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Minnesota Legislature

Office of the Revisor of Statutes

HF 1733

Conference Committee Report - 91st Legislature (2019 - 2020) Posted on 05/15/2019 05:44pm

KEY: stricken = removed, old language.
underscored = added, new language.
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CONFERENCE COMMITTEE REPORT ON H. F. No. 1733

A bill for an act
relating to agriculture; making policy and technical changes to various agricultural
provisions including provisions related to hemp, food handlers, eggs, milk, cheese,
bioincentive programs, loan programs, pesticides, nursery stock, open-air swine
basins, and other agriculture provisions; amending Minnesota Statutes 2018,
sections 18B.02; 18H.10; 18K.02, subdivision 3; 18K.06; 25.33, subdivision 8;
28A.04, subdivision 1; 28A.05; 28A.075; 28A.0752, subdivisions 1, 2; 28A.08,
subdivision 3; 29.26; 31.94; 32D.13, by adding a subdivision; 32D.20, subdivision
2; 32D.22; 34A.11, subdivision 7; 41A.15, subdivisions 2, 10, by adding a
subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17, subdivisions 1, 2, 3; 41A.18,
subdivisions 1, 2, 3; 41B.02, subdivision 10a; 41B.03, subdivision 3; 41B.0391,
subdivision 1; 41B.049, subdivisions 1, 5; 41B.055, subdivision 3; 41B.057,
subdivision 3; 116.0714; repealing Minnesota Statutes 2018, section 41A.15,
subdivisions 2a, 2b.

May 15, 2019
The Honorable Melissa Hortman
Speaker of the House of Representatives

The Honorable Jeremy R. Miller
President of the Senate

We, the undersigned conferees for H. F. No. 1733 report that we have agreed upon the
items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 1733 be further amended
as follows:

Delete everything after the enacting clause and insert:

"Section 1.

Minnesota Statutes 2018, section 17.494, is amended to read:


17.494 AQUACULTURE PERMITS; RULES.

new text begin (a) new text endThe commissioner shall act as permit or license coordinator for aquatic farmers and
shall assist aquatic farmers to obtain licenses or permits.

deleted text begin By July 1, 1992,deleted text end new text begin(b) new text endA state agency issuing multiple permits or licenses for aquaculture
shall consolidate the permits or licenses required for every aquatic farm location. The
Department of Natural Resources transportation permits are exempt from this requirement.
State agencies shall adopt rules or issue commissioner's orders that establish permit and
license requirements, approval timelines, and compliance standards.new text begin Saltwater aquatic farms,
as defined in section 17.4982, and processing facilities for saltwater aquatic life, as defined
in section 17.4982, must be classified as agricultural operations for purposes of any
construction, discharge, or other permit issued by the Pollution Control Agency.
new text end

Nothing in this section modifies any state agency's regulatory authority over aquaculture
production.

Sec. 2.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:


new text begin Subd. 20a.new text end

new text beginSaltwater aquaculture.new text end

new text begin"Saltwater aquaculture" means the commercial
propagation and rearing of saltwater aquatic life primarily for consumption as human food.
new text end

Sec. 3.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:


new text begin Subd. 20b.new text end

new text beginSaltwater aquatic farm.new text end

new text begin"Saltwater aquatic farm" means a facility used for
saltwater aquaculture including but not limited to artificial ponds, vats, tanks, raceways,
and other facilities that an aquatic farmer owns or has exclusive control of for the sole
purpose of producing saltwater aquatic life.
new text end

Sec. 4.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:


new text begin Subd. 20c.new text end

new text beginSaltwater aquatic life.new text end

new text begin"Saltwater aquatic life" means aquatic species that
are saltwater obligates or perform optimally when raised in salinities closer to that of natural
seawater and need saltwater to survive. Saltwater aquatic life includes but is not limited to
crustaceans.
new text end

Sec. 5.

