SF 2741

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/24/2023 08:03am

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; transferring money to the
border-to-border broadband fund account; making policy and technical changes
to agriculture provisions; modifying fees; creating accounts; requiring reports;
providing civil penalties; appropriating money; amending Minnesota Statutes
2022, sections 17.055, subdivision 1, by adding subdivisions; 17.116, subdivision
3; 18B.01, subdivision 2b, by adding a subdivision; 18B.051; 18B.055; 18C.425,
subdivision 6; 18H.02, by adding a subdivision; 18H.03, subdivision 6; 18H.05;
18H.07, by adding subdivisions; 18H.08, subdivision 2; 18H.09; 18H.13,
subdivision 3; 18H.15; 25.39, subdivision 1; 28A.08, by adding a subdivision;
28A.082, subdivision 1; 28A.09, by adding a subdivision; 41A.12, subdivision 4;
41A.21, subdivision 6; 116J.395, subdivision 7; 223.16, by adding a subdivision;
223.17, subdivisions 7, 7a; 223.175; 223.19; 232.22, subdivision 5; Laws 2021,
First Special Session chapter 3, article 1, section 2, subdivision 5, as amended;
proposing coding for new law in Minnesota Statutes, chapters 17; 223; repealing
Minnesota Statutes 2022, sections 17.055, subdivision 2; 18H.02, subdivisions
21, 22, 23; 18H.07, subdivisions 2, 3; 35.156, subdivision 2.

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 "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
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 2024 new text end		new text begin 2025 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 85,720,000 new text end

new text begin $ new text end

new text begin 77,390,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 85,321,000 new text end	new text begin 76,991,000 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 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 29,717,000 new text end	new text begin 21,590,000 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 for the voluntary
cleanup program.
new text end

new text begin (b) $2,000,000 the first year and $2,000,000
the second year are for the soil health financial
assistance program. The commissioner may
use up to 6.5 percent of this appropriation for
costs incurred to administer the program. This
is a onetime appropriation. 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, 2025, for soil health
financial assistance grants are available until
June 30, 2027.
new text end

new text begin (c) $100,000 the first year and $100,000 the
second year are transferred from the general
fund to the pollinator research account
established under Minnesota Statutes, section
18B.051.
new text end

new text begin (d) $400,000 the first year and $400,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government and Tribal
Nations under Minnesota Statutes, section
18.90.
new text end

new text begin (e) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2023. 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 dollars 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 (f) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. 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 $20,000 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 (g) $5,000,000 the first year is for transfer to
the grain indemnity account to pay valid
claims for unpaid grain transactions. This is a
onetime appropriation and transfer.
new text end

new text begin (h) $825,000 the first year and $825,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory. The base for fiscal year 2026 and
thereafter is $825,000.
new text end

new text begin (i) $75,000 the first year and $75,000 the
second year are to support a meat processing
liaison position to assist new or existing meat
and poultry processing operations in getting
started, expanding, growing, or transitioning
into new business models.
new text end

new text begin (j) $1,862,000 the first year and $2,562,000
the second year are additional funding to
maintain the current level of service delivery
for programs under this subdivision.
new text end

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

new text begin 5,374,000 new text end

new text begin 7,005,000 new text end

new text begin (a) $150,000 the first year and $150,000 the
second year are to expand international trade
opportunities and markets for Minnesota
agricultural products.
new text end

new text begin (b) $261,000 the first year and $261,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Of this amount,
$75,000 the first year and $75,000 the second
year are for the promotion of locally raised
and processed meat, poultry, eggs, milk, and
livestock products. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract on
or before June 30, 2025, for Minnesota grown
grants in this paragraph are available until June
30, 2027.
new text end

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

new text begin (d) $250,000 the first year and $250,000 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. Of
this amount, up to $100,000 each year is for
a grant to the Minnesota FFA Foundation to
engage FFA chapters in creating education,
training, or outreach projects that respond to
community needs to mitigate stress and
promote mental health. 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 (e) $350,000 the first year and $350,000 the
second year are to award and administer grants
to facilitate the start-up or expansion of
aggregation and food hub services at farmers
markets. 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 (f) 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 (g) $534,000 the first year and $665,000 the
second year are to maintain the current level
of service delivery.
new text end

new text begin Subd. 4. new text end new text begin Agriculture, Bioenergy, and Bioproduct Advancement new text end

new text begin 31,382,000 new text end

new text begin 31,382,000 new text end

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

new text begin (b) $22,082,000 the first year and $22,082,000
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
schools and early childhood education centers
including, at the commissioner's discretion,
reimbursing schools and early childhood
education centers 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; 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,
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.
new text end

new text begin 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) $8,250,000 the first year and $8,250,000
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,
2025, and the second year appropriation is
available until June 30, 2026. 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
$10,750,000 in fiscal year 2026 and thereafter;
new text end

new text begin (3) $4,500,000 the first year and $4,500,000
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;
new text end

new text begin (4) $250,000 the first year and $250,000 the
second year are for grants to facilitate the
start-up, modernization, or expansion of
copacking facilities, commercial kitchens, and
other key supply chain infrastructure, such as
shared cold-chain capacity. Money
appropriated in this clause may also be used
to assist value-added processors with food
safety and environmental sustainability
guideline planning and third-party certification
services. The base under this clause is
$250,000 in fiscal year 2026 and thereafter;
and
new text end

new text begin (5) $500,000 the first year and $500,000 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, 2026, and may be used for other
purposes under this paragraph. The base under
this clause is $500,000 in fiscal year 2026 and
thereafter.
new text end

new text begin 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.
new text end

new text begin (c) The base for the agricultural growth,
research, and innovation program is
$24,582,000 in fiscal year 2026 and
$24,582,000 in fiscal year 2027, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.
new text end

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

new text begin 18,848,000 new text end

new text begin 17,014,000 new text end

new text begin (a) $674,000 the first year and $674,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.
new text end

new text begin (b) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin (c) $2,000 the first year is for grants to the
Minnesota State Poultry Association. 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 for 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) $47,000 the first year and $47,000 the
second year are for grants to the Northern
Crops Institute to purchase equipment. This
is a onetime appropriation.
new text end

new text begin (f) $34,000 the first year and $34,000 the
second year are for grants to the Minnesota
State Horticultural Society. This is a onetime
appropriation.
new text end

new text begin (g) $150,000 the first year and $150,000 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) $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research. The Minnesota Turf Seed Council
may subcontract with a qualified third party
for some or all of the basic or applied research.
No later than January 15, 2025, the Minnesota
Turf Seed Council must submit a report
outlining the use of the grant money and
related accomplishments to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture.
This is a onetime appropriation. 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 (i) $75,000 the first year and $75,000 the
second year are for grants to Greater Mankato
Growth, Inc., for assistance to
agriculture-related businesses to promote jobs,
innovation, and synergy development. This is
a onetime appropriation.
new text end

new text begin (j) $1,950,000 the first year and $1,950,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following:
new text end

new text begin (1) to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses;
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
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and
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.
new text end

new text begin Of the amount appropriated under this
paragraph, at least $850,000 each year must
be allocated under clause (1). Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available in the second year.
Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.
new text end

new text begin (k) $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 (l) $100,000 the first year and $100,000 the
second year are for grants to The Good Acre
for the Local Emergency Assistance Farmer
Fund (LEAFF) program to compensate
emerging farmers for crops donated to hunger
relief organizations in Minnesota. The base is
$100,000 in fiscal year 2026 and thereafter.
new text end

new text begin (m) $250,000 the first year and $250,000 the
second year are for grants to organizations that
provide technical and culturally relevant
services to emerging farmers and related
businesses.
new text end

new text begin (n) $425,000 the first year and $575,000 the
second year are to expand the Emerging
Farmer Office. The Emerging Farmer Office
must engage and support emerging farmers
regarding resources and opportunities
available throughout the Department of
Agriculture and the state. For purposes of this
paragraph, "emerging farmer" has the meaning
given in Minnesota Statutes, section 17.055,
subdivision 1. Of the amount appropriated
each year, $25,000 is for translation services.
The base is $625,000 in fiscal year 2026 and
thereafter.
new text end

new text begin (o) $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 on 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 (p) $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 (q) $1,500,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041. This
is a onetime transfer.
new text end

new text begin (r) $1,784,000 the first year and $1,200,000
the second year are to support IT
modernization efforts, including laying the
technology foundations needed for improving
customer interactions with the department for
licensing and payments.
new text end

new text begin (s) $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 counterparts in local, state,
and federal agencies and to hire 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 (t) $2,000,000 first year and $2,000,000 the
second year are transferred to the agricultural
and environmental revolving loan account
established under Minnesota Statutes, section
17.117, subdivision 5a, for low-interest loans
to farmers, rural landowners, and agricultural
businesses through the agriculture best
management practices loan program. The base
is $3,000,000 in fiscal year 2026 and
thereafter.
new text end

new text begin (u) $200,000 the first year and $200,000 the
second year are to award and administer
beginning farmer equipment and infrastructure
grants under Minnesota Statutes, section
17.055.
new text end

new text begin (v) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.
new text end

new text begin (w) 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

new text begin (x) $1,015,000 the first year and $1,417,000
the second year are to maintain the current
level of service delivery.
new text end

new text begin (y) $250,000 the second year is for a grant to
the Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with initial reports completed by January 3,
2025, and January 3, 2026, and a final report
by September 1, 2027. The reports must
include a list of equipment purchased,
including the cost of each item. The base for
this appropriation is $250,000 in fiscal year
2026 and $0 in fiscal year 2027.
new text end

