Except as provided under paragraph (b), a person initially applying 
18.15 	for or renewing a noncommercial applicator license must pay a nonrefundable application 
18.16 	fee of $50, except an applicant who is a government or Conservation Corps Minnesota 
18.17 	employee who uses pesticides in the course of performing official duties must pay a 
18.18 	nonrefundable application fee of $10.
18.19 	(b) A government employee, a contractor providing rest area custodial services for the 
18.20 	commissioner of transportation, or a Conservation Corps Minnesota employee is eligible 
18.21 	for a reduced fee of $10 if the employee or contractor uses pesticides in the course of 
18.22 	performing official duties.
18.23 	(b) (c) A license renewal application received after March 1 in the year for which the 
18.24 	license is to be issued is subject to a penalty fee of 50 percent of the application fee. The 
18.25 	penalty fee must be paid before the renewal license may be issued.
18.26 	(c) (d) An application for a duplicate noncommercial applicator license must be 
18.27 	accompanied by a nonrefundable application fee of $10.

18.28 	Sec. 8. Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:
18.29 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
18.30 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
18.31 	pay the inspection fee to the commissioner.
19.1 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
19.2 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
19.3 	exempted under section 18C.421, subdivision 1, paragraph (b).
19.4 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
19.5 	amendments, or plant amendments sold and used in this state must pay an inspection fee of 
19.6 	39 cents per ton, and until June 30, 2019 2024, an additional 40 cents per ton, of fertilizer, 
19.7 	soil amendment, and plant amendment sold or distributed in this state, with a minimum of 
19.8 	$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit 
19.9 	all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and 
19.10 	education account in section 18C.80. Products sold or distributed to manufacturers or 
19.11 	exchanged between them are exempt from the inspection fee imposed by this subdivision 
19.12 	if the products are used exclusively for manufacturing purposes.
19.13 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
19.14 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
19.15 	of three years.

19.16 	Sec. 9. Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:
19.17 		Subd. 5.Expiration. This section expires June 30, 2020 2025.

19.18 	Sec. 10. Minnesota Statutes 2018, section 18C.71, subdivision 1, is amended to read:
19.19 		Subdivision 1.Eligible projects. Eligible project activities include research, education, 
19.20 	and technology transfer related to the production and application of fertilizer, soil 
19.21 	amendments, and other plant amendments. Chosen projects must contain a component of 
19.22 	outreach that achieves a timely dissemination of findings and their applicability to the 
19.23 	production agricultural community or metropolitan fertilizer users.

19.24 	Sec. 11. Minnesota Statutes 2018, section 18C.71, subdivision 2, is amended to read:
19.25 		Subd. 2.Awarding grants. Applications for program grants must be submitted in the 
19.26 	form prescribed by the Minnesota Agricultural Fertilizer Research and Education Council. 
19.27 	Applications must be submitted on or before the deadline prescribed by the council. All 
19.28 	applications are subject to a thorough in-state review by a peer committee established and 
19.29 	approved by the council. Each project meeting the basic qualifications is subject to a yes 
19.30 	or no vote by each council member. Projects chosen to receive funding must achieve an 
19.31 	affirmative vote from at least eight of the 12 council members or two-thirds of voting 
19.32 	members present. Projects awarded program funds must submit an annual progress report 
20.1 	in the form prescribed by the council. Up to ten percent of the grant dollars awarded each 
20.2 	cycle may be for projects that concern fertilizer use in metropolitan areas.

20.3 	Sec. 12. Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:
20.4 		Subd. 4.Expiration. This section expires June 30, 2020 2025.

20.5 	Sec. 13. Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:
20.6 		Subd. 2.Expiration. This section expires June 30, 2020 2025.

20.7 	Sec. 14. [18D.40] ENHANCED PENALTIES; OUTDOOR RECREATION LANDS.
20.8 	Notwithstanding limitations placed on administrative or civil penalty amounts under 
20.9 	sections 18D.315 and 18D.325, a person who applies a pesticide resulting in damage to 
20.10 	adjacent property that is part of the state outdoor recreation system is subject to a monetary 
20.11 	penalty equal to twice the amount that the commissioner would otherwise assess for a 
20.12 	comparable violation.

20.13 	Sec. 15. Minnesota Statutes 2018, section 18H.14, is amended to read:
20.14 	18H.14 LABELING AND ADVERTISING OF NURSERY STOCK.
20.15 	(a) Plants, plant materials, or nursery stock must not be labeled or advertised with false 
20.16 	or misleading information including, but not limited to, scientific name, variety, place of 
20.17 	origin, hardiness zone as defined by the United States Department of Agriculture, and growth 
20.18 	habit.
20.19 	(b) All nonhardy nursery stock as designated by the commissioner must be labeled 
20.20 	correctly for hardiness or be labeled "nonhardy" in Minnesota.
20.21 	(c) A person may not offer for distribution plants, plant materials, or nursery stock, 
20.22 	represented by some specific or special form of notation, including, but not limited to, "free 
20.23 	from" or "grown free of," unless the plants are produced under a specific program approved 
20.24 	by the commissioner to address the specific plant properties addressed in the special notation 
20.25 	claim.
20.26 	(d) Nursery stock collected from the wild state must be inspected and certified prior to 
20.27 	sale and at the time of sale must be labeled "Collected from the Wild." The label must remain 
20.28 	on each plant or clump of plants while it is offered for sale and during the distribution 
20.29 	process. The collected stock may be grown in nursery rows at least two years, after which 
20.30 	the plants may be sold without the labeling required by this paragraph.
21.1 	(e) A person selling at retail or providing to an end user may not label or advertise an 
21.2 	annual plant, bedding plant, or other plant, plant material, or nursery stock as beneficial to 
21.3 	pollinators if the annual plant, bedding plant, plant material, or nursery stock has:
21.4 	(1) been treated with and has a detectable level of a systemic insecticide that:
21.5 	(i) (1) has a pollinator protection box on the label; or
21.6 	(ii) (2) has a pollinator, bee, or honey bee precautionary statement in the environmental 
21.7 	hazards section of the insecticide product label; and.
21.8 	(2) a concentration in its flowers greater than the no observed adverse effect level of a 
21.9 	systemic insecticide.
21.10 	The commissioner shall enforce this paragraph as provided in chapter 18J.
21.11 	(f) For the purposes of paragraph (e):,
21.12 	(1) "systemic insecticide" means an insecticide that is both absorbed by the plant and 
21.13 	translocated through the plant's vascular system; and.
21.14 	(2) "no observed adverse effect level" means the level established by the United States 
21.15 	Environmental Protection Agency for acute oral toxicity for adult honeybees.

21.16 	Sec. 16. Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:
21.17 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. and 
21.18 	any part of the plant, whether growing or not, including the plant's seeds, and all the plant's 
21.19 	derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 
21.20 	growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 
21.21 	percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01, 
21.22 	subdivision 9.

21.23 	Sec. 17. Minnesota Statutes 2018, section 18K.03, is amended to read:
21.24 	18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.
21.25 	Industrial hemp is an agricultural crop in this state. A person may possess, transport, 
21.26 	process, sell, or buy industrial hemp that is grown pursuant to this chapter or lawfully grown 
21.27 	in another state.

22.1 	Sec. 18. Minnesota Statutes 2018, section 28A.16, is amended to read:
22.2 	28A.16 PERSONS SELLING LIQUOR.
22.3 	(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
22.4 	to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent 
22.5 	malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell 
22.6 	intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, 
22.7 	provided that these persons sell only ice manufactured and packaged by another, or bottled 
22.8 	or canned soft drinks and prepacked candy at retail.
22.9 	(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner 
22.10 	must exclude all gross sales of off-sale alcoholic beverages when determining the applicable 
22.11 	license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive 
22.12 	liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

22.13 	Sec. 19. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as 
22.14 	amended by Laws 2016, chapter 184, section 11, Laws 2016, chapter 189, article 2, section 
22.15 	26, and Laws 2017, chapter 88, article 1, section 5, is amended to read:

22.16
22.17	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		14,993,000
		18,316,000
	
