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SF 780

1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 04/18/2017 12:18pm

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1.1A bill for an act
1.2relating to agriculture; appropriating money for agriculture-related purposes;
1.3making policy and technical changes to agriculture-related provisions; authorizing
1.4a transfer, a working group, and accounts; modifying certificate fees; requiring
1.5reports;amending Minnesota Statutes 2016, sections 3.7371; 17.119, subdivisions
1.61, 2; 18.79, subdivision 18; 28A.081; 41A.12, subdivision 3; 344.03, subdivision
1.71; Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
1.8as amended; proposing coding for new law in Minnesota Statutes, chapters 17;
1.918B; repealing Minnesota Statutes 2016, section 383C.809.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11ARTICLE 1
1.12AGRICULTURE APPROPRIATIONS

1.13
Section 1. AGRICULTURE APPROPRIATIONS.
1.14The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.15and for the purposes specified in this article. The appropriations are from the general fund,
1.16or another named fund, and are available for the fiscal years indicated for each purpose.
1.17The figures "2018" and "2019" used in this article mean that the appropriations listed under
1.18them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
1.19"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
1.20is fiscal years 2018 and 2019.
1.21
APPROPRIATIONS
1.22
Available for the Year
1.23
Ending June 30
1.24
2018
2019

1.25
Sec. 2. DEPARTMENT OF AGRICULTURE
2.1
Subdivision 1.Total Appropriation
$
48,056,000
$
47,910,000
2.2
Appropriations by Fund
2.3
2018
2019
2.4
General
47,663,000
47,513,000
2.5
Remediation
393,000
397,000
2.6The amounts that may be spent for each
2.7purpose are specified in the following
2.8subdivisions.
2.9
Subd. 2.Protection Services
17,471,000
17,475,000
2.10
Appropriations by Fund
2.11
2018
2019
2.12
General
17,078,000
17,078,000
2.13
Remediation
393,000
397,000
2.14$250,000 the first year and $250,000 the
2.15second year are for transfer to the pollinator
2.16habitat and research account in the agricultural
2.17fund. These are onetime transfers.
2.18$300,000 the first year and $300,000 the
2.19second year are for transfer to the noxious
2.20weed and invasive plant species assistance
2.21account in the agricultural fund to award
2.22grants to local units of government under
2.23Minnesota Statutes, section 18.90, with
2.24preference given to local units of government
2.25responding to Palmer amaranth or other weeds
2.26on the eradicate list. These are onetime
2.27transfers.
2.28$125,000 the first year and $125,000 the
2.29second year are for the industrial hemp pilot
2.30program under Minnesota Statutes, section
2.3118K.09. These are onetime appropriations.
2.32$250,000 the first year and $250,000 the
2.33second year are to expand current capabilities
2.34for rapid detection, identification, containment,
3.1control, and management of high priority plant
3.2pests and pathogens. These are onetime
3.3appropriations.
3.4$25,000 the first year and $25,000 the second
3.5year are to develop and maintain cottage food
3.6license exemption outreach and training
3.7materials.
3.8$75,000 the first year and $75,000 the second
3.9year are to coordinate the correctional facility
3.10vocational training pilot program and to assist
3.11entities that have explored the feasibility of
3.12establishing a USDA-certified or state "equal
3.13to" food processing facility within 30 miles
3.14of the Northeast Regional Corrections Center.
3.15$393,000 the first year and $397,000 the
3.16second year are from the remediation fund for
3.17administrative funding for the voluntary
3.18cleanup program.
3.19$175,000 the first year and $175,000 the
3.20second year are for compensation for
3.21destroyed or crippled livestock under
3.22Minnesota Statutes, section 3.737. This
3.23appropriation may be spent to compensate for
3.24livestock that were destroyed or crippled
3.25during fiscal year 2017. If the amount in the
3.26first year is insufficient, the amount in the
3.27second year is available in the first year.
3.28$125,000 the first year and $125,000 the
3.29second year are for compensation for crop
3.30damage under Minnesota Statutes, section
3.313.7371. If the amount in the first year is
3.32insufficient, the amount in the second year is
3.33available in the first year. The commissioner
3.34may use up to $30,000 of the appropriation
4.1each year to reimburse expenses incurred by
4.2the commissioner or the commissioner's
4.3approved agent to investigate and resolve
4.4claims.
4.5If the commissioner determines that claims
4.6made under Minnesota Statutes, section 3.737
4.7or 3.7371, are unusually high, amounts
4.8appropriated for either program may be
4.9transferred to the appropriation for the other
4.10program.
4.11$70,000 the first year and $70,000 the second
4.12year are for additional cannery inspections.
4.13$100,000 the first year and $100,000 the
4.14second year are for increased oversight of
