SF 780

4th Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 02:55pm

A bill for an act
relating to agriculture; establishing a budget for the Department of Agriculture,
the Board of Animal Health, and the Agricultural Utilization Research Institute;
making policy and technical changes to various agriculture-related provisions;
establishing programs; modifying partition fence law; requiring reports;
appropriating money; amending Minnesota Statutes 2016, sections 3.7371; 17.119,
subdivisions 1, 2; 18.79, subdivision 18; 18B.33, subdivision 1; 18B.34, subdivision
1; 18B.36, subdivision 1; 41A.12, subdivision 3; 41A.20, subdivision 2; 344.03,
subdivision 1; Laws 2015, First Special Session chapter 4, article 1, section 2,
subdivision 4, as amended; proposing coding for new law in Minnesota Statutes,
chapter 18B; repealing Minnesota Statutes 2016, sections 41A.20, subdivision 6;
383C.809.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2018 new text end		new text begin 2019 new text end

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

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

new text begin $ new text end

new text begin 51,019,000 new text end

new text begin $ new text end

new text begin 50,869,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 50,631,000 new text end	new text begin 50,481,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

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

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin 17,666,000 new text end

new text begin 17,666,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 17,278,000 new text end	new text begin 17,278,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin (a) $25,000 the first year and $25,000 the
second year are to develop and maintain
cottage food license exemption outreach and
training materials.
new text end

new text begin (b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional
facility vocational training program and to
assist entities that have explored the feasibility
of establishing a USDA-certified or state
"equal to" food processing facility within 30
miles of the Northeast Regional Corrections
Center.
new text end

new text begin (c) $250,000 the first year and $250,000 the
second year are for transfer to the pollinator
habitat and research account in the agricultural
fund. These are onetime transfers.
new text end

new text begin (d) $388,000 the first year and $388,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.
new text end

new text begin (e) $125,000 the first year and $125,000 the
second year are for the industrial hemp pilot
program under Minnesota Statutes, section
18K.09. These are onetime appropriations.
new text end

new text begin (f) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate for
livestock that were destroyed or crippled
during fiscal year 2017. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year.
new text end

new text begin (g) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.
new text end

new text begin If the commissioner determines that claims
made under Minnesota Statutes, section 3.737
or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
new text end

new text begin (h) $250,000 the first year and $250,000 the
second year are to expand current capabilities
for rapid detection, identification, containment,
control, and management of high priority plant
pests and pathogens. These are onetime
appropriations.
new text end

new text begin (i) $300,000 the first year and $300,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government under
Minnesota Statutes, section 18.90, with
preference given to local units of government
responding to Palmer amaranth or other weeds
on the eradicate list. These are onetime
transfers. The commissioner may use up to
4.5 percent of this appropriation for costs
incurred to administer the grant program.
new text end

new text begin (j) $120,000 the first year and $120,000 the
second year are for wolf-livestock conflict
prevention grants under article 2, section 12.
The commissioner must submit a report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance by January 15,
2020, on the outcomes of the wolf-livestock
conflict prevention grants and whether
livestock compensation claims were reduced
in the areas that grants were awarded. This is
a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 3,996,000 new text end

new text begin 3,996,000 new text end

new text begin (a) The commissioner must provide outreach
to urban farmers regarding the department's
financial and technical assistance programs
and must assist urban farmers in applying for
assistance.
new text end

new text begin (b) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Grants may be made
for one year. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations
encumbered under contract on or before June
30, 2019, for Minnesota grown grants in this
paragraph are available until June 30, 2021.
new text end

new text begin (c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter 216,
section 7, subdivision 2, and Laws 2001, First
Special Session chapter 2, section 9,
subdivision 2. The commissioner may allocate
the available sums among permissible
activities, including efforts to improve the
quality of milk produced in the state, in the
proportions that the commissioner deems most
beneficial to Minnesota's dairy farmers. The
commissioner must submit a detailed
accomplishment report and a work plan
detailing future plans for, and anticipated
accomplishments from, expenditures under
this program to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture policy and finance
on or before the start of each fiscal year. If
significant changes are made to the plans in
the course of the year, the commissioner must
notify the chairs and ranking minority
members.
new text end

