HF 3420

3rd Engrossment - 92nd Legislature (2021 - 2022) Posted on 06/09/2022 12:54pm

A bill for an act
relating to state government; appropriating money for drought relief; establishing
cooperative grants for farmers; establishing farm down payment assistance grants;
establishing a soil health financial assistance pilot program; making policy and
technical changes to agricultural provisions; modifying previous appropriations;
establishing the broadband line extension program; establishing the lower
population density pilot program; requiring reports; appropriating money; amending
Minnesota Statutes 2020, sections 17.041, subdivision 1; 17.117, subdivisions 9,
9a, 10, 11, 11a; 17.118, subdivisions 1, 3; 18B.051; 18E.03, subdivision 3; 18E.04,
subdivisions 3, 4; 28A.21, subdivision 2; 35.05; 40A.18, subdivision 2; 41A.16,
subdivision 1, by adding a subdivision; 41A.17, subdivision 1, by adding a
subdivision; 41A.18, subdivision 1, by adding a subdivision; 41B.025, by adding
a subdivision; 41B.047, subdivision 3; 116J.396, subdivision 2; 223.17, subdivisions
4, 6; 346.155, subdivision 7; Minnesota Statutes 2021 Supplement, section 41A.21,
subdivision 2; Laws 2021, First Special Session chapter 3, article 1, sections 2; 4;
Laws 2021, First Special Session chapter 10, article 1, section 7; proposing coding
for new law in Minnesota Statutes, chapters 17; 116J.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2021, First Special Session chapter 3, article 1, section 2, is amended to
read:

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1. Total Appropriation

$

deleted text begin 59,303,000 deleted text end new text begin 60,803,000 new text end

$

deleted text begin 59,410,000 deleted text end new text begin 65,410,000 new text end

Appropriations by Fund
	2022	2023
General	deleted text begin 58,904,000 deleted text end new text begin 60,404,000 new text end	deleted text begin 59,011,000 deleted text end new text begin 65,011,000 new text end
Remediation	399,000	399,000

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

Subd. 2. Protection Services

Appropriations by Fund
	2022	2023
General	19,384,000	deleted text begin 19,610,000 deleted text end new text begin 20,110,000 new text end
Remediation	399,000	399,000

(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.

(b) $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 2021. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock. If
the commissioner receives federal dollars to
pay claims for destroyed or crippled livestock,
an equivalent amount of this appropriation
may be used to reimburse nonlethal prevention
methods performed by federal wildlife services
staff.

(c) $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 $10,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims, as well as for costs associated with
training for approved agents. The
commissioner may use up to $20,000 of the
appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage.

If the commissioner determines that claims
made under Minnesota Statutes, section 3.737
or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.

(d) $225,000 the first year and $225,000 the
second year are for additional funding for the
noxious weed and invasive plant program.

(e) $50,000 the first year is for additional
funding for the industrial hemp program for
IT development. This is a onetime
appropriation and is available until June 30,
2023.

(f) $110,000 the first year and $110,000 the
second year are for additional meat and poultry
inspection services. The commissioner is
encouraged to seek inspection waivers,
matching federal dollars, and offer more online
inspections for the purposes under this
paragraph.

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

(h) $274,000 the first year and $550,000 the
second year are to maintain the current level
of service delivery.

new text begin (i) $630,000 is added to the base of fiscal year
2024 and each year thereafter for grants to the
Board of Regents of the University of
Minnesota to fund the Forever Green Initiative
and protect the state's natural resources while
increasing the efficiency, profitability, and
productivity of Minnesota farmers by
incorporating perennial and winter-annual
crops into existing agricultural practices.
Eligible uses include but are not limited to (1)
equipment and physical infrastructure to
support breeding and agronomic activities
necessary to develop perennial and
winter-annual crops, and (2) to develop
enterprises, supply chains, and markets for
continuous living cover crops and cropping
systems in the early stage of commercial
development, Kernza perennial grain, winter
camelina, hybrid hazelnuts, and elderberry.
new text end

new text begin (j) $500,000 the second year is for the soil
health financial assistance pilot program. This
is a onetime appropriation and is available
until June 30, 2024.
new text end

Subd. 3. Agricultural Marketing and Development

4,200,000

deleted text begin 4,205,000 deleted text end new text begin 4,215,000 new text end

(a) $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, 2023, for Minnesota grown grants in this
paragraph are available until June 30, 2025.

(b) $50,000 the first year is to expand
international marketing opportunities for
farmers and value-added processors, including
in-market representation in Taiwan. This is a
onetime appropriation and is available until
June 30, 2023.

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

(d) $50,000 the first year and $50,000 the
second year are for additional funding for
mental health outreach and support to farmers
and others in the agricultural community,
including a 24-hour hotline, stigma reduction,
and educational offerings. These are onetime
appropriations.

(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.

(f) $100,000 the first year and $100,000 the
second year are for the farm safety grant and
outreach programs under Minnesota Statutes,
section 17.1195. 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 in the second year. new text end These
are onetime appropriations.

(g) $54,000 the first year and $109,000 the
second year are to maintain the current level
of service delivery.

new text begin (h) $10,000 the second year is to provide an
interim report on the Statewide Cooperative
Partnership for Local and Regional Markets,
including recommendations for strengthening
local and regional food systems. No later than
February 1, 2023, the commissioner must
submit the report to the legislative committees
with jurisdiction over agriculture policy and
finance. This is a onetime appropriation.
new text end

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

25,343,000

deleted text begin 25,357,000 deleted text end new text begin 27,257,000 new text end

(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, salmonella, and other turkey-related
diseases. By January 15, 2023, entities
receiving grants for potato breeding and wild
rice breeding are requested to report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and higher education regarding the
use of the grant money and to provide an
update on the status of research and related
accomplishments.

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.

(b) $16,028,000 the first year and deleted text begin $16,028,000 deleted text end new text begin
$17,928,000 new text end the second year are for the
agricultural growth, research, and innovation
program under 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 with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$800,000 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, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $600,000
each year for urban youth agricultural
education or urban agriculture community
development of which $10,000 each year is
for transfer to the emerging farmer account
under Minnesota Statutes, section 17.055,
subdivision 1a; providing funding not to
exceed $450,000 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 and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program
under 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;

(2) $4,500,000 the first year and deleted text begin $4,500,000 deleted text end new text begin
$5,750,000 new text end the second year are for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2023, and the second
year appropriation is available until June 30,
2024. If this appropriation exceeds the total
amount for which all producers are eligible in
a fiscal year, the balance of the appropriation
is available for other purposes under this
paragraph new text begin . The base appropriation under this
clause is $5,750,000 in fiscal year 2024 and
thereafter new text end ;

(3) $3,000,000 the first year and $3,000,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which it contracts, must submit a report on the
biofuels infrastructure financial assistance
program by January 15 of each year to the
chairs and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture policy and
finance. The annual report must include but
not be limited to a summary of the following
metrics: (i) the number and types of projects
financed; (ii) the amount of dollars leveraged
or matched per project; (iii) the geographic
distribution of financed projects; (iv) any
market expansion associated with upgraded
infrastructure; (v) the demographics of the
areas served; (vi) the costs of the program;
and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $750,000 the first year and deleted text begin $750,000 deleted text end new text begin
$1,400,000 new text end the second year are for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2024, and
may be used for other purposes under this
paragraph. deleted text begin The appropriations under this
clause are onetime deleted text end new text begin The base appropriation
under this clause is $250,000 in fiscal year
2024 and thereafter new text end ; and

(5) $1,400,000 the first year and $1,400,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118. Any unencumbered balance at the end
of the second year does not cancel until June
30, 2024, and may be used for other purposes
under this paragraph. The appropriations under
this clause are onetime.

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, 2023, for agricultural
growth, research, and innovation grants are
available until June 30, 2026.

The base amount for the agricultural growth,
research, and innovation program is
deleted text begin $16,053,000 deleted text end new text begin $17,553,000 new text end in fiscal year 2024
and deleted text begin $16,053,000 deleted text end new text begin $17,553,000 new text end in fiscal year
2025, and includes funding for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.

(c) $15,000 the first year and $29,000 the
second year are to maintain the current level
of service delivery.

Subd. 5. Administration and Financial Assistance

deleted text begin 9,977,000 deleted text end new text begin 11,477,000 new text end

deleted text begin 9,839,000 deleted text end new text begin 13,429,000 new text end

(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
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.

(b) $387,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $100,000 the first year and
$50,000 the second year are for a pilot
program creating farmland access teams to
provide technical assistance to potential
beginning farmers. The farmland access teams
must assist existing farmers and beginning
farmers on transitioning farm ownership and
operation. Services provided by teams may
include but are not limited to providing
mediation assistance, designing contracts,
financial planning, tax preparation, estate
planning, and housing assistance. Of this
amount for farm transitions, up to $50,000 the
first year may be used to upgrade the
Minnesota FarmLink web application that
connects farmers looking for land with farmers
looking to transition their land.

