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Minnesota Legislature

Office of the Revisor of Statutes

HF 2200

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/26/2019 03:46pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments Comparisons
Introduction Posted on 03/07/2019
1st Engrossment Posted on 04/12/2019 compared with SF2226 3rd Engrossment
Division Engrossments Comparisons
1st Division Engrossment Posted on 04/05/2019

Current Version - 1st Engrossment

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57.28

A bill for an act
relating to agriculture; housing; establishing a budget for the Department of
Agriculture, the Board of Animal Health, the Agricultural Utilization Research
Institute, and the Housing Finance Agency; continuing the Agricultural Fertilizer
Research and Education Council; continuing a fertilizer fee; modifying a
noncommercial pesticide applicator fee; modifying definitions of hemp and
marijuana; modifying requirements for Cervidae farmers, grain buyers, and grain
warehouse operators; modifying other agricultural statutes; providing lead safe
grant program; requiring reports; appropriating money; amending Minnesota
Statutes 2018, sections 17.118, subdivision 2; 18B.07, subdivision 2; 18B.34,
subdivision 5; 18C.425, subdivision 6; 18C.70, subdivision 5; 18C.71, subdivisions
1, 2, 4; 18C.80, subdivision 2; 18H.14; 18K.02, subdivision 3; 18K.03; 28A.16;
35.155, subdivisions 4, 6, 7, 9, 10, 11, by adding a subdivision; 223.16, subdivisions
1, 2a, 4, by adding subdivisions; 223.17, subdivisions 3, 4, 5, 6; 223.177,
subdivisions 2, 3; 223.19; 232.21, subdivision 7, by adding a subdivision; 232.22,
subdivisions 3, 4; 232.24; Laws 2015, First Special Session chapter 4, article 1,
section 2, subdivision 4, as amended; Laws 2017, chapter 88, article 1, section 2,
subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapters
18D; 223; 462A.

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

ARTICLE 1

AGRICULTURE

Section 1. new text beginAGRICULTURE APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this act. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2020" and "2021" used in this act mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is
fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF AGRICULTURE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 56,154,000
new text end
new text begin $
new text end
new text begin 54,839,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 55,755,000
new text end
new text begin 54,440,000
new text end
new text begin Remediation
new text end
new text begin 399,000
new text end
new text begin 399,000
new text end

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

new text begin Subd. 2. new text end

new text begin Protection Services
new text end

new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 20,050,000
new text end
new text begin 19,225,000
new text end
new text begin Remediation
new text end
new text begin 399,000
new text end
new text begin 399,000
new text end

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

new text begin (b) $250,000 the first year and $250,000 the
second year are for rapid detection,
identification, containment, control, and
management of high-priority plant pests and
pathogens including emerald ash borer.
new text end

new text begin (c) $375,000 the first year and $375,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government under
Minnesota Statutes, section 18.90, with
preference given to local units of government
responding to Palmer amaranth or other weeds
on the eradicate list.
new text end

new text begin (d) $525,000 the first year and $525,000 the
second year are additional funding for the
noxious weed and invasive plant program.
new text end

new text begin (e) $300,000 the first year and $300,000 the
second year are for industrial hemp
development.
new text end

new text begin (f) $150,000 the first year and $150,000 the
second year are for additional meat and poultry
inspection services.
new text end

new text begin (g) $650,000 the first year and $150,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory. The base for this appropriation is
$154,000 in fiscal year 2022 and $154,000 in
fiscal year 2023.
new text end

new text begin (h) $300,000 the first year and $300,000 the
second year are for agricultural emergency
preparedness and response.
new text end

new text begin (i) $325,000 the first year is for transfer to the
agricultural emergency account in the
agricultural fund.
new text end

new text begin (j) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2019. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock.
new text end

new text begin (k) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.
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 Subd. 3. new text end

new text begin Agricultural Marketing and
Development
new text end

new text begin 4,121,000
new text end
new text begin 4,121,000
new text end

new text begin (a) $200,000 the first year and $200,000 the
second year are to expand domestic and
international marketing opportunities for
farmers and value-added processors, including
staffing to facilitate farm-to-school sales and
new markets for Minnesota-grown hemp.
new text end

new text begin (b) $75,000 the first year and $75,000 the
second year are for additional community
outreach on farms and rural mental health
services including the 24-hour hotline, service
availability, and mental health forums. Of this
appropriation, $12,000 each year is to provide
professional development training for Farm
Business Management instructors in the
Minnesota State system. The base for this
appropriation is $63,000 in fiscal year 2022
and $63,000 in fiscal year 2023.
new text end

new text begin (c) $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, 2021, for Minnesota grown grants in this
paragraph are available until June 30, 2023.
new text end

new text begin (d) $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 and
divisions with jurisdiction over agriculture
policy and finance on or before the start of
each fiscal year. If significant changes are
made to the plans in the course of the year,
the commissioner must notify the chairs and
ranking minority members.
new text end

new text begin (e) 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 to
persons transitioning from conventional to
organic agriculture.
new text end

new text begin Subd. 4. new text end

new text begin Agriculture, Bioenergy, and Bioproduct
Advancement
new text end

new text begin 23,900,000
new text end
new text begin 23,575,000
new text end

new text begin (a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$2,500,000 each year is for research on avian
influenza, African swine fever, and chronic
wasting disease.
new text end

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

new text begin (b) $14,275,000 the first year and $14,275,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, improvement, or expansion of
livestock operations including beginning and
transitioning livestock operations; providing
funding not to exceed $450,000 each year to
develop and enhance farm-to-school markets
for Minnesota farmers by providing more
fruits, vegetables, meat, grain, and dairy for
Minnesota children in school and child care
settings including by reimbursing schools for
purchases from local farmers; assisting
value-added agricultural businesses to begin
or expand, access new markets, or diversify;
providing funding not to exceed $350,000
each year for urban youth agricultural
education or urban agriculture community
development; providing funding not to exceed
$350,000 each year for the good food access
program under Minnesota Statutes, section
17.1017; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
and good agricultural practices/good handling
practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:
new text end

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

new text begin (2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program.
new text end

new text begin The commissioner may use up to $2,000,000
per year of the funds appropriated under this
subdivision to award value-added agriculture
grants of between $200,000 and $1,000,000
per grant for new or expanding agricultural
production, aquaponics, or processing facilities
that provide significant economic impact to
the region.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year and
appropriations encumbered under contract on
or before June 30, 2021, for agricultural
growth, research, and innovation grants are
available until June 30, 2024.
new text end

new text begin (c) $325,000 the first year is for grants to
motor fuel wholesalers and retail motor fueling
station operators to install the equipment
necessary to store or dispense biofuels to the
public to meet the biofuel requirement goals
established under Minnesota Statutes, section
239.7911. Motor fuel wholesalers are eligible
for grant money under this paragraph for up
to two storage sites if each site is located in
Minnesota and stores, or uses tank systems to
blend, motor fuel comprised of at least 15
percent agriculturally derived, denatured
ethanol by volume. A retail motor fueling
station operator is eligible for grant money
under this paragraph for up to and including
15 retail motor fuel dispensing sites if each
site is located in Minnesota and the grant
money under this paragraph is used to modify
or install storage and dispensing components
that dispense gasoline blended with at least
15 percent of agriculturally derived, denatured
ethanol by volume for use in spark ignition
engines. A grant award under this paragraph
must not exceed 90 percent of the cost of the
installation project. The commissioner must
coordinate with stakeholders to establish grant
criteria and distribute grants in a manner to
more fully attain the requirements in
Minnesota Statutes, section 239.7911. Of this
appropriation, up to $50,000 is for grants to
create greater awareness among motorists of
the availability of motor fuel comprised of 15
percent agriculturally derived, denatured
ethanol by volume for use in spark ignition
engines. Notwithstanding Minnesota Statutes,
section 16A.28, the appropriation in this
paragraph is available until June 30, 2023. The
commissioner must report to the legislative
committees and divisions with jurisdiction
over agriculture policy and finance by
February 1 of each year in which funds are
available, detailing the number of grants
awarded 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 Subd. 5. new text end

new text begin Administration and Financial
Assistance
new text end

new text begin 7,684,000
new text end
new text begin 7,519,000
new text end

new text begin (a) $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 (b) $75,000 the first year is for a grant to
Greater Mankato Growth, Inc. for assistance
to agricultural-related businesses to promote
jobs, innovation, and synergy development.
new text end

new text begin (c) $25,000 the first year and $25,000 the
second year are for grants to a nonprofit
organization to provide a legal assistance
hotline for farmers. These are onetime
appropriations.
new text end

new text begin (d) $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 (e) $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 (f) $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 (g) $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 (h) $267,000 the first year and $267,000 the
second year are for farm advocate services.
new text end

