SF 1859

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/20/2019 09:24am

A bill for an act
relating to agriculture; making policy and technical changes to various agricultural
provisions including provisions related to aquaculture, feedlots, pesticides, hemp,
food handlers, eggs, milk, cheese, bioincentive programs, loan programs, and other
agriculture provisions; amending Minnesota Statutes 2018, sections 17.494;
17.4982, by adding subdivisions; 18B.34, subdivision 5; 18C.425, subdivision 6;
18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 2; 18H.10;
25.33, subdivision 8; 28A.04, subdivision 1; 28A.05; 28A.075; 28A.0752,
subdivisions 1, 2; 28A.08, subdivision 3; 29.26; 32D.13, by adding a subdivision;
32D.20, subdivision 2; 32D.22; 34A.11, subdivision 7; 41A.15, subdivisions 2,
10, by adding a subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17, subdivisions
1, 2, 3; 41A.18, subdivisions 1, 2, 3; 41B.02, subdivision 10a; 41B.0391,
subdivision 1; 41B.047, subdivisions 1, 3; 41B.049, subdivision 5; 41B.055,
subdivision 3; 41B.057, subdivision 3; 116.06, by adding a subdivision; 116.07,
subdivisions 7, 7d; 116.0714; proposing coding for new law in Minnesota Statutes,
chapter 17; repealing Minnesota Statutes 2018, section 41A.15, subdivisions 2a,
2b.

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

Section 1.

Minnesota Statutes 2018, section 17.494, is amended to read:

17.494 AQUACULTURE PERMITS; RULES.

new text begin (a) new text end The commissioner shall act as permit or license coordinator for aquatic farmers and
shall assist aquatic farmers to obtain licenses or permits.

deleted text begin By July 1, 1992, deleted text end new text begin (b) new text end A state agency issuing multiple permits or licenses for aquaculture
shall consolidate the permits or licenses required for every aquatic farm location. The
Department of Natural Resources transportation permits are exempt from this requirement.
State agencies shall adopt rules or issue commissioner's orders that establish permit and
license requirements, approval timelines, and compliance standards. new text begin Saltwater aquatic farms,
as defined in section 17.4982, and processing facilities for saltwater aquatic life, as defined
in section 17.4982, must be classified as agricultural operations for purposes of any
construction, discharge, or other permit issued by the Pollution Control Agency.
new text end

Nothing in this section modifies any state agency's regulatory authority over aquaculture
production.

Sec. 2.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20a. new text end

new text begin Saltwater aquaculture. new text end

new text begin "Saltwater aquaculture" means the commercial
propagation and rearing of saltwater aquatic life primarily for consumption as human food.
new text end

Sec. 3.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20b. new text end

new text begin Saltwater aquatic farm. new text end

new text begin "Saltwater aquatic farm" means a facility used for
saltwater aquaculture including but not limited to artificial ponds, vats, tanks, raceways,
and other facilities that an aquatic farmer owns or has exclusive control of for the sole
purpose of producing saltwater aquatic life.
new text end

Sec. 4.

Minnesota Statutes 2018, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20c. new text end

new text begin Saltwater aquatic life. new text end

new text begin "Saltwater aquatic life" means aquatic species that
are saltwater obligates or perform optimally when raised in salinities closer to that of natural
seawater and need saltwater to survive. Saltwater aquatic life includes but is not limited to
crustaceans.
new text end

Sec. 5.

new text begin [17.499] TRANSPORTATION OR IMPORTATION OF SALTWATER
AQUATIC LIFE; QUARANTINE REQUIREMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The legislature finds that it is in the public interest to increase
private saltwater aquaculture production and processing in this state under the coordination
of the commissioner of agriculture. Additional private production will reduce dependence
on foreign suppliers and benefit the rural economy by creating new jobs and economic
activity.
new text end

new text begin Subd. 2. new text end

new text begin Transportation permit. new text end

new text begin (a) Notwithstanding the requirements in section
17.4985, saltwater aquatic life transportation and importation requirements are governed
by this section. A transportation permit is required before importation or intrastate
transportation of saltwater aquatic life not exempted under subdivision 3. A transportation
permit may be used for multiple shipments within the 30-day term of the permit if the source
and the destination are the same. Transportation permits must be obtained from the
commissioner before shipment of saltwater aquatic life.
new text end