(c) $47,000 the first year and $47,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. These are onetime appropriations.

(d) $238,000 the first year and deleted text begin $238,000 deleted text end new text begin
$260,000 new text end the second year are for deleted text begin 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. deleted text end new text begin a pass-through
grant to Region Five Development
Commission to provide, in collaboration with
Farm Business Management, statewide mental
health counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 6.5
percent of the grant awarded under this
paragraph for administration. The base for this
appropriation is $260,000 in fiscal year 2024
and later.
new text end

(e) $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:

(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;

(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 for administrative and
transportation expenses; and

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

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

(f) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

(g) $1,437,000 the first year and $1,437,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117. The base for appropriations under this
paragraph in fiscal year 2024 and thereafter
is $1,425,000. The commissioner must
examine how the department could use up to
one-third of the amount transferred to the
agricultural and environmental revolving loan
account under this paragraph to award grants
to rural landowners to replace septic systems
that inadequately protect groundwater. No
later than February 1, 2022, the commissioner
must report to the legislative committees with
jurisdiction over agriculture finance and
environment finance on the results of the
examination required under this paragraph.
The commissioner's report may include other
funding sources for septic system replacement
that are available to rural landowners.

(h) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development. These are
onetime appropriations.

(i) $150,000 the first year is to provide grants
to Central Lakes College for the purposes of
designing, building, and offering credentials
in the area of meat cutting and butchery that
align with industry needs as advised by local
industry advisory councils. 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. The commissioner may only
award a grant under this paragraph if the grant
is matched by a like amount from another
funding source. The commissioner must seek
matching dollars from Minnesota State
Colleges and Universities or other entities.
The appropriation is onetime and is available
until June 30, 2024. Any money remaining on
June 30, 2024, must be transferred to the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12, and is available until June 30, 2025.
Grants may be used for costs including but
not limited to:

(1) facility renovation to accommodate meat
cutting;

(2) curriculum design and approval from the
Higher Learning Commission;

(3) program operational start-up costs;

(4) equipment required for a meat cutting
program; and

(5) meat handling start-up costs in regard to
meat access and market channel building.

No later than January 15, 2023, Central Lakes
College must submit a report outlining the use
of grant money to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture and higher education.

(j) $2,000 the first year is for grants to the
Minnesota State Poultry Association. This is
a onetime appropriation. 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.

(k) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
State Horticultural Society. These are onetime
appropriations.

(l) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. These are
onetime appropriations.

(m) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.

(n) $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.

(o) $75,000 the first year and $75,000 the
second year are for grants to Greater Mankato
Growth, Inc., for assistance to
agriculture-related businesses to promote jobs,
innovation, and synergy development. These
are onetime appropriations.

(p) $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research. The Minnesota Turf Seed Council
may subcontract with a qualified third party
for some or all of the basic or applied research.
No later than January 15, 2023, the Minnesota
Turf Seed Council must submit a report
outlining the use of the grant money and
related accomplishments to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture.
These are onetime appropriations. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(q) $150,000 the first year and $150,000 the
second year are to establish an emerging
farmer office and hire a full-time emerging
farmer outreach coordinator. The emerging
farmer outreach coordinator must engage and
support emerging farmers regarding resources
and opportunities available throughout the
Department of Agriculture and the state. For
purposes of this paragraph, "emerging farmer"
has the meaning provided in Minnesota
Statutes, section 17.055, subdivision 1. Of the
amount appropriated each year, $25,000 is for
translation services for farmers and cottage
food producers.

(r) $222,000 the first year and $286,000 the
second year are to maintain the current level
of service delivery.

new text begin (s) $827,000 the second year is to award and
administer grants to:
new text end

new text begin (1) organizations to provide technical and
culturally appropriate services to emerging
farmers and related businesses;
new text end

new text begin (2) organizations to help emerging farmers
pay for up to 65 percent of premium expenses
each year up to two years under the federal
micro farm insurance program; and
new text end

new text begin (3) The Good Acre for the Local Emergency
Assistance Farmer Fund (LEAFF) program to
compensate emerging farmers for crops
donated to hunger relief organizations in
Minnesota.
new text end

new text begin This is a onetime appropriation and is
available until June 30, 2024.
new text end

new text begin (t) $750,000 the second year is to support the
IT modernization efforts, including laying the
technology foundations needed for improving
customer interactions with the department for
licensing and payments. The base for this
appropriation is $584,000 in fiscal year 2024
and $0 in fiscal year 2025.
new text end

new text begin (u) $1,500,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041. This
is a onetime transfer. This transfer is in
addition to the appropriations made in Laws
2022, chapter 47, section 2.
new text end

new text begin Notwithstanding Minnesota Statutes, section
17.041, the commissioner may use the amount
to be transferred for the purposes identified
under Laws 2022, chapter 47, section 2,
paragraph (b). This paragraph expires on
December 31, 2022.
new text end

new text begin (v) $250,000 in the second year is for a grant
to the Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with initial reports completed by January 3,
2023, and January 3, 2024, and a final report
by September 1, 2025. The reports must
include a list of equipment purchased,
including the cost of each item. The base for
this appropriation is $250,000 in fiscal year
2024 and $0 in fiscal year 2025.
new text end

new text begin (w) $141,000 the second year is for additional
funding to administer the beginning farmer
tax credit. The base for this appropriation is
$56,000 in fiscal year 2024 and later.
new text end

new text begin (x) $750,000 the second year is for a grant to
the Ag Innovation Campus to continue
construction of a soybean processing and
research facility. This is a onetime
appropriation.
new text end

new text begin The commissioner shall submit a report on the
utilization of the grants to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over agriculture policy and finance by
February 1, 2024.
new text end

new text begin (y) $50,000 is added to the base for fiscal year
2024 and $0 for fiscal year 2025 to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2025.
new text end

new text begin (z) $500,000 the second year is to award and
administer down payment assistance grants
under Minnesota Statutes, section 17.133. The
base for this appropriation is $750,000 in fiscal
year 2024 and thereafter.
new text end

new text begin (aa) $350,000 the second year is to provide
grants to secondary career and technical
education programs for the purpose of offering
instruction in meat cutting and butchery. By
January 15, 2023, the commissioner must
report to the chairs and ranking minority
members of the committees with jurisdiction
over agriculture finance and education finance
by listing the grants made under this paragraph
by county and noting the number and amount
of grant requests not fulfilled. The report may
include additional information as determined
by the commissioner, including but not limited
to information regarding the outcomes
produced by these grants. If additional grants
are awarded under this paragraph that were
not covered in the report due by January 15,
2023, the commissioner must submit an
additional report to the chairs and ranking
minority members of the committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2023.
This is a onetime appropriation. Grants may
be used for costs, including but not limited to:
new text end

new text begin (1) equipment required for a meat cutting
program;
new text end

new text begin (2) facility renovation to accommodate meat
cutting; and
new text end

new text begin (3) training faculty to teach the fundamentals
of meat processing.
new text end

new text begin A grant recipient may be awarded a grant of
up to $70,000 and may use up to ten percent
of the grant for faculty training.
new text end

new text begin Priority may be given to applicants who are
coordinating with meat cutting and butchery
programs at Minnesota State Colleges and
Universities system and local industry
partners.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 2021, First Special Session chapter 3, article 1, section 4, is amended to read:

Sec. 4. AGRICULTURAL UTILIZATION RESEARCH INSTITUTE

$

4,543,000

$

4,043,000

(a) $150,000 the first year and $150,000 the
second year are for a meat scientist.

(b) $500,000 the first year is for grants to
organizations to acquire, host, and operate a
mobile slaughter unit. The mobile unit must
coordinate with Minnesota state two-year
colleges that have meat cutting programs to
accommodate training as it relates to animal
slaughter. The mobile unit may coordinate
with livestock producers who desire to provide
value-added meat products by utilizing the
mobile slaughter unit. The mobile unit may
be used for research, training outside of the
two-year colleges, and other activities that
align with industry needs. The Agricultural
Utilization Research Institute may only award
a grant under this paragraph if the grant
amount is matched by a like amount from
another funding source. The Agricultural
Utilization Research Institute must seek
matching dollars from Minnesota State
Colleges and Universities or other entities for
purposes of this paragraph. The appropriation
under this paragraph is onetime and is
available until June 30, 2024. Any money
remaining on June 30, 2024, must be
transferred to the commissioner of agriculture
for the agricultural growth, research, and
innovation program under Minnesota Statutes,
section 41A.12, and is available until June 30,
2025. By January 15, 2023, the institute must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture regarding the
status of the project, including the status of
the use of any state or matching dollars to
complete the project.

new text begin (c) $300,000 is added to the base in fiscal year
2024 and $0 in fiscal year 2025 for equipment
upgrades, equipment replacement, installation
expenses, and laboratory infrastructure at the
Agricultural Utilization Research Institute's
laboratories in Crookston, Marshall, and
Waseca.
new text end

new text begin (d) $200,000 is added to the base for fiscal
year 2024 and thereafter to maintain the
current level of service delivery.
new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2020, section 17.041, subdivision 1, is amended to read:

Subdivision 1.

