1.1 	A bill for an act
1.2 	relating to agriculture; establishing grant programs; classifying certain data; 
1.3 	dedicating certain revenues; making policy and technical changes to agricultural 
1.4 	and animal health provisions; requiring reports; appropriating money;amending 
1.5 	Minnesota Statutes 2020, sections 13.643, by adding a subdivision; 17.041, 
1.6 	subdivision 1; 17.117, subdivisions 9, 9a, 10, 11, 11a; 17.118, subdivisions 1, 3, 
1.7 	4; 18B.01, by adding subdivisions; 18B.051; 18B.07, by adding a subdivision; 
1.8 	18C.005, by adding subdivisions; 18C.201, by adding a subdivision; 21.81, by 
1.9 	adding a subdivision; 21.86, subdivision 2; 28A.08, by adding a subdivision; 
1.10 	28A.09, by adding a subdivision; 28A.10; 28A.21, subdivision 2; 35.155, 
1.11 	subdivision 10; 41A.16, subdivisions 1, 2; 41A.17, subdivisions 1, 2; 41A.18, 
1.12 	subdivisions 1, 2; 41B.047, subdivision 3; 223.17, subdivisions 4, 6; Minnesota 
1.13 	Statutes 2021 Supplement, sections 41A.19; 41A.21, subdivisions 2, 6; Laws 2021, 
1.14 	First Special Session chapter 3, article 1, sections 2; 4; proposing coding for new 
1.15 	law in Minnesota Statutes, chapters 17; 21.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	APPROPRIATIONS

1.19 	Section 1. Laws 2021, First Special Session chapter 3, article 1, section 2, is amended to 
1.20 	read:

1.21	Sec. 2. DEPARTMENT OF AGRICULTURE

1.231.22
	Subdivision 1.Total Appropriation
 	$
	59,303,000
63,803,000
	$
	59,410,000
107,910,000

1.24	Appropriations by Fund
	
1.25		2022
	2023
	
1.271.26
	General
	58,904,000
63,404,000
	59,011,000
107,511,000
	
1.28	Remediation
	399,000
	399,000
	
2.1 	The amounts that may be spent for each 
2.2 	purpose are specified in the following 
2.3 	subdivisions.

2.4	Subd. 2.Protection Services

2.5	Appropriations by Fund
	
2.6		2022
	2023
	
2.82.7
	General
	19,384,000
	19,610,000
43,231,000
	
2.9	Remediation
	399,000
	399,000
	
2.10 	(a) $399,000 the first year and $399,000 the 
2.11 	second year are from the remediation fund for 
2.12 	administrative funding for the voluntary 
2.13 	cleanup program.
2.14 	(b) $175,000 the first year and $175,000 the 
2.15 	second year are for compensation for 
2.16 	destroyed or crippled livestock under 
2.17 	Minnesota Statutes, section 3.737. The first 
2.18 	year appropriation may be spent to compensate 
2.19 	for livestock that were destroyed or crippled 
2.20 	during fiscal year 2021. If the amount in the 
2.21 	first year is insufficient, the amount in the 
2.22 	second year is available in the first year. The 
2.23 	commissioner may use up to $5,000 each year 
2.24 	to reimburse expenses incurred by university 
2.25 	extension educators to provide fair market 
2.26 	values of destroyed or crippled livestock. If 
2.27 	the commissioner receives federal dollars to 
2.28 	pay claims for destroyed or crippled livestock, 
2.29 	an equivalent amount of this appropriation 
2.30 	may be used to reimburse nonlethal prevention 
2.31 	methods performed by federal wildlife services 
2.32 	staff.
2.33 	(c) $155,000 the first year and $155,000 the 
2.34 	second year are for compensation for crop 
2.35 	damage under Minnesota Statutes, section 
3.1 	3.7371. If the amount in the first year is 
3.2 	insufficient, the amount in the second year is 
3.3 	available in the first year. The commissioner 
3.4 	may use up to $10,000 of the appropriation 
3.5 	each year to reimburse expenses incurred by 
3.6 	the commissioner or the commissioner's 
3.7 	approved agent to investigate and resolve 
3.8 	claims, as well as for costs associated with 
3.9 	training for approved agents. The 
3.10 	commissioner may use up to $20,000 of the 
3.11 	appropriation each year to make grants to 
3.12 	producers for measures to protect stored crops 
3.13 	from elk damage.
3.14 	If the commissioner determines that claims 
3.15 	made under Minnesota Statutes, section 3.737
3.16 	or 3.7371, are unusually high, amounts 
3.17 	appropriated for either program may be 
3.18 	transferred to the appropriation for the other 
3.19 	program.
3.20 	(d) $225,000 the first year and $225,000 the 
3.21 	second year are for additional funding for the 
3.22 	noxious weed and invasive plant program.
3.23 	(e) $2,000,000 the second year is for a transfer 
3.24 	to the noxious weed and invasive plant species 
3.25 	assistance account established under 
3.26 	Minnesota Statutes, section 18.89, for grants 
3.27 	to local units of government and Tribal 
3.28 	Nations for noxious weed detection, control, 
3.29 	and management. Of this amount, the 
3.30 	commissioner must award a onetime grant of 
3.31 	$10,000 to each county to assist county 
3.32 	agricultural inspectors in the implementation 
3.33 	and enforcement of the Minnesota Noxious 
3.34 	Weed Law and to educate county residents 
3.35 	regarding agricultural topics, including but 
4.1 	not limited to noxious weeds. This is a onetime 
4.2 	appropriation.
4.3 	(e) (f) $50,000 the first year is for additional 
4.4 	funding for the industrial hemp program for 
4.5 	IT development. This is a onetime 
4.6 	appropriation and is available until June 30, 
4.7 	2023.
4.8 	(f) (g) $110,000 the first year and $110,000 
4.9 	the second year are for additional meat and 
4.10 	poultry inspection services. The commissioner 
4.11 	is encouraged to seek inspection waivers, 
4.12 	matching federal dollars, and offer more online 
4.13 	inspections for the purposes under this 
4.14 	paragraph.
4.15 	(g) (h) $825,000 the first year and $825,000 
4.16 	the second year are to replace capital 
4.17 	equipment in the Department of Agriculture's 
4.18 	analytical laboratory.
4.19 	(h) (i) $274,000 the first year and $550,000 
4.20 	the second year are to maintain the current 
4.21 	level of service delivery.
4.22 	(j) $100,000 the second year is to support 
4.23 	laboratory testing for the Minnesota meat and 
4.24 	poultry inspection program. The base for this 
4.25 	appropriation is $50,000 in fiscal year 2024 
4.26 	and thereafter.
4.27 	(k) $6,500,000 the second year is for grants 
4.28 	to the Board of Regents of the University of 
4.29 	Minnesota to fund the Forever Green Initiative 
4.30 	and protect the state's natural resources while 
4.31 	increasing the efficiency, profitability, and 
4.32 	productivity of Minnesota farmers by 
4.33 	incorporating perennial and winter-annual 
4.34 	crops into existing agricultural practices. Of 
5.1 	this amount, up to $5,000,000 is for equipment 
5.2 	and physical infrastructure to support breeding 
5.3 	and agronomic activities necessary to develop 
5.4 	perennial and winter-annual crops. This 
5.5 	appropriation is available until June 30, 2028. 
5.6 	The base for this appropriation is $1,500,000 
5.7 	in fiscal year 2024 and thereafter.
5.8 	(l) $9,000,000 the second year is for grants to 
5.9 	organizations in Minnesota to develop 
5.10 	enterprises, supply chains, and markets for 
5.11 	continuous living cover crops and cropping 
5.12 	systems in the early stage of commercial 
5.13 	development, Kernza perennial grain, winter 
5.14 	camelina, hybrid hazelnuts, and elderberry. A 
5.15 	grant award must not exceed $750,000 per 
5.16 	organization. A multiyear project may receive 
5.17 	grant dollars for up to three years. In 
5.18 	consultation with interested stakeholders, the 
5.19 	commissioner must develop a process to award 
5.20 	grants. At the time of application, the 
5.21 	commissioner must notify applicants of any 
5.22 	grant recipient requirements. The 
5.23 	commissioner must appoint a technical review 
5.24 	panel to review and rank eligible applicants 
5.25 	and give preference to applicants that are 
5.26 	well-positioned to expand the profitable 
5.27 	commercialization of the crops identified in 
5.28 	this paragraph. The technical review panel 
5.29 	must include at least one representative from 
5.30 	the University of Minnesota's Forever Green 
5.31 	Initiative and one representative from the 
5.32 	Agricultural Utilization Research Institute. 
5.33 	The commissioner must consider the 
5.34 	recommendations of the technical review panel 
5.35 	when selecting grant recipients. Beginning 
5.36 	February 1, 2023, and annually thereafter until 
6.1 	February 1, 2029, the commissioner must 
6.2 	submit a report on grant utilization to the 
6.3 	legislative committees with jurisdiction over 
6.4 	agriculture finance and policy. This is a 
6.5 	onetime appropriation and is available until 
6.6 	June 30, 2028.
6.7 	(m) $6,725,000 the second year is for the soil 
6.8 	health financial assistance program. This is a 
6.9 	onetime appropriation and is available until 
6.10 	June 30, 2027.
6.11 	(n) $2,000,000 the second year is for transfer 
6.12 	to the pollinator research account established 
6.13 	under Minnesota Statutes, section 18B.051. 
6.14 	This is a onetime appropriation.
6.15 	(o) $371,000 the second year is to regulate 
6.16 	plastic-coated fertilizer and plastic-coated 
6.17 	pesticide. The base for this appropriation is 
6.18 	$358,000 in fiscal year 2024 and thereafter.
6.19 	(p) $100,000 is to develop and promote 
6.20 	consumer guidance regarding seed treated with 
6.21 	neonicotinoid pesticide under Minnesota 
6.22 	Statutes, section 21.915. This is a onetime 
6.23 	appropriation.
6.24 	(q) $425,000 is to analyze, develop, and plan 
6.25 	a streamlined food safety regulatory program 
6.26 	in Minnesota. This is a onetime appropriation 
6.27 	and is available until June 30, 2025.

