HF 1704

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/13/2025 03:44 p.m.

A bill for an act
relating to state government; establishing a budget for the Department of
Agriculture, the Board of Animal Health, the Agricultural Utilization Research
Institute, and the Office of Broadband Development; making policy and technical
changes to agricultural provisions; making policy and technical changes to
broadband provisions; authorizing rulemaking; requiring reports; appropriating
money; amending Minnesota Statutes 2024, sections 17.133, subdivision 2;
18C.005, by adding a subdivision; 41A.16, subdivision 7; 326B.198, subdivisions
2, 3; proposing coding for new law in Minnesota Statutes, chapter 18C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 62,388,000 new text end

new text begin $ new text end

new text begin 59,032,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 61,989,000 new text end	new text begin 58,633,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 22,333,000 new text end	new text begin 22,836,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin (a) $399,000 the first year and $399,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.
new text end

new text begin (b) $639,000 the first year and $639,000 the
second year are for the soil health financial
assistance program under Minnesota Statutes,
section 17.134. The commissioner may award
no more than $50,000 of the appropriation
each year to a single recipient. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
Appropriations encumbered under contract on
or before June 30, 2027, for soil health
financial assistance grants are available until
June 30, 2029.
new text end

new text begin (c) $350,000 the first year and $350,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2025. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock. If
the commissioner receives federal money to
pay claims for destroyed or crippled livestock,
an equivalent amount of this appropriation
may be used to reimburse nonlethal prevention
methods performed by federal wildlife services
staff.
new text end

new text begin (d) $310,000 the first year and $310,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $10,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims, as well as for costs associated with
training for approved agents. The
commissioner may use up to $40,000 of the
appropriation each year for grants to producers
for measures to protect stored crops from elk
damage. If the commissioner determines that
claims made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
new text end

new text begin (e) $825,000 the first year and $825,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory.
new text end

new text begin (f) $75,000 the first year and $75,000 the
second year are to support a meat processing
liaison position to assist new or existing meat
and poultry processing operations in getting
started, expanding, growing, or transitioning
into new business models.
new text end

new text begin (g) $420,000 the first year and $923,000 the
second year are for additional funding to
maintain the current level of service delivery
for programs under this subdivision.
new text end

new text begin (h) $1,000,000 the first year and $1,000,000
the second year are for grants to counties to
support county agricultural inspectors under
section 13. These are onetime appropriations.
The commissioner of agriculture may use up
to three percent of the appropriation each year
for administration.
new text end

new text begin (i) $850,000 the first year and $850,000 the
second year are for additional meat and poultry
inspection services. The commissioner is
encouraged to seek inspection waivers,
matching federal money, and offer more online
inspections for the purposes of this paragraph.
new text end

new text begin (j) $1,250,000 the first year and $1,250,000
the second year are appropriated to establish
and administer the biofertilizer innovation and
efficiency program. The commissioner may
use up to 6.5 percent of this appropriation for
costs incurred to administer the program.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance at the end
of fiscal year 2026 does not cancel and is
available until June 30, 2027.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 24,676,000 new text end

new text begin 24,676,000 new text end

new text begin (a) $150,000 the first year and $150,000 the
second year are to expand international trade
opportunities and markets for Minnesota
agricultural products.
new text end

new text begin (b) $634,000 the first year and $634,000 the
second year are for the continuation of the
dairy development and profitability
enhancement programs, including dairy
profitability teams and dairy business planning
grants under Minnesota Statutes, section
32D.30.
new text end

new text begin (c) The commissioner may use money
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in Minnesota for the
costs of organic certification. The
commissioner may allocate these funds for
assistance to persons transitioning from
conventional to organic agriculture.
new text end

new text begin (d) $100,000 the first year and $100,000 the
second year are for mental health outreach and
support to farmers, ranchers, farm workers
and employees, and others in the agricultural
profession and for farm and farm worker
safety grant and outreach programs under
Minnesota Statutes, section 17.1195. Mental
health outreach and support may include a
24-hour hotline, stigma reduction, and
education. Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year. These
are onetime appropriations.
new text end

