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SF 780

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/08/2017 10:13pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 780
1.2A bill for an act
1.3relating to agriculture; appropriating money for agriculture-related purposes;
1.4making policy and technical changes to agriculture-related provisions; authorizing
1.5a transfer, a working group, and accounts; modifying certificate fees; requiring
1.6reports;amending Minnesota Statutes 2016, sections 3.7371; 17.119, subdivisions
1.71, 2; 18.79, subdivision 18; 28A.081; 41A.12, subdivision 3; Laws 2015, First
1.8Special Session chapter 4, article 1, section 2, subdivision 4, as amended; proposing
1.9coding for new law in Minnesota Statutes, chapters 17; 18B.
1.10May 8, 2017
1.11The Honorable Michelle L. Fischbach
1.12President of the Senate
1.13The Honorable Kurt L. Daudt
1.14Speaker of the House of Representatives
1.15We, the undersigned conferees for S.F. No. 780 report that we have agreed upon the
1.16items in dispute and recommend as follows:
1.17That the House recede from its amendments and that S.F. No. 780 be further amended
1.18as follows:
1.19Delete everything after the enacting clause and insert:

1.20"ARTICLE 1
1.21AGRICULTURE APPROPRIATIONS

1.22
Section 1. AGRICULTURE APPROPRIATIONS.
1.23The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.24and for the purposes specified in this article. The appropriations are from the general fund,
1.25or another named fund, and are available for the fiscal years indicated for each purpose.
1.26The figures "2018" and "2019" used in this article mean that the appropriations listed under
1.27them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
2.1"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
2.2is fiscal years 2018 and 2019.
2.3
APPROPRIATIONS
2.4
Available for the Year
2.5
Ending June 30
2.6
2018
2019

