SF 2458

2nd Engrossment - 94th Legislature (2025 - 2026) Posted on 04/29/2025 09:32am

A bill for an act
relating to state government; establishing a budget for the Department of
Agriculture, the Board of Animal Health, the Agricultural Utilization Research
Institute, and the Office of Broadband Development; making policy and technical
changes to agriculture provisions; modifying livestock marketing agency and
dealer licensing provisions; modifying seed potato provisions; modifying food
handler licensing provisions; modifying the cottage foods licensing exemption;
transferring money; appropriating money; modifying and establishing fees;
requiring reports; amending Minnesota Statutes 2024, sections 17.1017; 17.1018;
17.117, subdivisions 1, 3; 17.118, subdivisions 1, 2, 3; 17.133, subdivision 1;
17A.03, subdivisions 8, 10, 11, by adding a subdivision; 17A.04, subdivisions 1,
2, 4, 6, 7, 8; 17A.06, subdivisions 2, 3; 17A.07; 17A.08; 17A.15; 18B.26,
subdivision 8; 18B.37, subdivision 6; 18C.111, by adding a subdivision; 18J.01;
18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06;
18J.07, subdivisions 3, 4, 5; 18J.09; 21.111; 21.112, by adding a subdivision;
21.113; 21.115; 21.117; 21.119; 21.1195; 21.1196, subdivision 2; 21.891,
subdivision 2; 25.391, subdivisions 1, 2; 28A.03, subdivision 7, by adding
subdivisions; 28A.04; 28A.05; 28A.06; 28A.07; 28A.0753, subdivision 3; 28A.08;
28A.081, subdivision 1; 28A.085, subdivision 1; 28A.14; 28A.151, subdivision
2; 28A.152, subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 28A.17; 32D.01,
by adding a subdivision; 35.155, subdivision 12; 41A.09, subdivision 2a; 41A.16,
subdivision 7; 41A.30, subdivision 1; 41B.039, subdivision 2; 41B.0391,
subdivisions 1, 2, 4, 6; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043,
subdivision 1b; 41B.045, subdivision 2; 41B.047, subdivision 3; 41B.056,
subdivision 1; 41B.057, subdivisions 1, 3; 223.17, subdivision 3; 232.22,
subdivision 3; 239.761, subdivisions 3, 4, 5, 6; 296A.01, subdivisions 20, 23, 24;
Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 4, as
amended; Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended;
proposing coding for new law in Minnesota Statutes, chapters 21; 32D; 343;
repealing Minnesota Statutes 2024, sections 21.116; 21.118; 21.1196, subdivision
3; 21.121; 21.122; 35.68; 35.830; 239.77, subdivision 5; Minnesota Rules, parts
1510.2300; 1510.2305; 1510.2310; 1510.2315; 1510.2320; 1510.2325; 1510.2330;
1510.2335; 1510.2340; 1510.2345; 1510.2350; 1510.2355, subparts 1, 2, 3a, 4, 5,
6, 7.

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

ARTICLE 1

APPROPRIATIONS

Section 1. 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 article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
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 2026 new text end		new text begin 2027 new text end

Sec. 2. 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 53,083,000 new text end

new text begin $ new text end

new text begin 53,401,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 52,684,000 new text end	new text begin 53,002,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 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 Appropriations by Fund new text end
new text begin General new text end	new text begin 19,454,000 new text end	new text begin 20,008,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin (a) $399,000 the first year and $399,000 the
second year are from the remediation fund for
administrative funding of the voluntary
cleanup program.
new text end

new text begin (b) $589,000 the first year and $639,000 the
second year are for the soil health financial
assistance program under Minnesota Statutes,
section 17.134. The commissioner may award
no more than $50,000 of the appropriation
each year to a single recipient.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 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 in the
second year. Appropriations encumbered
under contract on or before June 30, 2027, for
soil health financial assistance grants are
available until June 30, 2029.
new text end

new text begin (c) $225,000 the first year and $225,000 the
second year are for compensation for livestock
destroyed or crippled by a wolf under
Minnesota Statutes, section 3.737. If the
amount in the first year is insufficient, the
amount in the second year is available in the
first year. The commissioner may use up to
$5,000 each year to reimburse expenses
incurred by university extension educators to
provide fair market values of destroyed or
crippled livestock. If the commissioner
receives federal funding to pay claims for
destroyed or crippled livestock, an equivalent
amount of this appropriation may be used to
reimburse nonlethal prevention methods
performed by federal wildlife services staff.
new text end

new text begin (d) $205,000 the first year and $205,000 the
second year are for compensation for crop or
fence damage caused by elk 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. The
commissioner may use up to $10,000 of the
appropriation each year to reimburse expenses
incurred by the commissioner or the
commissioner's approved agent to investigate
and resolve claims, as well as for costs
associated with training for approved agents.
The commissioner may use up to $40,000 of
the appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage. 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 (e) $825,000 the first year and $825,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory.
new text end

new text begin (f) $420,000 the first year and $924,000 the
second year are to support current services.
new text end

new text begin (g) $150,000 the first year and $150,000 the
second year are to coordinate climate-related
activities and services within the Department
of Agriculture and with counterparts in local,
state, and federal agencies and for a full-time
climate implementation coordinator. The
climate implementation coordinator must
coordinate efforts seeking federal funding for
Minnesota's agricultural climate adaptation
and mitigation efforts and develop strategic
partnerships with the private sector and
nongovernment organizations.
new text end

new text begin (h) $351,000 the first year and $351,000 the
second year are for additional meat and poultry
inspection services. The base for this
appropriation is $450,000 in fiscal year 2028
and each year thereafter.
new text end

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

new text begin 21,126,000 new text end

new text begin 20,876,000 new text end

new text begin (a) $634,000 the first year and $634,000 the
second year are for the continuation of the
dairy development and profitability
enhancement program, including dairy
profitability teams and dairy business planning
grants under Minnesota Statutes, section
32D.30.
new text end

new text begin (b) The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance to
persons transitioning from conventional to
organic agriculture.
new text end

new text begin (c) $75,000 the first year and $75,000 the
second year are for mental health outreach and
support to farmers, ranchers, and others in the
agricultural community and for farm safety
grant and outreach programs under Minnesota
Statutes, section 17.1195. Mental health
outreach and support may include a 24-hour
hotline, stigma reduction, and education.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of fiscal year 2026 and is
available until June 30, 2027. The base for this
appropriation is $50,000 in fiscal year 2028
and each year thereafter.
new text end

new text begin (d) $16,557,000 the first year and $16,307,000
the second year are for the agricultural growth,
research, and innovation program under
Minnesota Statutes, section 41A.12. The base
for this appropriation is $16,357,000 in fiscal
year 2028 and each year thereafter.
new text end

new text begin (e) Except as provided in paragraph (f), the
commissioner may allocate the appropriation
in paragraph (d) each year among the
following areas: facilitating the startup,
modernization, improvement, or expansion of
livestock operations, including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; assisting value-added agricultural
businesses to begin or expand, to access new
markets, or to diversify, including aquaponics
systems, with preference given to hemp fiber
processing equipment; facilitating the startup,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of the appropriation in
paragraph (d) for costs incurred to administer
the program.
new text end

new text begin (f) Of the amount appropriated for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12:
new text end

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

new text begin (2) $2,750,000 the first year and $2,750,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph;
new text end

new text begin (3) $2,750,000 the first year and $2,750,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 20 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses;
new text end

new text begin (4) $250,000 the first year and $250,000 the
second year are for grants to facilitate the
startup, modernization, or expansion of meat,
poultry, egg, and milk processing facilities. A
grant award under this clause must not exceed
$200,000;
new text end

new text begin (5) $1,444,000 the first year and $1,444,000
the second year are for providing more fruits,
vegetables, meat, poultry, grain, and dairy for
children in school and early childhood
education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Of the amount appropriated,
$150,000 each year is for a statewide
coordinator of farm-to-institution strategy and
programming. The coordinator must consult
with relevant stakeholders and provide
technical assistance and training for
participating farmers and eligible grant
recipients. At the commissioner's discretion,
for state administration of federal cooperative
agreements for purchasing Minnesota grown
and raised foods for schools, child care
providers, food banks, and other institutions,
the commissioner may use an amount of state
funds equal to no more than 7.5 percent of the
total federal funds awarded to the state. The
commissioner shall expend any available
federal administrative funds awarded for this
purpose before using state funds;
new text end

new text begin (6) $1,075,000 the first year and $1,075,000
the second year are for grants to facilitate the
development of urban agriculture, including
projects related to youth education, community
and economic development, value-added
processing, and vocational training. The base
for this appropriation is $1,125,000 in fiscal
year 2028 and each year thereafter;
new text end

new text begin (7) $1,000,000 the first year and $1,000,000
the second year are for the food retail
improvement and development program under
Minnesota Statutes, section 17.1017;
new text end

new text begin (8) Up to $200,000 the first year and up to
$200,000 the second year are for cooperative
development grants under Minnesota Statutes,
section 17.1016; and
new text end

new text begin (9) $250,000 the first year is for the protecting
livestock grant program for producers to
support the installation of measures to prevent
the transmission of avian influenza. For the
appropriation in this clause, a grant applicant
must document a cost-share of 20 percent. An
applicant's cost-share amount may be reduced
up to $2,000 to cover time and labor costs.
This is a onetime appropriation.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation does not cancel at
the end of the first year and is available in the
second year.
new text end

new text begin (g) Notwithstanding Minnesota Statutes,
section 16A.28, the appropriation in paragraph
(d) does not cancel at the end of the second
year and is available until June 30, 2029.
Appropriations encumbered under contract on
or before June 30, 2029, for agricultural
growth, research, and innovation grants are
available until June 30, 2032.
new text end

new text begin Subd. 4. new text end new text begin Administration and Financial Assistance new text end

new text begin 12,104,000 new text end

new text begin 12,118,000 new text end

new text begin (a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
must be disbursed no later than July 15 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 (b) $300,000 the first year and $300,000 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 (c) $2,000 the first year is for a grant to the
Minnesota State Poultry Association to
promote youth poultry programs in Minnesota.
This is a onetime appropriation.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year.
new text end

new text begin (d) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. This is a
onetime appropriation.
new text end

new text begin (e) $30,000 the first year and $30,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. This is a onetime appropriation.
new text end

new text begin (f) $35,000 the first year and $35,000 the
second year are for grants to the Minnesota
State Horticultural Society. This is a onetime
appropriation.
new text end

new text begin (g) $75,000 the first year and $75,000 the
second year are for grants to the Center for
Rural Policy and Development. This is a
onetime appropriation.
new text end

new text begin (h) $40,000 the first year and $40,000 the
second year are appropriated from the general
fund to the commissioner of agriculture for
grants to the Minnesota Turf Seed Council for
basic and applied research on:
new text end

new text begin (1) the improved production of forage and turf
seed related to new and improved varieties;
and
new text end

new text begin (2) native plants, including plant breeding,
nutrient management, pest management,
disease management, yield, and viability.
new text end

new text begin The Minnesota Turf Seed Council may
subcontract with a qualified third party for
some or all of the basic or applied research.
Any unencumbered balance does not cancel
at the end of the first year and is available in
the second year. The Minnesota Turf Seed
Council must prepare a report outlining the
use of the grant money and related
accomplishments. No later than January 15,
2027, and January 15, 2028, the council must
submit the report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture finance and policy. This is a
onetime appropriation.
new text end

new text begin (i) $50,000 the first year and $50,000 the
second year are for grants to GreenSeam for
assistance to agriculture-related businesses to
support business retention and development,
business attraction and creation, talent
development and attraction, and regional
branding and promotion. These are onetime
appropriations. No later than December 1,
2026, and December 1, 2027, GreenSeam
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.
new text end

new text begin (j) $1,000,000 the first year and $1,000,000
the second year are to award and administer
farm down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to eligible applicants with no
more than $100,000 in annual gross farm
product sales and eligible applicants who are
producers of industrial hemp, cannabis, or one
or more of the following specialty crops as
defined by the United States Department of
Agriculture for purposes of the specialty crop
block grant program: fruits and vegetables,
tree nuts, dried fruits, medicinal plants,
culinary herbs and spices, horticulture crops,
floriculture crops, and nursery crops.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance at the end
of the first year does not cancel and is
available in the second year and appropriations
encumbered under contract by June 30, 2027,
are available until December 31, 2027.
new text end

new text begin (k) $1,700,000 the first year and $1,700,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
five Feeding America food banks for the
following purposes:
new text end

new text begin (1) at least $850,000 each year must be
allocated to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available the second year;
new text end

new text begin (2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or be
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
not use any amount of each grant awarded
under this clause for administrative expenses;
new text end

new text begin (3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased under the grants must be
acquired from Minnesota processors and
producers; and
new text end

new text begin (4) up to $500,000 each year is to purchase
produce from The Good Acre.
new text end

new text begin Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.
new text end

new text begin (l) $260,000 the first year and $260,000 the
second year are for a pass-through grant to
Region Five Development Commission to
provide, in collaboration with Farm Business
Management, statewide mental health
counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 6.5
percent of the grant awarded under this
paragraph for administration.
new text end

new text begin (m) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.
new text end

new text begin (n) $1,000,000 the first year and $1,000,000
the second year are for the Emerging Farmers
Office to provide services to beginning and
emerging farmers to increase connections
between farmers and market opportunities
throughout the state. This appropriation may
be used for grants, translation services,
training programs, or other purposes in line
with the recommendations of the emerging
farmer working group established under
Minnesota Statutes, section 17.055,
subdivision 1.
new text end

new text begin (o) $137,000 the first year and $203,000 the
second year are to support current services.
new text end

new text begin (p) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $50,000 the first year and
$50,000 the second year are for the
continuation of the farmland transition
programs and may be used for grants to
farmland access teams to provide technical
assistance to potential beginning farmers.
Farmland access teams must assist existing
farmers and beginning farmers with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.
new text end

new text begin (q) $250,000 the first year and $250,000 the
second year are for the local food purchasing
assistance grant program under article 3,
section 42.
new text end

new text begin (r) $50,000 the first year is to conduct a study
and develop recommendations for establishing
an incentive-based program to support and
encourage agricultural retailers in promoting
4R nutrient management practices. The 4R
nutrient management practices include: the
right source of nutrients, at the right rate and
right time, in the right place.
new text end

new text begin (1) As part of the study, the department must
evaluate strategies for leveraging cost-share
programs, including the feasibility of
coordinating with the Agricultural Water
Quality Certification Program and other efforts
related to the state's Nutrient Reduction
Strategy.
new text end

new text begin (2) The commissioner must submit a report
detailing its findings, including potential
funding sources and proposal outlines for
funding requests where appropriate. The
commissioner must submit the report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and environment by December 15,
2025.
new text end

new text begin (s) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.
new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 6,656,000 new text end

new text begin $ new text end

new text begin 6,781,000 new text end

new text begin $246,000 the first year and $371,000 the
second year are to maintain the current level
of service delivery.
new text end

Sec. 4. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 4,388,000 new text end

new text begin $ new text end

new text begin 4,434,000 new text end

new text begin $45,000 the first year and $91,000 the second
year are to maintain the current level of service
delivery.
new text end

Sec. 5. new text begin TRANSFERS; ADMINISTRATION.
new text end

new text begin Positions, salary money, and nonsalary administrative money may be transferred within
the Department of Agriculture as the commissioner of agriculture considers necessary, with
the advanced approval of the commissioner of management and budget. The commissioner
of agriculture shall report to the chairs and ranking minority members of the legislative
committees with jurisdiction over agriculture finance quarterly about the transfers made
under this section.
new text end

Sec. 6. new text begin TRANSFERS.
new text end

new text begin (a) $100,000 in fiscal year 2026 and $100,000 in fiscal year 2027 are transferred from
the general fund to the pollinator research account established under Minnesota Statutes,
section 18B.051. For fiscal years 2028 through 2031, the commissioner of management and
budget must include a transfer of $100,000 each year from the general fund to the pollinator
research account established under Minnesota Statutes, section 18B.051, when preparing
each forecast from the effective date of this section through the February 2027 forecast,
under Minnesota Statutes, section 16A.103.
new text end

new text begin (b) $186,000 in fiscal year 2026 and $186,000 in fiscal year 2027 are transferred from
the general fund to the Minnesota grown account and may be used as grants for Minnesota
Grown promotion under Minnesota Statutes, section 17.102. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations encumbered under contract on or before June
30, 2027, for Minnesota Grown grants in this paragraph are available until June 30, 2029.
For fiscal years 2028 through 2031, the commissioner of management and budget must
include a transfer of $186,000 each year from the general fund to the Minnesota grown
account established under Minnesota Statutes, section 17.102, when preparing each forecast
from the effective date of this section through the February 2027 forecast, under Minnesota
Statutes, section 16A.103.
new text end

new text begin (c) $10,552,000 in fiscal year 2026 and $10,552,000 in fiscal year 2027 are transferred
from the general fund to the agriculture research, education, extension, and technology
transfer account under Minnesota Statutes, section 41A.14, subdivision 3, and the
commissioner shall transfer funds each year to the Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes, section 41A.14, subdivision 1, clauses (1)
and (2), and must supplement and not supplant existing sources and levels of funding. The
commissioner may use up to one percent of this transfer for costs incurred to administer
this program.
new text end

new text begin (d) Of the amount transferred for the agriculture research, education, extension, and
technology transfer grant program under Minnesota Statutes, section 41A.14:
new text end

new text begin (1) $600,000 in fiscal year 2026 and $600,000 in fiscal year 2027 are for the Minnesota
Agricultural Experiment Station's agriculture rapid response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);
new text end

new text begin (2) up to $1,000,000 in fiscal year 2026 and up to $1,000,000 in fiscal year 2027 are for
research on avian influenza, salmonella, and other turkey-related diseases and disease
prevention measures;
new text end

new text begin (3) $2,375,000 in fiscal year 2026 and $2,375,000 in fiscal year 2027 are for grants to
the Minnesota Agricultural Education Leadership Council to enhance agricultural education
with priority given to Farm Business Management challenge grants;
new text end

new text begin (4) $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are for potato research;
new text end

new text begin (5) $802,000 in fiscal year 2026 and $802,000 in fiscal year 2027 are to fund the Forever
Green Initiative and protect Minnesota's natural resources while increasing the efficiency,
profitability, and productivity of Minnesota farmers by incorporating perennial and winter
annual crops into existing agricultural practices. By February 1 each year, the dean of the
College of Food, Agricultural and Natural Resource Sciences must submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
agriculture finance and policy and higher education detailing uses of the money in this
clause, including administrative costs, and the achievements this money contributed to;
new text end

new text begin (6) $200,000 in fiscal year 2026 and $200,000 in fiscal year 2027 are for research on
natural strands of wild rice;
new text end

new text begin (7) $250,000 in fiscal year 2026 and $250,000 in fiscal year 2027 are for the cultivated
wild rice forward selection project at the North Central Research and Outreach Center,
including a tenure track or research associate plant scientist; and
new text end

new text begin (8) $75,000 in fiscal year 2026 and $75,000 in fiscal year 2027 are for grants to the
Southwest Minnesota State University Foundation to support the Minnesota Agriculture
and Rural Leadership program.
new text end

new text begin For fiscal years 2028 through 2031, the commissioner of management and budget must
include a transfer of $10,552,000 each year from the general fund to the agriculture research,
education, extension, and technology transfer account under Minnesota Statutes, section
41A.14, subdivision 3, when preparing each forecast from the effective date of this section
through the February 2027 forecast, under Minnesota Statutes, section 16A.103.
new text end

new text begin (e) $1,425,000 in fiscal year 2026 and $1,425,000 in fiscal year 2027 are transferred
from the general fund to the agricultural and environmental revolving loan account
established under Minnesota Statutes, section 17.117, subdivision 5a, for low-interest or
no-interest loans issued through the agriculture best management practices loan program
under Minnesota Statutes, section 17.117. For fiscal years 2028 through 2031, the
commissioner of management and budget must include a transfer of $1,425,000 each year
from the general fund to the agricultural and environmental revolving loan account under
Minnesota Statutes, section 17.117, subdivision 5a, when preparing each forecast from the
effective date of this section through the February 2027 forecast, under Minnesota Statutes,
section 16A.103.
new text end

Sec. 7. new text begin FISCAL YEAR 2025 TRANSFER.
new text end

new text begin $1,500,000 in fiscal year 2025 is transferred from the general fund to the agricultural
emergency account established under Minnesota Statutes, section 17.041.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin CANCELLATIONS; FISCAL YEAR 2025.
new text end

new text begin (a) $3,000,000 of the appropriation in fiscal year 2024 from the general fund for green
fertilizer production facilities under Laws 2023, chapter 60, article 10, section 4, is canceled
to the general fund by June 30, 2025.
new text end

new text begin (b) $1,500,000 of the appropriation in fiscal year 2025 from the general fund for Dairy
Assistance, Investment, Relief Initiative (DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll in coverage under a federal dairy risk
protection program and produced no more than 16,000,000 pounds of milk in 2022 under
Laws 2024, chapter 126, article 1, section 1, is canceled to the general fund by June 30,
2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 4, as
amended by Laws 2022, chapter 95, article 1, section 1, subdivision 4, is amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

25,343,000

27,257,000

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, salmonella, and other turkey-related
diseases. By January 15, 2023, entities
receiving grants for potato breeding and wild
rice breeding are requested to report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and higher education regarding the
use of the grant money and to provide an
update on the status of research and related
accomplishments.

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.

(b) $16,028,000 the first year and $17,928,000
the second year are for the agricultural growth,
research, and innovation program under
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, improvement, or expansion of
livestock operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$800,000 each year to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
school and child care settings including, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $600,000
each year for urban youth agricultural
education or urban agriculture community
development of which $10,000 each year is
for transfer to the emerging farmer account
under Minnesota Statutes, section 17.055,
subdivision 1a; providing funding not to
exceed $450,000 each year for the good food
access program under Minnesota Statutes,
section 17.1017; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $4,500,000 the first year and $5,750,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2023, and the second year appropriation is
available until June 30, 2024. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph. The base appropriation under this
clause is $5,750,000 in fiscal year 2024 and
thereafter;

(3) $3,000,000 the first year and $3,000,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which it contracts, must submit a report on the
biofuels infrastructure financial assistance
program by January 15 of each year to the
chairs and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture policy and
finance. The annual report must include but
not be limited to a summary of the following
metrics: (i) the number and types of projects
financed; (ii) the amount of dollars leveraged
or matched per project; (iii) the geographic
distribution of financed projects; (iv) any
market expansion associated with upgraded
infrastructure; (v) the demographics of the
areas served; (vi) the costs of the program;
and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $750,000 the first year and $1,400,000 the
second year are for grants to facilitate the
start-up, modernization, or expansion of meat,
poultry, egg, and milk processing facilities. A
grant award under this clause must not exceed
$200,000. Any unencumbered balance at the
end of the second year does not cancel until
June 30, 2024, and may be used for other
purposes under this paragraph. The base
appropriation under this clause is $250,000 in
fiscal year 2024 and thereafter; and

(5) $1,400,000 the first year and $1,400,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118. Any unencumbered balance at the end
of the second year does not cancel until June
30, 2024, and may be used for other purposes
under this paragraph. The appropriations under
this clause are onetime.

Notwithstanding Minnesota Statutes, section
16A.28, deleted text begin any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and deleted text end new text begin this
appropriation does not cancel at the end of the
second year and is available until June 30,
2029. new text end Appropriations encumbered under
contract on or before June 30, deleted text begin 2023 deleted text end new text begin 2029 new text end , for
agricultural growth, research, and innovation
grants are available until June 30, deleted text begin 2026 deleted text end new text begin 2032 new text end .

The base amount for the agricultural growth,
research, and innovation program is
$17,553,000 in fiscal year 2024 and
$17,553,000 in fiscal year 2025, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.

(c) $15,000 the first year and $29,000 the
second year are to maintain the current level
of service delivery.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended by Laws
2024, chapter 126, article 1, section 1, subdivision 4, is amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

34,034,000

38,159,000

(a) $10,702,000 the first year and $10,702,000
the second year are for the agriculture
research, education, extension, and technology
transfer program under Minnesota Statutes,
section 41A.14. Except as provided below,
the appropriation each year is for transfer to
the agriculture research, education, extension,
and technology transfer account under
Minnesota Statutes, section 41A.14,
subdivision 3, and the commissioner shall
transfer funds each year to the Board of
Regents of the University of Minnesota for
purposes of Minnesota Statutes, section
41A.14. To the extent practicable, money
expended under Minnesota Statutes, section
41A.14, subdivision 1, clauses (1) and (2),
must supplement and not supplant existing
sources and levels of funding. The
commissioner may use up to one percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agriculture
research, education, extension, and technology
transfer grant program under Minnesota
Statutes, section 41A.14:

(1) $600,000 the first year and $600,000 the
second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);

(2) up to $1,000,000 the first year and up to
$1,000,000 the second year are for research
on avian influenza, salmonella, and other
turkey-related diseases and disease prevention
measures;

(3) $2,250,000 the first year and $2,250,000
the second year are for grants to the Minnesota
Agricultural Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants;

(4) $450,000 the first year is for the cultivated
wild rice breeding project at the North Central
Research and Outreach Center to include a
tenure track/research associate plant breeder;

(5) $350,000 the first year and $350,000 the
second year are for potato breeding;

(6) $802,000 the first year and $802,000 the
second year are to fund the Forever Green
Initiative and protect the state's natural
resources while increasing the efficiency,
profitability, and productivity of Minnesota
farmers by incorporating perennial and
winter-annual crops into existing agricultural
practices. The base for the allocation under
this clause is $802,000 in fiscal year 2026 and
each year thereafter. By February 1 each year,
the dean of the College of Food, Agricultural
and Natural Resource Sciences must submit
a report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and policy
and higher education detailing uses of the
funds in this paragraph, including
administrative costs, and the achievements
these funds contributed to;

(7) $350,000 each year is for farm-scale winter
greenhouse research and development
coordinated by University of Minnesota
Extension Regional Sustainable Development
Partnerships. The allocation in this clause is
onetime;

(8) $200,000 the second year is for research
on natural stands of wild rice; and

(9) $250,000 the second year is for the
cultivated wild rice forward selection project
at the North Central Research and Outreach
Center, including a tenure track or research
associate plant scientist.

(b) The base for the agriculture research,
education, extension, and technology transfer
program is $10,352,000 in fiscal year 2026
and $10,352,000 in fiscal year 2027.

(c) $23,332,000 the first year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $5,750,000 the first year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2025. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph;

(3) $3,375,000 the first year is for grants that
enable retail petroleum dispensers, fuel storage
tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $1,250,000 the first year is for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2026, and
may be used for other purposes under this
paragraph;

(5) $1,150,000 the first year is for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients;

(6) $2,000,000 the first year is for urban youth
agricultural education or urban agriculture
community development;

(7) $1,000,000 the first year is for the good
food access program under Minnesota
Statutes, section 17.1017; and

(8) $225,000 the first year is to provide grants
to secondary career and technical education
programs for the purpose of offering
instruction in meat cutting and butchery.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation. Grants may be used for costs,
including but not limited to:

(i) equipment required for a meat cutting
program;

(ii) facility renovation to accommodate meat
cutting; and

(iii) training faculty to teach the fundamentals
of meat processing.

A grant recipient may be awarded a grant of
up to $75,000 and may use up to ten percent
of the grant for faculty training. Priority may
be given to applicants who are coordinating
with meat cutting and butchery programs at
Minnesota State Colleges and Universities
institutions or with local industry partners.

By January 15, 2025, the commissioner must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance by listing the grants made
under this paragraph by county and noting the
number and amount of grant requests not
fulfilled. The report may include additional
information as determined by the
commissioner, including but not limited to
information regarding the outcomes produced
by these grants. If additional grants are
awarded under this paragraph that were not
covered in the report due by January 15, 2025,
the commissioner must submit an additional
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2025.

Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and
appropriations encumbered under contract on
or before June 30, 2025, for agricultural
growth, research, and innovation grants are
available until June 30, 2028.

