SF 3955

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/19/2024 10:22am

A bill for an act
relating to state government; authorizing supplemental agriculture appropriations;
modifying appropriations; providing broadband appropriation transfer authority;
making policy and technical changes to agriculture provisions; establishing and
modifying agriculture programs; requiring an application for federal broadband
aid; requiring reports; appropriating money; amending Minnesota Statutes 2022,
sections 17.116, subdivision 2; 17.133, subdivision 1; 18C.70, subdivision 5;
18C.71, subdivision 4; 18C.80, subdivision 2; 28A.10; 31.94; 32D.30; 41B.047,
subdivision 1; 116J.396, by adding a subdivision; Minnesota Statutes 2023
Supplement, sections 17.055, subdivision 3; 17.133, subdivision 3; 18C.425,
subdivision 6; 35.155, subdivision 12; 41B.0391, subdivisions 1, 2, 4, 6; Laws
2023, chapter 43, article 1, section 2, subdivisions 1, 2, 3, 4, 5; repealing Minnesota
Statutes 2022, section 34.07.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in
parenthesis, subtracted from the appropriation in Laws 2023, chapter 43, or 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 $ new text end

new text begin 475,000 new text end

new text begin $ new text end

new text begin 1,650,000 new text end

new text begin (a) $750,000 the second year is for home water
treatment such as reverse osmosis treatment
for private wells that are tested at or above the
maximum contaminant level of 10 mg/L and
located in Dodge, Fillmore, Goodhue,
Houston, Mower, Olmsted, or Wabasha
County. Priority must be given to households
at or below 300 percent of the federal poverty
guidelines and households with infants and
pregnant individuals. This appropriation may
also be used for education, outreach, and
technical assistance to homeowners.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This appropriation is
available until June 30, 2027. This is a onetime
appropriation.
new text end

new text begin By December 15 each year through 2027, the
commissioner must report to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture
and health detailing the use of this
appropriation and the number of households
served in each county.
new text end

new text begin (b) $500,000 the second year is for the soil
health financial assistance program under
Minnesota Statutes, section 17.134, for
projects located in Dodge, Fillmore, Goodhue,
Houston, Mower, Olmsted, or Wabasha
County. The commissioner may award no
more than $50,000 of the appropriation each
year to a single recipient. Notwithstanding
Minnesota Statutes, section 16B.98,
subdivision 14, the commissioner may use up
to 6.5 percent of this appropriation for costs
incurred to administer the program.
Appropriations encumbered under contract on
or before June 30, 2025, for soil health
financial assistance grants are available until
June 30, 2027. This appropriation is in
addition to the appropriation in Laws 2023,
chapter 43, article 1, section 2, subdivision 2,
paragraph (b). This is a onetime appropriation.
new text end

new text begin (c) $50,000 the first year is to convene a
working group of interested parties, including
representatives from the Department of
Natural Resources, to investigate and
recommend options for addressing crop and
fence destruction due to Cervidae. By
February 1, 2025, the commissioner must
submit a report on the findings and
recommendations of the working group to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance.
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. This is a onetime
appropriation.
new text end

new text begin (d) $100,000 the second year is to develop and
enhance farm-to-school markets by providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in schools and early
childhood education centers, child care
centers, and family child care programs,
including, at the commissioner's discretion,
providing grants to reimburse schools, early
childhood education centers, child care
centers, and family child care programs for
purchasing equipment and agricultural
products. This appropriation is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Any unencumbered balance at the
end of the second year may be used for other
purposes under the agricultural growth,
research, and innovation program and is
available until June 30, 2027. Notwithstanding
Minnesota Statutes, section 16B.98,
subdivision 14, the commissioner may use up
to 6.5 percent of this appropriation for
administrative costs. This appropriation is in
addition to the appropriation in Laws 2023,
chapter 43, article 1, section 2, subdivision 4,
paragraph (c). This is a onetime appropriation.
new text end

new text begin (e) $300,000 the second year is for the
protecting livestock grant program for
producers to support the installation of
measures to prevent the transmission of avian
influenza. For the appropriation in this
paragraph, a grant applicant must document
a cost-share of 20 percent. An applicant's
cost-share amount may be reduced up to
$2,000 to cover time and labor costs. This
appropriation is for the agricultural growth,
research, and innovation program under
Minnesota Statutes, section 41A.12.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This appropriation is
available until June 30, 2027. This is a onetime
appropriation.
new text end

new text begin (f) $375,000 the first year is to provide grants
to secondary career and technical education
programs for the purpose of offering
instruction in meat cutting and butchery. This
appropriation is for the agricultural growth,
research, and innovation program under
Minnesota Statutes, section 41A.12.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation. 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. Grants
may be used for costs, including but not
limited to:
new text end

new text begin (1) equipment required for a meat cutting
program;
new text end

new text begin (2) facility renovation to accommodate meat
cutting; and
new text end

new text begin (3) training faculty to teach the fundamentals
of meat processing.
new text end

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

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

new text begin (g) $50,000 the first year is to prepare a report
on agricultural land trends. For the purposes
of this section, "agricultural land" means
property classified as class 2a agricultural land
or class 2b rural vacant land under Minnesota
Statutes, section 273.13, subdivision 23. The
report must include the following:
new text end

new text begin (1) information about agricultural land sales,
including the price, number of acres, type of
buyer, and type of financing used;
new text end

new text begin (2) information about agricultural land use,
including differences among regions; and
new text end

new text begin (3) legislative recommendations for ensuring
that agricultural land is available to farmers.
new text end

new text begin No data included in this report shall reveal
personally identifiable information. The
commissioner may contract with external
experts to develop this report and may
coordinate with the Department of Revenue,
University of Minnesota Extension, and
Minnesota State Colleges and Universities.
No later than January 3, 2025, the
commissioner must submit the report to the
chairs and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture. 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. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Laws 2023, chapter 43, article 1, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

deleted text begin 92,025,000 deleted text end new text begin 88,025,000 new text end

$

deleted text begin 72,223,000 deleted text end new text begin 76,643,000 new text end

Appropriations by Fund
	2024	2025
General	deleted text begin 91,626,000 deleted text end new text begin 87,626,000 new text end	deleted text begin 71,824,000 deleted text end new text begin 76,244,000 new text end
Remediation	399,000	399,000

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

Sec. 4.

Laws 2023, chapter 43, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Protection Services

Appropriations by Fund
	2024	2025
General	32,034,000	deleted text begin 18,743,000 deleted text end new text begin 18,818,000 new text end
Remediation	399,000	399,000

(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.

(b) $625,000 the first year and $625,000 the
second year are for the soil health financial
assistance program under Minnesota Statutes,
section 17.134. The commissioner may award
no more than $50,000 of the appropriation
each year to a single recipient. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
Appropriations encumbered under contract on
or before June 30, 2025, for soil health
financial assistance grants are available until
June 30, 2027. The base for this appropriation
is $639,000 in fiscal year 2026 and each year
thereafter.

(c) $800,000 the first year is for transfer to the
pollinator research account established under
Minnesota Statutes, section 18B.051. The base
for this transfer is $100,000 in fiscal year 2026
and each year thereafter.

(d) $150,000 the first year and $150,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account established under Minnesota Statutes,
section 18.89, to award grants under
Minnesota Statutes, section 18.90, to counties,
municipalities, and other weed management
entities, including Minnesota Tribal
governments as defined in Minnesota Statutes,
section 10.65. This is a onetime appropriation.

(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.

(f) $155,000 the first year and deleted text begin $155,000 deleted text end new text begin
$230,000 new text end 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 $40,000 of the
appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage. If the commissioner
determines that claims made under Minnesota
Statutes, section 3.737 or 3.7371, are
unusually high, amounts appropriated for
either program may be transferred to the
appropriation for the other program. new text begin The base
for this appropriation is $155,000 in fiscal year
2026 and each year thereafter.
new text end

(g) $825,000 the first year and $825,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory.

(h) $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.

(i) $2,200,000 the first year and $1,650,000
the second year are additional funding to
maintain the current level of service delivery
for programs under this subdivision. The base
for this appropriation is $1,925,000 for fiscal
year 2026 and each year thereafter.

