SF 3536

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/16/2018 08:41am

A bill for an act
relating to agriculture; making policy and technical changes to various agricultural
provisions; classifying agricultural research data maintained by the University of
Minnesota; amending Minnesota Statutes 2016, sections 13.643, subdivision 7;
17.494; 17.4982, by adding subdivisions; 18.83, subdivision 7; 25.33, subdivision
8; 29.26; 34A.11, subdivision 7; 41A.15, subdivision 10, by adding a subdivision;
41A.16, subdivisions 1, 2, 4; 41A.17, subdivisions 1, 2, 3; 41A.18, subdivisions
1, 3; 41B.02, subdivision 10a; 41B.047, subdivisions 1, 3; 41B.049, subdivision
5; 41B.055, subdivision 3; 41B.057, subdivision 3; 103H.275, subdivision 1;
Minnesota Statutes 2017 Supplement, sections 32D.13, by adding a subdivision;
32D.20, subdivision 2; 32D.22; 41B.0391, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 17; repealing Minnesota Statutes 2016,
section 41A.15, subdivisions 2a, 2b.

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

Section 1.

Minnesota Statutes 2016, section 13.643, subdivision 7, is amended to read:

Subd. 7.

Research, monitoring, or assessment data.

(a) Except as provided in paragraph
(b), the following data created, collected, deleted text begin and deleted text end new text begin or new text end maintained by the Department of Agriculture new text begin
or the University of Minnesota new text end during research, monitoring, or the assessment of farm
practices and related to natural resources, the environment, agricultural facilities, or
agricultural practices are classified as private or nonpublic:

(1) names, addresses, telephone numbers, and e-mail addresses of study participants or
cooperators; deleted text begin and
deleted text end

(2) location of research, study site, and global positioning system data new text begin ; and
new text end

new text begin (3) data created, collected, or maintained by the University of Minnesota for inclusion
on an agricultural new text end new text begin data analysis platform maintained and hosted by the University of
Minnesota that identify or could identify an individual or business new text end .

(b) The following data are public:

(1) location data and unique well numbers for wells and springs unless protected under
section 18B.10 or another statute or rule; and

(2) data from samples collected from a public water supply as defined in section 144.382,
subdivision 4.

(c) The Department of Agriculture new text begin or the University of Minnesota new text end may disclose data
collected under paragraph (a) if the Department of Agriculture new text begin or the University of Minnesota new text end
determines that there is a substantive threat to human health and safety or to the environment,
or to aid in the law enforcement process. The Department of Agriculture new text begin or the University
of Minnesota new text end may also disclose data with written consent of the subject of the data.

Sec. 2.

Minnesota Statutes 2016, section 17.494, is amended to read:

17.494 AQUACULTURE PERMITS; RULES.

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

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

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

Sec. 3.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20a. new text end

new text begin Saltwater aquaculture. new text end

new text begin "Saltwater aquaculture" means the commercial
propagation and rearing of saltwater aquatic life including, but not limited to, crustaceans,
primarily for consumption as human food.
new text end

Sec. 4.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20b. new text end

new text begin Saltwater aquatic farm. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:

new text begin Subd. 20c. new text end

new text begin Saltwater aquatic life. new text end

new text begin "Saltwater aquatic life" means aquatic species that
are saltwater obligates or perform optimally when raised in salinities closer to that of natural
seawater and need saltwater to survive.
new text end

Sec. 6.

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

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

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

new text begin Subd. 2. new text end

new text begin Transportation permit. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Exemptions. new text end

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

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

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

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

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

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

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

Sec. 7.

Minnesota Statutes 2016, section 18.83, subdivision 7, is amended to read:

Subd. 7.

Expenses; reimbursements.

A claim for the expense of controlling or
eradicating noxious weeds, which may include the costs of serving notices, is a legal charge
against the county in which the land is located. The officers having the work done must file
with the county auditor a verified and itemized statement of cost for all services rendered
on each separate tract or lot of land. The county auditor shall immediately issue proper
warrants to the persons named on the statement as having rendered services. To reimburse
the county for its expenditure in this regard, the county auditor shall certify the total amount
due and, unless an appeal is made in accordance with section 18.84, enter it on the tax roll
as a tax upon the land and it must be collected as other real estate taxes are collected.

