HF 1732

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; changing certain loan
provisions; establishing a loan program; changing
certain livestock zoning regulations; amending
Minnesota Statutes 2004, sections 41B.046, subdivision
5; 41B.049, subdivision 2; 174.52, subdivision 5;
394.25, subdivision 3c; 462.355, subdivision 4;
462.357, by adding a subdivision; proposing coding for
new law in Minnesota Statutes, chapter 41B; repealing
Minnesota Statutes 2004, section 41B.046, subdivision
3.

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

Section 1.

Minnesota Statutes 2004, section 41B.046,
subdivision 5, is amended to read:

Subd. 5.

Loans.

(a) The authority may participate in a
stock loan with an eligible lender to a farmer who is eligible
under subdivision 4. Participation is limited to 45 percent of
the principal amount of the loan or $40,000, whichever is less.
The interest rates and repayment terms of the authority's
participation interest may differ from the interest rates and
repayment terms of the lender's retained portion of the loan,
but the authority's interest rate must not exceed 50 percent of
the lender's interest rate.

(b) No more than 95 percent of the purchase price of the
stock may be financed under this program.

(c) Security for stock loans must be the stock purchased, a
personal note executed by the borrower, and whatever other
security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable
application fee for each application for a stock loan. The
authority may review the fee annually and make adjustments as
necessary. The application fee is initially $50. Application
fees received by the authority must be deposited in the
value-added agricultural product revolving fund.

(e) Stock loans under this program will be made using money
in the deleted text begin value-added agricultural product deleted text end revolving deleted text begin fund deleted text end new text begin loan
account new text end established deleted text begin under subdivision 3 deleted text end new text begin in section 41B.06 new text end .

(f) The authority may not grant stock loans in a cumulative
amount exceeding $2,000,000 for the financing of stock purchases
in any one cooperative.

new text begin (g) Repayments of financial assistance under this section,
including principal and interest, must be deposited into the
revolving loan account established in section 41B.06.
new text end

Sec. 2.

Minnesota Statutes 2004, section 41B.049,
subdivision 2, is amended to read:

Subd. 2.

deleted text begin revolving fund deleted text end new text begin deposit of repayments new text end .

deleted text begin There is
established in the state treasury a revolving fund, which is
eligible to receive appropriations and the transfer of funds
from other services. deleted text end All repayments of financial assistance
granted under subdivision 1, including principal and interest,
must be deposited into deleted text begin this fund. Interest earned on money in
the fund accrues to the fund, and money in the fund is
appropriated to the commissioner of agriculture for purposes of
the manure digester loan program, including costs incurred by
the authority to establish and administer the program deleted text end new text begin the
revolving loan account established in section 41B.06 new text end .

Sec. 3.

new text begin [41B.055] LIVESTOCK EQUIPMENT PILOT LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The authority must
establish and implement a livestock equipment pilot loan program
to help finance the first purchase of livestock-related
equipment and make livestock facilities improvements.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin Notwithstanding section 41B.03, to
be eligible for this program a borrower must:
new text end

new text begin (1) be a resident of Minnesota or general partnership or a
family farm corporation, authorized farm corporation, family
farm partnership, or authorized farm partnership as defined in
section 500.24, subdivision 2;
new text end

new text begin (2) be the principal operator of a livestock farm;
new text end

new text begin (3) have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, no greater
than the amount stipulated in section 41B.03, subdivision 3;
new text end

new text begin (4) demonstrate an ability to repay the loan; and
new text end

new text begin (5) hold an appropriate feedlot registration or be using
the loan under this program to meet registration requirements.
In addition to the requirements in clauses (1) to (5),
preference must be given to applicants who have farmed less than
ten years as evidenced by their filing of schedule F in their
federal tax returns.
new text end

new text begin Subd. 3. new text end

new text begin Loans. new text end

new text begin (a) The authority may participate in a
livestock equipment loan equal to 90 percent of the purchased
equipment value with an eligible lender to a farmer who is
eligible under subdivision 2. Participation is limited to 45
percent of the principal amount of the loan or $40,000,
whichever is less. The interest rates and repayment terms of
the authority's participation interest may differ from the
interest rates and repayment terms of the lender's retained
portion of the loan, but the authority's interest rate must not
exceed three percent. The authority may review the interest
annually and make adjustments as necessary.
new text end

new text begin (b) Standards for loan amortization must be set by the
rural finance authority and must not exceed seven years.
new text end