new text begin (b) An application for a transportation permit must be made in the form required by the
commissioner. The commissioner may reject an incomplete application.
new text end

new text begin (c) An application for a transportation permit must be accompanied by satisfactory
evidence, as determined by the commissioner, that the shipment is free of any nonindigenous
species of animal other than the saltwater aquatic species and either:
new text end

new text begin (1) the facility from which the saltwater aquatic life originated has provided
documentation of 36 or more consecutive months of negative testing by an approved
laboratory as free of any disease listed by OIE - the World Organisation for Animal Health
for that species following the testing guidelines outlined in the OIE Aquatic Animal Health
Code for crustaceans or the AFS Fish Health Blue Book for other species, as appropriate;
or
new text end

new text begin (2) the saltwater aquatic life to be imported or transported includes documentation of
negative testing for that specific lot by an approved laboratory as free of any disease listed
by OIE - the World Organisation for Animal Health for crustaceans or in the AFS Fish
Health Blue Book for other species, as appropriate.
new text end

new text begin If a shipment authorized by the commissioner under clause (1) includes saltwater aquatic
life that originated in a foreign country, the shipment must be quarantined at the receiving
facility according to a quarantine plan approved by the commissioner. A shipment authorized
by the commissioner under clause (2) must be quarantined at the receiving facility according
to a quarantine plan approved by the commissioner.
new text end

new text begin (d) For purposes of this subdivision, "approved laboratory" means a laboratory approved
by the commissioner or the United States Department of Agriculture, Animal and Plant
Health Inspection Services.
new text end

new text begin (e) No later than 14 calendar days after a completed transportation permit application
is received, the commissioner shall approve or deny the transportation permit application.
new text end

new text begin (f) A copy of the transportation permit must accompany a shipment of saltwater aquatic
life while in transit and must be available for inspection by the commissioner.
new text end

new text begin (g) A vehicle used by a licensee for transporting aquatic life must be identified with the
license number and the licensee's name and town of residence as it appears on the license.
A vehicle used by a licensee must have identification displayed so that it is readily visible
from either side of the vehicle in letters and numbers not less than 2-1/2 inches high and
three-eighths inch wide. Identification may be permanently affixed to vehicles or displayed
on removable plates or placards placed on opposite doors of the vehicle or on the tanks
carried on the vehicle.
new text end

new text begin (h) An application to license a vehicle for brood stock or larvae transport or for use as
a saltwater aquatic life vendor that is received by the commissioner is a temporary license
until approved or denied by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Exemptions. new text end

new text begin (a) A transportation permit is not required to transport or import
saltwater aquatic life:
new text end

new text begin (1) previously processed for use as food or other purposes unrelated to propagation;
new text end

new text begin (2) transported directly to an outlet for processing as food or for other food purposes if
accompanied by shipping documents;
new text end

new text begin (3) that is being exported if accompanied by shipping documents;
new text end

new text begin (4) that is being transported through the state if accompanied by shipping documents;
or
new text end

new text begin (5) transported intrastate within or between facilities licensed for saltwater aquaculture
by the commissioner if accompanied by shipping documents.
new text end

new text begin (b) Shipping documents required under paragraph (a) must include the place of origin,
owner or consignee, destination, number, species, and satisfactory evidence, as determined
by the commissioner, of the disease-free certification required under subdivision 2, paragraph
(c), clauses (1) and (2).
new text end

Sec. 6.

Minnesota Statutes 2018, section 18B.34, subdivision 5, is amended to read:

Subd. 5.

Fees.

(a) A person initially applying for or renewing a noncommercial applicator
license must pay a nonrefundable application fee of $50, except an applicant who deleted text begin is deleted text end new text begin uses
pesticides in the course of performing official duties as: (1) new text end a government new text begin employee; (2) a
contractor providing rest area custodial services for the commissioner of transportation; new text end or new text begin
(3) a new text end Conservation Corps Minnesota employee deleted text begin who uses pesticides in the course of
performing official duties deleted text end must pay a nonrefundable application fee of $10.

(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.

(c) An application for a duplicate noncommercial applicator license must be accompanied
by a nonrefundable application fee of $10.

Sec. 7.

Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:

Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in the
state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall
pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee of
39 cents per ton, and until June 30, deleted text begin 2019 deleted text end new text begin 2029 new text end , an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a minimum of
$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. Products sold or distributed to manufacturers or
exchanged between them are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 8.

Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2030 new text end .

Sec. 9.

Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2030 new text end .

Sec. 10.

Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:

Subd. 2.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2030 new text end .

Sec. 11.

Minnesota Statutes 2018, section 18H.10, is amended to read:

18H.10 STORAGE OF NURSERY STOCK.

(a) All nursery stock must be kept and displayed under conditions of temperature, light,
and moisture sufficient to maintain the viability and vigor of the nursery stock.

(b) Packaged dormant nursery stock must be stored under conditions that retard growth,
prevent etiolated growth, and protect its viability.

(c) Balled and burlapped nursery stock being held for sale to the public must be kept in
a moisture-holding material approved by the commissioner and not toxic to plants. The
moisture-holding material must adequately cover and protect the ball of earth and must be
kept moist at all times. new text begin The commissioner may approve alternative nursery stock management
practices to maintain the viability of balled and burlapped stock.
new text end

Sec. 12.

Minnesota Statutes 2018, section 25.33, subdivision 8, is amended to read:

Subd. 8.

Drug.

"Drug" means new 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 humans new text begin ; new text end and new text begin (2) new text end articles
other than feed intended to affect the structure or any function of the animal body.

Sec. 13.

Minnesota Statutes 2018, 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 end A 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 end new 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. 14.

Minnesota Statutes 2018, 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 end new 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. 15.

Minnesota Statutes 2018, section 28A.075, is amended to read:

28A.075 DELEGATION TO LOCAL BOARD OF HEALTH.

(a) At the request of a local board of health that licensed and inspected grocery and
convenience stores on January 1, 1999, the commissioner must enter into agreements before
January 1, 2001, with local boards of health to delegate to the appropriate local board of
health the licensing and inspection duties of the commissioner pertaining to retail food
handlers that are grocery or convenience stores. At the request of a local board of health
that licensed and inspected part of any grocery or convenience store on January 1, 1999,
the commissioner must enter into agreements before July 1, 2001, with local boards of
health to delegate to the appropriate local board of health the licensing and inspection duties
of the commissioner pertaining to retail food handlers that are grocery or convenience stores.
At any time thereafter, the commissioner may enter into an agreement with a local board
of health that licensed and inspected all or part of any grocery or convenience store on
January 1, 1999, to delegate to the appropriate local board of health the licensing and
inspection duties of the commissioner pertaining to retail food handlers deleted text begin that are deleted text end new text begin such as new text end
grocery or convenience stores. Retail deleted text begin grocery or convenience stores deleted text end new text begin food handlers new text end inspected
under the state meat inspection program of chapter 31A are exempt from delegation.

(b) A local board of health must adopt an ordinance consistent with the Minnesota Food
Code, Minnesota Rules, chapter 4626, for all of its jurisdiction to regulate deleted text begin grocery and
convenience stores deleted text end new text begin retail food handlers new text end and the ordinance (Food Code) must not be in conflict
with standards set in law or rule.

(c) A fee to recover the estimated costs of enforcement of this chapter must be established
by ordinance and must be fair, reasonable, and proportionate to the actual cost of the licensing
and inspection services. The fee must only be maintained and used for the estimated costs
of enforcing this chapter.

Sec. 16.

Minnesota Statutes 2018, section 28A.0752, subdivision 1, is amended to read:

Subdivision 1.

Agreements to perform duties of commissioner.

(a) Agreements to
delegate licensing and inspection duties pertaining to retail deleted text begin grocery or convenience stores deleted text end new text begin
food handlers new text end shall include licensing, inspection, reporting, and enforcement duties authorized
under sections 17.04, 29.21, 29.23, 29.235, 29.236, 29.237, 29.24, 29.25, 29.26, 29.27, and
30.49, appropriate sections of the Minnesota Food Law, chapters 31 and 34A, and applicable
Minnesota food rules.

(b) Agreements are subject to subdivision 3.

(c) This subdivision does not affect agreements entered into under section 28A.075 or
current cooperative agreements which base inspections and licensing responsibility on the
firm's most predominant mode of business.

Sec. 17.

Minnesota Statutes 2018, section 28A.0752, subdivision 2, is amended to read:

Subd. 2.

Approval of agreements.

