HF 1122

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:44am

A bill for an act
relating to appropriations; appropriating money for agriculture, the Board of
Animal Health, veterans, and the military; changing certain agricultural and
animal health requirements and programs; establishing a program; eliminating
a sunset; amending Minnesota Statutes 2008, sections 3.737, subdivision
1; 3.7371, subdivision 3; 17.03, subdivision 12; 18B.01, subdivision 8,
by adding subdivisions; 18B.065, subdivision 2a, by adding subdivisions;
18B.26, subdivision 3; 18E.03, subdivision 2; 28A.085, subdivision 1; 32.394,
subdivision 8; 41A.09, subdivisions 2a, 3a; 197.585, subdivision 5; proposing
coding for new law in Minnesota Statutes, chapters 18B; 41A; repealing
Minnesota Statutes 2008, sections 17.49, subdivision 3; 38.02, subdivisions 3, 4.

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

ARTICLE 1

AGRICULTURE

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 45,656,000 new text end	new text begin $ new text end	new text begin 45,656,000 new text end	new text begin $ new text end	new text begin 91,312,000 new text end
new text begin Clean Water new text end	new text begin $ new text end	new text begin 3,075,000 new text end	new text begin $ new text end	new text begin 5,850,000 new text end	new text begin $ new text end	new text begin 8,925,000 new text end
new text begin Remediation new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 776,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 49,119,000 new text end	new text begin $ new text end	new text begin 51,894,000 new text end	new text begin $ new text end	new text begin 101,013,000 new text end

Sec. 2. 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 act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2010" and "2011" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011,
respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011.
"The biennium" is fiscal years 2010 and 2011.
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 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin $ new text end

new text begin 42,413,000 new text end

new text begin $ new text end

new text begin 45,188,000 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 42,413,000 new text end

new text begin $ new text end

new text begin 45,188,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin 38,950,000 new text end	new text begin 38,950,000 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 Clean Water new text end	new text begin 3,075,000 new text end	new text begin 5,850,000 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 14,503,000 new text end

new text begin 15,778,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,540,000 new text end	new text begin 12,540,000 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 Clean Water new text end	new text begin 1,575,000 new text end	new text begin 2,850,000 new text end

new text begin $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 $325,000 the first year and $350,000 the
second year are from the clean water fund
to increase monitoring for pesticides and
pesticide degradates in surface water and
groundwater and to use data collected to
assess pesticide use practices.
new text end

new text begin $375,000 the first year and $750,000 the
second year are from the clean water fund
to increase drinking water protection from
agricultural chemicals, primarily nitrates.
new text end

new text begin $875,000 the first year and $1,750,000 the
second year are from the clean water fund
for research, pilot projects, and technical
assistance related to ways agricultural
practices can contribute to restoring impaired
waters.
new text end

new text begin $75,000 the first year and $75,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statutes,
section 3.737. 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 $75,000 the first year and $75,000 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.
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 Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 6,255,000 new text end

new text begin 7,755,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,755,000 new text end	new text begin 4,755,000 new text end
new text begin Clean Water new text end	new text begin 1,500,000 new text end	new text begin 3,000,000 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, 2011, for Minnesota grown
grants in this paragraph are available until
June 30, 2013. $50,000 of the appropriation
in each year is for efforts that identify
and promote Minnesota grown products in
retail food establishments including but not
limited to restaurants, grocery stores, and
convenience stores.
new text end

new text begin $60,000 the first year and $60,000 the
second year are for grants to farmers for
demonstration projects involving sustainable
agriculture as authorized in Minnesota
Statutes, section 17.116. Of the amount
for grants, up to $20,000 may be used for
dissemination of information about the
demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2011, for sustainable
agriculture grants in this paragraph are
available until June 30, 2013.
new text end

new text begin $100,000 the first year and $100,000 the
second year are to provide training and
technical assistance to county and town
officials relating to livestock siting issues
and local zoning and land use planning,
including maintenance of the checklist
template clarifying the federal, state,
and local government requirements for
consideration of an animal agriculture
modernization or expansion project. For the
training and technical assistance program,
the commissioner shall continue to seek
guidance, advice, and support of livestock
producer organizations, general agricultural
organizations, local government associations,
academic institutions, other government
agencies, and others with expertise in land
use and agriculture.
new text end