2.7
Sec. 2. DEPARTMENT OF AGRICULTURE
2.8
Subdivision 1.Total Appropriation
$
51,019,000
$
50,869,000
2.9
Appropriations by Fund
2.10
2018
2019
2.11
General
50,631,000
50,481,000
2.12
Remediation
388,000
388,000
2.13The amounts that may be spent for each
2.14purpose are specified in the following
2.15subdivisions.
2.16
Subd. 2.Protection Services
17,666,000
17,666,000
2.17
Appropriations by Fund
2.18
2018
2019
2.19
General
17,278,000
17,278,000
2.20
Remediation
388,000
388,000
2.21(a) $25,000 the first year and $25,000 the
2.22second year are to develop and maintain
2.23cottage food license exemption outreach and
2.24training materials.
2.25(b) $75,000 the first year and $75,000 the
2.26second year are to coordinate the correctional
2.27facility vocational training program and to
2.28assist entities that have explored the feasibility
2.29of establishing a USDA-certified or state
2.30"equal to" food processing facility within 30
2.31miles of the Northeast Regional Corrections
2.32Center.
2.33(c) $250,000 the first year and $250,000 the
2.34second year are for transfer to the pollinator
3.1habitat and research account in the agricultural
3.2fund. These are onetime transfers.
3.3(d) $388,000 the first year and $388,000 the
3.4second year are from the remediation fund for
3.5administrative funding for the voluntary
3.6cleanup program.
3.7(e) $125,000 the first year and $125,000 the
3.8second year are for the industrial hemp pilot
3.9program under Minnesota Statutes, section
3.1018K.09. These are onetime appropriations.
3.11(f) $175,000 the first year and $175,000 the
3.12second year are for compensation for
3.13destroyed or crippled livestock under
3.14Minnesota Statutes, section 3.737. This
3.15appropriation may be spent to compensate for
3.16livestock that were destroyed or crippled
3.17during fiscal year 2017. If the amount in the
3.18first year is insufficient, the amount in the
3.19second year is available in the first year.
3.20(g) $155,000 the first year and $155,000 the
3.21second year are for compensation for crop
3.22damage under Minnesota Statutes, section
3.233.7371. If the amount in the first year is
3.24insufficient, the amount in the second year is
3.25available in the first year. The commissioner
3.26may use up to $30,000 of the appropriation
3.27each year to reimburse expenses incurred by
3.28the commissioner or the commissioner's
3.29approved agent to investigate and resolve
3.30claims.
3.31If the commissioner determines that claims
3.32made under Minnesota Statutes, section 3.737
3.33or 3.7371, are unusually high, amounts
3.34appropriated for either program may be
4.1transferred to the appropriation for the other
4.2program.
4.3(h) $250,000 the first year and $250,000 the
4.4second year are to expand current capabilities
4.5for rapid detection, identification, containment,
4.6control, and management of high priority plant
4.7pests and pathogens. These are onetime
4.8appropriations.
4.9(i) $300,000 the first year and $300,000 the
4.10second year are for transfer to the noxious
4.11weed and invasive plant species assistance
4.12account in the agricultural fund to award
4.13grants to local units of government under
4.14Minnesota Statutes, section 18.90, with
4.15preference given to local units of government
4.16responding to Palmer amaranth or other weeds
4.17on the eradicate list. These are onetime
4.18transfers. The commissioner may use up to
4.194.5 percent of this appropriation for costs
4.20incurred to administer the grant program.
4.21(j) $120,000 the first year and $120,000 the
4.22second year are for wolf-livestock conflict
4.23prevention grants under article 2, section 12.
4.24The commissioner must submit a report to the
4.25chairs and ranking minority members of the
4.26legislative committees with jurisdiction over
4.27agriculture policy and finance by January 15,
4.282020, on the outcomes of the wolf-livestock
4.29conflict prevention grants and whether
4.30livestock compensation claims were reduced
4.31in the areas that grants were awarded. This is
4.32a onetime appropriation.
5.1
5.2
Subd. 3.Agricultural Marketing and
Development
3,996,000
3,996,000
5.3(a) The commissioner must provide outreach
5.4to urban farmers regarding the department's
5.5financial and technical assistance programs
5.6and must assist urban farmers in applying for
5.7assistance.
5.8(b) $186,000 the first year and $186,000 the
5.9second year are for transfer to the Minnesota
5.10grown account and may be used as grants for
5.11Minnesota grown promotion under Minnesota
5.12Statutes, section 17.102. Grants may be made
5.13for one year. Notwithstanding Minnesota
5.14Statutes, section 16A.28, the appropriations
5.15encumbered under contract on or before June
5.1630, 2019, for Minnesota grown grants in this
5.17paragraph are available until June 30, 2021.
5.18(c) $634,000 the first year and $634,000 the
5.19second year are for continuation of the dairy
5.20development and profitability enhancement
5.21and dairy business planning grant programs
5.22established under Laws 1997, chapter 216,
5.23section 7, subdivision 2, and Laws 2001, First
5.24Special Session chapter 2, section 9,
5.25subdivision 2. The commissioner may allocate
5.26the available sums among permissible
5.27activities, including efforts to improve the
5.28quality of milk produced in the state, in the
5.29proportions that the commissioner deems most
5.30beneficial to Minnesota's dairy farmers. The
5.31commissioner must submit a detailed
5.32accomplishment report and a work plan
5.33detailing future plans for, and anticipated
5.34accomplishments from, expenditures under
5.35this program to the chairs and ranking minority
6.1members of the legislative committees with
6.2jurisdiction over agriculture policy and finance
6.3on or before the start of each fiscal year. If
6.4significant changes are made to the plans in
6.5the course of the year, the commissioner must
6.6notify the chairs and ranking minority
6.7members.
6.8(d) The commissioner may use funds
6.9appropriated in this subdivision for annual
6.10cost-share payments to resident farmers or
6.11entities that sell, process, or package
6.12agricultural products in this state for the costs
6.13of organic certification. The commissioner
6.14may allocate these funds for assistance for
6.15persons transitioning from conventional to
6.16organic agriculture.
6.17
6.18
Subd. 4.Agriculture, Bioenergy, and Bioproduct
Advancement
21,717,000
21,717,000
6.19(a) $9,300,000 the first year and $9,300,000
6.20the second year are for transfer to the
6.21agriculture research, education, extension, and
6.22technology transfer account under Minnesota
6.23Statutes, section 41A.14, subdivision 3. Of
6.24these amounts: at least $600,000 the first year
6.25and $600,000 the second year are for the
6.26Minnesota Agricultural Experiment Station's
6.27agriculture rapid response fund under
6.28Minnesota Statutes, section 41A.14,
