HF 14

as introduced - 89th Legislature, 2015 1st Special Session (2015 - 2015) Posted on 06/15/2015 08:38am

A bill for an act
relating to state government; appropriating money for agriculture; making policy
and technical changes to various agricultural related provisions, including
provisions related to pesticides, plant protection, fertilizers, nursery law,
seeds, dairy, food handlers, food, farmland, farming, and loans; authorizing
the Industrial Hemp Development Act; modifying license exclusions for the
direct sale of certain prepared food; establishing the agriculture research,
education, extension, and technology transfer grant program; providing incentive
payments; providing a vocational training pilot program; establishing the farm
opportunity loan program; requiring studies and reports; creating accounts;
modifying certain grant, permit, and fee provisions; requiring rulemaking;
providing criminal penalties; amending Minnesota Statutes 2014, sections
3.737, by adding a subdivision; 13.643, subdivision 1; 18B.01, subdivisions
28, 29; 18B.05, subdivision 1; 18B.32, subdivision 1; 18B.33, subdivision 1;
18B.34, subdivision 1; 18C.425, subdivision 6; 18C.70, subdivision 2; 18G.10,
subdivisions 3, 4, 5; 18H.02, subdivision 20, by adding subdivisions; 18H.06,
subdivision 2; 18H.07; 18H.17; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2,
3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09;
18J.11, subdivision 1, by adding a subdivision; 21.89, subdivision 2; 21.891,
subdivisions 2, 5; 25.341, subdivision 2; 25.39, subdivisions 1, 1a; 32.075;
32.105; 41B.03, subdivision 6, by adding a subdivision; 41B.04, subdivision 17;
41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046, subdivision 5;
41B.047, subdivisions 1, as amended, 3, as amended, 4, as amended; 41B.048,
subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056,
subdivision 2; 41B.06; 135A.52, by adding a subdivision; 375.30, subdivision 2;
500.24, subdivision 4; 583.215; Laws 2014, chapter 312, article 12, section 3;
proposing coding for new law in Minnesota Statutes, chapters 18C; 28A; 41A;
41B; proposing coding for new law as Minnesota Statutes, chapter 18K; repealing
Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9, 10; 116V.03.

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

ARTICLE 1

AGRICULTURE 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 "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.
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 2016 new text end		new text begin 2017 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 41,485,000 new text end

new text begin $ new text end

new text begin 45,537,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 40,907,000 new text end	new text begin 44,959,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end
new text begin Agricultural new text end	new text begin 190,000 new text end	new text begin 190,000 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 16,452,000 new text end

new text begin 16,402,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 15,874,000 new text end	new text begin 15,824,000 new text end
new text begin Agricultural new text end	new text begin 190,000 new text end	new text begin 190,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin $25,000 the first year and $25,000 the second
year are to develop and maintain cottage
food license exemption outreach and training
materials.
new text end

new text begin $75,000 the first year is for the commissioner,
in consultation with the Northeast Regional
Corrections Center and the United Food
and Commercial Workers, to study and
provide recommendations for upgrading the
existing processing facility on the campus of
the Northeast Regional Corrections Center
into a USDA-certified food processing
facility. The commissioner shall report these
recommendations to the chairs of the house
of representatives and senate committees
with jurisdiction over agriculture finance by
March 15, 2016.
new text end

new text begin $75,000 the second year is for a coordinator
for the correctional facility vocational
training pilot program.
new text end

new text begin $388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
new text end

new text begin $225,000 the first year and $175,000
the second year are for compensation
for destroyed or crippled animals under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate
for animals that were destroyed or crippled
during fiscal years 2014 and 2015. If the
amount in the first year is insufficient, the
amount in the second year is available in the
first year.
new text end

new text begin $125,000 the first year and $125,000 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.
new text end

new text begin 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 $70,000 the first year and $70,000 the second
year are for additional cannery inspections.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for increased oversight of
delegated local health boards.
new text end

new text begin $100,000 the first year and $100,000 the
second year are to decrease the turnaround
time for retail food handler plan reviews.
new text end

new text begin $1,024,000 the first year and $1,024,000 the
second year are to streamline the retail food
safety regulatory and licensing experience
for regulated businesses and to decrease the
inspection delinquency rate.
new text end

new text begin $1,350,000 the first year and $1,350,000 the
second year are for additional inspections of
food manufacturers and wholesalers.
new text end

new text begin $150,000 the first year and $150,000 the
second year are for additional funding for
dairy inspection services.
new text end

new text begin $150,000 the first year and $150,000 the
second year are for additional funding for
laboratory services operations.
new text end

new text begin $250,000 the first year and $250,000
the second year are for additional meat
inspection services, including inspections
provided under the correctional facility
vocational training pilot program.
new text end

new text begin Notwithstanding Minnesota Statutes, section
18B.05, $90,000 the first year and $90,000
the second year are from the pesticide
regulatory account in the agricultural fund
for an increase in the operating budget for
the Laboratory Services Division.
new text end

new text begin $100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials.
new text end

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

new text begin 3,973,000 new text end

new text begin 3,873,000 new text end

new text begin The commissioner may provide one-stop
access for farmers in need of information or
assistance to obtain or renew licenses, meet
state regulatory requirements, or resolve
disputes with state agencies.
new text end

new text begin The commissioner must provide outreach
to urban farmers regarding the department's
financial and technical assistance programs
and must assist urban farmers in applying for
assistance.
new text end

new text begin $100,000 the first year is to (1) enhance the
commissioner's efforts to identify existing
and emerging opportunities for Minnesota's
agricultural producers and processors to
export their products to Cuba, consistent with
federal law, and (2) effectively communicate
these opportunities to the producers and
processors.
new text end

new text begin $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2017, for Minnesota
grown grants in this paragraph are available
until June 30, 2019.
new text end

new text begin $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state, in the proportions that the commissioner
deems most beneficial to Minnesota's dairy
farmers. The commissioner must submit
a detailed accomplishment report and
a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.
new text end

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

new text begin Subd. 4. new text end new text begin Agriculture, Bioenergy, and Bioproduct Advancement new text end

new text begin 14,993,000 new text end

new text begin 19,010,000 new text end

new text begin $4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. The
transfer in this paragraph includes money for
plant breeders at the University of Minnesota
for wild rice, potatoes, and grapes. Of these
amounts, at least $600,000 each year is for
agriculture rapid response under Minnesota
Statutes, section 41A.14, subdivision 1,
clause (2). Of the amount appropriated in
this paragraph, $1,000,000 each year is
for transfer to the Board of Regents of the
University of Minnesota for research to
determine (1) what is causing avian influenza,
(2) why some fowl are more susceptible,
and (3) prevention measures that can be
taken. Of the amount appropriated in this
paragraph, $2,000,000 each year is for grants
to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm
Business Management challenge grants.
new text end

new text begin To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation for
costs incurred to administer the program.
new text end

new text begin $10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; developing
urban agriculture; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
loans under Minnesota Statutes, section
41B.056; sustainable agriculture on farm
research and demonstration; development or
expansion of food hubs and other alternative
community-based food distribution systems;
and research on bioenergy, biobased content,
or biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 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 for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, 2019.
new text end

new text begin The commissioner may use funds
appropriated for the agricultural growth,
research, and innovation program as provided
in this paragraph. The commissioner may
award grants to owners of Minnesota
facilities producing bioenergy, biobased
content, or a biobased formulated product;
to organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or to certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner
shall make a good-faith effort to select
projects that have merit and, when taken
together, represent a variety of bioenergy
technologies, biomass feedstocks, and
geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at the
request of the commissioner.
new text end

new text begin Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $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 Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $500,000 in
fiscal year 2016 and $1,500,000 in fiscal
year 2017 are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year, the
balance of the appropriation is available
to the commissioner for the agricultural
growth, research, and innovation program.
Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation
is available until June 30, 2017, and the
second year appropriation is available until
June 30, 2018. The commissioner may use
up to 4.5 percent of the appropriation for
administration of the incentive payment
programs.
new text end

new text begin Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $250,000 the first
year is for grants to communities to develop
or expand food hubs and other alternative
community-based food distribution
systems. Of this amount, $50,000 is for
the commissioner to consult with existing
food hubs, alternative community-based
food distribution systems, and University
of Minnesota Extension to identify best
practices for use by other Minnesota
communities. No later than December 15,
2015, the commissioner must report to the
legislative committees with jurisdiction over
agriculture and health regarding the status of
emerging alternative community-based food
distribution systems in the state along with
recommendations to eliminate any barriers to
success. This is a onetime appropriation.
new text end

new text begin $250,000 the first year and $250,000 the
second year are for grants that enable
retail petroleum dispensers 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 paragraph if the retail
petroleum dispenser has no more than 15
retail petroleum dispensing sites and each
site is located in Minnesota. The grant
money received under this paragraph must
be used for the installation of appropriate
technology that uses fuel dispensing
equipment appropriate for at least one fuel
dispensing site to dispense gasoline that is
blended with 15 percent of agriculturally
derived, denatured ethanol, by volume, and
appropriate technical assistance related to
the installation. A grant award must not
exceed 85 percent of the cost of the technical
assistance and appropriate technology,
including remetering of and retrofits for
retail petroleum dispensers and replacement
of petroleum dispenser projects. The
commissioner may use up to $35,000 of this
appropriation for administrative expenses.
The commissioner shall cooperate with
biofuel stakeholders in the implementation
of the grant program. The commissioner
must report to the legislative committees
with jurisdiction over agriculture policy and
finance by February 1 each year, detailing
the number of grants awarded under this
paragraph and the projected effect of the grant
program on meeting the biofuel replacement
goals under Minnesota Statutes, section
239.7911. These are onetime appropriations.
new text end

new text begin $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 Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 6,067,000 new text end

new text begin 6,252,000 new text end

new text begin $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development.
new text end

new text begin The base for the farm-to-foodshelf program
in fiscal years 2018 and 2019 is $1,100,000
each year.
new text end

new text begin $25,000 the first year is for the livestock
industry study.
new text end

new text begin $47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association.
new text end

new text begin $235,000 the first year and $235,000 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 $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
shall 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 $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
new text end

new text begin $108,000 the first year and $108,000 the
second year are for annual 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 grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
new text end

new text begin $550,000 the first year and $550,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest 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 (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. 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 receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
new text end

new text begin $113,000 the first year and $113,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators. South Central College
shall serve as the fiscal agent.
new text end

new text begin $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
new text end