new text begin (d) The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance for
persons transitioning from conventional to
organic agriculture.
new text end

new text begin Subd. 4. new text end new text begin Agriculture, Bioenergy, and Bioproduct Advancement new text end

new text begin 21,717,000 new text end

new text begin 21,717,000 new text end

new text begin (a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; up to $350,000
the first year and up to $350,000 the second
year are for potato breeding; and up to
$450,000 the first year and up to $450,000 the
second year are for the cultivated wild rice
breeding project at the North Central Research
and Outreach Center to include a tenure
track/research associate plant breeder. The
commissioner shall transfer the remaining
funds in this appropriation each year to the
Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14. Of the amount transferred to
the Board of Regents, up to $1,000,000 each
year is for research on avian influenza,
including prevention measures that can be
taken.
new text end

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

new text begin (b) $12,392,000 the first year and $12,392,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, or expansion of livestock
operations including beginning and
transitioning livestock operations; developing
new markets for Minnesota farmers by
providing more fruits, vegetables, meat, grain,
and dairy for Minnesota school children;
assisting value-added agricultural businesses
to begin or expand, access new markets, or
diversify; urban youth agricultural education;
urban agriculture community development;
facilitating the start-up, modernization, or
expansion of other beginning and transitioning
farms including by providing loans under
Minnesota Statutes, section 41B.056;
sustainable agriculture on-farm research and
demonstration; development or expansion of
food hubs and other alternative
community-based food distribution systems;
enhancing renewable energy infrastructure
and use; crop research; Farm Business
Management tuition assistance; good
agricultural practices/good handling practices
certification assistance; establishing and
supporting farmer-led water management
councils; and implementing farmer-led water
quality improvement practices. The
commissioner may use up to 4.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, appropriations encumbered under
contract on or before June 30, 2019, for
agricultural growth, research, and innovation
grants are available until June 30, 2021.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:
new text end

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

new text begin (2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2019, and the second year appropriation is
available until June 30, 2020;
new text end

new text begin (3) $3,000,000 the first year and $3,000,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118;
new text end

new text begin (4) $3,000,000 the first year and $3,000,000
the second year are for value-added agriculture
grants;
new text end

new text begin (5) $1,000,000 the first year and $1,000,000
the second year are for grants to install
equipment necessary to store or dispense
biofuels to the public in order to meet the
biofuel requirement goals established under
Minnesota Statutes, section 239.7911;
new text end

new text begin (6) $350,000 the first year and $350,000 the
second year are for grants to expand
Minnesota agriculture, including
Minnesota-grown hemp, to new markets;
new text end

new text begin (7) $400,000 the first year is for a grant to the
Board of Trustees of the Minnesota State
Colleges and Universities to expand and
renovate the GROW-IT Center at Metropolitan
State University;
new text end

new text begin (8) Up to $350,000 the first year and up to
$350,000 the second year are for urban youth
agricultural education and urban agriculture
community development on parcels of publicly
owned land suitable for urban agriculture, in
consultation with urban agriculture
stakeholders. The commissioner must also
consult with the commissioner of
transportation, commissioner of
administration, and local units of government
to identify parcels of publicly owned land that
are suitable for urban agriculture;
new text end

new text begin (9) $100,000 the first year is for grants to
ethnic minority chambers of commerce to
connect immigrants and new American
citizens to farming opportunities in this state;
and
new text end

new text begin (10) $450,000 the first year and $450,000 the
second year are for farm business management
scholarships.
new text end

new text begin For value-added agriculture grants under
clause (4), the commissioner may award up
to two grants of up to $750,000 per grant for
new or expanding livestock product processing
facilities or dairy product processing facilities
that provide significant economic impact to
the region. The remaining value-added
agriculture grants are for awards between
$1,000 and $200,000 per grant. The
appropriations in clauses (1) to (10) are
onetime. If the appropriation for incentive
payments in clause (2) exceeds the total
amount for which all producers are eligible in
a fiscal year, the balance of the appropriation
is available for the agricultural growth,
research, and innovation program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
new text end

