SF 4942

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/06/2024 05:04pm

A bill for an act
relating to state government; authorizing supplemental agriculture 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; modifying appropriations to
the Office of Cannabis Management and the Department of Health; modifying
fees assessed by the Department of Commerce; adding the Minnesota Consumer
Data Privacy Act; adding and modifying consumer protection provisions;
appropriating money for energy, utilities, environment, and climate; requiring
utilities to accept an individual taxpayer identification number when new customers
apply for utility service; allowing public utilities providing electric service to
propose goals for fuel-switching improvement achievements to the commissioner
of commerce; modifying the commercial property assessed clean energy program;
making technical changes to various provisions governing or administered by the
Department of Commerce; 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; 45.0135, subdivision 7; 62Q.73, subdivision
3; 116J.396, by adding a subdivision; 216B.098, by adding a subdivision; 216B.16,
subdivisions 6c, 8; 216B.2402, subdivision 10, by adding a subdivision; 216B.2403,
subdivisions 2, 3, 5, 8; 216B.241, subdivisions 2, 11, 12; 216C.10; 216C.435,
subdivisions 3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4,
7, 8, 10; 325E.21, 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; 116C.779, subdivision
1; 144.197; 216C.08; 216C.09; 216C.435, subdivision 8; 216C.436, subdivisions
1b, 2; 325E.21, subdivision 1b; 342.72; Laws 2023, chapter 43, article 1, section
2, subdivisions 1, 2, 3, 4, 5; Laws 2023, chapter 63, article 9, sections 5; 10; 15,
subdivision 4; 20; proposing coding for new law in Minnesota Statutes, chapters
13; 58B; 62J; 216C; proposing coding for new law as Minnesota Statutes, chapter
325O; repealing Minnesota Statutes 2022, section 34.07.

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

ARTICLE 1

AGRICULTURE 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, Wabasha, or
Winona 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, Wabasha, or
Winona 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.

new text begin EFFECTIVE DATE. new text end

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

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.

new text begin EFFECTIVE DATE. new text end

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

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 gross 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, Wabasha,
or Winona 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 gross 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

ARTICLE 4

COMMERCE APPROPRIATIONS

Section 1.

Laws 2023, chapter 63, article 9, section 5, is amended to read:

Sec. 5. OFFICE OF CANNABIS MANAGEMENT

$

21,614,000

$

deleted text begin 17,953,000 deleted text end new text begin 20,680,000 new text end

The base for this appropriation is deleted text begin $35,587,000 deleted text end new text begin
$36,909,000 new text end in fiscal year 2026 and
deleted text begin $38,144,000 deleted text end new text begin $39,530,000 new text end in fiscal year 2027.

$1,000,000 the second year is for cannabis
industry community renewal grants under
Minnesota Statutes, section 342.70. Of these
amounts, up to three percent may be used for
administrative expenses. The base for this
appropriation is $15,000,000 in fiscal year
2026 and each fiscal year thereafter.

$1,000,000 each year is for transfer to the
CanGrow revolving loan account established
under Minnesota Statutes, section 342.73,
subdivision 4. Of these amounts, up to three
percent may be used for administrative
expenses.

new text begin $1,107,000 the second year is for temporary
regulation under the Health Enforcement
Consolidation Act of 1993 of edible products
extracted from hemp. This is a onetime
appropriation.
new text end

new text begin $771,000 the second year is for testing
products regulated under Minnesota Statutes,
section 151.72, and chapter 342. The base for
this appropriation is $690,000 in fiscal year
2026 and each year thereafter.
new text end

new text begin $849,000 the second year is for the Office of
Cannabis Management to operate a state
reference laboratory. The base for this
appropriation is $632,000 in fiscal year 2026
and $696,000 in fiscal year 2027.
new text end

Sec. 2.

Laws 2023, chapter 63, article 9, section 10, is amended to read:

Sec. 10. HEALTH

Subdivision 1. Total Appropriation

$

3,300,000

$

deleted text begin 20,252,000 deleted text end new text begin 23,025,000 new text end

The base for this appropriation is deleted text begin $19,064,000 deleted text end new text begin
$23,242,000 new text end in fiscal year 2026 and deleted text begin each fiscal
year thereafter deleted text end new text begin $23,178,000 in fiscal year
2027 new text end .

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

Subd. 2. Youth new text begin Prevention and new text end Education new text begin Program new text end

-0-

deleted text begin 5,000,000 deleted text end new text begin 4,363,000 new text end

For new text begin administration and new text end grants under Minnesota
Statutes, section 144.197, subdivision 1. new text begin Of
the amount appropriated, $2,863,000 is for
program operations and administration and
$1,500,000 is for grants. The base for this
appropriation is $4,534,000 in fiscal year 2026
and $4,470,000 in fiscal year 2027.
new text end

Subd. 3. new text begin Prevention and new text end Education deleted text begin Grants deleted text end for Pregnant or Breastfeeding Individuals

-0-

deleted text begin 2,000,000 deleted text end new text begin 1,788,000 new text end

For deleted text begin grants under deleted text end new text begin a coordinated prevention and
education program for pregnant and
breastfeeding individuals under new text end Minnesota
Statutes, section 144.197, subdivision 2. new text begin The
base for this appropriation is $1,834,000 in
fiscal year 2026 and each year thereafter.
new text end

Subd. 4. Local and Tribal Health Departments

-0-

10,000,000

For new text begin administration and new text end grants under Minnesota
Statutes, section 144.197, subdivision 4. new text begin Of
the amount appropriated, $1,094,000 is for
administration and $8,906,000 is for grants.
new text end

Subd. 5. Cannabis Data Collection and Biennial Reports

493,000

493,000

For reports under Minnesota Statutes, section
144.196.

Subd. 6. Administration for Expungement Orders

71,000

71,000

For administration related to orders issued by
the Cannabis Expungement Board. The base
for this appropriation is $71,000 in fiscal year
2026, $71,000 in fiscal year 2027, $71,000 in
fiscal year 2028, $71,000 in fiscal year 2029,
and $0 in fiscal year 2030.

Subd. 7. Grants to the Minnesota Poison Control System

910,000

810,000

For new text begin administration and new text end grants under Minnesota
Statutes, section 145.93. new text begin Of the amount
appropriated in fiscal year 2025, $15,000 is
for administration and $795,000 is for grants.
new text end

Subd. 8. Temporary Regulation of Edible Products Extracted from Hemp

1,107,000

deleted text begin 1,107,000 deleted text end new text begin -0- new text end

For temporary regulation under the health
enforcement consolidation act of edible
products extracted from hemp. new text begin The
commissioner may transfer encumbrances and
unobligated amounts from fiscal year 2024 to
the Office of Cannabis Management for this
purpose. new text end This is a onetime appropriation.

Subd. 9. Testing deleted text begin . deleted text end

719,000

deleted text begin 771,000 deleted text end new text begin -0- new text end

For testing of edible cannabinoid products.
deleted text begin The base for this appropriation is $690,000 in
fiscal year 2026 and each fiscal year thereafter. deleted text end new text begin
The commissioner may transfer encumbrances
and unobligated amounts from fiscal year 2024
to the Office of Cannabis Management for this
purpose.
new text end

new text begin Subd. 10. new text end new text begin Substance Use Treatment, Recovery, and Prevention new text end

new text begin -0- new text end

new text begin 5,500,000 new text end

new text begin For the purposes outlined in Minnesota
Statutes, section 342.72. The base for this
appropriation is $5,500,000 in fiscal year 2026
and each fiscal year thereafter.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to five percent of this appropriation for
administrative costs.
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 63, article 9, section 15, subdivision 4, is amended to read:

Subd. 4. Office of Traffic and Safety

11,485,000

6,117,000

(a) The base for this appropriation is
$5,000,000 in fiscal year 2026 and each fiscal
year thereafter.

(b) $10,000,000 the first year and $5,000,000
the second year are for the drug evaluation
and classification program for drug recognition
evaluator training; additional phlebotomists;
drug recognition training for peace officers,
as defined in Minnesota Statutes, section
626.84, subdivision 1, paragraph (c); and
required continuing education training for drug
recognition experts new text begin , program administration,
grants to local law enforcement divisions, and
making grants to eligible employers for drug
evaluation and classification training costs of
their staff new text end . The commissioner must make
reasonable efforts to reflect the geographic
diversity of the state in making expenditures
under this appropriation. new text begin This appropriation
is available until June 30, 2027.
new text end

(c) $1,485,000 the first year and $1,117,000
the second year are for a roadside testing pilot
project. These are onetime appropriations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 2023, chapter 63, article 9, section 20, is amended to read:

Sec. 20. TRANSFERS.

deleted text begin (a) deleted text end $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are transferred
from the general fund to the dual training account in the special revenue fund under
Minnesota Statutes, section 136A.246, subdivision 10, for grants to employers in the legal
cannabis industry. The base for this transfer is $1,000,000 in fiscal year 2026 and each fiscal
year thereafter. The commissioner may use up to six percent of the amount transferred for
administrative costs. The commissioner shall give priority to applications from employers
who are, or who are training employees who are, eligible to be social equity applicants
under Minnesota Statutes, section 342.17. After June 30, 2025, any unencumbered balance
from this transfer may be used for grants to any eligible employer under Minnesota Statutes,
section 136A.246.

deleted text begin (b) $5,500,000 in fiscal year 2024 and $5,500,000 in fiscal year 2025 are transferred
from the general fund to the substance use treatment, recovery, and prevention grant account
established under Minnesota Statutes, section 342.72. The base for this transfer is $5,500,000
in fiscal year 2026 and each fiscal year thereafter.
deleted 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. 5. new text begin DEPARTMENT OF COMMERCE.
new text end

new text begin The general fund base for the commissioner of commerce is increased by $47,000 in
fiscal year 2026 and each year thereafter for the commissioner of commerce to administer
and enforce Minnesota Statutes, section 325E.21, subdivision 2c.
new text end

Sec. 6. new text begin ATTORNEY GENERAL.
new text end

new text begin The general fund base for the attorney general is increased by $941,000 in fiscal year
2026 and $701,000 in fiscal year 2027 to enforce the Minnesota Consumer Data Privacy
Act under Minnesota Statutes, chapter 325O.
new text end

ARTICLE 5

MINNESOTA CONSUMER DATA PRIVACY ACT

Section 1.

new text begin [13.6505] ATTORNEY GENERAL DATA CODED ELSEWHERE.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The section referred to in this section is codified outside this
chapter. Those sections classify attorney general data as other than public, place restrictions
on access to government data, or involve data sharing.
new text end

new text begin Subd. 2. new text end

new text begin Data privacy and protection assessments. new text end

new text begin A data privacy and protection
assessment collected or maintained by the attorney general is classified under section
325O.08.
new text end

Sec. 2.

new text begin [325O.01] CITATION.
new text end

new text begin This chapter may be cited as the "Minnesota Consumer Data Privacy Act."
new text end

Sec. 3.

new text begin [325O.02] DEFINITIONS.
new text end

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

new text begin (b) "Affiliate" means a legal entity that controls, is controlled by, or is under common
control with another legal entity. For purposes of this paragraph, "control" or "controlled"
means: ownership of or the power to vote more than 50 percent of the outstanding shares
of any class of voting security of a company; control in any manner over the election of a
majority of the directors or of individuals exercising similar functions; or the power to
exercise a controlling influence over the management of a company.
new text end

new text begin (c) "Authenticate" means to use reasonable means to determine that a request to exercise
any of the rights under section 325O.05, subdivision 1, paragraphs (b) to (h), is being made
by or rightfully on behalf of the consumer who is entitled to exercise the rights with respect
to the personal data at issue.
new text end

new text begin (d) "Biometric data" means data generated by automatic measurements of an individual's
biological characteristics, including a fingerprint, a voiceprint, eye retinas, irises, or other
unique biological patterns or characteristics that are used to identify a specific individual.
Biometric data does not include:
new text end

new text begin (1) a digital or physical photograph;
new text end

new text begin (2) an audio or video recording; or
new text end

new text begin (3) any data generated from a digital or physical photograph, or an audio or video
recording, unless the data is generated to identify a specific individual.
new text end

new text begin (e) "Child" has the meaning given in United States Code, title 15, section 6501.
new text end

new text begin (f) "Consent" means any freely given, specific, informed, and unambiguous indication
of the consumer's wishes by which the consumer signifies agreement to the processing of
personal data relating to the consumer. Acceptance of a general or broad terms of use or
similar document that contains descriptions of personal data processing along with other,
unrelated information does not constitute consent. Hovering over, muting, pausing, or closing
a given piece of content does not constitute consent. A consent is not valid when the
consumer's indication has been obtained by a dark pattern. A consumer may revoke consent
previously given, consistent with this chapter.
new text end

new text begin (g) "Consumer" means a natural person who is a Minnesota resident acting only in an
individual or household context. Consumer does not include a natural person acting in a
commercial or employment context.
new text end

new text begin (h) "Controller" means the natural or legal person which, alone or jointly with others,
determines the purposes and means of the processing of personal data.
new text end

new text begin (i) "Decisions that produce legal or similarly significant effects concerning the consumer"
means decisions made by the controller that result in the provision or denial by the controller
of financial or lending services, housing, insurance, education enrollment or opportunity,
criminal justice, employment opportunities, health care services, or access to essential goods
or services.
new text end

new text begin (j) "Dark pattern" means a user interface designed or manipulated with the substantial
effect of subverting or impairing user autonomy, decision making, or choice.
new text end

new text begin (k) "Deidentified data" means data that cannot reasonably be used to infer information
about or otherwise be linked to an identified or identifiable natural person or a device linked
to an identified or identifiable natural person, provided that the controller that possesses the
data:
new text end

new text begin (1) takes reasonable measures to ensure that the data cannot be associated with a natural
person;
new text end

new text begin (2) publicly commits to process the data only in a deidentified fashion and not attempt
to reidentify the data; and
new text end

new text begin (3) contractually obligates any recipients of the information to comply with all provisions
of this paragraph.
new text end

new text begin (l) "Delete" means to remove or destroy information so that it is not maintained in human-
or machine-readable form and cannot be retrieved or utilized in the ordinary course of
business.
new text end

new text begin (m) "Genetic information" has the meaning given in section 13.386, subdivision 1.
new text end

new text begin (n) "Identified or identifiable natural person" means a person who can be readily
identified, directly or indirectly.
new text end

new text begin (o) "Known child" means a person under circumstances where a controller has actual
knowledge of, or willfully disregards, that the person is under 13 years of age.
new text end

new text begin (p) "Personal data" means any information that is linked or reasonably linkable to an
identified or identifiable natural person. Personal data does not include deidentified data or
publicly available information. For purposes of this paragraph, "publicly available
information" means information that (1) is lawfully made available from federal, state, or
local government records or widely distributed media, or (2) a controller has a reasonable
basis to believe has lawfully been made available to the general public.
new text end

new text begin (q) "Process" or "processing" means any operation or set of operations that are performed
on personal data or on sets of personal data, whether or not by automated means, including
but not limited to the collection, use, storage, disclosure, analysis, deletion, or modification
of personal data.
new text end

new text begin (r) "Processor" means a natural or legal person who processes personal data on behalf
of a controller.
new text end

new text begin (s) "Profiling" means any form of automated processing of personal data to evaluate,
analyze, or predict personal aspects related to an identified or identifiable natural person's
economic situation, health, personal preferences, interests, reliability, behavior, location,
or movements.
new text end

new text begin (t) "Pseudonymous data" means personal data that cannot be attributed to a specific
natural person without the use of additional information, provided that the additional
information is kept separately and is subject to appropriate technical and organizational
measures to ensure that the personal data are not attributed to an identified or identifiable
natural person.
new text end

new text begin (u) "Sale," "sell," or "sold" means the exchange of personal data for monetary or other
valuable consideration by the controller to a third party. Sale does not include the following:
new text end

new text begin (1) the disclosure of personal data to a processor who processes the personal data on
behalf of the controller;
new text end

new text begin (2) the disclosure of personal data to a third party for purposes of providing a product
or service requested by the consumer;
new text end

new text begin (3) the disclosure or transfer of personal data to an affiliate of the controller;
new text end

new text begin (4) the disclosure of information that the consumer intentionally made available to the
general public via a channel of mass media and did not restrict to a specific audience;
new text end

new text begin (5) the disclosure or transfer of personal data to a third party as an asset that is part of a
completed or proposed merger, acquisition, bankruptcy, or other transaction in which the
third party assumes control of all or part of the controller's assets; or
new text end

new text begin (6) the exchange of personal data between the producer of a good or service and
authorized agents of the producer who sell and service the goods and services, to enable
the cooperative provisioning of goods and services by both the producer and the producer's
agents.
new text end

new text begin (v) Sensitive data is a form of personal data. "Sensitive data" means:
new text end

new text begin (1) personal data revealing racial or ethnic origin, religious beliefs, mental or physical
health condition or diagnosis, sexual orientation, or citizenship or immigration status;
new text end

new text begin (2) the processing of biometric data or genetic information for the purpose of uniquely
identifying an individual;
new text end

new text begin (3) the personal data of a known child; or
new text end

new text begin (4) specific geolocation data.
new text end

new text begin (w) "Specific geolocation data" means information derived from technology, including
but not limited to global positioning system level latitude and longitude coordinates or other
mechanisms, that directly identifies the geographic coordinates of a consumer or a device
linked to a consumer with an accuracy of more than three decimal degrees of latitude and
longitude or the equivalent in an alternative geographic coordinate system, or a street address
derived from the coordinates. Specific geolocation data does not include the content of
communications, the contents of databases containing street address information which are
accessible to the public as authorized by law, or any data generated by or connected to
advanced utility metering infrastructure systems or other equipment for use by a public
utility.
new text end

new text begin (x) "Targeted advertising" means displaying advertisements to a consumer where the
advertisement is selected based on personal data obtained or inferred from the consumer's
activities over time and across nonaffiliated websites or online applications to predict the
consumer's preferences or interests. Targeted advertising does not include:
new text end

new text begin (1) advertising based on activities within a controller's own websites or online
applications;
new text end

new text begin (2) advertising based on the context of a consumer's current search query or visit to a
website or online application;
new text end

new text begin (3) advertising to a consumer in response to the consumer's request for information or
feedback; or
new text end

new text begin (4) processing personal data solely for measuring or reporting advertising performance,
reach, or frequency.
new text end

new text begin (y) "Third party" means a natural or legal person, public authority, agency, or body other
than the consumer, controller, processor, or an affiliate of the processor or the controller.
new text end

new text begin (z) "Trade secret" has the meaning given in section 325C.01, subdivision 5.
new text end