6.29subdivision 1, clause (2); $2,000,000 the first
6.30year and $2,000,000 the second year are for
6.31grants to the Minnesota Agriculture Education
6.32Leadership Council to enhance agricultural
6.33education with priority given to Farm Business
6.34Management challenge grants; up to $350,000
6.35the first year and up to $350,000 the second
6.36year are for potato breeding; and up to
7.1$450,000 the first year and up to $450,000 the
7.2second year are for the cultivated wild rice
7.3breeding project at the North Central Research
7.4and Outreach Center to include a tenure
7.5track/research associate plant breeder. The
7.6commissioner shall transfer the remaining
7.7funds in this appropriation each year to the
7.8Board of Regents of the University of
7.9Minnesota for purposes of Minnesota Statutes,
7.10section 41A.14. Of the amount transferred to
7.11the Board of Regents, up to $1,000,000 each
7.12year is for research on avian influenza,
7.13including prevention measures that can be
7.14taken.
7.15To the extent practicable, funds expended
7.16under Minnesota Statutes, section 41A.14,
7.17subdivision 1, clauses (1) and (2), must
7.18supplement and not supplant existing sources
7.19and levels of funding. The commissioner may
7.20use up to one percent of this appropriation for
7.21costs incurred to administer the program.
7.22(b) $12,392,000 the first year and $12,392,000
7.23the second year are for the agricultural growth,
7.24research, and innovation program in
7.25Minnesota Statutes, section 41A.12. Except
7.26as provided below, the commissioner may
7.27allocate the appropriation each year among
7.28the following areas: facilitating the start-up,
7.29modernization, or expansion of livestock
7.30operations including beginning and
7.31transitioning livestock operations; developing
7.32new markets for Minnesota farmers by
7.33providing more fruits, vegetables, meat, grain,
7.34and dairy for Minnesota school children;
7.35assisting value-added agricultural businesses
8.1to begin or expand, access new markets, or
8.2diversify; urban youth agricultural education;
8.3urban agriculture community development;
8.4facilitating the start-up, modernization, or
8.5expansion of other beginning and transitioning
8.6farms including by providing loans under
8.7Minnesota Statutes, section 41B.056;
8.8sustainable agriculture on-farm research and
8.9demonstration; development or expansion of
8.10food hubs and other alternative
8.11community-based food distribution systems;
8.12enhancing renewable energy infrastructure
8.13and use; crop research; Farm Business
8.14Management tuition assistance; good
8.15agricultural practices/good handling practices
8.16certification assistance; establishing and
8.17supporting farmer-led water management
8.18councils; and implementing farmer-led water
8.19quality improvement practices. The
8.20commissioner may use up to 4.5 percent of
8.21this appropriation for costs incurred to
8.22administer the program. Any unencumbered
8.23balance does not cancel at the end of the first
8.24year and is available for the second year.
8.25Notwithstanding Minnesota Statutes, section
8.2616A.28, appropriations encumbered under
8.27contract on or before June 30, 2019, for
8.28agricultural growth, research, and innovation
8.29grants are available until June 30, 2021.
8.30Of the amount appropriated for the agricultural
8.31growth, research, and innovation program in
8.32Minnesota Statutes, section 41A.12:
8.33(1) $1,000,000 the first year and $1,000,000
8.34the second year are for distribution in equal
9.1amounts to each of the state's county fairs to
9.2preserve and promote Minnesota agriculture;
9.3(2) $1,500,000 the first year and $1,500,000
9.4the second year are for incentive payments
9.5under Minnesota Statutes, sections 41A.16,
9.641A.17, and 41A.18. Notwithstanding
9.7Minnesota Statutes, section 16A.28, the first
9.8year appropriation is available until June 30,
9.92019, and the second year appropriation is
9.10available until June 30, 2020;
9.11(3) $3,000,000 the first year and $3,000,000
9.12the second year are for livestock investment
9.13grants under Minnesota Statutes, section
9.1417.118;
9.15(4) $3,000,000 the first year and $3,000,000
9.16the second year are for value-added agriculture
9.17grants;
9.18(5) $1,000,000 the first year and $1,000,000
9.19the second year are for grants to install
9.20equipment necessary to store or dispense
9.21biofuels to the public in order to meet the
9.22biofuel requirement goals established under
9.23Minnesota Statutes, section 239.7911;
9.24(6) $350,000 the first year and $350,000 the
9.25second year are for grants to expand
9.26Minnesota agriculture, including
9.27Minnesota-grown hemp, to new markets;
9.28(7) $400,000 the first year is for a grant to the
9.29Board of Trustees of the Minnesota State
9.30Colleges and Universities to expand and
9.31renovate the GROW-IT Center at Metropolitan
9.32State University;
9.33(8) Up to $350,000 the first year and up to
9.34$350,000 the second year are for urban youth
10.1agricultural education and urban agriculture
10.2community development on parcels of publicly
10.3owned land suitable for urban agriculture, in
10.4consultation with urban agriculture
10.5stakeholders. The commissioner must also
10.6consult with the commissioner of
10.7transportation, commissioner of
10.8administration, and local units of government
10.9to identify parcels of publicly owned land that
10.10are suitable for urban agriculture;
10.11(9) $100,000 the first year is for grants to
10.12ethnic minority chambers of commerce to
10.13connect immigrants and new American
10.14citizens to farming opportunities in this state;
10.15and
10.16(10) $450,000 the first year and $450,000 the
10.17second year are for farm business management
10.18scholarships.
10.19For value-added agriculture grants under
10.20clause (4), the commissioner may award up
10.21to two grants of up to $750,000 per grant for
10.22new or expanding livestock product processing
10.23facilities or dairy product processing facilities
10.24that provide significant economic impact to
10.25the region. The remaining value-added
10.26agriculture grants are for awards between
10.27$1,000 and $200,000 per grant. The
10.28appropriations in clauses (1) to (10) are
10.29onetime. If the appropriation for incentive
10.30payments in clause (2) exceeds the total
10.31amount for which all producers are eligible in
10.32a fiscal year, the balance of the appropriation
10.33is available for the agricultural growth,
10.34research, and innovation program. Any
10.35unencumbered balance does not cancel at the
11.1end of the first year and is available for the
11.2second year.
11.3The base budget for the agricultural growth,
11.4research, and innovation program for fiscal
11.5year 2020 and later is $13,273,000 each fiscal
11.6year. Of this amount, $4,500,000 each year is
11.7for incentive payments under Minnesota