(d) $27,457,000 the second year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $5,750,000 the second year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2027. If this appropriation exceeds
the total amount for which all producers are
eligible in a fiscal year, the balance of the
appropriation is available for other purposes
under this paragraph. The base under this
clause is $3,000,000 in fiscal year 2026 and
each year thereafter;

(3) $3,375,000 the second year is for grants
that enable retail petroleum dispensers, fuel
storage tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than ten retail
petroleum dispensing sites and each site is
located in Minnesota. The grant money must
be used to replace or upgrade equipment that
does not have the ability to be certified for
E25. A grant award must not exceed 65
percent of the cost of the appropriate
technology. A grant award must not exceed
$200,000 per station. The commissioner must
cooperate with biofuel stakeholders in the
implementation of the grant program. The
commissioner, in cooperation with any
economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of money
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses.
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter;

(4) $1,250,000 the second year is for grants
to facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2027, and
may be used for other purposes under this
paragraph. The base under this clause is
$250,000 in fiscal year 2026 and each year
thereafter;

(5) $1,275,000 the second year is for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients. The base under this
clause is $1,294,000 in fiscal year 2026 and
each year thereafter;

(6) $4,000,000 the second year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance on June 30, 2026, may
be used for other purposes under this
paragraph. The allocation in this clause is
onetime;

(7) $2,000,000 the second year is for urban
youth agricultural education or urban
agriculture community development;

(8) $1,000,000 the second year is for the good
food access program under Minnesota
Statutes, section 17.1017; and

(9) $225,000 the second year is for the
protecting livestock grant program for
producers to support the installation of
measures to prevent the transmission of avian
influenza. For the appropriation in this
paragraph, a grant applicant must document
a cost-share of 20 percent. An applicant's
cost-share amount may be reduced up to
$2,000 to cover time and labor costs.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This appropriation is
available until June 30, 2027. This is a onetime
appropriation.

new text begin (e) new text end Notwithstanding Minnesota Statutes,
section 16A.28, deleted text begin this deleted text end new text begin the new text end appropriation new text begin in
paragraph (d) new text end does not cancel at the end of the
second year and is available until June 30,
2027. Appropriations encumbered under
contract on or before June 30, 2027, for
agricultural growth, research, and innovation
grants are available until June 30, 2030.

deleted text begin (e) deleted text end new text begin (f) new text end The base for the agricultural growth,
research, and innovation program is
$17,582,000 in fiscal year 2026 and each year
thereafter and includes $200,000 each year for
cooperative development grants.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

BROADBAND

Section 1. new text begin BROADBAND DEVELOPMENT 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 article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
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 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 1,001,000 new text end

new text begin $ new text end

new text begin 1,001,000 new text end

new text begin $1,001,000 each year is for the Office of
Broadband Development.
new text end

ARTICLE 3

POLICY PROVISIONS

Section 1.

Minnesota Statutes 2024, section 17.1017, is amended to read:

17.1017 deleted text begin GOOD deleted text end FOOD deleted text begin ACCESS deleted text end new text begin RETAIL IMPROVEMENT AND
DEVELOPMENT new text end PROGRAM.

Subdivision 1.

Definitions.

(a) For purposes of this section, unless the language or
context indicates that a different meaning is intended, the following terms have the meanings
given them.

(b) "Account" means the deleted text begin good deleted text end food deleted text begin access deleted text end new text begin retail improvement and development new text end account
established in subdivision 3.

(c) "Commissioner" means the commissioner of agriculture.

(d) "Economic or community development financial institution (ECDFI)" means a lender,
including but not limited to a community development financial institution (CDFI), an
economic development district (EDD), a political subdivision of the state, a microenterprise
firm, or a nonprofit community lending organization that has previous experience lending
to a food retailer, producer, or another healthy food enterprise deleted text begin in an underserved community
in a low-income or moderate-income area deleted text end , as defined in this section deleted text begin ; has been in existence
and operating prior to January 1, 2014 deleted text end ; has demonstrated the ability to raise matching capital
and in-kind services to leverage appropriated money; has the demonstrated ability to
underwrite loans and grants; and has partnered previously with nonprofit healthy food
access, public health, or related governmental departments or community organizations.

(e) "Farmers' market" means an association of three or more persons who assemble at
a defined location that is open to the public for the purpose of selling directly to the consumer
the products of a farm or garden occupied and cultivated by the person selling the product.

(f) "Financing" means loans, including low-interest loans, zero-interest loans, forgivable
loans, and other types of financial assistance other than grants.

(g) "Food hub" means a centrally located facility with a business management structure
that facilitates the aggregation, storage, processing, distribution, marketing, and sale of
locally or regionally produced food products, and which may include a small-scale retail
grocery operation.

deleted text begin (h) "Good Food Access Program Advisory Committee" means the Good Food Access
Program Advisory Committee under section 17.1018.
deleted text end

new text begin (h) "Food Retail Improvement and Development Program Advisory Committee" means
the Food Retail Improvement and Development Program Advisory Committee under section
17.1018.
new text end

(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries, and
dairy products and may also sell household products, sundries, and other products. Grocery
store includes a supermarket or a large-, mid-, or small-scale retail grocery establishment
and may include a mobile food market or a delivery service operation.

(j) "Low-income area" means a census tract as reported in the most recently completed
decennial census published by the United States Bureau of the Census that has a poverty
rate of at least 20 percent or in which the median family income does not exceed 80 percent
of the greater of the statewide or metropolitan median family income.

(k) "Moderate-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census in which
the median family income is between 81 percent and 95 percent of the median family income
for that area.

(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or cooperative
retail grocery operation located in a movable new or renovated truck, bus, or other vehicle
that is used to store, prepare, display, and sell primarily meat, fish, seafood, fruits, vegetables,
dry groceries, and dairy products and may also be used to sell a nominal supply of cooking
utensils and equipment and other household products and sundries.

(m) "Program" means the deleted text begin good deleted text end food deleted text begin access deleted text end new text begin retail improvement and development new text end program
established in this section.

(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery store
as defined in this section. Small food retailer includes, but is not limited to, a corner store,
convenience store, farmers' market, mobile food market, and a retail food outlet operated
by an emergency food program or food hub.

(o) "Technical assistance" means needs-based project assistance provided through the
program, including sustainability-focused individualized guidance, presentations, workshops,
trainings, printed materials, mentorship opportunities, peer-to-peer opportunities, or other
guidance and resources on relevant topics such as business planning, sales projections, cash
flow, succession planning, financing, fundraising, marketing, food preparation
demonstrations, and workforce training.

(p) "Underserved community" means a deleted text begin census tract that is federally designated as a food
desert by the United States Department of Agriculture, or a census tract in a low-income or
moderate-income area that includes a substantial subpopulation such as the elderly or the
disabled that has low supermarket access, regardless of distance, due to lack of transportation deleted text end new text begin
geographic area or group of people whose food access needs are not met by existing retail
options, including a low-income and moderate-income area, a census tract that is federally
designated as a food desert by the United States Department of Agriculture, an area where
there is a limited number of grocery stores, or a group of people with particular needs such
as the aging population, people with disabilities, or people with special dietary needs or
preferences, or as otherwise defined by the commissioner new text end .

Subd. 2.

Program established.

(a) A deleted text begin good deleted text end food deleted text begin access deleted text end new text begin retail improvement and
development new text end program is established within the Department of Agriculture to increase the
availability of and access to affordable, nutritious, and culturally appropriate food, including
fresh fruits and vegetables, for underserved communities deleted text begin in low-income and moderate-income
areas deleted text end by providing financial support and sustainable public-private projects to open, renovate,
or expand the operations of grocery stores and small food retailers; expanding access to
credit and reducing barriers to investment in underserved communities deleted text begin in low- and
moderate-income areas deleted text end ; and to provide technical assistance, primarily for small food retailers
with demonstrated need, to increase availability and sustainable sales of affordable, nutritious,
and culturally appropriate food, including fresh fruits and vegetables, to underserved
communities in low-income and moderate-income areas. The commissioner, in cooperation
with public and private partners, shall establish and implement the program as provided in
this section.

(b) The deleted text begin good deleted text end food deleted text begin access deleted text end new text begin retail improvement and development new text end program shall be
comprised of state or private grants, loans, or other types of financial and technical assistance
for the establishment, construction, expansion of operations, or renovation of grocery stores
and small food retailers to increase the availability of and access to affordable fresh produce
and other nutritious, culturally appropriate food to underserved communities deleted text begin in low-income
and moderate-income areas deleted text end .

Subd. 3.

deleted text begin Good deleted text end Food deleted text begin access deleted text end new text begin retail improvement and development new text end account.

A deleted text begin good deleted text end
food deleted text begin access deleted text end new text begin retail improvement and development new text end account is established in the agricultural
fund. The account consists of money appropriated by the legislature to the commissioner,
as provided by law, and any other money donated, allotted, transferred, or otherwise provided
to the account. Money in the account, including interest, is appropriated to the commissioner
for the purposes of this section, and shall be used, to the extent practicable, to leverage other
forms of public and private financing or financial assistance for the projects.

Subd. 4.

Program administration.

(a) The commissioner shall be the administrator of
the account for auditing purposes and shall establish program requirements and a competitive
process for projects applying for financial and technical assistance.

(b) The commissioner may receive money or other assets from any source, including
but not limited to philanthropic foundations and financial investors, for deposit into the
account.

(c) Through issuance of requests for proposals, the commissioner may contract with one
or more qualified economic or community development financial institutions to manage
the financing component of the program and with one or more qualified organizations or
public agencies with financial or other program-related expertise to manage the provision
of technical assistance to project grantees.

(d) Money in the account at the close of each fiscal year shall remain in the account and
shall not cancel. In each biennium, the commissioner shall determine the appropriate
proportion of money to be allocated to loans, grants, technical assistance, and any other
types of financial assistance.

(e) To encourage public-private, cross-sector collaboration and investment in the account
and program and to ensure that the program intent is maintained throughout implementation,
the commissioner shall convene and maintain the deleted text begin Good deleted text end Food deleted text begin Access deleted text end new text begin Retail Improvement
and Development new text end Program Advisory Committee.

(f) The commissioner, in cooperation with the deleted text begin Good deleted text end Food deleted text begin Access deleted text end new text begin Retail Improvement
and Development new text end Program Advisory Committee, shall manage the program, establish
program criteria, facilitate leveraging of additional public and private investment, and
promote the program statewide.

(g) The commissioner, in cooperation with the deleted text begin Good deleted text end Food deleted text begin Access deleted text end new text begin Retail Improvement
and Development new text end Program Advisory Committee, shall establish annual monitoring and
accountability mechanisms for all projects receiving financing or other financial or technical
assistance through this program.

Subd. 5.

Eligible projects.

(a) The commissioner, in cooperation with the program
partners and advisers, shall establish project eligibility guidelines and application processes
to be used to review and select project applicants for financing or other financial or technical
assistance. All projects must deleted text begin be located in deleted text end new text begin serve new text end an underserved community deleted text begin or must serve
primarily underserved communities in low-income and moderate-income areas deleted text end .

(b) Projects eligible for financing include, but are not limited to, new construction,
renovations, expansions of operations, and infrastructure upgrades of grocery stores and
small food retailers to improve the availability of and access to affordable, nutritious food,
including fresh fruits and vegetables, and build capacity in areas of greatest need.

(c) Projects eligible for other types of financial assistance such as grants or technical
assistance are primarily projects throughout the state, including, but not limited to, feasibility
studies, new construction, renovations, expansion of operations, and infrastructure upgrades
of small food retailers.

Subd. 6.

Qualifications for receipt of financing and other financial or technical
assistance.

(a) An applicant for receipt of financing through an economic or community
development financial institution, or an applicant for a grant or other financial deleted text begin or technical deleted text end
assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
or nonprofit community development organization. Each applicant must:

(1) demonstrate community engagement in and support for the project;

(2) demonstrate the capacity to successfully implement the project;

(3) demonstrate a viable plan for long-term sustainability, including the ability to increase
the availability of and access to affordable, nutritious, and culturally appropriate food,
including fresh fruits and vegetables, for underserved communities deleted text begin in low-income and
moderate-income areas deleted text end ; and

(4) demonstrate the ability to repay the debt, to the extent that the financing requires
repayment.

(b) Each applicant must also agree to comply with the following conditions for a period
of at least five years, except as otherwise specified in this section:

(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;

(2) allocate at least 30 percent of retail space for the sale of affordable, nutritious, and
culturally appropriate foods, including fruits and vegetables, low-fat and nonfat dairy,
fortified dairy substitute beverages such as soy-based or nut-based dairy substitute beverages,
whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins, consistent
with nutrition standards in national guidelines described in the current United States
Department of Agriculture Dietary Guidelines for Americans; new text begin and
new text end

(3) comply with all data collection and reporting requirements established by the
commissioner deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) promote the hiring, training, and retention of local or regional residents from
low-income and moderate-income areas that reflect area demographics, including
communities of color.
deleted text end

(c) A selected project that is a small food retailer is not subject to the allocation agreement
under paragraph (b), clause (2), and may use financing, grants, or other financial or technical
assistance for refrigeration, displays, or onetime capital expenditures for the promotion and
sale of perishable foods, including a combination of affordable, nutritious, and culturally
appropriate fresh or frozen dairy, dairy substitute products, produce, meats, poultry, and
fish, consistent with nutrition standards in national guidelines described in the current United
States Department of Agriculture Dietary Guidelines for Americans.

Subd. 7.

Additional selection criteria.

In determining which qualified projects to
finance, and in determining which qualified projects to provide with grants or other types
of financial or technical assistance, the commissioner, in cooperation with any entities with
which the commissioner contracts for those purposes and the deleted text begin Good deleted text end Food deleted text begin Access deleted text end new text begin Retail
Improvement and Development new text end Program Advisory Committee, deleted text begin shall deleted text end new text begin may new text end also consider:

(1) the level of need in the area to be served;

(2) the degree to which the project requires an investment of public support, or technical
assistance where applicable, to move forward, build capacity, create community impact, or
be competitive;

(3) the likelihood that the project will have positive economic and health impacts on the
underserved community, including creation and retention of jobs for local or regional
residents deleted text begin from low-income and moderate-income areas deleted text end that reflect area demographics,
including new text begin Indigenous communities and new text end communities of color;

(4) the degree to which the project will participate in state and local health department
initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
and support locally grown food products through programs such as Minnesota Grown; and

(5) any other criteria that the commissioner, in cooperation with public and private
partners, determines to be consistent with the purposes of this chapter.

Subd. 8.

Eligible costs.

Financing for project loans, including low-interest, zero-interest,
and forgivable loans, grants, and other financial or technical assistance, may be used to
support one or more of the following purposes:

(1) site acquisition and preparation;

(2) predevelopment costs, including but not limited to feasibility studies, market studies,
and appraisals;

(3) construction and build-out costs;

(4) equipment and furnishings;

(5) workforce or retailer training; and

(6) working capital.

Subd. 9.

Legislative report.

The commissioner, in cooperation with any economic or
community development financial institution and any other entity with which it contracts,
shall submit an annual report on the good food access program by January 15 of each year
to the chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over agriculture policy and finance. The annual
report shall include, but not be limited to, a summary of the following metrics:

(1) the number and types of projects financed;

(2) the amount of dollars leveraged or matched per project;

(3) the geographic distribution of financed projects;

(4) the number and types of technical assistance recipients;

deleted text begin (5) any market or commodity expansion associated with increased access;
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end the demographics of the areas served;

deleted text begin (7) deleted text end new text begin (6) new text end the costs of the program;

deleted text begin (8) deleted text end new text begin (7) new text end the number of SNAP deleted text begin and WIC deleted text end dollars spent;

deleted text begin (9) deleted text end new text begin (8) new text end any increase in retail square footage;

deleted text begin (10) deleted text end new text begin (9) new text end the number of loans or grants to deleted text begin minority-owned or female-owned businesses deleted text end new text begin
businesses owned by women and Black, Indigenous, or Persons of Color new text end ; and

deleted text begin (11) deleted text end new text begin (10) new text end measurable economic and health outcomes, including, but not limited to,
increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
the number of construction and retail jobs retained or created, and any health initiatives
associated with the program.

Sec. 2.

Minnesota Statutes 2024, section 17.1018, is amended to read:

17.1018 deleted text begin GOOD deleted text end FOOD deleted text begin ACCESS deleted text end new text begin RETAIL IMPROVEMENT AND
DEVELOPMENT new text end PROGRAM ADVISORY COMMITTEE.

Subdivision 1.

Definitions.

As used in this section, the following terms have the meanings
given them:

(1) "program" means the good food access program under section 17.1017; and

(2) "commissioner" means the commissioner of agriculture.

Subd. 2.

Creation.

The deleted text begin Good deleted text end Food deleted text begin Access deleted text end new text begin Retail Improvement and Development new text end
Program Advisory Committee consists of the following members, appointed by the
commissioner of agriculture, unless otherwise specified:

(1) the commissioners of health deleted text begin , deleted text end new text begin ; new text end employment and economic development deleted text begin , deleted text end new text begin ; new text end and deleted text begin human
services deleted text end new text begin children, youth, and families new text end , or their respective designees;

(2) one person representing the grocery industry;

(3) two people representing economic or community development, one rural member
and one urban or suburban member;

(4) two people representing political subdivisions of the state;

(5) one person designated by the Council for Minnesotans of African Heritage;

(6) one person designated by the Minnesota Indian Affairs Council;

(7) one person designated by the Council on Asian Pacific Minnesotans;

(8) one person designated by the deleted text begin Chicano Latino Affairs deleted text end Council new text begin on Latino Affairs new text end ;

(9) one person designated by the Minnesota Farmers Union;

(10) one person representing public health experts;

(11) one person representing philanthropic foundations;

(12) one person representing economic or community development financial institutions;

(13) one person representing the University of Minnesota Regional Sustainable
Development Partnerships;

(14) two people representing organizations engaged in addressing food security, one
representative from a statewide hunger relief organization and one from a community-based
organization;

(15) one person representing immigrant farmer-led organizations;

(16) one person representing small business technical assistance with experience in food
retail; and

(17) up to four additional members with economic development, health equity, financial,
or other relevant expertise.

At least half of the members must reside in or their organizations must serve rural
Minnesota. The commissioner may remove members and fill vacancies as provided in
section 15.059, subdivision 4.

Subd. 3.

Duties.

The advisory committee must advise the commissioner of agriculture
on managing the program, establishing program criteria, establishing project eligibility
guidelines, establishing application processes and additional selection criteria, establishing
annual monitoring and accountability mechanisms, facilitating leveraging of additional
public and private investments, and promoting the program statewide.

Subd. 4.

Meetings.

The commissioner must convene the advisory committee at least
two times per year to achieve the committee's duties.

Subd. 5.

Administrative support.

The commissioner of agriculture must provide staffing,
meeting space, and administrative services for the advisory committee.

Subd. 6.

Chair.

The commissioner of agriculture or the commissioner's designee shall
serve as chair of the committee.

Subd. 7.

Compensation.

The public members of the advisory committee serve without
compensation or payment of expenses.

Subd. 8.

Expiration.

The advisory committee does not expire.

Sec. 3.

Minnesota Statutes 2024, section 17.117, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

The purpose of the agriculture best management practices loan
program is to provide low or no interest financing to farmers, agriculture supply businesses,
deleted text begin rural deleted text end landowners, and water-quality cooperatives for the implementation of agriculture and
other best management practices that reduce environmental pollution.

Sec. 4.

Minnesota Statutes 2024, section 17.117, subdivision 3, is amended to read:

Subd. 3.

Appropriations.

Up to deleted text begin $140,000,000 deleted text end new text begin $280,000,000 new text end of the balance in the clean
water revolving fund in section 446A.07, as determined by the Public Facilities Authority,
is appropriated to the commissioner for the establishment of this program. In addition, the
commissioner may receive appropriations from the legislature and grants or funds from
other sources for implementation of the program.

Sec. 5.

Minnesota Statutes 2024, section 17.118, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The commissioner may award a livestock investment
grant to deleted text begin a person deleted text end new text begin an eligible applicant new text end who raises livestock in this state equal to deleted text begin ten percent
of the first $500,000 of qualifying expenditures, provided the person makes qualifying
expenditures of at least $4,000 deleted text end new text begin 25 percent of the first $200,000 of qualifying expenditures new text end .
The commissioner may award multiple livestock investment grants to a person over the life
of the program and shall give preference to applicants who have not previously received a
grant under this section.

Sec. 6.

Minnesota Statutes 2024, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given deleted text begin them deleted text end .

(b) "Livestock" means new text begin animals raised for the production of fiber, meat, and animal
by-products for sale or as breeding stock, including but not limited to new text end beef cattle, dairy
cattle, swine, poultry, goats, mules, farmed Cervidae, Ratitae, bison, sheep, horses,
new text begin aquaculture, new text end and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps, and
well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste
management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor the
productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences, including but not limited to farmed Cervidae perimeter fences required
under section 35.155, subdivision 4; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable income.
Qualifying expenditures do not include an amount paid to refinance existing debt.

Sec. 7.

Minnesota Statutes 2024, section 17.118, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for a livestock investment grant, deleted text begin a person deleted text end new text begin an applicant new text end
must:

(1) be a resident of Minnesota new text begin , a unit of Tribal government, new text end or an entity specifically
defined in section 500.24, subdivision 2, that is eligible to own farmland and operate a farm
in this state under section 500.24;

(2) be the principal operator of the farm;

(3) hold a feedlot registration, if required; and

(4) apply to the commissioner on forms prescribed by the commissioner including a
statement of the qualifying expenditures made during the qualifying period along with any
proof or other documentation the commissioner may require.

Sec. 8.

Minnesota Statutes 2024, section 17.133, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Eligible farmer" means an individual who at the time that the grant is awarded:

(1) is a resident of Minnesota who intends to acquire farmland located within the state
and provide the majority of the day-to-day physical labor and management of the farm;

(2) grosses no more than $250,000 per year from the sale of farm products;

(3) has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland; and

(4) is not, and whose spouse is not, deleted text begin related by blood or marriage to an owner deleted text end new text begin a family
member of the owner new text end of the farmland that the individual intends to acquire. new text begin "Family member"
has the meaning given in section 267(c)(4) of the Internal Revenue Code.
new text end

(c) "Farm down payment" means an initial, partial payment required by a lender or seller
to purchase farmland.

(d) "Incubator farm" means a farm where:

(1) individuals are given temporary, exclusive, and affordable access to small parcels
of land, infrastructure, and often training, for the purpose of honing skills and launching a
farm business; and

(2) a majority of the individuals farming the small parcels of land grow industrial hemp,
cannabis, or one or more of the following specialty crops as defined by the United States
Department of Agriculture for purposes of the specialty crop block grant program: fruits
and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture
crops, floriculture crops, and nursery crops.

(e) "Limited land access" means farming without ownership of land and:

(1) the individual or the individual's child rents or leases the land, with the term of each
rental or lease agreement not exceeding three years in duration, from a person who is not
related to the individual or the individual's spouse by blood or marriage; or

(2) the individual rents the land from an incubator farm.

(f) "Limited market access" means the individual has gross sales of no more than
$100,000 per year from the sale of farm products.

Sec. 9.

Minnesota Statutes 2024, section 18B.26, subdivision 8, is amended to read:

Subd. 8.

PFAS prohibitions.

(a) Beginning January 1, 2026, the commissioner may not
register a deleted text begin cleaning deleted text end product new text begin in the categories listed in section 116.943, subdivision 5, paragraph
(a), new text end if the product contains intentionally added PFAS unless the commissioner determines
that the use of PFAS is a currently unavoidable use.

(b) Beginning January 1, 2032, the commissioner may not register a pesticide product
that contains intentionally added PFAS unless the commissioner determines that the use of
PFAS is a currently unavoidable use.

Sec. 10.

Minnesota Statutes 2024, section 18B.37, subdivision 6, is amended to read:

Subd. 6.

Access to pesticide application information.

(a) A physician deleted text begin licensed to
practice in Minnesota deleted text end new text begin , physician assistant, or nurse practitioner new text end , or a Minnesota licensed
veterinarian, may submit a request to the commissioner for access to available information
on the application of pesticides by a commercial or noncommercial pesticide applicator
related to a course of diagnosis, care, or treatment of a patient under the care of the physician
or veterinarian. new text begin For purposes of this subdivision, the physician, physician assistant, or nurse
practitioner making the request must be licensed to practice in Minnesota.
new text end

(b) A request for pesticide application information under this subdivision must include
available details as to the specific location of a known or suspected application that occurred
on one or more specified dates and times. The request must also include information on
symptoms displayed by the patient that prompted the physician or veterinarian to suspect
pesticide exposure. The request must indicate that any information discovered will become
part of the confidential patient record and will not be released publicly.

(c) Upon receipt of a request under paragraph (a), the commissioner, in consultation
with the commissioner of health, shall promptly review the information contained in the
request and determine if release of information held by the department may be beneficial
for the medical diagnosis, care, and treatment of the patient.

(d) The commissioner may release to the requester available information on the pesticide.
The commissioner shall withhold nonessential information such as total acres treated, the
specific amount of pesticides applied, and the identity of the applicator or property owner.

Sec. 11.

Minnesota Statutes 2024, section 18C.111, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Fertilizers and fertilizer by-products. new text end

new text begin The commissioner may coordinate the
protection of public health and the environment from the unreasonable adverse effects of
fertilizers and fertilizer by-products among state agencies and local governments and may
assist other state agencies and local governments in providing such protection.
new text end

Sec. 12.

Minnesota Statutes 2024, section 25.391, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

The provisions of this chapter do not apply to deleted text begin an individual deleted text end new text begin
a person new text end who prepares and sells home-processed pet treats for dogs and cats, provided the
following conditions are met:

(1) new text begin the person is an individual, a sole proprietorship, a single-member limited liability
company owned by one individual, or a limited liability company owned by two individuals
residing at the same residence;
new text end

new text begin (2) the person does not hold a commercial feed license under section 25.341;
new text end

new text begin (3) new text end the deleted text begin individual deleted text end new text begin person new text end is registered with the commissioner under section 28A.152,
subdivision 4;

deleted text begin (2) deleted text end new text begin (4) new text end the pet treats are not potentially hazardous food, as defined in Minnesota Rules,
part 4626.0020, subpart 62, that is safe for human consumption and for consumption by the
intended species;

deleted text begin (3) deleted text end new text begin (5) new text end the pet treats are baked or dehydrated;

deleted text begin (4) deleted text end new text begin (6) new text end the deleted text begin individual deleted text end new text begin person new text end displays at the point of sale a clearly legible sign or placard
stating, "These products are homemade and not subject to state inspection."; and

deleted text begin (5) deleted text end new text begin (7) new text end each individual pet treat package is labeled with the following: (i) the name and
registration number or address of the individual preparing the pet treat; (ii) the date on which
the pet treat was prepared; (iii) the ingredients listed; and (iv) the statement "These products
are homemade and not subject to state inspection."

Sec. 13.

Minnesota Statutes 2024, section 25.391, subdivision 2, is amended to read:

Subd. 2.

Direct sales to consumers.

deleted text begin An individual deleted text end new text begin A person new text end qualifying for the exemption
under subdivision 1 may sell the exempt pet treats to consumers in accordance with section
28A.152, except that pet treats may also be delivered by mail or commercial delivery.

Sec. 14.

Minnesota Statutes 2024, section 32D.01, is amended by adding a subdivision to
read:

new text begin Subd. 12a. new text end

new text begin Milk marketer. new text end

new text begin "Milk marketer" means any person who collects or procures
milk from dairy producers in Minnesota or markets milk on behalf of Minnesota dairy
producers. Milk marketer does not include:
new text end

new text begin (1) a person who only brokers a contract between a milk producer and a milk contractor
but does not become a party to the contract, take control of the milk, or accept payment on
behalf of the milk producer;
new text end

new text begin (2) a person who only buys or sells milk on a board of trade or commodity exchange;
new text end

new text begin (3) a person who collects milk solely from their own farm, for use in their own dairy
plant; or
new text end

new text begin (4) a person who only sells milk direct to the end consumer, from their own farm.
new text end

Sec. 15.

new text begin [32D.31] MILK MARKETING LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License requirement and eligibility. new text end

new text begin A current milk marketing license
is required for any milk marketer who procures more than 700,000 pounds of milk annually
from Minnesota farms. Before a milk marketing license is issued, the commissioner must
determine that the applicant meets the relevant licensing requirements.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An applicant for a milk marketing license must apply on a form
provided by the commissioner. An applicant must also submit:
new text end

new text begin (1) a report of the total milk payroll obligations that the applicant incurred during the
applicant's last completed fiscal year. If the applicant has not yet operated as a milk marketer
in Minnesota, the applicant shall estimate the total milk payroll obligations that the applicant
will incur during the applicant's first complete fiscal year;
new text end

new text begin (2) a report of any milk payroll obligations to dairy producers that were unpaid during
the applicant's last completed fiscal year and the payroll amount; and
new text end

new text begin (3) the total amount of hundredweights procured, collected, or marketed from Minnesota
milk producers during the applicant's last completed fiscal year.
new text end

new text begin Subd. 3. new text end

new text begin Term of license; transferability. new text end

new text begin A milk marketing license issued by the
commissioner expires on December 31 of each year, must be renewed annually, and is not
transferable.
new text end

new text begin Subd. 4. new text end

new text begin Fees and penalties. new text end

new text begin (a) The fee for a milk marketing license is:
new text end

new text begin (1) $100 for an initial license; and
new text end

new text begin (2) $250 annually for a license renewal.
new text end

new text begin (b) The fee must be paid to the commissioner before the commissioner issues an initial
or renewal license. If a person has not applied for a milk marketing license renewal before
January 1, a late fee of $100 must be imposed. After January 1, 2026, any person who
requires a milk marketing license and conducts activities subject to licensing within 365
days prior to obtaining a milk marketing license must pay a penalty of $250 to receive the
person's initial license.
new text end

new text begin Subd. 5. new text end

new text begin License requirements. new text end

new text begin An applicant for a milk marketing license must:
new text end

new text begin (1) complete monthly procurement payments under section 32D.11, if applicable;
new text end

new text begin (2) provide, upon request of the commissioner, a list of dairy producers from whom the
applicant collects milk;
new text end

new text begin (3) provide dairy field service as described in section 32D.02, subdivision 6;
new text end

new text begin (4) submit associated farm inspection fees as required under sections 32D.06 and 32D.08;
new text end

new text begin (5) provide, upon the request of the commissioner, a financial statement to demonstrate
that sufficient financial resources are available to satisfy payroll obligations for milk that
is procured or collected from Minnesota dairy producers; and
new text end

new text begin (6) satisfy all contractual payments and agreements made with any Minnesota dairy
producer that maintains a permit or certification as required under section 32D.05 or 32D.07.
A person's failure to pay dairy producers in accordance with contracts may result in the
revocation or suspension of the person's milk marketing license.
new text end

new text begin Subd. 6. new text end

new text begin Permit requirement. new text end

new text begin (a) A person conducting the following activities must
hold a valid milk marketing permit:
new text end

new text begin (1) any activities subject to a milk marketing license; or
new text end

new text begin (2) if the person is a Minnesota milk producer, marketing milk on the producer's own
behalf.
new text end

new text begin (b) An applicant must apply for a milk marketing permit on a form provided by the
commissioner. A milk marketing permit must be issued to an applicant in conjunction with
the initial license issued and must contain a milk marketing permit number. An applicant
for a milk marketing permit must not be required to pay a fee to the commissioner when
applying. A milk marketing permit is valid if the holder of the permit maintains a current
milk marketing license or continues to market the permit holder's own milk, with no renewals
required.
new text end

Sec. 16.