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

new text begin $ new text end

new text begin 6,780,000 new text end

new text begin $ new text end

new text begin 6,946,000 new text end

new text begin (a) $173,000 the first year and $173,000 the
second year are to cover increased costs
associated with importing companion animals
from parts of the world with a high prevalence
of animal diseases.
new text end

new text begin (b) $560,000 the first year and $560,000 the
second year are for agricultural emergency
preparedness and response.
new text end

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

new text begin $ new text end

new text begin 4,543,000 new text end

new text begin $ new text end

new text begin 4,243,000 new text end

new text begin $300,000 the first year is for equipment
upgrades, equipment replacement, installation
expenses, and laboratory infrastructure at the
Agricultural Utilization Research Institute's
laboratories in Crookston, Marshall, and
Waseca.
new text end

Sec. 5.

Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 5, as
amended by Laws 2022, chapter 95, article 1, section 1, subdivision 5, is amended to read:

Subd. 5. Administration and Financial Assistance

11,477,000

13,429,000

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

(b) $387,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $100,000 the first year and
$50,000 the second year are for a pilot
program creating farmland access teams to
provide technical assistance to potential
beginning farmers. The farmland access teams
must assist existing farmers and beginning
farmers on transitioning farm ownership and
operation. Services provided by teams may
include but are not limited to providing
mediation assistance, designing contracts,
financial planning, tax preparation, estate
planning, and housing assistance. Of this
amount for farm transitions, up to $50,000 the
first year may be used to upgrade the
Minnesota FarmLink web application that
connects farmers looking for land with farmers
looking to transition their land.

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

(d) $238,000 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. The base for this
appropriation is $260,000 in fiscal year 2024
and later.

(e) $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
six Feeding America food banks for the
following:

(1) to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses;

(2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and

(3) to purchase and distribute protein products,
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.

Of the amount appropriated under this
paragraph, at least $600,000 each year must
be allocated under clause (1). Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available in the second year.
Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.

(f) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

(g) $1,437,000 the first year and $1,437,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117. The base for appropriations under this
paragraph in fiscal year 2024 and thereafter
is $1,425,000. The commissioner must
examine how the department could use up to
one-third of the amount transferred to the
agricultural and environmental revolving loan
account under this paragraph to award grants
to rural landowners to replace septic systems
that inadequately protect groundwater. No
later than February 1, 2022, the commissioner
must report to the legislative committees with
jurisdiction over agriculture finance and
environment finance on the results of the
examination required under this paragraph.
The commissioner's report may include other
funding sources for septic system replacement
that are available to rural landowners.

(h) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development. These are
onetime appropriations.

(i) $150,000 the first year is to provide grants
to Central Lakes College for the purposes of
designing, building, and offering credentials
in the area of meat cutting and butchery that
align with industry needs as advised by local
industry advisory councils. 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. The commissioner may only
award a grant under this paragraph if the grant
is matched by a like amount from another
funding source. The commissioner must seek
matching dollars from Minnesota State
Colleges and Universities or other entities.
The appropriation is onetime and is available
until June 30, 2024. Any money remaining on
June 30, 2024, must be transferred to the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12, and is available until June 30, 2025.
Grants may be used for costs including but
not limited to:

(1) facility renovation to accommodate meat
cutting;

(2) curriculum design and approval from the
Higher Learning Commission;

(3) program operational start-up costs;

(4) equipment required for a meat cutting
program; and

(5) meat handling start-up costs in regard to
meat access and market channel building.

No later than January 15, 2023, Central Lakes
College must submit a report outlining the use
of grant money to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture and higher education.

(j) $2,000 the first year is for grants to the
Minnesota State Poultry Association. 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 for the
second year.

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

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

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

(n) $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.

(o) $75,000 the first year and $75,000 the
second year are for grants to Greater Mankato
Growth, Inc., for assistance to
agriculture-related businesses to promote jobs,
innovation, and synergy development. These
are onetime appropriations.

(p) $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research. The Minnesota Turf Seed Council
may subcontract with a qualified third party
for some or all of the basic or applied research.
No later than January 15, 2023, the Minnesota
Turf Seed Council must submit a report
outlining the use of the grant money and
related accomplishments to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture.
These are onetime appropriations. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(q) $150,000 the first year and $150,000 the
second year are to establish an emerging
farmer office and hire a full-time emerging
farmer outreach coordinator. The emerging
farmer outreach coordinator must engage and
support emerging farmers regarding resources
and opportunities available throughout the
Department of Agriculture and the state. For
purposes of this paragraph, "emerging farmer"
has the meaning provided in Minnesota
Statutes, section 17.055, subdivision 1. Of the
amount appropriated each year, $25,000 is for
translation services for farmers and cottage
food producers.

(r) $222,000 the first year and $286,000 the
second year are to maintain the current level
of service delivery.

(s) $827,000 the second year is to award and
administer grants to:

(1) organizations to provide technical and
culturally appropriate services to emerging
farmers and related businesses;

(2) organizations to help emerging farmers
pay for up to 65 percent of premium expenses
each year up to two years under the federal
micro farm insurance program; and

(3) The Good Acre for the Local Emergency
Assistance Farmer Fund (LEAFF) program to
compensate emerging farmers for crops
donated to hunger relief organizations in
Minnesota.

This is a onetime appropriation and is
available until June 30, 2024.

(t) $750,000 the second year is to support the
IT modernization efforts, including laying the
technology foundations needed for improving
customer interactions with the department for
licensing and payments. The base for this
appropriation is $584,000 in fiscal year 2024
and $0 in fiscal year 2025.

(u) $1,500,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041. This
is a onetime transfer. This transfer is in
addition to the appropriations made in Laws
2022, chapter 47, section 2.

Notwithstanding Minnesota Statutes, section
17.041, the commissioner may use the amount
to be transferred for the purposes identified
under Laws 2022, chapter 47, section 2,
paragraph (b). This paragraph expires on
December 31, 2022.

(v) $250,000 in the second year is for a grant
to the Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with initial reports completed by January 3,
2023, and January 3, 2024, and a final report
by September 1, 2025. The reports must
include a list of equipment purchased,
including the cost of each item. The base for
this appropriation is $250,000 in fiscal year
2024 and $0 in fiscal year 2025.

(w) $141,000 the second year is for additional
funding to administer the beginning farmer
tax credit. The base for this appropriation is
$56,000 in fiscal year 2024 and later.

(x) $750,000 the second year is for a grant to
the Ag Innovation Campus to continue
construction of a soybean processing and
research facility. This is a onetime
appropriation.

The commissioner shall submit a report on the
utilization of the grants to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over agriculture policy and finance by
February 1, 2024.

(y) $50,000 is added to the base for fiscal year
2024 and $0 for fiscal year 2025 to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2025.

(z) $500,000 the second year is to award and
administer down payment assistance grants
under Minnesota Statutes, section 17.133. The
base for this appropriation is $750,000 in fiscal
year 2024 and thereafter. new text begin Any unspent funds
are available until the end of the following
fiscal year.
new text end

(aa) $350,000 the second year is to provide
grants to secondary career and technical
education programs for the purpose of offering
instruction in meat cutting and butchery. By
January 15, 2023, the commissioner must
report to the chairs and ranking minority
members of the 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,
2023, the commissioner must submit an
additional report to the chairs and ranking
minority members of the committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2023.
This is a onetime appropriation. Grants may
be used for costs, including but not limited to:

(1) equipment required for a meat cutting
program;

(2) facility renovation to accommodate meat
cutting; and

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

A grant recipient may be awarded a grant of
up to $70,000 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 system and local industry
partners.