new text begin[17.499] TRANSPORTATION OR IMPORTATION OF SALTWATER
AQUATIC LIFE; QUARANTINE REQUIREMENT.
new text end

new text begin Subdivision 1.new text end

new text beginPurpose.new text end

new text beginThe legislature finds that it is in the public interest to increase
private saltwater aquaculture production and processing in this state under the coordination
of the commissioner of agriculture. Additional private production will reduce dependence
on foreign suppliers and benefit the rural economy by creating new jobs and economic
activity.
new text end

new text begin Subd. 2.new text end

new text beginTransportation permit.new text end

new text begin(a) Notwithstanding the requirements in section
17.4985, saltwater aquatic life transportation and importation requirements are governed
by this section. A transportation permit is required before importation or intrastate
transportation of saltwater aquatic life not exempted under subdivision 3. A transportation
permit may be used for multiple shipments within the 30-day term of the permit if the source
and the destination are the same. Transportation permits must be obtained from the
commissioner before shipment of saltwater aquatic life.
new text end

new text begin (b) An application for a transportation permit must be made in the form required by the
commissioner. The commissioner may reject an incomplete application.
new text end

new text begin (c) An application for a transportation permit must be accompanied by satisfactory
evidence, as determined by the commissioner, that the shipment is free of any nonindigenous
species of animal other than the saltwater aquatic species and either:
new text end

new text begin (1) the facility from which the saltwater aquatic life originated has provided
documentation of 36 or more consecutive months of negative testing by an approved
laboratory as free of any disease listed by OIE - the World Organisation for Animal Health
for that species following the testing guidelines outlined in the OIE Aquatic Animal Health
Code for crustaceans or the AFS Fish Health Blue Book for other species, as appropriate;
or
new text end

new text begin (2) the saltwater aquatic life to be imported or transported includes documentation of
negative testing for that specific lot by an approved laboratory as free of any disease listed
by OIE - the World Organisation for Animal Health for crustaceans or in the AFS Fish
Health Blue Book for other species, as appropriate.
new text end

new text begin If a shipment authorized by the commissioner under clause (1) includes saltwater aquatic
life that originated in a foreign country, the shipment must be quarantined at the receiving
facility according to a quarantine plan approved by the commissioner. A shipment authorized
by the commissioner under clause (2) must be quarantined at the receiving facility according
to a quarantine plan approved by the commissioner.
new text end

new text begin (d) For purposes of this subdivision, "approved laboratory" means a laboratory approved
by the commissioner or the United States Department of Agriculture, Animal and Plant
Health Inspection Services.
new text end

new text begin (e) No later than 14 calendar days after a completed transportation permit application
is received, the commissioner shall approve or deny the transportation permit application.
new text end

new text begin (f) A copy of the transportation permit must accompany a shipment of saltwater aquatic
life while in transit and must be available for inspection by the commissioner.
new text end

new text begin (g) A vehicle used by a licensee for transporting aquatic life must be identified with the
license number and the licensee's name and town of residence as it appears on the license.
A vehicle used by a licensee must have identification displayed so that it is readily visible
from either side of the vehicle in letters and numbers not less than 2-1/2 inches high and
three-eighths inch wide. Identification may be permanently affixed to vehicles or displayed
on removable plates or placards placed on opposite doors of the vehicle or on the tanks
carried on the vehicle.
new text end

new text begin (h) An application to license a vehicle for brood stock or larvae transport or for use as
a saltwater aquatic life vendor that is received by the commissioner is a temporary license
until approved or denied by the commissioner.
new text end

new text begin Subd. 3.new text end

new text beginExemptions.new text end

new text begin(a) A transportation permit is not required to transport or import
saltwater aquatic life:
new text end

new text begin (1) previously processed for use as food or other purposes unrelated to propagation;
new text end

new text begin (2) transported directly to an outlet for processing as food or for other food purposes if
accompanied by shipping documents;
new text end

new text begin (3) that is being exported if accompanied by shipping documents;
new text end

new text begin (4) that is being transported through the state if accompanied by shipping documents;
or
new text end

new text begin (5) transported intrastate within or between facilities licensed for saltwater aquaculture
by the commissioner if accompanied by shipping documents.
new text end

new text begin (b) Shipping documents required under paragraph (a) must include the place of origin,
owner or consignee, destination, number, species, and satisfactory evidence, as determined
by the commissioner, of the disease-free certification required under subdivision 2, paragraph
(c), clauses (1) and (2).
new text end

Sec. 6.

Minnesota Statutes 2018, section 18B.34, subdivision 5, is amended to read:


Subd. 5.

Fees.

(a) new text beginExcept as provided under paragraph (b), new text enda person initially applying
for or renewing a noncommercial applicator license must pay a nonrefundable application
fee of $50deleted text begin, except an applicant who is a government or Conservation Corps Minnesota
employee who uses pesticides in the course of performing official duties must pay a
nonrefundable application fee of $10
deleted text end.

new text begin (b) A government employee, a contractor providing rest area custodial services for the
commissioner of transportation, or a Conservation Corps Minnesota employee is eligible
for a reduced fee of $10 if the employee or contractor uses pesticides in the course of
performing official duties.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.

deleted text begin (c)deleted text endnew text begin (d)new text end An application for a duplicate noncommercial applicator license must be
accompanied by a nonrefundable application fee of $10.