4.15delegated local health boards.
4.16$100,000 the first year and $100,000 the
4.17second year are to decrease the turnaround
4.18time for retail food handler plan reviews.
4.19$1,024,000 the first year and $1,024,000 the
4.20second year are to streamline the retail food
4.21safety regulatory and licensing experience for
4.22regulated businesses and to decrease the
4.23inspection delinquency rate.
4.24
4.25
Subd. 3.Agricultural Marketing and
Development
3,996,000
3,996,000
4.26The commissioner must provide outreach to
4.27urban farmers regarding the department's
4.28financial and technical assistance programs
4.29and must assist urban farmers in applying for
4.30assistance.
4.31$186,000 the first year and $186,000 the
4.32second year are for transfer to the Minnesota
4.33grown account and may be used as grants for
4.34Minnesota grown promotion under Minnesota
5.1Statutes, section 17.102. Grants may be made
5.2for one year. Notwithstanding Minnesota
5.3Statutes, section 16A.28, the appropriations
5.4encumbered under contract on or before June
5.530, 2019, for Minnesota grown grants in this
5.6paragraph are available until June 30, 2021.
5.7$634,000 the first year and $634,000 the
5.8second year are for continuation of the dairy
5.9development and profitability enhancement
5.10and dairy business planning grant programs
5.11established under Laws 1997, chapter 216,
5.12section 7, subdivision 2, and Laws 2001, First
5.13Special Session chapter 2, section 9,
5.14subdivision 2. The commissioner may allocate
5.15the available sums among permissible
5.16activities, including efforts to improve the
5.17quality of milk produced in the state, in the
5.18proportions that the commissioner deems most
5.19beneficial to Minnesota's dairy farmers. The
5.20commissioner must submit a detailed
5.21accomplishment report and a work plan
5.22detailing future plans for, and anticipated
5.23accomplishments from, expenditures under
5.24this program to the chairs and ranking minority
5.25members of the legislative committees with
5.26jurisdiction over agriculture policy and finance
5.27on or before the start of each fiscal year. If
5.28significant changes are made to the plans in
5.29the course of the year, the commissioner must
5.30notify the chairs and ranking minority
5.31members.
5.32The commissioner may use funds appropriated
5.33in this subdivision for annual cost-share
5.34payments to resident farmers or entities that
5.35sell, process, or package agricultural products
6.1in this state for the costs of organic
6.2certification. The commissioner may allocate
6.3these funds for assistance for persons
6.4transitioning from conventional to organic
6.5agriculture.
6.6
6.7
Subd. 4.Agriculture, Bioenergy, and Bioproduct
Advancement
18,989,000
18,989,000
6.8$9,300,000 the first year and $9,300,000 the
6.9second year are for transfer to the agriculture
6.10research, education, extension, and technology
6.11transfer account under Minnesota Statutes,
6.12section 41A.14, subdivision 3. Of these
6.13amounts: at least $600,000 the first year and
6.14$600,000 the second year are for the
6.15Minnesota Agricultural Experiment Station's
6.16agriculture rapid response fund under
6.17Minnesota Statutes, section 41A.14,
6.18subdivision 1, clause (2); $2,000,000 the first
6.19year and $2,000,000 the second year are for
6.20grants to the Minnesota Agriculture Education
6.21Leadership Council to enhance agricultural
6.22education with priority given to Farm Business
6.23Management challenge grants and grants to
6.24coordinate Farm Business Management and
6.25dairy development, profitability enhancement,
6.26and business planning; up to $350,000 the first
6.27year and up to $350,000 the second year are
6.28for potato breeding; and up to $350,000 the
6.29first year and up to $350,000 the second year
6.30are for the cultivated wild rice breeding project
6.31at the North Central Research and Outreach
6.32Center to include a tenure track/research
6.33associate plant breeder. The commissioner
6.34shall transfer the remaining funds in this
6.35appropriation each year to the Board of
6.36Regents of the University of Minnesota for
7.1purposes of Minnesota Statutes, section
7.241A.14. Of the amount transferred to the
7.3Board of Regents, up to $1,000,000 the first
7.4year and up to $1,000,000 the second year are
7.5for research to determine:
7.6(1) what is causing avian influenza;
7.7(2) why some fowl are more susceptible; and
7.8(3) prevention measures that can be taken.
7.9To the extent practicable, funds expended
7.10under Minnesota Statutes, section 41A.14,
7.11subdivision 1, clauses (1) and (2), must
7.12supplement and not supplant existing sources
7.13and levels of funding. The commissioner may
7.14use up to one percent of this appropriation for
7.15costs incurred to administer the program.
7.16$9,664,000 the first year and $9,664,000 the
7.17second year are for the agricultural growth,
7.18research, and innovation program in
7.19Minnesota Statutes, section 41A.12. Except
7.20as provided below, the commissioner may
7.21allocate the appropriation each year among
