HF 4490

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/13/2020 03:24pm

A bill for an act
relating to agriculture; providing supplemental agriculture-related appropriations
for various agriculture-related purposes including appropriations for farm and rural
mental health services, farmers assistance, farm advocate services, farm safety,
veterinary diagnostic equipment, farm loan origination fee assistance, and retail
food handler safety; providing farm safety grant and outreach programs; making
technical changes; amending Minnesota Statutes 2018, section 31.175; Laws 2019,
First Special Session chapter 1, article 1, section 2, subdivisions 3, 5, as amended;
proposing coding for new law in Minnesota Statutes, chapter 17.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision 3,
is amended to read:

Subd. 3. Agricultural Marketing and Development

3,996,000

deleted text begin 3,996,000 deleted text end new text begin 4,036,000 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, 2021, for Minnesota grown grants in this
paragraph are available until June 30, 2023.

(b) $100,000 the first year and $100,000 the
second year are to expand domestic and
international marketing opportunities for
farmers and value-added processors, including
staffing to facilitate farm-to-school sales and
new markets for Minnesota-grown hemp.

(c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter 216,
section 7, subdivision 2, and Laws 2001, First
Special Session chapter 2, section 9,
subdivision 2. The commissioner may allocate
the available sums among permissible
activities, including efforts to improve the
quality of milk produced in the state, in the
proportions that the commissioner deems most
beneficial to Minnesota's dairy farmers. The
commissioner must submit a detailed
accomplishment report and a work plan
detailing future plans for, and anticipated
accomplishments from, expenditures under
this program to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance on or before the start of
each fiscal year. If significant changes are
made to the plans in the course of the year,
the commissioner must notify the chairs and
ranking minority members.

(d) $50,000 the first year and deleted text begin $50,000 deleted text end new text begin $90,000 new text end
the second year are for additional community
outreach on farms and rural mental health
services including the 24-hour hotline, service
availability, new text begin suicide prevention training,
mental health awareness and training for farm
and rural adolescents, new text end and mental health
forums. Of this appropriation, $12,000 each
year is to provide professional development
training for Farm Business Management
instructors in the Minnesota State system. new text begin The
additional $40,000 appropriated in the second
year is for outreach and services that are
eligible for federal reimbursement under the
Coronavirus Aid, Relief, and Economic
Security (CARES) Act, Public Law 116-136,
title V. new text end The appropriations under this
paragraph are onetime.

(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.

Sec. 2.

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

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

deleted text begin 23,653,000 deleted text end new text begin 23,853,000 new text end

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, up to $1,000,000 deleted text begin each deleted text end
new text begin the first new text end year deleted text begin is deleted text end new text begin and $900,000 the second year
are new text end for research on avian influenza new text begin ,
salmonella, and other turkey-related diseases new text end . new text begin
$675,000 of the $900,000 allocation in the
second year is for Veterinary Diagnostic
Laboratory testing equipment and supplies
necessary to respond to avian influenza,
African swine fever, or other poultry and
livestock 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 this appropriation is
$9,300,000 in fiscal year 2022 and $9,300,000
in fiscal year 2023. The base allocation for
avian influenza research is up to $1,000,000
in fiscal year 2022 and up to $1,000,000 in
fiscal year 2023.
new text end

(b) deleted text begin $14,353,000 deleted text end new text begin $14,553,000 new text end 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;
deleted text begin and
deleted text end

(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 new text begin ; and
new text end

new text begin (7) $200,000 the first year is 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 This
assistance must be provided in a manner that
is eligible for federal reimbursement under the
Coronavirus Aid, Relief, and Economic
Security (CARES) Act, Public Law 116-136,
title V.
new text end

The amounts in clauses (3) to deleted text begin (6) deleted text end new text begin (7) new text end 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.

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.

Laws 2019, First Special Session chapter 1, article 1, section 2, subdivision 5, as
amended by Laws 2020, chapter 74, article 1, section 3, is amended to read:

Subd. 5. Administration and Financial Assistance

8,760,000

deleted text begin 7,508,000 deleted text end new text begin 7,568,000 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) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation, and is available until
June 30, 2021.

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

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

(e) $267,000 the first year and deleted text begin $267,000 deleted text end
new text begin $327,000 new text end the second year are for farm
advocate services. new text begin The additional $60,000
appropriated in the second year is for farm
advocate services that are eligible for federal
reimbursement under the Coronavirus Aid,
Relief, and Economic Security (CARES) Act,
Public Law 116-136, title V. The base for this
appropriation is $267,000 in fiscal year 2022
and $267,000 in fiscal year 2023.
new text end

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

(g) $250,000 the first year and $250,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for statewide mental health
counseling support to farm families and
business operators through the Minnesota State
Agricultural Centers of Excellence. South
Central College and Central Lakes College
shall serve as the fiscal agents. The base
amount for this appropriation in fiscal year
2022 and later is $238,000.

(h) $2,950,000 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,
which must be surplus products when
practicable, 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. To the extent
practicable, protein products purchased under
the grants must be acquired from Minnesota
processors and producers and based on
low-cost bids.

Of the amount appropriated under this
paragraph, at least $600,000 each year must
be allocated under clause (1); and $1,250,000
of the onetime money appropriated in the first
year must be allocated under clause (1) or (3).
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. The base for this appropriation is
$1,650,000 in fiscal year 2022 and $1,650,000
in fiscal year 2023.

(i) $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.

(j) $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.

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

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 FARM CRISIS LOAN ORIGINATION FEE GRANT PROGRAM;
APPROPRIATION.
new text end

new text begin (a) $175,000 in fiscal year 2020 is appropriated from the general 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 section is onetime and is available until June
30, 2023.
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 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 RETAIL FOOD HANDLER SAFETY; APPROPRIATION.
new text end

new text begin (a) $125,000 in fiscal year 2020 is appropriated from the general 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 adjust the grant amounts specified under
this section based on the total amount of money requested in the applications, and the
availability of federal money for a similar purpose. 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 and is available until June 30, 2021.
new text end

new text begin (b) Grants under this section 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 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 ALTERNATE APPROPRIATION.
new text end

new text begin The commissioner of management and budget, in consultation with the commissioner
of agriculture, must determine whether any of the expenditures an appropriation is made
for under this act is an eligible use of federal funding received under the Coronavirus Aid,
Relief, and Economic Security (CARES) Act, Public Law 116-136, title V. If the
commissioner of management and budget determines an expenditure is eligible for funding
under title V of the CARES Act, the amount for the eligible expenditure is appropriated
from the fund or account where CARES Act money has been deposited and the corresponding
amount appropriated under this act cancels to the general fund.
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

ARTICLE 2

STATUTORY PROVISIONS

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