STATE OF
MINNESOTA
Journal of the House
NINETY-THIRD
SESSION - 2023
_____________________
FIFTY-FIRST
DAY
Saint Paul, Minnesota, Tuesday, April 18, 2023
The House of Representatives convened at
11:30 a.m. and was called to order by Dan Wolgamott, Speaker pro tempore.
Prayer was offered by Father Joseph
Gillespie, OP, Basilica of Saint Mary, Minneapolis, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Acomb
Agbaje
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Bennett
Berg
Bierman
Bliss
Brand
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Edelson
Elkins
Engen
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Garofalo
Gillman
Gomez
Greenman
Grossell
Hansen, R.
Hanson, J.
Harder
Hassan
Heintzeman
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Hudella
Hudson
Huot
Hussein
Igo
Jacob
Johnson
Jordan
Joy
Keeler
Klevorn
Knudsen
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Mekeland
Moller
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, M.
Nelson, N.
Newton
Niska
Noor
Norris
Novotny
O'Driscoll
Olson, B.
Olson, L.
O'Neill
Pelowski
Pérez-Vega
Perryman
Petersburg
Pfarr
Pinto
Pryor
Pursell
Quam
Rehm
Reyer
Richardson
Robbins
Schomacker
Schultz
Scott
Sencer-Mura
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Urdahl
Vang
West
Wiener
Wiens
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Hortman
A quorum was present.
Kiel, McDonald and Neu Brindley were
excused.
Koegel was excused until 1:40 p.m. Becker-Finn was excused until 1:50 p.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF CHIEF CLERK
S. F. No. 10 and
H. F. No. 10, which had been referred to the Chief Clerk for
comparison, were examined and found to be not identical.
Lislegard moved that
S. F. No. 10 be substituted for H. F. No. 10 and
that the House File be indefinitely postponed.
The motion prevailed.
REPORTS OF
STANDING COMMITTEES AND DIVISIONS
Olson, L., from the Committee on Ways and Means to which was referred:
H. F. No. 24, A bill for an act relating to capital investment; modifying authority to ensure safe drinking water; modifying provisions of drinking water revolving fund; establishing grant program to replace lead drinking water service lines; requiring report; appropriating money; amending Minnesota Statutes 2022, sections 144.383; 446A.081, subdivisions 8, 9; proposing coding for new law in Minnesota Statutes, chapter 446A.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Olson, L., from the Committee on Ways and Means to which was referred:
S. F. No. 1955, A bill for an act relating to state government; establishing a budget for the Department of Agriculture, the Board of Animal Health, the Agricultural Utilization Research Institute, and the Office of Broadband Development; making policy and technical changes to agriculture provisions; making policy and technical changes to broadband provisions; providing civil penalties; appropriating money; requiring reports; transferring money to the border-to-border broadband fund account; creating the grain indemnity account; transferring money to the grain indemnity account; amending Minnesota Statutes 2022, sections 17.1016, subdivision 2; 17.133, subdivision 2; 28A.152, subdivision 2; 41A.14, subdivision 2; 41A.19; 116J.395, subdivision 7; 116J.396, subdivision 2; 223.16, by adding a subdivision; 223.17, subdivisions 6, 7, 7a; 223.175; 223.19; 232.22, subdivision 5; Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 5, as amended; Laws 2022, chapter 95, article 2, section 29, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 17; 116J; 223; repealing Minnesota Statutes 2022, sections 17.055, subdivision 2; 41A.12, subdivision 4; 41A.21; 223.17, subdivisions 4, 8; 232.22, subdivisions 4, 6, 6a, 7.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
APPROPRIATIONS
Section 1. AGRICULTURE
APPROPRIATIONS. |
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 "2024" and
"2025" used in this article mean that the
appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025,
respectively. "The first year"
is fiscal year 2024. "The second
year" is fiscal year 2025. "The
biennium" is fiscal years 2024 and 2025.
|
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APPROPRIATIONS
|
|
|
|
|
Available
for the Year |
|
|
|
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Ending
June 30 |
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2024
|
2025
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Sec. 2. DEPARTMENT
OF AGRICULTURE |
|
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Subdivision 1. Total
Appropriation |
|
$90,969,000
|
$73,029,000 |
Appropriations by Fund |
||
|
2024 |
2025 |
General |
90,570,000 |
72,630,000 |
Remediation |
399,000 |
399,000 |
The amounts that may be
spent for each purpose are specified in the following subdivisions.
Subd. 2. Protection
Services |
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|
Appropriations by Fund |
||
|
2024 |
2025 |
General |
29,666,000 |
17,610,000 |
Remediation |
399,000 |
399,000 |
(a) $399,000 the first year
and $399,000 the second year are from the remediation fund for administrative
funding for the voluntary cleanup program.
(b) $250,000 the first year
and $250,000 the second year are for the soil health financial assistance
program. The commissioner may use up to
6.5 percent of this appropriation for costs incurred to administer the program. This is a onetime appropriation. Any unencumbered balance does not cancel at
the end of the first year and is available in the second year. Appropriations encumbered under contract on
or before June 30, 2025, for soil health financial assistance grants are
available until June 30, 2027.
(c) $2,500,000 the first
year is for transfer to the pollinator research account established under
Minnesota Statutes, section 18B.051.
(d) $400,000 the first year and
$400,000 the second year are for transfer to the noxious weed and invasive
plant species assistance account established under Minnesota Statutes, section
18.89, to award grants to local units of government and Tribal Nations under
Minnesota Statutes, section 18.90.
(e) $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. The first year appropriation may be spent to
compensate for livestock that were destroyed or crippled during fiscal year
2023. 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 $5,000 each
year to reimburse expenses incurred by university extension educators to
provide fair market values of destroyed or crippled livestock. If the commissioner receives federal dollars
to pay claims for destroyed or crippled livestock, an equivalent amount of this
appropriation may be used to reimburse nonlethal prevention methods performed
by federal wildlife services staff.
(f) $155,000 the first year
and $155,000 the second year are for compensation for crop damage under
Minnesota Statutes, section 3.7371. If
the amount in the first year is insufficient, the amount in the second year is
available in the first year. The
commissioner may use up to $10,000 of the appropriation each year to reimburse
expenses incurred by the commissioner or the commissioner's approved agent to
investigate and resolve claims, as well as for costs associated with training
for approved agents. The commissioner
may use up to $40,000 of the appropriation each year to make grants to
producers for measures to protect stored crops from elk damage. 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.
(g) $5,000,000 the first
year is for transfer to the grain indemnity account established under Minnesota
Statutes, section 223.24.
(h) $825,000 the first year
and $825,000 the second year are to replace capital equipment in the Department
of Agriculture's analytical laboratory.
(i) $75,000 the first year
and $75,000 the second year are to support a meat processing liaison position
to assist new or existing meat and poultry processing operations in getting
started, expanding, growing, or transitioning into new business models.
(j) $500,000 the first year
and $500,000 the second year are for grants to organizations in Minnesota to
develop enterprises, supply chains, and markets for continuous living cover
crops and cropping systems in the early stages of commercial development. For the
purposes of this paragraph,
"continuous living cover crops and cropping systems" refers to
agroforestry, perennial biomass, perennial forage, perennial grains, and winter
annual cereal grains and oilseeds that have market value as harvested or grazed
commodities. The commissioner may use up
to 6.5 percent of this appropriation for costs incurred to administer the
program. This is a onetime
appropriation.
(k) $1,126,000 the first
year and $562,000 the second year are to identify and regulate pesticides
containing perfluoroalkyl or polyfluoroalkyl substances.
(l) $100,000 the first year
is to regulate systemic pesticide-treated seed.
(m) $65,000 the first year
is for transfer to the commissioner of natural resources for a report on feral
pigs and mink.
Subd. 3. Agricultural Marketing and Development |
4,365,000 |
4,365,000 |
(a) $150,000 the first year
and $150,000 the second year are to expand international trade opportunities
and markets for Minnesota agricultural products. The base for this appropriation is $75,000 in
fiscal year 2026 and $75,000 in fiscal year 2027.
(b) $186,000 the first year
and $186,000 the second year are for transfer to the Minnesota grown account
and may be used as grants for Minnesota grown promotion established under
Minnesota Statutes, section 17.102. Notwithstanding
Minnesota Statutes, section 16A.28, the appropriations encumbered under
contract on or before June 30, 2025, for Minnesota grown grants in this
paragraph are available until June 30, 2027.
(c) $634,000 the first year
and $634,000 the second year are for continuation of the dairy development and
profitability enhancement programs including dairy profitability teams and
dairy business planning grants under Minnesota Statutes, section 32D.30.
(d) $200,000 the first year
and $200,000 the second year are to award cooperative grants under Minnesota
Statutes, section 17.1016. The
commissioner may use up to six percent of the appropriation each year to
administer the grant program.
(e) 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 to persons transitioning from conventional to organic agriculture.
Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement |
34,982,000 |
33,982,000 |
(a) $11,740,000 the first
year and $10,740,000 the second year are for the agriculture research,
education, extension, and technology transfer program under Minnesota Statutes,
section 41A.14. Except as provided
below, the appropriation each year is for transfer to the agriculture research,
education, extension, and technology transfer account under Minnesota Statutes,
section 41A.14, subdivision 3, and the commissioner shall transfer funds each
year to the Board of Regents of the University of Minnesota for purposes of
Minnesota Statutes, section 41A.14. To
the extent practicable, money 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.
Of the amount appropriated
for the agriculture research, education, extension, and technology transfer
grant program under Minnesota Statutes, section 41A.14:
(1) $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) up to $1,000,000 the
first year and up to $1,000,000 the second year are for research on avian
influenza, salmonella, and other turkey-related diseases;
(3) $2,250,000 the first
year and $2,250,000 the second year are for grants to the Minnesota
Agricultural Education Leadership Council to enhance agricultural education
with priority given to Farm Business Management challenge grants;
(4) $450,000 the first year
and $450,000 the second year are for the cultivated wild rice breeding project
at the North Central Research and Outreach Center to include a tenure
track/research associate plant breeder;
(5) $350,000 the first year
and $350,000 the second year are for potato breeding;
(6) $690,000 the first year
and $690,000 the second year are to fund the Forever Green Initiative and
protect the state's natural resources while increasing the efficiency,
profitability, and productivity of Minnesota farmers by incorporating perennial
and winter-annual crops into existing agricultural practices. The base for the allocation under this clause
is $630,000 in fiscal year 2026 and thereafter;
(7) $1,000,000 the first year
is to purchase and maintain equipment and physical infrastructure to support
breeding, agronomic research, and food science activities of the Forever Green
Initiative. The allocation in this
clause is onetime; and
(8) $500,000 each year is
for farm-scale winter greenhouse research and development coordinated by
University of Minnesota Extension Regional Sustainable Development Partnerships. The allocation in this clause is onetime.
(b) The base for the
agriculture research, education, extension, and technology transfer program is
$10,180,000 in fiscal year 2026 and $10,180,000 in fiscal year 2027.
(c) $23,242,000 the first
year and $23,242,000 the second year are for the agricultural growth, research,
and innovation program under Minnesota Statutes, section 41A.12. Except as provided below, the commissioner
may allocate this appropriation each year among the following areas: facilitating the start-up, modernization,
improvement, or expansion of livestock operations, including beginning and
transitioning livestock operations with preference given to robotic
dairy-milking equipment; assisting value-added agricultural businesses to begin
or expand, to access new markets, or to diversify, including aquaponics
systems; 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; the development or expansion of food hubs and other alternative
community-based food distribution systems; enhancing renewable energy
infrastructure and use; crop research, including basic and applied turf seed
research; Farm Business Management tuition assistance; and good agricultural
practices and good handling practices certification assistance. The commissioner may use up to 6.5 percent of
this appropriation for costs incurred to administer the program.
Of the amount appropriated
for the agricultural growth, research, and innovation program under Minnesota
Statutes, section 41A.12:
(1) $1,000,000 the first year and $1,000,000 the second year are for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture;
(2) $6,750,000 the first
year and $6,750,000 the second year are for incentive payments under Minnesota
Statutes, sections 41A.16, 41A.17, 41A.18, and 41A.20. Of the amount allocated each year, $1,000,000
is to pay prior claims that were not fully paid. Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is available until June 30, 2025, and the
second year appropriation is available until June 30, 2026. If this appropriation
exceeds the total amount for
which all producers are eligible in a fiscal year, the balance of the
appropriation is available for other purposes under this paragraph. The base under this clause is $5,750,000 in
fiscal year 2026 and thereafter and does not include funding to pay prior
claims that were not fully paid;
(3) $3,000,000 the first
year and $3,000,000 the second year are for grants that enable retail petroleum
dispensers, fuel storage tanks, and other equipment 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
clause if the retail petroleum dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in Minnesota. The grant money must be used to replace or
upgrade equipment that does not have the ability to be certified for E25. A grant award must not exceed 65 percent of
the cost of the appropriate technology. A
grant award must not exceed $200,000 per station. The commissioner must cooperate with biofuel
stakeholders in the implementation of the grant program. The commissioner, in cooperation with any
economic or community development financial institution and any other entity
with which the commissioner contracts, must submit a report on the biofuels
infrastructure financial assistance program by January 15 of each year to the
chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over agriculture policy and finance. The annual report must include but not be
limited to a summary of the following metrics:
(i) the number and types of projects financed; (ii) the amount of
dollars leveraged or matched per project; (iii) the geographic distribution of
financed projects; (iv) any market expansion associated with upgraded
infrastructure; (v) the demographics of the areas served; (vi) the costs of the
program; and (vii) the number of grants to minority-owned or female-owned
businesses;
(4) $100,000 the first year
and $100,000 the second year are for grants to facilitate the start-up,
modernization, or expansion of copacking facilities, commercial kitchens, and
other key supply chain infrastructure, such as shared cold-chain capacity. Money appropriated in this clause may also be
used to assist value-added processors with food safety and environmental
sustainability guideline planning and third-party certification services;
(5) $1,250,000 the first
year and $1,250,000 the second year are for grants to facilitate the start-up,
modernization, or expansion of meat, poultry, egg, and milk processing
facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second year does not cancel until June
30, 2026, and may be used for other purposes under this paragraph. The base under this clause is $250,000 in
fiscal year 2026 and thereafter;
(6) $1,000,000 the first year
and $1,000,000 the second year are to develop and enhance farm-to-school
markets for Minnesota farmers by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in schools and early childhood
education centers, including, at the commissioner's discretion, reimbursing
schools and early childhood education centers for purchases from local farmers;
(7) $1,000,000 the first year and $1,000,000 the second year are for urban youth agricultural education or urban agriculture community development;
(8) $500,000 the first year
and $500,000 the second year are for the good food access program under
Minnesota Statutes, section 17.1017; and
(9) $1,000,000 the first
year and $1,000,000 the second year are to award and administer hemp fiber
processing equipment grants under Minnesota Statutes, section 18K.10. The allocation in this clause is onetime.
Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered balance does not cancel at the end
of the first year and is available for the second year, and appropriations
encumbered under contract on or before June 30, 2025, for agricultural growth,
research, and innovation grants are available until June 30, 2028.
(d) The base for the
agricultural growth, research, and innovation program is $16,079,000 in fiscal
year 2026 and $16,079,000 in fiscal year 2027, and includes funding for
incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, 41A.18,
and 41A.20.
Subd. 5. Administration and Financial Assistance |
21,557,000 |
16,673,000 |
(a) $474,000 the first year
and $474,000 the second year are for payments to county and district
agricultural societies and associations under Minnesota Statutes, section
38.02, subdivision 1. Aid payments to
county and district agricultural societies and associations must 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.
(b) $350,000 the first year
and $350,000 the second year are for grants to the Minnesota Agricultural
Education Leadership Council for programs of
the council under Minnesota Statutes, chapter 41D.
(c) $1,425,000 the first
year and $1,425,000 the second year are for transfer to the agricultural and
environmental revolving loan account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest loans under Minnesota
Statutes, section 17.117.
(d) $1,950,000 the first year
and $1,950,000 the second year are for grants to Second Harvest Heartland on
behalf of Minnesota's six Feeding America food banks for the following:
(1) to purchase 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. 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 that receives funding under
this clause may use up to two percent for administrative expenses;
(2) 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 be 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 clause must be from Minnesota producers, processors,
and food hubs. Second Harvest Heartland
may use up to 15 percent of each grant awarded under this clause for
administrative and transportation expenses; and
(3) to purchase and
distribute protein products, including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's food shelves and other charitable
organizations that are eligible to receive food from the food banks. Second Harvest Heartland may use up to two
percent of each grant awarded under this clause for administrative expenses. Protein products purchased under the grants
must be acquired from Minnesota processors, producers, and food hubs.