Establishment; appropriation.

An agricultural emergency account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner for emergency new text begin preparedness and new text end response activities for agricultural
emergencies affecting producers of livestock, poultry, crops, or other agricultural products.
Eligible new text begin emergency response new text end uses include agency costs directly attributed to responding to
agricultural emergencies and purchasing necessary equipment and reimbursing costs incurred
by local units of government that are not eligible for reimbursement from other sources. new text begin
Eligible emergency preparedness uses are limited to training and the procurement of
equipment and supplies.
new text end

Sec. 2.

new text begin [17.1016] COOPERATIVE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "agricultural commodity" and "agricultural product processing facility" have the
meanings given in section 17.101, subdivision 5; and
new text end

new text begin (2) "agricultural service" means an action made under the direction of a farmer that
provides value to another entity. Agricultural service includes grazing to manage vegetation.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner may establish and implement a grant
program to help farmers finance new cooperatives that organize for purposes of operating
an agricultural product processing facility or marketing an agricultural product or agricultural
service.
new text end

new text begin (b) To be eligible for this program, a grantee must:
new text end

new text begin (1) be a cooperative organized under chapter 308A;
new text end

new text begin (2) certify that all control and equity in the cooperative is from farmers, family farm
partnerships, family farm limited liability companies, or family farm corporations as defined
in section 500.24, subdivision 2, who are actively engaged in agricultural commodity
production;
new text end

new text begin (3) be operated primarily to process agricultural commodities or market agricultural
products or services produced in Minnesota; and
new text end

new text begin (4) receive agricultural commodities produced primarily by shareholders or members
of the cooperative.
new text end

new text begin (c) The commissioner may receive applications and make grants up to $50,000 to eligible
grantees for feasibility, marketing analysis, assistance with organizational development,
financing and managing new cooperatives, product development, development of business
and marketing plans, and predesign of facilities, including site analysis, the development
of bid specifications, preliminary blueprints and schematics, and the completion of purchase
agreements and other necessary legal documents.
new text end

new text begin (d) Grants must be matched dollar-for-dollar with other money or in-kind contributions.
new text end

Sec. 3.

Minnesota Statutes 2020, section 17.117, subdivision 9, is amended to read:

Subd. 9.

Allocation rescission.

(a) Continued availability of allocations granted to a
local government unit is contingent upon the commissioner's approval of the local
government unit's annual report. The commissioner shall review this annual report to ensure
that the past and future uses of the funds are consistent with the comprehensive water
management plan, other local planning documents, the requirements of the funding source,
and compliance to program requirements. If the commissioner concludes the past or intended
uses of the money are not consistent with these requirements, the commissioner shall rescind
all or part of the allocation awarded to a local government unit.

(b) The commissioner may rescind funds allocated to the local government unit that are
not designated to committed projects or disbursed within one year from the date of the
allocation agreement.

(c) deleted text begin An additional year to use the undisbursed portion of an allocation may be granted
by the commissioner under extenuating circumstances deleted text end new text begin The commissioner may rescind
uncommitted allocations new text end .

Sec. 4.

Minnesota Statutes 2020, section 17.117, subdivision 9a, is amended to read:

Subd. 9a.

Authority and responsibilities of local government units.

(a) A local
government unit that enters into an allocation agreement with the commissioner:

(1) is responsible for the local administration and implementation of the program in
accordance with this section;

(2) may submit applications for allocations to the commissioner;

(3) shall identify, develop, determine eligibility, define and approve projects, designate
maximum loan amounts for projects, and certify completion of projects implemented under
this program. In areas where no local government unit has applied for funds under this
program, the commissioner may appoint a local government unit to review and certify
projects or the commissioner may assume the authority and responsibility of the local
government unit;

(4) shall certify as eligible only projects that are within its geographic jurisdiction or
within the geographic area identified in its local comprehensive water management plans
or other local planning documents;

(5) may require withholding by the local lender of all or a portion of the loan to the
borrower until satisfactory completion of all required components of a certified project;

deleted text begin (6) must identify which account is used to finance an approved project if the local
government unit has allocations from multiple accounts in the agricultural and environmental
revolving accounts;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end shall report to the commissioner annually the past and intended uses of allocations
awarded; and

deleted text begin (8) deleted text end new text begin (7) new text end may request additional funds in excess of their allocation when funds are available
in the agricultural and environmental revolving accounts, as long as all other allocation
awards to the local government unit have been used or committed.

(b) If a local government unit withdraws from participation in this program, the local
government unit, or the commissioner in accordance with the priorities established under
subdivision 6a, may designate another local government unit that is eligible under subdivision
6 as the new local government unit responsible for local administration of this program.
This designated local government unit may accept responsibility and administration of
allocations awarded to the former responsible local government unit.

Sec. 5.

Minnesota Statutes 2020, section 17.117, subdivision 10, is amended to read:

Subd. 10.

Authority and responsibilities of local lenders.

(a) Local lenders may enter
into lender agreements with the commissioner.

(b) Local lenders may enter into loan agreements with borrowers to finance eligible
projects under this section.

deleted text begin (c) The local lender shall notify the local government unit of the loan amount issued to
the borrower after the closing of each loan.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end Local lenders with local revolving loan accounts created before July 1, 2001,
may continue to retain and use those accounts in accordance with their lending agreements
for the full term of those agreements.

deleted text begin (e) deleted text end new text begin (d) new text end Local lenders, including local government units designating themselves as the
local lender, may enter into participation agreements with other lenders.

deleted text begin (f) deleted text end new text begin (e) new text end Local lenders may enter into contracts with other lenders for the limited purposes
of loan review, processing and servicing, or to enter into loan agreements with borrowers
to finance projects under this section. Other lenders entering into contracts with local lenders
under this section must meet the definition of local lender in subdivision 4, must comply
with all provisions of the lender agreement and this section, and must guarantee repayment
of the loan funds to the local lender.

deleted text begin (g) deleted text end new text begin (f) new text end When required by the local government unit, a local lender must withhold all or
a portion of the loan disbursement for a project until notified by the local government unit
that the project has been satisfactorily completed.

deleted text begin (h) deleted text end new text begin (g) new text end The local lender is responsible for repaying all funds provided by the commissioner
to the local lender.

deleted text begin (i) deleted text end new text begin (h) new text end The local lender is responsible for collecting repayments from borrowers. If a
borrower defaults on a loan issued by the local lender, it is the responsibility of the local
lender to obtain repayment from the borrower. Default on the part of borrowers shall have
no effect on the local lender's responsibility to repay its obligations to the commissioner
whether or not the local lender fully recovers defaulted amounts from borrowers.

deleted text begin (j) deleted text end new text begin (i) new text end The local lender shall provide sufficient collateral or protection to the commissioner
for the funds provided to the local lender. The commissioner must approve the collateral
or protection provided.

Sec. 6.

Minnesota Statutes 2020, section 17.117, subdivision 11, is amended to read:

Subd. 11.

Loans issued to borrower.

(a) Local lenders may issue loans only for projects
that are approved and certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other local planning documents,
are in compliance with accepted practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or other applicable guidelines.

(b) The local lender may use any additional criteria considered necessary to determine
the eligibility of borrowers for loans.

(c) Local lenders shall set the terms and conditions of loans to borrowers, except that deleted text begin :
deleted text end

deleted text begin (1) no loan to a borrower may exceed $200,000; and
deleted text end

deleted text begin (2) deleted text end no borrower shall, at any time, have deleted text begin multiple deleted text end loans from this program with a total
outstanding loan balance of more than $200,000.

(d) The maximum term length for projects in this paragraph is ten years.

(e) Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of the local lender;

(2) be in accordance with published fee schedules issued by the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of loans offered by the local
lender.

(f) The interest rate assessed to an outstanding loan balance by the local lender must not
exceed three percent per year.

Sec. 7.

Minnesota Statutes 2020, section 17.117, subdivision 11a, is amended to read:

Subd. 11a.

Eligible projects.

(a) All projects that remediate or mitigate adverse
environmental impacts are eligible if the project is eligible under an allocation agreement.

(b) A manure management project is eligible if the project remediates or mitigates
impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules,
chapter 7020, and otherwise meets the requirements of this section.

(c) A drinking water project is eligible if the project:

(1) remediates deleted text begin the deleted text end new text begin or mitigates the inadequate flow, new text end adverse environmental impacts or
presence of contaminants in deleted text begin private well deleted text end new text begin privately owned new text end water new text begin supplies that are used for
drinking water by people or livestock, privately owned water service lines, or privately
owned plumbing and fixtures new text end ;

(2) implements best management practices new text begin that are intended new text end to achieve drinking water
standards new text begin or adequate flow new text end ; and

(3) otherwise meets the requirements of this section.

Sec. 8.

Minnesota Statutes 2020, section 17.118, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The commissioner may award a livestock investment
grant to a person who raises livestock in this state equal to ten percent of the first $500,000
of qualifying expenditures, provided the person makes qualifying expenditures of at least
$4,000. The commissioner may award multiple livestock investment grants to a person over
the life of the program deleted text begin as long as the cumulative amount does not exceed $50,000 deleted text end new text begin and shall
give preference to applicants who have not previously received a grant under this section new text end .

Sec. 9.

Minnesota Statutes 2020, section 17.118, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

deleted text begin (a) deleted text end To be eligible for a livestock investment grant, a person must:

(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
subdivision 2, that is eligible to own farmland and operate a farm in this state under section
500.24;

(2) be the principal operator of the farm;

(3) hold a feedlot registration, if required; and

(4) apply to the commissioner on forms prescribed by the commissioner including a
statement of the qualifying expenditures made during the qualifying period along with any
proof or other documentation the commissioner may require.

deleted text begin (b) The $50,000 maximum grant applies at the entity level for partnerships, S
corporations, C corporations, trusts, and estates as well as at the individual level. In the case
of married individuals, the grant is limited to $50,000 for a married couple.
deleted text end

Sec. 10.

new text begin [17.133] FARM DOWN PAYMENT ASSISTANCE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Eligible farmer" means an individual who at the time that the grant is awarded:
new text end

new text begin (1) is a resident of Minnesota who intends to acquire farmland located within the state
and provide the majority of the day-to-day physical labor and management of the farm;
new text end

new text begin (2) grosses no more than $250,000 per year from the sale of farm products; and
new text end

new text begin (3) has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland.
new text end

new text begin (c) "Farm down payment" means an initial, partial payment required by a lender or seller
to purchase farmland.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The commissioner must award farm down payment assistance grants
of up to $15,000 per eligible farmer. An eligible farmer must match the grant with at least
an equivalent amount of other funding. An eligible farmer must commit to own and farm
the land purchased with assistance provided under this section for at least five years. For
each year that a grant recipient does not own and farm the land during the five-year period,
the grant recipient must pay a penalty to the commissioner equal to 20 percent of the grant
amount.
new text end

new text begin Subd. 3. new text end

new text begin Report to legislature. new text end

new text begin No later than December 1, 2023, and annually thereafter,
the commissioner must provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over agriculture and rural development, in
compliance with sections 3.195 and 3.197, on the farm down payment assistance grants
under this section. The report must include:
new text end

new text begin (1) background information on beginning farmers in Minnesota and any other information
that the commissioner and authority find relevant to evaluating the effect of the grants on
increasing opportunities for and the number of beginning farmers;
new text end

new text begin (2) the number and amount of grants;
new text end

new text begin (3) the geographic distribution of grants by county;
new text end

new text begin (4) the number of grant recipients who are emerging farmers;
new text end

new text begin (5) the number of farmers who cease to own land and are subject to payment of a penalty,
along with the reasons for the land ownership cessation; and
new text end

new text begin (6) the number and amount of grant applications that exceeded the allocation available
in each year.
new text end

Sec. 11.

Minnesota Statutes 2020, section 18B.051, is amended to read:

18B.051 POLLINATOR deleted text begin HABITAT AND deleted text end RESEARCH ACCOUNT.

Subdivision 1.

Account established.

A pollinator deleted text begin habitat and deleted text end research account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the Board of Regents of the University of Minnesota for pollinator research and outreach
including, but not limited to, science-based best practices and the identification and
establishment of habitat beneficial to pollinators.

Subd. 2.

Expiration.

This section expires July 1, deleted text begin 2022 deleted text end new text begin 2025 new text end .

Sec. 12.

Minnesota Statutes 2020, section 18E.03, subdivision 3, is amended to read:

Subd. 3.

Determination of response and reimbursement fee.

(a) The commissioner
shall determine the amount of the response and reimbursement fee under subdivision 4 after
a public hearing based on:

(1) the amount needed to maintain an unencumbered balance in the account of deleted text begin $1,000,000 deleted text end new text begin
$2,000,000 new text end ;

(2) the amount estimated to be needed for responses to incidents as provided in
subdivision 2, clauses (1) and (2); and

(3) the amount needed for payment and reimbursement under section 18E.04.

(b) The commissioner shall determine the response and reimbursement fee so that the
total balance in the account does not exceed deleted text begin $5,000,000 deleted text end new text begin $6,500,000 new text end .

(c) Money from the response and reimbursement fee shall be deposited in the treasury
and credited to the agricultural chemical response and reimbursement account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 13.

Minnesota Statutes 2020, section 18E.04, subdivision 3, is amended to read:

Subd. 3.

Partial reimbursement.

(a) If the unencumbered balance of the account drops
below deleted text begin $2,000,000 deleted text end new text begin $3,000,000 new text end , the board may only pay or reimburse an eligible person up
to $100,000 within the same fiscal year.

(b) If the board determines that an incident was caused by a violation of chapter 18B,
18C, or 18D, the board may reimburse or pay a portion of the corrective action costs of the
eligible person based on the culpability of the eligible person and the percentage of the costs
not attributable to the violation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 14.

Minnesota Statutes 2020, section 18E.04, subdivision 4, is amended to read:

Subd. 4.

Reimbursement payments.

(a) The board shall pay a person that is eligible
for reimbursement or payment under subdivisions 1, 2, and 3 from the agricultural chemical
response and reimbursement account for 80 percent of the total reasonable and necessary
corrective action costs greater than $1,000 and less than or equal to deleted text begin $350,000 deleted text end new text begin $550,000 new text end .

(b) A reimbursement or payment may not be made until the board has determined that
the costs are reasonable and are for a reimbursement of the costs that were actually incurred.

(c) The board may make periodic payments or reimbursements as corrective action costs
are incurred upon receipt of invoices for the corrective action costs.

(d) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make payments and reimbursements directed by the
board under this subdivision.

(e) The board may not make reimbursement greater than the maximum allowed under
paragraph (a) for all incidents on a single site which:

(1) were not reported at the time of release but were discovered and reported after July
1, 1989; and

(2) may have occurred prior to July 1, 1989, as determined by the commissioner.

(f) The board may only reimburse an eligible person for separate incidents within a
single site if the commissioner determines that each incident is completely separate and
distinct in respect of location within the single site or time of occurrence.

(g) Except for an emergency incident, the board may not reimburse or pay for more than
60 percent of the corrective action costs of an eligible person or for an incident within five
years of a previous incident at a single site resulting from a site recontamination.

(h) The deduction of $1,000 and 20 percent from the deleted text begin $350,000 deleted text end new text begin $550,000 new text end remuneration
may be waived by the board if the incident took place on or after August 18, 2007, and was
caused by flooding associated with Presidential Declaration of Major Disaster DR-1717.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 15.

Minnesota Statutes 2020, section 28A.21, subdivision 2, is amended to read:

Subd. 2.

Membership.

(a) The Food Safety and Defense Task Force consists of:

(1) the commissioner of agriculture or the commissioner's designee;

(2) the commissioner of health or the commissioner's designee;

(3) a representative of the United States Food and Drug Administration;

(4) a representative of the United States Department of Agriculture;

(5) a representative of the Agricultural Utilization Research Institute;

(6) one member of the Minnesota Grocers Association;

(7) one member from the University of Minnesota knowledgeable in food and food
safety issues; and

(8) deleted text begin nine deleted text end new text begin ten new text end members appointed by the governor who are interested in food and food
safety, of whom:

(i) two persons are health or food professionals;

(ii) one person represents a statewide general farm organization;

(iii) one person represents a local food inspection agency;

(iv) one person represents a food-oriented consumer group; deleted text begin and
deleted text end

(v) one person represents a Minnesota-based manufacturer of microbial detection
equipment and remediation products deleted text begin . deleted text end new text begin ; and
new text end

new text begin (vi) one person is knowledgeable in cybersecurity.
new text end

(b) Members shall serve without compensation. Members appointed by the governor
shall serve four-year terms.

Sec. 16.

Minnesota Statutes 2020, section 35.05, is amended to read:

35.05 AUTHORITY OF STATE BOARD.

(a) The state board may quarantine or kill any domestic animal infected with, or which
has been exposed to, a contagious or infectious dangerous disease if it is necessary to protect
the health of the domestic animals of the state.

(b) The board may regulate or prohibit the arrival in and departure from the state of
infected or exposed animals and, in case of violation of any rule or prohibition, may detain
any animal at its owner's expense. The board may regulate or prohibit the importation of
domestic animals which, in its opinion, may injure the health of Minnesota livestock.

(c) When the governor declares an emergency under section 35.0661, the board, through
its executive director, may assume control of such resources within the University of
Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the disease
outbreak. The director of the laboratory and other laboratory personnel must cooperate fully
in performing necessary functions related to the outbreak or threatened outbreak.

(d) The board may test or require tests of any bovine or cervidae in the state when the
board deems it necessary to achieve or maintain bovine tuberculosis accredited free state
or zone status under the regulations and laws administered by the United States Department
of Agriculture.

new text begin (e) Notwithstanding section 3.3005, subdivision 2, the board may apply for, receive,
and disburse federal money made available to the state for animal disease response. All
federal money received by the board for this purpose must be deposited in the state treasury
and, except as provided in section 35.156, subdivision 2, is appropriated to the board for
the purposes for which it was received. By January 15 each year, the board must report to
the senate Committee on Finance, the house of representatives Committee on Ways and
Means, and the legislative committees with jurisdiction over the board's operating budget
regarding the amount of federal money received and spent in the previous fiscal year under
this paragraph and the board's use of these funds.
new text end

Sec. 17.

Minnesota Statutes 2020, section 40A.18, subdivision 2, is amended to read:

Subd. 2.

Allowed commercial and industrial operations.

(a) Commercial and industrial
operations are not allowed on land within an agricultural preserve except:

(1) small on-farm commercial or industrial operations normally associated with and
important to farming in the agricultural preserve area;

(2) storage use of existing farm buildings that does not disrupt the integrity of the
agricultural preserve;

(3) small commercial use of existing farm buildings for trades not disruptive to the
integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
and similar activities that a farm operator might conduct; deleted text begin and
deleted text end

(4) wireless communication installments and related equipment and structure capable
of providing technology potentially beneficial to farming activities. A property owner who
installs wireless communication equipment does not violate a covenant made prior to January
1, 2018, under section 40A.10, subdivision 1 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) solar energy generating systems with an output capacity of one megawatt or less.
new text end

(b) For purposes of paragraph (a), clauses (2) and (3), "existing" means existing on
August 1, 1989.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2020, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility new text begin for participants on or before April 1, 2023 new text end .

(a) A facility
eligible for payment under this section must source from Minnesota at least 80 percent of
the biomass used to produce an advanced biofuel, except that, if a facility is sited 50 miles
or less from the state border, biomass used to produce an advanced biofuel may be sourced
from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
within a 100-mile radius of the facility or from within Minnesota. The facility must be
located in Minnesota, must begin production at a specific location deleted text begin by June 30, 2025 deleted text end new text begin on or
before April 1, 2023 new text end , and must not begin operating above 23,750 MMbtu of quarterly
advanced biofuel production before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding advanced biofuel production capacity, or retrofitting
existing capacity, as well as new companies and facilities. Production of conventional corn
ethanol and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
produce at least 1,500 MMbtu of advanced biofuel quarterly.

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

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

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

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

(f) Biobutanol is eligible under this section.

Sec. 19.

Minnesota Statutes 2020, section 41A.16, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Eligibility for participants after April 1, 2023. new text end

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

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

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

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

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

new text begin (f) Biobutanol is eligible under this section.
new text end

Sec. 20.

Minnesota Statutes 2020, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility new text begin for participants on or before April 1, 2023 new text end .

(a) A facility
eligible for payment under this section must source from Minnesota at least 80 percent of
the biomass used to produce a renewable chemical, except that, if a facility is sited 50 miles
or less from the state border, biomass used to produce a renewable chemical may be sourced
from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
within a 100-mile radius of the facility or from within Minnesota. The facility must be
located in Minnesota, must begin production at a specific location deleted text begin by June 30, 2025 deleted text end new text begin on or
before April 1, 2023 new text end , and must not begin production of 250,000 pounds of chemicals quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 250,000 pounds of
renewable chemicals quarterly. Renewable chemicals produced through processes that are
fully commercial before January 1, 2000, are not eligible.

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

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

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

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

Sec. 21.

Minnesota Statutes 2020, section 41A.17, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Eligibility for participants after April 1, 2023. new text end

new text begin (a) A facility eligible for
payment under this program must source at least 80 percent biobased content from Minnesota.
For the purposes of this subdivision, "biobased content" means a chemical, polymer,
monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
biobased percentage of at least 51 percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866. If a facility is sited
50 miles or less from the state border, biobased content must be sourced from within a
100-mile radius. Biobased content must be from agricultural or forestry sources or from
solid waste. The facility must be located in Minnesota, must begin production at a specific
location after April 1, 2023, and before June 30, 2025, and must not begin production of
750,000 pounds or more of chemicals quarterly before January 1, 2015. Eligible facilities
include existing companies and facilities that are adding production capacity, or retrofitting
existing capacity, as well as new companies and facilities. Eligible renewable chemical
facilities must produce at least 750,000 pounds of renewable chemicals quarterly. Renewable
chemicals produced through processes that are fully commercial before January 1, 2000,
are not eligible.
new text end

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

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

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

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

Sec. 22.

Minnesota Statutes 2020, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility new text begin for participants on or before April 1, 2023 new text end .

(a) A facility
eligible for payment under this section must source from Minnesota at least 80 percent of
the biomass used for biomass thermal production, except that, if a facility is sited 50 miles
or less from the state border, biomass used for biomass thermal production may be sourced
from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
within a 100-mile radius of the facility, or from within Minnesota. Biomass must be from
agricultural or forestry sources. The facility must be located in Minnesota, must have begun
production at a specific location deleted text begin by June 30, 2025 deleted text end new text begin on or before April 1, 2023 new text end , and must not
begin before July 1, 2015. Eligible facilities include existing companies and facilities that
are adding production capacity, or retrofitting existing capacity, as well as new companies
and facilities. Eligible biomass thermal production facilities must produce at least 250
MMbtu of biomass thermal quarterly.

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

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

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

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

Sec. 23.

Minnesota Statutes 2020, section 41A.18, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Eligibility for participants after April 1, 2023. new text end

new text begin (a) A facility eligible for
payment under this section must source at least 80 percent raw materials from Minnesota.
If a facility is sited 50 miles or less from the state border, raw materials should be sourced
from within a 100-mile radius. Raw materials must be from agricultural or forestry sources.
The facility must be located in Minnesota, must have begun production at a specific location
after April 1, 2023, and before June 30, 2025, and must not begin before July 1, 2015.
Eligible facilities include existing companies and facilities that are adding production
capacity, or retrofitting existing capacity, as well as new companies and facilities. Eligible
biomass thermal production facilities must produce at least 250 MMbtu of biomass thermal
quarterly.
new text end

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

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

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

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

Sec. 24.

Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 2, is amended
to read:

Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must source
at least 80 percent of its forest resources raw materials from Minnesota. The facility must
be located in Minnesota; must begin construction activities by December 31, deleted text begin 2022 deleted text end new text begin 2023 new text end ,
for a specific location; must deleted text begin begin production deleted text end new text begin have produced at least one OSB square foot
on a 3/8-inch nominal basis new text end at a specific location by June 30, deleted text begin 2025 deleted text end new text begin 2026 new text end ; and must not begin
operating before January 1, 2022. Eligible facilities must be new OSB construction sites
with total capital investment in excess of $250,000,000. Eligible OSB production facilities
must produce at least deleted text begin 200,000,000 deleted text end new text begin 50,000,000 new text end OSB square feet on a 3/8-inch nominal basis
of OSB each deleted text begin year deleted text end new text begin quarter new text end . At least one product produced at the facility should be a
wood-based wall or roof structural sheathing panel that has an integrated, cellulose-based
paper overlay that serves as a water resistive barrier.

(b) No payments shall be made for OSB production that occurs after June 30, 2036, for
those eligible producers under paragraph (a).

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

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

Sec. 25.

Minnesota Statutes 2020, section 41B.025, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Timely decisions. new text end

new text begin When feasible, the authority must make a decision on a
completed loan application submitted by a borrower or eligible agricultural lender within
ten business days.
new text end

Sec. 26.

Minnesota Statutes 2020, section 223.17, subdivision 4, is amended to read:

Subd. 4.

Bond.

(a) Except as provided in paragraphs (c) to (e), before 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) 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 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) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are deleted text begin $100,000 deleted text end new text begin $1,000,000 new text end or less.

(f) 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.

Sec. 27.

Minnesota Statutes 2020, section 223.17, subdivision 6, is amended to read:

Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared in accordance with generally accepted accounting principles. The annual financial
statement required under this subdivision must also:

(1) 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;

(2) 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;

(3) be accompanied by a certification by the chief executive officer or the chief executive
officer's designee of the licensee, and where applicable, all members of the governing board
of directors under penalty of perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in the statement;

(4) for grain buyers purchasing under deleted text begin $5,000,000 deleted text end new text begin $7,500,000 new text end of grain annually, be
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; and

(5) for grain buyers purchasing deleted text begin $5,000,000 deleted text end new text begin $7,500,000 new text end or more of grain annually, be
audited by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants and must include an opinion statement
from the certified public accountant.

(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. All
financial statements filed with the commissioner are private or nonpublic data as provided
in section 13.02.

(c) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are deleted text begin $100,000 deleted text end new text begin $1,000,000 new text end or less.

(d) The commissioner shall annually provide information on a person's fiduciary duties
to each licensee. To the extent practicable, the commissioner must direct each licensee to
provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2020, section 346.155, subdivision 7, is amended to read:

Subd. 7.

Exemptions.

This section does not apply to:

(1) institutions accredited by the American Zoo and Aquarium Association;

(2) a wildlife sanctuary;

(3) fur-bearing animals, as defined in section 97A.015, possessed by a game farm that
is licensed under section 97A.105, or bears possessed by a game farm that is licensed under
section 97A.105;

(4) the Department of Natural Resources, or a person authorized by permit issued by
the commissioner of natural resources pursuant to section 97A.401, subdivision 3;

(5) a licensed or accredited research or medical institution; deleted text begin or
deleted text end

(6) a United States Department of Agriculture licensed exhibitor of regulated animals
while transporting or as part of a circus, carnival, rodeo, or fair new text begin ; or
new text end

new text begin (7) a zoo that: (i) is a United States Department of Agriculture-licensed exhibitor of
regulated animals; (ii) houses animals owned by institutions accredited by the American
Zoo and Aquarium Association; and (iii) participates in the American Zoo and Aquarium
Association Species Survival Plan new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin SOIL HEALTH FINANCIAL ASSISTANCE PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of agriculture must establish and
administer a pilot program to support healthy soil management practices in accordance with
this section.
new text end

new text begin Subd. 2. new text end

new text begin State healthy soil management plan. new text end

new text begin The commissioner must develop a
healthy soil management plan in consultation with the University of Minnesota, the United
States Department of Agriculture Natural Resources Conservation Service, the Board of
Water and Soil Resources, the Minnesota Pollution Control Agency, and nongovernmental
environmental and agricultural organizations. By December 31, 2023, and December 31,
2024, the commissioner must report the plan to the governor and to the chairs and ranking
minority members of the house of representatives and senate committees and divisions with
jurisdiction over agriculture, the environment, and natural resources. The plan must include
all of the following:
new text end

new text begin (1) an assessment of the current state of healthy soil management practices statewide;
new text end

new text begin (2) a statewide five- and ten-year goal for healthy soil management practice
implementation, denominated in acres;
new text end

new text begin (3) an explanation of how the commissioner will make grant award decisions based on
the eligibility categories described in subdivision 3;
new text end

new text begin (4) an explanation of how the commissioner will ensure a geographically fair distribution
of funding across a broad group of crop types, soil management practices, and farm sizes;
new text end

new text begin (5) a strategy for leveraging other public and private sources of money to expand healthy
soil management practices in the state;
new text end

new text begin (6) a summary of the operations of the program, including a summary of state, federal,
and private money spent, the total number of projects and acres, and an estimate of carbon
sequestered or carbon emissions reduced during that period; and
new text end

new text begin (7) any other matter that the commissioner deems relevant.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin The commissioner may award a grant under this section for
any project on agricultural land in Minnesota that will:
new text end

new text begin (1) increase the quantity of organic carbon in soil through practices, including but not
limited to reduced tillage, cover cropping, manure management, precision agriculture, crop
rotations, and changes in grazing management;
new text end

new text begin (2) integrate perennial vegetation into the management of agricultural lands;
new text end

new text begin (3) reduce nitrous oxide and methane emissions through changes to livestock, soil
management, or nutrient optimization;
new text end

new text begin (4) increase the usage of precision agricultural practices;
new text end

new text begin (5) enable the development of site-specific management plans; or
new text end

new text begin (6) enable the purchase of equipment, parts and materials, technology, subscriptions,
technical assistance, seeds, seedlings, or amendments that will further any of the purposes
in clauses (1) to (5).
new text end

new text begin Subd. 4. new text end

new text begin Grant eligibility. new text end

new text begin Any owner or lessee of farmland may apply for a grant under
this section. Local government units, including cities, towns, counties, soil and water
conservation districts, Tribal nations, and joint powers boards, are also eligible for a grant.
A local government unit that receives a grant for equipment or technology must make those
purchases available for use by the public.
new text end

new text begin Subd. 5. new text end

new text begin Funding limitations. new text end

new text begin Every appropriation for the soil health financial assistance
pilot program is subject to the following limitations:
new text end

new text begin (1) the commissioner may award no more than ten percent of the appropriation to a
single recipient; and
new text end

new text begin (2) the commissioner may use no more than five percent of the appropriation to cover
the costs of administering the program.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2024.
new text end

Sec. 30. new text begin REPORT REQUIRED; GRAIN ADVISORY GROUP.
new text end

new text begin The commissioner of agriculture may convene members of the Grain Advisory Group
and develop recommendations to improve the grain licensing program, including changes
to protect farmers who sell grain, and report back to the legislative committees with
jurisdiction over agriculture by February 15, 2023. Participating stakeholders must be given
an opportunity to include written testimony to the legislative committees in the
commissioner's report.
new text end

ARTICLE 3

DISASTER RELIEF

Section 1.

Minnesota Statutes 2020, section 41B.047, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

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

(2) certify that the damage or loss was (i) sustained within a county that was the subject
of a state or federal disaster declaration; (ii) due to the confirmed presence of a highly
contagious animal disease in Minnesota; (iii) due to an infectious human disease for which
the governor has declared a peacetime emergency; or (iv) due to an emergency as determined
by the authority;

(3) demonstrate an ability to repay the loan; and

(4) have received at least deleted text begin 50 deleted text end new text begin 25 new text end percent of deleted text begin average deleted text end annual gross income from farming
deleted text begin for deleted text end new text begin in new text end the past deleted text begin three years deleted text end new text begin year new text end .

Sec. 2. new text begin DROUGHT RELIEF GRANTS; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $8,100,000 in fiscal year 2022 is appropriated from the
general fund to the commissioner of agriculture to award grants and other forms of financial
assistance to livestock farmers and specialty crop producers impacted by drought during
2021. For the purposes of this section, "specialty crop" means an eligible crop under the
United States Department of Agriculture's specialty crop block grant program. The
commissioner may use up to 6.5 percent of this appropriation to administer this section.
This appropriation is available until June 30, 2024.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible under this section, a farmer or producer must:
new text end

new text begin (1) be located in a county designated by the United States Department of Agriculture as
a primary natural disaster area after July 19, 2021, and before January 1, 2022, or in a county
contiguous to a designated county; and
new text end

new text begin (2) provide to the commissioner an inventory of expenses incurred by the farmer or
producer and attest that the farmer or producer incurred these expenses in response to the
drought.
new text end

new text begin (b) Eligible expenses under paragraph (a), clause (2), include but are not limited to costs
incurred by a livestock farmer to transport feed or feed ingredients up to 25 miles to and
from the farm if the farmer is not compensated for the same expenses through the United
States Department of Agriculture's Emergency Assistance for Livestock, Honey Bees, and
Farm-raised Fish program.
new text end

new text begin Subd. 3. new text end

new text begin Payment amount. new text end

new text begin The commissioner may award an eligible farmer or producer
a grant or other form of financial assistance equal to the total amount attested to under
subdivision 2, paragraph (a), clause (2), or $7,500, whichever is less.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must accept applications under
this section for at least ten business days and may accept any additional applications
postmarked during this same period.
new text end

new text begin (b) If total eligible applications received during the initial application period exceed the
amount appropriated under subdivision 1, the commissioner must award grants or other
forms of financial assistance to eligible applicants on a pro rata basis.
new text end

new text begin (c) If total eligible applications received during the initial application period do not
exceed the amount appropriated under subdivision 1, the commissioner must solicit and
accept additional applications until any remaining amount is exhausted or cancels to the
general fund.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin Beginning January 10, 2023, and annually thereafter until January 10,
2025, the commissioner must report on expenditures and activities under this section to the
legislative committees and divisions with jurisdiction over agriculture finance. The reports
must include a breakdown of grants by type of farm, either livestock or specialty crop, and
by county.
new text end