If deleted text begin public deleted text end new text begin publicly owned or managed new text end land is involved, the amount due must be paid
from deleted text begin funds provided deleted text end new text begin money appropriated new text end for maintenance of the land or from the general
revenue or operating fund of the agency responsible for the land. deleted text begin Each claim for control or
eradication of noxious weeds on public lands must first be approved by the commissioner
of agriculture.
deleted text end

Sec. 8.

Minnesota Statutes 2016, section 25.33, subdivision 8, is amended to read:

Subd. 8.

Drug.

"Drug" means new text begin (1) new text end any article intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in animals other than humans new text begin ; new text end and new text begin (2) new text end articles
other than feed intended to affect the structure or any function of the animal body.

Sec. 9.

Minnesota Statutes 2016, section 29.26, is amended to read:

29.26 EGGS IN POSSESSION OF RETAILER.

All eggs sold or offered for sale at retail must have been candled and graded and must
be clearly labeled according to Minnesota consumer grades as established by rule under
section 29.23. No eggs shall be sold or offered for sale as "ungraded," "unclassified," or by
any other name that does not clearly designate the grade. All eggs in possession of the
retailer, either in temporary storage or on display, must be held at a temperature not to
exceed 45 degrees Fahrenheit (7 degrees Celsius).

deleted text begin Candled and graded deleted text end new text begin Grade AA new text end eggs held 31 days past the coded pack date new text begin for Grade
AA eggs, or Grade A eggs held 46 days past the coded pack date for Grade A eggs, new text end lose
their grades and must be removed from sale.

Sec. 10.

Minnesota Statutes 2017 Supplement, section 32D.13, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Milk storage requirement. new text end

new text begin (a) A milk hauler may only pick up milk from
farms with a bulk tank that is in proper working order.
new text end

new text begin (b) Milk must not have been stored for longer than 72 hours when the milk is picked up
by a milk hauler at a farm for transport to a plant. The commissioner or an agent of the
commissioner may waive the 72-hour time limit in the case of hardship, emergency, or
natural disaster.
new text end

Sec. 11.

Minnesota Statutes 2017 Supplement, section 32D.20, subdivision 2, is amended
to read:

Subd. 2.

Labels.

(a) Pasteurized milk or fluid milk products offered or exposed for sale
or held in possession for sale shall be labeled or otherwise designated as pasteurized milk
or pasteurized fluid milk products, and in the case of fluid milk products the label shall also
state the name of the specific product.

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

Sec. 12.

Minnesota Statutes 2017 Supplement, section 32D.22, is amended to read:

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

new text begin (a) new text end No person, firm, or corporation shall manufacture, transport, sell, offer, or expose
for sale or have in possession with intent to sell at retail to a consumer any cheese that has
not been (1) manufactured from milk or milk products that have been pasteurized; (2)
subjected to a heat treatment equivalent to pasteurization during the process of manufacturing
or processing; or (3) subjected to an aging process where it has been kept for at least 60
days after manufacture at a temperature no lower than 35 degrees Fahrenheit.

new text begin (b) Any cheese described in paragraph (a), clause (3), that has been made from
unpasteurized milk must be labeled with a statement that the cheese is more than 60 days
of age.
new text end

Sec. 13.

Minnesota Statutes 2016, section 34A.11, subdivision 7, is amended to read:

Subd. 7.

Emergency powers.

After an emergency declaration issued under chapter 12,
chapter 35, or the federal Stafford Act, the commissioner may restrict the movement of food
if the commissioner has probable cause to believe that the movement of food may: threaten
the agricultural economy; transport a dangerous, infectious, or communicable disease; or
threaten the health of animals. The commissioner may provide for the issuance of permits
to allow for the continued movement of food upon meeting the deleted text begin disease deleted text end control measures
established by the commissioner.

Sec. 14.

Minnesota Statutes 2016, section 41A.15, is amended by adding a subdivision to
read:

new text begin Subd. 2e. new text end

new text begin Biomass. new text end

new text begin "Biomass" means any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees, wood and wood waste and residues,
plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic
portion of solid wastes.
new text end

Sec. 15.

Minnesota Statutes 2016, section 41A.15, subdivision 10, is amended to read:

Subd. 10.

Renewable chemical.

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

Sec. 16.

Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent deleted text begin raw materials deleted text end new text begin of biomass new text end from Minnesota deleted text begin . deleted text end new text begin , except that, new text end if a facility
is sited 50 miles or less from the state border, deleted text begin raw materials deleted text end new text begin biomass new text end may be sourced from
new text begin outside of Minnesota, but only if it is sourced from new text end within a 100-mile radius new text begin of the facility new text end .
deleted text begin Raw materials must be from agricultural or forestry sources or from solid waste. deleted text end The facility
must be located in Minnesota, must begin production at a specific location by June 30, 2025,
and must not begin operating above deleted text begin 23,750 deleted text end new text begin 1,500 new text end MMbtu of quarterly new text begin advanced new text end biofuel
production before July 1, 2015. Eligible facilities include existing companies and facilities
that are adding advanced biofuel production capacity, or retrofitting existing capacity, as
well as new companies and facilities. Production of conventional corn ethanol and
conventional biodiesel is not eligible. Eligible advanced biofuel facilities must produce at
least deleted text begin 23,750 deleted text end new text begin 1,500 new text end MMbtu of new text begin advanced new text end biofuel quarterly.

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

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

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

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

(f) Biobutanol is eligible under this section.

Sec. 17.

Minnesota Statutes 2016, section 41A.16, subdivision 2, is amended to read:

Subd. 2.

Payment amounts; limits.

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

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

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

Sec. 18.

Minnesota Statutes 2016, section 41A.16, subdivision 4, is amended to read:

Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text begin state deleted text end new text begin forest new text end biomass harvesting guidelines or
the equivalent. All new text begin cellulosic new text end biomass from brushlands must be produced using Minnesota
brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new text end guidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, new text begin the new text end Sustainable Forestry Initiative, or new text begin
the new text end American Tree Farm System. Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text begin stewardship deleted text end
new text begin management new text end plan new text begin , as defined in section 290C.02, subdivision 7, or its equivalent new text end .

Sec. 19.

Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this deleted text begin program deleted text end new text begin section new text end
must source at least 80 percent deleted text begin biobased content deleted text end new text begin of the biomass used to produce a renewable
chemical new text end from new text begin the state of new text end Minnesota deleted text begin . deleted text end new text begin , except that new text end if a facility is sited 50 miles or less from
the state border, new text begin the facility must source at least 80 percent of the new text end biobased content deleted text begin must be
sourced deleted text end new text begin used to produce a renewable chemical new text end from within a 100-mile radius new text begin of the facility new text end .
deleted text begin Biobased content must be from agricultural or forestry sources or from solid waste. deleted text end The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin production of deleted text begin 750,000 deleted text end new text begin 250,000 new text end pounds of chemicals quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least deleted text begin 750,000 deleted text end new text begin 250,000 new text end
pounds of renewable chemicals quarterly. Renewable chemicals produced through processes
that are fully commercial before January 1, 2000, are not eligible.

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

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

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

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2016, section 41A.17, subdivision 2, is amended to read:

Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make payments
to eligible producers of renewable chemicals located in the state. The amount of the payment
for each producer's annual production is $0.03 per pound of sugar-derived renewable
chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of cellulosic-derived
renewable chemical produced at a specific location for ten years after the start of production.

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

(c) Total payments under this section to an eligible renewable chemical producer in a
fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.

new text begin (d) An eligible facility may blend renewable chemicals with other chemicals that are
not renewable chemicals, but only the percentage attributable to renewable chemicals in
the blended product is eligible to receive payment.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Sec. 21.

Minnesota Statutes 2016, section 41A.17, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text begin state deleted text end new text begin forest new text end biomass harvesting guidelines or
the equivalent. All cellulosic biomass from brushlands must be produced using Minnesota
brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new text end guidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, new text begin the new text end Sustainable Forestry Initiative, or new text begin
the new text end American Tree Farm System. Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text begin stewardship deleted text end new text begin
management new text end plan new text begin , as defined in section 290C.02, subdivision 7, or its equivalent new text end .

Sec. 22.