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

new text begin (j) $250,000 the first year and $250,000 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 through the Minnesota State
Agricultural Centers of Excellence. South
Central College and Central Lakes College
shall serve as the fiscal agents.
new text end

new text begin (k) $1,700,000 the first year and $1,700,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following:
new text end

new text begin (1) to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses; and
new text end

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

new text begin Of the amount appropriated under this
paragraph, at least $600,000 each year must
be allocated under clause (1). Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available in the second year.
Second Harvest Heartland must submit
quarterly reports to the commissioner in the
form prescribed by the commissioner. The
reports must include but are not limited to
information on the expenditure of funds, the
amount of milk or other commodities
purchased, and the organizations to which this
food was distributed. The base for this
appropriation is $1,650,000 in fiscal year 2022
and $1,650,000 in fiscal year 2023.
new text end

new text begin (l) $200,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development. $50,000 the
first year is for the study required under
section 24 and notwithstanding Minnesota
Statutes, section 16A.28, is available until June
30, 2021.
new text end

new text begin (m) $275,000 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. Of the first
year appropriation, $40,000 is to facilitate
development of a farm transitions curriculum.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2021.
new text end

Sec. 3. new text beginBOARD OF ANIMAL HEALTH
new text end

new text begin $
new text end
new text begin 5,757,000
new text end
new text begin $
new text end
new text begin 6,077,000
new text end

new text begin (a) $30,000 the first year and $350,000 the
second year are to improve oversight of
farmed Cervidae.
new text end

new text begin (b) $250,000 the first year and $250,000 the
second year are for agricultural emergency
preparedness and response.
new text end

new text begin (c) $6,000 the first year and $6,000 the second
year are from the Cervidae inspection account
in the special revenue fund to develop
electronic forms to better track farmed
Cervidae movement and record keeping. These
are onetime appropriations.
new text end

Sec. 4. new text beginAGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
new text end

new text begin $
new text end
new text begin 3,897,000
new text end
new text begin $
new text end
new text begin 3,900,000
new text end

new text begin $104,000 the first year and $107,000 the
second year are to maintain the current level
of service delivery.
new text end

Sec. 5.

Minnesota Statutes 2018, section 17.118, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
Cervidae, Ratitae, bison, sheep, horses, and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps, and
well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste
management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor the
productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fencesnew text begin, including but not limited to farmed Cervidae perimeter fences required
under section 35.155, subdivision 4
new text end; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable income.
Qualifying expenditures do not include an amount paid to refinance existing debt.

Sec. 6.

Minnesota Statutes 2018, section 18B.07, subdivision 2, is amended to read:


Subd. 2.

Prohibited pesticide use.

(a) A person may not use, store, handle, distribute,
or dispose of a pesticide, rinsate, pesticide container, or pesticide application equipment in
a manner:

(1) that is inconsistent with a label or labeling as defined by FIFRA;

(2) that endangers humans, damages agricultural products, food, livestock, fish, or
wildlife; or

(3) that will cause unreasonable adverse effects on the environment.

(b) A person may not direct a pesticide onto property beyond the boundaries of the target
site. A person may not apply a pesticide resulting in damage to adjacent property.new text begin A person
who applies a pesticide resulting in damage to adjacent property that is part of the state
outdoor recreation system is subject to enhanced monetary penalties as provided in section
18D.40.
new text end

(c) A person may not directly apply a pesticide on a human by overspray or target site
spray, except when:

(1) the pesticide is intended for use on a human;

(2) the pesticide application is for mosquito control operations;

(3) the pesticide application is for control of gypsy moth, forest tent caterpillar, or other
pest species, as determined by the commissioner, and the pesticide used is a biological
agent; or

(4) the pesticide application is for a public health risk, as determined by the commissioner
of health, and the commissioner of health, in consultation with the commissioner of
agriculture, determines that the application is warranted based on the commissioner's
balancing of the public health risk with the risk that the pesticide application poses to the
health of the general population, with special attention to the health of children.

(d) For pesticide applications under paragraph (c), clause (2), the following conditions
apply:

(1) no practicable and effective alternative method of control exists;

(2) the pesticide is among the least toxic available for control of the target pest; and

(3) notification to residents in the area to be treated is provided at least 24 hours before
application through direct notification, posting daily on the treating organization's website,
if any, and by sending a broadcast e-mail to those persons who request notification of such,
of those areas to be treated by adult mosquito control techniques during the next calendar
day. For control operations related to human disease, notice under this paragraph may be
given less than 24 hours in advance.

(e) For pesticide applications under paragraph (c), clauses (3) and (4), the following
conditions apply:

(1) no practicable and effective alternative method of control exists;

(2) the pesticide is among the least toxic available for control of the target pest; and

(3) notification of residents in the area to be treated is provided by direct notification
and through publication in a newspaper of general circulation within the affected area.

(f) For purposes of this subdivision, "direct notification" may include mailings, public
meetings, posted placards, neighborhood newsletters, or other means of contact designed
to reach as many residents as possible. Public meetings held to meet this requirement for
adult mosquito control, under paragraph (d), must be held within each city or town where
the pesticide treatments are to be made, at a time and location that is convenient for residents
of the area where the treatments will occur.

(g) A person may not apply a pesticide in a manner so as to expose a worker in an
immediately adjacent, open field.

(h) Notwithstanding that the application is done in a manner consistent with the label
or labeling, it is a violation of this chapter to directly apply a pesticide to a site where an
application has not been: (1) requested, ordered, contracted for, or permitted; or (2) performed
pursuant to paragraph (c), clause (2), (3), or (4).

Sec. 7.

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. 8.

Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:


Subd. 6.

Payment of inspection fee.

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

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

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee of
39 cents per ton, and until June 30, deleted text begin2019deleted text endnew text begin 2024new text end, 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. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. Products sold or distributed to manufacturers or
exchanged between them are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

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

Sec. 9.

Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:


Subd. 5.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2025new text end.

Sec. 10.

Minnesota Statutes 2018, section 18C.71, subdivision 1, is amended to read:


Subdivision 1.

Eligible projects.

Eligible project activities include research, education,
and technology transfer related to the production and application of fertilizer, soil
amendments, and other plant amendments. Chosen projects must contain a component of
outreach that achieves a timely dissemination of findings and their applicability to the
production agricultural communitynew text begin or metropolitan fertilizer usersnew text end.

Sec. 11.

Minnesota Statutes 2018, section 18C.71, subdivision 2, is amended to read:


Subd. 2.

Awarding grants.

Applications for program grants must be submitted in the
form prescribed by the Minnesota Agricultural Fertilizer Research and Education Council.
Applications must be submitted on or before the deadline prescribed by the council. All
applications are subject to a thorough in-state review by a peer committee established and
approved by the council. Each project meeting the basic qualifications is subject to a yes
or no vote by each council member. Projects chosen to receive funding must achieve an
affirmative vote from at least eight of the 12 council members or two-thirds of voting
members present. Projects awarded program funds must submit an annual progress report
in the form prescribed by the council.new text begin Up to ten percent of the grant dollars awarded each
cycle may be for projects that concern fertilizer use in metropolitan areas.
new text end

Sec. 12.

Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:


Subd. 4.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2025new text end.

Sec. 13.

Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:


Subd. 2.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2025new text end.

Sec. 14.

new text begin [18D.40] ENHANCED PENALTIES; OUTDOOR RECREATION LANDS.
new text end

new text begin Notwithstanding limitations placed on administrative or civil penalty amounts under
sections 18D.315 and 18D.325, a person who applies a pesticide resulting in damage to
adjacent property that is part of the state outdoor recreation system is subject to a monetary
penalty equal to twice the amount that the commissioner would otherwise assess for a
comparable violation.
new text end

Sec. 15.

Minnesota Statutes 2018, section 18H.14, is amended to read:


18H.14 LABELING AND ADVERTISING OF NURSERY STOCK.

(a) Plants, plant materials, or nursery stock must not be labeled or advertised with false
or misleading information including, but not limited to, scientific name, variety, place of
origin, hardiness zone as defined by the United States Department of Agriculture, and growth
habit.

(b) All nonhardy nursery stock as designated by the commissioner must be labeled
correctly for hardiness or be labeled "nonhardy" in Minnesota.

(c) A person may not offer for distribution plants, plant materials, or nursery stock,
represented by some specific or special form of notation, including, but not limited to, "free
from" or "grown free of," unless the plants are produced under a specific program approved
by the commissioner to address the specific plant properties addressed in the special notation
claim.

(d) Nursery stock collected from the wild state must be inspected and certified prior to
sale and at the time of sale must be labeled "Collected from the Wild." The label must remain
on each plant or clump of plants while it is offered for sale and during the distribution
process. The collected stock may be grown in nursery rows at least two years, after which
the plants may be sold without the labeling required by this paragraph.

(e) A person deleted text beginselling at retail or providing to an end userdeleted text end may not label or advertise an
annual plant, bedding plant, or other plant, plant material, or nursery stock as beneficial to
pollinators if the annual plant, bedding plant, plant material, or nursery stock hasdeleted text begin:
deleted text end

deleted text begin (1)deleted text end been treated with new text beginand has a detectable level of new text enda systemic insecticide that:

deleted text begin (i)deleted text endnew text begin (1)new text end has a pollinator protection box on the label; or

deleted text begin (ii)deleted text endnew text begin (2)new text end has a pollinator, bee, or honey bee precautionary statement in the environmental
hazards section of the insecticide product labeldeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) a concentration in its flowers greater than the no observed adverse effect level of a
systemic insecticide.
deleted text end

The commissioner shall enforce this paragraph as provided in chapter 18J.

(f) For the purposes of paragraph (e)deleted text begin:deleted text endnew text begin,
new text end

deleted text begin (1)deleted text end "systemic insecticide" means an insecticide that is both absorbed by the plant and
translocated through the plant's vascular systemdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) "no observed adverse effect level" means the level established by the United States
Environmental Protection Agency for acute oral toxicity for adult honeybees.
deleted text end

Sec. 16.

Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:


Subd. 3.

Industrial hemp.

"Industrial hemp" means the plant Cannabis sativa L. and
any part of the plant, whether growing or not, new text beginincluding the plant's seeds, and all the plant's
derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not,
new text endwith a delta-9 tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01,
subdivision 9
.

Sec. 17.

Minnesota Statutes 2018, section 18K.03, is amended to read:


18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.

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

Sec. 18.

Minnesota Statutes 2018, section 28A.16, is amended to read:


28A.16 PERSONS SELLING LIQUOR.

new text begin (a) new text endThe provisions of the Minnesota consolidated food licensing law, sections 28A.01
to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent
malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell
intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407,
provided that these persons sell only ice manufactured and packaged by another, or bottled
or canned soft drinks and prepacked candy at retail.

new text begin (b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner
must exclude all gross sales of off-sale alcoholic beverages when determining the applicable
license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive
liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.
new text end

Sec. 19.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
amended by Laws 2016, chapter 184, section 11, Laws 2016, chapter 189, article 2, section
26, and Laws 2017, chapter 88, article 1, section 5, is amended to read:


Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

14,993,000
18,316,000

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

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation for
costs incurred to administer the program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

$10,235,000 the first year and $9,541,000 the
second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. No later
than February 1, 2016, and February 1, 2017,
the commissioner must report to the legislative
committees with jurisdiction over agriculture
policy and finance regarding the
commissioner's accomplishments and
anticipated accomplishments in the following
areas: facilitating the start-up, modernization,
or expansion of livestock operations including
beginning and transitioning livestock
operations; developing new markets for
Minnesota farmers by providing more fruits,
vegetables, meat, grain, and dairy for
Minnesota school children; assisting
value-added agricultural businesses to begin
or expand, access new markets, or diversify
products; developing urban agriculture;
facilitating the start-up, modernization, or
expansion of other beginning and transitioning
farms including loans under Minnesota
Statutes, section 41B.056; sustainable
agriculture on farm research and
demonstration; development or expansion of
food hubs and other alternative
community-based food distribution systems;
incentive payments under Minnesota Statutes,
sections 41A.16, 41A.17, and 41A.18; 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, deleted text begin2019deleted text endnew text begin 2020new text end.

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.

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.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $500,000 in fiscal year 2016
and $806,000 in fiscal year 2017 are for
incentive payments under Minnesota Statutes,
sections 41A.16, 41A.17, and 41A.18. If the
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available to the commissioner for the
agricultural growth, research, and innovation
program. Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation is
available until June 30, 2017, and the second
year appropriation is available until June 30,
2018. The commissioner may use up to 4.5
percent of the appropriation for administration
of the incentive payment programs.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $250,000 the first year is for
grants to communities to develop or expand
food hubs and other alternative
community-based food distribution systems.
Of this amount, $50,000 is for the
commissioner to consult with existing food
hubs, alternative community-based food
distribution systems, and University of
Minnesota Extension to identify best practices
for use by other Minnesota communities. No
later than December 15, 2015, the
commissioner must report to the legislative
committees with jurisdiction over agriculture
and health regarding the status of emerging
alternative community-based food distribution
systems in the state along with
recommendations to eliminate any barriers to
success. Any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. This is a onetime
appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable retail
petroleum dispensers to dispense biofuels to
the public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this paragraph if the retail petroleum
dispenser has no more than 15 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money received under
this paragraph must be used for the installation
of appropriate technology that uses fuel
dispensing equipment appropriate for at least
one fuel dispensing site to dispense gasoline
that is blended with 15 percent of
agriculturally derived, denatured ethanol, by
volume, and appropriate technical assistance
related to the installation. A grant award must
not exceed 85 percent of the cost of the
technical assistance and appropriate
technology, including remetering of and
retrofits for retail petroleum dispensers and
replacement of petroleum dispenser projects.
The commissioner may use up to $35,000 of
this appropriation for administrative expenses.
The commissioner shall cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance by
February 1 each year, detailing the number of
grants awarded under this paragraph and the
projected effect of the grant program on
meeting the biofuel replacement goals under
Minnesota Statutes, section 239.7911. These
are onetime appropriations.

$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 begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:


Subd. 2.

Protection Services

17,821,000
17,825,000
Appropriations by Fund
2018
2019
General
17,428,000
17,428,000
Remediation
393,000
397,000

(a) $25,000 the first year and $25,000 the
second year are to develop and maintain
cottage food license exemption outreach and
training materials.

(b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional
facility vocational training program and to
assist entities that have explored the feasibility
of establishing a USDA-certified or state
"equal to" food processing facility within 30
miles of the Northeast Regional Corrections
Center.

(c) $125,000 the first year and $125,000 the
second year are for additional funding for the
noxious weed and invasive plant program.
These are onetime appropriations.

(d) $250,000 the first year and $250,000 the
second year are for transfer to the pollinator
habitat and research account in the agricultural
fund. These are onetime transfers.