22.18 	$4,483,000 the first year and $8,500,000 the 
22.19 	second year are for transfer to the agriculture 
22.20 	research, education, extension, and technology 
22.21 	transfer account under Minnesota Statutes, 
22.22 	section 41A.14, subdivision 3. The transfer in 
22.23 	this paragraph includes money for plant 
22.24 	breeders at the University of Minnesota for 
22.25 	wild rice, potatoes, and grapes. Of these 
22.26 	amounts, at least $600,000 each year is for the 
22.27 	Minnesota Agricultural Experiment Station's 
22.28 	Agriculture Rapid Response Fund under 
22.29 	Minnesota Statutes, section 41A.14, 
22.30 	subdivision 1, clause (2). Of the amount 
22.31 	appropriated in this paragraph, $1,000,000 
22.32 	each year is for transfer to the Board of 
22.33 	Regents of the University of Minnesota for 
22.34 	research to determine (1) what is causing avian 
23.1 	influenza, (2) why some fowl are more 
23.2 	susceptible, and (3) prevention measures that 
23.3 	can be taken. Of the amount appropriated in 
23.4 	this paragraph, $2,000,000 each year is for 
23.5 	grants to the Minnesota Agriculture Education 
23.6 	Leadership Council to enhance agricultural 
23.7 	education with priority given to Farm Business 
23.8 	Management challenge grants. The 
23.9 	commissioner shall transfer the remaining 
23.10 	grant funds in this appropriation each year to 
23.11 	the Board of Regents of the University of 
23.12 	Minnesota for purposes of Minnesota Statutes, 
23.13 	section 41A.14.
23.14 	To the extent practicable, funds expended 
23.15 	under Minnesota Statutes, section 41A.14, 
23.16 	subdivision 1, clauses (1) and (2), must 
23.17 	supplement and not supplant existing sources 
23.18 	and levels of funding. The commissioner may 
23.19 	use up to 4.5 percent of this appropriation for 
23.20 	costs incurred to administer the program. Any 
23.21 	unencumbered balance does not cancel at the 
23.22 	end of the first year and is available for the 
23.23 	second year.
23.24 	$10,235,000 the first year and $9,541,000 the 
23.25 	second year are for the agricultural growth, 
23.26 	research, and innovation program in 
23.27 	Minnesota Statutes, section 41A.12. No later 
23.28 	than February 1, 2016, and February 1, 2017, 
23.29 	the commissioner must report to the legislative 
23.30 	committees with jurisdiction over agriculture 
23.31 	policy and finance regarding the 
23.32 	commissioner's accomplishments and 
23.33 	anticipated accomplishments in the following 
23.34 	areas: facilitating the start-up, modernization, 
23.35 	or expansion of livestock operations including 
24.1 	beginning and transitioning livestock 
24.2 	operations; developing new markets for 
24.3 	Minnesota farmers by providing more fruits, 
24.4 	vegetables, meat, grain, and dairy for 
24.5 	Minnesota school children; assisting 
24.6 	value-added agricultural businesses to begin 
24.7 	or expand, access new markets, or diversify 
24.8 	products; developing urban agriculture; 
24.9 	facilitating the start-up, modernization, or 
24.10 	expansion of other beginning and transitioning 
24.11 	farms including loans under Minnesota 
24.12 	Statutes, section 41B.056; sustainable 
24.13 	agriculture on farm research and 
24.14 	demonstration; development or expansion of 
24.15 	food hubs and other alternative 
24.16 	community-based food distribution systems; 
24.17 	incentive payments under Minnesota Statutes, 
24.18 	sections 41A.16, 41A.17, and 41A.18; and 
24.19 	research on bioenergy, biobased content, or 
24.20 	biobased formulated products and other 
24.21 	renewable energy development. The 
24.22 	commissioner may use up to 4.5 percent of 
24.23 	this appropriation for costs incurred to 
24.24 	administer the program. Any unencumbered 
24.25 	balance does not cancel at the end of the first 
24.26 	year and is available for the second year. 
24.27 	Notwithstanding Minnesota Statutes, section 
24.28 	16A.28, the appropriations encumbered under 
24.29 	contract on or before June 30, 2017, for 
24.30 	agricultural growth, research, and innovation 
24.31 	grants are available until June 30, 2019 2020.
24.32 	The commissioner may use funds appropriated 
24.33 	for the agricultural growth, research, and 
24.34 	innovation program as provided in this 
24.35 	paragraph. The commissioner may award 
24.36 	grants to owners of Minnesota facilities 
25.1 	producing bioenergy, biobased content, or a 
25.2 	biobased formulated product; to organizations 
25.3 	that provide for on-station, on-farm field scale 
25.4 	research and outreach to develop and test the 
25.5 	agronomic and economic requirements of 
25.6 	diverse strands of prairie plants and other 
25.7 	perennials for bioenergy systems; or to certain 
25.8 	nongovernmental entities. For the purposes of 
25.9 	this paragraph, "bioenergy" includes 
25.10 	transportation fuels derived from cellulosic 
25.11 	material, as well as the generation of energy 
25.12 	for commercial heat, industrial process heat, 
25.13 	or electrical power from cellulosic materials 
25.14 	via gasification or other processes. Grants are 
25.15 	limited to 50 percent of the cost of research, 
25.16 	technical assistance, or equipment related to 
25.17 	bioenergy, biobased content, or biobased 
25.18 	formulated product production or $500,000, 
25.19 	whichever is less. Grants to nongovernmental 
25.20 	entities for the development of business plans 
25.21 	and structures related to community ownership 
25.22 	of eligible bioenergy facilities together may 
25.23 	not exceed $150,000. The commissioner shall 
25.24 	make a good-faith effort to select projects that 
25.25 	have merit and, when taken together, represent 
25.26 	a variety of bioenergy technologies, biomass 
25.27 	feedstocks, and geographic regions of the 
25.28 	state. Projects must have a qualified engineer 
25.29 	provide certification on the technology and 
25.30 	fuel source. Grantees must provide reports at 
25.31 	the request of the commissioner.
25.32 	Of the amount appropriated for the agricultural 
25.33 	growth, research, and innovation program in 
25.34 	this subdivision, $1,000,000 the first year and 
25.35 	$1,000,000 the second year are for distribution 
25.36 	in equal amounts to each of the state's county 
26.1 	fairs to preserve and promote Minnesota 
26.2 	agriculture.
26.3 	Of the amount appropriated for the agricultural 
26.4 	growth, research, and innovation program in 
26.5 	this subdivision, $500,000 in fiscal year 2016 
26.6 	and $806,000 in fiscal year 2017 are for 
26.7 	incentive payments under Minnesota Statutes, 
26.8 	sections 41A.16, 41A.17, and 41A.18. If the 
26.9 	appropriation exceeds the total amount for 
26.10 	which all producers are eligible in a fiscal 
26.11 	year, the balance of the appropriation is 
26.12 	available to the commissioner for the 
26.13 	agricultural growth, research, and innovation 
26.14 	program. Notwithstanding Minnesota Statutes, 
26.15 	section 16A.28, the first year appropriation is 
26.16 	available until June 30, 2017, and the second 
26.17 	year appropriation is available until June 30, 
26.18 	2018. The commissioner may use up to 4.5 
26.19 	percent of the appropriation for administration 
26.20 	of the incentive payment programs.
26.21 	Of the amount appropriated for the agricultural 
26.22 	growth, research, and innovation program in 
26.23 	this subdivision, $250,000 the first year is for 
26.24 	grants to communities to develop or expand 
26.25 	food hubs and other alternative 
26.26 	community-based food distribution systems. 
26.27 	Of this amount, $50,000 is for the 
26.28 	commissioner to consult with existing food 
26.29 	hubs, alternative community-based food 
26.30 	distribution systems, and University of 
26.31 	Minnesota Extension to identify best practices 
26.32 	for use by other Minnesota communities. No 
26.33 	later than December 15, 2015, the 
26.34 	commissioner must report to the legislative 
26.35 	committees with jurisdiction over agriculture 
27.1 	and health regarding the status of emerging 
27.2 	alternative community-based food distribution 
27.3 	systems in the state along with 
27.4 	recommendations to eliminate any barriers to 
27.5 	success. Any unencumbered balance does not 
27.6 	cancel at the end of the first year and is 
27.7 	available for the second year. This is a onetime 
27.8 	appropriation.
27.9 	$250,000 the first year and $250,000 the 
27.10 	second year are for grants that enable retail 
27.11 	petroleum dispensers to dispense biofuels to 
27.12 	the public in accordance with the biofuel 
27.13 	replacement goals established under 
27.14 	Minnesota Statutes, section 239.7911. A retail 
27.15 	petroleum dispenser selling petroleum for use 
27.16 	in spark ignition engines for vehicle model 
27.17 	years after 2000 is eligible for grant money 
27.18 	under this paragraph if the retail petroleum 
27.19 	dispenser has no more than 15 retail petroleum 
27.20 	dispensing sites and each site is located in 
27.21 	Minnesota. The grant money received under 
27.22 	this paragraph must be used for the installation 
27.23 	of appropriate technology that uses fuel 
27.24 	dispensing equipment appropriate for at least 
27.25 	one fuel dispensing site to dispense gasoline 
27.26 	that is blended with 15 percent of 
27.27 	agriculturally derived, denatured ethanol, by 
27.28 	volume, and appropriate technical assistance 
27.29 	related to the installation. A grant award must 
27.30 	not exceed 85 percent of the cost of the 
27.31 	technical assistance and appropriate 
27.32 	technology, including remetering of and 
27.33 	retrofits for retail petroleum dispensers and 
27.34 	replacement of petroleum dispenser projects. 
27.35 	The commissioner may use up to $35,000 of 
27.36 	this appropriation for administrative expenses. 
28.1 	The commissioner shall cooperate with biofuel 
28.2 	stakeholders in the implementation of the grant 
28.3 	program. The commissioner must report to 
28.4 	the legislative committees with jurisdiction 
28.5 	over agriculture policy and finance by 
28.6 	February 1 each year, detailing the number of 
28.7 	grants awarded under this paragraph and the 
28.8 	projected effect of the grant program on 
28.9 	meeting the biofuel replacement goals under 
28.10 	Minnesota Statutes, section 239.7911. These 
28.11 	are onetime appropriations.
28.12 	$25,000 the first year and $25,000 the second 
28.13 	year are for grants to the Southern Minnesota 
28.14 	Initiative Foundation to promote local foods 
28.15 	through an annual event that raises public 
28.16 	awareness of local foods and connects local 
28.17 	food producers and processors with potential 
28.18 	buyers.