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

AGRICULTURE STATUTORY CHANGES

Section 1.

Minnesota Statutes 2022, section 17.055, subdivision 1, is amended to read:

Subdivision 1.

Emerging farmer working group.

To advise the commissioner and
legislature regarding the development and implementation of programs and initiatives that
support emerging farmers in this state, the commissioner must periodically convene a
working group consisting, to the extent possible, of persons who are, and organizations that
represent, farmers or aspiring farmers who are women, veterans, persons with disabilities,
American Indian or Alaskan Natives, members of a community of color, young, and urban,
and any other emerging farmers as determined by the commissioner. deleted text begin No later than January
15 each year, the commissioner must update the chairs and ranking minority members of
the legislative committees and divisions with jurisdiction over agriculture regarding the
working group's activities and recommendations.
deleted text end

Sec. 2.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Emerging Farmers Office. new text end

new text begin The Emerging Farmers Office exists to support
emerging and aspiring farmers. For purposes of this paragraph, "emerging farmer" has the
meaning given in subdivision 1. At a minimum, the office must coordinate:
new text end

new text begin (1) the emerging farmer working group;
new text end

new text begin (2) the beginning farmer equipment and infrastructure grant program; and
new text end

new text begin (3) the annual distribution of money to organizations that provide culturally appropriate
services to immigrant and Black, Indigenous, and People of Color agricultural producers
and food system-related businesses.
new text end

Sec. 3.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Beginning farmer equipment and infrastructure grants. new text end

new text begin The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are emerging farmers as defined in
subdivision 1. Grant money may be used for equipment and infrastructure development.
new text end

Sec. 4.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Process. new text end

new text begin The commissioner shall develop competitive eligibility criteria and
may allocate grants on a needs basis.
new text end

Sec. 5.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Grant awards. new text end

new text begin Grant projects may continue for up to two years.
new text end

Sec. 6.

Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin No later than February 1 each year, the commissioner must submit a
report to the chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over agriculture regarding the emerging farmer working group's activities,
recommendations, and any grants awarded under this section.
new text end

Sec. 7.

Minnesota Statutes 2022, section 17.116, subdivision 3, is amended to read:

Subd. 3.

Awarding of grants.

(a) Applications for grants must be made to the
commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a technical review
panel appointed by the commissioner. The technical review panel shall consist of a soil
scientist, an agronomist, a representative from a postsecondary educational institution, an
agricultural marketing specialist, two resident farmers of the state using sustainable
agriculture methods, two resident farmers of the state using organic agriculture methods,
and a chair from the department.

(c) The technical review panel shall rank applications according to the following criteria:

(1) direct or indirect energy savings or production;

(2) environmental benefit;

(3) farm profitability;

(4) the number of farms able to apply the techniques or the technology proposed;

(5) the effectiveness of the project as a demonstration;

(6) the immediate transferability of the project to farms; and

(7) the ability of the project to accomplish its goals.

(d) The commissioner shall consider the recommendations of the technical review panel
and may award grants for eligible projects. Priority must be given to applicants who are
farmers or groups of farmers.

(e) Grants for eligible projects may not exceed $25,000 unless the portion above $25,000
is matched on an equal basis by the applicant's cash deleted text begin or in-kind land use contribution. deleted text end new text begin
contribution or the value of the applicant's in-kind land use, equipment use, or personal
labor. Grant recipients who are not required to provide a match and grant recipients whose
in-kind contributions exceed the amount needed to meet matching requirements may submit
the value of the grant recipients' labor or equipment use as an expense eligible for payment
from grant money. new text end Grant funding of projects may not exceed $50,000 under this section,
but applicants may utilize other funding sources. A portion of each grant must be targeted
for public information activities of the project.

(f) A project may continue for up to three years. Multiyear projects must be reevaluated
by the technical review panel and the commissioner before second or third year funding is
approved. A project is limited to one grant for its funding.

Sec. 8.

Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin Bee kill incident. new text end

new text begin "Bee kill incident" means an acute pesticide poisoning of
a bee colony or colonies located within one-half mile of each other at a single time point.
new text end

Sec. 9.

Minnesota Statutes 2022, section 18B.01, subdivision 2b, is amended to read:

Subd. 2b.

Bee owner.

"Bee owner" means a person who owns deleted text begin an apiary deleted text end new text begin a bee colony
or colonies new text end .

Sec. 10.

Minnesota Statutes 2022, section 18B.051, is amended to read:

18B.051 POLLINATOR RESEARCH ACCOUNT.

Subdivision 1.

Account established.

A pollinator research account is established in the
agricultural fund. Money in the account, including interest, is appropriated to the Board of
Regents of the University of Minnesota for pollinator research and outreach new text begin , new text end including deleted text begin , deleted text end but
not limited to deleted text begin , science-based best practices and the identification and establishment of habitat
beneficial to pollinators. deleted text end new text begin :
new text end

new text begin (1) the identification and establishment of habitat beneficial to pollinators;
new text end

new text begin (2) the development and promotion of science-based best management practices;
new text end

new text begin (3) the development and promotion of practices that can reduce the effects of pesticides
on pollinators;
new text end

new text begin (4) the effects of seed treatments on pollinators; and
new text end

new text begin (5) the development and promotion of integrated pest management, including pest
economic thresholds.
new text end

new text begin The University of Minnesota must select projects in consultation with the Minnesota
Department of Agriculture.
new text end

Subd. 2.

Expiration.

This section expires July 1, deleted text begin 2025 deleted text end new text begin 2027 new text end .

Sec. 11.

Minnesota Statutes 2022, section 18B.055, is amended to read:

18B.055 COMPENSATION FOR BEES KILLED BY PESTICIDE;
APPROPRIATION.

Subdivision 1.

Compensation required.

(a) The commissioner must compensate a
deleted text begin person deleted text end new text begin bee owner new text end for an acute pesticide poisoning resulting in the death of bees or loss of
bee colonies owned by the deleted text begin person, provided: deleted text end new text begin bee owner.
new text end

deleted text begin (1) the person who applied the pesticide cannot be determined;
deleted text end

deleted text begin (2) the person who applied the pesticide did so in a manner consistent with the pesticide
product's label or labeling; or
deleted text end

deleted text begin (3) the person who applied the pesticide did so in a manner inconsistent with the pesticide
product's label or labeling.
deleted text end

(b) Except as provided in this section, the bee owner is entitled to the fair market value
of the dead bees and bee colonies losses as determined by the commissioner upon
recommendation by academic experts and bee keepers. deleted text begin In any fiscal year, deleted text end A bee owner must
not be compensated for a claim that is less than $100 or compensated more than deleted text begin $20,000
for all eligible claims. deleted text end new text begin $10,000 for a bee kill incident. A bee owner may only make one
claim for a single bee kill incident.
new text end

new text begin (c) A bee owner must not be compensated more than $20,000 in a fiscal year for bee
kill incidents.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end To be eligible for compensation under this section, the bee owner new text begin and the affected
apiary new text end must be registered new text begin prior to the bee kill incident new text end with a commonly utilized pesticide
registry program, as designated by the commissioner.

deleted text begin Subd. 2. deleted text end

deleted text begin Applicator responsible. deleted text end

deleted text begin In the event a person applies a pesticide in a manner
inconsistent with the pesticide product's label or labeling requirements as approved by the
commissioner and is determined to have caused the acute pesticide poisoning of bees,
resulting in death or loss of a bee colony kept for commercial purposes, then the person so
identified must bear the responsibility of restitution for the value of the bees to the owner.
In these cases the commissioner must not provide compensation as provided in this section.
deleted text end

Subd. 3.

Claim form.

new text begin Within three months of the commissioner making a determination
of whether the death of bees or loss of bee colonies was caused by acute pesticide poisoning,
new text end the bee owner must file a claim on forms provided by the commissioner and available on
the Department of Agriculture's website.

Subd. 4.

Determination.

The commissioner must determine whether the death of the
bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the pesticide
applicator can be determined, and whether the pesticide applicator applied the pesticide
product in a manner consistent with the pesticide product's label or labeling.

Subd. 5.