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

new text begin $ new text end

new text begin 5,318,000 new text end

new text begin $ new text end

new text begin 5,384,000 new text end

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

new text begin $ new text end

new text begin 3,643,000 new text end

new text begin $ new text end

new text begin 3,643,000 new text end

Sec. 5. new text begin AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS
AND TRANSFERS.
new text end

new text begin (a) $3,619,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of agriculture for avian influenza emergency response activities. The
commissioner may use money appropriated under this paragraph to purchase necessary
euthanasia and composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities that are not
eligible for federal reimbursement. This appropriation is available the day following final
enactment until June 30, 2017.
new text end

new text begin (b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
Board of Animal Health for avian influenza emergency response activities. The Board
may use money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment. This appropriation is available the day following final enactment
until June 30, 2017.
new text end

new text begin (c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of health for avian influenza emergency response activities. This
appropriation is available the day following final enactment until June 30, 2017.
new text end

new text begin (d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This appropriation may also be used to conduct serology sampling,
in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
Chair in Avian Health, from birds within a control zone and outside of a control zone.
This appropriation is available the day following final enactment until June 30, 2017.
new text end

new text begin (e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations
under this paragraph may also be used to support a staff person at the state's agricultural
incident command post in Willmar. This appropriation is available the day following final
enactment until June 30, 2017.
new text end

new text begin (f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.
new text end

new text begin (g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
section 17, no later than September 30, 2015, the commissioner of management and
budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
subdivision 6. This amount is available for avian influenza emergency response activities
as provided in Laws 2015, chapter 65, article 1, section 18.
new text end

Sec. 6. new text begin RURAL FINANCE AUTHORITY; APPROPRIATION.
new text end

new text begin $10,000,000 is appropriated in fiscal year 2016 from the general fund to the
commissioner of agriculture for transfer to the rural finance authority revolving loan
account under Minnesota Statutes, section 41B.06, for the purposes of disaster recovery
loans under Minnesota Statutes, section 41B.047. This appropriation is available the day
following final enactment until June 30, 2017.
new text end

Sec. 7. new text begin AVIAN INFLUENZA; FEDERAL FUNDS APPROPRIATION AND
REPORTING.
new text end

new text begin All federal money received in fiscal years 2015 through 2017 by the Board of Animal
Health or the commissioner of agriculture, health, natural resources, or public safety to
address avian influenza is appropriated in the fiscal year when it is received. Before
spending federal funds appropriated in this section, the commissioner of management and
budget shall report the anticipated federal funds appropriated under this section and their
intended purpose to the Legislative Advisory Commission, consistent with the urgent
federal funds request procedure under Minnesota Statutes, section 3.3005, subdivision
4. By January 15, 2018, the commissioner of management and budget shall report the
actual federal funds received and appropriated under this section and their actual use
to the Legislative Advisory Commission.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 5 to 7 are effective the day following final enactment.
new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2014, section 3.737, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Federal reimbursement. new text end

new text begin The commissioner must pursue federal
reimbursement for any compensation payment issued under this section while:
new text end

new text begin (1) the United States Fish and Wildlife Service lists the Minnesota population of gray
wolves as endangered and threatened wildlife under the federal Endangered Species Act; or
new text end

new text begin (2) the federal government otherwise prohibits livestock producers from protecting
their livestock from wolf depredation.
new text end

Sec. 2.

Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:

Subdivision 1.

Department of Agriculture data.

(a) Loan and grant applicant
data. The following data on applicants, collected by the Department of Agriculture in its
sustainable agriculture deleted text begin revolving loan and deleted text end grant deleted text begin programs deleted text end new text begin program new text end under deleted text begin sections 17.115
and deleted text end new text begin section new text end 17.116, are private or nonpublic: nonfarm income; credit history; insurance
coverage; machinery and equipment list; financial information; and credit information
requests.

(b) Farm advocate data. The following data supplied by farmer clients to
Minnesota farm advocates and to the Department of Agriculture are private data on
individuals: financial history, including listings of assets and debts, and personal and
emotional status information.

Sec. 3.

Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:

Subd. 28.

Structural pest.

"Structural pest" means deleted text begin a deleted text end new text begin an invertebrate new text end pest deleted text begin , other
than a plant, deleted text end new text begin or commensal rodent new text end in, on, under, or near a structure new text begin such as a residential
or commercial building new text end .

Sec. 4.

Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:

Subd. 29.

Structural pest control.

"Structural pest control" means the control of
any structural pest through the deleted text begin use of a device, a procedure, or deleted text end application of pesticides new text begin or
through other means new text end in or around a building or other structures, including trucks, boxcars,
ships, aircraft, docks, and fumigation vaults deleted text begin , and the business activity related to use of a
device, a procedure, or application of a pesticide deleted text end .

Sec. 5.

Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A pesticide regulatory account is established in the
agricultural fund. Fees, assessments, and penalties collected under this chapter must
be deposited in the agricultural fund and credited to the pesticide regulatory account.
Money in the account, including interest, is appropriated to the commissioner for the
administration and enforcement of this chapter new text begin and up to $20,000 per fiscal year may also
be used by the commissioner for purposes of section 18H.14, paragraph (e) new text end .

Sec. 6.

Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not engage in structural pest
control applications:

(1) for hire without a structural pest control license; and

(2) as a sole proprietorship, company, partnership, or corporation unless the person
is or employs a licensed master in structural pest control operations.

(b) A structural pest control licensee must have a valid license identification card
deleted text begin when applying deleted text end new text begin to purchase a restricted use pesticide or apply new text end pesticides for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The license identification card must contain information required by
the commissioner.

deleted text begin (c) Notwithstanding the licensing requirements of this subdivision, a person may
control the following nuisance or economically damaging wild animals, by trapping,
without a structural pest control license:
deleted text end

deleted text begin (1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license
or special permit from the commissioner of natural resources; and
deleted text end

deleted text begin (2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.
deleted text end

Sec. 7.

Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire
without a commercial applicator license for the appropriate use categories or a structural
pest control license.

(b) A commercial applicator licensee must have a valid license identification card
deleted text begin when applying deleted text end new text begin to purchase a restricted use pesticide or apply new text end pesticides for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.

Sec. 8.

Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator,
certified private applicator, or licensed structural pest control applicator, a person,
including a government employee, may not new text begin purchase or new text end use a restricted use pesticide in
performance of official duties without having a noncommercial applicator license for an
appropriate use category.

(b) A licensee must have a valid license identification card when applying pesticides
and must display it upon demand by an authorized representative of the commissioner
or a law enforcement officer. The license identification card must contain information
required by the commissioner.

Sec. 9.

Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:

Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in
the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411
shall pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee
of deleted text begin 30 deleted text end new text begin 39 new text end cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a minimum
of $10 on all tonnage reports. new text begin Notwithstanding section 18C.131, the commissioner
must deposit all revenue from the additional 40 cent per ton fee in the agricultural
fertilizer research and education account in section 18C.80. new text end Products sold or distributed to
manufacturers or exchanged between them are exempt from the inspection fee imposed by
this subdivision if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 10.

Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:

Subd. 2.

Powers and duties.

The council must review applications and select
projects to receive agricultural fertilizer research and education program grants, as
authorized in section 18C.71. The council must establish a program to provide grants to
research, education, and technology transfer projects related to agricultural fertilizer, soil
amendments, and plant amendments. For the purpose of this section, "fertilizer" includes
soil amendments and plant amendments, but does not include vegetable or animal manures
that are not manipulated. The commissioner is responsible for all fiscal and administrative
duties deleted text begin in the first year and may use up to eight percent of program revenue to offset costs
incurred. No later than October 1, 2007, the commissioner must provide the council with
an estimate of the annual costs the commissioner would incur in administering the program deleted text end .

Sec. 11.

new text begin [18C.80] AGRICULTURAL FERTILIZER RESEARCH AND
EDUCATION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account; appropriation. new text end

new text begin An agricultural fertilizer research
and education account is established in the agricultural fund. Money in the account,
including interest earned, is appropriated to the commissioner for grants determined by the
Minnesota Agricultural Fertilizer Research and Education Council under section 18C.71.
The commissioner may use up to $80,000 each fiscal year for direct costs incurred to
provide fiscal and administrative support to the council as required under section 18C.70,
subdivision 2. The commissioner may also recover associated indirect costs from the
account as required under section 16A.127.
new text end

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2020.
new text end

Sec. 12.

Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:

Subd. 3.

Cooperative agreements.

The commissioner may enter into cooperative
agreements with federal and state agencies for administration of the export certification
program. deleted text begin An exporter of plants or plant products desiring to originate shipments from
Minnesota to a foreign country requiring a phytosanitary certificate or export certificate
must submit an application to the commissioner.
deleted text end

Sec. 13.

Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:

Subd. 4.

Phytosanitary and export certificates.

new text begin An exporter of plants or plant
products desiring to originate shipments from Minnesota to a foreign country requiring
a phytosanitary certificate or export certificate must submit an application to the
commissioner. new text end Application for phytosanitary certificates or export certificates must be
made on forms provided or approved by the commissioner. The commissioner deleted text begin shall deleted text end new text begin may
new text end conduct inspections of plants, plant products, or facilities for persons that have applied for
or intend to apply for a phytosanitary certificate or export certificate from the commissioner.
deleted text begin Inspections must include one or more of the following as requested or required:
deleted text end

deleted text begin (1) an inspection of the plants or plant products intended for export under a
phytosanitary certificate or export certificate;
deleted text end

deleted text begin (2) field inspections of growing plants to determine presence or absence of plant
diseases, if necessary;
deleted text end

deleted text begin (3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
deleted text end

deleted text begin (4) observation and evaluation of procedures and facilities utilized in handling
plants and plant products, if necessary; and
deleted text end

deleted text begin (5) review of United States Department of Agriculture, Federal Grain Inspection
Service Official Export Grain Inspection Certificate logs.
deleted text end

The commissioner may issue a phytosanitary certificate or export certificate if the
plants or plant products satisfactorily meet the requirements of the importing foreign
country and the United States Department of Agriculture requirements. The requirements
of the destination countries must be met by the applicant.

Sec. 14.

Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:

Subd. 5.

Certificate fees.

(a) The commissioner shall assess deleted text begin the fees in paragraphs
(b) to (f) deleted text end new text begin fees sufficient to recover all costs new text end for the inspection, service, and work performed
in carrying out the issuance of a phytosanitary certificate or export certificate. deleted text begin The
inspection fee must be based on mileage and inspection time.
deleted text end

deleted text begin (b) Mileage charge: current United States Internal Revenue Service mileage rate.
deleted text end

deleted text begin (c) Inspection time: $50 per hour minimum or fee necessary to cover department
costs. Inspection time includes the driving time to and from the location in addition to
the time spent conducting the inspection.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end If laboratory analysis or other technical analysis is required to issue a
certificate, the commissioner must set and collect the fee to recover this additional cost.

deleted text begin (e) deleted text end new text begin (c) The new text end certificate fee deleted text begin for product value greater than $250: deleted text end new text begin is new text end $75 new text begin or a fee amount,
not to exceed $300, that is sufficient to recover all processing costs new text end for each phytosanitary
or export certificate issued deleted text begin for any single shipment valued at more than $250 deleted text end in addition to
any mileage or inspection time charges that are assessed.

deleted text begin (f) Certificate fee for product value less than $250: $25 for each phytosanitary or
export certificate issued for any single shipment valued at less than $250 in addition to
any mileage or inspection time charges that are assessed.
deleted text end

deleted text begin (g) deleted text end new text begin (d) new text end For services provided for in subdivision 7 that are goods and services
provided for the direct and primary use of a private individual, business, or other entity,
the commissioner must set and collect the fees to cover the cost of the services provided.