Sec. 7.

Minnesota Statutes 2018, section 18H.10, is amended to read:


18H.10 STORAGE OF NURSERY STOCK.

(a) All nursery stock must be kept and displayed under conditions of temperature, light,
and moisture sufficient to maintain the viability and vigor of the nursery stock.

(b) Packaged dormant nursery stock must be stored under conditions that retard growth,
prevent etiolated growth, and protect its viability.

(c) Balled and burlapped nursery stock being held for sale to the public must be kept in
a moisture-holding material approved by the commissioner and not toxic to plants. The
moisture-holding material must adequately cover and protect the ball of earth and must be
kept moist at all times.new text begin The commissioner may approve alternative nursery stock management
practices to maintain the viability of balled and burlapped stock.
new text end

Sec. 8.

Minnesota Statutes 2018, section 25.33, subdivision 8, is amended to read:


Subd. 8.

Drug.

"Drug" meansnew text begin (1)new text end any article intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in animals other than humansnew text begin;new text end andnew text begin (2)new text end articles
other than feed intended to affect the structure or any function of the animal body.

Sec. 9.

Minnesota Statutes 2018, section 28A.04, subdivision 1, is amended to read:


Subdivision 1.

Application; date of issuance.

(a) No person shall engage in the business
of manufacturing, processing, selling, handling, or storing food without having first obtained
from the commissioner a license for doing such business. Applications for such license shall
be made to the commissioner in such manner and time as required and upon such forms as
provided by the commissioner and shall contain the name and address of the applicant,
address or description of each place of business, and the nature of the business to be
conducted at each place, and such other pertinent information as the commissioner may
require.

(b) A retail or wholesale food handler license shall be issued for the period July 1 to
June 30 following and shall be renewed thereafter by the licensee on or before July 1 each
year, except that:

(1) licenses for all mobile food concession units and retail mobile units must be issued
for the period April 1 to March 31, and must be renewed thereafter by the licensee on or
before April 1 each year; and

(2) a license issued for a temporary food concession stand must have a license issuance
and renewal date consistent with appropriate statutory provisions.

new text begin (c) A custom exempt food handler license shall be issued for the period July 1 to June
30 following and shall be renewed thereafter by the licensee on or before July 1 each year.
The custom exempt food handler license is for businesses that only conduct custom exempt
operations and mark all products as "Not For Sale." Food handlers that conduct retail exempt
operations or other operations other than custom exempt processing or slaughter are not
eligible for this license.
new text end

new text begin (d) new text endA license for a food broker or for a food processor or manufacturer shall be issued
for the period January 1 to December 31 following and shall be renewed thereafter by the
licensee on or before January 1 of each year, except that a license for a wholesale food
processor or manufacturer operating only at the state fair shall be issued for the period July
1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1
of each year. A penalty for a late renewal shall be assessed in accordance with section
28A.08.

deleted text begin (c)deleted text endnew text begin (e)new text end A person applying for a new license up to 14 calendar days before the effective
date of the new license period under paragraph (b) must be issued a license for the 14 days
and the next license year as a single license and pay a single license fee as if the 14 days
were part of the upcoming license period.

Sec. 10.

Minnesota Statutes 2018, section 28A.05, is amended to read:


28A.05 CLASSIFICATION.

All persons required to have a license under section 28A.04 shall be classified into one
of the following classes of food handlers, according to their principal mode of business.

(a) Retail food handlers are persons who sell or process and sell food directly to the
ultimate consumer or who custom process meat or poultry. The term includes a person who
sells food directly to the ultimate consumer through the use of vending machines, and a
person who sells food for consumption on site or off site if the sale is conducted on the
premises that are part of a grocery or convenience store operation.

(b) Wholesale food handlers are persons who sell to others for resale. A person who
handles food in job lots (jobbers) is included in this classification.