7.22the following areas: facilitating the start-up,
7.23modernization, or expansion of livestock
7.24operations including beginning and
7.25transitioning livestock operations; developing
7.26new markets for Minnesota farmers by
7.27providing more fruits, vegetables, meat, grain,
7.28and dairy for Minnesota school children;
7.29assisting value-added agricultural businesses
7.30to begin or expand, access new markets, or
7.31diversify; urban youth agricultural education;
7.32urban agriculture community development;
7.33facilitating the start-up, modernization, or
7.34expansion of other beginning and transitioning
8.1farms including by providing loans under
8.2Minnesota Statutes, section 41B.056;
8.3sustainable agriculture on-farm research and
8.4demonstration; development or expansion of
8.5food hubs and other alternative
8.6community-based food distribution systems;
8.7enhancing renewable energy infrastructure
8.8and use; crop research; Farm Business
8.9Management tuition assistance; good
8.10agricultural practices/good handling practices
8.11certification assistance; establishing and
8.12supporting farmer-led water management
8.13councils; and implementing farmer-led water
8.14quality improvement practices. The
8.15commissioner may use up to 4.5 percent of
8.16this appropriation for costs incurred to
8.17administer the program. Any unencumbered
8.18balance does not cancel at the end of the first
8.19year and is available for the second year.
8.20Notwithstanding Minnesota Statutes, section
8.2116A.28, appropriations encumbered under
8.22contract on or before June 30, 2019, for
8.23agricultural growth, research, and innovation
8.24grants are available until June 30, 2022. The
8.25base for fiscal year 2020 is $10,068,000 and
8.26the base for fiscal year 2021 is $10,068,000.
8.27Of the amount appropriated for the agricultural
8.28growth, research, and innovation program in
8.29this subdivision, $1,000,000 the first year and
8.30$1,000,000 the second year are for distribution
8.31in equal amounts to each of the state's county
8.32fairs to preserve and promote Minnesota
8.33agriculture.
8.34Of the amount appropriated for the agricultural
8.35growth, research, and innovation program in
9.1this subdivision, $1,500,000 the first year and
9.2$1,500,000 the second year are for incentive
9.3payments under Minnesota Statutes, sections
9.441A.16, 41A.17, and 41A.18. Notwithstanding
9.5Minnesota Statutes, section 16A.28, the first
9.6year appropriation is available until June 30,
9.72019, and the second year appropriation is
9.8available until June 30, 2020.
9.9Of the amount appropriated for the agricultural
9.10growth, research, and innovation program in
9.11this subdivision, $500,000 the first year is for
9.12a grant to the Board of Trustees of the
9.13Minnesota State Colleges and Universities to
9.14renovate the GROW-IT Center at Metropolitan
9.15State University.
9.16Of the amount appropriated for the agricultural
9.17growth, research, and innovation program in
9.18this subdivision, up to $500,000 the first year
9.19and up to $500,000 the second year are for
9.20urban youth agricultural education and urban
9.21agriculture community development, in
9.22consultation with urban agriculture
9.23stakeholders.
9.24Of the amount appropriated for the agricultural
9.25growth, research, and innovation program in
9.26this subdivision, up to $250,000 the first year
9.27and up to $250,000 the second year are for
9.28transfer to the good food access account in the
9.29agricultural fund for the good food access
9.30program.
9.31Of the amount appropriated for the agricultural
9.32growth, research, and innovation program in
9.33this subdivision, up to $40,000 the first year
9.34and up to $40,000 the second year are to
9.35increase compensation for farm advocates and
10.1expand the farm advocates program by
10.2supplementing the base farm advocates
10.3program appropriation in subdivision 5.
10.4$25,000 the first year and $25,000 the second
10.5year are for grants to the Southern Minnesota
10.6Initiative Foundation to promote local foods
10.7through an annual event that raises public
10.8awareness of local foods and connects local
10.9food producers and processors with potential
10.10buyers.
10.11
Subd. 5.Administration and Financial Assistance
7,600,000
7,450,000
10.12$150,000 the first year is for the tractor
10.13rollover protection pilot program under
10.14Minnesota Statutes, section 17.119, and is
10.15available until June 30, 2019.
10.16$180,000 the first year and $180,000 the
10.17second year are for the farm advocates
10.18program.
10.19$474,000 the first year and $474,000 the
10.20second year are for payments to county and
10.21district agricultural societies and associations
10.22under Minnesota Statutes, section 38.02,
10.23subdivision 1. Aid payments to county and
10.24district agricultural societies and associations
10.25shall be disbursed no later than July 15 of each
10.26year. These payments are the amount of aid
10.27from the state for an annual fair held in the
10.28previous calendar year.