new text begin The base budget for the agricultural growth,
research, and innovation program for fiscal
year 2020 and later is $13,273,000 each fiscal
year. Of this amount, $4,500,000 each year is
for incentive payments under Minnesota
Statutes, sections 41A.16, 41A.17, 41A.18,
and 41A.20.
new text end

new text begin (c) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.
new text end

new text begin Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 7,640,000 new text end

new text begin 7,490,000 new text end

new text begin (a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.
new text end

new text begin (b) $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
new text end

new text begin (c) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association.
new text end

new text begin (d) $47,000 the first year and $47,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.
new text end

new text begin (e) $220,000 the first year and $220,000 the
second year are for farm advocate services.
new text end

new text begin (f) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
new text end

new text begin (g) $108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic and
applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research. Any unencumbered balance
does not cancel at the end of the first year and
is available for the second year. This is a
onetime appropriation.
new text end

new text begin (h) $113,000 the first year and $113,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for statewide mental health
counseling support to farm families and
business operators. South Central College shall
serve as the fiscal agent.
new text end

new text begin (i) $550,000 the first year and $550,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Feeding America food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations that
are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Feeding America food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities under
The Emergency Food Assistance Program
(TEFAP). Second Harvest Heartland must
submit quarterly reports to the commissioner
on forms prescribed by the commissioner. The
reports must include, but are not limited to,
information on the expenditure of funds, the
amount of milk purchased, and the
organizations to which the milk was
distributed. Second Harvest Heartland may
enter into contracts or agreements with food
banks for shared funding or reimbursement of
the direct purchase of milk. Each food bank
receiving money from this appropriation may
use up to two percent of the grant for
administrative expenses. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
new text end

new text begin (j) $1,100,000 the first year and $1,100,000
the second year are for grants to Second
Harvest Heartland on behalf of the six Feeding
America food banks that serve Minnesota to
compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this
appropriation must be from Minnesota
producers and processors. Second Harvest
Heartland must report in the form prescribed
by the commissioner. Second Harvest
Heartland may use up to 15 percent of each
grant for matching administrative and
transportation expenses. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
new text end

new text begin (k) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development.
new text end

new text begin (l) $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin (m) $600,000 the first year and $600,000 the
second year are for grants to the Board of
Regents of the University of Minnesota to
develop, in consultation with the
commissioner of agriculture and the Board of
Animal Health, a software tool or application
through the Veterinary Diagnostic Laboratory
that empowers veterinarians and producers to
understand the movement of unique pathogen
strains in livestock and poultry production
systems, monitor antibiotic resistance, and
implement effective biosecurity measures that
promote animal health and limit production
losses. This is a onetime appropriation.
new text end

new text begin (n) $150,000 the first year is for the tractor
rollover protection pilot program under
Minnesota Statutes, section 17.119. This is a
onetime appropriation and is available until
June 30, 2019.
new text end

new text begin By January 15, 2018, the commissioner shall
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agricultural
policy and finance with a list of inspections
the department conducts at more frequent
intervals than federal law requires, an
explanation of why the additional inspections
are necessary, and provide recommendations
for eliminating any unnecessary inspections.
new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 5,384,000 new text end

new text begin $ new text end

new text begin 5,384,000 new text end

Sec. 4. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 3,643,000 new text end

new text begin $ new text end

new text begin 3,643,000 new text end

Sec. 5.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
amended by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2,
section 26, is amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

14,993,000

deleted text begin 19,010,000 deleted text end new text begin 18,316,000 new text end