Sec. 3. new text begin TRANSFER; RURAL FINANCE AUTHORITY.
new text end

new text begin $2,500,000 in fiscal year 2022 is transferred from the general fund to the Rural Finance
Authority Revolving Loan account established under Minnesota Statutes, section 41B.06,
with priority given to drought relief loans under Minnesota Statutes, section 41B.047.
Beginning January 10, 2023, and annually thereafter until January 10, 2025, the commissioner
of agriculture must report expenditures and activities under this section to the legislative
committees and divisions with jurisdiction over agriculture finance.
new text end

Sec. 4. new text begin APPROPRIATION; VETERINARY DISEASE TESTING EQUIPMENT.
new text end

new text begin $1,000,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of agriculture for a grant to the Board of Regents of the University of Minnesota to purchase
equipment for the Veterinary Diagnostic Laboratory to test for chronic wasting disease,
African swine fever, avian influenza, and other animal diseases. The Veterinary Diagnostic
Laboratory must include expenditures and activities under this section in the reports required
by article 1, section 1, subdivision 5, paragraph (v). This appropriation is available until
June 30, 2023.
new text end

Sec. 5. new text begin TRANSFER; AGRICULTURAL EMERGENCY ACCOUNT.
new text end

new text begin (a) $1,500,000 in fiscal year 2022 is transferred from the general fund to the agricultural
emergency account established under Minnesota Statutes, section 17.041. This transfer is
in addition to the transfer under Laws 2022, chapter 47, section 2.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 17.041, the commissioner may use the
amount transferred under this section for the purposes identified in Laws 2022, chapter 47,
section 2. This paragraph expires on December 31, 2022.
new text end

Sec. 6. new text begin APPROPRIATIONS; DROUGHT RELIEF.
new text end

new text begin (a) $300,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of natural resources for costs associated with resolving well interferences confirmed by the
Department of Natural Resources that occurred after April 30, 2021, and before December
31, 2021. This appropriation is available until June 30, 2026.
new text end

new text begin (b) $5,000,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of natural resources to replace drought-killed seedlings on lands managed
by the Department of Natural Resources and to administer grants to Tribal, county, and
private forestland owners to replace drought-killed seedlings on their land. Seedling
replacement includes site prep, replanting, and tending seedlings. This is a onetime
appropriation and is available until June 30, 2027.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 4

BROADBAND APPROPRIATIONS

Section 1.

Laws 2021, First Special Session chapter 10, article 1, section 7, is amended
to read:

Sec. 7. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.

(a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of the Treasury requesting that
$70,000,000 of Minnesota's capital projects fund allocation under Public Law 117-2 be
awarded to the state. The commissioner must submit the application required under this
paragraph by the later of September 30, 2021, or 90 days after the date on which the United
States Department of the Treasury begins accepting capital projects fund applications. The
commissioner must specify in the application that the award will be used for grants deleted text begin and deleted text end new text begin that
satisfy new text end the purposes specified under Minnesota Statutes, section 116J.395.

(b) Of the amount awarded to the state of Minnesota pursuant to the application required
in paragraph (a), notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, 50 percent
in fiscal year 2022 and 50 percent in fiscal year 2023 are appropriated to the commissioner
of employment and economic development. This is a onetime appropriation and must be
used for grants deleted text begin and deleted text end new text begin that satisfy new text end the purposes specified under Minnesota Statutes, section
116J.395. new text begin All money awarded under this section must be spent by December 31, 2026.
new text end

(c) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, to the degree
necessary to comply with federal standards for funding received under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin LOWER POPULATION DENSITY PILOT PROGRAM.
new text end

new text begin (a) The commissioner of employment and economic development must establish a pilot
program to provide broadband service to unserved and underserved areas, as defined in
Minnesota Statutes, section 116J.394, of the state where a 50 percent match formula is not
adequate to make a business case for the extension of broadband facilities. Grants awarded
under this section shall adhere to all other requirements of Minnesota Statutes, section
116J.395, subdivisions 1 to 6, and may fund up to 75 percent of the total cost of a project,
notwithstanding Minnesota Statutes section 116J.395, subdivision 7. Grants awarded to a
single project under this section may not exceed $10,000,000.
new text end

new text begin (b) The commissioner of employment and economic development may use up to
$30,000,000 from the appropriations in sections 3 and 4 for the lower population density
pilot program under paragraph (a).
new text end

new text begin (c) No later than December 31, 2023, the Office of Broadband Development must submit
a report to the chairs and ranking minority members of the senate and house of representatives
committees with primary jurisdiction over broadband policy and finance analyzing the
impacts of this section on the number and amounts of grants awarded under Minnesota
Statutes, section 116J.395.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.
new text end

new text begin (a) The commissioner of employment and economic development must prepare and
submit a grant plan application to the United States Department of the Treasury requesting
that $60,703,000 of Minnesota's capital projects fund allocation under Public Law 117-2
be used for grants that satisfy the purposes specified under Minnesota Statutes, section
116J.395, and sections 2, 5, and 6 of this article. The commissioner must submit the
application required under this paragraph by September 24, 2022.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, the amount awarded
to Minnesota pursuant to the application required in paragraph (a) is appropriated to the
commissioner of employment and economic development. This appropriation (1) must be
used only for grants that satisfy the purposes specified under Minnesota Statutes, section
116J.395, and sections 2, 5, and 6 of this article, and (2) is available until December 31,
2026.
new text end

new text begin (c) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, and sections 2, 5,
and 6 of this article to the extent necessary to comply with federal standards that apply to
funding received under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin BROADBAND DEVELOPMENT; APPROPRIATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, if Minnesota receives
federal money for broadband development under Public Law 117-58, the Infrastructure
Investment and Jobs Act, the money is appropriated to the commissioner of employment
and economic development for grants that satisfy the purposes specified under Minnesota
Statutes, section 116J.395, and sections 2 and 6 of this article.
new text end

new text begin (b) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, and sections 2 and
6 of this article to the extent necessary to comply with federal standards that apply to funding
received under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin BROADBAND LINE EXTENSION PROGRAM; APPROPRIATION.
new text end

new text begin The commissioner of employment and economic development may use up to $15,000,000
from the appropriations in section 3 for the broadband line extension program in Minnesota
Statutes, section 116J.3951.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin BROADBAND; MAPPING.
new text end

new text begin The commissioner of employment and economic development may use up to $15,000,000
from the appropriations in sections 3 and 4 for comprehensive statewide mapping if the
commissioner determines that comprehensive statewide mapping is an eligible expense
under federal law.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin TRANSFER.
new text end

new text begin $25,000,000 in fiscal year 2023 is transferred from the general fund to the
border-to-border broadband fund account established in Minnesota Statutes, section 116J.396.
The base for this transfer is $25,000,000 in fiscal year 2024 and $0 in fiscal year 2025 and
later.
new text end

ARTICLE 5

BROADBAND POLICY

Section 1.

new text begin [116J.3951] BROADBAND LINE EXTENSION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin A broadband line extension grant program is
established in the Department of Employment and Economic Development. The purpose
of the broadband line extension grant program is to award grants to eligible applicants in
order to extend existing broadband infrastructure to unserved locations.
new text end

new text begin Subd. 2. new text end

new text begin Portal. new text end

new text begin No later than November 1, 2022, the department must develop and
implement a portal on the department's website that allows a person to report (1) that
broadband service is unavailable at the physical address of the person's residence or business,
and (2) any additional information that the department deems necessary to ensure that the
broadband line extension grant program functions effectively. The department must develop
a form that allows the information identified in this subdivision to be submitted on paper.
new text end

new text begin Subd. 3. new text end

new text begin Data sharing. new text end

new text begin (a) Beginning no later than six months after the date that the
portal is implemented and every six months thereafter, the department must send to each
broadband service provider serving Minnesota customers: (1) a list of addresses submitted
to the portal under subdivision 2 during the previous six months; and (2) any additional
information that the department deems necessary to ensure that the broadband line extension
grant program functions effectively. The department must send the information required
under this section via e-mail.
new text end

new text begin (b) No later than ten days after the date that the list in paragraph (a) is provided, a
broadband service provider may notify the department of any posted address at which the
broadband service provider's broadband service is available. The department must provide
persons residing or doing business at those addresses with contact information for:
new text end

new text begin (1) the broadband service provider with broadband service available at that address; and
new text end

new text begin (2) programs administered by government agencies, nonprofit organizations, or the
applicable broadband service provider that reduce the cost of broadband service and for
which the persons may be eligible.
new text end

new text begin Subd. 4. new text end

new text begin Reverse auction process. new text end

new text begin (a) No later than ten days after the date that the notice
requirement in subdivision 3, paragraph (b), expires, the department must notify each
broadband service provider that the broadband service provider may participate in the reverse
auction process under this subdivision. Within 60 days of the date that the notification is
received, a broadband service provider may submit a bid to the department to extend the
broadband service provider's existing broadband infrastructure to a location where broadband
service is currently unavailable.
new text end

new text begin (b) A bid submitted under this subdivision must include:
new text end