10.29$1,000 the first year and $1,000 the second
10.30year are for grants to the Minnesota State
10.31Poultry Association.
10.32$18,000 the first year and $18,000 the second
10.33year are for grants to the Minnesota Livestock
10.34Breeders Association.
11.1$47,000 the first year and $47,000 the second
11.2year are for the Northern Crops Institute.
11.3These appropriations may be spent to purchase
11.4equipment.
11.5$17,000 the first year and $17,000 the second
11.6year are for grants to the Minnesota
11.7Horticultural Society.
11.8$108,000 the first year and $108,000 the
11.9second year are for annual grants to the
11.10Minnesota Turf Seed Council for basic and
11.11applied research on: (1) the improved
11.12production of forage and turf seed related to
11.13new and improved varieties; and (2) native
11.14plants, including plant breeding, nutrient
11.15management, pest management, disease
11.16management, yield, and viability. The grant
11.17recipient may subcontract with a qualified
11.18third party for some or all of the basic or
11.19applied research. Any unencumbered balance
11.20does not cancel at the end of the first year and
11.21is available for the second year.
11.22$113,000 the first year and $113,000 the
11.23second year are for transfer to the Board of
11.24Trustees of the Minnesota State Colleges and
11.25Universities for statewide mental health
11.26counseling support to farm families and
11.27business operators. South Central College shall
11.28serve as the fiscal agent.
11.29$550,000 the first year and $550,000 the
11.30second year are for grants to Second Harvest
11.31Heartland on behalf of Minnesota's six
11.32Feeding America food banks for the purchase
11.33of milk for distribution to Minnesota's food
11.34shelves and other charitable organizations that
11.35are eligible to receive food from the food
12.1banks. Milk purchased under the grants must
12.2be acquired from Minnesota milk processors
12.3and based on low-cost bids. The milk must be
12.4allocated to each Feeding America food bank
12.5serving Minnesota according to the formula
12.6used in the distribution of United States
12.7Department of Agriculture commodities under
12.8The Emergency Food Assistance Program
12.9(TEFAP). Second Harvest Heartland must
12.10submit quarterly reports to the commissioner
12.11on forms prescribed by the commissioner. The
12.12reports must include but are not limited to
12.13information on the expenditure of funds, the
12.14amount of milk purchased, and the
12.15organizations to which the milk was
12.16distributed. Second Harvest Heartland may
12.17enter into contracts or agreements with food
12.18banks for shared funding or reimbursement of
12.19the direct purchase of milk. Each food bank
12.20receiving money from this appropriation may
12.21use up to two percent of the grant for
12.22administrative expenses. Any unencumbered
12.23balance does not cancel at the end of the first
12.24year and is available for the second year.
12.25$1,100,000 the first year and $1,100,000 the
12.26second year are for grants to Second Harvest
12.27Heartland on behalf of the six Feeding
12.28America food banks that serve Minnesota to
12.29compensate agricultural producers and
12.30processors for costs incurred to harvest and
12.31package for transfer surplus fruits, vegetables,
12.32and other agricultural commodities that would
12.33otherwise go unharvested, be discarded, or
12.34sold in a secondary market. Surplus
12.35commodities must be distributed statewide to
12.36food shelves and other charitable organizations
13.1that are eligible to receive food from the food
13.2banks. Surplus food acquired under this
13.3appropriation must be from Minnesota
13.4producers and processors. Second Harvest
13.5Heartland must report in the form prescribed
13.6by the commissioner. Second Harvest
13.7Heartland may use up to 15 percent of each
13.8grant for matching administrative and
13.9transportation expenses. Any unencumbered
13.10balance does not cancel at the end of the first
13.11year and is available for the second year.
13.12$150,000 the first year and $150,000 the
13.13second year are for grants to the Center for
13.14Rural Policy and Development.
13.15$235,000 the first year and $235,000 the
13.16second year are for grants to the Minnesota
13.17Agricultural Education and Leadership
13.18Council for programs of the council under
13.19Minnesota Statutes, chapter 41D.
13.20$600,000 the first year and $600,000 the
13.21second year are for grants to the Board of
13.22Regents of the University of Minnesota to
13.23develop, in consultation with the
13.24commissioner of agriculture and the Board of
13.25Animal Health, a software tool or application
13.26through the Veterinary Diagnostic Laboratory
13.27that empowers veterinarians and producers to
13.28understand the movement of unique pathogen
13.29strains in livestock and poultry production
13.30systems, monitor antibiotic resistance, and
13.31implement effective biosecurity measures that
13.32promote animal health and limit production
13.33losses. The base for fiscal year 2020 is $0.

