1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/15/2015 10:11am
A bill for an act
relating to agriculture; establishing a budget for agriculture; appropriating money
for agriculture, animal health, and agricultural utilization research; making
policy and technical changes to various agricultural related provisions, including
provisions related to pesticide control, plant protection, nursery law, seeds, dairy,
food handlers, food, farmland, farming, and loans; modifying license exclusions
for the direct sale of certain prepared food; establishing the Agriculture Research,
Education, Extension, and Technology Transfer Board; providing incentive
payments; requiring studies; requiring reports; providing a vocational training
pilot program; establishing the farm opportunity loan program; modifying fees
and surcharges; creating accounts; amending Minnesota Statutes 2014, sections
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; 21.89, subdivision 2; 21.891, subdivisions 2, 5; 25.341, subdivision 2;
25.39, subdivisions 1, 1a; 28A.03, by adding a subdivision; 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, 4; 41B.048, subdivision 6; 41B.049, subdivision 4;
41B.055, subdivision 3; 41B.056, subdivision 2; 41B.06; 135A.52, by adding a
subdivision; 500.24, subdivision 4; Laws 2014, chapter 312, article 12, section 3;
proposing coding for new law in Minnesota Statutes, chapters 18C; 28A; 41A;
41B; 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:
Section 1. new text begin AGRICULTURE APPROPRIATIONS
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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 |
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new text begin
Available for the Year new text end |
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new text begin
Ending June 30 new text end |
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2016 new text end |
new text begin
2017 new text end |
Sec. 2. new text begin DEPARTMENT OF AGRICULTURE
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new text begin Subdivision 1. new text end
new text begin
Total Appropriation
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new text begin
$ new text end |
new text begin
36,756,000 new text end |
new text begin
$ new text end |
new text begin
37,724,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
2016 new text end |
new text begin
2017 new text end |
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new text begin
General new text end |
new text begin
36,178,000 new text end |
new text begin
37,146,000 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
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new text begin
16,377,000 new text end |
new text begin
16,402,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
2016 new text end |
new text begin
2017 new text end |
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new text begin
General new text end |
new text begin
15,799,000 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 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. The first
year appropriation is for claims submitted
during fiscal year 2016 and for all claims
submitted during fiscal year 2014 or 2015
that were not paid by the commissioner due
to a shortage of funding. 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
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new text begin
3,873,000 new text end |
new text begin
3,873,000 new text end |
new text begin
The commissioner must 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
$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
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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
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new text begin
10,880,000 new text end |
new text begin
11,823,000 new text end |
new text begin
$3,550,000 the first year and $4,100,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer fund under Minnesota
Statutes, section 41A.14, subdivision 3.
The commissioner may use a portion of
the appropriation each year only for direct
expenses incurred by the commissioner to
provide administrative services and to act
as the fiscal agent for the board as required
under Minnesota Statutes, section 41A.14,
subdivision 1, paragraph (c).
new text end
new text begin
To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 2, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The board may award
grants to the University of Minnesota to
support the Forever Green Initiative.
new text end
new text begin
$550,000 is appropriated in fiscal year 2015
to the commissioner of agriculture for the
costs of avian influenza emergency response
activities not covered by federal funding.
The appropriation under this paragraph is
available the day following final enactment.
This is a onetime appropriation and is
available until June 30, 2016.
new text end
new text begin
$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
under Minnesota Statutes, section 41A.12.
These appropriations do not cancel and are
available until spent. 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
$6,280,000 the first year and $6,223,000
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; facilitating
the start-up, modernization, or expansion
of other beginning and transitioning
farms; 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, $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 the Minnesota Biofuels Association 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.
new text end
new text begin
Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $25,000 the first
year is for the livestock industry study.
new text end
new text begin
Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $50,000 the first
year is for the imported bait fish feasibility
study.