(e) $393,000 the first year and $397,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(f) $200,000 the first year and $200,000 the
second year are for the industrial hemp pilot
program under Minnesota Statutes, section
18K.09. These are onetime appropriations.

(g) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate for
livestock that were destroyed or crippled
during fiscal year 2017. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year.new text begin The
commissioner may use up to $5,000 of this
appropriation the second year to reimburse
expenses incurred by university extension
educators to provide fair market values of
destroyed or crippled livestock.
new text end

(h) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.

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.

(i) $250,000 the first year and $250,000 the
second year are to expand current capabilities
for rapid detection, identification, containment,
control, and management of high priority plant
pests and pathogens. These are onetime
appropriations.

(j) $300,000 the first year and $300,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government under
Minnesota Statutes, section 18.90, with
preference given to local units of government
responding to Palmer amaranth or other weeds
on the eradicate list. These are onetime
transfers.

(k) $120,000 the first year and $120,000 the
second year are for wolf-livestock conflict
prevention grants under article 2, section 89.
The commissioner must submit a report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance by January 15,
2020, on the outcomes of the wolf-livestock
conflict prevention grants and whether
livestock compensation claims were reduced
in the areas that grants were awarded. These
are onetime appropriations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:


Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

22,581,000
22,636,000

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, including prevention measures that
can be taken.

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

(b) $13,256,000 the first year and $13,311,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
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; providing funding not to exceed
$250,000 each year for urban youth
agricultural education or urban agriculture
community development; providing funding
not to exceed $250,000 each year for the good
food access program under Minnesota
Statutes, section 17.1017; facilitating the
start-up, modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
good agricultural practices/good handling
practices certification assistance; establishing
and supporting farmer-led water management
councils; and implementing farmer-led water
quality improvement practices. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:

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

(2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2019, and the second year appropriation is
available until June 30, 2020. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program.

The commissioner may use funds appropriated
under this subdivision to award up to two
value-added agriculture grants per year of up
to $1,000,000 per grant for new or expanding
agricultural production or processing facilities
that provide significant economic impact to
the region. The commissioner may use funds
appropriated under this subdivision for
additional value-added agriculture grants for
awards between $1,000 and $200,000 per
grant.

Appropriations in clauses (1) and (2) are
onetime. 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,
appropriations encumbered under contract on
or before June 30, 2019, for agricultural
growth, research, and innovation grants are
available until June 30, deleted text begin2021deleted text endnew text begin 2022new text end.

The base budget for the agricultural growth,
research, and innovation program is
$14,275,000 for fiscal years 2020 and 2021
and includes funding for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20.

The commissioner must develop additional
innovative production incentive programs to
be funded by the agricultural growth, research,
and innovation program.

The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify parcels of
publicly owned land that are suitable for urban
agriculture.

(c) $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 begin EFFECTIVE DATE. new text end

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

Sec. 22. new text beginINDUSTRIAL HEMP; REPORT.
new text end

new text begin (a) The commissioner of agriculture must submit a plan to the secretary of the United
States Department of Agriculture and request primary regulatory authority over the
production of industrial hemp in this state, as provided under section 10113 of the Agriculture
Improvement Act of 2018.
new text end

new text begin (b) The commissioner of agriculture, in consultation with the commissioners of public
safety and health, must develop a framework for regulating the possession and use of
tetrahydrocannabinol resulting from industrial hemp processing, including but not limited
to the extraction of cannabidiol or other components. No later than February 15, 2020, the
commissioner of agriculture must submit the proposed framework to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture, public safety, and health.
new text end

Sec. 23. new text beginREPORT REQUIRED; BEGINNING FARMERS.
new text end

new text begin No later than February 1, 2020, the commissioner of agriculture must report
recommendations to the legislative committees and divisions with jurisdiction over agriculture
finance regarding how best to cultivate and support beginning farmers, with priority given
to beginning farmers who are women, veterans, persons with disabilities, American Indian
or Alaskan Native, and members of communities of color. When preparing this report, the
commissioner must consult the commissioners of labor and industry and employment and
economic development and consider development of a next generation farmer internship
program.
new text end

Sec. 24. new text beginREPORT REQUIRED; COMMUNITY SOLAR.
new text end

new text begin (a) The Center for Rural Policy and Development must study the economic benefits to
farmers and the local farm economy of community solar gardens. The study must analyze
to what extent:
new text end

new text begin (1) revenue generated by community solar garden leases has a measurable economic
benefit for farmers and the local farm economy;
new text end

new text begin (2) activity related to community solar garden construction, operation, and maintenance,
and the associated private investment to upgrade the utility's local distribution infrastructure,
has a measurable economic benefit for the local farm economy;
new text end

new text begin (3) community solar gardens provide an economic benefit, helping farmers obtain
financing for farm operations and decreasing the number of farm foreclosures;
new text end

new text begin (4) community solar gardens provide economic benefits for land conservation, habitat,
and soil health; and
new text end

new text begin (5) community solar gardens impact the value of adjacent properties.
new text end

new text begin (b) No later than January 15, 2021, the Center for Rural Policy and Development must
submit the study and any policy recommendations to the legislative committees and divisions
with jurisdiction over agriculture and energy.
new text end

ARTICLE 2

FARMED CERVIDAE

Section 1.

Minnesota Statutes 2018, section 35.155, subdivision 4, is amended to read:


Subd. 4.

Fencing.

Farmed Cervidae must be confined in a manner designed to prevent
escape. All perimeter fences for farmed Cervidae must be new text begincomprised of two or more rows
of fencing, or one high tensile fence. All perimeter fences must be
new text endat least 96 inches in
height and be constructed and maintained in a way that prevents the escape of farmed
Cervidae or entry into the premises by free-roaming Cervidae.new text begin All entry areas for farmed
Cervidae enclosure areas shall have two redundant gates, which must be maintained to
prevent the escape of animals through an open gate. If a fence deficiency allows imminent
entry or exit by farmed or free-roaming Cervidae, the owner must repair the deficiency
within a reasonable period of time as determined by the board. If a fence deficiency is
detected during an annual inspection under subdivision 7, the facility must be reinspected
not less than two times in the subsequent six months. If the facility experiences more than
two escape incidents in any 12-month period, the board may revoke the facility's registration
and order the owner to remove or destroy the animals as directed by the board.
new text end

Sec. 2.

Minnesota Statutes 2018, section 35.155, subdivision 6, is amended to read:


Subd. 6.

Identification.

(a) Farmed Cervidae must be identified by means approved by
the Board of Animal Health. The identification must new text begininclude a distinct number that has not
been used during the previous three years and must
new text endbe visible to the naked eye during
daylight under normal conditions at a distance of 50 yards. Newborn animals must be
identified deleted text beginbefore December 31 of the year in which the animal is borndeleted text endnew text begin within 24 hours of
birth
new text end or before movement from the premises, whichever occurs first.new text begin As coordinated by the
board, the commissioner of natural resources may destroy any animal that is not identified
as required under this subdivision.
new text end

(b) The Board of Animal Health shall register farmed Cervidae. The owner must submit
the registration request on forms provided by the board. The forms must include sales
receipts or other documentation of the origin of the Cervidae. The board shall provide copies
of the registration information to the commissioner of natural resources upon request. The
owner must keep written records of the acquisition and disposition of registered farmed
Cervidae.

Sec. 3.

Minnesota Statutes 2018, section 35.155, subdivision 7, is amended to read:


Subd. 7.