Sec. 15.

Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:

Subd. 20.

Nursery stock.

"Nursery stock" means a plant intended for planting or
propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts,
cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all
viable parts of these plants. Nursery stock does not include:

(1) field and forage crops new text begin or sod new text end ;

(2) deleted text begin the deleted text end seeds deleted text begin of grasses, cereal grains, vegetable crops, and flowers deleted text end ;

(3) vegetable plants, bulbs, or tubers;

(4) cut flowers, unless stems or other portions are intended for propagation;

(5) annuals; or

(6) Christmas trees.

Sec. 16.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:

new text begin Subd. 32a. new text end

new text begin Sod. new text end

new text begin "Sod" means the upper portion of soil that contains the roots of
grasses and the living grass plants.
new text end

Sec. 17.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:

new text begin Subd. 35. new text end

new text begin Tropical plant. new text end

new text begin "Tropical plant" means a plant that has a United States
Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual
minimum hardiness temperature of -9 degrees Fahrenheit.
new text end

Sec. 18.

Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:

Subd. 2.

Occasional sales.

(a) An individual may offer nursery stock for sale and be
exempt from the requirement to obtain a nursery stock deleted text begin dealer deleted text end certificate if:

(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;

(2) all nursery stock sold or distributed by the individual is intended for planting
in Minnesota;

(3) all nursery stock purchased or procured for resale or distribution was grown in
Minnesota and has been certified by the commissioner; and

(4) new text begin the individual new text end conducts sales or distributions of nursery stock on ten or fewer
days in a calendar year.

(b) The commissioner may prescribe the conditions of the exempt nursery sales under
this subdivision and may conduct routine inspections of the nursery stock offered for sale.

Sec. 19.

Minnesota Statutes 2014, section 18H.07, is amended to read:

18H.07 FEE SCHEDULE.

Subdivision 1.

Establishment of fees.

The commissioner shall establish fees
sufficient to allow for the administration and enforcement of this chapter and rules adopted
under this chapter, including the portion of general support costs and statewide indirect
costs of the agency attributable to that function, with a reserve sufficient for up to six
months. The commissioner shall review the fee schedule annually in consultation with
the Minnesota Nursery and Landscape Advisory Committee. For the certificate year
beginning January 1, 2006, the fees are as described in this section.

Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must
pay an annual fee based on the area of all acreage on which nursery stock is grown deleted text begin for
certification deleted text end as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin (c) A nursery stock grower found operating without a valid nursery stock grower
certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.
new text end

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an
annual fee based on the dealer's gross sales of certified nursery stock per location during
the most recent certificate year. A certificate applicant operating for the first time must pay
the minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin (c) A nursery stock dealer found operating without a valid nursery stock dealer
certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.
new text end

Subd. 4.

Reinspection; additional or optional inspection fees.

If a reinspection is
required or an additional inspection is needed or requested a fee must be assessed based
on mileage and inspection time as follows:

(1) mileage must be charged at the current United States Internal Revenue Service
reimbursement rate; and

(2) inspection time must be charged at deleted text begin the rate of $50 per hour deleted text end new text begin a rate sufficient to
recover all inspection costs new text end , including the driving time to and from the location in addition
to the time spent conducting the inspection.

Sec. 20.

Minnesota Statutes 2014, section 18H.17, is amended to read:

18H.17 NURSERY AND PHYTOSANITARY ACCOUNT.

A nursery and phytosanitary account is established in the state treasury. The fees
and penalties collected under this chapter and interest attributable to money in the account
must be deposited in the state treasury and credited to the nursery and phytosanitary
account in the agricultural fund. Money in the account, including interest earned, is
annually appropriated to the commissioner for the administration and enforcement for
this chapter. new text begin The commissioner may spend no more than $20,000 from the account each
fiscal year for purposes of section 18H.14, paragraph (e).
new text end

Sec. 21.

Minnesota Statutes 2014, section 18J.01, is amended to read:

18J.01 DEFINITIONS.

(a) The definitions in sections 18G.02, 18H.02, new text begin , new text end 27.01, 223.16, 231.01,
and 232.21 apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232, or sections 21.80 to 21.92.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2014, section 18J.02, is amended to read:

18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G, 18H,
new text begin 18K, new text end 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2014, section 18J.03, is amended to read:

18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232,
or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
associated rules by the person's employee or agent.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:

Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites
where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
seeds, plants, grain, household goods, general merchandise, produce, or other living or
nonliving products or other objects regulated under chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231,
or 232; sections 21.80 to 21.92; or associated rules.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:

Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G, 18H, new text begin 18K, new text end 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) sampling of sites, seeds, plants, products, grain, household goods, general
merchandise, produce, or other living or nonliving objects that are manufactured, stored,
distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H,
new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling,
or disposal of seeds, plants, products, grain, household goods, general merchandise,
produce, or other living or nonliving objects regulated under chapter 18G, 18H, new text begin 18K, new text end 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(4) investigating compliance with chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(5) other purposes necessary to implement chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules.

(b) The commissioner may enter any public or private premises during or after
regular business hours without notice of inspection when a suspected violation of chapter
18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may
threaten public health or the environment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:

Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall
provide the owner, operator, or agent in charge with a receipt describing any samples
obtained. If requested, the commissioner shall split any samples obtained and provide
them to the owner, operator, or agent in charge. If an analysis is made of the samples,
a copy of the results of the analysis must be furnished to the owner, operator, or agent
in charge within 30 days after an analysis has been performed. If an analysis is not
performed, the commissioner must notify the owner, operator, or agent in charge within 30
days of the decision not to perform the analysis.

(b) The sampling and analysis must be done according to methods provided for
under applicable provisions of chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections
21.80 to 21.92; or associated rules. In cases not covered by those sections and methods
or in cases where methods are available in which improved applicability has been
demonstrated the commissioner may adopt appropriate methods from other sources.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:

Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation
of chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules has occurred may request an inspection by giving notice to the commissioner of the
violation. The notice must be in writing, state with reasonable particularity the grounds
for the notice, and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that
a violation has occurred, the commissioner shall make a special inspection in accordance
with the provisions of this section as soon as practicable, to determine if a violation has
occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover
an entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred
do not exist, the commissioner must notify the person making the request in writing of
the determination.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:

Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G, 18H, new text begin 18K, new text end 27,
223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
officers having authority in the enforcement of the general criminal laws must take action
to the extent of their authority necessary or proper for the enforcement of chapter 18G,
18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid
orders, standards, stipulations, and agreements of the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:

Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G, 18H,
new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the
commissioner believes the public interest will be best served by a suitable notice of
warning in writing, this section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:

Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered,
or certified under chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or
associated rules must appoint the commissioner as the agent upon whom all legal process
may be served and service upon the commissioner is deemed to be service on the licensee,
permittee, registrant, or certified person.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2014, section 18J.06, is amended to read:

18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other
information as part of:

(1) an application for registration, license, certification, or permit under chapter 18G,
18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) records or reports required under chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(3) an investigation of a violation of chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:

Subd. 3.

Cancellation of registration, permit, license, certification.

The
commissioner may cancel or revoke a registration, permit, license, or certification
provided for under chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92;
or associated rules or refuse to register, permit, license, or certify under provisions of
chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules
if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, new text begin 18K, new text end 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules.

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:

Subd. 4.

Service of order or notice.

(a) If a person is not available for service of an
order, the commissioner may attach the order to the facility, site, seed or seed container,
plant or other living or nonliving object regulated under chapter 18G, 18H, new text begin 18K, new text end 27, 223,
231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian,
other responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated
under chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules may not be sold, used, tampered with, or removed until released under conditions
specified by the commissioner, by an administrative law judge, or by a court.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:

Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration,
or certification under provisions of this chapter, chapter 18G, 18H, new text begin 18K, new text end 27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against
the applicant for damages arising from a violation of those statutes or rules to remain
unsatisfied for a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this
chapter results in automatic suspension of the license, permit, registration, or certification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2014, section 18J.09, is amended to read:

18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.

Penalties, cost reimbursements, fees, and other money collected under this chapter
must be deposited into the state treasury and credited to the appropriate nursery and
phytosanitary new text begin , industrial hemp, new text end or seed account.

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:

Subdivision 1.

General violation.

Except as provided in subdivisions 2 deleted text begin and deleted text end new text begin , new text end 3 new text begin , and
4 new text end , a person is guilty of a misdemeanor if the person violates this chapter or an order,
standard, stipulation, agreement, or schedule of compliance of the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Controlled substance offenses. new text end

new text begin Prosecution under this section does not
preclude prosecution under chapter 152.
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. 38.

new text begin [18K.01] SHORT TITLE.
new text end

new text begin This chapter may be referred to as the "Industrial Hemp Development Act."
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. 39.

new text begin [18K.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture.
new text end

new text begin Subd. 3. new text end

new text begin Industrial hemp. new text end

new text begin "Industrial hemp" means the plant Cannabis sativa L.
and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not
marijuana as defined in section 152.01, subdivision 9.
new text end

new text begin Subd. 4. new text end

new text begin Marijuana. new text end

new text begin "Marijuana" has the meaning given in section 152.01,
subdivision 9.
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. 40.

new text begin [18K.03] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
new text end

new text begin Industrial hemp is an agricultural crop in this state. A person may possess, transport,
process, sell, or buy industrial hemp that is grown pursuant to this chapter.
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. 41.

new text begin [18K.04] LICENSING.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement; issuance; presumption. new text end

new text begin (a) A person must obtain a
license from the commissioner before growing industrial hemp for commercial purposes.
A person must apply to the commissioner in the form prescribed by the commissioner and
must pay the annual registration and inspection fee established by the commissioner in
accordance with section 16A.1285, subdivision 2. The license application must include
the name and address of the applicant and the legal description of the land area or areas
where industrial hemp will be grown by the applicant.
new text end

new text begin (b) When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid
until December 31 of the year of application.
new text end

new text begin (c) A person licensed under this section is presumed to be growing industrial hemp
for commercial purposes.
new text end

new text begin Subd. 2. new text end

new text begin Background check; data classification. new text end

new text begin The commissioner must require
each first-time applicant for a license to submit to a background investigation conducted
by the Bureau of Criminal Apprehension as a condition of licensure. As part of the
background investigation, the Bureau of Criminal Apprehension must conduct criminal
history checks of Minnesota records and is authorized to exchange fingerprints with the
United States Department of Justice, Federal Bureau of Investigation for the purpose of a
criminal background check of the national files. The cost of the investigation must be paid
by the applicant. Criminal history records provided to the commissioner under this section
must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin Subd. 3. new text end

new text begin Federal requirements. new text end

new text begin The applicant must demonstrate to the satisfaction
of the commissioner that the applicant has complied with all applicable federal
requirements pertaining to the production, distribution, and sale of industrial hemp.
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. 42.