13.34
Sec. 3. BOARD OF ANIMAL HEALTH
$
5,443,000
$
5,491,000

14.1
14.2
Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
3,643,000
$
3,643,000

14.3    Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
14.4amended by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2,
14.5section 26, is amended to read:
14.6
14.7
Subd. 4.Agriculture, Bioenergy, and Bioproduct
Advancement
14,993,000
19,010,000
18,316,000
14.8$4,483,000 the first year and $8,500,000 the
14.9second year are for transfer to the agriculture
14.10research, education, extension, and technology
14.11transfer account under Minnesota Statutes,
14.12section 41A.14, subdivision 3. The transfer in
14.13this paragraph includes money for plant
14.14breeders at the University of Minnesota for
14.15wild rice, potatoes, and grapes. Of these
14.16amounts, at least $600,000 each year is for the
14.17Minnesota Agricultural Experiment Station's
14.18Agriculture Rapid Response Fund under
14.19Minnesota Statutes, section 41A.14,
14.20subdivision 1
, clause (2). Of the amount
14.21appropriated in this paragraph, $1,000,000
14.22each year is for transfer to the Board of
14.23Regents of the University of Minnesota for
14.24research to determine (1) what is causing avian
14.25influenza, (2) why some fowl are more
14.26susceptible, and (3) prevention measures that
14.27can be taken. Of the amount appropriated in
14.28this paragraph, $2,000,000 each year is for
14.29grants to the Minnesota Agriculture Education
14.30Leadership Council to enhance agricultural
14.31education with priority given to Farm Business
14.32Management challenge grants. The
14.33commissioner shall transfer the remaining
14.34grant funds in this appropriation each year to
14.35the Board of Regents of the University of
15.1Minnesota for purposes of Minnesota Statutes,
15.2section 41A.14.
15.3To the extent practicable, funds expended
15.4under Minnesota Statutes, section 41A.14,
15.5subdivision 1
, clauses (1) and (2), must
15.6supplement and not supplant existing sources
15.7and levels of funding. The commissioner may
15.8use up to 4.5 percent of this appropriation for
15.9costs incurred to administer the program. Any
15.10unencumbered balance does not cancel at the
15.11end of the first year and is available for the
15.12second year.
15.13$10,235,000 the first year and $10,235,000
15.14$9,541,000 the second year are for the
15.15agricultural growth, research, and innovation
15.16program in Minnesota Statutes, section
15.1741A.12 . No later than February 1, 2016, and
15.18February 1, 2017, the commissioner must
15.19report to the legislative committees with
15.20jurisdiction over agriculture policy and finance
15.21regarding the commissioner's
15.22accomplishments and anticipated
15.23accomplishments in the following areas:
15.24facilitating the start-up, modernization, or
15.25expansion of livestock operations including
15.26beginning and transitioning livestock
15.27operations; developing new markets for
15.28Minnesota farmers by providing more fruits,
15.29vegetables, meat, grain, and dairy for
15.30Minnesota school children; assisting
15.31value-added agricultural businesses to begin
15.32or expand, access new markets, or diversify
15.33products; developing urban agriculture;
15.34facilitating the start-up, modernization, or
15.35expansion of other beginning and transitioning
16.1farms including loans under Minnesota
16.2Statutes, section 41B.056; sustainable
16.3agriculture on farm research and
16.4demonstration; development or expansion of
16.5food hubs and other alternative
16.6community-based food distribution systems;
16.7incentive payments under Minnesota Statutes,
16.8sections 41A.16, 41A.17, and 41A.18; and
16.9research on bioenergy, biobased content, or
16.10biobased formulated products and other
16.11renewable energy development. The
16.12commissioner may use up to 4.5 percent of
16.13this appropriation for costs incurred to
16.14administer the program. Any unencumbered
16.15balance does not cancel at the end of the first
16.16year and is available for the second year.
16.17Notwithstanding Minnesota Statutes, section
16.1816A.28 , the appropriations encumbered under
16.19contract on or before June 30, 2017, for
16.20agricultural growth, research, and innovation
16.21grants are available until June 30, 2019.
16.22The commissioner may use funds appropriated
16.23for the agricultural growth, research, and
16.24innovation program as provided in this
16.25paragraph. The commissioner may award
16.26grants to owners of Minnesota facilities
16.27producing bioenergy, biobased content, or a
16.28biobased formulated product; to organizations
16.29that provide for on-station, on-farm field scale
16.30research and outreach to develop and test the
16.31agronomic and economic requirements of
16.32diverse strands of prairie plants and other
16.33perennials for bioenergy systems; or to certain
16.34nongovernmental entities. For the purposes of
16.35this paragraph, "bioenergy" includes
16.36transportation fuels derived from cellulosic
17.1material, as well as the generation of energy
17.2for commercial heat, industrial process heat,
17.3or electrical power from cellulosic materials
17.4via gasification or other processes. Grants are