Inspection.

new text begin(a) new text endThe commissioner of agriculture and the Board of Animal
Health may inspect farmed Cervidaedeleted text begin, farmed Cervidae facilities,deleted text end and farmed Cervidae
records. deleted text beginFor each herd, the owner or owners must, on or before January 1, pay an annual
inspection fee equal to $10 for each cervid in the herd as reflected in the most recent
inventory submitted to the Board of Animal Health, up to a maximum fee of $100.
deleted text endnew text begin The
board shall coordinate inspections authorized under this paragraph.
new text end

new text begin (b) The Board of Animal Health shall annually inspect each farmed Cervidae facility.
Upon request by the Board of Animal Health, the commissioner of agriculture shall assist
the board with annual inspections required under this paragraph. The annual inspection shall
include a physical inspection of all perimeter fencing around the facility and a viewing to
ensure all animals are tagged. The owner of a farmed Cervidae facility must present to the
regulatory agency conducting the annual inspection an accurate inventory of the owner's
farmed Cervidae for review. During an annual inspection, the owner must present individual
animals in a herd for a physical inventory, if required by the board.
new text end

new text begin (c)new text end The commissioner of natural resources may inspect farmed Cervidae, farmed Cervidae
facilities, and farmed Cervidae records with reasonable suspicion that laws protecting native
wild animals have been violated and must notify the owner in writing at the time of the
inspection of the reason for the inspection and must inform the owner in writing after the
inspection of whether (1) the cause of the inspection was unfounded; or (2) there will be an
ongoing investigation or continuing evaluation.

new text begin (d) If the owner of a farmed Cervidae facility does not repair fence deficiencies within
the reasonable period of time determined by the board or is not otherwise in compliance
with this section after an inspection and review of the owner's farmed Cervidae facility, the
board may revoke the owner's registration and order the owner to remove or destroy the
animals as directed by the board.
new text end

Sec. 4.

Minnesota Statutes 2018, section 35.155, is amended by adding a subdivision to
read:


new text begin Subd. 7a. new text end

new text begin Fees. new text end

new text begin For each herd, the owner must, on or before January 1, pay to the board
an annual inspection fee of $500 unless:
new text end

new text begin (1) the owner sells the ability to shoot animals in the herd, in which case the annual
inspection fee is $1,000; or
new text end

new text begin (2) the herd consists of more than one species, in which case the annual inspection fee
is $650.
new text end

Sec. 5.

Minnesota Statutes 2018, section 35.155, subdivision 9, is amended to read:


Subd. 9.

Contested case hearing.

new text begin(a) new text endA person raising farmed Cervidae that is aggrieved
with any decision regarding the farmed Cervidae may request a contested case hearing under
chapter 14.

new text begin (b) A person requesting a contested case hearing regarding a registration revocation
under this section must make the request within 30 days of the revocation notice.
new text end

Sec. 6.

Minnesota Statutes 2018, section 35.155, subdivision 10, is amended to read:


Subd. 10.

Mandatory registration.

new text begin(a) new text endA person may not possess live Cervidae in
Minnesota unless the person is registered with the Board of Animal Health and meets all
the requirements for farmed Cervidae under this section. Cervidae possessed in violation
of this subdivision may be seized and destroyed by the commissioner of natural resources.

new text begin (b) A person whose registration is revoked by the board is ineligible for future registration
under this section.
new text end

new text begin (c) Effective July 1, 2019, to July 1, 2022, the board must not approve a new registration
under this subdivision for possession of white-tailed deer. This paragraph does not prohibit
a person holding a valid registration under this subdivision from selling or transferring their
herd to a family member if the person has no history of violations under this section and
the herd is free from chronic wasting disease.
new text end

Sec. 7.

Minnesota Statutes 2018, section 35.155, subdivision 11, is amended to read:


Subd. 11.

Mandatory surveillance for chronic wasting diseasenew text begin; herd depopulationnew text end.

(a)
An inventory for each farmed Cervidae herd must be verified by an accredited veterinarian
and filed with the Board of Animal Health every 12 months.

(b) Movement of farmed Cervidae from any premises to another location must be reported
to the Board of Animal Health within deleted text begin14 daysdeleted text endnew text begin 48 hoursnew text end of the movement on forms approved
by the Board of Animal Health.new text begin If an animal in a farmed Cervidae herd tests positive for
chronic wasting disease, the board must alert each person registered under subdivision 7 as
soon as practicable and farmed Cervidae must not be moved from any premises in this state
for a minimum of 72 hours. The board must examine the movement of farmed Cervidae
and other chronic wasting disease vectors related to farmed Cervidae both in and out of the
premises where the infected herd was located and take reasonable action necessary to slow
or prevent the spread of chronic wasting disease from the infected herd to other farmed or
free-roaming Cervidae.
new text end

(c) All animals from farmed Cervidae herds that are over deleted text begin16deleted text endnew text begin 12new text end months of age that die
or are slaughtered must be tested for chronic wasting disease.

new text begin (d) If an animal in a farmed Cervidae herd tests positive for chronic wasting disease,
the entire herd must be euthanized and disposed of in a manner, and within a reasonable
period of time, determined by the board in consultation with the commissioner of natural
resources.
new text end

new text begin (e) The owner of a herd that euthanizes and disposes of the herd as required by paragraph
(d) must:
new text end

new text begin (1) maintain the fencing required under subdivision 4;
new text end

new text begin (2) prevent any free-roaming or farmed Cervidae from accessing the former cervid pens
and other areas that were accessible by the farmed Cervidae; and
new text end

new text begin (3) post the premises as directed by the board.
new text end

new text begin The requirements under this paragraph must be met for at least 60 months from the date
depopulation is completed.
new text end

new text begin (f) Before signing an agreement to sell or transfer the property, the owner of a premises
where chronic wasting disease is detected must disclose in writing to the buyer or transferee
the date of depopulation and the requirements incumbent upon the premises and the buyer
or transferee under paragraph (e).
new text end

Sec. 8. new text beginREPORT REQUIRED.
new text end

new text begin No later than February 1, 2020, the Board of Animal Health must report to the legislative
committees and divisions with jurisdiction over agriculture policy and finance regarding
the board's progress in implementing recommendations in the Office of the Legislative
Auditor's April 2018 program evaluation report "Board of Animal Health's Oversight of
Deer and Elk Farms."
new text end

ARTICLE 3

GRAIN BUYERS

Section 1.

Minnesota Statutes 2018, section 223.16, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

For the purpose of sections 223.15 to deleted text begin223.22deleted text endnew text begin 223.23new text end, the
terms defined in this section have the meanings given them.

Sec. 2.

Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:


Subd. 2a.

Cash sale.

"Cash sale" meansdeleted text begin:
deleted text end

deleted text begin (a)deleted text end a sale new text beginthat is not reduced to writing as a voluntary extension of credit contract and
new text end for which payment is tendered deleted text beginto the seller not later than the close of business on the next
business day after the sale,
deleted text end either in cash or by check, or by mailing or wiring funds to the
seller's account deleted text beginin the amount of at least 80 percent of the value of the grain at delivery; ordeleted text endnew text begin.
new text end

deleted text begin (b) a sale of a shipment of grain which is part of a multiple shipment sale, for which a
scale ticket clearly marked "CASH" has been received by the seller before completion of
the entire sale, and for which payment is tendered in cash or by check not later than ten
days after the sale of that shipment, except that when the entire sale is completed, payment
is tendered in cash or by check not later than the close of business on the next business day,
or within 48 hours, whichever is later.
deleted text end

Sec. 3.

Minnesota Statutes 2018, section 223.16, is amended by adding a subdivision to
read:


new text begin Subd. 2b. new text end

new text begin Cash. new text end

new text begin "Cash" means currency or an equivalent manner of payment, including
but not limited to a certified check, a cashier's check, or a postal, bank, or express money
order in which the amount of payment is verified and secured prior to issuance.
new text end

Sec. 4.

Minnesota Statutes 2018, section 223.16, is amended by adding a subdivision to
read:


new text begin Subd. 2c. new text end

new text begin Cash buyer. new text end

new text begin "Cash buyer" means a person that purchases grain only with cash
and in amounts of less than $100,000 total annually.
new text end

Sec. 5.

Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:


Subd. 4.

Grain.