(j) $250,000 the first year and $250,000 the
second year are for grants to organizations in
Minnesota to develop enterprises, supply
chains, and markets for continuous-living
cover crops and cropping systems in the early
stages of commercial development. For the
purposes of this paragraph, "continuous-living
cover crops and cropping systems" refers to
agroforestry, perennial biomass, perennial
forage, perennial grains, and winter-annual
cereal grains and oilseeds that have market
value as harvested or grazed commodities. By
February 1 each year, the commissioner must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
finance and policy detailing uses of the funds
in this paragraph, including administrative
costs, and the achievements these funds
contributed to. The commissioner may use up
to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation.

(k) $45,000 the first year and $45,000 the
second year are appropriated for
wolf-livestock conflict-prevention grants. The
commissioner may use some of this
appropriation to support nonlethal prevention
work performed by federal wildlife services.
This is a onetime appropriation.

(l) $10,000,000 the first year is for transfer to
the grain indemnity account established in
Minnesota Statutes, section 223.24. This is a
onetime transfer.

(m) $125,000 the first year and $125,000 the
second year are for the PFAS in pesticides
review. This is a onetime appropriation.

(n) $1,941,000 the first year is for transfer to
the food handler license account. This is a
onetime transfer.

Sec. 5.

Laws 2023, chapter 43, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. Agricultural Marketing and Development

5,165,000

4,985,000

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

(b) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. 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.

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

(d) 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.

(e) $600,000 the first year and $420,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $490,000 deleted text end new text begin $510,000 new text end for fiscal
year 2026 and each year thereafter.

(f) $100,000 the first year and $100,000 the
second year are for mental health outreach and
support to farmers, ranchers, and others in the
agricultural community and for farm safety
grant and outreach programs under Minnesota
Statutes, section 17.1195. Mental health
outreach and support may include a 24-hour
hotline, stigma reduction, and education.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(g) $100,000 the first year and $100,000 the
second year are to award and administer grants
deleted text begin for infrastructure deleted text end new text begin and other forms of financial
assistance new text end to support EBT, SNAP, SFMNP,
and related programs at farmers markets. new text begin
Grants may be used for staff costs associated
with program administration, compliance, and
reporting. The commissioner may use up to
6.5 percent of the appropriation each year to
administer the grant program. new text end 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. This is a onetime appropriation.

(h) $200,000 the first year and $200,000 the
second year are to award cooperative grants
under Minnesota Statutes, section 17.1016.
The commissioner may use up to 6.5 percent
of the appropriation each year to administer
the grant program. 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. This
is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

deleted text begin 37,809,000 deleted text end new text begin 33,809,000 new text end

deleted text begin 33,809,000 deleted text end new text begin 38,154,000 new text end

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

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

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

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

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

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

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

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

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

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

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

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

(c) deleted text begin $27,107,000 deleted text end new text begin $23,107,000 new text end the first year deleted text begin and
$23,107,000 the second year are deleted text end new text begin is new text end for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
deleted text begin each year deleted text end among the following areas:
facilitating the start-up, modernization,
improvement, or expansion of livestock
operations, including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; assisting value-added agricultural
businesses to begin or expand, to access new
markets, or to diversify, including aquaponics
systems, with preference given to hemp fiber
processing equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $5,750,000 the first year deleted text begin and $5,750,000
the second year are deleted text end new text begin is new text end 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 deleted text begin , and the second year appropriation is
available until June 30, 2026 deleted text end . 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 deleted text begin . The base under this clause is
$3,000,000 in fiscal year 2026 and each year
thereafter deleted text end ;

(3) $3,375,000 the first year deleted text begin and $3,375,000
the second year are deleted text end new text begin is new text end 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 deleted text begin 10 deleted text end new text begin 20 new text end retail
petroleum dispensing sites and each site is
located in Minnesota. The grant money must
be used to replace or upgrade equipment that
does not have the ability to be certified for
E25. A grant award must not exceed 65
percent of the cost of the appropriate
technology. A grant award must not exceed
$200,000 per station. The commissioner must
cooperate with biofuel stakeholders in the
implementation of the grant program. The
commissioner, in cooperation with any
economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses deleted text begin .
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter deleted text end ;

(4) $1,250,000 the first year deleted text begin and $1,250,000
the second year are deleted text end new text begin is new text end 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 deleted text begin . The
base under this clause is $250,000 in fiscal
year 2026 and each year thereafter deleted text end ;

