Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1704 Compare Versions

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11 1.1 A bill for an act​
2-1.2 relating to state government; establishing a budget for the Department of​
3-1.3 Agriculture, the Board of Animal Health, the Agricultural Utilization Research​
4-1.4 Institute, and the Office of Broadband Development; making policy and technical​
5-1.5 changes to agricultural provisions; making policy and technical changes to​
6-1.6 broadband provisions; authorizing rulemaking; requiring reports; appropriating​
7-1.7 money; amending Minnesota Statutes 2024, sections 17.133, subdivision 2;​
8-1.8 18C.005, by adding a subdivision; 41A.16, subdivision 7; 326B.198, subdivisions​
9-1.9 2, 3; proposing coding for new law in Minnesota Statutes, chapter 18C.​
10-1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
11-1.11 ARTICLE 1​
12-1.12 APPROPRIATIONS​
13-1.13Section 1. AGRICULTURE APPROPRIATIONS.​
14-1.14 The sums shown in the columns marked "Appropriations" are appropriated to the agencies​
15-1.15and for the purposes specified in this article. The appropriations are from the general fund,​
16-1.16or another named fund, and are available for the fiscal years indicated for each purpose.​
17-1.17The figures "2026" and "2027" used in this article mean that the appropriations listed under​
18-1.18them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.​
19-1.19"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"​
20-1.20is fiscal years 2026 and 2027.​
21-1.21 APPROPRIATIONS​
22-1.22 Available for the Year​
23-1.23 Ending June 30​
24-2027​1.24 2026​
25-1.25Sec. 2. DEPARTMENT OF AGRICULTURE​
26-59,032,000​$​62,388,000​$​1.26Subdivision 1.Total Appropriation​
27-1​Article 1 Sec. 2.​
28-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​
2+1.2 relating to agriculture; appropriating money to the Board of Animal Health.​
3+1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
4+1.4 Section 1. APPROPRIATION; BOARD OF ANIMAL HEALTH.​
5+1.5 $6,700,000 in fiscal year 2026 and $6,834,000 in fiscal year 2027 are appropriated from​
6+1.6the general fund to the Board of Animal Health for the purposes of carrying out the board's​
7+1.7duties under Minnesota Statutes, chapter 35.​
8+1​Section 1.​
9+REVISOR BD/NS 25-03925​02/13/25 ​
2910 State of Minnesota​
3011 This Document can be made available​
3112 in alternative formats upon request​
3213 HOUSE OF REPRESENTATIVES​
3314 H. F. No. 1704​
3415 NINETY-FOURTH SESSION​
35-Authored by Anderson, P. H.; Lawrence and Gander​02/27/2025​
36-The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy​
37-Adoption of Report: Amended and re-referred to the Committee on Ways and Means​03/13/2025​ 2.1 Appropriations by Fund​
38-2027​2.2 2026​
39-58,633,000​61,989,000​2.3General​
40-399,000​399,000​2.4Remediation​
41-2.5The amounts that may be spent for each​
42-2.6purpose are specified in the following​
43-2.7subdivisions.​
44-2.8Subd. 2.Protection Services​
45-2.9 Appropriations by Fund​
46-2027​2.10 2026​
47-22,836,000​22,333,000​2.11General​
48-399,000​399,000​2.12Remediation​
49-2.13(a) $399,000 the first year and $399,000 the​
50-2.14second year are from the remediation fund for​
51-2.15administrative funding for the voluntary​
52-2.16cleanup program.​
53-2.17(b) $639,000 the first year and $639,000 the​
54-2.18second year are for the soil health financial​
55-2.19assistance program under Minnesota Statutes,​
56-2.20section 17.134. The commissioner may award​
57-2.21no more than $50,000 of the appropriation​
58-2.22each year to a single recipient. The​
59-2.23commissioner may use up to 6.5 percent of​
60-2.24this appropriation for costs incurred to​
61-2.25administer the program. Any unencumbered​
62-2.26balance does not cancel at the end of the first​
63-2.27year and is available in the second year.​
64-2.28Appropriations encumbered under contract on​
65-2.29or before June 30, 2027, for soil health​
66-2.30financial assistance grants are available until​
67-2.31June 30, 2029.​
68-2.32(c) $350,000 the first year and $350,000 the​
69-2.33second year are for compensation for​
70-2.34destroyed or crippled livestock under​
71-2​Article 1 Sec. 2.​
72-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 3.1Minnesota Statutes, section 3.737. The first​
73-3.2year appropriation may be spent to compensate​
74-3.3for livestock that were destroyed or crippled​
75-3.4during fiscal year 2025. If the amount in the​
76-3.5first year is insufficient, the amount in the​
77-3.6second year is available in the first year. The​
78-3.7commissioner may use up to $5,000 each year​
79-3.8to reimburse expenses incurred by university​
80-3.9extension educators to provide fair market​
81-3.10values of destroyed or crippled livestock. If​
82-3.11the commissioner receives federal money to​
83-3.12pay claims for destroyed or crippled livestock,​
84-3.13an equivalent amount of this appropriation​
85-3.14may be used to reimburse nonlethal prevention​
86-3.15methods performed by federal wildlife services​
87-3.16staff.​
88-3.17(d) $310,000 the first year and $310,000 the​
89-3.18second year are for compensation for crop​
90-3.19damage under Minnesota Statutes, section​
91-3.203.7371. If the amount in the first year is​
92-3.21insufficient, the amount in the second year is​
93-3.22available in the first year. The commissioner​
94-3.23may use up to $10,000 of the appropriation​
95-3.24each year to reimburse expenses incurred by​
96-3.25the commissioner or the commissioner's​
97-3.26approved agent to investigate and resolve​
98-3.27claims, as well as for costs associated with​
99-3.28training for approved agents. The​
100-3.29commissioner may use up to $40,000 of the​
101-3.30appropriation each year for grants to producers​
102-3.31for measures to protect stored crops from elk​
103-3.32damage. If the commissioner determines that​
104-3.33claims made under Minnesota Statutes, section​
105-3.343.737 or 3.7371, are unusually high, amounts​
106-3.35appropriated for either program may be​
107-3​Article 1 Sec. 2.​
108-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 4.1transferred to the appropriation for the other​
109-4.2program.​
110-4.3(e) $825,000 the first year and $825,000 the​
