HF 473

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/14/2013 04:31pm

A bill for an act
relating to agriculture; establishing the governor's budget for agriculture;
appropriating money to the Department of Agriculture, the Board of Animal
Health, and the Agricultural Utilization Research Institute; modifying provisions
related to animal waste technicians; making technical changes; amending
Minnesota Statutes 2012, sections 17.03, subdivision 3; 17.1015; 18C.430;
18C.433, subdivision 1.

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

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2014 new text end		new text begin 2015 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 39,259,000 new text end	new text begin $ new text end	new text begin 39,259,000 new text end	new text begin $ new text end	new text begin 78,518,000 new text end
new text begin Agricultural new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 776,000 new text end
new text begin Remediation new text end	new text begin $ new text end	new text begin 800,000 new text end	new text begin $ new text end	new text begin 800,000 new text end	new text begin $ new text end	new text begin 1,600,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 40,447,000 new text end	new text begin $ new text end	new text begin 40,447,000 new text end	new text begin $ new text end	new text begin 80,894,000 new text end

Sec. 2. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2014" and "2015" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
"The biennium" is fiscal years 2014 and 2015.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2014 new text end		new text begin 2015 new text end

Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 32,823,000 new text end

new text begin $ new text end

new text begin 32,823,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 31,635,000 new text end	new text begin 31,635,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end
new text begin Agricultural new text end	new text begin 800,000 new text end	new text begin 800,000 new text end

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

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin 12,283,000 new text end

new text begin 12,283,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 11,895,000 new text end	new text begin 11,895,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin $388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
new text end

new text begin $75,000 the first year and $75,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statues,
section 3.737. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
new text end

new text begin $75,000 the first year and $75,000 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.
new text end

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

new text begin $335,000 the first year and $335,000 the
second year are for an increase in the
operating budget for the laboratory services
division.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 3,062,000 new text end

new text begin 3,062,000 new text end

new text begin $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, 2015, for Minnesota
grown grants in this paragraph are available
until June 30, 2017.
new text end

new text begin Up to $100,000 each year of this
appropriation may be used for grants to
farmers for demonstration projects involving
sustainable agriculture as authorized in
Minnesota Statutes, section 17.116. Of the
amount for grants, up to $20,000 may be
used for dissemination of information about
the demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2015, for sustainable
agriculture grants in this paragraph are
available until June 30, 2017.
new text end

new text begin $10,000 the first year and $10,000 the second
year are 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. Annual
cost-share payments must be two-thirds of the
cost of the certification or $350, whichever
is less. A certified organic operation
is eligible to receive annual cost-share
payments for up to five years. In any year
when federal organic cost-share program
funds are available or when there is any
excess appropriation in either fiscal year, the
commissioner may allocate these funds for
organic market and program development,
including organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research or
demonstration. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.
new text end

new text begin Subd. 4. new text end new text begin Bioenergy and Value-Added Agriculture new text end

new text begin 10,235,000 new text end

new text begin 10,235,000 new text end

new text begin $10,235,000 in the first year and $10,235,000
in the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2015, for
agricultural growth, research, and innovation
grants in this paragraph are available until
June 30, 2017.
new text end

new text begin Funds in this appropriation may be used
for bioenergy grants. The NextGen
Energy Board, established in Minnesota
Statutes, section 41A.105, shall make
recommendations to the commissioner on
grants for owners of Minnesota facilities
producing bioenergy, organizations that
provide for on-station, on-farm field scale
research and outreach to develop and test
the agronomic and economic requirements
of diverse stands of prairie plants and other
perennials for bioenergy systems or grants
for certain nongovernmental entities. For
the purposes of this paragraph, "bioenergy"
includes transportation fuels derived from
cellulosic material, as well as the generation
of energy for commercial heat, industrial
process heat, or electrical power from
cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for the
development of business plans and structures
related to community ownership of eligible
bioenergy facilities together may not exceed
$150,000. The board shall make a good-faith
effort to select projects that have merit, and,
when taken together, represent a variety of
bioenergy technologies, biomass feedstocks,
and geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at
the request of the commissioner. No later
than February 1, 2015, the commissioner
shall report on the projects funded under this
appropriation to the legislative committees
with jurisdiction over agriculture finance.
new text end

new text begin Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 7,243,000 new text end

new text begin 7,243,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 6,443,000 new text end	new text begin 6,443,000 new text end
new text begin Agricultural new text end	new text begin 800,000 new text end	new text begin 800,000 new text end