Of the amount appropriated
under this paragraph, at least $850,000 each year must be allocated under
clause (1) and at least $100,000 each year must be used to purchase eligible
items from food hubs that aggregate food produced by emerging farmers. Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance the first year does not cancel and is
available in the second year. Second
Harvest Heartland must submit quarterly reports to the commissioner and the
chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture finance in the form prescribed by the
commissioner. The reports must include
but are not limited to information on the expenditure of funds, the amount of
milk or other commodities purchased, and the organizations to which this food
was distributed.
(e) $100,000 the first year and
$100,000 the second year are for grants to The Good Acre for the Local
Emergency Assistance Farmer Fund program to compensate emerging farmers for
crops donated to hunger relief organizations in Minnesota. This is a onetime appropriation.
(f) $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.
(g) $400,000 the first year
and $400,000 the second year are to expand the Emerging Farmer Office. The Emerging Farmer Office must engage and
support emerging farmers regarding resources and opportunities available
through the Department of Agriculture and throughout the state. For purposes of this paragraph,
"emerging farmer" has the meaning given in Minnesota Statutes,
section 17.055, subdivision 1. Of the
amount appropriated each year, $25,000 is for translation services.
(h) $337,000 the first year
and $337,000 the second year are for farm advocate services. Of the amount appropriated each year, $50,000
is for the continuation of the farmland transition programs and may be used for
grants to farmland access teams to provide technical assistance to potential
beginning farmers. Farmland access teams
must assist existing farmers and beginning farmers with transitioning farm
ownership and farm operation. Services
provided by teams may include but are not limited to mediation assistance,
designing contracts, financial planning, tax preparation, estate planning, and
housing assistance.
(i) $260,000 the first year
and $260,000 the second year are for a pass-through grant to Region Five
Development Commission to provide, in collaboration with Farm Business
Management, statewide mental health counseling support to Minnesota farm
operators, families, and employees, and individuals who work with Minnesota
farmers in a professional capacity. Region
Five Development Commission may use up to 6.5 percent of the grant awarded
under this paragraph for administration.
(j) $250,000 the first year
and $250,000 the second year are to award and administer beginning farmer
equipment and infrastructure grants under Minnesota Statutes, section 17.055.
(k) $150,000 the first year
and $150,000 the second year are for administrative support for the Rural
Finance Authority.
(l) $750,000 the first year
and $750,000 the second year are to award and administer down payment
assistance grants under Minnesota Statutes, section 17.133, to emerging farmers
as defined
in Minnesota Statutes, section
17.055, subdivision 1. Notwithstanding
Minnesota Statutes, section 16A.28, any unencumbered balance at the end of the
first year does not cancel and is available in the second year and
appropriations encumbered under contract by June 30, 2025, are available until
June 30, 2027.
(m) $50,000 the first year
is to provide technical assistance and leadership in the development of a
comprehensive and well‑documented state aquaculture plan. The commissioner must provide the state
aquaculture plan to the legislative committees with jurisdiction over
agriculture finance and policy by February 15, 2025.
(n) $500,000 the first year
and $500,000 the second year are for meat processing training and retention
incentive grants under section 6. The
commissioner may use up to 6.5 percent of this appropriation for costs incurred
to administer the program. This is a
onetime appropriation.
(o) $3,000,000 the first
year is for Dairy Assistance, Investment, Relief Initiative (DAIRI) grants to
Minnesota dairy farmers who enroll in coverage under a federal dairy risk
protection program and produced no more than 25,000,000 pounds of milk in 2022. The commissioner must award DAIRI grants
based on the amount of milk produced in 2022, up to 5,000,000 pounds per
participating producer, at a rate determined by the commissioner within the
limits of available funding. Notwithstanding
Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at
the end of the first year and is available the second year and any unencumbered
balance at the end of the second year is available until June 30, 2026. The commissioner may use up to 6.5 percent of
this appropriation for costs incurred to administer the program.
(p) $150,000 the first year
and $150,000 the second year are for technical assistance grants to certified
community development financial institutions that participate in United States
Department of Agriculture loan or grant programs for small or emerging farmers,
including but not limited to the Increasing Land, Capital, and Market Access
Program. For purposes of this paragraph,
"emerging farmer" has the meaning given in Minnesota Statutes,
section 17.055, subdivision 1. The
commissioner may use up to 6.5 percent of this appropriation for costs incurred
to administer the program.
(q) $1,000,000 the first
year is for transfer to the agricultural emergency account established under
Minnesota Statutes, section 17.041.
(r) $1,584,000 the first
year and $1,000,000 the second year are to support IT modernization efforts,
including laying the technology foundations necessary to improve customer
licensing and payment interactions with the department. This is a onetime appropriation.
(s) $150,000 the first year and
$150,000 the second year are to coordinate climate-related activities and
services within the Department of Agriculture and counterparts in local, state,
and federal agencies and to hire a full-time climate implementation coordinator. The climate implementation coordinator must
coordinate efforts seeking federal funding for Minnesota's agricultural climate
adaptation and mitigation efforts and develop strategic partnerships with the
private sector and nongovernment organizations.
(t) $250,000 the first year
is for a grant to the Board of Regents of the University of Minnesota to
purchase equipment for the Veterinary Diagnostic Laboratory to test for chronic
wasting disease, African swine fever, avian influenza, and other animal
diseases. The Veterinary Diagnostic
Laboratory must report expenditures under this paragraph to the legislative
committees with jurisdiction over agriculture finance and higher education with
a report submitted by January 3, 2024, and a final report submitted by
September 1, 2025. The reports must
include a list of equipment purchased, including the cost of each item.
(u) $2,500,000 the first
year and $2,500,000 the second year are to maintain the current level of
service delivery. The base for this
appropriation is $3,011,000 in fiscal year 2026 and $3,011,000 in fiscal year
2027.
(v) $1,000,000 the first
year and $1,000,000 the second year are for transfer to the Board of Regents of
the University of Minnesota to evaluate, propagate, and maintain the genetic
diversity of oilseeds, grains, grasses, legumes, and other plants including
flax, timothy, barley, rye, triticale, alfalfa, orchard grass, clover, and
other species and varieties that were in commercial distribution and use in
Minnesota before 1970, excluding wild rice.
This effort must also protect traditional seeds brought to Minnesota by
immigrant communities. This
appropriation includes funding for associated extension and outreach to small
and Black, Indigenous, and People of Color (BIPOC) farmers. This is a onetime appropriation.
(w) The commissioner shall
continue to increase connections with ethnic minority and immigrant farmers to
farming opportunities and farming programs throughout the state.
Sec. 3. BOARD
OF ANIMAL HEALTH |
|
$6,613,000 |
$6,779,000 |
(a) $560,000 the first year
and $560,000 the second year are for agricultural emergency preparedness and
response. As part of the fiscal year
2024 and 2025 reports required under Minnesota Statutes, section 35.03, the
Board of Animal Health must report the number of additional staff positions
created under this paragraph, the number of full-time equivalent staff hired
under this paragraph and their specific expertise and training, and the
specific types of incidents and animal diseases for which the board is
preparing.
(b) $6,000 the first year and
$6,000 the second year are for meeting expenses for the additional board
members.
(c) $166,000 the first year
and $332,000 the second year are to maintain the current level of service
delivery.
Sec. 4. AGRICULTURAL
UTILIZATION RESEARCH INSTITUTE |
$5,643,000 |
$4,343,000 |
(a) $300,000 the first year
is for equipment upgrades, equipment replacement, installation expenses, and
laboratory infrastructure at the Agricultural Utilization Research Institute's
laboratories in the cities of Crookston, Marshall, and Waseca.
(b) $1,000,000 the first year
is to replace analytical and processing equipment and make corresponding
facility upgrades at Agricultural Utilization Research Institute facilities in
the cities of Marshall and Waseca. This
is a onetime appropriation and is available until June 30, 2026.
(c) $300,000 the first year
and $300,000 the second year are to maintain the current level of service
delivery.
Sec. 5. Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 5, as amended by Laws 2022, chapter 95, article 1, section 1, subdivision 5, is amended to read:
Subd. 5. Administration and Financial Assistance |
11,477,000 |
13,429,000 |
(a) $474,000 the first year and $474,000 the second year are for payments to county and district agricultural societies and associations under Minnesota Statutes, section 38.02, subdivision 1. Aid payments to county and district agricultural societies and associations shall be disbursed no later than July 15 of each year. These payments are the amount of aid from the state for an annual fair held in the previous calendar year.
(b) $387,000 the first year and $337,000 the second year are for farm advocate services. Of these amounts, $100,000 the first year and $50,000 the second year are for a pilot program creating farmland access teams to provide technical assistance to potential beginning farmers. The farmland access teams must assist existing farmers and beginning farmers on transitioning farm ownership and operation. Services provided by teams may include but are not limited to providing mediation assistance, designing contracts, financial planning, tax preparation, estate planning, and housing assistance. Of this amount for farm transitions, up to $50,000 the first year may be used to upgrade the Minnesota FarmLink web application that connects farmers looking for land with farmers looking to transition their land.
(c) $47,000 the first year and $47,000 the second year are for grants to the Northern Crops Institute that may be used to purchase equipment. These are onetime appropriations.
(d) $238,000 the first year and $260,000 the second year are for a pass-through grant to Region Five Development Commission to provide, in collaboration with Farm Business Management, statewide mental health counseling support to Minnesota farm operators, families, and employees, and individuals who work with Minnesota farmers in a professional capacity. Region Five Development Commission may use up to 6.5 percent of the grant awarded under this paragraph for administration. The base for this appropriation is $260,000 in fiscal year 2024 and later.
(e) $1,700,000 the first year and $1,700,000 the second year are for grants to Second Harvest Heartland on behalf of Minnesota's six Feeding America food banks for the following:
(1) to purchase 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. 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 that receives funding under this clause may use up to two percent for administrative expenses;
(2) 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 clause must be from Minnesota producers and processors. Second Harvest Heartland may use up to 15 percent of each grant awarded under this clause for administrative and transportation expenses; and
(3) to purchase and distribute protein products, including but not limited to pork, poultry, beef, dry legumes, cheese, and eggs to Minnesota's food shelves and other charitable organizations that are eligible to receive food from the food banks. Second Harvest Heartland may use up to two percent of each grant awarded under this clause for administrative expenses. Protein products purchased under the grants must be acquired from Minnesota processors and producers.
Of the amount appropriated under this paragraph, at least $600,000 each year must be allocated under clause (1). Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance the first year does not cancel and is available in the second year. Second Harvest Heartland must submit quarterly reports to the commissioner and the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture finance in the form prescribed by the commissioner. The reports must include but are not limited to information on the expenditure of funds, the amount of milk or other commodities purchased, and the organizations to which this food was distributed.
(f) $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.
(g) $1,437,000 the first year and $1,437,000 the second year are for transfer to the agricultural and environmental revolving loan account established under Minnesota Statutes, section 17.117, subdivision 5a, for low-interest loans under Minnesota Statutes, section 17.117. The base for appropriations under this paragraph in fiscal year 2024 and thereafter is $1,425,000. The commissioner must examine how the department could use up to one-third of the amount transferred to the agricultural and environmental revolving loan account under this paragraph to award grants to rural landowners to replace septic systems that inadequately protect groundwater. No later than February 1, 2022, the commissioner must report to the legislative committees with jurisdiction over agriculture finance and environment finance on the results of the examination required under this paragraph. The commissioner's report may include other funding sources for septic system replacement that are available to rural landowners.
(h) $150,000 the first year and $150,000 the second year are for grants to the Center for Rural Policy and Development. These are onetime appropriations.
(i) $150,000 the first year is to provide grants to Central Lakes College for the purposes of designing, building, and offering credentials in the area of meat cutting and butchery that align with industry needs as advised by local industry advisory councils. Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available for the second year. The commissioner may only award a grant under this paragraph if the grant is matched by a like amount from another funding source. The commissioner must seek matching dollars from Minnesota State Colleges and Universities or other entities. The appropriation is onetime and is available until June 30, 2024. Any money remaining on June 30,
2024, must be transferred to the agricultural growth, research, and innovation program under Minnesota Statutes, section 41A.12, and is available until June 30, 2025. Grants may be used for costs including but not limited to:
(1) facility renovation to accommodate meat cutting;
(2) curriculum design and approval from the Higher Learning Commission;
(3) program operational start-up costs;
(4) equipment required for a meat cutting program; and
(5) meat handling start-up costs in regard to meat access and market channel building.
No later than January 15, 2023, Central Lakes College must submit a report outlining the use of grant money to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture and higher education.
(j) $2,000 the first year is for grants to the Minnesota State Poultry Association. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available for the second year.
(k) $17,000 the first year and $17,000 the second year are for grants to the Minnesota State Horticultural Society. These are onetime appropriations.
(l) $18,000 the first year and $18,000 the second year are for grants to the Minnesota Livestock Breeders Association. These are onetime appropriations.
(m) The commissioner shall continue to increase connections with ethnic minority and immigrant farmers to farming opportunities and farming programs throughout the state.
(n) $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.
(o) $75,000 the first year and $75,000 the second year are for grants to Greater Mankato Growth, Inc., for assistance to agriculture-related businesses to promote jobs, innovation, and synergy development. These are onetime appropriations.
(p) $75,000 the first year and $75,000 the second year are for grants to the Minnesota Turf Seed Council for basic and applied research. The Minnesota Turf Seed Council may subcontract with a qualified third party for some or all of the basic or applied research. No later than January 15, 2023, the Minnesota Turf Seed Council must submit a report outlining the use of the grant money and related accomplishments to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture. These are onetime appropriations. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.
(q) $150,000 the first year and $150,000 the second year are to establish an emerging farmer office and hire a full-time emerging farmer outreach coordinator. The emerging farmer outreach coordinator must engage and support emerging farmers regarding resources and opportunities available throughout the Department of Agriculture and the state. For purposes of this paragraph, "emerging farmer" has the meaning provided in Minnesota Statutes, section 17.055, subdivision 1. Of the amount appropriated each year, $25,000 is for translation services for farmers and cottage food producers.
(r) $222,000 the first year and $286,000 the second year are to maintain the current level of service delivery.
(s) $827,000 the second year is to award and administer grants to:
(1) organizations to provide technical and culturally appropriate services to emerging farmers and related businesses;
(2) organizations to help emerging farmers pay for up to 65 percent of premium expenses each year up to two years under the federal micro farm insurance program; and
(3) The Good Acre for the Local Emergency Assistance Farmer Fund (LEAFF) program to compensate emerging farmers for crops donated to hunger relief organizations in Minnesota.
This is a onetime appropriation and is available until June 30, 2024.
(t) $750,000 the second year is to support the IT modernization efforts, including laying the technology foundations needed for improving customer interactions with the department for licensing and payments. The base for this appropriation is $584,000 in fiscal year 2024 and $0 in fiscal year 2025.
(u) $1,500,000 the first year is for transfer to the agricultural emergency account established under Minnesota Statutes, section 17.041. This is a onetime transfer. This transfer is in addition to the appropriations made in Laws 2022, chapter 47, section 2.
Notwithstanding Minnesota Statutes, section 17.041, the commissioner may use the amount to be transferred for the purposes identified under Laws 2022, chapter 47, section 2, paragraph (b). This paragraph expires on December 31, 2022.
(v) $250,000 in the second year is for a grant to the Board of Regents of the University of Minnesota to purchase equipment for the Veterinary Diagnostic Laboratory to test for chronic wasting disease, African swine fever, avian influenza, and other animal diseases. The Veterinary Diagnostic Laboratory must report expenditures under this paragraph to the legislative committees with jurisdiction over agriculture finance and higher education with initial reports completed by January 3, 2023, and January 3, 2024, and a final report by September 1, 2025. The reports must include a list of equipment purchased, including the cost of each item. The base for this appropriation is $250,000 in fiscal year 2024 and $0 in fiscal year 2025.
(w) $141,000 the second year is for additional funding to administer the beginning farmer tax credit. The base for this appropriation is $56,000 in fiscal year 2024 and later.
(x) $750,000 the second year is for a grant to the Ag Innovation Campus to continue construction of a soybean processing and research facility. This is a onetime appropriation.
The commissioner shall submit a report on the utilization of the grants to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture policy and finance by February 1, 2024.