Sec. 4.

new text begin [325O.03] SCOPE; EXCLUSIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) This chapter applies to legal entities that conduct business in
Minnesota or produce products or services that are targeted to residents of Minnesota, and
that satisfy one or more of the following thresholds:
new text end

new text begin (1) during a calendar year, controls or processes personal data of 100,000 consumers or
more, excluding personal data controlled or processed solely for the purpose of completing
a payment transaction; or
new text end

new text begin (2) derives over 25 percent of gross revenue from the sale of personal data and processes
or controls personal data of 25,000 consumers or more.
new text end

new text begin (b) A controller or processor acting as a technology provider under section 13.32 shall
comply with this chapter and section 13.32, except that when the provisions of section 13.32
conflict with this chapter, section 13.32 prevails.
new text end

new text begin Subd. 2. new text end

new text begin Exclusions. new text end

new text begin (a) This chapter does not apply to the following entities, activities,
or types of information:
new text end

new text begin (1) a government entity, as defined by section 13.02, subdivision 7a;
new text end

new text begin (2) a federally recognized Indian tribe;
new text end

new text begin (3) information that meets the definition of:
new text end

new text begin (i) protected health information, as defined by and for purposes of the Health Insurance
Portability and Accountability Act of 1996, Public Law 104-191, and related regulations;
new text end

new text begin (ii) health records, as defined in section 144.291, subdivision 2;
new text end

new text begin (iii) patient identifying information for purposes of Code of Federal Regulations, title
42, part 2, established pursuant to United States Code, title 42, section 290dd-2;
new text end

new text begin (iv) identifiable private information for purposes of the federal policy for the protection
of human subjects, Code of Federal Regulations, title 45, part 46; identifiable private
information that is otherwise information collected as part of human subjects research
pursuant to the good clinical practice guidelines issued by the International Council for
Harmonisation; the protection of human subjects under Code of Federal Regulations, title
21, parts 50 and 56; or personal data used or shared in research conducted in accordance
with one or more of the requirements set forth in this paragraph;
new text end

new text begin (v) information and documents created for purposes of the federal Health Care Quality
Improvement Act of 1986, Public Law 99-660, and related regulations; or
new text end

new text begin (vi) patient safety work product for purposes of Code of Federal Regulations, title 42,
part 3, established pursuant to United States Code, title 42, sections 299b-21 to 299b-26;
new text end

new text begin (4) information that is derived from any of the health care-related information listed in
clause (3), but that has been deidentified in accordance with the requirements for
deidentification set forth in Code of Federal Regulations, title 45, part 164;
new text end

new text begin (5) information originating from, and intermingled to be indistinguishable with, any of
the health care-related information listed in clause (3) that is maintained by:
new text end

new text begin (i) a covered entity or business associate, as defined by the Health Insurance Portability
and Accountability Act of 1996, Public Law 104-191, and related regulations;
new text end

new text begin (ii) a health care provider, as defined in section 144.291, subdivision 2; or
new text end

new text begin (iii) a program or a qualified service organization, as defined by Code of Federal
Regulations, title 42, part 2, established pursuant to United States Code, title 42, section
290dd-2;
new text end

new text begin (6) information that is:
new text end

new text begin (i) maintained by an entity that meets the definition of health care provider under Code
of Federal Regulations, title 45, section 160.103, to the extent that the entity maintains the
information in the manner required of covered entities with respect to protected health
information for purposes of the Health Insurance Portability and Accountability Act of
1996, Public Law 104-191, and related regulations;
new text end

new text begin (ii) included in a limited data set, as described under Code of Federal Regulations, title
45, part 164.514(e), to the extent that the information is used, disclosed, and maintained in
the manner specified by that part;
new text end

new text begin (iii) maintained by, or maintained to comply with the rules or orders of, a self-regulatory
organization as defined by United States Code, title 15, section 78c(a)(26); or
new text end

new text begin (iv) originated from, or intermingled with, information described in clause (9) and that
a licensed residential mortgage originator, as defined under section 58.02, subdivision 19,
or residential mortgage servicer, as defined under section 58.02, subdivision 20, collects,
processes, uses, or maintains in the same manner as required under the laws and regulations
specified in clause (9);
new text end

new text begin (7) information used only for public health activities and purposes, as described in Code
of Federal Regulations, title 45, part 164.512;
new text end

new text begin (8) an activity involving the collection, maintenance, disclosure, sale, communication,
or use of any personal data bearing on a consumer's credit worthiness, credit standing, credit
capacity, character, general reputation, personal characteristics, or mode of living by a
consumer reporting agency, as defined in United States Code, title 15, section 1681a(f), by
a furnisher of information, as set forth in United States Code, title 15, section 1681s-2, who
provides information for use in a consumer report, as defined in United States Code, title
15, section 1681a(d), and by a user of a consumer report, as set forth in United States Code,
title 15, section 1681b, except that information is only excluded under this paragraph to the
extent that the activity involving the collection, maintenance, disclosure, sale, communication,
or use of the information by the agency, furnisher, or user is subject to regulation under the
federal Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x, and
the information is not collected, maintained, used, communicated, disclosed, or sold except
as authorized by the Fair Credit Reporting Act;
new text end

new text begin (9) personal data collected, processed, sold, or disclosed pursuant to the federal
Gramm-Leach-Bliley Act, Public Law 106-102, and implementing regulations, if the
collection, processing, sale, or disclosure is in compliance with that law;
new text end

new text begin (10) personal data collected, processed, sold, or disclosed pursuant to the federal Driver's
Privacy Protection Act of 1994, United States Code, title 18, sections 2721 to 2725, if the
collection, processing, sale, or disclosure is in compliance with that law;
new text end

new text begin (11) personal data regulated by the federal Family Educational Rights and Privacy Act,
United States Code, title 20, section 1232g, and implementing regulations;
new text end

new text begin (12) personal data collected, processed, sold, or disclosed pursuant to the federal Farm
Credit Act of 1971, as amended, United States Code, title 12, sections 2001 to 2279cc, and
implementing regulations, Code of Federal Regulations, title 12, part 600, if the collection,
processing, sale, or disclosure is in compliance with that law;
new text end

new text begin (13) data collected or maintained:
new text end

new text begin (i) in the course of an individual acting as a job applicant to or an employee, owner,
director, officer, medical staff member, or contractor of a business if the data is collected
and used solely within the context of the role;
new text end

new text begin (ii) as the emergency contact information of an individual under item (i) if used solely
for emergency contact purposes; or
new text end

new text begin (iii) that is necessary for the business to retain to administer benefits for another individual
relating to the individual under item (i) if used solely for the purposes of administering those
benefits;
new text end

new text begin (14) personal data collected, processed, sold, or disclosed pursuant to the Minnesota
Insurance Fair Information Reporting Act in sections 72A.49 to 72A.505;
new text end

new text begin (15) data collected, processed, sold, or disclosed as part of a payment-only credit, check,
or cash transaction where no data about consumers, as defined in section 325O.02, are
retained;
new text end

new text begin (16) a state or federally chartered bank or credit union, or an affiliate or subsidiary that
is principally engaged in financial activities, as described in United States Code, title 12,
section 1843(k);
new text end

new text begin (17) information that originates from, or is intermingled so as to be indistinguishable
from, information described in clause (8) and that a person licensed under chapter 56 collects,
processes, uses, or maintains in the same manner as is required under the laws and regulations
specified in clause (8);
new text end

new text begin (18) an insurance company, as defined in section 60A.02, subdivision 4, an insurance
producer, as defined in section 60K.31, subdivision 6, a third-party administrator of
self-insurance, or an affiliate or subsidiary of any entity identified in this clause that is
principally engaged in financial activities, as described in United States Code, title 12,
section 1843(k), except that this clause does not apply to a person that, alone or in
combination with another person, establishes and maintains a self-insurance program that
does not otherwise engage in the business of entering into policies of insurance;
new text end

new text begin (19) a small business, as defined by the United States Small Business Administration
under Code of Federal Regulations, title 13, part 121, except that a small business identified
in this clause is subject to section 325O.075;
new text end

new text begin (20) a nonprofit organization that is established to detect and prevent fraudulent acts in
connection with insurance; and
new text end

new text begin (21) an air carrier subject to the federal Airline Deregulation Act, Public Law 95-504,
only to the extent that an air carrier collects personal data related to prices, routes, or services
and only to the extent that the provisions of the Airline Deregulation Act preempt the
requirements of this chapter.
new text end

new text begin (b) Controllers that are in compliance with the Children's Online Privacy Protection Act,
United States Code, title 15, sections 6501 to 6506, and implementing regulations, shall be
deemed compliant with any obligation to obtain parental consent under this chapter.
new text end

Sec. 5.

new text begin [325O.04] RESPONSIBILITY ACCORDING TO ROLE.
new text end

new text begin (a) Controllers and processors are responsible for meeting the respective obligations
established under this chapter.
new text end

new text begin (b) Processors are responsible under this chapter for adhering to the instructions of the
controller and assisting the controller to meet the controller's obligations under this chapter.
Assistance under this paragraph shall include the following:
new text end

new text begin (1) taking into account the nature of the processing, the processor shall assist the controller
by appropriate technical and organizational measures, insofar as this is possible, for the
fulfillment of the controller's obligation to respond to consumer requests to exercise their
rights pursuant to section 325O.05; and
new text end

new text begin (2) taking into account the nature of processing and the information available to the
processor, the processor shall assist the controller in meeting the controller's obligations in
relation to the security of processing the personal data and in relation to the notification of
a breach of the security of the system pursuant to section 325E.61, and shall provide
information to the controller necessary to enable the controller to conduct and document
any data privacy and protection assessments required by section 325O.08.
new text end

new text begin (c) A contract between a controller and a processor shall govern the processor's data
processing procedures with respect to processing performed on behalf of the controller. The
contract shall be binding and clearly set forth instructions for processing data, the nature
and purpose of processing, the type of data subject to processing, the duration of processing,
and the rights and obligations of both parties. The contract shall also require that the
processor:
new text end

new text begin (1) ensure that each person processing the personal data is subject to a duty of
confidentiality with respect to the data; and
new text end

new text begin (2) engage a subcontractor only (i) after providing the controller with an opportunity to
object, and (ii) pursuant to a written contract in accordance with paragraph (e) that requires
the subcontractor to meet the obligations of the processor with respect to the personal data.
new text end

new text begin (d) Taking into account the context of processing, the controller and the processor shall
implement appropriate technical and organizational measures to ensure a level of security
appropriate to the risk and establish a clear allocation of the responsibilities between the
controller and the processor to implement the technical and organizational measures.
new text end

new text begin (e) Processing by a processor shall be governed by a contract between the controller and
the processor that is binding on both parties and that sets out the processing instructions to
which the processor is bound, including the nature and purpose of the processing, the type
of personal data subject to the processing, the duration of the processing, and the obligations
and rights of both parties. The contract shall include the requirements imposed by this
paragraph, paragraphs (c) and (d), as well as the following requirements:
new text end

new text begin (1) at the choice of the controller, the processor shall delete or return all personal data
to the controller as requested at the end of the provision of services, unless retention of the
personal data is required by law;
new text end

new text begin (2) upon a reasonable request from the controller, the processor shall make available to
the controller all information necessary to demonstrate compliance with the obligations in
this chapter; and
new text end

new text begin (3) the processor shall allow for, and contribute to, reasonable assessments and inspections
by the controller or the controller's designated assessor. Alternatively, the processor may
arrange for a qualified and independent assessor to conduct, at least annually and at the
processor's expense, an assessment of the processor's policies and technical and organizational
measures in support of the obligations under this chapter. The assessor must use an
appropriate and accepted control standard or framework and assessment procedure for
assessments as applicable, and shall provide a report of an assessment to the controller upon
request.
new text end

new text begin (f) In no event shall any contract relieve a controller or a processor from the liabilities
imposed on a controller or processor by virtue of the controller's or processor's roles in the
processing relationship under this chapter.
new text end

new text begin (g) Determining whether a person is acting as a controller or processor with respect to
a specific processing of data is a fact-based determination that depends upon the context in
which personal data are to be processed. A person that is not limited in the person's processing
of personal data pursuant to a controller's instructions, or that fails to adhere to a controller's
instructions, is a controller and not a processor with respect to a specific processing of data.
A processor that continues to adhere to a controller's instructions with respect to a specific
processing of personal data remains a processor. If a processor begins, alone or jointly with
others, determining the purposes and means of the processing of personal data, the processor
is a controller with respect to the processing.
new text end

Sec. 6.

new text begin [325O.05] CONSUMER PERSONAL DATA RIGHTS.
new text end

new text begin Subdivision 1. new text end

new text begin Consumer rights provided. new text end

new text begin (a) Except as provided in this chapter, a
controller must comply with a request to exercise the consumer rights provided in this
subdivision.
new text end

new text begin (b) A consumer has the right to confirm whether or not a controller is processing personal
data concerning the consumer and access the categories of personal data the controller is
processing.
new text end

new text begin (c) A consumer has the right to correct inaccurate personal data concerning the consumer,
taking into account the nature of the personal data and the purposes of the processing of the
personal data.
new text end

new text begin (d) A consumer has the right to delete personal data concerning the consumer.
new text end

new text begin (e) A consumer has the right to obtain personal data concerning the consumer, which
the consumer previously provided to the controller, in a portable and, to the extent technically
feasible, readily usable format that allows the consumer to transmit the data to another
controller without hindrance, where the processing is carried out by automated means.
new text end

new text begin (f) A consumer has the right to opt out of the processing of personal data concerning
the consumer for purposes of targeted advertising, the sale of personal data, or profiling in
furtherance of automated decisions that produce legal effects concerning a consumer or
similarly significant effects concerning a consumer.
new text end

new text begin (g) If a consumer's personal data is profiled in furtherance of decisions that produce
legal effects concerning a consumer or similarly significant effects concerning a consumer,
the consumer has the right to question the result of the profiling, to be informed of the reason
that the profiling resulted in the decision, and, if feasible, to be informed of what actions
the consumer might have taken to secure a different decision and the actions that the
consumer might take to secure a different decision in the future. The consumer has the right
to review the consumer's personal data used in the profiling. If the decision is determined
to have been based upon inaccurate personal data, taking into account the nature of the
personal data and the purposes of the processing of the personal data, the consumer has the
right to have the data corrected and the profiling decision reevaluated based upon the
corrected data.
new text end

new text begin (h) A consumer has a right to obtain a list of the specific third parties to which the
controller has disclosed the consumer's personal data. If the controller does not maintain
the information in a format specific to the consumer, a list of specific third parties to whom
the controller has disclosed any consumers' personal data may be provided instead.
new text end

new text begin Subd. 2. new text end

new text begin Exercising consumer rights. new text end

new text begin (a) A consumer may exercise the rights set forth
in this section by submitting a request, at any time, to a controller specifying which rights
the consumer wishes to exercise.
new text end

new text begin (b) In the case of processing personal data concerning a known child, the parent or legal
guardian of the known child may exercise the rights of this chapter on the child's behalf.
new text end

new text begin (c) In the case of processing personal data concerning a consumer legally subject to
guardianship or conservatorship under sections 524.5-101 to 524.5-502, the guardian or the
conservator of the consumer may exercise the rights of this chapter on the consumer's behalf.
new text end

new text begin (d) A consumer may designate another person as the consumer's authorized agent to
exercise the consumer's right to opt out of the processing of the consumer's personal data
for purposes of targeted advertising and sale under subdivision 1, paragraph (f), on the
consumer's behalf. A consumer may designate an authorized agent by way of, among other
things, a technology, including but not limited to an Internet link or a browser setting,
browser extension, or global device setting, indicating the consumer's intent to opt out of
the processing. A controller shall comply with an opt-out request received from an authorized
agent if the controller is able to verify, with commercially reasonable effort, the identity of
the consumer and the authorized agent's authority to act on the consumer's behalf.
new text end

new text begin Subd. 3. new text end

new text begin Universal opt-out mechanisms. new text end

new text begin (a) A controller must allow a consumer to opt
out of any processing of the consumer's personal data for the purposes of targeted advertising,
or any sale of the consumer's personal data through an opt-out preference signal sent, with
the consumer's consent, by a platform, technology, or mechanism to the controller indicating
the consumer's intent to opt out of any processing or sale. The platform, technology, or
mechanism must:
new text end

new text begin (1) not unfairly disadvantage another controller;
new text end

new text begin (2) not make use of a default setting, but require the consumer to make an affirmative,
freely given, and unambiguous choice to opt out of any processing of the consumer's personal
data;
new text end

new text begin (3) be consumer-friendly and easy to use by the average consumer;
new text end

new text begin (4) be as consistent as possible with any other similar platform, technology, or mechanism
required by any federal or state law or regulation; and
new text end

new text begin (5) enable the controller to accurately determine whether the consumer is a Minnesota
resident and whether the consumer has made a legitimate request to opt out of any sale of
the consumer's personal data or targeted advertising. For purposes of this paragraph, the
use of an Internet protocol address to estimate the consumer's location is sufficient to
determine the consumer's residence.
new text end

new text begin (b) If a consumer's opt-out request is exercised through the platform, technology, or
mechanism required under paragraph (a), and the request conflicts with the consumer's
existing controller-specific privacy setting or voluntary participation in a controller's bona
fide loyalty, rewards, premium features, discounts, or club card program, the controller
must comply with the consumer's opt-out preference signal but may also notify the consumer
of the conflict and provide the consumer a choice to confirm the controller-specific privacy
setting or participation in the controller's program.
new text end