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

28.20 	Sec. 20. Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

28.21	Subd. 2.Protection Services
 		17,821,000
		17,825,000

28.22	Appropriations by Fund
	
28.23		2018
	2019
	
28.24	General
	17,428,000
	17,428,000
	
28.25	Remediation
	393,000
	397,000
	
28.26 	(a) $25,000 the first year and $25,000 the 
28.27 	second year are to develop and maintain 
28.28 	cottage food license exemption outreach and 
28.29 	training materials.
28.30 	(b) $75,000 the first year and $75,000 the 
28.31 	second year are to coordinate the correctional 
28.32 	facility vocational training program and to 
28.33 	assist entities that have explored the feasibility 
29.1 	of establishing a USDA-certified or state 
29.2 	"equal to" food processing facility within 30 
29.3 	miles of the Northeast Regional Corrections 
29.4 	Center.
29.5 	(c) $125,000 the first year and $125,000 the 
29.6 	second year are for additional funding for the 
29.7 	noxious weed and invasive plant program. 
29.8 	These are onetime appropriations.
29.9 	(d) $250,000 the first year and $250,000 the 
29.10 	second year are for transfer to the pollinator 
29.11 	habitat and research account in the agricultural 
29.12 	fund. These are onetime transfers.
29.13 	(e) $393,000 the first year and $397,000 the 
29.14 	second year are from the remediation fund for 
29.15 	administrative funding for the voluntary 
29.16 	cleanup program.
29.17 	(f) $200,000 the first year and $200,000 the 
29.18 	second year are for the industrial hemp pilot 
29.19 	program under Minnesota Statutes, section 
29.20 	18K.09. These are onetime appropriations.
29.21 	(g) $175,000 the first year and $175,000 the 
29.22 	second year are for compensation for 
29.23 	destroyed or crippled livestock under 
29.24 	Minnesota Statutes, section 3.737. This 
29.25 	appropriation may be spent to compensate for 
29.26 	livestock that were destroyed or crippled 
29.27 	during fiscal year 2017. If the amount in the 
29.28 	first year is insufficient, the amount in the 
29.29 	second year is available in the first year. The 
29.30 	commissioner may use up to $5,000 of this 
29.31 	appropriation the second year to reimburse 
29.32 	expenses incurred by university extension 
29.33 	educators to provide fair market values of 
29.34 	destroyed or crippled livestock.
30.1 	(h) $155,000 the first year and $155,000 the 
30.2 	second year are for compensation for crop 
30.3 	damage under Minnesota Statutes, section 
30.4 	3.7371. If the amount in the first year is 
30.5 	insufficient, the amount in the second year is 
30.6 	available in the first year. The commissioner 
30.7 	may use up to $30,000 of the appropriation 
30.8 	each year to reimburse expenses incurred by 
30.9 	the commissioner or the commissioner's 
30.10 	approved agent to investigate and resolve 
30.11 	claims.
30.12 	If the commissioner determines that claims 
30.13 	made under Minnesota Statutes, section 3.737
30.14 	or 3.7371, are unusually high, amounts 
30.15 	appropriated for either program may be 
30.16 	transferred to the appropriation for the other 
30.17 	program.
30.18 	(i) $250,000 the first year and $250,000 the 
30.19 	second year are to expand current capabilities 
30.20 	for rapid detection, identification, containment, 
30.21 	control, and management of high priority plant 
30.22 	pests and pathogens. These are onetime 
30.23 	appropriations.
30.24 	(j) $300,000 the first year and $300,000 the 
30.25 	second year are for transfer to the noxious 
30.26 	weed and invasive plant species assistance 
30.27 	account in the agricultural fund to award 
30.28 	grants to local units of government under 
30.29 	Minnesota Statutes, section 18.90, with 
30.30 	preference given to local units of government 
30.31 	responding to Palmer amaranth or other weeds 
30.32 	on the eradicate list. These are onetime 
30.33 	transfers.
30.34 	(k) $120,000 the first year and $120,000 the 
30.35 	second year are for wolf-livestock conflict 
31.1 	prevention grants under article 2, section 89. 
31.2 	The commissioner must submit a report to the 
31.3 	chairs and ranking minority members of the 
31.4 	legislative committees with jurisdiction over 
31.5 	agriculture policy and finance by January 15, 
31.6 	2020, on the outcomes of the wolf-livestock 
31.7 	conflict prevention grants and whether 
31.8 	livestock compensation claims were reduced 
31.9 	in the areas that grants were awarded. These 
31.10 	are onetime appropriations.

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

31.12 	Sec. 21. Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

31.13
31.14	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
	
31.15 	(a) $9,300,000 the first year and $9,300,000 
31.16 	the second year are for transfer to the 
31.17 	agriculture research, education, extension, and 
31.18 	technology transfer account under Minnesota 
31.19 	Statutes, section 41A.14, subdivision 3. Of 
31.20 	these amounts: at least $600,000 the first year 
31.21 	and $600,000 the second year are for the 
31.22 	Minnesota Agricultural Experiment Station's 
31.23 	agriculture rapid response fund under 
31.24 	Minnesota Statutes, section 41A.14, 
31.25 	subdivision 1, clause (2); $2,000,000 the first 
31.26 	year and $2,000,000 the second year are for 
31.27 	grants to the Minnesota Agriculture Education 
31.28 	Leadership Council to enhance agricultural 
31.29 	education with priority given to Farm Business 
31.30 	Management challenge grants; $350,000 the 
31.31 	first year and $350,000 the second year are 
31.32 	for potato breeding; and $450,000 the first 
31.33 	year and $450,000 the second year are for the 
31.34 	cultivated wild rice breeding project at the 
31.35 	North Central Research and Outreach Center 
32.1 	to include a tenure track/research associate 
32.2 	plant breeder. The commissioner shall transfer 
32.3 	the remaining funds in this appropriation each 
32.4 	year to the Board of Regents of the University 
32.5 	of Minnesota for purposes of Minnesota 
32.6 	Statutes, section 41A.14. Of the amount 
32.7 	transferred to the Board of Regents, up to 
32.8 	$1,000,000 each year is for research on avian 
32.9 	influenza, including prevention measures that 
32.10 	can be taken.
32.11 	To the extent practicable, funds expended 
32.12 	under Minnesota Statutes, section 41A.14, 
32.13 	subdivision 1, clauses (1) and (2), must 
32.14 	supplement and not supplant existing sources 
32.15 	and levels of funding. The commissioner may 
32.16 	use up to one percent of this appropriation for 
32.17 	costs incurred to administer the program.
32.18 	(b) $13,256,000 the first year and $13,311,000 
32.19 	the second year are for the agricultural growth, 
32.20 	research, and innovation program in 
32.21 	Minnesota Statutes, section 41A.12. Except 
32.22 	as provided below, the commissioner may 
32.23 	allocate the appropriation each year among 
32.24 	the following areas: facilitating the start-up, 
32.25 	modernization, or expansion of livestock 
32.26 	operations including beginning and 
32.27 	transitioning livestock operations; developing 
32.28 	new markets for Minnesota farmers by 
32.29 	providing more fruits, vegetables, meat, grain, 
32.30 	and dairy for Minnesota school children; 
32.31 	assisting value-added agricultural businesses 
32.32 	to begin or expand, access new markets, or 
32.33 	diversify; providing funding not to exceed 
32.34 	$250,000 each year for urban youth 
32.35 	agricultural education or urban agriculture 
33.1 	community development; providing funding 
33.2 	not to exceed $250,000 each year for the good 
33.3 	food access program under Minnesota 
33.4 	Statutes, section 17.1017; facilitating the 
33.5 	start-up, modernization, or expansion of other 
33.6 	beginning and transitioning farms including 
33.7 	by providing loans under Minnesota Statutes, 
33.8 	section 41B.056; sustainable agriculture 
33.9 	on-farm research and demonstration; 
33.10 	development or expansion of food hubs and 
33.11 	other alternative community-based food 
33.12 	distribution systems; enhancing renewable 
33.13 	energy infrastructure and use; crop research; 
33.14 	Farm Business Management tuition assistance; 
33.15 	good agricultural practices/good handling 
33.16 	practices certification assistance; establishing 
33.17 	and supporting farmer-led water management 
33.18 	councils; and implementing farmer-led water 
33.19 	quality improvement practices. The 
33.20 	commissioner may use up to 6.5 percent of 
33.21 	this appropriation for costs incurred to 
33.22 	administer the program.
33.23 	Of the amount appropriated for the agricultural 
33.24 	growth, research, and innovation program in 
33.25 	Minnesota Statutes, section 41A.12:
33.26 	(1) $1,000,000 the first year and $1,000,000 
33.27 	the second year are for distribution in equal 
33.28 	amounts to each of the state's county fairs to 
33.29 	preserve and promote Minnesota agriculture; 
33.30 	and
33.31 	(2) $1,500,000 the first year and $1,500,000 
33.32 	the second year are for incentive payments 
33.33 	under Minnesota Statutes, sections 41A.16, 
33.34 	41A.17, and 41A.18. Notwithstanding 
33.35 	Minnesota Statutes, section 16A.28, the first 
34.1 	year appropriation is available until June 30, 
34.2 	2019, and the second year appropriation is 
34.3 	available until June 30, 2020. If this 
34.4 	appropriation exceeds the total amount for 
34.5 	which all producers are eligible in a fiscal 
34.6 	year, the balance of the appropriation is 
34.7 	available for the agricultural growth, research, 
34.8 	and innovation program.
34.9 	The commissioner may use funds appropriated 
34.10 	under this subdivision to award up to two 
34.11 	value-added agriculture grants per year of up 
34.12 	to $1,000,000 per grant for new or expanding 
34.13 	agricultural production or processing facilities 
34.14 	that provide significant economic impact to 
34.15 	the region. The commissioner may use funds 
34.16 	appropriated under this subdivision for 
34.17 	additional value-added agriculture grants for 
34.18 	awards between $1,000 and $200,000 per 
34.19 	grant.
34.20 	Appropriations in clauses (1) and (2) are 
34.21 	onetime. Any unencumbered balance does not 
34.22 	cancel at the end of the first year and is 
34.23 	available for the second year. Notwithstanding 
34.24 	Minnesota Statutes, section 16A.28, 
34.25 	appropriations encumbered under contract on 
34.26 	or before June 30, 2019, for agricultural 
34.27 	growth, research, and innovation grants are 
34.28 	available until June 30, 2021 2022.
34.29 	The base budget for the agricultural growth, 
34.30 	research, and innovation program is 
34.31 	$14,275,000 for fiscal years 2020 and 2021 
34.32 	and includes funding for incentive payments 
34.33 	under Minnesota Statutes, sections 41A.16, 
34.34 	41A.17, 41A.18, and 41A.20.
35.1 	The commissioner must develop additional 
35.2 	innovative production incentive programs to 
35.3 	be funded by the agricultural growth, research, 
35.4 	and innovation program.
35.5 	The commissioner must consult with the 
35.6 	commissioner of transportation, the 
35.7 	commissioner of administration, and local 
35.8 	units of government to identify parcels of 
35.9 	publicly owned land that are suitable for urban 
35.10 	agriculture.
35.11 	(c) $25,000 the first year and $25,000 the 
35.12 	second year are for grants to the Southern 
35.13 	Minnesota Initiative Foundation to promote 
35.14 	local foods through an annual event that raises 
35.15 	public awareness of local foods and connects 
35.16 	local food producers and processors with 
35.17 	potential buyers.