"Grain" means any cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture
deleted text begin or the Minnesota Board of Grain Standardsdeleted text end, dry edible beans, or other agricultural crops
designated by the commissioner by rule.

Sec. 6.

Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:


Subd. 3.

Grain buyers and storage account; fees.

new text begin(a) A grain buyer must pay to new text endthe
commissioner deleted text beginshall set the fees for inspections under sections 223.15 to 223.22 at levels
necessary to pay the expenses of administering and enforcing sections 223.15 to 223.22.
deleted text endnew text begin an
annual license fee as follows:
new text end

deleted text begin The fee for any license issued or renewed after June 30, 2005, shall be set according to
the following schedule:
deleted text end

deleted text begin (a)deleted text endnew text begin (1)new text end $140 plus $110 for each additional location for grain buyers whose gross annual
purchases are less than $100,000;

deleted text begin (b)deleted text endnew text begin (2)new text end $275 plus $110 for each additional location for grain buyers whose gross annual
purchases are at least $100,000, but not more than $750,000;

deleted text begin (c)deleted text endnew text begin (3)new text end $415 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $750,000 but not more than $1,500,000;

deleted text begin (d)deleted text endnew text begin (4)new text end $550 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $1,500,000 but not more than $3,000,000; and

deleted text begin (e)deleted text endnew text begin (5)new text end $700 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $3,000,000.

new text begin (b) In addition to the license fee required under paragraph (a), a grain buyer must pay
to the commissioner an annual examination fee for each licensed location, as follows:
new text end

new text begin Bushel Capacity
new text end
new text begin Examination
Fee
new text end
new text begin Examinations without a grain measure
new text end
new text begin $
new text end
new text begin 100
new text end
new text begin Less than 150,001
new text end
new text begin $
new text end
new text begin 300
new text end
new text begin 150,001 to 250,000
new text end
new text begin $
new text end
new text begin 425
new text end
new text begin 250,001 to 500,000
new text end
new text begin $
new text end
new text begin 545
new text end
new text begin 500,001 to 750,000
new text end
new text begin $
new text end
new text begin 700
new text end
new text begin 750,001 to 1,000,000
new text end
new text begin $
new text end
new text begin 865
new text end
new text begin 1,000,001 to 1,200,000
new text end
new text begin $
new text end
new text begin 1,040
new text end
new text begin 1,200,001 to 1,500,000
new text end
new text begin $
new text end
new text begin 1,205
new text end
new text begin 1,500,001 to 2,000,000
new text end
new text begin $
new text end
new text begin 1,380
new text end
new text begin More than 2,000,000
new text end
new text begin $
new text end
new text begin 1,555
new text end

new text begin The fee for any supplemental examination required by the commissioner under section
223.23 is $55 per hour per examiner.
new text end

new text begin (c) new text endA penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

new text begin (d) new text endThere is created the grain buyers and storage account in the agricultural fund. Money
collected pursuant to sections 223.15 to deleted text begin223.19deleted text endnew text begin 223.23new text end shall be paid into the state treasury
and credited to the grain buyers and storage account deleted text beginanddeleted text endnew text begin. Money in the account, including
interest,
new text end is appropriated to the commissioner for the administration and enforcement of
sections 223.15 to deleted text begin223.22deleted text endnew text begin 223.23new text end.

Sec. 7.

Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:


Subd. 4.

Bond.

(a) new text beginExcept as provided in paragraphs (c) to (e), new text endbefore a grain buyer's
license is issued, the applicant for the license must file with the commissioner a bond in a
penal sum prescribed by the commissioner but not less than the following amounts:

(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;

(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but
not more than $750,000;

(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but
not more than $1,500,000;

(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000
but not more than $3,000,000;

(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000
but not more than $6,000,000;

(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000
but not more than $12,000,000;

(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000
but not more than $24,000,000; and

(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.

(b) deleted text beginA grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is
not required to increase the amount of the bond to comply with this section until July 1,
2005. The commissioner may postpone an increase in the amount of the bond until July 1,
2006, if a licensee demonstrates that the increase will impose undue financial hardship on
the licensee, and that producers will not be harmed as a result of the postponement. The
commissioner may impose other restrictions on a licensee whose bond increase has been
postponed.
deleted text end The amount of the bond shall be based on the most recent gross annual grain
purchase report of the grain buyer.

(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
the licensee shall comply with the applicable bonding requirements contained in paragraph
(a), clauses (1) to (8).

(d) In lieu of the bond required by this subdivision the applicant may deposit with the
commissioner of management and budget deleted text begincash, a certified check, a cashier's check, a postal,
bank, or express money order, assignable bonds or notes of the United States, or an
assignment of a bank savings account or investment certificate or
deleted text end an irrevocable bank letter
of credit as defined in section 336.5-102, in the same amount as would be required for a
bond.

(e) new text beginA cash buyer is exempt from the requirements under this subdivision.
new text end

new text begin (f) new text endBonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

Sec. 8.

Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:


Subd. 5.

Cash sales; manner of payment.

For a cash sale of a shipment of grain deleted text beginwhich
is part of a multiple shipment sale
deleted text end, the grain buyer shall tender payment to the seller in cash
or by check deleted text beginnot later than ten days after the sale of that shipment, except that when the entire
sale is completed, payment shall be tendered not later than the close of business on the next
day, or within 48 hours, whichever is later. For other cash sales the grain buyer, before the
close of business on the next business day after the sale, shall tender payment to the seller
in cash or by check, or shall wire or mail funds to the seller's account in the amount of at
least 80 percent of the value of the grain at the time of delivery
deleted text endnew text begin, or wire or mail funds to the
seller's account
new text end. The grain buyer shall complete final settlement new text beginafter the sale of the shipment
new text end as rapidly as possible through ordinary diligence.

Sec. 9.

Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:


Subd. 6.

Financial statements.

(a) new text beginExcept as required in paragraph (c), new text endthe commissioner
deleted text begin maydeleted text end new text beginmust new text endrequire an annual financial statement from a licensee which has been prepared
in accordance with generally accepted accounting principles and which meets the following
requirements:

(1) The financial statement shall include, but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of changes in financial position; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyer.

deleted text begin (2) The financial statement shall be accompanied by a compilation report of the financial
statement that is prepared by a grain commission firm or a management firm approved by
the commissioner or by an independent public accountant, in accordance with standards
established by the American Institute of Certified Public Accountants. Grain buyers
purchasing less than 150,000 bushels of grain per calendar year may submit a financial
statement prepared by a public accountant who is not an employee or a relative within the
third degree of kindred according to civil law.
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end The financial statement shall be accompanied by a certification by the chief
executive officer or the chief executive officer's designee of the licensee, under penalty of
perjury, that the financial statement accurately reflects the financial condition of the licensee
for the period specified in the statement.

new text begin (3) A grain buyer purchasing less than $2,000,000 of grain annually must have the
financial statement reviewed by a certified public accountant in accordance with standards
established by the American Institute of Certified Public Accountants, and must show that
the financial statements are free from material misstatements.
new text end

new text begin (4) A grain buyer purchasing $2,000,000 or more of grain annually must have the
financial statement audited by a certified public accountant in accordance with standards
established by the American Institute of Certified Public Accountants, and must submit an
opinion statement from the certified public accountant.
new text end

(b) Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. deleted text beginAny
grain buyer having a net worth in excess of $500,000,000 need not file the financial statement
required by this subdivision but must provide the commissioner with a certified net worth
statement.
deleted text end All financial statements filed with the commissioner are private or nonpublic
data as provided in section 13.02.

new text begin (c) A cash buyer is exempt from the requirements of this subdivision.
new text end

Sec. 10.

Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:


Subd. 2.

Oral contracts.

Any grain buyer entering into a voluntary extension of credit
contract orally or by phone shall give or mail to the seller a written confirmation conforming
to the requirements of section 223.175 deleted text beginbefore the close of the next business daydeleted text endnew text begin within 30
days. Written confirmation of oral contracts must meet the requirements under section
223.177, subdivision 3
new text end.