(y) $50,000 is added to the base for fiscal year 2024 and $0 for fiscal year 2025 to provide technical assistance and leadership in the development of a comprehensive and well-documented state aquaculture plan. The commissioner must provide the state aquaculture plan to the legislative committees with jurisdiction over agriculture finance and policy by February 15, 2025.
(z) $500,000 the second year
is to award and administer down payment assistance grants under Minnesota
Statutes, section 17.133. The base for
this appropriation is $750,000 in fiscal year 2024 and thereafter. Notwithstanding Minnesota Statutes,
section 16A.28, appropriations encumbered under contract by June 30, 2023, are
available until June 30, 2025.
(aa) $350,000 the second year is to provide grants to secondary career and technical education programs for the purpose of offering instruction in meat cutting and butchery. By January 15, 2023, the commissioner must report to the chairs and ranking minority members of the committees with jurisdiction over agriculture finance and education finance by listing the grants
made under this paragraph by county and noting the number and amount of grant requests not fulfilled. The report may include additional information as determined by the commissioner, including but not limited to information regarding the outcomes produced by these grants. If additional grants are awarded under this paragraph that were not covered in the report due by January 15, 2023, the commissioner must submit an additional report to the chairs and ranking minority members of the committees with jurisdiction over agriculture finance and education finance regarding all grants issued under this paragraph by November 1, 2023. This is a onetime appropriation. Grants may be used for costs, including but not limited to:
(1) equipment required for a meat cutting program;
(2) facility renovation to accommodate meat cutting; and
(3) training faculty to teach the fundamentals of meat processing.
A grant recipient may be awarded a grant of up to $70,000 and may use up to ten percent of the grant for faculty training.
Priority may be given to applicants who are coordinating with meat cutting and butchery programs at Minnesota State Colleges and Universities system and local industry partners.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. GRANTS
FOR MEAT PROCESSING TRAINING AND RETENTION INCENTIVES.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Partner
organizations" include:
(1) foundations engaged
in economic development;
(2) community
development financial institutions;
(3) federally recognized
economic development districts; and
(4) community
development corporations.
(c) "Small- to
medium-sized meat and poultry processor" means a meat and poultry
processor licensed by the state of Minnesota or the federal government that has
fewer than 150 employees.
Subd. 2. Grants. (a) The commissioner of agriculture
must provide grants to partner organizations to assist small- to medium-sized
meat and poultry processors with hiring and training new employees. New employees at eligible meat and poultry
processing plants may receive up to $10,000 in the form of tuition
reimbursement for programs at Minnesota State Colleges and Universities,
sign-on bonuses, relocation assistance, retention incentives, child care
stipends, and other related expenses. Employees
at any one meat or poultry processor may not receive more than $50,000 under
this paragraph.
(b) Up to 20 percent of a grant
to a partner organization may be used for direct services to employees,
including but not limited to translation services.
(c) Priority must be given to applications from partner organizations working in partnership with Minnesota State Colleges and Universities.
ARTICLE 2
AGRICULTURE STATUTORY CHANGES
Section 1. [17.033]
LICENSE AND PERMIT SURCHARGES.
The commissioner may
collect license and permit surcharges on all licensing and permitting
transactions conducted by the Department of Agriculture for which a fee is
charged. The surcharge applies to all
initial and renewal license and permit applications and is calculated based on
the license or permit base fee. Late
penalties or other assessments are not included in the calculation of the surcharge. The fee is set at five percent beginning
August 1, 2023, with a minimum fee of $5 for each transaction. The surcharge rate must be reviewed and set
annually by the commissioner and may be assessed at a rate of between three and
eight percent of the licensing or permitting fee, with a minimum fee of $5 for
each transaction. The fees collected for
this surcharge must be deposited in a dedicated account in the agricultural
fund. Money in the account, including
interest, is appropriated to the commissioner for the information technology
improvement activities needed to create electronic systems for conducting
licensing and permitting transactions and to modernize the department's
inspection and customer management systems.
Sec. 2. Minnesota Statutes 2022, section 17.055, subdivision 1, is amended to read:
Subdivision 1. Emerging
farmer working group. To advise the
commissioner and legislature regarding the development and implementation of
programs and initiatives that support emerging farmers in this state, the
commissioner must periodically convene a working group consisting, to the
extent possible, of persons who are, and organizations that represent, farmers
or aspiring farmers who are women, veterans, persons with disabilities,
American Indian or Alaskan Natives, members of a community of color, young, and
lesbian, gay, bisexual, transgender, queer, intersex, or asexual (LGBTQIA+),
or urban, and any other emerging farmers as determined by the commissioner. No later than January 15 each year, the
commissioner must update the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over agriculture
regarding the working group's activities and recommendations.
Sec. 3. Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to read:
Subd. 2a. Emerging
Farmers Office. The Emerging
Farmers Office exists to support emerging farmers. For purposes of this subdivision,
"emerging farmer" has the meaning given in subdivision 1. At a minimum, the office must coordinate the
emerging farmer working group under subdivision 1 and the beginning farmer
equipment and infrastructure grant program under subdivision 3.
Sec. 4. Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to read:
Subd. 3. Beginning
farmer equipment and infrastructure grants.
(a) The commissioner may award and administer equipment and
infrastructure grants to beginning farmers.
The commissioner shall give preference to applicants who are emerging
farmers as defined in subdivision 1. Grant
money may be used for equipment and infrastructure development.
(b) The commissioner
shall develop competitive eligibility criteria and may allocate grants on a
needs basis.
(c) Grant projects may
continue for up to two years.
Sec. 5. Minnesota Statutes 2022, section 17.055, is amended by adding a subdivision to read:
Subd. 4. Report. No later than February 1 each year,
the commissioner must submit a report to the chairs and ranking minority
members of the legislative committees and divisions with jurisdiction over
agriculture regarding the emerging farmer working group's activities,
recommendations, and any grants awarded under this section.
Sec. 6. Minnesota Statutes 2022, section 17.1016, subdivision 2, is amended to read:
Subd. 2. Grant program. (a) The commissioner may establish and implement a grant program to help farmers finance new cooperatives that organize for purposes of operating an agricultural product processing facility or marketing an agricultural product or agricultural service.
(b) To be eligible for this program, a grantee must:
(1) be a cooperative organized under chapter 308A or 308B;
(2) certify that all
control and equity in of the cooperative is from farmers, family
farm partnerships, family farm limited liability companies, or family farm
corporations as defined in section 500.24, subdivision 2, who are actively
engaged in agricultural commodity production;
(3) be operated primarily
to process agricultural commodities or market agricultural products or services
produced in Minnesota; and
(4) receive agricultural
commodities produced primarily by shareholders or members of the cooperative;
and
(5) not allow nonpatron voting rights.
(c) The commissioner may receive applications and make grants up to $50,000 to eligible grantees for feasibility, marketing analysis, assistance with organizational development, financing and managing new cooperatives, product development, development of business and marketing plans, and predesign of facilities, including site analysis, the development of bid specifications, preliminary blueprints and schematics, and the completion of purchase agreements and other necessary legal documents.
(d) Grants must be matched dollar-for-dollar with other money or in-kind contributions.
Sec. 7. Minnesota Statutes 2022, section 17.116, subdivision 3, is amended to read:
Subd. 3. Awarding of grants. (a) Applications for grants must be made to the commissioner on forms prescribed by the commissioner.
(b) The applications must be reviewed, ranked, and recommended by a technical review panel appointed by the commissioner. The technical review panel shall consist of a soil scientist, an agronomist, a representative from a postsecondary educational institution, an agricultural marketing specialist, two resident farmers of the state using sustainable agriculture methods, two resident farmers of the state using organic agriculture methods, and a chair from the department.
(c) The technical review panel shall rank applications according to the following criteria:
(1) direct or indirect energy savings or production;
(2) environmental benefit;
(3) farm profitability;
(4) the number of farms able to apply the techniques or the technology proposed;
(5) the effectiveness of the project as a demonstration;
(6) the immediate transferability of the project to farms; and
(7) the ability of the project to accomplish its goals.
(d) The commissioner shall consider the recommendations of the technical review panel and may award grants for eligible projects. Priority must be given to applicants who are farmers or groups of farmers.
(e) Grants for eligible
projects may not exceed $25,000 unless the portion above $25,000 is matched on
an equal basis by the applicant's cash or in-kind land use contribution. contribution or the value of the
applicant's in-kind land use, equipment use, or personal labor. Grant recipients who are not required to
provide a match and grant recipients whose in-kind contributions exceed the
amount needed to meet matching requirements may submit the value of the grant
recipients' labor or equipment use as an expense eligible for payment from
grant money. Grant funding of
projects may not exceed $50,000 under this section, but applicants may utilize
other funding sources. A portion of each
grant must be targeted for public information activities of the project.
(f) A project may continue for up to three years. Multiyear projects must be reevaluated by the technical review panel and the commissioner before second or third year funding is approved. A project is limited to one grant for its funding.
Sec. 8. Minnesota Statutes 2022, section 17.133, subdivision 3, is amended to read:
Subd. 3. Report to legislature. No later than December 1, 2023, and annually thereafter, the commissioner must provide a report to the chairs and ranking minority members of the legislative committees having jurisdiction over agriculture and rural development, in compliance with sections 3.195 and 3.197, on the farm down payment assistance grants under this section. The report must include:
(1) background information on beginning farmers in Minnesota and any other information that the commissioner and authority find relevant to evaluating the effect of the grants on increasing opportunities for and the number of beginning farmers;
(2) the number and amount of grants;
(3) the geographic distribution of grants by county;
(4) the number of grant recipients who are emerging farmers;
(5) disaggregated data
regarding the gender, race, and ethnicity of grant recipients;
(5) (6) the
number of farmers who cease to own land and are subject to payment of a
penalty, along with the reasons for the land ownership cessation; and
(6) (7) the
number and amount of grant applications that exceeded the allocation available
in each year.
Sec. 9. [17.134]
SOIL HEALTH FINANCIAL ASSISTANCE PROGRAM.
Subdivision 1. Establishment. The commissioner must establish and
administer a program to support healthy soil management practices in accordance
with this section.
Subd. 2. Eligible
projects. The commissioner
may award a grant under this section for any project on agricultural land in
Minnesota that will:
(1) increase the quantity
of organic carbon in soil through practices, including but not limited to
reduced tillage, cover cropping, manure management, precision agriculture, crop
rotations, and changes in grazing management;
(2) integrate perennial
vegetation into the management of agricultural lands;
(3) reduce nitrous oxide
and methane emissions through changes to livestock, soil management, or
nutrient optimization;
(4) increase the usage of
precision agricultural practices;
(5) enable the
development of site-specific management plans; or
(6) enable the purchase
of equipment, parts and materials, technology, subscriptions, technical
assistance, seeds, seedlings, or amendments that will further any of the purposes
in clauses (1) to (5).
Subd. 3. Grant
eligibility. Any owner or
lessee of farmland may apply for a grant under this section. Local government units, including cities,
towns, counties, soil and water conservation districts, Tribal Nations, and joint
powers boards, are also eligible for a grant.
A local government unit that receives a grant for equipment or
technology must make those purchases available for use by the public.
Sec. 10. Minnesota Statutes 2022, section 18B.01, subdivision 2b, is amended to read:
Subd. 2b. Bee
owner. "Bee owner" means a
person who owns an apiary a bee colony or colonies.
Sec. 11. Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to read:
Subd. 2c. Bee
kill incident. "Bee kill
incident" means an acute pesticide poisoning of a bee colony or colonies
located within one-half mile of each other at a single time point.
Sec. 12. Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to read:
Subd. 18a. Pesticide-treated
seed. "Pesticide-treated
seed" means seed that has a pesticide directly applied to the seed before
planting and is classified by the United States Environmental Protection Agency
as a treated article under Code of Federal Regulations, title 40, section
152.25(a), and exempt from regulation under the federal Insecticide, Fungicide,
and Rodenticide Act.
Sec. 13. Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to read:
Subd. 30b. Systemic
pesticide. "Systemic
pesticide" means a pesticide designed to be absorbed by plants and
translocated throughout plant tissue. Systemic
pesticides include:
(1) acetamiprid,
dinotefuran, clothianidin, thiamethoxam, imidacloprid, nitenpyram, thiacloprid,
fipronil, flupyradifurone, sulfoxaflor, cyantraniliprole, or
chlorantraniliprole; and
(2) any other pesticide
determined by the commissioner to be a systemic pesticide, including any
chemical belonging to the neonicotinoid or anthranilic diamide class.
Sec. 14. Minnesota Statutes 2022, section 18B.03, subdivision 1, is amended to read:
Subdivision 1. Administration by commissioner. The commissioner shall administer, implement, and enforce this chapter and the Department of Agriculture is the lead state agency for the regulation of pesticides and pesticide‑treated seed. The commissioner has the sole regulatory authority over the terrestrial application of pesticides, including, but not limited to, the application of pesticides to agricultural crops, structures, and other nonaquatic environments. Except as provided in subdivision 3, a state agency other than the Department of Agriculture shall not regulate or require permits for the terrestrial or nonaquatic application of pesticides.
Sec. 15. Minnesota Statutes 2022, section 18B.04, is amended to read:
18B.04 PESTICIDE IMPACT ON ENVIRONMENT.
(a) The commissioner shall:
(1) determine the impact of pesticides and pesticide-treated seed on the environment, including the impacts on surface water and groundwater in this state;
(2) develop best management practices involving pesticide or pesticide-treated seed distribution, storage, handling, use, and disposal; and
(3) cooperate with and assist other state agencies and local governments to protect public health, pollinators, and the environment from harmful exposure to pesticides.
(b) The commissioner may assemble a group of experts under section 16C.10, subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group of experts may include representatives from local, state, and federal agencies; academia, including the University of Minnesota; the state pollinator bank; or other professionals as deemed necessary by the commissioner. The amount necessary for the purposes of this paragraph, not to exceed $100,000 per fiscal year, is appropriated from the pesticide regulatory account in section 18B.05.
Sec. 16. Minnesota Statutes 2022, section 18B.051, is amended to read:
18B.051 POLLINATOR RESEARCH ACCOUNT.
Subdivision 1. Account
established. A pollinator 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.:
(1) the identification
and establishment of habitat beneficial to pollinators;
(2) the development and
promotion of science-based best management practices;
(3) the development and
promotion of practices that can reduce the effects of pesticides on
pollinators;
(4) the effects of seed
treatments on pollinators; and
(5) the development and
promotion of integrated pest management, including pest economic thresholds.
The University of Minnesota must select
projects in consultation with the Minnesota Department of Agriculture.
Subd. 2. Expiration. This section expires July 1, 2025 2027.
Sec. 17. [18B.052]
SYSTEMIC PESTICIDE-TREATED SEED.
Subdivision 1. Systemic
pesticide-treated seed program. The
commissioner must develop a program for systemic pesticide-treated seed and do
the following:
(1) develop guidance on
appropriate use of systemic pesticide-treated seeds in Minnesota;
(2) collaborate with the
University of Minnesota and other interested parties to evaluate national and
international research on efficacy of seed treatment rates, scouting
techniques, pest pressures, economic thresholds, and planting or other
technology to determine their applicability to Minnesota-specific conditions;
(3) identify the
research needs and projects that may be funded to help identify the times and
locations where the use of systemic pesticide-treated seed would be effective
in addressing a pest problem in Minnesota, including but not limited to
consideration of cropping systems, pest pressures, soil types, geographic
location, and feasibility of alternatives to systemic pesticide treatments; and
(4) develop science-based
best management practices for situations where use of systemic
pesticide-treated seed is appropriate in Minnesota. This shall include a process for public
comment on proposed BMPs.
Subd. 2. Education
and outreach. The
commissioner shall, in coordination with the University of Minnesota and other
interested parties, develop and disseminate educational materials on best
management practices and other related information for the use of systemic
pesticide-treated seed and alternatives to the use of systemic pesticide‑treated
seed.
Subd. 3. Engagement. The commissioner may engage with and provide grants to the University of Minnesota and others in conducting research, demonstration projects, and developing recommended best management practices for the use of pesticide-treated seed.
Sec. 18. [18B.053]
PESTICIDE-TREATED SEED RESEARCH ACCOUNT.