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

35.19 	Sec. 22. INDUSTRIAL HEMP; REPORT.
 35.20 	(a) The commissioner of agriculture must submit a plan to the secretary of the United 
35.21 	States Department of Agriculture and request primary regulatory authority over the 
35.22 	production of industrial hemp in this state, as provided under section 10113 of the Agriculture 
35.23 	Improvement Act of 2018.
35.24 	(b) The commissioner of agriculture, in consultation with the commissioners of public 
35.25 	safety and health, must develop a framework for regulating the possession and use of 
35.26 	tetrahydrocannabinol resulting from industrial hemp processing, including but not limited 
35.27 	to the extraction of cannabidiol or other components. No later than February 15, 2020, the 
35.28 	commissioner of agriculture must submit the proposed framework to the chairs and ranking 
35.29 	minority members of the legislative committees and divisions with jurisdiction over 
35.30 	agriculture, public safety, and health.

36.1 	Sec. 23. REPORT REQUIRED; BEGINNING FARMERS.
 36.2 	No later than February 1, 2020, the commissioner of agriculture must report 
36.3 	recommendations to the legislative committees and divisions with jurisdiction over agriculture 
36.4 	finance regarding how best to cultivate and support beginning farmers, with priority given 
36.5 	to beginning farmers who are women, veterans, persons with disabilities, American Indian 
36.6 	or Alaskan Native, and members of communities of color. When preparing this report, the 
36.7 	commissioner must consult the commissioners of labor and industry and employment and 
36.8 	economic development and consider development of a next generation farmer internship 
36.9 	program.

36.10 	Sec. 24. REPORT REQUIRED; COMMUNITY SOLAR.
 36.11 	(a) The Center for Rural Policy and Development must study the economic benefits to 
36.12 	farmers and the local farm economy of community solar gardens. The study must analyze 
36.13 	to what extent:
36.14 	(1) revenue generated by community solar garden leases has a measurable economic 
36.15 	benefit for farmers and the local farm economy;
36.16 	(2) activity related to community solar garden construction, operation, and maintenance, 
36.17 	and the associated private investment to upgrade the utility's local distribution infrastructure, 
36.18 	has a measurable economic benefit for the local farm economy;
36.19 	(3) community solar gardens provide an economic benefit, helping farmers obtain 
36.20 	financing for farm operations and decreasing the number of farm foreclosures;
36.21 	(4) community solar gardens provide economic benefits for land conservation, habitat, 
36.22 	and soil health; and
36.23 	(5) community solar gardens impact the value of adjacent properties.
36.24 	(b) No later than January 15, 2021, the Center for Rural Policy and Development must 
36.25 	submit the study and any policy recommendations to the legislative committees and divisions 
36.26 	with jurisdiction over agriculture and energy.

36.27 	ARTICLE 2
36.28 	FARMED CERVIDAE

36.29 	Section 1. Minnesota Statutes 2018, section 35.155, subdivision 4, is amended to read:
36.30 		Subd. 4.Fencing. Farmed Cervidae must be confined in a manner designed to prevent 
36.31 	escape. All perimeter fences for farmed Cervidae must be comprised of two or more rows 
37.1 	of fencing, or one high tensile fence. All perimeter fences must be at least 96 inches in 
37.2 	height and be constructed and maintained in a way that prevents the escape of farmed 
37.3 	Cervidae or entry into the premises by free-roaming Cervidae. All entry areas for farmed 
37.4 	Cervidae enclosure areas shall have two redundant gates, which must be maintained to 
37.5 	prevent the escape of animals through an open gate. If a fence deficiency allows imminent 
37.6 	entry or exit by farmed or free-roaming Cervidae, the owner must repair the deficiency 
37.7 	within a reasonable period of time as determined by the board. If a fence deficiency is 
37.8 	detected during an annual inspection under subdivision 7, the facility must be reinspected 
37.9 	not less than two times in the subsequent six months. If the facility experiences more than 
37.10 	two escape incidents in any 12-month period, the board may revoke the facility's registration 
37.11 	and order the owner to remove or destroy the animals as directed by the board.

37.12 	Sec. 2. Minnesota Statutes 2018, section 35.155, subdivision 6, is amended to read:
37.13 		Subd. 6.Identification. (a) Farmed Cervidae must be identified by means approved by 
37.14 	the Board of Animal Health. The identification must include a distinct number that has not 
37.15 	been used during the previous three years and must be visible to the naked eye during 
37.16 	daylight under normal conditions at a distance of 50 yards. Newborn animals must be 
37.17 	identified before December 31 of the year in which the animal is born within 24 hours of 
37.18 	birth or before movement from the premises, whichever occurs first. As coordinated by the 
37.19 	board, the commissioner of natural resources may destroy any animal that is not identified 
37.20 	as required under this subdivision.
37.21 	(b) The Board of Animal Health shall register farmed Cervidae. The owner must submit 
37.22 	the registration request on forms provided by the board. The forms must include sales 
37.23 	receipts or other documentation of the origin of the Cervidae. The board shall provide copies 
37.24 	of the registration information to the commissioner of natural resources upon request. The 
37.25 	owner must keep written records of the acquisition and disposition of registered farmed 
37.26 	Cervidae.

37.27 	Sec. 3. Minnesota Statutes 2018, section 35.155, subdivision 7, is amended to read:
37.28 		Subd. 7.Inspection. (a) The commissioner of agriculture and the Board of Animal 
37.29 	Health may inspect farmed Cervidae, farmed Cervidae facilities, and farmed Cervidae 
37.30 	records. For each herd, the owner or owners must, on or before January 1, pay an annual 
37.31 	inspection fee equal to $10 for each cervid in the herd as reflected in the most recent 
37.32 	inventory submitted to the Board of Animal Health, up to a maximum fee of $100. The 
37.33 	board shall coordinate inspections authorized under this paragraph.
38.1 	(b) The Board of Animal Health shall annually inspect each farmed Cervidae facility. 
38.2 	Upon request by the Board of Animal Health, the commissioner of agriculture shall assist 
38.3 	the board with annual inspections required under this paragraph. The annual inspection shall 
38.4 	include a physical inspection of all perimeter fencing around the facility and a viewing to 
38.5 	ensure all animals are tagged. The owner of a farmed Cervidae facility must present to the 
38.6 	regulatory agency conducting the annual inspection an accurate inventory of the owner's 
38.7 	farmed Cervidae for review. During an annual inspection, the owner must present individual 
38.8 	animals in a herd for a physical inventory, if required by the board.
38.9 	(c) The commissioner of natural resources may inspect farmed Cervidae, farmed Cervidae 
38.10 	facilities, and farmed Cervidae records with reasonable suspicion that laws protecting native 
38.11 	wild animals have been violated and must notify the owner in writing at the time of the 
38.12 	inspection of the reason for the inspection and must inform the owner in writing after the 
38.13 	inspection of whether (1) the cause of the inspection was unfounded; or (2) there will be an 
38.14 	ongoing investigation or continuing evaluation.
38.15 	(d) If the owner of a farmed Cervidae facility does not repair fence deficiencies within 
38.16 	the reasonable period of time determined by the board or is not otherwise in compliance 
38.17 	with this section after an inspection and review of the owner's farmed Cervidae facility, the 
38.18 	board may revoke the owner's registration and order the owner to remove or destroy the 
38.19 	animals as directed by the board.

38.20 	Sec. 4. Minnesota Statutes 2018, section 35.155, is amended by adding a subdivision to 
38.21 	read:
38.22 		Subd. 7a.Fees. For each herd, the owner must, on or before January 1, pay to the board 
38.23 	an annual inspection fee of $500 unless:
38.24 	(1) the owner sells the ability to shoot animals in the herd, in which case the annual 
38.25 	inspection fee is $1,000; or
38.26 	(2) the herd consists of more than one species, in which case the annual inspection fee 
38.27 	is $650.