Minnesota Statutes 2024, section 35.155, subdivision 12, is amended to read:

Subd. 12.

Importation.

(a) A person must not import live Cervidae into the state from
a state or province where chronic wasting disease has been detected in the farmed or wild
cervid population in the last five years unless the animal has tested not detected for chronic
wasting disease with a validated live-animal test.

(b) Live Cervidae or Cervidae semen must originate from a herd that has been subject
to a state-, federal-, or provincial-approved chronic wasting disease herd certification program
and that has reached a status equivalent to the highest certification.

(c) Cervidae imported in violation of this section may be seized and destroyed by the
commissioner of natural resources.

(d) This subdivision does not apply to the interstate transfer of animals between two
facilities accredited by the Association of Zoos and Aquariums.

(e) Notwithstanding this subdivision, the commissioner of natural resources may issue
a permit allowing the importation of orphaned wild cervid species that are not susceptible
to chronic wasting disease from another state to an Association of Zoos and Aquariums
accredited institution in Minnesota following a joint risk-based assessment conducted by
the commissioner and the institution.

new text begin (f) Notwithstanding this subdivision, the state veterinarian may issue a permit to a zoo
that is a United States Department of Agriculture licensed exhibitor of regulated animals
to import live Cervidae from another state if the Cervidae are part of a herd that is:
new text end

new text begin (1) in the United States Department of Agriculture Herd Certification Program; or
new text end

new text begin (2) subject to similar equivalent disease surveillance at the discretion of the state
veterinarian.
new text end

Sec. 17.

Minnesota Statutes 2024, section 41A.09, subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other
renewable resources, including residue and waste generated from the production, processing,
and marketing of agricultural products, forest products, and other renewable resources, that:

(1) meets all of the specifications in ASTM specification deleted text begin D4806-04a deleted text end new text begin D4806-21a new text end ; and

(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is produced.

(c) "Commissioner" means the commissioner of agriculture.

(d) "Rural economic infrastructure" means the development of activities that will enhance
the value of agricultural crop or livestock commodities or by-products or waste from farming
operations through new and improved value-added conversion processes and technologies,
the development of more timely and efficient infrastructure delivery systems, and the
enhancement of marketing opportunities. "Rural economic infrastructure" also means land,
buildings, structures, fixtures, and improvements located or to be located in Minnesota and
used or operated primarily for the processing or the support of production of marketable
products from agricultural commodities or wind energy produced in Minnesota.

Sec. 18.

Minnesota Statutes 2024, section 41A.16, subdivision 7, is amended to read:

Subd. 7.

Eligibility for participants after April 1, 2023.

(a) A facility eligible for
payment under this section must source at least 80 percent raw materials from Minnesota.
If a facility is sited 50 miles or less from the state border, raw materials may be sourced
from within a 100-mile radius. Raw materials must be from agricultural or forestry sources
or from solid waste. The facility must be located in Minnesota, must begin production at a
specific location after April 1, 2023, and before 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 23,750 MMbtu of biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 19.

Minnesota Statutes 2024, section 41A.30, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Aircraft" has the meaning given in section 296A.01, subdivision 3.

(c) "Aviation gasoline" has the meaning given in section 296A.01, subdivision 7.

(d) "Commissioner" means the commissioner of agriculture.

(e) "Jet fuel" has the meaning given in section 296A.01, subdivision 8.

(f) "Qualifying taxpayer" means a taxpayer, as defined in section 290.01, subdivision
6, that is engaged in the business of:

(1) producing sustainable aviation fuel; or

(2) blending sustainable aviation fuel with aviation gasoline or jet fuel.

(g) "Sustainable aviation fuel" means liquid fuel that:

(1) is derived from biomass, as defined in section 41A.15, subdivision 2e new text begin , or gaseous
carbon oxides new text end ;

(2) is not derived from palm fatty acid distillates; and

(3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in
comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel as
determined by a test that shows:

(i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse
gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation
turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's
Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model
that accounts for reduced emissions throughout the fuel production process; or

(ii) that the fuel production pathway achieves at least a 50 percent reduction of the
aggregate attributional core life cycle emissions and the positive induced land use change
values under the life cycle methodology for sustainable aviation fuels adopted by the
International Civil Aviation Organization with the agreement of the United States.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024.
new text end

Sec. 20.

Minnesota Statutes 2024, section 41B.039, subdivision 2, is amended to read:

Subd. 2.

State participation.

The state may participate in a new real estate loan with
an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount
of the loan deleted text begin or deleted text end new text begin . Individual loans must be no less than $50,000 and no more than new text end $500,000 deleted text begin ,
whichever is less deleted text end . The interest rates and repayment terms of the authority's participation
interest may be different than the interest rates and repayment terms of the lender's retained
portion of the loan.

Sec. 21.

Minnesota Statutes 2024, 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 deleted text begin who deleted text end new text begin , a single-member limited liability
company owned by one individual, or a limited liability company owned by two individuals
who are family members. Each individual must new text end :

(1) deleted text begin is deleted text end new text begin be new text end a resident of Minnesota;

(2) deleted text begin is deleted text end new text begin be new text end seeking entry, or deleted text begin has deleted text end new text begin have new text end entered within the last ten years, into farming;

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

(4) except as provided in subdivision 2, paragraph (f), deleted text begin is not and whose spouse is not deleted text end new text begin
not be, nor may their spouse be, new text end a family member of the owner of the agricultural assets
from whom the beginning farmer is seeking to purchase or rent agricultural assets;

(5) except as provided in subdivision 2, paragraph (f), deleted text begin is not and whose spouse is not deleted text end new text begin
not be, nor may their spouse be, new text end 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

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

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

(ii) deleted text begin provides deleted text end new text begin provide new text end the majority of the day-to-day physical labor and management of
the farm;

(iii) deleted text begin has deleted text end new text begin have new text end , 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) deleted text begin demonstrates deleted text end new text begin demonstrate new text end to the authority a profit potential by submitting projected
earnings statements;

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

(vi) deleted text begin is deleted text end new text begin be new text end enrolled in or deleted text begin has deleted text end new text begin have new text end completed within ten years of their first year of farming
a financial management program approved by the authority or the commissioner of
agriculture;

(vii) deleted text begin agrees deleted text end new text begin agree new text end 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) deleted text begin has deleted text end new text begin have new text end other qualifications as specified by the authority.

The authority may waive the requirement in item (vi) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.

deleted text begin (d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055,
subdivision 1.
deleted text end

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

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

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

new text begin (g) "Limited land access farmer" means a farmer experiencing limited land access as
defined in section 17.133, subdivision 1.
new text end

(h) "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.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 22.

Minnesota Statutes 2024, section 41B.0391, subdivision 2, is amended to read:

Subd. 2.

Tax credit for owners of agricultural assets.

(a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer in the amount allocated by the authority under
subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:

(1) eight percent of the lesser of the sale price or the fair market value of the agricultural
asset, up to a maximum of $50,000;

(2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement, up to a maximum of $7,000 per year; or

(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority.

(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification deleted text begin and allocation deleted text end of a credit, in
a form and manner prescribed by the authority. new text begin Applications for credits allowed under
paragraph (a), clause (1), are due by November 1, 2025, and each year thereafter.
Applications for credits allowed under paragraph (a), clauses (2) and (3), are due by July
1, 2025, and each year thereafter.
new text end

(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. In determining reasonable cause, the authority
must look at which party was at fault in the termination of the agreement. If the authority
determines the owner of agricultural assets did not have reasonable cause, the owner of
agricultural assets must repay all credits received as a result of the rental agreement to the
commissioner of revenue. The repayment is additional income tax for the taxable year in
which the authority makes its decision or when a final adjudication under subdivision 5,
paragraph (a), is made, whichever is later.

(e) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.

(f) For purposes of the credit for the sale of agricultural land only, the family member
definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
For a sale to a family member to qualify for the credit, the sales price of the agricultural
land must equal or exceed the assessed value of the land as of the date of the sale. For
purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer
in which the beginning farmer or the beginning farmer's spouse is a family member of:

(1) the owner of the agricultural land; or

(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.

(g) For a sale to deleted text begin an emerging deleted text end new text begin a limited land access new text end farmer, the credit rate under paragraph
(a), clause (1), is twelve percent rather than eight percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 23.

Minnesota Statutes 2024, section 41B.0391, subdivision 4, is amended to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);

(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and

(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.

(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, and $4,000,000 for taxable years beginning after December
31, 2023. The authority must allocate credits on a first-come, first-served basis beginning
on January 1 of each year, except that recertifications for the second and third years of
credits under subdivision 2, paragraph (a), clauses (1) and (2), have first priority. Any
amount authorized but not allocated for taxable years ending before January 1, 2023, is
canceled and is not allocated for future taxable years. For taxable years beginning after
December 31, 2022, any amount authorized but not allocated in any taxable year does not
cancel and is added to the allocation for the next taxable year. For each taxable year, 50
percent of newly allocated credits must be allocated to emerging farmers. Any portion of a
taxable year's newly allocated credits that is reserved for emerging farmers that is not
allocated by deleted text begin September 30 deleted text end new text begin June 1 new text end of the taxable year is available for allocation to other
credit allocations beginning on deleted text begin October 1 deleted text end new text begin June 2 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end

Sec. 24.

Minnesota Statutes 2024, section 41B.0391, subdivision 6, is amended to read:

Subd. 6.

Report to legislature.

(a) No later than February 1 deleted text begin , 2024, deleted text end new text begin each year new text end the Rural
Finance Authority, in consultation with the commissioner of revenue, must provide a report
to the chairs and ranking minority members of the legislative committees having jurisdiction
over agriculture, economic development, rural development, and taxes, in compliance with
sections 3.195 and 3.197, on the beginning farmer tax credits under this section deleted text begin issued in deleted text end
deleted text begin tax years beginning after December 31, 2017, and before January 1, 2024 deleted text end .

(b) The report must include background information on beginning farmers in Minnesota
and any other information the commissioner and authority find relevant to evaluating the
effect of the credits on increasing opportunities for and the number of beginning farmers.

(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report
must include:

(1) the number and amount of credits issued under each clause;

(2) the geographic distribution of credits issued under each clause;

(3) the type of agricultural assets for which credits were issued under clause (1);

(4) the number and geographic distribution of beginning farmers whose purchase or
rental of assets resulted in credits for the seller or owner of the asset;

(5) the number and amount of credits disallowed under subdivision 2, paragraph (d); new text begin
and
new text end

(6) data on the number of beginning farmers by geographic region deleted text begin in calendar years deleted text end
deleted text begin 2017 through 2023 deleted text end , including:

(i) the number of beginning farmers by race and ethnicity, as those terms are applied in
the 2020 United States Census; and

(ii) to the extent available, the number of beginning farmers who are deleted text begin emerging deleted text end new text begin limited
land access new text end farmers deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (7) the number and amount of credit applications that exceeded the allocation available
in each year.
deleted text end

(d) For credits issued under subdivision 3, the report must include:

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

(3) a listing and description of each approved financial management program for which
credits were issued; and

(4) a description of the approval procedure for financial management programs not on
the list maintained by the authority, as provided in subdivision 3, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports due for credits issued for
taxable years beginning after December 31, 2025. The changes to paragraph (c), clause (6),
item (ii), are effective for reports due for credits issued for taxable years beginning after
December 31, 2026.
new text end

Sec. 25.

Minnesota Statutes 2024, section 41B.04, subdivision 8, is amended to read:

Subd. 8.

State participation.

With respect to loans that are eligible for restructuring
under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall
enter into a participation agreement or other financial arrangement whereby it shall participate
in a restructured loan to the extent of 45 percent of the primary principal deleted text begin or deleted text end new text begin . Individual loans
must be no less than $50,000 and no more than new text end $625,000 deleted text begin , whichever is less deleted text end . The authority's
portion of the loan must be protected during the authority's participation by the first mortgage
held by the eligible lender to the extent of its participation in the loan.

Sec. 26.

Minnesota Statutes 2024, section 41B.042, subdivision 4, is amended to read:

Subd. 4.

Participation limit; interest.

The authority may participate in new
seller-sponsored loans to the extent of 45 percent of the principal amount of the loan deleted text begin or deleted text end new text begin .
Individual loans must be no less than $50,000 and no more than new text end $500,000 deleted text begin , whichever is
less deleted text end . The interest rates and repayment terms of the authority's participation interest may be
different than the interest rates and repayment terms of the seller's retained portion of the
loan.

Sec. 27.

Minnesota Statutes 2024, section 41B.043, subdivision 1b, is amended to read:

Subd. 1b.

Loan participation.

The authority may participate in an agricultural
improvement loan with an eligible lender to a farmer who meets the requirements of section
41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming.
Participation is limited to 45 percent of the principal amount of the loan deleted text begin or deleted text end new text begin . Individual loans
must be no less than $50,000 and no more than new text end $500,000 deleted text begin , whichever is less deleted text end . The interest
rates and repayment terms of the authority's participation interest may be different than the
interest rates and repayment terms of the lender's retained portion of the loan.

Sec. 28.

Minnesota Statutes 2024, section 41B.045, subdivision 2, is amended to read:

Subd. 2.

Loan participation.

The authority may participate in a livestock expansion
and modernization loan with an eligible lender to a livestock farmer who meets the
requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively
engaged in a livestock operation. A prospective borrower must have a total net worth,
including assets and liabilities of the borrower's spouse and dependents, of less than
$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by
multiplying that amount by the cumulative inflation rate as determined by the United States
All-Items Consumer Price Index.

Participation is limited to 45 percent of the principal amount of the loan deleted text begin or deleted text end new text begin . Individual
loans must be no less than $50,000 and no more than new text end $625,000 deleted text begin , whichever is less deleted text end . The
interest rates and repayment terms of the authority's participation interest may be different
from the interest rates and repayment terms of the lender's retained portion of the loan.

Sec. 29.

Minnesota Statutes 2024, 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 new text begin : new text end (i) sustained within a county that was the subject
of a state or federal disaster declaration; (ii) due to the confirmed presence of a highly
contagious animal disease in Minnesota; (iii) due to an infectious human disease for which
the governor has declared a peacetime emergency; or (iv) due to an emergency as determined
by the authority;

(3) demonstrate an ability to repay the loan; deleted text begin and
deleted text end

(4) have received at least 25 percent of annual gross income from farming in the past
year deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) have a total net worth, including assets and liabilities of the borrower's spouse and
dependents, of less than $5,000,000.
new text end

Sec. 30.

Minnesota Statutes 2024, section 41B.056, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement deleted text begin a pilot deleted text end new text begin an new text end
agricultural microloan program to help finance the new text begin purchase of agricultural land or the
new text end production of specialty crops or eligible livestock. The authority may contract with an
intermediary to provide an efficient delivery system for this program.

Sec. 31.

Minnesota Statutes 2024, section 41B.057, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish a farm opportunity loan
program to provide loans that enable farmers to:

(1) add value to crops or livestock produced in Minnesota; new text begin or
new text end

deleted text begin (2) adopt best management practices that emphasize sufficiency and self-sufficiency;
deleted text end

deleted text begin (3) reduce or improve management of agricultural inputs resulting in environmental
improvements; or
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end increase production of on-farm energy.

Sec. 32.

Minnesota Statutes 2024, 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 $100,000 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 $250,000, whichever is less. The interest rate on the loans must not exceed six
percent. new text begin A borrower must have a total net worth, including assets and liabilities of the
borrower's spouse and dependents, of less than $1,700,000 in 2017 and an amount in
subsequent years that is adjusted for inflation by multiplying that amount by the cumulative
inflation rate as determined by the United States All-Items Consumer Price Index.
new text end

Sec. 33.

Minnesota Statutes 2024, section 223.17, subdivision 3, is amended to read:

Subd. 3.

Grain buyers and storage account; fees.

(a) The commissioner shall set the
fees for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses
of administering and enforcing sections 223.15 to 223.22. The fee for any license issued or
renewed after June 30, deleted text begin 2005, shall be set according to the following schedule: deleted text end new text begin 2025, is $500
for each licensed location.
new text end

deleted text begin (1) $140 plus $110 for each additional location for grain buyers whose gross annual
purchases are less than $100,000;
deleted text end

deleted text begin (2) $275 plus $110 for each additional location for grain buyers whose gross annual
purchases are at least $100,000, but not more than $750,000;
deleted text end

deleted text begin (3) $415 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $750,000 but not more than $1,500,000;
deleted text end

deleted text begin (4) $550 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $1,500,000 but not more than $3,000,000; and
deleted text end

deleted text begin (5) $700 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $3,000,000.
deleted text end

(b) In addition to the license fee required under paragraph (a), a grain buyer must pay
to the commissioner an annual examination fee for each licensed location, as follows:

	deleted text begin Bushel Capacity deleted text end	deleted text begin Examination Fee deleted text end
	deleted text begin Examinations without a grain measure deleted text end	deleted text begin $ deleted text end	deleted text begin 100 deleted text end
	deleted text begin Less than 150,001 deleted text end	deleted text begin $ deleted text end	deleted text begin 300 deleted text end
	deleted text begin 150,001 to 250,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 425 deleted text end
	deleted text begin 250,001 to 500,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 545 deleted text end
	deleted text begin 500,001 to 750,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 700 deleted text end
	deleted text begin 750,001 to 1,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 865 deleted text end
	deleted text begin 1,000,001 to 1,200,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,040 deleted text end
	deleted text begin 1,200,001 to 1,500,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,205 deleted text end
	deleted text begin 1,500,001 to 2,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,380 deleted text end
	deleted text begin More than 2,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,555 deleted text end

new text begin (1) examination fees must be calculated based on bushel capacity of each licensed
location with a charge of $0.0035 per bushel of capacity;
new text end

new text begin (2) examination fees must not be less than $350 and must not exceed $4,000; and
new text end

new text begin (3) a licensed location with no grain bin capacity must be charged a $350 examination
fee.
new text end

(c) The fee for any supplemental examination required by the commissioner under section
223.23 is deleted text begin $55 deleted text end new text begin $110 new text end per hour per examiner.

(d) A licensed grain buyer meeting the annual examination requirements under section
223.23 is exempt from the fees under paragraph (b) if the annual examination is conducted
by the Agricultural Marketing Service of the United State Department of Agriculture.

(e) A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

(f) There is created the grain buyers and storage account in the agricultural fund. Money
collected pursuant to sections 223.15 to 223.23 shall be paid into the state treasury and
credited to the grain buyers and storage account. Money in the account, including interest,
is appropriated to the commissioner for the administration and enforcement of sections
223.15 to 223.23.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 34.

Minnesota Statutes 2024, section 232.22, subdivision 3, is amended to read:

Subd. 3.

Fees; grain buyers and storage account.

(a) There is created in the agricultural
fund an account known as the grain buyers and storage account. The commissioner shall
set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24.
All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner
into the state treasury and credited to the grain buyers and storage account. Money in the
account, including interest, is appropriated to the commissioner for the administration and
enforcement of sections 232.20 to 232.24.

(b) All money collected pursuant to chapter 231 shall be paid by the commissioner into
the grain buyers and storage account. Money in the account is appropriated to the
commissioner for the administration and enforcement of chapter 231.

(c) The fees for a license to store grain are as follows:

(1) for a license to store grain, deleted text begin $110 deleted text end new text begin $300 new text end for each home rule charter or statutory city or
town in which a public grain warehouse is operated; new text begin and
new text end

deleted text begin (2) in addition to the license fee required under clause (1), a person with a license to
store grain in a public grain warehouse is subject to an examination fee for each licensed
location, as follows:
deleted text end

	deleted text begin Bushel Capacity deleted text end	deleted text begin Examination Fee deleted text end
	deleted text begin Less than 150,001 deleted text end	deleted text begin $ deleted text end	deleted text begin 300 deleted text end
	deleted text begin 150,001 to 250,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 425 deleted text end
	deleted text begin 250,001 to 500,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 545 deleted text end
	deleted text begin 500,001 to 750,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 700 deleted text end
	deleted text begin 750,001 to 1,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 865 deleted text end
	deleted text begin 1,000,001 to 1,200,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,040 deleted text end
	deleted text begin 1,200,001 to 1,500,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,205 deleted text end
	deleted text begin 1,500,001 to 2,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,380 deleted text end
	deleted text begin More than 2,000,000 deleted text end	deleted text begin $ deleted text end	deleted text begin 1,555 deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end the fee for supplemental examinations required by the commissioner under section
232.24 is deleted text begin $55 deleted text end new text begin $110 new text end per hour per examiner.

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 35.

Minnesota Statutes 2024, section 239.761, subdivision 3, is amended to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with biofuel must not be contaminated
with water or other impurities and must comply with ASTM specification deleted text begin D4814-11b deleted text end new text begin
D4814-24a new text end . Gasoline that is not blended with biofuel must also comply with the volatility
requirements in Code of Federal Regulations, title 40, part 1090.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision
4;

(2) shall not blend the gasoline with any oxygenate other than biofuel;

(3) shall not blend the gasoline with other petroleum products that are not gasoline or
biofuel;

(4) shall not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 36.

Minnesota Statutes 2024, section 239.761, subdivision 4, is amended to read:

Subd. 4.

Gasoline blended with ethanol; general.

(a) Gasoline may be blended with
agriculturally derived, denatured ethanol that complies with the requirements of subdivision
5.

(b) A gasoline-ethanol blend must:

(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part
1090;

(2) comply with ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end , or the gasoline base stock
from which a gasoline-ethanol blend was produced must comply with ASTM specification
deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end ; and

(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,
or otherwise removed from a refinery or terminal.

Sec. 37.

Minnesota Statutes 2024, section 239.761, subdivision 5, is amended to read:

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to be blended with gasoline must
be agriculturally derived and must comply with ASTM specification deleted text begin D4806-11a deleted text end new text begin D4806-21a new text end .
This includes the requirement that ethanol may be denatured only as specified in Code of
Federal Regulations, title 27, parts 20 and 21.

Sec. 38.

Minnesota Statutes 2024, section 239.761, subdivision 6, is amended to read:

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a) A person responsible for
the product shall comply with the following requirements:

(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total,
of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any
time in this state; and

(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
paragraph (b) must not be sold or offered for sale in this state.

(b) The oxygenates prohibited under paragraph (a) are:

(1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;

(2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end . Nonethanol oxygenates must not be blended into
gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery
or terminal.

Sec. 39.

Minnesota Statutes 2024, section 296A.01, subdivision 20, is amended to read:

Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means ethanol that is to be blended
with gasoline, has been agriculturally derived, and complies with ASTM specification
deleted text begin D4806-11a deleted text end new text begin D4806-21a new text end . This includes the requirement that ethanol may be denatured only
as specified in Code of Federal Regulations, title 27, parts 20 and 21.

Sec. 40.

Minnesota Statutes 2024, section 296A.01, subdivision 23, is amended to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline regardless of
their classification or uses, except casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise
removed from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and
commercially used as, a fuel in spark-ignition, internal combustion engines, and that when
tested by the Weights and Measures Division meets the specifications in ASTM specification
deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end .

(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end
and the volatility requirements in Code of Federal Regulations, title 40, part 1090.

(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision
24;

(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally
derived ethanol;

(3) must not blend the gasoline with other petroleum products that are not gasoline or
denatured, agriculturally derived ethanol;

(4) must not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 41.

Minnesota Statutes 2024, section 296A.01, subdivision 24, is amended to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or
ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that
complies with ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end . Oxygenates, other than denatured
ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.

Sec. 42.

new text begin [343.256] ELECTIVE DECLAWING PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given.
new text end

new text begin (b) "Cat" means an animal of the taxonomic family Felidae.
new text end

new text begin (c) "Declawing" means an onychectomy or any other surgical procedure to amputate or
modify a portion of a cat's paw in order to remove the cat's claws. Declawing does not
include the trimming of nonviable claw husk or placing nonpermanent nail caps.
new text end

new text begin (d) "Procedure performed solely for a therapeutic purpose" means a medically necessary
procedure to address an existing or recurring infection, disease, injury, or abnormal condition
in the claws, nail bed, or toe bone that jeopardizes the cat's health. Procedure performed
solely for a therapeutic purpose does not include a procedure performed for a cosmetic or
aesthetic purpose or to make a cat more convenient to keep or handle.
new text end

new text begin (e) "Tendonectomy" means a procedure in which the tendons to a cat's limbs, paws, or
toes are cut or modified so that the normal functioning of the claws is impaired.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited acts. new text end

new text begin Except as provided in subdivision 3, a person must not perform
surgical claw removal, declawing, or a tendonectomy on any cat or otherwise alter a cat's
toes, claws, or paws in a manner that prevents or impairs the normal function of the cat's
toes, claws, or paws.
new text end

new text begin Subd. 3. new text end

new text begin Therapeutic purpose. new text end

new text begin The prohibition in subdivision 2 does not apply to a
procedure performed solely for a therapeutic purpose.
new text end

Sec. 43. new text begin LOCAL FOOD PURCHASING ASSISTANCE GRANT PROGRAM.
new text end

new text begin (a) The commissioner of agriculture may award grants to eligible applicants to purchase
and distribute food at no cost to Minnesotans experiencing food insecurity. When awarding
grants, the commissioner of agriculture must give preference to applicants that:
new text end

new text begin (1) source 100 percent of food from Minnesota;
new text end

new text begin (2) source at least 70 percent of food from farmers who are experiencing limited land
access or limited market access as defined in Minnesota Statutes, section 17.133, subdivision
1; and
new text end

new text begin (3) demonstrate strong connections to individuals whose needs are not met through the
traditional emergency food system.
new text end

new text begin (b) Eligible applicants include but are not limited to individuals, nonprofit organizations,
for-profit businesses, Tribal governments, government entities, agricultural cooperatives,
economic development organizations, and educational institutions.
new text end

new text begin (c) Grantees may use up to 15 percent of each grant awarded under this section for
administrative and transportation expenses.
new text end

Sec. 44. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 239.77, subdivision 5, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, sections 35.68; and 35.830, new text end new text begin are repealed.
new text end

Sec. 45. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this article is effective August 1, 2025.
new text end

ARTICLE 4

LIVESTOCK MARKET AGENCY AND DEALER LICENSING PROVISIONS

Section 1.

Minnesota Statutes 2024, section 17A.03, subdivision 8, is amended to read:

Subd. 8.

new text begin Livestock dealer new text end agent.

" new text begin Livestock dealer new text end agent" means any individual who
is engaged by a livestock dealer to act as the dealer's representative.

Sec. 2.

Minnesota Statutes 2024, section 17A.03, subdivision 10, is amended to read:

Subd. 10.

new text begin Meat new text end packing deleted text begin plants deleted text end new text begin companies, packers, new text end and slaughtering houses.

" new text begin Meat
new text end packing deleted text begin plants deleted text end new text begin companies, new text end " new text begin "packers," new text end and "slaughtering houses" deleted text begin means deleted text end new text begin mean new text end places of
business deleted text begin where livestock purchased or acquired is slaughtered deleted text end new text begin that have the meaning given
to "packers" as defined in section 31B.02, subdivision 8 new text end .

Sec. 3.

Minnesota Statutes 2024, section 17A.03, subdivision 11, is amended to read:

Subd. 11.

Buying station.

"Buying station" means any stockyard or concentration point,
other than a public stockyard, at which livestock is bought and sold or assembled for shipment
to a new text begin meat new text end packing deleted text begin plant deleted text end new text begin company new text end or a public stockyard, or graded or weighed for the purpose
of establishing a basis for sale or reshipment.

Sec. 4.

Minnesota Statutes 2024, section 17A.03, is amended by adding a subdivision to
read:

new text begin Subd. 16. new text end

new text begin Meat packing company agent. new text end

new text begin "Meat packing company agent" means an
individual who is engaged by a meat packing company to act as the company's representative.
new text end

Sec. 5.

Minnesota Statutes 2024, section 17A.04, subdivision 1, is amended to read:

Subdivision 1.