new text begin $1,500,000 the first year and $3,000,000 the
second year are from the clean water fund for
the agricultural best management practices
loan program. At least $1,450,000 the first
year and at least $2,900,000 the second
year is for transfer to the agricultural best
management practices loan account created
pursuant to Minnesota Statutes, section
17.117, subdivision 5a, and is available
for pass-through to local governments and
lenders for low-interest loans.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for annual cost-share
payments to resident farmers or persons
who sell, process, or package agricultural
products in this state for the costs of organic
certification. Annual cost-share payments
per farmer must be two-thirds of the cost
of the certification or $350, whichever is
less. In any year that a resident farmer or
person who sells, processes, or packages
agricultural products in this state receives
a federal organic certification cost-share
payment, that resident farmer or person is
not eligible for state cost-share payments.
A certified farmer is eligible to receive
annual certification cost-share payments for
up to five years. $15,000 each year is for
organic market and program development.
The commissioner may allocate any excess
appropriation in either fiscal year for organic
producer education efforts, assistance for
persons transitioning from conventional
to organic agriculture, or sustainable
agriculture demonstration grants authorized
under Minnesota Statutes, section 17.166,
and pertaining to organic research or
demonstration. 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 Subd. 4. new text end new text begin Bioenergy and Value-Added Agriculture new text end

new text begin 15,168,000 new text end

new text begin 15,168,000 new text end

new text begin $15,168,000 the first year and $15,168,000
the second year are for ethanol producer
payments under Minnesota Statutes, section
41A.09. If the total amount for which
all producers are eligible in a quarter
exceeds the amount available for payments,
the commissioner shall make payments
on a pro rata basis. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year for
scheduled payments and for deficiencies
in payments during previous fiscal years,
the balance in the appropriation is available
to the commissioner to provide financial
assistance under the 21st century agricultural
reinvestment program in Minnesota Statutes,
section 41A.12. The appropriation remains
available until spent.
new text end

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

new text begin 6,487,000 new text end

new text begin 6,487,000 new text end

new text begin $500,000 the first year and $500,000
the second year are for the 21st century
agricultural reinvestment program in new
Minnesota Statutes, section 41A.12. Priority
must be given to livestock programs under
Minnesota Statutes, section 17.118. The
commissioner may use up to 4-1/2 percent
of this appropriation for costs incurred to
administer the program.
new text end

new text begin $505,000 the first year and $505,000 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
work plan detailing plans for expenditures
under this program to the chairs of the house
of representatives and senate committees
dealing with agricultural policy and budget
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.
new text end

new text begin $50,000 the first year and $50,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.
new text end

new text begin $19,000 the first year and $19,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
new text end

new text begin $250,000 the first year and $250,000 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 $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. Of this amount, $4,000 each
year is for 4-H premiums. Aid payments to
county and district agricultural societies and
associations shall be disbursed not 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 $65,000 the first year and $65,000 the second
year are for annual grants to the Minnesota
Turf Seed Council for basic and applied
research on the improved production of
forage and turf seed related to new and
improved varieties. The grant recipient may
subcontract with a qualified third party for
some or all of the basic and applied research.
new text end

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest 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 Second Harvest 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.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for mental health counseling
support to farm families and business
operators through farm business management
programs at Central Lakes College and
Ridgewater College.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Horticultural Society.
new text end

Sec. 4. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 5,156,000 new text end

new text begin $ new text end

new text begin 5,156,000 new text end

new text begin $2,531,000 the first year and $2,531,000
the second year are for bovine tuberculosis
eradication efforts in cattle herds.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for a program to control
paratuberculosis (Johne's disease) in
domestic bovine herds.
new text end

new text begin $40,000 the first year and $40,000 the second
year are for a program to investigate the
avian pneumovirus disease and to identify
the infected flocks. This appropriation must
be matched on a dollar-for-dollar or in-kind
basis with nonstate sources and is in addition
to money currently designated for turkey
disease research. Costs of blood sample
collection, handling, and transportation,
in addition to costs associated with early
diagnosis tests and the expenses of vaccine
research trials, may be credited to the match.
new text end

new text begin $400,000 the first year and $400,000 the
second year are for the purposes of cervidae
inspection as authorized in Minnesota
Statutes, section 35.155.
new text end

Sec. 5. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 1,550,000 new text end

new text begin $ new text end

new text begin 1,550,000 new text end

new text begin $350,000 the first year and $350,000 the
second year are for technical assistance
and technology transfer to bioenergy crop
producers and users.
new text end

Sec. 6.

Minnesota Statutes 2008, section 3.737, subdivision 1, is amended to read:

Subdivision 1.

Compensation required.

(a) Notwithstanding section 3.736,
subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated
by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is so
crippled by a gray wolf that it must be destroyed. Except as provided in this section, the
owner is entitled to the fair market value of the destroyed livestock as determined by the
commissioner, upon recommendation of a university extension agent or a conservation
officer. In any fiscal year, a livestock owner may not be compensated for a destroyed
animal claim that is less than $100 in value and may be compensated up to $20,000,
as determined under this section. In any fiscal year, the commissioner may provide
compensation for claims filed under this section deleted text begin and section 3.7371 deleted text end up to deleted text begin a total of
$100,000 for both programs combined deleted text end new text begin the amount expressly appropriated for this purpose new text end .

