1.1 	A bill for an act
1.2 	relating to agriculture; appropriating money for grants to Second Harvest Heartland; 
1.3 	requiring reports.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. APPROPRIATION.
 1.6 	(a) $2,650,000 in fiscal year 2020 and $2,650,000 in fiscal year 2021 are appropriated 
1.7 	from the general fund to the commissioner of agriculture for grants to Second Harvest 
1.8 	Heartland on behalf of Minnesota's six Feeding America food banks for the following:
1.9 	(1) to purchase milk for distribution to Minnesota's food shelves and other charitable 
1.10 	organizations that are eligible to receive food from the food banks. Milk purchased under 
1.11 	the grants must be acquired from Minnesota milk processors and based on low-cost bids. 
1.12 	The milk must be allocated to each Feeding America food bank serving Minnesota according 
1.13 	to the formula used in the distribution of United States Department of Agriculture 
1.14 	commodities under The Emergency Food Assistance Program. Second Harvest Heartland 
1.15 	may enter into contracts or agreements with food banks for shared funding or reimbursement 
1.16 	of the direct purchase of milk. Each food bank that receives funding under this paragraph 
1.17 	may use up to two percent for administrative expenses; and
1.18 	(2) to compensate agricultural producers and processors for costs incurred to harvest 
1.19 	and package for transfer surplus fruits, vegetables, and other agricultural commodities that 
1.20 	would otherwise go unharvested, be discarded, or sold in a secondary market. Surplus 
1.21 	commodities must be distributed statewide to food shelves and other charitable organizations 
1.22 	that are eligible to receive food from the food banks. Surplus food acquired under this 
1.23 	paragraph must be from Minnesota producers and processors. Second Harvest Heartland 
2.1 	may use up to 15 percent of each grant awarded under this paragraph to match administrative 
2.2 	and transportation expenses.
2.3 	(b) Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered fiscal year 
2.4 	2020 balance does not cancel and is available in fiscal year 2021. Second Harvest Heartland 
2.5 	must submit quarterly reports to the commissioner in the form prescribed by the 
2.6 	commissioner. The reports must include but are not limited to information on the expenditure 
2.7 	of funds, the amount of milk or other commodities purchased, and the organizations to 
2.8 	which this food was distributed.