new text end
new text begin
Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $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
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new text begin
5,626,000 new text end |
new text begin
5,626,000 new text end |
new text begin
$75,000 the first year and $75,000 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
$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 begin
$ new text end |
new text begin
5,918,000 new text end |
new text begin
$ new text end |
new text begin
5,984,000 new text end |
new text begin
$600,000 the first year and $600,000 the
second year are for rapid response to poultry
and livestock disease, including but not
limited to H5N2 avian flu.
new text end
Sec. 4. new text begin AGRICULTURAL UTILIZATION
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new text begin
$ new text end |
new text begin
2,643,000 new text end |
new text begin
$ new text end |
new text begin
2,643,000 new text end |
Sec. 5. new text begin BOARD OF REGENTS OF THE
|
new text begin
$ new text end |
new text begin
300,000 new text end |
new text begin
$ new text end |
new text begin
300,000 new text end |
new text begin
$300,000 the first year and $300,000 the
second year are for the Invasive Terrestrial
Plants and Pests Center for rapid response to
plant diseases and pests.
new text end
Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
(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 anddeleted text end grant deleted text begin programsdeleted text end new text begin program new text end under deleted text begin sections 17.115
anddeleted text end new text begin sectionnew 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.
Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
"Structural pest" means deleted text begin adeleted text end new text begin an invertebratenew text end pestdeleted text begin , other
than a plant,deleted text end new text begin or commensal rodentnew text end in, on, under, or near a structurenew text begin such as a residential
or commercial buildingnew text end .
Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
"Structural pest control" means the control of
any structural pest through the deleted text begin use of a device, a procedure, ordeleted 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 vaultsdeleted text begin , and the business activity related to use of a
device, a procedure, or application of a pesticidedeleted text end .
Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:
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 chapternew 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 .
Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
(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 applyingdeleted text end new text begin to purchase a restricted use pesticide or applynew 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
Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
(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 applyingdeleted text end new text begin to purchase a restricted use pesticide or applynew 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.
Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
(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.
Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:
(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 30deleted text end new text begin 39new 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.
Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:
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 programdeleted 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
This section expires June 30, 2020.
new text end
Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
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
Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
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 shalldeleted 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.
Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:
(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 costsnew 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) Thenew text end certificate fee deleted text begin for product value greater than $250:deleted text end new text begin isnew 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 $250deleted 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.
Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
"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 cropsnew text begin or sodnew text end ;
(2) deleted text begin thedeleted text end seeds deleted text begin of grasses, cereal grains, vegetable crops, and flowersdeleted 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.
Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:
new text begin
"Sod" means the upper portion of soil that contains the roots of
grasses and the living grass plants.
new text end
Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:
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
Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
(a) An individual may offer nursery stock for sale and be
exempt from the requirement to obtain a nursery stock deleted text begin dealerdeleted 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.
Minnesota Statutes 2014, section 18H.07, is amended to read:
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.
(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
certificationdeleted 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
(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
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 hourdeleted text end new text begin a rate sufficient to
recover all inspection costsnew text end , including the driving time to and from the location in addition
to the time spent conducting the inspection.
Minnesota Statutes 2014, section 18H.17, is amended to read:
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
Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
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.
Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:
(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 $50deleted text end new text begin $75new 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 $50deleted text end new text begin $75new text end ;
(2) for gross sales of $25,001 to $50,000, the annual permit fee is deleted text begin $100deleted text end new text begin $150new text end ;
(3) for gross sales of $50,001 to $100,000, the annual permit fee is deleted text begin $200deleted text end new text begin $300new text end ;
(4) for gross sales of $100,001 to $250,000, the annual permit fee is deleted text begin $500deleted text end new text begin $750new text end ;
(5) for gross sales of $250,001 to $500,000, the annual permit fee is deleted text begin $1,000deleted text end new text begin $1,500new text end ;
and
(6) for gross sales of $500,001 deleted text begin and abovedeleted text end new text begin to $1,000,000new text end , the annual permit fee is
deleted text begin $2,000deleted 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 $4,500new 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 $50deleted text end new text begin $75new 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 6.3deleted text end new text begin 9new text end cents per hundredweight;
(2) rye, field beans, deleted text begin soybeans,deleted text end buckwheat, and flax, deleted text begin 8.4deleted text end new text begin 12new text end cents per hundredweight;
(3) field corn, deleted text begin 29.4deleted text end new text begin 17new text end cents per deleted text begin hundredweightdeleted text end new text begin 80,000 seed unitnew text end ;
(4) forage, lawn and turf grasses, and legumes, deleted text begin 49deleted text end new text begin 69new text end cents per hundredweight;
(5) sunflower, deleted text begin $1.40deleted text end new text begin $1.96new text end per hundredweight;
(6) sugar beet, deleted text begin $3.29deleted text end new text begin 12 centsnew text end per deleted text begin hundredweightdeleted text end new text begin 100,000 seed unitnew 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.
Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:
The fee is deleted text begin $25deleted text end new text begin $50new text end for each variety
registered for sale by brand name.
Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:
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 $25deleted 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 $50deleted text end new text begin $100new text end late fee in addition to the license fee.
Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:
(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 $50deleted text end new text begin $100new 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 $25deleted 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 $10deleted text end new text begin $75 new text end per annual reporting period.
Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:
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 $10deleted text end new text begin $100new 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.
Minnesota Statutes 2014, section 28A.03, is amended by adding a subdivision
to read:
new text begin
"Hazard analysis critical control point plan" or "HACCP
plan" means a written document that delineates the formal procedures for following the
HACCP principles developed by the National Advisory Committee on Microbiological
Criteria for Foods.
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
(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
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
Except as provided in subdivision 8, an individual who
prepares and sells exempt food under subdivision 1 must register annually with the
commissioner. The annual registration fee is $50.
new text end
new text begin
Except as provided in subdivision 8, an individual who prepares
and sells exempt food under subdivision 1 must complete a safe food handling training
course that is approved by the commissioner. 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
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
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
new text begin
Subdivisions 4 and 5 do not apply to an individual
with gross receipts of less than $5,000 in a calendar year from the sale of exempt food.
new text end
Minnesota Statutes 2014, section 32.075, is amended to read:
deleted text begin Everydeleted 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 shalldeleted text end new text begin is new text end not
deleted text begin bedeleted 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 suchdeleted 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 anddeleted text end new text begin is $60. The feenew text end shall be paid to the commissioner before
deleted text begin anydeleted text end new text begin the commissioner issues an initial or renewal new text end license deleted text begin or renewal thereof is issueddeleted text end . If a
license renewal is not applied for on or before January 1 of each year, a penalty of deleted text begin $10deleted 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 treasurydeleted text end new text begin deposited in the dairy services account in the agricultural fundnew text end .
Minnesota Statutes 2014, section 32.105, is amended to read:
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 .71deleted text end new text begin 1.1new 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.
new text begin
(a) The Agriculture Research, Education, Extension, and
Technology Transfer Board is created and consists of the following members:
new text end
new text begin
(1) the commissioner of agriculture;
new text end
new text begin
(2) the dean of the College of Food, Agricultural and Natural Resource Sciences
at the University of Minnesota;
new text end
new text begin
(3) a person representing the Minnesota State Colleges and Universities system,
appointed by the chancellor;
new text end
new text begin
(4) a representative of the Minnesota Farm Bureau and 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
The commissioner and the dean shall be cochairs. The commissioner, the dean, and the
representative of the Minnesota State Colleges and Universities system are nonvoting
members of the board.
new text end
new text begin
(b) Members under paragraph (a), clauses (8) and (9), shall be appointed by the
commissioner. The commissioner shall not provide daily or expense compensation for
board members.
new text end
new text begin
(c) The commissioner shall provide administrative services for the board and act
as its fiscal agent.
new text end
new text begin
(d) For each board meeting, the commissioner shall provide advanced notice and a
copy of the meeting minutes to the chairs and ranking minority members of the house of
representatives and senate committees with jurisdiction over agriculture finance.
new text end
new text begin
The board shall provide for investments that will most
efficiently achieve long-term agricultural productivity increases through improved
infrastructure, vision, and accountability. Priority shall be given to human infrastructure.