Licensing provisions.

new text begin (a) new text end Licenses shall be issued to livestock market
agencies and public stockyards annually and shall expire on December 31 each year,
renewable annually thereafter. A separate license must be obtained for each separate
geographical location even though operated under the same management or same person,
partnership, firm, corporation, or livestock market. The license issued to a livestock market
agency deleted text begin and deleted text end new text begin or new text end public stockyard shall be conspicuously posted at the licensee's place of
business.

new text begin (b) new text end Licenses shall be required for livestock dealers deleted text begin and their agents deleted text end new text begin , livestock dealer
agents, meat packing companies, and meat packing company agents new text end for the period beginning
July 1 each year and ending June 30. new text begin A license issued under this subdivision is renewable
annually thereafter. new text end The license issued to a livestock dealer deleted text begin or the agent of a deleted text end new text begin , new text end livestock dealer new text begin
agent, meat packing company, or meat packing company agent new text end shall be carried by the person
deleted text begin so deleted text end new text begin who is new text end licensed. deleted text begin The deleted text end new text begin A new text end livestock dealer new text begin or meat packing company new text end shall be responsible
for the acts of the deleted text begin dealer's agents deleted text end new text begin livestock dealer agent or meat packing company agent new text end .
Licensed livestock market agencies, public stockyards, and livestock dealers shall be
responsible for the faithful performance of duty of the public livestock weighers at their
places of business. The license issued to a livestock market agency, public stockyard deleted text begin or deleted text end new text begin ,
meat packing company, meat packing company agent, new text end livestock dealer new text begin , new text end or deleted text begin agent of a deleted text end livestock
dealer new text begin agent new text end is not transferable. The operation of livestock market agencies, livestock dealers,
agents new text begin , new text end and deleted text begin packers deleted text end new text begin meat packing companies new text end at a public stockyard are exempt from sections
17A.01 to 17A.09 and 17A.12 to 17A.17.

Sec. 6.

Minnesota Statutes 2024, section 17A.04, subdivision 2, is amended to read:

Subd. 2.

Application.

Any person desiring to carry on the business of a livestock market
agency or livestock dealer, or both, or a public stockyard new text begin , livestock dealer agent, meat
packing company, or meat packing company agent new text end shall make application to the
commissioner on a form or forms provided by the commissioner.

Sec. 7.

Minnesota Statutes 2024, section 17A.04, subdivision 4, is amended to read:

Subd. 4.

Surety bonds required.

Each livestock market agency and livestock dealer
applying for a license deleted text begin under Laws 1974, chapter 347 deleted text end shall file with the commissioner a
valid and effective bond issued by a surety company licensed to do business in this state,
or meeting the requirements of section 17A.05, in the form and amount set forth in section
17A.05. No bond shall be required of a public stockyard or any agent of a bonded livestock
dealer. The commissioner may at any time raise or lower bond requirements if it appears
that a modification of such bond requirements is justified and will protect the public. The
bonds of livestock market agencies and dealers whose residence or principal place of business
is within the state of Minnesota shall name the commissioner as the trustee. deleted text begin Any deleted text end new text begin A new text end license
deleted text begin issued under Laws 1974, chapter 347 deleted text end shall automatically become void upon the termination
of the surety bond covering the licensed operations.

Sec. 8.

Minnesota Statutes 2024, section 17A.04, subdivision 6, is amended to read:

Subd. 6.

Refusal to license.

The commissioner shall refuse to issue new text begin or renew new text end a livestock
market agency new text begin , meat packing company, new text end or livestock dealer license if the applicant has not
filed a surety bond in the form and amount required under this section and section 17A.05;
the commissioner may refuse to issue new text begin or renew new text end a license if the applicant new text begin : new text end (1) has not
satisfactorily demonstrated by a current balance sheet and financial statement that the
applicant's assets exceed liabilities; (2) has been found by the department to have failed to
pay, without reasonable cause, obligations incurred in connection with livestock transactions;
(3) has failed to maintain and operate livestock or monorail scales in a manner to ensure
accurate and correct weights; or (4) has failed to comply with other statutes, rules, or
regulations enforced by the commissioner, the Board of Animal Health, the Division of
Weights and Measures of the Department of Commerce, or the federal Packers and
Stockyards Administration.

Sec. 9.

Minnesota Statutes 2024, section 17A.04, subdivision 7, is amended to read:

Subd. 7.

Revocation of license.

Whenever the commissioner finds that any livestock
market agency new text begin , meat packing company, new text end or livestock dealer has violated the provisions of
this chapter, or has failed to comply with other laws, rules, or regulations enforced by the
Board of Animal Health, the Division of Weights and Measures of the Department of
Commerce, or the federal Packers and Stockyards Administration, the commissioner may,
by order, pursuant to the provisions of chapter 14, and this subdivision, revoke the license
of the offender. deleted text begin Before any such license shall be revoked, the licensee shall be furnished
with a statement of the complaints made against the licensee, and a hearing shall be had
before the commissioner upon at least ten days' notice to the licensee to determine whether
such license shall be revoked, which notice may be served either by certified mail addressed
to the address of the licensee as shown in the license application or in the manner provided
by law for the service of a summons. At the time and place fixed for hearing, the
commissioner or any official, employee or agent of the department authorized by the
commissioner, shall receive evidence, administer oaths, examine witnesses, hear the
testimony and thereafter file an order either dismissing the proceedings or revoking the
license.
deleted text end

Sec. 10.

Minnesota Statutes 2024, section 17A.04, subdivision 8, is amended to read:

Subd. 8.

Suspension of license.

Whenever the commissioner finds that the licensee has
violated provisions of this chapter, or has failed to comply with other laws, rules, or
regulations enforced by the Board of Animal Health, the Division of Weights and Measures
of the Department of Commerce, or the federal Packers and Stockyards Administration,
and that the continued activity of a licensee may cause irreparable injury or loss to persons
engaged in business with the licensee, the commissioner may, without hearing, suspend the
license of the licensee, provided that when a license is so suspended, the commissioner shall
immediately initiate procedures to afford the licensee a hearing pursuant to subdivision 7
deleted text begin except that the ten days' notice required in subdivision 7 may be waived by the licensee deleted text end .

Sec. 11.

Minnesota Statutes 2024, section 17A.06, subdivision 2, is amended to read:

Subd. 2.

Hearing on claims.

In case of default by the licensee, the commissioner shall
have the power to have the matter heard as a contested case pursuant to procedures outlined
in chapter 14. deleted text begin No hearing shall be required if all affected parties to a bond claim proceeding
waive their right to a hearing and agree to accept the commissioner's determination as to
the validity of the claim and the allocation of the proceeds of the bond. deleted text end new text begin The commissioner
must first determine whether a claim is valid. If the commissioner determines that a claim
is valid, the commissioner must notify the licensee of the determination and that the licensee
has 15 days to either pay the claim or appeal the determination. If the licensee does not
respond within 15 days, the determination must be considered a final order by the
commissioner. If the commissioner determines that a claim is not valid, the commissioner
must notify the claimant of the determination and that the claimant has 15 days to appeal
the determination. If the claimant does not respond within 15 days, the determination must
be considered a final order by the commissioner.
new text end

Sec. 12.

Minnesota Statutes 2024, section 17A.06, subdivision 3, is amended to read:

Subd. 3.

Public notice.

deleted text begin Prior to a hearing deleted text end new text begin After the commissioner determines that a
claim is valid new text end , the commissioner shall publish a notice setting forth the default of the licensee
and requiring all claimants to file proof of claim with the commissioner within 45 days of
the date such notice is published or be barred from participating in the proceeds of the bond.
Such publication shall be made in a newspaper published in the county in which the licensee's
principal place of business is located. The commissioner shall also fulfill any notice
requirements prescribed by chapter 14 and rules of the Office of Administrative Hearings.
No claim shall be allowed unless it is filed with the commissioner within one year of the
date of the transaction. If a livestock market agency new text begin , meat packing company, new text end or livestock
dealer has on file a Packers and Stockyards Act bond and is registered with the Packers and
Stockyards Administration, the terms of the bond or that federal agency's regulations will
control.

Sec. 13.

Minnesota Statutes 2024, section 17A.07, is amended to read:

17A.07 PROHIBITED CONDUCT.

It shall be unlawful for any person to new text begin : new text end (1) carry on the business of a livestock market
agency, livestock dealer, new text begin livestock dealer agent, meat packing company, meat packing
company agent, new text end or public stockyard without a valid and effective license issued by the
commissioner under the provisions of section 17A.04; (2) carry on the business of a livestock
market agency new text begin , meat packing company, new text end or livestock dealer without filing and maintaining
a valid and effective surety bond in conformity with sections 17A.04 and 17A.05; (3) carry
on the business of a livestock market agency new text begin , meat packing company, new text end or livestock dealer
if the person cannot pay debts as they become due or ceases to pay debts in the ordinary
course of business as they become due; (4) use or allow to be used any livestock scale or
monorail scale which has not been certified and approved for official use or has been found
to be inaccurate; (5) fail to maintain and operate livestock or monorail scales in a manner
to ensure accurate and correct weights; (6) weigh livestock or carcasses at other than true
and correct weights or issue accounts and records on the basis of inaccurate or incorrect
weights; (7) engage in or use any unfair or deceptive practice or device in connection with
marketing of livestock; (8) willfully make or cause to be made any false entry or statement
of fact in any application, financial statement or report filed with the department under this
chapter.

Sec. 14.

Minnesota Statutes 2024, section 17A.08, is amended to read:

17A.08 RECORD KEEPING.

Every person shall make and retain such accounts, records, and memoranda necessary
to fully and correctly disclose all transactions involved in the person's business, including
the true ownership of such business by stockholding or otherwise. Whenever the
commissioner finds that the accounts, records, and memoranda of any such person do not
fully and correctly disclose all transactions involved in the person's business, the
commissioner may deleted text begin prescribe deleted text end new text begin take enforcement actions in addition to prescribing new text end the manner
or form and length of time for retention which such accounts, records, and memoranda shall
be kept. The commissioner shall at all reasonable times have access to, for the purpose of
examination, and the right to copy any documentary evidence of any person being
investigated or proceeded against.

Sec. 15.

Minnesota Statutes 2024, section 17A.15, is amended to read:

17A.15 POWERS AND DUTIES OF COMMISSIONER.

The commissioner shall enforce the provisions of deleted text begin Laws 1974, chapter 347 deleted text end new text begin this chapter new text end
and shall promulgate, in the manner provided by law, such rules as the commissioner deems
necessary or desirable, and may cooperate with any department of state or government, to
carry out the provisions of sections 17A.01 to 17A.15. The commissioner or a duly authorized
agent shall have the power to issue subpoenas, administer oaths and affirmations, examine
witnesses, receive evidence, and shall have the power to require by subpoena the attendance
and testimony of witnesses and the production of all such documentary evidence relating
to any matter under investigation or administrative proceeding.

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2025.
new text end

ARTICLE 5

SEED POTATO PROVISIONS

Section 1.

Minnesota Statutes 2024, section 18J.01, is amended to read:

18J.01 DEFINITIONS.

(a) The definitions in new text begin this section; chapters 18G, 18H, 18K, 27, 223, 231, and 232; and
new text end sections deleted text begin 18G.02, 18H.02, 18K.02, 27.01, 223.16, 231.01, and 232.21 deleted text end new text begin 21.111 to 21.125 and
21.80 to 21.92 new text end apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections deleted text begin 21.80 deleted text end new text begin 21.111 new text end to deleted text begin 21.92 deleted text end new text begin
21.125 new text end .

Sec. 2.

Minnesota Statutes 2024, section 18J.02, is amended to read:

18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G, 18H, 18K,
27, 223, 231, and 232; sections new text begin 21.111 to 21.125, and new text end 21.80 to 21.92; and associated rules.

Sec. 3.

Minnesota Statutes 2024, section 18J.03, is amended to read:

18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92, is civilly liable for any violation of one of those
statutes or associated rules by the person's employee or agent.

Sec. 4.

Minnesota Statutes 2024, section 18J.04, subdivision 1, is amended to read:

Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites where
a person manufactures, distributes, uses, handles, disposes of, stores, or transports seeds,
plants, grain, household goods, general merchandise, produce, or other living or nonliving
products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules.

Sec. 5.

Minnesota Statutes 2024, section 18J.04, subdivision 2, is amended to read:

Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27, 223,
231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules;

(2) sampling of sites, seeds, plants, products, grain, household goods, general
merchandise, produce, or other living or nonliving objects that are manufactured, stored,
distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H,
18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling, or
disposal of seeds, plants, products, grain, household goods, general merchandise, produce,
or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27, 223, 231,
or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules;

(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections
new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules; or

(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules.

(b) The commissioner may enter any public or private premises during or after regular
business hours without notice of inspection when a suspected violation of chapter 18G,
18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated
rules may threaten public health or the environment.

Sec. 6.

Minnesota Statutes 2024, section 18J.04, subdivision 3, is amended to read:

Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall provide
the owner, operator, or agent in charge with a receipt describing any samples obtained. If
requested, the commissioner shall split any samples obtained and provide them to the owner,
operator, or agent in charge. If an analysis is made of the samples, a copy of the results of
the analysis must be furnished to the owner, operator, or agent in charge within 30 days
after an analysis has been performed. If an analysis is not performed, the commissioner
must notify the owner, operator, or agent in charge within 30 days of the decision not to
perform the analysis.

(b) The sampling and analysis must be done according to methods provided for under
applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to
21.125 or new text end 21.80 to 21.92; or associated rules. In cases not covered by those sections and
methods or in cases where methods are available in which improved applicability has been
demonstrated the commissioner may adopt appropriate methods from other sources.

Sec. 7.

Minnesota Statutes 2024, section 18J.04, subdivision 4, is amended to read:

Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation of
chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92;
or associated rules has occurred may request an inspection by giving notice to the
commissioner of the violation. The notice must be in writing, state with reasonable
particularity the grounds for the notice, and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that a
violation has occurred, the commissioner shall make a special inspection in accordance with
the provisions of this section as soon as practicable, to determine if a violation has occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover an
entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred do
not exist, the commissioner must notify the person making the request in writing of the
determination.

Sec. 8.

Minnesota Statutes 2024, section 18J.05, subdivision 1, is amended to read:

Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G, 18H, 18K, 27,
223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or an associated rule is a
violation of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other officers
having authority in the enforcement of the general criminal laws must take action to the
extent of their authority necessary or proper for the enforcement of chapter 18G, 18H, 18K,
27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules or
valid orders, standards, stipulations, and agreements of the commissioner.

Sec. 9.

Minnesota Statutes 2024, section 18J.05, subdivision 2, is amended to read:

Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G, 18H, 18K,
27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules occur
or the commissioner believes the public interest will be best served by a suitable notice of
warning in writing, this section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

Sec. 10.

Minnesota Statutes 2024, section 18J.05, subdivision 6, is amended to read:

Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered, or
certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or
new text end 21.80 to 21.92; or associated rules must appoint the commissioner as the agent upon whom
all legal process may be served and service upon the commissioner is deemed to be service
on the licensee, permittee, registrant, or certified person.

Sec. 11.

Minnesota Statutes 2024, section 18J.06, is amended to read:

18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other information
as part of:

(1) an application for registration, license, certification, or permit under chapter 18G,
18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated
rules;

(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules; or

(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules.

Sec. 12.

Minnesota Statutes 2024, section 18J.07, subdivision 3, is amended to read:

Subd. 3.

Cancellation of registration, permit, license, certification.

The commissioner
may cancel or revoke a registration, permit, license, or certification provided for under
chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92;
or associated rules or refuse to register, permit, license, or certify under provisions of chapter
18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or
associated rules if the registrant, permittee, licensee, or certified person has used fraudulent
or deceptive practices in the evasion or attempted evasion of a provision of chapter 18G,
18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated
rules.

Sec. 13.

Minnesota Statutes 2024, section 18J.07, subdivision 4, is amended to read:

Subd. 4.

Service of order or notice.

(a) If a person is not available for service of an
order, the commissioner may attach the order to the facility, site, seed or seed container,
plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223,
231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules and notify the
owner, custodian, other responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated under
chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92;
or associated rules may not be sold, used, tampered with, or removed until released under
conditions specified by the commissioner, by an administrative law judge, or by a court.

Sec. 14.

Minnesota Statutes 2024, section 18J.07, subdivision 5, is amended to read:

Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration, or
certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections new text begin 21.111 to 21.125 or new text end 21.80 to 21.92; or associated rules may not allow a final
judgment against the applicant for damages arising from a violation of those statutes or
rules to remain unsatisfied for a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this
chapter results in automatic suspension of the license, permit, registration, or certification.

Sec. 15.

Minnesota Statutes 2024, section 18J.09, is amended to read:

18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.

Penalties, cost reimbursements, fees, and other money collected under this chapter must
be deposited into the state treasury and credited to the appropriate nursery and phytosanitary new text begin
account under section 18H.17 new text end , industrial hemp new text begin account under section 18K.07 new text end , deleted text begin or deleted text end seed new text begin potato
inspection new text end account new text begin under section 21.115, seed inspection account under section 21.92, or
grain buyers and storage account under sections 223.17 and 232.22 new text end .

Sec. 16.

Minnesota Statutes 2024, section 21.111, is amended to read:

21.111 DEFINITIONS.

Subdivision 1.

Scope.

When used in sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end the terms defined
in this section shall have the meanings ascribed to them.

deleted text begin Subd. 2. deleted text end

deleted text begin Inspected. deleted text end

deleted text begin "Inspected" means that the potato plants are examined in the field
and that the harvested potatoes produced by the potato plants are examined by or under the
authority of the commissioner. For seed potatoes produced in a lab, inspected means that
the lab's records, including records related to the lab's procedures and protocols, as well as
the seed potatoes, have been examined under the authority of the commissioner.
deleted text end

Subd. 3.

Certified.

"Certified" means that the potatoes were inspected while growing
in the field and new text begin , when possible, new text end again after being harvested, and were thereafter duly certified
by or under the authority of the commissioner, as provided in sections 21.111 to deleted text begin 21.122,
and as provided by rules adopted and published by the commissioner deleted text end new text begin 21.125 new text end . For seed
potatoes produced in a lab, certified means that:

(1) the seed potato lab facilities and the lab's procedures and protocols have been
examined under the authority of the commissioner; and

(2) the seed potatoes have been inspected after they have been harvested, removed, or
released from the lab, and were duly certified by or under the authority of the commissioner,
as provided in sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end .

deleted text begin Subd. 3a. deleted text end

deleted text begin Interstate cooperation. deleted text end

deleted text begin In order to best use state resources, the commissioner
may enter into agreements with other seed potato certification entities to carry out the
purposes of sections 21.111 to 21.122. Any agreement may provide for field inspections,
shipping point inspections, winter tests, and other certification functions to be carried out
by personnel employed by either entity according to methods determined by the certification
entities of the respective areas. The commissioner may extend seed potato certification
services to states where growers wish to grow certified seed potatoes and the state does not
have a seed potato certification program. Any agreement must be reported to the chairs of
the legislative committees responsible for the budget or policy of the seed potato inspection
program and to the commissioner of management and budget.
deleted text end

new text begin Subd. 3b. new text end

new text begin Certified seed potatoes. new text end

new text begin "Certified seed potatoes" means potatoes that have
been produced, graded, sacked or placed in bulk, inspected, and certified in accordance with
this chapter.
new text end

new text begin Subd. 3c. new text end

new text begin Class. new text end

new text begin "Class" means the seed quality level related to compliance with
tolerances for diseases and varietal purity.
new text end

new text begin Subd. 3d. new text end

new text begin Clone. new text end

new text begin "Clone" means a unit of seed potatoes that is the progeny of one plant,
which has been tested to become eligible to produce Generation 1 class seed potatoes.
new text end

new text begin Subd. 3e. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture or
the commissioner's designee.
new text end

new text begin Subd. 3f. new text end

new text begin Crop. new text end

new text begin "Crop" means all lots produced on a farm in one year.
new text end

new text begin Subd. 3g. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Agriculture.
new text end

new text begin Subd. 3h. new text end

new text begin Explant. new text end

new text begin "Explant" means an in vitro potato plant or a plantlet that is produced
by rooting an excised tip of a tuber sprout or an axillary bud from a growing plant and that
serves as a parent for a whole clone or accession of micropropagated plants or plantlets.
new text end

new text begin Subd. 3i. new text end

new text begin Farm. new text end

new text begin "Farm" means a potato-growing enterprise. Farm includes all land,
equipment, storage facilities, and laborers used to produce potatoes.
new text end

new text begin Subd. 3j. new text end

new text begin Field. new text end

new text begin "Field" means a plot of land on a farm where potatoes are grown.
new text end

new text begin Subd. 3k. new text end

new text begin Inspected. new text end

new text begin (a) For plants growing in a field, "inspected" means that the
commissioner has examined the plants in the field where the plants are grown and has
visually assessed the plants for disease and factors impacting quality.
new text end

new text begin (b) For harvested potatoes, inspected means that the commissioner has observed the
tubers and, when requested, the commissioner has evaluated the tubers for quality and
conditions described in section 21.125.
new text end

new text begin (c) For seed potatoes produced by a laboratory, inspected means that the commissioner
has examined the seed potatoes and the laboratory's records, including records related to
the laboratory's procedures and protocols.
new text end

new text begin Subd. 3l. new text end

new text begin Lot. new text end

new text begin "Lot" means a group of seed potatoes of one variety, planted in one
continuous plot, grown on the same farm, and physically separated from other lots while
being grown and stored.
new text end

new text begin Subd. 3m. new text end

new text begin Material in maintenance. new text end

new text begin "Material in maintenance" means propagative
material, plantlets, or tubers that are maintained, not multiplied, under controlled laboratory
conditions.
new text end

new text begin Subd. 3n. new text end

new text begin Roguing. new text end

new text begin "Roguing" is the process of removing infected plants from a field
of certified seed potatoes.
new text end

new text begin Subd. 3o. new text end

new text begin Stand. new text end

new text begin "Stand" is the live plant population in a certified seed potato lot.
new text end

Subd. 5.

Seed potatoes.

"Seed potatoes" means potatoes used, sold, offered or exposed
for sale, or held with intent to sell or as a sample representing any lot or stock of potatoes
offered or exposed for sale or held with intent to sell within this state, for the purpose of
planting.

Subd. 6.

Person.

"Person" includes an individual, partnership, corporation, company,
society, association, and firms.

new text begin Subd. 7. new text end

new text begin Physically separated. new text end

new text begin "Physically separated" means separated by at least the
width of one row and markings such as flags at every corner of the lot.
new text end

new text begin Subd. 8. new text end

new text begin Rejected. new text end

new text begin "Rejected" means that a field or lot fails to meet the certification
standards in this chapter.
new text end

new text begin Subd. 9. new text end

new text begin Tuber units. new text end

new text begin "Tuber units" means the separate pieces of one tuber that are
planted consecutively in two or more hills in a row.
new text end

new text begin Subd. 10. new text end

new text begin Winter testing. new text end

new text begin "Winter testing" means growing out and visually inspecting
a representative sample of tubers from each seed lot for stand, vigor, varietal purity, and
disease.
new text end

Sec. 17.

Minnesota Statutes 2024, section 21.112, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Interstate cooperation. new text end

new text begin In order to best use state resources, the commissioner
may enter into agreements with other seed potato certification entities to carry out the
purposes of sections 21.111 to 21.125. An agreement under this subdivision may provide
for field inspections, shipping point inspections, winter testing, and other certification
functions to be carried out by personnel employed by either the commissioner or other seed
potato certification entities according to methods determined by the seed potato certification
entities. The commissioner may extend seed potato certification services to a state where
growers wish to grow certified seed potatoes and where the state does not have a seed potato
certification program. Any agreement under this subdivision must be reported to the chairs
and ranking minority members of the legislative committees responsible for the budget or
policy of the seed potato inspection program and to the commissioner of management and
budget.
new text end

Sec. 18.

Minnesota Statutes 2024, section 21.113, is amended to read:

21.113 new text begin SHIPPING POINT new text end CERTIFICATES deleted text begin OF INSPECTION deleted text end new text begin ; CERTIFICATES
OF ORIGIN; AND BULK CERTIFICATES new text end .

new text begin Subdivision 1. new text end

new text begin Shipping point inspections. new text end

(a) The commissioner shall issue new text begin shipping
point new text end certificates of inspection only when seed potatoes have been inspected while growing
in the field and again after being harvested.

(b) For seed potatoes produced in a lab new text begin or greenhouse new text end , the commissioner shall issue
certificates of inspection only after:

(1) the seed potato deleted text begin lab deleted text end new text begin growth new text end facility and the deleted text begin lab's deleted text end new text begin growth facility's new text end records have been
inspected; and

(2) the seed potatoes have been inspected after they have been harvested, removed, or
released from the lab new text begin or greenhouse new text end .

(c) Certificates of inspection under this section shall show the varietal purity and the
freedom from disease and physical injury of such potatoes and any other information as
may be prescribed by deleted text begin rules adopted and published under deleted text end sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end .

new text begin Subd. 2. new text end

new text begin Other certificates. new text end

new text begin (a) The use of a certificate of origin requires the approval
of the seller and the purchaser and must only be used for intrastate shipments between
certified seed potato producers. The certificate of origin must contain information considered
necessary by the commissioner and must at a minimum identify the producer, receiver,
variety, classification, quantity, date of shipment, and lot of the seed potatoes. The limitation
of warranty as described in paragraph (c) must not include any representation of the condition
of the potatoes at the time of shipment. A certificate of origin must only be used for intrastate
shipment if a shipping point inspection is not available. Use of a certificate of origin must
be approved by the commissioner prior to shipment.
new text end

new text begin (b) A bulk certificate must include the date of issuance, class, grade, lot number, and
approximate weight of the load.
new text end

new text begin (c) A certification does not represent a warranty of any kind, express or implied, including
merchantability, as to the quality of the crop produced from the certified seed potatoes. A
certification must only represent that the seed potatoes were produced, graded, sacked or
placed in bulk, and inspected in accordance with this chapter. A certification under this
subdivision must not include any representation of the condition of the potatoes at the time
of shipment.
new text end

Sec. 19.

Minnesota Statutes 2024, section 21.115, is amended to read:

21.115 FEES; SEED POTATO INSPECTION ACCOUNT.

The commissioner shall fix the fees for all inspections and certifications in such amounts
as from time to time may be found necessary to pay the expenses of carrying out and
enforcing the purposes of sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end , with a reasonable reserve, and
shall require the same to be paid before such inspections or certifications are made. All
moneys collected as fees or as penalties for violations of any of the provisions of such
sections shall be paid into the agricultural fund and credited to the seed potato inspection
account of the commissioner, which account is hereby created and appropriated for carrying
out the purposes of sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end . Interest, if any, received on deposits
of these moneys shall be credited to the account, and there shall be paid into this fund any
sum provided by the legislature for the purpose of carrying out the provisions of such
sections.

Sec. 20.

Minnesota Statutes 2024, section 21.117, is amended to read:

21.117 APPLICATIONS FOR INSPECTIONS; WITHDRAWALS new text begin ;
AMENDMENTS new text end .

(a) Any person may make application to the commissioner for inspection or certification
of seed potatoes growing or to be grown. Upon receiving such application and the required
fee and such other information as may be required, the commissioner shall cause such
potatoes to be inspected or certified in accordance with the provisions of sections 21.111
to deleted text begin 21.122 and the rules adopted and published thereunder deleted text end new text begin 21.125 new text end .

(b) If a grower wishes to withdraw deleted text begin a field or lab deleted text end new text begin an application new text end after having made new text begin a
timely new text end application for inspection and such withdrawal is requested before the field or lab
inspection has been made, the fee paid shall be refunded to said grower. new text begin A grower must
submit a withdrawal request in writing and include a reason for withdrawal. A grower must
remove withdrawn acres from production before the first field inspection.
new text end

new text begin (c) If a grower wishes to amend an application after submitting a timely application for
inspection, the grower must submit the request in writing, including a reason for the
amendment.
new text end

Sec. 21.

Minnesota Statutes 2024, section 21.119, is amended to read:

21.119 USE OF CERTAIN TERMS FORBIDDEN; EXCEPTIONS.

It shall be unlawful to use or employ the term "certified" or the term "inspected," or any
term or terms conveying a meaning substantially equivalent to the meaning of either of
these terms, either orally or in writing, printing, marking, or otherwise in reference to or in
connection with, or in advertising or characterizing or labeling seed potatoes or the containers
thereof, unless such potatoes shall have been duly inspected and certified pursuant to the
provisions of sections 21.111 to deleted text begin 21.122 deleted text end new text begin 21.125 new text end .

Sec. 22.