Minnesota Statutes 2016, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent deleted text begin raw materials deleted text end new text begin of biomass new text end from Minnesota deleted text begin . deleted text end new text begin , except that, new text end if a facility
is sited 50 miles or less from the state border, deleted text begin raw materials should deleted text end new text begin biomass may new text end be sourced
from new text begin outside of Minnesota, but only if it is sourced from new text end within a 100-mile radius new text begin of the
facility new text end . deleted text begin Raw materials deleted text end new text begin Biomass new text end must be from agricultural or forestry sources. The facility
must be located in Minnesota, must have begun production at a specific location by June
30, 2025, and must not begin before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting existing capacity,
as well as new companies and facilities. Eligible biomass thermal production facilities must
produce at least 250 MMbtu of biomass thermal quarterly.

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

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

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

(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.

Sec. 23.

Minnesota Statutes 2016, section 41A.18, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota deleted text begin state deleted text end new text begin forest new text end biomass harvesting guidelines or
the equivalent. All new text begin cellulosic new text end biomass from deleted text begin brushland deleted text end new text begin brushlands new text end must be produced using
Minnesota brushland deleted text begin harvesting deleted text end biomass new text begin harvesting new text end guidelines or the equivalent.
Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres
must be certified by the Forest Stewardship Council, the Sustainable Forestry Initiative, or new text begin
the new text end American Tree Farm new text begin System new text end . Uncertified land from parcels of 160 acres or less and
federal land must be harvested by a logger who has completed training for biomass harvesting
from the Minnesota logger education program or the equivalent and have a forest deleted text begin stewardship deleted text end new text begin
management new text end plan new text begin , as defined in section 290C.02, subdivision 7, or its equivalent new text end .

Sec. 24.

Minnesota Statutes 2016, section 41B.02, subdivision 10a, is amended to read:

Subd. 10a.

Livestock expansion.

"Livestock expansion" means new text begin the purchase of a
livestock farm or new text end improvements to a livestock operation, including the purchase and
construction or installation of improvements to land, buildings, and other permanent
structures, including equipment incorporated in or permanently affixed to the land, buildings,
or structures, which are useful for and intended to be used for the purpose of raising livestock.

Sec. 25.

Minnesota Statutes 2017 Supplement, section 41B.0391, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

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

(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.

(c) "Beginning farmer" means an individual who:

(1) is a resident of Minnesota;

(2) is seeking entry, or has entered within the last ten years, into farming;

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

deleted text begin (4) is not and whose spouse is not a family member of the owner of the agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
deleted text end

deleted text begin (5) is not and whose spouse is not a family member of a partner, member, shareholder,
or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
purchase or rent agricultural assets; and
deleted text end

deleted text begin (6) deleted text end new text begin (4) new text end meets the following eligibility requirements as determined by the authority:

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

(ii) provides the majority of the day-to-day physical labor and management of the farm;

(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;

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

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

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

deleted text begin (vii) deleted text end new text begin (vi) new text end agrees to notify the authority if the beginning farmer no longer meets the
eligibility requirements within the three-year certification period, in which case the beginning
farmer is no longer eligible for credits under this section; and

deleted text begin (viii) deleted text end new text begin (vii) new text end has other qualifications as specified by the authority new text begin . The commissioner may
waive the requirement in clause (4), item (v), if the participant requests a waiver and has a
four-year degree in an agricultural program or related field, reasonable agricultural job-related
experience, or certification as an adult farm management instructor new text end .

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

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

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

deleted text begin (g) deleted text end new text begin (f) new text end "Owner of agricultural assets" means an individual, trust, or pass-through entity
that is the owner in fee of agricultural land or has legal title to any other agricultural asset.
Owner of agricultural assets does not mean an equipment dealer, livestock dealer defined
in section 17A.03, subdivision 7, or comparable entity that is engaged in the business of
selling agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.

deleted text begin (h) deleted text end new text begin (g) new text end "Resident" has the meaning given in section 290.01, subdivision 7.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2019.
new text end

Sec. 26.

Minnesota Statutes 2016, section 41B.047, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement a disaster
recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well as
replace seed, other crop inputs, feed, and livestock deleted text begin , when damaged by high winds, hail,
tornado, or flood deleted text end ;

(2) purchase watering systems, irrigation systems, and other drought mitigation systems
and practices when drought is the cause of the purchase;

(3) restore farmland; or

(4) replace flocks, make building improvements, or cover the loss of revenue when the
replacement, improvements, or loss of revenue is due to the confirmed presence of the
highly pathogenic avian influenza in a commercial poultry or game flock located in
Minnesota.