111-4.4second year are to replace capital equipment​
112-4.5in the Department of Agriculture's analytical​
113-4.6laboratory.​
114-4.7(f) $75,000 the first year and $75,000 the​
115-4.8second year are to support a meat processing​
116-4.9liaison position to assist new or existing meat​
117-4.10and poultry processing operations in getting​
118-4.11started, expanding, growing, or transitioning​
119-4.12into new business models.​
120-4.13(g) $420,000 the first year and $923,000 the​
121-4.14second year are for additional funding to​
122-4.15maintain the current level of service delivery​
123-4.16for programs under this subdivision.​
124-4.17(h) $1,000,000 the first year and $1,000,000​
125-4.18the second year are for grants to counties to​
126-4.19support county agricultural inspectors under​
127-4.20section 13. These are onetime appropriations.​
128-4.21The commissioner of agriculture may use up​
129-4.22to three percent of the appropriation each year​
130-4.23for administration.​
131-4.24(i) $850,000 the first year and $850,000 the​
132-4.25second year are for additional meat and poultry​
133-4.26inspection services. The commissioner is​
134-4.27encouraged to seek inspection waivers,​
135-4.28matching federal money, and offer more online​
136-4.29inspections for the purposes of this paragraph.​
137-4.30(j) $1,250,000 the first year and $1,250,000​
138-4.31the second year are appropriated to establish​
139-4.32and administer the biofertilizer innovation and​
140-4.33efficiency program. The commissioner may​
141-4.34use up to 6.5 percent of this appropriation for​
142-4​Article 1 Sec. 2.​
143-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 5.1costs incurred to administer the program.​
144-5.2Notwithstanding Minnesota Statutes, section​
145-5.316A.28, any unencumbered balance at the end​
146-5.4of fiscal year 2026 does not cancel and is​
147-5.5available until June 30, 2027.​
148-24,676,000​24,676,000​
149-5.6Subd. 3.Agricultural Marketing and​
150-5.7Development​
151-5.8(a) $150,000 the first year and $150,000 the​
152-5.9second year are to expand international trade​
153-5.10opportunities and markets for Minnesota​
154-5.11agricultural products.​
155-5.12(b) $634,000 the first year and $634,000 the​
156-5.13second year are for the continuation of the​
157-5.14dairy development and profitability​
158-5.15enhancement programs, including dairy​
159-5.16profitability teams and dairy business planning​
160-5.17grants under Minnesota Statutes, section​
161-5.1832D.30.​
162-5.19(c) The commissioner may use money​
163-5.20appropriated in this subdivision for annual​
164-5.21cost-share payments to resident farmers or​
165-5.22entities that sell, process, or package​
166-5.23agricultural products in Minnesota for the​
167-5.24costs of organic certification. The​
168-5.25commissioner may allocate these funds for​
169-5.26assistance to persons transitioning from​
170-5.27conventional to organic agriculture.​
171-5.28(d) $100,000 the first year and $100,000 the​
172-5.29second year are for mental health outreach and​
173-5.30support to farmers, ranchers, farm workers​
174-5.31and employees, and others in the agricultural​
175-5.32profession and for farm and farm worker​
176-5.33safety grant and outreach programs under​
177-5.34Minnesota Statutes, section 17.1195. Mental​
178-5.35health outreach and support may include a​
179-5​Article 1 Sec. 2.​
180-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 6.124-hour hotline, stigma reduction, and​
181-6.2education. Notwithstanding Minnesota​
182-6.3Statutes, section 16A.28, any unencumbered​
183-6.4balance does not cancel at the end of the first​
184-6.5year and is available in the second year. These​
185-6.6are onetime appropriations.​
186-6.7(e) $20,082,000 the first year and $20,082,000​
187-6.8the second year are for the agricultural growth,​
188-6.9research, and innovation program under​
189-6.10Minnesota Statutes, section 41A.12. Except​
190-6.11as provided in paragraph (f), the commissioner​
191-6.12may allocate this appropriation each year​
192-6.13among the following areas: (1) facilitating the​
193-6.14start-up, modernization, improvement, or​
194-6.15expansion of livestock operations, including​
195-6.16beginning and transitioning livestock​
196-6.17operations with preference given to robotic​
197-6.18dairy-milking equipment; (2) assisting​
198-6.19value-added agricultural businesses to begin​
199-6.20or expand, to access new markets, or to​
200-6.21diversify, including aquaponics systems, with​
201-6.22preference given to hemp fiber processing​
202-6.23equipment; (3) facilitating the start-up,​
203-6.24modernization, or expansion of other​
204-6.25beginning and transitioning farms, including​
205-6.26by providing loans under Minnesota Statutes,​
206-6.27section 41B.056; (4) sustainable agriculture​
207-6.28on-farm research and demonstration; (5) the​
208-6.29development or expansion of food hubs and​
209-6.30other alternative community-based food​
210-6.31distribution systems; (6) enhancing renewable​
211-6.32energy infrastructure and use; (7) crop​
212-6.33research, including basic and applied turf seed​
213-6.34research; (8) Farm Business Management​
214-6.35tuition assistance; (9) supporting the​
215-6.36commercialization of an innovative material​
216-6​Article 1 Sec. 2.​
217-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 7.1additive utilizing agricultural coproducts or​
218-7.2waste streams to produce fiber-based barrier​
219-7.3packaging to reduce perfluoroalkyl and​
220-7.4polyfluoroakyl substances (PFAS) and plastics​
221-7.5in packaging products; and (10) Good​
222-7.6Agricultural Practices and Good Handling​
223-7.7Practices certification assistance. The​
224-7.8commissioner may use up to 6.5 percent of​
225-7.9this appropriation for costs incurred to​
226-7.10administer the program.​
227-7.11(f) Of the amount appropriated for the​
228-7.12agricultural growth, research, and innovation​
229-7.13program in paragraph (e):​
230-7.14(1) $1,000,000 the first year and $1,000,000​
231-7.15the second year are for distribution in equal​
232-7.16amounts to each of the state's county fairs to​
233-7.17preserve and promote Minnesota agriculture;​
234-7.18(2) $3,000,000 the first year and $3,000,000​
235-7.19the second year are for incentive payments​
