SF 4495

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/20/2022 08:07am

A bill for an act
relating to agriculture; appropriating money for livestock processing facilities
grants; amending Laws 2021, First Special Session chapter 3, article 1, section 2,
subdivisions 1, 4.

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

Section 1.

Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 1,
is amended to read:

Subdivision 1. Total Appropriation

$

59,303,000

$

deleted text begin 59,410,000 deleted text end new text begin 60,110,000 new text end

Appropriations by Fund
	2022	2023
General	58,904,000	deleted text begin 59,011,000 deleted text end new text begin 59,711,000 new text end
Remediation	399,000	399,000

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

Sec. 2.

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

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

25,343,000

deleted text begin 25,357,000 deleted text end new text begin 26,057,000 new text end

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

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

(b) $16,028,000 the first year and deleted text begin $16,028,000 deleted text end new text begin
$16,728,000 new text end the second year are for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate the appropriation
each year among the following areas:
facilitating the start-up, modernization,
improvement, or expansion of livestock
operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$800,000 each year to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
school and child care settings including, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $600,000
each year for urban youth agricultural
education or urban agriculture community
development of which $10,000 each year is
for transfer to the emerging farmer account
under Minnesota Statutes, section 17.055,
subdivision 1a; providing funding not to
exceed $450,000 each year for the good food
access program under Minnesota Statutes,
section 17.1017; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

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

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

(4) $750,000 the first year and deleted text begin $750,000 deleted text end new text begin
$1,450,000 new text end the second year are for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2024, and
may be used for other purposes under this
paragraph. The appropriations under this
clause are onetime; and

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

Notwithstanding Minnesota Statutes, section
16A.28, 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, 2023, for agricultural
growth, research, and innovation grants are
available until June 30, 2026.

The base amount for the agricultural growth,
research, and innovation program is
$16,053,000 in fiscal year 2024 and
$16,053,000 in fiscal year 2025, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.

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