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and technology
transfer account under Minnesota Statutes,
section 41A.14, subdivision 3. The transfer in
this paragraph includes money for plant
breeders at the University of Minnesota for
wild rice, potatoes, and grapes. Of these
amounts, at least $600,000 each year is for the
Minnesota Agricultural Experiment Station's
Agriculture Rapid Response Fund under
Minnesota Statutes, section 41A.14,
subdivision 1, clause (2). Of the amount
appropriated in this paragraph, $1,000,000
each year is for transfer to the Board of
Regents of the University of Minnesota for
research to determine (1) what is causing avian
influenza, (2) why some fowl are more
susceptible, and (3) prevention measures that
can be taken. Of the amount appropriated in
this paragraph, $2,000,000 each year is for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants. The
commissioner shall transfer the remaining
grant funds in this appropriation each year to
the Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation for
costs incurred to administer the program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

$10,235,000 the first year and deleted text begin $10,235,000 deleted text end new text begin
$9,541,000 new text end the second year are for the
agricultural growth, research, and innovation
program in Minnesota Statutes, section
41A.12. No later than February 1, 2016, and
February 1, 2017, the commissioner must
report to the legislative committees with
jurisdiction over agriculture policy and finance
regarding the commissioner's
accomplishments and anticipated
accomplishments in the following areas:
facilitating the start-up, modernization, or
expansion of livestock operations including
beginning and transitioning livestock
operations; developing new markets for
Minnesota farmers by providing more fruits,
vegetables, meat, grain, and dairy for
Minnesota school children; assisting
value-added agricultural businesses to begin
or expand, access new markets, or diversify
products; developing urban agriculture;
facilitating the start-up, modernization, or
expansion of other beginning and transitioning
farms including loans under Minnesota
Statutes, section 41B.056; sustainable
agriculture on farm research and
demonstration; development or expansion of
food hubs and other alternative
community-based food distribution systems;
new text begin incentive payments under Minnesota Statutes,
sections 41A.16, 41A.17, and 41A.18; new text end and
research on bioenergy, biobased content, or
biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered under
contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, 2019.

The commissioner may use funds appropriated
for the agricultural growth, research, and
innovation program as provided in this
paragraph. The commissioner may award
grants to owners of Minnesota facilities
producing bioenergy, biobased content, or a
biobased formulated product; to organizations
that provide for on-station, on-farm field scale
research and outreach to develop and test the
agronomic and economic requirements of
diverse strands of prairie plants and other
perennials for bioenergy systems; or to certain
nongovernmental entities. For the purposes of
this paragraph, "bioenergy" includes
transportation fuels derived from cellulosic
material, as well as the generation of energy
for commercial heat, industrial process heat,
or electrical power from cellulosic materials
via gasification or other processes. Grants are
limited to 50 percent of the cost of research,
technical assistance, or equipment related to
bioenergy, biobased content, or biobased
formulated product production or $500,000,
whichever is less. Grants to nongovernmental
entities for the development of business plans
and structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner shall
make a good-faith effort to select projects that
have merit and, when taken together, represent
a variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
provide certification on the technology and
fuel source. Grantees must provide reports at
the request of the commissioner.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $1,000,000 the first year and
$1,000,000 the second year are for distribution
in equal amounts to each of the state's county
fairs to preserve and promote Minnesota
agriculture.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $500,000 in fiscal year 2016
and deleted text begin $1,500,000 deleted text end new text begin $806,000 new text end in fiscal year 2017
are for incentive payments under Minnesota
Statutes, sections 41A.16, 41A.17, and
41A.18. If the appropriation exceeds the total
amount for which all producers are eligible in
a fiscal year, the balance of the appropriation
is available to the commissioner for the
agricultural growth, research, and innovation
program. Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation is
available until June 30, 2017, and the second
year appropriation is available until June 30,
2018. The commissioner may use up to 4.5
percent of the appropriation for administration
of the incentive payment programs.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $250,000 the first year is for
grants to communities to develop or expand
food hubs and other alternative
community-based food distribution systems.
Of this amount, $50,000 is for the
commissioner to consult with existing food
hubs, alternative community-based food
distribution systems, and University of
Minnesota Extension to identify best practices
for use by other Minnesota communities. No
later than December 15, 2015, the
commissioner must report to the legislative
committees with jurisdiction over agriculture
and health regarding the status of emerging
alternative community-based food distribution
systems in the state along with
recommendations to eliminate any barriers to
success. Any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. This is a onetime
appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable retail
petroleum dispensers to dispense biofuels to
the public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this paragraph if the retail petroleum
dispenser has no more than 15 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money received under
this paragraph must be used for the installation
of appropriate technology that uses fuel
dispensing equipment appropriate for at least
one fuel dispensing site to dispense gasoline
that is blended with 15 percent of
agriculturally derived, denatured ethanol, by
volume, and appropriate technical assistance
related to the installation. A grant award must
not exceed 85 percent of the cost of the
technical assistance and appropriate
technology, including remetering of and
retrofits for retail petroleum dispensers and
replacement of petroleum dispenser projects.
The commissioner may use up to $35,000 of
this appropriation for administrative expenses.
The commissioner shall cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance by
February 1 each year, detailing the number of
grants awarded under this paragraph and the
projected effect of the grant program on
meeting the biofuel replacement goals under
Minnesota Statutes, section 239.7911. These
are onetime appropriations.