236-7.20under Minnesota Statutes, sections 41A.16,​
237-7.2141A.17, 41A.18, and 41A.20. Notwithstanding​
238-7.22Minnesota Statutes, section 16A.28, the first​
239-7.23year appropriation is available until June 30,​
240-7.242027, and the second year appropriation is​
241-7.25available until June 30, 2028. If this​
242-7.26appropriation exceeds the total amount for​
243-7.27which all producers are eligible in a fiscal​
244-7.28year, the balance of the appropriation is​
245-7.29available for other purposes under this​
246-7.30paragraph or paragraph (e);​
247-7.31(3) $4,500,000 the first year and $4,500,000​
248-7.32the second year are for grants that enable retail​
249-7.33petroleum dispensers, fuel storage tanks, and​
250-7.34other equipment to dispense biofuels to the​
251-7.35public in accordance with the biofuel​
252-7​Article 1 Sec. 2.​
253-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 8.1replacement goals established under​
254-8.2Minnesota Statutes, section 239.7911. A retail​
255-8.3petroleum dispenser selling petroleum for use​
256-8.4in spark ignition engines for vehicle model​
257-8.5years after 2000 is eligible for grant money​
258-8.6under this clause if the retail petroleum​
259-8.7dispenser has no more than 20 retail petroleum​
260-8.8dispensing sites and each site is located in​
261-8.9Minnesota. The grant money must be used to​
262-8.10replace or upgrade equipment that does not​
263-8.11have the ability to be certified for E25. A grant​
264-8.12award must not exceed $200,000 per station.​
265-8.13The commissioner must cooperate with biofuel​
266-8.14stakeholders in the implementation of the grant​
267-8.15program. The commissioner, in cooperation​
268-8.16with any economic or community development​
269-8.17financial institution and any other entity with​
270-8.18which the commissioner contracts, must​
271-8.19submit a report on the biofuels infrastructure​
272-8.20financial assistance program by January 15 of​
273-8.21each year to the chairs and ranking minority​
274-8.22members of the legislative committees and​
275-8.23divisions with jurisdiction over agriculture​
276-8.24policy and finance. The annual report must​
277-8.25include but not be limited to a summary of the​
278-8.26following metrics: (i) the number and types​
279-8.27of projects financed; (ii) the amount of dollars​
280-8.28leveraged or matched per project; (iii) the​
281-8.29geographic distribution of financed projects;​
282-8.30(iv) any market expansion associated with​
283-8.31upgraded infrastructure; (v) the demographics​
284-8.32of the areas served; (vi) the costs of the​
285-8.33program; and (vii) the number of grants to​
286-8.34minority- or female-owned businesses. The​
287-8.35base under this clause is $3,000,000 for fiscal​
288-8.36year 2028 and each year thereafter;​
289-8​Article 1 Sec. 2.​
290-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 9.1(4) $1,250,000 the first year and $1,250,000​
291-9.2the second year are for grants to facilitate the​
292-9.3start-up, modernization, or expansion of meat,​
293-9.4poultry, egg, and milk processing facilities. A​
294-9.5grant award under this clause must not exceed​
295-9.6$200,000. Any unencumbered balance at the​
296-9.7end of the second year does not cancel until​
297-9.8June 30, 2028, and may be used for other​
298-9.9purposes under this paragraph or paragraph​
299-9.10(e). The base under this clause is $250,000 in​
300-9.11fiscal year 2028 and each year thereafter;​
301-9.12(5) up to $1,294,000 the first year and up to​
302-9.13$1,294,000 the second year are for providing​
303-9.14more fruits, vegetables, meat, poultry, grain,​
304-9.15and dairy for children in school and early​
305-9.16childhood education settings, including, at the​
306-9.17commissioner's discretion, providing grants​
307-9.18to reimburse schools and early childhood​
308-9.19education and child care providers for​
309-9.20purchasing equipment and agricultural​
310-9.21products. Organizations must participate in​
311-9.22the National School Lunch Program or the​
312-9.23Child and Adult Care Food Program to be​
313-9.24eligible. Of the amount appropriated, $150,000​
314-9.25each year is for a statewide coordinator of​
315-9.26farm-to-institution strategy and programming.​
316-9.27The coordinator must consult with relevant​
317-9.28stakeholders and provide technical assistance​
318-9.29and training for participating farmers and​
319-9.30eligible grant recipients;​
320-9.31(6) up to $2,000,000 the first year and up to​
321-9.32$2,000,000 the second year are for urban​
322-9.33youth agricultural education or urban​
323-9.34agriculture community development;​
324-9​Article 1 Sec. 2.​
325-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 10.1(7) up to $1,000,000 the first year and up to​
326-10.2$1,000,000 the second year are for the good​
327-10.3food access program under Minnesota​
328-10.4Statutes, section 17.1017; and​
329-10.5(8) $200,000 the first year and $200,000 the​
330-10.6second year are for cooperative development​
331-10.7grants.​
332-10.8Notwithstanding Minnesota Statutes, section​
333-10.916A.28, any unencumbered balance does not​
334-10.10cancel at the end of the first year and is​
335-10.11available for the second year, and​
336-10.12appropriations encumbered under contract on​
337-10.13or before June 30, 2027, for agricultural​
338-10.14growth, research, and innovation grants are​
339-10.15available until June 30, 2028.​
340-10.16(g) The base for the agricultural growth,​
341-10.17research, and innovation program is​
342-10.18$17,582,000 in fiscal year 2028 and each year​
343-10.19thereafter.​
344-11,121,000​14,980,000​
345-10.20Subd. 4.Administration and Financial​
346-10.21Assistance​
347-10.22(a) $474,000 the first year and $474,000 the​
348-10.23second year are for payments to county and​
349-10.24district agricultural societies and associations​
350-10.25under Minnesota Statutes, section 38.02,​
351-10.26subdivision 1. Aid payments to county and​
352-10.27district agricultural societies and associations​
353-10.28must be disbursed no later than July 15 of each​
354-10.29year. These payments are the amount of aid​
355-10.30from the state for an annual fair held in the​
356-10.31previous calendar year.​