(b) Either the agent or the conservation officer must make a personal inspection of
the site. The agent or the conservation officer must take into account factors in addition to
a visual identification of a carcass when making a recommendation to the commissioner.
The commissioner, upon recommendation of the agent or conservation officer, shall
determine whether the livestock was destroyed by a gray wolf and any deficiencies in the
owner's adoption of the best management practices developed in subdivision 5. The
commissioner may authorize payment of claims only if the agent or the conservation
officer has recommended payment. The owner shall file a claim on forms provided by the
commissioner and available at the university extension agent's office.

Sec. 7.

Minnesota Statutes 2008, section 3.7371, subdivision 3, is amended to read:

Subd. 3.

Compensation.

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 county extension agent for the owner's county. The
commissioner, upon recommendation of the agent, shall determine whether the crop
damage or destruction is caused by elk and, if so, the amount of the crop that is damaged
or destroyed. In any fiscal year, a crop owner may not be compensated for a damaged or
destroyed crop 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.
In any fiscal year, the commissioner may provide compensation for claims filed under
this section deleted text begin and section 3.737 deleted text end up to deleted text begin a total of $100,000 for both programs combined deleted text end new text begin the
amount expressly appropriated for this purpose new text end .

Sec. 8.

Minnesota Statutes 2008, section 17.03, subdivision 12, is amended to read:

Subd. 12.

Contracts; appropriation.

The commissioner may accept money as part
of a contract with any public or private entity to provide statutorily prescribed services by
the department. A contract must specify the services to be provided by the department and
the amount and method of reimbursement. Money generated in a contractual agreement
under this section must be deposited in a special revenue fund and is appropriated to the
department for purposes of providing services specified in the contracts. Contracts under
this section must be processed in accordance with section 16C.05. deleted text begin The commissioner must
report revenues collected and expenditures made under this section to the chairs of the
Environment and Natural Resources Finance Committee in the house of representatives
and the Environment and Agriculture Budget Division in the senate by January 15 of
each odd-numbered year. deleted text end

Sec. 9.

Minnesota Statutes 2008, section 18B.01, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Agricultural pesticide. new text end

new text begin "Agricultural pesticide" means a pesticide
that bears labeling that meets federal worker protection agricultural use requirements
established in Code of Federal Regulations, title 40, parts 156 and 170.
new text end

Sec. 10.

Minnesota Statutes 2008, section 18B.01, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Agricultural pesticide dealer. new text end

new text begin "Agricultural pesticide dealer" means a
person who distributes an agricultural pesticide to an end user.
new text end

Sec. 11.

Minnesota Statutes 2008, section 18B.01, subdivision 8, is amended to read:

Subd. 8.

Distribute.

"Distribute" means offer for sale, sell, barter, ship, deliver for
shipment, receive and deliver, and offer to deliver pesticides in this state new text begin or into this state new text end .

Sec. 12.

Minnesota Statutes 2008, section 18B.01, is amended by adding a subdivision
to read:

new text begin Subd. 14b. new text end

new text begin Nonagricultural pesticide. new text end

new text begin "Nonagricultural pesticide" means a
pesticide that does not bear labeling that meets federal worker protection agricultural use
requirements established in Code of Federal Regulations, title 40, parts 156 and 170.
new text end

Sec. 13.

Minnesota Statutes 2008, section 18B.065, subdivision 2a, is amended to read:

Subd. 2a.

Disposal site requirement.

(a) For agricultural waste deleted text begin pesticides deleted text end new text begin pesticide
collections new text end , the commissioner must designate a place in each county of the state that is
available at least every year for persons to dispose of unused portions of agricultural
pesticides. The commissioner shall consult with the person responsible for solid waste
management and disposal in each county to determine an appropriate location and to
advertise each collection event.

(b) For residential waste deleted text begin pesticides deleted text end new text begin pesticide collections new text end , the commissioner must
provide periodic disposal opportunities each year in each county. As provided under
subdivision 7, the commissioner may enter into agreements with county or regional solid
waste management entities to provide these collections and shall provide these entities
with funding new text begin from the nonagricultural waste pesticide account according to subdivision
10. Reimbursement shall be made new text end for reasonable costs incurred including, but not limited
to, related supplies, transportation, advertising, and disposal costs as well as reasonable
overhead costs.

(c) A person who collects waste pesticide under paragraph (a) or (b) shall record
information on each waste pesticide product collected including, but not limited to,
the product name, active ingredient or ingredients, quantity, and the United States
Environmental Protection Agency registration number, on a form provided by the
commissioner. The person must submit this information to the commissioner at least
annually.

new text begin (d) No disposal site shall turn away a waste pesticide because it is not agricultural or
not residential.
new text end

Sec. 14.