new text begin (1) a proposal to extend broadband infrastructure to one or more of the addresses on the
list sent by the department to the broadband service provider under subdivision 3, paragraph
(a), at which broadband service is unavailable;
new text end

new text begin (2) the amount of the broadband infrastructure extension's total cost that the broadband
service provider proposes to pay;
new text end

new text begin (3) the amount of the broadband infrastructure extension's total cost that the broadband
service provider proposes that the department is responsible for paying; and
new text end

new text begin (4) any additional information required by the department.
new text end

new text begin (c) Financial assistance that the department provides under this section must be in the
form of a grant issued to the broadband service provider. A grant issued under this section
must not exceed $25,000 per line extension.
new text end

new text begin (d) Within 60 days of the date that the bidding period closes, the department must review
the bids submitted and select the broadband service provider bids that request the least
amount of financial support from the state, provided that the department determines that
the selected bids represent a cost-effective expenditure of state resources.
new text end

new text begin Subd. 5. new text end

new text begin Line extension agreement. new text end

new text begin The department must enter into a line extension
agreement with each winning bidder identified under subdivision 4, except that the
department may not enter into a line extension agreement to serve any customer located
within an area that will be served by a grant already awarded by the department under section
116J.395.
new text end

new text begin Subd. 6. new text end

new text begin Contents of agreement. new text end

new text begin A line extension agreement under subdivision 5 must
contain the following terms:
new text end

new text begin (1) the broadband service provider agrees to extend broadband infrastructure to support
broadband service scalable to speeds of at least 100 megabits per second download and 100
megabits per second upload to each address included in the broadband service provider's
winning bid;
new text end

new text begin (2) the department agrees to pay the state's portion of the line extension cost in a grant
issued to the broadband service provider upon the completion of the broadband infrastructure
extension to each address in the broadband service provider's winning bid; and
new text end

new text begin (3) the winning bidder has an exclusive right to apply the grant to the cost of the
broadband infrastructure extension for a period of one year after the date that the agreement
is executed.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 116J.396, subdivision 2, is amended to read:

Subd. 2.

Expenditures.

Money in the account may be used only:

(1) for grant awards made under deleted text begin section deleted text end new text begin sections new text end 116J.395 new text begin and 116J.3951 new text end , including
costs incurred by the Department of Employment and Economic Development to administer
that section;

(2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development; or

(3) to contract for the collection of broadband deployment data from providers and the
creation of maps showing the availability of broadband service.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [116J.399] BROADBAND EASEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "broadband infrastructure" has the meaning given in section 116J.394, paragraph
(c);
new text end

new text begin (2) "broadband service" has the meaning given in section 116J.394, paragraph (b); and
new text end

new text begin (3) "provider" means a broadband service provider, but does not include an electric
cooperative association organized under chapter 308A that provides broadband service.
new text end

new text begin Subd. 2. new text end

new text begin Use of existing easements for broadband services. new text end

new text begin (a) A provider, provider's
affiliate, or another entity that has entered into an agreement with a provider, may use the
provider, affiliate, or entity's existing or subsequently acquired easements to install broadband
infrastructure and provide broadband service, which may include an agreement to lease
fiber capacity.
new text end

new text begin (b) Before exercising rights granted under this subdivision, a provider must provide
notice to the property owner on which the easement is located, as described in subdivision
3.
new text end

new text begin (c) Use of an easement to install broadband infrastructure and provide broadband service
vests and runs with the land beginning six months after the first notice is provided under
subdivision 3, unless a court action challenging the use of the easement has been filed before
that time by the property owner as provided under subdivision 4. The provider must also
file copies of the notices with the county recorder.
new text end

new text begin Subd. 3. new text end

new text begin Notice to property owner. new text end

new text begin (a) A provider must send two written notices to
impacted property owners declaring that the provider intends to use the easements to install
broadband infrastructure and provide broadband service. The notices must be sent at least
two months apart and must be sent by first class mail to the last known address of the owner
of the property on which the easement is located or, if the property owner is an existing
customer of the provider, by separate printed insertion in the property owner's monthly
invoice or included as a separate page on a property owner's electronic invoice.
new text end

new text begin (b) The notice must include:
new text end

new text begin (1) the provider's name and mailing address;
new text end

new text begin (2) a narrative describing the nature and purpose of the intended easement use;
new text end

new text begin (3) a description of any trenching or other underground work expected to result from
the intended use, and the anticipated time frame for the work;
new text end

new text begin (4) a phone number for an employee of the provider that the property owner may contact
regarding the easement; and
new text end

new text begin (5) the following statement, in bold red lettering: "It is important to make any challenge
by the deadline to preserve any legal rights you may have."
new text end

new text begin (c) The provider must file copies of the notices with the county recorder.
new text end

new text begin Subd. 4. new text end

new text begin Action for damages. new text end

new text begin (a) Notwithstanding any other law to the contrary, this
subdivision governs an action under this section and is the exclusive means to bring a claim
for compensation with respect to a notice of intent to use a provider's existing easement to
install broadband infrastructure and provide broadband service.
new text end

new text begin (b) Within six months after the date notice is received under subdivision 3, a property
owner may file an action seeking to recover damages for a provider's use of an existing
easement to install broadband infrastructure and provide broadband service. Claims for
damages under $15,000 may be brought in conciliation court.
new text end

new text begin (c) To initiate an action under this subdivision, a property owner must serve a complaint
upon the provider in the same manner as in a civil action and must file the complaint with
the district court for the county in which the easement is located. The complaint must state
whether the property owner:
new text end

new text begin (1) challenges the provider's right to use the easement for broadband services or
infrastructure as provided under subdivision 5, paragraph (a);
new text end

new text begin (2) seeks damages as provided under subdivision 5, paragraph (b); or
new text end

new text begin (3) seeks to proceed under both clauses (1) and (2).
new text end

new text begin Subd. 5. new text end

new text begin Deposit and hearing required. new text end

new text begin (a) If a property owner files a complaint
challenging a provider's right to use an easement to install broadband infrastructure and
provide broadband service, after the provider answers the complaint, the district court must
promptly hold a hearing on the complaint. If the district court denies the property owner's
complaint, the provider may proceed to use the easement to install broadband infrastructure
and provide broadband service, unless the complaint also seeks damages. If the complaint
seeks damages, the provider may proceed under paragraph (b).
new text end

new text begin (b) If a property owner files a claim for damages, a provider may, after answering the
complaint, deposit with the court administrator an amount equal to the provider's estimate
of damages. A provider's estimate of damages must be no less than $1. After the estimated
damages are deposited, the provider may use the existing easement to install broadband
infrastructure and provide broadband service, conditioned on an obligation, filed with the
court administrator, to pay the amount of damages determined by the court.
new text end

new text begin Subd. 6. new text end

new text begin Calculation of damages; burden of proof. new text end

new text begin (a) In an action under this section
involving a property owner's claim for damages:
new text end

new text begin (1) the property owner has the burden to prove the existence and amount of any net
reduction in the fair market value of the property, considering the existence, installation,
construction, maintenance, modification, operation, repair, replacement, or removal of
broadband infrastructure in the easement, adjusted to reflect any increase in the property's
fair market value resulting from access to broadband service;
new text end

new text begin (2) a court is prohibited from awarding consequential or special damages; and
new text end

new text begin (3) evidence of estimated revenue, profits, fees, income, or similar benefits accruing to
the provider, the provider's affiliate, or a third party as a result of use of the easement is
inadmissible.
new text end

new text begin (b) Any fees or costs incurred as a result of an action under this subdivision must be
paid by the party that incurred the fees or costs, except that a provider is responsible for a
property owner's attorney fees if the final judgment or award of damages by the court exceeds
140 percent of the provider's damage deposit made under subdivision 5, if applicable.
new text end

new text begin Subd. 7. new text end

new text begin No limits on existing easement. new text end

new text begin Nothing in this section limits in any way a
provider's existing easement rights.
new text end

new text begin Subd. 8. new text end

new text begin Local governmental right-of-way management preserved. new text end

new text begin The placement
of broadband infrastructure to provide broadband service under subdivisions 2 to 7 is subject
to local government permitting and right-of-way management authority under section
237.163, and must be coordinated with the relevant local government unit in order to
minimize potential future relocations. The provider must notify a local government unit
prior to placing infrastructure for broadband service in an easement that is in or adjacent to
the local government unit's public right-of-way.
new text end

new text begin Subd. 9. new text end

new text begin Railroad rights-of-way crossing. new text end

new text begin The placement of broadband infrastructure
for use to provide broadband service under subdivisions 1 to 7 or section 308A.201,
subdivision 12, in any portion of an existing easement located in a railroad right-of-way is
subject to sections 237.04 and 237.045.
new text end

new text begin EFFECTIVE DATE. new text end

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