Minnesota Statutes 2024, section 21.1195, is amended to read:

21.1195 MINIMUM STANDARDS FOR PLANTING.

new text begin (a) new text end deleted text begin Seed deleted text end Potatoes may not be planted in the state in lots of ten or more acres unless the
seed meets the minimum disease standards prescribed by the commissioner. deleted text begin Seed deleted text end Potatoes
may meet the standards by being certified in accordance with this chapter and rules adopted
by the commissioner, or under the certification program of another state or province which,
in the judgment of the commissioner, provides equivalent assurances of seed potato quality.
deleted text begin Seed deleted text end Potatoes may be planted without certification if they have had at least field inspection
as required for certified seed potatoes, have passed the field inspection standards of disease
tolerance, and are free from ring rot. deleted text begin A person that plants seed potatoes in violation of this
section is subject to a civil penalty of $20 per acre for each acre or part of an acre planted
in violation of this section. deleted text end Failure to maintain complete and accurate records in accordance
with this section deleted text begin or rules adopted by the commissioner is an additional violation resulting
in a separate civil penalty of $200 for each failure deleted text end new text begin is a violation and subject to enforcement
under chapter 18J new text end .

new text begin (b) new text end If there is not available to be planted in this state, in any year, a sufficient volume
of potato seed meeting certified seed potato disease standards, in any or all varieties, the
commissioner may, upon application by one or more growers, permit seed that does not
comply with this section to be planted for that growing season if the seed does not pose a
serious disease threat.

new text begin (c) new text end Each grower shall keep records of each lot of deleted text begin seed deleted text end potatoes planted. For each growing
season, the records must include, by field, the variety new text begin , planting location, new text end and source of the
seed potatoes. Each grower shall new text begin register fields and new text end file records as prescribed by the
commissioner. All records must be made available for inspection by the commissioner or
the commissioner's agents during normal business hours.

new text begin (d) new text end In addition to the enforcement powers and penalties in this section, the commissioner
may issue a subpoena to a grower in order to compel delivery of records which are required
under this section. These subpoenas are enforceable by any court of competent jurisdiction.

Sec. 23.

Minnesota Statutes 2024, section 21.1196, subdivision 2, is amended to read:

Subd. 2.

Restriction.

(a) deleted text begin The seed potato certification requirements under sections 21.111
to 21.122 apply to potatoes grown in plots of ten acres or more in the restricted seed potato
growing area. Qualifying potatoes grown in the restricted seed potato growing area must
be certified as seed potatoes. deleted text end new text begin A grower who seeks to plant potatoes in the restricted seed
potato growing area and who does not intend to have the potatoes certified as seed potatoes
must meet the following requirements:
new text end

new text begin (1) seed potatoes planted in the restricted seed potato growing area must have been
certified before planting. For seed potatoes to be certified, the seed potatoes must meet the
standards of this chapter or the standards of a certification program of another state or
province that, in the judgment of the commissioner, provides equivalent assurances of seed
potato quality;
new text end

new text begin (2) certification documentation for all lots planted on a farm must be filed with the
Department of Agriculture;
new text end

new text begin (3) planted lots must meet tolerances for certified class seed potatoes; and
new text end

new text begin (4) the potato plants must be inspected by the commissioner during a site visit.
new text end

(b) The commissioner may enter and inspect plots subject to paragraph (a) during the
growing season.

new text begin (c) Potatoes grown in the restricted seed potato growing area that have not met the
requirements for certification must not be labeled, marketed, or sold as certified seed potatoes.
new text end

new text begin (d) If, in any year, a sufficient volume of potato seed that meets certification standards
related to disease, in any or all varieties, is not available to be planted in Minnesota, the
commissioner may, upon application by one or more growers, permit potato seed that does
not comply with this section to be planted for that growing season if the seed does not pose
a serious threat of disease to the public.
new text end

Sec. 24.

new text begin [21.123] SEED POTATO CERTIFICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin In order to produce certified seed potatoes, a grower must
comply with the following requirements:
new text end

new text begin (1) a grower must ensure that potatoes meet the tolerances prescribed by this chapter
and the potatoes have been inspected by the commissioner while growing in a field;
new text end

new text begin (2) a grower must ensure that all potatoes planted on the grower's farm have been entered
for certification by the commissioner;
new text end

new text begin (3) a grower must ensure that each lot is grown while physically separated from other
lots. Markers must be visible to an inspector from anywhere in the area of separation;
new text end

new text begin (4) a grower must submit an application for certification before June 16 each year on
forms provided by the commissioner. The commissioner must charge a ten percent late
registration fee to a grower who submitted an application postmarked after June 15 and
before July 1. The commissioner may extend the deadline due to special circumstances,
such as a natural disaster, that make it impractical or impossible for planting to be completed
by the deadline and that affect an area or large number of growers. A grower must make a
request for an extension in writing before June 16;
new text end

new text begin (5) an application for certification must include a North American Health Certificate
and a shipping point certificate, bulk seed certificate, or certificate of origin. The
commissioner must not accept an incomplete application for certification;
new text end

new text begin (6) an application for recertification must demonstrate that the seed potatoes being
entered for recertification originated from a class system in Minnesota or another state or
province under the supervision of another certifying agency; and
new text end

new text begin (7) a grower must comply with sections 21.111 to 21.125. A grower's violation of sections
21.111 to 21.125 is cause for the commissioner to reject the grower's field or lot. A grower
must not sell or label potatoes as certified seed potatoes when the potatoes were grown in
a rejected field or lot.
new text end

new text begin Subd. 2. new text end

new text begin Certification process. new text end

new text begin (a) As part of the certification process, the commissioner
must visually inspect sample plants and tubers from each field and lot belonging to the
grower, except that the commissioner is not required to visually inspect sample plants and
tubers when certifying prenuclear class potatoes.
new text end

new text begin (b) For seed potato varieties that do not exhibit visible symptoms of a specific pathogen,
the commissioner must subject the seed potatoes to laboratory tests to determine the level
of a pathogen in a seed lot. Testing under this paragraph may occur during the growing
season, the storage season, or winter testing.
new text end

new text begin (c) The commissioner must not accept an application for certification from a grower in
a community or county without sufficient acreage for total inspection fee charges to cover
the cost of wages and expenses of the commissioner to complete an inspection. The
commissioner must make a determination of sufficient acreage under this paragraph before
conducting an inspection as part of the certification process.
new text end

new text begin (d) The commissioner must not inspect a field for certification unless both the planted
seed potato variety and the particular planted lot have been authorized by the commissioner.
When considering the authorization of a particular seed potato variety for planting as certified
seed potatoes, the commissioner must consider scientific evidence and the expert opinions
of inspectors.
new text end

new text begin (e) The following classes of seed potatoes are eligible for planting as certified seed
potatoes: Prenuclear (PN), Generation 1 (G1), Generation 2 (G2), Generation 3 (G3),
Generation 4 (G4), Generation 5 (G5), and experimental class seed potatoes. The
commissioner may authorize the planting of Certified (C) class or Generation 6 (G6) class
seed potatoes if the commissioner determines that the seeds do not pose a serious threat of
disease to the public.
new text end

new text begin Subd. 3. new text end

new text begin Bacterial ring rot or potato spindle tuber viroid. new text end

new text begin If the commissioner finds
the presence of bacterial ring rot or potato spindle tuber viroid in a field or lot, the
commissioner must reject the entire field or lot. If the commissioner discovers a single plant
in a field or a tuber in storage that is infected with bacterial ring rot or potato spindle tuber
viroid, the commissioner must reject the entire field or lot where the plant was grown. If
the commissioner has not found bacterial ring rot or potato spindle tuber viroid in a field
or lot, the field or lot is not necessarily free from either disease.
new text end

new text begin Subd. 4. new text end

new text begin Winter testing. new text end

new text begin (a) In order to detect certain virus diseases, the commissioner
must conduct winter testing of a sample from each class seeking eligibility for recertification,
except PN, G1, and experimental classes. The commissioner must grow out and visually
inspect a representative sample of tubers from each seed lot for stand, vigor, varietal purity,
and disease. If, during a visual inspection, a plant shows signs of potato virus Y or potato
leafroll virus, or if the plant is of a variety that does not express visual symptoms of infection,
the commissioner must ensure that a sample of the plant is lab tested for potato virus Y and
potato leafroll virus. The commissioner must determine whether a field or lot contains the
threshold amount of disease permitted under section 21.124, subdivision 9. The commissioner
must include any lot that passes winter testing in the approved list of certified seed lots
eligible for recertification.
new text end

new text begin (b) If the commissioner determines that a winter test of a lot or field has a serious
malfunction, the commissioner must base classification of the lot or field on summer field
readings from the previous year or lab testing.
new text end

new text begin (c) Instead of winter testing a sample of winter grow out, the commissioner may accept
comprehensive lab testing if the commissioner determines that special circumstances exist,
such as a natural disaster, that would make submission of samples for inclusion in winter
testing impractical or impossible.
new text end

new text begin (d) The commissioner must reject a field or lot if the commissioner determines that a
large number of plants are missing from the field or lot due to disease.
new text end

new text begin (e) The commissioner must reject a field or lot if the commissioner determines that the
field or lot contains a large number of weak plants.
new text end

new text begin (f) The commissioner may reject a field or lot if the field or lot contains a large number
of plants that have a mixture of variety.
new text end

new text begin Subd. 5. new text end

new text begin Seed potato certification classes. new text end

new text begin Seed potato certification classes must be
differentiated by the potatoes' compliance with disease tolerances, varietal purity, and seed
origin. Seed potato certification classes are: Prenuclear, Generation 1, Generation 2,
Generation 3, Generation 4, Generation 5, Generation 6, and Certified.
new text end

new text begin Subd. 6. new text end

new text begin Experimental status. new text end

new text begin (a) Lots from a breeder's seed that have not been tested
and have not been determined to be virus-free are considered experimental. The commissioner
must designate seedlings or numbered selections in experimental status as a class and
determine requirements of that class.
new text end

new text begin (b) To obtain experimental status under this subdivision, an applicant must submit a
written statement from the seedlings' or numbered selections' breeder, originator, or
originator's designee verifying that the applicant has full and unrestricted rights to introduce
the seedlings or numbered selections into the commercial market and that the applicant may
apply to enter the seedlings or numbered selections into the certification system. The written
statement must accompany the certification application submitted by the applicant.
new text end

new text begin (c) After reviewing the applicant's written statement and certification application, the
commissioner may designate seedlings or numbered selections described in the application
as having experimental status.
new text end

new text begin (d) After an applicant is notified by the commissioner that the seedlings or numbered
selections have experimental status, the applicant must ensure that the seedlings or numbered
selections are tagged with the word "EXPERIMENTAL."
new text end

new text begin Subd. 7. new text end

new text begin Protected varieties. new text end

new text begin If an applicant seeks to enter a seed potato variety protected
under the Plant Variety Protection Act Amendments of 1994 into the certification system,
the applicant must submit a written statement from the breeder, originator, or originator's
designee that the applicant has full and unrestricted rights to introduce the protected variety
into the certification system. The applicant must ensure that the written statement
accompanies the certification application for any protected seed potato variety.
new text end

new text begin Subd. 8. new text end

new text begin Certification factors; field inspection. new text end

new text begin (a) The commissioner must consider
the following factors when conducting a field inspection pursuant to a certification
application:
new text end

new text begin (1) the commissioner must reject a field or lot if a large number of plants are missing
due to disease;
new text end

new text begin (2) the commissioner must reject a field or lot if the field or lot contains a large number
of weak plants;
new text end

new text begin (3) the commissioner must inspect a field or lot for bacterial ring rot. The commissioner
must reject a field or lot if the commissioner finds the presence of bacterial ring rot. If
bacterial ring rot is present in a field or lot, the remaining crop is not eligible for certification
planting;
new text end

new text begin (4) the commissioner must reject a field or lot if the field or lot contains potatoes with
a level of disease higher than the acceptable tolerance for the disease for the potatoes' seed
potato certification class according to section 21.124, subdivision 9;
new text end

new text begin (5) the commissioner must reject a field or lot if the field or lot contains a percentage
of diseased plants that exceeds the acceptable percentage of disease listed in section 21.124
for the seed potato certification class;
new text end

new text begin (6) the commissioner must reject a field or lot if any of the following are present in the
field or lot to such an extent that the commissioner is unable to complete a satisfactory
inspection for diseases: early or late blight, blackleg or wilt of any kind, weeds, plant injury
from insects, or chemical damage; and
new text end

new text begin (7) the commissioner must reject a field or lot if any other conditions are present to such
an extent that the commissioner is unable to make a satisfactory inspection for diseases.
new text end

new text begin (b) The commissioner must determine that a field is ineligible for certification if cull
piles are in such close vicinity to the field that it is likely that the field is contaminated.
new text end

new text begin (c) The commissioner must make at least two field inspections of a field during the
growing season. The commissioner must conduct a final inspection of a field for bacterial
ring rot during the time of year that symptoms of bacterial ring rot are most likely to be
observed. If the commissioner is unable to conduct a final inspection under this paragraph
due to management practices of the grower or for a reason that is out of the grower's control,
such as a natural disaster, the grower must ensure that laboratory testing is conducted to
maintain eligibility for certification. An additional inspection or additional laboratory testing
may be necessary to meet phytosanitary requirements in established markets in another state
or in a Canadian province.
new text end

new text begin Subd. 9. new text end

new text begin Roguing. new text end

new text begin If any of the diseases listed in section 21.124, subdivision 1, are
present in a field in amounts greater than the maximum disease tolerance level, the grower
must rogue the field and remove the infected plants before the final inspection by the
commissioner. If a grower has completed roguing a field after tubers have formed, the
grower must remove and destroy all tubers from rogued plants.
new text end

new text begin Subd. 10. new text end

new text begin Storage. new text end

new text begin (a) A grower must ensure that a lot is stored under conditions that
prevent disease contamination. A grower must not store a lot in any warehouse where other
potatoes are stored, unless the grower labels the lot according to paragraph (b).
new text end

new text begin (b) If more than one grower stores lots in the same warehouse, each grower must identify
the grower's lots by labeling the bin containing the lot with the grower's name, the grower's
address, the variety of potatoes in the bin, and the number of potatoes in the bin.
new text end

new text begin (c) If a grower plans to store a lot in a public warehouse or storage unit that is not directly
under the grower's control, the grower must send a complete record of storage to the
commissioner prior to storing the lot. The record must include the address and location of
the public warehouse or storage unit, the variety of potatoes in each bin, and the number of
potatoes in each bin. If a warehouse receipt for the lot is available, the grower must submit
a copy of the warehouse receipt to the commissioner. If more than one grower stores lots
in the same public warehouse or storage unit, the grower must label each lot according to
paragraph (b).
new text end

new text begin (d) A grower must not use the same equipment for grading and handling lots of certified
seed potatoes and other potatoes. If a grower has used the same equipment for grading and
handling certified seed potatoes and other potatoes, the commissioner must reject the grower's
lots.
new text end

new text begin (e) A firm that handles lots under contract must label each bin containing a lot with the
name of the grower whose lots are being stored. A firm handling lots under contract must
properly label and handle bins containing lots. A certification tag or bulk certificate must
not be issued unless all bins are properly labeled according to this paragraph.
new text end

new text begin (f) By November 1 of each crop year, a grower must submit to the commissioner a
completed storage and yield report for each lot on a form prescribed by the commissioner.
The commissioner may extend the deadline after November 1 due to special circumstances,
such as a natural disaster, that would make it impractical or impossible for a grower to
complete harvesting and storage by November 1 and that affect an area or a large number
of growers. A grower must submit a written request for an extension to the commissioner
before November 1 of the crop year for which the extension is sought.
new text end

new text begin Subd. 11. new text end

new text begin Tags; bulk certificates. new text end

new text begin (a) Once the commissioner has informed a grower
that the grower's potatoes meet the certification requirements in sections 21.111 to 21.125,
a grower may tag the potatoes using an approved tag indicating the grade of potatoes as
blue-tag-certified seed potato grade, yellow-tag-certified seed potato grade, or
white-tag-certified seed potato grade. A grower's name, the city where the farm is located,
the potato variety, and the crop year must be printed on a tag under this subdivision.
new text end

new text begin (b) When fastening a tag to a potato sack, a grower must fasten the tag to the sack to
form a seal at the time that the lot is prepared for shipment.
new text end

new text begin (c) A bulk certificate must include the date that the certificate was issued, class, grade,
lot number, and approximate weight of the lot.
new text end

new text begin (d) If a grower wishes to tag the grower's own potatoes, the grower must order the tags
for the grower's own potatoes.
new text end

new text begin (e) A grower may print a tag for potatoes if the grower has provided proof of each lot
to the commissioner for review before using the tag. A tag printed by a grower must contain
the following statement: "The quality and condition of each lot is only confirmed through
a shipping point inspection certificate. This tag, without an accompanying shipping point
inspection certificate, is not proof that the potatoes contained within have been duly
inspected."
new text end

new text begin Subd. 12. new text end

new text begin Certified seed potato grades. new text end

new text begin Certified seed potatoes must be classified by
certified seed potato grades based on the number of physical defects of tubers. A grower
must only use a certified seed potato grade for potatoes after a shipping point inspection of
the potatoes has been completed. The following three grades of certified seed potatoes must
be used for Minnesota-certified seed potatoes:
new text end

new text begin (1) the blue-tag-certified seed potato grade is the first grade of certified seed potatoes.
The blue-tag-certified seed potato grade is stricter than other grades. The blue-tag-certified
seed potato grade does not allow as many physical defects of tubers as other grades. A
grower may use the blue-tag-certified seed potato grade for intrastate and interstate shipments
of certified seed potatoes.
new text end

new text begin (2) the yellow-tag-certified seed potato grade is the second grade of certified seed
potatoes. The yellow-tag-certified seed potato grade allows more physical defects of tubers
than the blue-tag-certified seed potato grade. A grower may use the yellow-tag-certified
seed potato grade for intrastate and interstate shipments of certified seed potatoes; and
new text end

new text begin (3) the white-tag-certified seed potato grade is the third grade of certified seed potatoes.
The number of physical defects that the white-tag-certified seed potato grade allows is
determined by an agreement between the purchaser and seller of the certified seed potatoes.
A grower may use the white-tag-certified seed potato grade for intrastate and interstate
shipments of certified seed potatoes.
new text end

new text begin Subd. 13. new text end

new text begin Grading. new text end

new text begin (a) A grower must ensure that a lot is inspected at the shipping point
if the lot requires a grade statement.
new text end

new text begin (b) If an inspection at the shipping point is impossible, a grower must request a grading
inspection in transit.
new text end

new text begin (c) A grower must ensure that a bagged lot or shipment offered for sale and tagged with
approved certification tags is contained in new even-weight sacks.
new text end

new text begin (d) A grower must ensure that a bulk shipment is identified with a bulk certificate.
new text end

new text begin (e) A grower must ensure that a bagged lot and bulk lot or shipment meets grade standards
in section 21.125.
new text end

new text begin (f) A grower must recondition a lot or shipment that fails to meet the grade standards in
section 21.125.
new text end

new text begin (1) If a lot or shipment fails to meet grade standards and is contained in sacks, a grower
must remove approved certification tags from the lot or shipment before the lot or shipment
may proceed to its destination.
new text end

new text begin (2) If a shipment is in bulk and fails to meet grade standards in section 21.125, a bulk
certificate must not be issued.
new text end

new text begin (g) If a lot or shipment fails to meet grade standards, the shipper must bear the costs of
reconditioning potatoes to meet the grade standards in section 21.125.
new text end

Sec. 25.

new text begin [21.124] REQUIREMENTS FOR PRODUCTION OF DIFFERENT
CLASSES OF CERTIFIED SEED POTATOES.
new text end

new text begin Subdivision 1. new text end

new text begin Prenuclear class certified seed potatoes. new text end

new text begin (a) A lot grown as and intended
to be prenuclear class certified seed potatoes must be grown from plants tested and shown
to be free from the following pathogens:
new text end

new text begin (1) Clavibacter michiganensis ssp. sepedonicus (ring rot);
new text end

new text begin (2) Pectobacterium atrosepticum ssp. Atrosepticum, carotovora (blackleg);
new text end

new text begin (3) potato virus X;
new text end

new text begin (4) potato virus S;
new text end

new text begin (5) potato virus A;
new text end

new text begin (6) potato virus M;
new text end

new text begin (7) potato virus Y;
new text end

new text begin (8) potato spindle tuber viroid; and
new text end

new text begin (9) potato leafroll virus.
new text end

new text begin (b) When growing prenuclear class seed potatoes, a grower must ensure that each explant
or tuber is tested for organisms for which testing is required by the state or province of
destination. A grower must ensure that material in maintenance is tested during the year of
producing prenuclear class seed potatoes.
new text end

new text begin (c) A grower must produce prenuclear class seed potatoes in a greenhouse or screenhouse
under sanitary conditions, free from insects and weeds that can harbor or transmit potato
diseases or other conditions that would allow possible disease contamination. A grower
must ensure that a facility used for growing prenuclear seed potatoes is sufficiently insulated
from insects by screens and double doors. The commissioner may inspect any facility or
equipment used for growing, handling, and storing prenuclear class seed potatoes to verify
that the facility or equipment complies with this paragraph.
new text end

new text begin (d) A grower must ensure that one percent of each lot or ten plants or tubers from each
lot, whichever is greater, is tested during the growing season to verify that the crop is free
from potato virus X, potato virus Y, potato leafroll virus, C. michiganensis, and P.
atrosepticum.
new text end

new text begin (e) Prenuclear tubers may originate from greenhouse tubers for one year only if the
greenhouse tubers have remained at the same growing operation and have remained isolated
from field-grown tubers.
new text end

new text begin (f) Prenuclear class certified seed potatoes must not contain more than the allowable
tolerances for disease and varietal mixture in subdivision 9.
new text end

new text begin Subd. 2. new text end

new text begin Generation 1 class certified seed potatoes. new text end

new text begin (a) Generation 1 class seed potatoes
must meet the following requirements:
new text end

new text begin (1) the seed source must be either prenuclear tubers, clones, or plantlets; and
new text end

new text begin (2) tubers or plantlets must be planted in identifiable family units.
new text end

new text begin (b) Lots in Generation 1 class may be exempt from winter testing requirements if leaves
collected during the growing season are laboratory tested and shown to be within the
allowable tolerance of potato virus X, potato virus Y, and other pathogens identified by the
commissioner.
new text end

new text begin (c) Each lot must be stored in an individual identifiable unit.
new text end

new text begin (d) Generation 1 seed potatoes must not contain more than the allowable tolerances for
disease and varietal mixture for seed potatoes in subdivision 9.
new text end

new text begin Subd. 3. new text end

new text begin Generation 2 class certified seed potatoes. new text end

new text begin Generation 2 class seed potatoes
must originate from Generation 1 class seed potatoes. Generation 2 class seed potatoes must
not contain more than the allowable tolerances of disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 4. new text end

new text begin Generation 3 class certified seed potatoes. new text end

new text begin Generation 3 class seed potatoes
must originate from Generation 2 class seed potatoes. Generation 3 class seed potatoes must
not contain more than the allowable tolerances of disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 5. new text end

new text begin Generation 4 class certified seed potatoes. new text end

new text begin Generation 4 class seed potatoes
must originate from Generation 3 class seed potatoes. Generation 4 class seed potatoes must
not contain more than the allowable tolerances for disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 6. new text end

new text begin Generation 5 class certified seed potatoes. new text end

new text begin Generation 5 class seed potatoes
must originate from Generation 4 class seed potatoes. Generation 5 class seed potatoes must
not contain more than the allowable tolerances for disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 7. new text end

new text begin Generation 6 class certified seed potatoes. new text end

new text begin Generation 6 class seed potatoes
must originate from Generation 5 class seed potatoes. Generation 6 class seed potatoes must
not contain more than the allowable tolerances for disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 8. new text end

new text begin Certified class certified seed potatoes. new text end

new text begin Certified class seed potatoes must
originate from generation classes of seed potatoes. Certified class seed potatoes must not
contain more than the allowable tolerances for disease and varietal mixture in subdivision
9.
new text end

new text begin Subd. 9. new text end

new text begin Allowable tolerances for diseases and varietal mixture by generation
class. new text end

new text begin The numbers represent the percentage of potatoes that may be affected out of an
individual lot.
new text end

	new text begin PN new text end	new text begin G1 new text end	new text begin G2 new text end	new text begin G3 new text end	new text begin G4 new text end	new text begin G5 new text end	new text begin G6 new text end	new text begin C new text end
new text begin Tolerances: new text end
new text begin Severe Mosaic from potato virus Y, A, M, X, and/or S new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 1 new text end
new text begin Leafroll new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 1 new text end
new text begin Total new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 1 new text end
new text begin Other viruses new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end
new text begin Mycoplasms (haywire, witches broom, yellow dwarf) new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end
new text begin Total new text end	new text begin 0 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end
new text begin Blackleg new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0.2 new text end	new text begin 0.5 new text end	new text begin 1 new text end	new text begin exc. new text end	new text begin exc. new text end	new text begin exc. new text end
new text begin Varietal mixture new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0.1 new text end	new text begin 0.1 new text end	new text begin 0.1 new text end	new text begin 0.2 new text end	new text begin 0.2 new text end
new text begin Ring Rot and Spindle Tuber new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end	new text begin 0 new text end
new text begin Winter Test: new text end
new text begin Virus or expressing symptoms of chemical damage new text end	new text begin - new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end	new text begin 0.5 new text end

Sec. 26.