new text begin (c) The platform, technology, or mechanism required under paragraph (a) is subject to
the requirements of subdivision 4.
new text end

new text begin (d) A controller that recognizes opt-out preference signals that have been approved by
other state laws or regulations is in compliance with this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Controller response to consumer requests. new text end

new text begin (a) Except as provided in this
chapter, a controller must comply with a request to exercise the rights pursuant to subdivision
1.
new text end

new text begin (b) A controller must provide one or more secure and reliable means for consumers to
submit a request to exercise the consumer rights under this section. The means made available
must take into account the ways in which consumers interact with the controller and the
need for secure and reliable communication of the requests.
new text end

new text begin (c) A controller may not require a consumer to create a new account in order to exercise
a right, but a controller may require a consumer to use an existing account to exercise the
consumer's rights under this section.
new text end

new text begin (d) A controller must comply with a request to exercise the right in subdivision 1,
paragraph (f), as soon as feasibly possible, but no later than 45 days of receipt of the request.
new text end

new text begin (e) A controller must inform a consumer of any action taken on a request under
subdivision 1 without undue delay and in any event within 45 days of receipt of the request.
That period may be extended once by 45 additional days where reasonably necessary, taking
into account the complexity and number of the requests. The controller must inform the
consumer of any extension within 45 days of receipt of the request, together with the reasons
for the delay.
new text end

new text begin (f) If a controller does not take action on a consumer's request, the controller must inform
the consumer without undue delay and at the latest within 45 days of receipt of the request
of the reasons for not taking action and instructions for how to appeal the decision with the
controller as described in subdivision 3.
new text end

new text begin (g) Information provided under this section must be provided by the controller free of
charge, up to twice annually to the consumer. Where requests from a consumer are manifestly
unfounded or excessive, in particular because of the repetitive character of the requests, the
controller may either charge a reasonable fee to cover the administrative costs of complying
with the request, or refuse to act on the request. The controller bears the burden of
demonstrating the manifestly unfounded or excessive character of the request.
new text end

new text begin (h) A controller is not required to comply with a request to exercise any of the rights
under subdivision 1, paragraphs (b) to (h), if the controller is unable to authenticate the
request using commercially reasonable efforts. In such cases, the controller may request
the provision of additional information reasonably necessary to authenticate the request. A
controller is not required to authenticate an opt-out request, but a controller may deny an
opt-out request if the controller has a good faith, reasonable, and documented belief that
the request is fraudulent. If a controller denies an opt-out request because the controller
believes a request is fraudulent, the controller must notify the person who made the request
that the request was denied due to the controller's belief that the request was fraudulent and
state the controller's basis for that belief.
new text end

new text begin (i) In response to a consumer request under subdivision 1, a controller must not disclose
the following information about a consumer, but must instead inform the consumer with
sufficient particularity that the controller has collected that type of information:
new text end

new text begin (1) Social Security number;
new text end

new text begin (2) driver's license number or other government-issued identification number;
new text end

new text begin (3) financial account number;
new text end

new text begin (4) health insurance account number or medical identification number;
new text end

new text begin (5) account password, security questions, or answers; or
new text end

new text begin (6) biometric data.
new text end

new text begin (j) In response to a consumer request under subdivision 1, a controller is not required
to reveal any trade secret.
new text end

new text begin (k) A controller that has obtained personal data about a consumer from a source other
than the consumer may comply with a consumer's request to delete the consumer's personal
data pursuant to subdivision 1, paragraph (d), by either:
new text end

new text begin (1) retaining a record of the deletion request, retaining the minimum data necessary for
the purpose of ensuring the consumer's personal data remains deleted from the business's
records, and not using the retained data for any other purpose pursuant to the provisions of
this chapter; or
new text end

new text begin (2) opting the consumer out of the processing of personal data for any purpose except
for the purposes exempted pursuant to the provisions of this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Appeal process required. new text end

new text begin (a) A controller must establish an internal process
whereby a consumer may appeal a refusal to take action on a request to exercise any of the
rights under subdivision 1 within a reasonable period of time after the consumer's receipt
of the notice sent by the controller under subdivision 3, paragraph (f).
new text end

new text begin (b) The appeal process must be conspicuously available. The process must include the
ease of use provisions in subdivision 3 applicable to submitting requests.
new text end

new text begin (c) Within 45 days of receipt of an appeal, a controller must inform the consumer of any
action taken or not taken in response to the appeal, along with a written explanation of the
reasons in support thereof. That period may be extended by 60 additional days where
reasonably necessary, taking into account the complexity and number of the requests serving
as the basis for the appeal. The controller must inform the consumer of any extension within
45 days of receipt of the appeal, together with the reasons for the delay.
new text end

new text begin (d) When informing a consumer of any action taken or not taken in response to an appeal
pursuant to paragraph (c), the controller must provide a written explanation of the reasons
for the controller's decision and clearly and prominently provide the consumer with
information about how to file a complaint with the Office of the Attorney General. The
controller must maintain records of all appeals and the controller's responses for at least 24
months and shall, upon written request by the attorney general as part of an investigation,
compile and provide a copy of the records to the attorney general.
new text end

Sec. 7.

new text begin [325O.06] PROCESSING DEIDENTIFIED DATA OR PSEUDONYMOUS
DATA.
new text end

new text begin (a) This chapter does not require a controller or processor to do any of the following
solely for purposes of complying with this chapter:
new text end

new text begin (1) reidentify deidentified data;
new text end

new text begin (2) maintain data in identifiable form, or collect, obtain, retain, or access any data or
technology, in order to be capable of associating an authenticated consumer request with
personal data; or
new text end

new text begin (3) comply with an authenticated consumer request to access, correct, delete, or port
personal data pursuant to section 325O.05, subdivision 1, if all of the following are true:
new text end

new text begin (i) the controller is not reasonably capable of associating the request with the personal
data, or it would be unreasonably burdensome for the controller to associate the request
with the personal data;
new text end

new text begin (ii) the controller does not use the personal data to recognize or respond to the specific
consumer who is the subject of the personal data, or associate the personal data with other
personal data about the same specific consumer; and
new text end

new text begin (iii) the controller does not sell the personal data to any third party or otherwise
voluntarily disclose the personal data to any third party other than a processor, except as
otherwise permitted in this section.
new text end

new text begin (b) The rights contained in section 325O.05, subdivision 1, paragraphs (b) to (h), do not
apply to pseudonymous data in cases where the controller is able to demonstrate any
information necessary to identify the consumer is kept separately and is subject to effective
technical and organizational controls that prevent the controller from accessing the
information.
new text end

new text begin (c) A controller that uses pseudonymous data or deidentified data must exercise reasonable
oversight to monitor compliance with any contractual commitments to which the
pseudonymous data or deidentified data are subject, and must take appropriate steps to
address any breaches of contractual commitments.
new text end

new text begin (d) A processor or third party must not attempt to identify the subjects of deidentified
or pseudonymous data without the express authority of the controller that caused the data
to be deidentified or pseudonymized.
new text end

new text begin (e) A controller, processor, or third party must not attempt to identify the subjects of
data that has been collected with only pseudonymous identifiers.
new text end

Sec. 8.

new text begin [325O.07] RESPONSIBILITIES OF CONTROLLERS.
new text end

new text begin Subdivision 1. new text end

new text begin Transparency obligations. new text end

new text begin (a) Controllers must provide consumers with
a reasonably accessible, clear, and meaningful privacy notice that includes:
new text end

new text begin (1) the categories of personal data processed by the controller;
new text end

new text begin (2) the purposes for which the categories of personal data are processed;
new text end

new text begin (3) an explanation of the rights contained in section 325O.05 and how and where
consumers may exercise those rights, including how a consumer may appeal a controller's
action with regard to the consumer's request;
new text end

new text begin (4) the categories of personal data that the controller sells to or shares with third parties,
if any;
new text end

new text begin (5) the categories of third parties, if any, with whom the controller sells or shares personal
data;
new text end

new text begin (6) the controller's contact information, including an active email address or other online
mechanism that the consumer may use to contact the controller;
new text end

new text begin (7) a description of the controller's retention policies for personal data; and
new text end

new text begin (8) the date the privacy notice was last updated.
new text end

new text begin (b) If a controller sells personal data to third parties, processes personal data for targeted
advertising, or engages in profiling in furtherance of decisions that produce legal effects
concerning a consumer or similarly significant effects concerning a consumer, the controller
must disclose the processing in the privacy notice and provide access to a clear and
conspicuous method outside the privacy notice for a consumer to opt out of the sale,
processing, or profiling in furtherance of decisions that produce legal effects concerning a
consumer or similarly significant effects concerning a consumer. This method may include
but is not limited to an internet hyperlink clearly labeled "Your Opt-Out Rights" or "Your
Privacy Rights" that directly effectuates the opt-out request or takes consumers to a web
page where the consumer can make the opt-out request.
new text end

new text begin (c) The privacy notice must be made available to the public in each language in which
the controller provides a product or service that is subject to the privacy notice or carries
out activities related to the product or service.
new text end

new text begin (d) The controller must provide the privacy notice in a manner that is reasonably
accessible to and usable by individuals with disabilities.
new text end

new text begin (e) Whenever a controller makes a material change to the controller's privacy notice or
practices, the controller must notify consumers affected by the material change with respect
to any prospectively collected personal data and provide a reasonable opportunity for
consumers to withdraw consent to any further materially different collection, processing,
or transfer of previously collected personal data under the changed policy. The controller
shall take all reasonable electronic measures to provide notification regarding material
changes to affected consumers, taking into account available technology and the nature of
the relationship.
new text end

new text begin (f) A controller is not required to provide a separate Minnesota-specific privacy notice
or section of a privacy notice if the controller's general privacy notice contains all the
information required by this section.
new text end

new text begin (g) The privacy notice must be posted online through a conspicuous hyperlink using the
word "privacy" on the controller's website home page or on a mobile application's app store
page or download page. A controller that maintains an application on a mobile or other
device shall also include a hyperlink to the privacy notice in the application's settings menu
or in a similarly conspicuous and accessible location. A controller that does not operate a
website shall make the privacy notice conspicuously available to consumers through a
medium regularly used by the controller to interact with consumers, including but not limited
to mail.
new text end

new text begin Subd. 2. new text end

new text begin Use of data. new text end

new text begin (a) A controller must limit the collection of personal data to what
is adequate, relevant, and reasonably necessary in relation to the purposes for which the
data are processed, which must be disclosed to the consumer.
new text end

new text begin (b) Except as provided in this chapter, a controller may not process personal data for
purposes that are not reasonably necessary to, or compatible with, the purposes for which
the personal data are processed, as disclosed to the consumer, unless the controller obtains
the consumer's consent.
new text end

new text begin (c) A controller shall establish, implement, and maintain reasonable administrative,
technical, and physical data security practices to protect the confidentiality, integrity, and
accessibility of personal data, including the maintenance of an inventory of the data that
must be managed to exercise these responsibilities. The data security practices shall be
appropriate to the volume and nature of the personal data at issue.
new text end

new text begin (d) Except as otherwise provided in this act, a controller may not process sensitive data
concerning a consumer without obtaining the consumer's consent, or, in the case of the
processing of personal data concerning a known child, without obtaining consent from the
child's parent or lawful guardian, in accordance with the requirement of the Children's
Online Privacy Protection Act, United States Code, title 15, sections 6501 to 6506, and its
implementing regulations, rules, and exemptions.
new text end

new text begin (e) A controller shall provide an effective mechanism for a consumer, or, in the case of
the processing of personal data concerning a known child, the child's parent or lawful
guardian, to revoke previously given consent under this subdivision. The mechanism provided
shall be at least as easy as the mechanism by which the consent was previously given. Upon
revocation of consent, a controller shall cease to process the applicable data as soon as
practicable, but not later than 15 days after the receipt of the request.
new text end

new text begin (f) A controller may not process the personal data of a consumer for purposes of targeted
advertising, or sell the consumer's personal data, without the consumer's consent, under
circumstances where the controller knows that the consumer is between the ages of 13 and
16.
new text end

new text begin (g) A controller may not retain personal data that is no longer relevant and reasonably
necessary in relation to the purposes for which the data were collected and processed, unless
retention of the data is otherwise required by law or permitted under section 325O.09.
new text end

new text begin Subd. 3. new text end

new text begin Nondiscrimination. new text end

new text begin (a) A controller shall not process personal data on the
basis of a consumer's or a class of consumers' actual or perceived race, color, ethnicity,
religion, national origin, sex, gender, gender identity, sexual orientation, familial status,
lawful source of income, or disability in a manner that unlawfully discriminates against the
consumer or class of consumers with respect to the offering or provision of: housing,
employment, credit, or education; or the goods, services, facilities, privileges, advantages,
or accommodations of any place of public accommodation.
new text end

new text begin (b) A controller may not discriminate against a consumer for exercising any of the rights
contained in this chapter, including denying goods or services to the consumer, charging
different prices or rates for goods or services, and providing a different level of quality of
goods and services to the consumer. This subdivision does not: (1) require a controller to
provide a good or service that requires the personal data of a consumer that the controller
does not collect or maintain; or (2) prohibit a controller from offering a different price, rate,
level, quality, or selection of goods or services to a consumer, including offering goods or
services for no fee, if the offering is in connection with a consumer's voluntary participation
in a bona fide loyalty, rewards, premium features, discounts, or club card program.
new text end

new text begin (c) A controller may not sell personal data to a third-party controller as part of a bona
fide loyalty, rewards, premium features, discounts, or club card program under paragraph
(b) unless:
new text end

new text begin (1) the sale is reasonably necessary to enable the third party to provide a benefit to which
the consumer is entitled;
new text end

new text begin (2) the sale of personal data to third parties is clearly disclosed in the terms of the
program; and
new text end

new text begin (3) the third party uses the personal data only for purposes of facilitating a benefit to
which the consumer is entitled and does not retain or otherwise use or disclose the personal
data for any other purpose.
new text end

new text begin Subd. 4. new text end

new text begin Waiver of rights unenforceable. new text end

new text begin Any provision of a contract or agreement of
any kind that purports to waive or limit in any way a consumer's rights under this chapter
is contrary to public policy and is void and unenforceable.
new text end

Sec. 9.

new text begin [325O.075] REQUIREMENTS FOR SMALL BUSINESSES.
new text end

new text begin (a) A small business, as defined by the United States Small Business Administration
under Code of Federal Regulations, title 13, part 121, that conducts business in Minnesota
or produces products or services that are targeted to residents of Minnesota, must not sell
a consumer's sensitive data without the consumer's prior consent.
new text end

new text begin (b) Penalties and attorney general enforcement procedures under section 325O.10 apply
to a small business that violates this section.
new text end

Sec. 10.

new text begin [325O.08] DATA PRIVACY POLICIES AND DATA PRIVACY
PROTECTION ASSESSMENTS.
new text end

new text begin (a) A controller must document and maintain a description of the policies and procedures
the controller has adopted to comply with this chapter. The description must include, where
applicable:
new text end

new text begin (1) the name and contact information for the controller's chief privacy officer or other
individual with primary responsibility for directing the policies and procedures implemented
to comply with the provisions of this chapter; and
new text end

new text begin (2) a description of the controller's data privacy policies and procedures which reflect
the requirements in section 325O.07, and any policies and procedures designed to:
new text end

new text begin (i) reflect the requirements of this chapter in the design of the controller's systems;
new text end

new text begin (ii) identify and provide personal data to a consumer as required by this chapter;
new text end

new text begin (iii) establish, implement, and maintain reasonable administrative, technical, and physical
data security practices to protect the confidentiality, integrity, and accessibility of personal
data, including the maintenance of an inventory of the data that must be managed to exercise
the responsibilities under this item;
new text end

new text begin (iv) limit the collection of personal data to what is adequate, relevant, and reasonably
necessary in relation to the purposes for which the data are processed;
new text end

new text begin (v) prevent the retention of personal data that is no longer relevant and reasonably
necessary in relation to the purposes for which the data were collected and processed, unless
retention of the data is otherwise required by law or permitted under section 325O.09; and
new text end

new text begin (vi) identify and remediate violations of this chapter.
new text end

new text begin (b) A controller must conduct and document a data privacy and protection assessment
for each of the following processing activities involving personal data:
new text end

new text begin (1) the processing of personal data for purposes of targeted advertising;
new text end

new text begin (2) the sale of personal data;
new text end

new text begin (3) the processing of sensitive data;
new text end

new text begin (4) any processing activities involving personal data that present a heightened risk of
harm to consumers; and
new text end

new text begin (5) the processing of personal data for purposes of profiling, where the profiling presents
a reasonably foreseeable risk of:
new text end

new text begin (i) unfair or deceptive treatment of, or disparate impact on, consumers;
new text end

new text begin (ii) financial, physical, or reputational injury to consumers;
new text end

new text begin (iii) a physical or other intrusion upon the solitude or seclusion, or the private affairs or
concerns, of consumers, where the intrusion would be offensive to a reasonable person; or
new text end

new text begin (iv) other substantial injury to consumers.
new text end

new text begin (c) A data privacy and protection assessment must take into account the type of personal
data to be processed by the controller, including the extent to which the personal data are
sensitive data, and the context in which the personal data are to be processed.
new text end

new text begin (d) A data privacy and protection assessment must identify and weigh the benefits that
may flow directly and indirectly from the processing to the controller, consumer, other
stakeholders, and the public against the potential risks to the rights of the consumer associated
with the processing, as mitigated by safeguards that can be employed by the controller to
reduce the potential risks. The use of deidentified data and the reasonable expectations of
consumers, as well as the context of the processing and the relationship between the controller
and the consumer whose personal data will be processed, must be factored into this
assessment by the controller.
new text end

new text begin (e) A data privacy and protection assessment must include the description of policies
and procedures required by paragraph (a).
new text end

new text begin (f) As part of a civil investigative demand, the attorney general may request, in writing,
that a controller disclose any data privacy and protection assessment that is relevant to an
investigation conducted by the attorney general. The controller must make a data privacy
and protection assessment available to the attorney general upon a request made under this
paragraph. The attorney general may evaluate the data privacy and protection assessments
for compliance with this chapter. Data privacy and protection assessments are classified as
nonpublic data, as defined by section 13.02, subdivision 9. The disclosure of a data privacy
and protection assessment pursuant to a request from the attorney general under this
paragraph does not constitute a waiver of the attorney-client privilege or work product
protection with respect to the assessment and any information contained in the assessment.
new text end

new text begin (g) Data privacy and protection assessments or risk assessments conducted by a controller
for the purpose of compliance with other laws or regulations may qualify under this section
if the assessments have a similar scope and effect.
new text end

new text begin (h) A single data protection assessment may address multiple sets of comparable
processing operations that include similar activities.
new text end