An agreement to delegate licensing and inspection
of retail food handlers deleted text begin that are grocery or convenience stores deleted text end to a community health board
must be approved by the commissioner and is subject to subdivision 3.

Sec. 18.

Minnesota Statutes 2018, 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 handler new 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. 19.

Minnesota Statutes 2018, 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 graded deleted text end new text begin Grade AA new text end eggs held 31 days past the coded pack date new 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. 20.

Minnesota Statutes 2018, 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 must not pick up milk from a
farm that has a bulk tank that is not in proper working order.
new text end

new text begin (b) Milk must not be stored for longer than 72 hours at a farm before the milk is picked
up by a milk hauler 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. 21.

Minnesota Statutes 2018, 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 labeled new text begin (1) new text end with the plant number where the product
was produced deleted text begin , deleted text end new text begin ; new text end or new text begin (2) new text end if produced in a state where official plant numbers are not assigned,
new text begin with new text end the name new text begin and address new text end of the manufacturer deleted text begin and the address of the plant where it was
manufactured deleted text end new text begin or distributor new text end .

Sec. 22.

Minnesota Statutes 2018, section 32D.22, is amended to read:

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

new text begin (a) new text end No 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 has been aged for 60
days or more.
new text end

Sec. 23.

Minnesota Statutes 2018, 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 begin disease deleted text end control measures
established by the commissioner.

Sec. 24.

Minnesota Statutes 2018, section 41A.15, subdivision 2, is amended to read:

Subd. 2.

Advanced biofuel.

"Advanced biofuel" deleted text begin has the meaning given in section
239.051, subdivision 1a. deleted text end new text begin means a renewable fuel, other than ethanol derived from corn
starch, that has lifecycle greenhouse gas emissions that are at least 50 percent less than
baseline lifecycle greenhouse gas emissions.
new text end

Sec. 25.

Minnesota Statutes 2018, 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. 26.

Minnesota Statutes 2018, section 41A.15, subdivision 10, is amended to read:

Subd. 10.

Renewable chemical.

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

Sec. 27.

Minnesota Statutes 2018, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text begin from Minnesota new text end at least 80 percent deleted text begin raw materials from Minnesota. deleted text end new text begin of the biomass
used to produce an advanced biofuel, except that, new text end if a facility is sited 50 miles or less from
the state border, deleted text begin raw materials deleted text end new text begin biomass used to produce an advanced biofuel new text end may be sourced
from new text begin outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
new text end within a 100-mile radius new text begin of the facility or from within Minnesota new 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 new text begin advanced new text end 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 deleted text begin 23,750 deleted text end new text begin 1,500 new text end MMbtu of new text begin advanced
new text end 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. 28.

Minnesota Statutes 2018, section 41A.16, subdivision 2, is amended to read:

Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments to
eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar deleted text begin or deleted text end new text begin , new text end
starch new text begin , oil, or animal fat new text end at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible biofuel producer in a fiscal year may
not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments
under this section to all eligible biofuel producers in a fiscal year may not exceed the amount
necessary for 17,100,000 MMbtu of biofuel production. deleted text begin The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.
deleted text end

(c) For purposes of this section, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer.

Sec. 29.

Minnesota Statutes 2018, section 41A.16, subdivision 4, is amended to read:

Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for advanced biofuel production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin
forest new text end biomass harvesting guidelines or the equivalent. All new text begin cellulosic new text end biomass from brushlands
must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new 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 begin the
new text end Sustainable Forestry Initiative, or new 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 begin stewardship deleted text end new text begin management new text end plan new text begin , as defined in section 290C.02,
subdivision 7, or its equivalent new text end .

Sec. 30.

Minnesota Statutes 2018, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this deleted text begin program deleted text end new text begin section new text end
must source new text begin from Minnesota new text end at least 80 percent deleted text begin biobased content from Minnesota. deleted text end new text begin of the
biomass used to produce a renewable chemical, except that, new text end if a facility is sited 50 miles or
less from the state border, deleted text begin biobased content must deleted text end new text begin biomass used to produce a renewable
chemical may new text end be sourced from new text begin outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from new text end within a 100-mile radius new text begin of the facility or from within Minnesota new text end .
deleted text begin Biobased 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 deleted text begin 750,000 deleted text end new text begin 250,000 new text end 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 deleted text begin 750,000 deleted text end new text begin 250,000 new text end
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. 31.