38.28 	Sec. 5. Minnesota Statutes 2018, section 35.155, subdivision 9, is amended to read:
38.29 		Subd. 9.Contested case hearing. (a) A person raising farmed Cervidae that is aggrieved 
38.30 	with any decision regarding the farmed Cervidae may request a contested case hearing under 
38.31 	chapter 14.
39.1 	(b) A person requesting a contested case hearing regarding a registration revocation 
39.2 	under this section must make the request within 30 days of the revocation notice.

39.3 	Sec. 6. Minnesota Statutes 2018, section 35.155, subdivision 10, is amended to read:
39.4 		Subd. 10.Mandatory registration. (a) A person may not possess live Cervidae in 
39.5 	Minnesota unless the person is registered with the Board of Animal Health and meets all 
39.6 	the requirements for farmed Cervidae under this section. Cervidae possessed in violation 
39.7 	of this subdivision may be seized and destroyed by the commissioner of natural resources.
39.8 	(b) A person whose registration is revoked by the board is ineligible for future registration 
39.9 	under this section.
39.10 	(c) Effective July 1, 2019, to July 1, 2022, the board must not approve a new registration 
39.11 	under this subdivision for possession of white-tailed deer. This paragraph does not prohibit 
39.12 	a person holding a valid registration under this subdivision from selling or transferring their 
39.13 	herd to a family member if the person has no history of violations under this section and 
39.14 	the herd is free from chronic wasting disease.

39.15 	Sec. 7. Minnesota Statutes 2018, section 35.155, subdivision 11, is amended to read:
39.16 		Subd. 11.Mandatory surveillance for chronic wasting disease; herd depopulation. (a) 
39.17 	An inventory for each farmed Cervidae herd must be verified by an accredited veterinarian 
39.18 	and filed with the Board of Animal Health every 12 months.
39.19 	(b) Movement of farmed Cervidae from any premises to another location must be reported 
39.20 	to the Board of Animal Health within 14 days 48 hours of the movement on forms approved 
39.21 	by the Board of Animal Health. If an animal in a farmed Cervidae herd tests positive for 
39.22 	chronic wasting disease, the board must alert each person registered under subdivision 7 as 
39.23 	soon as practicable and farmed Cervidae must not be moved from any premises in this state 
39.24 	for a minimum of 72 hours. The board must examine the movement of farmed Cervidae 
39.25 	and other chronic wasting disease vectors related to farmed Cervidae both in and out of the 
39.26 	premises where the infected herd was located and take reasonable action necessary to slow 
39.27 	or prevent the spread of chronic wasting disease from the infected herd to other farmed or 
39.28 	free-roaming Cervidae.
39.29 	(c) All animals from farmed Cervidae herds that are over 16 12 months of age that die 
39.30 	or are slaughtered must be tested for chronic wasting disease.
39.31 	(d) If an animal in a farmed Cervidae herd tests positive for chronic wasting disease, 
39.32 	the entire herd must be euthanized and disposed of in a manner, and within a reasonable 
40.1 	period of time, determined by the board in consultation with the commissioner of natural 
40.2 	resources.
40.3 	(e) The owner of a herd that euthanizes and disposes of the herd as required by paragraph 
40.4 	(d) must:
40.5 	(1) maintain the fencing required under subdivision 4;
40.6 	(2) prevent any free-roaming or farmed Cervidae from accessing the former cervid pens 
40.7 	and other areas that were accessible by the farmed Cervidae; and
40.8 	(3) post the premises as directed by the board.
40.9 	The requirements under this paragraph must be met for at least 60 months from the date 
40.10 	depopulation is completed.
40.11 	(f) Before signing an agreement to sell or transfer the property, the owner of a premises 
40.12 	where chronic wasting disease is detected must disclose in writing to the buyer or transferee 
40.13 	the date of depopulation and the requirements incumbent upon the premises and the buyer 
40.14 	or transferee under paragraph (e).

40.15 	Sec. 8. REPORT REQUIRED.
 40.16 	No later than February 1, 2020, the Board of Animal Health must report to the legislative 
40.17 	committees and divisions with jurisdiction over agriculture policy and finance regarding 
40.18 	the board's progress in implementing recommendations in the Office of the Legislative 
40.19 	Auditor's April 2018 program evaluation report "Board of Animal Health's Oversight of 
40.20 	Deer and Elk Farms."

40.21 	ARTICLE 3
40.22 	GRAIN BUYERS

40.23 	Section 1. Minnesota Statutes 2018, section 223.16, subdivision 1, is amended to read:
40.24 		Subdivision 1.Applicability. For the purpose of sections 223.15 to 223.22 223.23, the 
40.25 	terms defined in this section have the meanings given them.

40.26 	Sec. 2. Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:
40.27 		Subd. 2a.Cash sale. "Cash sale" means:
40.28 	(a) a sale that is not reduced to writing as a voluntary extension of credit contract and 
40.29 	for which payment is tendered to the seller not later than the close of business on the next 
41.1 	business day after the sale, either in cash or by check, or by mailing or wiring funds to the 
41.2 	seller's account in the amount of at least 80 percent of the value of the grain at delivery; or.
41.3 	(b) a sale of a shipment of grain which is part of a multiple shipment sale, for which a 
41.4 	scale ticket clearly marked "CASH" has been received by the seller before completion of 
41.5 	the entire sale, and for which payment is tendered in cash or by check not later than ten 
41.6 	days after the sale of that shipment, except that when the entire sale is completed, payment 
41.7 	is tendered in cash or by check not later than the close of business on the next business day, 
41.8 	or within 48 hours, whichever is later.

41.9 	Sec. 3. Minnesota Statutes 2018, section 223.16, is amended by adding a subdivision to 
41.10 	read:
41.11 		Subd. 2b.Cash. "Cash" means currency or an equivalent manner of payment, including 
41.12 	but not limited to a certified check, a cashier's check, or a postal, bank, or express money 
41.13 	order in which the amount of payment is verified and secured prior to issuance.

41.14 	Sec. 4. Minnesota Statutes 2018, section 223.16, is amended by adding a subdivision to 
41.15 	read:
41.16 		Subd. 2c.Cash buyer. "Cash buyer" means a person that purchases grain only with cash 
41.17 	and in amounts of less than $100,000 total annually.

41.18 	Sec. 5. Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:
41.19 		Subd. 4.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
41.20 	form for which a standard has been established by the United States Secretary of Agriculture 
41.21 	or the Minnesota Board of Grain Standards, dry edible beans, or other agricultural crops 
41.22 	designated by the commissioner by rule.

41.23 	Sec. 6. Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:
41.24 		Subd. 3.Grain buyers and storage account; fees. (a) A grain buyer must pay to the 
41.25 	commissioner shall set the fees for inspections under sections 223.15 to 223.22 at levels 
41.26 	necessary to pay the expenses of administering and enforcing sections 223.15 to 223.22. an 
41.27 	annual license fee as follows:
41.28 	The fee for any license issued or renewed after June 30, 2005, shall be set according to 
41.29 	the following schedule:
42.1 	(a) (1) $140 plus $110 for each additional location for grain buyers whose gross annual 
42.2 	purchases are less than $100,000;
42.3 	(b) (2) $275 plus $110 for each additional location for grain buyers whose gross annual 
42.4 	purchases are at least $100,000, but not more than $750,000;
42.5 	(c) (3) $415 plus $220 for each additional location for grain buyers whose gross annual 
42.6 	purchases are more than $750,000 but not more than $1,500,000;
42.7 	(d) (4) $550 plus $220 for each additional location for grain buyers whose gross annual 
42.8 	purchases are more than $1,500,000 but not more than $3,000,000; and
42.9 	(e) (5) $700 plus $220 for each additional location for grain buyers whose gross annual 
42.10 	purchases are more than $3,000,000.
42.11 	(b) In addition to the license fee required under paragraph (a), a grain buyer must pay 
42.12 	to the commissioner an annual examination fee for each licensed location, as follows:

42.1342.14		Bushel Capacity
	Examination 
Fee
		
42.15		Examinations without a grain measure
	$
	100
		
42.16		Less than 150,001
	$
	300
		
42.17		150,001 to 250,000
	$
	425
		
42.18		250,001 to 500,000
	$
	545
		
42.19		500,001 to 750,000
	$
	700
		
42.20		750,001 to 1,000,000
	$
	865
		
42.21		1,000,001 to 1,200,000
	$
	1,040
		
42.22		1,200,001 to 1,500,000
	$
	1,205
		
42.23		1,500,001 to 2,000,000
	$
	1,380
		
42.24		More than 2,000,000
	$
	1,555
		
42.25 	The fee for any supplemental examination required by the commissioner under section 
42.26 	223.23 is $55 per hour per examiner.
42.27 	(c) A penalty amount not to exceed ten percent of the fees due may be imposed by the 
42.28 	commissioner for each month for which the fees are delinquent.
42.29 	(d) There is created the grain buyers and storage account in the agricultural fund. Money 
42.30 	collected pursuant to sections 223.15 to 223.19 223.23 shall be paid into the state treasury 
42.31 	and credited to the grain buyers and storage account and. Money in the account, including 
42.32 	interest, is appropriated to the commissioner for the administration and enforcement of 
42.33 	sections 223.15 to 223.22 223.23.