6.28
6.29	Subd. 3.Agricultural Marketing and 
Development
 		4,200,000
		4,205,000
5,465,000
	
6.30 	(a) $186,000 the first year and $186,000 the 
6.31 	second year are for transfer to the Minnesota 
6.32 	grown account and may be used as grants for 
6.33 	Minnesota grown promotion under Minnesota 
6.34 	Statutes, section 17.102. Grants may be made 
7.1 	for one year. Notwithstanding Minnesota 
7.2 	Statutes, section 16A.28, the appropriations 
7.3 	encumbered under contract on or before June 
7.4 	30, 2023, for Minnesota grown grants in this 
7.5 	paragraph are available until June 30, 2025.
7.6 	(b) $50,000 the first year is to expand 
7.7 	international marketing opportunities for 
7.8 	farmers and value-added processors, including 
7.9 	in-market representation in Taiwan. This is a 
7.10 	onetime appropriation and is available until 
7.11 	June 30, 2023.
7.12 	(c) $634,000 the first year and $634,000 the 
7.13 	second year are for continuation of the dairy 
7.14 	development and profitability enhancement 
7.15 	programs including dairy profitability teams 
7.16 	and dairy business planning grants under 
7.17 	Minnesota Statutes, section 32D.30.
7.18 	(d) $50,000 the first year and $50,000 the 
7.19 	second year are for additional funding for 
7.20 	mental health outreach and support to farmers 
7.21 	and others in the agricultural community, 
7.22 	including a 24-hour hotline, stigma reduction, 
7.23 	and educational offerings. These are onetime 
7.24 	appropriations.
7.25 	(e) The commissioner may use funds 
7.26 	appropriated in this subdivision for annual 
7.27 	cost-share payments to resident farmers or 
7.28 	entities that sell, process, or package 
7.29 	agricultural products in this state for the costs 
7.30 	of organic certification. The commissioner 
7.31 	may allocate these funds for assistance to 
7.32 	persons transitioning from conventional to 
7.33 	organic agriculture.
8.1 	(f) $100,000 the first year and $100,000 the 
8.2 	second year are for the farm safety grant and 
8.3 	outreach programs under Minnesota Statutes, 
8.4 	section 17.1195. Notwithstanding Minnesota 
8.5 	Statutes, section 16A.28, any unencumbered 
8.6 	balance does not cancel at the end of the first 
8.7 	year and is available in the second year. These 
8.8 	are onetime appropriations.
8.9 	(g) $54,000 the first year and $109,000 the 
8.10 	second year are to maintain the current level 
8.11 	of service delivery.
8.12 	(h) $1,250,000 the second year is to create and 
8.13 	implement a program to support farmers 
8.14 	markets and direct marketing producers. Of 
8.15 	this amount, $1,000,000 is for a grant to the 
8.16 	Minnesota Farmers' Market Association for 
8.17 	awards to farmers' markets not exceeding 
8.18 	$5,000 per market location for equipment and 
8.19 	infrastructure. The Minnesota Farmers' Market 
8.20 	Association may use up to 6.5 percent of the 
8.21 	grant awarded under this paragraph for 
8.22 	administrative expenses. This is a onetime 
8.23 	appropriation and is available until June 30, 
8.24 	2024.
8.25 	(i) $10,000 the second year is to provide an 
8.26 	interim report on the Statewide Cooperative 
8.27 	Partnership for Local and Regional Markets, 
8.28 	including recommendations for strengthening 
8.29 	local and regional food systems. No later than 
8.30 	February 1, 2023, the commissioner must 
8.31 	submit the report to the legislative committees 
8.32 	with jurisdiction over agriculture policy and 
8.33 	finance. This is a onetime appropriation.

9.1
9.2	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		25,343,000
		25,357,000
33,513,000
	
9.3 	(a) $9,300,000 the first year and $9,300,000 
9.4 	the second year are for transfer to the 
9.5 	agriculture research, education, extension, and 
9.6 	technology transfer account under Minnesota 
9.7 	Statutes, section 41A.14, subdivision 3. Of 
9.8 	these amounts: at least $600,000 the first year 
9.9 	and $600,000 the second year are for the 
9.10 	Minnesota Agricultural Experiment Station's 
9.11 	agriculture rapid response fund under 
9.12 	Minnesota Statutes, section 41A.14, 
9.13 	subdivision 1, clause (2); $2,000,000 the first 
9.14 	year and $2,000,000 the second year are for 
9.15 	grants to the Minnesota Agriculture Education 
9.16 	Leadership Council to enhance agricultural 
9.17 	education with priority given to Farm Business 
9.18 	Management challenge grants; $350,000 the 
9.19 	first year and $350,000 the second year are 
9.20 	for potato breeding; and $450,000 the first 
9.21 	year and $450,000 the second year are for the 
9.22 	cultivated wild rice breeding project at the 
9.23 	North Central Research and Outreach Center 
9.24 	to include a tenure track/research associate 
9.25 	plant breeder. The commissioner shall transfer 
9.26 	the remaining funds in this appropriation each 
9.27 	year to the Board of Regents of the University 
9.28 	of Minnesota for purposes of Minnesota 
9.29 	Statutes, section 41A.14. Of the amount 
9.30 	transferred to the Board of Regents, up to 
9.31 	$1,000,000 each year is for research on avian 
9.32 	influenza, salmonella, and other turkey-related 
9.33 	diseases. By January 15, 2023, entities 
9.34 	receiving grants for potato breeding and wild 
9.35 	rice breeding are requested to report to the 
9.36 	chairs and ranking minority members of the 
10.1 	legislative committees with jurisdiction over 
10.2 	agriculture and higher education regarding the 
10.3 	use of the grant money and to provide an 
10.4 	update on the status of research and related 
10.5 	accomplishments.
10.6 	To the extent practicable, money expended 
10.7 	under Minnesota Statutes, section 41A.14, 
10.8 	subdivision 1, clauses (1) and (2), must 
10.9 	supplement and not supplant existing sources 
10.10 	and levels of funding. The commissioner may 
10.11 	use up to one percent of this appropriation for 
10.12 	costs incurred to administer the program.
10.13 	(b) $16,028,000 the first year and $16,028,000
10.14 	$24,184,000 the second year are for the 
10.15 	agricultural growth, research, and innovation 
10.16 	program under Minnesota Statutes, section 
10.17 	41A.12. Except as provided below, the 
10.18 	commissioner may allocate the appropriation 
10.19 	each year among the following areas: 
10.20 	facilitating the start-up, modernization, 
10.21 	improvement, or expansion of livestock 
10.22 	operations including beginning and 
10.23 	transitioning livestock operations with 
10.24 	preference given to robotic dairy-milking 
10.25 	equipment; providing funding not to exceed 
10.26 	$800,000 each the first year to develop and 
10.27 	enhance farm-to-school markets for Minnesota 
10.28 	farmers by providing more fruits, vegetables, 
10.29 	meat, grain, and dairy for Minnesota children 
10.30 	in school and child care settings including, at 
10.31 	the commissioner's discretion, reimbursing 
10.32 	schools for purchases from local farmers; 
10.33 	assisting value-added agricultural businesses 
10.34 	to begin or expand, to access new markets, or 
10.35 	to diversify, including plant-based foods and
11.1 	aquaponics systems; providing funding not to 
11.2 	exceed $600,000 each the first year for urban 
11.3 	youth agricultural education or urban 
11.4 	agriculture community development of which 
11.5 	$10,000 each year is for transfer to the 
11.6 	emerging farmer account under Minnesota 
11.7 	Statutes, section 17.055, subdivision 1a; 
11.8 	providing funding not to exceed $450,000 
11.9 	each the first year for the good food access 
11.10 	program under Minnesota Statutes, section 
11.11 	17.1017; facilitating the start-up, 
11.12 	modernization, or expansion of other 
11.13 	beginning and transitioning farms including 
11.14 	by providing loans under Minnesota Statutes, 
11.15 	section 41B.056; sustainable agriculture 
11.16 	on-farm research and demonstration; 
11.17 	development or expansion of food hubs and 
11.18 	other alternative community-based food 
11.19 	distribution systems; enhancing renewable 
11.20 	energy infrastructure and use; crop research; 
11.21 	Farm Business Management tuition assistance; 
11.22 	and good agricultural practices and good 
11.23 	handling practices certification assistance. The 
11.24 	commissioner may use up to 6.5 percent of 
11.25 	this appropriation for costs incurred to 
11.26 	administer the program.
11.27 	Of the amount appropriated for the agricultural 
11.28 	growth, research, and innovation program 
11.29 	under Minnesota Statutes, section 41A.12:
11.30 	(1) $1,000,000 the first year and $1,000,000 
11.31 	the second year are for distribution in equal 
11.32 	amounts to each of the state's county fairs to 
11.33 	preserve and promote Minnesota agriculture;
11.34 	(2) $4,500,000 the first year and $4,500,000
11.35 	$7,500,000 the second year are for incentive 
12.1 	payments and paying claims not otherwise 
12.2 	paid under Minnesota Statutes, sections 
12.3 	41A.16, 41A.17, 41A.18, and 41A.20. 
12.4 	Notwithstanding Minnesota Statutes, section 
12.5 	16A.28, the first year appropriation is 
12.6 	available until June 30, 2023, and the second 
12.7 	year appropriation is available until June 30, 
12.8 	2024. If this appropriation exceeds the total 
12.9 	amount for which all producers are eligible in 
12.10 	a fiscal year, the balance of the appropriation 
12.11 	is available for other purposes under this 
12.12 	paragraph. The base appropriation under this 
12.13 	clause is $6,500,000 in fiscal year 2024 and 
12.14 	thereafter;
12.15 	(3) $3,000,000 the first year and $3,000,000 
12.16 	the second year are for grants that enable retail 
12.17 	petroleum dispensers, fuel storage tanks, and 
12.18 	other equipment to dispense biofuels to the 
12.19 	public in accordance with the biofuel 
12.20 	replacement goals established under 
12.21 	Minnesota Statutes, section 239.7911. A retail 
12.22 	petroleum dispenser selling petroleum for use 
12.23 	in spark ignition engines for vehicle model 
12.24 	years after 2000 is eligible for grant money 
12.25 	under this clause if the retail petroleum 
12.26 	dispenser has no more than 10 retail petroleum 
12.27 	dispensing sites and each site is located in 
12.28 	Minnesota. The grant money must be used to 
12.29 	replace or upgrade equipment that does not 
12.30 	have the ability to be certified for E25. A grant 
12.31 	award must not exceed 65 percent of the cost 
12.32 	of the appropriate technology. A grant award 
12.33 	must not exceed $200,000 per station. The 
12.34 	commissioner must cooperate with biofuel 
12.35 	stakeholders in the implementation of the grant 
12.36 	program. The commissioner, in cooperation 
13.1 	with any economic or community development 
13.2 	financial institution and any other entity with 
13.3 	which it contracts, must submit a report on the 
13.4 	biofuels infrastructure financial assistance 
13.5 	program by January 15 of each year to the 
13.6 	chairs and ranking minority members of the 
13.7 	legislative committees and divisions with 
13.8 	jurisdiction over agriculture policy and 
13.9 	finance. The annual report must include but 
13.10 	not be limited to a summary of the following 
13.11 	metrics: (i) the number and types of projects 
13.12 	financed; (ii) the amount of dollars leveraged 
13.13 	or matched per project; (iii) the geographic 
13.14 	distribution of financed projects; (iv) any 
13.15 	market expansion associated with upgraded 
13.16 	infrastructure; (v) the demographics of the 
13.17 	areas served; (vi) the costs of the program; 
13.18 	and (vii) the number of grants to 
13.19 	minority-owned or female-owned businesses;
13.20 	(4) $750,000 the first year and $750,000
13.21 	$3,750,000 the second year are for grants to 
13.22 	facilitate the start-up, modernization, or 
13.23 	expansion of meat, poultry, egg, and milk 
13.24 	processing facilities. A grant award under this 
13.25 	clause must not exceed $200,000. Any 
13.26 	unencumbered balance at the end of the second 
13.27 	year does not cancel until June 30, 2024, and 
13.28 	may be used for other purposes under this 
13.29 	paragraph. The appropriations under this 
13.30 	clause are onetime; and
13.31 	(5) $1,400,000 the first year and $1,400,000 
13.32 	the second year are for livestock investment 
13.33 	grants under Minnesota Statutes, section 
13.34 	17.118. Any unencumbered balance at the end 
13.35 	of the second year does not cancel until June 
14.1 	30, 2024, and may be used for other purposes 
14.2 	under this paragraph. The appropriations under 
14.3 	this clause are onetime.;
14.4 	(6) $300,000 the second year is for farm 
14.5 	business management tuition assistance with 
14.6 	priority to specialty crop farmers, urban 
14.7 	farmers, and farmers facing mediation, and 
14.8 	support for new urban and specialty crop 
14.9 	instructor positions, including translation and 
14.10 	outreach. Any unencumbered balance at the 
14.11 	end of the second year does not cancel and is 
14.12 	available until June 30, 2024. The 
14.13 	appropriation under this clause is onetime;
14.14 	(7) $1,600,000 the second year is to develop 
14.15 	and enhance farm-to-school markets for 
14.16 	Minnesota farmers by providing more fruits, 
14.17 	vegetables, meat, grain, and dairy for 
14.18 	Minnesota children in school and child care 
14.19 	settings, including reimbursing schools and 
14.20 	child care providers for purchases from local 
14.21 	farmers;
14.22 	(8) $1,000,000 the second year is for urban 
14.23 	youth agricultural education or urban 
14.24 	agriculture community development. Of this 
14.25 	amount, $10,000 is for transfer to the 
14.26 	emerging farmer account under Minnesota 
14.27 	Statutes, section 17.055, subdivision 1a; and
14.28 	(9) $1,000,000 the second year is for the good 
14.29 	food access program under Minnesota 
14.30 	Statutes, section 17.1017.
14.31 	Notwithstanding Minnesota Statutes, section 
14.32 	16A.28, any unencumbered balance does not 
14.33 	cancel at the end of the first year and is 
14.34 	available for the second year, and 
15.1 	appropriations encumbered under contract on 
15.2 	or before June 30, 2023, for agricultural 
15.3 	growth, research, and innovation grants are 
15.4 	available until June 30, 2026.
15.5 	The base amount for the agricultural growth, 
15.6 	research, and innovation program is 
15.7 	$16,053,000 $18,995,000 in fiscal year 2024 
15.8 	and $16,053,000 $18,995,000 in fiscal year 
15.9 	2025, and includes funding for incentive 
15.10 	payments under Minnesota Statutes, sections 
15.11 	41A.16, 41A.17, 41A.18, and 41A.20.
15.12 	(c) $15,000 the first year and $29,000 the 
15.13 	second year are to maintain the current level 
15.14 	of service delivery.