11.8Statutes, sections 41A.16, 41A.17, 41A.18,
11.9and 41A.20.
11.10(c) $25,000 the first year and $25,000 the
11.11second year are for grants to the Southern
11.12Minnesota Initiative Foundation to promote
11.13local foods through an annual event that raises
11.14public awareness of local foods and connects
11.15local food producers and processors with
11.16potential buyers.
11.17
Subd. 5.Administration and Financial Assistance
7,640,000
7,490,000
11.18(a) $474,000 the first year and $474,000 the
11.19second year are for payments to county and
11.20district agricultural societies and associations
11.21under Minnesota Statutes, section 38.02,
11.22subdivision 1. Aid payments to county and
11.23district agricultural societies and associations
11.24shall be disbursed no later than July 15 of each
11.25year. These payments are the amount of aid
11.26from the state for an annual fair held in the
11.27previous calendar year.
11.28(b) $1,000 the first year and $1,000 the second
11.29year are for grants to the Minnesota State
11.30Poultry Association.
11.31(c) $18,000 the first year and $18,000 the
11.32second year are for grants to the Minnesota
11.33Livestock Breeders Association.
12.1(d) $47,000 the first year and $47,000 the
12.2second year are for the Northern Crops
12.3Institute. These appropriations may be spent
12.4to purchase equipment.
12.5(e) $220,000 the first year and $220,000 the
12.6second year are for farm advocate services.
12.7(f) $17,000 the first year and $17,000 the
12.8second year are for grants to the Minnesota
12.9Horticultural Society.
12.10(g) $108,000 the first year and $108,000 the
12.11second year are for annual grants to the
12.12Minnesota Turf Seed Council for basic and
12.13applied research on: (1) the improved
12.14production of forage and turf seed related to
12.15new and improved varieties; and (2) native
12.16plants, including plant breeding, nutrient
12.17management, pest management, disease
12.18management, yield, and viability. The grant
12.19recipient may subcontract with a qualified
12.20third party for some or all of the basic or
12.21applied research. Any unencumbered balance
12.22does not cancel at the end of the first year and
12.23is available for the second year. This is a
12.24onetime appropriation.
12.25(h) $113,000 the first year and $113,000 the
12.26second year are for transfer to the Board of
12.27Trustees of the Minnesota State Colleges and
12.28Universities for statewide mental health
12.29counseling support to farm families and
12.30business operators. South Central College shall
12.31serve as the fiscal agent.
12.32(i) $550,000 the first year and $550,000 the
12.33second year are for grants to Second Harvest
12.34Heartland on behalf of Minnesota's six
13.1Feeding America food banks for the purchase
13.2of milk for distribution to Minnesota's food
13.3shelves and other charitable organizations that
13.4are eligible to receive food from the food
13.5banks. Milk purchased under the grants must
13.6be acquired from Minnesota milk processors
13.7and based on low-cost bids. The milk must be
13.8allocated to each Feeding America food bank
13.9serving Minnesota according to the formula
13.10used in the distribution of United States
13.11Department of Agriculture commodities under
13.12The Emergency Food Assistance Program
13.13(TEFAP). Second Harvest Heartland must
13.14submit quarterly reports to the commissioner
13.15on forms prescribed by the commissioner. The
13.16reports must include, but are not limited to,
13.17information on the expenditure of funds, the
13.18amount of milk purchased, and the
13.19organizations to which the milk was
13.20distributed. Second Harvest Heartland may
13.21enter into contracts or agreements with food
13.22banks for shared funding or reimbursement of
13.23the direct purchase of milk. Each food bank
13.24receiving money from this appropriation may
13.25use up to two percent of the grant for
13.26administrative expenses. Any unencumbered
13.27balance does not cancel at the end of the first
13.28year and is available for the second year.
13.29(j) $1,100,000 the first year and $1,100,000
13.30the second year are for grants to Second
13.31Harvest Heartland on behalf of the six Feeding
13.32America food banks that serve Minnesota to
13.33compensate agricultural producers and
13.34processors for costs incurred to harvest and
13.35package for transfer surplus fruits, vegetables,
13.36and other agricultural commodities that would
14.1otherwise go unharvested, be discarded, or
14.2sold in a secondary market. Surplus
14.3commodities must be distributed statewide to
14.4food shelves and other charitable organizations
14.5that are eligible to receive food from the food
14.6banks. Surplus food acquired under this
14.7appropriation must be from Minnesota
14.8producers and processors. Second Harvest
14.9Heartland must report in the form prescribed
14.10by the commissioner. Second Harvest
14.11Heartland may use up to 15 percent of each
14.12grant for matching administrative and
14.13transportation expenses. Any unencumbered
14.14balance does not cancel at the end of the first
14.15year and is available for the second year.
14.16(k) $150,000 the first year and $150,000 the
14.17second year are for grants to the Center for
14.18Rural Policy and Development.
14.19(l) $235,000 the first year and $235,000 the
14.20second year are for grants to the Minnesota
14.21Agricultural Education and Leadership
14.22Council for programs of the council under
14.23Minnesota Statutes, chapter 41D.
14.24(m) $600,000 the first year and $600,000 the
14.25second year are for grants to the Board of
14.26Regents of the University of Minnesota to
14.27develop, in consultation with the
14.28commissioner of agriculture and the Board of
14.29Animal Health, a software tool or application
14.30through the Veterinary Diagnostic Laboratory
14.31that empowers veterinarians and producers to
14.32understand the movement of unique pathogen
14.33strains in livestock and poultry production
14.34systems, monitor antibiotic resistance, and
14.35implement effective biosecurity measures that
15.1promote animal health and limit production
15.2losses. This is a onetime appropriation.
15.3(n) $150,000 the first year is for the tractor
15.4rollover protection pilot program under
15.5Minnesota Statutes, section 17.119. This is a
15.6onetime appropriation and is available until
15.7June 30, 2019.
15.8By January 15, 2018, the commissioner shall
15.9submit a report to the chairs and ranking
15.10minority members of the legislative
15.11committees with jurisdiction over agricultural
15.12policy and finance with a list of inspections
15.13the department conducts at more frequent
15.14intervals than federal law requires, an
15.15explanation of why the additional inspections
15.16are necessary, and provide recommendations
15.17for eliminating any unnecessary inspections.