Payments; denial of compensation.

deleted text begin (a) If the commissioner determines the
bee death or loss of bee colony was caused by an acute pesticide poisoning and either the
pesticide applicator cannot be determined or the pesticide applicator applied the pesticide
product in a manner consistent with the pesticide product's label or labeling, the commissioner
may award compensation from the pesticide regulatory account. If the pesticide applicator
can be determined and the applicator applied the pesticide product in a manner inconsistent
with the product's label or labeling, the commissioner may collect a penalty from the pesticide
applicator sufficient to compensate the bee owner for the fair market value of the dead bees
and bee colonies losses, and must award the money to the bee owner.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end If the commissioner denies compensation claimed by a bee owner under this
section, the commissioner must issue a written decision based upon the available evidence.
The decision must include specification of the facts upon which the decision is based and
the conclusions on the material issues of the claim. The commissioner must mail a copy of
the decision to the bee owner.

deleted text begin (c) deleted text end new text begin (b) new text end A decision to deny compensation claimed under this section is not subject to the
contested case review procedures of chapter 14, but may be reviewed upon a trial de novo
in a court in the county where the loss occurred. The decision of the court may be appealed
as in other civil cases. Review in court may be obtained by filing a petition for review with
the administrator of the court within 60 days following receipt of a decision under this
section. Upon the filing of a petition, the administrator must mail a copy to the commissioner
and set a time for hearing within 90 days of the filing.

Subd. 6.

Deduction from payment.

The commissioner must reduce payments made
under this section by any compensation received by the bee owner for dead bees and bee
colonies losses as proceeds from an insurance policy or from another source.

new text begin Subd. 6a. new text end

new text begin Enhanced penalty factor. new text end

new text begin If the commissioner determines that a bee death
or loss of bee colony was caused by acute pesticide poisoning, is able to determine the
pesticide applicator that was responsible, and determines that the applicator applied the
pesticide in a manner inconsistent with the product's label or labeling, the commissioner
may add the amount that the bee owner received from the bee owner's claim to any penalty
amount assessed by the commissioner under any penalty actions against the pesticide
applicator under section 18D.315 or 18D.325.
new text end

Subd. 7.

Appropriation.

The amount necessary to pay claims under this section, not to
exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory account in
section 18B.05.

Sec. 12.

Minnesota Statutes 2022, section 18C.425, subdivision 6, is amended to read:

Subd. 6.

Payment of inspection fee.

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

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

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee of
deleted text begin 39 deleted text end new text begin 64 new text end cents per ton, and until June 30, 2024, an additional 40 cents per ton, of fertilizer, soil
amendment, and plant amendment sold or distributed in this state, with a minimum of $10
on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. Products sold or distributed to manufacturers or
exchanged between them are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

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

Sec. 13.

Minnesota Statutes 2022, section 18H.02, is amended by adding a subdivision to
read:

new text begin Subd. 15a. new text end

new text begin Live plant dealer. new text end

new text begin "Live plant dealer" means an entity who:
new text end

new text begin (1) raises, grows, or propagates nursery stock for sale, outdoors or indoors;
new text end

new text begin (2) acquires and further distributes nursery stock, including through landscaping or
distribution with a tree spade; or
new text end

new text begin (3) operates a business in Minnesota selling nursery stock with or without taking
ownership or handling the nursery stock.
new text end

Sec. 14.

Minnesota Statutes 2022, section 18H.03, subdivision 6, is amended to read:

Subd. 6.

Dissemination of information.

The commissioner may disseminate information
among deleted text begin growers deleted text end new text begin live plant dealers new text end relative to treatment of nursery stock in both prevention
and elimination of attack by plant pests and diseases.

Sec. 15.

Minnesota Statutes 2022, section 18H.05, is amended to read:

18H.05 NURSERY CERTIFICATE REQUIREMENTS.

(a) No person may offer for sale or distribute certified nursery stock as a deleted text begin nursery stock
grower or deleted text end new text begin live plant new text end dealer without first obtaining the appropriate nursery stock certificate
from the commissioner. The commissioner may not issue a certificate to a person who does
not sell certified nursery stock. Certificates are issued solely for these purposes and may
not be used for other purposes.

(b) A certificate issued by the commissioner expires on December 31 of the year it is
issued.

(c) A person required to be certified by this section must apply for a certificate or for
renewal on a form furnished by the commissioner which must contain:

(1) the name and address of the applicant, the number of locations to be operated by the
applicant and their addresses, and the assumed business name of the applicant;

(2) if other than an individual, a statement whether a person is a partnership, corporation,
or other organization;

(3) the type of business to be operated and, if the applicant is an agent, the principals
the applicant represents; and

(4) source or sources of purchased nursery stock.

(d) No person may:

(1) falsely claim to be a certified new text begin live plant new text end dealer deleted text begin , grower, broker, or agent deleted text end ;

(2) make willful false statements when applying for a certificate; or

(3) sell or distribute certified nursery stock to an uncertified deleted text begin nursery stock deleted text end new text begin live plant
new text end dealer who is required to be certified deleted text begin or nursery stock grower deleted text end .

(e) Each application for a certificate must be accompanied by the appropriate certificate
fee under section 18H.07.

(f) Certificates issued by the commissioner must be prominently displayed to the public
in the place of business where certified nursery stock is sold or distributed.

(g) The commissioner may refuse to issue a certificate for cause.

(h) Each deleted text begin grower or deleted text end new text begin live plant new text end dealer is entitled to one sales location under the certificate
deleted text begin of the grower or dealer deleted text end . Each additional sales location maintained by the person requires
the payment of the full certificate fee for each additional sales outlet.

deleted text begin (i) A grower who is also a dealer is certified only as a grower for that specific site.
deleted text end

deleted text begin (j) deleted text end new text begin (i) new text end A certificate is personal to the applicant and may not be transferred. A new
certificate is necessary if the business entity is changed or if the membership of a partnership
is changed, whether or not the business name is changed.

deleted text begin (k) deleted text end new text begin (j) new text end The certificate issued to a new text begin live plant new text end dealer deleted text begin or grower deleted text end applies to the particular
premises named in the certificate. However, if prior approval is obtained from the
commissioner, the place of business may be moved to the other premises or location without
an additional certificate fee.

deleted text begin (l) deleted text end new text begin (k) new text end A collector of nursery stock from the wild is required to obtain a deleted text begin dealer's deleted text end new text begin live
plant dealer new text end certificate from the commissioner and is subject to all the requirements that
apply to the inspection of nursery stock. All collected nursery stock must be labeled as
"collected from the wild."

Sec. 16.

Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin New live plant dealer certificate. new text end

new text begin An entity that was not distributing certified
nursery stock for the past two full calendar years is considered a new applicant for the basis
of fee determination. A new live plant dealer must pay the following fees:
new text end

new text begin (1) $50 fee for a live plant dealer certificate that allows for one retail sales location. A
$50 certificate is required for each additional retail sales location; and
new text end

new text begin (2) a live plant dealer growing nursery stock requires an inspection for certification of
that nursery stock prior to sale of the nursery stock and must be assessed an additional
charge of $100 plus $10 per acre up to 200 acres. Acreage to be certified should be rounded
to the nearest one acre. For the basis of fee determination, "growing nursery stock" means
the purchase of seeds, seedlings, or small plants and the cultivation of the plants in fields
or containers in Minnesota for eventual sale, including cutting, splitting, and propagating
plants.
new text end

Sec. 17.

Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Live plant dealer renewal certificate. new text end

new text begin (a) A renewal certificate is for a live
plant dealer that has had a certificate in at least one of the past two full calendar years. A
live plant dealer must pay an annual fee based on the following criteria:
new text end

new text begin (1) a $50 fee for a live plant dealer certificate that allows for one retail sales location.
A $50 certificate is required for each additional retail sales location;
new text end

new text begin (2) a fee of gross annual purchases of certified nursery stock as noted in the table below
with the intent to resell in the same year. These are plants that are watered and maintained
only for the purposes of keeping the plants alive. Gross annual purchases are calculated for
nursery stock purchases from January 1 through December 31 of the most recent certificate
year according to the following table;
new text end

new text begin Purchases new text end		new text begin Fee new text end
new text begin $0 new text end	new text begin to $3,000 new text end	new text begin $0 new text end
new text begin $3,001 new text end	new text begin to $10,000 new text end	new text begin $50 new text end
new text begin $10,001 new text end	new text begin to $20,000 new text end	new text begin $100 new text end
new text begin $20,001 new text end	new text begin to $50,000 new text end	new text begin $225 new text end
new text begin $50,001 new text end	new text begin to $100,000 new text end	new text begin $425 new text end
new text begin $100,001 new text end	new text begin to $150,000 new text end	new text begin $600 new text end
new text begin $150,001 new text end	new text begin to $200,000 new text end	new text begin $750 new text end
new text begin $200,001 new text end	new text begin to $300,000 new text end	new text begin $975 new text end
new text begin $300,001 new text end	new text begin to $400,000 new text end	new text begin $1,200 new text end
new text begin $400,001 new text end	new text begin to $500,000 new text end	new text begin $1,250 new text end
new text begin $500,001 new text end	new text begin to $600,000 new text end	new text begin $1,350 new text end
new text begin $600,001 new text end	new text begin to $700,000 new text end	new text begin $1,400 new text end
new text begin $700,001 new text end	new text begin to $800,000 new text end	new text begin $1,500 new text end
new text begin $800,001 new text end	new text begin to $900,000 new text end	new text begin $1,600 new text end
new text begin $900,001 new text end	new text begin to $1,000,000 new text end	new text begin $1,700 new text end
new text begin $1,000,001 new text end	new text begin to $2,000,000 new text end	new text begin $1,800 new text end
new text begin $2,000,001 new text end	new text begin to $3,000,000 new text end	new text begin $1,900 new text end
new text begin $3,000,001 or more new text end		new text begin .0005 x annual purchases; and new text end

new text begin (3) a live plant dealer growing nursery stock requires an inspection for certification of
that nursery stock prior to sale and must be assessed an additional charge of $100 plus $10
per acre up to 200 acres. Acreage to be certified should be rounded to the nearest one acre.
For the basis of fee determination, "growing nursery stock" is the purchase of seeds,
seedlings, or small plants and the cultivation of plants in fields or containers in Minnesota
for eventual sale, including cutting, splitting, and propagating plants.
new text end

new text begin (b) In addition to the fees in paragraph (a), a penalty of 25 percent of the fee due may
be charged or a portion thereof, if the fee is delinquent or any application for renewal is not
postmarked or electronically date stamped by December 31 of the current year.
new text end

new text begin (c) A live plant dealer operating without a valid certificate must not offer nursery stock
for sale or sell nursery stock until a certificate is issued to the live plant dealer by the
commissioner and the live plant dealer has paid any applicable fees and penalties in full.
new text end

Sec. 18.

Minnesota Statutes 2022, section 18H.08, subdivision 2, is amended to read:

Subd. 2.

Virus disease-free certification.

The commissioner may provide special
services such as virus disease-free certification and other similar programs. Participation
by deleted text begin nursery stock growers deleted text end new text begin live plant dealers new text end is voluntary. Plants offered for sale as certified
virus-free must be grown according to certain procedures in a manner defined by the
commissioner for the purpose of eliminating viruses and other injurious disease or insect
pests. The commissioner shall collect reasonable fees from participating deleted text begin nursery stock
growers deleted text end new text begin live plant dealers new text end for services and materials that are necessary to conduct this type
of work.

Sec. 19.

Minnesota Statutes 2022, section 18H.09, is amended to read:

18H.09 NURSERY STOCK CERTIFICATION REQUIREMENTS.

(a) All nursery stock growing at sites identified by deleted text begin nursery stock dealers or nursery stock
growers deleted text end new text begin live plant dealers new text end and submitted for inspection must be inspected by the
commissioner within the previous 12 months prior to sale and found apparently free from
quarantine and regulated nonquarantine pests as well as significantly dangerous or potentially
damaging plant pests. The commissioner may waive a site inspection under the following
conditions:

(1) the nursery stock is not going to be sold within 12 months;

(2) the nursery stock will not be moved out of Minnesota; and

(3) the nursery site or stock is not subject to certification requirements associated with
a state or federally regulated or quarantined plant pest.

All nursery stock originating from out of state and offered for sale in Minnesota must
have been inspected by the appropriate state or federal agency during the previous 12 months
and found free from quarantine and regulated nonquarantine pests as well as significantly
dangerous or potentially damaging plant pests. A nursery stock certificate is valid from
January 1 to December 31.

(b) Nursery stock must be accessible to the commissioner for inspection during regular
business hours. Weeds or other growth that hinder a proper inspection are grounds to suspend
or withhold a certificate or require a reinspection.

(c) Inspection reports issued to deleted text begin growers deleted text end new text begin live plant dealers new text end must contain a list of the plant
pests found at the time of inspection. Withdrawal-from-distribution orders are considered
part of the inspection reports. A withdrawal-from-distribution order must contain a list of
plants withdrawn from distribution and the location of the plants.

(d) The commissioner may post signs to delineate sections withdrawn from distribution.
These signs must remain in place until the commissioner removes them or grants written
permission to the grower to remove the signs.

(e) Inspection reports issued to new text begin live plant new text end dealers must outline the violations involved
and corrective actions to be taken including withdrawal-from-distribution orders which
would specify nursery stock that could not be distributed from a certain area.

(f) Optional inspections of plants may be conducted by the commissioner upon request
by any persons desiring an inspection. A fee as provided in section 18H.07 must be charged
for such an inspection.

Sec. 20.

Minnesota Statutes 2022, section 18H.13, subdivision 3, is amended to read:

Subd. 3.

Reciprocal agreements.

The commissioner may cooperate with and enter into
reciprocal agreements with other states regarding licensing and movement of nursery stock.
Reciprocal agreements with other states do not prevent the commissioner from prohibiting
the distribution in Minnesota of any nursery stock that fails to meet minimum criteria for
nursery stock of Minnesota certified deleted text begin growers, dealers, or both deleted text end new text begin live plant dealers new text end . An official
directory of certified nurseries and related nursery industry businesses from other states is
acceptable in lieu of individual nursery certificates.

Sec. 21.

Minnesota Statutes 2022, section 18H.15, is amended to read:

18H.15 VIOLATIONS.

(a) A person who offers to distribute nursery stock that is uncertified, uninspected, or
falsely labeled or advertised possesses an illegal regulated commodity that is considered
infested or infected with harmful plant pests and subject to regulatory action and control.
If the commissioner determines that the provisions of this section have been violated, the
commissioner may order the destruction of all of the plants unless the person:

(1) provides proper phytosanitary preclearance, phytosanitary certification, or nursery
stock certification;

(2) agrees to have the plants, plant materials, or nursery stock returned to the consignor;
and

(3) provides proper documentation, certification, or compliance to support advertising
claims.

(b) The plant owner is liable for all costs associated with a withdrawal-from-distribution
order or the quarantine, treatment, or destruction of plants. The commissioner is not liable
for actual or incidental costs incurred by a person due to the commissioner's actions. The
commissioner must be reimbursed by the owner of the plants for the actual expenses incurred
in carrying out a withdrawal-from-distribution order or the quarantine, treatment, or
destruction of any plants.

(c) It is unlawful for a person to:

(1) misrepresent, falsify, or knowingly distribute, sell, advertise, or display damaged,
mislabeled, misrepresented, infested, or infected nursery stock;

(2) fail to obtain a nursery certificate as required by the commissioner;

(3) fail to renew a nursery certificate, but continue business operations;

(4) fail to display a nursery certificate;

(5) misrepresent or falsify a nursery certificate;

(6) refuse to submit to a nursery inspection;

(7) fail to provide the cooperation necessary to conduct a successful nursery inspection;

(8) offer for sale uncertified plants, plant materials, or nursery stock;

(9) possess an illegal regulated commodity;

(10) violate or disobey a commissioner's order;

(11) violate a quarantine issued by the commissioner;

(12) fail to obtain phytosanitary certification for plant material or nursery stock brought
into Minnesota;

(13) deface, mutilate, or destroy a nursery stock certificate, phytosanitary certificate, or
phytosanitary preclearance certificate, or other commissioner mark, permit, or certificate;

(14) fail to notify the commissioner of an uncertified shipment of plants, plant materials,
or nursery stock;

(15) transport uncertified plants, plant materials, or nursery stock in Minnesota; or

(16) sell nursery stock to an uncertified deleted text begin nursery stock deleted text end new text begin live plant new text end dealer who is required
to be certified.

Sec. 22.