new text begin [21.125] MINNESOTA CERTIFIED SEED POTATO GRADES AND
TOLERANCES.
new text end

new text begin Subdivision 1. new text end

new text begin Certified seed potato grading. new text end

new text begin Potatoes must meet the requirements of
sections 21.111 to 21.125 to be graded as certified seed potatoes.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Damage" means any defect or combination of defects that materially affects the
appearance of the individual potato, or that cannot be removed without a loss of more than
five percent of the total weight of the potato, including the peel covering the defective area.
new text end

new text begin (c) "Diameter" means the greatest dimension at right angles to the longitudinal axis.
Diameter means the long axis.
new text end

new text begin (d) "Dry rot" means decaying tissue that is dry.
new text end

new text begin (e) "Fairly clean" means that the individual potato is reasonably free from dirt, staining,
or other foreign matter.
new text end

new text begin (f) "Fairly well-shaped" means that the individual potato is not materially pointed,
dumbbell-shaped, or otherwise ill-formed.
new text end

new text begin (g) "Mature" means that the outer skin does not loosen or feather readily during the
ordinary methods of handling.
new text end

new text begin (h) "Serious damage" means any defect or combination of defects that seriously affects
the appearance of the individual potato or that cannot be removed without a loss of more
than ten percent of the total weight of the potato, including the peel covering the defective
area.
new text end

new text begin (i) "Slightly dirty" means the appearance is not materially affected by dirt, staining, or
other foreign matter.
new text end

new text begin (j) "Soft rot" or "wet breakdown" means any soft, mushy, or leaky condition of potato
tissues.
new text end

new text begin (k) "Well-shaped" means the normal shape for a variety.
new text end

new text begin Subd. 3. new text end

new text begin Damage. new text end

new text begin The commissioner must find that one or more of the following defects
constitutes damage:
new text end

new text begin (1) a russet scab that materially detracts from the appearance of a potato;
new text end

new text begin (2) second growth or growth cracks that materially affect the appearance of an individual
potato;
new text end

new text begin (3) air cracks when removal of the air cracks causes a loss of more than five percent of
the total weight of a potato;
new text end

new text begin (4) a potato that is more than moderately shriveled, spongy, or flabby;
new text end

new text begin (5) an individual potato that has sprouts over one inch in length;
new text end

new text begin (6) a surface scab, powdery scab, or pitted scab that covers more than five percent of
the surface of a potato or a surface scab, powdery scab, or pitted scab that, when removed,
causes a potato to lose more than five percent of the potato's total weight, including peel
covering a defective area of the potato; or
new text end

new text begin (7) more than 50 percent of a potato's surface contains scattered, lightly caked soil or
more than 15 percent of a potato's surface is badly caked with soil.
new text end

new text begin Subd. 4. new text end

new text begin Serious damage. new text end

new text begin The commissioner must find that one or more of the following
defects constitutes serious damage:
new text end

new text begin (1) a russet scab that seriously detracts from the appearance of a potato;
new text end

new text begin (2) the appearance of a potato is seriously affected by caked or smeared dirt or other
foreign matter;
new text end

new text begin (3) both ends of a potato are cut or clipped, more than an estimated one-fourth of a potato
is cut away from one end, or a remaining portion of a clipped potato weighs less than six
ounces;
new text end

new text begin (4) one or more cuts that seriously affect the appearance of a potato or that cannot be
removed without the loss of more than ten percent of a potato's total weight, including peel
covering the defective area;
new text end

new text begin (5) a potato that is excessively shriveled, spongy, or flabby;
new text end

new text begin (6) a surface scab, powdery scab, or pitted scab that covers more than 25 percent of the
surface of a potato or a surface scab, powdery scab, or pitted scab that, when removed,
causes a loss of more than ten percent of a potato's total weight, including peel covering the
defective area; or
new text end

new text begin (7) wireworm or air cracks that, when removed, cause a loss of more than ten percent
of a potato's total weight.
new text end

new text begin Subd. 5. new text end

new text begin Application of tolerance. new text end

new text begin If the average of an entire lot is within the disease
tolerances specified for the grade in section 21.124, subdivision 9, an individual container
in the lot may contain no more than double the disease tolerance specified in section 21.124,
subdivision 9, except that sprouts, at least one defective specimen with a defect other than
bacterial ring rot, and one off size specimen is permitted. This subdivision does not apply
to bulk conveyances.
new text end

new text begin Subd. 6. new text end

new text begin Condition after transit. new text end

new text begin Deterioration that developed in transit must affect the
condition of potatoes. Deterioration that developed in transit must not affect the grade of
potatoes.
new text end

new text begin Subd. 7. new text end

new text begin Minnesota blue-tag-certified seed potato grade. new text end

new text begin (a) To be graded as Minnesota
blue-tag-certified seed potatoes, potatoes must meet the following requirements:
new text end

new text begin (1) at the time of the shipping point inspection, potatoes must be of one variety;
unwashed; fairly well-shaped; free from bacterial ring rot, late blight, freezing, black heart,
and soft rot or wet breakdown; free from damage caused by soil or other foreign matter,
second growth, air cracks, cuts, shriveling, sprouts, pitted scabs, surface scabs, powdery
scabs, russet scabs, dry rot, other diseases, insects or worms, mechanical or other means,
or flattened or depressed areas with underlying flesh discoloration; and free from serious
damage caused by hollow heart, wireworm, growth cracks, or internal discoloration other
than hollow heart. Sunburn and silver scurf must not be considered factors that affect the
grading of potatoes. This clause does not apply to hollow heart if the potatoes are labeled
"hollow heart exempt" on the affixed tag or accompanying certificate; and
new text end

new text begin (2) for round or intermediate shaped varieties, the maximum potato size is 12 ounces
(340.2 grams) and, unless otherwise specified, the minimum size must not be less than 1-1/2
inches (38.1 millimeters) in diameter. For long varieties, the maximum size is 14 ounces
(396.9 grams) and, unless otherwise specified, the minimum size must not be less than 1-1/2
inches (38.1 millimeters) in diameter. For all varieties, the minimum diameter for size "B"
must not be less than 1-1/2 inches (38.1 millimeters) and the maximum size must not be
more than 2-1/4 inches (57.1 millimeters) in diameter. The department may grade potatoes
that do not meet the maximum and minimum size specifications as Minnesota
blue-tag-certified seed potatoes if the buyer agrees to accept potatoes of alternate size
specifications from the grower and the specifications are listed on the affixed tag or
accompanying bulk certificate issued by the department.
new text end

new text begin (b) To allow for variations incident to proper grading and handling, the following lot
tolerances are permitted:
new text end

new text begin (1) for defects:
new text end

new text begin (i) up to ten percent of a lot may be seriously damaged by hollow heart, unless labeled
"hollow heart exempt" on the affixed tag or accompanying certificate;
new text end

new text begin (ii) up to five percent of a lot may be seriously damaged by internal discoloration due
to causes other than hollow heart;
new text end

new text begin (iii) up to ten percent of a lot may be damaged by soil or other foreign matter;
new text end

new text begin (iv) up to 20 percent of a lot may be damaged by sprouts;
new text end

new text begin (v) up to ten percent of a lot may be seriously damaged by wireworm;
new text end

new text begin (vi) for potatoes that fail to meet the remaining requirements of the potatoes' grade, a
lot may contain up to a total of six percent of the following defects combined and must not
contain more than the following percentage of defects:
new text end

new text begin (A) soft rot, frozen, or wet breakdown, 0.5 percent;
new text end

new text begin (B) damage by surface scab, powdery scab, or pitted scab, 2.0 percent;
new text end

new text begin (C) damage by dry rot, 2.0 percent, of which not more than 1.0 percent is late blight
tuber rot;
new text end

new text begin (D) bacterial ring rot, 0.0 percent; and
new text end

new text begin (E) late blight tuber rot, 1.0 percent; and
new text end

new text begin (vii) the presence of the following does not affect seed quality and must not be scored
against the potatoes' grade:
new text end

new text begin (A) brown discoloration following skinning;
new text end

new text begin (B) dried stems;
new text end

new text begin (C) flattened or depressed areas showing no underlying flesh discoloration;
new text end

new text begin (D) greening;
new text end

new text begin (E) sunburn;
new text end

new text begin (F) skin checks; and
new text end

new text begin (G) silver scurf; and
new text end

new text begin (2) for off size:
new text end

new text begin (i) up to five percent of potatoes may fail to meet the required or specified minimum
size; and
new text end

new text begin (ii) up to ten percent of potatoes may fail to meet the required maximum size.
new text end

new text begin Subd. 8. new text end

new text begin Minnesota yellow-tag-certified seed potato grade. new text end

new text begin (a) To be graded as
Minnesota yellow-tag-certified seed potatoes, potatoes must meet the following requirements:
new text end

new text begin (1) at the time of the shipping point inspection, the potatoes must be of one variety;
unwashed; fairly well-shaped; free from bacterial ring rot, late blight, freezing, black heart,
and soft rot or wet breakdown; free from damage caused by second growth, air cracks, cuts,
shriveling, pitted scabs, surface scabs, powdery scabs, dry rot, other diseases, insects or
worms, or mechanical means or other means; and free from serious damage caused by soil
or other foreign matter, hollow heart, wireworm, growth cracks, russet scabs, or internal
discoloration other than hollow heart. Sunburn and silver scurf must not be considered
factors that affect the grading of potatoes. This clause does not apply to hollow heart if
labeled "hollow heart exempt" on the affixed tag or accompanying certificate; and
new text end

new text begin (2) for all varieties, the maximum potato size is 14 ounces (396.9 grams) and the
minimum size is 1-1/2 inch (38.1 millimeter) in diameter. For all varieties, the minimum
diameter for size "B" must not be less than 1-1/2 inches (38.1 millimeters) and the maximum
diameter must not be more than 2-1/4 inches (57.1 millimeters). The department may grade
potatoes that do not meet the maximum and minimum size specifications as Minnesota
yellow-tag-certified seed potatoes if the buyer agrees to accept potatoes with alternate size
specifications from the grower and the size specifications are listed on the affixed tag or
accompanying bulk certificate issued by the department.
new text end

new text begin (b) To allow for variations incident to proper grading and handling, the following lot
tolerances are permitted:
new text end

new text begin (1) for defects:
new text end

new text begin (i) up to 20 percent of potatoes may be seriously damaged by hollow heart, unless labeled
"hollow heart exempt" on the affixed tag or accompanying certificate;
new text end

new text begin (ii) up to five percent of potatoes may be seriously damaged by internal discoloration
due to a cause other than hollow heart;
new text end

new text begin (iii) up to ten percent of potatoes may be seriously damaged by soil or other foreign
matter;
new text end

new text begin (iv) up to ten percent of potatoes may be seriously damaged by wireworm;
new text end

new text begin (v) up to 20 percent of a lot may have defects if the potatoes fail to meet the remaining
requirements of the grade. Of the 20 percent of defects allowed, a lot may contain a total
of six percent of the following defects combined and must not contain more than the
following percentage of defects:
new text end

new text begin (A) soft rot, frozen, or wet breakdown, 0.5 percent;
new text end

new text begin (B) damage by surface scab, powdery scab, or pitted scab, 5.0 percent;
new text end

new text begin (C) damage by dry rot, 2.0 percent, of which not more than 1.0 percent is late blight
tuber rot;
new text end

new text begin (D) bacterial ring rot, 0.0 percent; and
new text end

new text begin (E) late blight tuber rot, 1.0 percent; and
new text end

new text begin (vi) the presence of the following does not affect seed quality and must not be scored
against the grade:
new text end

new text begin (A) brown discoloration following skinning;
new text end

new text begin (B) dried stems;
new text end

new text begin (C) flattened or depressed areas showing no underlying flesh discoloration;
new text end

new text begin (D) greening;
new text end

new text begin (E) sunburn;
new text end

new text begin (F) skin checks;
new text end

new text begin (G) silver scurf; and
new text end

new text begin (H) sprouts; and
new text end

new text begin (2) for off size:
new text end

new text begin (i) five percent for potatoes that fail to meet the required or specified minimum size;
and
new text end

new text begin (ii) ten percent for potatoes that fail to meet the required maximum size.
new text end

new text begin (c) The potatoes must be fairly well-shaped, with an exception for long varieties when
specified as "except for shape." When specified as "except for shape," the tubers may be
misshapen.
new text end

new text begin Subd. 9. new text end

new text begin Minnesota white-tag-certified seed potato grade. new text end

new text begin Minnesota white-tag-certified
seed potato grade consists of certified seed potatoes that are graded according to agreement
between the seller and the purchaser as to size and defects, except that not more than one-half
percent of soft rot, frozen, or wet breakdown and two percent dry rot, of which not more
than one percent late blight tuber rot is allowed.
new text end

Sec. 27.

Minnesota Statutes 2024, section 21.891, subdivision 2, is amended to read:

Subd. 2.

Seed fee permits.

(a) A labeler who wishes to sell seed in Minnesota must
comply with section 21.89, subdivisions 1 and 2, and the procedures in this subdivision.
Each labeler who wishes to sell seed in Minnesota must apply to the commissioner to obtain
a permit. The application must contain the name and address of the applicant, the application
date, and the name and title of the applicant's contact person. Permit fees are based on the
initial sale of seed in Minnesota.

(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
(1), must be accompanied by an application fee of $75.

(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
(2), must be accompanied by an application fee based on the level of annual gross sales as
follows:

(1) for gross sales of $0 to $25,000, the annual permit fee is $75;

(2) for gross sales of $25,001 to $50,000, the annual permit fee is $150;

(3) for gross sales of $50,001 to $100,000, the annual permit fee is $300;

(4) for gross sales of $100,001 to $250,000, the annual permit fee is $750;

(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,500;

(6) for gross sales of $500,001 to $1,000,000, the annual permit fee is $3,000; and

(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.

(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
(3), must be accompanied by an application fee of $75. Labelers holding seed fee permits
covered under this paragraph need not apply for a new permit or pay the application fee.
Under this permit category, the fees for the following kinds of agricultural seed sold either
in bulk or containers are:

(1) oats, wheat, and barley, 9 cents per hundredweight;

(2) rye, field beans, buckwheat, and flax, 12 cents per hundredweight;

(3) field corn, 17 cents per 80,000 seed unit;

(4) forage, hemp, lawn and turf grasses, and legumes, 69 cents per hundredweight;

(5) sunflower, $1.96 per hundredweight;

(6) sugar beet, 12 cents per 100,000 seed unit;

(7) soybeans, 7.5 cents per 140,000 seed unit;

(8) for any agricultural seed not listed in clauses (1) to (7), the fee for the crop most
closely resembling it in normal planting rate applies; and

(9) for native grasses and wildflower seed, $1 per hundredweight.

(e) If, for reasons beyond the control and knowledge of the labeler, seed is shipped into
Minnesota by a person other than the labeler, the responsibility for the seed fees are
transferred to the shipper. An application for a transfer of this responsibility must be made
to the commissioner. Upon approval by the commissioner of the transfer, the shipper is
responsible for payment of the seed permit fees.

(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or as
a line item cost on each invoice for seed sold. To identify the fee on an invoice, the words
"Minnesota seed permit fees" must be used.

(g) All seed fee permit holders must file semiannual reports with the commissioner,
even if no seed was sold during the reporting period. Each semiannual report must be
submitted within 30 days of the end of each reporting period. The reporting periods deleted text begin are
October 1 to March 31 and April 1 to September 30 of each year or July 1 to December 31
and January 1 to June 30 of each year deleted text end new text begin must be determined by the commissioner and
communicated annually to permit holders new text end . Permit holders may change their reporting periods
with the approval of the commissioner.

(h) The holder of a seed fee permit must pay fees on all seed for which the permit holder
is the labeler and which are covered by sections 21.80 to 21.92 and sold during the reporting
period.

(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed fee
within 30 days after the end of each reporting period, the commissioner shall assess a penalty
of $100 or eight percent, calculated on an annual basis, of the fee due, whichever is greater,
but no more than $500 for each late semiannual report. A $15 penalty must be charged when
the semiannual report is late, even if no fee is due for the reporting period. Seed fee permits
may be revoked for failure to comply with the applicable provisions of this paragraph or
the Minnesota seed law.

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

new text begin (a) new text end new text begin Minnesota Statutes 2024, sections 21.116; 21.118; 21.1196, subdivision 3; 21.121;
and 21.122, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1510.2300; 1510.2305; 1510.2310; 1510.2315; 1510.2320;
1510.2325; 1510.2330; 1510.2335; 1510.2340; 1510.2345; 1510.2350; and 1510.2355,
subparts 1, 2, 3a, 4, 5, 6, and 7, new text end new text begin are repealed.
new text end

Sec. 29. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2025.
new text end

ARTICLE 6

FOOD HANDLER LICENSING PROVISIONS

Section 1.

Minnesota Statutes 2024, section 28A.03, subdivision 7, is amended to read:

Subd. 7.

Principal mode of business.

"Principal mode of business" means that type of
business described under paragraph (a) deleted text begin , deleted text end new text begin or new text end (b) deleted text begin , (c) or (d) deleted text end in section 28A.05 within which
category the greatest amount of the applicant's food business lies.

Sec. 2.

Minnesota Statutes 2024, section 28A.03, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Risk category. new text end

new text begin "Risk category" means a classification of the level of food
safety risk associated with food handling, processing, preparation, and storage based upon
an assessment by regulatory food safety professionals of the potential likelihood and severity
of harm.
new text end

Sec. 3.

Minnesota Statutes 2024, section 28A.03, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Gross sales or service. new text end

new text begin "Gross sales or service" means a calculation in dollars
of the total value of food sales or service at the location before taxes or deductions that
includes the value of food items held for distribution to other places of business or donated.
new text end

Sec. 4.

Minnesota Statutes 2024, section 28A.04, is amended to read:

28A.04 LICENSE REQUIRED; CUSTOM PROCESSING PERMIT
APPLICATIONS; RENEWALS.

Subdivision 1.

Application; date of issuance.

(a) new text begin Except as provided under section
28A.152, new text end 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.

new text begin (b) An applicant for a license must submit a nonrefundable application fee of $50 with
each license application. The fee under this paragraph does not apply to annual license
renewals. The fee under this paragraph is not required for applications to operate solely as
a special event food stand or custom exempt food handler.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A deleted text begin retail or wholesale deleted text end food handler license shall be issued for the period deleted text begin July deleted text end new text begin
January new text end 1 to deleted text begin June 30 following deleted text end new text begin December 31 new text end and shall be renewed thereafter by the licensee
on or before deleted text begin July deleted text end new text begin January new text end 1 new text begin of new text end each year, except that:

new text begin (1) retail and wholesale food handler licenses issued for the period of July 1, 2025, to
June 30, 2026, must be renewed on or before July 1, 2026, for the period of July 1, 2026,
to December 31, 2026. The renewal fee for the period of July 1, 2026, to December 31,
2026, is one-half of the fee for a food handler specified in section 28A.08, subdivision 3;
new text end

deleted text begin (1) deleted text end new text begin (2) new text end 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 new text begin of new text end each year deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) deleted text end A license issued for a temporary food concession stand must have a license issuance
and renewal date consistent with appropriate statutory provisions deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) a license for a food handler operating only at the State Fair must be issued for the
period of July 1 to June 30 and must be renewed thereafter by the licensee on or before July
1 of each year.
new text end

new text begin (d) A penalty for late renewal under paragraph (b) must be assessed in accordance with
section 28A.08.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end A custom exempt food handler license shall be issued for the period July 1 to
June 30 deleted text begin following deleted text end and deleted text begin shall deleted text end new text begin must new text end 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.

deleted text begin (d) 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 end

deleted text begin (e) deleted text end new text begin (f) On a quarterly basis during the licensing period, the commissioner must prorate
the fee for an initial license issued under this chapter, except that 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.

Subd. 2.

Custom processing new text begin or Minnesota Meat and Poultry Inspection Act new text end permit.

In
addition to the license requirements set forth in subdivision 1, every custom new text begin exempt new text end processor new text begin
or establishment operating under the Minnesota Meat and Poultry Inspection Act as defined
in section 31A.31, new text end shall obtain a custom processing permit new text begin or Minnesota Meat and Poultry
Grant of Inspection permit new text end . Application for a permit shall be made on forms provided by
the commissioner. The commissioner shall cause the deleted text begin custom deleted text end processor's place of business
to be inspected and if the commissioner finds that the applicant's place of business complies
with state standards relating to meat processing plants, a deleted text begin custom processing deleted text end permit new text begin under
this subdivision new text end shall be issued to the applicant. deleted text begin No deleted text end new text begin An new text end additional fee deleted text begin shall deleted text end new text begin of up to $500
may new text end be charged for a deleted text begin custom processing deleted text end permit new text begin under this subdivision new text end .

Sec. 5.

Minnesota Statutes 2024, section 28A.05, is amended to read:

28A.05 deleted text begin CLASSIFICATION deleted text end new text begin FOOD HANDLER CLASSES new text end .

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) deleted text begin Retail deleted text end Food handlers are persons who new text begin :
new text end

new text begin (1) new text end 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 deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (b) Wholesale food handlers are persons who deleted text end new text begin (2) new text end sell to deleted text begin others deleted text end new text begin other business entities or
establishments new text end for resale deleted text begin . deleted text end new text begin , including new text end a person who handles food in job lots deleted text begin (jobbers) is
included in this classification. deleted text end new text begin ; or
new text end

deleted text begin (c) Wholesale food processors or manufacturers are persons who deleted text end new text begin (3) new text end process or
manufacture raw materials and other food ingredients into food items, deleted text begin or who deleted text end reprocess
food items, deleted text begin or who deleted text end package food for sale to deleted text begin others deleted text end new text begin other business entities or establishments new text end
for resale, or deleted text begin who deleted text end 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 deleted text begin others deleted text end new text begin other business
entities or establishments new text end 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.

deleted text begin (d) deleted text end new text begin (b) new text end 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.

deleted text begin (e) 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.
deleted text end

Sec. 6.

Minnesota Statutes 2024, section 28A.06, is amended to read:

28A.06 EXTENT OF LICENSE.

No person, except as described in section 27.03, shall be required to hold more than one
license in order to engage in any aspect of food handling deleted text begin described in section 28A.05 deleted text end
deleted text begin provided, deleted text end new text begin except new text end that new text begin :
new text end

new text begin (1) new text end each issued license shall be valid for no more than one place of business deleted text begin , except that deleted text end new text begin ;
new text end

new text begin (2) new text end a license for a mobile unit or a retail food vehicle, portable structure, or cart is valid
statewide and is required to be issued only once each year unless the licensee fails to display
the license as required by section 28A.07 or it is a seasonal permanent food stand, seasonal
temporary food stand, food cart, or special event food stand as defined in section 157.15,
in which case the duration of the license is restricted by the limitations found in the definitions
in section 157.15 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) the commissioner may authorize a food handler reporting $50,000 or less gross
annual food sales to conduct business activities under the food handler's license at up to
two additional locations if:
new text end

new text begin (i) the food handler has reported each location and activity to the commissioner; and
new text end

new text begin (ii) the commissioner has approved each location and activity before the food handler
conducts business activities at each location.
new text end

Sec. 7.

Minnesota Statutes 2024, section 28A.07, is amended to read:

28A.07 ISSUANCE OF LICENSE.

Prior to the issuance or renewal of any license herein, the commissioner may cause
appropriate inspections to be made to determine under applicable statutory and promulgated
rule requirements, the applicant's new text begin risk category and new text end fitness to engage in the deleted text begin mode(s) of deleted text end
business new text begin activities new text end described in that person's license application. A valid and properly
displayed license shall be sufficient to allow the licensee to engage in the manner of food
handling so described in the licensee's application, provided that the commissioner may
withhold authorization to engage in any aspects of business for which the applicant is not
deemed fit under this section. A licensee may, at any time, apply to change such application
which shall then be considered by the commissioner in the same manner as a new or renewal
application hereunder.

Sec. 8.

Minnesota Statutes 2024, section 28A.0753, subdivision 3, is amended to read:

Subd. 3.

Food deleted text begin manufacturer, processor, or distributor deleted text end new text begin handlers who manufacture,
process, or distribute new text end ; licensing, preemption by state.

When a food deleted text begin manufacturer,
processor, or distributor deleted text end new text begin handler described in section 28A.05, subdivision 1, paragraph (a),
clauses (2) and (3), new text end is licensed by the commissioner of agriculture, the food deleted text begin manufacturer,
processor or distributor deleted text end new text begin handler new text end is exempt from the licensing requirements of any municipal
corporation or subdivision of state government, except for licensing requirements which
may be imposed by the municipal corporation or subdivision of state government in which
the deleted text begin manufacturer, processor, or distributor deleted text end new text begin food handler new text end locates a plant. All delivery
equipment used by such a food deleted text begin manufacturer, processor or distributor deleted text end new text begin handler new text end is included
within the meaning of this section, whether owned or operated, independently contracted,
or contracted with a common carrier approved by the commissioner of agriculture. This
delivery equipment is exempt from licensing by any municipal corporation or subdivision
of state government except for those requirements which may be imposed by the municipal
corporation or subdivision of state government in which the equipment is principally located.
Delivery equipment approved by the commissioner of agriculture shall carry, at all times,
a certificate of approval for the purposes for which the equipment is utilized. Nothing in
this section is intended to permit the enactment of an ordinance regulating an activity where
the state has preempted the field.

Sec. 9.

Minnesota Statutes 2024, section 28A.08, is amended to read:

28A.08 LICENSE FEES; PENALTIES.

Subdivision 1.

General.

new text begin (a) new text end License fees, penalties for late renewal of licenses, and
penalties for not obtaining a license before conducting business in food handling that are
set in this section apply to the sections named except as provided under section 28A.09.
Except as specified herein, bonds and assessments based on number of units operated or
volume handled or processed which are provided for in said laws shall not be affected, nor
shall any penalties for late payment of said assessments, nor shall inspection fees, be affected
by this chapter. The penalties may be waived by the commissioner. Fees for all new licenses
must be based on the anticipated future gross annual food sales. If a firm is found to be
operating for multiple years without paying license fees, the state may collect the appropriate
fees and penalties for each year of operation.

new text begin (b) The commissioner may adjust the fees in subdivision 3 every five years to the inflation
level established in the United States Bureau of Labor and Statistics Consumer Price Index,
using July 2025 as the base month and year.
new text end

Subd. 3.

Fees effective deleted text begin July 1, 2003 deleted text end new text begin August 1, 2025 new text end .