Sec. 11.

new text begin [325O.09] LIMITATIONS AND APPLICABILITY.
new text end

new text begin (a) The obligations imposed on controllers or processors under this chapter do not restrict
a controller's or a processor's ability to:
new text end

new text begin (1) comply with federal, state, or local laws, rules, or regulations, including but not
limited to data retention requirements in state or federal law notwithstanding a consumer's
request to delete personal data;
new text end

new text begin (2) comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or
summons by federal, state, local, or other governmental authorities;
new text end

new text begin (3) cooperate with law enforcement agencies concerning conduct or activity that the
controller or processor reasonably and in good faith believes may violate federal, state, or
local laws, rules, or regulations;
new text end

new text begin (4) investigate, establish, exercise, prepare for, or defend legal claims;
new text end

new text begin (5) provide a product or service specifically requested by a consumer, perform a contract
to which the consumer is a party, including fulfilling the terms of a written warranty, or
take steps at the request of the consumer prior to entering into a contract;
new text end

new text begin (6) take immediate steps to protect an interest that is essential for the life or physical
safety of the consumer or of another natural person, and where the processing cannot be
manifestly based on another legal basis;
new text end

new text begin (7) prevent, detect, protect against, or respond to security incidents, identity theft, fraud,
harassment, malicious or deceptive activities, or any illegal activity; preserve the integrity
or security of systems; or investigate, report, or prosecute those responsible for any such
action;
new text end

new text begin (8) assist another controller, processor, or third party with any of the obligations under
this paragraph;
new text end

new text begin (9) engage in public or peer-reviewed scientific, historical, or statistical research in the
public interest that adheres to all other applicable ethics and privacy laws and is approved,
monitored, and governed by an institutional review board, human subjects research ethics
review board, or a similar independent oversight entity which has determined that:
new text end

new text begin (i) the research is likely to provide substantial benefits that do not exclusively accrue to
the controller;
new text end

new text begin (ii) the expected benefits of the research outweigh the privacy risks; and
new text end

new text begin (iii) the controller has implemented reasonable safeguards to mitigate privacy risks
associated with research, including any risks associated with reidentification; or
new text end

new text begin (10) process personal data for the benefit of the public in the areas of public health,
community health, or population health, but only to the extent that the processing is:
new text end

new text begin (i) subject to suitable and specific measures to safeguard the rights of the consumer
whose personal data is being processed; and
new text end

new text begin (ii) under the responsibility of a professional individual who is subject to confidentiality
obligations under federal, state, or local law.
new text end

new text begin (b) The obligations imposed on controllers or processors under this chapter do not restrict
a controller's or processor's ability to collect, use, or retain data to:
new text end

new text begin (1) effectuate a product recall or identify and repair technical errors that impair existing
or intended functionality;
new text end

new text begin (2) perform internal operations that are reasonably aligned with the expectations of the
consumer based on the consumer's existing relationship with the controller, or are otherwise
compatible with processing in furtherance of the provision of a product or service specifically
requested by a consumer or the performance of a contract to which the consumer is a party;
or
new text end

new text begin (3) conduct internal research to develop, improve, or repair products, services, or
technology.
new text end

new text begin (c) The obligations imposed on controllers or processors under this chapter do not apply
where compliance by the controller or processor with this chapter would violate an
evidentiary privilege under Minnesota law and do not prevent a controller or processor from
providing personal data concerning a consumer to a person covered by an evidentiary
privilege under Minnesota law as part of a privileged communication.
new text end

new text begin (d) A controller or processor that discloses personal data to a third-party controller or
processor in compliance with the requirements of this chapter is not in violation of this
chapter if the recipient processes the personal data in violation of this chapter, provided that
at the time of disclosing the personal data, the disclosing controller or processor did not
have actual knowledge that the recipient intended to commit a violation. A third-party
controller or processor receiving personal data from a controller or processor in compliance
with the requirements of this chapter is not in violation of this chapter for the obligations
of the controller or processor from which the third-party controller or processor receives
the personal data.
new text end

new text begin (e) Obligations imposed on controllers and processors under this chapter shall not:
new text end

new text begin (1) adversely affect the rights or freedoms of any persons, including exercising the right
of free speech pursuant to the First Amendment of the United States Constitution; or
new text end

new text begin (2) apply to the processing of personal data by a natural person in the course of a purely
personal or household activity.
new text end

new text begin (f) Personal data that are processed by a controller pursuant to this section may be
processed solely to the extent that the processing is:
new text end

new text begin (1) necessary, reasonable, and proportionate to the purposes listed in this section;
new text end

new text begin (2) adequate, relevant, and limited to what is necessary in relation to the specific purpose
or purposes listed in this section; and
new text end

new text begin (3) insofar as possible, taking into account the nature and purpose of processing the
personal data, subjected to reasonable administrative, technical, and physical measures to
protect the confidentiality, integrity, and accessibility of the personal data, and to reduce
reasonably foreseeable risks of harm to consumers.
new text end

new text begin (g) If a controller processes personal data pursuant to an exemption in this section, the
controller bears the burden of demonstrating that the processing qualifies for the exemption
and complies with the requirements in paragraph (f).
new text end

new text begin (h) Processing personal data solely for the purposes expressly identified in paragraph
(a), clauses (1) to (7), does not, by itself, make an entity a controller with respect to the
processing.
new text end

Sec. 12.

new text begin [325O.10] ATTORNEY GENERAL ENFORCEMENT.
new text end

new text begin (a) In the event that a controller or processor violates this chapter, the attorney general,
prior to filing an enforcement action under paragraph (b), must provide the controller or
processor with a warning letter identifying the specific provisions of this chapter the attorney
general alleges have been or are being violated. If, after 30 days of issuance of the warning
letter, the attorney general believes the controller or processor has failed to cure any alleged
violation, the attorney general may bring an enforcement action under paragraph (b). This
paragraph expires January 31, 2026.
new text end

new text begin (b) The attorney general may bring a civil action against a controller or processor to
enforce a provision of this chapter in accordance with section 8.31. If the state prevails in
an action to enforce this chapter, the state may, in addition to penalties provided by paragraph
(c) or other remedies provided by law, be allowed an amount determined by the court to be
the reasonable value of all or part of the state's litigation expenses incurred.
new text end

new text begin (c) Any controller or processor that violates this chapter is subject to an injunction and
liable for a civil penalty of not more than $7,500 for each violation.
new text end

new text begin (d) Nothing in this chapter establishes a private right of action, including under section
8.31, subdivision 3a, for a violation of this chapter or any other law.
new text end

Sec. 13.

new text begin [325O.11] PREEMPTION OF LOCAL LAW; SEVERABILITY.
new text end

new text begin (a) This chapter supersedes and preempts laws, ordinances, regulations, or the equivalent
adopted by any local government regarding the processing of personal data by controllers
or processors.
new text end

new text begin (b) If any provision of this chapter or this chapter's application to any person or
circumstance is held invalid, the remainder of this chapter or the application of the provision
to other persons or circumstances is not affected.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2025, except that postsecondary institutions regulated
by the Office of Higher Education are not required to comply with this article until July 31,
2029.
new text end

ARTICLE 6

COMMERCE POLICY

Section 1.

Minnesota Statutes 2022, section 45.0135, subdivision 7, is amended to read:

Subd. 7.

Assessment.

Each insurer authorized to sell insurance in the state of Minnesota,
including surplus lines carriers, and having Minnesota earned premium the previous calendar
year shall remit an assessment to the commissioner for deposit in the insurance fraud
prevention account on or before June 1 of each year. The amount of the assessment shall
be based on the insurer's total assets and on the insurer's total written Minnesota premium,
for the preceding fiscal year, as reported pursuant to section 60A.13. deleted text begin The assessment is
calculated to be an amount up to the following deleted text end new text begin Beginning with the payment due on or before
June 1, 2024, the assessment amount is new text end :

	Total Assets	Assessment
	Less than $100,000,000		$	deleted text begin 200 deleted text end new text begin 400 new text end
	$100,000,000 to $1,000,000,000		$	deleted text begin 750 deleted text end new text begin 1,500 new text end
	Over $1,000,000,000		$	deleted text begin 2,000 deleted text end new text begin 4,000 new text end
	Minnesota Written Premium	Assessment
	Less than $10,000,000		$	deleted text begin 200 deleted text end new text begin 400 new text end
	$10,000,000 to $100,000,000		$	deleted text begin 750 deleted text end new text begin 1,500 new text end
	Over $100,000,000		$	deleted text begin 2,000 deleted text end new text begin 4,000 new text end

For purposes of this subdivision, the following entities are not considered to be insurers
authorized to sell insurance in the state of Minnesota: risk retention groups; or township
mutuals organized under chapter 67A.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [58B.051] REGISTRATION FOR LENDERS.
new text end

new text begin (a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
before providing services in Minnesota. A lender must not offer or make a student loan to
a resident of Minnesota without first registering with the commissioner as provided in this
section.
new text end

new text begin (b) A registration application must include:
new text end

new text begin (1) the lender's name;
new text end

new text begin (2) the lender's address;
new text end

new text begin (3) the names of all officers, directors, partners, and owners of controlling interests in
the lender;
new text end

new text begin (4) the addresses of all officers, directors, partners, and owners of controlling interests
in the lender; and
new text end

new text begin (5) any other information the commissioner requires by rule.
new text end

new text begin (c) A lender must renew the lender's registration on an annual basis and may be required
to pay a fee at the time of renewal.
new text end

new text begin (d) The commissioner may adopt and enforce:
new text end

new text begin (1) registration procedures for lenders, which may include using the Nationwide
Multistate Licensing System and Registry;
new text end

new text begin (2) registration fees for lenders, which may include fees for using the Nationwide
Multistate Licensing System and Registry, to be paid directly by the lender;
new text end

new text begin (3) procedures and fees to renew a lender's registration, which may include fees for the
renewed use of Nationwide Multistate Licensing System and Registry, to be paid directly
by the lender; and
new text end

new text begin (4) alternate registration procedures and fees for institutions of postsecondary education
that offer student loans.
new text end

Sec. 3.

new text begin [62J.96] ACCESS TO 340B DRUGS.
new text end

new text begin Subdivision 1. new text end

new text begin Manufacturers. new text end

new text begin A manufacturer must not directly or indirectly restrict,
prohibit, or otherwise interfere with the delivery of a covered outpatient drug to a pharmacy
that is under contract with a 340B covered entity to receive and dispense covered outpatient
drugs on behalf of the covered entity, unless the delivery of the drug to the pharmacy is
prohibited under the 340B Drug Pricing Program.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions apply.
new text end

new text begin (b) "340B covered entity" has the meaning provided in section 340B(a)(4) of the Public
Health Service Act.
new text end

new text begin (c) "Covered outpatient drug" has the meaning provided in section 1927(k) of the Social
Security Act.
new text end

new text begin (d) "Manufacturer" has the meaning provided in section 151.01, subdivision 14a.
new text end

Sec. 4.

Minnesota Statutes 2022, section 62Q.73, subdivision 3, is amended to read:

Subd. 3.

Right to external review.

(a) Any enrollee or anyone acting on behalf of an
enrollee who has received an adverse determination may submit a written request for an
external review of the adverse determination, if applicable under section 62Q.68, subdivision
1, or 62M.06, to the commissioner of health if the request involves a health plan company
regulated by that commissioner or to the commissioner of commerce if the request involves
a health plan company regulated by that commissioner. Notification of the enrollee's right
to external review must accompany the denial issued by the insurer. deleted text begin The written request
must be accompanied by a filing fee of $25. The fee may be waived by the commissioner
of health or commerce in cases of financial hardship and must be refunded if the adverse
determination is completely reversed. No enrollee may be subject to filing fees totaling
more than $75 during a plan year for group coverage or policy year for individual coverage.
deleted text end

(b) Nothing in this section requires the commissioner of health or commerce to
independently investigate an adverse determination referred for independent external review.

(c) If an enrollee requests an external review, the health plan company must participate
in the external review. The cost of the external review deleted text begin in excess of the filing fee described
in paragraph (a) shall deleted text end new text begin must new text end be borne by the health plan company.

(d) The enrollee must request external review within six months from the date of the
adverse determination.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 144.197, is amended to read:

144.197 CANNABIS new text begin AND SUBSTANCE MISUSE PREVENTION AND
new text end EDUCATION PROGRAMS.

Subdivision 1.

Youth new text begin prevention and new text end education new text begin program new text end .

The commissioner of health,
in consultation with the commissioners of human services and education and in collaboration
with local health departments new text begin and Tribal health departments new text end , shall conduct a long-term,
coordinated deleted text begin education deleted text end program to raise public awareness about deleted text begin and address the top three deleted text end new text begin
substance misuse prevention, treatment options, and recovery options. The program must
address new text end adverse health effects deleted text begin , as determined by the commissioner, deleted text end associated with the use
of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products by persons under age 25. In conducting this education program, the
commissioner shall engage and consult with youth around the state on program content and
on methods to effectively disseminate program information to youth around the state.

Subd. 2.

new text begin Prevention and new text end education new text begin program new text end for pregnant and breastfeeding
individuals deleted text begin ; deleted text end new text begin and new text end individuals who may become pregnant.

The commissioner of health,
in consultation with the commissioners of human services and education, shall conduct a
long-term, coordinated new text begin prevention new text end program deleted text begin to educate deleted text end new text begin focused on (1) preventing substance
use by new text end pregnant individuals, breastfeeding individuals, and individuals who may become
pregnant new text begin , and (2) raising public awareness of the risks of substance use while pregnant or
breastfeeding. The program must include education new text end on the adverse health effects of prenatal
exposure to cannabis flower, cannabis products, lower-potency hemp edibles, or
hemp-derived consumer products and on the adverse health effects experienced by infants
and children who are exposed to cannabis flower, cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products in breast milk, from secondhand smoke, or by
ingesting cannabinoid products. This new text begin prevention and new text end education program must also educate
individuals on what constitutes a substance use disorder, signs of a substance use disorder,
and treatment options for persons with a substance use disorder. new text begin The prevention and education
program must also provide resources, including training resources, technical assistance, or
educational materials, to local public health home visiting programs, Tribal home visiting
programs, and child welfare workers.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Home visiting programs. deleted text end

deleted text begin The commissioner of health shall provide training,
technical assistance, and education materials to local public health home visiting programs
and Tribal home visiting programs and child welfare workers regarding the safe and unsafe
use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in homes with infants and young children. Training, technical assistance,
and education materials shall address substance use, the signs of a substance use disorder,
treatment options for persons with a substance use disorder, the dangers of driving under
the influence of cannabis flower, cannabis products, lower-potency hemp edibles, or
hemp-derived consumer products, how to safely consume cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products in homes with infants
and young children, and how to prevent infants and young children from being exposed to
cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products by ingesting cannabinoid products or through secondhand smoke.
deleted text end

Subd. 4.

Local and Tribal health departments.

The commissioner of health shall
distribute grants to local health departments and Tribal health departments for deleted text begin these deleted text end new text begin the new text end
departments to create deleted text begin and disseminate educational materials on cannabis flower, cannabis
products, lower-potency hemp edibles, and hemp-derived consumer products and to provide
safe use and prevention training, education, technical assistance, and community engagement
regarding cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products. deleted text end new text begin prevention, education, and recovery programs focusing on substance
misuse prevention and treatment options. The programs must include specific
cannabis-related initiatives.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 1b, is amended
to read:

Subd. 1b.

Purchase or acquisition record required.

(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a permanent record
written in English, using an electronic record program at the time of each purchase or
acquisition of scrap metal or a motor vehicle. The record must include:

(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal or motor vehicle purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased
or acquired and a unique transaction identifier;

(3) a photocopy or electronic scan of the seller's proof of identification including the
identification number;

(4) the amount paid and the number of the check or electronic transfer used to purchase
or acquire the scrap metal or motor vehicle;

(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal or motor vehicle, including the vehicle make and model, and any
identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;

(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens
or encumbrances and the seller has the right to sell it;

(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal or motor vehicle was received
by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount
paid for the scrap metal or motor vehicle;

(8) in order to purchase or acquire a detached catalytic converter, the vehicle identification
number of the car it was removed from or, as an alternative, any numbers, bar codes, stickers,
or other unique markings, whether resulting from the pilot project created under subdivision
2b or some other source. The alternative number must be under a numbering system that
can be immediately linked to the vehicle identification number by law enforcement; deleted text begin and
deleted text end

(9) the identity or identifier of the employee completing the transaction deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) if the seller is attempting to sell copper metal, a photocopy or electronic scan of the
seller's current license to sell scrap metal copper issued by the commissioner under
subdivision 2c.
new text end

(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall
at all reasonable times be open to the inspection of any properly identified law enforcement
officer.

(c) Except for the purchase or acquisition of detached catalytic converters or motor
vehicles, no record is required for property purchased or acquired from merchants,
manufacturers, salvage pools, insurance companies, rental car companies, financial
institutions, charities, dealers licensed under section 168.27, or wholesale dealers, having
an established place of business, or of any goods purchased or acquired at open sale from
any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
and kept by the person, which must be shown upon demand to any properly identified law
enforcement officer.