(c) Wholesale food processors or manufacturers are persons who process or manufacture
raw materials and other food ingredients into food items, or who reprocess food items, or
who package food for sale to others for resale, or who commercially slaughter animals or
poultry. Included herein are persons who can, extract, ferment, distill, pickle, bake, freeze,
dry, smoke, grind, mix, stuff, pack, bottle, recondition, or otherwise treat or preserve food
for sale to others for resale, cold storage warehouse operators as defined in section 28.01,
subdivision 3
, salvage food processors as defined in section 31.495, subdivision 1, and dairy
plants as defined in section 32D.01, subdivision 6.

new text begin (d) Custom exempt food handlers are persons who only conduct custom exempt
processing as defined in section 31A.02, subdivision 5. A retail or wholesale transaction
may not take place in a facility operated by a person with a custom exempt food handler
license.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end A food broker is a person who buys and sells food and who negotiates between
a buyer and a seller of food, but who at no time has custody of the food being bought and
sold.

Sec. 11.

Minnesota Statutes 2018, section 28A.075, is amended to read:


28A.075 DELEGATION TO LOCAL BOARD OF HEALTH.

(a) At the request of a local board of health that licensed and inspected grocery and
convenience stores on January 1, 1999, the commissioner must enter into agreements before
January 1, 2001, with local boards of health to delegate to the appropriate local board of
health the licensing and inspection duties of the commissioner pertaining to retail food
handlers that are grocery or convenience stores. At the request of a local board of health
that licensed and inspected part of any grocery or convenience store on January 1, 1999,
the commissioner must enter into agreements before July 1, 2001, with local boards of
health to delegate to the appropriate local board of health the licensing and inspection duties
of the commissioner pertaining to retail food handlers that are grocery or convenience stores.
At any time thereafter, the commissioner may enter into an agreement with a local board
of health that licensed and inspected all or part of any grocery or convenience store on
January 1, 1999, to delegate to the appropriate local board of health the licensing and
inspection duties of the commissioner pertaining to retail food handlers deleted text beginthat aredeleted text endnew text begin such asnew text end
grocery or convenience stores. Retail deleted text begingrocery or convenience storesdeleted text endnew text begin food handlersnew text end inspected
under the state meat inspection program of chapter 31A are exempt from delegation.

(b) A local board of health must adopt an ordinance consistent with the Minnesota Food
Code, Minnesota Rules, chapter 4626, for all of its jurisdiction to regulate deleted text begingrocery and
convenience stores
deleted text endnew text begin retail food handlersnew text end and the ordinance (Food Code) must not be in conflict
with standards set in law or rule.

(c) A fee to recover the estimated costs of enforcement of this chapter must be established
by ordinance and must be fair, reasonable, and proportionate to the actual cost of the licensing
and inspection services. The fee must only be maintained and used for the estimated costs
of enforcing this chapter.

Sec. 12.

Minnesota Statutes 2018, section 28A.0752, subdivision 1, is amended to read:


Subdivision 1.

Agreements to perform duties of commissioner.

(a) Agreements to
delegate licensing and inspection duties pertaining to retail deleted text begingrocery or convenience storesdeleted text endnew text begin
food handlers
new text end shall include licensing, inspection, reporting, and enforcement duties authorized
under sections 17.04, 29.21, 29.23, 29.235, 29.236, 29.237, 29.24, 29.25, 29.26, 29.27, and
30.49, appropriate sections of the Minnesota Food Law, chapters 31 and 34A, and applicable
Minnesota food rules.

(b) Agreements are subject to subdivision 3.

(c) This subdivision does not affect agreements entered into under section 28A.075 or
current cooperative agreements which base inspections and licensing responsibility on the
firm's most predominant mode of business.

Sec. 13.

Minnesota Statutes 2018, section 28A.0752, subdivision 2, is amended to read:


Subd. 2.

Approval of agreements.

An agreement to delegate licensing and inspection
of retail food handlers deleted text beginthat are grocery or convenience storesdeleted text end to a community health board
must be approved by the commissioner and is subject to subdivision 3.

Sec. 14.

Minnesota Statutes 2018, section 28A.08, subdivision 3, is amended to read:


Subd. 3.

Fees effective July 1, 2003.