new text begin [18K.05] ANNUAL REPORT; SALES NOTIFICATION.
new text end

new text begin (a) Annually, a licensee must file with the commissioner:
new text end

new text begin (1) documentation demonstrating to the commissioner's satisfaction that the seeds
planted by the licensee are of a type and variety that contain no more than three-tenths of
one percent delta-9 tetrahydrocannabinol; and
new text end

new text begin (2) a copy of any contract to grow industrial hemp.
new text end

new text begin (b) Within 30 days, a licensee must notify the commissioner of each sale or
distribution of industrial hemp grown by the licensee including, but not limited to, the
name and address of the person receiving the industrial hemp and the amount of industrial
hemp sold or distributed.
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. 43.

new text begin [18K.06] RULEMAKING.
new text end

new text begin (a) The commissioner shall adopt rules governing the production, testing, and
licensing of industrial hemp.
new text end

new text begin (b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:
new text end

new text begin (1) the supervision and inspection of industrial hemp during its growth and harvest;
new text end

new text begin (2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
new text end

new text begin (3) the use of background checks results required under section 18K.04 to approve
or deny a license application; and
new text end

new text begin (4) any other provision or procedure necessary to carry out the purposes of this
chapter.
new text end

new text begin (c) Rules issued under this section must be consistent with federal law regarding
the production, distribution, and sale of industrial hemp.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the federal government
authorizes the commercial production of industrial hemp in this country.
new text end

Sec. 44.

new text begin [18K.07] FEES.
new text end

new text begin Fees collected under this chapter must be credited to the industrial hemp account,
which is hereby established in the agricultural fund in the state treasury. Interest earned
in the account accrues to the account. Funds in the industrial hemp account are annually
appropriated to the commissioner to implement and enforce this chapter.
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. 45.

new text begin [18K.08] DEFENSE FOR POSSESSION OF MARIJUANA.
new text end

new text begin It is an affirmative defense to a prosecution for the possession of marijuana under
chapter 152 if:
new text end

new text begin (1) the defendant possesses industrial hemp grown pursuant to this chapter; or
new text end

new text begin (2) the defendant has a valid controlled substance registration from the United States
Department of Justice, Drug Enforcement Administration, if required under federal law.
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. 46.

new text begin [18K.09] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized activity. new text end

new text begin The commissioner may grow or cultivate
industrial hemp pursuant to a pilot program administered by the commissioner to study
the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1)
authorize institutions of higher education to grow or cultivate industrial hemp as part
of the commissioner's pilot program or as is necessary to perform other agricultural,
renewable energy, or academic research; and (2) contract with public or private entities for
testing or other activities authorized under this subdivision. Authorized activity under this
section may include collecting seed from wild hemp sources.
new text end

new text begin Subd. 2. new text end

new text begin Site registration. new text end

new text begin Before growing or cultivating industrial hemp pursuant
to this section, each site must be registered with and certified by the commissioner. A
person must register each site annually in the form prescribed by the commissioner and
must pay the annual registration and certification fee established by the commissioner in
accordance with section 16A.1285, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules that govern the pilot
program pursuant to this section and Public Law 113-79.
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. 47.

Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:

Subd. 2.

Permits; issuance and revocation.

The commissioner shall issue a permit
to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold
for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92.
The categories of permits are as follows:

(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each
calendar year, an annual permit issued for a fee established in section 21.891, subdivision
2, paragraph (b);

(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for
use in home gardens or household plantings, new text begin and initial labelers who sell native grasses
and wildflower seed in commercial or agricultural quantities, new text end an annual permit issued for
a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross
sales from the previous year; and

(3) for initial labelers who sell more than 50,000 pounds of agricultural seed
each calendar year, a permanent permit issued for a fee established in section 21.891,
subdivision 2, paragraph (d).

In addition, the person shall furnish to the commissioner an itemized statement of all
seeds sold in Minnesota for the periods established by the commissioner. This statement
shall be delivered, along with the payment of the fee, based upon the amount and type
of seed sold, to the commissioner no later than 30 days after the end of each reporting
period. Any person holding a permit shall show as part of the analysis labels or invoices
on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the
commissioner requires. The commissioner may revoke any permit in the event of failure
to comply with applicable laws and rules.

Sec. 48.

Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:

Subd. 2.

Seed fee permits.

(a) An initial labeler who wishes to sell seed in
Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in
this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to
the commissioner to obtain a permit. The application must contain the name and address of
the applicant, the application date, and the name and title of the applicant's contact person.

(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
(1), must be accompanied by an application fee of deleted text begin $50 deleted text end new text begin $75 new text end .

(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
(2), must be accompanied by an application fee based on the level of annual gross sales
as follows:

(1) for gross sales of $0 to $25,000, the annual permit fee is deleted text begin $50 deleted text end new text begin $75 new text end ;

(2) for gross sales of $25,001 to $50,000, the annual permit fee is deleted text begin $100 deleted text end new text begin $150 new text end ;

(3) for gross sales of $50,001 to $100,000, the annual permit fee is deleted text begin $200 deleted text end new text begin $300 new text end ;

(4) for gross sales of $100,001 to $250,000, the annual permit fee is deleted text begin $500 deleted text end new text begin $750 new text end ;

(5) for gross sales of $250,001 to $500,000, the annual permit fee is deleted text begin $1,000 deleted text end new text begin $1,500 new text end ;
and

(6) for gross sales of $500,001 deleted text begin and above deleted text end new text begin to $1,000,000 new text end , the annual permit fee is
deleted text begin $2,000 deleted text end new text begin $3,000; and
new text end

new text begin (7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500 new text end .

(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
(3), must be accompanied by an application fee of deleted text begin $50 deleted text end new text begin $75 new text end . Initial labelers holding seed
fee permits covered under this paragraph need not apply for a new permit or pay the
application fee. Under this permit category, the fees for the following kinds of agricultural
seed sold either in bulk or containers are:

(1) oats, wheat, and barley, deleted text begin 6.3 deleted text end new text begin 9 new text end cents per hundredweight;

(2) rye, field beans, deleted text begin soybeans, deleted text end buckwheat, and flax, deleted text begin 8.4 deleted text end new text begin 12 new text end cents per hundredweight;

(3) field corn, deleted text begin 29.4 deleted text end new text begin 17 new text end cents per deleted text begin hundredweight deleted text end new text begin 80,000 seed unit new text end ;

(4) forage, lawn and turf grasses, and legumes, deleted text begin 49 deleted text end new text begin 69 new text end cents per hundredweight;

(5) sunflower, deleted text begin $1.40 deleted text end new text begin $1.96 new text end per hundredweight;

(6) sugar beet, deleted text begin $3.29 deleted text end new text begin 12 cents new text end per deleted text begin hundredweight deleted text end new text begin 100,000 seed unit new text end ; deleted text begin and
deleted text end

new text begin (7) soybeans, 7.5 cents per 140,000 seed unit; and
new text end

deleted text begin (7) deleted text end new text begin (8) new text end for any agricultural seed not listed in clauses (1) to deleted text begin (6) deleted text end new text begin (7) new text end , the fee for the crop
most closely resembling it in normal planting rate applies.

(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is
shipped into Minnesota by a person other than the initial labeler, the responsibility for the
seed fees are transferred to the shipper. An application for a transfer of this responsibility
must be made to the commissioner. Upon approval by the commissioner of the transfer,
the shipper is responsible for payment of the seed permit fees.

(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or
as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the
words "Minnesota seed permit fees" must be used.

(g) All seed fee permit holders must file semiannual reports with the commissioner,
even if no seed was sold during the reporting period. Each semiannual report must be
submitted within 30 days of the end of each reporting period. The reporting periods are
October 1 to March 31 and April 1 to September 30 of each year or July 1 to December
31 and January 1 to June 30 of each year. Permit holders may change their reporting
periods with the approval of the commissioner.

(h) The holder of a seed fee permit must pay fees on all seed for which the permit
holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold
during the reporting period.

(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed
fee within 30 days after the end of each reporting period, the commissioner shall assess a
penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever
is greater, but no more than $500 for each late semiannual report. A $15 penalty must be
charged when the semiannual report is late, even if no fee is due for the reporting period.
Seed fee permits may be revoked for failure to comply with the applicable provisions of
this paragraph or the Minnesota seed law.

Sec. 49.

Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:

Subd. 5.

Brand name registration fee.

The fee is deleted text begin $25 deleted text end new text begin $50 new text end for each variety
registered for sale by brand name.

Sec. 50.

Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:

Subd. 2.

Application; fee; term.

A person who is required to have a commercial
feed license shall submit an application on a form provided or approved by the
commissioner accompanied by a fee of deleted text begin $25 deleted text end new text begin $75 new text end paid to the commissioner for each
location. A license is not transferable from one person to another, from one ownership to
another, or from one location to another. The license year is the calendar year. A license
expires on December 31 of the year for which it is issued, except that a license is valid
through January 31 of the next year or until the issuance of the renewal license, whichever
comes first, if the licensee has filed a renewal application with the commissioner on or
before December 31 of the year for which the current license was issued. Any person who
is required to have, but fails to obtain a license or a licensee who fails to comply with
license renewal requirements, shall pay a deleted text begin $50 deleted text end new text begin $100 new text end late fee in addition to the license fee.

Sec. 51.

Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of 16 cents per ton
must be paid to the commissioner on commercial feeds distributed in this state by the
person who first distributes the commercial feed, except that:

(1) no fee need be paid on:

(i) a commercial feed if the payment has been made by a previous distributor; or

(ii) customer formula feeds if the inspection fee is paid on the commercial feeds
which are used as ingredients; or

(2) a Minnesota feed distributor who can substantiate that greater than 50 percent
of the distribution of commercial feed is to purchasers outside the state may purchase
commercial feeds without payment of the inspection fee under a tonnage fee exemption
permit issued by the commissioner. Such location specific permits shall be issued on a
calendar year basis to commercial feed distributors who submit a $100 nonrefundable
application fee and comply with rules adopted by the commissioner relative to record
keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial
feed tonnage distributed, and all other information which the commissioner may require
so as to ensure that proper inspection fee payment has been made.

(b) In the case of pet food distributed in the state only in packages of ten pounds
or less, a listing of each product and a current label for each product must be submitted
annually on forms provided by the commissioner and accompanied by an annual fee of
deleted text begin $50 deleted text end new text begin $100 new text end for each product in lieu of the inspection fee. This annual fee is due by July 1.
The inspection fee required by paragraph (a) applies to pet food distributed in packages
exceeding ten pounds.

(c) In the case of specialty pet food distributed in the state only in packages of
ten pounds or less, a listing of each product and a current label for each product must
be submitted annually on forms provided by the commissioner and accompanied by an
annual fee of deleted text begin $25 deleted text end new text begin $100 new text end for each product in lieu of the inspection fee. This annual fee is
due by July 1. The inspection fee required by paragraph (a) applies to specialty pet food
distributed in packages exceeding ten pounds.

(d) The minimum inspection fee is deleted text begin $10 deleted text end new text begin $75 new text end per annual reporting period.

Sec. 52.

Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:

Subd. 1a.

Containers of ten pounds or less.

A distributor who is subject to the
annual fee specified in subdivision 1, paragraph (b) or (c), shall do the following:

(1) before beginning distribution, file with the commissioner a listing of pet and
specialty pet foods to be distributed in the state only in containers of ten pounds or less,
on forms provided by the commissioner. The listing under this clause must be renewed
annually before July 1 and is the basis for the payment of the annual fee. New products
added during the year must be submitted to the commissioner as a supplement to the
annual listing before distribution; and

(2) if the annual renewal of the listing is not received before July 1 or if an unlisted
product is distributed, pay a late filing fee of deleted text begin $10 deleted text end new text begin $100 new text end per product in addition to the
normal charge for the listing. The late filing fee under this clause is in addition to any
other penalty under this chapter.

Sec. 53.

new text begin [28A.152] COTTAGE FOODS EXEMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Licensing provisions applicability. new text end

new text begin (a) The licensing provisions of
sections 28A.01 to 28A.16 do not apply to the following:
new text end

new text begin (1) an individual who prepares and sells food that is not potentially hazardous food,
as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements
are met:
new text end

new text begin (i) the prepared food offered for sale under this clause is labeled to accurately reflect
the name and address of the individual preparing and selling the food, the date on which
the food was prepared, and the ingredients and any possible allergens; and
new text end

new text begin (ii) the individual displays at the point of sale a clearly legible sign or placard stating:
"These products are homemade and not subject to state inspection."; and
new text end

new text begin (2) an individual who prepares and sells home-processed and home-canned food
products if the following requirements are met:
new text end

new text begin (i) the products are pickles, vegetables, or fruits having an equilibrium pH value of
4.6 or lower;
new text end

new text begin (ii) the products are home-processed and home-canned in Minnesota;
new text end

new text begin (iii) the individual displays at the point of sale a clearly legible sign or placard
stating: "These canned goods are homemade and not subject to state inspection."; and
new text end

new text begin (iv) each container of the product sold or offered for sale under this clause is
accurately labeled to provide the name and address of the individual who processed
and canned the goods, the date on which the goods were processed and canned, and
ingredients and any possible allergens.
new text end

new text begin (b) An individual who qualifies for an exemption under paragraph (a), clause (2), is
also exempt from the provisions of sections 31.31 and 31.392.
new text end

new text begin Subd. 2. new text end

new text begin Direct sales to consumers. new text end

new text begin (a) An individual qualifying for an exemption
under subdivision 1 may sell the exempt food:
new text end

new text begin (1) directly to the ultimate consumer;
new text end

new text begin (2) at a community event or farmers' market; or
new text end

new text begin (3) directly from the individual's home to the consumer, to the extent allowed by
local ordinance.
new text end

new text begin (b) If an exempt food product will be delivered to the ultimate consumer upon sale
of the food product, the individual who prepared the food product must be the person who
delivers the food product to the ultimate consumer.
new text end

new text begin (c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
sold outside of Minnesota.
new text end

new text begin (d) Food products exempt under subdivision 1 may be sold over the Internet but
must be delivered directly to the ultimate consumer by the individual who prepared the
food product. The statement "These products are homemade and not subject to state
inspection." must be displayed on the Web site that offers the exempt foods for purchase.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on sales. new text end

new text begin An individual selling exempt foods under this section
is limited to total sales with gross receipts of $18,000 or less in a calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Registration. new text end

new text begin An individual who prepares and sells exempt food under
subdivision 1 must register annually with the commissioner. The annual registration fee is
$50. An individual with $5,000 or less in annual gross receipts from the sale of exempt
food under this section is not required to pay the registration fee.
new text end

new text begin Subd. 5. new text end

new text begin Training. new text end

new text begin (a) An individual with gross receipts between $5,000 and
$18,000 in a calendar year from the sale of exempt food under this section must complete a
safe food handling training course that is approved by the commissioner before registering
under subdivision 4. The training shall not exceed eight hours and must be completed
every three years while the individual is registered under subdivision 4.
new text end

new text begin (b) An individual with gross receipts of less than $5,000 in a calendar year from
the sale of exempt food under this section must satisfactorily complete an online course
and exam as approved by the commissioner before registering under subdivision 4. The
commissioner shall offer the online course and exam under this paragraph at no cost to
the individual.
new text end

new text begin Subd. 6. new text end

new text begin Local ordinances. new text end

new text begin This section does not preempt the application of any
business licensing requirement or sanitation, public health, or zoning ordinance of a
political subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Account established. new text end

new text begin A cottage foods account is created as a separate
account in the agricultural fund in the state treasury for depositing money received by the
commissioner under this section. Money in the account, including interest, is appropriated
to the commissioner for purposes of this section.
new text end

Sec. 54.

Minnesota Statutes 2014, section 32.075, is amended to read:

32.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.

deleted text begin Every deleted text end new text begin An initial new text end license issued by the commissioner deleted text begin shall be for a period ending
deleted text end new text begin expires new text end on the new text begin following December new text end 31st deleted text begin day of December next following, deleted text end and deleted text begin shall deleted text end new text begin is new text end not
deleted text begin be deleted text end transferable. new text begin A renewal license is valid for two years and expires on December 31 of
the second year. new text end The fee for deleted text begin each such deleted text end new text begin an new text end initial new text begin or renewal new text end license deleted text begin shall be $50 and each
renewal thereof shall be $25 and deleted text end new text begin is $60. The fee new text end shall be paid to the commissioner before
deleted text begin any deleted text end new text begin the commissioner issues an initial or renewal new text end license deleted text begin or renewal thereof is issued deleted text end . If a
license renewal is not applied for on or before January 1 of each year, a penalty of deleted text begin $10 deleted text end new text begin $30
new text end shall be imposed. A person who does not renew a license within one year following its
December 31 expiration date, except those persons who do not renew such license while
engaged in active military service, shall be required to prove competency and qualification
pursuant to section 32.073, before a license is issued. The commissioner may require any
other person who renews a license to prove competency and qualification in the same
manner. All license fees and penalties received by the commissioner shall be deleted text begin paid into the
state treasury deleted text end new text begin deposited in the dairy services account in the agricultural fund new text end .

Sec. 55.

Minnesota Statutes 2014, section 32.105, is amended to read:

32.105 MILK PROCUREMENT FEE.

Each dairy plant operator within the state must pay to the commissioner on or before
the 18th of each month a fee of deleted text begin .71 deleted text end new text begin 1.1 new text end cents per hundredweight of milk purchased the
previous month. If a milk producer within the state ships milk out of the state for sale, the
producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.

Producers who ship milk out of state or processors must submit monthly reports as
to milk purchases along with the appropriate procurement fee to the commissioner. The
commissioner may have access to all relevant purchase or sale records as necessary to
verify compliance with this section and may require the producer or purchaser to produce
records as necessary to determine compliance.

The fees collected under this section must be deposited in the dairy services account
in the agricultural fund. Money in the account, including interest earned, is appropriated
to the commissioner to administer this chapter.

Sec. 56.

new text begin [41A.14] AGRICULTURE RESEARCH, EDUCATION, EXTENSION,
AND TECHNOLOGY TRANSFER GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Duties; grants. new text end

new text begin The agriculture research, education, extension, and
technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural productivity
increases through improved infrastructure, vision, and accountability. The scope and
intent of the grants, to the extent possible, shall provide for a long-term base funding
that allows the research grantee to continue the functions of the research, education, and
extension efforts to a practical conclusion. Priority for grants shall be given to human
infrastructure. The commissioner shall provide grants for:
new text end

new text begin (1) agricultural research and technology transfer needs and recipients including
agricultural research and extension at the University of Minnesota, research and outreach
centers, the College of Food, Agricultural and Natural Resource Sciences, the Minnesota
Agricultural Experiment Station, University of Minnesota Extension Service, the
University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
Education Council;
new text end

new text begin (2) agriculture rapid response for plant and animal diseases and pests; and
new text end

new text begin (3) agricultural education including but not limited to the Minnesota Agriculture
Education Leadership Council, farm business management, mentoring programs, graduate
debt forgiveness, and high school programs.
new text end

new text begin Subd. 2. new text end

new text begin Advisory panel. new text end

new text begin In awarding grants under this section, the commissioner
must consult with an advisory panel consisting of the following stakeholders:
new text end

new text begin (1) a representative of the College of Food, Agricultural and Natural Resource
Sciences at the University of Minnesota;
new text end

new text begin (2) a representative of the Minnesota State Colleges and Universities system;
new text end

new text begin (3) a representative of the Minnesota Farm Bureau;
new text end

new text begin (4) a representative of the Minnesota Farmers Union;
new text end

new text begin (5) a person representing agriculture industry statewide;
new text end

new text begin (6) a representative of each of the state commodity councils organized under section
17.54 and the Minnesota Pork Board;
new text end

new text begin (7) a person representing an association of primary manufacturers of forest products;
new text end

new text begin (8) a person representing organic or sustainable agriculture; and
new text end

new text begin (9) a person representing statewide environment and natural resource conservation
organizations.
new text end

new text begin Subd. 3. new text end

new text begin Account. new text end

new text begin An agriculture research, education, extension, and technology
transfer account is created in the agricultural fund in the state treasury. The account
consists of money received in the form of gifts, grants, reimbursement, or appropriations
from any source for any of the purposes provided in subdivision 1, and any interest or
earnings of the account. Money in the account is appropriated to the commissioner of
agriculture for the purposes under subdivision 1.
new text end

Sec. 57.

