HF 4490

1st Unofficial Engrossment - 91st Legislature (2019 - 2020) Posted on 05/16/2020 10:56am

A bill for an act
relating to agriculture; providing supplemental agriculture-related appropriations
for various agriculture-related purposes including appropriations for COVID-19
response efforts, farm and rural mental health services, farmers assistance, farm
advocate services, farm safety, veterinary diagnostic equipment, farm loan
origination fee assistance, meat and poultry processing, and retail food handler
safety; providing farm safety grant and outreach programs; modifying an
appropriation; making technical changes; amending Minnesota Statutes 2018,
section 31.175; Laws 2019, First Special Session chapter 1, article 1, section 2,
subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Section 1.

new text begin [17.1195] FARM SAFETY GRANT AND OUTREACH PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Tractor rollover grants. new text end

new text begin (a) The commissioner may award grants to
Minnesota farmers and Minnesota schools that retrofit eligible tractors with eligible rollover
protective structures.
new text end

new text begin (b) Grants for farmers are limited to 70 percent of the farmer's documented cost to
purchase, ship, and install an eligible rollover protective structure. The commissioner must
increase a farmer's grant award amount over the 70 percent grant limitation requirement if
necessary to limit a farmer's cost per tractor to no more than $500.
new text end

new text begin (c) Schools are eligible for grants that cover the full amount of a school's documented
cost to purchase, ship, and install an eligible rollover protective structure.
new text end

new text begin (d) A rollover protective structure is eligible if it is certified to appropriate national or
international rollover protection structure standards with a seat belt.
new text end

new text begin (e) "Eligible tractor" means a tractor that was built before 1987.
new text end

new text begin Subd. 2. new text end

new text begin Grain storage facility safety grants; farm safety outreach. new text end

new text begin (a) The
commissioner may award grants to Minnesota farmers who purchase eligible grain storage
facility safety equipment. Grants are limited to 75 percent of the farmer's documented cost
to purchase, ship, and install grain storage facility safety equipment, or $400 per bin or silo,
whichever is less. A farm entity may not receive more than one grant each fiscal year.
new text end

new text begin (b) Eligible grain storage facility safety equipment includes:
new text end

new text begin (1) fall protection systems;
new text end

new text begin (2) engineering controls to prevent contact with an auger or other moving parts;
new text end

new text begin (3) dust collection systems to minimize explosion hazards;
new text end

new text begin (4) personal protective equipment to increase survivability in the event of a
grain-bin-related emergency;
new text end

new text begin (5) grain silo air quality monitoring equipment; and
new text end

new text begin (6) other grain storage facility safety equipment approved by the commissioner.
new text end

new text begin (c) The commissioner may create a farm safety outreach campaign, including but not
limited to development and distribution of safety educational materials related to grain bins,
silos, and other agricultural confined spaces.
new text end

new text begin Subd. 3. new text end

new text begin Promotion; administration. new text end

new text begin The commissioner may spend up to six percent
of total program dollars each fiscal year to promote and administer the programs to Minnesota
farmers and schools.
new text end

Sec. 2.

Minnesota Statutes 2018, section 31.175, is amended to read:

31.175 WATER, PLUMBING, AND SEWAGE.

A person who is required by statutes administered by the Department of Agriculture, or
by rules adopted pursuant to those statutes, to provide a suitable water supply, or plumbing
or sewage disposal system shall not engage in the business of manufacturing, processing,
selling, handling, or storing food at wholesale or retail unless the person's water supply is
satisfactory pursuant to rules adopted by the Department of Health, the person's plumbing
is satisfactory pursuant to rules adopted by the Department of Labor and Industry, and the
person's sewage disposal system satisfies the rules of the Pollution Control Agency. new text begin This
section does not limit the commissioner's ability to issue a food handler's license when an
investigation completed pursuant to section 28A.07 has determined the requirements of this
section are not relevant and the applicant is considered fit to engage in business as described
in the license application.
new text end

Sec. 3.

Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision 4, is
amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

23,653,000

deleted text begin 23,654,000 deleted text end new text begin 23,554,000 new text end

(a) $9,300,000 the first year and deleted text begin $9,300,000 deleted text end new text begin
$9,200,000 new text end 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, new text begin $675,000 in fiscal year
2021 only is for testing equipment and
supplies for the Veterinary Diagnostic
Laboratory, and new text end up to $1,000,000 each year
is for research on avian influenza new text begin , salmonella,
and other turkey-related diseases new text end .

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program. new text begin The
base amount for agriculture research,
education, extension, and technology transfer
for fiscal year 2022 and later is $9,300,000.
new text end

(b) $14,353,000 the first year and $14,354,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, improvement, or expansion of
livestock operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$400,000 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 new text begin ,
with additional priority given to meat and
poultry processors in the second year new text end ;
providing funding not to exceed $300,000
each year for urban youth agricultural
education or urban agriculture community
development; providing funding not to exceed
$300,000 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
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices/good handling
practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $2,500,000 the first year and $2,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program. The base amount for
the allocation under this clause is $3,000,000
in fiscal year 2022 and later;

(3) up to $5,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants to Minnesota dairy farmers
who enroll for five years of coverage under
the federal dairy margin coverage program
and produced no more than 16,000,000 pounds
of milk in 2018. The commissioner must
award DAIRI grants based on participating
producers' amount of 2018 milk, up to
5,000,000 pounds per participating producer,
at a rate determined by the commissioner
within the limits of available funding;

(4) up to $5,000,000 the second year is for
innovative soybean processing and research;

(5) $75,000 the first year is for a grant to
Greater Mankato Growth, Inc. for assistance
to agricultural-related businesses to promote
jobs, innovation, and synergy development;
and

(6) $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 amounts in clauses (3) to (6) 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, 2021, for agricultural
growth, research, and innovation grants are
available until June 30, 2024.

The base amount for the agricultural growth,
research, and innovation program is
$14,693,000 in fiscal year 2022 and
$14,693,000 in fiscal year 2023, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.

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

Sec. 4. new text begin FARM SAFETY GRANT AND OUTREACH; APPROPRIATION.
new text end

new text begin (a) $100,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of agriculture for farm safety grants and outreach programs under Minnesota Statutes,
section 17.1195. Of this amount, $50,000 is for grain storage facility safety grants, and
$50,000 is for (1) outreach, which may include creating and presenting a grain storage
facility safety curriculum, and (2) awarding grants under paragraph (b). This is a onetime
appropriation.
new text end

new text begin (b) The commissioner of agriculture may award grants to the Board of Regents of the
University of Minnesota or the Board of Trustees of the Minnesota State Colleges and
Universities to design digital applications that allow a user to remotely power off a grain
storage facility via cell phone or electronic device. Any digital applications created as a
result of this grant must be made available to the public at no cost. By January 15, 2021,
the commissioner shall report on the grants issued under this appropriation to the members
of the legislative committees with jurisdiction over agriculture finance and higher education
finance. By February 1, 2022, a recipient of a grant for this purpose is requested to report
to the commissioner of agriculture and the members of the legislative committees with
jurisdiction over agriculture finance and higher education finance regarding the digital
application produced as a result of the grant.
new text end

Sec. 5. new text begin APPROPRIATIONS; RESPONSE TO COVID-19 CRISIS.
new text end

new text begin Subdivision 1. new text end

new text begin Farm loan origination fee grants. new text end

new text begin (a) $175,000 in fiscal year 2020 is
appropriated from the coronavirus relief federal fund to the commissioner of agriculture for
grants to eligible farmers who have been approved for farm debt restructuring loans
guaranteed by the United States Department of Agriculture (USDA), Farm Service Agency
or issued under a loan program administered by the Rural Finance Authority. The
commissioner must award an eligible farmer a grant in an amount equal to 50 percent of
the loan origination fee amount required for the farmer to obtain the USDA, Farm Service
Agency guaranteed loan or Rural Finance Authority program loan.
new text end

new text begin (b) For purposes of this section, "eligible farmer" means an individual who regularly
participates in physical labor or operations management in the individual's farming operation
and files "Schedule F" as part of the person's annual Form 1040 filing with the United States
Internal Revenue Service or a family farm organized under Minnesota Statutes, section
500.24, if the individual or family farm:
new text end

new text begin (1) has a total net worth of less than $800,000 in calendar year 2020; and
new text end

new text begin (2) is either in mediation proceedings under Minnesota Statutes, chapter 583, or has
received a mediation notice under Minnesota Statutes, section 583.26, subdivision 1,
paragraph (a).
new text end

new text begin (c) The commissioner must give first priority to grant applicants who are currently in
mediation under Minnesota Statutes, chapter 583, and must give second priority to grant
applicants who have received a mediation notice under Minnesota Statutes, section 583.26,
subdivision 1, paragraph (a).
new text end

new text begin (d) The amount appropriated under this subdivision is onetime.
new text end

new text begin (e) The commissioner may use up to ten percent of the amount appropriated under this
section to administer the grant program.
new text end

new text begin Subd. 2. new text end

new text begin Farm advocate services. new text end

new text begin $60,000 in fiscal year 2020 is appropriated from the
coronavirus relief federal fund to the commissioner of agriculture for additional farm
advocate services in response to the COVID-19 crisis. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Retail food handler safety. new text end

new text begin (a) $125,000 in fiscal year 2020 is appropriated
from the coronavirus relief federal fund to the commissioner of agriculture for grants to
retail food handlers, as described in Minnesota Statutes, section 28A.05, paragraph (a). The
commissioner may award grants for recipients to execute requirements, guidance, and
recommendations related to the infectious disease known as COVID-19 provided by the
Centers for Disease Control and Prevention and the Minnesota Department of Health, and
to develop safety procedures, update and retrofit retail locations, purchase personal protective
equipment for employees, and educate the public on the need to follow safety procedures.
This is a onetime appropriation.
new text end

new text begin (b) Grants under this subdivision equal $500 for stores that qualify as retail food handlers.
The commissioner must not award a business with multiple eligible locations more than
$2,000 in total grants. Applicants must provide information to the commissioner on how
grant money will be used to ensure safety of Minnesotans from COVID-19.
new text end

new text begin Subd. 4. new text end

new text begin Expanded meat and poultry processing grants. new text end

new text begin $100,000 in fiscal year 2020
is appropriated from the coronavirus relief federal fund to the commissioner of agriculture
for grants to independently owned or employee-owned meat and poultry processors that
may also operate as a retail seller, to expand their processing operations to help make up
the loss of processing animals as a result of the temporary closing or operation reductions
of other processing facilities due to the COVID-19 crisis.
new text end

new text begin Subd. 5. new text end

new text begin Rural mental health services and outreach. new text end

new text begin $40,000 in fiscal year 2020 is
appropriated from the coronavirus relief federal fund to the commissioner of agriculture for
additional community outreach on farms and rural mental health services, including suicide
prevention training, mental health awareness training for farm and rural adolescents, and
mental health forums in response to the COVID-19 crisis.
new text end

new text begin Subd. 6. new text end

new text begin COVID-19 assistance to farmers and value-added businesses. new text end

new text begin $100,000 in
fiscal year 2020 is appropriated from the coronavirus relief federal fund to the commissioner
of agriculture for assistance to farmers and value-added agricultural businesses whose
markets and operations were negatively impacted by COVID-19.
new text end

new text begin Subd. 7. new text end

new text begin Eligible expenditure from the coronavirus relief fund. new text end

new text begin (a) No money in this
section may be spent until the commissioner of management and budget determines that
the appropriations in this section are an eligible use of the coronavirus relief fund.
new text end

new text begin (b) The commissioner may transfer funds between the appropriations under subdivisions
4 and 6 based on need, the availability of nonstate funds, or other factors.
new text end

new text begin (c) The appropriations in this section are available until December 30, 2020.
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