15.18
Sec. 3. BOARD OF ANIMAL HEALTH
$
5,384,000
$
5,384,000

15.19
15.20
Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
3,643,000
$
3,643,000

15.21    Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
15.22amended by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2,
15.23section 26, is amended to read:
15.24
15.25
Subd. 4.Agriculture, Bioenergy, and Bioproduct
Advancement
14,993,000
19,010,000
18,316,000
15.26$4,483,000 the first year and $8,500,000 the
15.27second year are for transfer to the agriculture
15.28research, education, extension, and technology
15.29transfer account under Minnesota Statutes,
15.30section 41A.14, subdivision 3. The transfer in
15.31this paragraph includes money for plant
15.32breeders at the University of Minnesota for
15.33wild rice, potatoes, and grapes. Of these
16.1amounts, at least $600,000 each year is for the
16.2Minnesota Agricultural Experiment Station's
16.3Agriculture Rapid Response Fund under
16.4Minnesota Statutes, section 41A.14,
16.5subdivision 1
, clause (2). Of the amount
16.6appropriated in this paragraph, $1,000,000
16.7each year is for transfer to the Board of
16.8Regents of the University of Minnesota for
16.9research to determine (1) what is causing avian
16.10influenza, (2) why some fowl are more
16.11susceptible, and (3) prevention measures that
16.12can be taken. Of the amount appropriated in
16.13this paragraph, $2,000,000 each year is for
16.14grants to the Minnesota Agriculture Education
16.15Leadership Council to enhance agricultural
16.16education with priority given to Farm Business
16.17Management challenge grants. The
16.18commissioner shall transfer the remaining
16.19grant funds in this appropriation each year to
16.20the Board of Regents of the University of
16.21Minnesota for purposes of Minnesota Statutes,
16.22section 41A.14.
16.23To the extent practicable, funds expended
16.24under Minnesota Statutes, section 41A.14,
16.25subdivision 1
, clauses (1) and (2), must
16.26supplement and not supplant existing sources
16.27and levels of funding. The commissioner may
16.28use up to 4.5 percent of this appropriation for
16.29costs incurred to administer the program. Any
16.30unencumbered balance does not cancel at the
16.31end of the first year and is available for the
16.32second year.
16.33$10,235,000 the first year and $10,235,000
16.34$9,541,000 the second year are for the
16.35agricultural growth, research, and innovation
17.1program in Minnesota Statutes, section
17.241A.12 . No later than February 1, 2016, and
17.3February 1, 2017, the commissioner must
17.4report to the legislative committees with
17.5jurisdiction over agriculture policy and finance
17.6regarding the commissioner's
17.7accomplishments and anticipated
17.8accomplishments in the following areas:
17.9facilitating the start-up, modernization, or
17.10expansion of livestock operations including
17.11beginning and transitioning livestock
17.12operations; developing new markets for
17.13Minnesota farmers by providing more fruits,
17.14vegetables, meat, grain, and dairy for
17.15Minnesota school children; assisting
17.16value-added agricultural businesses to begin
17.17or expand, access new markets, or diversify
17.18products; developing urban agriculture;
17.19facilitating the start-up, modernization, or
17.20expansion of other beginning and transitioning
17.21farms including loans under Minnesota
17.22Statutes, section 41B.056; sustainable
17.23agriculture on farm research and
17.24demonstration; development or expansion of
17.25food hubs and other alternative
17.26community-based food distribution systems;
17.27incentive payments under Minnesota Statutes,
17.28sections 41A.16, 41A.17, and 41A.18; and
17.29research on bioenergy, biobased content, or
17.30biobased formulated products and other
17.31renewable energy development. The
17.32commissioner may use up to 4.5 percent of
17.33this appropriation for costs incurred to
17.34administer the program. Any unencumbered
17.35balance does not cancel at the end of the first
17.36year and is available for the second year.
18.1Notwithstanding Minnesota Statutes, section
18.216A.28 , the appropriations encumbered under
18.3contract on or before June 30, 2017, for
18.4agricultural growth, research, and innovation
18.5grants are available until June 30, 2019.
18.6The commissioner may use funds appropriated
18.7for the agricultural growth, research, and
18.8innovation program as provided in this
18.9paragraph. The commissioner may award
18.10grants to owners of Minnesota facilities
18.11producing bioenergy, biobased content, or a
18.12biobased formulated product; to organizations
18.13that provide for on-station, on-farm field scale
18.14research and outreach to develop and test the
18.15agronomic and economic requirements of
18.16diverse strands of prairie plants and other
18.17perennials for bioenergy systems; or to certain
18.18nongovernmental entities. For the purposes of
18.19this paragraph, "bioenergy" includes
18.20transportation fuels derived from cellulosic
18.21material, as well as the generation of energy
18.22for commercial heat, industrial process heat,
18.23or electrical power from cellulosic materials
18.24via gasification or other processes. Grants are
18.25limited to 50 percent of the cost of research,
18.26technical assistance, or equipment related to
18.27bioenergy, biobased content, or biobased
18.28formulated product production or $500,000,
18.29whichever is less. Grants to nongovernmental
18.30entities for the development of business plans
18.31and structures related to community ownership
18.32of eligible bioenergy facilities together may
18.33not exceed $150,000. The commissioner shall
18.34make a good-faith effort to select projects that
18.35have merit and, when taken together, represent
18.36a variety of bioenergy technologies, biomass
19.1feedstocks, and geographic regions of the
19.2state. Projects must have a qualified engineer
19.3provide certification on the technology and
19.4fuel source. Grantees must provide reports at
19.5the request of the commissioner.
19.6Of the amount appropriated for the agricultural
19.7growth, research, and innovation program in
19.8this subdivision, $1,000,000 the first year and
19.9$1,000,000 the second year are for distribution
19.10in equal amounts to each of the state's county
19.11fairs to preserve and promote Minnesota
19.12agriculture.
19.13Of the amount appropriated for the agricultural
19.14growth, research, and innovation program in
19.15this subdivision, $500,000 in fiscal year 2016
19.16and $1,500,000 $806,000 in fiscal year 2017
19.17are for incentive payments under Minnesota
19.18Statutes, sections 41A.16, 41A.17, and
19.1941A.18 . If the appropriation exceeds the total
19.20amount for which all producers are eligible in
19.21a fiscal year, the balance of the appropriation
19.22is available to the commissioner for the
19.23agricultural growth, research, and innovation
19.24program. Notwithstanding Minnesota Statutes,
19.25section 16A.28, the first year appropriation is
19.26available until June 30, 2017, and the second
19.27year appropriation is available until June 30,
19.282018. The commissioner may use up to 4.5
19.29percent of the appropriation for administration
19.30of the incentive payment programs.
19.31Of the amount appropriated for the agricultural
19.32growth, research, and innovation program in
19.33this subdivision, $250,000 the first year is for
19.34grants to communities to develop or expand
19.35food hubs and other alternative
20.1community-based food distribution systems.
20.2Of this amount, $50,000 is for the
20.3commissioner to consult with existing food
20.4hubs, alternative community-based food
20.5distribution systems, and University of
20.6Minnesota Extension to identify best practices
20.7for use by other Minnesota communities. No
20.8later than December 15, 2015, the
20.9commissioner must report to the legislative
20.10committees with jurisdiction over agriculture
20.11and health regarding the status of emerging
20.12alternative community-based food distribution
20.13systems in the state along with
20.14recommendations to eliminate any barriers to
20.15success. Any unencumbered balance does not
20.16cancel at the end of the first year and is
20.17available for the second year. This is a onetime
20.18appropriation.
20.19$250,000 the first year and $250,000 the
20.20second year are for grants that enable retail
20.21petroleum dispensers to dispense biofuels to
20.22the public in accordance with the biofuel
20.23replacement goals established under
20.24Minnesota Statutes, section 239.7911. A retail
20.25petroleum dispenser selling petroleum for use
20.26in spark ignition engines for vehicle model
20.27years after 2000 is eligible for grant money
20.28under this paragraph if the retail petroleum
20.29dispenser has no more than 15 retail petroleum
20.30dispensing sites and each site is located in
20.31Minnesota. The grant money received under
20.32this paragraph must be used for the installation
20.33of appropriate technology that uses fuel
20.34dispensing equipment appropriate for at least
20.35one fuel dispensing site to dispense gasoline
20.36that is blended with 15 percent of
21.1agriculturally derived, denatured ethanol, by
21.2volume, and appropriate technical assistance
21.3related to the installation. A grant award must
21.4not exceed 85 percent of the cost of the
21.5technical assistance and appropriate
21.6technology, including remetering of and
21.7retrofits for retail petroleum dispensers and
21.8replacement of petroleum dispenser projects.
21.9The commissioner may use up to $35,000 of
21.10this appropriation for administrative expenses.
21.11The commissioner shall cooperate with biofuel
21.12stakeholders in the implementation of the grant
21.13program. The commissioner must report to
21.14the legislative committees with jurisdiction
21.15over agriculture policy and finance by
21.16February 1 each year, detailing the number of
21.17grants awarded under this paragraph and the
21.18projected effect of the grant program on
21.19meeting the biofuel replacement goals under
21.20Minnesota Statutes, section 239.7911. These
21.21are onetime appropriations.
21.22$25,000 the first year and $25,000 the second
21.23year are for grants to the Southern Minnesota
21.24Initiative Foundation to promote local foods
21.25through an annual event that raises public
21.26awareness of local foods and connects local
21.27food producers and processors with potential
21.28buyers.