Minnesota Statutes 2022, section 25.39, subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of 16 cents per ton must
be paid to the commissioner on commercial feeds distributed in this state by the person who
first distributes the commercial feed, except that:

(1) no fee need be paid on any feed ingredient in a customer formula feed that has been
directly furnished by the customer; or

(2) no fee need be paid on a first distribution if made to a qualified buyer who, with
approval from the commissioner, is responsible for the fee. Such license-specific
tonnage-fee-exemption permits shall be issued on a calendar year basis to commercial feed
licensees who distribute feed or feed ingredients outside the state, and who submit a $100
nonrefundable application fee and comply with rules adopted by the commissioner relative
to record keeping, tonnage of commercial feed distributed in Minnesota, total of all
commercial feed tonnage distributed, and all other information which the commissioner
may require so as to ensure that proper inspection fee payment has been made.

(b) In the case of pet food or specialty pet food distributed in the state only in packages
of ten pounds or less, a distributor must register each product deleted text begin and submit a current label for
each product deleted text end annually on forms provided by the commissioner, accompanied by an annual
application fee of $100 for each product in lieu of the inspection fee new text begin , and within five business
days, submit a current label for each product upon the request of the commissioner new text end . This
annual fee must be received by the commissioner on or before June 30 or postmarked on
or before June 30. The inspection fee required by paragraph (a) applies to pet food or
specialty pet food distributed in packages exceeding ten pounds.

(c) The minimum inspection fee is $75 per annual reporting period.

Sec. 23.

Minnesota Statutes 2022, section 28A.08, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Food handler license account; appropriation. new text end

new text begin A food handler license account
is established in the agricultural fund. Fees paid under subdivision 3 must be deposited in
this account. Money in the account, including interest, is appropriated to the commissioner
for expenses relating to licensing and inspecting food handlers under chapters 28 to 34A or
rules adopted under one of those chapters.
new text end

Sec. 24.

Minnesota Statutes 2022, section 28A.082, subdivision 1, is amended to read:

Subdivision 1.

Fees; application.

new text begin (a) new text end The fees for review of food handler facility floor
plans under the Minnesota Food Code are based upon the square footage of the structure
being newly constructed, remodeled, or converted. The fees for the review shall be:

	square footage		review fee
	0 - deleted text begin 4,999 deleted text end new text begin 999 new text end .	$	200.00
	new text begin 1,000 - 4,999 new text end .	new text begin $ new text end	new text begin 400.00 new text end
	5,000 - 24,999 .	$	deleted text begin 275.00 deleted text end new text begin 800.00 new text end
	25,000 plus .	$	deleted text begin 425.00 deleted text end new text begin 1,000.00 new text end

new text begin (b) new text end The applicant must submit the required fee, review application, plans, equipment
specifications, materials lists, and other required information on forms supplied by the
department at least 30 days prior to commencement of construction, remodeling, or
conversion. The commissioner may waive this fee after determining that the facility's
principal mode of business is not the sale of food and that the facility sells only prepackaged
foods.

new text begin (c) The fee for a remodel of a licensed food establishment by the license holder is based
on the total square footage in paragraph (a) of the remodeled food preparation, service,
display, and storage areas only. This paragraph does not apply to a retail food handler who
is applying for a new license that includes the conversion of an existing building or structure
that was previously licensed as a food establishment.
new text end

Sec. 25.

Minnesota Statutes 2022, section 28A.09, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Vending machine inspection account; appropriation. new text end

new text begin A vending machine
inspection account is established in the agricultural fund. Fees paid under subdivision 1
must be deposited in this account. Money in the account, including interest, is appropriated
to the commissioner for expenses relating to identifying and inspecting food vending
machines under chapters 28 to 34A or rules adopted under one of those chapters.
new text end

Sec. 26.

Minnesota Statutes 2022, section 41A.12, subdivision 4, is amended to read:

Subd. 4.

Sunset.

This section expires on June 30, deleted text begin 2025 deleted text end new text begin 2035 new text end .

Sec. 27.

Minnesota Statutes 2022, section 41A.21, subdivision 6, is amended to read:

Subd. 6.

Appropriation.

(a) In fiscal year 2025, a sum sufficient to make the payments
required by this section, not to exceed $1,500,000, is appropriated from the general fund to
the commissioner. This is a onetime appropriation. new text begin The commissioner may use up to 6.5
percent of this appropriation for costs incurred to administer the program.
new text end

(b) From fiscal year 2026 through fiscal year 2034, a sum sufficient to make the payments
required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated
from the general fund to the commissioner. new text begin The commissioner may use up to 6.5 percent
of this appropriation for costs incurred to administer the program.
new text end

Sec. 28.

Minnesota Statutes 2022, section 223.16, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Failure. new text end

new text begin "Failure" means a determination by the commissioner that a grain
buyer or grain warehouse has failed to pay for delivered grain, breached a contract, breached
more than one contract, or failed to redeliver stored grain to a producer.
new text end

Sec. 29.

Minnesota Statutes 2022, section 223.17, subdivision 7, is amended to read:

Subd. 7.

Action on a deleted text begin bond deleted text end new text begin breach of contract new text end .

A producer claiming to be damaged by
a breach of a contract for the purchase of grain by a deleted text begin licensed deleted text end grain buyer may file a written
claim with the commissioner. The claim must state the facts constituting the claim. deleted text begin The
claim must be filed with the commissioner within 180 days of the breach of the contract. deleted text end If
a claim is valid, the commissioner may immediately suspend the license, in which case the
licensee shall surrender the license to the commissioner. Within 15 days the licensee may
request an administrative hearing subject to chapter 14 to determine whether the license
should be revoked. If no request is made within 15 days, the commissioner shall revoke the
license.

Sec. 30.

Minnesota Statutes 2022, section 223.17, subdivision 7a, is amended to read:

Subd. 7a.

Bond requirements deleted text begin ; claims deleted text end .

For entities licensed under this chapter and
chapter 232, the bond requirements and deleted text begin claims deleted text end new text begin actions new text end against the bond are governed under
section deleted text begin 232.22, subdivision 6a deleted text end new text begin 223.24, subdivision 13 new text end .

Sec. 31.

Minnesota Statutes 2022, section 223.175, is amended to read:

223.175 WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS;
FORM.

A written confirmation required under section 223.177, subdivision 2, and a written
voluntary extension of credit contract must include those items prescribed by the
commissioner by rule. A contract shall include a statement of the legal and financial
responsibilities of grain buyers and sellers established in this chapter. A contract shall also
include the following statement in not less than ten point, all capital type, framed in a box
with space provided for the seller's signature: "THIS CONTRACT CONSTITUTES A
VOLUNTARY EXTENSION OF CREDIT. THIS CONTRACT deleted text begin IS NOT COVERED BY
ANY GRAIN BUYER'S BOND deleted text end new text begin MAY NOT BE COVERED COMPLETELY BY THE
GRAIN INDEMNITY ACCOUNT new text end ." If a written contract is provided at the time the grain
is delivered to the grain buyer, the seller shall sign the contract in the space provided beneath
the statement. A transaction that does not meet the provisions of a voluntary extension of
credit, including the issuance and signing of a voluntary extension of credit contract, is a
cash sale.

Sec. 32.

Minnesota Statutes 2022, section 223.19, is amended to read:

223.19 RULES.

The commissioner may make rules pursuant to chapter 14 to carry out the provisions of
sections 223.15 to deleted text begin 223.23 deleted text end new text begin 223.24 new text end .