A pesticide-treated seed
research account is established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner to provide grants to the University of Minnesota or other
parties for research related to the use of pesticide-treated seed and
alternatives to the use of pesticide-treated seed. Funding in the account may be used to:
(1) determine situations
where the use of pesticide-treated seed is necessary in Minnesota, including
but not limited to consideration of cropping systems, pest pressures, soil
types, geographic location, and feasibility of alternatives to systemic
pesticide treatments;
(2) evaluate nonchemical
pest prevention methods that may be used instead of pesticide-treated seed;
(3) develop
science-based best management practices for situations where use of systemic
pesticide-treated seed is appropriate in Minnesota; and
(4) develop and conduct demonstration, educational, and promotional activities for best management practices and other recommended practices related to the use, or minimization of the use, of pesticide-treated seed.
Sec. 19. Minnesota Statutes 2022, section 18B.055, is amended to read:
18B.055 COMPENSATION FOR BEES KILLED BY PESTICIDE; APPROPRIATION.
Subdivision 1. Compensation
required. (a) The commissioner must
compensate a person bee owner for an acute pesticide poisoning
resulting in the death of bees or loss of bee colonies owned by the person,
provided: bee owner.
(1) the person who
applied the pesticide cannot be determined;
(2) the person who
applied the pesticide did so in a manner consistent with the pesticide
product's label or labeling; or
(3) the person who
applied the pesticide did so in a manner inconsistent with the pesticide
product's label or labeling.
(b) Except as provided in
this section, the bee owner is entitled to the fair market value of the dead
bees and bee colonies losses as determined by the commissioner upon
recommendation by academic experts and bee keepers. In any fiscal year, A bee owner must
not be compensated for a claim that is less than $100 or compensated more than $20,000
for all eligible claims. $10,000
for a bee kill incident. A bee owner may
only make one claim for a single bee kill incident.
(c) A bee owner must not
be compensated more than $20,000 in a fiscal year for bee kill incidents.
(c) (d) To be
eligible for compensation under this section, the bee owner and the affected
apiary must be registered prior to the bee kill incident with a
commonly utilized pesticide registry program, as designated by the
commissioner.
Subd. 2. Applicator
responsible. In the event a
person applies a pesticide in a manner inconsistent with the pesticide
product's label or labeling requirements as approved by the commissioner and is
determined to have caused the acute pesticide poisoning of bees, resulting in
death or loss of a bee colony kept for commercial purposes, then the person so
identified must bear the responsibility of restitution for the value of the
bees to the owner. In these cases the
commissioner must not provide compensation as provided in this section.
Subd. 3. Claim form. Within three months of the commissioner making a determination of whether the death of bees or loss of bee colonies was caused by acute pesticide poisoning, the bee owner must file a claim on forms provided by the commissioner and available on the Department of Agriculture's website.
Subd. 4. Determination. The commissioner must determine whether the death of the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the pesticide applicator can be determined, and whether the pesticide applicator applied the pesticide product in a manner consistent with the pesticide product's label or labeling.
Subd. 5. Payments;
denial of compensation. (a) If
the commissioner determines the bee death or loss of bee colony was caused by
an acute pesticide poisoning and either the pesticide applicator cannot be
determined or the pesticide applicator applied the pesticide product in a
manner consistent with the pesticide product's label or labeling, the
commissioner may award compensation from the pesticide regulatory account. If the pesticide applicator can be determined
and the applicator applied the pesticide product in a manner inconsistent with
the product's label or labeling, the commissioner may collect a penalty from
the pesticide applicator sufficient to compensate the bee owner for the fair
market value of the dead bees and bee colonies losses, and must award the money
to the bee owner.
(b) (a) If the commissioner denies compensation claimed by a bee owner under this section, the commissioner must issue a written decision based upon the available evidence. The decision must include specification of the facts upon which the decision is based and the conclusions on the material issues of the claim. The commissioner must mail a copy of the decision to the bee owner.
(c) (b) A
decision to deny compensation claimed under this section is not subject to the
contested case review procedures of chapter 14, but may be reviewed upon 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 must mail a copy to the commissioner and set a time for hearing
within 90 days of the filing.
Subd. 6. Deduction from payment. The commissioner must reduce payments made under this section by any compensation received by the bee owner for dead bees and bee colonies losses as proceeds from an insurance policy or from another source.
Subd. 6a. Enhanced
penalty factor. If the
commissioner determines that a bee death or loss of bee colony was caused by
acute pesticide poisoning, is able to determine the pesticide applicator that
was responsible, and determines that the applicator applied the pesticide in a
manner inconsistent with the product's label or labeling, the commissioner may
add the amount that the bee owner received from the bee owner's claim to any
penalty amount assessed by the commissioner under any penalty actions against
the pesticide applicator under section 18D.315 or 18D.325.
Subd. 7. Appropriation. The amount necessary to pay claims under this section, not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory account in section 18B.05.
Sec. 20. [18B.075]
PESTICIDE-TREATED SEED.
A person may not use,
store, handle, distribute, or dispose of seed treated with pesticide in a
manner that:
(1) endangers humans,
food, livestock, fish, or wildlife; or
(2) will cause
unreasonable adverse effects on the environment.
Sec. 21. [18B.117]
REGISTRATION PROHIBITED.
The commissioner must
not register under section 18B.26 a pesticide product that contains a
perfluoroalkyl or polyfluoroalkyl substance as an active or inert ingredient.
EFFECTIVE DATE. This
section is effective July 1, 2024.
Sec. 22. Minnesota Statutes 2022, section 18C.425, subdivision 6, is amended to read:
Subd. 6. Payment of inspection fee. (a) The person who registers and distributes in the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall pay the inspection fee to the commissioner.
(b) The person licensed under section 18C.415 who distributes a fertilizer to a person not required to be so licensed shall pay the inspection fee to the commissioner, except as exempted under section 18C.421, subdivision 1, paragraph (b).
(c) The person responsible for
payment of the inspection fees for fertilizers, soil amendments, or plant
amendments sold and used in this state must pay an inspection fee of 39 64
cents per ton, and until June 30, 2024, an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a
minimum of $10 on all tonnage reports. Notwithstanding
section 18C.131, the commissioner must deposit all revenue from the additional
40 cents per ton fee in the agricultural fertilizer research and education
account in section 18C.80. Products sold
or distributed to manufacturers or exchanged between them are exempt from the
inspection fee imposed by this subdivision if the products are used exclusively
for manufacturing purposes.
(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant amendment, or soil amendment distribution amounts and inspection fees paid for a period of three years.
Sec. 23. Minnesota Statutes 2022, section 18H.02, is amended by adding a subdivision to read:
Subd. 15a. Live
plant dealer. "Live
plant dealer" means an entity who:
(1) raises, grows, or
propagates nursery stock for sale, outdoors or indoors;
(2) acquires and further
distributes nursery stock, including through landscaping or distribution with a
tree spade; or
(3) operates a business
in Minnesota selling nursery stock with or without taking ownership or handling
the nursery stock.
Sec. 24. Minnesota Statutes 2022, section 18H.03, subdivision 6, is amended to read:
Subd. 6. Dissemination
of information. The commissioner may
disseminate information among growers live plant dealers relative
to treatment of nursery stock in both prevention and elimination of attack by
plant pests and diseases.
Sec. 25. Minnesota Statutes 2022, section 18H.05, is amended to read:
18H.05 NURSERY CERTIFICATE REQUIREMENTS.
(a) No person may offer for
sale or distribute certified nursery stock as a nursery stock grower or live
plant dealer without first obtaining the appropriate nursery stock
certificate from the commissioner. The
commissioner may not issue a certificate to a person who does not sell
certified nursery stock. Certificates
are issued solely for these purposes and may not be used for other purposes.
(b) A certificate issued by the commissioner expires on December 31 of the year it is issued.
(c) A person required to be certified by this section must apply for a certificate or for renewal on a form furnished by the commissioner which must contain:
(1) the name and address of the applicant, the number of locations to be operated by the applicant and their addresses, and the assumed business name of the applicant;
(2) if other than an individual, a statement whether a person is a partnership, corporation, or other organization;
(3) the type of business to be operated and, if the applicant is an
agent, the principals the applicant represents; and
(4) source or sources of purchased nursery stock.
(d) No person may:
(1) falsely claim to be a
certified live plant dealer, grower, broker, or agent;
(2) make willful false statements when applying for a certificate; or
(3) sell or distribute
certified nursery stock to an uncertified nursery stock live plant
dealer who is required to be certified or nursery stock grower.
(e) Each application for a certificate must be accompanied by the appropriate certificate fee under section 18H.07.
(f) Certificates issued by the commissioner must be prominently displayed to the public in the place of business where certified nursery stock is sold or distributed.
(g) The commissioner may refuse to issue a certificate for cause.
(h) Each grower or live
plant dealer is entitled to one sales location under the certificate of
the grower or dealer. Each
additional sales location maintained by the person requires the payment of the
full certificate fee for each additional sales outlet.
(i) A grower who is also
a dealer is certified only as a grower for that specific site.
(j) (i) A
certificate is personal to the applicant and may not be transferred. A new certificate is necessary if the
business entity is changed or if the membership of a partnership is changed,
whether or not the business name is changed.
(k) (j) The
certificate issued to a live plant dealer or grower applies to
the particular premises named in the certificate. However, if prior approval is obtained from
the commissioner, the place of business may be moved to the other premises or
location without an additional certificate fee.
(l) (k) A
collector of nursery stock from the wild is required to obtain a dealer's
live plant dealer certificate from the commissioner and is subject to
all the requirements that apply to the inspection of nursery stock. All collected nursery stock must be labeled
as "collected from the wild."
Sec. 26. Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to read:
Subd. 3a. New
live plant dealer certificate. An
entity that was not distributing certified nursery stock for the past two full
calendar years is considered a new applicant for the basis of fee determination. A new live plant dealer must pay the
following fees:
(1) $50 fee for a live
plant dealer certificate that allows for one retail sales location. A $50 certificate is required for each
additional retail sales location; and
(2) a live plant dealer
growing nursery stock requires an inspection for certification of that nursery
stock prior to sale of the nursery stock and must be assessed an additional
charge of $100 plus $10 per acre up to 200 acres. Acreage to be certified should be rounded to
the nearest one acre. For the basis of
fee determination, "growing nursery stock" means the purchase of
seeds, seedlings, or small plants and the cultivation of the plants in fields
or containers in Minnesota for eventual sale, including cutting, splitting, and
propagating plants.
Sec. 27. Minnesota Statutes 2022, section 18H.07, is amended by adding a subdivision to read:
Subd. 3b. Live
plant dealer renewal certificate. (a)
A renewal certificate is for a live plant dealer that has had a certificate in
at least one of the past two full calendar years. A live plant dealer must pay an annual fee
based on the following criteria:
(1) a $50 fee for a live
plant dealer certificate that allows for one retail sales location. A $50 certificate is required for each
additional retail sales location;
(2) a fee of gross
annual purchases of certified nursery stock as noted in the table below with
the intent to resell in the same year. These
are plants that are watered and maintained only for the purposes of keeping the
plants alive. Gross annual purchases are
calculated for nursery stock purchases from January 1 through December 31 of
the most recent certificate year according to the following table;
Purchases |
Fee |
|
$0 |
to $3,000 |
$0 |
$3,001 |
to $10,000 |
$50 |
$10,001 |
to $20,000 |
$100 |
$20,001 |
to $50,000 |
$225 |
$50,001 |
to $100,000 |
$425 |
$100,001 |
to $150,000 |
$600 |
$150,001 |
to $200,000 |
$750 |
$200,001 |
to $300,000 |
$975 |
$300,001 |
to $400,000 |
$1,200 |
$400,001 |
to $500,000 |
$1,250 |
$500,001 |
to $600,000 |
$1,350 |
$600,001 |
to $700,000 |
$1,400 |
$700,001 |
to $800,000 |
$1,500 |
$800,001 |
to $900,000 |
$1,600 |
$900,001 |
to $1,000,000 |
$1,700 |
$1,000,001 |
to $2,000,000 |
$1,800 |
$2,000,001 |
to $3,000,000 |
$1,900 |
$3,000,001 or
more |
|
.0005 x annual
purchases; and |
(3) a live plant dealer
growing nursery stock requires an inspection for certification of that nursery
stock prior to sale and must be assessed an additional charge of $100 plus $10
per acre up to 200 acres. Acreage to be
certified should be rounded to the nearest one acre. For the basis of fee determination,
"growing nursery stock" is the purchase of seeds, seedlings, or small
plants and the cultivation of plants in fields or containers in Minnesota for
eventual sale, including cutting, splitting, and propagating plants.
(b) In addition to the
fees in paragraph (a), a penalty of 25 percent of the fee due may be charged or
a portion thereof, if the fee is delinquent or any application for renewal is
not postmarked or electronically date stamped by December 31 of the current
year.
(c) A live plant dealer
operating without a valid certificate must not offer nursery stock for sale or
sell nursery stock until a certificate is issued to the live plant dealer by
the commissioner and the live plant dealer has paid any applicable fees and
penalties in full.
Sec. 28. Minnesota Statutes 2022, section 18H.08, subdivision 2, is amended to read:
Subd. 2. Virus
disease-free certification. The
commissioner may provide special services such as virus disease-free
certification and other similar programs.
Participation by nursery stock growers live plant dealers
is voluntary. Plants offered for sale as
certified virus-free must be grown according to certain procedures in a manner
defined by the commissioner for the purpose of eliminating viruses and other
injurious disease or insect pests. The
commissioner shall collect reasonable fees from participating nursery stock
growers live plant dealers for services and materials that are
necessary to conduct this type of work.
Sec. 29. Minnesota Statutes 2022, section 18H.09, is amended to read:
18H.09 NURSERY STOCK CERTIFICATION REQUIREMENTS.
(a) All nursery stock
growing at sites identified by nursery stock dealers or nursery stock
growers live plant dealers and submitted for inspection must be
inspected by the commissioner within the previous 12 months prior to sale and
found apparently free from quarantine and regulated nonquarantine pests as well
as significantly dangerous or potentially damaging plant pests. The commissioner may waive a site inspection
under the following conditions:
(1) the nursery stock is not going to be sold within 12 months;
(2) the nursery stock will not be moved out of Minnesota; and
(3) the nursery site or stock is not subject to certification requirements associated with a state or federally regulated or quarantined plant pest.
All nursery stock originating from out of state and offered for sale in Minnesota must have been inspected by the appropriate state or federal agency during the previous 12 months and found free from quarantine and regulated nonquarantine pests as well as significantly dangerous or potentially damaging plant pests. A nursery stock certificate is valid from January 1 to December 31.
(b) Nursery stock must be accessible to the commissioner for inspection during regular business hours. Weeds or other growth that hinder a proper inspection are grounds to suspend or withhold a certificate or require a reinspection.
(c) Inspection reports
issued to growers live plant dealers must contain a list of the
plant pests found at the time of inspection.
Withdrawal-from-distribution orders are considered part of the
inspection reports. A withdrawal‑from-distribution
order must contain a list of plants withdrawn from distribution and the
location of the plants.
(d) The commissioner may post signs to delineate sections withdrawn from distribution. These signs must remain in place until the commissioner removes them or grants written permission to the grower to remove the signs.
(e) Inspection reports issued to live plant dealers must outline the violations involved and corrective actions to be taken including withdrawal-from-distribution orders which would specify nursery stock that could not be distributed from a certain area.
(f) Optional inspections of plants may be conducted by the commissioner upon request by any persons desiring an inspection. A fee as provided in section 18H.07 must be charged for such an inspection.
Sec. 30. Minnesota Statutes 2022, section 18H.13, subdivision 3, is amended to read:
Subd. 3. Reciprocal
agreements. The commissioner may
cooperate with and enter into reciprocal agreements with other states regarding
licensing and movement of nursery stock.
Reciprocal agreements with other states do not prevent the commissioner
from prohibiting the distribution in Minnesota of any nursery stock that fails
to meet minimum criteria for nursery stock of Minnesota certified growers,
dealers, or both live plant dealers.
An official directory of certified nurseries and related nursery
industry businesses from other states is acceptable in lieu of individual
nursery certificates.
Sec. 31. Minnesota Statutes 2022, section 18H.15, is amended to read:
18H.15 VIOLATIONS.
(a) A person who offers to distribute nursery stock that is uncertified, uninspected, or falsely labeled or advertised possesses an illegal regulated commodity that is considered infested or infected with harmful plant pests and subject to regulatory action and control. If the commissioner determines that the provisions of this section have been violated, the commissioner may order the destruction of all of the plants unless the person:
(1) provides proper phytosanitary preclearance, phytosanitary certification, or nursery stock certification;
(2) agrees to have the plants, plant materials, or nursery stock returned to the consignor; and
(3) provides proper documentation, certification, or compliance to support advertising claims.