new text begin [41A.15] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 41A.15 to 41A.18, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Advanced biofuel. new text end

new text begin "Advanced biofuel" has the meaning given in section
239.051, subdivision 1a.
new text end

new text begin Subd. 3. new text end

new text begin Biomass thermal production. new text end

new text begin "Biomass thermal production" means the
generation of energy for commercial heat or industrial process heat from a cellulosic
material or other material composed of forestry or agricultural feedstocks for a new or
expanding capacity facility or a facility that is displacing existing use of fossil fuel after
the effective date of this section.
new text end

new text begin Subd. 4. new text end

new text begin Cellulosic biomass. new text end

new text begin "Cellulosic biomass" means material primarily made
up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.
new text end

new text begin Subd. 5. new text end

new text begin Cellulosic sugar. new text end

new text begin "Cellulosic sugar" means sugar derived from cellulosic
biomass from agricultural or forestry resources.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture.
new text end

new text begin Subd. 7. new text end

new text begin Cover crops. new text end

new text begin "Cover crops" means grasses, legumes, forbs, or other
herbaceous plants that are known to be noninvasive and not listed as a noxious weed in
Minnesota and that are either interseeded into living cash crops or planted on agricultural
fields during fallow periods for seasonal cover and conservation purposes.
new text end

new text begin Subd. 8. new text end

new text begin MMbtu. new text end

new text begin "MMbtu" means 1,000,000 British thermal units.
new text end

new text begin Subd. 9. new text end

new text begin Perennial crops. new text end

new text begin "Perennial crops" means agriculturally produced plants
that are known to be noninvasive and not listed as a noxious weed in Minnesota and that
have a life cycle of at least three years at the location where the plants are being cultivated.
Biomass from alfalfa produced in a two-year rotation shall be considered a perennial crop.
new text end

new text begin Subd. 10. new text end

new text begin Renewable chemical. new text end

new text begin "Renewable chemical" means a chemical with
biobased content as defined in section 41A.105, subdivision 1a.
new text end

Sec. 58.

new text begin [41A.16] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (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 by June
30, 2025, and must not begin operating above 95,000 MMbtu of annual 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 95,000
MMbtu a year.
new text end

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

new text begin (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.
new text end

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

new text begin (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.
new text end

new text begin Subd. 2. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments
to eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or
starch at a specific location for ten years after the start of production.
new text end

new text begin (b) Total payments under this section to an eligible biofuel producer in a fiscal
year may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production.
Total payments under this section to all eligible biofuel producers in a fiscal year may
not exceed the amount necessary for 17,100,000 MMbtu of biofuel production. The
commissioner shall award payments on a first-come, first-served basis within the limits of
available funding.
new text end

new text begin (c) For purposes of this section, an entity that holds a controlling interest in more
than one advanced biofuel facility is considered a single eligible producer.
new text end

new text begin Subd. 3. new text end

new text begin Perennial and cover crops required. new text end

new text begin To be eligible for payment under
this section, a producer that produces advanced biofuel from agricultural cellulosic
biomass other than corn kernel fiber or biogas must derive at least the following portions
of the producer's total eligible MMbtus from perennial crop or cover crop biomass:
new text end

new text begin (1) ten percent during the first two years of eligible production;
new text end

new text begin (2) 30 percent during the third and fourth years of eligible production; and
new text end

new text begin (3) 50 percent during the fifth through tenth years of eligible production.
new text end

new text begin Subd. 4. new text end

new text begin Cellulosic forestry biomass requirements. new text end

new text begin All forestry-derived cellulosic
biomass must be produced using Minnesota state biomass harvesting guidelines or the
equivalent. All biomass from brushlands must be produced using Minnesota brushland
harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
biomass that comes from land parcels greater than 160 acres must be certified by the Forest
Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
Uncertified land from parcels of 160 acres or less and federal land must be harvested by
a logger who has completed training for biomass harvesting from the Minnesota logger
education program or the equivalent and have a forest stewardship plan.
new text end

new text begin Subd. 5. new text end

new text begin Agricultural cellulosic biomass sourcing plan. new text end

new text begin (a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan for approval by the commissioner prior to applying for payments under this section.
The commissioner shall make the plan publicly available. The plan must:
new text end

new text begin (1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;
new text end

new text begin (2) include the producer's approach to verifying that biomass suppliers are following
the plan;
new text end

new text begin (3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project;
new text end

new text begin (4) include specific numeric goals and timelines for making progress;
new text end

new text begin (5) require agronomic practices that result in a positive Natural Resources
Conservation Service Soil Conditioning Index score for acres from which biomass from
corn stover will be harvested; and
new text end

new text begin (6) include biennial soil sampling to verify maintained or increased levels of soil
organic matter.
new text end

new text begin (b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.
new text end

new text begin Subd. 6. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each eligible
biofuel producer shall file a claim for payment for advanced biofuel production during the
preceding three calendar months. An eligible biofuel producer that files a claim under
this subdivision shall include a statement of the eligible biofuel producer's total advanced
biofuel production in Minnesota during the quarter covered by the claim. For each claim
and statement of total advanced biofuel production filed under this subdivision, the volume
of advanced biofuel production must be examined by a CPA firm with a valid permit to
practice under chapter 326A, in accordance with Statements on Standards for Attestation
Engagements established by the American Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.
new text end

Sec. 59.

new text begin [41A.17] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) A facility eligible for payment under this program
must source at least 80 percent biobased content, as defined in section 41A.105,
subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
state border, biobased content must be sourced from within a 100-mile radius. Biobased
content 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 by June 30,
2025, and must not begin production of 3,000,000 pounds of chemicals annually before
January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 3,000,000 pounds
per year. Renewable chemicals produced through processes that are fully commercial
before January 1, 2000, are not eligible.
new text end

new text begin (b) No payments shall be made for renewable chemical production that occurs after
June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
new text end

new text begin (c) An eligible producer of renewable chemicals shall not transfer the producer's
eligibility for payments under this section to a renewable chemical facility at a different
location.
new text end

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

new text begin (e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under
section 41A.18, are not eligible for payment under this section.
new text end

new text begin Subd. 2. new text end

new text begin Payment amounts; bonus; limits. new text end

new text begin (a) The commissioner shall make
payments to eligible producers of renewable chemicals located in the state. The amount of
the payment for each producer's annual production is $0.03 per pound of sugar-derived
renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.
new text end

new text begin (b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.
new text end

new text begin (c) Total payments under this section to an eligible renewable chemical producer in
a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.
new text end

new text begin (d) For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.
new text end

new text begin Subd. 3. new text end

new text begin Cellulosic biomass requirements. new text end

new text begin All forestry-derived cellulosic biomass
must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
All cellulosic biomass from brushlands must be produced using Minnesota brushland
harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
biomass that comes from land parcels greater than 160 acres must be certified by the Forest
Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
Uncertified land from parcels of 160 acres or less and federal land must be harvested by
a logger who has completed training for biomass harvesting from the Minnesota logger
education program or the equivalent and have a forest stewardship plan.
new text end

new text begin Subd. 4. new text end

new text begin Agricultural cellulosic biomass sourcing plan. new text end

new text begin (a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan to the commissioner prior to applying for payments under this section. The plan must:
new text end

new text begin (1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;
new text end

new text begin (2) include the producer's approach to verifying that biomass suppliers are following
the plan;
new text end

new text begin (3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project; and
new text end

new text begin (4) include specific numeric goals and timelines for making progress.
new text end

new text begin (b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.
new text end

new text begin Subd. 5. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each
eligible renewable chemical producer shall file a claim for payment for renewable
chemical production during the preceding three calendar months. An eligible renewable
chemical producer that files a claim under this subdivision shall include a statement of
the eligible producer's total renewable chemical production in Minnesota during the
quarter covered by the claim. For each claim and statement of total renewable chemical
production filed under this paragraph, the volume of renewable chemical production
must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
accordance with Statements on Standards for Attestation Engagements established by the
American Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.
new text end

Sec. 60.

new text begin [41A.18] BIOMASS THERMAL PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (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 should be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and
must not begin before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding production capacity, or retrofitting existing capacity, as well as
new companies and facilities. Eligible biomass thermal production facilities must produce
at least 1,000 MMbtu per year.
new text end

new text begin (b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).
new text end

new text begin (c) An eligible producer of biomass thermal production shall not transfer the
producer's eligibility for payments under this section to a biomass thermal production
facility at a different location.
new text end

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

new text begin (e) Biofuel production for which payment has been received under section 41A.16,
and renewable chemical production for which payment has been received under section
41A.17, are not eligible for payment under this section.
new text end

new text begin Subd. 2. new text end

new text begin Payment amounts; bonus; limits; blending. new text end

new text begin (a) The commissioner shall
make payments to eligible producers of biomass thermal located in the state. The amount
of the payment for each producer's annual production is $5.00 per MMbtu of biomass
thermal production produced at a specific location for ten years after the start of production.
new text end

new text begin (b) An eligible facility producing biomass thermal using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.
new text end

new text begin (c) Total payments under this section to an eligible thermal producer in a fiscal
year may not exceed the amount necessary for 30,000 MMbtu of thermal production.
Total payments under this section to all eligible thermal producers in a fiscal year may
not exceed the amount necessary for 150,000 MMbtu of total thermal production. The
commissioner shall award payments on a first-come, first-served basis within the limits of
available funding.
new text end

new text begin (d) An eligible facility may blend a cellulosic feedstock with other fuels in the
biomass thermal production facility, but only the percentage attributable to cellulosic
material is eligible to receive payment.
new text end

new text begin (e) For purposes of this section, an entity that holds a controlling interest in more
than one biomass thermal production facility is considered a single eligible producer.
new text end

new text begin Subd. 3. new text end

new text begin Cellulosic biomass requirements. new text end

new text begin All forestry-derived cellulosic biomass
must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
All biomass from brushland must be produced using Minnesota brushland harvesting
biomass guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from
land parcels greater than 160 acres must be certified by the Forest Stewardship Council,
the Sustainable Forestry Initiative, or American Tree Farm. Uncertified land from parcels
of 160 acres or less and federal land must be harvested by a logger who has completed
training for biomass harvesting from the Minnesota logger education program or the
equivalent and have a forest stewardship plan.
new text end

new text begin Subd. 4. new text end

new text begin Agricultural cellulosic biomass sourcing plan. new text end

new text begin (a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan to the commissioner prior to applying for payments under this section. The plan must:
new text end

new text begin (1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;
new text end

new text begin (2) include the producer's approach to verifying that biomass suppliers are following
the plan;
new text end

new text begin (3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project; and
new text end

new text begin (4) include specific numeric goals and timelines for making progress.
new text end

new text begin (b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.
new text end

new text begin Subd. 5. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each
producer shall file a claim for payment for biomass thermal production during the
preceding three calendar months. A producer that files a claim under this subdivision shall
include a statement of the producer's total biomass thermal production in Minnesota
during the quarter covered by the claim. For each claim and statement of total biomass
thermal production filed under this paragraph, the volume of biomass thermal production
must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
accordance with Statements on Standards for Attestation Engagements established by the
American Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment shall be made for each claim filed.
new text end

Sec. 61.

new text begin [41A.19] REPORT; INCENTIVE PROGRAMS.
new text end

new text begin By January 15 each year, the commissioner shall report on the incentive programs
under sections 41A.16, 41A.17, and 41A.18 to the legislative committees with jurisdiction
over environment and agriculture policy and finance. The report shall include information
on production and incentive expenditures under the programs.
new text end

Sec. 62.

Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:

Subd. 6.

Application fee.

The authority may impose a reasonable nonrefundable
application fee for each application submitted for a beginning farmer loan or a
seller-sponsored loan. The application fee is initially $50. The authority may review the
fee annually and make adjustments as necessary. The fee must be deposited in the state
treasury and credited to deleted text begin an account in the special revenue fund. Money in the account is
appropriated to the commissioner for administrative expenses of the beginning farmer
and seller-sponsored loan programs deleted text end new text begin the Rural Finance Authority administrative account
established in subdivision 7 new text end .