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

new text begin $47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
new text end

new text begin $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.
new text end

new text begin $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
new text end

new text begin $108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
new text end

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of 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 Second Harvest 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 (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. 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 receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
new text end

new text begin $94,000 the first year and $94,000 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 farm business
management programs at Central Lakes
College and Ridgewater College.
new text end

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

new text begin Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2015, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.
new text end

Sec. 4. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 4,841,000 new text end

new text begin $ new text end

new text begin 4,841,000 new text end

new text begin $100,000 the first year and $100,000 the
second year are for a program to control
paratuberculosis (Johne's disease) in
domestic bovine herds.
new text end

new text begin $389,000 the first year and $389,000 the
second year are for the purposes of cervidae
inspection as authorized in Minnesota
Statutes, section 35.155.
new text end

Sec. 5. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 2,783,000 new text end

new text begin $ new text end

new text begin 2,783,000 new text end

new text begin Money in this appropriation is available for
technical assistance and technology transfer
to bioenergy crop producers and users.
new text end

Sec. 6.

Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:

Subd. 3.

Cooperation with federal agencies.

(a) The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.

(b) The commissioner may apply for, receive, and disburse federal funds made
available to the state by federal law or regulation for any purpose related to the powers and
duties of the commissioner. All money received by the commissioner under this paragraph
shall be deposited in the state treasury and is appropriated to the commissioner for the
purposes for which it was received. new text begin Money made available under this paragraph may
be paid pursuant to applicable federal regulations and rate structures. new text end Money received
under this paragraph does not cancel and is available for expenditure according to federal
law. The commissioner may contract with and enter into grant agreements with persons,
organizations, educational institutions, firms, corporations, other state agencies, and any
agency or instrumentality of the federal government to carry out agreements made with
the federal government relating to the expenditure of money under this paragraph. Bid
requirements under chapter 16C do not apply to contracts under this paragraph.

Sec. 7.

Minnesota Statutes 2012, section 17.1015, is amended to read:

17.1015 PROMOTIONAL EXPENDITURES.

In order to accomplish the purposes of section 17.101, the commissioner may
participate jointly with private persons in appropriate programs and projects and may enter
into contracts to carry out those programs and projects. The contracts may not include
the acquisition of land or buildings and are not subject to the provisions of chapter 16C
relating to competitive bidding.

The commissioner may spend money appropriated for the purposes of section
17.101 new text begin in the same manner as private persons, firms, corporations, and associations make
expenditures for these purposes new text end , and expenditures made pursuant to section 17.101 for
food, lodging, or travel are not governed by the travel rules of the commissioner of
management and budget.

Sec. 8.

Minnesota Statutes 2012, section 18C.430, is amended to read:

18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.

Subdivision 1.

Requirement.

(a) deleted text begin Except as provided in paragraph (c), after March
1, 2000, deleted text end A person may not manage or apply animal wastes new text begin to the land new text end for hire deleted text begin without a
valid commercial animal waste technician license. This section does not apply to a person
managing or applying animal waste on land managed by the person's employer. deleted text end new text begin :
new text end

new text begin (1) without a valid commercial animal waste technician applicator license;
new text end

new text begin (2) without a valid commercial animal waste technician site manager license; or
new text end

new text begin (3) as a sole proprietorship, company, partnership, or corporation unless a
commercial animal waste technician company license is held and a commercial animal
waste technical site manager is employed by the entity.
new text end

(b) A person managing or applying animal wastes for hire must have a valid
license identification card when managing or applying animal wastes for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.