15.15
15.16	Subd. 5.Administration and Financial 
Assistance
 		9,977,000
14,477,000
		9,839,000
25,302,000
	
15.17 	(a) $474,000 the first year and $474,000 the 
15.18 	second year are for payments to county and 
15.19 	district agricultural societies and associations 
15.20 	under Minnesota Statutes, section 38.02, 
15.21 	subdivision 1. Aid payments to county and 
15.22 	district agricultural societies and associations 
15.23 	shall be disbursed no later than July 15 of each 
15.24 	year. These payments are the amount of aid 
15.25 	from the state for an annual fair held in the 
15.26 	previous calendar year.
15.27 	(b) $387,000 the first year and $337,000 the 
15.28 	second year are for farm advocate services. 
15.29 	Of these amounts, $100,000 the first year and 
15.30 	$50,000 the second year are for a pilot 
15.31 	program creating farmland access teams to 
15.32 	provide technical assistance to potential 
15.33 	beginning farmers. The farmland access teams 
15.34 	must assist existing farmers and beginning 
15.35 	farmers on transitioning farm ownership and 
16.1 	operation. Services provided by teams may 
16.2 	include but are not limited to providing 
16.3 	mediation assistance, designing contracts, 
16.4 	financial planning, tax preparation, estate 
16.5 	planning, and housing assistance. Of this 
16.6 	amount for farm transitions, up to $50,000 the 
16.7 	first year may be used to upgrade the 
16.8 	Minnesota FarmLink web application that 
16.9 	connects farmers looking for land with farmers 
16.10 	looking to transition their land.
16.11 	(c) $47,000 the first year and $47,000 the 
16.12 	second year are for grants to the Northern 
16.13 	Crops Institute that may be used to purchase 
16.14 	equipment. These are onetime appropriations.
16.15 	(d) $238,000 the first year and $238,000
16.16 	$260,000 the second year are for transfer to 
16.17 	the Board of Trustees of the Minnesota State 
16.18 	Colleges and Universities for statewide mental 
16.19 	health counseling support to farm families and 
16.20 	business operators through the Minnesota State 
16.21 	Agricultural Centers of Excellence. South 
16.22 	Central College and Central Lakes College 
16.23 	shall serve as the fiscal agents. a pass-through 
16.24 	grant to Region Five Development 
16.25 	Commission to provide, in collaboration with 
16.26 	Farm Business Management, statewide mental 
16.27 	health counseling support to Minnesota farm 
16.28 	operators, families, and employees, and 
16.29 	individuals who work with Minnesota farmers 
16.30 	in a professional capacity. Region Five 
16.31 	Development Commission may use up to 6.5 
16.32 	percent of the grant awarded under this 
16.33 	paragraph for administration.
16.34 	(e) $1,700,000 the first year and $1,700,000 
16.35 	the second year are for grants to Second 
17.1 	Harvest Heartland on behalf of Minnesota's 
17.2 	six Feeding America food banks for the 
17.3 	following:
17.4 	(1) to purchase milk for distribution to 
17.5 	Minnesota's food shelves and other charitable 
17.6 	organizations that are eligible to receive food 
17.7 	from the food banks. Milk purchased under 
17.8 	the grants must be acquired from Minnesota 
17.9 	milk processors and based on low-cost bids. 
17.10 	The milk must be allocated to each Feeding 
17.11 	America food bank serving Minnesota 
17.12 	according to the formula used in the 
17.13 	distribution of United States Department of 
17.14 	Agriculture commodities under The 
17.15 	Emergency Food Assistance Program. Second 
17.16 	Harvest Heartland may enter into contracts or 
17.17 	agreements with food banks for shared funding 
17.18 	or reimbursement of the direct purchase of 
17.19 	milk. Each food bank that receives funding 
17.20 	under this clause may use up to two percent 
17.21 	for administrative expenses;
17.22 	(2) to compensate agricultural producers and 
17.23 	processors for costs incurred to harvest and 
17.24 	package for transfer surplus fruits, vegetables, 
17.25 	and other agricultural commodities that would 
17.26 	otherwise go unharvested, be discarded, or 
17.27 	sold in a secondary market. Surplus 
17.28 	commodities must be distributed statewide to 
17.29 	food shelves and other charitable organizations 
17.30 	that are eligible to receive food from the food 
17.31 	banks. Surplus food acquired under this clause 
17.32 	must be from Minnesota producers and 
17.33 	processors. Second Harvest Heartland may 
17.34 	use up to 15 percent of each grant awarded 
18.1 	under this clause for administrative and 
18.2 	transportation expenses; and
18.3 	(3) to purchase and distribute protein products, 
18.4 	including but not limited to pork, poultry, beef, 
18.5 	dry legumes, cheese, and eggs to Minnesota's 
18.6 	food shelves and other charitable organizations 
18.7 	that are eligible to receive food from the food 
18.8 	banks. Second Harvest Heartland may use up 
18.9 	to two percent of each grant awarded under 
18.10 	this clause for administrative expenses. Protein 
18.11 	products purchased under the grants must be 
18.12 	acquired from Minnesota processors and 
18.13 	producers.
18.14 	Of the amount appropriated under this 
18.15 	paragraph, at least $600,000 each year must 
18.16 	be allocated under clause (1). Notwithstanding 
18.17 	Minnesota Statutes, section 16A.28, any 
18.18 	unencumbered balance the first year does not 
18.19 	cancel and is available in the second year. 
18.20 	Second Harvest Heartland must submit 
18.21 	quarterly reports to the commissioner and the 
18.22 	chairs and ranking minority members of the 
18.23 	legislative committees with jurisdiction over 
18.24 	agriculture finance in the form prescribed by 
18.25 	the commissioner. The reports must include 
18.26 	but are not limited to information on the 
18.27 	expenditure of funds, the amount of milk or 
18.28 	other commodities purchased, and the 
18.29 	organizations to which this food was 
18.30 	distributed.
18.31 	(f) $250,000 the first year and $250,000 the 
18.32 	second year are for grants to the Minnesota 
18.33 	Agricultural Education and Leadership 
18.34 	Council for programs of the council under 
18.35 	Minnesota Statutes, chapter 41D.
19.1 	(g) $1,437,000 the first year and $1,437,000 
19.2 	the second year are for transfer to the 
19.3 	agricultural and environmental revolving loan 
19.4 	account established under Minnesota Statutes, 
19.5 	section 17.117, subdivision 5a, for low-interest 
19.6 	loans under Minnesota Statutes, section 
19.7 	17.117. The base for appropriations under this 
19.8 	paragraph in fiscal year 2024 and thereafter 
19.9 	is $1,425,000. The commissioner must 
19.10 	examine how the department could use up to 
19.11 	one-third of the amount transferred to the 
19.12 	agricultural and environmental revolving loan 
19.13 	account under this paragraph to award grants 
19.14 	to rural landowners to replace septic systems 
19.15 	that inadequately protect groundwater. No 
19.16 	later than February 1, 2022, the commissioner 
19.17 	must report to the legislative committees with 
19.18 	jurisdiction over agriculture finance and 
19.19 	environment finance on the results of the 
19.20 	examination required under this paragraph. 
19.21 	The commissioner's report may include other 
19.22 	funding sources for septic system replacement 
19.23 	that are available to rural landowners.
19.24 	(h) $150,000 the first year and $150,000 the 
19.25 	second year are for grants to the Center for 
19.26 	Rural Policy and Development. These are 
19.27 	onetime appropriations.
19.28 	(i) $150,000 the first year is to provide grants 
19.29 	to Central Lakes College for the purposes of 
19.30 	designing, building, and offering credentials 
19.31 	in the area of meat cutting and butchery that 
19.32 	align with industry needs as advised by local 
19.33 	industry advisory councils. Notwithstanding 
19.34 	Minnesota Statutes, section 16A.28, any 
19.35 	unencumbered balance does not cancel at the 
20.1 	end of the first year and is available for the 
20.2 	second year. The commissioner may only 
20.3 	award a grant under this paragraph if the grant 
20.4 	is matched by a like amount from another 
20.5 	funding source. The commissioner must seek 
20.6 	matching dollars from Minnesota State 
20.7 	Colleges and Universities or other entities. 
20.8 	The appropriation is onetime and is available 
20.9 	until June 30, 2024. Any money remaining on 
20.10 	June 30, 2024, must be transferred to the 
20.11 	agricultural growth, research, and innovation 
20.12 	program under Minnesota Statutes, section 
20.13 	41A.12, and is available until June 30, 2025. 
20.14 	Grants may be used for costs including but 
20.15 	not limited to:
20.16 	(1) facility renovation to accommodate meat 
20.17 	cutting;
20.18 	(2) curriculum design and approval from the 
20.19 	Higher Learning Commission;
20.20 	(3) program operational start-up costs;
20.21 	(4) equipment required for a meat cutting 
20.22 	program; and
20.23 	(5) meat handling start-up costs in regard to 
20.24 	meat access and market channel building.
20.25 	No later than January 15, 2023, Central Lakes 
20.26 	College must submit a report outlining the use 
20.27 	of grant money to the chairs and ranking 
20.28 	minority members of the legislative 
20.29 	committees and divisions with jurisdiction 
20.30 	over agriculture and higher education.
20.31 	(j) $2,000 the first year is for grants to the 
20.32 	Minnesota State Poultry Association. This is 
20.33 	a onetime appropriation. Notwithstanding 
20.34 	Minnesota Statutes, section 16A.28, any 
21.1 	unencumbered balance does not cancel at the 
21.2 	end of the first year and is available for the 
21.3 	second year.
21.4 	(k) $17,000 the first year and $17,000 the 
21.5 	second year are for grants to the Minnesota 
21.6 	State Horticultural Society. These are onetime 
21.7 	appropriations.
21.8 	(l) $18,000 the first year and $18,000 the 
21.9 	second year are for grants to the Minnesota 
21.10 	Livestock Breeders Association. These are 
21.11 	onetime appropriations.
21.12 	(m) The commissioner shall continue to 
21.13 	increase connections with ethnic minority and 
21.14 	immigrant farmers to farming opportunities 
21.15 	and farming programs throughout the state.
21.16 	(n) $25,000 the first year and $25,000 the 
21.17 	second year are for grants to the Southern 
21.18 	Minnesota Initiative Foundation to promote 
21.19 	local foods through an annual event that raises 
21.20 	public awareness of local foods and connects 
21.21 	local food producers and processors with 
21.22 	potential buyers.
21.23 	(o) $75,000 the first year and $75,000 the 
21.24 	second year are for grants to Greater Mankato 
21.25 	Growth, Inc., for assistance to 
21.26 	agriculture-related businesses to promote jobs, 
21.27 	innovation, and synergy development. These 
21.28 	are onetime appropriations.
21.29 	(p) $75,000 the first year and $75,000 the 
21.30 	second year are for grants to the Minnesota 
21.31 	Turf Seed Council for basic and applied 
21.32 	research. The Minnesota Turf Seed Council 
21.33 	may subcontract with a qualified third party 
21.34 	for some or all of the basic or applied research. 
22.1 	No later than January 15, 2023, the Minnesota 
22.2 	Turf Seed Council must submit a report 
22.3 	outlining the use of the grant money and 
22.4 	related accomplishments to the chairs and 
22.5 	ranking minority members of the legislative 
22.6 	committees with jurisdiction over agriculture. 
22.7 	These are onetime appropriations. Any 
22.8 	unencumbered balance does not cancel at the 
22.9 	end of the first year and is available for the 
22.10 	second year.
22.11 	(q) $150,000 the first year and $150,000 the 
22.12 	second year are to establish an emerging 
22.13 	farmer office and hire a full-time emerging 
22.14 	farmer outreach coordinator. The emerging 
22.15 	farmer outreach coordinator must engage and 
22.16 	support emerging farmers regarding resources 
22.17 	and opportunities available throughout the 
22.18 	Department of Agriculture and the state. For 
22.19 	purposes of this paragraph, "emerging farmer" 
22.20 	has the meaning provided in Minnesota 
22.21 	Statutes, section 17.055, subdivision 1. Of the 
22.22 	amount appropriated each year, $25,000 is for 
22.23 	translation services for farmers and cottage 
22.24 	food producers.
22.25 	(r) $222,000 the first year and $286,000 the 
22.26 	second year are to maintain the current level 
22.27 	of service delivery.
22.28 	(s) $2,600,000 the second year is for grants to 
22.29 	organizations to:
22.30 	(1) provide technical and culturally appropriate 
22.31 	services to emerging farmers and related 
22.32 	businesses; and
23.1 	(2) help emerging farmers pay for up to two 
23.2 	years of coverage under the federal micro farm 
23.3 	insurance program.
23.4 	The commissioner may use up to 6.5 percent 
23.5 	of this appropriation for administrative costs. 
23.6 	This is a onetime appropriation and is 
23.7 	available until June 30, 2024.
23.8 	(t) $2,000,000 the second year is to support 
23.9 	the IT modernization efforts, including laying 
23.10 	the technology foundations needed for 
23.11 	improving customer interactions with the 
23.12 	department for licensing and payments. This 
23.13 	is a onetime appropriation and is available 
23.14 	until June 30, 2025.
23.15 	(u) $4,500,000 the first year is for transfer to 
23.16 	the agricultural emergency account established 
23.17 	under Minnesota Statutes, section 17.041, for 
23.18 	emergency preparedness and response 
23.19 	activities. Of this amount, up to $1,500,000 is 
23.20 	for the University of Minnesota Veterinary 
23.21 	Diagnostic Laboratory. This is a onetime 
23.22 	appropriation.
23.23 	(v) $3,000,000 the second year is for grants 
23.24 	to Second Harvest Heartland for hunger relief. 
23.25 	Of this amount, $500,000 is for The Good 
23.26 	Acre's Local Emergency Assistance Farmer 
23.27 	Fund (LEAFF) program. The base for this 
23.28 	appropriation is $1,350,000 in fiscal year 2024 
23.29 	and $1,300,000 in fiscal year 2025, of which 
23.30 	$250,000 each year is for the LEAFF program.
23.31 	(w) $500,000 the second year is for transfer 
23.32 	to the Board of Trustees of the Minnesota 
23.33 	State Colleges and Universities to support 
23.34 	livestock processing technical education at 
24.1 	Central Lakes College and Ridgewater 
24.2 	College. Money may be used for the purposes 
24.3 	included in paragraph (i) and for student 
24.4 	financial assistance and outreach to 
24.5 	prospective students and employers. The 
24.6 	commissioner may only transfer money under 
24.7 	this paragraph if the transferred amount is 
24.8 	matched by a like amount from another 
24.9 	funding source. This is a onetime 
24.10 	appropriation and is available until June 30, 
24.11 	2024.
24.12 	(x) $141,000 the second year is for additional 
24.13 	funding to administer the beginning farmer 
24.14 	tax credit. The base for this appropriation is 
24.15 	$56,000 in fiscal year 2024 and $0 in fiscal 
24.16 	year 2025.
24.17 	(y) $1,500,000 the second year is for a grant 
24.18 	to the Ag Innovation Campus to continue 
24.19 	construction of a soybean processing and 
24.20 	research facility. This is a onetime 
24.21 	appropriation.
24.22 	(z) $100,000 the second year is to provide 
24.23 	technical assistance and leadership in the 
24.24 	development of a comprehensive and 
24.25 	well-documented state aquaculture plan. The 
24.26 	commissioner must provide the state 
24.27 	aquaculture plan to the legislative committees 
24.28 	with jurisdiction over agriculture finance and 
24.29 	policy by February 15, 2024. This is a onetime 
24.30 	appropriation and is available until June 30, 
24.31 	2024.
24.32 	(aa) $3,000,000 the second year is to award 
24.33 	and administer down payment assistance 
24.34 	grants under Minnesota Statutes, section 
25.1 	17.133. The base for this appropriation is 
25.2 	$1,000,000 in fiscal year 2024 and thereafter.
25.3 	(bb) $1,000,000 the second year is for transfer 
25.4 	to the Board of Regents of the University of 
25.5 	Minnesota to evaluate, propagate, and 
25.6 	maintain the genetic diversity of oilseeds, 
25.7 	grains, grasses, legumes, and other plants 
25.8 	including flax, timothy, barley, rye, triticale, 
25.9 	alfalfa, orchard grass, clover, and other species 
25.10 	and varieties that were in commercial 
25.11 	distribution and use in Minnesota before 1970, 
25.12 	excluding wild rice. This appropriation 
25.13 	includes funding for associated extension and 
25.14 	outreach to small and BIPOC farmers. This is 
25.15 	a onetime appropriation.
25.16 	(cc) $100,000 the second year is for grants 
25.17 	and other forms of financial assistance to meat 
25.18 	and poultry processors with no more than 50 
25.19 	full-time equivalent employees to reimburse 
25.20 	costs incurred to attend courses or trainings 
25.21 	or receive technical assistance during fiscal 
25.22 	year 2023 that support the processors' 
25.23 	development of sanitation standard operating 
25.24 	procedures, hazard analysis critical control 
25.25 	point plans, or business plans. This is a 
25.26 	onetime appropriation.
25.27 	(dd) $500,000 the second year is for grants to 
25.28 	secondary career and technical education 
25.29 	programs for the purpose of offering 
25.30 	instruction in meat cutting and butchery. This 
25.31 	is a onetime appropriation and is available 
25.32 	until June 30, 2025. Grant-eligible costs 
25.33 	include but are not limited to:
25.34 	(1) equipment required for a meat cutting 
25.35 	program;
26.1 	(2) facility renovation to accommodate meat 
26.2 	cutting; and
26.3 	(3) training faculty to teach the fundamentals 
26.4 	of meat processing.
26.5 	The commissioner may issue grants of up to 
26.6 	$100,000 under this paragraph, of which up 
26.7 	to ten percent may be used for faculty training. 
26.8 	The commissioner may prioritize applicants 
26.9 	that coordinate with meat cutting and butchery 
26.10 	programs at the Minnesota State Colleges and 
26.11 	Universities system and local industry 
26.12 	partners.
26.13 	(ee) $1,000,000 the second year is for a grant 
26.14 	or other form of financial assistance to the city 
26.15 	of South St. Paul to provide financial 
26.16 	assistance to any business engaged in the meat 
26.17 	processing industry and currently conducting 
26.18 	operations in a building or buildings 
26.19 	constructed on or before January 1, 1947, and 
26.20 	located east of Concord Street, north of Grand 
26.21 	Avenue, and south of Hardman Avenue in 
26.22 	South St. Paul. Costs eligible for financial 
26.23 	assistance include any one or combination of 
26.24 	the following costs incurred by the city of 
26.25 	South St. Paul or a qualified business: site 
26.26 	acquisition costs or costs associated with the 
26.27 	exchange or transfer of real estate; relocation 
26.28 	costs; predesign; design; sewer, water, and 
26.29 	stormwater infrastructure; site preparation; 
26.30 	engineering; and construction costs. This is a 
26.31 	onetime appropriation and is available until 
26.32 	June 30, 2024.