Minnesota Statutes 2018, 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. deleted text begin The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.
deleted text end

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 end new 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. 32.

Minnesota Statutes 2018, section 41A.17, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for renewable chemical production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin
forest new text end biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands
must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new 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 begin the
new text end Sustainable Forestry Initiative, or new 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 begin stewardship deleted text end new text begin management new text end plan new text begin , as defined in section 290C.02,
subdivision 7, or its equivalent new text end .

Sec. 33.

Minnesota Statutes 2018, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text begin from Minnesota new text end at least 80 percent deleted text begin raw materials from Minnesota. deleted text end new text begin of the biomass
used for biomass thermal production, except that, new text end if a facility is sited 50 miles or less from
the state border, deleted text begin raw materials should deleted text end new text begin biomass used for biomass thermal production may
new text end be sourced from new text begin outside of Minnesota, but only if at least 80 percent of the biomass is
sourced from new text end within a 100-mile radius new text begin of the facility, or from within Minnesota new text end . deleted text begin Raw
materials deleted text end new text begin Biomass new 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. 34.

Minnesota Statutes 2018, section 41A.18, subdivision 2, is amended to read:

Subd. 2.

Payment amounts; bonus; limits; blending.

(a) The commissioner shall make
payments to eligible producers of biomass thermal located in the state. The amount of the
payment for each producer's annual production is $5.00 per MMbtu of biomass thermal
production produced at a specific location for ten years after the start of production.

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

(c) Total payments under this section to an eligible thermal producer in a fiscal year
may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total
payments under this section to all eligible thermal producers in a fiscal year may not exceed
the amount necessary for 150,000 MMbtu of total thermal production. deleted text begin The commissioner
shall award payments on a first-come, first-served basis within the limits of available funding.
deleted text end

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass
thermal production facility, but only the percentage attributable to cellulosic material is
eligible to receive payment.

(e) For purposes of this section, an entity that holds a controlling interest in more than
one biomass thermal production facility is considered a single eligible producer.

Sec. 35.

Minnesota Statutes 2018, section 41A.18, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for biomass thermal production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin forest new text end
biomass harvesting guidelines or the equivalent. All new text begin cellulosic new text end biomass from deleted text begin brushland deleted text end new text begin
brushlands new text end must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass new text begin harvesting
new 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, the
Sustainable Forestry Initiative, or new text begin the new text end American Tree Farm new text begin System new 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 begin stewardship deleted text end new text begin management new text end plan new text begin , as defined in section 290C.02,
subdivision 7, or its equivalent new text end .

Sec. 36.

Minnesota Statutes 2018, section 41B.02, subdivision 10a, is amended to read:

Subd. 10a.

Livestock expansion.

"Livestock expansion" means new text begin the purchase of a
livestock farm or new text end improvements 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. 37.

Minnesota Statutes 2018, 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

(4) deleted text begin 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 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;

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

(v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

(vi) participates in a financial management program approved by the authority or the
commissioner of agriculture;

(vii) 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

(viii) has other qualifications as specified by the authority.

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

(e) "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.

(f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

(g) "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.

(h) "Resident" has the meaning given in section 290.01, subdivision 7.

(i) "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.

Sec. 38.

Minnesota Statutes 2018, 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 livestock deleted 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; deleted text begin or
deleted text end

(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 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (5) replace livestock, make building improvements, or cover the loss of revenue when
the replacement, improvements, or loss of revenue is due to the confirmed presence of a
highly contagious disease in a livestock operation located in Minnesota.
new text end

Sec. 39.

Minnesota Statutes 2018, 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 deleted text begin or deleted text end new text begin ; new text end (ii) due to the confirmed presence of the highly
pathogenic avian influenza in a commercial poultry or game flock located in Minnesota; new text begin or
(iii) due to a market disaster or emergency as determined by the authority;
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. 40.

Minnesota Statutes 2018, 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. 41.

Minnesota Statutes 2018, 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 $40,000 deleted text end new text begin $100,000 new 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. 42.

Minnesota Statutes 2018, 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 $45,000 deleted text end new text begin $100,000 new 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 $180,000 deleted text end new text begin $250,000 new text end , whichever is less. The interest rate on the loans must not
exceed six percent.

Sec. 43.