Minnesota Statutes 2008, section 18B.065, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Account established; appropriation. new text end

new text begin A nonagricultural waste pesticide
account is created in the agricultural fund. Notwithstanding section 18B.05, the proceeds
of the surcharge imposed by this subdivision must be deposited in the agricultural fund
and credited to the nonagricultural waste pesticide account. Money in the account,
including interest, is appropriated to the commissioner for waste pesticide collection
costs pursuant to subdivision 10 and for the administrative costs of nonagricultural waste
pesticide activities.
new text end

Sec. 15.

Minnesota Statutes 2008, section 18B.065, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Nonagricultural surcharge. new text end

new text begin (a) A nonagricultural waste pesticide
surcharge shall be collected by the commissioner on nonagricultural pesticides registered
under chapter 18B. The amount of the surcharge must be determined by the commissioner
in order that:
new text end

new text begin (1) the amounts needed to recover the costs authorized in this subdivision are
recovered; and
new text end

new text begin (2) the unencumbered balance in the nonagricultural waste pesticide account is at
least $400,000 but does not exceed $1,500,000.
new text end

new text begin (b) The commissioner shall impose an initial surcharge, to be collected as a
surcharge on the registration application fee under section 18B.26, subdivision 3, and
equal to 0.6 percent of annual gross sales of the pesticide in the state and sales of the
pesticide for use in the state during the previous calendar year. No surcharge is imposed
if the surcharge amount based on percent of annual gross sales is less than $10. The
registrant shall determine the kind, quantity, and value of pesticides sold, or sold for use,
in the state. The registrant shall secure sufficient sales information of pesticides distributed
in and into the state from distributors, dealers, and retailers, regardless of location, to
make such determinations. Sales of pesticides into the state by out-of-state distributors or
other persons are not exempt and must be included in the registrant's annual report, as
required under section 18B.26, subdivision 3, paragraph (c). Surcharges shall be paid by
the registrant based upon the reported sales. Sales of pesticides in the state for use outside
of the state are exempt from the surcharge in this subdivision if the registrant properly
documents the sale location and the distributors.
new text end

Sec. 16.

Minnesota Statutes 2008, section 18B.065, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Reimbursement of costs. new text end

new text begin (a) The commissioner shall reimburse or pay
on behalf of a governmental unit with a waste pesticide program for the costs incurred
collecting waste pesticides providing:
new text end

new text begin (1) the governmental unit has a signed and approved waste pesticide collection
cooperative agreement;
new text end

new text begin (2) costs are directly attributable to waste pesticide collection activities as
determined by the commissioner; and
new text end

new text begin (3) costs are adequately documented, reasonable, and necessary, as determined by
the commissioner.
new text end

new text begin (b) If expenditure projections indicate the unencumbered balance of the
nonagricultural waste pesticide account will drop below $400,000, the commissioner may
prorate payments under this subdivision, with the balance of those payments made once
sufficient money is available in the account.
new text end

Sec. 17.

Minnesota Statutes 2008, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Application fee.

(a) A registrant shall pay an annual application fee for
each pesticide to be registered, and this fee is set at deleted text begin 0.4 deleted text end new text begin 0.6 new text end percent of annual gross sales
within the state and annual gross sales of pesticides used in the state, with a minimum
nonrefundable fee of new text begin $350 for a nonagricultural pesticide and new text end $250 new text begin for all other pesticides new text end .
The registrant shall determine when and which pesticides are sold or used in this state. The
registrant shall secure sufficient sales information of pesticides distributed into this state
from distributors and dealers, regardless of distributor location, to make a determination.
Sales of pesticides in this state and sales of pesticides for use in this state by out-of-state
distributors are not exempt and must be included in the registrant's annual report, as
required under paragraph (c), and fees shall be paid by the registrant based upon those
reported sales. Sales of pesticides in the state for use outside of the state are exempt
from the application fee in this paragraph if the registrant properly documents the sale
location and distributors. A registrant paying more than the minimum fee shall pay the
balance due by March 1 based on the gross sales of the pesticide by the registrant for the
preceding calendar year. The fee for disinfectants and sanitizers shall be the minimum.
The minimum fee is due by December 31 preceding the year for which the application for
registration is made. In each fiscal year, the commissioner shall allocate from the pesticide
regulatory account a sum sufficient to collect and dispose of waste pesticides under section
18B.065. However, notwithstanding section 18B.065, if the commissioner determines
that the balance in the pesticide regulatory account at the end of the fiscal year will be
less than $500,000, the commissioner may suspend waste pesticide collections or provide
partial payment to a person for waste pesticide collection. The commissioner must notify
as soon as possible and no later than August 1 a person under contract to collect waste
pesticides of an anticipated suspension or payment reduction.

(b) An additional fee of $100 must be paid by the applicant for each pesticide to be
registered if the application is a renewal application that is submitted after December 31.

(c) A registrant must annually report to the commissioner the amount and type of
each registered pesticide sold, offered for sale, or otherwise distributed in the state. The
report shall be filed by March 1 for the previous year's registration. The commissioner
shall specify the form of the report and require additional information deemed necessary
to determine the amount and type of pesticides annually distributed in the state. The
information required shall include the brand name, amount, and formulation of each
pesticide sold, offered for sale, or otherwise distributed in the state, but the information
collected, if made public, shall be reported in a manner which does not identify a specific
brand name in the report.

(d) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

Sec. 18.

new text begin [18B.311] AGRICULTURAL PESTICIDE DEALER LICENSE AND
REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin (a) A person must not distribute an agricultural
pesticide into the state without first having obtained an agricultural pesticide dealer license.
new text end

new text begin (b) Each location or place of business from which an agricultural pesticide is
distributed into the state is required to have a separate agricultural pesticide dealer license.
new text end

new text begin (c) A person who is a licensed pesticide dealer under section 18B.31, who operates
from a location or place of business outside of the state, and who distributes an agricultural
pesticide into the state is not required to also be licensed under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Exemption. new text end

new text begin A person who is a pesticide registrant under this chapter is
exempt from the requirement of subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Resident agent. new text end

new text begin (a) A person required to be licensed under subdivision 1,
or a person licensed as a pesticide dealer pursuant to section 18B.31, and who operates
from a location or place of business outside the state and who distributes an agricultural
pesticide into the state, must continuously maintain in this state both of the following:
new text end

new text begin (1) a registered office; and
new text end

new text begin (2) a resident agent, which agent may be either a person resident in this state
whose business office or residence is identical with the registered office, a domestic
corporation or limited liability company, or a foreign corporation or limited liability
company authorized to transact business in this state and having a business office identical
with the registered office.
new text end

new text begin (b) A person licensed under subdivision 1 shall annually file with the commissioner
the name, address, telephone number, and e-mail address of the licensee's resident agent.
new text end

new text begin Subd. 4. new text end

new text begin Responsibility. new text end

new text begin The resident agent is responsible for the acts of a licensed
agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31, who
operates from a location or place of business outside the state and who distributes an
agricultural pesticide into the state.
new text end

new text begin Subd. 5. new text end

new text begin License. new text end

new text begin An agricultural pesticide dealer license:
new text end

new text begin (1) is issued annually upon initial or renewal application;
new text end

new text begin (2) expires on December 31 of each year unless it is suspended or revoked before
that date;
new text end

new text begin (3) is not transferable from one location or place of business to another location
or place of business; and
new text end

new text begin (4) must be prominently displayed to the public in the agricultural pesticide dealer's
place of business and in the registered office of the resident agent.
new text end

new text begin Subd. 6. new text end

new text begin Report to registrants. new text end

new text begin An agricultural pesticide dealer, and a licensed
pesticide dealer under section 18B.31, who operates from a location or place of business
outside of the state and who distributes an agricultural pesticide into the state, shall no
later than January 15 of each year report to the agricultural pesticide registrant for each
agricultural pesticide distributed into the state all of the following information concerning
that distribution:
new text end

new text begin (1) product name;
new text end

new text begin (2) EPA registration number;
new text end

new text begin (3) amount of pesticide sold or distributed;
new text end

new text begin (4) wholesale value of pesticide sold or distributed;
new text end

new text begin (5) date of sale or distribution;
new text end

new text begin (6) sales or distribution invoice number; and
new text end

new text begin (7) name and address of consignee.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin (a) A person must apply to the commissioner for
an agricultural pesticide dealer license on forms and in a manner required by the
commissioner.
new text end

new text begin (b) The applicant must be the person in charge of each location or place of business
from which agricultural pesticides are distributed into this state.
new text end

new text begin (c) The commissioner may require that the application provide information
regarding the applicant's proposed operations and other information considered pertinent
by the commissioner.
new text end

new text begin (d) The commissioner may require additional demonstration of licensee qualification
if the licensee has had a license suspended or revoked, or has otherwise had a history of
violations of this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Application fee. new text end

new text begin (a) An application for an agricultural pesticide dealer
license, or a renewal of an agricultural pesticide dealer license, must be accompanied
by a nonrefundable fee of $150.
new text end

new text begin (b) If an application for renewal of an agricultural pesticide dealer license is not filed
before January 1 of the year for which the license is to be issued, an additional fee of $20
must be paid by the applicant before the license is issued.
new text end

Sec. 19.

Minnesota Statutes 2008, section 18E.03, subdivision 2, is amended to read:

Subd. 2.

Expenditures.

(a) Money in the agricultural chemical response and
reimbursement account may only be used:

(1) to pay for the commissioner's responses to incidents under chapters 18B, 18C,
and 18D that are not eligible for payment under section 115B.20, subdivision 2;

(2) to pay for emergency responses that are otherwise unable to be funded;

(3) to reimburse and pay corrective action costs under section 18E.04; deleted text begin and
deleted text end

(4) by the board to reimburse the commissioner for board staff and other
administrative costs up to $225,000 per fiscal year new text begin ; and
new text end

new text begin (5) to pay costs for the commissioner's incident response program related to
ACRRA-eligible sites new text end .

(b) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make payments as provided in this subdivision.

Sec. 20.

Minnesota Statutes 2008, section 28A.085, subdivision 1, is amended to read:

Subdivision 1.

Violations; prohibited acts.

The commissioner may charge a
reinspection fee for each reinspection of a food handler that:

(1) is found with a major violation of requirements in chapter 28, 29, 30, 31, 31A,
32, 33, or 34, or rules adopted under one of those chapters;

(2) is found with a violation of section 31.02, 31.161, or 31.165, and requires a
follow-up inspection after an administrative meeting held pursuant to section 31.14; or

(3) fails to correct equipment and facility deficiencies as required in rules adopted
under chapter 28, 29, 30, 31, 31A, 32, or 34. The first reinspection of a firm with gross
food sales under $1,000,000 must be assessed at deleted text begin $75 deleted text end new text begin $150 new text end . The fee for a firm with gross
food sales over $1,000,000 is deleted text begin $100 deleted text end new text begin $200 new text end . The fee for a subsequent reinspection of a firm
for the same violation is 50 percent of their current license fee or deleted text begin $200 deleted text end new text begin $300 new text end , whichever is
greater. The establishment must be issued written notice of violations with a reasonable
date for compliance listed on the notice. An initial inspection relating to a complaint is
not a reinspection.

Sec. 21.

Minnesota Statutes 2008, section 32.394, subdivision 8, is amended to read:

Subd. 8.

Grade A inspection fees.

A processor or marketing organization of milk,
milk products, sheep milk, or goat milk who wishes to market Grade A milk or use the
Grade A label must apply for Grade A inspection service from the commissioner. A
pasteurization plant requesting Grade A inspection service must hold a Grade A permit
and pay an annual inspection fee of no more than $500. For Grade A farm inspection
service, the fee must be no more than $50 per farm, paid annually by the processor or by
the marketing organization on behalf of its patrons. For a farm requiring a reinspection
in addition to the required biannual inspections, an additional fee of deleted text begin $45 deleted text end new text begin $100 new text end per
reinspection must be paid by the processor or by the marketing organization on behalf
of its patrons.

Sec. 22.

Minnesota Statutes 2008, section 41A.09, subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or
other renewable resources, including residue and waste generated from the production,
processing, and marketing of agricultural products, forest products, and other renewable
resources, that:

(1) meets all of the specifications in ASTM specification D4806-04a; and

(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is produced.

(c) "Commissioner" means the commissioner of agriculture.

deleted text begin (d) "Rural economic infrastructure" means the development of activities that
will enhance the value of agricultural crop or livestock commodities or by-products
or waste from farming operations through new and improved value-added conversion
processes and technologies, the development of more timely and efficient infrastructure
delivery systems, and the enhancement of marketing opportunities. "Rural economic
infrastructure" also means land, buildings, structures, fixtures, and improvements located
or to be located in Minnesota and used or operated primarily for the processing or the
support of production of marketable products from agricultural commodities or wind
energy produced in Minnesota.
deleted text end

Sec. 23.

Minnesota Statutes 2008, section 41A.09, subdivision 3a, is amended to read:

Subd. 3a.

Ethanol producer payments.

(a) The commissioner shall make cash
payments to producers of ethanol located in the state that have begun production at a
specific location by June 30, 2000. For the purpose of this subdivision, an entity that holds
a controlling interest in more than one ethanol plant is considered a single producer.
The amount of the payment for each producer's annual production, except as provided
in paragraph (c), is 20 cents per gallon for each gallon of ethanol produced at a specific
location on or before June 30, 2000, or ten years after the start of production, whichever is
later. deleted text begin Annually, within 90 days of the end of its fiscal year, an ethanol producer receiving
payments under this subdivision must file a disclosure statement on a form provided by
the commissioner. The initial disclosure statement must include a summary description
of the organization of the business structure of the claimant, a listing of the percentages
of ownership by any person or other entity with an ownership interest of five percent or
greater, and a copy of its annual audited financial statements, including the auditor's report
and footnotes. The disclosure statement must include information demonstrating what
percentage of the entity receiving payments under this section is owned by farmers or
other entities eligible to farm or own agricultural land in Minnesota under the provisions
of section 500.24. Subsequent annual reports must reflect noncumulative changes in
ownership of ten percent or more of the entity. The report need not disclose the identity of
the persons or entities eligible to farm or own agricultural land with ownership interests,
individuals residing within 30 miles of the plant, or of any other entity with less than
ten percent ownership interest, but the claimant must retain information within its files
confirming the accuracy of the data provided. This data must be made available to the
commissioner upon request. Not later than the 15th day of February in each year the
commissioner shall deliver to the chairs of the standing committees of the senate and the
house of representatives that deal with agricultural policy and agricultural finance issues
an annual report summarizing aggregated data from plants receiving payments under this
section during the preceding calendar year. Audited financial statements and notes and
disclosure statements submitted to the commissioner are nonpublic data under section
13.02, subdivision 9. Notwithstanding the provisions of chapter 13 relating to nonpublic
data, summaries of the submitted audited financial reports and notes and disclosure
statements will be contained in the report to the committee chairs and will be public data.
deleted text end

(b) No payments shall be made for ethanol production that occurs after June 30,
2010. A producer of ethanol shall not transfer the producer's eligibility for payments
under this section to an ethanol plant at a different location.

(c) If the level of production at an ethanol plant increases due to an increase in the
production capacity of the plant, the payment under paragraph (a) applies to the additional
increment of production until ten years after the increased production began. Once a
plant's production capacity reaches 15,000,000 gallons per year, no additional increment
will qualify for the payment.

(d) Total payments under paragraphs (a) and (c) to a producer in a fiscal year may
not exceed $3,000,000.

(e) By the last day of October, January, April, and July, each producer shall file a
claim for payment for ethanol production during the preceding three calendar months.
A producer that files a claim under this subdivision shall include a statement of the
producer's total ethanol production in Minnesota during the quarter covered by the claim.
For each claim and statement of total ethanol production filed under this subdivision,
the volume of ethanol production must be examined by an independent certified public
accountant in accordance with standards established by the American Institute of Certified
Public Accountants.

(f) Payments shall be made November 15, February 15, May 15, and August 15. A
separate payment shall be made for each claim filed. Except as provided in paragraph (g),
the total quarterly payment to a producer under this paragraph may not exceed $750,000.

(g) Notwithstanding the quarterly payment limits of paragraph (f), the commissioner
shall make an additional payment in the fourth quarter of each fiscal year to ethanol
producers for the lesser of: (1) 20 cents per gallon of production in the fourth quarter of the
year that is greater than 3,750,000 gallons; or (2) the total amount of payments lost during
the first three quarters of the fiscal year due to plant outages, repair, or major maintenance.
Total payments to an ethanol producer in a fiscal year, including any payment under this
paragraph, must not exceed the total amount the producer is eligible to receive based on
the producer's approved production capacity. The provisions of this paragraph apply only
to production losses that occur in quarters beginning after December 31, 1999.

(h) The commissioner shall reimburse ethanol producers for any deficiency in
payments during earlier quarters if the deficiency occurred because of unallotment or
because appropriated money was insufficient to make timely payments in the full amount
provided in paragraph (a). Notwithstanding the quarterly or annual payment limitations in
this subdivision, the commissioner shall begin making payments for earlier deficiencies in
each fiscal year that appropriations for ethanol payments exceed the amount required to
make eligible scheduled payments. Payments for earlier deficiencies must continue until
the deficiencies for each producer are paid in full, except the commissioner shall not make
a deficiency payment to an entity that no longer produces ethanol on a commercial scale
at the location for which the entity qualified for producer payments, or to an assignee of
the entity.

(i) The commissioner may deleted text begin make direct payments to producers of rural economic
infrastructure deleted text end new text begin provide financial assistance under the 21st century agricultural reinvestment
program in section 41A.12 new text end with any amount of the annual appropriation for ethanol
producer payments deleted text begin and rural economic infrastructure deleted text end that is in excess of the amount
required to make scheduled ethanol producer payments and deficiency payments under
paragraphs (a) to (h).

Sec. 24.

new text begin [41A.12] 21ST CENTURY AGRICULTURAL REINVESTMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The 21st century agricultural reinvestment program
is established in order to promote the advancement of the state's agricultural and renewable
energy industries.
new text end

new text begin Subd. 2. new text end

new text begin Activities authorized. new text end

new text begin For the purposes of this program, the commissioner
may issue grants, loans, or other forms of financial assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock investment grant
program under section 17.118 and bioenergy awards made by the next generation energy
board under section 41A.105.
new text end

new text begin Subd. 3. new text end

new text begin Oversight. new text end

new text begin The commissioner, in consultation with the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over agricultural finance, must allocate available funds among eligible uses, develop
competitive eligibility criteria, and award funds on a needs basis.
new text end

Sec. 25. new text begin BOVINE TUBERCULOSIS CONTROL ASSESSMENT; TEMPORARY
ASSESSMENT; APPROPRIATION.
new text end

new text begin (a) From January 1, 2009, to December 31, 2009, a person who purchases cattle that
were raised or fed within this state shall collect a bovine tuberculosis control assessment of
$1 per head from the seller and shall submit all assessments collected to the commissioner
of agriculture at least once every 30 days. If cattle that were raised or fed within this state
are sold outside of the state and the assessment is not collected by the purchaser, the
seller is responsible for submitting the assessment to the commissioner. For the purposes
of this section, "a person who purchases cattle that were raised or fed within this state"
includes the first purchaser, as defined in Minnesota Statutes, section 17.53, subdivision 8,
paragraph (a), and any subsequent purchaser of the living animal.
new text end

new text begin (b) Money collected under this section shall be deposited in an account in the special
revenue fund and is appropriated to the Board of Animal Health for bovine tuberculosis
control activities.
new text end

new text begin (c) Notwithstanding paragraph (a), a person may not collect a bovine tuberculosis
control assessment from a person whose cattle operation is located within a modified
accredited zone established under Minnesota Statutes, section 35.244, unless the cattle
owner voluntarily pays the assessment. The commissioner of agriculture shall publish and
make available a list of cattle producers exempt under this paragraph.
new text end

new text begin (d) This section may be enforced under Minnesota Statutes, section 17.982 to 17.984.
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 retroactively to cattle purchased on January 1, 2009, and thereafter.
new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 17.49, subdivision 3; and 38.02, subdivisions 3
and 4, new text end new text begin are repealed.
new text end

ARTICLE 2

VETERANS AFFAIRS

Section 1. new text begin VETERANS AFFAIRS. 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 and are available for the fiscal years indicated for each purpose. The figures
"2010" and "2011" used in this article mean that the appropriations listed under them are
available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The
first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is
fiscal years 2010 and 2011.
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 2010 new text end		new text begin 2011 new text end

Sec. 2. new text begin VETERANS AFFAIRS 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 65,708,000 new text end

new text begin $ new text end

new text begin 67,308,000 new text end

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

new text begin 20,782,000 new text end

new text begin 20,782,000 new text end

new text begin Of this amount, $980,000 in fiscal year 2010
and $980,000 in fiscal year 2011 are to be
used to continue working on the merger of
the Department of Veterans Affairs computer
system and the former Veterans Homes
Board computer system.
new text end

new text begin Subd. 3. new text end new text begin Veterans Homes. new text end

new text begin 44,926,000 new text end

new text begin 46,526,000 new text end

new text begin Veterans Homes Special Revenue Account.
The general fund appropriations made to
the department may be transferred to a
veterans homes special revenue account in
the special revenue fund in the same manner
as other receipts are deposited according
to Minnesota Statutes, section 198.34, and
are appropriated to the department for the
operation of veterans homes facilities and
programs.
new text end

new text begin new text begin Repair and Betterment. new text end Of this
appropriation, $1,250,000 in fiscal year
2010 and $1,250,000 in fiscal year 2011
are to be used for repair, maintenance,
rehabilitation, and betterment activities at
facilities statewide.
new text end

Sec. 3.

Minnesota Statutes 2008, section 197.585, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires at the end of the first fiscal year in which
the number of veterans enrolled in Minnesota public institutions of higher education is
fewer than 4,000 deleted text begin , but no later than June 30, 2011 deleted text end .

ARTICLE 3

MILITARY AFFAIRS

Section 1. new text begin MILITARY 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 and are available for the fiscal years indicated for each purpose. The figures
"2010" and "2011" used in this article mean that the appropriations listed under them are
available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The
first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is
fiscal years 2010 and 2011.
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 2010 new text end		new text begin 2011 new text end

Sec. 2. new text begin MILITARY AFFAIRS 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 19,374,000 new text end

new text begin $ new text end

new text begin 19,374,000 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 Maintenance of Training Facilities new text end

new text begin 6,660,000 new text end

new text begin 6,660,000 new text end

new text begin Subd. 3. new text end new text begin General Support new text end

new text begin 2,366,000 new text end

new text begin 2,366,000 new text end

new text begin Subd. 4. new text end new text begin Enlistment Incentives new text end

new text begin 10,348,000 new text end

new text begin 10,348,000 new text end

new text begin If appropriations for either year of the
biennium are insufficient, the appropriation
from the other year is available. The
appropriations for enlistment incentives are
available until expended.
new text end