new text begin (e) $20,082,000 the first year and $20,082,000
the second year are for the agricultural growth,
research, and innovation program under
Minnesota Statutes, section 41A.12. Except
as provided in paragraph (f), the commissioner
may allocate this appropriation each year
among the following areas: (1) facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; (2) assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; (3) facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; (4) sustainable agriculture
on-farm research and demonstration; (5) the
development or expansion of food hubs and
other alternative community-based food
distribution systems; (6) enhancing renewable
energy infrastructure and use; (7) crop
research, including basic and applied turf seed
research; (8) Farm Business Management
tuition assistance; (9) supporting the
commercialization of an innovative material
additive utilizing agricultural coproducts or
waste streams to produce fiber-based barrier
packaging to reduce perfluoroalkyl and
polyfluoroakyl substances (PFAS) and plastics
in packaging products; and (10) Good
Agricultural Practices and Good Handling
Practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin (f) Of the amount appropriated for the
agricultural growth, research, and innovation
program in paragraph (e):
new text end

new text begin (1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;
new text end

new text begin (2) $3,000,000 the first year and $3,000,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2027, and the second year appropriation is
available until June 30, 2028. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph or paragraph (e);
new text end

new text begin (3) $4,500,000 the first year and $4,500,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 20 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed $200,000 per station.
The commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority- or female-owned businesses. The
base under this clause is $3,000,000 for fiscal
year 2028 and each year thereafter;
new text end

new text begin (4) $1,250,000 the first year and $1,250,000
the second year are for grants to facilitate the
start-up, modernization, or expansion of meat,
poultry, egg, and milk processing facilities. A
grant award under this clause must not exceed
$200,000. Any unencumbered balance at the
end of the second year does not cancel until
June 30, 2028, and may be used for other
purposes under this paragraph or paragraph
(e). The base under this clause is $250,000 in
fiscal year 2028 and each year thereafter;
new text end

new text begin (5) up to $1,294,000 the first year and up to
$1,294,000 the second year are for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
each year is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients;
new text end

new text begin (6) up to $2,000,000 the first year and up to
$2,000,000 the second year are for urban
youth agricultural education or urban
agriculture community development;
new text end

new text begin (7) up to $1,000,000 the first year and up to
$1,000,000 the second year are for the good
food access program under Minnesota
Statutes, section 17.1017; and
new text end

new text begin (8) $200,000 the first year and $200,000 the
second year are for cooperative development
grants.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and
appropriations encumbered under contract on
or before June 30, 2027, for agricultural
growth, research, and innovation grants are
available until June 30, 2028.
new text end

new text begin (g) The base for the agricultural growth,
research, and innovation program is
$17,582,000 in fiscal year 2028 and each year
thereafter.
new text end

new text begin Subd. 4. new text end new text begin Administration and Financial Assistance new text end

new text begin 14,980,000 new text end

new text begin 11,121,000 new text end

new text begin (a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
must be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.
new text end

new text begin (b) $500,000 the first year and $500,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin (c) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation.
new text end

new text begin (d) $36,000 the first year is for a grant to the
Minnesota Livestock Breeders Association.
new text end

new text begin (e) $120,000 the first year is for a grant to the
Northern Crops Institute and may be used to
purchase equipment.
new text end

new text begin (f) $68,000 the first year is for a grant to the
Minnesota State Horticultural Society.
new text end

new text begin (g) $50,000 the first year is for a grant to the
Center for Rural Policy and Development.
new text end

new text begin (h) $150,000 the first year is for grants to the
Minnesota Turf Seed Council for basic and
applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The
Minnesota Turf Seed Council may subcontract
with a qualified third party for some or all of
the basic or applied research. The Minnesota
Turf Seed Council must prepare a report
outlining the use of the grant money and
related accomplishments. No later than
January 15, 2027, the council must submit the
report to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
finance and policy.
new text end

new text begin (i) $400,000 the first year is for grants to
GreenSeam for assistance to
agriculture-related businesses to support
business retention and development, business
attraction and creation, talent development
and attraction, and regional branding and
promotion. No later than December 1, 2026,
and December 1, 2027, GreenSeam must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.
new text end

new text begin (j) $1,250,000 the first year and $1,250,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following purposes:
new text end