21.29    Sec. 6. APPROPRIATION CANCELLATION.
21.30All unspent funds, estimated to be $694,000, appropriated for the agricultural growth,
21.31research, and innovation program and designated for bioeconomy incentive payments under
21.32Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as amended
21.33by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section 26,
21.34are canceled to the general fund.
22.1EFFECTIVE DATE.This section is effective the day following final enactment.

22.2ARTICLE 2
22.3AGRICULTURAL POLICY

22.4    Section 1. Minnesota Statutes 2016, section 3.7371, is amended to read:
22.53.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.
22.6    Subdivision 1. Authorization. Notwithstanding section 3.736, subdivision 3, paragraph
22.7(e), or any other law, a person who owns an agricultural crop or pasture shall be compensated
22.8by the commissioner of agriculture for an agricultural crop, or fence surrounding the crop
22.9or pasture, that is damaged or destroyed by elk as provided in this section.
22.10    Subd. 2. Claim form. The crop or pasture owner must prepare a claim on forms provided
22.11by the commissioner and available at on the county extension agent's office Department of
22.12Agriculture's Web site or by request from the commissioner. The claim form must be filed
22.13with the commissioner.
22.14    Subd. 3. Compensation. (a) The crop owner is entitled to the target price or the market
22.15price, whichever is greater, of the damaged or destroyed crop plus adjustments for yield
22.16loss determined according to agricultural stabilization and conservation service programs
22.17for individual farms, adjusted annually, as determined by the commissioner, upon
22.18recommendation of the county extension commissioner's approved agent for the owner's
22.19county. Verification of fence damage or destruction by elk may be provided by submitting
22.20photographs or other evidence and documentation together with a statement from an
22.21independent witness using forms prescribed by the commissioner. The commissioner, upon
22.22recommendation of the commissioner's approved agent, shall determine whether the crop
22.23damage or destruction or damage to or destruction of a fence surrounding a crop or pasture
22.24is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed. In
22.25any fiscal year, an owner may not be compensated for a damaged or destroyed crop or fence
22.26surrounding a crop or pasture that is less than $100 in value and may be compensated up
22.27to $20,000, as determined under this section, if normal harvest procedures for the area are
22.28followed.
22.29    (b) In any fiscal year, the commissioner may provide compensation for claims filed
22.30under this section up to the amount expressly appropriated for this purpose.
22.31    Subd. 4. Insurance deduction. Payments authorized by this section must be reduced
22.32by amounts received by the owner as proceeds from an insurance policy covering crop
23.1losses or damage to or destruction of a fence surrounding a crop or pasture, or from any
23.2other source for the same purpose including, but not limited to, a federal program.
23.3    Subd. 5. Decision on claims; opening land to hunting. If the commissioner finds that
23.4the crop or pasture owner has shown that the damage or destruction of the owner's crop or
23.5damage to or destruction of a fence surrounding a crop or pasture was caused more probably
23.6than not by elk, the commissioner shall pay compensation as provided in this section and
23.7the rules of the commissioner. A crop An owner who receives compensation under this
23.8section may, by written permission, permit hunting on the land at the landowner's discretion.
23.9    Subd. 6. Denial of claim; appeal. (a) If the commissioner denies compensation claimed
23.10by a crop or pasture an owner under this section, the commissioner shall issue a written
23.11decision based upon the available evidence including a statement of the facts upon which
23.12the decision is based and the conclusions on the material issues of the claim. A copy of the
23.13decision must be mailed to the crop or pasture owner.
23.14(b) A decision denying compensation claimed under this section is not subject to the
23.15contested case review procedures of chapter 14, but a crop or pasture an owner may have
23.16the claim reviewed in a trial de novo in a court in the county where the loss occurred. The
23.17decision of the court may be appealed as in other civil cases. Review in court may be obtained
23.18by filing a petition for review with the administrator of the court within 60 days following
23.19receipt of a decision under this section. Upon the filing of a petition, the administrator shall
23.20mail a copy to the commissioner and set a time for hearing within 90 days after the filing.
23.21    Subd. 7. Rules. The commissioner shall adopt rules and may amend rules to carry out
23.22this section. The commissioner may use the expedited rulemaking process in section 14.389
23.23to adopt and amend rules authorized in this section. The rules must include:
23.24(1) methods of valuation of crops damaged or destroyed;
23.25(2) criteria for determination of the cause of the crop damage or destruction;
23.26(3) notice requirements by the owner of the damaged or destroyed crop;
23.27(4) compensation rates for fence damage or destruction that shall include a minimum
23.28claim of $75.00 per incident and a maximum of must not exceed $1,800 per claimant per
23.29fiscal year; and
23.30(5) any other matters determined necessary by the commissioner to carry out this section.
23.31    Subd. 8. Report. The commissioner must submit a report to the chairs of the house of
23.32representatives and senate committees and divisions with jurisdiction over agriculture and
24.1environment and natural resources by December 15 each year that details the total amount
24.2of damages paid, by elk herd, in the previous two fiscal years.

24.3    Sec. 2. Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:
24.4    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share grants
24.5to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible
24.6tractors with eligible rollover protective structures.
24.7(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented
24.8cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
24.9must increase the a farmer's grant award amount over the 70 percent grant limitation
24.10requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.
24.11(c) Schools are eligible for grants that cover the full amount of a school's documented
24.12cost to purchase, ship, and install an eligible rollover protective structure.
24.13(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International
24.14standard J2194 is certified to appropriate national or international rollover protection structure
24.15standards with a seat belt.
24.16(c) (e) A tractor is eligible if the tractor was built before 1987.
24.17EFFECTIVE DATE.This section is effective retroactively from July 1, 2016.

24.18    Sec. 3. Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:
24.19    Subd. 2. Promotion; administration. The commissioner may spend up to 20 six percent
24.20of total program dollars each fiscal year to promote and administer the program to Minnesota
24.21farmers and schools.

24.22    Sec. 4. Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:
24.23    Subd. 18. Noxious weed education and notification. (a) The commissioner shall
24.24disseminate information and conduct educational campaigns with respect to control of
24.25noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
24.26to eliminate or manage these plants. The commissioner shall call and attend meetings and
24.27conferences dealing with the subject of noxious weeds. The commissioner shall maintain
24.28on the department's Web site noxious weed management information including but not
24.29limited to the roles and responsibilities of citizens and government entities under sections
24.3018.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious
24.31weed issue.
25.1(b) The commissioner shall post notice on the department's Web site and alert appropriate
25.2media outlets when a weed on the eradicate list is confirmed for the first time in a county.

25.3    Sec. 5. [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.
25.4A pollinator habitat and research account is established in the agricultural fund. Money
25.5in the account, including interest, is appropriated to the Board of Regents of the University
25.6of Minnesota for pollinator research and outreach including, but not limited to, science-based
25.7best practices and the identification and establishment of habitat beneficial to pollinators.

25.8    Sec. 6. Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read:
25.9    Subdivision 1. Requirement. (a) A person may not apply a pesticide for hire without a
25.10commercial applicator license for the appropriate use categories or a structural pest control
25.11license.
25.12    (b) A commercial applicator licensee must have a valid license identification card to
25.13purchase a restricted use pesticide or apply pesticides for hire and must display it upon
25.14demand by an authorized representative of the commissioner or a law enforcement officer.
25.15The commissioner shall prescribe the information required on the license identification
25.16card.
25.17(c) A person licensed under this section is not required to verify, document, or otherwise
25.18prove a particular need prior to or following the application of a pesticide registered under
25.19FIFRA.

25.20    Sec. 7. Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read:
25.21    Subdivision 1. Requirement. (a) Except for a licensed commercial applicator, certified
25.22private applicator, or licensed structural pest control applicator, a person, including a
25.23government employee, may not purchase or use a restricted use pesticide in performance
25.24of official duties without having a noncommercial applicator license for an appropriate use
25.25category.
25.26    (b) A licensee must have a valid license identification card when applying pesticides
25.27and must display it upon demand by an authorized representative of the commissioner or a
25.28law enforcement officer. The license identification card must contain information required
25.29by the commissioner.
26.1(c) A person licensed under this section is not required to verify, document, or otherwise
26.2prove a particular need prior to or following the application of a pesticide registered under
26.3FIFRA.

26.4    Sec. 8. Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read:
26.5    Subdivision 1. Requirement. (a) Except for a licensed commercial or noncommercial
26.6applicator, only a certified private applicator may use a restricted use pesticide to produce
26.7an agricultural commodity:
26.8(1) as a traditional exchange of services without financial compensation;
26.9(2) on a site owned, rented, or managed by the person or the person's employees; or
26.10(3) when the private applicator is one of two or fewer employees and the owner or
26.11operator is a certified private applicator or is licensed as a noncommercial applicator.
26.12(b) A person may not purchase a restricted use pesticide without presenting a license
26.13card, certified private applicator card, or the card number.
26.14(c) A person certified under this section is not required to verify, document, or otherwise
26.15prove a particular need prior to or following the application of a pesticide registered under
26.16FIFRA.

26.17    Sec. 9. Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:
26.18    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
26.19minority members of the house of representatives and senate committees with jurisdiction
26.20over agriculture finance, must allocate available appropriated funds among eligible uses as
26.21provided by law, develop competitive eligibility criteria, and award funds on a needs basis.
26.22By February 1 each year, the commissioner shall report to the legislature on the allocation
26.23among eligible uses and any financial assistance provided the outcomes achieved under
26.24this section.

26.25    Sec. 10. Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:
26.26    Subd. 2. Eligibility. (a) A facility eligible for payment under this section must source
26.27at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from
26.28the state border, raw materials may be sourced from within a 100-mile radius. Raw materials
26.29must be from forest resources. The facility must be located in Minnesota, must begin
26.30production at a specific location by June 30, 2025, and must not begin operating before July
26.311, 2017 2019. Eligible facilities include existing companies and facilities that are adding
27.1siding production capacity, or retrofitting existing capacity, as well as new companies and
27.2facilities. Eligible siding production facilities must produce at least 200,000,000 siding
27.3square feet on a 3/8 inch nominal basis of siding each year.
27.4(b) No payments shall be made for siding production that occurs after June 30, 2035,
27.5for those eligible producers under paragraph (a).
27.6(c) An eligible producer of siding shall not transfer the producer's eligibility for payments
27.7under this section to a facility at a different location.
27.8(d) A producer that ceases production for any reason is ineligible to receive payments
27.9under this section until the producer resumes production.

27.10    Sec. 11. Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:
27.11    Subdivision 1. Adjoining owners. If all or a part of adjoining Minnesota land is improved
27.12and used, (a) Except as provided in paragraph (b), if two adjoining lands are both used in
27.13whole or in part to produce or maintain livestock for agricultural or commercial purposes
27.14and one or both of the owners of the land desires the land to be partly or totally fenced, the
27.15land owners or occupants shall build and maintain a partition fence between their lands in
27.16equal shares.
27.17(b) The requirement in this section and the procedures in this chapter apply to the
27.18Department of Natural Resources when it owns land adjoining privately owned land subject
27.19to this section and chapter and the landowner desires the land permanently fenced for the
27.20purpose of restraining livestock.
27.21(c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine, poultry,
27.22goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas, and
27.23llamas.
27.24EFFECTIVE DATE.This section is effective the day following final enactment and
27.25applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on or after that
27.26date.

27.27    Sec. 12. WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.
27.28(a) The commissioner of agriculture may award grants to livestock producers to prevent
27.29wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to apply for
27.30reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner
27.31may establish a cap on the amount a recipient may receive annually.
28.1(b) To be eligible for the grant under this section, a livestock producer must raise livestock
28.2within Minnesota's wolf range or on property determined by the commissioner to be affected
28.3by wolf-livestock conflicts.
28.4(c) Eligible wolf-livestock conflict prevention activities include, but are not limited to:
28.5(1) the purchase of guard animals;
28.6(2) veterinary costs for guard animals;
28.7(3) the installation of wolf barriers; wolf barriers may include pens, fladry, and fencing;
28.8(4) the installation of wolf-deterring lights and alarms; and
28.9(5) calving or lambing shelters.
28.10(d) Eligible grant recipients must:
28.11(1) make a good-faith effort to avoid wolf-livestock conflicts;
28.12(2) make a good-faith effort to care for guard animals paid for under this section;
28.13(3) retain proper documentation of expenses;
28.14(4) report annually to the commissioner on the effectiveness of the nonlethal methods
28.15employed; and
28.16(5) allow follow-up evaluation and monitoring by the commissioner.
28.17(e) Grant recipients shall continue to be eligible for depredation payments under
28.18Minnesota Statutes, section 3.737.

28.19    Sec. 13. BASE BUDGET REPORT REQUIRED.
28.20No later than October 15, 2018, the commissioner of agriculture must submit a report
28.21detailing the agency's base budget, including any prior appropriation riders, to the chairs
28.22and ranking minority members of the legislative committees with jurisdiction over agriculture
28.23finance.

28.24    Sec. 14. REPEALER.
28.25Minnesota Statutes 2016, sections 41A.20, subdivision 6; and 383C.809, are repealed."
28.26Renumber the sections in sequence and correct the internal references
28.27Delete the title and insert:
29.1"A bill for an act
29.2relating to agriculture; establishing a budget for the Department of Agriculture,
29.3the Board of Animal Health, and the Agricultural Utilization Research Institute;
29.4making policy and technical changes to various agriculture-related provisions;
29.5establishing programs; modifying partition fence law; requiring reports;
29.6appropriating money;amending Minnesota Statutes 2016, sections 3.7371; 17.119,
29.7subdivisions 1, 2; 18.79, subdivision 18; 18B.33, subdivision 1; 18B.34, subdivision
29.81; 18B.36, subdivision 1; 41A.12, subdivision 3; 41A.20, subdivision 2; 344.03,
29.9subdivision 1; Laws 2015, First Special Session chapter 4, article 1, section 2,
29.10subdivision 4, as amended; proposing coding for new law in Minnesota Statutes,
29.11chapter 18B; repealing Minnesota Statutes 2016, sections 41A.20, subdivision 6;
29.12383C.809."
30.1
We request the adoption of this report and repassage of the bill.
30.2
Senate Conferees:
30.3
.....
.....
30.4
Torrey N. Westrom
Bill Weber
30.5
.....
.....
30.6
Michael P. Goggin
Andrew Lang
30.7
.....
30.8
Kent Eken
30.9
House Conferees:
30.10
.....
.....
30.11
Rod Hamilton
Paul Anderson
30.12
.....
.....
30.13
Dale Lueck
Jeff Backer
30.14
.....
30.15
Jeanne Poppe