Sec. 33.

new text begin [223.24] GRAIN INDEMNITY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The grain indemnity account is established under the
direction and control of the commissioner of agriculture. The grain indemnity account shall
consist of grain indemnity premiums, money from any other source, and interest.
new text end

new text begin Subd. 2. new text end

new text begin Account; appropriation. new text end

new text begin (a) A grain indemnity account is established in the
agricultural fund. Money in the grain indemnity account, including interest, is appropriated
to the commissioner to pay valid claims and to administer this section.
new text end

new text begin (b) The commissioner shall direct payments from the grain indemnity account only for
the following purposes:
new text end

new text begin (1) the payment of valid claims;
new text end

new text begin (2) the payment of grain indemnity premium refunds;
new text end

new text begin (3) the payment of administrative expenses under paragraph (c);
new text end

new text begin (4) the payment of legal fees and legal expenses under subdivision 7; or
new text end

new text begin (5) the payment of a trustee appointed under subdivision 6.
new text end

new text begin (c) The commissioner shall allocate money from the grain indemnity account to a separate
administrative expenses account to pay or reimburse the agency for grain indemnity account
expenses. Administrative expenses under this paragraph include the actual cost of processing
payments and refunds, enforcement, record keeping, ordinary management and investment
fees connected with the operation of the grain indemnity account, and legal expenses.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A producer is eligible to receive a grain indemnity payment from
the commissioner if the producer sold grain to a grain buyer as defined in this chapter or
stored grain with a public grain warehouse operator under chapter 232 and the producer is
damaged by the grain buyer's or public grain warehouse operator's failure to pay for or
redeliver grain.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) A producer asserting eligibility under subdivision 3 must file
a completed claim with the commissioner. The producer must state the facts constituting
the claim and all other information required by the commissioner.
new text end

new text begin (b) Upon receiving a claim, the commissioner must promptly determine the validity of
the claim and notify the claimant of the commissioner's determination.
new text end

new text begin (c) An aggrieved party may appeal the commissioner's determination by requesting,
within 15 days, that the commissioner initiate a contested case proceeding under chapter
14.
new text end

new text begin Subd. 5. new text end

new text begin Payment limitation. new text end

new text begin (a) For each failure, the commissioner must pay the eligible
producer:
new text end

new text begin (1) the amount equal to the value of the grain sold on cash sale, grain assigned to
warehouse receipt, or grain assigned to open storage less than 180 days from the deposit;
new text end

new text begin (2) the total amount owed to the seller for a deferred or delayed payment contract for
which a price has been established when the contract originated within 120 days of the
breach of contract;
new text end

new text begin (3) the lesser of $750,000 or 75 percent of the amount owed to the seller for a voluntary
extension of credit contract when the contract originated within 180 days of the breach of
contract;
new text end

new text begin (4) the lesser of $500,000 or 50 percent for an open storage assignment or a voluntary
extension of credit contract when the open storage assignment or contract originated between
181 days and 18 months from the failure; or
new text end

new text begin (5) the lesser of $250,000 or 25 percent for an open storage assignment or a voluntary
extension of credit contract when the open storage assignment or contract originated between
19 months and 36 months from the failure.
new text end

new text begin (b) Claims filed more than 36 months from the failure are not eligible for payment.
new text end

new text begin (c) For the purposes of this subdivision, multiple breaches of contract with a single entity
constitute one failure.
new text end

new text begin (d) If a grain buyer holds both a Minnesota grain buyer license, as defined in chapter
223, and a license with the United States Department of Agriculture (USDA) under the
United States Warehouse Act, a seller may only file a claim with the grain indemnity account
if the seller sold grain as a cash sale or under a voluntary extension of credit contract. The
commissioner must deny any claims for stored grain from a seller that holds both a Minnesota
grain buyer license and a license with the USDA under the United States Warehouse Act.
new text end

new text begin (e) If valid claims exceed the amount of money available in the grain indemnity account,
the commissioner must pay claims to producers in the order that the claims were received.
When additional money becomes available, the commissioner must resume issuing grain
indemnity payments to each eligible producer until each producer receives the maximum
amount payable under paragraph (a).
new text end

new text begin Subd. 6. new text end

new text begin Court order. new text end

new text begin (a) The commissioner may apply to a district court for an order
appointing a trustee or receiver to manage and supervise the operations of a grain buyer or
public grain warehouse operator in default. The commissioner may participate in any
resulting court proceeding as an interested party.
new text end

new text begin (b) The commissioner may recover the cost of the appointed trustee using money
appropriated under subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Debt obligation; subrogated claim. new text end

new text begin (a) Money paid by the commissioner to
satisfy a valid claim constitutes a debt obligation of the grain buyer or public grain warehouse
operator in default. The commissioner may take action against the grain buyer or public
grain warehouse operator to recover the amount of any claim payment plus reasonable costs,
attorney fees, and interest computed at the rate provided in section 270C.40. The
commissioner must deposit any amount recovered under this subdivision in the grain
indemnity account.
new text end

new text begin (b) As a condition of payment from the commissioner, a producer must subrogate the
producer's interest in a voluntary extension of credit contract to the commissioner in an
amount equal to any claim payment or payments that the producer received under this
section.
new text end

new text begin (c) The commissioner may recover any debt to the grain indemnity account from a
member of the board or management who acted negligently or fraudulently.
new text end

new text begin Subd. 8. new text end

new text begin Grain indemnity premiums. new text end

new text begin (a) Except as provided in subdivision 10,
producers of grain must be charged a grain indemnity premium as determined and published
by the commissioner, not to exceed 0.2 percent of the price on all marketed grain that is
sold to a grain buyer as defined in chapter 223.
new text end

new text begin (b) The grain indemnity premiums required under this section are in addition to any
other fees or assessments required by law.
new text end

new text begin Subd. 9. new text end

new text begin Collection and submission of grain indemnity premiums. new text end

new text begin (a) Each producer
must pay to the commissioner a grain indemnity premium of not more than 0.2 percent of
the net proceeds from all grain sold by the producer to a grain buyer purchasing grain in
Minnesota. When grain is sold to a grain buyer, the grain buyer must deduct the grain
indemnity premium from the proceeds of the sale and pay the grain indemnity premium to
the commissioner on behalf of the producer.
new text end

new text begin (b) When purchasing grain from a producer, a grain buyer must deduct the grain
indemnity premium described in paragraph (a) from the proceeds of the sale and notify the
producer of the amount of the deduction in writing. The grain buyer must forward the grain
indemnity premium to the commissioner for a deposit into the grain indemnity account on
behalf of the producer as described in this subdivision.
new text end

new text begin (c) A grain buyer must clearly indicate the grain indemnity premiums collected under
paragraph (b) in the grain buyer's books and records. A grain buyer must retain books and
records containing the grain indemnity premiums for at least three years. A grain buyer
must make the grain buyer's books and records available for inspection by the commissioner
during regular business hours. The department must take steps reasonably necessary to
verify the accuracy of the grain indemnity premiums as recorded in the grain buyer's books
and records. Any record or portion thereof seized or copied by the commissioner under this
paragraph is private or nonpublic data as provided in section 13.02, except that the
commissioner may disclose this data to aid in the law enforcement process.
new text end

new text begin (d) A grain buyer must submit grain indemnity premiums collected under paragraph (a)
to the commissioner for the purpose of financing or contributing to the financing of the
grain indemnity account by:
new text end

new text begin (1) January 31 for grain indemnity premiums collected during the months of July, August,
September, October, November, and December; and
new text end

new text begin (2) July 31 for grain indemnity premiums collected during the months of January,
February, March, April, May, and June.
new text end

new text begin Subd. 10. new text end

new text begin Amount in grain indemnity account; basis for suspension and
reinstatement of grain indemnity premium collection. new text end

new text begin (a) The grain indemnity premiums
required under subdivision 8 must be collected until the grain indemnity account contains
more than $15,000,000, as of June 30 of any given year.
new text end

new text begin (b) Except as provided in paragraph (c), after the grain indemnity account reaches
$15,000,000, the commissioner may not require the collection of additional grain indemnity
premiums until the amount in the account drops below $9,000,000. In a year when the
commissioner determines that the account is at or below $9,000,000, the commissioner may
reinstate the collection described in this section.
new text end

new text begin (c) The commissioner shall announce the intention to collect the grain indemnity
premiums described in this section by May 1 with collection to begin July 1 until the grain
indemnity account contains at least $15,000,000. The commissioner must notify the public
of the commissioner's intent to reinstate collection of additional grain indemnity premiums
through publication in the State Register and by notifying each licensee of the licensee's
obligation to collect premiums.
new text end

new text begin Subd. 11. new text end

new text begin Grain indemnity refund; opt out. new text end

new text begin (a) Subject to subdivision 9, a producer
that has paid a grain indemnity premium, either directly or collected by a licensee, may
receive a refund of that premium from the grain indemnity account by submitting a written
demand for a refund to the commissioner, delivered personally or by first-class mail within
12 months after the producer paid the grain indemnity premium.
new text end

new text begin (b) A producer must submit a demand for a refund of a grain indemnity premium under
paragraph (a) on a demand for refund form developed by the commissioner. The
commissioner must make the form available to a licensee, producer, or member of the public
upon request.
new text end

new text begin (c) If a producer is entitled to a refund of a grain indemnity premium under this section,
the commissioner must pay the refund within 90 days of receiving the demand for a refund.
If the grain indemnity account balance is insufficient to pay refunds under this subdivision
and valid claims exist, once money is deposited into the grain indemnity account, the
commissioner must issue pending refunds for grain indemnity premium payments before
issuing payments to claimants.
new text end