Sec. 11.

Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:


Subd. 3.

Contracts reduced to writing.

A voluntary extension of credit contract must
be reduced to writing by the grain buyer deleted text beginanddeleted text endnew text begin,new text end mailed or given to the seller deleted text beginbefore the close
of the next business day after the contract is entered into or, in the case of an oral or phone
contract, after the written confirmation is received by the seller. Provided, however, that if
a scale ticket has been received by the seller prior to the completion of the grain shipment,
the contract must be reduced to writing within ten days after the sale, but not later than the
close of the next business day after the completion of the entire sale
deleted text endnew text begin, and signed by both
buyer and seller within 30 days of the date of delivery
new text end. The form of the contract shall comply
with the requirements of section 223.175. A grain buyer may use an electronic version of
a voluntary extension of credit contract that contains the same information as a written
document and that conforms to the requirements of this chapter to which a seller has applied
an electronic signature in place of a written document. There must not at any time be an
electronic and paper voluntary extension of credit contract representing the same lot of
grain.

Sec. 12.

Minnesota Statutes 2018, section 223.19, is amended to read:


223.19 RULES.

The commissioner may make rules pursuant to chapter 14 to carry out the provisions of
sections 223.15 to deleted text begin223.22deleted text endnew text begin 223.23new text end.

Sec. 13.

new text begin [223.23] ANNUAL EXAMINATION REQUIRED; SUPPLEMENTAL
EXAMINATIONS.
new text end

new text begin A licensed grain buyer is subject to an annual examination conducted by the commissioner
or the Agricultural Marketing Service of the United States Department of Agriculture.
Examinations must include a measurement of all grain owned and maintained by the grain
buyer. The commissioner may require supplemental examinations of a grain buyer as the
commissioner deems necessary.
new text end

ARTICLE 4

GRAIN WAREHOUSES

Section 1.

Minnesota Statutes 2018, section 232.21, subdivision 7, is amended to read:


Subd. 7.

Grain.

"Grain" means any cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture
deleted text begin or the Minnesota Board of Grain Standardsdeleted text end, dry edible beans, or agricultural crops designated
by the commissioner by rule.

Sec. 2.

Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to
read:


new text begin Subd. 7a. new text end

new text begin Grain bank. new text end

new text begin "Grain bank" means a feed processing plant that receives and
stores grain it processes and returns to the grain's owner in amounts, at intervals, and with
added ingredients that are mutually agreeable to the grain's owner and the person operating
the plant. "Grain bank" does not include a seed cleaning plant. Grain assigned to a grain
bank is considered stored grain.
new text end

Sec. 3.

Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:


Subd. 3.

Fees; grain buyers and storage account.

new text begin(a) new text endThere is created in the agricultural
fund an account known as the grain buyers and storage account. deleted text beginThe commissioner shall
deleted text enddeleted text begin set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24.
deleted text end
All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner
into the state treasury and credited to the grain buyers and storage account deleted text beginanddeleted text endnew text begin. Money in
the account, including interest,
new text end is appropriated to the commissioner for the administration
and enforcement of sections 232.20 to 232.24.

new text begin (b) new text endAll money collected pursuant to chapter 231 shall be paid by the commissioner into
the grain buyers and storage account deleted text beginanddeleted text endnew text begin. Money in the accountnew text end is appropriated to the
commissioner for the administration and enforcement of chapter 231.

new text begin (c) new text endThe fees for a license to store grain are as follows:

deleted text begin (a)deleted text endnew text begin (1)new text end For a license to store grain, $110 for each home rule charter or statutory city or
town in which a public grain warehouse is operated.

deleted text begin (b)deleted text endnew text begin (2) In addition to the license fee required under clause (1),new text end a person with a license
to store grain in a public grain warehouse is subject to an examination fee for each licensed
location, deleted text beginbased on the following schedule for one examinationdeleted text endnew text begin as followsnew text end:

Bushel Capacity
Examination
Fee
Less than 150,001
$
300
150,001 to 250,000
$
425
250,001 to 500,000
$
545
500,001 to 750,000
$
700
750,001 to 1,000,000
$
865
1,000,001 to 1,200,000
$
1,040
1,200,001 to 1,500,000
$
1,205
1,500,001 to 2,000,000
$
1,380
More than 2,000,000
$
1,555

deleted text begin (c)deleted text endnew text begin (3)new text end The fee for deleted text beginthe second examinationdeleted text endnew text begin supplemental examinations required by the
commissioner under section 232.24
new text end is $55 per hour per examiner deleted text beginfor warehouse operators
who choose to have it performed by the commissioner
deleted text end.

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

Sec. 4.

Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:


Subd. 4.

Bonding.

(a) Before a license is issued, new text beginexcept as provided under paragraph
(c),
new text endthe applicant for a public grain warehouse operator's license shall file with the
commissioner a bond in a penal sum prescribed by the commissioner based on the annual
average storage liability as stated on the statement of grain in storage report or on the gross
annual grain purchase report, whichever is greater, and applying the following amounts:

(1) $10,000 for storages with annual average storage liability of more than $0 but not
more than $25,000;

(2) $20,000 for storages with annual average storage liability of more than $25,001 but
not more than $50,000;

(3) $30,000 for storages with annual average storage liability of more than $50,001 but
not more than $75,000;

(4) $50,000 for storages with annual average storage liability of more than $75,001 but
not more than $100,000;

(5) $75,000 for storages with annual average storage liability of more than $100,001
but not more than $200,000;

(6) $125,000 for storages with annual average storage liability of more than $200,001
but not more than $300,000;

(7) $175,000 for storages with annual average storage liability of more than $300,001
but not more than $400,000;

(8) $225,000 for storages with annual average storage liability of more than $400,001
but not more than $500,000;

(9) $275,000 for storages with annual average storage liability of more than $500,001
but not more than $600,000;

(10) $325,000 for storages with annual average storage liability of more than $600,001
but not more than $700,000;

(11) $375,000 for storages with annual average storage liability of more than $700,001
but not more than $800,000;

(12) $425,000 for storages with annual average storage liability of more than $800,001
but not more than $900,000;

(13) $475,000 for storages with annual average storage liability of more than $900,001
but not more than $1,000,000; and

(14) $500,000 for storages with annual average storage liability of more than $1,000,000.

(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

new text begin (c) In lieu of the bond required by this subdivision, the applicant may deposit with the
commissioner of management and budget an irrevocable bank letter of credit as defined in
section 336.5-102, in the same amount as would be required for a bond.
new text end

Sec. 5.

Minnesota Statutes 2018, section 232.24, is amended to read:


232.24 SCHEDULE OF INSPECTION, FINANCIAL REPORTS.

Subdivision 1.

Schedule of examination.

A licensee under sections 232.20 to 232.24
is subject to deleted text begintwo examinationsdeleted text endnew text begin an examinationnew text end annually conducted by the commissioner or
the Agricultural Marketing Service of the United States Department of Agriculture. The
commissioner maydeleted text begin, by rule, authorize one examination to be conducted by a qualified
nongovernmental unit
deleted text endnew text begin require supplemental examinations of a licensee as the commissioner
deems necessary
new text end.

Subd. 2.

Financial reports.

A licensee under sections 232.20 to 232.24 deleted text beginupon requestdeleted text end
must provide to the commissioner a copy of the financial deleted text beginreports of an audit conducted by
a qualified nongovernmental unit containing information the commissioner requires
deleted text endnew text begin report
that satisfies the requirements under section 223.17, subdivision 6, paragraph (a), clause
(1)
new text end.