17.5limited to 50 percent of the cost of research,
17.6technical assistance, or equipment related to
17.7bioenergy, biobased content, or biobased
17.8formulated product production or $500,000,
17.9whichever is less. Grants to nongovernmental
17.10entities for the development of business plans
17.11and structures related to community ownership
17.12of eligible bioenergy facilities together may
17.13not exceed $150,000. The commissioner shall
17.14make a good-faith effort to select projects that
17.15have merit and, when taken together, represent
17.16a variety of bioenergy technologies, biomass
17.17feedstocks, and geographic regions of the
17.18state. Projects must have a qualified engineer
17.19provide certification on the technology and
17.20fuel source. Grantees must provide reports at
17.21the request of the commissioner.
17.22Of the amount appropriated for the agricultural
17.23growth, research, and innovation program in
17.24this subdivision, $1,000,000 the first year and
17.25$1,000,000 the second year are for distribution
17.26in equal amounts to each of the state's county
17.27fairs to preserve and promote Minnesota
17.28agriculture.
17.29Of the amount appropriated for the agricultural
17.30growth, research, and innovation program in
17.31this subdivision, $500,000 in fiscal year 2016
17.32and $1,500,000 $806,000 in fiscal year 2017
17.33are for incentive payments under Minnesota
17.34Statutes, sections 41A.16, 41A.17, and
17.3541A.18 . If the appropriation exceeds the total
18.1amount for which all producers are eligible in
18.2a fiscal year, the balance of the appropriation
18.3is available to the commissioner for the
18.4agricultural growth, research, and innovation
18.5program. Notwithstanding Minnesota Statutes,
18.6section 16A.28, the first year appropriation is
18.7available until June 30, 2017, and the second
18.8year appropriation is available until June 30,
18.92018. The commissioner may use up to 4.5
18.10percent of the appropriation for administration
18.11of the incentive payment programs.
18.12Of the amount appropriated for the agricultural
18.13growth, research, and innovation program in
18.14this subdivision, $250,000 the first year is for
18.15grants to communities to develop or expand
18.16food hubs and other alternative
18.17community-based food distribution systems.
18.18Of this amount, $50,000 is for the
18.19commissioner to consult with existing food
18.20hubs, alternative community-based food
18.21distribution systems, and University of
18.22Minnesota Extension to identify best practices
18.23for use by other Minnesota communities. No
18.24later than December 15, 2015, the
18.25commissioner must report to the legislative
18.26committees with jurisdiction over agriculture
18.27and health regarding the status of emerging
18.28alternative community-based food distribution
18.29systems in the state along with
18.30recommendations to eliminate any barriers to
18.31success. Any unencumbered balance does not
18.32cancel at the end of the first year and is
18.33available for the second year. This is a onetime
18.34appropriation.
19.1$250,000 the first year and $250,000 the
19.2second year are for grants that enable retail
19.3petroleum dispensers to dispense biofuels to
19.4the public in accordance with the biofuel
19.5replacement goals established under
19.6Minnesota Statutes, section 239.7911. A retail
19.7petroleum dispenser selling petroleum for use
19.8in spark ignition engines for vehicle model
19.9years after 2000 is eligible for grant money
19.10under this paragraph if the retail petroleum
19.11dispenser has no more than 15 retail petroleum
19.12dispensing sites and each site is located in
19.13Minnesota. The grant money received under
19.14this paragraph must be used for the installation
19.15of appropriate technology that uses fuel
19.16dispensing equipment appropriate for at least
19.17one fuel dispensing site to dispense gasoline
19.18that is blended with 15 percent of
19.19agriculturally derived, denatured ethanol, by
19.20volume, and appropriate technical assistance
19.21related to the installation. A grant award must
19.22not exceed 85 percent of the cost of the
19.23technical assistance and appropriate
19.24technology, including remetering of and
19.25retrofits for retail petroleum dispensers and
19.26replacement of petroleum dispenser projects.
19.27The commissioner may use up to $35,000 of
19.28this appropriation for administrative expenses.
19.29The commissioner shall cooperate with biofuel
19.30stakeholders in the implementation of the grant
19.31program. The commissioner must report to
19.32the legislative committees with jurisdiction
19.33over agriculture policy and finance by
19.34February 1 each year, detailing the number of
19.35grants awarded under this paragraph and the
19.36projected effect of the grant program on
20.1meeting the biofuel replacement goals under
20.2Minnesota Statutes, section 239.7911. These
20.3are onetime appropriations.
20.4$25,000 the first year and $25,000 the second
20.5year are for grants to the Southern Minnesota
20.6Initiative Foundation to promote local foods
20.7through an annual event that raises public
20.8awareness of local foods and connects local
20.9food producers and processors with potential
20.10buyers.