new text begin (1) at least $850,000 each year must be
allocated to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased with
grant proceeds must be acquired from
Minnesota milk processors and based on
low-cost bids. The milk must be allocated to
each Feeding America food bank serving
Minnesota according to the formula used in
the distribution of United States Department
of Agriculture commodities under the
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available the second year;
new text end

new text begin (2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or be
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and
new text end

new text begin (3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased using grant proceeds must
be acquired from Minnesota processors and
producers.
new text end

new text begin Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of money, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.
new text end

new text begin (k) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.
new text end

new text begin (l) $750,000 the first year and $750,000 the
second year are for the Emerging Farmers
Office to provide services to beginning and
emerging farmers to increase connections
between farmers and market opportunities
throughout Minnesota. This appropriation may
be used for grants, translation services,
training programs, or other purposes in line
with the recommendations of the emerging
farmer working group established under
Minnesota Statutes, section 17.055,
subdivision 1.
new text end

new text begin (m) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $50,000 the first year and
$50,000 the second year are for the
continuation of the farmland transition
programs and may be used for grants to
farmland access teams to provide technical
assistance to potential beginning farmers.
Farmland access teams must assist existing
farmers and beginning farmers with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.
new text end

new text begin (n) $260,000 the first year and $260,000 the
second year are for a pass-through grant to
Region Five Development Commission to
provide, in collaboration with Farm Business
Management, statewide mental health
counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 6.5
percent of the grant awarded under this
paragraph for administration.
new text end

new text begin (o) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.
new text end

new text begin (p) $137,000 the first year and $204,000 the
second year are to maintain the current level
of service delivery.
new text end

new text begin (q) $1,000,000 the first year and $1,000,000
the second year are to award and administer
down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to eligible applicants with no
more than $100,000 in annual gross farm
product sales and eligible applicants who are
producers of industrial hemp, cannabis, or one
or more of the following specialty crops as
defined by the United States Department of
Agriculture for purposes of the specialty crop
block grant program: fruits and vegetables,
tree nuts, dried fruits, medicinal plants,
culinary herbs and spices, horticulture crops,
floriculture crops, and nursery crops.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance at the end
of the first year does not cancel and is
available in the second year and appropriations
encumbered under contract by June 30, 2027,
are available until June 30, 2029.
new text end

new text begin (r) $3,100,000 the first year is for a grant to
First District Association for a wastewater
pretreatment project.
new text end

new text begin (s) The commissioner shall continue to
increase connections between ethnic minority
and immigrant farmers to farming
opportunities and farming programs
throughout Minnesota.
new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 6,767,000 new text end

new text begin $ new text end

new text begin 6,767,000 new text end

new text begin (a) $200,000 the first year and $200,000 the
second year are for agricultural emergency
preparedness and response.
new text end

new text begin (b) $357,000 the first year and $357,000 the
second year are to maintain the current level
of service delivery.
new text end

Sec. 4. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 4,388,000 new text end

new text begin $ new text end

new text begin 4,434,000 new text end

new text begin $45,000 the first year and $91,000 the second
year are to maintain the current level of service
delivery.
new text end

Sec. 5. new text begin TRANSFERS.
new text end

new text begin (a) $100,000 in fiscal year 2026 and $100,000 in fiscal year 2027 are transferred from
the general fund to the pollinator research account established under Minnesota Statutes,
section 18B.051. This transfer is $100,000 in fiscal year 2028 and each year thereafter.
new text end

new text begin (b) $186,000 in fiscal year 2026 and $186,000 in fiscal year 2027 are transferred from
the general fund to the Minnesota grown account and may be used as grants for Minnesota
Grown promotion under Minnesota Statutes, section 17.102. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations encumbered under contract on or before June
30, 2027, for Minnesota Grown grants in this paragraph are available until June 30, 2029.
This transfer is $186,000 in fiscal year 2028 and each year thereafter.
new text end

new text begin (c) $10,852,000 in fiscal year 2026 and $10,852,000 in fiscal year 2027 are transferred
from the general fund to the agriculture research, education, extension, and technology
transfer account under Minnesota Statutes, section 41A.14, subdivision 3, and the
commissioner shall transfer funds each year to the Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes, section 41A.14, subdivision 1, clauses (1)
and (2), and must supplement and not supplant existing sources and levels of funding. The
commissioner may use up to one percent of this transfer for costs incurred to administer
this program.
new text end

new text begin (d) Of the amount transferred for the agriculture research, education, extension, and
technology transfer grant program under Minnesota Statutes, section 41A.14:
new text end

new text begin (1) $600,000 in fiscal year 2026 and $600,000 in fiscal year 2027 are for the Minnesota
Agricultural Experiment Station's agriculture rapid response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);
new text end

new text begin (2) up to $1,000,000 in fiscal year 2026 and up to $1,000,000 in fiscal year 2027 are for
research on avian influenza, salmonella, and other turkey-related diseases and disease
prevention measures;
new text end

new text begin (3) $2,750,000 in fiscal year 2026 and $2,750,000 in fiscal year 2027 are for grants to
the Minnesota Agricultural Educational Leadership Council to enhance agricultural education
with priority given to Farm Business Management challenge grants;
new text end

new text begin (4) $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are for potato research;
new text end

new text begin (5) $802,000 in fiscal year 2026 and $802,000 in fiscal year 2027 are to fund the Forever
Green Initiative and protect Minnesota's natural resources while increasing the efficiency,
profitability, and productivity of Minnesota farmers by incorporating perennial and winter
annual crops into existing agricultural practices. By February 1 each year, the dean of the
College of Food, Agricultural, and Natural Resources Sciences must submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
agriculture finance and policy and higher education detailing uses of the money in this
paragraph, including administrative costs, and the achievements this money contributed to;
new text end

new text begin (6) $200,000 in fiscal year 2026 and $200,000 in fiscal year 2027 are for research on
natural strands of wild rice; and
new text end

new text begin (7) $250,000 in fiscal year 2026 and $250,000 in fiscal year 2027 are for the cultivated
wild rice forward selection project at the North Central Research and Outreach Center,
including a tenure track or research associate plant scientist.
new text end

new text begin The transfer for the agricultural research, education, extension, and technology transfer
program is $10,852,000 in fiscal year 2028 and each year thereafter.
new text end

new text begin (e) $1,425,000 in fiscal year 2026 and $1,425,000 in fiscal year 2027 are transferred
from the general fund to the agricultural and environmental revolving loan account
established under Minnesota Statutes, section 17.117, subdivision 5, for low-interest loans
under Minnesota Statutes, section 17.117. This transfer is $1,425,000 in fiscal year 2028
and each year thereafter.
new text end

Sec. 6. new text begin CANCELLATION.
new text end

new text begin $3,000,000 of the fiscal year 2024 general fund appropriation for grants to cooperatives
to invest in green fertilizer production facilities under Laws 2023, chapter 60, article 10,
section 4, is canceled.
new text end

Sec. 7. new text begin FISCAL YEAR 2025 APPROPRIATIONS.
new text end

new text begin (a) $125,000 in fiscal year 2025 is appropriated to the commissioner of agriculture for
compensation for destroyed or crippled livestock under Minnesota Statutes, section 3.737.
The commissioner of agriculture may use up to $5,000 to reimburse expenses incurred by
university extension educators to provide fair market values of destroyed or crippled
livestock. If the commissioner of agriculture receives federal funding to pay claims for
destroyed or crippled livestock, an equivalent amount of this appropriation may be used to
reimburse nonlethal prevention methods performed by federal wildlife services staff. This
is a onetime appropriation and is available until June 30, 2026.
new text end

new text begin (b) $125,000 in fiscal year 2025 is appropriated to the commissioner of agriculture for
compensation for crop damage under Minnesota Statutes, section 3.7371. The commissioner
of agriculture may use up to $10,000 of the appropriation to reimburse expenses incurred
by the commissioner of agriculture or the commissioner of agriculture's approved agent to
investigate and resolve claims, as well as for costs associated with training for approved
agents. The commissioner of agriculture may use up to $40,000 of the appropriation to make
grants to producers for measures to protect stored crops from elk damage. If the commissioner
of agriculture determines that claims made under Minnesota Statutes, section 3.737 or
3.7371 are unusually high, amounts appropriated for either program may be transferred to
the appropriation for the other program. This is a onetime appropriation and is available
until June 30, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin FISCAL YEAR 2025 TRANSFER.
new text end

new text begin $1,500,000 in fiscal year 2025 is transferred from the general fund to the agricultural
emergency account established under Minnesota Statutes, section 17.041.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2024, section 17.133, subdivision 2, is amended to read:

Subd. 2.