(c) deleted text begin A person who is not a licensed commercial animal waste technician who has had
at least two hours of training or experience in animal waste management may manage
or apply animal waste for hire under the supervision of a commercial animal waste
technician. deleted text end new text begin A commercial animal waste technician applicator must have a minimum of
two hours of certification training in animal waste management and may only manage or
apply animal waste for hire under the supervision of a commercial animal waste technician
site manager. The commissioner shall prescribe the conditions of the supervision and the
form and format required on the certification training.
new text end

new text begin (d) This section does not apply to a person managing or applying animal waste on
land managed by the person's employer.
new text end

Subd. 2.

Responsibility.

A person required to be licensed under this section who
performs animal waste management or application for hire or who employs a person to
perform animal waste management or application for compensation is responsible for
proper management or application of the animal wastes.

Subd. 3.

License.

new text begin (a) new text end A commercial animal waste technician license new text begin , including
applicator, site manager, and company new text end :

(1) is valid for deleted text begin three years deleted text end new text begin one year new text end and expires on December 31 of the deleted text begin third deleted text end year for
which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

(3) must be prominently displayed to the public in the commercial animal waste
technician's place of business.

new text begin (b) The commercial animal waste technician company license number assigned by
the commissioner must appear on the application equipment when a person manages
or applies animal waste for hire.
new text end

Subd. 4.

Application.

(a) A person must apply to the commissioner for a commercial
animal waste technician license on forms and in the manner required by the commissioner
and must include the application fee. The commissioner shall prescribe and administer
an examination or equivalent measure to determine if the applicant is eligible for the
commercial animal waste technician license new text begin , site manager license or applicator license new text end .

(b) The commissioner of agriculture, in cooperation with the new text begin University of
new text end Minnesota Extension deleted text begin Service deleted text end and appropriate educational institutions, shall establish and
implement a program for training and licensing commercial animal waste technicians.

Subd. 5.

Renewal application.

new text begin (a) new text end A person must apply to the commissioner of
agriculture to renew a commercial animal waste technician license and must include the
application fee. The commissioner may renew a commercial animal waste technician
new text begin applicator or site manager new text end license, subject to reexamination, attendance at workshops
approved by the commissioner, or other requirements imposed by the commissioner to
provide the animal waste technician with information regarding changing technology and
to help ensure a continuing level of competence and ability to manage and apply animal
wastes properly. The applicant may renew a commercial animal waste technician license
within 12 months after expiration of the license without having to meet initial testing
requirements. The commissioner may require additional demonstration of animal waste
technician qualification if a person has had a license suspended or revoked or has had a
history of violations of this section.

new text begin (b) An applicant who meets renewal requirements by reexamination instead
of attending workshops must pay a fee for the reexamination as determined by the
commissioner.
new text end

Subd. 6.

Financial responsibility.

(a) A commercial animal waste technician
license may not be issued unless the applicant furnishes proof of financial responsibility.
The financial responsibility may be demonstrated by (1) proof of net assets equal to or
greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of
the applicant's license. The commissioner shall immediately suspend the license of a
person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy
or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must
be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7.

Application fee.

new text begin (a) new text end A person initially applying for or renewing
a commercial animal waste technician new text begin applicator new text end license must pay a nonrefundable
deleted text begin application deleted text end fee of deleted text begin $50 and a fee of $10 for each additional identification card requested.
deleted text end new text begin $25. A person initially applying for or renewing a commercial animal waste technician
site manager license must pay a nonrefundable application fee of $50. A person initially
applying for or renewing a commercial animal waste technician company license must
pay a nonrefundable application fee of $100.
new text end

new text begin (b) A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.
new text end

new text begin (c) An application for a duplicate commercial animal waste technician license must
be accompanied by a nonrefundable fee of $10.
new text end

Sec. 9.

Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Beginning January 1, 2006, only a commercial
animal waste technician deleted text begin , deleted text end new text begin site manager or commercial animal waste technician applicator
new text end may apply animal waste from a feedlot that:

(1) has a capacity of 300 animal units or more; and

(2) does not have an updated manure management plan that meets the requirements
of Pollution Control Agency rules.