new text begin (c) Security for a livestock equipment loan must be a
personal note executed by the borrower and whatever other
security is required by the eligible lender or the authority.
new text end

new text begin (d) Refinancing of existing debt is not an eligible purpose.
new text end

new text begin (e) The authority may impose a reasonable, nonrefundable
application fee for a livestock equipment loan. The authority
may review the fee annually and make adjustments as necessary.
The initial application fee is $50. Application fees received
by the authority must be deposited in the revolving loan account
established in section 41B.06.
new text end

new text begin (f) Loans under this program must be made using money in
the revolving loan account established in section 41B.06.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Money may be used for
loans for the acquisition of equipment for animal housing,
confinement, animal feeding, milk production, and waste
management.
new text end

Sec. 4.

new text begin [41B.06] RURAL FINANCE AUTHORITY REVOLVING LOAN
ACCOUNT.
new text end

new text begin There is established in the rural finance administration
fund a rural finance authority revolving loan account that is
eligible to receive appropriations and the transfer of loan
funds from other programs. All repayments of financial
assistance granted from this account, including principal and
interest, must be deposited into this account. Interest earned
on money in the account accrues to the account, and the money in
the account is appropriated to the commissioner of agriculture
for purposes of the rural finance authority, livestock equipment
methane digester, and value-added agricultural product loan
programs, including costs incurred by the authority to establish
and administer the programs.
new text end

Sec. 5.

Minnesota Statutes 2004, section 174.52,
subdivision 5, is amended to read:

Subd. 5.

Grant procedures and criteria.

The commissioner
shall establish procedures for statutory or home rule charter
cities, towns, and counties to apply for grants or loans from
the fund and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria
in consultation with representatives appointed by the
Association of Minnesota Counties, League of Minnesota
Cities, deleted text begin and deleted text end Minnesota deleted text begin Township Officers deleted text end Association new text begin of
Townships, and the appropriate state agency, as needed new text end . The
criteria for determining project priority and the amount of a
grant or loan must be based upon consideration of:

(1) the availability of other state, federal, and local
funds;

(2) the regional significance of the route;

(3) effectiveness of the proposed project in eliminating a
transportation system deficiency;

(4) the number of persons who will be positively impacted
by the project;

(5) the project's contribution to other local, regional, or
state economic development or redevelopment efforts new text begin , including
livestock and other agricultural operations permitted after the
effective date of this section new text end ; and

(6) ability of the local unit of government to adequately
provide for the safe operation and maintenance of the facility
upon project completion.

Sec. 6.

Minnesota Statutes 2004, section 394.25,
subdivision 3c, is amended to read:

Subd. 3c.

Feedlot zoning ordinances.

(a) A county
proposing to adopt a new feedlot ordinance or amend an existing
feedlot ordinance must notify the Pollution Control Agency and
commissioner of agriculture at the beginning of the process new text begin , no
later than the notice of the first hearing proposing to adopt or
amend an ordinance purporting to address feedlots new text end .

(b) Prior to final approval of a feedlot ordinance, a
county board may submit a copy of the proposed ordinance to the
Pollution Control Agency and to the commissioner of agriculture
and request review, comment, and deleted text begin preparation of deleted text end new text begin recommendations.
new text end

new text begin (c) The agencies' response to the county may include:
new text end

new text begin (1) any recommendations for improvements in the ordinance;
and
new text end

new text begin (2) the legal, economic, or scientific justification for
each recommendation under clause (1).
new text end

new text begin (d) At the request of any member of the county board, the
county must prepare new text end a report on the deleted text begin environmental and
agricultural deleted text end new text begin economic new text end effects from specific provisions in the
ordinance. new text begin Economic analysis must state whether the ordinance
will affect the local economy and describe the kinds of
businesses affected and the projected impact the proposal will
have on those businesses. To assist the county, the
commissioner of agriculture, in cooperation with the Department
of Employment and Economic Development, must develop a template
for measuring local economic effects and make it available to
the county. The report must be submitted to the commissioners
of employment and economic development and agriculture along
with the proposed ordinance.
new text end

deleted text begin (c) The report may include:
deleted text end

deleted text begin (1) any recommendations for improvements in the ordinance;
and
deleted text end

deleted text begin (2) the legal, social, economic, or scientific
justification for each recommendation under clause (1).
deleted text end

deleted text begin (d) deleted text end new text begin (e) new text end A local ordinance that contains a setback for new
feedlots from existing residences must also provide for a new
residence setback from existing feedlots located in areas zoned
agricultural at the same distances and conditions specified in
the setback for new feedlots, unless the new residence is built
to replace an existing residence. A county may grant a variance
from this requirement under section 394.27, subdivision 7.

Sec. 7.

Minnesota Statutes 2004, section 462.355,
subdivision 4, is amended to read:

Subd. 4.

Interim ordinance.

new text begin (a) new text end If a municipality is
conducting studies or has authorized a study to be conducted or
has held or has scheduled a hearing for the purpose of
considering adoption or amendment of a comprehensive plan or
official controls as defined in section 462.352, subdivision 15,
or if new territory for which plans or controls have not been
adopted is annexed to a municipality, the governing body of the
municipality may adopt an interim ordinance applicable to all or
part of its jurisdiction for the purpose of protecting the
planning process and the health, safety and welfare of its
citizens. The interim ordinance may regulate, restrict or
prohibit any use, development, or subdivision within the
jurisdiction or a portion thereof for a period not to exceed one
year from the date it is effective.

new text begin (b) If a proposed interim ordinance purports to regulate,
restrict, or prohibit activities relating to livestock
production, a public hearing must be held following a ten-day
notice given by publication in a newspaper of general
circulation in the municipality before the interim ordinance
takes effect.
new text end

new text begin (c) new text end The period of an interim ordinance applicable to an
area that is affected by a city's master plan for a municipal
airport may be extended for such additional periods as the
municipality may deem appropriate, not exceeding a total
additional period of 18 months in the case where the Minnesota
Department of Transportation has requested a city to review its
master plan for a municipal airport prior to August 1, 2004. In
all other cases, no interim ordinance may halt, delay, or impede
a subdivision which has been given preliminary approval, nor may
any interim ordinance extend the time deadline for agency action
set forth in section 15.99 with respect to any application filed
prior to the effective date of the interim ordinance. The
governing body of the municipality may extend the interim
ordinance after a public hearing and written findings have been
adopted based upon one or more of the conditions in clause (1),
(2), or (3). The public hearing must be held at least 15 days
but not more than 30 days before the expiration of the interim
ordinance, and notice of the hearing must be published at least
ten days before the hearing. The interim ordinance may be
extended for the following conditions and durations, but, except
as provided in clause (3), an interim ordinance may not be
extended more than an additional 18 months:

(1) up to an additional 120 days following the receipt of
the final approval or review by a federal, state, or
metropolitan agency when the approval is required by law and the
review or approval has not been completed and received by the
municipality at least 30 days before the expiration of the
interim ordinance;

(2) up to an additional 120 days following the completion
of any other process required by a state statute, federal law,
or court order, when the process is not completed at least 30
days before the expiration of the interim ordinance; or

(3) up to an additional one year if the municipality has
not adopted a comprehensive plan under this section at the time
the interim ordinance is enacted.

Sec. 8.

Minnesota Statutes 2004, section 462.357, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Feedlot zoning controls. new text end

new text begin (a) A municipality
proposing to adopt a new feedlot zoning control or to amend an
existing feedlot zoning control must notify the Pollution
Control Agency and commissioner of agriculture at the beginning
of the process, no later than the date notice is given of the
first hearing proposing to adopt or amend a zoning control
purporting to address feedlots.
new text end

new text begin (b) Prior to final approval of a feedlot zoning control, a
municipality may submit a copy of the proposed zoning control to
the Pollution Control Agency and to the commissioner of
agriculture and request review, comment, and recommendations.
new text end

new text begin (c) The agencies' response to the municipality may include:
new text end

new text begin (1) any recommendations for improvements in the ordinance;
and
new text end

new text begin (2) the legal, economic, or scientific justification for
each recommendation under clause (1).
new text end

new text begin (d) At the request of any member of the municipality's
governing body, the municipality must prepare a report on the
economic effects from specific provisions in the ordinance.
Economic analysis must state whether the ordinance will affect
the local economy and describe the kinds of businesses affected
and the projected impact the proposal will have on those
businesses. To assist the municipality, the commissioner of
agriculture, in cooperation with the Department of Employment
and Economic Development, must develop a template for measuring
local economic effects and make it available to the
municipality. The report must be submitted to the commissioners
of employment and economic development and agriculture along
with the proposed ordinance.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 41B.046, subdivision 3, is
repealed.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

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