(b) The plant owner is liable for all costs associated with a withdrawal-from-distribution order or the quarantine, treatment, or destruction of plants. The commissioner is not liable for actual or incidental costs incurred by a person due to the commissioner's actions. The commissioner must be reimbursed by the owner of the plants for the actual expenses incurred in carrying out a withdrawal-from-distribution order or the quarantine, treatment, or destruction of any plants.
(c) It is unlawful for a person to:
(1) misrepresent, falsify, or knowingly distribute, sell, advertise, or display damaged, mislabeled, misrepresented, infested, or infected nursery stock;
(2) fail to obtain a nursery certificate as required by the commissioner;
(3) fail to renew a nursery certificate, but continue business operations;
(4) fail to display a nursery certificate;
(5) misrepresent or falsify a nursery certificate;
(6) refuse to submit to a nursery inspection;
(7) fail to provide the cooperation necessary to conduct a successful nursery inspection;
(8) offer for sale uncertified plants, plant materials, or nursery stock;
(9) possess an illegal regulated commodity;
(10) violate or disobey a commissioner's order;
(11) violate a quarantine issued by the commissioner;
(12) fail to obtain phytosanitary certification for plant material or nursery stock brought into Minnesota;
(13) deface, mutilate, or destroy a nursery stock certificate, phytosanitary certificate, or phytosanitary preclearance certificate, or other commissioner mark, permit, or certificate;
(14) fail to notify the commissioner of an uncertified shipment of plants, plant materials, or nursery stock;
(15) transport uncertified plants, plant materials, or nursery stock in Minnesota; or
(16) sell nursery stock to
an uncertified nursery stock live plant dealer who is required to
be certified.
Sec. 32. Minnesota Statutes 2022, section 18K.04, subdivision 1, is amended to read:
Subdivision 1. Requirement;
issuance; presumption. (a) A person
must obtain a license from the commissioner before (1) growing industrial hemp for
commercial or research purposes, and (2) before processing
industrial hemp for commercial purposes, or (3) researching
industrial hemp.
(b) To obtain a license under paragraph (a), a person must apply to the commissioner in the form prescribed by the commissioner and must pay the annual registration and inspection fee established by the commissioner in accordance with section 16A.1285, subdivision 2.
(c) For a license to grow
industrial hemp for commercial or research purposes, the license
application must include the name and address of the applicant and the legal
description of the land area or areas where industrial hemp will be grown by
the applicant and any other information required under Code of Federal
Regulations, title 7, part 990.
(d) For a license to process
industrial hemp for commercial purposes, the license application must
include the name and address of the applicant, the legal description of the
processing location, and any other information required by the commissioner.
(e) A licensee is responsible for compliance with the license requirements irrespective of the acts or omissions of an authorized representative acting on behalf of the licensee.
(f) When an applicant has paid the fee and completed the application process to the satisfaction of the commissioner, the commissioner must issue a license which is valid until December 31 of the year of application.
(g) A person licensed under paragraph (a) to grow industrial hemp is presumed to be growing industrial hemp for commercial or research purposes.
Sec. 33. Minnesota Statutes 2022, section 18K.04, subdivision 2, is amended to read:
Subd. 2. Background check; data classification. The commissioner must require each first-time applicant for a license to submit to a background investigation conducted by the Bureau of Criminal Apprehension as a condition of licensure. Any first-time authorized representatives designated by the applicant must also submit to a background investigation. As part of the background investigation, the Bureau of Criminal Apprehension must conduct criminal history checks of Minnesota records and is authorized to exchange fingerprints with the United States Department of Justice, Federal Bureau of Investigation for the purpose of a criminal background check of the national files. The cost of the investigation must be paid by the applicant. Criminal history records provided to the commissioner under this section must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
Sec. 34. Minnesota Statutes 2022, section 18K.06, is amended to read:
18K.06 RULEMAKING.
(a) The commissioner shall
adopt rules governing the production, testing, processing, and licensing of
industrial hemp. Notwithstanding
section 14.125, the commissioner's authority to adopt these rules expires June
30, 2022. Notwithstanding the
two-year limitation for exempt rules under section 14.388, subdivision 1,
Minnesota Rules, chapter 1565, published in the State Register on August 16,
2021, is effective until August 16, 2025, or until permanent rules implementing
chapter 18K are adopted, whichever occurs first.
(b) Rules adopted under
paragraph (a) must include, but not be limited to, provisions
governing:
(1) the supervision and inspection of industrial hemp during its growth and harvest;
(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
(3) the use of background check results required under section 18K.04 to
approve or deny a license application; and
(4) any other provision or procedure necessary to carry out the purposes of this chapter.
(c) Rules issued under this section must be consistent with federal law regarding the production, distribution, and sale of industrial hemp.
Sec. 35. [18K.10]
HEMP FIBER PROCESSING EQUIPMENT GRANTS.
The commissioner must
award grants to licensed processors that increase the state's capacity to
process industrial hemp fiber. Grants
are limited to no more than $200,000 of processing equipment and reasonable
equipment installation costs per processing location. A licensed processor must match the grant
with other funding equal to at least 25 percent of the grant amount.
Sec. 36. Minnesota Statutes 2022, section 25.39, subdivision 1, is amended to read:
Subdivision 1. Amount of fee. (a) An inspection fee at the rate of 16 cents per ton must be paid to the commissioner on commercial feeds distributed in this state by the person who first distributes the commercial feed, except that:
(1) no fee need be paid on any feed ingredient in a customer formula feed that has been directly furnished by the customer; or
(2) no fee need be paid on a first distribution if made to a qualified buyer who, with approval from the commissioner, is responsible for the fee. Such license-specific tonnage-fee-exemption permits shall be issued on a calendar year basis to commercial feed licensees who distribute feed or feed ingredients outside the state, and who submit a $100 nonrefundable application fee and comply with rules adopted by the commissioner relative to record keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial feed tonnage distributed, and all other information which the commissioner may require so as to ensure that proper inspection fee payment has been made.
(b) In the case of pet food
or specialty pet food distributed in the state only in packages of ten pounds
or less, a distributor must register each product and submit a current label
for each product annually on forms provided by the commissioner,
accompanied by an annual application fee of $100 for each product in lieu of
the inspection fee, and within five business days, submit a current label
for each product upon the request of the commissioner. This annual fee must be received by the
commissioner on or before June 30 or postmarked on or before June 30. The inspection fee required by paragraph (a)
applies to pet food or specialty pet food distributed in packages exceeding ten
pounds.
(c) The minimum inspection fee is $75 per annual reporting period.
Sec. 37. Minnesota Statutes 2022, section 28A.08, is amended by adding a subdivision to read:
Subd. 4. Food
handler license account; appropriation.
A food handler license account is established in the agricultural
fund. Fees paid under subdivision 3 must
be deposited in this account. Money in
the account, including interest, is appropriated to the commissioner for
expenses relating to licensing and inspecting food handlers under chapters 28
to 34A or rules adopted under one of those chapters.
Sec. 38. Minnesota Statutes 2022, section 28A.082, subdivision 1, is amended to read:
Subdivision 1. Fees; application. (a) The fees for review of food handler facility floor plans under the Minnesota Food Code are based upon the square footage of the structure being newly constructed, remodeled, or converted. The fees for the review shall be:
square footage |
review fee |
0
- |
$200.00 |
1,000 - 4,999 |
$400.00 |
5,000
- 24,999 |
$ |
25,000
plus |
$ |
(b) The applicant must submit the required fee, review application, plans, equipment specifications, materials lists, and other required information on forms supplied by the department at least 30 days prior to commencement of construction, remodeling, or conversion. The commissioner may waive this fee after determining that the facility's principal mode of business is not the sale of food and that the facility sells only prepackaged foods.
(c) The fee for a
remodel of a licensed food establishment by the license holder is based on the
total square footage in paragraph (a) of the remodeled food preparation,
service, display, and storage areas only.
This paragraph does not apply to a retail food handler who is applying
for a new license that includes the conversion of an existing building or
structure that was previously licensed as a food establishment.
Sec. 39. Minnesota Statutes 2022, section 28A.09, is amended by adding a subdivision to read:
Subd. 3. Vending
machine inspection account; appropriation.
A vending machine inspection account is established in the
agricultural fund. Fees paid under
subdivision 1 must be deposited in this account. Money in the account, including interest, is
appropriated to the commissioner for expenses relating to identifying and
inspecting food vending machines under chapters 28 to 34A or rules adopted
under one of those chapters.
Sec. 40. Minnesota Statutes 2022, section 35.02, subdivision 1, is amended to read:
Subdivision 1. Members;
officers. The board has six 11
members appointed by the governor with the advice and consent of the senate,
four of whom are producers of livestock in the state and at least one of the
four livestock producers is also a member of a federally recognized Tribe located
in Minnesota, and two of whom are practicing veterinarians licensed in
Minnesota two at-large members, one member who is a member of a
federally recognized Tribe located in Minnesota, and eight regional members,
with no two regional members residing in the same congressional district. To the extent practicable, the governor's
appointments must achieve gender balance among the board membership. Members must be knowledgeable in animal
agriculture, animal health, or pets and companion animals, with at least two
members who represent the public and are not employed in agriculture,
veterinary medicine, the pet industry, or a related field. The commissioners of agriculture, natural
resources, and health, the dean of the College of Veterinary Medicine, and the
director of the Veterinary Diagnostic Laboratory of the University of Minnesota
may shall serve as consultants to the board without vote. Appointments to fill
unexpired terms must be made
from the classes to which the retiring members belong. The board shall elect a president and a
vice-president from among its members and. The governor shall appoint a veterinarian
licensed in Minnesota who is not a member to be its the board's
executive director for a term of one year and until a successor qualifies. The board shall set the duties of the
director.
EFFECTIVE DATE. This
section is effective July 1, 2023, and applies to appointments that occur on or
after that date.
Sec. 41. Minnesota Statutes 2022, section 35.05, is amended to read:
35.05 AUTHORITY OF STATE BOARD.
(a) The state board may quarantine or kill any domestic animal infected with, or which has been exposed to, a contagious or infectious dangerous disease if it is necessary to protect the health of the domestic animals of the state.
(b) The board may regulate or prohibit the arrival in and departure from the state of infected or exposed animals and, in case of violation of any rule or prohibition, may detain any animal at its owner's expense. The board may regulate or prohibit the importation of domestic animals which, in its opinion, may injure the health of Minnesota livestock.
(c) When the governor declares an emergency under section 35.0661, the board, through its executive director, may assume control of such resources within the University of Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the disease outbreak. The director of the laboratory and other laboratory personnel must cooperate fully in performing necessary functions related to the outbreak or threatened outbreak.
(d) The board may test or require tests of any bovine or cervidae in the state when the board deems it necessary to achieve or maintain bovine tuberculosis accredited free state or zone status under the regulations and laws administered by the United States Department of Agriculture.
(e) Notwithstanding section
3.3005, subdivision 2, the board may apply for, receive, and disburse federal
money made available to the state for animal disease response. All federal money received by the board for
this purpose must be deposited in the state treasury and, except as provided
in section 35.156, subdivision 2, is appropriated to the board for the
purposes for which it was received. By
January 15 each year, the board must report to the senate Committee on Finance,
the house of representatives Committee on Ways and Means, and the legislative
committees with jurisdiction over the board's operating budget regarding the
amount of federal money received and spent in the previous fiscal year under
this paragraph and the board's use of these funds.
Sec. 42. Minnesota Statutes 2022, section 41A.12, subdivision 4, is amended to read:
Subd. 4. Sunset. This section expires on June 30, 2025
2035.
Sec. 43. Minnesota Statutes 2022, section 41A.16, subdivision 1, is amended to read:
Subdivision 1. Eligibility
for participants on or before April 1, 2023. (a) A facility eligible for payment under
this section must source from Minnesota at least 80 percent of the biomass used
to produce an advanced biofuel, except that, if a facility is sited 50 miles or
less from the state border, biomass used to produce an advanced biofuel may be
sourced from outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from within a 100-mile radius of the facility or from within
Minnesota. The facility must be located
in Minnesota, must begin production at a specific location on or before April
1 June 30, 2023, and must not begin operating above 23,750 MMbtu of
quarterly advanced biofuel production before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding advanced biofuel production capacity,
or retrofitting existing capacity, as well as new companies and facilities. Production of conventional corn ethanol and
conventional biodiesel is not eligible. Eligible
advanced biofuel facilities must produce at least 1,500 MMbtu of advanced
biofuel quarterly.
(b) No payments shall be made for advanced biofuel production that occurs after June 30, 2035, for those eligible biofuel producers under paragraph (a).
(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility for payments under this section to an advanced biofuel facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Renewable chemical production for which payment has been received under section 41A.17, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.
(f) Biobutanol is eligible under this section.
EFFECTIVE DATE. This
section is effective retroactively from March 31, 2023.
Sec. 44. Minnesota Statutes 2022, section 41A.16, subdivision 2, is amended to read:
Subd. 2. Payment amounts; limits. (a) The commissioner shall make payments to eligible producers of advanced biofuel. The amount of the payment for each eligible producer's annual production is $2.1053 per MMbtu for advanced biofuel production from cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar, starch, oil, or animal fat at a specific location for ten years after the start of production.
(b) Total payments under
this section to an eligible biofuel producer in a fiscal year may not exceed
the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments under this section to all
eligible biofuel producers in a fiscal year may not exceed the amount necessary
for 17,100,000 MMbtu of biofuel production.
If the total amount for which all producers are eligible in a quarter
exceeds the amount available for payments, the commissioner shall make the
payments on a pro rata basis. An eligible
producer may reapply for payment of, and the commissioner must pay, the
difference between a claim for payment filed under subdivision 6 and the pro
rata amount received:
(1) until the full
amount of the original claim is paid; and
(2) subject to available
money appropriated for the express purpose of paying claims not otherwise paid.
(c) For purposes of this section, an entity that holds a controlling interest in more than one advanced biofuel facility is considered a single eligible producer.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2020, and applies to claims
filed after January 1, 2020.
Sec. 45. Minnesota Statutes 2022, section 41A.17, subdivision 1, is amended to read:
Subdivision 1. Eligibility
for participants on or before April 1, 2023. (a) A facility eligible for payment under
this section must source from Minnesota at least 80 percent of the biomass used
to produce a renewable chemical, except that, if a facility is sited 50 miles
or less from the state border, biomass used to produce a renewable chemical may
be sourced from outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from within a 100-mile radius of the facility or from within
Minnesota. The facility must be located
in Minnesota, must begin production at a specific location on or before April
1 June 30, 2023, and must not begin production of 250,000 pounds of
chemicals quarterly before January 1, 2015.
Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting existing capacity, as well as new companies and facilities. Eligible renewable chemical facilities must produce at least 250,000 pounds of renewable chemicals quarterly. Renewable chemicals produced through processes that are fully commercial before January 1, 2000, are not eligible.
(b) No payments shall be made for renewable chemical production that occurs after June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility for payments under this section to a renewable chemical facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Advanced biofuel production for which payment has been received under section 41A.16, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.
EFFECTIVE DATE. This
section is effective retroactively from March 31, 2023.
Sec. 46. Minnesota Statutes 2022, section 41A.17, subdivision 2, is amended to read:
Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make payments to eligible producers of renewable chemicals located in the state. The amount of the payment for each producer's annual production is $0.03 per pound of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, starch, oil, or animal fat, and $0.06 per pound of cellulosic-derived renewable chemical produced at a specific location for ten years after the start of production.
(b) An eligible facility producing renewable chemicals using agricultural cellulosic biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural biomass that is derived from perennial crop or cover crop biomass.
(c) Total payments under
this section to an eligible renewable chemical producer in a fiscal year may
not exceed the amount necessary for 99,999,999 pounds of renewable chemical
production. Total payments under this
section to all eligible renewable chemical producers in a fiscal year may not
exceed the amount necessary for 599,999,999 pounds of renewable chemical
production. If the total amount for
which all producers are eligible in a quarter exceeds the amount available for
payments, the commissioner shall make the payments on a pro rata basis. An eligible producer may reapply for
payment of, and the commissioner must pay, the difference between a claim for
payment filed under subdivision 5 and the pro rata amount received:
(1) until the full amount
of the original claim is paid; and
(2) subject to available
money appropriated for the express purpose of paying claims not otherwise paid.
