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Minnesota Legislature

Office of the Revisor of Statutes

HF 4133

as introduced - 90th Legislature (2017 - 2018) Posted on 03/21/2018 12:03pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; making policy and technical changes to various agricultural
provisions;amending Minnesota Statutes 2016, sections 17.117, subdivision 11a;
25.33, subdivision 8; 28A.04, subdivision 1; 28A.08, subdivision 3; 29.26; 34A.11,
subdivision 7; 41A.15, subdivision 10, by adding a subdivision; 41A.16,
subdivisions 1, 4; 41A.17, subdivisions 1, 2, 3; 41A.18, subdivisions 1, 3; 41B.02,
subdivision 10a; 41B.047, subdivisions 1, 3; 41B.049, subdivision 5; 41B.055,
subdivision 3; 41B.057, subdivision 3; Minnesota Statutes 2017 Supplement,
sections 28A.05; 32D.13, by adding a subdivision; 32D.20, subdivision 2; 32D.22;
41B.0391, subdivisions 1, 5; repealing Minnesota Statutes 2016, section 41A.15,
subdivisions 2a, 2b.

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

Section 1.

Minnesota Statutes 2016, 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 the adverse environmental impacts or presence of contaminants in private
well water;

(2) implements best management practices to achieve drinking water standards; and

(3) otherwise meets the requirements of this section.

new text begin (d) A feasibility study for an energy conservation project is an eligible project.
new text end

Sec. 2.

Minnesota Statutes 2016, section 25.33, subdivision 8, is amended to read:


Subd. 8.

Drug.

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

Sec. 3.

Minnesota Statutes 2016, section 28A.04, subdivision 1, is amended to read:


Subdivision 1.

Application; date of issuance.

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

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

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

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

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

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

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

Sec. 4.

Minnesota Statutes 2017 Supplement, section 28A.05, is amended to read:


28A.05 CLASSIFICATION.

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

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

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

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

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

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

Sec. 5.

Minnesota Statutes 2016, section 28A.08, subdivision 3, is amended to read:


Subd. 3.

Fees effective July 1, 2003.

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

Sec. 6.

Minnesota Statutes 2016, section 29.26, is amended to read:


29.26 EGGS IN POSSESSION OF RETAILER.

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

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

Sec. 7.

Minnesota Statutes 2017 Supplement, section 32D.13, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin Milk storage requirement. new text end

new text begin (a) A milk hauler may only pick up milk from
farms with a bulk tank that is in proper working order.
new text end

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

Sec. 8.

Minnesota Statutes 2017 Supplement, section 32D.20, subdivision 2, is amended
to read:


Subd. 2.

Labels.

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

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

Sec. 9.

Minnesota Statutes 2017 Supplement, section 32D.22, is amended to read:


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

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

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

Sec. 10.

Minnesota Statutes 2016, section 34A.11, subdivision 7, is amended to read:


Subd. 7.

Emergency powers.

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

Sec. 11.

Minnesota Statutes 2016, section 41A.15, is amended by adding a subdivision to
read:


new text begin Subd. 2e. new text end

new text begin Biomass. new text end

new text begin "Biomass" means any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees, wood and wood waste and residues,
plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic
portion of solid wastes.
new text end

Sec. 12.

Minnesota Statutes 2016, section 41A.15, subdivision 10, is amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical deleted text beginwith biobased
content.
deleted text endnew text begin, polymer, monomer, plastic, or composite material that is entirely produced from
biomass.
new text end

Sec. 13.

Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent deleted text beginraw materialsdeleted text endnew text begin of biomassnew text end from Minnesotadeleted text begin.deleted text endnew text begin, except that,new text end if a facility
is sited 50 miles or less from the state border, deleted text beginraw materialsdeleted text endnew text begin biomassnew text end may be sourced from
new text begin outside of Minnesota, but only if it is sourced from new text endwithin a 100-mile radiusnew text begin of the facilitynew text end.
deleted text begin Raw materials must be from agricultural or forestry sources or from solid waste.deleted text end The facility
must be located in Minnesota, must begin production at a specific location by 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.

(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. 14.

