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Minnesota Legislature

Office of the Revisor of Statutes

HF 895

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 03/31/2017 10:22am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to agriculture; appropriating money for agriculture-related purposes;
making policy and technical changes to agriculture-related provisions; authorizing
a transfer, a working group, and accounts; modifying certificate fees; requiring
reports;amending Minnesota Statutes 2016, sections 3.7371; 17.119, subdivisions
1, 2; 18.79, subdivision 18; 28A.081; 41A.12, subdivision 3; Laws 2015, First
Special Session chapter 4, article 1, section 2, subdivision 4, as amended; proposing
coding for new law in Minnesota Statutes, chapters 17; 18B.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. new text beginAGRICULTURE 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 beginDEPARTMENT 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 48,056,000
new text end
new text begin $
new text end
new text begin 47,910,000
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 47,663,000
new text end
new text begin 47,513,000
new text end
new text begin Remediation
new text end
new text begin 393,000
new text end
new text begin 397,000
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 17,471,000
new text end
new text begin 17,475,000
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 17,078,000
new text end
new text begin 17,078,000
new text end
new text begin Remediation
new text end
new text begin 393,000
new text end
new text begin 397,000
new text end

new text begin $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 $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.
new text end

new text begin $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 $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 $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 $75,000 the first year and $75,000 the second
year are to coordinate the correctional facility
vocational training pilot 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 $393,000 the first year and $397,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.
new text end

new text begin $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 $125,000 the first year and $125,000 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 $70,000 the first year and $70,000 the second
year are for additional cannery inspections.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for increased oversight of
delegated local health boards.
new text end

new text begin $100,000 the first year and $100,000 the
second year are to decrease the turnaround
time for retail food handler plan reviews.
new text end

new text begin $1,024,000 the first year and $1,024,000 the
second year are to streamline the retail food
safety regulatory and licensing experience for
regulated businesses and to decrease the
inspection delinquency rate.
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 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 $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 $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 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 18,989,000
new text end
new text begin 18,989,000
new text end

new text begin $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 and grants to
coordinate Farm Business Management and
dairy development, profitability enhancement,
and business planning; up to $350,000 the first
year and up to $350,000 the second year are
for potato breeding; and up to $350,000 the
first year and up to $350,000 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 the first
year and up to $1,000,000 the second year are
for research to determine:
new text end

new text begin (1) what is causing avian influenza;
new text end

new text begin (2) why some fowl are more susceptible; and
new text end

new text begin (3) 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 $9,664,000 the first year and $9,664,000 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, 2022. The
base for fiscal year 2020 is $10,068,000 and
the base for fiscal year 2021 is $10,068,000.
new text end

new text begin 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.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $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 Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $500,000 the first year is for
a grant to the Board of Trustees of the
Minnesota State Colleges and Universities to
renovate the GROW-IT Center at Metropolitan
State University.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, up to $500,000 the first year
and up to $500,000 the second year are for
urban youth agricultural education and urban
agriculture community development, in
consultation with urban agriculture
stakeholders.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, up to $250,000 the first year
and up to $250,000 the second year are for
transfer to the good food access account in the
agricultural fund for the good food access
program.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, up to $40,000 the first year
and up to $40,000 the second year are to
increase compensation for farm advocates and
expand the farm advocates program by
supplementing the base farm advocates
program appropriation in subdivision 5.
new text end

new text begin $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 7,600,000
new text end
new text begin 7,450,000
new text end

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

new text begin $180,000 the first year and $180,000 the
second year are for the farm advocates
program.
new text end

new text begin $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 $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 $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 $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 $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 $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.
new text end

new text begin $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 $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 $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 $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 $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 $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. The base for fiscal year 2020 is $0.
new text end

Sec. 3. new text beginBOARD OF ANIMAL HEALTH
new text end

new text begin $
new text end
new text begin 5,443,000
new text end
new text begin $
new text end
new text begin 5,491,000
new text end

Sec. 4. new text beginAGRICULTURAL 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$10,235,000deleted text endnew 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 endand
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$1,500,000deleted text endnew text begin $806,000new 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 beginBASE 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. 7. new text beginTRANSFER REQUIRED.
new text end

new text begin Of the amount appropriated from the general fund for transfer to the agricultural
emergency account in Laws 2016, chapter 189, article 2, section 2, the commissioner of
management and budget must transfer $450,000 back to the general fund on July 1, 2017.
This is a onetime transfer.
new text end

Sec. 8. new text beginAPPROPRIATION 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 begincrop or pasturedeleted text end owner must prepare a claim on forms provided
by the commissioner and available deleted text beginatdeleted text endnew text begin onnew text end the deleted text begincounty extension agent's officedeleted text endnew 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 endThe 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 begincounty extensiondeleted text end new text begincommissioner's approved new text endagent 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 begincommissioner's approved new text endagent, 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 endIn 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 begincrop or pasturedeleted 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 beginA cropdeleted text endnew text begin Annew 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 begina crop or pasturedeleted text end new text beginan new text endowner 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 begincrop or pasturedeleted 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 begina crop or pasturedeleted text endnew text begin annew 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 beginshall include a minimum
claim of $75.00 per incident and a maximum of
deleted text endnew text begin must not exceednew 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.