(d) An eligible facility may blend renewable chemicals with other chemicals that are not renewable chemicals, but only the percentage attributable to renewable chemicals in the blended product is eligible to receive payment.
(e) For purposes of this section, an entity that holds a controlling interest in more than one renewable chemical production facility is considered a single eligible producer.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2020, and applies to claims
filed after January 1, 2020.
Sec. 47. Minnesota Statutes 2022, section 41A.18, subdivision 1, is amended to read:
Subdivision 1. Eligibility
for participants on or before April 1, 2023. (a) A facility eligible for payment under
this section must source from Minnesota at least 80 percent of the biomass used
for biomass thermal production, except that, if a facility is sited 50 miles or
less from the state border, biomass used for biomass thermal production may be
sourced from outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from within a 100-mile radius of the facility, or from
within Minnesota. Biomass must be from
agricultural or forestry sources. The
facility must be located in Minnesota, must have begun production at a specific
location on or before April 1 June 30, 2023, and must not begin
before July 1, 2015. Eligible facilities
include existing companies and facilities that are adding production capacity,
or retrofitting existing capacity, as well as new companies and facilities. Eligible biomass thermal production
facilities must produce at least 250 MMbtu of biomass thermal quarterly.
(b) No payments shall be made for biomass thermal production that occurs after June 30, 2035, for those eligible biomass thermal producers under paragraph (a).
(c) An eligible producer of biomass thermal production shall not transfer the producer's eligibility for payments under this section to a biomass thermal production facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Biofuel production for which payment has been received under section 41A.16, and renewable chemical production for which payment has been received under section 41A.17, are not eligible for payment under this section.
EFFECTIVE DATE. This
section is effective retroactively from March 31, 2023.
Sec. 48. Minnesota Statutes 2022, section 41A.18, subdivision 2, is amended to read:
Subd. 2. Payment amounts; bonus; limits; blending. (a) The commissioner shall make payments to eligible producers of biomass thermal located in the state. The amount of the payment for each producer's annual production is $5.00 per MMbtu of biomass thermal production produced at a specific location for ten years after the start of production.
(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural biomass that is derived from perennial crop or cover crop biomass.
(c) Total payments under
this section to an eligible thermal producer in a fiscal year may not exceed
the amount necessary for 30,000 MMbtu of thermal production. Total payments under this section to all
eligible thermal producers in a fiscal year may not exceed the amount necessary
for 150,000 MMbtu of total thermal production.
If the total amount for which all producers are eligible in a quarter
exceeds the amount available for payments, the commissioner shall make the
payments on a pro rata basis. An
eligible producer may reapply for payment of, and the commissioner must pay,
the difference between a claim for payment filed under subdivision 5 and the
pro rata amount received:
(1) until the full
amount of the original claim is paid; and
(2) subject to available
money appropriated for the express purpose of paying claims not otherwise paid.
(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass thermal production facility, but only the percentage attributable to biomass meeting the cellulosic forestry biomass requirements or agricultural cellulosic biomass sourcing plan is eligible to receive payment.
(e) When a facility is eligible due to adding production capacity or retrofitting existing capacity, the entire amount of biomass meeting the cellulosic forestry biomass requirements or agricultural cellulosic biomass sourcing plan is assumed to have been used for the biomass thermal production from the added or retrofitted production capacity.
(f) For purposes of this section, an entity that holds a controlling interest in more than one biomass thermal production facility is considered a single eligible producer.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2020, and applies to claims
filed after January 1, 2020.
Sec. 49. Minnesota Statutes 2022, section 41A.19, is amended to read:
41A.19 REPORT; INCENTIVE PROGRAMS.
By January 15 each year,
the commissioner shall report on the incentive programs under sections 41A.16,
41A.17, 41A.18, 41A.20, and 41A.21 to the legislative committees with
jurisdiction over environment policy and finance and agriculture policy
and finance. The report shall include
information on production and incentive expenditures under the programs.,
as well as the following information that the commissioner must require of each
producer who receives a payment during the reporting period:
(1) the producer's
business structure;
(2) the name and address
of the producer's parent company, if any;
(3) a cumulative list of
all financial assistance received from all public grantors for the project;
(4) goals for the number
of jobs created and progress in achieving these goals, which may include
separate goals for the number of part-time or full-time jobs, or, in cases
where job loss is specific and demonstrable, goals for the number of jobs
retained;
(5) equity hiring goals
and progress in achieving these goals;
(6) wage goals and
progress in achieving these goals for all jobs created or maintained by the
producer;
(7) board member and
executive compensation;
(8) evidence of
compliance with environmental permits;
(9) the producer's
intended and actual use of payments received from the commissioner; and
(10) if applicable, the
latest financial audit opinion statement produced by a certified public
accountant in accordance with standards established by the American Institute
of Certified Public Accountants.
Sec. 50. Minnesota Statutes 2022, section 223.16, is amended by adding a subdivision to read:
Subd. 3c. Failure. "Failure" means a
determination by the commissioner that a grain buyer or public grain warehouse
operator has failed to pay for delivered grain, breached a contract, breached
more than one contract, or failed to redeliver stored grain to a producer.
Sec. 51. Minnesota Statutes 2022, section 223.17, subdivision 7, is amended to read:
Subd. 7. Action
on a bond Breach of contract.
A producer claiming to be damaged by a breach of a contract for the
purchase of grain by a licensed grain buyer may file a written claim
with the commissioner. The claim must
state the facts constituting the claim. The
claim must be filed with the commissioner within 180 days of the breach of the
contract. If a claim is valid, the
commissioner may immediately suspend the license, in which case the licensee
shall surrender the license to the commissioner. Within 15 days the licensee may request an
administrative hearing subject to chapter 14 to determine whether the license
should be revoked. If no request is made
within 15 days, the commissioner shall revoke the license.
Sec. 52. Minnesota Statutes 2022, section 223.17, subdivision 7a, is amended to read:
Subd. 7a. Bond
requirements; claims. For
entities licensed under this chapter and chapter 232, the bond requirements and
claims actions against the bond are governed under section 232.22,
subdivision 6a 223.24, subdivision 13.
Sec. 53. Minnesota Statutes 2022, section 223.175, is amended to read:
223.175 WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS; FORM.
A written confirmation
required under section 223.177, subdivision 2, and a written voluntary
extension of credit contract must include those items prescribed by the
commissioner by rule. A contract shall
include a statement of the legal and financial responsibilities of grain buyers
and sellers established in this chapter.
A contract shall also include the following statement in not less than
ten point, all capital type, framed in a box with space provided for the
seller's signature: "THIS CONTRACT
CONSTITUTES A VOLUNTARY EXTENSION OF CREDIT.
THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S BOND MAY NOT
BE COVERED COMPLETELY BY THE GRAIN INDEMNITY ACCOUNT." If a written contract is provided at the time
the grain is delivered to the grain buyer, the seller shall sign the contract
in the space provided beneath the statement.
A transaction that does not meet the provisions of a voluntary extension
of credit, including the issuance and signing of a voluntary extension of
credit contract, is a cash sale.
Sec. 54. Minnesota Statutes 2022, section 223.19, is amended to read:
223.19 RULES.
The commissioner may make
rules pursuant to chapter 14 to carry out the provisions of sections 223.15 to 223.23
223.24.
Sec. 55. [223.24]
GRAIN INDEMNITY ACCOUNT.
Subdivision 1. Establishment. The grain indemnity account is
established under the direction and control of the commissioner of agriculture. The grain indemnity account shall consist of
grain indemnity premiums, money from any other source, and interest.
Subd. 2. Account;
appropriation. (a) A grain
indemnity account is established in the agricultural fund. Money in the grain indemnity account,
including interest, is appropriated to the commissioner to pay valid claims and
to administer this section.
(b) The commissioner
shall direct payments from the grain indemnity account only for the following
purposes:
(1) the payment of valid
claims;
(2) the payment of grain
indemnity premium refunds;
(3) the payment of
administrative expenses under paragraph (c);
(4) the payment of legal
fees and legal expenses under subdivision 7; or
(5) the payment of a
trustee appointed under subdivision 6.
(c) The commissioner
shall allocate money from the grain indemnity account to a separate
administrative expenses account to pay or reimburse the agency for grain
indemnity account expenses. Administrative
expenses under this paragraph include the actual cost of processing payments
and refunds, enforcement, record keeping, ordinary management and investment
fees connected with the operation of the grain indemnity account, and legal
expenses.
Subd. 3. Eligibility. A producer is eligible to receive a
grain indemnity payment from the commissioner if the producer sold grain to a
grain buyer as defined in this chapter or stored grain with a public grain
warehouse operator under chapter 232 and the producer is damaged by the grain
buyer's or public grain warehouse operator's failure to pay for or redeliver
grain.
Subd. 4. Application. (a) A producer asserting eligibility
under subdivision 3 must file a completed claim with the commissioner. The producer must state the facts
constituting the claim and all other information required by the commissioner.
(b) Upon receiving a
claim, the commissioner must promptly determine the validity of the claim and
notify the claimant of the commissioner's determination.
(c) An aggrieved party
may appeal the commissioner's determination by requesting, within 15 days, that
the commissioner initiate a contested case proceeding under chapter 14.
Subd. 5. Payment
limitation. (a) For each
failure as defined by section 223.16, subdivision 3c, the commissioner must pay
the eligible producer:
(1) the amount equal to
the value of the grain sold on cash sale, grain assigned to warehouse receipt,
or grain assigned to open storage less than 180 days from the deposit;
(2) the amount equal to
the value of grain sold up to $300,000, or the lesser of $750,000 or 75 percent
of the amount owed to the seller for a contract in excess of $300,000 for a
deferred or delayed payment contract for which a price has been established
when the contract originated within 120 days of the breach of contract;
(3) the lesser of
$750,000 or 75 percent of the amount owed to the seller for a voluntary
extension of credit contract for which no price has been established when the
contract originated within 180 days of the breach of contract;
(4) the lesser of $500,000 or
50 percent for an open storage assignment or a voluntary extension of credit contract when the open storage assignment or
contract originated between 181 days and 18 months from the failure; or
(5) the lesser of
$250,000 or 25 percent for an open storage assignment or a voluntary extension
of credit contract when the open storage assignment or contract originated
between 19 months and 36 months from the failure.
(b) Claims filed more
than 36 months from the failure are not eligible for payment.
(c) For the purposes of
this subdivision, multiple breaches of contract with a single entity constitute
one failure.
(d) If a grain buyer
holds both a Minnesota grain buyer license, as defined in chapter 223, and a
license with the United States Department of Agriculture (USDA) under the
United States Warehouse Act, a seller may only file a claim with the grain
indemnity account if the seller sold grain as a cash sale or under a voluntary
extension of credit contract. The
commissioner must deny any claims for stored grain from a seller that holds
both a Minnesota grain buyer license and a license with the USDA under the
United States Warehouse Act.
(e) If valid claims
exceed the amount of money available in the grain indemnity account, the
commissioner must pay claims to producers in the order that the claims were
received. When additional money becomes
available, the commissioner must resume issuing grain indemnity payments to
each eligible producer until each producer receives the maximum amount payable
under paragraph (a).
(f) If the grain
indemnity account balance is insufficient to pay refunds under subdivision 11
and valid claims exist, once money is deposited into the grain indemnity
account, the commissioner must issue pending refunds for grain indemnity
premium payments before issuing payments to claimants.
Subd. 6. Court
order. (a) The commissioner
may apply to a district court for an order appointing a trustee or receiver to
manage and supervise the operations of a grain buyer or public grain warehouse
operator in default. The commissioner
may participate in any resulting court proceeding as an interested party.
(b) The commissioner may recover the cost of the appointed trustee using
money appropriated under subdivision 2.
Subd. 7. Debt
obligation; subrogated claim. (a)
Money paid by the commissioner to satisfy a valid claim constitutes a debt
obligation of the grain buyer or public grain warehouse operator in default. The commissioner may take action against the
grain buyer or public grain warehouse operator to recover the amount of any
claim payment plus reasonable costs, attorney fees, and interest computed at
the rate provided in section 270C.40. The
commissioner must deposit any amount recovered under this subdivision in the
grain indemnity account.
(b) As a condition of
payment from the commissioner, a producer must subrogate the producer's
interest in a voluntary extension of credit contract to the commissioner in an
amount equal to any claim payment or payments that the producer received under
this section.
(c) The commissioner may
recover any debt to the grain indemnity account from a member of the board or
management who acted negligently or fraudulently.
Subd. 8. Grain
indemnity premiums. (a)
Except as provided in subdivision 10, producers of grain must be charged a
grain indemnity premium as determined and published by the commissioner not to
exceed 0.2 percent of the price on all marketed grain that is sold to a grain
buyer as defined in chapter 223.
(b) The grain indemnity
premiums required under this section are in addition to any other fees or
assessments required by law.
Subd. 9. Collection and submission of grain indemnity premiums. (a) Each producer must pay to the commissioner a grain indemnity premium of not more than 0.2 percent of the net proceeds from all grain sold by the producer to a grain buyer purchasing grain in Minnesota. When grain is sold to a grain buyer, the grain buyer must deduct the grain indemnity premium from the proceeds of the sale and pay the grain indemnity premium to the commissioner on behalf of the producer.
(b) When purchasing grain from a producer, a grain buyer must deduct the grain indemnity premium described in paragraph (a) from the proceeds of the sale and notify the producer of the amount of the deduction in writing. The grain buyer must forward the grain indemnity premium to the commissioner for a deposit into the grain indemnity account on behalf of the producer as described in this subdivision.
(c) A grain buyer must
clearly indicate the grain indemnity premiums collected under paragraph (b) in
the grain buyer's books and records. A
grain buyer must retain books and records containing the grain indemnity
premiums for at least three years. A
grain buyer must make the grain buyer's books and records available for
inspection by the commissioner during regular business hours. The department must take steps reasonably
necessary to verify the accuracy of the grain indemnity premiums as recorded in
the grain buyer's books and records. Any
record or portion thereof seized or copied by the commissioner is private or
nonpublic data as provided in section 13.02, except that the commissioner may
disclose this data to aid in the law enforcement process.
(d) A grain buyer must
submit grain indemnity premiums collected under paragraph (a) to the
commissioner for the purpose of financing or contributing to the financing of
the grain indemnity account by:
(1) January 31 for grain
indemnity premiums collected during the months of July, August, September,
October, November, and December; and
(2) July 31 for grain
indemnity premiums collected during the months of January, February, March,
April, May, and June.
Subd. 10. Amount
in grain indemnity account; basis for suspension and reinstatement of grain
indemnity premium collection. (a)
The grain indemnity premiums required under subdivision 8 must be collected
until the grain indemnity account contains more than $15,000,000, as of June 30
of any given year.
(b) Except as provided
in paragraph (c), after the grain indemnity account reaches $15,000,000, the
commissioner must not require the collection of additional grain indemnity
premiums until the amount in the grain indemnity account drops below $9,000,000. In a year when the commissioner determines
that the grain indemnity account is at or below $9,000,000, the commissioner
may reinstate the collection described in this section.
(c) The commissioner
shall announce the intention to collect the premiums described in this section
by May 1 with collection to begin July 1 until the grain indemnity account
contains at least $15,000,000. The
commissioner must notify the public of the commissioner's intent to reinstate
collection of additional grain indemnity premiums through publication in the
State Register and by notifying each licensee of the licensee's obligation to
collect premiums.
Subd. 11. Grain
indemnity refund; opt out. (a)
Subject to subdivision 9, a producer that has paid a grain indemnity premium
may receive a refund of that premium from the grain indemnity account by
submitting a written demand for a refund to the commissioner, delivered
personally or by first-class mail within 12 months after the producer paid the
grain indemnity premium.
(b) A producer must
submit a demand for a refund of a grain indemnity premium under paragraph (a)
on a demand for refund form developed by the commissioner. The commissioner must make the form available
to a licensee, producer, or member of the public upon request.
(c) If a producer is entitled
to a refund of a grain indemnity premium under this section, the commissioner
must pay the refund within 90 days of receiving the demand for a refund. If the grain indemnity account balance is insufficient
to pay refunds under this subdivision and valid claims exist, once money is
deposited into the grain indemnity account, the commissioner must issue pending
refunds for grain indemnity premium payments before issuing payments to
claimants.
(d) If the commissioner
announces grain indemnity premiums as required under subdivision 10 by June 30,
the commissioner must send a notice to each producer who requested a refund of
a grain indemnity premium during the previous three fiscal years. The notice must inform the producer of the
deadline for and method of submitting a demand for a refund to the commissioner
under paragraphs (a) and (b) and the method for reentering the grain indemnity
program under paragraph (e).
(e) A producer that
receives a refund of a grain indemnity premium under paragraph (a) is not
entitled to participate in the grain indemnity program or to receive any
payment under this section unless the producer reenters the grain indemnity
program by meeting all of the following conditions:
(1) the producer must
submit a request for reentry into the grain indemnity program to the
commissioner. The producer must submit
the request on the form required by the commissioner and must deliver the
request to the commissioner;
(2) the producer's
request is approved by the commissioner; and
(3) the producer must
pay into the grain indemnity account all grain indemnity premiums that were
refunded to the producer and interest on the refunds as determined by the
commissioner.
(f) A producer that
reenters the grain indemnity program under paragraph (e) is eligible to be
reimbursed for claims under the grain indemnity program for any breach of
contract that occurs at least 120 days after reentry.
(g) A producer is not
eligible for a refund of a grain indemnity premium under this section if the
producer has received payment from the grain indemnity account for a valid
claim within the preceding 36 months.
Subd. 12. Penalties;
enforcement action; costs and expenses.
(a) In addition to any other penalty or remedy provided by law, a
person who knowingly or intentionally commits any of the following is subject
to civil penalties under section 18J.10:
(1) refusing or failing
to collect any grain indemnity premiums as required under this section;
(2) refusing or failing
to pay to the commissioner any grain indemnity premiums collected under this
section;
(3) making a false
statement, representation, or certification, or knowingly failing to make a
required statement, representation, or certification in a record, report, or
other document required under this section or filed with the commissioner; or
(4) resisting,
preventing, impeding, or interfering with the commissioner in the performance
of the commissioner's duties under this section.
(b) In addition to the
civil penalty described in paragraph (a), the commissioner in an enforcement
action for a violation described in paragraph (a), clause (1) or (2), must
order the grain buyer to pay into the grain indemnity account any grain
indemnity premiums collected by the grain buyer that the grain buyer owes to
the grain indemnity account and may order the grain buyer to pay interest on
the amount that the grain buyer owes to the grain indemnity account.
Subd. 13. Grain
bonds; new license holders. (a)
Except as provided in paragraph (b), before the commissioner issues a grain
buyer or public grain warehouse operator license, a person who has not been
licensed to buy grain or operate a public grain warehouse in the previous
licensing period must file with the commissioner a grain bond in a penal sum of
$100,000. A grain bond must remain in
effect for the first three years of the license.
(b) A grain buyer who
purchases grain immediately upon delivery solely with cash; a certified check;
a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision if the grain buyer's gross annual purchases are $1,000,000 or
less.
(c) The commissioner may
require a supplemental bond in an amount prescribed by the commissioner based
on the financial statements required in section 223.17, subdivision 6.
(d) A grain bond must be on a form provided by the commissioner.
(e) A grain bond
required under paragraphs (a) and (c) must provide for the payment of any loss
caused by the grain buyer's failure to pay upon the owner's demand, including
loss caused by the grain buyer's failure to pay within the time required. The grain bond must be conditioned upon the
grain buyer being duly licensed. A grain
bond required under paragraphs (a) and (c) that is obtained by a public grain
warehouse operator must be conditioned that the public grain warehouse operator
issuing a grain warehouse receipt is liable to the depositor for the delivery
of the kind, grade, and net quantity of grain called for by the receipt. A grain bond must be conditioned upon the
operator being duly licensed. For those
entities licensed under this chapter, the entire grain bond must be available
to any claims against the grain bond filed under this chapter.
(f) A grain bond must
not be cumulative from one licensing period to the next. The maximum liability of the grain bond must
be the grain bond's face value for the licensing period.
(g) A grain bond must be
continuous until canceled. To cancel a
grain bond, a surety must provide 90 days' written notice of the grain bond's
termination date to the licensee and the commissioner.
(h) Upon the
commissioner's determination that a claim is valid, the surety for any claims
against the grain bond must make payments to the grain indemnity account.
EFFECTIVE DATE. This
section is effective July 1, 2023.
Sec. 56. Minnesota Statutes 2022, section 232.22, subdivision 5, is amended to read:
Subd. 5. Statement
of grain in storage; reports. (a)
All public grain warehouse operators must by February 15 of each year file with
the commissioner on a form approved by the commissioner a report showing the
annual average liability of all grain outstanding on grain warehouse receipts,
open storage, and grain stored for feed processing that occurred during the
preceding calendar year. This report
shall be used for the purpose of establishing the penal sum of the bond.
(b) Warehouse operators
that are at a maximum bond and want to continue at maximum bond do not need to
file this report.
(c) It is a violation of
this chapter for any public grain warehouse operator to fail to file the report
required in paragraph (a).
(d) (a) Every
public grain warehouse operator shall keep in a place of safety complete and
accurate records and accounts relating to any grain warehouse operated. The records shall reflect each commodity
received and shipped daily, the balance remaining in the grain warehouse at the
close of each business day, a listing of all unissued grain
warehouse receipts in the operator's possession, a record of all grain warehouse receipts issued which remain outstanding and a record of all grain warehouse receipts which have been returned for cancellation. Copies of grain warehouse receipts or other documents evidencing ownership of grain by a depositor, or other liability of the grain warehouse operator, shall be retained as long as the liability exists but must be kept for a minimum of three years.
(e) (b) Every
public grain warehouse operator must maintain in the grain warehouse at all
times grain of proper grade and sufficient quantity to meet delivery
obligations on all outstanding grain warehouse receipts.
Sec. 57. Laws 2022, chapter 95, article 2, section 29, subdivision 6, is amended to read:
Subd. 6. Expiration. This section expires June 30 December
31, 2024.
Sec. 58. REPORT
REQUIRED; FERAL PIGS AND MINK.
By February 15, 2024,
the commissioner of natural resources, in cooperation with the Board of Animal
Health and the commissioners of agriculture and health, must submit a report to
the chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture and environment and natural resources that:
(1) identifies the
responsibilities of the Board of Animal Health and the commissioners of natural
resources, health, and agriculture in managing feral pigs and mink;
(2) recommends any
clarifications or modifications to the responsibilities identified in clause
(1); and
(3) includes policy
recommendations for managing feral pigs and mink to further prevent negative
impacts on the environment and human health.
Sec. 59. REPORT
REQUIRED; GRAIN ADVISORY GROUP.
The commissioner of
agriculture must convene members of the Grain Advisory Group and develop
recommendations regarding bonding requirements for licensed grain buyers and
public grain warehouse operators to better protect farmers who sell and store
grain in this state. No later than
February 1, 2024, the commissioner must report recommendations to the
legislative committees with jurisdiction over agriculture. Participating stakeholders must be given an
opportunity to include written testimony in the commissioner's report.
Sec. 60. REPEALER.
Subdivision 1. Grain
buyers and warehouses. Minnesota
Statutes 2022, sections 223.17, subdivisions 4 and 8; and 232.22, subdivisions
4, 6, 6a, and 7, are repealed.
Subd. 2. Bioincentive
programs. Minnesota Statutes
2022, sections 41A.16, subdivision 7; 41A.17, subdivision 6; 41A.18,
subdivision 6; and 41A.21, subdivision 6, are repealed.
Subd. 3. Plants,
nurseries, and hemp. Minnesota
Statutes 2022, sections 18H.02, subdivisions 21, 22, and 23; 18H.07,
subdivisions 2 and 3; 18K.05; and 18K.09, are repealed.
Subd. 4. Emerging
farmers. Minnesota Statutes
2022, section 17.055, subdivision 2, is repealed.
Subd. 5. Federal
funds. Minnesota Statutes
2022, section 35.156, subdivision 2, is repealed.
EFFECTIVE DATE. This
section is effective July 1, 2023, except subdivision 1 is effective July 1,
2024.
ARTICLE 3
BROADBAND
Section 1. BROADBAND
DEVELOPMENT APPROPRIATIONS. |
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 "2024" and
"2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025,
respectively. "The first year"
is fiscal year 2024. "The second
year" is fiscal year 2025. "The
biennium" is fiscal years 2024 and 2025.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the
Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2024 |
2025 |
Sec. 2. DEPARTMENT
OF EMPLOYMENT AND ECONOMIC DEVELOPMENT |
$73,350,000 |
$50,350,000 |
(a) $350,000 each year is
for the Office of Broadband Development.
(b) $75,000,000 the first
year and $50,000,000 the second year are for transfer to the border-to-border
broadband fund account established in Minnesota Statutes, section 116J.396. Of the amount transferred each year,
$20,000,000 is for lower population density program grants under Minnesota
Statutes, section 116J.3952. This is a
onetime appropriation.
Sec. 3. Minnesota Statutes 2022, section 116J.395, subdivision 7, is amended to read:
Subd. 7. Limitation. (a) No grant awarded under this section may fund more than 50 percent of the total cost of a project.
(b) Grants awarded to a
single project under this section must not exceed $5,000,000 $10,000,000.
Sec. 4. [116J.3952]
LOWER POPULATION DENSITY GRANT PROGRAM.
Subdivision 1. Establishment. A lower population density grant program
is established in the Department of Employment and Economic Development. The purpose of the lower population density
grant program is to provide broadband service to unserved and underserved areas
of the state where a 50 percent match formula is not adequate to make a
business case for the extension of broadband facilities.
Subd. 2. Grants. Grants awarded under this section may
fund up to 75 percent of the total cost of a project and must otherwise adhere
to section 116J.395, subdivisions 1 to 6 and subdivision 7, paragraph (b).
Sec. 5. Minnesota Statutes 2022, section 116J.396, subdivision 2, is amended to read:
Subd. 2. Expenditures. Money in the account may be used only:
(1) for grant awards made
under sections 116J.395 and to 116J.3951 116J.3952,
including costs incurred by the Department of Employment and Economic
Development to administer that section;
(2) to supplement revenues raised by bonds sold by local units of government for broadband infrastructure development; or
(3) to contract for the collection of broadband deployment data from providers and the creation of maps showing the availability of broadband service.
Sec. 6. Laws 2022, chapter 95, article 4, section 2, is amended to read:
Sec. 2. LOWER POPULATION
DENSITY PILOT PROGRAM.
(a) The commissioner of employment and economic development must establish a pilot program to provide broadband service to unserved and underserved areas, as defined in Minnesota Statutes, section 116J.394, of the state where a 50 percent match formula is not adequate to make a business case for the extension of broadband facilities. Grants awarded under this section shall adhere to all other requirements of Minnesota Statutes, section 116J.395, subdivisions 1 to 6, and may fund up to 75 percent of the total cost of a project, notwithstanding Minnesota Statutes section 116J.395, subdivision 7. Grants awarded to a single project under this section may not exceed $10,000,000.
(b) The commissioner of employment and economic development may use up to $30,000,000 from the appropriations in sections 3 and 4 for the lower population density pilot program under paragraph (a).
(c) No later than December 31, 2023, the Office of Broadband Development must submit a report to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over broadband policy and finance analyzing the impacts of this section on the number and amounts of grants awarded under Minnesota Statutes, section 116J.395.
(d) This section expires
December 31, 2026.
ARTICLE 4
GRANTS MANAGEMENT
Section 1. FINANCIAL
REVIEW OF NONPROFIT GRANT RECIPIENTS REQUIRED.
Subdivision 1. Financial
review required. (a) Before
awarding a competitive, legislatively named, single‑source, or
sole-source grant to a nonprofit organization under this act, the grantor must
require the applicant to submit financial information sufficient for the
grantor to document and assess the applicant's current financial standing and
management. Items of significant concern
must be addressed with the applicant and resolved to the satisfaction of the
grantor before a grant is awarded. The
grantor must document the material requested and reviewed; whether the
applicant had a significant operating deficit, a deficit in unrestricted net
assets, or insufficient internal controls; whether and how the applicant
resolved the grantor's concerns; and the grantor's final decision. This documentation must be maintained in the
grantor's files.
(b) At a minimum, the
grantor must require each applicant to provide the following information:
(1) the applicant's most
recent Form 990, Form 990-EZ, or Form 990-N filed with the Internal Revenue
Service. If the applicant has not been
in existence long enough or is not required to file Form 990, Form 990-EZ, or
Form 990-N, the applicant must demonstrate to the grantor that the applicant is
exempt and must instead submit documentation of internal controls and the
applicant's most recent financial statement prepared in accordance with
generally accepted accounting principles and approved by the applicant's board
of directors or trustees or, if there is no such board, by the applicant's
managing group;
(2) evidence of registration
and good standing with the secretary of state under Minnesota Statutes, chapter
317A, or other applicable law;
(3) unless exempt under
Minnesota Statutes, section 309.515, evidence of registration and good standing
with the attorney general under Minnesota Statutes, chapter 309; and
(4) if required under
Minnesota Statutes, section 309.53, subdivision 3, the applicant's most recent
audited financial statement prepared in accordance with generally accepted
accounting principles.
Subd. 2. Authority
to postpone or forgo; reporting required.
(a) Notwithstanding any contrary provision in this act, a grantor
that identifies an area of significant concern regarding the financial standing
or management of a legislatively named applicant may postpone or forgo awarding
the grant.
(b) No later than 30 days
after a grantor exercises the authority provided under paragraph (a), the
grantor must report to the chairs and ranking minority members of the
legislative committees with jurisdiction over the grantor's operating budget. The report must identify the legislatively
named applicant and the grantor's reason for postponing or forgoing the grant.
Subd. 3. Authority
to award subject to additional assistance and oversight. A grantor that identifies an area of significant
concern regarding an applicant's financial standing or management may award a
grant to the applicant if the grantor provides or the grantee otherwise obtains
additional technical assistance, as needed, and the grantor imposes additional
requirements in the grant agreement. Additional
requirements may include but are not limited to enhanced monitoring, additional
reporting, or other reasonable requirements imposed by the grantor to protect
the interests of the state.
Subd. 4. Relation to other law and policy. The requirements in this section are in addition to any other requirements imposed by law; the commissioner of administration under Minnesota Statutes, sections 16B.97 and 16B.98; or agency policy."
Delete the title and insert:
"A bill for an act relating to state government; establishing a budget for the Department of Agriculture, the Board of Animal Health, the Agricultural Utilization Research Institute, and the Office of Broadband Development; transferring money to the border-to-border broadband fund account; making policy and technical changes to agriculture provisions; modifying fees; creating accounts; requiring reports; providing civil penalties; appropriating money; amending Minnesota Statutes 2022, sections 17.055, subdivision 1, by adding subdivisions; 17.1016, subdivision 2; 17.116, subdivision 3; 17.133, subdivision 3; 18B.01, subdivision 2b, by adding subdivisions; 18B.03, subdivision 1; 18B.04; 18B.051; 18B.055; 18C.425, subdivision 6; 18H.02, by adding a subdivision; 18H.03, subdivision 6; 18H.05; 18H.07, by adding subdivisions; 18H.08, subdivision 2; 18H.09; 18H.13, subdivision 3; 18H.15; 18K.04, subdivisions 1, 2; 18K.06; 25.39, subdivision 1; 28A.08, by adding a subdivision; 28A.082, subdivision 1; 28A.09, by adding a subdivision; 35.02, subdivision 1; 35.05; 41A.12, subdivision 4; 41A.16, subdivisions 1, 2; 41A.17, subdivisions 1, 2; 41A.18, subdivisions 1, 2; 41A.19; 116J.395, subdivision 7; 116J.396, subdivision 2; 223.16, by adding a subdivision; 223.17, subdivisions 7, 7a; 223.175; 223.19; 232.22, subdivision 5; Laws 2021, First Special Session chapter 3, article 1, section 2, subdivision 5, as amended; Laws 2022, chapter 95, article 2, section 29, subdivision 6; article 4, section 2; proposing coding for new law in Minnesota Statutes, chapters 17; 18B; 18K; 116J; 223; repealing Minnesota Statutes 2022, sections 17.055, subdivision 2; 18H.02, subdivisions 21, 22, 23; 18H.07, subdivisions 2, 3; 18K.05; 18K.09; 35.156, subdivision 2; 41A.16, subdivision 7; 41A.17, subdivision 6; 41A.18, subdivision 6; 41A.21, subdivision 6; 223.17, subdivisions 4, 8; 232.22, subdivisions 4, 6, 6a, 7."
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
SECOND READING OF HOUSE BILLS
H. F. No. 24 was read for
the second time.