new text begin (d) If the commissioner announces grain indemnity premiums as required under
subdivision 10 by June 30, the commissioner must send a notice to each producer who
requested a refund of a grain indemnity premium during the previous three fiscal years. The
notice must inform the producer of the deadline for and method of submitting a demand for
a refund to the commissioner under paragraphs (a) and (b) and the method for reentering
the grain indemnity program under paragraph (e).
new text end

new text begin (e) A producer that receives a refund of a grain indemnity premium under paragraph (a)
is not entitled to participate in the grain indemnity program or to receive any payment under
this section unless the producer reenters the grain indemnity program by meeting all of the
following conditions:
new text end

new text begin (1) the producer must submit a request for reentry into the grain indemnity program to
the commissioner. The producer must submit the request on the form required by the
commissioner and must deliver the request to the commissioner;
new text end

new text begin (2) the producer's request is approved by the commissioner; and
new text end

new text begin (3) the producer must pay into the grain indemnity account all grain indemnity premiums
that were refunded to the producer and interest on the refunds as determined by the
commissioner.
new text end

new text begin (f) A producer that reenters the grain indemnity program under paragraph (e) is eligible
to be reimbursed for claims under the grain indemnity program for any breach of contract
that occurs at least 90 days after reentry.
new text end

new text begin (g) A producer is not eligible for a refund of a grain indemnity premium under this
section if the producer has received payment from the grain indemnity account for a valid
claim within the preceding 36 months.
new text end

new text begin Subd. 12. new text end

new text begin Penalties; enforcement action; costs and expenses. new text end

new text begin (a) In addition to any
other penalty or remedy provided by law, a person who knowingly or intentionally commits
any of the following is subject to civil penalties under section 18J.10:
new text end

new text begin (1) refusing or failing to collect any grain indemnity premiums as required under this
section;
new text end

new text begin (2) refusing or failing to pay to the commissioner any grain indemnity premiums collected
under this section;
new text end

new text begin (3) making a false statement, representation, or certification or knowingly failing to
make a required statement, representation, or certification in a record, report, or other
document required under this section or filed with the commissioner; or
new text end

new text begin (4) resisting, preventing, impeding, or interfering with the commissioner in the
performance of the commissioner's duties under this section.
new text end

new text begin (b) In addition to the civil penalty described in paragraph (a), the commissioner in an
enforcement action for a violation described in paragraph (a), clause (1) or (2), must order
the grain buyer to pay into the grain indemnity account any grain indemnity premiums
collected by the grain buyer that the grain buyer owes to the grain indemnity account and
may order the grain buyer to pay interest on the amount that the grain buyer owes to the
grain indemnity account.
new text end

new text begin Subd. 13. new text end

new text begin Grain bonds; new license holders. new text end

new text begin (a) Except as provided in paragraph (b),
before the commissioner issues a grain buyer or public grain warehouse operator license,
a person who has not been licensed to buy grain or operate a public grain warehouse in the
previous licensing period must file with the commissioner a grain bond in a penal sum of
$100,000. A grain bond must remain in effect for the first three years of the license.
new text end

new text begin (b) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are $1,000,000 or less.
new text end

new text begin (c) The commissioner may require a supplemental bond in an amount prescribed by the
commissioner based on the financial statements required in section 223.17, subdivision 6.
new text end

new text begin (d) A grain bond must be on a form provided by the commissioner.
new text end

new text begin (e) A grain bond required under paragraphs (a) and (c) must provide for the payment of
any loss caused by the grain buyer's failure to pay upon the owner's demand, including loss
caused by the grain buyer's failure to pay within the time required. A grain bond must be
conditioned upon the grain buyer being duly licensed. A grain bond required under paragraphs
(a) and (c) that is obtained by a public grain warehouse operator must be conditioned that
the public grain warehouse operator issuing a grain warehouse receipt is liable to the depositor
for the delivery of the kind, grade, and net quantity of grain called for by the receipt. The
grain bond must be conditioned upon the operator being duly licensed. For those entities
licensed under this chapter, the entire grain bond must be available to any claims against
the grain bond filed under this chapter.
new text end

new text begin (f) A grain bond must not be cumulative from one licensing period to the next. The
maximum liability of the grain bond must be the grain bond's face value for the licensing
period.
new text end

new text begin (g) A grain bond must be continuous until canceled. To cancel a grain bond, a surety
must provide 90 days' written notice of the grain bond's termination date to the licensee and
the commissioner.
new text end

new text begin (h) Upon the commissioner's determination that a claim is valid, the surety for any claims
against the grain bond must make payments to the grain indemnity account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 34.

Minnesota Statutes 2022, section 232.22, subdivision 5, is amended to read:

Subd. 5.

Statement of grain in storage; reports.

deleted text begin (a) All public grain warehouse operators
must by February 15 of each year file with the commissioner on a form approved by the
commissioner a report showing the annual average liability of all grain outstanding on grain
warehouse receipts, open storage, and grain stored for feed processing that occurred during
the preceding calendar year. This report shall be used for the purpose of establishing the
penal sum of the bond.
deleted text end

deleted text begin (b) Warehouse operators that are at a maximum bond and want to continue at maximum
bond do not need to file this report.
deleted text end

deleted text begin (c) It is a violation of this chapter for any public grain warehouse operator to fail to file
the report required in paragraph (a).
deleted text end

deleted text begin (d) deleted text end new text begin (a) new text end Every public grain warehouse operator shall keep in a place of safety complete
and accurate records and accounts relating to any grain warehouse operated. The records
shall reflect each commodity received and shipped daily, the balance remaining in the grain
warehouse at the close of each business day, a listing of all unissued grain warehouse receipts
in the operator's possession, a record of all grain warehouse receipts issued which remain
outstanding and a record of all grain warehouse receipts which have been returned for
cancellation. Copies of grain warehouse receipts or other documents evidencing ownership
of grain by a depositor, or other liability of the grain warehouse operator, shall be retained
as long as the liability exists but must be kept for a minimum of three years.

deleted text begin (e) deleted text end new text begin (b) new text end Every public grain warehouse operator must maintain in the grain warehouse at
all times grain of proper grade and sufficient quantity to meet delivery obligations on all
outstanding grain warehouse receipts.

Sec. 35.

new text begin [17.033] LICENSE AND PERMIT SURCHARGES.
new text end

new text begin The commissioner of agriculture may collect license and permit surcharges on all
licensing and permitting transactions conducted by the Department of Agriculture for which
a fee is charged. The surcharge applies to all initial and renewal license and permit
applications and is calculated based on the license or permit base fee. Late penalties or other
assessments are not included in the calculation of the surcharge. The fee is set at five percent
beginning August 1, 2023, with a minimum fee of $5 for each transaction. The surcharge
rate must be reviewed and set annually by the commissioner and may be assessed at a rate
of between three and eight percent of the licensing or permitting fee, with a minimum fee
of $5 for each transaction. The fees collected for this surcharge must be deposited in a
dedicated account in the agriculture fund. Money in the account, including interest, is
appropriated to the commissioner for the information technology improvement activities
needed to create electronic systems for conducting licensing and permitting transactions
and to modernize the department's inspection and customer management systems.
new text end

Sec. 36. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 17.055, subdivision 2; 18H.02, subdivisions 21, 22,
and 23; 18H.07, subdivisions 2 and 3; and 35.156, subdivision 2, new text end new text begin are repealed.
new text end

ARTICLE 3

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 "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
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 2024 new text end		new text begin 2025 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 163,350,000 new text end

new text begin $ new text end

new text begin 138,350,000 new text end

new text begin (a) $350,000 each year is for the Office of
Broadband Development.
new text end

new text begin (b) $163,000,000 the first year and
$138,000,000 the second year are transferred
from the general fund to the border-to-border
broadband fund account established in
Minnesota Statutes, section 116J.396. These
appropriations and transfers are onetime.
new text end

Sec. 3.

Minnesota Statutes 2022, section 116J.395, subdivision 7, is amended to read:

Subd. 7.

Limitation.

(a) No grant awarded under this section may fund more than 50
percent of the total cost of a project new text begin if the project does not also receive federal funding. If
the project receives federal funding, a grant awarded under this section may fund up to 75
percent of the total cost new text end .

(b) Grants awarded to a single project under this section must not exceed $5,000,000 new text begin if
the project does not also receive federal funding. If the project receives federal funding, a
grant awarded under this section must not exceed $10,000,000 new text end .