new text begin [17.112] FARM SAFETY WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Farm Safety Working Group is established to advise
the commissioner and the legislature on farm safety issues and to perform the other duties
specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Membership; appointments; compensation. new text end

new text begin (a) The Farm Safety Working
Group consists of:
new text end

new text begin (1) the commissioner of agriculture or the commissioner's designee, who must serve as
the chair;
new text end

new text begin (2) the commissioner of health or the commissioner's designee;
new text end

new text begin (3) the commissioner of labor and industry or the commissioner's designee;
new text end

new text begin (4) a representative of the Minnesota State Colleges and Universities;
new text end

new text begin (5) a representative of University of Minnesota Extension;
new text end

new text begin (6) a representative of the University of Minnesota's Upper Midwest Agricultural Safety
and Health Center;
new text end

new text begin (7) a representative of the Minnesota Farm Bureau;
new text end

new text begin (8) a representative of the Minnesota Farmers Union;
new text end

new text begin (9) a representative of the Minnesota Safety Council;
new text end

new text begin (10) a representative of the Minnesota-South Dakota Equipment Dealers Association;
new text end

new text begin (11) a representative of the Minnesota Agriculture Education Leadership Council;
new text end

new text begin (12) a representative of the Minnesota Council on Latino Affairs;
new text end

new text begin (13) a representative of the Latino Economic Development Center; and
new text end

new text begin (14) three citizen members appointed by the commissioner.
new text end

new text begin (b) Members in paragraph (a), clauses (4) to (13), must be appointed by the specified
organization and serve at the pleasure of the organization. Members appointed by the
commissioner serve two-year terms.
new text end

new text begin (c) Members must serve without compensation.
new text end

new text begin Subd. 3. new text end

new text begin Meetings; staff. new text end

new text begin The commissioner must convene meetings as appropriate and
provide staff to support the working group.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The working group must serve as a forum to discuss farm safety issues
and organize a collective effort to improve farm safety in this state. The working group also
must:
new text end

new text begin (1) coordinate the work and resources of member organizations;
new text end

new text begin (2) monitor the impact of farm safety initiatives in Minnesota;
new text end

new text begin (3) explore the feasibility and desirability of creating a farm safety certification program
to recognize farmers who participate in safety programs and meet safety standards, and
identify appropriate financial incentives for participating farmers; and
new text end

new text begin (4) increase farmer awareness of the state's workplace safety consultation program.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2021.
new text end

Sec. 3.

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


Subdivision 1.

Grants; eligibility.

(a) The commissioner must award deleted text begincost-sharedeleted 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 beginfor farmers new text endare limited to 70 percent of the farmer's deleted text beginor school'sdeleted text end documented
cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
must increase deleted text beginthedeleted text endnew text begin a farmer'snew text end grant award amount over the 70 percent grant limitation
requirement if necessary to limit a farmer's deleted text beginor school'sdeleted 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 endnew text begin (d)new text end A rollover protective structure is eligible if it deleted text beginmeets or exceeds SAE International
standard J2194
deleted text endnew 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 endnew 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. 4.

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


Subd. 2.

Promotion; administration.

The commissioner may spend up to deleted text begin20deleted text endnew text begin sixnew text end percent
of total program dollars each fiscal year to promote and administer the program to Minnesota
farmers and schools.

Sec. 5.

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


Subd. 18.

Noxious weed educationnew text begin and notificationnew text end.

new text begin(a) new text endThe 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 of Agriculture'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. 6.

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. 7.

Minnesota Statutes 2016, section 28A.081, is amended to read:


28A.081 CERTIFICATE FEES.

new text begin Subdivision 1. new text end

new text begin Fee. new text end

A fee of deleted text begin$75deleted text endnew text begin $125new text end for each certificate shall be charged to deleted text beginall food
establishments that request certificates
deleted text endnew text begin any person who requests a certificatenew text end issued by the
Minnesota Department of Agriculture to facilitate the movement of Minnesota processed
and manufactured foods destined for export from the state of Minnesota. Certificates include,
but are not limited to, a certificate of free sale, certificate of export, certificate of sanitation,
sanitary certificate, certificate of origin and/or free sale, certificate of health and/or free
sale, sanitation, and purity, certificate of free trade, certificate of free sale, sanitation, purity,
and origin, certificate of health, sanitation, purity, and free sale, and letter of plant
certification.

The commissioner shall bill deleted text begina food establishmentdeleted text endnew text begin the requesting personnew text end within seven
days after issuing a certificate to the deleted text beginestablishmentdeleted text endnew text begin personnew text end. The deleted text beginoperator of the food
establishment
deleted text endnew text begin requesting personnew text end must submit payment for a certificate within ten days of
the billing date. If a certificate fee payment is not received within 15 days of the billing
date, the commissioner may not issue any future certificates new text beginto the requesting person new text enduntil
previous fees due are paid in full.new text begin Fees paid under this section must be deposited in the food
certificate account established under subdivision 2 or another account in the agricultural
fund if the expenses for the certificate will be paid from that other account.
new text end

new text begin Subd. 2. new text end

new text begin Food certificate account; appropriation. new text end

new text begin A food certificate account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner for expenses relating to certifying Minnesota processed and
manufactured foods under chapters 28 to 34A or rules adopted under one of those chapters.
new text end

Sec. 8.

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


Subd. 3.

Oversight.

The commissionerdeleted 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 beginavailabledeleted text endnew text begin appropriatednew text end funds deleted text beginamong eligible usesdeleted text endnew 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 beginon the allocation
among eligible uses and any financial assistance provided
deleted text endnew text begin the outcomes achieved new text endunder
this section.