20.11    Sec. 6. BASE BUDGET REPORT REQUIRED.
20.12No later than October 15, 2018, the commissioner of agriculture must submit a report
20.13detailing the agency's base budget, including any prior appropriation riders, to the chairs
20.14and ranking minority members of the legislative committees with jurisdiction over agriculture
20.15finance.

20.16    Sec. 7. TRANSFER REQUIRED.
20.17Of the amount appropriated from the general fund for transfer to the agricultural
20.18emergency account in Laws 2016, chapter 189, article 2, section 2, the commissioner of
20.19management and budget must transfer $450,000 back to the general fund on July 1, 2017.
20.20This is a onetime transfer.

20.21    Sec. 8. APPROPRIATION CANCELLATION.
20.22All unspent funds, estimated to be $694,000, appropriated for the agricultural growth,
20.23research, and innovation program and designated for bioeconomy incentive payments under
20.24Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as amended
20.25by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section 26,
20.26are canceled to the general fund.
20.27EFFECTIVE DATE.This section is effective the day following final enactment.

20.28ARTICLE 2
20.29AGRICULTURAL POLICY

20.30    Section 1. Minnesota Statutes 2016, section 3.7371, is amended to read:
21.13.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.
21.2    Subdivision 1. Authorization. Notwithstanding section 3.736, subdivision 3, paragraph
21.3(e), or any other law, a person who owns an agricultural crop or pasture shall be compensated
21.4by the commissioner of agriculture for an agricultural crop, or fence surrounding the crop
21.5or pasture, that is damaged or destroyed by elk as provided in this section.
21.6    Subd. 2. Claim form. The crop or pasture owner must prepare a claim on forms provided
21.7by the commissioner and available at on the county extension agent's office Department of
21.8Agriculture's Web site or by request from the commissioner. The claim form must be filed
21.9with the commissioner.
21.10    Subd. 3. Compensation. (a) The crop owner is entitled to the target price or the market
21.11price, whichever is greater, of the damaged or destroyed crop plus adjustments for yield
21.12loss determined according to agricultural stabilization and conservation service programs
21.13for individual farms, adjusted annually, as determined by the commissioner, upon
21.14recommendation of the county extension commissioner's approved agent for the owner's
21.15county. Verification of fence damage or destruction by elk may be provided by submitting
21.16photographs or other evidence and documentation together with a statement from an
21.17independent witness using forms prescribed by the commissioner. The commissioner, upon
21.18recommendation of the commissioner's approved agent, shall determine whether the crop
21.19damage or destruction or damage to or destruction of a fence surrounding a crop or pasture
21.20is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed. In
21.21any fiscal year, an owner may not be compensated for a damaged or destroyed crop or fence
21.22surrounding a crop or pasture that is less than $100 in value and may be compensated up
21.23to $20,000, as determined under this section, if normal harvest procedures for the area are
21.24followed.
21.25    (b) In any fiscal year, the commissioner may provide compensation for claims filed
21.26under this section up to the amount expressly appropriated for this purpose.
21.27    Subd. 4. Insurance deduction. Payments authorized by this section must be reduced
21.28by amounts received by the owner as proceeds from an insurance policy covering crop
21.29losses or damage to or destruction of a fence surrounding a crop or pasture, or from any
21.30other source for the same purpose including, but not limited to, a federal program.
21.31    Subd. 5. Decision on claims; opening land to hunting. If the commissioner finds that
21.32the crop or pasture owner has shown that the damage or destruction of the owner's crop or
21.33damage to or destruction of a fence surrounding a crop or pasture was caused more probably
21.34than not by elk, the commissioner shall pay compensation as provided in this section and
22.1the rules of the commissioner. A crop An owner who receives compensation under this
22.2section may, by written permission, permit hunting on the land at the landowner's discretion.
22.3    Subd. 6. Denial of claim; appeal. (a) If the commissioner denies compensation claimed
22.4by a crop or pasture an owner under this section, the commissioner shall issue a written
22.5decision based upon the available evidence including a statement of the facts upon which
22.6the decision is based and the conclusions on the material issues of the claim. A copy of the
22.7decision must be mailed to the crop or pasture owner.
22.8(b) A decision denying compensation claimed under this section is not subject to the
22.9contested case review procedures of chapter 14, but a crop or pasture an owner may have
22.10the claim reviewed in a trial de novo in a court in the county where the loss occurred. The
22.11decision of the court may be appealed as in other civil cases. Review in court may be obtained
22.12by filing a petition for review with the administrator of the court within 60 days following
22.13receipt of a decision under this section. Upon the filing of a petition, the administrator shall
22.14mail a copy to the commissioner and set a time for hearing within 90 days after the filing.
22.15    Subd. 7. Rules. The commissioner shall adopt rules and may amend rules to carry out
22.16this section. The commissioner may use the expedited rulemaking process in section 14.389
22.17to adopt and amend rules authorized in this section. The rules must include:
22.18(1) methods of valuation of crops damaged or destroyed;
22.19(2) criteria for determination of the cause of the crop damage or destruction;
22.20(3) notice requirements by the owner of the damaged or destroyed crop;
22.21(4) compensation rates for fence damage or destruction that shall include a minimum
22.22claim of $75.00 per incident and a maximum of must not exceed $1,800 per claimant per
22.23fiscal year; and
22.24(5) any other matters determined necessary by the commissioner to carry out this section.
22.25    Subd. 8. Report. The commissioner must submit a report to the chairs of the house of
22.26representatives and senate committees and divisions with jurisdiction over agriculture and
22.27environment and natural resources by December 15 each year that details the total amount
22.28of damages paid, by elk herd, in the previous two fiscal years.

22.29    Sec. 2. [17.112] FARM SAFETY WORKING GROUP.
22.30    Subdivision 1. Establishment. The Farm Safety Working Group is established to advise
22.31the commissioner and the legislature on farm safety issues and to perform the other duties
22.32specified in this section.
23.1    Subd. 2. Membership; appointments; compensation. (a) The Farm Safety Working
23.2Group consists of:
23.3    (1) the commissioner of agriculture or the commissioner's designee, who must serve as
23.4the chair;
23.5    (2) the commissioner of health or the commissioner's designee;
23.6    (3) the commissioner of labor and industry or the commissioner's designee;
23.7    (4) a representative of the Minnesota State Colleges and Universities;
23.8    (5) a representative of University of Minnesota Extension;
23.9    (6) a representative of the University of Minnesota's Upper Midwest Agricultural Safety
23.10and Health Center;
23.11    (7) a representative of the Minnesota Farm Bureau;
23.12    (8) a representative of the Minnesota Farmers Union;
23.13    (9) a representative of the Minnesota Safety Council;
23.14    (10) a representative of the Minnesota-South Dakota Equipment Dealers Association;
23.15    (11) a representative of the Minnesota Agriculture Education Leadership Council;
23.16    (12) a representative of the Minnesota Council on Latino Affairs;
23.17    (13) a representative of the Latino Economic Development Center; and
23.18    (14) three citizen members appointed by the commissioner.
23.19    (b) Members in paragraph (a), clauses (4) to (13), must be appointed by the specified
23.20organization and serve at the pleasure of the organization. Members appointed by the
23.21commissioner serve two-year terms.
23.22    (c) Members must serve without compensation.
23.23    Subd. 3. Meetings; staff. The commissioner must convene meetings as appropriate and
23.24provide staff to support the working group.
23.25    Subd. 4. Duties. The working group must serve as a forum to discuss farm safety issues
23.26and organize a collective effort to improve farm safety in this state. The working group also
23.27must:
23.28    (1) coordinate the work and resources of member organizations;
23.29    (2) monitor the impact of farm safety initiatives in Minnesota;
24.1    (3) explore the feasibility and desirability of creating a farm safety certification program
24.2to recognize farmers who participate in safety programs and meet safety standards, and
24.3identify appropriate financial incentives for participating farmers; and
24.4    (4) increase farmer awareness of the state's workplace safety consultation program.
24.5    Subd. 5. Expiration. This section expires June 30, 2021.

24.6    Sec. 3. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:
24.7    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share grants
24.8to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible
24.9tractors with eligible rollover protective structures.
24.10(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented
24.11cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
24.12must increase the a farmer's grant award amount over the 70 percent grant limitation
24.13requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.
24.14(c) Schools are eligible for grants that cover the full amount of a school's documented
24.15cost to purchase, ship, and install an eligible rollover protective structure.
24.16(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International
24.17standard J2194 is certified to appropriate national or international rollover protection structure
24.18standards with a seat belt.
24.19(c) (e) A tractor is eligible if the tractor was built before 1987.
24.20EFFECTIVE DATE.This section is effective retroactively from July 1, 2016.

24.21    Sec. 4. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:
24.22    Subd. 2. Promotion; administration. The commissioner may spend up to 20 six percent
24.23of total program dollars each fiscal year to promote and administer the program to Minnesota
24.24farmers and schools.

24.25    Sec. 5. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:
24.26    Subd. 18. Noxious weed education and notification. (a) The commissioner shall
24.27disseminate information and conduct educational campaigns with respect to control of
24.28noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
24.29to eliminate or manage these plants. The commissioner shall call and attend meetings and
24.30conferences dealing with the subject of noxious weeds. The commissioner shall maintain
25.1on the department's Web site noxious weed management information including but not
25.2limited to the roles and responsibilities of citizens and government entities under sections
25.318.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious
25.4weed issue.
25.5(b) The commissioner shall post notice on the Department of Agriculture's Web site and
25.6alert appropriate media outlets when a weed on the eradicate list is confirmed for the first
25.7time in a county.

25.8    Sec. 6. [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.
25.9A pollinator habitat and research account is established in the agricultural fund. Money
25.10in the account, including interest, is appropriated to the Board of Regents of the University
25.11of Minnesota for pollinator research and outreach including, but not limited to, science-based
25.12best practices and the identification and establishment of habitat beneficial to pollinators.

25.13    Sec. 7. Minnesota Statutes 2016, section 28A.081, is amended to read:
25.1428A.081 CERTIFICATE FEES.
25.15    Subdivision 1. Fee. A fee of $75 $125 for each certificate shall be charged to all food
25.16establishments that request certificates any person who requests a certificate issued by the
25.17Minnesota Department of Agriculture to facilitate the movement of Minnesota processed
25.18and manufactured foods destined for export from the state of Minnesota. Certificates include,
25.19but are not limited to, a certificate of free sale, certificate of export, certificate of sanitation,
25.20sanitary certificate, certificate of origin and/or free sale, certificate of health and/or free
25.21sale, sanitation, and purity, certificate of free trade, certificate of free sale, sanitation, purity,
25.22and origin, certificate of health, sanitation, purity, and free sale, and letter of plant
25.23certification.
25.24The commissioner shall bill a food establishment the requesting person within seven
25.25days after issuing a certificate to the establishment person. The operator of the food
25.26establishment requesting person must submit payment for a certificate within ten days of
25.27the billing date. If a certificate fee payment is not received within 15 days of the billing
25.28date, the commissioner may not issue any future certificates to the requesting person until
25.29previous fees due are paid in full. Fees paid under this section must be deposited in the food
25.30certificate account established under subdivision 2 or another account in the agricultural
25.31fund if the expenses for the certificate will be paid from that other account.
26.1    Subd. 2. Food certificate account; appropriation. A food certificate account is
26.2established in the agricultural fund. Money in the account, including interest, is appropriated
26.3to the commissioner for expenses relating to certifying Minnesota processed and
26.4manufactured foods under chapters 28 to 34A or rules adopted under one of those chapters.

26.5    Sec. 8. Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:
26.6    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
26.7minority members of the house of representatives and senate committees with jurisdiction
26.8over agriculture finance, must allocate available appropriated funds among eligible uses as
26.9provided by law, develop competitive eligibility criteria, and award funds on a needs basis.
26.10By February 1 each year, the commissioner shall report to the legislature on the allocation
26.11among eligible uses and any financial assistance provided the outcomes achieved under
26.12this section.

26.13    Sec. 9. Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:
26.14    Subdivision 1. Adjoining owners. If all or a part of adjoining Minnesota land is improved
26.15and used, (a) Except as provided in paragraph (b), if two adjoining lands are both used in
26.16whole or in part to produce or maintain livestock for agricultural or commercial purposes
26.17and one or both of the owners of the land desires the land to be partly or totally fenced, the
26.18land owners or occupants shall build and maintain a partition fence between their lands in
26.19equal shares.
26.20(b) The requirement in this section and the procedures in this chapter apply to the
26.21Department of Natural Resources when it owns land adjoining privately owned land subject
26.22to this section and chapter and the landowner desires the land permanently fenced for the
26.23purpose of restraining livestock.
26.24(c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine, poultry,
26.25goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas, and
26.26llamas.
26.27EFFECTIVE DATE.This section is effective the day following final enactment and
26.28applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on or after that
26.29date.

26.30    Sec. 10. REPEALER.
26.31Minnesota Statutes 2016, section 383C.809, is repealed.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569