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

27.1 	Sec. 2. Laws 2021, First Special Session chapter 3, article 1, section 4, is amended to read:

27.2
27.3	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	4,543,000
4,743,000
	$
	4,043,000
7,243,000
	
27.4 	(a) $150,000 the first year and $150,000 the 
27.5 	second year are for a meat scientist.
27.6 	(b) $500,000 the first year is for grants to 
27.7 	organizations to acquire, host, and operate a 
27.8 	mobile slaughter unit. The mobile unit must 
27.9 	coordinate with Minnesota state two-year 
27.10 	colleges that have meat cutting programs to 
27.11 	accommodate training as it relates to animal 
27.12 	slaughter. The mobile unit may coordinate 
27.13 	with livestock producers who desire to provide 
27.14 	value-added meat products by utilizing the 
27.15 	mobile slaughter unit. The mobile unit may 
27.16 	be used for research, training outside of the 
27.17 	two-year colleges, and other activities that 
27.18 	align with industry needs. The Agricultural 
27.19 	Utilization Research Institute may only award 
27.20 	a grant under this paragraph if the grant 
27.21 	amount is matched by a like amount from 
27.22 	another funding source. The Agricultural 
27.23 	Utilization Research Institute must seek 
27.24 	matching dollars from Minnesota State 
27.25 	Colleges and Universities or other entities for 
27.26 	purposes of this paragraph. The appropriation 
27.27 	under this paragraph is onetime and is 
27.28 	available until June 30, 2024. Any money 
27.29 	remaining on June 30, 2024, must be 
27.30 	transferred to the commissioner of agriculture 
27.31 	for the agricultural growth, research, and 
27.32 	innovation program under Minnesota Statutes, 
27.33 	section 41A.12, and is available until June 30, 
27.34 	2025. By January 15, 2023, the institute must 
27.35 	report to the chairs and ranking minority 
28.1 	members of the legislative committees with 
28.2 	jurisdiction over agriculture regarding the 
28.3 	status of the project, including the status of 
28.4 	the use of any state or matching dollars to 
28.5 	complete the project.
28.6 	(c) $2,000,000 the second year is to acquire 
28.7 	property, construct, and equip offices and 
28.8 	research laboratories and related infrastructure 
28.9 	at the Agricultural Utilization Research 
28.10 	Institute's Crookston and Waseca facilities. 
28.11 	This is a onetime appropriation.
28.12 	(d) $1,000,000 the second year is for 
28.13 	equipment upgrades, equipment replacement, 
28.14 	installation expenses, and laboratory 
28.15 	infrastructure at the Agricultural Utilization 
28.16 	Research Institute's laboratories in Crookston, 
28.17 	Marshall, and Waseca. This is a onetime 
28.18 	appropriation and is available until June 30, 
28.19 	2026.
28.20 	(e) $200,000 each year is to maintain the 
28.21 	current level of service delivery.

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

28.23 	ARTICLE 2
28.24 	STATUTORY CHANGES

28.25 	Section 1. Minnesota Statutes 2020, section 13.643, is amended by adding a subdivision 
28.26 	to read:
28.27 		Subd. 8.Mental or behavioral health data. (a) The following data collected and 
28.28 	maintained by the Department of Agriculture, Minnesota State Colleges and Universities, 
28.29 	and any other pass-through recipients about any individual who seeks assistance with a 
28.30 	mental or behavioral health issue or who contacts the Minnesota Farm and Rural Helpline 
28.31 	are private or nonpublic:
28.32 	(1) data that identify the individual; and
29.1 	(2) data provided by the individual identifying another person.
29.2 	(b) The Department of Agriculture, Minnesota State Colleges and Universities, and any 
29.3 	other pass-through recipients may release data collected under this subdivision to appropriate 
29.4 	parties in connection with an emergency if knowledge of the data is necessary to protect 
29.5 	the health or safety of any person.

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

29.7 	Sec. 2. Minnesota Statutes 2020, section 17.041, subdivision 1, is amended to read:
29.8 		Subdivision 1.Establishment; appropriation. An agricultural emergency account is 
29.9 	established in the agricultural fund. Money in the account, including interest, is appropriated 
29.10 	to the commissioner for emergency preparedness and response activities for agricultural 
29.11 	emergencies affecting producers of livestock, poultry, crops, or other agricultural products. 
29.12 	Eligible uses include agency costs directly attributed to preparing for and responding to 
29.13 	agricultural emergencies and purchasing necessary equipment and reimbursing costs incurred 
29.14 	by local units of government that are not eligible for reimbursement from other sources.

29.15 	Sec. 3. [17.1016] COOPERATIVE GRANTS.
29.16 		Subdivision 1.Definitions. For purposes of this section:
29.17 	(1) "agricultural commodity" and "agricultural product processing facility" have the 
29.18 	meanings given in section 17.101, subdivision 5; and
29.19 	(2) "agricultural service" means an action made under the direction of a farmer that 
29.20 	provides value to another entity. Agricultural service includes grazing to manage vegetation.
29.21 		Subd. 2.Grant program. (a) The commissioner may establish and implement a grant 
29.22 	program to help farmers finance new cooperatives that organize for purposes of operating 
29.23 	an agricultural product processing facility or marketing an agricultural product or agricultural 
29.24 	service.
29.25 	(b) To be eligible for this program, a grantee must:
29.26 	(1) be a cooperative organized under chapter 308A;
29.27 	(2) certify that all control and equity in the cooperative is from farmers, family farm 
29.28 	partnerships, family farm limited liability companies, or family farm corporations as defined 
29.29 	in section 500.24, subdivision 2, who are actively engaged in agricultural commodity 
29.30 	production;
30.1 	(3) be operated primarily to process agricultural commodities or market agricultural 
30.2 	products or services produced in Minnesota; and
30.3 	(4) receive agricultural commodities produced primarily by shareholders or members 
30.4 	of the cooperative.
30.5 	(c) The commissioner may receive applications and make grants up to $50,000 to eligible 
30.6 	grantees for feasibility, marketing analysis, assistance with organizational development, 
30.7 	financing and managing new cooperatives, product development, development of business 
30.8 	and marketing plans, and predesign of facilities including site analysis, development of bid 
30.9 	specifications, preliminary blueprints and schematics, and completion of purchase agreements 
30.10 	and other necessary legal documents.

30.11 	Sec. 4. Minnesota Statutes 2020, section 17.117, subdivision 9, is amended to read:
30.12 		Subd. 9.Allocation rescission. (a) Continued availability of allocations granted to a 
30.13 	local government unit is contingent upon the commissioner's approval of the local 
30.14 	government unit's annual report. The commissioner shall review this annual report to ensure 
30.15 	that the past and future uses of the funds are consistent with the comprehensive water 
30.16 	management plan, other local planning documents, the requirements of the funding source, 
30.17 	and compliance to program requirements. If the commissioner concludes the past or intended 
30.18 	uses of the money are not consistent with these requirements, the commissioner shall rescind 
30.19 	all or part of the allocation awarded to a local government unit.
30.20 	(b) The commissioner may rescind funds allocated to the local government unit that are 
30.21 	not designated to committed projects or disbursed within one year from the date of the 
30.22 	allocation agreement.
30.23 	(c) An additional year to use the undisbursed portion of an allocation may be granted 
30.24 	by the commissioner under extenuating circumstances The commissioner may rescind 
30.25 	uncommitted allocations.

30.26 	Sec. 5. Minnesota Statutes 2020, section 17.117, subdivision 9a, is amended to read:
30.27 		Subd. 9a.Authority and responsibilities of local government units. (a) A local 
30.28 	government unit that enters into an allocation agreement with the commissioner:
30.29 	(1) is responsible for the local administration and implementation of the program in 
30.30 	accordance with this section;
30.31 	(2) may submit applications for allocations to the commissioner;
31.1 	(3) shall identify, develop, determine eligibility, define and approve projects, designate 
31.2 	maximum loan amounts for projects, and certify completion of projects implemented under 
31.3 	this program. In areas where no local government unit has applied for funds under this 
31.4 	program, the commissioner may appoint a local government unit to review and certify 
31.5 	projects or the commissioner may assume the authority and responsibility of the local 
31.6 	government unit;
31.7 	(4) shall certify as eligible only projects that are within its geographic jurisdiction or 
31.8 	within the geographic area identified in its local comprehensive water management plans 
31.9 	or other local planning documents;
31.10 	(5) may require withholding by the local lender of all or a portion of the loan to the 
31.11 	borrower until satisfactory completion of all required components of a certified project;
31.12 	(6) must identify which account is used to finance an approved project if the local 
31.13 	government unit has allocations from multiple accounts in the agricultural and environmental 
31.14 	revolving accounts;
31.15 	(7) (6) shall report to the commissioner annually the past and intended uses of allocations 
31.16 	awarded; and
31.17 	(8) (7) may request additional funds in excess of their allocation when funds are available 
31.18 	in the agricultural and environmental revolving accounts, as long as all other allocation 
31.19 	awards to the local government unit have been used or committed.
31.20 	(b) If a local government unit withdraws from participation in this program, the local 
31.21 	government unit, or the commissioner in accordance with the priorities established under 
31.22 	subdivision 6a, may designate another local government unit that is eligible under subdivision 
31.23 	6 as the new local government unit responsible for local administration of this program. 
31.24 	This designated local government unit may accept responsibility and administration of 
31.25 	allocations awarded to the former responsible local government unit.

31.26 	Sec. 6. Minnesota Statutes 2020, section 17.117, subdivision 10, is amended to read:
31.27 		Subd. 10.Authority and responsibilities of local lenders. (a) Local lenders may enter 
31.28 	into lender agreements with the commissioner.
31.29 	(b) Local lenders may enter into loan agreements with borrowers to finance eligible 
31.30 	projects under this section.
31.31 	(c) The local lender shall notify the local government unit of the loan amount issued to 
31.32 	the borrower after the closing of each loan.
32.1 	(d) (c) Local lenders with local revolving loan accounts created before July 1, 2001, 
32.2 	may continue to retain and use those accounts in accordance with their lending agreements 
32.3 	for the full term of those agreements.
32.4 	(e) (d) Local lenders, including local government units designating themselves as the 
32.5 	local lender, may enter into participation agreements with other lenders.
32.6 	(f) (e) Local lenders may enter into contracts with other lenders for the limited purposes 
32.7 	of loan review, processing and servicing, or to enter into loan agreements with borrowers 
32.8 	to finance projects under this section. Other lenders entering into contracts with local lenders 
32.9 	under this section must meet the definition of local lender in subdivision 4, must comply 
32.10 	with all provisions of the lender agreement and this section, and must guarantee repayment 
32.11 	of the loan funds to the local lender.
32.12 	(g) (f) When required by the local government unit, a local lender must withhold all or 
32.13 	a portion of the loan disbursement for a project until notified by the local government unit 
32.14 	that the project has been satisfactorily completed.
32.15 	(h) (g) The local lender is responsible for repaying all funds provided by the commissioner 
32.16 	to the local lender.
32.17 	(i) (h) The local lender is responsible for collecting repayments from borrowers. If a 
32.18 	borrower defaults on a loan issued by the local lender, it is the responsibility of the local 
32.19 	lender to obtain repayment from the borrower. Default on the part of borrowers shall have 
32.20 	no effect on the local lender's responsibility to repay its obligations to the commissioner 
32.21 	whether or not the local lender fully recovers defaulted amounts from borrowers.
32.22 	(j) (i) The local lender shall provide sufficient collateral or protection to the commissioner 
32.23 	for the funds provided to the local lender. The commissioner must approve the collateral 
32.24 	or protection provided.

32.25 	Sec. 7. Minnesota Statutes 2020, section 17.117, subdivision 11, is amended to read:
32.26 		Subd. 11.Loans issued to borrower. (a) Local lenders may issue loans only for projects 
32.27 	that are approved and certified by the local government unit as meeting priority needs 
32.28 	identified in a comprehensive water management plan or other local planning documents, 
32.29 	are in compliance with accepted practices, standards, specifications, or criteria, and are 
32.30 	eligible for financing under Environmental Protection Agency or other applicable guidelines.
32.31 	(b) The local lender may use any additional criteria considered necessary to determine 
32.32 	the eligibility of borrowers for loans.
33.1 	(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:
33.2 	(1) no loan to a borrower may exceed $200,000; and
33.3 	(2) no borrower shall, at any time, have multiple loans from this program with a total 
33.4 	outstanding loan balance of more than $200,000.
33.5 	(d) The maximum term length for projects in this paragraph is ten years.
33.6 	(e) Fees charged at the time of closing must:
33.7 	(1) be in compliance with normal and customary practices of the local lender;
33.8 	(2) be in accordance with published fee schedules issued by the local lender;
33.9 	(3) not be based on participation program; and
33.10 	(4) be consistent with fees charged other similar types of loans offered by the local 
33.11 	lender.
33.12 	(f) The interest rate assessed to an outstanding loan balance by the local lender must not 
33.13 	exceed three percent per year.

33.14 	Sec. 8. Minnesota Statutes 2020, section 17.117, subdivision 11a, is amended to read:
33.15 		Subd. 11a.Eligible projects. (a) All projects that remediate or mitigate adverse 
33.16 	environmental impacts are eligible if the project is eligible under an allocation agreement.
33.17 	(b) A manure management project is eligible if the project remediates or mitigates 
33.18 	impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules, 
33.19 	chapter 7020, and otherwise meets the requirements of this section.
33.20 	(c) A drinking water project is eligible if the project:
33.21 	(1) remediates the or mitigates the inadequate flow, adverse environmental impacts or 
33.22 	presence of contaminants in private well privately owned water supplies that are used for 
33.23 	drinking water by people or livestock, privately owned water service lines, or privately 
33.24 	owned plumbing and fixtures;
33.25 	(2) implements best management practices that are intended to achieve drinking water 
33.26 	standards or adequate flow; and
33.27 	(3) otherwise meets the requirements of this section.

34.1 	Sec. 9. Minnesota Statutes 2020, section 17.118, subdivision 1, is amended to read:
34.2 		Subdivision 1.Establishment. The commissioner may award a livestock investment 
34.3 	grant to a person who raises livestock in this state equal to ten percent of the first $500,000
34.4 	$250,000 of qualifying expenditures, provided the person makes qualifying expenditures 
34.5 	of at least $4,000. The commissioner may award multiple livestock investment grants to a 
34.6 	person over the life of the program as long as the cumulative amount does not exceed 
34.7 	$50,000.

34.8 	Sec. 10. Minnesota Statutes 2020, section 17.118, subdivision 3, is amended to read:
34.9 		Subd. 3.Eligibility. (a) To be eligible for a livestock investment grant, a person must:
34.10 	(1) be a resident of Minnesota or an entity specifically defined in section 500.24, 
34.11 	subdivision 2, that is eligible to own farmland and operate a farm in this state under section 
34.12 	500.24;
34.13 	(2) be the principal operator of the farm;
34.14 	(3) hold a feedlot registration, if required; and
34.15 	(4) apply to the commissioner on forms prescribed by the commissioner including a 
34.16 	statement of the qualifying expenditures made during the qualifying period along with any 
34.17 	proof or other documentation the commissioner may require.
34.18 	(b) The $50,000 maximum grant applies at the entity level for partnerships, S 
34.19 	corporations, C corporations, trusts, and estates as well as at the individual level. In the case 
34.20 	of married individuals, the grant is limited to $50,000 for a married couple.

34.21 	Sec. 11. Minnesota Statutes 2020, section 17.118, subdivision 4, is amended to read:
34.22 		Subd. 4.Process. The commissioner, in consultation with the chairs and ranking minority 
34.23 	members of the house of representatives and senate committees with jurisdiction over 
34.24 	agriculture finance, shall develop competitive eligibility criteria and may allocate grants on 
34.25 	a needs basis. The commissioner shall place any eligible unfunded applications on a waiting 
34.26 	list and, notwithstanding subdivision 2, paragraph (d), give them consideration during the 
34.27 	next fiscal year in which program funding is available. The commissioner shall notify in 
34.28 	writing any applicant who applies for a grant and is ineligible under the provisions of this 
34.29 	section as well as any applicant whose application is received or reviewed after the fiscal 
34.30 	year funding limit has been reached.

35.1 	Sec. 12. [17.133] FARM DOWN PAYMENT ASSISTANCE GRANTS.
35.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
35.3 	the meanings given.
35.4 	(b) "Eligible farmer" means an individual who at the time that the grant is awarded:
35.5 	(1) is a resident of Minnesota who intends to acquire farmland located within the state 
35.6 	and provide the majority of the day-to-day physical labor and management of the farm;
35.7 	(2) grosses no more than $250,000 per year from the sale of farm products; and
35.8 	(3) has not, and whose spouse has not, at any time had a direct or indirect ownership 
35.9 	interest in farmland.
35.10 	(c) "Farm down payment" means an initial, partial payment required by a lender or seller 
35.11 	to purchase farmland.
35.12 		Subd. 2.Grants. The commissioner must award farm down payment assistance grants 
35.13 	of up to $15,000 per eligible farmer. An eligible farmer must match the grant with at least 
35.14 	an equivalent amount of other funding. An eligible farmer must commit to own and farm 
35.15 	the land purchased with assistance provided under this section for at least five years. For 
35.16 	each year that a grant recipient does not own and farm the land during the five-year period, 
35.17 	the grant recipient must pay a penalty to the commissioner equal to 20 percent of the grant 
35.18 	amount.

35.19 	Sec. 13. [17.994] SOIL HEALTH FINANCIAL ASSISTANCE PROGRAM.
35.20 		Subdivision 1.Establishment. The soil health financial assistance program is established 
35.21 	to promote soil health practices that mitigate climate change impacts, improve water quality, 
35.22 	and provide related public benefits.
35.23 		Subd. 2.Financial assistance. (a) The commissioner may provide financial assistance 
35.24 	to local governments, private sector providers, or farmers to cover the costs of specialized 
35.25 	equipment and technology necessary to implement and sustain soil health practices, including 
35.26 	equipment technology purchases or subscriptions, services to landowners, and other 
35.27 	equipment purchases or financial assistance that the commissioner considers appropriate 
35.28 	to promote healthy soil.
35.29 	(b) The commissioner must establish costs eligible for financial assistance under this 
35.30 	section.
35.31 	(c) The commissioner must prioritize or weigh program implementation elements based 
35.32 	on considerations including:
36.1 	(1) support for soil health principles;
36.2 	(2) supporting participants or participation in the Minnesota agricultural water quality 
36.3 	certification program established under Minnesota Statutes, sections 17.9891 to 17.993;
36.4 	(3) reducing or avoiding greenhouse gas emissions; and
36.5 	(4) other beneficial public or private programs or initiatives to achieve program results.

36.6 	Sec. 14. Minnesota Statutes 2020, section 18B.01, is amended by adding a subdivision to 
36.7 	read:
36.8 		Subd. 20b.Plastic. "Plastic" means an organic or petroleum derivative synthetic or a 
36.9 	semisynthetic organic solid that is moldable, and to which additives or other substances 
36.10 	may have been added. Plastic does not mean natural polymers that have not been chemically 
36.11 	modified.

36.12 	Sec. 15. Minnesota Statutes 2020, section 18B.01, is amended by adding a subdivision to 
36.13 	read:
36.14 		Subd. 20c.Plastic-coated pesticide. "Plastic-coated pesticide" means a pesticide coated 
36.15 	with or microencapsulated by plastic.

36.16 	Sec. 16. Minnesota Statutes 2020, section 18B.051, is amended to read:
36.17 	18B.051 POLLINATOR HABITAT AND RESEARCH ACCOUNT.
36.18 		Subdivision 1.Account established. A pollinator habitat and research account is 
36.19 	established in the agricultural fund. Money in the account, including interest, is appropriated 
36.20 	to the Board of Regents of the University of Minnesota for pollinator research and outreach 
36.21 	including, but not limited to,:
36.22 	(1) pesticide, parasite, and climate disruption impacts;
36.23 	(2) science-based best practices; and
36.24 	(3) the identification and establishment of habitat beneficial to pollinators.
36.25 		Subd. 2.Expiration. This section expires July 1, 2022 2025.

36.26 	Sec. 17. Minnesota Statutes 2020, section 18B.07, is amended by adding a subdivision to 
36.27 	read:
36.28 		Subd. 9.Plastic-coated pesticide prohibited. A person may not sell, offer for sale, use, 
36.29 	or apply a plastic-coated pesticide.

37.1 	EFFECTIVE DATE. This section is effective January 1, 2025, for nonagricultural 
37.2 	pesticide, and January 1, 2026, for agricultural pesticide.

37.3 	Sec. 18. Minnesota Statutes 2020, section 18C.005, is amended by adding a subdivision 
37.4 	to read:
37.5 		Subd. 26a.Plastic. "Plastic" has the meaning given in section 18B.01, subdivision 20b.

37.6 	Sec. 19. Minnesota Statutes 2020, section 18C.005, is amended by adding a subdivision 
37.7 	to read:
37.8 		Subd. 26b.Plastic-coated fertilizer. "Plastic-coated fertilizer" means a fertilizer coated 
37.9 	with or microencapsulated by plastic.

37.10 	Sec. 20. Minnesota Statutes 2020, section 18C.201, is amended by adding a subdivision 
37.11 	to read:
37.12 		Subd. 8.Plastic-coated fertilizer prohibited. A person may not sell, offer for sale, use, 
37.13 	or apply a plastic-coated fertilizer.

37.14 	EFFECTIVE DATE. This section is effective January 1, 2025, for nonagricultural 
37.15 	fertilizer, and January 1, 2026, for agricultural fertilizer.

37.16 	Sec. 21. Minnesota Statutes 2020, section 21.81, is amended by adding a subdivision to 
37.17 	read:
37.18 		Subd. 5a.Coated agricultural seed. "Coated agricultural seed" means any seed unit 
37.19 	covered with a coating material.

37.20 	Sec. 22. Minnesota Statutes 2020, section 21.86, subdivision 2, is amended to read:
37.21 		Subd. 2.Miscellaneous violations. No person may:
37.22 	(a) detach, alter, deface, or destroy any label required in sections 21.82 and 21.83, alter 
37.23 	or substitute seed in a manner that may defeat the purposes of sections 21.82 and 21.83, or 
37.24 	alter or falsify any seed tests, laboratory reports, records, or other documents to create a 
37.25 	misleading impression as to kind, variety, history, quality, or origin of the seed;
37.26 	(b) hinder or obstruct in any way any authorized person in the performance of duties 
37.27 	under sections 21.80 to 21.92;
38.1 	(c) fail to comply with a "stop sale" order or to move or otherwise handle or dispose of 
38.2 	any lot of seed held under a stop sale order or attached tags, except with express permission 
38.3 	of the enforcing officer for the purpose specified;
38.4 	(d) use the word "type" in any labeling in connection with the name of any agricultural 
38.5 	seed variety;
38.6 	(e) use the word "trace" as a substitute for any statement which is required;
38.7 	(f) plant any agricultural seed which the person knows contains weed seeds or noxious 
38.8 	weed seeds in excess of the limits for that seed; or
38.9 	(g) advertise or sell seed containing patented, protected, or proprietary varieties used 
38.10 	without permission of the patent or certificate holder of the intellectual property associated 
38.11 	with the variety of seed.; or
38.12 	(h) use or sell as food, feed, oil, or ethanol feedstock any seed treated with neonicotinoid 
38.13 	pesticide.

38.14 	Sec. 23. [21.915] PESTICIDE TREATED SEED USE AND DISPOSAL; CONSUMER 
38.15 	GUIDANCE REQUIRED.
38.16 	(a) The commissioner, in consultation with the commissioner of the Pollution Control 
38.17 	Agency, must develop and maintain consumer guidance regarding the proper use and disposal 
38.18 	of seed treated with neonicotinoid pesticide.
38.19 	(b) A person selling seed treated with neonicotinoid pesticide at retail must post in a 
38.20 	conspicuous location the guidance developed by the commissioner under paragraph (a).

38.21 	Sec. 24. Minnesota Statutes 2020, section 28A.08, is amended by adding a subdivision to 
38.22 	read:
38.23 		Subd. 4.Food handler license account; appropriation. A food handler license account 
38.24 	is established in the agricultural fund. The commissioner must deposit fees and penalties 
38.25 	paid under subdivision 3 in this account. Money in the account, including interest, is 
38.26 	appropriated to the commissioner for expenses relating to licensing and inspecting food 
38.27 	handlers under chapters 28 to 34A or rules adopted under one of those chapters.

38.28 	Sec. 25. Minnesota Statutes 2020, section 28A.09, is amended by adding a subdivision to 
38.29 	read:
38.30 		Subd. 3.Vending machine inspection account; appropriation. A vending machine 
38.31 	inspection account is established in the agricultural fund. The commissioner must deposit 
39.1 	fees paid under subdivision 1 in this account. Money in the account, including interest, is 
39.2 	appropriated to the commissioner for expenses relating to identifying and inspecting food 
39.3 	vending machines under chapters 28 to 34A or rules adopted under one of those chapters.

39.4 	Sec. 26. Minnesota Statutes 2020, section 28A.10, is amended to read:
39.5 	28A.10 POSTING OF LICENSE; RULES.
39.6 	All such licenses shall be issued for a period of one year and shall be posted or displayed 
39.7 	in a conspicuous place at the place of business so licensed. Except as provided in sections
39.8 	28A.08, subdivision 4; 28A.09, subdivision 3;29.22, subdivision 4; and 31.39, all such 
39.9 	license fees and penalties collected by the commissioner shall be deposited into the state 
39.10 	treasury and credited to the general fund. The commissioner may adopt such rules in 
39.11 	conformity with law as the commissioner deems necessary to effectively and efficiently 
39.12 	carry out the provisions of sections 28A.01 to 28A.16.

39.13 	Sec. 27. Minnesota Statutes 2020, section 28A.21, subdivision 2, is amended to read:
39.14 		Subd. 2.Membership. (a) The Food Safety and Defense Task Force consists of:
39.15 	(1) the commissioner of agriculture or the commissioner's designee;
39.16 	(2) the commissioner of health or the commissioner's designee;
39.17 	(3) a representative of the United States Food and Drug Administration;
39.18 	(4) a representative of the United States Department of Agriculture;
39.19 	(5) a representative of the Agricultural Utilization Research Institute;
39.20 	(6) one member of the Minnesota Grocers Association;
39.21 	(7) one member from the University of Minnesota knowledgeable in food and food 
39.22 	safety issues; and
39.23 	(8) nine ten members appointed by the governor who are interested in food and food 
39.24 	safety, of whom:
39.25 	(i) two persons are health or food professionals;
39.26 	(ii) one person represents a statewide general farm organization;
39.27 	(iii) one person represents a local food inspection agency;
39.28 	(iv) one person represents a food-oriented consumer group; and
40.1 	(v) one person represents a Minnesota-based manufacturer of microbial detection 
40.2 	equipment and remediation products.; and
40.3 	(vi) one person is knowledgeable in cybersecurity.
40.4 	(b) Members shall serve without compensation. Members appointed by the governor 
40.5 	shall serve four-year terms.

40.6 	Sec. 28. Minnesota Statutes 2020, section 35.155, subdivision 10, is amended to read:
40.7 		Subd. 10.Mandatory registration. (a) A person may not possess live Cervidae in 
40.8 	Minnesota unless the person is registered with the Board of Animal Health and meets all 
40.9 	the requirements for farmed Cervidae under this section. Cervidae possessed in violation 
40.10 	of this subdivision may be seized and destroyed by the commissioner of natural resources.
40.11 	(b) A person whose registration is revoked by the board is ineligible for future registration 
40.12 	under this section unless the board determines that the person has undertaken measures that 
40.13 	make future escapes extremely unlikely.
40.14 	(c) The board must not approve a new registration under this subdivision for farmed 
40.15 	white-tailed deer. This paragraph does not prohibit a person holding a valid registration to 
40.16 	possess farmed white-tailed deer from selling or transferring the person's registration to a 
40.17 	family member who resides in this state and is related to the person within the third degree 
40.18 	of kindred according to the rules of civil law. A registration to possess farmed white-tailed 
40.19 	deer may be sold or transferred only once under this paragraph. Before the board approves 
40.20 	a sale or transfer under this paragraph, the board must verify that the farmed white-tailed 
40.21 	deer herd is free from chronic wasting disease and the person or eligible family member 
40.22 	must pay a onetime transfer fee of $500 to the board.

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

40.24 	Sec. 29. Minnesota Statutes 2020, section 41A.16, subdivision 1, is amended to read:
40.25 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
40.26 	source from Minnesota at least 80 percent of the biomass used to produce an advanced 
40.27 	biofuel, except that, if a facility is sited 50 miles or less from the state border, biomass used 
40.28 	to produce an advanced biofuel may be sourced from outside of Minnesota, but only if at 
40.29 	least 80 percent of the biomass is sourced from within a 100-mile radius of the facility or 
40.30 	from within Minnesota. The facility must be located in Minnesota, must begin production 
40.31 	at a specific location by June 30, 2025 December 31, 2022, and must not begin operating 
40.32 	above 23,750 MMbtu of quarterly advanced biofuel production before July 1, 2015. Eligible 
41.1 	facilities include existing companies and facilities that are adding advanced biofuel 
41.2 	production capacity, or retrofitting existing capacity, as well as new companies and facilities. 
41.3 	Production of conventional corn ethanol and conventional biodiesel is not eligible. Eligible 
41.4 	advanced biofuel facilities must produce at least 1,500 MMbtu of advanced biofuel quarterly.
41.5 	(b) No payments shall be made for advanced biofuel production that occurs after June 
41.6 	30, 2035, for those eligible biofuel producers under paragraph (a), provided that an eligible 
41.7 	producer may continue to receive payments equal to the difference between the claims for 
41.8 	payment filed under subdivision 6 and the pro rata amount received as of June 30, 2035, 
41.9 	until the full amounts of the original claims are paid.
41.10 	(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility 
41.11 	for payments under this section to an advanced biofuel facility at a different location.
41.12 	(d) A producer that ceases production for any reason is ineligible to receive payments 
41.13 	under this section until the producer resumes production.
41.14 	(e) Renewable chemical production for which payment has been received under section 
41.15 	41A.17, and biomass thermal production for which payment has been received under section 
41.16 	41A.18, are not eligible for payment under this section.
41.17 	(f) Biobutanol is eligible under this section.

41.18 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
41.19 	applies to claims filed after January 1, 2020.

41.20 	Sec. 30. Minnesota Statutes 2020, section 41A.16, subdivision 2, is amended to read:
41.21 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments to 
41.22 	eligible producers of advanced biofuel. The amount of the payment for each eligible 
41.23 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
41.24 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar, 
41.25 	starch, oil, or animal fat at a specific location for ten years after the start of production.
41.26 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year may 
41.27 	not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments 
41.28 	under this section to all eligible biofuel producers in a fiscal year may not exceed the amount 
41.29 	necessary for 17,100,000 MMbtu of biofuel production. If the total amount for which all 
41.30 	producers are eligible in a quarter exceeds the amount available for payments, the 
41.31 	commissioner shall make the payments on a pro rata basis. An eligible producer may reapply 
41.32 	for payment of the difference between the claim for payment filed under subdivision 6 and 
41.33 	the pro rata amount received:
42.1 	(1) until the full amount of the original claim is paid; and
42.2 	(2) subject to available money appropriated for the express purpose of paying claims 
42.3 	not otherwise paid.
42.4 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
42.5 	one advanced biofuel facility is considered a single eligible producer.

42.6 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
42.7 	applies to claims filed after January 1, 2020.

42.8 	Sec. 31. Minnesota Statutes 2020, section 41A.17, subdivision 1, is amended to read:
42.9 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
42.10 	source from Minnesota at least 80 percent of the biomass used to produce a renewable 
42.11 	chemical, except that, if a facility is sited 50 miles or less from the state border, biomass 
42.12 	used to produce a renewable chemical may be sourced from outside of Minnesota, but only 
42.13 	if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility 
42.14 	or from within Minnesota. The facility must be located in Minnesota, must begin production 
42.15 	at a specific location by June 30, 2025 December 31, 2022, and must not begin production 
42.16 	of 250,000 pounds of chemicals quarterly before January 1, 2015. Eligible facilities include 
42.17 	existing companies and facilities that are adding production capacity, or retrofitting existing 
42.18 	capacity, as well as new companies and facilities. Eligible renewable chemical facilities 
42.19 	must produce at least 250,000 pounds of renewable chemicals quarterly. Renewable 
42.20 	chemicals produced through processes that are fully commercial before January 1, 2000, 
42.21 	are not eligible.
42.22 	(b) No payments shall be made for renewable chemical production that occurs after June 
42.23 	30, 2035, for those eligible renewable chemical producers under paragraph (a), provided 
42.24 	that an eligible producer may continue to receive payments equal to the difference between 
42.25 	the claims for payment filed under subdivision 5 and the pro rata amount received as of 
42.26 	June 30, 2035, until the full amounts of the original claims are paid.
42.27 	(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility 
42.28 	for payments under this section to a renewable chemical facility at a different location.
42.29 	(d) A producer that ceases production for any reason is ineligible to receive payments 
42.30 	under this section until the producer resumes production.
42.31 	(e) Advanced biofuel production for which payment has been received under section 
42.32 	41A.16, and biomass thermal production for which payment has been received under section 
42.33 	41A.18, are not eligible for payment under this section.

43.1 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
43.2 	applies to claims filed after January 1, 2020.

43.3 	Sec. 32. Minnesota Statutes 2020, section 41A.17, subdivision 2, is amended to read:
43.4 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make payments 
43.5 	to eligible producers of renewable chemicals located in the state. The amount of the payment 
43.6 	for each producer's annual production is $0.03 per pound of sugar-derived renewable 
43.7 	chemical, $0.03 per pound of cellulosic sugar, starch, oil, or animal fat, and $0.06 per pound 
43.8 	of cellulosic-derived renewable chemical produced at a specific location for ten years after 
43.9 	the start of production.
43.10 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
43.11 	biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural 
43.12 	biomass that is derived from perennial crop or cover crop biomass.
43.13 	(c) Total payments under this section to an eligible renewable chemical producer in a 
43.14 	fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
43.15 	chemical production. Total payments under this section to all eligible renewable chemical 
43.16 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
43.17 	renewable chemical production. If the total amount for which all producers are eligible in 
43.18 	a quarter exceeds the amount available for payments, the commissioner shall make the 
43.19 	payments on a pro rata basis. An eligible producer may reapply for payment of the difference 
43.20 	between the claim for payment filed under subdivision 5 and the pro rata amount received:
43.21 	(1) until the full amount of the original claim is paid; and
43.22 	(2) subject to available money appropriated for the express purpose of paying claims 
43.23 	not otherwise paid.
43.24 	(d) An eligible facility may blend renewable chemicals with other chemicals that are 
43.25 	not renewable chemicals, but only the percentage attributable to renewable chemicals in 
43.26 	the blended product is eligible to receive payment.
43.27 	(e) For purposes of this section, an entity that holds a controlling interest in more than 
43.28 	one renewable chemical production facility is considered a single eligible producer.

43.29 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
43.30 	applies to claims filed after January 1, 2020.

44.1 	Sec. 33. Minnesota Statutes 2020, section 41A.18, subdivision 1, is amended to read:
44.2 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
44.3 	source from Minnesota at least 80 percent of the biomass used for biomass thermal 
44.4 	production, except that, if a facility is sited 50 miles or less from the state border, biomass 
44.5 	used for biomass thermal production may be sourced from outside of Minnesota, but only 
44.6 	if at least 80 percent of the biomass is sourced from within a 100-mile radius of the facility, 
44.7 	or from within Minnesota. Biomass must be from agricultural or forestry sources. The 
44.8 	facility must be located in Minnesota, must have begun production at a specific location by 
44.9 	June 30, 2025 December 31, 2022, and must not begin before July 1, 2015. Eligible facilities 
44.10 	include existing companies and facilities that are adding production capacity, or retrofitting 
44.11 	existing capacity, as well as new companies and facilities. Eligible biomass thermal 
44.12 	production facilities must produce at least 250 MMbtu of biomass thermal quarterly.
44.13 	(b) No payments shall be made for biomass thermal production that occurs after June 
44.14 	30, 2035, for those eligible biomass thermal producers under paragraph (a), provided that 
44.15 	an eligible producer may continue to receive payments equal to the difference between the 
44.16 	claims for payment filed under subdivision 5 and the pro rata amount received as of June 
44.17 	30, 2035, until the full amounts of the original claims are paid.
44.18 	(c) An eligible producer of biomass thermal production shall not transfer the producer's 
44.19 	eligibility for payments under this section to a biomass thermal production facility at a 
44.20 	different location.
44.21 	(d) A producer that ceases production for any reason is ineligible to receive payments 
44.22 	under this section until the producer resumes production.
44.23 	(e) Biofuel production for which payment has been received under section 41A.16, and 
44.24 	renewable chemical production for which payment has been received under section 41A.17, 
44.25 	are not eligible for payment under this section.

44.26 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
44.27 	applies to claims filed after January 1, 2020.

44.28 	Sec. 34. Minnesota Statutes 2020, section 41A.18, subdivision 2, is amended to read:
44.29 		Subd. 2.Payment amounts; bonus; limits; blending. (a) The commissioner shall make 
44.30 	payments to eligible producers of biomass thermal located in the state. The amount of the 
44.31 	payment for each producer's annual production is $5.00 per MMbtu of biomass thermal 
44.32 	production produced at a specific location for ten years after the start of production.
45.1 	(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass 
45.2 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
45.3 	biomass that is derived from perennial crop or cover crop biomass.
45.4 	(c) Total payments under this section to an eligible thermal producer in a fiscal year 
45.5 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
45.6 	payments under this section to all eligible thermal producers in a fiscal year may not exceed 
45.7 	the amount necessary for 150,000 MMbtu of total thermal production. If the total amount 
45.8 	for which all producers are eligible in a quarter exceeds the amount available for payments, 
45.9 	the commissioner shall make the payments on a pro rata basis. An eligible producer may 
45.10 	reapply for payment of the difference between the claim for payment filed under subdivision 
45.11 	5 and the pro rata amount received:
45.12 	(1) until the full amount of the original claim is paid; and
45.13 	(2) subject to available money appropriated for the express purpose of paying claims 
45.14 	not otherwise paid.
45.15 	(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass 
45.16 	thermal production facility, but only the percentage attributable to biomass meeting the 
45.17 	cellulosic forestry biomass requirements or agricultural cellulosic biomass sourcing plan is 
45.18 	eligible to receive payment.
45.19 	(e) When a facility is eligible due to adding production capacity or retrofitting existing 
45.20 	capacity, the entire amount of biomass meeting the cellulosic forestry biomass requirements 
45.21 	or agricultural cellulosic biomass sourcing plan is assumed to have been used for the biomass 
45.22 	thermal production from the added or retrofitted production capacity.
45.23 	(f) For purposes of this section, an entity that holds a controlling interest in more than 
45.24 	one biomass thermal production facility is considered a single eligible producer.

45.25 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2020, and 
45.26 	applies to claims filed after January 1, 2020.

45.27 	Sec. 35. Minnesota Statutes 2021 Supplement, section 41A.19, is amended to read:
45.28 	41A.19 REPORT; INCENTIVE PROGRAMS.
45.29 	By January 15 each year, the commissioner shall report on the incentive programs under 
45.30 	sections 41A.16, 41A.17, 41A.18, 41A.20, and 41A.21 to the legislative committees with 
45.31 	jurisdiction over environment policy and finance and agriculture policy and finance. The 
45.32 	report shall include information on production and incentive expenditures under the 
46.1 	programs., as well as the following information that the commissioner must require of each 
46.2 	producer who receives a payment during the reporting period:
46.3 	(1) the producer's business structure;
46.4 	(2) the name and address of the producer's parent company, if any;
46.5 	(3) a cumulative list of all financial assistance received from all grantors for the project;
46.6 	(4) goals for the number of jobs created and progress in achieving these goals, which 
46.7 	may include separate goals for the number of part-time or full-time jobs, or, in cases where 
46.8 	job loss is specific and demonstrable, goals for the number of jobs retained;
46.9 	(5) equity hiring goals and progress in achieving these goals;
46.10 	(6) wage goals and progress in achieving these goals for all jobs created or maintained 
46.11 	by the producer;
46.12 	(7) board member and executive compensation;
46.13 	(8) evidence of compliance with environmental permits;
46.14 	(9) the producer's intended and actual use of payments received from the commissioner; 
46.15 	and
46.16 	(10) if applicable, the latest financial audit opinion statement produced by a certified 
46.17 	public accountant in accordance with standards established by the American Institute of 
46.18 	Certified Public Accountants.

46.19 	Sec. 36. Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 2, is amended 
46.20 	to read:
46.21 		Subd. 2.Eligibility. (a) A facility eligible for payment under this section must source 
46.22 	at least 80 percent of its forest resources raw materials from Minnesota. The facility must 
46.23 	be located in Minnesota; must begin construction activities by December 31, 2022, for a 
46.24 	specific location; must begin production have produced at least one OSB square foot on a 
46.25 	3/8-inch nominal basis at a specific location by June 30, 2025; and must not begin operating 
46.26 	before January 1, 2022. Eligible facilities must be new OSB construction sites with total 
46.27 	capital investment in excess of $250,000,000. Eligible OSB production facilities must 
46.28 	produce at least 200,000,000 50,000,000 OSB square feet on a 3/8-inch nominal basis of 
46.29 	OSB each year quarter. At least one product produced at the facility should be a wood-based 
46.30 	wall or roof structural sheathing panel that has an integrated, cellulose-based paper overlay 
46.31 	that serves as a water resistive barrier.
47.1 	(b) No payments shall be made for OSB production that occurs after June 30, 2036, for 
47.2 	those eligible producers under paragraph (a).
47.3 	(c) An eligible producer of OSB shall not transfer the producer's eligibility for payments 
47.4 	under this section to a facility at a different location.
47.5 	(d) A producer that ceases production for any reason is ineligible to receive payments 
47.6 	under this section until the producer resumes production.

47.7 	Sec. 37. Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 6, is amended 
47.8 	to read:
47.9 		Subd. 6.Appropriation. (a) In fiscal year 2025, a sum sufficient to make the payments 
47.10 	required by this section, not to exceed $1,500,000, is appropriated from the general fund to 
47.11 	the commissioner. This is a onetime appropriation.
47.12 	(b) From fiscal year 2026 through fiscal year 2034, a sum sufficient to make the payments 
47.13 	required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated 
47.14 	from the general fund to the commissioner.
47.15 	(c) The commissioner may use up to 6.5 percent of this appropriation for costs incurred 
47.16 	to administer the program.

47.17 	Sec. 38. Minnesota Statutes 2020, section 41B.047, subdivision 3, is amended to read:
47.18 		Subd. 3.Eligibility. To be eligible for this program, a borrower must:
47.19 	(1) meet the requirements of section 41B.03, subdivision 1;
47.20 	(2) certify that the damage or loss was (i) sustained within a county that was the subject 
47.21 	of a state or federal disaster declaration; (ii) due to the confirmed presence of a highly 
47.22 	contagious animal disease in Minnesota; (iii) due to an infectious human disease for which 
47.23 	the governor has declared a peacetime emergency; or (iv) due to an emergency as determined 
47.24 	by the authority;
47.25 	(3) demonstrate an ability to repay the loan; and
47.26 	(4) have received at least 50 20 percent of average annual gross income from farming 
47.27 	for in the past three years year.

48.1 	Sec. 39. Minnesota Statutes 2020, section 223.17, subdivision 4, is amended to read:
48.2 		Subd. 4.Bond. (a) Except as provided in paragraphs (c) to (e), before a grain buyer's 
48.3 	license is issued, the applicant for the license must file with the commissioner a bond in a 
48.4 	penal sum prescribed by the commissioner but not less than the following amounts:
48.5 	(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
48.6 	(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but 
48.7 	not more than $750,000;
48.8 	(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but 
48.9 	not more than $1,500,000;
48.10 	(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000 
48.11 	but not more than $3,000,000;
48.12 	(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000 
48.13 	but not more than $6,000,000;
48.14 	(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000 
48.15 	but not more than $12,000,000;
48.16 	(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000 
48.17 	but not more than $24,000,000; and
48.18 	(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
48.19 	(b) The amount of the bond shall be based on the most recent gross annual grain purchase 
48.20 	report of the grain buyer.
48.21 	(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the 
48.22 	commissioner. This bond shall remain in effect for the first year of the license. Thereafter, 
48.23 	the licensee shall comply with the applicable bonding requirements contained in paragraph 
48.24 	(a), clauses (1) to (8).
48.25 	(d) In lieu of the bond required by this subdivision the applicant may deposit with the 
48.26 	commissioner of management and budget an irrevocable bank letter of credit as defined in 
48.27 	section 336.5-102, in the same amount as would be required for a bond.
48.28 	(e) A grain buyer who purchases grain immediately upon delivery solely with cash; a 
48.29 	certified check; a cashier's check; or a postal, bank, or express money order is exempt from 
48.30 	this subdivision if the grain buyer's gross annual purchases are $100,000 $250,000 or less.
49.1 	(f) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
49.2 	90 days' written notice of the bond's termination date to the licensee and the commissioner.

49.3 	Sec. 40. Minnesota Statutes 2020, section 223.17, subdivision 6, is amended to read:
49.4 		Subd. 6.Financial statements. (a) Except as allowed in paragraph (c), a grain buyer 
49.5 	licensed under this chapter must annually submit to the commissioner a financial statement 
49.6 	prepared in accordance with generally accepted accounting principles. The annual financial 
49.7 	statement required under this subdivision must also:
49.8 	(1) include, but not be limited to the following:
49.9 	(i) a balance sheet;
49.10 	(ii) a statement of income (profit and loss);
49.11 	(iii) a statement of retained earnings;
49.12 	(iv) a statement of changes in financial position; and
49.13 	(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the 
49.14 	grain buyer;
49.15 	(2) be accompanied by a compilation report of the financial statement that is prepared 
49.16 	by a grain commission firm or a management firm approved by the commissioner or by an 
49.17 	independent public accountant, in accordance with standards established by the American 
49.18 	Institute of Certified Public Accountants;
49.19 	(3) be accompanied by a certification by the chief executive officer or the chief executive 
49.20 	officer's designee of the licensee, and where applicable, all members of the governing board 
49.21 	of directors under penalty of perjury, that the financial statement accurately reflects the 
49.22 	financial condition of the licensee for the period specified in the statement;
49.23 	(4) for grain buyers purchasing under $5,000,000 $7,500,000 of grain annually, be 
49.24 	reviewed by a certified public accountant in accordance with standards established by the 
49.25 	American Institute of Certified Public Accountants, and must show that the financial 
49.26 	statements are free from material misstatements. The grain buyer must post the review 
49.27 	required under this clause on a website maintained by the buyer and available to the public; 
49.28 	and
49.29 	(5) for grain buyers purchasing $5,000,000 $7,500,000 or more of grain annually, be 
49.30 	audited by a certified public accountant in accordance with standards established by the 
49.31 	American Institute of Certified Public Accountants and must include an opinion statement 
49.32 	from the certified public accountant. The grain buyer must post the audit report and opinion 
50.1 	statement required under this clause on a website maintained by the buyer and available to 
50.2 	the public.
50.3 	(b) Only one financial statement must be filed for a chain of warehouses owned or 
50.4 	operated as a single business entity, unless otherwise required by the commissioner. All 
50.5 	financial statements filed with the commissioner are private or nonpublic data as provided 
50.6 	in section 13.02.
50.7 	(c) A grain buyer who purchases grain immediately upon delivery solely with cash; a 
50.8 	certified check; a cashier's check; or a postal, bank, or express money order is exempt from 
50.9 	this subdivision if the grain buyer's gross annual purchases are $100,000 $250,000 or less.
50.10 	(d) The commissioner shall annually provide information on a person's fiduciary duties 
50.11 	to each licensee. To the extent practicable, the commissioner must direct each licensee to 
50.12 	provide this information to all persons required to certify the licensee's financial statement 
50.13 	under paragraph (a), clause (3).

50.14 	Sec. 41. REVISOR INSTRUCTION.
 50.15 	The revisor of statutes must renumber the subdivisions in Minnesota Statutes, section 
50.16 	18B.01, so the defined terms are in alphabetical order and adjust any cross-references 
50.17 	accordingly.