Sec. 27.

Minnesota Statutes 2016, section 41B.047, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was (i) sustained within a county that was the subject
of a state or federal disaster declaration or (ii) due to deleted text begin the confirmed presence of the highly
pathogenic avian influenza in a commercial poultry or game flock located in Minnesota deleted text end new text begin a
market disaster or emergency as determined by the authority new text end ;

(3) demonstrate an ability to repay the loan; and

(4) have received at least 50 percent of average annual gross income from farming for
the past three years.

Sec. 28.

Minnesota Statutes 2016, section 41B.049, subdivision 5, is amended to read:

Subd. 5.

Loan criteria.

(a) To be eligible, a borrower must be a resident of Minnesota
or an entity that is not prohibited from owning agricultural land under section 500.24.

(b) State participation in a participation loan is limited to 45 percent of the principal
amount of the loan. A direct loan or loan participation may not exceed $250,000.

(c) Loans under this program may be used as a match for federal loans or grants.

deleted text begin (d) A borrower who has previously received a loan under subdivision 1 is prohibited
from receiving another methane digester loan under subdivision 1.
deleted text end

Sec. 29.

Minnesota Statutes 2016, section 41B.055, subdivision 3, is amended to read:

Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan equal
to 90 percent of the purchased equipment value with an eligible lender to a farmer who is
eligible under subdivision 2. Participation is limited to 45 percent of the principal amount
of the loan or deleted text begin $40,000 deleted text end new text begin $100,000 new text end , whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must not
exceed three percent. The authority may review the interest annually and make adjustments
as necessary.

(b) Standards for loan amortization must be set by the Rural Finance Authority and must
not exceed ten years.

(c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) Refinancing of existing debt is not an eligible purpose.

(e) The authority may impose a reasonable, nonrefundable application fee for a livestock
equipment loan. The authority may review the fee annually and make adjustments as
necessary. The initial application fee is $50. Application fees received by the authority must
be deposited in the Rural Finance Authority administrative account established in section
41B.03.

(f) Loans under this program must be made using money in the revolving loan account
established in section 41B.06.

Sec. 30.

Minnesota Statutes 2016, section 41B.057, subdivision 3, is amended to read:

Subd. 3.

Loan participation.

The authority may participate in a farm opportunity loan
with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a group
of farmers on joint projects who are eligible under subdivision 2, paragraph (c), and who
are actively engaged in farming. Participation is limited to 45 percent of the principal amount
of the loan or deleted text begin $45,000 deleted text end new text begin $100,000 new text end per individual, whichever is less. For loans to a group made
up of four or more individuals, participation is limited to 45 percent of the principal amount
of the loan or deleted text begin $180,000 deleted text end new text begin $250,000 new text end , whichever is less. The interest rate on the loans must not
exceed six percent.

Sec. 31.

Minnesota Statutes 2016, section 103H.275, subdivision 1, is amended to read:

Subdivision 1.

Areas where groundwater pollution is detected.

(a) If groundwater
pollution is detected, a state agency or political subdivision that regulates an activity causing
or potentially causing a contribution to the pollution identified shall promote implementation
of best management practices to prevent or minimize the source of pollution to the extent
practicable.

(b) The Pollution Control Agency, or for agricultural chemicals and practices, the
commissioner of agriculture may adopt water source protection requirements under
subdivision 2 that are consistent with the goal of section 103H.001 and are commensurate
with the groundwater pollution if the implementation of best management practices has
proven to be ineffective.

(c) The water resources protection requirements must be:

(1) designed to prevent and minimize the pollution to the extent practicable;

(2) designed to prevent the pollution from exceeding the health risk limits; and

(3) submitted to the house of representatives and senate committees with jurisdiction
over the environment, natural resources, and agriculture.

new text begin (d) The commissioner of agriculture shall not adopt water resource protection
requirements under subdivision 2 for nitrogen fertilizer unless the water resource protection
requirements are specifically approved by law.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 41A.15, subdivisions 2a and 2b, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S3536-1

41A.15 DEFINITIONS.

Subd. 2a.

Biobased content.

"Biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866.

Subd. 2b.

Biobased formulated product.

"Biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation.