HF 3598

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 05:26pm

A bill for an act
relating to drought relief; modifying the disaster recovery loan program; increasing
funding for agricultural drought relief loans; appropriating money for drought
relief grants and other financial assistance for eligible farmers; providing financial
assistance to municipalities, townships, and Tribal governments for increasing
water efficiency in public water supplies; providing grants for planting shade trees
and purchasing tree-watering equipment; providing financial assistance to replace
drought-killed seedlings; appropriating money; amending Minnesota Statutes 2020,
section 41B.047, subdivision 3.

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

ARTICLE 1

AGRICULTURE

Section 1.

Minnesota Statutes 2020, section 41B.047, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was (i) sustained within a county that was the subject
of a state or federal disaster declaration; (ii) due to the confirmed presence of a highly
contagious animal disease in Minnesota; (iii) due to an infectious human disease for which
the governor has declared a peacetime emergency; or (iv) due to an emergency as determined
by the authority;

(3) demonstrate an ability to repay the loan; and

(4) have received at least deleted text begin 50 deleted text end new text begin 20 new text end percent of deleted text begin average deleted text end annual gross income from farming
deleted text begin for deleted text end new text begin in new text end the past deleted text begin three years deleted text end new text begin year new text end .

Sec. 2. new text begin APPROPRIATIONS TO BE GIVEN EFFECT ONCE.
new text end

new text begin If an appropriation or transfer in this act is enacted more than once during the 2022
regular legislative session, the appropriation or transfer must be given effect only once.
new text end

Sec. 3. new text begin APPROPRIATION; DROUGHT RELIEF.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $5,100,000 in fiscal year 2022 is appropriated from the
general fund to the commissioner of agriculture to provide grants and other forms of financial
assistance to livestock farmers and specialty crop producers impacted by drought in 2021.
This appropriation includes $100,000 to reimburse livestock farmers up to $6 per loaded
mile for drought-related expenses incurred to transport hay or forage up to 25 miles to the
farm. For purposes of this section, "specialty crop" means an eligible crop under the United
States Department of Agriculture's specialty crop block grant program. The commissioner
may issue noncompetitive payments of up to $10,000 per eligible livestock farmer or
specialty crop producer to reimburse drought-related expenses incurred by the farmer or
producer between April 1, 2021, and May 1, 2022. The commissioner must accept
applications under this section for at least five business days and, notwithstanding subdivision
2, if total applications exceed $5,100,000, the commissioner must award payments to eligible
applicants at random until the funding is exhausted. The commissioner may use up to 6.5
percent of this appropriation for administration. This is a onetime appropriation and is
available until June 30, 2024.
new text end

new text begin Subd. 2. new text end

new text begin Preference; drought severity. new text end

new text begin When awarding grants and other financial
assistance under this section, the commissioner must give preference to eligible farmers
and producers who farm in counties designated in whole or in part as D4, exceptional
drought, on any of the weekly maps published during 2021 by the National Drought
Mitigation Center at the University of Nebraska-Lincoln. After all eligible D4 applications
have been paid, the commissioner must give preference to eligible farmers and producers
who farm in counties designated in whole or in part as D3 or D2 during 2021. If total
applications exceed the funding available for eligible farmers and producers in a given
drought classification, the commissioner must award payments at random.
new text end

new text begin Subd. 3. new text end

new text begin Allocations. new text end

new text begin Of the amount appropriated in subdivision 1, $1,000,000 is reserved
for eligible livestock farmers, $1,000,000 is reserved for eligible specialty crop producers,
and $500,000 is reserved for eligible livestock farmers or specialty crop producers who are
also farmers' market vendors. The commissioner may reallocate money reserved under this
subdivision based on demand and may award unreserved money to any eligible livestock
farmer or specialty crop producer.
new text end

new text begin Subd. 4. new text end

new text begin Outreach required. new text end

new text begin The commissioner must provide outreach to emerging
farmers through the Department of Agriculture Office of Emerging Farmers.
new text end

Sec. 4. new text begin TRANSFER; RURAL FINANCE AUTHORITY.
new text end

new text begin $5,000,000 in fiscal year 2022 is transferred from the general fund to the Rural Finance
Authority Revolving Loan account established under Minnesota Statutes, section 41B.06,
with priority given to drought relief loans under Minnesota Statutes, section 41B.047.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 2

NATURAL RESOURCES

Section 1. new text begin APPROPRIATIONS; DROUGHT RELIEF.
new text end

new text begin (a) $300,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of natural resources for costs associated with resolving well interferences confirmed by the
Department of Natural Resources that occurred from May 1, 2021, to December 30, 2021.
This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28,
unencumbered balances under this paragraph do not cancel until June 30, 2026.
new text end

new text begin (b) $3,000,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of natural resources for grants to municipal, township, and Tribal governments
that operate public water supplies to increase water efficiency. Subawards to residents are
an allowable use under this appropriation. This is a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, unencumbered balances under this paragraph do not
cancel until June 30, 2026.
new text end

new text begin (c) $4,500,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of natural resources for grants to local and Tribal governments to remove
and plant shade trees impacted by drought and provide communities with tree-watering
equipment under Minnesota Statutes, section 88.82. Money appropriated for grants under
this paragraph may be used to pay reasonable costs incurred by the commissioner of natural
resources to administer the grants. This is a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, unencumbered balances under this paragraph do not
cancel until June 30, 2027. The commissioner must accept applications under this paragraph
for at least five business days and, if total applications exceed $4,500,000, the commissioner
must award grants to eligible applicants at random until the funding is exhausted.
new text end

new text begin (d) $5,550,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of natural resources to replace drought-killed seedlings on lands managed
by the Department of Natural Resources and to administer grants to Tribal, county, and
private forestland owners to replace drought-killed seedlings on their land. Seedling
replacement includes site prep, replanting, and tending seedlings. This is a onetime
appropriation. Notwithstanding Minnesota Statutes, section 16A.28, unencumbered balances
under this paragraph do not cancel until June 30, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end