43.1 	Sec. 7. Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:
43.2 		Subd. 4.Bond. (a) Except as provided in paragraphs (c) to (e), before a grain buyer's 
43.3 	license is issued, the applicant for the license must file with the commissioner a bond in a 
43.4 	penal sum prescribed by the commissioner but not less than the following amounts:
43.5 	(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
43.6 	(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but 
43.7 	not more than $750,000;
43.8 	(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but 
43.9 	not more than $1,500,000;
43.10 	(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000 
43.11 	but not more than $3,000,000;
43.12 	(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000 
43.13 	but not more than $6,000,000;
43.14 	(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000 
43.15 	but not more than $12,000,000;
43.16 	(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000 
43.17 	but not more than $24,000,000; and
43.18 	(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
43.19 	(b) A grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is 
43.20 	not required to increase the amount of the bond to comply with this section until July 1, 
43.21 	2005. The commissioner may postpone an increase in the amount of the bond until July 1, 
43.22 	2006, if a licensee demonstrates that the increase will impose undue financial hardship on 
43.23 	the licensee, and that producers will not be harmed as a result of the postponement. The 
43.24 	commissioner may impose other restrictions on a licensee whose bond increase has been 
43.25 	postponed. The amount of the bond shall be based on the most recent gross annual grain 
43.26 	purchase report of the grain buyer.
43.27 	(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the 
43.28 	commissioner. This bond shall remain in effect for the first year of the license. Thereafter, 
43.29 	the licensee shall comply with the applicable bonding requirements contained in paragraph 
43.30 	(a), clauses (1) to (8).
43.31 	(d) In lieu of the bond required by this subdivision the applicant may deposit with the 
43.32 	commissioner of management and budget cash, a certified check, a cashier's check, a postal, 
44.1 	bank, or express money order, assignable bonds or notes of the United States, or an 
44.2 	assignment of a bank savings account or investment certificate or an irrevocable bank letter 
44.3 	of credit as defined in section 336.5-102, in the same amount as would be required for a 
44.4 	bond.
44.5 	(e) A cash buyer is exempt from the requirements under this subdivision.
44.6 	(f) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
44.7 	90 days' written notice of the bond's termination date to the licensee and the commissioner.

44.8 	Sec. 8. Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:
44.9 		Subd. 5.Cash sales; manner of payment. For a cash sale of a shipment of grain which 
44.10 	is part of a multiple shipment sale, the grain buyer shall tender payment to the seller in cash 
44.11 	or by check not later than ten days after the sale of that shipment, except that when the entire 
44.12 	sale is completed, payment shall be tendered not later than the close of business on the next 
44.13 	day, or within 48 hours, whichever is later. For other cash sales the grain buyer, before the 
44.14 	close of business on the next business day after the sale, shall tender payment to the seller 
44.15 	in cash or by check, or shall wire or mail funds to the seller's account in the amount of at 
44.16 	least 80 percent of the value of the grain at the time of delivery, or wire or mail funds to the 
44.17 	seller's account. The grain buyer shall complete final settlement after the sale of the shipment 
44.18 	as rapidly as possible through ordinary diligence.

44.19 	Sec. 9. Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:
44.20 		Subd. 6.Financial statements. (a) Except as required in paragraph (c), the commissioner 
44.21 	maymust require an annual financial statement from a licensee which has been prepared 
44.22 	in accordance with generally accepted accounting principles and which meets the following 
44.23 	requirements:
44.24 	(1) The financial statement shall include, but not be limited to the following:
44.25 	(i) a balance sheet;
44.26 	(ii) a statement of income (profit and loss);
44.27 	(iii) a statement of retained earnings;
44.28 	(iv) a statement of changes in financial position; and
44.29 	(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the 
44.30 	grain buyer.
45.1 	(2) The financial statement shall be accompanied by a compilation report of the financial 
45.2 	statement that is prepared by a grain commission firm or a management firm approved by 
45.3 	the commissioner or by an independent public accountant, in accordance with standards 
45.4 	established by the American Institute of Certified Public Accountants. Grain buyers 
45.5 	purchasing less than 150,000 bushels of grain per calendar year may submit a financial 
45.6 	statement prepared by a public accountant who is not an employee or a relative within the 
45.7 	third degree of kindred according to civil law.
45.8 	(3) (2) The financial statement shall be accompanied by a certification by the chief 
45.9 	executive officer or the chief executive officer's designee of the licensee, under penalty of 
45.10 	perjury, that the financial statement accurately reflects the financial condition of the licensee 
45.11 	for the period specified in the statement.
45.12 	(3) A grain buyer purchasing less than $2,000,000 of grain annually must have the 
45.13 	financial statement reviewed by a certified public accountant in accordance with standards 
45.14 	established by the American Institute of Certified Public Accountants, and must show that 
45.15 	the financial statements are free from material misstatements.
45.16 	(4) A grain buyer purchasing $2,000,000 or more of grain annually must have the 
45.17 	financial statement audited by a certified public accountant in accordance with standards 
45.18 	established by the American Institute of Certified Public Accountants, and must submit an 
45.19 	opinion statement from the certified public accountant.
45.20 	(b) Only one financial statement must be filed for a chain of warehouses owned or 
45.21 	operated as a single business entity, unless otherwise required by the commissioner. Any 
45.22 	grain buyer having a net worth in excess of $500,000,000 need not file the financial statement 
45.23 	required by this subdivision but must provide the commissioner with a certified net worth 
45.24 	statement. All financial statements filed with the commissioner are private or nonpublic 
45.25 	data as provided in section 13.02.
45.26 	(c) A cash buyer is exempt from the requirements of this subdivision.

45.27 	Sec. 10. Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:
45.28 		Subd. 2.Oral contracts. Any grain buyer entering into a voluntary extension of credit 
45.29 	contract orally or by phone shall give or mail to the seller a written confirmation conforming 
45.30 	to the requirements of section 223.175before the close of the next business day within 30 
45.31 	days. Written confirmation of oral contracts must meet the requirements under section 
45.32 	223.177, subdivision 3.

46.1 	Sec. 11. Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:
46.2 		Subd. 3.Contracts reduced to writing. A voluntary extension of credit contract must 
46.3 	be reduced to writing by the grain buyer and, mailed or given to the seller before the close 
46.4 	of the next business day after the contract is entered into or, in the case of an oral or phone 
46.5 	contract, after the written confirmation is received by the seller. Provided, however, that if 
46.6 	a scale ticket has been received by the seller prior to the completion of the grain shipment, 
46.7 	the contract must be reduced to writing within ten days after the sale, but not later than the 
46.8 	close of the next business day after the completion of the entire sale, and signed by both 
46.9 	buyer and seller within 30 days of the date of delivery. The form of the contract shall comply 
46.10 	with the requirements of section 223.175. A grain buyer may use an electronic version of 
46.11 	a voluntary extension of credit contract that contains the same information as a written 
46.12 	document and that conforms to the requirements of this chapter to which a seller has applied 
46.13 	an electronic signature in place of a written document. There must not at any time be an 
46.14 	electronic and paper voluntary extension of credit contract representing the same lot of 
46.15 	grain.

46.16 	Sec. 12. Minnesota Statutes 2018, section 223.19, is amended to read:
46.17 	223.19 RULES.
46.18 	The commissioner may make rules pursuant to chapter 14 to carry out the provisions of 
46.19 	sections 223.15 to 223.22 223.23.

46.20 	Sec. 13. [223.23] ANNUAL EXAMINATION REQUIRED; SUPPLEMENTAL 
46.21 	EXAMINATIONS.
46.22 	A licensed grain buyer is subject to an annual examination conducted by the commissioner 
46.23 	or the Agricultural Marketing Service of the United States Department of Agriculture. 
46.24 	Examinations must include a measurement of all grain owned and maintained by the grain 
46.25 	buyer. The commissioner may require supplemental examinations of a grain buyer as the 
46.26 	commissioner deems necessary.

46.27 	ARTICLE 4
46.28 	GRAIN WAREHOUSES

46.29 	Section 1. Minnesota Statutes 2018, section 232.21, subdivision 7, is amended to read:
46.30 		Subd. 7.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
46.31 	form for which a standard has been established by the United States Secretary of Agriculture 
47.1 	or the Minnesota Board of Grain Standards, dry edible beans, or agricultural crops designated 
47.2 	by the commissioner by rule.

47.3 	Sec. 2. Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to 
47.4 	read:
47.5 		Subd. 7a.Grain bank. "Grain bank" means a feed processing plant that receives and 
47.6 	stores grain it processes and returns to the grain's owner in amounts, at intervals, and with 
47.7 	added ingredients that are mutually agreeable to the grain's owner and the person operating 
47.8 	the plant. "Grain bank" does not include a seed cleaning plant. Grain assigned to a grain 
47.9 	bank is considered stored grain.