357-10.32(b) $500,000 the first year and $500,000 the​
358-10.33second year are for grants to the Minnesota​
359-10.34Agricultural Education and Leadership​
360-10​Article 1 Sec. 2.​
361-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 11.1Council for programs of the council under​
362-11.2Minnesota Statutes, chapter 41D.​
363-11.3(c) $2,000 the first year is for a grant to the​
364-11.4Minnesota State Poultry Association. This is​
365-11.5a onetime appropriation.​
366-11.6(d) $36,000 the first year is for a grant to the​
367-11.7Minnesota Livestock Breeders Association.​
368-11.8(e) $120,000 the first year is for a grant to the​
369-11.9Northern Crops Institute and may be used to​
370-11.10purchase equipment.​
371-11.11(f) $68,000 the first year is for a grant to the​
372-11.12Minnesota State Horticultural Society.​
373-11.13(g) $50,000 the first year is for a grant to the​
374-11.14Center for Rural Policy and Development.​
375-11.15(h) $150,000 the first year is for grants to the​
376-11.16Minnesota Turf Seed Council for basic and​
377-11.17applied research on: (1) the improved​
378-11.18production of forage and turf seed related to​
379-11.19new and improved varieties; and (2) native​
380-11.20plants, including plant breeding, nutrient​
381-11.21management, pest management, disease​
382-11.22management, yield, and viability. The​
383-11.23Minnesota Turf Seed Council may subcontract​
384-11.24with a qualified third party for some or all of​
385-11.25the basic or applied research. The Minnesota​
386-11.26Turf Seed Council must prepare a report​
387-11.27outlining the use of the grant money and​
388-11.28related accomplishments. No later than​
389-11.29January 15, 2027, the council must submit the​
390-11.30report to the chairs and ranking minority​
391-11.31members of the legislative committees and​
392-11.32divisions with jurisdiction over agriculture​
393-11.33finance and policy.​
394-11​Article 1 Sec. 2.​
395-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 12.1(i) $400,000 the first year is for grants to​
396-12.2GreenSeam for assistance to​
397-12.3agriculture-related businesses to support​
398-12.4business retention and development, business​
399-12.5attraction and creation, talent development​
400-12.6and attraction, and regional branding and​
401-12.7promotion. No later than December 1, 2026,​
402-12.8and December 1, 2027, GreenSeam must​
403-12.9report to the chairs and ranking minority​
404-12.10members of the legislative committees with​
405-12.11jurisdiction over agriculture and rural​
406-12.12development with information on new and​
407-12.13existing businesses supported, number of new​
408-12.14jobs created in the region, new educational​
409-12.15partnerships and programs supported, and​
410-12.16regional branding and promotional efforts.​
411-12.17(j) $1,250,000 the first year and $1,250,000​
412-12.18the second year are for grants to Second​
413-12.19Harvest Heartland on behalf of Minnesota's​
414-12.20six Feeding America food banks for the​
415-12.21following purposes:​
416-12.22(1) at least $850,000 each year must be​
417-12.23allocated to purchase milk for distribution to​
418-12.24Minnesota's food shelves and other charitable​
419-12.25organizations that are eligible to receive food​
420-12.26from the food banks. Milk purchased with​
421-12.27grant proceeds must be acquired from​
422-12.28Minnesota milk processors and based on​
423-12.29low-cost bids. The milk must be allocated to​
424-12.30each Feeding America food bank serving​
425-12.31Minnesota according to the formula used in​
426-12.32the distribution of United States Department​
427-12.33of Agriculture commodities under the​
428-12.34Emergency Food Assistance Program. Second​
429-12.35Harvest Heartland may enter into contracts or​
430-12​Article 1 Sec. 2.​
431-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 13.1agreements with food banks for shared funding​
432-13.2or reimbursement of the direct purchase of​
433-13.3milk. Each food bank that receives funding​
434-13.4under this clause may use up to two percent​
435-13.5for administrative expenses. Notwithstanding​
436-13.6Minnesota Statutes, section 16A.28, any​
437-13.7unencumbered balance the first year does not​
438-13.8cancel and is available the second year;​
439-13.9(2) to compensate agricultural producers and​
440-13.10processors for costs incurred to harvest and​
441-13.11package for transfer surplus fruits, vegetables,​
442-13.12and other agricultural commodities that would​
443-13.13otherwise go unharvested, be discarded, or be​
444-13.14sold in a secondary market. Surplus​
445-13.15commodities must be distributed statewide to​
446-13.16food shelves and other charitable organizations​
447-13.17that are eligible to receive food from the food​
448-13.18banks. Surplus food acquired under this clause​
449-13.19must be from Minnesota producers and​
450-13.20processors. Second Harvest Heartland may​
451-13.21use up to 15 percent of each grant awarded​
452-13.22under this clause for administrative and​
453-13.23transportation expenses; and​
454-13.24(3) to purchase and distribute protein products,​
455-13.25including but not limited to pork, poultry, beef,​
456-13.26dry legumes, cheese, and eggs to Minnesota's​
457-13.27food shelves and other charitable organizations​
458-13.28that are eligible to receive food from the food​
459-13.29banks. Second Harvest Heartland may use up​
460-13.30to two percent of each grant awarded under​
461-13.31this clause for administrative expenses. Protein​
462-13.32products purchased using grant proceeds must​
463-13.33be acquired from Minnesota processors and​
464-13.34producers.​
465-13​Article 1 Sec. 2.​
466-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 14.1Second Harvest Heartland must submit​
467-14.2quarterly reports to the commissioner and the​
468-14.3chairs and ranking minority members of the​
469-14.4legislative committees with jurisdiction over​
470-14.5agriculture finance in the form prescribed by​
471-14.6the commissioner. The reports must include​
472-14.7but are not limited to information on the​
473-14.8expenditure of money, the amount of milk or​
474-14.9other commodities purchased, and the​
475-14.10organizations to which this food was​
476-14.11distributed.​
477-14.12(k) $25,000 the first year and $25,000 the​
478-14.13second year are for grants to the Southern​
479-14.14Minnesota Initiative Foundation to promote​
480-14.15local foods through an annual event that raises​
481-14.16public awareness of local foods and connects​
482-14.17local food producers and processors with​
483-14.18potential buyers.​
484-14.19(l) $750,000 the first year and $750,000 the​
485-14.20second year are for the Emerging Farmers​
486-14.21Office to provide services to beginning and​
487-14.22emerging farmers to increase connections​
488-14.23between farmers and market opportunities​
489-14.24throughout Minnesota. This appropriation may​
490-14.25be used for grants, translation services,​
491-14.26training programs, or other purposes in line​
492-14.27with the recommendations of the emerging​
493-14.28farmer working group established under​
494-14.29Minnesota Statutes, section 17.055,​
495-14.30subdivision 1.​
496-14.31(m) $337,000 the first year and $337,000 the​
497-14.32second year are for farm advocate services.​
498-14.33Of these amounts, $50,000 the first year and​
499-14.34$50,000 the second year are for the​
500-14.35continuation of the farmland transition​
501-14​Article 1 Sec. 2.​
502-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 15.1programs and may be used for grants to​
503-15.2farmland access teams to provide technical​
504-15.3assistance to potential beginning farmers.​
505-15.4Farmland access teams must assist existing​
506-15.5farmers and beginning farmers with​
507-15.6transitioning farm ownership and farm​
508-15.7operation. Services provided by teams may​
509-15.8include but are not limited to mediation​
510-15.9assistance, designing contracts, financial​
511-15.10planning, tax preparation, estate planning, and​
512-15.11housing assistance.​
513-15.12(n) $260,000 the first year and $260,000 the​
514-15.13second year are for a pass-through grant to​
515-15.14Region Five Development Commission to​
516-15.15provide, in collaboration with Farm Business​
517-15.16Management, statewide mental health​
518-15.17counseling support to Minnesota farm​
519-15.18operators, families, and employees, and​
520-15.19individuals who work with Minnesota farmers​
521-15.20in a professional capacity. Region Five​
522-15.21Development Commission may use up to 6.5​
523-15.22percent of the grant awarded under this​
524-15.23paragraph for administration.​
525-15.24(o) $150,000 the first year and $150,000 the​
526-15.25second year are for administrative support for​
527-15.26the Rural Finance Authority.​
528-15.27(p) $137,000 the first year and $204,000 the​
529-15.28second year are to maintain the current level​
530-15.29of service delivery.​
531-15.30(q) $1,000,000 the first year and $1,000,000​
532-15.31the second year are to award and administer​
533-15.32down payment assistance grants under​
534-15.33Minnesota Statutes, section 17.133, with​
535-15.34priority given to eligible applicants with no​
536-15.35more than $100,000 in annual gross farm​
537-15​Article 1 Sec. 2.​
538-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 16.1product sales and eligible applicants who are​
539-16.2producers of industrial hemp, cannabis, or one​
540-16.3or more of the following specialty crops as​
541-16.4defined by the United States Department of​
542-16.5Agriculture for purposes of the specialty crop​
543-16.6block grant program: fruits and vegetables,​
544-16.7tree nuts, dried fruits, medicinal plants,​
545-16.8culinary herbs and spices, horticulture crops,​
546-16.9floriculture crops, and nursery crops.​
547-16.10Notwithstanding Minnesota Statutes, section​
548-16.1116A.28, any unencumbered balance at the end​
549-16.12of the first year does not cancel and is​
550-16.13available in the second year and appropriations​
551-16.14encumbered under contract by June 30, 2027,​
552-16.15are available until June 30, 2029.​
553-16.16(r) $3,100,000 the first year is for a grant to​
554-16.17First District Association for a wastewater​
555-16.18pretreatment project.​
556-16.19(s) The commissioner shall continue to​
557-16.20increase connections between ethnic minority​
558-16.21and immigrant farmers to farming​
559-16.22opportunities and farming programs​
560-16.23throughout Minnesota.​
561-6,767,000​$​6,767,000​$​16.24Sec. 3. BOARD OF ANIMAL HEALTH​
562-16.25(a) $200,000 the first year and $200,000 the​
563-16.26second year are for agricultural emergency​
564-16.27preparedness and response.​
565-16.28(b) $357,000 the first year and $357,000 the​
566-16.29second year are to maintain the current level​
567-16.30of service delivery.​
568-4,434,000​$​4,388,000​$​
569-16.31Sec. 4. AGRICULTURAL UTILIZATION​
570-16.32RESEARCH INSTITUTE​
571-16​Article 1 Sec. 4.​
572-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 17.1$45,000 the first year and $91,000 the second​
573-17.2year are to maintain the current level of service​
574-17.3delivery.​
575-17.4 Sec. 5. TRANSFERS.​
576-17.5 (a) $100,000 in fiscal year 2026 and $100,000 in fiscal year 2027 are transferred from​
577-17.6the general fund to the pollinator research account established under Minnesota Statutes,​
578-17.7section 18B.051. This transfer is $100,000 in fiscal year 2028 and each year thereafter.​
579-17.8 (b) $186,000 in fiscal year 2026 and $186,000 in fiscal year 2027 are transferred from​
580-17.9the general fund to the Minnesota grown account and may be used as grants for Minnesota​
581-17.10Grown promotion under Minnesota Statutes, section 17.102. Notwithstanding Minnesota​
582-17.11Statutes, section 16A.28, the appropriations encumbered under contract on or before June​
583-17.1230, 2027, for Minnesota Grown grants in this paragraph are available until June 30, 2029.​
584-17.13This transfer is $186,000 in fiscal year 2028 and each year thereafter.​
585-17.14 (c) $10,852,000 in fiscal year 2026 and $10,852,000 in fiscal year 2027 are transferred​
586-17.15from the general fund to the agriculture research, education, extension, and technology​
587-17.16transfer account under Minnesota Statutes, section 41A.14, subdivision 3, and the​
588-17.17commissioner shall transfer funds each year to the Board of Regents of the University of​