(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
(7), to the seller in every transaction.

(e) The commissioner of public safety and law enforcement agencies in the jurisdiction
where a dealer is located may conduct inspections and audits as necessary to ensure
compliance, refer violations to the city or county attorney for criminal prosecution, and
notify the registrar of motor vehicles.

(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
employee, or representative may not disclose personal information concerning a customer
without the customer's consent unless the disclosure is required by law or made in response
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).

Sec. 7.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin License required for scrap metal copper sale. new text end

new text begin (a) Beginning January 1,
2025, a person is prohibited from engaging in the sale of scrap metal copper unless the
person has a valid license issued by the commissioner under this subdivision.
new text end

new text begin (b) A seller of scrap metal copper may apply to the commissioner on a form prescribed
by the commissioner. The application form must include, at a minimum:
new text end

new text begin (1) the name, permanent address, telephone number, and date of birth of the applicant;
and
new text end

new text begin (2) an acknowledgment that the applicant obtained the copper by lawful means in the
regular course of the applicant's business, trade, or authorized construction work.
new text end

new text begin (c) Each application must be accompanied by a nonrefundable fee of $250.
new text end

new text begin (d) Within 30 days of the date an application is received, the commissioner may require
additional information or submissions from an applicant and may obtain any document or
information that is reasonably necessary to verify the information contained in the application.
Within 90 days after the date a completed application is received, the commissioner must
review the application and issue a license if the applicant is deemed qualified under this
section. The commissioner may issue a license subject to restrictions or limitations. If the
commissioner determines the applicant is not qualified, the commissioner must notify the
applicant and must specify the reason for the denial.
new text end

new text begin (e) A person licensed to perform work pursuant to chapter 326B or section 103I.501 or
issued a Section 608 Technician Certification is deemed to hold a license to sell scrap metal
copper.
new text end

new text begin (f) A license issued under this subdivision is valid for one year. To renew a license, an
applicant must submit a completed renewal application on a form prescribed by the
commissioner and a renewal fee of $250. The commissioner may request that a renewal
applicant submit additional information to clarify any new information presented in the
renewal application. A renewal application submitted after the renewal deadline must be
accompanied by a nonrefundable late fee of $500.
new text end

new text begin (g) The commissioner may deny a license renewal under this subdivision if:
new text end

new text begin (1) the commissioner determines that the applicant is in violation of or noncompliant
with federal or state law; or
new text end

new text begin (2) the applicant fails to timely submit a renewal application and the information required
under this subdivision.
new text end

new text begin (h) In lieu of denying a renewal application under paragraph (g), the commissioner may
permit the applicant to submit to the commissioner a corrective action plan to cure or correct
deficiencies.
new text end

new text begin (i) The commissioner may suspend, revoke, or place on probation a license issued under
this subdivision if:
new text end

new text begin (1) the applicant engages in fraudulent activity that violates state or federal law;
new text end

new text begin (2) the commissioner receives consumer complaints that justify an action under this
subdivision to protect the safety and interests of consumers;
new text end

new text begin (3) the applicant fails to pay an application license or renewal fee; or
new text end

new text begin (4) the applicant fails to comply with a requirement set forth in this subdivision.
new text end

new text begin (j) This subdivision does not apply to transfers by or to an auctioneer who is in
compliance with chapter 330 and acting in the person's official role as an auctioneer to
facilitate or conduct an auction of scrap metal.
new text end

new text begin (k) The commissioner must enforce this subdivision under chapter 45.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 342.72, is amended to read:

342.72 SUBSTANCE USE TREATMENT, RECOVERY, AND PREVENTION
GRANTS.

Subdivision 1.

deleted text begin Account established; deleted text end Appropriation.

A substance use treatment,
recovery, and prevention grant deleted text begin account deleted text end is created deleted text begin in the special revenue fund deleted text end . Money deleted text begin in the
account, including interest earned, deleted text end is appropriated to the deleted text begin office deleted text end new text begin commissioner of health new text end for
the purposes specified in this section. deleted text begin Of the amount transferred from the general fund to
the account, the office may use up to five percent for administrative expenses.
deleted text end

deleted text begin Subd. 2. deleted text end

deleted text begin Acceptance of gifts and grants. deleted text end

deleted text begin Notwithstanding sections 16A.013 to 16A.016,
the office may accept money contributed by individuals and may apply for grants from
charitable foundations to be used for the purposes identified in this section. The money
accepted under this section must be deposited in the substance use treatment, recovery, and
prevention grant account created under subdivision 1.
deleted text end

Subd. 3.

Disposition of money; grants.

(a) Money deleted text begin in the substance use treatment,
recovery, and prevention grant account deleted text end new text begin appropriated to the commissioner of health for
purposes of this section new text end must be distributed as follows:

(1) at least 75 percent of the money is for grants for substance use disorder and mental
health recovery and prevention programs. Funds must be used for recovery and prevention
activities and supplies that assist individuals and families to initiate, stabilize, and maintain
long-term recovery from substance use disorders and co-occurring mental health conditions.
Recovery and prevention activities may include prevention education, school-linked
behavioral health, school-based peer programs, peer supports, self-care and wellness,
culturally specific healing, community public awareness, mutual aid networks, telephone
recovery checkups, mental health warmlines, harm reduction, recovery community
organization development, first episode psychosis programs, and recovery housing; and

(2) up to 25 percent of the money is for substance use disorder treatment programs as
defined in chapter 245G and may be used to implement, strengthen, or expand supportive
services and activities that are not covered by medical assistance under chapter 256B,
MinnesotaCare under chapter 256L, or the behavioral health fund under chapter 254B.
Services and activities may include adoption or expansion of evidence-based practices;
competency-based training; continuing education; culturally specific and culturally responsive
services; sober recreational activities; developing referral relationships; family preservation
and healing; and start-up or capacity funding for programs that specialize in adolescent,
culturally specific, culturally responsive, disability-specific, co-occurring disorder, or family
treatment services.

(b) The deleted text begin office deleted text end new text begin commissioner of health new text end shall consult with the Governor's Advisory Council
on Opioids, Substance Use, and Addiction; the commissioner of human services; and deleted text begin the
commissioner of health deleted text end new text begin the Office of Cannabis Management new text end to develop an appropriate
application process, establish grant requirements, determine what organizations are eligible
to receive grants, and establish reporting requirements for grant recipients.

Subd. 4.

Reports to the legislature.

By January 15 deleted text begin , 2024, and deleted text end each deleted text begin January 15 thereafter deleted text end new text begin
year new text end , the deleted text begin office deleted text end new text begin commissioner of health new text end must submit a report to the chairs and ranking
minority members of the committees of the house of representatives and the senate having
jurisdiction over health and human services policy and finance that details grants awarded
from the substance use treatment, recovery, and prevention grant account, including the
total amount awarded, total number of recipients, and geographic distribution of those
recipients.

ARTICLE 7

CLIMATE AND ENERGY FINANCE

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 0 new text end

new text begin $ new text end

new text begin 1,000,000 new text end

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

new text begin Subd. 2. new text end new text begin Advanced Nuclear Technologies Study new text end

new text begin $300,000 the second year is for the advanced
nuclear technologies study under article 9,
section 34. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Thermal Energy Network Site Suitability Study new text end

new text begin $500,000 the second year is for the thermal
energy network site suitability study under
article 9, section 36. This is a onetime
appropriation.
new text end

new text begin Subd. 4. new text end new text begin Grant Development Assistance new text end

new text begin $200,000 the second year is transferred to the
state competitiveness fund account under
Minnesota Statutes, section 216C.391, for
grant development assistance under Minnesota
Statutes, section 216C.391, subdivision 4. This
is a onetime transfer.
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 0 new text end

new text begin $ new text end

new text begin 39,000 new text end

new text begin $39,000 the second year is for the thermal
energy network deployment work group under
article 9, section 35. The base budget for this
appropriation is $39,000 in fiscal year 2026
and $0 in fiscal year 2027.
new text end

Sec. 4. new text begin GRANT ADMINISTRATION REPORTING.
new text end

new text begin (a) By July 1, 2024, the commissioner of commerce shall report to the chairs and ranking
minority members of the legislative committees having jurisdiction over energy finance
and policy the anticipated costs for administering each named grant and competitive grant
program in Laws 2023, chapter 60, article 10, section 2, and Laws 2023, chapter 60, article
11, section 2.
new text end

new text begin (b) Within 90 days after each named grantee has fulfilled the obligations of their grant
agreement, the commissioner shall report to the chairs and ranking minority members of
the legislative committees having jurisdiction over energy finance and policy on the final
cost for administering each named grant included in paragraph (a), and for each named
grant in articles 7 and 8 of this act.
new text end

new text begin (c) By January 15, 2025, and each year thereafter, the commissioner shall report to the
chairs and ranking minority members of the legislative committees having jurisdiction over
energy finance and policy on the annual cost for administering each competitive grant
program included in paragraph (a), and for each competitive grant program enacted in
articles 8 and 9 of this act.
new text end

ARTICLE 8

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, 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 COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 0 new text end

new text begin $ new text end

new text begin 13,650,000 new text end

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

new text begin Subd. 2. new text end new text begin Geothermal Energy System; Sabathani Community Center new text end

new text begin (a) $6,000,000 the second year is for a grant
to the Sabathani Community Center in
Minneapolis to construct a geothermal energy
system that provides space heating and cooling
to the center. This is a onetime appropriation
and is available until June 30, 2027.
new text end

new text begin (b) For the purposes of this subdivision,
"geothermal energy system" means a system
composed of: a heat pump that moves a
heat-transferring fluid through piping
embedded in the earth and absorbs the earth's
constant temperature; a heat exchanger; and
ductwork to distribute heated and cooled air
to a building.
new text end

new text begin Subd. 3. new text end new text begin Energy Efficiency Projects; Dakota County new text end

new text begin (a) $500,000 the second year is for a grant to
Dakota County for energy efficiency projects
that are located in the service area of the public
utility subject to Minnesota Statutes, section
116C.779. This appropriation is available until
June 30, 2027. The base budget for this
appropriation is $500,000 in fiscal year 2026
and $0 in fiscal year 2027.
new text end

new text begin (b) For purposes of this subdivision, "energy
efficiency project" includes but is not limited
to: (1) LED lighting, as defined under
Minnesota Statutes, section 216B.241,
subdivision 5; (2) solar arrays; or (3) heating,
ventilating, or air conditioning system
improvements.
new text end

new text begin Subd. 4. new text end new text begin Anaerobic Digester Energy System new text end

new text begin (a) $5,000,000 the second year is for a grant
to Recycling and Energy, in partnership with
Dem-Con HZI Bioenergy, LLC, to construct
an anaerobic energy system in Louisville
Township. This appropriation is available until
June 30, 2027. The base budget for this
appropriation is $5,000,000 in fiscal year 2026
and $0 in fiscal year 2027.
new text end

new text begin (b) For the purposes of this subdivision,
"anaerobic energy system" means a facility
that uses diverted food and organic waste to
create renewable natural gas and biochar.
new text end

new text begin Subd. 5. new text end new text begin Wildlife Rehabilitation Center of Minnesota new text end

new text begin $400,000 the second year is for a grant to the
Wildlife Rehabilitation Center of Minnesota
to install solar panels. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin Subd. 6. new text end new text begin Ultraefficient Vehicle Development Grants new text end

new text begin $250,000 the second year is transferred to the
ultraefficient vehicle development grant
account under section 4, subdivision 4, to
provide grants for developers and producers
of ultraefficient vehicles. This is a onetime
transfer.
new text end

new text begin Subd. 7. new text end new text begin Geothermal Heat Exchange System Rebate Program new text end

new text begin $1,500,000 the second year is transferred to
the geothermal heat exchange system rebate
account established under Minnesota Statutes,
section 216C.47, to provide rebates for
geothermal heat exchange systems for eligible
applicants. This is a onetime transfer.
new text end

new text begin Subd. 8. new text end new text begin Administrative Costs new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 16B.98, subdivision 14, the
commissioner may use up to two percent of
the appropriations in subdivisions 2 to 5 for
administrative costs.
new text end

new text begin (b) Notwithstanding Minnesota Statutes,
section 16B.98, subdivision 14, the
commissioner may use up to five percent of
the appropriations in subdivisions 6 and 7 for
administrative costs.
new text end

Sec. 3.

new text begin [216C.47] GEOTHERMAL HEAT EXCHANGE SYSTEM REBATE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Eligible applicant" means a person, business, nonprofit, government entity, federally
recognized Tribe in Minnesota, or religious institution who provides evidence to the
commissioner's satisfaction demonstrating that the person has received or has applied for
a geothermal heat exchange system rebate available from the federal Department of Treasury
under the Inflation Reduction Act of 2022, Public Law 117-189, for a commercial or
multifamily building located in Minnesota.
new text end

new text begin (c) "Geothermal heat exchange system" means a heating or cooling exchange mechanism
composed of a mechanism to collect or reject heat from or to the underground.
new text end

new text begin (d) "Commissioner" means the commissioner of the Department of Commerce.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A geothermal heat exchange system rebate program is
established in the department to provide financial assistance to eligible applicants that install
geothermal heat exchange technology in the applicant's building.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a rebate under this section must be made
to the commissioner on a form developed by the commissioner. The application must be
accompanied by documentation, as required by the commissioner, demonstrating:
new text end

new text begin (1) that the applicant is an eligible applicant;
new text end

new text begin (2) that the applicant owns the Minnesota building in which the geothermal exchange
system is to be installed;
new text end

new text begin (3) that an energy audit of the building in which the geothermal exchange system is to
be installed has been conducted within the 18 months preceding the application date by a
person with a building analyst technician certification issued by the Building Performance
Institute, Inc., or an equivalent certification as determined by the commissioner;
new text end

new text begin (4) that the applicant has installed a geothermal heat exchange system of the capacity
recommended by the auditor or contractor, and has had the heat pump installed by a
contractor with sufficient training and experience in installing heat pumps, as determined
by the commissioner; and
new text end

new text begin (5) the total cost to install the geothermal heat exchange system in the applicant's building
and the associated geothermal loop installed and located outside of the building.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award processes.
new text end

new text begin (c) The commissioner may modify program requirements under this section when
necessary to align with comparable federal programs administered by the department under
the federal Inflation Reduction Act of 2022, Public Law 117-189.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amount. new text end

new text begin A rebate awarded under this section must not exceed the lower
of:
new text end

new text begin (1) ten percent of geothermal heat exchange system costs, not to exceed $100,000 for a
single project; or
new text end

new text begin (2) the total cost to purchase and install the heat exchange system in an eligible applicant's
building net of any financial support received for the system from other federal, state, or
utility programs.
new text end

new text begin Subd. 5. new text end

new text begin Prioritization. new text end

new text begin In evaluating applications under this program, the commissioner
must give priority to applications that:
new text end

new text begin (1) are located in environmental justice communities, as defined by section 115A.03,
subdivision 10b;
new text end

new text begin (2) have submitted a workforce plan demonstrating the intention to use registered
apprenticeships; or
new text end

new text begin (3) are multifamily housing or commercial buildings that:
new text end

new text begin (i) are owned by a non-profit or government entity; and
new text end

new text begin (ii) meet the definition of low-income rental property under section 273.128.
new text end

new text begin Subd. 6. new text end

new text begin Account established. new text end

new text begin (a) The geothermal heat exchange system rebate account
is established as a separate account in the special revenue fund in the state treasury. The
commissioner must credit appropriations and transfers to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund, but remains in the account until expended. The commissioner
must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of this
section and to reimburse the reasonable costs incurred by the department to administer this
section. Any money remaining in the account on January 1, 2033, cancels to the renewable
development account.
new text end

Sec. 4. new text begin ULTRAEFFICIENT VEHICLE DEVELOPMENT GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program establishment. new text end

new text begin (a) A grant program is established in the
Department of Commerce to provide financial assistance to developers and producers of
ultraefficient vehicles that use proprietary technology.
new text end

new text begin (b) For purposes of this section, "ultraefficient vehicle" means a fully closed compartment
vehicle designed to carry at least one adult passenger that achieves:
new text end

new text begin (1) at least 75 miles per gallon while operating on gasoline;
new text end

new text begin (2) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline;
or
new text end

new text begin (3) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin Applicants seeking a grant under this section must submit
an application to the commissioner of commerce on a form developed by the commissioner.
The commissioner is responsible for receiving and reviewing grant applications and awarding
grants under this subdivision. The commissioner must develop administrative procedures
to govern the application, evaluation, and grant-award process.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin The maximum grant award for each eligible applicant awarded
a grant under this section is $250,000. In awarding grants under this section, the department
must:
new text end

new text begin (1) give priority to ultraefficient vehicle projects that are deemed to be near production
ready; and
new text end

new text begin (2) give priority to ultraefficient vehicle projects that maximize the use of electricity to
charge and run the vehicle.
new text end

new text begin Subd. 4. new text end

new text begin Account established. new text end

new text begin An ultraefficient vehicle development grant account is
established in the special revenue fund in the state treasury. The commissioner of commerce
must credit to the account appropriations made for ultraefficient vehicle development grants.
Earnings, including interest, arising from assets in the account, must be credited to the
account. Money in the account is available until June 30, 2028. Any amount in the account
after June 30, 2028, cancels to the renewable development account. The commissioner of
commerce must manage the account.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation; expenditures. new text end

new text begin Money in the account established in subdivision
4 is appropriated to the commissioner of commerce and must be used only:
new text end

new text begin (1) to make grant awards under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin On January 15, 2026, and on January 15, 2029, the commissioner of
commerce must submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over energy policy and finance on the grant awards under this
section.
new text end

ARTICLE 9

ENERGY, UTILITIES, ENVIRONMENT, AND CLIMATE POLICY

Section 1.

Minnesota Statutes 2023 Supplement, section 116C.779, subdivision 1, is
amended to read:

Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year. The total amount transferred annually under this paragraph must be reduced
by $3,750,000.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonable:

(1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;
and

(2) the proposer's commitment to increasing the diversity of the proposer's workforce
and vendors.

(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15. Expenditures from the account must be appropriated by
law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.

(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

deleted text begin (q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.
deleted text end

deleted text begin (r) deleted text end new text begin (q) new text end A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers. A project
receiving funds from the account must submit a report that meets the requirements of section
216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.

deleted text begin (s) deleted text end new text begin (r) new text end Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

deleted text begin (t) deleted text end new text begin (s) new text end All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

deleted text begin (u) deleted text end new text begin (t) new text end Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

deleted text begin (v) deleted text end new text begin (u) new text end Construction projects receiving funds from this account are subject to the
requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements
and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
177.45.

Sec. 2.

Minnesota Statutes 2022, section 216B.098, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Social Security number and individual taxpayer identification number. new text end

new text begin If
a utility requires a new customer to provide a Social Security number on an application for
utility service, the utility must accept an individual taxpayer identification number in lieu
of a Social Security number. The utility application must indicate that the utility accepts an
individual taxpayer identification number.
new text end

Sec. 3.

Minnesota Statutes 2022, section 216B.16, subdivision 6c, is amended to read:

Subd. 6c.

Incentive plan for energy conservation new text begin and efficient fuel-switching
new text end improvement.

(a) The commission may order public utilities to develop and submit for
commission approval incentive plans that describe the method of recovery and accounting
for utility conservation new text begin and efficient fuel-switching new text end expenditures and savings. new text begin For public
utilities that provide electric service, the commission must develop and implement incentive
plans designed to promote energy conservation separately from the plans designed to promote
efficient fuel-switching. new text end In developing the incentive plans the commission shall ensure the
effective involvement of interested parties.

(b) In approving incentive plans, the commission shall consider:

(1) whether the plan is likely to increase utility investment in cost-effective energy
conservation new text begin or efficient fuel switching new text end ;

(2) whether the plan is compatible with the interest of utility ratepayers and other
interested parties;

(3) whether the plan links the incentive to the utility's performance in achieving
cost-effective conservation new text begin or efficient fuel switching new text end ; deleted text begin and
deleted text end

(4) whether the plan is in conflict with other provisions of this chapter deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) whether the plan conflicts with other provisions of this chapter; and
new text end

new text begin (6) the likely financial impacts of the conservation and efficient fuel-switching programs
on the utility.
new text end

(c) The commission may set rates to encourage the vigorous and effective implementation
of utility conservation new text begin and efficient fuel-switching new text end programs. The commission may:

(1) increase or decrease any otherwise allowed rate of return on net investment based
upon the utility's skill, efforts, and success in deleted text begin conserving deleted text end new text begin improving the efficient use of new text end
energy new text begin through energy conservation or efficient fuel switching new text end ;

(2) share between ratepayers and utilities the net savings resulting from energy
conservation new text begin and efficient fuel-switching new text end programs to the extent justified by the utility's
skill, efforts, and success in deleted text begin conserving deleted text end new text begin improving the efficient use of new text end energy; and

(3) adopt any mechanism that satisfies the criteria of this subdivision, such that
implementation of cost-effective conservation new text begin or efficient fuel switching new text end is a preferred
resource choice for the public utility considering the impact of conservation new text begin or efficient fuel
switching new text end on earnings of the public utility.

new text begin (d) Any incentives offered to electric utilities under this subdivision for efficient-fuel
switching projects expire December 31, 2032.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216B.16, subdivision 8, is amended to read:

Subd. 8.

Advertising expense.

(a) The commission shall disapprove the portion of any
rate which makes an allowance directly or indirectly for expenses incurred by a public utility
to provide a public advertisement which:

(1) is designed to influence or has the effect of influencing public attitudes toward
legislation or proposed legislation, or toward a rule, proposed rule, authorization or proposed
authorization of the Public Utilities Commission or other agency of government responsible
for regulating a public utility;

(2) is designed to justify or otherwise support or defend a rate, proposed rate, practice
or proposed practice of a public utility;

(3) is designed primarily to promote consumption of the services of the utility;

(4) is designed primarily to promote good will for the public utility or improve the
utility's public image; or

(5) is designed to promote the use of nuclear power or to promote a nuclear waste storage
facility.

(b) The commission may approve a rate which makes an allowance for expenses incurred
by a public utility to disseminate information which:

(1) is designed to encourage deleted text begin conservation deleted text end new text begin efficient use new text end of energy supplies;

(2) is designed to promote safety; or

(3) is designed to inform and educate customers as to financial services made available
to them by the public utility.

(c) The commission shall not withhold approval of a rate because it makes an allowance
for expenses incurred by the utility to disseminate information about corporate affairs to its
owners.

Sec. 5.

Minnesota Statutes 2022, section 216B.2402, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Data mining facility. new text end

new text begin "Data mining facility" means all buildings, structures,
equipment, and installations at a single site where electricity is used primarily by computers
to process transactions involving digital currency not issued by a central authority.
new text end

Sec. 6.

Minnesota Statutes 2022, section 216B.2402, subdivision 10, is amended to read:

Subd. 10.

Gross annual retail energy sales.

"Gross annual retail energy sales" means
a utility's annual electric sales to all Minnesota retail customers, or natural gas throughput
to all retail customers, including natural gas transportation customers, on a utility's
distribution system in Minnesota. Gross annual retail energy sales does not include:

(1) gas sales to:

(i) a large energy facility;

(ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural
gas sales made to the large customer facility; and

(iii) a commercial gas customer facility whose natural gas utility has been exempted by
the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to
natural gas sales made to the commercial gas customer facility;

(2) electric sales to new text begin :
new text end

new text begin (i) new text end a large customer facility whose electric utility has been exempted by the commissioner
under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made
to the large customer facility; deleted text begin or deleted text end new text begin and
new text end

new text begin (ii) a data mining facility, if the facility:
new text end

new text begin (A) has provided a signed letter to the utility verifying the facility meets the definition
of a data mining facility; and
new text end

new text begin (B) imposes a peak electrical demand on a consumer-owned utility's system equal to or
greater than 40 percent of the peak electrical demand of the system, measured in the same
manner as the utility that serves the customer facility measures electric demand for billing
purposes; or
new text end

(3) the amount of electric sales prior to December 31, 2032, that are associated with a
utility's program, rate, or tariff for electric vehicle charging based on a methodology and
assumptions developed by the department in consultation with interested stakeholders no
later than December 31, 2021. After December 31, 2032, incremental sales to electric
vehicles must be included in calculating a new text begin public new text end utility's gross annual retail sales.

Sec. 7.

Minnesota Statutes 2022, section 216B.2403, subdivision 2, is amended to read:

Subd. 2.

Consumer-owned utility; energy-savings goal.

(a) Each individual
consumer-owned new text begin electric new text end utility subject to this section has an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy sales new text begin and each individual
consumer-owned natural gas utility subject to this section has an annual energy-savings
goal equivalent to one percent of gross annual retail energy sales new text end , to be met with a minimum
of energy savings from energy conservation improvements equivalent to at least deleted text begin 0.95 deleted text end new text begin 0.90 new text end
percent of the consumer-owned utility's gross annual retail energy sales. The balance of
energy savings toward the annual energy-savings goal may be achieved only by the following
consumer-owned utility activities:

(1) energy savings from additional energy conservation improvements;

(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision
1, that result in increased efficiency greater than would have occurred through normal
maintenance activity;

(3) net energy savings from efficient fuel-switching improvements that meet the criteria
under subdivision 8, which may contribute up to deleted text begin 0.55 deleted text end new text begin 0.60 new text end percent of the goal; or

(4) subject to department approval, demand-side natural gas or electric energy displaced
by use of waste heat recovered and used as thermal energy, including the recovered thermal
energy from a cogeneration or combined heat and power facility.

(b) The energy-savings goals specified in this section must be calculated based on
weather-normalized sales averaged over the most recent three years. A consumer-owned
utility may elect to carry forward energy savings in excess of 1.5 percent for a year to the
next three years, except that energy savings from electric utility infrastructure projects may
be carried forward for five years. A particular energy savings can only be used to meet one
year's goal.

(c) A consumer-owned utility subject to this section is not required to make energy
conservation improvements that are not cost-effective, even if the improvement is necessary
to attain the energy-savings goal. A consumer-owned utility subject to this section must
make reasonable efforts to implement energy conservation improvements that exceed the
minimum level established under this subdivision if cost-effective opportunities and funding
are available, considering other potential investments the consumer-owned utility intends
to make to benefit customers during the term of the plan filed under subdivision 3.

(d) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a
consumer-owned utility subject to this section on efficient fuel-switching improvements
implemented to meet the annual energy savings goal under this section must not exceed
deleted text begin 0.55 deleted text end new text begin 0.6 new text end percent per year, averaged over a three-year period, of the consumer-owned utility's
gross annual retail energy sales.

Sec. 8.

Minnesota Statutes 2022, section 216B.2403, subdivision 3, is amended to read:

Subd. 3.

Consumer-owned utility; energy conservation and optimization plans.

(a)
By June 1, 2022, and at least every three years thereafter, each consumer-owned utility must
file with the commissioner an energy conservation and optimization plan that describes the
programs for energy conservation, efficient fuel-switching, load management, and other
measures the consumer-owned utility intends to offer to achieve the utility's energy savings
goal.

(b) A plan's term may extend up to three years. A multiyear plan must identify the total
energy savings and energy savings resulting from energy conservation improvements that
are projected to be achieved in each year of the plan. A multiyear plan that does not, in each
year of the plan, meet both the minimum energy savings goal from energy conservation
improvements and the total energy savings goal of 1.5 percent, or lower goals adjusted by
the commissioner under paragraph (k), must:

(1) state why each goal is projected to be unmet; and

(2) demonstrate how the consumer-owned utility proposes to meet both goals on an
average basis over the duration of the plan.

(c) A plan filed under this subdivision must provide:

(1) for existing programs, an analysis of the cost-effectiveness of the consumer-owned
utility's programs offered under the plan, using a list of baseline energy- and capacity-savings
assumptions developed in consultation with the department; and

(2) for new programs, a preliminary analysis upon which the program will proceed, in
parallel with further development of assumptions and standards.

(d) The commissioner must evaluate a plan filed under this subdivision based on the
plan's likelihood to achieve the energy-savings goals established in subdivision 2. The
commissioner may make recommendations to a consumer-owned utility regarding ways to
increase the effectiveness of the consumer-owned utility's energy conservation activities
and programs under this subdivision. The commissioner may recommend that a
consumer-owned utility implement a cost-effective energy conservation new text begin or efficient
fuel-switching new text end program deleted text begin , including an energy conservation program deleted text end suggested by an outside
source such as a political subdivision, nonprofit corporation, or community organization.

(e) Beginning June 1, 2023, and every June 1 thereafter, each consumer-owned utility
must file: (1) an annual update identifying the status of the plan filed under this subdivision,
including: (i) total expenditures and investments made to date under the plan; and (ii) any
intended changes to the plan; and (2) a summary of the annual energy-savings achievements
under a plan. An annual filing made in the last year of a plan must contain a new plan that
complies with this section.

(f) When evaluating the cost-effectiveness of a consumer-owned utility's energy
conservation programs, the consumer-owned utility and the commissioner must consider
the costs and benefits to ratepayers, the utility, participants, and society. The commissioner
must also consider the rate at which the consumer-owned utility is increasing energy savings
and expenditures on energy conservation, and lifetime energy savings and cumulative energy
savings.

(g) A consumer-owned utility may annually spend and invest up to ten percent of the
total amount spent and invested on energy conservation new text begin , efficient fuel-switching, or load
management new text end improvements on research and development projects that meet the new text begin applicable
new text end definition of energy conservation new text begin , efficient fuel-switching, or load management new text end improvement.

(h) A generation and transmission cooperative electric association or municipal power
agency that provides energy services to consumer-owned utilities may file a plan under this
subdivision on behalf of the consumer-owned utilities to which the association or agency
provides energy services and may make investments, offer conservation programs, and
otherwise fulfill the energy-savings goals and reporting requirements of this subdivision
for those consumer-owned utilities on an aggregate basis.

(i) A consumer-owned utility is prohibited from spending for or investing in energy
conservation improvements that directly benefit a large energy facility or a large electric
customer facility the commissioner has exempted under section 216B.241, subdivision 1a.

(j) The energy conservation and optimization plan of a consumer-owned utility may
include activities to improve energy efficiency in the public schools served by the utility.
These activities may include programs to:

(1) increase the efficiency of the school's lighting and heating and cooling systems;

(2) recommission buildings;

(3) train building operators; and

(4) provide opportunities to educate students, teachers, and staff regarding energy
efficiency measures implemented at the school.

(k) A consumer-owned utility may request that the commissioner adjust the
consumer-owned utility's minimum goal for energy savings from energy conservation
improvements under subdivision 2, paragraph (a), for the duration of the plan filed under
this subdivision. The request must be made by January 1 of the year when the
consumer-owned utility must file a plan under this subdivision. The request must be based
on:

(1) historical energy conservation improvement program achievements;

(2) customer class makeup;

(3) projected load growth;

(4) an energy conservation potential study that estimates the amount of cost-effective
energy conservation potential that exists in the consumer-owned utility's service territory;

(5) the cost-effectiveness and quality of the energy conservation programs offered by
the consumer-owned utility; and

(6) other factors the commissioner and consumer-owned utility determine warrant an
adjustment.

The commissioner must adjust the energy savings goal to a level the commissioner determines
is supported by the record, but must not approve a minimum energy savings goal from
energy conservation improvements that is less than an average of 0.95 percent per year over
the consecutive years of the plan's duration, including the year the minimum energy savings
goal is adjusted.

(l) A consumer-owned utility filing a conservation and optimization plan that includes
an efficient fuel-switching program deleted text begin to achieve the utility's energy savings goal deleted text end must, as part
of the filing, demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuels deleted text end
that the requirements of subdivision 8 are met, using a full fuel-cycle energy analysis.

Sec. 9.

Minnesota Statutes 2022, section 216B.2403, subdivision 5, is amended to read:

Subd. 5.

Energy conservation programs for low-income households.

(a) A
consumer-owned utility subject to this section must provide energy conservation programs
to low-income households. The commissioner must evaluate a consumer-owned utility's
plans under this section by considering the consumer-owned utility's historic spending on
energy conservation programs directed to low-income households, the rate of customer
participation in and the energy savings resulting from those programs, and the number of
low-income persons residing in the consumer-owned utility's service territory. A municipal
utility that furnishes natural gas service must spend at least 0.2 percent of the municipal
utility's most recent three-year average gross operating revenue from residential customers
in Minnesota on energy conservation programs for low-income households. A
consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the
consumer-owned utility's gross operating revenue from residential customers in Minnesota
on energy conservation programs for low-income households. The requirement under this
paragraph applies to each generation and transmission cooperative association's aggregate
gross operating revenue from the sale of electricity to residential customers in Minnesota
by all of the association's member distribution cooperatives.

(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned
utility may contribute money to the energy and conservation account established in section
216B.241, subdivision 2a. An energy conservation optimization plan must state the amount
of contributions the consumer-owned utility plans to make to the energy and conservation
account. Contributions to the account must be used for energy conservation programs serving
low-income households, including renters, located in the service area of the consumer-owned
utility making the contribution. Contributions must be remitted to the commissioner by
February 1 each year.

(c) The commissioner must establish energy conservation programs for low-income
households funded through contributions to the energy and conservation account under
paragraph (b). When establishing energy conservation programs for low-income households,
the commissioner must consult political subdivisions, utilities, and nonprofit and community
organizations, including organizations providing energy and weatherization assistance to
low-income households. The commissioner must record and report expenditures and energy
savings achieved as a result of energy conservation programs for low-income households
funded through the energy and conservation account in the report required under section
216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political
subdivision, nonprofit or community organization, public utility, municipality, or
consumer-owned utility to implement low-income programs funded through the energy and
conservation account.

(d) A consumer-owned utility may petition the commissioner to modify the required
spending under this subdivision if the consumer-owned utility and the commissioner were
unable to expend the amount required for three consecutive years.

(e) The commissioner must develop and establish guidelines for determining the eligibility
of multifamily buildings to participate in energy conservation programs provided to
low-income households. Notwithstanding the definition of low-income household in section
216B.2402, a consumer-owned utility or association may apply the most recent guidelines
published by the department for purposes of determining the eligibility of multifamily
buildings to participate in low-income programs. The commissioner must convene a
stakeholder group to review and update these guidelines by August 1, 2021, and at least
once every five years thereafter. The stakeholder group must include but is not limited to
representatives of public utilities; municipal electric or gas utilities; electric cooperative
associations; multifamily housing owners and developers; and low-income advocates.

(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy
conservation programs may be spent on preweatherization measures. A consumer-owned
utility is prohibited from claiming energy savings from preweatherization measures toward
the consumer-owned utility's energy savings goal.

(g) The commissioner must, by order, establish a list of preweatherization measures
eligible for inclusion in low-income energy conservation programs no later than March 15,
2022.

(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate
account in the special revenue fund in the state treasury. A consumer-owned utility may
elect to contribute money to the Healthy AIR account to provide preweatherization measures
for households eligible for weatherization assistance from the state weatherization assistance
program in section 216C.264. Remediation activities must be executed in conjunction with
federal weatherization assistance program services. Money contributed to the account by a
consumer-owned utility counts toward: (1) the minimum low-income spending requirement
under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f).
Money in the account is annually appropriated to the commissioner of commerce to pay for
Healthy AIR-related activities.

new text begin (i) This paragraph applies to a consumer-owned utility that supplies electricity to a
low-income household whose primary heating fuel is supplied by an entity other than a
public utility. Any spending on space and water heating energy conservation improvements
and efficient fuel-switching by the consumer-owned utility on behalf of the low-income
household may be applied to the consumer owned utility's spending requirement under
paragraph (a). To the maximum extent possible, a consumer-owned utility providing services
under this paragraph must offer the services in conjunction with weatherization services
provided under section 216C.264.
new text end

Sec. 10.