Minnesota Statutes 2018, section 116.06, is amended by adding a subdivision to
read:

new text begin Subd. 16a. new text end

new text begin Pastures. new text end

new text begin "Pastures" means areas, including winter feeding areas as part of
a grazing area, where grass or other growing plants are used for grazing of livestock and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season. "Pastures" also includes agricultural land that is used for growing crops
during the growing season and is used for grazing of livestock on vegetation or crop residues
during the winter. In either case, a cover of vegetation or crop residues is not required:
new text end

new text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
new text end

new text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices;
new text end

new text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture; and
new text end

new text begin (4) in sacrificial areas that are part of a larger pasture system and are used to temporarily
accommodate livestock and protect other pasture areas when adverse soil or weather
conditions pose a risk of damaging the pastures, and on which the vegetation is naturally
restored or replanted after the adverse soil or weather conditions are removed and the
livestock are moved to other areas of the pasture.
new text end

Sec. 44.

Minnesota Statutes 2018, section 116.07, subdivision 7, is amended to read:

Subd. 7.

Counties; processing applications for animal lot permits.

Any Minnesota
county board may, by resolution, with approval of the Pollution Control Agency, assume
responsibility for processing applications for permits required by the Pollution Control
Agency under this section for livestock feedlots, poultry lots or other animal lots. The
responsibility for permit application processing, if assumed by a county, may be delegated
by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the Pollution Control Agency;

(2) the receipt and examination of completed application forms, and the certification,
in writing, to the Pollution Control Agency either that the animal lot facility for which a
permit is sought by an applicant will comply with applicable rules and standards, or, if the
facility will not comply, the respects in which a variance would be required for the issuance
of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion
of an application.

(b) For the purposes of this subdivision, the term "processing" may include, at the option
of the county board, issuing, denying, modifying, imposing conditions upon, or revoking
permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject
to review, suspension, and reversal by the Pollution Control Agency. The Pollution Control
Agency shall, after written notification, have 15 days to review, suspend, modify, or reverse
the issuance of the permit. After this period, the action of the county board is final, subject
to appeal as provided in chapter 14. For permit applications filed after October 1, 2001,
section 15.99 applies to feedlot permits issued by the agency or a county pursuant to this
subdivision.

(c) For the purpose of administration of rules adopted under this subdivision, the
commissioner and the agency may provide exceptions for cases where the owner of a feedlot
has specific written plans to close the feedlot within five years. These exceptions include
waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural
event such as a precipitation event of greater magnitude than the 25-year, 24-hour event,
tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(e) In adopting and enforcing rules under this subdivision, the commissioner shall
cooperate closely with other governmental agencies.

(f) The Pollution Control Agency shall work with the Minnesota Extension Service, the
Department of Agriculture, the Board of Water and Soil Resources, producer groups, local
units of government, as well as with appropriate federal agencies such as the Natural
Resources Conservation Service and the Farm Service Agency, to notify and educate
producers of rules under this subdivision at the time the rules are being developed and
adopted and at least every two years thereafter.

(g) The Pollution Control Agency shall adopt rules governing the issuance and denial
of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section.
Pastures are exempt from the rules authorized under this paragraph new text begin , and no feedlot permit
shall include any terms or conditions that impose any requirements related to any pastures
located on, adjacent to, or in the vicinity of the feedlot new text end . A feedlot permit is not required for
livestock feedlots with more than ten but less than 50 animal units; provided they are not
in shoreland areas. A livestock feedlot permit does not become required solely because of
a change in the ownership of the buildings, grounds, or feedlot. These rules apply both to
permits issued by counties and to permits issued by the Pollution Control Agency directly.

(h) The Pollution Control Agency shall exercise supervising authority with respect to
the processing of animal lot permit applications by a county.

(i) Any new rules or amendments to existing rules proposed under the authority granted
in this subdivision, or to implement new fees on animal feedlots, must be submitted to the
members of legislative policy and finance committees with jurisdiction over agriculture and
the environment prior to final adoption. The rules must not become effective until 90 days
after the proposed rules are submitted to the members.

(j) Until new rules are adopted that provide for plans for manure storage structures, any
plans for a liquid manure storage structure must be prepared or approved by a registered
professional engineer or a United States Department of Agriculture, Natural Resources
Conservation Service employee.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent
than standards in Pollution Control Agency rules.

(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit
program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot
facility with 300 or more animal units, unless another public meeting has been held with
regard to the feedlot facility to be permitted.