Penalties
Type of food handler
License Fee
Effective
July 1, 2003
Late
Renewal
No
License
1.
Retail food handlernew text begin or custom exempt food
handler
new text end
(a) Having gross sales of only prepackaged
nonperishable food of less than $15,000 for
the immediately previous license or fiscal
year and filing a statement with the
commissioner
$ 50
$ 17
$ 33
(b) Having under $15,000 gross sales or
service including food preparation or having
$15,000 to $50,000 gross sales or service
for the immediately previous license or
fiscal year
$ 77
$ 25
$ 51
(c) Having $50,001 to $250,000 gross sales
or service for the immediately previous
license or fiscal year
$155
$ 51
$102
(d) Having $250,001 to $1,000,000 gross
sales or service for the immediately previous
license or fiscal year
$276
$ 91
$182
(e) Having $1,000,001 to $5,000,000 gross
sales or service for the immediately previous
license or fiscal year
$799
$264
$527
(f) Having $5,000,001 to $10,000,000 gross
sales or service for the immediately previous
license or fiscal year
$1,162
$383
$767
(g) Having $10,000,001 to $15,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,376
$454
$908
(h) Having $15,000,001 to $20,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,607
$530
$1,061
(i) Having $20,000,001 to $25,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,847
$610
$1,219
(j) Having over $25,000,001 gross sales or
service for the immediately previous license
or fiscal year
$2,001
$660
$1,321
2.
Wholesale food handler
(a) Having gross sales or service of less than
$25,000 for the immediately previous
license or fiscal year
$ 57
$ 19
$ 38
(b) Having $25,001 to $250,000 gross sales
or service for the immediately previous
license or fiscal year
$284
$ 94
$187
(c) Having $250,001 to $1,000,000 gross
sales or service from a mobile unit without
a separate food facility for the immediately
previous license or fiscal year
$444
$147
$293
(d) Having $250,001 to $1,000,000 gross
sales or service not covered under paragraph
(c) for the immediately previous license or
fiscal year
$590
$195
$389
(e) Having $1,000,001 to $5,000,000 gross
sales or service for the immediately previous
license or fiscal year
$769
$254
$508
(f) Having $5,000,001 to $10,000,000 gross
sales or service for the immediately previous
license or fiscal year
$920
$304
$607
(g) Having $10,000,001 to $15,000,000
gross sales or service for the immediately
previous license or fiscal year
$990
$327
$653
(h) Having $15,000,001 to $20,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,156
$381
$763
(i) Having $20,000,001 to $25,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,329
$439
$877
(j) Having over $25,000,001 or more gross
sales or service for the immediately previous
license or fiscal year
$1,502
$496
$991
3.
Food broker
$150
$ 50
$ 99
4.
Wholesale food processor or manufacturer
(a) Having gross sales or service of less than
$125,000 for the immediately previous
license or fiscal year
$169
$ 56
$112
(b) Having $125,001 to $250,000 gross sales
or service for the immediately previous
license or fiscal year
$392
$129
$259
(c) Having $250,001 to $1,000,000 gross
sales or service for the immediately previous
license or fiscal year
$590
$195
$389
(d) Having $1,000,001 to $5,000,000 gross
sales or service for the immediately previous
license or fiscal year
$769
$254
$508
(e) Having $5,000,001 to $10,000,000 gross
sales or service for the immediately previous
license or fiscal year
$920
$304
$607
(f) Having $10,000,001 to $15,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,377
$454
$909
(g) Having $15,000,001 to $20,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,608
$531
$1,061
(h) Having $20,000,001 to $25,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,849
$610
$1,220
(i) Having $25,000,001 to $50,000,000
gross sales or service for the immediately
previous license or fiscal year
$2,090
$690
$1,379
(j) Having $50,000,001 to $100,000,000
gross sales or service for the immediately
previous license or fiscal year
$2,330
$769
$1,538
(k) Having $100,000,000 or more gross
sales or service for the immediately previous
license or fiscal year
$2,571
$848
$1,697
5.
Wholesale food processor of meat or poultry
products under supervision of the U.S.
Department of Agriculture
(a) Having gross sales or service of less than
$125,000 for the immediately previous
license or fiscal year
$112
$ 37
$ 74
(b) Having $125,001 to $250,000 gross sales
or service for the immediately previous
license or fiscal year
$214
$ 71
$141
(c) Having $250,001 to $1,000,000 gross
sales or service for the immediately previous
license or fiscal year
$333
$110
$220
(d) Having $1,000,001 to $5,000,000 gross
sales or service for the immediately previous
license or fiscal year
$425
$140
$281
(e) Having $5,000,001 to $10,000,000 gross
sales or service for the immediately previous
license or fiscal year
$521
$172
$344
(f) Having over $10,000,001 gross sales or
service for the immediately previous license
or fiscal year
$765
$252
$505
(g) Having $15,000,001 to $20,000,000
gross sales or service for the immediately
previous license or fiscal year
$893
$295
$589
(h) Having $20,000,001 to $25,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,027
$339
$678
(i) Having $25,000,001 to $50,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,161
$383
$766
(j) Having $50,000,001 to $100,000,000
gross sales or service for the immediately
previous license or fiscal year
$1,295
$427
$855
(k) Having $100,000,001 or more gross
sales or service for the immediately previous
license or fiscal year
$1,428
$471
$942
6.
Wholesale food processor or manufacturer
operating only at the State Fair
$125
$ 40
$ 50
7.
Wholesale food manufacturer having the
permission of the commissioner to use the
name Minnesota Farmstead cheese
$ 30
$ 10
$ 15
8.
Wholesale food manufacturer processing
less than 700,000 pounds per year of raw
milk
$ 30
$ 10
$ 15
9.
A milk marketing organization without
facilities for processing or manufacturing
that purchases milk from milk producers for
delivery to a licensed wholesale food
processor or manufacturer
$ 50
$ 15
$ 25

Sec. 15.

Minnesota Statutes 2018, section 29.26, is amended to read:


29.26 EGGS IN POSSESSION OF RETAILER.

All eggs sold or offered for sale at retail must have been candled and graded and must
be clearly labeled according to Minnesota consumer grades as established by rule under
section 29.23. No eggs shall be sold or offered for sale as "ungraded," "unclassified," or by
any other name that does not clearly designate the grade. All eggs in possession of the
retailer, either in temporary storage or on display, must be held at a temperature not to
exceed 45 degrees Fahrenheit (7 degrees Celsius).

deleted text begin Candled and gradeddeleted text endnew text begin Grade AAnew text end eggs held 31 days past the coded pack datenew text begin for Grade
AA eggs, or Grade A eggs held 46 days past the coded pack date for Grade A eggs,
new text end lose
their grades and must be removed from sale.

Sec. 16.

Minnesota Statutes 2018, section 31.94, is amended to read:


31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine information
and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota and other research and education institutions
to demonstrate the on-farm applicability of organic agriculture practices to conditions in
this state;

(3) direct the programs of the department so as to work toward the promotion of organic
agriculture in this state;

(4) inform agencies about state or federal programs that support organic agriculture
practices; and

(5) work closely with producers, producer organizations, the University of Minnesota,
and other appropriate agencies and organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner, in
conjunction with the task force created in paragraph (c), shall report on the status of organic
agriculture in Minnesota to the legislative policy and finance committees and divisions with
jurisdiction over agriculture. The report must include available data on organic acreage and
production, available data on the sales or market performance of organic products, and
recommendations regarding programs, policies, and research efforts that will benefit
Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
sector. The task force must consist of the following residents of the state:

(1) three organic farmers;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural Experiment
Station; the dean and director of University of Minnesota Extension and the dean of the
College of Food, Agricultural and Natural Resource Sciences, shall appoint members to
serve three-year terms.

Compensation and removal of members are governed by section 15.059, subdivision 6.
The task force must meet at least twice each year and expires on June 30, deleted text begin2019deleted text endnew text begin 2024new text end.

(d) For the purposes of expanding, improving, and developing production and marketing
of the organic products of Minnesota agriculture, the commissioner may receive funds from
state and federal sources and spend them, including through grants or contracts, to assist
producers and processors to achieve certification, to conduct education or marketing
activities, to enter into research and development partnerships, or to address production or
marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production and
handling operations including those exempt from organic certification according to Code
of Federal Regulations, title 7, section 205.101, and accredited certification agencies
operating within the state.

Sec. 17.

Minnesota Statutes 2018, section 32D.13, is amended by adding a subdivision to
read:


new text begin Subd. 11.new text end

new text beginMilk storage requirement.new text end

new text begin(a) A milk hauler must not pick up milk from a
farm that has a bulk tank that is not in proper working order.
new text end

new text begin (b) Milk must not be stored for longer than 72 hours at a farm before the milk is picked
up by a milk hauler for transport to a plant. The commissioner or an agent of the
commissioner may waive the 72-hour time limit in the case of hardship, emergency, or
natural disaster.
new text end

Sec. 18.

Minnesota Statutes 2018, section 32D.20, subdivision 2, is amended to read:


Subd. 2.

Labels.

(a) Pasteurized milk or fluid milk products offered or exposed for sale
or held in possession for sale shall be labeled or otherwise designated as pasteurized milk
or pasteurized fluid milk products, and in the case of fluid milk products the label shall also
state the name of the specific product.