Minnesota Statutes 2022, section 216B.2403, subdivision 8, is amended to read:

Subd. 8.

Criteria for efficient fuel-switching improvements.

(a) A fuel-switching
improvement is deemed efficient if, applying the technical criteria established under section
216B.241, subdivision 1d, paragraph (e), the improvement, relative to the fuel being
displaced:

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis new text begin , using (i) the consumer-owned utility's or the utility's
electricity supplier's annual system average efficiency, or (ii) if the utility elects, a seasonal,
monthly, or more granular level of analysis for the electric utility system over the measure's
life new text end ;

(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured deleted text begin based on the hourly emissions profile of the consumer-owned utility or
the utility's electricity supplier, as reported in the most recent resource plan approved by
the commission under section 216B.2422. If the hourly emissions profile is not available,
the commissioner must develop a method consumer-owned utilities must use to estimate
that value deleted text end new text begin using (i) the consumer-owned utility's or the utility's electricity supplier's annual
average emissions factor, or (ii) if the utility elects, the seasonal, monthly, or more granular
level of analysis for the electric utility system over the measure's life new text end ; new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the
consumer-owned utility, participants, and society deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) is installed and operated in a manner that improves the consumer-owned utility's
system load factor.
deleted text end

(b) For purposes of this subdivision, "source energy" means the total amount of primary
energy required to deliver energy services, adjusted for losses in generation, transmission,
and distribution, and expressed on a fuel-neutral basis.

Sec. 11.

Minnesota Statutes 2022, section 216B.241, subdivision 2, is amended to read:

Subd. 2.

Public utility; energy conservation and optimization plans.

(a) The
commissioner may require a public utility to make investments and expenditures in energy
conservation improvements, explicitly setting forth the interest rates, prices, and terms under
which the improvements must be offered to the customers.

(b) A public utility shall file an energy conservation and optimization plan by June 1,
on a schedule determined by order of the commissioner, but at least every three years. As
provided in subdivisions 11 to 13, plans may include programs for efficient fuel-switching
improvements and load management. An individual utility program may combine elements
of energy conservation, load management, or efficient fuel-switching. The plan must estimate
the lifetime energy savings and cumulative lifetime energy savings projected to be achieved
under the plan. A plan filed by a public utility by June 1 must be approved or approved as
modified by the commissioner by December 1 of that same year.

(c) The commissioner shall evaluate the plan on the basis of cost-effectiveness and the
reliability of technologies employed. The commissioner's order must provide to the extent
practicable for a free choice, by consumers participating in an energy conservation program,
of the device, method, material, or project constituting the energy conservation improvement
and for a free choice of the seller, installer, or contractor of the energy conservation
improvement, provided that the device, method, material, or project seller, installer, or
contractor is duly licensed, certified, approved, or qualified, including under the residential
conservation services program, where applicable.

(d) The commissioner may require a utility subject to subdivision 1c to make an energy
conservation improvement investment or expenditure whenever the commissioner finds
that the improvement will result in energy savings at a total cost to the utility less than the
cost to the utility to produce or purchase an equivalent amount of new supply of energy.

(e) Each public utility subject to this subdivision may spend and invest annually up to
ten percent of the total amount deleted text begin spent and invested deleted text end new text begin that the public utility spends and invests new text end
on energy conservation new text begin , efficient fuel-switching, or load management new text end improvements under
this section deleted text begin by the public utility deleted text end on research and development projects that meet the new text begin applicable
new text end definition of energy conservation new text begin , efficient fuel-switching, or load management new text end improvement.

(f) The commissioner shall consider and may require a public utility to undertake an
energy conservation deleted text begin program deleted text end new text begin or efficient fuel-switching program, subject to the requirements
of subdivisions 11 and 12, that is new text end suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization. new text begin In approving a proposal
under this paragraph, the commissioner must consider the qualifications and experience of
the entity proposing the program and any other criteria the commissioner deems relevant.
new text end

(g) A public utility, a political subdivision, or a nonprofit or community organization
that has suggested an energy conservation program, the attorney general acting on behalf
of consumers and small business interests, or a public utility customer that has suggested
an energy conservation program and is not represented by the attorney general under section
8.33 may petition the commission to modify or revoke a department decision under this
section, and the commission may do so if it determines that the energy conservation program
is not cost-effective, does not adequately address the residential conservation improvement
needs of low-income persons, has a long-range negative effect on one or more classes of
customers, or is otherwise not in the public interest. The commission shall reject a petition
that, on its face, fails to make a reasonable argument that an energy conservation program
is not in the public interest.

(h) The commissioner may order a public utility to include, with the filing of the public
utility's annual status report, the results of an independent audit of the public utility's
conservation improvement programs and expenditures performed by the department or an
auditor with experience in the provision of energy conservation and energy efficiency
services approved by the commissioner and chosen by the public utility. The audit must
specify the energy savings or increased efficiency in the use of energy within the service
territory of the public utility that is the result of the public utility's spending and investments.
The audit must evaluate the cost-effectiveness of the public utility's conservation programs.

(i) The energy conservation and optimization plan of each public utility subject to this
section must include activities to improve energy efficiency in public schools served by the
utility. As applicable to each public utility, at a minimum the activities must include programs
to increase the efficiency of the school's lighting and heating and cooling systems, and to
provide for building recommissioning, building operator training, and opportunities to
educate students, teachers, and staff regarding energy efficiency measures implemented at
the school.

(j) The commissioner may require investments or spending greater than the amounts
proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose
most recent advanced forecast required under section 216B.2422 projects a peak demand
deficit of 100 megawatts or more within five years under midrange forecast assumptions.

(k) A public utility filing a conservation and optimization plan that includes an efficient
fuel-switching program deleted text begin to achieve the utility's energy savings goal deleted text end must, as part of the filing,
demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuels deleted text end that the
requirements of subdivisions 11 or 12 are met, as applicable, using a full fuel-cycle energy
analysis.

Sec. 12.

Minnesota Statutes 2022, section 216B.241, subdivision 11, is amended to read:

Subd. 11.

Programs for efficient fuel-switching improvements; electric utilities.

(a)
A public utility providing electric service at retail may include in the plan required under
subdivision 2 new text begin a proposed goal for efficient fuel-switching improvements that the utility
expects to achieve under the plan and the new text end programs to implement efficient fuel-switching
improvements or combinations of energy conservation improvements, fuel-switching
improvements, and load management. For each program, the public utility must provide a
proposed budget, an analysis of the program's cost-effectiveness, and estimated net energy
and demand savings.

(b) The department may approve proposed programs for efficient fuel-switching
improvements if the department determines the improvements meet the requirements of
paragraph (d). deleted text begin For fuel-switching improvements that require the deployment of electric
technologies, the department must also consider whether the fuel-switching improvement
can be operated in a manner that facilitates the integration of variable renewable energy
into the electric system. The net benefits from an efficient fuel-switching improvement that
is integrated with an energy efficiency program approved under this section may be counted
toward the net benefits of the energy efficiency program, if the department determines the
primary purpose and effect of the program is energy efficiency.
deleted text end

(c) A public utility may file a rate schedule with the commission that provides for annual
cost recovery of reasonable and prudent costs to implement and promote efficient
fuel-switching programs. The new text begin utility, department, or other entity may propose, and the
new text end commission may deleted text begin not deleted text end approve new text begin , modify, or reject, new text end a new text begin proposal for a new text end financial incentive to
encourage efficient fuel-switching programs operated by a public utility providing electric
service new text begin approved under this subdivision. When making a decision on the financial incentive
proposal, the commission must apply the considerations established in section 216B.16,
subdivision 6c, paragraphs (b) and (c) new text end .

(d) A fuel-switching improvement is deemed efficient if, applying the technical criteria
established under section 216B.241, subdivision 1d, paragraph (e), the improvement meets
the following criteria, relative to the fuel that is being displaced:

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis new text begin , using (i) the utility's annual system average efficiency,
or (ii) if the utility elects, a seasonal, monthly, or more granular level of analysis for the
electric utility system over the measure's life new text end ;

(2) results in a net reduction of statewide greenhouse gas emissions as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric utility, the reduction in emissions must be measured
deleted text begin based on the hourly emission profile of the electric utility, using the hourly emissions profile
in the most recent resource plan approved by the commission under section 216B.2422 deleted text end new text begin
using (i) the utility's annual average emissions factor, or (ii) if the utility elects, a seasonal,
monthly, or more granular level of analysis for the electric utility system over the measure's
life new text end ; new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the utility,
participants, and society deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) is installed and operated in a manner that improves the utility's system load factor.
deleted text end

(e) For purposes of this subdivision, "source energy" means the total amount of primary
energy required to deliver energy services, adjusted for losses in generation, transmission,
and distribution, and expressed on a fuel-neutral basis.

Sec. 13.

Minnesota Statutes 2022, section 216B.241, subdivision 12, is amended to read:

Subd. 12.

Programs for efficient fuel-switching improvements; natural gas
utilities.

(a) As part of a public utility's plan filed under subdivision 2, a public utility that
provides natural gas service to Minnesota retail customers may propose one or more programs
to install electric technologies that reduce the consumption of natural gas by the utility's
retail customers as an energy conservation improvement. The commissioner may approve
a proposed program if the commissioner, applying the technical criteria developed under
section 216B.241, subdivision 1d, paragraph (e), determines that:

(1) the electric technology to be installed meets the criteria established under section
216B.241, subdivision 11, paragraph (d), clauses (1) and (2); and

(2) the program is cost-effective, considering the costs and benefits to ratepayers, the
utility, participants, and society.

(b) If a program is approved by the commission under this subdivision, the public utility
may count the program's energy savings toward its energy savings goal under section
216B.241, subdivision 1c. Notwithstanding section 216B.2402, subdivision 4, efficient
fuel-switching achieved through programs approved under this subdivision is energy
conservation.

(c) A public utility may file rate schedules with the commission that provide annual
cost-recovery for programs approved by the department under this subdivision, including
reasonable and prudent costs to implement and promote the programs.

(d) The commission may approve, modify, or reject a proposal made by the department
or a utility for an incentive plan to encourage efficient fuel-switching programs approved
under this subdivision, applying the considerations established under section 216B.16,
subdivision 6c, paragraphs (b) and (c). The commission may approve a financial incentive
mechanism that is calculated based on the combined energy savings and net benefits that
the commission has determined have been achieved by a program approved under this
subdivision, provided the commission determines that the financial incentive mechanism
is in the ratepayers' interest.

deleted text begin (e) A public utility is not eligible for a financial incentive for an efficient fuel-switching
program under this subdivision in any year in which the utility achieves energy savings
below one percent of gross annual retail energy sales, excluding savings achieved through
fuel-switching programs.
deleted text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 216C.08, is amended to read:

216C.08 JURISDICTION.

new text begin (a) new text end The commissioner has sole authority and responsibility deleted text begin for the administration of
sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin to administer this chapter new text end . Other laws
notwithstanding, the authority granted new text begin to new text end the commissioner deleted text begin shall supersede deleted text end new text begin under this section
supersedes new text end the authority given any other agency whenever overlapping, duplication, or
additional administrative or legal procedures might occur in deleted text begin the administration of sections
216C.05 to 216C.30 and 216C.375 deleted text end new text begin administering this chapter new text end . The commissioner shall
consult with other state departments or agencies in matters related to energy and shall
contract with deleted text begin them deleted text end new text begin the other state departments or agencies new text end to provide appropriate services
to effectuate the purposes of deleted text begin sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin this chapter new text end . Any
other department, agency, or official of this state or political subdivision thereof which
would in any way affect the administration or enforcement of deleted text begin sections 216C.05 to 216C.30
and 216C.375 deleted text end new text begin this chapter new text end shall cooperate and coordinate all activities with the commissioner
to assure orderly and efficient administration and enforcement of deleted text begin sections 216C.05 to
216C.30 and 216C.375 deleted text end new text begin this chapter new text end .

new text begin (b) new text end The commissioner shall designate a liaison officer whose duty shall be to insure the
maximum possible consistency in procedures and to eliminate duplication between the
commissioner and the other agencies that may be involved in energy.

Sec. 15.

Minnesota Statutes 2023 Supplement, section 216C.09, is amended to read:

216C.09 COMMISSIONER DUTIES.

(a) The commissioner shall:

(1) manage the department as the central repository within the state government for the
collection of data on energy;

(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the
event of an impending serious shortage of energy, or a threat to public health, safety, or
welfare;

(3) undertake a continuing assessment of trends in the consumption of all forms of energy
and analyze the social, economic, and environmental consequences of these trends;

(4) carry out energy deleted text begin conservation deleted text end measures as specified by the legislature and recommend
to the governor and the legislature additional energy policies and conservation measures as
required to meet the objectives of deleted text begin sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin this chapter new text end ;

(5) collect and analyze data relating to present and future demands and resources for all
sources of energy;

(6) evaluate policies governing the establishment of rates and prices for energy as related
to energy conservation, and other goals and policies of deleted text begin sections 216C.05 to 216C.30 and
216C.375 deleted text end new text begin this chapter new text end , and make recommendations for changes in energy pricing policies
and rate schedules;

(7) study the impact and relationship of the state energy policies to international, national,
and regional energy policies;

(8) design and implement a state program for the conservation of energy; this program
shall include but not be limited to, general commercial, industrial, and residential, and
transportation areas; such program shall also provide for the evaluation of energy systems
as they relate to lighting, heating, refrigeration, air conditioning, building design and
operation, and appliance manufacturing and operation;

(9) inform and educate the public about the sources and uses of energy and the ways in
which persons can conserve energy;

(10) dispense funds made available for the purpose of research studies and projects of
professional and civic orientation, which are related to either energy conservation, resource
recovery, or the development of alternative energy technologies which conserve
nonrenewable energy resources while creating minimum environmental impact;

(11) charge other governmental departments and agencies involved in energy-related
activities with specific information gathering goals and require that those goals be met;

(12) design a comprehensive program for the development of indigenous energy
resources. The program shall include, but not be limited to, providing technical,
informational, educational, and financial services and materials to persons, businesses,
municipalities, and organizations involved in the development of solar, wind, hydropower,
peat, fiber fuels, biomass, and other alternative energy resources. The program shall be
evaluated by the alternative energy technical activity; and

(13) dispense loans, grants, or other financial aid from money received from litigation
or settlement of alleged violations of federal petroleum-pricing regulations made available
to the department for that purpose.

(b) Further, the commissioner may participate fully in hearings before the Public Utilities
Commission on matters pertaining to rate design, cost allocation, efficient resource utilization,
utility conservation investments, small power production, cogeneration, and other rate issues.
The commissioner shall support the policies stated in section 216C.05 and shall prepare
and defend testimony proposed to encourage energy conservation improvements as defined
in section 216B.241.

Sec. 16.

Minnesota Statutes 2022, section 216C.10, is amended to read:

216C.10 COMMISSIONER POWERS.

(a) The commissioner may:

(1) adopt rules under chapter 14 as necessary to carry out the purposes of deleted text begin sections
216C.05 to 216C.30 deleted text end new text begin this chapter new text end ;

(2) make all contracts under deleted text begin sections 216C.05 to 216C.30 deleted text end new text begin this chapter new text end and do all things
necessary to cooperate with the United States government, and to qualify for, accept, and
disburse any grant intended deleted text begin for the administration of sections 216C.05 to 216C.30 deleted text end new text begin to
administer this chapter new text end ;

(3) provide on-site technical assistance to units of local government in order to enhance
local capabilities for dealing with energy problems;

(4) administer for the state, energy programs under federal law, regulations, or guidelines,
and coordinate the programs and activities with other state agencies, units of local
government, and educational institutions;

(5) develop a state energy investment plan with yearly energy conservation and alternative
energy development goals, investment targets, and marketing strategies;

(6) perform market analysis studies relating to conservation, alternative and renewable
energy resources, and energy recovery;

(7) assist with the preparation of proposals for innovative conservation, renewable,
alternative, or energy recovery projects;

(8) manage and disburse funds made available for the purpose of research studies or
demonstration projects related to energy conservation or other activities deemed appropriate
by the commissioner;

(9) intervene in certificate of need proceedings before the Public Utilities Commission;

(10) collect fees from recipients of loans, grants, or other financial aid from money
received from litigation or settlement of alleged violations of federal petroleum-pricing
regulations, which fees must be used to pay the department's costs in administering those
financial aids; and

(11) collect fees from proposers and operators of conservation and other energy-related
programs that are reviewed, evaluated, or approved by the department, other than proposers
that are political subdivisions or community or nonprofit organizations, to cover the
department's cost in making the reviewal, evaluation, or approval and in developing additional
programs for others to operate.

(b) Notwithstanding any other law, the commissioner is designated the state agent to
apply for, receive, and accept federal or other funds made available to the state for the
purposes of deleted text begin sections 216C.05 to 216C.30 deleted text end new text begin this chapter new text end .

Sec. 17.

Minnesota Statutes 2022, section 216C.435, subdivision 3a, is amended to read:

Subd. 3a.

deleted text begin Cost-effective deleted text end Energy improvements.

" deleted text begin Cost-effective deleted text end Energy improvements"
means:

(1) any new construction, renovation, or retrofitting of qualifying commercial real
property to improve energy efficiency that new text begin : (i) new text end is permanently affixed to the property deleted text begin , deleted text end new text begin ; and
(ii) new text end results in a net reduction in energy consumption deleted text begin without altering the principal source
of energy, and has been identified deleted text end new text begin or greenhouse gas emissions, as documented new text end in an energy
audit deleted text begin as repaying the purchase and installation costs in 20 years or less, deleted text end based on the amount
of future energy saved deleted text begin and estimated future energy prices deleted text end new text begin or emissions avoided new text end ;

(2) any renovation or retrofitting of qualifying residential real property that is permanently
affixed to the property and is eligible to receive an incentive through a program offered by
the electric or natural gas utility that provides service under section 216B.241 to the property
or is otherwise determined to be deleted text begin a cost-effective deleted text end new text begin an eligible new text end energy improvement by the
commissioner under section 216B.241, subdivision 1d, paragraph (a);

(3) permanent installation of new or upgraded electrical circuits and related equipment
to enable electrical vehicle charging; or

(4) a solar voltaic or solar thermal energy system attached to, installed within, or
proximate to a building that generates electrical or thermal energy from a renewable energy
source that has been deleted text begin identified deleted text end new text begin documented new text end in an energy audit or renewable energy system
feasibility study deleted text begin as repaying their purchase and installation costs in 20 years or less, based
on the amount of future energy saved and estimated future energy prices deleted text end new text begin , along with the
estimated amount of related renewable energy production new text end .

Sec. 18.

Minnesota Statutes 2022, section 216C.435, subdivision 3b, is amended to read:

Subd. 3b.

Commercial PACE loan contractor.

"Commercial PACE loan contractor"
means a person or entity that installs deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements financed
under a commercial PACE loan program.

Sec. 19.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 3e. new text end

new text begin Eligible improvement. new text end

new text begin "Eligible improvement" means one or more energy
improvements, resiliency improvements, or water improvements made to qualifying real
property.
new text end

Sec. 20.

Minnesota Statutes 2022, section 216C.435, subdivision 4, is amended to read:

Subd. 4.

Energy audit.

"Energy audit" means a formal evaluation of the energy
consumption of a building by a certified energy auditor, whose certification is approved by
the commissioner, for the purpose of identifying appropriate energy improvements that
could be made to the building and including an estimate of the deleted text begin length of time a specific
energy improvement will take to repay its purchase and installation costs, based on the
amount of energy saved and estimated future energy prices deleted text end new text begin effective useful life, the reduction
of energy consumption, and the related avoided greenhouse gas emissions resulting from
the proposed eligible improvements new text end .

Sec. 21.

Minnesota Statutes 2023 Supplement, section 216C.435, subdivision 8, is amended
to read:

Subd. 8.

Qualifying commercial real property.

"Qualifying commercial real property"
means a multifamily residential dwelling, a commercial or industrial building, or farmland,
as defined in section 216C.436, subdivision 1b, that the implementing entity has determined,
after review of an energy audit, renewable energy system feasibility study, new text begin water
improvement study, resiliency improvement study, new text end or agronomic assessment, as defined in
section 216C.436, subdivision 1b, can benefit from deleted text begin the installation of cost-effective energy deleted text end new text begin
installing eligible new text end improvements or land and water improvements, as defined in section
216C.436, subdivision 1b. Qualifying commercial real property includes new construction.

Sec. 22.

Minnesota Statutes 2022, section 216C.435, subdivision 10, is amended to read:

Subd. 10.

Renewable energy system feasibility study.

"Renewable energy system
feasibility study" means a written study, conducted by a contractor trained to perform that
analysis, for the purpose of determining the feasibility of installing a renewable energy
system in a building, including an estimate of the deleted text begin length of time a specific deleted text end new text begin effective useful
life, the production of renewable energy, and any related avoided greenhouse gas emissions
of the proposed new text end renewable energy system deleted text begin will take to repay its purchase and installation
costs, based on the amount of energy saved and estimated future energy prices. For a
geothermal energy improvement, the feasibility study must calculate net savings in terms
of nongeothermal energy and costs deleted text end .

Sec. 23.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 11a. new text end

new text begin Resiliency improvement. new text end

new text begin "Resiliency improvement" means one or more
installations or modifications to eligible commercial real property that are designed to
improve a property's resiliency by improving the eligible real property's:
new text end

new text begin (1) structural integrity for seismic events;
new text end

new text begin (2) indoor air quality;
new text end

new text begin (3) durability to resist wind, fire, and flooding;
new text end

new text begin (4) ability to withstand an electric power outage;
new text end

new text begin (5) stormwater control measures, including structural and nonstructural measures to
mitigate stormwater runoff;
new text end

new text begin (6) ability to mitigate the impacts of extreme temperatures; or
new text end

new text begin (7) ability to mitigate greenhouse gas embodied emissions from the eligible real property.
new text end

Sec. 24.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 11b. new text end

new text begin Resiliency improvement feasibility study. new text end

new text begin "Resiliency improvement
feasibility study" means a written study that is conducted by a contractor trained to perform
the analysis to: (1) determine the feasibility of installing a resiliency improvement; (2)
document the improved resiliency capabilities of the property; and (3) estimate the effective
useful life of the proposed resiliency improvements.
new text end

Sec. 25.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Water improvement. new text end

new text begin "Water improvement" means one or more installations
or modifications to qualifying commercial real property that are designed to improve water
efficiency or water quality by:
new text end

new text begin (1) reducing water consumption;
new text end

new text begin (2) improving the quality, potability, or safety of water for the qualifying property; or
new text end

new text begin (3) conserving or remediating water, in whole or in part, on qualifying real property.
new text end

Sec. 26.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Water improvement feasibility study. new text end

new text begin "Water improvement feasibility study"
means a written study that is conducted by a contractor trained to perform the analysis to:
(1) determine the appropriate water improvements that could be made to the building; and
(2) estimate the effective useful life, the reduction of water consumption, and any
improvement in water quality resulting from the proposed water improvements.
new text end

Sec. 27.

Minnesota Statutes 2022, section 216C.436, subdivision 1, is amended to read:

Subdivision 1.

Program purpose and authority.

An implementing entity may establish
a commercial PACE loan program to finance deleted text begin cost-effective deleted text end energy new text begin , water, and resiliency new text end
improvements to enable owners of qualifying commercial real property to pay for deleted text begin the
cost-effective energy deleted text end new text begin eligible new text end improvements to the qualifying real property with the net
proceeds and interest earnings of revenue bonds authorized in this section. An implementing
entity may limit the number of qualifying commercial real properties for which a property
owner may receive program financing.

Sec. 28.

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 1b, is
amended to read:

Subd. 1b.

Definitions.

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

(b) "Agronomic assessment" means a study by an independent third party that assesses
the environmental impacts of proposed land and water improvements on farmland.

(c) "Farmland" means land classified as 2a, 2b, or 2c for property tax purposes under
section 273.13, subdivision 23.

(d) "Land and water improvement" means:

(1) an improvement to farmland that:

(i) is permanent;

(ii) results in improved agricultural profitability or resiliency;

(iii) reduces the environmental impact of agricultural production; and

(iv) if the improvement affects drainage, complies with the most recent versions of the
applicable following conservation practice standards issued by the United States Department
of Agriculture's Natural Resources Conservation Service: Drainage Water Management
(Code 554), Saturated Buffer (Code 604), Denitrifying Bioreactor (Code 605), and
Constructed Wetland (Code 656); or

(2) water conservation and quality measures, which include permanently affixed
equipment, appliances, or improvements that reduce a property's water consumption or that
enable water to be managed more efficiently.

(e) "Resiliency" means new text begin :
new text end

new text begin (1) new text end the ability of farmland to maintain and enhance profitability, soil health, and water
quality deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) the ability to mitigate greenhouse gas embodied emissions from an eligible real
property; or
new text end

new text begin (3) an increase in building resilience through flood mitigation, stormwater management,
wildfire and wind resistance, energy storage use, or microgrid use.
new text end

Sec. 29.

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 2, is amended
to read:

Subd. 2.

Program requirements.

A commercial PACE loan program must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit, renewable energy system feasibility study, new text begin resiliency
improvement study, water improvement study, new text end or agronomic or soil health assessment to
be conducted on the qualifying commercial real property and reviewed by the implementing
entity prior to approval of the financing;

(3) require the inspection new text begin or verification new text end of all deleted text begin installations and a performance verification
of at least ten percent of the cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements financed by the program;

(4) not prohibit the financing of all deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land
and water improvements not otherwise prohibited by this section;

(5) require that all deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements be made to a qualifying commercial real property prior to, or in conjunction
with, an applicant's repayment of financing for deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements
or land and water improvements for deleted text begin that deleted text end new text begin the qualifying commercial real new text end property;

(6) have deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water improvements
financed by the program performed by a licensed contractor as required by chapter 326B
or other law or ordinance;

(7) require disclosures in the loan document to borrowers by the implementing entity
of: (i) the risks involved in borrowing, including the risk of foreclosure if a tax delinquency
results from a default; and (ii) all the terms and conditions of the commercial PACE loan
and the installation of deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements, including the interest rate being charged on the loan;

(8) provide financing only to those who demonstrate an ability to repay;

(9) not provide financing for a qualifying commercial real property in which the owner
is not current on mortgage or real property tax payments;

(10) require a petition to the implementing entity by all owners of the qualifying
commercial real property requesting collections of repayments as a special assessment under
section 429.101;

(11) provide that payments and assessments are not accelerated due to a default and that
a tax delinquency exists only for assessments not paid when due;

(12) require that liability for special assessments related to the financing runs with the
qualifying commercial real property; and

(13) prior to financing any improvements to or imposing any assessment upon qualifying
commercial real property, require notice to and written consent from the mortgage lender
of any mortgage encumbering or otherwise secured by the qualifying commercial real
property.

Sec. 30.

Minnesota Statutes 2022, section 216C.436, subdivision 4, is amended to read:

Subd. 4.

Financing terms.

Financing provided under this section must have:

(1) a cost-weighted average maturity not exceeding the useful life of the deleted text begin energy deleted text end new text begin eligible new text end
improvements installed, as determined by the implementing entity, but in no event may a
term exceed deleted text begin 20 deleted text end new text begin 30 new text end years;

(2) a principal amount not to exceed the lesser of:

(i) the greater of deleted text begin 20 deleted text end new text begin 30 new text end percent of the assessed value of the real property on which the
improvements are to be installed or deleted text begin 20 deleted text end new text begin 30 new text end percent of the real property's appraised value,
accepted or approved by the mortgage lender; or

(ii) the actual cost of installing the deleted text begin energy deleted text end new text begin eligible new text end improvements, including the costs of
necessary equipment, materials, and labor deleted text begin , deleted text end new text begin ; new text end the costs of each related energy audit deleted text begin or deleted text end new text begin , new text end
renewable energy system feasibility study, new text begin water improvement study, or resiliency
improvement study; new text end and the cost of verification of installation; and

(3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.

Sec. 31.

Minnesota Statutes 2022, section 216C.436, subdivision 7, is amended to read:

Subd. 7.

Repayment.

An implementing entity that finances an deleted text begin energy deleted text end new text begin eligible new text end
improvement under this section must:

(1) secure payment with a lien against the qualifying commercial real property; and

(2) collect repayments as a special assessment as provided for in section 429.101 or by
charter, provided that special assessments may be made payable in up to deleted text begin 20 deleted text end new text begin 30 new text end equal annual
installments.

If the implementing entity is an authority, the local government that authorized the
authority to act as implementing entity shall impose and collect special assessments necessary
to pay debt service on bonds issued by the implementing entity under subdivision 8, and
shall transfer all collections of the assessments upon receipt to the authority.

Sec. 32.

Minnesota Statutes 2022, section 216C.436, subdivision 8, is amended to read:

Subd. 8.

Bond issuance; repayment.

(a) An implementing entity may issue revenue
bonds as provided in chapter 475 for the purposes of this section and section 216C.437,
provided the revenue bond must not be payable more than deleted text begin 20 deleted text end new text begin 30 new text end years from the date of
issuance.

(b) The bonds must be payable as to both principal and interest solely from the revenues
from the assessments established in subdivision 7 and section 216C.437, subdivision 28.

(c) No holder of bonds issued under this subdivision may compel any exercise of the
taxing power of the implementing entity that issued the bonds to pay principal or interest
on the bonds, and if the implementing entity is an authority, no holder of the bonds may
compel any exercise of the taxing power of the local government. Bonds issued under this
subdivision are not a debt or obligation of the issuer or any local government that issued
them, nor is the payment of the bonds enforceable out of any money other than the revenue
pledged to the payment of the bonds.

Sec. 33.

Minnesota Statutes 2022, section 216C.436, subdivision 10, is amended to read:

Subd. 10.

Improvements; real property or fixture.

deleted text begin A cost-effective energy deleted text end new text begin An eligible new text end
improvement financed under a PACE loan program, including all equipment purchased in
whole or in part with loan proceeds under a loan program, is deemed real property or a
fixture attached to the real property.

Sec. 34. new text begin ADVANCED NUCLEAR TECHNOLOGIES STUDY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "advanced nuclear reactor" means a small modular reactor or a molten sodium reactor;
new text end

new text begin (2) "molten sodium reactor" means a nuclear fission reactor that uses a fluid fuel in the
form of very hot fluoride or chloride salt; and
new text end

new text begin (3) "small modular reactor" means a nuclear fission reactor that (i) has a capacity of 300
megawatts or less, and (ii) can be factory assembled and transported as a unit.
new text end

new text begin Subd. 2. new text end

new text begin Study required. new text end

new text begin (a) The commissioner of commerce must conduct a study
evaluating the potential costs, benefits, and impacts of advanced nuclear reactors operating
in Minnesota.
new text end

new text begin (b) At a minimum, the study must analyze the impacts the operation of advanced nuclear
reactors have on:
new text end

new text begin (1) air emissions from electric generating facilities in Minnesota;
new text end

new text begin (2) retail electricity prices;
new text end

new text begin (3) reliability of Minnesota's electric grid;
new text end

new text begin (4) the state's air resources, water resources, land resources, and public health, including
the impact of any waste material generated by the reactors;
new text end

new text begin (5) new employment opportunities for Minnesota workers;
new text end

new text begin (6) local economic development;
new text end

new text begin (7) Minnesota's eligible energy technology standard under Minnesota Statutes, section
216B.1691, subdivision 2a; and
new text end

new text begin (8) Minnesota's carbon-free standard under Minnesota Statutes, section 216B.1691,
subdivision 2g.
new text end

new text begin (c) The study must also identify Minnesota statutes and administrative rules that would
require modifications in order to enable the construction and operation of advanced nuclear
reactors.
new text end

new text begin (d) The study must evaluate the technologies and methods most likely to minimize the
environmental impacts of nuclear waste and the costs of managing nuclear waste.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of commerce must submit the results of the study
under subdivision 2 to the chairs and ranking minority members of the legislative committees
having jurisdiction over energy finance and policy no later than January 31, 2025.
new text end

Sec. 35. new text begin THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Direction. new text end

new text begin The Public Utilities Commission must establish and appoint
a thermal energy network deployment work group to examine the potential regulatory
opportunities for regulated natural gas utilities to deploy thermal energy networks and
potential barriers to development. The work group must examine the public benefits, costs,
and impacts of deployment of thermal energy networks, as well as examine rate design
options.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The work group consists of at least the following:
new text end

new text begin (1) representatives of the Department of Commerce;
new text end

new text begin (2) representatives of the Department of Health;
new text end

new text begin (3) representatives of the Pollution Control Agency;
new text end

new text begin (4) representatives of the Department of Natural Resources;
new text end

new text begin (5) representatives of the Office of the Attorney General;
new text end

new text begin (6) representatives from utilities;
new text end

new text begin (7) representatives from clean energy advocacy organizations;
new text end

new text begin (8) representatives from labor organizations;
new text end

new text begin (9) geothermal technology providers;
new text end

new text begin (10) representatives from consumer protection organizations;
new text end

new text begin (11) representatives from cities; and
new text end

new text begin (12) representatives from low-income communities.
new text end

new text begin (b) The executive director may invite others to participate in one or more meetings of
the work group.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The work group must prepare a report containing findings and
recommendations regarding how to deploy thermal energy networks within a regulated
context in a manner that protects the public interest and considers reliability, affordability,
environmental impacts, and socioeconomic impacts.
new text end

new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin The work group must submit a report detailing the work
group's findings and recommendations to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over energy policy and finance by
December 31, 2025. The work group terminates the day after the report under this subdivision
is submitted.
new text end

new text begin Subd. 5. new text end

new text begin Notice and comment period. new text end

new text begin The executive secretary of the Public Utilities
Commission must file the completed report in Public Utilities Commission Docket No.
G-999/CI-21-565 and provide notice to all docket participants and other interested persons
that comments on the findings and recommendations may be filed in the docket.
new text end

new text begin Subd. 6. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "thermal energy network" means
a project that provides heating and cooling to multiple buildings connected via underground
piping containing fluids that, in concert with heat pumps, exchange thermal energy from
the earth and underground or surface waters.
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. 36. new text begin THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
new text end

new text begin (a) The Department of Commerce must conduct or contract for a study to determine the
suitability of sites to deploy thermal energy networks statewide.
new text end

new text begin (b) The study must:
new text end

new text begin (1) identify areas more and less suitable for deployment of thermal energy networks
statewide; and
new text end

new text begin (2) identify potential barriers to thermal energy networks and potential ways to address
the barriers.
new text end

new text begin (c) In determining site suitability, the study must consider:
new text end

new text begin (1) geologic or hydrologic access to thermal storage;
new text end

new text begin (2) existing built environment, including but not limited to age, density, building uses,
existing heating and cooling systems, and existing electrical services;
new text end

new text begin (3) the condition of existing natural gas infrastructure;
new text end

new text begin (4) road and street conditions, including planned replacement or maintenance;
new text end

new text begin (5) local land use regulation;
new text end

new text begin (6) area permitting requirements; and
new text end

new text begin (7) whether the area is an environmental justice area, as defined in Minnesota Statutes,
section 116.065, subdivision 1, paragraph (e).
new text end

new text begin (c) No later than January 15, 2026, the Department of Commerce must submit a written
report documenting the study's findings to the chairs and ranking minority members of the
senate and house of representatives committees with jurisdiction over energy policy and
finance.
new text end

APPENDIX

Repealed Minnesota Statutes: S4942-2

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.