(m) After the proposed rules published in the State Register, volume 24, number 25, are
finally adopted, the agency may not impose additional conditions as a part of a feedlot
permit, unless specifically required by law or agreed to by the feedlot operator.

(n) For the purposes of feedlot permitting, a discharge from land-applied manure or a
manure stockpile that is managed according to agency rule must not be subject to a fine for
a discharge violation.

(o) For the purposes of feedlot permitting, manure that is land applied, or a manure
stockpile that is managed according to agency rule, must not be considered a discharge into
waters of the state, unless the discharge is to waters of the state, as defined by section
103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section 103G.005,
subdivision 17b, and does not meet discharge standards established for feedlots under agency
rule.

(p) new text begin The natural deposit of manure by livestock on pasture shall not be considered a
discharge into waters of the state and shall not be subject to any fine or penalty.
new text end

new text begin (q) new text end Unless the upgrade is needed to correct an immediate public health threat under
section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal
feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on
April 15, 2003, the agency may not require a feedlot operator:

(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300 animal
units unless cost-share money is available to the feedlot operator for 75 percent of the cost
of the upgrade; or

(2) to spend more than $10,000 to upgrade an existing feedlot with between 300 and
500 animal units, unless cost-share money is available to the feedlot operator for 75 percent
of the cost of the upgrade or $50,000, whichever is less.

deleted text begin (q) For the purposes of this section, "pastures" means areas, including winter feeding
areas as part of a grazing area, where grass or other growing plants are used for grazing and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season except that vegetative cover is not required:
deleted text end

deleted text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
deleted text end

deleted text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices; and
deleted text end

deleted text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture.
deleted text end

(r) A feedlot operator who stores and applies up to 100,000 gallons per calendar year of
private truck wash wastewater resulting from trucks that transport animals or supplies to
and from the feedlot does not require a permit to land-apply industrial by-products if the
feedlot operator stores and applies the wastewater in accordance with Pollution Control
Agency requirements for land applications of industrial by-product that do not require a
permit.

(s) A feedlot operator who holds a permit from the Pollution Control Agency to
land-apply industrial by-products from a private truck wash is not required to have a certified
land applicator apply the private truck wash wastewater if the wastewater is applied by the
feedlot operator to cropland owned or leased by the feedlot operator or by a commercial
animal waste technician licensed by the commissioner of agriculture under chapter 18C.
For purposes of this paragraph and paragraph (r), "private truck wash" means a truck washing
facility owned or leased, operated, and used only by a feedlot operator to wash trucks owned
or leased by the feedlot operator and used to transport animals or supplies to and from the
feedlot.

Sec. 45.

Minnesota Statutes 2018, section 116.07, subdivision 7d, is amended to read:

Subd. 7d.

Exemption.

deleted text begin (a) deleted text end Notwithstanding subdivision 7 or Minnesota Rules, chapter
7020, to the contrary, and notwithstanding the proximity to public or private waters, an
owner or resident of agricultural land on which livestock have been allowed to pasture at
any time during the ten-year period beginning January 1, 2010, is permanently exempt from
requirements related to feedlot or manure management on that land for so long as the property
remains in pasture.

deleted text begin (b) For the purposes of this subdivision, "pasture" means areas where livestock graze
on grass or other growing plants. Pasture also means agricultural land where livestock are
allowed to forage during the winter time and which land is used for cropping purposes in
the growing season. In either case, the concentration of animals must be such that a vegetative
cover, whether of grass, growing plants, or crops, is maintained during the growing season
except in the immediate vicinity of temporary supplemental feeding or watering devices.
deleted text end

Sec. 46.

Minnesota Statutes 2018, section 116.0714, is amended to read:

116.0714 NEW OPEN-AIR SWINE BASINS.

new text begin (a) new text end The commissioner of the Pollution Control Agency or a county board shall not
approve any permits for the construction of new open-air swine basins, except that existing
facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste
treatment program for resolving pollution problems or to allow conversion of an existing
basin of less than 1,000,000 gallons to a different animal type, provided all standards are
met. This section expires June 30, 2022.

new text begin (b) This section does not apply to basins used solely for wastewater from truck-washing
facilities.
new text end

Sec. 47. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 41A.15, subdivisions 2a and 2b, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S1859-1

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.