$25,000 the first year and $25,000 the second
year are for grants to the Southern Minnesota
Initiative Foundation to promote local foods
through an annual event that raises public
awareness of local foods and connects local
food producers and processors with potential
buyers.

Sec. 6. new text begin APPROPRIATION CANCELLATION.
new text end

new text begin All unspent funds, estimated to be $694,000, appropriated for the agricultural growth,
research, and innovation program and designated for bioeconomy incentive payments under
Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as amended
by Laws 2016, chapter 184, section 11, and Laws 2016, chapter 189, article 2, section 26,
are canceled to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

AGRICULTURAL POLICY

Section 1.

Minnesota Statutes 2016, section 3.7371, is amended to read:

3.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.

Subdivision 1.

Authorization.

Notwithstanding section 3.736, subdivision 3, paragraph
(e), or any other law, a person who owns an agricultural crop or pasture shall be compensated
by the commissioner of agriculture for an agricultural crop, or fence surrounding the crop
or pasture, that is damaged or destroyed by elk as provided in this section.

Subd. 2.

Claim form.

The deleted text begin crop or pasture deleted text end owner must prepare a claim on forms provided
by the commissioner and available deleted text begin at deleted text end new text begin on new text end the deleted text begin county extension agent's office deleted text end new text begin Department of
Agriculture's Web site or by request from the commissioner new text end . The claim form must be filed
with the commissioner.

Subd. 3.

Compensation.

new text begin (a) new text end The crop owner is entitled to the target price or the market
price, whichever is greater, of the damaged or destroyed crop plus adjustments for yield
loss determined according to agricultural stabilization and conservation service programs
for individual farms, adjusted annually, as determined by the commissioner, upon
recommendation of the deleted text begin county extension deleted text end new text begin commissioner's approved new text end agent for the owner's
county. Verification of fence damage or destruction by elk may be provided by submitting
photographs or other evidence and documentation together with a statement from an
independent witness using forms prescribed by the commissioner. The commissioner, upon
recommendation of the new text begin commissioner's approved new text end agent, shall determine whether the crop
damage or destruction or damage to or destruction of a fence surrounding a crop or pasture
is caused by elk and, if so, the amount of the crop or fence that is damaged or destroyed. In
any fiscal year, an owner may not be compensated for a damaged or destroyed crop or fence
surrounding a crop or pasture that is less than $100 in value and may be compensated up
to $20,000, as determined under this section, if normal harvest procedures for the area are
followed.

new text begin (b) new text end In any fiscal year, the commissioner may provide compensation for claims filed
under this section up to the amount expressly appropriated for this purpose.

Subd. 4.

Insurance deduction.

Payments authorized by this section must be reduced
by amounts received by the owner as proceeds from an insurance policy covering crop
losses or damage to or destruction of a fence surrounding a crop or pasture, or from any
other source for the same purpose including, but not limited to, a federal program.