47.10 	Sec. 3. Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:
47.11 		Subd. 3.Fees; grain buyers and storage account. (a) There is created in the agricultural 
47.12 	fund an account known as the grain buyers and storage account. The commissioner shall 
47.13 	set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
47.14 	at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24.
47.15 	All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner 
47.16 	into the state treasury and credited to the grain buyers and storage account and. Money in 
47.17 	the account, including interest, is appropriated to the commissioner for the administration 
47.18 	and enforcement of sections 232.20 to 232.24.
47.19 	(b) All money collected pursuant to chapter 231 shall be paid by the commissioner into 
47.20 	the grain buyers and storage account and. Money in the account is appropriated to the 
47.21 	commissioner for the administration and enforcement of chapter 231.
47.22 	(c) The fees for a license to store grain are as follows:
47.23 	(a) (1) For a license to store grain, $110 for each home rule charter or statutory city or 
47.24 	town in which a public grain warehouse is operated.
47.25 	(b) (2) In addition to the license fee required under clause (1), a person with a license 
47.26 	to store grain in a public grain warehouse is subject to an examination fee for each licensed 
47.27 	location, based on the following schedule for one examination as follows:

47.2847.29		Bushel Capacity
	Examination 
Fee
		
47.30		Less than 150,001
	$
	300
		
47.31		150,001 to 250,000
	$
	425
		
47.32		250,001 to 500,000
	$
	545
		
47.33		500,001 to 750,000
	$
	700
		
48.1		750,001 to 1,000,000
	$
	865
		
48.2		1,000,001 to 1,200,000
	$
	1,040
		
48.3		1,200,001 to 1,500,000
	$
	1,205
		
48.4		1,500,001 to 2,000,000
	$
	1,380
		
48.5		More than 2,000,000
	$
	1,555
		
48.6 	(c) (3) The fee for the second examination supplemental examinations required by the 
48.7 	commissioner under section 232.24 is $55 per hour per examiner for warehouse operators 
48.8 	who choose to have it performed by the commissioner.
48.9 	(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the 
48.10 	commissioner for each month for which the fees are delinquent.

48.11 	Sec. 4. Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:
48.12 		Subd. 4.Bonding. (a) Before a license is issued, except as provided under paragraph 
48.13 	(c), the applicant for a public grain warehouse operator's license shall file with the 
48.14 	commissioner a bond in a penal sum prescribed by the commissioner based on the annual 
48.15 	average storage liability as stated on the statement of grain in storage report or on the gross 
48.16 	annual grain purchase report, whichever is greater, and applying the following amounts:
48.17 	(1) $10,000 for storages with annual average storage liability of more than $0 but not 
48.18 	more than $25,000;
48.19 	(2) $20,000 for storages with annual average storage liability of more than $25,001 but 
48.20 	not more than $50,000;
48.21 	(3) $30,000 for storages with annual average storage liability of more than $50,001 but 
48.22 	not more than $75,000;
48.23 	(4) $50,000 for storages with annual average storage liability of more than $75,001 but 
48.24 	not more than $100,000;
48.25 	(5) $75,000 for storages with annual average storage liability of more than $100,001 
48.26 	but not more than $200,000;
48.27 	(6) $125,000 for storages with annual average storage liability of more than $200,001 
48.28 	but not more than $300,000;
48.29 	(7) $175,000 for storages with annual average storage liability of more than $300,001 
48.30 	but not more than $400,000;
48.31 	(8) $225,000 for storages with annual average storage liability of more than $400,001 
48.32 	but not more than $500,000;
49.1 	(9) $275,000 for storages with annual average storage liability of more than $500,001 
49.2 	but not more than $600,000;
49.3 	(10) $325,000 for storages with annual average storage liability of more than $600,001 
49.4 	but not more than $700,000;
49.5 	(11) $375,000 for storages with annual average storage liability of more than $700,001 
49.6 	but not more than $800,000;
49.7 	(12) $425,000 for storages with annual average storage liability of more than $800,001 
49.8 	but not more than $900,000;
49.9 	(13) $475,000 for storages with annual average storage liability of more than $900,001 
49.10 	but not more than $1,000,000; and
49.11 	(14) $500,000 for storages with annual average storage liability of more than $1,000,000.
49.12 	(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
49.13 	90 days' written notice of the bond's termination date to the licensee and the commissioner.
49.14 	(c) In lieu of the bond required by this subdivision, the applicant may deposit with the 
49.15 	commissioner of management and budget an irrevocable bank letter of credit as defined in 
49.16 	section 336.5-102, in the same amount as would be required for a bond.

49.17 	Sec. 5. Minnesota Statutes 2018, section 232.24, is amended to read:
49.18 	232.24 SCHEDULE OF INSPECTION, FINANCIAL REPORTS.
49.19 		Subdivision 1.Schedule of examination. A licensee under sections 232.20 to 232.24
49.20 	is subject to two examinations an examination annually conducted by the commissioner or 
49.21 	the Agricultural Marketing Service of the United States Department of Agriculture. The 
49.22 	commissioner may, by rule, authorize one examination to be conducted by a qualified 
49.23 	nongovernmental unit require supplemental examinations of a licensee as the commissioner 
49.24 	deems necessary.
49.25 		Subd. 2.Financial reports. A licensee under sections 232.20 to 232.24 upon request
49.26 	must provide to the commissioner a copy of the financial reports of an audit conducted by 
49.27 	a qualified nongovernmental unit containing information the commissioner requires report 
49.28 	that satisfies the requirements under section 223.17, subdivision 6, paragraph (a), clause 
49.29 	(1).

50.1 	ARTICLE 5
50.2 	HOUSING FINANCE AGENCY APPROPRIATIONS

50.3	Section 1. APPROPRIATIONS.
 	
50.4 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
50.5 	for the purposes specified in this article. The appropriations are from the general fund, or 
50.6 	another named fund, and are available for the fiscal years indicated for each purpose. The 
50.7 	figures "2020" and "2021" used in this article mean that the appropriations listed under them 
50.8 	are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The 
50.9 	first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is 
50.10 	fiscal years 2020 and 2021.

50.11				APPROPRIATIONS
	
50.12				Available for the Year
	
50.13				Ending June 30
	
50.14					2020
		2021

50.15	Sec. 2. HOUSING FINANCE AGENCY

50.16	Subdivision 1.Total Appropriation
 	$
	69,298,000
	$
	62,298,000
	
50.17 	(a) The amounts that may be spent for each 
50.18 	purpose are specified in the following 
50.19 	subdivisions.
50.20 	(b) Unless otherwise specified, this 
50.21 	appropriation is for transfer to the housing 
50.22 	development fund for the programs specified 
50.23 	in this section. Except as otherwise indicated, 
50.24 	this transfer is part of the agency's permanent 
50.25 	budget base.

50.26	Subd. 2.Challenge Program
 		14,925,000
		14,925,000
	
50.27 	(a) This appropriation is for the economic 
50.28 	development and housing challenge program 
50.29 	under Minnesota Statutes, section 462A.33.
50.30 	(b) The base for this program in fiscal year 
50.31 	2022 and beyond is $14,425,000.

50.32	Subd. 3.Local Housing Trust Fund Grants
 		7,000,000
		-0-
	
51.1 	(a) This appropriation is for grants to housing 
51.2 	trust funds established under Minnesota 
51.3 	Statutes, section 462C.16, to incentivize local 
51.4 	funding. This is a onetime appropriation.
51.5 	(b) A grantee is eligible to receive a grant 
51.6 	amount equal to 100 percent of the public 
51.7 	revenue committed to the local housing trust 
51.8 	fund from any source other than the state or 
51.9 	federal government, up to $150,000, and in 
51.10 	addition, an amount equal to 50 percent of the 
51.11 	public revenue committed to the local housing 
51.12 	trust fund from any source other than the state 
51.13 	or federal government that is more than 
51.14 	$150,000 but not more than $300,000.
51.15 	(c) $100,000 of this appropriation is for 
51.16 	technical assistance grants to local and 
51.17 	regional housing trust funds. A housing trust 
51.18 	fund may apply for a technical assistance grant 
51.19 	at the time and in the manner and form 
51.20 	required by the agency. The agency shall make 
51.21 	grants on a first-come, first-served basis. A 
51.22 	technical assistance grant must not exceed 
51.23 	$5,000.
51.24 	(d) A grantee must use grant funds within 
51.25 	eight years of receipt for purposes (1) 
51.26 	authorized under Minnesota Statutes, section 
51.27 	462C.16, subdivision 3, and (2) benefiting 
51.28 	households with incomes at or below 115 
51.29 	percent of the state median income. A grantee 
51.30 	must return any grant funds not used for these 
51.31 	purposes within eight years of receipt to the 
51.32 	commissioner of the Housing Finance Agency 
51.33 	for deposit into the housing development fund.
51.34 	(e) Before the agency makes any grants with 
51.35 	money from this appropriation, the 
52.1 	commissioner shall consult with interested 
52.2 	stakeholders when developing the guidelines 
52.3 	and procedures for the grant program.

52.4	Subd. 4.Workforce Housing Development
 		2,000,000
		2,000,000
	
52.5 	This appropriation is for the workforce 
52.6 	housing development program under 
52.7 	Minnesota Statutes, section 462A.39. If 
52.8 	requested by the applicant and approved by 
52.9 	the agency, funded properties may include a 
52.10 	portion of income and rent restricted units.

52.11	Subd. 5.Housing Trust Fund
 		11,646,000
		11,646,000
	
52.12 	This appropriation is for deposit in the housing 
52.13 	trust fund account created under Minnesota 
52.14 	Statutes, section 462A.201, and may be used 
52.15 	for the purposes provided in that section.

52.16	Subd. 6.Homework Starts with Home
 		3,000,000
		3,000,000
	
52.17 	This appropriation is for the homework starts 
52.18 	with home program under Minnesota Statutes, 
52.19 	sections 462A.201, subdivision 2, paragraph 
52.20 	(a), clause (4), and 462A.204, subdivision 8, 
52.21 	to provide assistance to homeless or highly 
52.22 	mobile families with children eligible for 
52.23 	enrollment in a prekindergarten through grade 
52.24 	12 academic program.