					Penalties
	Type of food handler		new text begin Risk Category new text end	License Fee deleted text begin Effective July 1, 2003 deleted text end	Late Renewal	No License
1.	deleted text begin Retail food handler or deleted text end Custom exempt food handler
	deleted text begin (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 deleted text end			deleted text begin $ 50 deleted text end	deleted text begin $ 17 deleted text end	deleted text begin $ 33 deleted text end
	deleted text begin (b) deleted text end new text begin (a) new text end Having deleted text begin under $15,000 gross sales or service including food preparation or having $15,000 to deleted text end $50,000 new text begin or less new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $ 77 deleted text end new text begin $135 new text end	deleted text begin $ 25 deleted text end new text begin $45 new text end	deleted text begin $ 51 deleted text end new text begin $90 new text end
	deleted text begin (c) deleted text end new text begin (b) new text end Having $50,001 to deleted text begin $250,000 deleted text end new text begin $125,000 new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $155 deleted text end new text begin $200 new text end	deleted text begin $ 51 deleted text end new text begin $67 new text end	deleted text begin $102 deleted text end new text begin $133 new text end
	deleted text begin (d) deleted text end new text begin (c) new text end Having deleted text begin $250,001 deleted text end new text begin $125,001 new text end to deleted text begin $1,000,000 deleted text end new text begin $500,000 new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $276 deleted text end new text begin $370 new text end	deleted text begin $ 91 deleted text end new text begin $123 new text end	deleted text begin $182 deleted text end new text begin $247 new text end
	deleted text begin (e) deleted text end new text begin (d) new text end Having deleted text begin $1,000,001 deleted text end new text begin $500,001 new text end to deleted text begin $5,000,000 deleted text end new text begin $1,000,000 new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $799 deleted text end new text begin $475 new text end	deleted text begin $264 deleted text end new text begin $158 new text end	deleted text begin $527 deleted text end new text begin $317 new text end
	deleted text begin (f) deleted text end new text begin (e) new text end Having deleted text begin $5,000,001 deleted text end new text begin $1,000,001 new text end to deleted text begin $10,000,000 deleted text end new text begin $5,000,000 new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,162 deleted text end new text begin $1,350 new text end	deleted text begin $383 deleted text end new text begin $450 new text end	deleted text begin $767 deleted text end new text begin $900 new text end
	new text begin (f) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year new text end			new text begin $1,750 new text end	new text begin $583 new text end	new text begin $1,167 new text end
	(g) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,376 deleted text end new text begin $2,150 new text end	deleted text begin $454 deleted text end new text begin $717 new text end	deleted text begin $908 deleted text end new text begin $1,433 new text end
	(h) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,607 deleted text end new text begin $2,550 new text end	deleted text begin $530 deleted text end new text begin $849 new text end	deleted text begin $1,061 deleted text end new text begin $1,700 new text end
	(i) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,847 deleted text end new text begin $2,950 new text end	deleted text begin $610 deleted text end new text begin $984 new text end	deleted text begin $1,219 deleted text end new text begin $1,967 new text end
	(j) Having over $25,000,001 gross sales or service for the immediately previous license or fiscal year			deleted text begin $2,001 deleted text end new text begin $3,350 new text end	deleted text begin $660 deleted text end new text begin $1,117 new text end	deleted text begin $1,321 deleted text end new text begin $2,233 new text end
2.	deleted text begin Wholesale deleted text end Food handler
	new text begin (a) Having gross sales of only prepackaged nonperishable food of less than $30,000 for the immediately previous license or fiscal year and filing a statement with the commissioner new text end			new text begin $90 new text end	new text begin $30 new text end	new text begin $60 new text end
	deleted text begin (a) deleted text end new text begin (b) new text end Having gross sales or service of less than deleted text begin $25,000 deleted text end new text begin $50,000 new text end for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $ 57 deleted text end new text begin $285 $195 $135 new text end	deleted text begin $ 19 deleted text end new text begin $95 $65 $45 new text end	deleted text begin $ 38 deleted text end new text begin $190 $130 $90 new text end
	deleted text begin (b) deleted text end new text begin (c) new text end Having deleted text begin $25,001 deleted text end new text begin $50,001 new text end to deleted text begin $250,000 deleted text end new text begin $125,000 new text end gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $284 deleted text end new text begin $350 $260 $200 new text end	deleted text begin $ 94 deleted text end new text begin $117 $87 $67 new text end	deleted text begin $187 deleted text end new text begin $233 $173 $133 new text end
	deleted text begin (c) deleted text end new text begin (d) new text end Having deleted text begin $250,001 deleted text end new text begin $125,001 new text end to deleted text begin $1,000,000 deleted text end new text begin $250,000 new text end gross sales or service deleted text begin from a mobile unit without a separate food facility deleted text end for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $444 deleted text end new text begin $415 $350 $265 new text end	deleted text begin $147 deleted text end new text begin $138 $117 $ 88 new text end	deleted text begin $293 deleted text end new text begin $277 $233 $177 new text end
	deleted text begin (d) deleted text end new text begin (e) new text end Having $250,001 to deleted text begin $1,000,000 deleted text end new text begin $500,000 new text end gross sales or service deleted text begin not covered under paragraph (c) deleted text end for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $590 deleted text end new text begin $520 $430 $370 new text end	deleted text begin $195 deleted text end new text begin $173 $143 $123 new text end	deleted text begin $389 deleted text end new text begin $347 $287 $247 new text end
	deleted text begin (e) deleted text end new text begin (f) new text end Having deleted text begin $1,000,001 deleted text end new text begin $500,001 new text end to deleted text begin $5,000,000 deleted text end new text begin $1,000,000 new text end gross sales or service for the immediately previous license or fiscal year		new text begin High new text end new text begin Medium new text end new text begin Low new text end	deleted text begin $769 deleted text end new text begin $625 $535 $475 new text end	deleted text begin $254 deleted text end new text begin $208 $178 $158 new text end	deleted text begin $508 deleted text end new text begin $417 $357 $317 new text end
	deleted text begin (f) deleted text end new text begin (g) new text end Having deleted text begin $5,000,001 deleted text end new text begin $1,000,001 new text end to deleted text begin $10,000,000 deleted text end new text begin $5,000,000 new text end gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $920 deleted text end new text begin $1,500 $1,425 $1,350 new text end	deleted text begin $304 deleted text end new text begin $500 $475 $450 new text end	deleted text begin $607 deleted text end new text begin $1,000 $950 $900 new text end
	new text begin (h) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year new text end		new text begin High Medium Low new text end	new text begin $1,900 $1,825 $1,750 new text end	new text begin $633 $608 $583 new text end	new text begin $1,267 $1,217 $1,167 new text end
	deleted text begin (g) deleted text end new text begin (i) new text end Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $990 deleted text end new text begin $2,300 $2,225 $2,150 new text end	deleted text begin $327 deleted text end new text begin $767 $742 $717 new text end	deleted text begin $653 deleted text end new text begin $1,533 $1,483 $1,433 new text end
	deleted text begin (h) deleted text end new text begin (j) new text end Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $1,156 deleted text end new text begin $2,700 $2,625 $2,550 new text end	deleted text begin $381 deleted text end new text begin $900 $875 $849 new text end	deleted text begin $763 deleted text end new text begin $1,800 $1,750 $1,700 new text end
	deleted text begin (i) deleted text end new text begin (k) new text end Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $1,329 deleted text end new text begin $3,100 $3,025 $2,950 new text end	deleted text begin $439 deleted text end new text begin $1,033 $1,008 $984 new text end	deleted text begin $877 deleted text end new text begin $2,067 $2,017 $1,967 new text end
	deleted text begin (j) deleted text end new text begin (l) new text end Having deleted text begin over deleted text end $25,000,001 deleted text begin or more deleted text end new text begin to $50,000,000 new text end gross sales or service for the immediately previous license or fiscal year		new text begin High Medium Low new text end	deleted text begin $1,502 deleted text end new text begin $3,500 $3,425 $3,350 new text end	deleted text begin $496 deleted text end new text begin $1,167 $1,142 $1,117 new text end	deleted text begin $991 deleted text end new text begin $2,333 $2,283 $2,233 new text end
	new text begin (m) Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year new text end		new text begin High Medium Low new text end	new text begin $4,000 $3,925 $3,850 new text end	new text begin $1,334 $1,309 $1,284 new text end	new text begin $2,667 $2,617 $2,567 new text end
	new text begin (n) Having $100,000,001 or more gross sales or service for the immediately previous license or fiscal year new text end		new text begin High Medium Low new text end	new text begin $4,500 $4,425 $4,350 new text end	new text begin $1,500 $1,475 $1,450 new text end	new text begin $3,000 $2,950 $2,900 new text end
3.	deleted text begin Food broker deleted text end new text begin Food handler operating under authority of this chapter solely as a special event food stand as defined in Minnesota Statutes, section 157.15 new text end			deleted text begin $150 deleted text end new text begin $75 new text end	deleted text begin $ 50 deleted text end new text begin $25 new text end	deleted text begin $ 99 deleted text end new text begin $50 new text end
4.	deleted text begin Wholesale food processor or manufacturer deleted text end
	deleted text begin (a) Having gross sales or service of less than $125,000 for the immediately previous license or fiscal year deleted text end			deleted text begin $169 deleted text end	deleted text begin $ 56 deleted text end	deleted text begin $112 deleted text end
	deleted text begin (b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $392 deleted text end	deleted text begin $129 deleted text end	deleted text begin $259 deleted text end
	deleted text begin (c) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $590 deleted text end	deleted text begin $195 deleted text end	deleted text begin $389 deleted text end
	deleted text begin (d) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $769 deleted text end	deleted text begin $254 deleted text end	deleted text begin $508 deleted text end
	deleted text begin (e) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $920 deleted text end	deleted text begin $304 deleted text end	deleted text begin $607 deleted text end
	deleted text begin (f) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $1,377 deleted text end	deleted text begin $454 deleted text end	deleted text begin $909 deleted text end
	deleted text begin (g) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $1,608 deleted text end	deleted text begin $531 deleted text end	deleted text begin $1,061 deleted text end
	deleted text begin (h) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $1,849 deleted text end	deleted text begin $610 deleted text end	deleted text begin $1,220 deleted text end
	deleted text begin (i) Having $25,000,001 to $50,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $2,090 deleted text end	deleted text begin $690 deleted text end	deleted text begin $1,379 deleted text end
	deleted text begin (j) Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $2,330 deleted text end	deleted text begin $769 deleted text end	deleted text begin $1,538 deleted text end
	deleted text begin (k) Having $100,000,000 or more gross sales or service for the immediately previous license or fiscal year deleted text end			deleted text begin $2,571 deleted text end	deleted text begin $848 deleted text end	deleted text begin $1,697 deleted text end
5.	deleted text begin Wholesale food processor of deleted text end Meat or poultry deleted text begin products deleted text end new text begin processing solely new text end 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			deleted text begin $112 deleted text end new text begin $190 new text end	deleted text begin $ 37 deleted text end new text begin $63 new text end	deleted text begin $ 74 deleted text end new text begin $127 new text end
	(b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $214 deleted text end new text begin $365 new text end	deleted text begin $ 71 deleted text end new text begin $122 new text end	deleted text begin $141 deleted text end new text begin $243 new text end
	(c) Having $250,001 to deleted text begin $1,000,000 deleted text end new text begin $500,000 new text end gross sales or service for the immediately previous license or fiscal year			deleted text begin $333 deleted text end new text begin $450 new text end	deleted text begin $110 deleted text end new text begin $150 new text end	deleted text begin $220 deleted text end new text begin $300 new text end
	new text begin (d) Having $500,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year new text end			new text begin $565 new text end	new text begin $188 new text end	new text begin $377 new text end
	deleted text begin (d) deleted text end new text begin (e) new text end Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $425 deleted text end new text begin $725 new text end	deleted text begin $140 deleted text end new text begin $241 new text end	deleted text begin $281 deleted text end new text begin $483 new text end
	deleted text begin (e) deleted text end new text begin (f) new text end Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $521 deleted text end new text begin $885 new text end	deleted text begin $172 deleted text end new text begin $295 new text end	deleted text begin $344 deleted text end new text begin $590 new text end
	deleted text begin (f) deleted text end new text begin (g) new text end Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $765 deleted text end new text begin $1,305 new text end	deleted text begin $252 deleted text end new text begin $435 new text end	deleted text begin $505 deleted text end new text begin $807 new text end
	deleted text begin (g) deleted text end new text begin (h) new text end Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $893 deleted text end new text begin $1,515 new text end	deleted text begin $295 deleted text end new text begin $505 new text end	deleted text begin $589 deleted text end new text begin $1,010 new text end
	deleted text begin (h) deleted text end new text begin (i) new text end Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,027 deleted text end new text begin $1,745 new text end	deleted text begin $339 deleted text end new text begin $582 new text end	deleted text begin $678 deleted text end new text begin $1,163 new text end
	deleted text begin (i) deleted text end new text begin (j) new text end Having $25,000,001 to $50,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,161 deleted text end new text begin $1,975 new text end	deleted text begin $383 deleted text end new text begin $658 new text end	deleted text begin $766 deleted text end new text begin $1,317 new text end
	deleted text begin (j) deleted text end new text begin (k) new text end Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,295 deleted text end new text begin $2,215 new text end	deleted text begin $427 deleted text end new text begin $738 new text end	deleted text begin $855 deleted text end new text begin $1,477 new text end
	deleted text begin (k) deleted text end new text begin (l) new text end Having $100,000,001 or more gross sales or service for the immediately previous license or fiscal year			deleted text begin $1,428 deleted text end new text begin $2,465 new text end	deleted text begin $471 deleted text end new text begin $822 new text end	deleted text begin $942 deleted text end new text begin $1,643 new text end
deleted text begin 6. deleted text end	deleted text begin Wholesale food processor or manufacturer operating only at the State Fair deleted text end			deleted text begin $125 deleted text end	deleted text begin $ 40 deleted text end	deleted text begin $ 50 deleted text end
deleted text begin 7. deleted text end	deleted text begin Wholesale food manufacturer having the permission of the commissioner to use the name Minnesota Farmstead cheese deleted text end			deleted text begin $ 30 deleted text end	deleted text begin $ 10 deleted text end	deleted text begin $ 15 deleted text end
deleted text begin 8. deleted text end	deleted text begin Wholesale food manufacturer processing less than 700,000 pounds per year of raw milk deleted text end			deleted text begin $ 30 deleted text end	deleted text begin $ 10 deleted text end	deleted text begin $ 15 deleted text end
deleted text begin 9. deleted text end	deleted text begin 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 deleted text end			deleted text begin $ 50 deleted text end	deleted text begin $ 15 deleted text end	deleted text begin $ 25 deleted text end

Subd. 4.

Food handler license account; appropriation.

A food handler license account
is established in the agricultural fund. Fees paid under subdivision 3 new text begin and section 28A.04 new text end
must be deposited in this account. Money in the account, including interest, is appropriated
to the commissioner for expenses relating to deleted text begin licensing and inspecting deleted text end new text begin regulating new text end food handlers
under chapters 28 to 34A or rules adopted under one of those chapters.

Sec. 10.

Minnesota Statutes 2024, section 28A.081, subdivision 1, is amended to read:

Subdivision 1.

Fee.

A fee of $125 for each certificate shall be charged to any person
who requests a certificate issued by the Minnesota Department of Agriculture to facilitate
the movement of Minnesota processed and manufactured foods destined for export from
the state of Minnesota. Certificates include, but are not limited to, a certificate of free sale,
certificate of export, certificate of sanitation, sanitary certificate, certificate of origin and/or
free sale, certificate of health and/or free sale, sanitation, and purity, certificate of free trade,
certificate of free sale, sanitation, purity, and origin, certificate of health, sanitation, purity,
and free sale, and letter of plant certification.

The commissioner deleted text begin shall deleted text end new text begin must receive payment with the request or new text end bill the requesting
person within seven days after issuing a certificate to the person. The requesting person
must submit payment for a certificate new text begin at the time of receiving the request or new text end within ten days
of the billing date. If a certificate fee payment is not received within 15 days of the billing
date, the commissioner may not issue any future certificates to the requesting person until
previous fees due are paid in full. Fees paid under this section must be deposited in the food
certificate account established under subdivision 2 or another account in the agricultural
fund if the expenses for the certificate will be paid from that other account.

Sec. 11.

Minnesota Statutes 2024, section 28A.085, subdivision 1, is amended to read:

Subdivision 1.

Violations; prohibited acts.

The commissioner may charge a reinspection
fee for each reinspection of a food handler new text begin or custom exempt food handler new text end that:

(1) is found with a major violation of requirements in chapter 28, 29, 30, 31, 31A, 32D,
33, or 34, or rules adopted under one of those chapters; or

(2) fails to correct equipment and facility deficiencies as required in rules adopted under
chapter 28, 29, 30, 31, 31A, 32D, or 34.

The first reinspection of a firm with gross food sales under $1,000,000 must be assessed
at deleted text begin $150 deleted text end new text begin $250 new text end . The fee for a firm with gross food sales over $1,000,000 is deleted text begin $200 deleted text end new text begin $300 new text end . The
fee for a subsequent reinspection of a firm for the same violation is 50 percent of their
current license fee or deleted text begin $300 deleted text end new text begin $500 new text end , whichever is greater. The establishment must be issued
written notice of violations with a reasonable date for compliance listed on the notice. An
initial inspection relating to a complaint is not a reinspection.

Sec. 12.

Minnesota Statutes 2024, section 28A.14, is amended to read:

28A.14 TRANSFER OF BUSINESS.

new text begin (a) Except as provided in paragraph (b), new text end a transfer of a business or a discontinuance of
its operation by the licensee at the address covered by the license voids the license and the
license certificate shall be surrendered to the commissioner immediately by anyone in
possession of the same.

new text begin (b) If a licensee discontinues operating at an additional location authorized under section
28A.06, the license is not void if the licensee has provided written notification to the
commissioner.
new text end

Sec. 13.

Minnesota Statutes 2024, section 28A.151, subdivision 2, is amended to read:

Subd. 2.

Food sampling and demonstration.

(a) Food used in sampling and
demonstration must be obtained from sources that comply with Minnesota Food Law.

(b) Raw animal, raw poultry, and raw fish products must not be served as samples.

(c) Food product sampling or food product demonstrations deleted text begin , including deleted text end new text begin that contain new text end cooked
animal, poultry, or fish products deleted text begin , deleted text end must be prepared on site at the event.

(d) Animal or poultry products used for food product sampling or food product
demonstrations must deleted text begin be deleted text end new text begin originate new text end from animals slaughtered under continuous inspection,
either by the USDA or through Minnesota's "Equal-to" inspection program.

(e) The licensing provisions of sections 28A.01 to 28A.16 shall not apply to persons
engaged in food product sampling or food product demonstrations.

Sec. 14.

Minnesota Statutes 2024, section 28A.152, subdivision 1, is amended to read:

Subdivision 1.

Licensing provisions applicability.

(a) new text begin Except as provided in paragraph
(d), new text end the licensing provisions of sections 28A.01 to 28A.16 do not apply to the following:

(1) deleted text begin an individual deleted text end new text begin a person new text end who prepares and sells food that is not potentially hazardous
food, as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following
requirements are met:

(i) the prepared food offered for sale under this clause is labeled to accurately reflect
the name and the registration number or address of the deleted text begin individual deleted text end new text begin person new text end preparing and
selling the food, the date on which the food was prepared, the ingredients and any possible
allergens, and the statement "These products are homemade and not subject to state
inspection."; and

(ii) the deleted text begin individual deleted text end new text begin person new text end displays at the point of sale a clearly legible sign or placard
stating: "These products are homemade and not subject to state inspection."; and

(2) deleted text begin an individual deleted text end new text begin a person new text end who prepares and sells home-processed and home-canned
food products if the following requirements are met:

(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 4.6
or lower or a water activity value of .85 or less;

(ii) the products are home-processed and home-canned in Minnesota;

(iii) the deleted text begin individual deleted text end new text begin person new text end displays at the point of sale a clearly legible sign or placard
stating: "These products are homemade and not subject to state inspection."; and

(iv) each container of the product sold or offered for sale under this clause is accurately
labeled to provide the name and the registration number or address of the individual who
processed and canned the goods, the date on which the goods were processed and canned,
ingredients and any possible allergens, and the statement "These products are homemade
and not subject to state inspection."

(b) deleted text begin An individual deleted text end new text begin A person new text end who qualifies for an exemption under paragraph (a), clause
(2), is also exempt from the provisions of sections 31.31 and 31.392.

(c) deleted text begin An individual who qualifies deleted text end new text begin To qualify new text end for an exemption under paragraph (a) deleted text begin may
organize the individual's cottage food business as a business entity recognized by state law deleted text end new text begin ,
a person must be an individual, a sole proprietorship, a single-member limited liability
company owned by one individual, or a limited liability company owned by two individuals
residing at the same residence new text end .

new text begin (d) A person cannot qualify for an exemption under paragraph (a) if the person holds a
food handler license required under section 28A.04.
new text end

Sec. 15.

Minnesota Statutes 2024, section 28A.152, subdivision 2, is amended to read:

Subd. 2.

Direct sales to consumers.

(a) deleted text begin An individual deleted text end new text begin A person new text end qualifying for an
exemption under subdivision 1 may sell the exempt food:

(1) directly to the ultimate consumer at a community event or farmers' market;

(2) directly from the deleted text begin individual's deleted text end new text begin person's new text end home to the ultimate consumer, to the extent
allowed by local ordinance; or

(3) through donation to a community event with the purpose of fundraising for an
individual, or fundraising for an educational, charitable, or religious organization.

(b) deleted text begin If deleted text end An exempt food product deleted text begin will deleted text end new text begin may new text end be delivered to the ultimate consumer upon sale
of the food product deleted text begin , deleted text end new text begin by new text end the deleted text begin individual deleted text end new text begin person new text end who prepared the food product deleted text begin must be the
person who delivers the food product to the ultimate consumer deleted text end new text begin , or by mail or commercial
delivery new text end .

(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
sold outside of Minnesota.

(d) Food products exempt under subdivision 1 may be sold over the Internet deleted text begin but must
be delivered directly to the ultimate consumer by the individual who prepared the food
product deleted text end . The statement "These products are homemade and not subject to state inspection."
must be displayed on the website that offers the exempt foods for purchase.

Sec. 16.

Minnesota Statutes 2024, section 28A.152, subdivision 3, is amended to read:

Subd. 3.

Limitation on sales.

deleted text begin An individual deleted text end new text begin A person new text end selling exempt foods under this
section is limited to total sales with gross receipts of $78,000 or less in a calendar year.

Sec. 17.

Minnesota Statutes 2024, section 28A.152, subdivision 4, is amended to read:

Subd. 4.

Registration.

deleted text begin An individual deleted text end new text begin A person new text end who prepares and sells exempt food
under subdivision 1 must register annually with the commissioner. The commissioner shall
register deleted text begin an individual deleted text end new text begin a person new text end within 30 days of submitting a complete registration to the
commissioner. A registration shall be deemed accepted after 30 days following deleted text begin an individual's deleted text end new text begin
a person's new text end complete registration to the commissioner. The annual registration fee is deleted text begin $50 deleted text end new text begin
$30 new text end . deleted text begin An individual with $5,000 or less in annual gross receipts from the sale of exempt food
under this section is not required to pay the registration fee. By January 1, 2022, the
commissioner shall adjust the gross receipts amount of this fee exemption based on the
consumer price index using 2002 as the index year for the $5,000 gross receipts exemption.
deleted text end

Sec. 18.

Minnesota Statutes 2024, section 28A.152, subdivision 5, is amended to read:

Subd. 5.

Training.

deleted text begin (a) An individual deleted text end new text begin A person new text end who sells exempt food under this section
and is required to pay the registration fee in subdivision 4 must complete a safe food handling
training course that is approved by the commissioner before registering under subdivision
4. The training shall not exceed eight hours and must be completed every three years while
the deleted text begin individual deleted text end new text begin person new text end is registered under subdivision 4.

deleted text begin (b) An individual who sells exempt food under this section and is exempt from paying
the registration fee in subdivision 4 must satisfactorily complete an online course and exam
as approved by the commissioner before registering under subdivision 4. The commissioner
shall offer the online course and exam under this paragraph at no cost to the individual.
deleted text end

Sec. 19.

Minnesota Statutes 2024, section 28A.152, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Adjustments. new text end

new text begin The commissioner must adjust the limitation on sales in
subdivision 3 every two years to the inflation level established in the United States Bureau
of Labor and Statistics Consumer Price Index, using July 2025 as the base month and year.
new text end

Sec. 20.

Minnesota Statutes 2024, section 28A.17, is amended to read:

28A.17 LICENSE RENEWAL.

Licenses for food deleted text begin processors or manufacturers or food brokers deleted text end new text begin handlers new text end shall be renewed
annually deleted text begin on January 1. Licenses for retail and wholesale food handlers shall be renewed
annually on July 1. Licenses for mobile food concessions and for retail mobile units shall
be renewed annually on April 1 deleted text end new text begin prior to the end of the licensing period. Approval of license
renewal is contingent upon conditions described in section 28A.07 and payment of license
fees identified in section 28A.08 new text end .

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: S2458-2

21.116 EXPENSES.

All necessary expenses incurred in carrying out the provisions of sections 21.111 to 21.122 and the compensation of officers, inspectors, and employees appointed, designated, or employed by the commissioner, as provided in such sections, together with their necessary traveling expenses, together with the traveling expenses of the members of the advisory seed potato certification committee, and other expenses necessary in attending committee meetings, shall be paid from, and only from, the seed potato inspection account, on order of the commissioner and commissioner of management and budget.

21.118 RULES.

It shall be the duty of the commissioner to promulgate reasonable rules for carrying out the purposes and enforcing the provisions of sections 21.111 to 21.122.

21.1196 RESTRICTED SEED POTATO GROWING AREA.

Subd. 3.

Penalty.

A potato grower who violates subdivision 2, paragraph (a), is subject to a penalty of $100 per acre of potatoes grown and not certified.

21.121 VIOLATIONS; REPORTS, PROSECUTIONS.

It shall be the duty of every prosecuting officer, to whom the commissioner shall report any violation of sections 21.111 to 21.122, to cause appropriate proceedings to be commenced and prosecuted in the proper courts without delay for the enforcement of the penalties in such case as provided in such sections.

21.122 PENALTIES.

Any person violating any provision of sections 21.111 to 21.121 or any rule promulgated by the commissioner thereunder shall be guilty of a misdemeanor; and upon conviction for a first offense shall be punished by a fine of not less than $25 nor more than $1,000 or by imprisonment for not less than 10 days nor more than 90 days; and for each second and subsequent offense such persons shall be guilty of a gross misdemeanor and shall be punished by a fine of not less than $50 nor more than $3,000 or by imprisonment for not less than 30 days nor more than six months. Upon conviction for such second offense the commissioner shall refuse the violator the privilege of handling in any way certified seed potatoes during the season in which such second offense was committed.

35.68 RABIES PROCLAMATION.

If a community health board as defined in section 145A.02, subdivision 5, investigates and finds that rabies does exist in a town or city the community health board shall make and file a proclamation of the investigation and determination which prohibits the owner or custodian of any dog from allowing the dog to be at large within the town or city unless the dog is effectively muzzled so that it cannot bite any other animal or person.

If the executive director of the Board of Animal Health, after investigation, has determined that rabies exists in any territory in the state, similar proclamations must be issued in all towns and cities within the territory or area in which it is necessary to control the outbreak and prevent the spread of the disease. The proclamation must prohibit the owner or custodian of any dog within the designated territory from permitting or allowing the dog to be at large within the territory unless the dog is effectively muzzled so that it cannot bite any other animal or person.

All local peace officers and community health boards shall enforce sections 35.67 to 35.69.

A proclamation issued by the community health board must be filed with the clerk of the political subdivision responsible for the community health board. One issued by the executive director of the Board of Animal Health must be filed with the clerk of each town and city within the territory it covers.

Each officer with whom the proclamation is filed shall publish a copy of it in one issue of a legal newspaper published in the clerk's town or city if one is published there. If no newspaper is published there, the clerk must post a copy of the proclamation in three public places. Publication is at the expense of the municipality.

Proof of publication must be by affidavit of the publisher and proof of posting must be by the person doing the posting. The affidavit must be filed with the proclamation. The proclamation is effective five days after the publication or posting and remains effective for the period of time not exceeding six months specified in it by the community health board making the proclamation.

35.830 SALE OF BRANDED LIVESTOCK; WRITTEN BILL OF SALE.

Persons selling animals marked or branded with their mark or brand recorded in a current state brand book or its supplement or registered with the board shall execute to the purchaser a written bill of sale bearing the signature and residence of the seller, the name and address of the purchaser, the total number of animals sold, a description of each animal sold as to sex and kind, and all registered brands. The bill of sale must be kept by the purchaser for two years and for as long afterwards as the purchaser owns any of the animals described in the bill of sale. A copy of the bill of sale must be given to each hauler of the animals, other than railroads, and must accompany the shipment of animals while in transit. The bill of sale or a copy must be shown by the possessor on demand to any peace officer or compliance representative of the board. The bill of sale is prima facie evidence of the sale of the animals described by the bill of sale.

239.77 BIODIESEL CONTENT MANDATE.

Subd. 5.

Annual report.

(a) Beginning in 2009, the commissioner of agriculture must report by January 15 of each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture policy and finance regarding the implementation of the minimum content requirements in subdivision 2, including information about the price and supply of biodiesel fuel. The report shall include information about the impacts of the biodiesel mandate on the development of biodiesel production capacity in the state, and on the use of feedstock grown or raised in the state for biodiesel production. The report must include any written comments received from members of the biodiesel fuel task force by January 1 of that year designated by them for inclusion in the report.

(b) The commissioner of agriculture, in consultation with the commissioner of commerce and the Biodiesel Fuel Task Force, shall study the need to continue the exceptions in subdivision 3. The 2013 report under paragraph (a) shall include recommendations for studies and other research needs to make a determination on the need for the exceptions, including any recommendations for use of the agricultural growth, research, and innovation program funding to conduct the research. The 2014 report under paragraph (a) shall contain the commissioner of agriculture's recommendations on whether to continue any of the exceptions in subdivision 3.

Repealed Minnesota Rule: S2458-2

1510.2300 AUTHORITY.

Parts 1510.2300 to 1510.2355 provide standards for the inspection, certification, production, and marketing of certified seed potatoes in the state of Minnesota. The authority to adopt these rules is contained in Minnesota Statutes, section 21.118.

1510.2305 DEFINITIONS.

Subpart 1.

General.

As used in parts 1510.2300 to 1510.2355, the following definitions apply unless the context clearly indicates otherwise.

Subp. 2.

Certified.

"Certified" has the meaning given it in Minnesota Statutes, section 21.111, subdivision 3.

Subp. 3.

Certified seed potatoes.

"Certified seed potatoes" means potatoes which have been produced, graded, sacked or placed in bulk, and inspected and certified in accordance with parts 1510.2300 to 1510.2355.

Subp. 3a.

Class.

"Class" means the seed quality level as it relates to compliance with the specified tolerances for diseases and varietal purity.

Subp. 3b.

Clone.

"Clone" means a unit of seed potatoes, being the progeny of one plant, which has been tested to become eligible to produce Primary Foundation 1 seed potatoes.

Subp. 4.

Commissioner.

"Commissioner" means the commissioner of agriculture or the commissioner's authorized representative.

Subp. 5.

Crop.

"Crop" means all lots produced on a farm in one year.

Subp. 6.

Department.

"Department" means the Department of Agriculture.

Subp. 6a.

Explant.

"Explant" means an in vitro potato plant or plantlet produced by rooting an excised tip of a tuber sprout or an axillary bud from a growing plant which serves as a parent for a whole clone or accession of micropropagated plants or plantlets.

Subp. 7.

Farm.

"Farm" means a seed potato enterprise. It includes all land, equipment, storage facilities, and laborers used to produce certified seed potatoes.

Subp. 8.

Field.

"Field" means a plot of land on a farm on which potatoes are grown for certification. The potatoes shall be of one variety from one certified seed potato growing operation and shall be grown in physical separation from other fields.

Subp. 9.

Inspected.

"Inspected" has the meaning given it in Minnesota Statutes, section 21.111, subdivision 2.

Subp. 10.

Lot.

"Lot" means a group of seed potatoes entered for certification that have passed the field inspection requirements. For the purposes of parts 1510.2300 to 1510.2355, a lot of potatoes also means that the group is of one variety, from one or more fields, grown on the same farm, and stored in physical separation from other lots.

Subp. 10a.

Material in maintenance.

"Material in maintenance" means propagative material, plantlets, or tubers that are maintained, not multiplied under controlled laboratory conditions.

Subp. 10b.

Physical separation.

"Physical separation" means separated by at least the width of one row, or markings such as flags that are at every corner of the lot or at least 100 yards apart, whichever is less. The markings must be visible to the inspector from anywhere on the separation.

Subp. 11.

Rejected.

"Rejected" means that a field or lot fails to meet the standards provided for in parts 1510.2300 to 1510.2355.

Subp. 12.

Seed potato certification inspector.

"Seed potato certification inspector" means an employee of the department authorized by the commissioner to inspect seed potato plants and tubers entered for certification.

Subp. 13.

Seed potatoes.

"Seed potatoes" has the meaning given it in Minnesota Statutes, section 21.111, subdivision 5.

Subp. 14.

Tolerance.

"Tolerance" means a specified allowance for variation from the standards provided for diseases and physical defects, as provided in parts 1510.2300 to 1510.2355.

Subp. 15.

Tuber unit.

"Tuber unit" means the separate pieces of one tuber that are planted consecutively in two or more hills in a row.

1510.2310 GENERAL GUIDANCE.

Subpart 1.

Scope.

The provisions of this part govern the production of potatoes for use as certified seed potatoes.

Subp. 2.

Seed potato certification.

In order to produce certified seed potatoes, a grower must comply with the following procedures:

A.

Potatoes entered for certification shall be inspected while growing in the field and again after harvest at the time of shipment. Certification shall be based upon visual inspection by the commissioner of sample plants and tubers from each field and lot, or for varieties that do not express visible symptoms of a specific pathogen, seed potatoes must be subjected to laboratory tests to determine the level of the pathogen in a seed lot. This testing may occur during the growing season, storage season, or winter testing. Certificates shall be issued to show the varietal purity, freedom from disease, and physical defects of the potatoes at the time of inspection.

B.

Participation in the certified seed potato program shall be voluntary. The applicant may withdraw at any time. Farming and sanitation practices are the responsibility of the applicant. Certification and inspection under parts 1510.2300 to 1510.2355 shall be conducted by the commissioner. Failure of the applicant to comply with the requirements of parts 1510.2300 to 1510.2355 shall be cause for rejection of any field or lot. Potatoes from rejected fields or lots cannot be sold as certified seed potatoes.

Subp. 3.

Winter testing.

In order to detect certain virus diseases, samples from all classes as defined in parts 1510.2325 and 1510.2330 shall be winter tested. In the event of serious malfunctions of the winter test, classification of lots in the certified classes must be based on the previous summer field readings.

Subp. 4.

Certified seed potato classes.

Seed potato certification classes are differentiated by their compliance level with disease tolerances and varietal purity. The origin of the seed also determines the class. The classes, according to their origin, in the generation system in descending order are: Prenuclear (PN), Generation 1 (G1), Generation 2 (G2), Generation 3 (G3), Generation 4 (G4), Generation 5 (G5), and Generation 6 (G6). Equivalent to this in the clonal system in descending order are: Primary Foundation 1 (PF1), Primary Foundation 2 (PF2), Foundation 1 (F1), Foundation 2 (F2), and Certified (C).

Subp. 5.

Certified seed potato grades.

Grades of certified seed potatoes are established according to the physical defects of the tubers. There are three grades used for shipping Minnesota certified seed potatoes.

A.

The blue tag certified seed potato grade, the first grade, has tolerances for physical defects of the tubers stricter than the other grades. This grade may be used by growers of Primary Foundation certified, Foundation certified, Generation certified, and Certified seed potatoes. The blue tag grade may be used for intrastate and interstate shipments of certified seed potatoes.

B.

The yellow tag certified seed potato grade is the second grade. This grade allows more physical defects of the tubers than the blue tag certified seed potato grade. It may be used by growers of Primary Foundation certified, Foundation certified, Generation certified, and Certified seed potatoes. The yellow tag grade may also be used for intrastate and interstate shipments of certified seed potatoes.