(b) Milk and dairy products must be labelednew text begin (1)new text end with the plant number where the product
was produceddeleted text begin,deleted text endnew text begin;new text end ornew text begin (2)new text end if produced in a state where official plant numbers are not assigned,
new text begin with new text endthe name new text beginand address new text endof the manufacturer deleted text beginand the address of the plant where it was
manufactured
deleted text endnew text begin or distributornew text end.

Sec. 19.

Minnesota Statutes 2018, section 32D.22, is amended to read:


32D.22 MANUFACTURE OF CHEESE; REQUIREMENTS IN PROCESS.

new text begin (a) new text endNo person, firm, or corporation shall manufacture, transport, sell, offer, or expose
for sale or have in possession with intent to sell at retail to a consumer any cheese that has
not been (1) manufactured from milk or milk products that have been pasteurized; (2)
subjected to a heat treatment equivalent to pasteurization during the process of manufacturing
or processing; or (3) subjected to an aging process where it has been kept for at least 60
days after manufacture at a temperature no lower than 35 degrees Fahrenheit.

new text begin (b) Any cheese described in paragraph (a), clause (3), that has been made from
unpasteurized milk must be labeled with a statement that the cheese has been aged for 60
days or more.
new text end

Sec. 20.

Minnesota Statutes 2018, section 34A.11, subdivision 7, is amended to read:


Subd. 7.

Emergency powers.

After an emergency declaration issued under chapter 12,
chapter 35, or the federal Stafford Act, the commissioner may restrict the movement of food
if the commissioner has probable cause to believe that the movement of food may: threaten
the agricultural economy; transport a dangerous, infectious, or communicable disease; or
threaten the health of animals. The commissioner may provide for the issuance of permits
to allow for the continued movement of food upon meeting the deleted text begindiseasedeleted text end control measures
established by the commissioner.

Sec. 21.

Minnesota Statutes 2018, section 41B.02, subdivision 10a, is amended to read:


Subd. 10a.

Livestock expansion.

"Livestock expansion" means new text beginthe purchase of a
livestock farm or
new text endimprovements to a livestock operation, including the purchase and
construction or installation of improvements to land, buildings, and other permanent
structures, including equipment incorporated in or permanently affixed to the land, buildings,
or structures, which are useful for and intended to be used for the purpose of raising livestock.

Sec. 22.

Minnesota Statutes 2018, section 41B.03, subdivision 3, is amended to read:


Subd. 3.

Eligibility for beginning farmer loans.

(a) In addition to the requirements
under subdivision 1, a prospective borrower for a beginning farm loan in which the authority
holds an interest, must:

(1) have sufficient education, training, or experience in the type of farming for which
the loan is desired;

(2) have a total net worth, including assets and liabilities of the borrower's spouse and
dependents, of less than $800,000 in 2017 and an amount in subsequent years which is
adjusted for inflation by multiplying that amount by the cumulative inflation rate as
determined by the United States All-Items Consumer Price Index;

(3) demonstrate a need for the loan;

(4) demonstrate an ability to repay the loan;

(5) certify that the agricultural land to be purchased will be used by the borrower for
agricultural purposes;

(6) certify that farming will be the principal occupation of the borrower;

(7) agree to participate in a farm management program approved by the commissioner
of agriculture for at least the first three years of the loan, if an approved program is available
within 45 miles from the borrower's residence. The deleted text begincommissionerdeleted text endnew text begin authoritynew text end may waive this
requirement for any of the programs administered by the authority if the participant requests
a waiver and has deleted text begineitherdeleted text end a four-year degree in an agricultural program new text beginor related field,
reasonable agricultural job-related experience,
new text endor certification as an adult farm management
instructor; and

(8) agree to file an approved soil and water conservation plan with the Natural Resources
Conservation Service office in the county where the land is located.

(b) If a borrower fails to participate under paragraph (a), clause (7), the borrower is
subject to penalty as determined by the authority.

Sec. 23.

Minnesota Statutes 2018, section 41B.0391, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.

(c) "Beginning farmer" means an individual who:

(1) is a resident of Minnesota;

(2) is seeking entry, or has entered within the last ten years, into farming;

(3) intends to farm land located within the state borders of Minnesota;

(4) is not and whose spouse is not a family member of the owner of the agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;

(5) is not and whose spouse is not a family member of a partner, member, shareholder,
or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
purchase or rent agricultural assets; and

(6) meets the following eligibility requirements as determined by the authority:

(i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);

(ii) provides the majority of the day-to-day physical labor and management of the farm;

(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;

(iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;

(v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

(vi) deleted text beginparticipates indeleted text endnew text begin is enrolled in or has completed within ten years of their first year of
farming
new text end a financial management program approved by the authority or the commissioner
of agriculture;

(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
requirements within the three-year certification period, in which case the beginning farmer
is no longer eligible for credits under this section; and

(viii) has other qualifications as specified by the authority.

new text begin The authority may waive the requirement in item (vi) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.
new text end

(d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).