Subd. 5.

Decision on claims; opening land to hunting.

If the commissioner finds that
the deleted text begin crop or pasture deleted text end owner has shown that the damage or destruction of the owner's crop or
damage to or destruction of a fence surrounding a crop or pasture was caused more probably
than not by elk, the commissioner shall pay compensation as provided in this section and
the rules of the commissioner. deleted text begin A crop deleted text end new text begin An new text end owner who receives compensation under this
section may, by written permission, permit hunting on the land at the landowner's discretion.

Subd. 6.

Denial of claim; appeal.

(a) If the commissioner denies compensation claimed
by deleted text begin a crop or pasture deleted text end new text begin an new text end owner under this section, the commissioner shall issue a written
decision based upon the available evidence including a statement of the facts upon which
the decision is based and the conclusions on the material issues of the claim. A copy of the
decision must be mailed to the deleted text begin crop or pasture deleted text end owner.

(b) A decision denying compensation claimed under this section is not subject to the
contested case review procedures of chapter 14, but deleted text begin a crop or pasture deleted text end new text begin an new text end owner may have
the claim reviewed in a trial de novo in a court in the county where the loss occurred. The
decision of the court may be appealed as in other civil cases. Review in court may be obtained
by filing a petition for review with the administrator of the court within 60 days following
receipt of a decision under this section. Upon the filing of a petition, the administrator shall
mail a copy to the commissioner and set a time for hearing within 90 days after the filing.

Subd. 7.

Rules.

The commissioner shall adopt rules and may amend rules to carry out
this section. The commissioner may use the expedited rulemaking process in section 14.389
to adopt and amend rules authorized in this section. The rules must include:

(1) methods of valuation of crops damaged or destroyed;

(2) criteria for determination of the cause of the crop damage or destruction;

(3) notice requirements by the owner of the damaged or destroyed crop;

(4) compensation rates for fence damage or destruction that deleted text begin shall include a minimum
claim of $75.00 per incident and a maximum of deleted text end new text begin must not exceed new text end $1,800 per claimant per
fiscal year; and

(5) any other matters determined necessary by the commissioner to carry out this section.

Subd. 8.

Report.

The commissioner must submit a report to the chairs of the house of
representatives and senate committees and divisions with jurisdiction over agriculture and
environment and natural resources by December 15 each year that details the total amount
of damages paid, by elk herd, in the previous two fiscal years.

Sec. 2.

Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:

Subdivision 1.

Grants; eligibility.

(a) The commissioner must award deleted text begin cost-share deleted text end grants
to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible
tractors with eligible rollover protective structures.

new text begin (b) new text end Grants new text begin for farmers new text end are limited to 70 percent of the farmer's deleted text begin or school's deleted text end documented
cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
must increase deleted text begin the deleted text end new text begin a farmer's new text end grant award amount over the 70 percent grant limitation
requirement if necessary to limit a farmer's deleted text begin or school's deleted text end cost per tractor to no more than $500.

new text begin (c) Schools are eligible for grants that cover the full amount of a school's documented
cost to purchase, ship, and install an eligible rollover protective structure.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end A rollover protective structure is eligible if it deleted text begin meets or exceeds SAE International
deleted text end deleted text begin standard J2194 deleted text end new text begin is certified to appropriate national or international rollover protection structure
standards with a seat belt new text end .

deleted text begin (c) deleted text end new text begin (e) new text end A tractor is eligible if the tractor was built before 1987.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:

Subd. 2.

Promotion; administration.

The commissioner may spend up to deleted text begin 20 deleted text end new text begin six new text end percent
of total program dollars each fiscal year to promote and administer the program to Minnesota
farmers and schools.

Sec. 4.

Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:

Subd. 18.

Noxious weed education new text begin and notification new text end .

new text begin (a) new text end The commissioner shall
disseminate information and conduct educational campaigns with respect to control of
noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
to eliminate or manage these plants. The commissioner shall call and attend meetings and
conferences dealing with the subject of noxious weeds. The commissioner shall maintain
on the department's Web site noxious weed management information including but not
limited to the roles and responsibilities of citizens and government entities under sections
18.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious
weed issue.

new text begin (b) The commissioner shall post notice on the department's Web site and alert appropriate
media outlets when a weed on the eradicate list is confirmed for the first time in a county.
new text end

Sec. 5.

new text begin [18B.051] POLLINATOR HABITAT AND RESEARCH ACCOUNT.
new text end

new text begin A pollinator habitat and research account is established in the agricultural fund. Money
in the account, including interest, is appropriated to the Board of Regents of the University
of Minnesota for pollinator research and outreach including, but not limited to, science-based
best practices and the identification and establishment of habitat beneficial to pollinators.
new text end

Sec. 6.

Minnesota Statutes 2016, section 18B.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire without a
commercial applicator license for the appropriate use categories or a structural pest control
license.

(b) A commercial applicator licensee must have a valid license identification card to
purchase a restricted use pesticide or apply pesticides for hire and must display it upon
demand by an authorized representative of the commissioner or a law enforcement officer.
The commissioner shall prescribe the information required on the license identification
card.

new text begin (c) A person licensed under this section is not required to verify, document, or otherwise
prove a particular need prior to or following the application of a pesticide registered under
FIFRA.
new text end

Sec. 7.

Minnesota Statutes 2016, section 18B.34, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator, certified
private applicator, or licensed structural pest control applicator, a person, including a
government employee, may not purchase or use a restricted use pesticide in performance
of official duties without having a noncommercial applicator license for an appropriate use
category.

(b) A licensee must have a valid license identification card when applying pesticides
and must display it upon demand by an authorized representative of the commissioner or a
law enforcement officer. The license identification card must contain information required
by the commissioner.

new text begin (c) A person licensed under this section is not required to verify, document, or otherwise
prove a particular need prior to or following the application of a pesticide registered under
FIFRA.
new text end

Sec. 8.

Minnesota Statutes 2016, section 18B.36, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial or noncommercial
applicator, only a certified private applicator may use a restricted use pesticide to produce
an agricultural commodity:

(1) as a traditional exchange of services without financial compensation;

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer employees and the owner or
operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A person may not purchase a restricted use pesticide without presenting a license
card, certified private applicator card, or the card number.

new text begin (c) A person certified under this section is not required to verify, document, or otherwise
prove a particular need prior to or following the application of a pesticide registered under
FIFRA.
new text end

Sec. 9.

Minnesota Statutes 2016, section 41A.12, subdivision 3, is amended to read:

Subd. 3.

Oversight.

The commissioner deleted text begin , in consultation with the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over agriculture finance, deleted text end must allocate deleted text begin available deleted text end new text begin appropriated new text end funds deleted text begin among eligible uses deleted text end new text begin as
provided by law new text end , develop competitive eligibility criteria, and award funds on a needs basis.
By February 1 each year, the commissioner shall report to the legislature deleted text begin on the allocation
among eligible uses and any financial assistance provided deleted text end new text begin the outcomes achieved new text end under
this section.

Sec. 10.

Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must source
at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from
the state border, raw materials may be sourced from within a 100-mile radius. Raw materials
must be from forest resources. The facility must be located in Minnesota, must begin
production at a specific location by June 30, 2025, and must not begin operating before July
1, deleted text begin 2017 deleted text end new text begin 2019 new text end . Eligible facilities include existing companies and facilities that are adding
siding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible siding production facilities must produce at least 200,000,000 siding
square feet on a 3/8 inch nominal basis of siding each year.

(b) No payments shall be made for siding production that occurs after June 30, 2035,
for those eligible producers under paragraph (a).

(c) An eligible producer of siding shall not transfer the producer's eligibility for payments
under this section to a facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

Sec. 11.

Minnesota Statutes 2016, section 344.03, subdivision 1, is amended to read:

Subdivision 1.

Adjoining owners.

deleted text begin If all or a part of adjoining Minnesota land is improved
and used, deleted text end new text begin (a) Except as provided in paragraph (b), if two adjoining lands are both used in
whole or in part to produce or maintain livestock for agricultural or commercial purposes
new text end and one or both of the owners of the land desires the land to be partly or totally fenced, the
land owners or occupants shall build and maintain a partition fence between their lands in
equal shares.

new text begin (b) new text end The requirement in this section and the procedures in this chapter apply to the
Department of Natural Resources when it owns land adjoining privately owned land subject
to this section and chapter and the landowner desires the land permanently fenced for the
purpose of restraining livestock.

new text begin (c) For purposes of this section, "livestock" means beef cattle, dairy cattle, swine, poultry,
goats, donkeys, hinnies, mules, farmed Cervidae, Ratitae, bison, sheep, horses, alpacas, and
llamas.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to partition fences built pursuant to Minnesota Statutes, chapter 344, on or after that
date.
new text end

Sec. 12. new text begin WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.
new text end

new text begin (a) The commissioner of agriculture may award grants to livestock producers to prevent
wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to apply for
reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner
may establish a cap on the amount a recipient may receive annually.
new text end

new text begin (b) To be eligible for the grant under this section, a livestock producer must raise livestock
within Minnesota's wolf range or on property determined by the commissioner to be affected
by wolf-livestock conflicts.
new text end

new text begin (c) Eligible wolf-livestock conflict prevention activities include, but are not limited to:
new text end

new text begin (1) the purchase of guard animals;
new text end

new text begin (2) veterinary costs for guard animals;
new text end

new text begin (3) the installation of wolf barriers; wolf barriers may include pens, fladry, and fencing;
new text end

new text begin (4) the installation of wolf-deterring lights and alarms; and
new text end

new text begin (5) calving or lambing shelters.
new text end

new text begin (d) Eligible grant recipients must:
new text end

new text begin (1) make a good-faith effort to avoid wolf-livestock conflicts;
new text end

new text begin (2) make a good-faith effort to care for guard animals paid for under this section;
new text end

new text begin (3) retain proper documentation of expenses;
new text end

new text begin (4) report annually to the commissioner on the effectiveness of the nonlethal methods
employed; and
new text end

new text begin (5) allow follow-up evaluation and monitoring by the commissioner.
new text end

new text begin (e) Grant recipients shall continue to be eligible for depredation payments under
Minnesota Statutes, section 3.737.
new text end

Sec. 13. new text begin BASE BUDGET REPORT REQUIRED.
new text end

new text begin No later than October 15, 2018, the commissioner of agriculture must submit a report
detailing the agency's base budget, including any prior appropriation riders, to the chairs
and ranking minority members of the legislative committees with jurisdiction over agriculture
finance.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 41A.20, subdivision 6; and 383C.809, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: SF0780-4

41A.20 SIDING PRODUCTION INCENTIVE.

Subd. 6.

Appropriation.

A sum sufficient to make the payments required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the general fund to the commissioner.

383C.809 ST. LOUIS COUNTY; PARTITION FENCE CONTROVERSIES.

Notwithstanding chapter 344, when an owner or occupant of land in St. Louis County applies to the fence viewers for settlement of a partition fence controversy under chapter 344, the fence viewers shall not require an owner or occupant who can establish to the fence viewers that the establishing owner or occupant has no need for a fence to pay any share of the cost of construction or maintenance of the fence. If an owner or occupant is exempt from payment of any of the costs of a partition fence because the owner or occupant does not need the fence, but that owner's or occupant's circumstances change to include the need for a partition fence within seven years of completion of the partition fence, either owner or occupant may request the fence viewers to perform a reevaluation and reassignment of shares of the cost of construction and maintenance in accordance with section 344.06. If the landowners or occupants disagree about the need for a fence, it is a controversy under that section. A decision by the fence viewers of a controversy relating to a partition fence may include an assignment of shares of the cost of construction, repair, or maintenance of a partition fence in accordance with the need and benefit of each party. Except as provided in this section, all other controversies relating to partition fences shall conform to chapter 344.