C.

The white tag certified seed potato grade is the third grade. The tolerances for physical defects of the tubers are determined by agreement between purchaser and seller of the certified seed potatoes. It may only be used for intrastate and interstate shipments of certified seed potatoes.

Subp. 6.

Zero tolerance for bacterial ring rot and potato spindle tuber viroid.

Certification rules make provisions to allow the presence of certain diseases at levels sufficiently low as to preclude significant effects on certified seed potato value. For bacterial ring rot and potato spindle tuber viroid, there is a zero tolerance, and the discovery of a single plant in the field or a tuber in storage infected with one of these diseases shall cause the rejection of the field or lot. The absence of a finding shall not be construed to mean that the field or lot inspected is free from the disease.

Subp. 7.

Warranty.

A certification does not represent a warranty of any kind, express or implied, including merchantability, as to the quality of the crop produced from the certified seed potatoes. A certification represents only that the seed potatoes were produced, graded, sacked or placed in bulk, and inspected in accordance with parts 1510.2300 to 1510.2355.

1510.2315 APPLICATION FOR INSPECTION.

Subpart 1.

Eligibility; procedure.

All potatoes planted on a farm must be entered for certification. Application for inspection must be made before June 16 each year on forms furnished by the commissioner. Applications postmarked after June 15 but before July 1 must be charged a 50 cents per acre late registration fee. No applications may be accepted that are postmarked later than June 30. The commissioner may extend the deadline due to special circumstances, such as natural disasters, which make it impractical or impossible for planting to be completed by the deadline and which affect an area or large number of growers.

Subp. 2.

Shipping point inspection certificates, bulk seed certificates, or certificates of origin.

An application for the inspection of a field planted with purchased certified seed potatoes must include copies of either the shipping point inspection certificates, bulk seed certificates, or certificates of origin for the total amount of purchased certified seed potatoes planted. Use of certificates of origin requires approval of both the seller and the purchaser and is restricted to intrastate shipments between certified seed potato producers. The certificate of origin must contain information considered necessary by the commissioner and must at a minimum identify seed potatoes as to the producer, variety, classification, and lot. The limitation of warranty in part 1510.2310, subpart 7, must be further limited to exclude any representation as to condition of the potatoes at the time of shipment.

Subp. 3.

Separate application.

A separate application must be completed for each field planted.

Subp. 4.

Sufficient acreage.

No application for inspection may be accepted from a grower in a community or county in which there is not sufficient acreage for the total inspection fee charges to cover the cost of wages and expenses of the inspectors providing the inspection service. Determination of sufficient acreage must be made by the commissioner.

1510.2320 SEED POTATOES ELIGIBLE FOR MINNESOTA CERTIFICATION PLANTING.

Subpart 1.

Authorization.

A field may not be inspected for certification unless both the seed potato variety and the particular lot planted have the authorization of the commissioner. In considering seed potato varieties for authorization for certification planting, the commissioner shall consider scientific evidence and expert opinion. To be eligible for certification planting, seed potatoes must meet the requirements of subpart 2 or 3.

Subp. 2.

Minnesota grown seed potatoes.

The following classes of seed potatoes grown in Minnesota are eligible for planting: Prenuclear, Generation 1, Generation 2, Generation 3, Generation 4, Generation 5, Primary Foundation 1, Primary Foundation 2, Foundation 1, Foundation 2, and experimental status seed potatoes. The commissioner shall authorize the planting of Certified class or Generation 6 class seed potatoes if there is no source of higher classes than Certified class or Generation 6 class seed potatoes available to the grower, the lot has been winter tested, and the seed does not pose a serious disease threat.

Subp. 3.

Non-Minnesota grown seed potatoes.

Seed potatoes grown outside of the state approved for certification planting by the certifying agency in another state or a Canadian province may be planted if requirements for certification meet Minnesota requirements for certified seed potatoes of classes higher than Certified class or Generation 6 class, as indicated on an import affidavit.

Subp. 4.

Experimental status.

Seedlings or numbered selections may be accepted for entrance into the certification system in an experimental status. The applicant shall submit a written statement with the certification application from the breeder, originator, or originator's designee that the applicant has full and unrestricted rights to introduce the seedling or numbered selection into the commercial market, and that the seedling or numbered selection must be named within five years from acceptance of the application. If the seedling or numbered selection is not named within five years from acceptance of the application, a two-year waiting period must pass before the seedling or numbered selection may be reentered into the certification program. Seedlings or numbered selections in experimental status must be designated as a class and conform to the requirements of that class. The word "EXPERIMENTAL" must be added on the tag. Lots from a breeder's seed that have not gone through the testing and, when necessary, virus-freeing, are considered either Foundation class 1 or 2, "EXPERIMENTAL."

Subp. 5.

Protected varieties.

Before a seed potato variety protected under the Plant Variety Protection Act Amendments of 1994 may be entered into the certification system, the applicant must submit a written statement with the certification application from the breeder, originator, or originator's designee that the applicant has full and unrestricted rights to introduce the protected variety into the commercial market.

1510.2325 REQUIREMENTS FOR CERTIFIED SEED POTATO PRODUCTION.

Subpart 1.

Requirements.

The standards in this part and part 1510.2330 must be met before potatoes may be classified as certified seed potatoes.

Subp. 2.

Field inspection and laboratory testing.

Certification must be based upon information regarding the following: stand, general vigor, varietal purity, disease tolerances, and factors affecting field inspection. At least two field inspections must be made of each field during the growing season. A final inspection must be made for bacterial ring rot, when symptom expression is optimal. If a final inspection cannot be carried out, because of management practices of the grower, or for reasons out of the grower's control, a laboratory test is necessary to maintain eligibility for certification. Additional inspections and laboratory tests may be made if necessary to meet phytosanitary requirements in established markets such as other states and Canadian provinces.

A.

Stand. A field shall be rejected if there are a large number of plants missing due to disease.

B.

General vigor. A field shall be rejected if it contains a large number of weak plants.

C.

Ring rot. If bacterial ring rot is found in any field or lot, the remaining crop is not eligible for certification planting.

D.

Varietal purity. A field must be rejected if it contains more than the tolerances acceptable for a specific class as listed in Tables 1 and 2 in part 1510.2330, subparts 11 and 12.

E.

Disease tolerances (percentage of infected plants). A field must be rejected if it contains percentages of diseased plants in excess of those acceptable for a specific class as listed in Tables 1 and 2 in part 1510.2330, subparts 11 and 12.

F.

Factors affecting field inspection. A field shall be rejected if any of the following are present to such an extent that satisfactory inspection for diseases cannot be made: early or late blight; blackleg or wilt of any kind; weeds; insect injury; chemical damage.

A field shall be rejected if any other conditions are present to such an extent that satisfactory inspection for diseases cannot be made. A field is ineligible for certification if there are cull piles in such close vicinity to the field that contamination of the field can be expected.

Subp. 3.

Roguing.

If any of the diseases listed in part 1510.2330 are present in a field in amounts less than the maximum disease tolerance level, the field must be rogued and the infected plants removed before the final inspection. If roguing is done after tubers form, the tubers from the rogued plants shall also be removed and destroyed.

Subp. 4.

Storage.

Lots shall not be stored in any warehouse where other potatoes are stored, nor shall they be stored under conditions of possible disease contamination. If more than one grower stores lots in the same warehouse, each grower's lots shall be properly identified by labeling the bin with the grower's name and address, variety, and amount in the bin. If the lots are to be stored in a public warehouse or storage unit not directly under the control of the grower, a complete record giving location of the storage unit, number of the bin, variety, and the quantity stored shall be sent to the commissioner when the lots are put into storage. If it is available, a copy of the warehouse receipt shall also be sent to the commissioner.

Equipment used for grading and handling lots shall not be used for any other potatoes. If any equipment is used on other potatoes, the lots shall be rejected.

Any firm handling lots on contract shall label all bins containing lots with the name of the grower whose lots are being stored. Responsibility for proper labeling and subsequent handling rests with the firm. No certification tags or bulk certificates shall be issued until this is done.

Each grower shall submit a completed storage and yield report on each lot on forms furnished by the commissioner. Certification tags shall not be issued to growers who have not submitted the report.

Subp. 5.

Tags and bulk certificates.

Official blue, yellow, or white tags, bearing the grower's name and address, the potato variety, and the crop year shall be issued when the potatoes meet the certification requirements described in parts 1510.2310 to 1510.2330. Tags shall be fastened onto sacks so as to constitute a seal at the time the lots are prepared for shipment. Bulk certificates must also show the date of issuance, the class, the grade, and the approximate weight of the load.

Tags shall be issued only to growers, except when lots are stored in a public warehouse or in a storage unit not under direct control of the grower. They shall be issued to the owner or manager of the storage unit upon receipt of written authorization from the grower.

Responsibility for ordering tags shall rest entirely with each grower.

Subp. 6.

Grading.

All lots shall be inspected at the loading point whenever possible. If inspection at the loading point is impossible, request for grading inspection in transit shall be made. Every bagged lot or shipment offered for sale and bearing official certification tags shall be in new even-weight sacks. Bulk shipments shall be identified with a bulk certificate. Both bagged and bulk lots or shipments must meet grade standards specified in part 1510.2355. Lots or shipments that fail to meet grade standards when inspected shall be reconditioned, or:

A.

if the lot or shipment is in sacks, the tags shall be removed under the supervision of a state or federal/state inspector before the lot or shipment is allowed to proceed to its destination; and

B.

if the shipment is in bulk, no bulk certificate shall be issued.

All costs of reconditioning to meet grade shall be borne by the shipper.

1510.2330 REQUIREMENTS FOR PRODUCTION OF DIFFERENT CLASSES OF CERTIFIED SEED POTATOES.

Subpart 1.

Prenuclear class certified seed potatoes (PN).

A.

A lot grown as and intended to be Prenuclear must be grown from plants tested and shown to be free from the following pathogens:

(1)

Clavibacter michiganensis ssp. sepedonicus (ring rot);

(2)

Pectobacterium atrosepticum ssp. Atrosepticum, carotovora (blackleg);

(3)

potato virus X;

(4)

potato virus S;

(5)

potato virus A;

(6)

potato virus M;

(7)

potato virus Y;

(8)

potato spindle tuber viroid; and

(9)

potato leaf roll virus.

Each initial explant or tuber must also have been tested for any other organisms for which testing is required by the phytosanitary requirements in another state or Canadian province. Material in maintenance must have been tested during the year of the production of prenuclear class.

B.

Prenuclear class seed potatoes must be produced in a greenhouse or screenhouse under sanitary conditions, free from insects and weeds that can harbor or transmit potato diseases or other conditions of possible disease contamination. All facilities must be sufficiently insulated from insects by screens and double doors. The facilities and the equipment are subject to inspection to verify freedom from possible disease contamination.

C.

One percent of each lot or ten plants or tubers from each lot, whichever is greater, must be tested during the growing season to verify that the crop is free from potato virus X, potato virus Y, potato leaf roll virus, C. michiganensis, and P. atrosepticum.

D.

Prenuclear tubers may originate from greenhouse tubers for one year only if the greenhouse tubers have remained at the same growing operation and have remained isolated from field-grown tubers.

E.

A lot must be rejected if it contains any diseased plants at any inspection, or varietal mixture at final inspection.

F.

The allowable tolerances for disease and varietal mixture for seed potatoes classified as prenuclear are in Table 1 in subpart 11 under column PN.

Subp. 2.

Generation 1 class certified seed potatoes (G1).

Generation 1 class seed potatoes must meet the following requirements:

A.

The seed source must be either Prenuclear tubers or plantlets.

B.

Tubers or plantlets must be planted in identifiable family units.

C.

Each field must be tested during the growing season for potato virus X. For a lot to be tagged "virus tested (VT)," no more than one percent of the plants tested may be infected with potato virus X.

D.

Each lot must be stored in an individual identifiable unit.

E.

The allowable tolerances for disease and varietal mixture for seed potatoes classified as Generation 1 are in Table 1 in subpart 11 under column G1.

Subp. 3.

Generation 2 class certified seed potatoes (G2).

Generation 2 class seed potatoes must originate from Generation 1 class seed potatoes. Each field may be tested during the growing season for potato virus X at grower's request. For a lot to be tagged "virus tested (VT)," no more than three percent of the plants tested may be infected with potato virus X. The allowable tolerances for disease and varietal mixture are in Table 1 in subpart 11 under column G2.

Subp. 4.

Generation 3 class certified seed potatoes (G3).

Generation 3 class seed potatoes must originate from Generation 2 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 1 in subpart 11 under column G3.

Subp. 5.

Generation 4 class certified seed potatoes (G4).

Generation 4 class seed potatoes must originate from Generation 3 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 1 in subpart 11 under column G4.

Subp. 6.

Generation 5 class certified seed potatoes (G5).

Generation 5 class seed potatoes must originate from Generation 4 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 1 in subpart 11 under column G5.

Subp. 7.

Generation 6 class certified seed potatoes (G6).

Generation 6 class seed potatoes must originate from Generation 5 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 1 in subpart 11 under column G6.

Subp. 8.

Primary Foundation classes (PF).

A.

A lot grown as and intended to be Primary Foundation certified seed potatoes must originate from clonal selection, with all clones laboratory tested and be proven free from the following pathogens:

(1)

Clavibacter michiganensis ssp. sepedonicus (ring rot);

(2)

potato virus A;

(3)

potato virus M;

(4)

potato virus Y;

(5)

potato spindle tuber viroid; and

(6)

potato leaf roll virus.

B.

A lot must be kept under direct control of the grower and must not be stored in any warehouse in which other potatoes are stored.

C.

The two classes of Primary Foundation seed potatoes are PF1 and PF2.

(1)

PF1 class certified seed potatoes must originate from clonal multiplication where all clones have been laboratory-tested. PF1 class seed potatoes are tuber united. Crops must be free of bacterial ring rot for a minimum of two years to be eligible to be PF1 class seed potatoes. The allowable tolerances for disease and variety mixture are in Table 2 in subpart 12 under column PF1.

(2)

PF2 class certified seed potatoes must originate from PF1 class seed potatoes and originate from the same farm operation. They must be grown from potatoes produced on a tuber unit seed plot. Crops must be free of bacterial ring rot for a minimum of two years to be eligible to be PF2 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 2 in subpart 12 under column PF2.

Subp. 9.

Foundation classes (F).

The two classes of Foundation class seed potatoes are F1 and F2.

A.

F1 class certified seed potatoes must originate from Primary Foundation class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 2 in subpart 12 under column F1.

B.

F2 class certified seed potatoes must originate from F1 class seed potatoes. The allowable tolerances for disease and varietal mixture are in Table 2 in subpart 12 under column F2.

Subp. 10.

Certified class certified seed potatoes.

Certified class seed potatoes must originate from Foundation or Generation classes of seed potatoes. The allowable tolerances for disease and varietal mixture are in subpart 11, Table 2, under column C.

Subp. 11.

Table 1.

TABLE 1
TOLERANCES FOR DISEASES AND VARIETALMIXTURE FOR GENERATION CLASSES
	CLASSES
	PN	G1	G2	G3	G4	G5	G6	C
Tolerances:
Severe Mosaic	0	0.5	0.5	0.5	0.5	0.5	0.5	1
Leaf Roll	0	0.5	0.5	0.5	0.5	0.5	0.5	1
Total	0	0.5	0.5	0.5	0.5	0.5	0.5	1
Other viruses (S and X excluded)	0	0.5	0.5	0.5	0.5	0.5	0.5	0.5
Mycoplasms	0	0.5	0.5	0.5	0.5	0.5	0.5	0.5
Total	0	0.5	0.5	0.5	0.5	0.5	0.5	0.5
Mild Mosaic (S)	0
Mild Mosaic (X)	0	VT:1	VT:3	VT:3	VT:3	VT:3	VT:3	VT:3
Blackleg	0	0	0.2	0.5	1	exc.	exc.	exc.
Varietal mixture	0	0	0	0	0.1	0.1	0.2	0.2
Ring Rot and Spindle Tuber	0	0	0	0	0	0	0	0
Winter Test:
Virus, Ch. Dam.		0.5	0.5	0.5	0.5	0.5	0.5	0.5
BRR, PSTV		0	0	0	0	0	0	0
Summer Test:
PVX, VT* virus	0	1	3	3	3	3	3
BRR, PSTV	0	0	0	0	0	0	0	0

Numbers represent percentages

VT means Virus Tested

Mycoplasms: Haywire, Witches Broom, Yellow Dwarf

Severe Mosaic: PVY, PVA, PVM

BRR means Bacterial Ring Rot

PSTV means Potato Spindle Tuber Viroid

Ch. Dam. means Expressing symptoms of chemical damage

* For the classes G2 and lower, the summer test for PVX is done on request of the grower only. The lot may be labeled "Virus Tested," if the tolerance of one percent for G1 and three percent for the lower classes is met.

Subp. 12.

Table 2.

TABLE 2
TOLERANCES FOR DISEASES AND VARIETAL MIXTURE FOR CLASSES ORIGINATING FROM CLONAL MULTIPLICATION
	CLASSES
	CLONE	PF1	PF2	F1	F2	C
Severe Mosaic	0	0.5	0.5	0.5	0.5	1.00
Leaf roll	0	0.5	0.5	0.5	0.5	1.00
Total	0	0.5	0.5	0.5	0.5	1.00
Total other viruses (S and X excluded)	0	0.5	0.5	0.5	0.5	0.5
Mycoplasms	0	0.5	0.5	0.5	0.5	0.5
Total	0	0.5	0.5	0.5	0.5	0.5
Mild Mosaic (S)
Mild Mosaic (X)
Blackleg		0.1	0.2	exc.	exc.	exc.
Varietal Mixture				0.1	0.2	0.2
Ring Rot and Spindle Tuber	0	0	0	0	0	0
Winter Test:
Virus, Ch. Dam.		0.5	0.5	0.5	0.5	0.5
BRR, PSTV		0	0	0	0	0
Summer Lab Test:
Virus	0
BRR	0
PSTV	0

Numbers represent percentages

VT means Virus Tested

Mycoplasms: Haywire, Witches Broom, Yellow Dwarf

Severe Mosaic: PVY, PVA, PVM

BRR means Bacterial Ring Rot

PSTV means Potato Spindle Tuber Viroid

Ch. Dam. means Expressing symptoms of chemical damage.

1510.2335 FEES.

Fees shall be set by the commissioner in amounts necessary to carry out the seed potato certification service. Fees shall be reviewed annually and notice of the current fee schedule sent to growers from time to time.

1510.2340 FIELD INSPECTION FEES.

Field inspection fees shall be paid at time of application for entry into the certification program.

1510.2345 WINTER-TESTING FEES.

Winter-testing fees shall be paid before results are sent to the grower.

1510.2350 FEES FOR OTHER DISEASE TESTING.

Fees for other disease testing shall be paid before results are listed in the Minnesota Seed Potato Certification Directory.

1510.2355 MINNESOTA CERTIFIED SEED POTATO GRADES AND TOLERANCES.

Subpart 1.

Minnesota certified seed potato grades.

Before potatoes are eligible for grading as certified seed potatoes, the requirements of parts 1510.2315 to 1510.2330 must be met.

Subp. 2.

Minnesota blue tag certified seed potato grade.

To be graded as Minnesota blue tag certified seed potatoes, the potatoes must meet the requirements in items A to C.

A.

Condition. The potatoes must be, at the time of final inspection, of one variety, unwashed, fairly well-shaped, free from bacterial ring rot, late blight, freezing, black heart, and soft rot or wet breakdown, and free from damage caused by soil or other foreign matter, second growth, air cracks, cuts, shriveling, sprouts, pitted scab, surface scab, powdery scab, russet scab, dry rot, other diseases, insects or worms, mechanical or other means, flattened or depressed areas with underlying flesh discoloration, and from serious damage caused by hollow heart, wire worm, growth cracks, or internal discoloration other than hollow heart. Sunburn and silver scurf are not factors. This item does not apply to hollow heart if labeled "hollow heart exempt," on the tag or certificate.

B.

Size. For round or intermediate shaped varieties, the maximum size is 12 ounces (340.2 grams) and, unless otherwise specified, the minimum size shall be not less than 1-1/2 inches (38.1 millimeters) in diameter. For long varieties, the maximum size is 14 ounces (396.9 grams) and, unless otherwise specified, the minimum size shall be not less than 1-1/2 inches (38.1 millimeters) in diameter. For all varieties, size "B," the minimum diameter shall be not less than 1-1/2 inches (38.1 millimeters) and the maximum size shall be not more than 2-1/4 inches (57.1 millimeters) in diameter. The department may grade potatoes that do not meet the maximum and minimum size specifications as Minnesota blue tag certified seed potatoes if the buyer agrees to accept potatoes of alternate size specifications from the grower and these specifications are listed on the tag or bulk certificate issued by the department.

C.

Lot tolerances. In order to allow for variations incident to proper grading and handling, the following tolerances, by weight, are provided:

(1)

For defects:

(a)

ten percent for potatoes seriously damaged by hollow heart, unless labeled "hollow heart exempt" on the tag or certificate;

(b)

five percent for potatoes seriously damaged by internal discoloration (other than hollow heart);

(c)

ten percent for potatoes damaged by soil or other foreign matter;

(d)

20 percent for potatoes damaged by sprouts;

(e)

ten percent for potatoes seriously damaged by wireworm; and

(f)

six percent for potatoes which fail to meet the remaining requirements of the grade, provided that included in that amount not more than the following percentages are allowed for the following defects:

i.

soft rot, frozen, or wet breakdown, 0.5 percent;

ii.

damage by surface, powdery, or pitted scab, 2.0 percent;

iii.

damage by dry rot, 2.0 percent, of which not more than 1.0 percent late blight tuber rot;

iv.

bacterial ring rot, 0.0 percent; and

v.

late blight tuber rot, 1.0 percent; and

(g)

the following do not affect seed quality and must not be scored against the grade:

i.

brown discoloration following skinning;

ii.

dried stems;

iii.

flattened or depressed areas showing no underlying flesh discoloration;

iv.

greening;

v.

sunburn;

vi.

skin checks; and

vii.

silver scurf.

(2)

For offsize:

(a)

five percent for potatoes which fail to meet the required or specified minimum size; and

(b)

ten percent for potatoes which fail to meet the required maximum size.

Subp. 3a.

Minnesota yellow tag certified seed potato grade.

To be graded as Minnesota yellow tag certified seed potatoes, the potatoes must meet the requirements in items A to D.

A.

Condition. At the time of final inspection, the potatoes must be of one variety, unwashed, fairly well-shaped, free from bacterial ring rot, late blight, freezing, black heart, and soft rot or wet breakdown, and free from damage caused by second growth, air cracks, cuts, shriveling, pitted scab, surface scab, powdery scab, dry rot, other diseases, insects or worms, mechanical means or other means, and from serious damage caused by soil or other foreign matter, hollow heart, wireworm, growth cracks, russet scab, or internal discoloration other than hollow heart. Sunburn and silver scurf are not factors. This item does not apply to hollow heart if labeled "hollow heart exempt," on the tag or certificate.

B.

Size. For all varieties, the maximum size is 14 ounces (396.9 grams) and the minimum size is 1-1/2 inch (38.1 mm) in diameter. For all varieties, the minimum diameter for size "B" shall not be less than 1-1/2 inches (38.1 millimeters) and the maximum diameter shall not be more than 2-1/4 inches (57.1 millimeters). The department may grade potatoes that do not meet the maximum and minimum size specifications as Minnesota yellow tag certified seed potatoes if the buyer agrees to accept potatoes of alternate size specifications from the grower and these specifications are listed on the tag or bulk inspection certificate issued by the department.

C.

Lot tolerances. In order to allow for variations incident to proper grading and handling, the following tolerances, by weight, are provided:

(1)

for defects:

(a)

20 percent for potatoes seriously damaged by hollow heart, unless labeled "hollow heart exempt" on the tag or certificate;

(b)

five percent for potatoes seriously damaged by internal discoloration (other than hollow heart);

(c)

ten percent for potatoes seriously damaged by soil or other foreign matter;

(d)

ten percent for potatoes seriously damaged by wireworm;

(e)

20 percent for potatoes that fail to meet the remaining requirements of the grade with not more than six percent serious damage provided that included in that amount not more than the following percentages are allowed for the following defects:

i.

soft rot, frozen, or wet breakdown, 0.5 percent;

ii.

damaged by surface, powdery, or pitted scab, 5.0 percent;

iii.

damaged by dry rot, 2.0 percent, of which not more than 1.0 percent is late blight tuber rot;

iv.

bacterial ring rot, 0.0 percent; and

v.

late blight tuber rot, 1.0 percent; and

(f)

the following do not affect seed quality and must not be scored against the grade:

i.

brown discoloration following skinning;

ii.

dried stems;

iii.

flattened or depressed areas with or without underlying flesh discoloration;

iv.

greening;

v.

sunburn;

vi.

skin checks;

vii.

silver scurf; and

viii.

sprouts; and

(2)

for offsize:

(a)

five percent for potatoes that fail to meet the required or specified minimum size; and

(b)

ten percent for potatoes that fail to meet the required maximum size.

D.

Shape. The potatoes must be fairly well shaped, with an exception for long varieties when specified as "except for shape." In that case the tubers may be misshapen.

Subp. 4.

Minnesota white tag certified seed potato grade.

Minnesota white tag certified seed potato grade consists of certified seed potatoes that are graded according to agreement between the seller and the purchaser as to size and defects, except that not more than one-half percent of soft rot, frozen, or wet breakdown and two percent dry rot, of which not more than one percent late blight tuber rot is allowed.

Subp. 5.

Application of tolerance.

The contents of individual containers, other than bulk conveyances, in the lot are subject to the following limitations provided that the averages for the entire lot are within the tolerances specified for the grade. An individual container in any lot may contain not more than double the tolerance specified except for sprouts and except that at least one defective specimen, other than bacterial ring rot, and one offsize specimen may be permitted in any container.

Subp. 6.

Condition after transit.

Deterioration developing in transit shall be considered as affecting condition and not grade.

Subp. 7.

Definitions.

For the purpose of this part, the terms in items A to J have the meanings given them unless the context clearly indicates otherwise.

A.

"Mature" means that the outer skin (epidermis) does not loosen or "feather" readily during the ordinary methods of handling.

B.

"Well-shaped" means the normal shape for the variety.

C.

"Fairly well-shaped" means that the individual potato is not materially pointed, dumbbell-shaped, or otherwise ill-formed.

D.

"Fairly clean" means that the individual potato is reasonably free from dirt, staining, or other foreign matter.

E.

"Slightly dirty" means that the appearance of the individual potato is not materially affected by dirt, staining, or other foreign matter.

F.

"Diameter" means the greatest dimension at right angles to the longitudinal axis. The long axis shall be used without regard to the position of the stem (stolon).

G.

"Soft rot or wet breakdown" means any soft, mushy, or leaky condition of the tissues.

H.

"Dry rot" means decaying tissue that is dry.

I.

"Damage" means any defect or combination of defects which materially affects the appearance of the individual potato or which cannot be removed without a loss of more than five percent of the total weight of the potato including the peel covering the defective area. Any one of the following defects or any combination of defects, the seriousness of which exceeds the maximum allowed for any one defect, shall be considered as damage:

(1)

russet scab when it materially detracts from the appearance of the individual potato;

(2)

second growth or growth cracks which have developed to such an extent as to materially affect the appearance of the individual potato;

(3)

air cracks when removal causes a loss of more than five percent of the total weight of the potato;

(4)

shriveling when the potato is more than moderately shriveled, spongy, or flabby;

(5)

sprouting when the individual potato has sprouts over one inch in length;

(6)

surface, powdery, or pitted scab, individually or in combination, which covers an area of more than five percent of the surface of the potato in the aggregate, or causes a loss of more than five percent of the total weight of the potato including peel covering defective area;

(7)

soil if the individual potato has more than 50 percent of its surface affected by lightly caked soil which is scattered, or more than 15 percent of its surface badly caked with soil.

J.

"Serious damage" means any defect or combination of defects which seriously affects the appearance of the individual potato or which cannot be removed without a loss of more than ten percent of the total weight of the potato including the peel covering the defective area. Any one of the following defects or any combination of defects, the seriousness of which exceeds the maximum allowed for any one defect shall be considered as serious damage:

(1)

russet scab when it seriously detracts from the appearance of the potato;

(2)

dirt when the appearance of the individual potato is seriously affected by caked or smeared dirt or other foreign matter;

(3)

cuts when both ends are clipped or when more than an estimated one-fourth of the potato is cut away from one end or when the remaining portion of the clipped potato weighs less than six ounces;

(4)

other cuts which seriously affect the appearance of the individual potato or which cannot be removed without a loss of more than ten percent of the total weight of the potato including peel covering defective area;

(5)

shriveling when the potato is excessively shriveled, spongy, or flabby;

(6)

surface, powdery, or pitted scab, individually or in combination, which covers an area of more than 25 percent of the surface of the potato in the aggregate, or causes a loss of more than ten percent of the total weight of the potato including peel covering defective area;

(7)

wireworm and air cracks when removal causes a loss of more than ten percent of the total weight of the potato.