Sec. 63.

Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Rural Finance Authority administrative account. new text end

new text begin There is established
in the agricultural fund a Rural Finance Authority administrative account. Money in the
account, including interest, is appropriated to the commissioner of agriculture for the
administrative expenses of the loan programs administered by the Rural Finance Authority.
new text end

Sec. 64.

Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:

Subd. 17.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application and an origination fee for each loan
issued under the loan restructuring program. The origination fee is 1.5 percent of the
authority's participation interest in the loan and the application fee is $50. The authority
may review the fees annually and make adjustments as necessary. The fees must be
deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in the account is appropriated to the commissioner for administrative expenses
of the loan restructuring program deleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03 new text end .

Sec. 65.

Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:

Subd. 3.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application submitted for a participation issued
under the agricultural improvement loan program. The application fee is initially $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the agricultural improvement loan program deleted text end new text begin the Rural Finance Authority administrative
account established in section 41B.03 new text end .

Sec. 66.

Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:

Subd. 3.

Specifications.

deleted text begin No loan may be made to refinance an existing debt. deleted text end Each
loan participation must be secured by a mortgage on real property and such other security
as the authority may require.

Sec. 67.

Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:

Subd. 4.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an
origination fee for each loan issued under the livestock expansion loan program. The
origination fee initially shall be set at 1.5 percent and the application fee at $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to deleted text begin an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the livestock expansion loan program deleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03 new text end .

Sec. 68.

Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:

Subd. 5.

Loans.

(a) The authority may participate in a stock loan with an eligible
lender to a farmer who is eligible under subdivision 4. Participation is limited to 45
percent of the principal amount of the loan or $40,000, whichever is less. The interest
rates and repayment terms of the authority's participation interest may differ from the
interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed 50 percent of the lender's interest rate.

(b) No more than 95 percent of the purchase price of the stock may be financed
under this program.

(c) Security for stock loans must be the stock purchased, a personal note executed by
the borrower, and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for each
application for a stock loan. The authority may review the fee annually and make
adjustments as necessary. The application fee is initially $50. Application fees received
by the authority must be deposited in the deleted text begin revolving loan account established in section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

(e) Stock loans under this program will be made using money in the revolving
loan account established in section 41B.06.

(f) The authority may not grant stock loans in a cumulative amount exceeding
$2,000,000 for the financing of stock purchases in any one cooperative.

(g) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established in section 41B.06.

Sec. 69.

Minnesota Statutes 2014, section 41B.047, subdivision 1, as amended by
Laws 2015, chapter 44, section 27, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement a
disaster recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well
as replace seed, other crop inputs, feed, and livestock, when damaged by high winds,
hail, tornado, or flood;

(2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchase;

(3) restore farmland; or

(4) replace flocks, make building improvements, or deleted text begin obtain an operating line of credit
if the loss or damage deleted text end new text begin cover the loss of revenue when the replacement, improvements, or
loss of revenue new text end is due to the confirmed presence of new text begin the new text end highly pathogenic avian influenza
in a commercial poultry new text begin or game new text end flock new text begin located new text end in Minnesota.

Sec. 70.

Minnesota Statutes 2014, section 41B.047, subdivision 3, as amended by
Laws 2015, chapter 44, section 28, is amended to read:

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was new text begin (i) new text end sustained within a county that was the
subject of deleted text begin (i) deleted text end a state or federal disaster declaration or (ii) deleted text begin a peacetime emergency declaration
made by the governor under section 12.31 deleted text end new text begin due to the confirmed presence of the highly
pathogenic avian influenza in a commercial poultry or game flock located in Minnesota new text end ;

(3) demonstrate an ability to repay the loan; new text begin and
new text end

deleted text begin (4) for loans under subdivision 1, clauses (1) to (3), have a total net worth, including
assets and liabilities of the borrower's spouse and dependents, of less than $660,000 in
2004 and an amount in subsequent years which is adjusted for inflation by multiplying that
amount by the cumulative inflation rate as determined by the Consumer Price Index; and
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end have received at least 50 percent of average annual gross income from
farming for the past three years.

Sec. 71.

Minnesota Statutes 2014, section 41B.047, subdivision 4, as amended by
Laws 2015, chapter 44, section 29, is amended to read:

Subd. 4.

Loans.

(a) The authority may participate in a disaster recovery loan with
an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
to 45 percent of the principal amount of the loan or $200,000, whichever is less. The
interest rates and repayment terms of the authority's participation interest may differ from
the interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed four percent.

(b) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(c) Security for the disaster recovery loans must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for a
disaster recovery loan. The authority may review the fee annually and make adjustments
as necessary. The application fee is initially $50. Application fees received by the
authority must be deposited in the deleted text begin revolving loan account established under section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

(e) Disaster recovery loans under this program will be made using money in the
revolving loan account established under section 41B.06.

(f) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established under section
41B.06.

Sec. 72.

Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:

Subd. 6.

Loans.

(a) The authority may disburse loans through a fiscal agent to
farmers and agricultural landowners who are eligible under subdivision 5. The total
accumulative loan principal must not exceed $75,000 per loan.

(b) The fiscal agent may impose a loan origination fee in the amount of one percent
of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
the time of loan closing.

(c) The loan may be disbursed over a period not to exceed 12 years.

(d) A borrower may receive loans, depending on the availability of funds, for planted
areas up to 160 acres for up to:

(1) the total amount necessary for establishment of the crop;

(2) the total amount of maintenance costs, including weed control, during the first
three years; and

(3) 70 percent of the estimated value of one year's growth of the crop for years
four through 12.

(e) Security for the loan must be the crop, a personal note executed by the borrower, an
interest in the land upon which the crop is growing, and whatever other security is required
by the fiscal agent or the authority. All recording fees must be paid by the borrower.

(f) The authority may prescribe forms and establish an application process for
applicants to apply for a loan.

(g) The authority may impose a reasonable, nonrefundable application fee for each
application for a loan under this program. The application fee is initially $50. Application
fees received by the authority must be deposited in the deleted text begin revolving loan account established
under section 41B.06 deleted text end new text begin Rural Finance Authority administrative account established in
section 41B.03 new text end .

(h) Loans under the program must be made using money in the revolving loan
account established under section 41B.06.

(i) All repayments of financial assistance granted under this section, including
principal and interest, must be deposited into the revolving loan account established
under section 41B.06.

(j) The interest payable on loans made by the authority for the agroforestry loan
program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the
revenue bonds, and may be established at a higher rate necessary to pay costs associated
with the issuance of the revenue bonds and a proportionate share of the cost of administering
the program. The interest payable on loans for the agroforestry loan program funded from
sources other than revenue bond proceeds must be at a rate determined by the authority.

(k) Loan principal balance outstanding plus all assessed interest must be repaid
within 120 days of harvest, but no later than 15 years from planting.

Sec. 73.

Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may make a direct loan or participate in a loan
with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms
of the authority's participation interest may differ from repayment terms of the lender's
retained portion of the loan. Loans made under this section must be no-interest loans.

(b) Application for a direct loan or a loan participation must be made on forms
prescribed by the authority.

(c) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(d) Security for the loans must be a personal note executed by the borrower and
whatever other security is required by the eligible lender or the authority.

(e) No loan proceeds may be used to refinance a debt existing prior to application.

(f) The authority may impose a reasonable nonrefundable application fee for
each application for a direct loan or a loan participation. The authority may review the
application fees annually and make adjustments as necessary. The application fee is
initially set at $100 for a loan under subdivision 1. The fees received by the authority must
be deposited in the deleted text begin revolving loan account established in section 41B.06 deleted text end new text begin Rural Finance
Authority administrative account established in section 41B.03 new text end .

Sec. 74.

Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:

Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan
equal to 90 percent of the purchased equipment value with an eligible lender to a farmer
who is eligible under subdivision 2. Participation is limited to 45 percent of the principal
amount of the loan or $40,000, whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must
not exceed three percent. The authority may review the interest annually and make
adjustments as necessary.

(b) Standards for loan amortization must be set by the Rural Finance Authority
and must not exceed ten years.

(c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) Refinancing of existing debt is not an eligible purpose.

(e) The authority may impose a reasonable, nonrefundable application fee for
a livestock equipment loan. The authority may review the fee annually and make
adjustments as necessary. The initial application fee is $50. Application fees received
by the authority must be deposited in the deleted text begin revolving loan account established in section
41B.06 deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03 new text end .

(f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.

Sec. 75.

Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Intermediary" means any lending institution or other organization of a for-profit
or nonprofit nature that is in good standing with the state of Minnesota that has the
appropriate business structure and trained personnel suitable to providing efficient
disbursement of loan funds and the servicing and collection of loans.

(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
and other horticultural products, that are intensively cultivated.

(d) "Eligible livestock" means deleted text begin poultry that has been allowed access to the outside,
sheep, or goats deleted text end new text begin beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
ratitae, bison, sheep, horses, and llamas new text end .

Sec. 76.

new text begin [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The authority shall establish a farm opportunity loan
program to provide loans that enable farmers to:
new text end

new text begin (1) add value to crops or livestock produced in Minnesota;
new text end

new text begin (2) adopt best management practices that emphasize sufficiency and self-sufficiency;
new text end

new text begin (3) reduce or improve management of agricultural inputs resulting in environmental
improvements; or
new text end

new text begin (4) increase production of on-farm energy.
new text end

new text begin Subd. 2. new text end

new text begin Loan criteria. new text end

new text begin (a) The farm opportunity loan program shall provide loans
for purchase of new or used equipment and installation of equipment for projects that
make environmental improvements and enhance farm profitability. The loan program
shall also be used to add value to crops or livestock produced in Minnesota by, but not
limited to, initiating or expanding livestock product processing; purchasing equipment to
initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers'
processing and aggregating capacity facilitating entry into farm-to-institution and other
markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or
other operating expenses.
new text end

new text begin (b) The authority may impose a reasonable, nonrefundable application fee for a farm
opportunity loan. The authority may review the fee annually and make adjustments as
necessary. The initial application fee is $50. Application fees received by the authority
must be deposited in the Rural Finance Authority administrative account established
in section 41B.03.
new text end

new text begin (c) Loans may only be made to Minnesota residents engaged in farming. Standards
for loan amortization must be set by the Rural Finance Authority and must not exceed
ten years.
new text end

new text begin (d) The borrower must show the ability to repay the loan.
new text end

new text begin (e) Refinancing of existing debt is not an eligible expense.
new text end

new text begin (f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.
new text end

new text begin Subd. 3. new text end

new text begin Loan participation. new text end

new text begin The authority may participate in a farm opportunity
loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a
group of farmers on joint projects who are eligible under subdivision 2, paragraph (c),
and who are actively engaged in farming. Participation is limited to 45 percent of the
principal amount of the loan or $45,000 per individual, whichever is less. For loans to a
group made up of four or more individuals, participation is limited to 45 percent of the
principal amount of the loan or $180,000, whichever is less. The interest rate on the
loans must not exceed six percent.
new text end

Sec. 77.

Minnesota Statutes 2014, section 41B.06, is amended to read:

41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

There is established in the rural finance administration fund a Rural Finance
Authority revolving loan account that is eligible to receive appropriations and the transfer
of loan funds from other programs. All repayments of financial assistance granted from
this account, including principal and interest, must be deposited into this account. Interest
earned on money in the account accrues to the account, and the money in the account is
appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority
livestock equipment, methane digester, disaster recovery, value-added agricultural
product, agroforestry, deleted text begin and deleted text end agricultural microloan new text begin , and farm opportunity new text end loan programs,
including costs incurred by the authority to establish and administer the programs.

Sec. 78.

Minnesota Statutes 2014, section 135A.52, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Farm business management. new text end

new text begin Minnesota State Colleges and Universities
campuses that offer farm business management may specify space availability in the
delivery of farm business management courses.
new text end

Sec. 79.

Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:

Subd. 2.

Wild hemp.

A county board, by resolution, may appropriate and spend
money as necessary to spray and otherwise eradicate wild hemp deleted text begin , commonly known as
marijuana, deleted text end on private property within the county. The county board may authorize the
use of county equipment, personnel and supplies and materials to spray or otherwise
eradicate wild hemp on private property, and may pro rate the expenses involved between
the county and owner or occupant of the property. new text begin Industrial hemp grown by a person
licensed under chapter 18K is not wild hemp.
new text end

Sec. 80.

Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:

Subd. 4.

Reports.

(a) The chief executive officer of every pension or investment
fund, corporation, limited partnership, limited liability company, or entity that is seeking
to qualify for an exemption from the commissioner, and the trustee of a family farm trust
that holds any interest in agricultural land or land used for the breeding, feeding, pasturing,
growing, or raising of livestock, dairy or poultry, or products thereof, or land used for
the production of agricultural crops or fruit or other horticultural products, other than a
bona fide encumbrance taken for purposes of security, or which is engaged in farming
or proposing to commence farming in this state after May 20, 1973, shall file with the
commissioner a report containing the following information and documents:

(1) the name of the pension or investment fund, corporation, limited partnership, or
limited liability company and its place of incorporation, certification, or registration;

(2) the address of the pension or investment plan headquarters or of the registered
office of the corporation in this state, the name and address of its registered agent in this state
and, in the case of a foreign corporation, limited partnership, or limited liability company,
the address of its principal office in its place of incorporation, certification, or registration;

(3) the acreage and location listed by quarter-quarter section, township, and county
of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry
in this state owned or leased by the pension or investment fund, limited partnership,
corporation, or limited liability company;

(4) the names and addresses of the officers, administrators, directors, or trustees of
the pension or investment fund, or of the officers, shareholders owning more than ten
percent of the stock, including the percent of stock owned by each such shareholder, the
members of the board of directors of the corporation, and the members of the limited
liability company, and the general and limited partners and the percentage of interest in
the partnership by each partner;

(5) the farm products which the pension or investment fund, limited partnership,
corporation, or limited liability company produces or intends to produce on its agricultural
land;

(6) with the first report, a copy of the title to the property where the farming operations
are or will occur indicating the particular exception claimed under subdivision 3; and

(7) with the first or second report, a copy of the conservation plan proposed by the
soil and water conservation district, and with subsequent reports a statement of whether
the conservation plan was implemented.

The report of a corporation, trust, limited liability company, or partnership seeking
to qualify hereunder as a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm partnership, an authorized farm
partnership, a family farm limited liability company, an authorized farm limited liability
company, or a family farm trust or under an exemption from the commissioner shall
contain the following additional information: the number of shares, partnership interests,
or governance and financial rights owned by persons or current beneficiaries of a family
farm trust residing on the farm or actively engaged in farming, or their relatives within
the third degree of kindred according to the rules of the civil law or their spouses; the
name, address, and number of shares owned by each shareholder, partnership interests
owned by each partner or governance and financial rights owned by each member, and a
statement as to percentage of gross receipts of the corporation derived from rent, royalties,
dividends, interest, and annuities. No pension or investment fund, limited partnership,
corporation, or limited liability company shall commence farming in this state until the
commissioner has inspected the report and certified that its proposed operations comply
with the provisions of this section.

(b) Every pension or investment fund, limited partnership, trust, corporation, or
limited liability company as described in paragraph (a) shall, prior to April 15 of each
year, file with the commissioner a report containing the information required in paragraph
(a), based on its operations in the preceding calendar year and its status at the end of the
year. A pension or investment fund, limited partnership, corporation, or limited liability
company that does not file the report by April 15 must pay a $500 civil penalty. The
penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.

(c) The commissioner may, for good cause shown, issue a written waiver or
reduction of the civil penalty for failure to make a timely filing of the annual report
required by this subdivision. The waiver or reduction is final and conclusive with respect
to the civil penalty, and may not be reopened or modified by an officer, employee, or
agent of the state, except upon a showing of fraud or malfeasance or misrepresentation
of a material fact. The report required under paragraph (b) must be completed prior to a
reduction or waiver under this paragraph. The commissioner may enter into an agreement
under this paragraph only once for each corporation or partnership.

new text begin (d) A report required under paragraph (a) or (b) must be submitted with a filing fee
of $15. The fee must be deposited in the state treasury and credited to an account in
the agricultural fund. Money in the account, including interest, is appropriated to the
commissioner for the administrative expenses of this section.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Failure to file a required report or the willful filing of false information is a
gross misdemeanor.

Sec. 81.

Minnesota Statutes 2014, section 583.215, is amended to read:

583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
to 583.32, expire June 30, deleted text begin 2016 deleted text end new text begin 2017 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 23, 2016, if the legislature does
not meet in regular session in calendar year 2016 before May 23, 2016. If the legislature
meets in regular session in calendar year 2016 before May 23, 2016, this section is void.
new text end

Sec. 82.

Laws 2014, chapter 312, article 12, section 3, is amended to read:

Sec. 3. AGRICULTURE.

$

-0-

$

2,750,000

$2,000,000 in 2015 is for a grant to Second
Harvest Heartland on behalf of the six
Feeding America food banks that serve
Minnesota to compensate agricultural
producers and processors for costs incurred
to harvest and package for transfer surplus
fruits, vegetables, or other agricultural
commodities that would otherwise go
unharvested deleted text begin or deleted text end new text begin , new text end be discarded new text begin , or be sold in
a secondary market new text end . 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 appropriation must be from Minnesota
producers and processors. Second Harvest
Heartland must report when required by, and
in the form prescribed by, the commissioner.
deleted text begin For fiscal year 2015, deleted text end Second Harvest
Heartland may use up to 11 percent of any
grant received for administrative expenses
new text begin and up to four percent of the grant for
transportation expenses new text end . deleted text begin For fiscal years
2016 and 2017, Second Harvest Heartland
may use up to five percent of any grant
received for administrative expenses. deleted text end This
is a onetime appropriation and is available
until June 30, 2017.

The commissioner shall examine how other
states are implementing the industrial hemp
research authority provided in Public Law
113-79 and gauge the interest of Minnesota
higher education institutions. No later
than January 15, 2015, the commissioner
must report the information and items for
legislative consideration to the legislative
committees with jurisdiction over agriculture
policy and finance.

$350,000 in 2015 is for an increase in retail
food handler inspections.

$200,000 in 2015 is added to the
appropriation in Laws 2013, chapter 114,
article 1, section 3, subdivision 4, for
distribution to the state's county fairs. This is
a onetime appropriation.

$200,000 in 2015 is for a grant as determined
by the commissioner to a public higher
education institution to research porcine
epidemic diarrhea virus. This is a onetime
appropriation and is available until June 30,
2017.

Sec. 83. new text begin LIVESTOCK INDUSTRY STUDY.
new text end

new text begin The commissioner of agriculture must identify causes of the relative growth or
decline in the number of head of poultry and livestock produced in Minnesota, Iowa,
North Dakota, South Dakota, Wisconsin, and Nebraska over the last ten years, including
but not limited to the impact of nuisance conditions and lawsuits filed against poultry or
livestock farms. No later than February 1, 2016, the commissioner must report findings
by poultry and livestock sector and provide recommendations on how to strengthen and
expand Minnesota animal agriculture to the legislative committees with jurisdiction over
agriculture policy and finance.
new text end

Sec. 84.

new text begin CORRECTIONAL FACILITY VOCATIONAL TRAINING PILOT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot program. new text end

new text begin The commissioner of agriculture must coordinate
a pilot program operated by the Northeast Regional Corrections Center to train inmates
for careers as meat cutters upon release. The commissioner must facilitate program
development and ensure that the program prepares inmates to meet applicable food safety
and licensure requirements.
new text end

new text begin Subd. 2. new text end

new text begin Program development. new text end

new text begin In facilitating development of the pilot program,
the commissioner must consult with the commissioner of employment and economic
development and a representative of each of the following organizations:
new text end

new text begin (1) Northeast Regional Corrections Center; and
new text end

new text begin (2) United Food and Commercial Workers.
new text end

new text begin Subd. 3. new text end

new text begin Report required. new text end

new text begin No later than February 1, 2017, the commissioner must
report on the progress and outcomes of the program to the legislative committees with
jurisdiction over agriculture, economic development, higher education, and public safety.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires on June 30, 2017.
new text end

Sec. 85. new text begin URBAN AGRICULTURE DEVELOPMENT PROPOSAL.
new text end

new text begin The commissioner of agriculture must convene interested stakeholders and develop
a proposal to effectively and efficiently promote urban agriculture in Minnesota cities.
For purposes of this section, "urban agriculture" means producing agricultural plants,
poultry, or livestock on public or private property within city limits. No later than January
15, 2016, the commissioner must report to the legislative committees with jurisdiction
over agriculture policy and finance and submit proposed legislation that includes a new
definition of urban agriculture if the commissioner and stakeholders determine that a
different definition more accurately defines urban agriculture.
new text end

Sec. 86. new text begin BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
new text end

new text begin The balances in the accounts created under Minnesota Statutes, sections 41B.03,
subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision
4, are transferred to the Rural Finance Authority administrative account established under
Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
new text end

new text begin The balance in the account created under Minnesota Statutes, section 17.115,
is transferred to the Rural Finance Authority revolving loan account established under
Minnesota Statutes, section 41B.06, and the original account is abolished.
new text end

Sec. 87. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and
116V.03, new text end new text begin are repealed.
new text end

Sec. 88. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 62 to 77 and section 86 are effective the day following final enactment.
new text end

new text begin (b) Laws 2015, chapter 44, sections 22 to 26 and section 29, are effective the day
following final enactment.
new text end