(5) $1,150,000 the first year deleted text begin and $1,150,000
the second year are for deleted text end new text begin is to develop and
enhance farm-to-school markets for Minnesota
farmers by new text end providing more fruits, vegetables,
meat, poultry, grain, and dairy for children in
deleted text begin school and deleted text end new text begin schools, new text end early childhood education
centers, new text begin child care centers, and family child
care programs, new text end including, at the
commissioner's discretion, providing grants
to reimburse schools deleted text begin and deleted text end new text begin , new text end early childhood
education centers new text begin , child care centers, and
family child care programs, new text end for purchasing
equipment and agricultural products. Of the
amount appropriated, $150,000 each year is
for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients deleted text begin . The base under this
clause is $1,294,000 in fiscal year 2026 and
each year thereafter deleted text end ;

deleted text begin (6) $4,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. 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 allocation
in this clause is onetime;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end $2,000,000 the first year deleted text begin and
$2,000,000 the second year are deleted text end new text begin is new text end for urban
youth agricultural education or urban
agriculture community development; and

deleted text begin (8) deleted text end new text begin (7) new text end $1,000,000 the first year deleted text begin and
$1,000,000 the second year are deleted text end new text begin is new text end for the good
food access program under Minnesota
Statutes, section 17.1017.

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 begin (d) $27,452,000 the second year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
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 second year is 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) $5,750,000 the second year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2027. If this appropriation exceeds
the total amount for which all producers are
eligible in a fiscal year, the balance of the
appropriation is available for other purposes
under this paragraph. The base under this
clause is $3,000,000 in fiscal year 2026 and
each year thereafter;
new text end

new text begin (3) $3,375,000 the second year is for grants
that enable retail petroleum dispensers, fuel
storage tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 20 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 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.
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter;
new text end

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

new text begin (5) $1,150,000 the first year is to develop and
enhance farm-to-school markets for Minnesota
farmers by providing more fruits, vegetables,
meat, poultry, grain, and dairy for children in
schools, early childhood education centers,
child care centers, and family child care
programs, including, at the commissioner's
discretion, providing grants to reimburse
schools, early childhood education centers,
child care centers, and family child care
programs for purchasing equipment and
agricultural products. Of the amount
appropriated, $150,000 each year is for a
statewide coordinator of farm-to-institution
strategy and programming. The coordinator
must consult with relevant stakeholders and
provide technical assistance and training for
participating farmers and eligible grant
recipients. The base under this clause is
$1,294,000 in fiscal year 2026 and each year
thereafter;
new text end

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

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

new text begin (8) $1,000,000 the second year is for the good
food access program under Minnesota
Statutes, section 17.1017.
new text end

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

deleted text begin (d) deleted text end new text begin (e) new text end The base for the agricultural growth,
research, and innovation program is
deleted text begin $16,294,000 deleted text end new text begin $17,582,000 new text end in fiscal year 2026
and each year thereafter and includes $200,000
each year for cooperative development grants.

Sec. 7.

Laws 2023, chapter 43, article 1, section 2, subdivision 5, is amended to read:

Subd. 5. Administration and Financial Assistance

16,618,000

14,287,000

(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
must 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) $350,000 the first year and $350,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D. The base for
this appropriation is $250,000 in fiscal year
2026 and each year thereafter.

(c) $2,000 the first year is for a grant 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.

(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.

(e) $60,000 the first year and $60,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. This is a onetime appropriation.

(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.

(g) $25,000 the first year and $25,000 the
second year are for grants to the Center for
Rural Policy and Development. This is a
onetime appropriation.

(h) $75,000 the first year and $75,000 the
second year are appropriated from the general
fund to the commissioner of agriculture for
grants to the Minnesota Turf Seed Council for
basic and applied research on: (1) the
improved production of forage and turf seed
related to new and improved varieties; and (2)
native plants, including plant breeding,
nutrient management, pest management,
disease management, yield, and viability. The
Minnesota Turf Seed Council may subcontract
with a qualified third party for some or all of
the basic or applied research. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. The Minnesota Turf Seed Council
must prepare a report outlining the use of the
grant money and related accomplishments. No
later than January 15, 2025, the council must
submit the report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture finance and policy. This is a
onetime appropriation.

(i) $100,000 the first year and $100,000 the
second year are for grants to GreenSeam for
assistance to agriculture-related businesses to
support business retention and development,
business attraction and creation, talent
development and attraction, and regional
branding and promotion. These are onetime
appropriations. No later than December 1,
2024, and December 1, 2025, GreenSeam
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.

(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 purposes:

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

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

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. The base for this appropriation is
$1,700,000 for fiscal year 2026 and each year
thereafter.

(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.

(l) $300,000 the first year and $300,000 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. This is a
onetime appropriation.

(m) $750,000 the first year and $750,000 the
second year are to expand the Emerging
Farmers Office and provide services to
beginning and emerging farmers to increase
connections between farmers and market
opportunities throughout the state. This
appropriation may be used for grants,
translation services, training programs, or
other purposes in line with the
recommendations of the Emerging Farmer
Working Group established under Minnesota
Statutes, section 17.055, subdivision 1. The
base for this appropriation is $1,000,000 in
fiscal year 2026 and each year thereafter.

(n) $50,000 the first year is 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.

(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 with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.

(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.

(q) $1,000,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041.

(r) $1,084,000 the first year and $500,000 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. This is a onetime appropriation.

(s) $275,000 the first year is for technical
assistance grants to certified community
development financial institutions that
participate in United States Department of
Agriculture loan or grant programs for small
or emerging farmers, including but not limited
to the Increasing Land, Capital, and Market
Access Program. For purposes of this
paragraph, "emerging farmer" has the meaning
given in Minnesota Statutes, section 17.055,
subdivision 1. The commissioner may use up
to 6.5 percent of this appropriation for costs
incurred to administer the program.
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. This is a onetime
appropriation.

(t) $1,425,000 the first year and $1,425,000
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.

(u) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.

(v) The base in fiscal years 2026 and 2027 is
$150,000 each year 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.

(w) $1,200,000 the first year and $930,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end in
fiscal year 2026 and deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end
in fiscal year 2027.

(x) $250,000 the first 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 a report submitted by January 3, 2024,
and a final report submitted by December 31,
2024. The reports must include a list of
equipment purchased, including the cost of
each item.

(y) $1,000,000 the first year and $1,000,000
the second year are to award and administer
down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to deleted text begin emerging deleted text end farmers new text begin
experiencing limited land access new text end as defined in
Minnesota Statutes, section deleted text begin 17.055,
subdivision 1 deleted text end new text begin 17.133, subdivision 1, or farmers
who had a net farm profit of $100,000 or less
the previous year new text end . Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance at the end of the first year does not
cancel and is available in the second year and
appropriations encumbered under contract by
June 30, 2025, are available until June 30,
2027.

(z) $222,000 the first year and $322,000 the
second year are for meat processing training
and retention incentive grants under section
5. The commissioner may use up to 6.5
percent of this appropriation for costs incurred
to administer the program. 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. This is a onetime appropriation.

(aa) $300,000 the first year and $300,000 the
second year are for transfer to the Board of
Regents of the University of Minnesota to
evaluate, propagate, and maintain the genetic
diversity of oilseeds, grains, grasses, legumes,
and other plants including flax, timothy,
barley, rye, triticale, alfalfa, orchard grass,
clover, and other species and varieties that
were in commercial distribution and use in
Minnesota before 1970, excluding wild rice.
This effort must also protect traditional seeds
brought to Minnesota by immigrant
communities. This appropriation includes
funding for associated extension and outreach
to small and Black, Indigenous, and People of
Color (BIPOC) farmers. This is a onetime
appropriation.

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

Sec. 8. new text begin COMMISSIONER OF HEALTH; APPROPRIATIONS.
new text end

new text begin (a) $2,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of health to establish a mitigation program for contaminated wells, including
testing, repairing, and replacing wells and providing home water treatment, such as reverse
osmosis treatment, for private wells that are tested at or above the maximum contaminant
level of 10 mg/L located in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, or
Wabasha County. This appropriation is available until June 30, 2027. This is a onetime
appropriation. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the
commissioner may use up to 6.5 percent of this appropriation for administrative costs.
new text end

new text begin (b) By December 15 each year through 2027, the commissioner must report to the chairs
and ranking minority members of the legislative committees with jurisdiction over agriculture
and health detailing the use of the appropriation in this section and the number of households
served in each county.
new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended
to read:

Subd. 3.

Beginning farmer equipment and infrastructure grants.

(a) The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are deleted text begin emerging deleted text end farmers new text begin experiencing
limited land access new text end as defined in new text begin section 17.133, new text end subdivision 1. Grant money may be used
for equipment and infrastructure development.

(b) The commissioner shall develop competitive eligibility criteria and may allocate
grants on a needs basis.

(c) Grant projects may continue for up to two years.

Sec. 2.

Minnesota Statutes 2022, section 17.116, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

(a) Grants may deleted text begin only deleted text end be made to farmers deleted text begin , deleted text end new text begin and organizations such as
farms, agricultural cooperatives, new text end educational institutions, individuals at educational
institutions, deleted text begin or deleted text end nonprofit organizations new text begin , Tribal governments, or local units of government new text end
residing or located in the state for research or demonstrations on farms in the state.

(b) Grants may only be made for projects that show:

(1) the ability to maximize direct or indirect energy savings or production;

(2) a positive effect or reduced adverse effect on the environment; or

(3) increased profitability for the individual farm by reducing costs or improving
marketing opportunities.

Sec. 3.

Minnesota Statutes 2022, section 17.133, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

new text begin (2) has participated in the business operation of a farm for at least three years;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end grosses no more than $250,000 per year from the sale of farm products; and

deleted text begin (3) deleted text end new text begin (4) new text end has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland.

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

new text begin (d) "Incubator farm" means a farm where people are given temporary, exclusive, and
affordable access to small parcels of land, infrastructure, and often training, for the purposes
of honing skills and launching farm businesses.
new text end

new text begin (e) "Limited land access" means farming without ownership of land and:
new text end

new text begin (1) under a lease or other rental arrangement of no more than three years in duration
when the person leasing or renting the land is not related to the lessee or renter by blood or
marriage;
new text end

new text begin (2) farming by renting land from an incubator farm as defined in this section;
new text end

new text begin (3) farming with no current lease or other rental arrangement; or
new text end

new text begin (4) farming where access to land is constrained by Tribal land ownership patterns,
treaties, or federal and Tribal laws and regulations.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 17.133, subdivision 3, is amended
to read:

Subd. 3.

Report to legislature.

No later than December 1, 2023, and annually thereafter,
the commissioner must provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over agriculture and rural development, in
compliance with sections 3.195 and 3.197, on the farm down payment assistance grants
under this section. The report must include:

(1) background information on beginning farmers in Minnesota and any other information
that the commissioner and authority find relevant to evaluating the effect of the grants on
increasing opportunities for and the number of beginning farmers;

(2) the number and amount of grants;

(3) the geographic distribution of grants by county;

(4) the number of grant recipients who are deleted text begin emerging deleted text end farmers new text begin experiencing limited land
access or who have a net farm profit of $100,000 or less the previous year new text end ;

(5) disaggregated data regarding the gender, race, and ethnicity of grant recipients;

(6) the number of farmers who cease to own land and are subject to payment of a penalty,
along with the reasons for the land ownership cessation; and

(7) the number and amount of grant applications that exceeded the allocation available
in each year.

Sec. 5.

Minnesota Statutes 2023 Supplement, 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 the inspection fee
set under paragraph (e), and until June 30, deleted text begin 2024 deleted text end new text begin 2034 new text end , an additional 40 cents per ton, of
fertilizer, soil amendment, and plant amendment sold or distributed in this state, with a
minimum of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner
must deposit all revenue from the additional 40 cents per ton fee in the agricultural fertilizer
research and education account in section 18C.80. Products sold or distributed to
manufacturers or exchanged between them are exempt from the inspection fee imposed by
this subdivision if the products are used exclusively for manufacturing purposes.

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

(e) By commissioner's order, the commissioner must set the inspection fee at no less
than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a
public meeting before increasing the fee by more than five cents per ton.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

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

Sec. 7.

Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

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

Sec. 8.

Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:

Subd. 2.

Expiration.

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

Sec. 9.

Minnesota Statutes 2022, section 28A.10, is amended to read:

28A.10 POSTING OF LICENSE; RULES.

All such licenses shall be issued for a period of one year and shall be posted or displayed
in a conspicuous place at the place of business so licensed. deleted text begin Except as provided in sections
29.22, subdivision 4 and 31.39, all such license fees and penalties collected by the
commissioner shall be deposited into the state treasury and credited to the general fund. deleted text end
The commissioner may adopt such rules in conformity with law as the commissioner deems
necessary to effectively and efficiently carry out the provisions of sections 28A.01 to 28A.16.

Sec. 10.

Minnesota Statutes 2022, section 31.94, is amended to read:

31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine information
and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota and other research and education institutions
to demonstrate the on-farm applicability of organic agriculture practices to conditions in
this state;

(3) direct the programs of the department so as to work toward the promotion of organic
agriculture in this state;

(4) inform agencies about state or federal programs that support organic agriculture
practices; and

(5) work closely with producers, producer organizations, the University of Minnesota,
and other appropriate agencies and organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner, in
conjunction with the task force created in paragraph (c), shall report on the status of organic
agriculture in Minnesota to the legislative policy and finance committees and divisions with
jurisdiction over agriculture. The report must include available data on organic acreage and
production, available data on the sales or market performance of organic products, and
recommendations regarding programs, policies, and research efforts that will benefit
Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
sector. The task force must consist of the following residents of the state:

(1) three organic farmers;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural Experiment
Station; the dean and director of University of Minnesota Extension and the dean of the
College of Food, Agricultural and Natural Resource Sciences, shall appoint members to
serve three-year terms.

Compensation and removal of members are governed by section 15.059, subdivision 6.
The task force must meet at least twice each year and expires on June 30, deleted text begin 2024 deleted text end new text begin 2034 new text end .

(d) For the purposes of expanding, improving, and developing production and marketing
of the organic products of Minnesota agriculture, the commissioner may receive funds from
state and federal sources and spend them, including through grants or contracts, to assist
producers and processors to achieve certification, to conduct education or marketing
activities, to enter into research and development partnerships, or to address production or
marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production and
handling operations including those exempt from organic certification according to Code
of Federal Regulations, title 7, section 205.101, and accredited certification agencies
operating within the state.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2022, section 32D.30, is amended to read:

32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.

Subdivision 1.

Program.

The commissioner must implement a dairy development and
profitability enhancement program consisting of new text begin a new text end dairy profitability enhancement deleted text begin teams
and deleted text end new text begin program, new text end dairy business planning grants new text begin , and other services to support the dairy industry new text end .

Subd. 2.

Dairy profitability enhancement deleted text begin teams deleted text end new text begin program new text end .

(a) new text begin The new text end dairy profitability
enhancement deleted text begin teams deleted text end new text begin program new text end must provide deleted text begin one-on-one deleted text end information and technical assistance
to dairy farms of all sizes to enhance their financial success and long-term sustainability.
deleted text begin Teams deleted text end new text begin The program new text end must assist dairy producers in all dairy-producing regions of the state
deleted text begin and deleted text end new text begin . new text end new text begin Assistance to producers from the program new text end may deleted text begin consist of deleted text end new text begin be provided individually, as
a team, or through other methods by new text end farm business management instructors, dairy extension
specialists, and other dairy industry partners. deleted text begin Teams deleted text end new text begin The program new text end may engage in activities
deleted text begin including deleted text end new text begin such as new text end comprehensive financial analysis, risk management education, enhanced
milk marketing tools and technologies, deleted text begin and deleted text end facilitating or improving production systems new text begin , new text end
including rotational grazing and other sustainable agriculture methods new text begin , and value-added
opportunities new text end .

(b) The commissioner must make grants to regional or statewide organizations qualified
to manage the various components of the deleted text begin teams deleted text end new text begin program and serve as program administrators new text end .
Each regional or statewide organization must designate a coordinator responsible for
overseeing the program and submitting periodic reports to the commissioner regarding
aggregate changes in producer financial stability, productivity, product quality, animal
health, environmental protection, and other performance measures attributable to the program.
The organizations must submit this information in a format that maintains the confidentiality
of individual dairy producers.

Subd. 3.

Dairy business planning grants.

The commissioner may award dairy business
planning grants of up to $5,000 per producer new text begin or dairy processor new text end to deleted text begin develop comprehensive
business plans deleted text end new text begin use technical assistance services for evaluating operations, transitional
changes, expansions, improvements, and other business modifications new text end . Producers new text begin and
processors new text end must not use dairy business planning grants for capital improvements.

Subd. 4.

Funding allocation.

Except as specified in law, the commissioner may allocate
dairy development and profitability enhancement program dollars deleted text begin among deleted text end new text begin for new text end the permissible
uses specified in this section new text begin and other needs to support the dairy industry new text end , including efforts
to improve the quality of milk produced in the state, in the proportions that the commissioner
deems most beneficial to the state's dairy farmers.

Subd. 5.

Reporting.

No later than July 1 each year, the commissioner must submit a
detailed accomplishment report and work plan detailing future plans for, and the actual and
anticipated accomplishments from, expenditures under this section to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture policy and finance. If the commissioner significantly modifies a submitted work
plan during the fiscal year, the commissioner must notify the chairs and ranking minority
members.

Sec. 12.

Minnesota Statutes 2023 Supplement, section 35.155, subdivision 12, is amended
to read:

Subd. 12.

Importation.

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

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

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

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

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

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

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

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

Sec. 13.

Minnesota Statutes 2023 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 new text begin or LLC owned by an individual new text end 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;

(4) except as provided in subdivision 2, paragraph (f), 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;

(5) except as provided in subdivision 2, paragraph (f), 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

(6) meets the following eligibility requirements as determined by the authority:

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

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

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

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

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

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

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

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

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

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

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

(f) "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.

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

new text begin (h) "Limited land access" has the meaning given in section 17.133, subdivision 1.
new text end

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

deleted text begin (j) deleted text end new text begin (k) 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 for taxable years beginning after December
31, 2024.
new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 2, is amended
to read:

Subd. 2.

Tax credit for owners of agricultural assets.

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

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

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

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

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

(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification and allocation of a credit, in
a form and manner prescribed by the authority.

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

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

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

(1) the owner of the agricultural land; or

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 4, is amended
to read:

Subd. 4.

Authority duties.

(a) The authority shall:

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 6, is amended
to read:

Subd. 6.

Report to legislature.

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2022, 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;

(2) purchase watering systems, irrigation systems, deleted text begin and deleted text end other drought mitigation systems
and practices new text begin , and feed new text end when drought is the cause of the purchase;

(3) restore farmland;

(4) replace flocks or livestock, make building improvements, or cover the loss of revenue
when the replacement, improvements, or loss of revenue is due to the confirmed presence
of a highly contagious animal disease in a commercial poultry or game flock, or a commercial
livestock operation, located in Minnesota; or

(5) cover the loss of revenue when the revenue loss is due to an infectious human disease
for which the governor has declared a peacetime emergency under section 12.31.

Sec. 18. new text begin SUPERSEDING EFFECT.
new text end

new text begin The amendment to Minnesota Statutes, section 35.155, subdivision 12, in section 12 of
this article is intended to supersede the amendment in article 1, section 18, in S.F. No. 4225.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 34.07, new text end new text begin is repealed.
new text end

ARTICLE 3

BROADBAND

Section 1.

Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Transfer. new text end

new text begin The commissioner may transfer up to $5,000,000 of a fiscal year
appropriation between the border-to-border broadband program, low density population
broadband program, and the broadband line extension program to meet demand. The
commissioner must inform the chairs and ranking minority members of the legislative
committees with jurisdiction over broadband finance in writing when this transfer authority
is used. The written notice must include how much money was transferred and why the
transfer was made. The written notice must also be filed with the Legislative Reference
Library in compliance with Minnesota Statutes, section 3.195.
new text end

Sec. 2. new text begin BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.
new text end

new text begin (a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of Commerce requesting State Digital
Equity Capacity Grant funding made available under Public Law 117-58, the Infrastructure
Investment and Jobs Act.
new text end

new text begin (b) The amount awarded to Minnesota pursuant to the application submitted under
paragraph (a) is appropriated to the commissioner of employment and economic development
for purposes of the commissioner's Minnesota Digital Opportunity Plan.
new text end

APPENDIX

Repealed Minnesota Statutes: S3955-1

34.07 BEVERAGE INSPECTION ACCOUNT; APPROPRIATION.

A beverage inspection account is created in the agricultural fund. All fees and fines collected under this chapter shall be credited to the beverage inspection account. Money in the account is appropriated to the commissioner for inspection and supervision under this chapter.