Grants.

The commissioner may award farm down payment assistance grants
of up to $15,000 per eligible farmer new text begin purchasing less than 80 acres of farmland, and up to
$30,000 per eligible farmer purchasing 80 acres or more of farmland new text end . Each award must be
matched with at least $8,000 of other funding. Grants under this subdivision may be awarded
by a randomized selection process after applications are collected over a period of no less
than 30 calendar days. An eligible farmer must commit to own and farm the land purchased
with assistance provided under this section for at least five years. For each year that a grant
recipient does not own and farm the land during the five-year period, the grant recipient
must pay a penalty to the commissioner equal to 20 percent of the grant amount.

Sec. 10.

Minnesota Statutes 2024, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Commercial nitrogen fertilizer. new text end

new text begin "Commercial nitrogen fertilizer" means a
fertilizer with a nitrogen content that is not less than 25 percent.
new text end

Sec. 11.

new text begin [18C.113] BIOFERTILIZER INNOVATION AND EFFICIENCY
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin In consultation with the commissioner of natural
resources and soil and water conservation districts in Minnesota, the commissioner of
agriculture must develop and administer a biofertilizer innovation and efficiency program
to address water quality by incentivizing Minnesota farmers to improve nitrogen management
and incorporate innovative technologies into the farmers' crop nutrient management plans.
The commissioner must determine which products qualify for the program, including soil
amendments, fertilizers with nitrogen fixing properties, biological sources of nitrogen, and
other biofertilizers.
new text end

new text begin Subd. 2. new text end

new text begin Payments to qualified farmers. new text end

new text begin (a) In consultation with farmers and the
fertilizer industry, the commissioner must establish a per-acre payment rate, not less than
$5 per acre, for payments provided to a qualifying farmer. The program must provide an
annual per-acre incentive payment to a qualifying farmer who verifies through documentation
that the farmer has reduced commercial nitrogen fertilizer rates by using a qualifying product
in the farmer's crop nutrient management plans by the lesser of:
new text end

new text begin (1) 15 percent; or
new text end

new text begin (2) 30 pounds per acre.
new text end

new text begin (b) The commissioner must annually review and may adjust the per-acre payment rate
based on inflation and emerging fertilizer technology.
new text end

new text begin Subd. 3. new text end

new text begin Qualifications. new text end

new text begin To qualify for the biofertilizer water preservation program, a
farmer must:
new text end

new text begin (1) be a Minnesota resident operating farmland located in Minnesota;
new text end

new text begin (2) submit documentation to the commissioner, including a crop nutrient management
plan that will reduce the use of commercial nitrogen fertilizers at the reduction rate required
under subdivision 2 by using a qualifying product determined by the commissioner under
subdivision 1; and
new text end

new text begin (3) enroll a minimum of 40 eligible acres.
new text end

new text begin Subd. 4. new text end

new text begin Review required. new text end

new text begin Every two years, the commissioner must review:
new text end

new text begin (1) the program's required minimum commercial nitrogen fertilizer reduction rate under
subdivision 2 and determine whether an increase in the minimum reduction rate is necessary;
and
new text end

new text begin (2) additional qualifying products that may be used by farmers in the program. When
making this determination, the commissioner must consider newly available technologies
and products capable of reducing commercial nitrogen fertilizer applications.
new text end

new text begin Subd. 5. new text end

new text begin Rulemaking required. new text end

new text begin The commissioner must adopt rules using rulemaking
authority under section 18C.121, subdivision 1, to implement this section.
new text end

Sec. 12.

Minnesota Statutes 2024, section 41A.16, subdivision 7, is amended to read:

Subd. 7.

Eligibility for participants after April 1, 2023.

(a) A facility eligible for
payment under this section must source at least 80 percent raw materials from Minnesota.
If a facility is sited 50 miles or less from the state border, raw materials may be sourced
from within a 100-mile radius. Raw materials must be from agricultural or forestry sources
or from solid waste. The facility must be located in Minnesota, must begin production at a
specific location after April 1, 2023, and before June 30, 2025, and must not begin operating
above 23,750 MMbtu of quarterly new text begin advanced new text end biofuel production before July 1, 2015. Eligible
facilities include existing companies and facilities that are adding advanced biofuel
production capacity, or retrofitting existing capacity, as well as new companies and facilities.
Production of conventional corn ethanol and conventional biodiesel is not eligible. Eligible
advanced biofuel facilities must produce at least 23,750 MMbtu of biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 13. new text begin COUNTY AGRICULTURAL INSPECTORS.
new text end

new text begin (a) To be eligible for grants under this section, a county must employ a county agricultural
inspector or a county-designated employee who:
new text end

new text begin (1) has attended training for new county agricultural inspectors offered by the
commissioner of agriculture;
new text end

new text begin (2) coordinates with the commissioner of agriculture to review applicable laws and
enforcement procedures;
new text end

new text begin (3) compiles and submits to the commissioner of agriculture local weed inspector annual
report data;
new text end

new text begin (4) conducts an annual meeting and training for local weed inspectors; and
new text end

new text begin (5) assists the commissioner of agriculture with control programs and other agricultural
programs when requested under Minnesota Statutes, section 18.81, subdivision 1b, as
directed by the county board.
new text end

new text begin (b) County agricultural inspectors and county-designated employees must annually
submit an application, on a form approved by the commissioner of agriculture, to be eligible
for funding during a given year. The commissioner of agriculture must equally divide
available grant money among eligible counties.
new text end

ARTICLE 2

BROADBAND

Section 1. new text begin BROADBAND DEVELOPMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 1,001,000 new text end

new text begin $ new text end

new text begin 1,001,000 new text end

new text begin $1,001,000 each year is for the Office of
Broadband Development.
new text end

Sec. 3.

Minnesota Statutes 2024, section 326B.198, subdivision 2, is amended to read:

Subd. 2.

Installation requirements.

(a) The installation of underground
telecommunications infrastructure that is located within ten feet of existing underground
utilities or that crosses the existing underground utilities must be performed by
safety-qualified underground telecommunications installers as follows:

(1) the location of existing utilities by hand- or hydro-excavation or other accepted
methods must be performed by a safety-qualified underground telecommunications installer; new text begin
and
new text end

(2) where telecommunications infrastructure is installed by means of directional drilling,
the monitoring of the location and depth of the drill head must be performed by a
safety-qualified underground telecommunications installer deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) no fewer than two safety-qualified underground telecommunications installers must
be present at all times at any location where telecommunications infrastructure is being
installed by means of directional drilling.
deleted text end

deleted text begin (b) Beginning July 1, 2025, all installations of underground telecommunications
infrastructure subject to this subdivision within the seven-county metropolitan area must
be performed by safety-qualified underground telecommunications installers that meet the
deleted text end deleted text begin requirements of this subdivision.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Beginning January 1, 2026, all installations of underground telecommunications
infrastructure subject to this subdivision within this state must be performed by
safety-qualified underground telecommunications installers that meet the requirements of
this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 326B.198, subdivision 3, is amended to read:

Subd. 3.

Certification Standards.

(a) The commissioner of labor and industry, in
consultation with the Office of Broadband, shall approve standards for a safety-qualified
underground telecommunications installer certification program that requires a person to:

(1) complete a deleted text begin 40-hour deleted text end new text begin ten-hour new text end initial course that includes classroom and hands-on
instruction covering proper work procedures for safe installation of underground utilities,
including:

(i) regulations applicable to excavation near existing utilities;

(ii) identification, location, and verification of utility lines using hand- or
hydro-excavation or other accepted methods;

(iii) response to line strike incidents;

(iv) traffic control procedures;

(v) use of a tracking device to safely guide directional drill equipment along a drill path;
and

(vi) avoidance and mitigation of safety hazards posed by underground utility installation
projects;

(2) demonstrate knowledge of the course material by successfully completing an
examination approved by the commissioner; and

(3) complete a four-hour refresher course within three years of completing the original
course and every three years thereafter in order to maintain certification.

(b) The commissioner must develop an approval process for training providers under
this subdivision and may suspend or revoke the approval of any training provider that fails
to demonstrate consistent delivery of approved curriculum or success in preparing participants
to complete the examination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end