Minnesota Statutes 2016, section 41A.16, subdivision 4, is amended to read:


Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text beginstatedeleted text endnew text begin forestnew text end biomass harvesting guidelines or
the equivalent. All new text begincellulosic new text endbiomass from brushlands must be produced using Minnesota
brushland deleted text beginharvestingdeleted text end biomass deleted text beginharvestdeleted text endnew text begin harvestingnew text end guidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, new text beginthe new text endSustainable Forestry Initiative, ornew text begin
the
new text end American Tree Farm System. Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text beginstewardshipdeleted text end
new text begin management new text endplannew text begin, as defined in section 290C.02, subdivision 7, or its equivalentnew text end.

Sec. 15.

Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this deleted text beginprogramdeleted text endnew text begin sectionnew text end
must source at least 80 percent deleted text beginbiobased contentdeleted text endnew text begin of biomassnew text end from Minnesotadeleted text begin.deleted text endnew text begin, except that,new text end
if a facility is sited 50 miles or less from the state border, deleted text beginbiobased content mustdeleted text endnew text begin biomass
may
new text end be sourced from new text beginoutside of Minnesota, but only if it is sourced from new text endwithin a 100-mile
radiusnew text begin of the facilitynew text end. deleted text beginBiobased content must be from agricultural or forestry sources or from
solid waste.
deleted text end The facility must be located in Minnesota, must begin production at a specific
location by June 30, 2025, and must not begin production of 750,000 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 750,000
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. 16.

Minnesota Statutes 2016, section 41A.17, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; bonus; limits.

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

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

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

new text begin (d) An eligible facility may blend renewable chemicals with other chemicals that are
not renewable chemicals, but only the percentage attributable to renewable chemicals in
the blended product is eligible to receive payment.
new text end

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

Sec. 17.

Minnesota Statutes 2016, section 41A.17, subdivision 3, is amended to read:


Subd. 3.

Cellulosic new text beginforestry new text endbiomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text beginstatedeleted text endnew text begin forestnew text end biomass harvesting guidelines or
the equivalent. All cellulosic biomass from brushlands must be produced using Minnesota
brushland deleted text beginharvestingdeleted text end biomass deleted text beginharvestdeleted text endnew text begin harvestingnew text end guidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, new text beginthe new text endSustainable Forestry Initiative, ornew text begin
the
new text end American Tree Farm System. Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text beginstewardshipdeleted text endnew text begin
management
new text end plannew text begin, as defined in section 290C.02, subdivision 7, or its equivalentnew text end.

Sec. 18.

Minnesota Statutes 2016, section 41A.18, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent deleted text beginraw materialsdeleted text endnew text begin of biomassnew text end from Minnesotadeleted text begin.deleted text endnew text begin, except that,new text end if a facility
is sited 50 miles or less from the state border, deleted text beginraw materials shoulddeleted text endnew text begin biomass maynew text end be sourced
from new text beginoutside of Minnesota, but only if it is sourced from new text endwithin a 100-mile radiusnew text begin of the
facility
new text end. deleted text beginRaw materialsdeleted text endnew text begin Biomassnew text end must be from agricultural or forestry sources. The facility
must be located in Minnesota, must have begun production at a specific location by June
30, 2025, and must not begin before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting existing capacity,
as well as new companies and facilities. Eligible biomass thermal production facilities must
produce at least 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. 19.

Minnesota Statutes 2016, section 41A.18, subdivision 3, is amended to read:


Subd. 3.

Cellulosic new text beginforestry new text endbiomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text beginstatedeleted text endnew text begin forestnew text end biomass harvesting guidelines or
the equivalent. All new text begincellulosic new text endbiomass from deleted text beginbrushlanddeleted text endnew text begin brushlandsnew text end must be produced using
Minnesota brushland deleted text beginharvestingdeleted text end biomass new text beginharvesting new text endguidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, the Sustainable Forestry Initiative, ornew text begin
the
new text end American Tree Farmnew text begin Systemnew text end. Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text beginstewardshipdeleted text endnew text begin
management
new text end plannew text begin, as defined in section 290C.02, subdivision 7, or its equivalentnew text end.

Sec. 20.

Minnesota Statutes 2016, section 41B.02, subdivision 10a, is amended to read:


Subd. 10a.

Livestock expansion.

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

Sec. 21.