589-17.18Minnesota for purposes of Minnesota Statutes, section 41A.14, subdivision 1, clauses (1)​
590-17.19and (2), and must supplement and not supplant existing sources and levels of funding. The​
591-17.20commissioner may use up to one percent of this transfer for costs incurred to administer​
592-17.21this program.​
593-17.22 (d) Of the amount transferred for the agriculture research, education, extension, and​
594-17.23technology transfer grant program under Minnesota Statutes, section 41A.14:​
595-17.24 (1) $600,000 in fiscal year 2026 and $600,000 in fiscal year 2027 are for the Minnesota​
596-17.25Agricultural Experiment Station's agriculture rapid response fund under Minnesota Statutes,​
597-17.26section 41A.14, subdivision 1, clause (2);​
598-17.27 (2) up to $1,000,000 in fiscal year 2026 and up to $1,000,000 in fiscal year 2027 are for​
599-17.28research on avian influenza, salmonella, and other turkey-related diseases and disease​
600-17.29prevention measures;​
601-17.30 (3) $2,750,000 in fiscal year 2026 and $2,750,000 in fiscal year 2027 are for grants to​
602-17.31the Minnesota Agricultural Educational Leadership Council to enhance agricultural education​
603-17.32with priority given to Farm Business Management challenge grants;​
604-17.33 (4) $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are for potato research;​
605-17​Article 1 Sec. 5.​
606-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 18.1 (5) $802,000 in fiscal year 2026 and $802,000 in fiscal year 2027 are to fund the Forever​
607-18.2Green Initiative and protect Minnesota's natural resources while increasing the efficiency,​
608-18.3profitability, and productivity of Minnesota farmers by incorporating perennial and winter​
609-18.4annual crops into existing agricultural practices. By February 1 each year, the dean of the​
610-18.5College of Food, Agricultural, and Natural Resources Sciences must submit a report to the​
611-18.6chairs and ranking minority members of the legislative committees with jurisdiction over​
612-18.7agriculture finance and policy and higher education detailing uses of the money in this​
613-18.8paragraph, including administrative costs, and the achievements this money contributed to;​
614-18.9 (6) $200,000 in fiscal year 2026 and $200,000 in fiscal year 2027 are for research on​
615-18.10natural strands of wild rice; and​
616-18.11 (7) $250,000 in fiscal year 2026 and $250,000 in fiscal year 2027 are for the cultivated​
617-18.12wild rice forward selection project at the North Central Research and Outreach Center,​
618-18.13including a tenure track or research associate plant scientist.​
619-18.14The transfer for the agricultural research, education, extension, and technology transfer​
620-18.15program is $10,852,000 in fiscal year 2028 and each year thereafter.​
621-18.16 (e) $1,425,000 in fiscal year 2026 and $1,425,000 in fiscal year 2027 are transferred​
622-18.17from the general fund to the agricultural and environmental revolving loan account​
623-18.18established under Minnesota Statutes, section 17.117, subdivision 5, for low-interest loans​
624-18.19under Minnesota Statutes, section 17.117. This transfer is $1,425,000 in fiscal year 2028​
625-18.20and each year thereafter.​
626-18.21Sec. 6. CANCELLATION.​
627-18.22 $3,000,000 of the fiscal year 2024 general fund appropriation for grants to cooperatives​
628-18.23to invest in green fertilizer production facilities under Laws 2023, chapter 60, article 10,​
629-18.24section 4, is canceled.​
630-18.25Sec. 7. FISCAL YEAR 2025 APPROPRIATIONS.​
631-18.26 (a) $125,000 in fiscal year 2025 is appropriated to the commissioner of agriculture for​
632-18.27compensation for destroyed or crippled livestock under Minnesota Statutes, section 3.737.​
633-18.28The commissioner of agriculture may use up to $5,000 to reimburse expenses incurred by​
634-18.29university extension educators to provide fair market values of destroyed or crippled​
635-18.30livestock. If the commissioner of agriculture receives federal funding to pay claims for​
636-18.31destroyed or crippled livestock, an equivalent amount of this appropriation may be used to​
637-18​Article 1 Sec. 7.​
638-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 19.1reimburse nonlethal prevention methods performed by federal wildlife services staff. This​
639-19.2is a onetime appropriation and is available until June 30, 2026.​
640-19.3 (b) $125,000 in fiscal year 2025 is appropriated to the commissioner of agriculture for​
641-19.4compensation for crop damage under Minnesota Statutes, section 3.7371. The commissioner​
642-19.5of agriculture may use up to $10,000 of the appropriation to reimburse expenses incurred​
643-19.6by the commissioner of agriculture or the commissioner of agriculture's approved agent to​
644-19.7investigate and resolve claims, as well as for costs associated with training for approved​
645-19.8agents. The commissioner of agriculture may use up to $40,000 of the appropriation to make​
646-19.9grants to producers for measures to protect stored crops from elk damage. If the commissioner​
647-19.10of agriculture determines that claims made under Minnesota Statutes, section 3.737 or​
648-19.113.7371 are unusually high, amounts appropriated for either program may be transferred to​
649-19.12the appropriation for the other program. This is a onetime appropriation and is available​
650-19.13until June 30, 2026.​
651-19.14 EFFECTIVE DATE.This section is effective the day following final enactment.​
652-19.15Sec. 8. FISCAL YEAR 2025 TRANSFER.​
653-19.16 $1,500,000 in fiscal year 2025 is transferred from the general fund to the agricultural​
654-19.17emergency account established under Minnesota Statutes, section 17.041.​
655-19.18 EFFECTIVE DATE.This section is effective the day following final enactment.​
656-19.19Sec. 9. Minnesota Statutes 2024, section 17.133, subdivision 2, is amended to read:​
657-19.20 Subd. 2.Grants.The commissioner may award farm down payment assistance grants​
658-19.21of up to $15,000 per eligible farmer purchasing less than 80 acres of farmland, and up to​
659-19.22$30,000 per eligible farmer purchasing 80 acres or more of farmland. Each award must be​
660-19.23matched with at least $8,000 of other funding. Grants under this subdivision may be awarded​