ARTICLE 5

HOUSING FINANCE AGENCY APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
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 "2020" and "2021" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is
fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginHOUSING FINANCE AGENCY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 69,298,000
new text end
new text begin $
new text end
new text begin 62,298,000
new text end

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

new text begin (b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section. Except as otherwise indicated,
this transfer is part of the agency's permanent
budget base.
new text end

new text begin Subd. 2. new text end

new text begin Challenge Program
new text end

new text begin 14,925,000
new text end
new text begin 14,925,000
new text end

new text begin (a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
new text end

new text begin (b) The base for this program in fiscal year
2022 and beyond is $14,425,000.
new text end

new text begin Subd. 3. new text end

new text begin Local Housing Trust Fund Grants
new text end

new text begin 7,000,000
new text end
new text begin -0-
new text end

new text begin (a) This appropriation is for grants to housing
trust funds established under Minnesota
Statutes, section 462C.16, to incentivize local
funding. This is a onetime appropriation.
new text end

new text begin (b) A grantee is eligible to receive a grant
amount equal to 100 percent of the public
revenue committed to the local housing trust
fund from any source other than the state or
federal government, up to $150,000, and in
addition, an amount equal to 50 percent of the
public revenue committed to the local housing
trust fund from any source other than the state
or federal government that is more than
$150,000 but not more than $300,000.
new text end

new text begin (c) $100,000 of this appropriation is for
technical assistance grants to local and
regional housing trust funds. A housing trust
fund may apply for a technical assistance grant
at the time and in the manner and form
required by the agency. The agency shall make
grants on a first-come, first-served basis. A
technical assistance grant must not exceed
$5,000.
new text end

new text begin (d) A grantee must use grant funds within
eight years of receipt for purposes (1)
authorized under Minnesota Statutes, section
462C.16, subdivision 3, and (2) benefiting
households with incomes at or below 115
percent of the state median income. A grantee
must return any grant funds not used for these
purposes within eight years of receipt to the
commissioner of the Housing Finance Agency
for deposit into the housing development fund.
new text end

new text begin (e) Before the agency makes any grants with
money from this appropriation, the
commissioner shall consult with interested
stakeholders when developing the guidelines
and procedures for the grant program.
new text end

new text begin Subd. 4. new text end

new text begin Workforce Housing Development
new text end

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin This appropriation is for the workforce
housing development program under
Minnesota Statutes, section 462A.39. If
requested by the applicant and approved by
the agency, funded properties may include a
portion of income and rent restricted units.
new text end

new text begin Subd. 5. new text end

new text begin Housing Trust Fund
new text end

new text begin 11,646,000
new text end
new text begin 11,646,000
new text end

new text begin This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.
new text end

new text begin Subd. 6. new text end

new text begin Homework Starts with Home
new text end

new text begin 3,000,000
new text end
new text begin 3,000,000
new text end

new text begin This appropriation is for the homework starts
with home program under Minnesota Statutes,
sections 462A.201, subdivision 2, paragraph
(a), clause (4), and 462A.204, subdivision 8,
to provide assistance to homeless or highly
mobile families with children eligible for
enrollment in a prekindergarten through grade
12 academic program.
new text end

new text begin Subd. 7. new text end

new text begin Rental Assistance for Mentally Ill
new text end

new text begin 5,088,000
new text end
new text begin 5,088,000
new text end

new text begin This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.
new text end

new text begin Subd. 8. new text end

new text begin Family Homeless Prevention
new text end

new text begin 9,519,000
new text end
new text begin 9,519,000
new text end

new text begin This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.
new text end

new text begin Subd. 9. new text end

new text begin Workforce Homeownership Program
new text end

new text begin 1,000,000
new text end
new text begin 1,000,000
new text end

new text begin (a) This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38.
new text end

new text begin (b) The base for this program in fiscal year
2022 and beyond is $500,000.
new text end

new text begin Subd. 10. new text end

new text begin Affordable Rental Investment Fund
new text end

new text begin 4,218,000
new text end
new text begin 4,218,000
new text end

new text begin (a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.
new text end

new text begin (b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
new text end

new text begin Subd. 11. new text end

new text begin Housing Rehabilitation
new text end

new text begin 6,515,000
new text end
new text begin 6,515,000
new text end

new text begin (a) This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing and
$3,743,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33,
and may provide grants or forgivable loans if
approved by the agency.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 12. new text end

new text begin Home Ownership Assistance Fund
new text end

new text begin 885,000
new text end
new text begin 885,000
new text end

new text begin This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin Subd. 13. new text end

new text begin Lead Safe Homes Grant Program
new text end

new text begin 1,000,000
new text end
new text begin 1,000,000
new text end

new text begin (a) This appropriation is for grants under the
lead safe homes grant program under
Minnesota Statutes, section 462A.2095.
new text end

new text begin (b) At least one grant must be to a nonprofit
organization or political subdivision serving
an area in the seven-county metropolitan area,
as defined in Minnesota Statutes, section
473.121, and at least one grant must be to a
nonprofit organization or political subdivision
serving an area outside the seven-county
metropolitan area.
new text end

new text begin (c) The base for this program in fiscal year
2022 and beyond is $500,000.
new text end

new text begin Subd. 14. new text end

new text begin Homeownership Education,
Counseling, and Training
new text end

new text begin 857,000
new text end
new text begin 857,000
new text end

new text begin This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
new text end

new text begin Subd. 15. new text end

new text begin Capacity-Building Grants
new text end

new text begin 745,000
new text end
new text begin 745,000
new text end

new text begin This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. Of
this amount, $125,000 each year is for support
of the Homeless Management Information
System (HMIS). Of this amount, $300,000
each year is for a statewide tenant hotline that
provides free and confidential legal advice for
all Minnesota renters.
new text end

new text begin Subd. 16. new text end

new text begin Build Wealth MN
new text end

new text begin 500,000
new text end
new text begin 500,000
new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.
new text end

new text begin Subd. 17. new text end

new text begin Homeownership Capacity
new text end

new text begin 400,000
new text end
new text begin 400,000
new text end

new text begin This appropriation is for competitive grants
to nonprofit housing organizations, housing
and redevelopment authorities, or other
political subdivisions to provide intensive
financial education and coaching services to
individuals or families who have the goal of
homeownership. Financial education and
coaching services include but are not limited
to asset building, development of spending
plans, credit report education, repair and
rebuilding, consumer protection training, and
debt reduction. Priority must be given to
organizations that have experience serving
underserved populations.
new text end

Sec. 3. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2019.
new text end

ARTICLE 6

HOUSING PROGRAMS

Section 1.

new text begin [462A.2095] LEAD SAFE HOMES GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Housing Finance Agency shall establish a lead safe
homes grant program to increase lead testing in residential rental housing and make
residential rental housing units lead safe. The agency shall give priority to grantees that
target landlords and tenants in areas with a high concentration of lead poisoning in children
based on information provided by the commissioner of health.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) An eligible grantee must be a nonprofit organization or political
subdivision capable of administering funding and services to a defined geographic area.
new text end

new text begin (b) Up to ten percent of a grant award may be used to administer the grant and provide
education and outreach about lead health hazards.
new text end

new text begin Subd. 3. new text end

new text begin Inspection; lead hazard reduction. new text end

new text begin (a) A grantee must provide lead risk
assessments completed by a lead inspector or a lead risk assessor licensed by the
commissioner of health pursuant to section 144.9505 for properties built before 1978 to
determine the presence of lead hazards and to provide interim controls to reduce lead health
hazards. The grantee must conduct testing and provide lead hazard reduction to:
new text end

new text begin (1) landlords of residential buildings with 11 units or less where the tenants have incomes
that do not exceed 60 percent of area median income;
new text end

new text begin (2) landlords of residential buildings with 12 units or more where at least 50 percent of
the tenants have incomes that are below 60 percent of the median income; and
new text end

new text begin (3) tenants with an income that does not exceed 60 percent of area median income.
new text end

new text begin (b) A landlord or tenant must first access other available state and federal funding related
to lead testing and lead hazard reduction for which they are eligible.
new text end

new text begin Subd. 4. new text end

new text begin Short title. new text end

new text begin This section shall be known as the "Dustin Luke Shields Act."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end