52.25	Subd. 7.Rental Assistance for Mentally Ill
 		5,088,000
		5,088,000
	
52.26 	This appropriation is for the rental housing 
52.27 	assistance program for persons with a mental 
52.28 	illness or families with an adult member with 
52.29 	a mental illness under Minnesota Statutes, 
52.30 	section 462A.2097. Among comparable 
52.31 	proposals, the agency shall prioritize those 
52.32 	proposals that target, in part, eligible persons 
52.33 	who desire to move to more integrated, 
52.34 	community-based settings.

53.1	Subd. 8.Family Homeless Prevention
 		9,519,000
		9,519,000
	
53.2 	This appropriation is for the family homeless 
53.3 	prevention and assistance programs under 
53.4 	Minnesota Statutes, section 462A.204.

53.5	Subd. 9.Workforce Homeownership Program
 		1,000,000
		1,000,000
	
53.6 	(a) This appropriation is for the workforce 
53.7 	homeownership program under Minnesota 
53.8 	Statutes, section 462A.38.
53.9 	(b) The base for this program in fiscal year 
53.10 	2022 and beyond is $500,000.

53.11	Subd. 10.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
53.12 	(a) This appropriation is for the affordable 
53.13 	rental investment fund program under 
53.14 	Minnesota Statutes, section 462A.21, 
53.15 	subdivision 8b, to finance the acquisition, 
53.16 	rehabilitation, and debt restructuring of 
53.17 	federally assisted rental property and for 
53.18 	making equity take-out loans under Minnesota 
53.19 	Statutes, section 462A.05, subdivision 39.
53.20 	(b) The owner of federally assisted rental 
53.21 	property must agree to participate in the 
53.22 	applicable federally assisted housing program 
53.23 	and to extend any existing low-income 
53.24 	affordability restrictions on the housing for 
53.25 	the maximum term permitted. The owner must 
53.26 	also enter into an agreement that gives local 
53.27 	units of government, housing and 
53.28 	redevelopment authorities, and nonprofit 
53.29 	housing organizations the right of first refusal 
53.30 	if the rental property is offered for sale. 
53.31 	Priority must be given among comparable 
53.32 	federally assisted rental properties to 
53.33 	properties with the longest remaining term 
53.34 	under an agreement for federal assistance. 
54.1 	Priority must also be given among comparable 
54.2 	rental housing developments to developments 
54.3 	that are or will be owned by local government 
54.4 	units, a housing and redevelopment authority, 
54.5 	or a nonprofit housing organization.
54.6 	(c) The appropriation also may be used to 
54.7 	finance the acquisition, rehabilitation, and debt 
54.8 	restructuring of existing supportive housing 
54.9 	properties and naturally occurring affordable 
54.10 	housing as determined by the commissioner. 
54.11 	For purposes of this paragraph, "supportive 
54.12 	housing" means affordable rental housing with 
54.13 	links to services necessary for individuals, 
54.14 	youth, and families with children to maintain 
54.15 	housing stability.

54.16	Subd. 11.Housing Rehabilitation
 		6,515,000
		6,515,000
	
54.17 	(a) This appropriation is for the housing 
54.18 	rehabilitation program under Minnesota 
54.19 	Statutes, section 462A.05, subdivision 14. Of 
54.20 	this amount, $2,772,000 each year is for the 
54.21 	rehabilitation of owner-occupied housing and 
54.22 	$3,743,000 each year is for the rehabilitation 
54.23 	of eligible rental housing. In administering a 
54.24 	rehabilitation program for rental housing, the 
54.25 	agency may apply the processes and priorities 
54.26 	adopted for administration of the economic 
54.27 	development and housing challenge program 
54.28 	under Minnesota Statutes, section 462A.33, 
54.29 	and may provide grants or forgivable loans if 
54.30 	approved by the agency.
54.31 	(b) Notwithstanding any law to the contrary, 
54.32 	grants or loans under this subdivision may be 
54.33 	made without rent or income restrictions of 
54.34 	owners or tenants. To the extent practicable, 
55.1 	grants or loans must be made available 
55.2 	statewide.

55.3	Subd. 12.Home Ownership Assistance Fund
 		885,000
		885,000
	
55.4 	This appropriation is for the home ownership 
55.5 	assistance program under Minnesota Statutes, 
55.6 	section 462A.21, subdivision 8. The agency 
55.7 	shall continue to strengthen its efforts to 
55.8 	address the disparity gap in the 
55.9 	homeownership rate between white 
55.10 	households and indigenous American Indians 
55.11 	and communities of color. To better 
55.12 	understand and address the disparity gap, the 
55.13 	agency is required to collect, on a voluntary 
55.14 	basis, demographic information regarding 
55.15 	race, color, national origin, and sex of 
55.16 	applicants for agency programs intended to 
55.17 	benefit homeowners and homebuyers.

55.18	Subd. 13.Lead Safe Homes Grant Program
 		1,000,000
		1,000,000
	
55.19 	(a) This appropriation is for grants under the 
55.20 	lead safe homes grant program under 
55.21 	Minnesota Statutes, section 462A.2095.
55.22 	(b) At least one grant must be to a nonprofit 
55.23 	organization or political subdivision serving 
55.24 	an area in the seven-county metropolitan area, 
55.25 	as defined in Minnesota Statutes, section 
55.26 	473.121, and at least one grant must be to a 
55.27 	nonprofit organization or political subdivision 
55.28 	serving an area outside the seven-county 
55.29 	metropolitan area.
55.30 	(c) The base for this program in fiscal year 
55.31 	2022 and beyond is $500,000.

55.32
55.33	Subd. 14.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
56.1 	This appropriation is for the homeownership 
56.2 	education, counseling, and training program 
56.3 	under Minnesota Statutes, section 462A.209.

56.4	Subd. 15.Capacity-Building Grants
 		745,000
		745,000
	
56.5 	This appropriation is for nonprofit 
56.6 	capacity-building grants under Minnesota 
56.7 	Statutes, section 462A.21, subdivision 3b. Of 
56.8 	this amount, $125,000 each year is for support 
56.9 	of the Homeless Management Information 
56.10 	System (HMIS). Of this amount, $300,000 
56.11 	each year is for a statewide tenant hotline that 
56.12 	provides free and confidential legal advice for 
56.13 	all Minnesota renters.

56.14	Subd. 16.Build Wealth MN
 		500,000
		500,000
	
56.15 	This appropriation is for a grant to Build 
56.16 	Wealth Minnesota to provide a family 
56.17 	stabilization plan program including program 
56.18 	outreach, financial literacy education, and 
56.19 	budget and debt counseling.

56.20	Subd. 17.Homeownership Capacity
 		400,000
		400,000
	
56.21 	This appropriation is for competitive grants 
56.22 	to nonprofit housing organizations, housing 
56.23 	and redevelopment authorities, or other 
56.24 	political subdivisions to provide intensive 
56.25 	financial education and coaching services to 
56.26 	individuals or families who have the goal of 
56.27 	homeownership. Financial education and 
56.28 	coaching services include but are not limited 
56.29 	to asset building, development of spending 
56.30 	plans, credit report education, repair and 
56.31 	rebuilding, consumer protection training, and 
56.32 	debt reduction. Priority must be given to 
56.33 	organizations that have experience serving 
56.34 	underserved populations.

57.1 	Sec. 3. EFFECTIVE DATE.
 57.2 	This article is effective July 1, 2019.

57.3 	ARTICLE 6
57.4 	HOUSING PROGRAMS

57.5 	Section 1. [462A.2095] LEAD SAFE HOMES GRANT PROGRAM.
57.6 		Subdivision 1.Establishment. The Housing Finance Agency shall establish a lead safe 
57.7 	homes grant program to increase lead testing in residential rental housing and make 
57.8 	residential rental housing units lead safe. The agency shall give priority to grantees that 
57.9 	target landlords and tenants in areas with a high concentration of lead poisoning in children 
57.10 	based on information provided by the commissioner of health.
57.11 		Subd. 2.Eligibility. (a) An eligible grantee must be a nonprofit organization or political 
57.12 	subdivision capable of administering funding and services to a defined geographic area.
57.13 	(b) Up to ten percent of a grant award may be used to administer the grant and provide 
57.14 	education and outreach about lead health hazards.
57.15 		Subd. 3.Inspection; lead hazard reduction. (a) A grantee must provide lead risk 
57.16 	assessments completed by a lead inspector or a lead risk assessor licensed by the 
57.17 	commissioner of health pursuant to section 144.9505 for properties built before 1978 to 
57.18 	determine the presence of lead hazards and to provide interim controls to reduce lead health 
57.19 	hazards. The grantee must conduct testing and provide lead hazard reduction to:
57.20 	(1) landlords of residential buildings with 11 units or less where the tenants have incomes 
57.21 	that do not exceed 60 percent of area median income;
57.22 	(2) landlords of residential buildings with 12 units or more where at least 50 percent of 
57.23 	the tenants have incomes that are below 60 percent of the median income; and
57.24 	(3) tenants with an income that does not exceed 60 percent of area median income.
57.25 	(b) A landlord or tenant must first access other available state and federal funding related 
57.26 	to lead testing and lead hazard reduction for which they are eligible.
57.27 		Subd. 4.Short title.  This section shall be known as the "Dustin Luke Shields Act."

57.28 	EFFECTIVE DATE. This section is effective July 1, 2019.