The board 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; the University of
Minnesota Veterinary School; the Veterinary Diagnostic Laboratory; the Stakman-Borlaug
Center; and the Minnesota Agricultural 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, challenge grants awarded by
the Minnesota Agriculture Education Leadership Council, farm business management,
mentoring programs, graduate debt forgiveness, and high school programs.
new text end
new text begin
An agriculture research, education, extension, and technology
transfer fund is created in the state treasury. The fund consists of money received in the
form of gifts, grants, reimbursement, or appropriations from any source for any of the
purposes provided in subdivision 2, and any interest or earnings of the fund. Money in
the fund is appropriated to the commissioner of agriculture for the purposes listed under
subdivision 2.
new text end
new text begin
For the purposes of sections 41A.15 to 41A.19, the terms
defined in this section have the meanings given them.
new text end
new text begin
"Advanced biofuel" has the meaning given in section
239.051, subdivision 1a.
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
"Cellulosic biomass" means material primarily made
up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.
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
"Commissioner" means the commissioner of agriculture.
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
"MMbtu" means 1,000,000 British thermal units.
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
"Renewable chemical" means a chemical with
biobased content as defined in section 41A.105, subdivision 1a.
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
(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.
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
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
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
(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
(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 an independent certified
public accountant licensed 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
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
(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.
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
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
(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
(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 an independent certified public accountant licensed 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
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
(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.
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
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
(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
(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 an independent certified public accountant licensed 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
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
Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
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 programsdeleted text end new text begin the Rural Finance Authority administrative account
established in subdivision 7new text end .
Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision
to read:
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
Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
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 programdeleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03new text end .
Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
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 programdeleted text end new text begin the Rural Finance Authority administrative
account established in section 41B.03new text end .
Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
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.
Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
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 programdeleted text end new text begin the Rural Finance Authority administrative account
established in section 41B.03new text end .
Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
(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.06deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03new 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.
Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:
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; deleted text begin or
deleted text end
(2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchasedeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(3) restore farmland.
new text end
Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:
(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 $50,000, 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.06deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03new 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.
Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
(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.06deleted text end new text begin Rural Finance Authority administrative account established in
section 41B.03new 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.
Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
(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.06deleted text end new text begin Rural Finance
Authority administrative account established in section 41B.03new text end .
Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
(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.06deleted text end new text begin Rural Finance Authority administrative account established in section 41B.03new text end .
(f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.
Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
(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 goatsdeleted text end new text begin beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
ratitae, bison, sheep, horses, and llamasnew 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
(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
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
Minnesota Statutes 2014, section 41B.06, is amended to read:
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 anddeleted text end agricultural microloannew text begin , and farm opportunitynew text end loan programs,
including costs incurred by the authority to establish and administer the programs.
Minnesota Statutes 2014, section 135A.52, is amended by adding a
subdivision to read:
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
Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:
(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) All reports required by paragraph (a) shall include 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.
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 ordeleted text end new text begin ,new text end be discardednew text begin , or be sold in
a secondary marketnew 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 expensesnew 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.
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
new text begin
The commissioner of agriculture shall conduct a study to assess the feasibility of a
Minnesota company with a valid importation permit under Minnesota Statutes, section
97C.515, procuring health-certified, farm-raised bait fish from an out-of-state facility and
transporting the fish directly to a Minnesota facility for the purpose of resale. The work
group also must study how to increase Minnesota production of the bait fish species that
would otherwise be imported from producers in other states. The commissioner shall
appoint a work group of seven individuals to conduct the study, including representatives
of the Departments of Agriculture and Natural Resources, Explore Minnesota, and private
aquaculture, a University of Minnesota aquatic invasive species specialist, a Minnesota
aquaculture extension agent, and a United States Fish and Wildlife aquatic invasive
species specialist. The work group shall report the study to the legislative policy and
finance committees and divisions with jurisdiction over agriculture, environment, and
natural resources by February 1, 2016.
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
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
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
This section expires on June 30, 2017.
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
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
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