(e) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.

(f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.

(h) "Resident" has the meaning given in section 290.01, subdivision 7.

(i) "Share rent agreement" means a rental agreement in which the principal consideration
given to the owner of agricultural assets is a predetermined portion of the production of
farm products produced from the rented agricultural assets and which provides for sharing
production costs or risk of loss, or both.

new text begin EFFECTIVE DATE.new text end

new text beginThis section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 24.

Minnesota Statutes 2018, section 41B.049, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

The authority shall establish and implement a methane
digester loan program to help finance the purchase of necessary equipment and the
constructionnew text begin or improvementnew text end of a system that deleted text beginwill utilizedeleted text end new text beginutilizes new text endmanure to produce
electricity.

Sec. 25.

Minnesota Statutes 2018, section 41B.049, subdivision 5, is amended to read:


Subd. 5.

Loan criteria.

(a) To be eligible, a borrower must be a resident of Minnesota
or an entity that is not prohibited from owning agricultural land under section 500.24.

(b) State participation in a participation loan is limited to 45 percent of the principal
amount of the loan. A direct loan or loan participation may not exceed $250,000.

(c) Loans under this program may be used as a match for federal loans or grants.

(d) A borrower who has previously received a loan under subdivision 1 deleted text beginis prohibited
from receiving
deleted text end new text beginmay receive new text endanother methane digester loan under subdivision 1new text begin if the previous
loan has been repaid in full
new text end.

Sec. 26.

Minnesota Statutes 2018, section 41B.055, subdivision 3, is amended to read:


Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan equal
to 90 percent of the purchased equipment value with an eligible lender to a farmer who is
eligible under subdivision 2. Participation is limited to 45 percent of the principal amount
of the loan or deleted text begin$40,000deleted text endnew text begin $100,000new text end, 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 Rural Finance Authority administrative account established in section
41B.03.

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

Sec. 27.

Minnesota Statutes 2018, section 41B.057, subdivision 3, is amended to read:


Subd. 3.

Loan participation.

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 deleted text begin$45,000deleted text endnew text begin $100,000new text end 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 deleted text begin$180,000deleted text endnew text begin $250,000new text end, whichever is less. The interest rate on the loans must not
exceed six percent.

Sec. 28.

Minnesota Statutes 2018, section 116.0714, is amended to read:


116.0714 NEW OPEN-AIR SWINE BASINS.

new text begin (a) new text endThe commissioner of the Pollution Control Agency or a county board shall not
approve any permits for the construction of new open-air swine basins, except that existing
facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste
treatment program for resolving pollution problems or to allow conversion of an existing
basin of less than 1,000,000 gallons to a different animal type, provided all standards are
met. This section expires June 30, 2022.

new text begin (b) This section does not apply to basins used solely for wastewater from truck-washing
facilities.
new text end"

Delete the title and insert:

"A bill for an act
relating to agriculture; making policy and technical changes to various agriculture
provisions including provisions related to aquaculture, pesticides, nursery law,
food handlers, eggs, milk, cheese, food, loans, open-air swine basins, and other
provisions; extending the Organic Advisory Task Force; amending Minnesota
Statutes 2018, sections 17.494; 17.4982, by adding subdivisions; 18B.34,
subdivision 5; 18H.10; 25.33, subdivision 8; 28A.04, subdivision 1; 28A.05;
28A.075; 28A.0752, subdivisions 1, 2; 28A.08, subdivision 3; 29.26; 31.94; 32D.13,
by adding a subdivision; 32D.20, subdivision 2; 32D.22; 34A.11, subdivision 7;
41B.02, subdivision 10a; 41B.03, subdivision 3; 41B.0391, subdivision 1; 41B.049,
subdivisions 1, 5; 41B.055, subdivision 3; 41B.057, subdivision 3; 116.0714;
proposing coding for new law in Minnesota Statutes, chapter 17."

We request the adoption of this report and repassage of the bill.
House Conferees:
.
.
.
Jeanne Poppe
Samantha Vang
.
Paul Anderson
Senate Conferees:
.
.
.
Bill Weber
Michael P. Goggin
.
Foung Hawj