SECOND READING
OF SENATE BILLS
S. F. Nos. 10 and 1955
were read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Hudella, Dotseth, Knudsen, Bennett, Zeleznikar, Fogelman, Wiens, Engen, Joy, Newton, Myers, Scott, Bakeberg, Schultz and Swedzinski introduced:
H. F. No. 3257, A bill for an act relating to state government; requiring fiscal notes to include a review of certain information related to organizations named in legislation to receive a grant; requiring granting agencies to submit an annual report to the legislature on their grantmaking; amending Minnesota Statutes 2022, sections 3.98, subdivision 2, by adding a subdivision; 16B.98, by adding a subdivision.
The bill was read for the first time and referred to the Committee on State and Local Government Finance and Policy.
Daniels introduced:
H. F. No. 3258, A bill for an act relating to capital investment; appropriating money for municipal park development in the city of Faribault; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
Swedzinski introduced:
H. F. No. 3259, A bill for an act relating to game and fish; modifying muzzleloader provisions; amending Minnesota Statutes 2022, sections 97A.015, subdivision 51; 97B.031, subdivision 1.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.
Nash, Mekeland and Swedzinski introduced:
H. F. No. 3260, A bill for an act relating to energy; authorizing certificates of need for certain small modular reactors; amending Minnesota Statutes 2022, section 216B.243, subdivision 3b.
The bill was read for the first time and referred to the Committee on Climate and Energy Finance and Policy.
Freiberg introduced:
H. F. No. 3261, A bill for an act relating to taxation; imposing a gross receipts tax on certain digital products; appropriating money for payments to local governments; proposing coding for new law in Minnesota Statutes, chapter 295.
The bill was read for the first time and referred to the Committee on Taxes.
Joy and Knudsen introduced:
H. F. No. 3262, A bill for an act relating to capital investment; appropriating money for capital improvements and extensions of the Heartland Trail; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
Myers, Bakeberg, Davids and Witte introduced:
H. F. No. 3263, A bill for an act relating to transportation; taxes; establishing a temporary moratorium on imposition of the motor fuels tax; making transfers; appropriating money.
The bill was read for the first time and referred to the Committee on Transportation Finance and Policy.
Long moved that the House recess subject
to the call of the Chair. The motion
prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by Speaker pro tempore Wolgamott.
REPORT FROM THE COMMITTEE ON
RULES
AND LEGISLATIVE ADMINISTRATION
Long from the Committee on Rules and
Legislative Administration, pursuant to rules 1.21 and 3.33, designated the
following bills to be placed on the Calendar for the Day for Thursday, April
20, 2023 and established a prefiling requirement for amendments offered to the
following bills:
S. F. No. 1955; and H. F. Nos. 1587,
2292, 238 and 2497.
CALENDAR FOR THE DAY
H. F. No. 1937 was reported
to the House.
Newton moved to amend H. F. No. 1937, the second engrossment, as follows:
Page 3, line 25, delete "144,555,000" and insert "145,309,000"
Page 3, line 31, delete "55,045,000" and insert "55,799,000"
The
motion prevailed and the amendment was adopted.
Olson, B., moved to amend H. F. No. 1937, the second engrossment, as amended, as follows:
Page 5, delete lines 15 to 35 and insert:
"(i) Posttraumatic stress disorder treatment. $400,000 each year is for a grant to
the Mayo Clinic to provide posttraumatic stress disorder treatment to veterans
and current military service members. To
be eligible for services, a participant must be a resident of the state or
assigned to a permanent duty station in the state pursuant to their military
service. The base for this appropriation
in fiscal year 2026 and each year thereafter is $200,000.
The Mayo Clinic must report to the commissioner of veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance by January 15 of each year on the grant. The report must include a detailed explanation of how these appropriations were used, the number of veterans and service members served by the clinic, and a list and explanation of the services provided to participants."
Page 6, delete lines 1 to 6
Page 10, delete section 4
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion did not prevail and the amendment was not adopted.
H. F. No. 1937, A bill for an act relating to state government; establishing a budget for the Department of Military Affairs and the Department of Veterans Affairs; modifying veterans bonus program and Minnesota GI bill program provisions; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 190.19, subdivision 2a; 197.236, subdivision 9; 197.79, subdivisions 1, 2, by adding a subdivision; 197.791, subdivisions 5, 6, 7; Laws 2021, First Special Session chapter 12, article 1, section 37, subdivision 2.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 131 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Becker-Finn
Bennett
Berg
Bierman
Bliss
Brand
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Edelson
Elkins
Engen
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Garofalo
Gillman
Gomez
Greenman
Grossell
Hansen, R.
Hanson, J.
Harder
Hassan
Heintzeman
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Hudella
Hudson
Huot
Hussein
Igo
Jacob
Johnson
Jordan
Joy
Keeler
Klevorn
Knudsen
Koegel
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Mekeland
Moller
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, M.
Nelson, N.
Newton
Niska
Noor
Norris
Novotny
O'Driscoll
Olson, B.
Olson, L.
O'Neill
Pelowski
Pérez-Vega
Perryman
Petersburg
Pfarr
Pinto
Pryor
Pursell
Quam
Rehm
Reyer
Richardson
Robbins
Schomacker
Schultz
Scott
Sencer-Mura
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Urdahl
Vang
West
Wiener
Wiens
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Hortman
The
bill was passed, as amended, and its title agreed to.
H. F. No. 1830 was reported
to the House.
Klevorn moved to amend H. F. No. 1830, the second engrossment, as follows:
Page 33, line 18, after "officers" insert "and the heads of state and metropolitan agencies identified in section 15A.0815" and after the comma, insert "and to assist the legislature in establishing the compensation of"
Page 33, line 19, strike the comma and insert "and" and delete everything after the third "court" and insert a period
Page 33, strike line 20
Page 34, delete section 21 and insert:
"Sec. 21. Minnesota Statutes 2022, section 15A.082, subdivision 3, is amended to read:
Subd. 3. Submission
of recommendations and determinations.
(a) By April May 1 in each odd-numbered year, the
Compensation Council shall submit to the speaker of the house and the president
of the senate salary recommendations for constitutional officers,
justices of the supreme court, and judges of the court of appeals and district
court. The recommended salary for
each other office must take effect on the first Monday in January of the next
odd-numbered year, with no more than one adjustment, to take effect on January
1 of the year after that. The salary
recommendations for judges and constitutional officers take effect if an
appropriation of money to pay the recommended salaries is enacted after the
recommendations are submitted and before their effective date. Recommendations may be expressly modified or
rejected.
(b) The council shall also submit to the
speaker of the house and the president of the senate recommendations for the
salary ranges of the heads of state and metropolitan agencies, to be effective
retroactively from January 1 of that year if enacted into law. The recommendations shall include the
appropriate group in section 15A.0815 to which each agency head should be
assigned and the appropriate limitation on the maximum range of the salaries of
the agency heads in each group, expressed as a percentage of the salary of the
governor.
(b) By May 1 in each odd-numbered year,
the Compensation Council must prescribe salaries for constitutional officers,
and for the agency and metropolitan agency heads identified in section 15A.0815. The prescribed salary for each office must
take effect July 1 of that year and July 1 of the subsequent even-numbered year
and at whatever interval the council determines thereafter, unless the
legislature by law provides otherwise.
EFFECTIVE DATE. This section is effective the day following final enactment and applies to salary rates adopted by the council for fiscal year 2024 and thereafter."
Page 34, line 29, reinstate the stricken language and before "determinations" insert "and"
Page 164, line 27, delete "and a civil penalty"
Page 165, line 7, delete "or civil penalty"
Page 165, line 8, delete ", a"
Page 165, line 9, delete "civil penalty, or both,"
Page 165, line 11, after "file" insert "a report required by this section"
Page 165, line 16, reinstate the stricken language and delete "$2,000"
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Klevorn
amendment and the roll was called. There
were 71 yeas and 59 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bierman
Brand
Carroll
Cha
Clardy
Coulter
Curran
Edelson
Elkins
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Huot
Hussein
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Moller
Nadeau
Nelson, M.
Newton
Noor
Norris
Olson, L.
Pelowski
Pérez-Vega
Pinto
Pryor
Pursell
Rehm
Reyer
Richardson
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Wolgamott
Xiong
Youakim
Spk. Hortman
Those who voted in the negative were:
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Engen
Fogelman
Franson
Garofalo
Gillman
Grossell
Harder
Heintzeman
Hudella
Hudson
Igo
Jacob
Johnson
Joy
Knudsen
Koznick
Kresha
Mekeland
Mueller
Murphy
Myers
Nash
Nelson, N.
Niska
Novotny
O'Driscoll
Olson, B.
O'Neill
Perryman
Petersburg
Pfarr
Quam
Robbins
Schomacker
Schultz
Scott
Skraba
Swedzinski
Torkelson
Urdahl
West
Wiener
Wiens
Witte
Zeleznikar
The
motion prevailed and the amendment was adopted.
Harder moved to amend H. F. No. 1830, the second engrossment, as amended, as follows:
Page 34, line 18, after the period insert "The prescribed salary for each office must not exceed the annual rate of inflation as calculated based on the consumer price index for the year prior to the year in which the salary is scheduled to take effect."
A roll call was requested and properly
seconded.
The question was taken on the Harder
amendment and the roll was called. There
were 61 yeas and 70 nays as follows:
Those who voted in the affirmative were:
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Engen
Fogelman
Franson
Garofalo
Gillman
Grossell
Harder
Heintzeman
Hudella
Hudson
Igo
Jacob
Johnson
Joy
Knudsen
Koznick
Kresha
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, N.
Niska
Novotny
O'Driscoll
Olson, B.
O'Neill
Perryman
Petersburg
Pfarr
Quam
Robbins
Schomacker
Schultz
Scott
Skraba
Swedzinski
Torkelson
Urdahl
West
Wiener
Wiens
Witte
Zeleznikar
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bierman
Brand
Carroll
Cha
Clardy
Coulter
Curran
Edelson
Elkins
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Huot
Hussein
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Moller
Nelson, M.
Newton
Noor
Norris
Olson, L.
Pelowski
Pérez-Vega
Pinto
Pryor
Pursell
Rehm
Reyer
Richardson
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Wolgamott
Xiong
Youakim
Spk. Hortman
The
motion did not prevail and the amendment was not adopted.
Urdahl moved to amend H. F. No. 1830, the second engrossment, as amended, as follows:
Page 18, delete lines 9 and 10
Page 24, delete sections 1 to 4
Page 25, delete section 5
Page 54, delete section 52
Page 63, delete lines 14 to 16
Renumber the sections and subdivisions in sequence and correct the internal references
Amend the title accordingly
The
motion did not prevail and the amendment was not adopted.
Harder moved to amend H. F. No. 1830, the second engrossment, as amended, as follows:
Page 24, line 13, delete "May 11, 2024" and insert "upon approval by the voters at the referendum required by this act"
Page 24, line 19, delete "May 11, 2024" and insert "upon approval by the voters at the referendum required by this act"
Page 24, line 27, delete "May 11, 2024" and insert "upon approval by the voters at the referendum required by this act"
Page 25, line 8, delete "May 11, 2024" and insert "upon approval by the voters at the referendum required by this act"
Page 25, line 14, delete "May 11, 2024" and insert "upon approval by the voters at the referendum required by this act"
Page 54, line 25, before the period insert ", to be submitted for approval by the voters at the 2024 state general election"
Page 55, line 8, delete "serve as ex officio, nonvoting" and insert "also serve as full voting"
Page 55, line 19, after the period insert "All documents, testimony, and other work product of the commission, including video recordings of commission meetings, must be made available and accessible to the public on a public website."
Page 55, line 21, delete "adopt" and insert "recommend"
Page 55, line 29, delete "adopted" and insert "recommended"
Page 55, after line 32, insert:
"Subd. 6. Statewide
referendum required. (a) The
recommendations of the commission must be submitted to the voters at a special
referendum, held simultaneously with the 2024 state general election. The question submitted must be "Shall
the designs recommended by the State Emblems Redesign Commission be adopted as
the official flag and the official seal of the State of Minnesota?"
(b) If the majority of voters voting on
the question vote yes, the recommended designs take effect upon certification
of the results of the referendum election by the state canvassing board. If the majority of the voters voting on the
question do not vote yes, the recommended designs are rejected and do not take
effect.
(c) To the extent practicable, the special referendum must be conducted in the same manner as provided by law for the conduct of a ballot question proposing a state constitutional amendment."
Page
63, line 15, delete "May 11," and insert "upon
approval by the voters at the referendum required by this act"
Page 63, line 16, delete "2024"
A roll call was requested and properly
seconded.
The question was taken on the Harder
amendment and the roll was called. There
were 62 yeas and 69 nays as follows:
Those who voted in the affirmative were:
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Engen
Fogelman
Franson
Garofalo
Gillman
Grossell
Harder
Heintzeman
Hudella
Hudson
Hussein
Igo
Jacob
Johnson
Joy
Knudsen
Koznick
Kresha
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, N.
Niska
Novotny
O'Driscoll
Olson, B.
O'Neill
Perryman
Petersburg
Pfarr
Quam
Robbins
Schomacker
Schultz
Scott
Skraba
Swedzinski
Torkelson
Urdahl
West
Wiener
Wiens
Witte
Zeleznikar
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bierman
Brand
Carroll
Cha
Clardy
Coulter
Curran
Edelson
Elkins
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Huot
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Moller
Nelson, M.
Newton
Noor
Norris
Olson, L.
Pelowski
Pérez-Vega
Pinto
Pryor
Pursell
Rehm
Reyer
Richardson
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Wolgamott
Xiong
Youakim
Spk. Hortman
The
motion did not prevail and the amendment was not adopted.
Zeleznikar moved to amend H. F. No. 1830, the second engrossment, as amended, as follows:
Page 56, line 9, before "The" insert "(a)"
Page 56, after line 27, insert:
"(b) The task force must also study and prepare a report on the closure of nursing homes, and recommend policies to ensure adequate nursing home rates in order to maintain and stabilize access to nursing homes in communities across the state."
A roll call was requested and properly
seconded.
The question was taken on the Zeleznikar
amendment and the roll was called. There
were 61 yeas and 70 nays as follows:
Those who voted in the affirmative were:
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Engen
Fogelman
Franson
Garofalo
Gillman
Grossell
Harder
Heintzeman
Hudella
Hudson
Igo
Jacob
Johnson
Joy
Knudsen
Koznick
Kresha
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, N.
Niska
Novotny
O'Driscoll
Olson, B.
O'Neill
Perryman
Petersburg
Pfarr
Quam
Robbins
Schomacker
Schultz
Scott
Skraba
Swedzinski
Torkelson
Urdahl
West
Wiener
Wiens
Witte
Zeleznikar
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bierman
Brand
Carroll
Cha
Clardy
Coulter
Curran
Edelson
Elkins
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hemmingsen-Jaeger
Her
Hicks
Hill
Hollins
Hornstein
Howard
Huot
Hussein
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Liebling
Lillie
Lislegard
Long
Moller
Nelson, M.
Newton
Noor
Norris
Olson, L.
Pelowski
Pérez-Vega
Pinto
Pryor
Pursell
Rehm
Reyer
Richardson
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Wolgamott
Xiong
Youakim
Spk. Hortman
The motion did not prevail and the
amendment was not adopted.
West moved to amend H. F. No. 1830, the second engrossment, as amended, as follows:
Page 14, line 16, delete "52,558,000" and insert "52,241,000" and delete "52,856,000" and insert "52,539,000"
Page 14, delete lines 29 to 34
Page 15, delete lines 1 to 15
A roll call was requested and properly
seconded.
The question was taken on the West
amendment and the roll was called. There
were 61 yeas and 70 nays as follows:
Those who voted in the affirmative were:
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Daniels
Daudt
Davids
Davis
Demuth
Dotseth
Engen
Fogelman
Franson
Garofalo
Gillman
Grossell
Harder
Heintzeman
Hudella
Hudson
Igo
Jacob
Johnson
Joy
Knudsen
Koznick
Kresha
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson, N.
Niska
Novotny
O'Driscoll
Olson, B.
O'Neill
Perryman
Petersburg
Pfarr
Quam
Robbins
Schomacker
Schultz
Scott
Skraba
Swedzinski
Torkelson
Urdahl
West
Wiener
Wiens
Witte
Zeleznikar
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bierman
Brand
Carroll
Cha
Clardy
Coulter
Curran
Edelson
Elkins
Feist
Finke
Fischer
Frazier