661-19.24by a randomized selection process after applications are collected over a period of no less​
662-19.25than 30 calendar days. An eligible farmer must commit to own and farm the land purchased​
663-19.26with assistance provided under this section for at least five years. For each year that a grant​
664-19.27recipient does not own and farm the land during the five-year period, the grant recipient​
665-19.28must pay a penalty to the commissioner equal to 20 percent of the grant amount.​
666-19.29Sec. 10. Minnesota Statutes 2024, section 18C.005, is amended by adding a subdivision​
667-19.30to read:​
668-19.31 Subd. 4a.Commercial nitrogen fertilizer."Commercial nitrogen fertilizer" means a​
669-19.32fertilizer with a nitrogen content that is not less than 25 percent.​
670-19​Article 1 Sec. 10.​
671-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 20.1 Sec. 11. [18C.113] BIOFERTILIZER INNOVATION AND EFFICIENCY​
672-20.2PROGRAM.​
673-20.3 Subdivision 1.Program established.In consultation with the commissioner of natural​
674-20.4resources and soil and water conservation districts in Minnesota, the commissioner of​
675-20.5agriculture must develop and administer a biofertilizer innovation and efficiency program​
676-20.6to address water quality by incentivizing Minnesota farmers to improve nitrogen management​
677-20.7and incorporate innovative technologies into the farmers' crop nutrient management plans.​
678-20.8The commissioner must determine which products qualify for the program, including soil​
679-20.9amendments, fertilizers with nitrogen fixing properties, biological sources of nitrogen, and​
680-20.10other biofertilizers.​
681-20.11 Subd. 2.Payments to qualified farmers.(a) In consultation with farmers and the​
682-20.12fertilizer industry, the commissioner must establish a per-acre payment rate, not less than​
683-20.13$5 per acre, for payments provided to a qualifying farmer. The program must provide an​
684-20.14annual per-acre incentive payment to a qualifying farmer who verifies through documentation​
685-20.15that the farmer has reduced commercial nitrogen fertilizer rates by using a qualifying product​
686-20.16in the farmer's crop nutrient management plans by the lesser of:​
687-20.17 (1) 15 percent; or​
688-20.18 (2) 30 pounds per acre.​
689-20.19 (b) The commissioner must annually review and may adjust the per-acre payment rate​
690-20.20based on inflation and emerging fertilizer technology.​
691-20.21 Subd. 3.Qualifications.To qualify for the biofertilizer water preservation program, a​
692-20.22farmer must:​
693-20.23 (1) be a Minnesota resident operating farmland located in Minnesota;​
694-20.24 (2) submit documentation to the commissioner, including a crop nutrient management​
695-20.25plan that will reduce the use of commercial nitrogen fertilizers at the reduction rate required​
696-20.26under subdivision 2 by using a qualifying product determined by the commissioner under​
697-20.27subdivision 1; and​
698-20.28 (3) enroll a minimum of 40 eligible acres.​
699-20.29 Subd. 4.Review required.Every two years, the commissioner must review:​
700-20.30 (1) the program's required minimum commercial nitrogen fertilizer reduction rate under​
701-20.31subdivision 2 and determine whether an increase in the minimum reduction rate is necessary;​
702-20.32and​
703-20​Article 1 Sec. 11.​
704-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 21.1 (2) additional qualifying products that may be used by farmers in the program. When​
705-21.2making this determination, the commissioner must consider newly available technologies​
706-21.3and products capable of reducing commercial nitrogen fertilizer applications.​
707-21.4 Subd. 5.Rulemaking required.The commissioner must adopt rules using rulemaking​
708-21.5authority under section 18C.121, subdivision 1, to implement this section.​
709-21.6 Sec. 12. Minnesota Statutes 2024, section 41A.16, subdivision 7, is amended to read:​
710-21.7 Subd. 7.Eligibility for participants after April 1, 2023.(a) A facility eligible for​
711-21.8payment under this section must source at least 80 percent raw materials from Minnesota.​
712-21.9If a facility is sited 50 miles or less from the state border, raw materials may be sourced​
713-21.10from within a 100-mile radius. Raw materials must be from agricultural or forestry sources​
714-21.11or from solid waste. The facility must be located in Minnesota, must begin production at a​
715-21.12specific location after April 1, 2023, and before June 30, 2025, and must not begin operating​
716-21.13above 23,750 MMbtu of quarterly advanced biofuel production before July 1, 2015. Eligible​
717-21.14facilities include existing companies and facilities that are adding advanced biofuel​
718-21.15production capacity, or retrofitting existing capacity, as well as new companies and facilities.​
719-21.16Production of conventional corn ethanol and conventional biodiesel is not eligible. Eligible​
720-21.17advanced biofuel facilities must produce at least 23,750 MMbtu of biofuel quarterly.​
721-21.18 (b) No payments shall be made for advanced biofuel production that occurs after June​
722-21.1930, 2035, for those eligible biofuel producers under paragraph (a).​
723-21.20 (c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility​
724-21.21for payments under this section to an advanced biofuel facility at a different location.​
725-21.22 (d) A producer that ceases production for any reason is ineligible to receive payments​
726-21.23under this section until the producer resumes production.​
727-21.24 (e) Renewable chemical production for which payment has been received under section​
728-21.2541A.17, and biomass thermal production for which payment has been received under section​
729-21.2641A.18, are not eligible for payment under this section.​
730-21.27 (f) Biobutanol is eligible under this section.​
731-21.28Sec. 13. COUNTY AGRICULTURAL INSPECTORS.​
732-21.29 (a) To be eligible for grants under this section, a county must employ a county agricultural​
733-21.30inspector or a county-designated employee who:​
734-21​Article 1 Sec. 13.​
735-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 22.1 (1) has attended training for new county agricultural inspectors offered by the​
736-22.2commissioner of agriculture;​
737-22.3 (2) coordinates with the commissioner of agriculture to review applicable laws and​
738-22.4enforcement procedures;​
739-22.5 (3) compiles and submits to the commissioner of agriculture local weed inspector annual​
740-22.6report data;​
741-22.7 (4) conducts an annual meeting and training for local weed inspectors; and​
742-22.8 (5) assists the commissioner of agriculture with control programs and other agricultural​
743-22.9programs when requested under Minnesota Statutes, section 18.81, subdivision 1b, as​
744-22.10directed by the county board.​
745-22.11 (b) County agricultural inspectors and county-designated employees must annually​
746-22.12submit an application, on a form approved by the commissioner of agriculture, to be eligible​
747-22.13for funding during a given year. The commissioner of agriculture must equally divide​
748-22.14available grant money among eligible counties.​
749-22.15 ARTICLE 2​
750-22.16 BROADBAND​
751-22.17Section 1. BROADBAND DEVELOPMENT APPROPRIATIONS.​
752-22.18 The sums shown in the columns marked "Appropriations" are appropriated to the agencies​
753-22.19and for the purposes specified in this article. The appropriations are from the general fund,​
754-22.20or another named fund, and are available for the fiscal years indicated for each purpose.​
755-22.21The figures "2026" and "2027" used in this article mean that the appropriations listed under​
756-22.22them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.​
757-22.23"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"​
758-22.24is fiscal years 2026 and 2027.​
759-22.25 APPROPRIATIONS​
760-22.26 Available for the Year​
761-22.27 Ending June 30​
762-2027​22.28 2026​
763-1,001,000​$​1,001,000​$​
764-22.29Sec. 2. DEPARTMENT OF EMPLOYMENT​
765-22.30AND ECONOMIC DEVELOPMENT​
766-22.31$1,001,000 each year is for the Office of​
767-22.32Broadband Development.​
768-22​Article 2 Sec. 2.​
769-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 23.1 Sec. 3. Minnesota Statutes 2024, section 326B.198, subdivision 2, is amended to read:​
770-23.2 Subd. 2.Installation requirements.(a) The installation of underground​
771-23.3telecommunications infrastructure that is located within ten feet of existing underground​
772-23.4utilities or that crosses the existing underground utilities must be performed by​
773-23.5safety-qualified underground telecommunications installers as follows:​
774-23.6 (1) the location of existing utilities by hand- or hydro-excavation or other accepted​
775-23.7methods must be performed by a safety-qualified underground telecommunications installer;​
776-23.8and​
777-23.9 (2) where telecommunications infrastructure is installed by means of directional drilling,​
778-23.10the monitoring of the location and depth of the drill head must be performed by a​
779-23.11safety-qualified underground telecommunications installer; and.​
780-23.12 (3) no fewer than two safety-qualified underground telecommunications installers must​
781-23.13be present at all times at any location where telecommunications infrastructure is being​
782-23.14installed by means of directional drilling.​
783-23.15 (b) Beginning July 1, 2025, all installations of underground telecommunications​
784-23.16infrastructure subject to this subdivision within the seven-county metropolitan area must​
785-23.17be performed by safety-qualified underground telecommunications installers that meet the​
786-23.18requirements of this subdivision.​
787-23.19 (c) (b) Beginning January 1, 2026, all installations of underground telecommunications​
788-23.20infrastructure subject to this subdivision within this state must be performed by​
789-23.21safety-qualified underground telecommunications installers that meet the requirements of​
790-23.22this subdivision.​
791-23.23 EFFECTIVE DATE.This section is effective the day following final enactment.​
792-23.24Sec. 4. Minnesota Statutes 2024, section 326B.198, subdivision 3, is amended to read:​
793-23.25 Subd. 3.Certification Standards.(a) The commissioner of labor and industry, in​
794-23.26consultation with the Office of Broadband, shall approve standards for a safety-qualified​
795-23.27underground telecommunications installer certification program that requires a person to:​
796-23.28 (1) complete a 40-hour ten-hour initial course that includes classroom and hands-on​
797-23.29instruction covering proper work procedures for safe installation of underground utilities,​
798-23.30including:​
799-23.31 (i) regulations applicable to excavation near existing utilities;​
800-23​Article 2 Sec. 4.​
801-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ 24.1 (ii) identification, location, and verification of utility lines using hand- or​
802-24.2hydro-excavation or other accepted methods;​
803-24.3 (iii) response to line strike incidents;​
804-24.4 (iv) traffic control procedures;​
805-24.5 (v) use of a tracking device to safely guide directional drill equipment along a drill path;​
806-24.6and​
807-24.7 (vi) avoidance and mitigation of safety hazards posed by underground utility installation​
808-24.8projects;​
809-24.9 (2) demonstrate knowledge of the course material by successfully completing an​
810-24.10examination approved by the commissioner; and​
811-24.11 (3) complete a four-hour refresher course within three years of completing the original​
812-24.12course and every three years thereafter in order to maintain certification.​
813-24.13 (b) The commissioner must develop an approval process for training providers under​
814-24.14this subdivision and may suspend or revoke the approval of any training provider that fails​
815-24.15to demonstrate consistent delivery of approved curriculum or success in preparing participants​
816-24.16to complete the examination.​
817-24.17 EFFECTIVE DATE.This section is effective the day following final enactment.​
818-24​Article 2 Sec. 4.​
819-REVISOR BD H1704-1​HF1704 FIRST ENGROSSMENT​ Page.Ln 1.11​APPROPRIATIONS...............................................................................ARTICLE 1​
820-Page.Ln 22.15​BROADBAND.......................................................................................ARTICLE 2​
821-1​
822-APPENDIX​
823-Article locations for H1704-1​