Minnesota Statutes 2017 Supplement, section 41B.0391, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

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

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

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

(1) is a resident of Minnesota;

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

(3) intends to farm land located within the state borders of Minnesota;new text begin and
new text end

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

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

deleted text begin (6)deleted text endnew text begin (4)new text end meets the following eligibility requirements as determined by the authority:

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

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

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

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

deleted text begin (v)deleted text endnew text begin (iv)new text end asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

deleted text begin (vi)deleted text endnew text begin (v)new text end participates in a financial management program approved by the authority or
the commissioner of agriculturedeleted text begin;deleted text endnew text begin. The commissioner may waive this requirement for any
of the programs administered by the authority if the participant requests a waiver and has
a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor;
new text end

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

deleted text begin (viii)deleted text endnew text begin (vii)new text end has other qualifications as specified by the authority.

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

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

deleted text begin (f)deleted text endnew text begin (e)new text end "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

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

deleted text begin (h)deleted text endnew text begin (g)new text end "Resident" has the meaning given in section 290.01, subdivision 7.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2017 Supplement, section 41B.0391, subdivision 5, is amended
to read:


Subd. 5.

Appeals of authority determinations.

(a) Any decision of the authority under
this section may be challenged as a contested case under chapter 14. deleted text beginThe contested case
proceeding must be initiated within 60 days of the date of written notification by the office.
deleted text endnew text begin
A party affected by a determination of the authority has 20 days from notice of the decision
to request an expedited hearing. The hearing must be held within 60 days after a request
for hearing has been filed with the Office of Administrative Hearings unless both parties
agree to a later date.
new text end

(b) If a taxpayer challenges a decision of the authority under this subdivision, upon
perfection of the appeal the authority must notify the commissioner of revenue of the
challenge within five days.

(c) Nothing in this subdivision affects the commissioner of revenue's authority to audit,
review, correct, or adjust returns claiming the credit.

Sec. 23.

Minnesota Statutes 2016, section 41B.047, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

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

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

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

(3) restore farmland; or

(4) replace flocks, make building improvements, or cover the loss of revenue when the
replacement, improvements, or loss of revenue is due to the confirmed presence of the
highly pathogenic avian influenza in a commercial poultry or game flock located in
Minnesota.

Sec. 24.

Minnesota Statutes 2016, 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 or (ii) due to deleted text beginthe confirmed presence of the highly
pathogenic avian influenza in a commercial poultry or game flock located in Minnesota
deleted text endnew text begin a
market disaster or emergency as determined by the commissioner
new text end;

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

(4) have received at least 50 percent of average annual gross income from farming for
the past three years.

Sec. 25.

Minnesota Statutes 2016, section 41B.049, subdivision 5, is amended to read:


Subd. 5.

Loan criteria.

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

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

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

deleted text begin (d) A borrower who has previously received a loan under subdivision 1 is prohibited
from receiving another methane digester loan under subdivision 1.
deleted text end

Sec. 26.

Minnesota Statutes 2016, section 41B.055, subdivision 3, is amended to read:


Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan equal
to 90 percent of the purchased equipment value with an eligible lender to a farmer who is
eligible under subdivision 2. Participation is limited to 45 percent of the principal amount
of the loan or deleted text begin$40,000deleted text endnew text begin $100,000new text end, whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must not
exceed three percent. The authority may review the interest annually and make adjustments
as necessary.

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

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

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

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

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

Sec. 27.

Minnesota Statutes 2016, section 41B.057, subdivision 3, is amended to read:


Subd. 3.

Loan participation.

The authority may participate in a farm opportunity loan
with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a group
of farmers on joint projects who are eligible under subdivision 2, paragraph (c), and who
are actively engaged in farming. Participation is limited to 45 percent of the principal amount
of the loan or deleted text begin$45,000deleted text endnew text begin $100,000new text end per individual, whichever is less. For loans to a group made
up of four or more individuals, participation is limited to 45 percent of the principal amount
of the loan or deleted text begin$180,000deleted text endnew text begin $250,000new text end, whichever is less. The interest rate on the loans must not
exceed six percent.

Sec. 28. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 41A.15, subdivisions 2a and 2b, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-7103

41A.15 DEFINITIONS.

Subd. 2a.

Biobased content.

"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.

Subd. 2b.

Biobased formulated product.

"Biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation.